SAP Enterprise Portfolio and Project Management: A Guide to Implement, Integrate, and Deploy EPPM Solutions

Table of Contents
About the Author
Acknowledgments
Chapter 1: Enterprise Project, Program, and Portfolio Management Fundamentals
	Enterprise and Organizational Structure
	Project Work Breakdown Structure
		Project Definition
		What Is a Project?
		When Is a Project Created?
		Work Breakdown Structure
		Project Network
		Activities
			Internally Processed Activities
			Externally Processed Activities
			Cost Activities
		Milestones
		Activity Elements
		Subnetworks
	Integration with Other SAP Modules
		Integration with Plant Maintenance
		Integration with Sales and Distribution
			Milestone Billing
			Quotation and Sales Pricing
			Revenue Recognition and Result Analysis
			Revenue Rate Card
			Reporting Transaction for the Purpose of Integration
		Integration with Material Management
			Purchase Requisition
			Collective Purchase Requisition
			Project Commitment
			Purchasing Info Record
			Valuated and Non-Valuated Project Stock
			Automatic Requirement Grouping
			Project-Oriented Procurement (Proman: Procurement Manager)
			Reporting
		Integration with Production Planning
			Material Reservation
			Material Requirements Planning (MRP)
			Bill of Material (WBSE)
		Integration with Controlling
			Costing Variant
			Valuation Variant
			Cost Component Structure
			Controlling Documents
			Cost Rates
			Costing Sheet and Overhead Key
			Result Analysis
			Settlement
		Periodic Settlement vs. Full Settlement
			Month-End Assessment and Distribution Cycles
			Reporting
		Integration with Finance
			Investment Profile and Capitalization
			Full Settlement to AuC and Fixed Asset (FXA)
			Accounting Documents
		General Ledger vs. Cost Element
	Portfolio and Program Structures
		Creating Portfolios
		Integration of Project Management with Portfolio and Program Management
	Synchronizing Project, Program, and Portfolio Structures
		Vertical Synchronization
			Item-Leading vs. Initiative-Leading
		Horizontal Synchronization
			Item-Leading vs. Project-Leading
	Prioritization Framework
	Activities for this Chapter
	Summary
Chapter 2: SAP Enterprise Portfolio and Project Management Using SAP PS, PPM, and CPM
	Project Planning and Forecasting
		Different Planning and Forecasting Methods
			Hierarchy Planning
			Standard SAP PS Capability and its Limitations
		Guidelines Related to Planning, Actual, and Forecast
			Planning and Cost Plan Budget
			Actuals
			Forecast
		Network Costing
			Enhancement Considerations for Network Costing
			Alternate Solution
			Easy Cost Planning with Planning Form
				Constraints
			Enhancement Considerations for Easy Cost Planning (ECP)
	Project Budgeting
		Overall vs. Annual Budget
		Release vs. Current Budget
		SAP Project Budgeting Fundamentals
			Availability Control
			Tolerance Control Limit
			Distributable and Distributed Budget
			Budget Updates
				Budget Return
					Budget Return In Project (CJ38)
					Budget Return From Project (CJ35)
				Budget Supplement
					Budget Supplement In Project (CJ37)
					Budget Supplement to Project (CJ36)
				Budget Transfer
					Prerequisites
					Procedure
		Year End Budget Carry Forward
			Prerequisites
				Commitments
				Selection Variant and Carry Forward Re-Run
				WBSE Status that Allow Carry Forward
					Availability Control Check and Negative Carry Forward
					Budget Carry Forward Currencies
					Transaction CJCO: Budget Carry Forward
		Useful Transactions in Budgeting
	Project Variation Management
	Project RAG Status Commentary
	Project Risk, Issue, and Change Request Registers
	Project Procurement and Project Execution
		Prerequisites
		Network Planning and Execution
	Project Resource Planning
	Project Billing
		Progress or Milestone Based Billing
		Resource Related Billing (RRB)
		Periodic Billing
		Project Delivery-Based Billing
		Order-Based Billing in Assembly Processing
			Bill of Service (BoS) Based Billing
	Project Settlement and Capitalization
		Project Settlement and Capitalization
		Settlement Rule
		Settlement Profile
		Settlement Strategy
		Settlement Types in the Settlement Rule
		Settlement Processing Type
			Automatic (1)
			Periodic (2)
			Partial Capitalization (3)
			Full Settlement (8)
		Settlement Processing
		Settlement Scenarios
			Customer Projects
			Cost Projects
			Investment/Capital Projects
	Project Closure
	Activities for this Chapter
	Test Your Learning
	Summary
Chapter 3: Interface with Scheduling, Estimation, Costing, and Forecasting Applications
	Fundamentals of Scheduling
		Project Calendar
		Scheduling Type and Scenarios
		Network Diagram
		Recording Actual Work
		Project Variations and Their Impact on Scheduling
		Scheduling and Its Impact on Forecasting
	Detailed Date and Schedule Planning
		Integration with Procurement and Production
			Scenario 1: Project Specific Material – External Procurement
			Scenario 2: Common Materials – External Procurement
			Scenario 3: Common Materials – In-House Production
			Scenario4: Project Specific Material – In-House Production
		Integration with Resource Management
	SAP Interface with Schedule Management Applications
		Why is the interface to third party schedule management application required?
		Design Principles for the Interface
	Fundamentals of Estimation and Costing
		Internal Labor
		External Labor/Service
		Subcontracting (Externally Processed Activities)
		Internal Material
		External Material
	SAP Interface with Estimation and Costing Applications
		Why is the interface to the third party estimation and costing application required?
		Design Principles for the Interface
	SAP Interface with Forecasting Applications or Products
		Why is the interface to the third party forecasting application required?
		Design Principles for the Integration
	Activities for this Chapter
	Test Your Learning
	Summary
Chapter 4: Industry Best Practices and Business Recommendations
	Industry Best Practices
		Mobility and App Based Project Management Solutions (Cross Industry)
		Resource-Related Billing (Professional Service)
		Revenue Recognition via Results Analysis and Integration with Revenue Accounting and Reporting (IFRS) (Cross Industry)
		Project Management Controls
			Earned Value Analysis (EVA) (Public Sector, Engineering, Construction and Operation and Infrastructure Projects of Utilities and Telecom)
				What Is Earned Value Analysis?
					Planned POC
					Actual POC
					Planned Costs
					Planned Earned Value (BCWS)
					Actual Earned Value (BCWP)
					Actual Costs (ACWP)
					Work or Schedule Variance (SV)
					Value or Cost Variance (CV)
					Value Index (CPI)
					Estimated Costs-To-Complete (ETC)
					Estimated Costs at Completion (EAC)
			Milestone Trend Analysis (MTA) (Construction, Information Technology, and New Product Development)
			Variance Analysis (VA) (Cross Industry)
		Portfolio and Program Management Controls and Decision Making
			Investment Prioritization Framework (Cross Industry, Government Organizations, and Private Enterprises that Are Capital Intensive)
			Decision Flow Management (Cross Industry)
		Project Accounting and Integration with Other Modules/Third-Party Applications (Cross Industry)
		Phases and Decision Points: (Government or Public Sector; New Product Development; Infrastructure projects of Telecom and Utilities))
	Business Challenge: Project Structure
		Work Breakdown Structure vs. Cost Breakdown Structure
		Recommendation on Work Breakdown Structure vs. Cost Breakdown Structure
	Business Challenge: Level of Planning During the Lifecycle of the Project
		Estimates (BoQ/BoS/BoM)
		Detailed Plan (Schedule of Quantities, Services, and Materials Against a Delivery Plan)
		Recommendation About the Level of Planning
	Business Challenge: Remote Project Location, Offshore Work, or Work Location with No Computer Access
		Recommendation about Remote Work and Offshore Work
	Business Challenge: When to Use Mass Upload
		Mass Upload: When to Use It and When Not to?
		Recommendations Regarding Mass Upload
	Commonly Asked Questions
		When a Project Involves an Internal Customer and Deliverer, Should the Internal Customer and its Deliverers Be Housed in One Project?
		Variation Management Using Claims vs. CPM Change Request vs. Version Management (Baselining)—Which Method Is Better?
		Network Costing vs. Easy Cost Planning—Which Is Better?
		How Do You Manage Narratives for a Project?
	Standard RICEFW List by Industry
	Standard Functionality List by Industry
	Activities for this Chapter
	Test Your Learning
	Summary
Chapter 5: Reporting and Analytics: Operational and Strategic
	Operational Reporting
		Real-Time Operational Reporting
		Period End/Monthly Operational Reporting
	Strategic Reporting
		Diagnostic and Descriptive Analytics
		Long-Term Trend Analysis
		Predictive Analytics
	Activities for this Chapter
	Test Your Learning
	Summary
Index