Project with Percentage of Completion

1. Project with Percentage of Completion SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This business scenario addresses the typical business processes of an engineering or industrial design company. • Benefits • Project Management • Order Management • Cross-Application Time Sheet • Percentage of completion of milestones and progress analysis • Milestone Billing according to performance of defined Milestones • Final Invoice • Key Process Steps • Creating a Project from a predefined template • Creating a Quotation (optional) • Creating a Customer Order • Time recording (CATS) • Percentage of completion of milestones • Perform results analysis on project milestones • Creating Billing Document • Final Invoice and Technical closure of Project

3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 6 for SAP ERP 6.0 • Company Roles • Consulting Agency Manager (w/o Lean Order) • Project Manager

4. Detailed Process Description • Project with Percentage of Completion • This scenario addresses a consulting engagement in which project management, planning, and scheduling is needed. The scenario starts with the creation of the project by using a pre-defined project structure template. Then, the project manager assigns the employees and defines the workload for each project task. The project tasks are assigned to project phases which are represented by WBS elements in the project template. • A sales order is created with reference to the created project by assigning the top-level WBS element to the sales order. Optional the customer sales order can be created with reference to the quotation. • After the employees involved in the project have carried out their work, they record the hours worked and their trip costs in CATS. The recorded hours are transferred to the project tasks. The Billing is done according to the performance of milestones. Therefore each project phase has a Milestone assigned which refers to the milestone billing in the sales order. • The percentage of completion on each project phase helps the project manger to monitor the project progress independently from the recorded hours. • The final invoice shows the payments already made as well as the final amount.

5. Process Flow Diagram Project with Percentage of Completion Event Purchase orderformalizing request for a project is received Project Manager Creating a Project Generating the Settlement Rule Time recording CATS (211) Define & determine project progress Confirmation of Milestones Technical closure of Project Report of Project Costs (planned/ actual)) Structure Overview of project Progress Consulting Agency Manager (w/o Lean Order) Creating a Quotation (optional) Creating a Customer Order Creating Invoice for 1st Milestone Final Invoice

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

7. Appendix Master Data Used • Operating concern • Controlling area • Company code • Plant • Sales organization • Distribution channel • Division • Order type • Sold-to party • Material • Project template (std. WBS element and std. network) • CATS Data entry profile • Personnel number