Project with Fixed Price and T&M Billing

1. Project with Fixed Price and T&M Billing SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario addresses the typical business processes of an industrial design, consulting, or professional services company that manages commercial projects. • Benefits • Order Management • Project Management • Project Staffing • Employee Forecasts and Time-Recording • Fixed Price Billing • Resource-Related Billing • Key Process Steps • Creating a Quotation • Creating a Customer Order • Maintaining Realization % on Order Item Line • Reviewing and Changing the Project • Staffing the Project • Planning Cost Elements/Activity Inputs • Generating the Settlement Rule • Entering a Forecast • Time Recording (211) • Travel Management (191) • Creating the Fixed Price Billing Document • Creating a Resource-Related Billing Request • Creating the Invoice for the Billing Request • Closing completed Projects (Technical View)

3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 6 for SAP ERP 6.0 • Company Roles • Consulting Agency Client Manager • Consulting Agency Project Manager • Employee (Professional User) • Travel Accountant

4. Detailed Process Description • Project with Fixed Price and T&M Billing • This scenario addresses the typical business processes of an industrial design, consulting, or professional services company that manages commercial projects (a commercial project consists of a work-breakdown structure only, i.e. doesn't require the extensive logistical capabilities provided by a project network and network-activities) . • The project is automatically created from the sales order using a predefined project structure template. The project manager finalizes the project structure and assigns employees to specific activities based on skill sets and availability. Invoicing is carried out on the basis of the fixed-price and resource-related items set up in the sales order.

5. Process Flow Diagram Project with Fixed Price and T&M Billing Event Request for Quotation is received Purchase order for a project is received Client Manager Create the Fixed Price Billing Document Create a Customer Sales Order Maintain Realization % on Order Line Create a Quotation Create Resource-Related Billing Request Create the Invoice for the Billing Request Project Manager Reviewing and Changing the Project Staffing the Project Plan Cost Elements / Activity Inputs Generating the Settlement Rule Time Recording (211) Employee Time Recording (211) Travel Mmgmt (191) Create Trip and Enter Receipts Entering a Forecast Travel Accountant Travel Mmgmt (191) Approve and Settle Trip / Transfer Costs to Accounting

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 • Sales Order type • Sold-to party • Material • CATS Data entry profile • Personnel number