Investment projects

Dear Experts,
I have idea abt customer projects but I am new in investment projects. please suggest me diffrerence between investment projects and customer projects. waht is the basic difference and what is difference in configuration between these two projects.
thanks in advance.
Lallan

Customer Projects:
PS is being used to manage the sale of anything. If we are building something that will be ultimately sold to a Client.
1) Customer Project with Assembly Processing:
Step1: Create a quotation that leads to a Sales order containing Configurable Materialas line items which will automatically generate a Project which in turn create material reservations or PR and PO.
2) The project's part in this process is to manage the basic scheduling of the procurement cycle.
3) Billling the Customer is being done from the Project based on Milestones which would have been used to create a billing plan in the sales order.
2) Customer Project with Direct Sales:
In this case, in addition to the above steps, customer is billed on the resources you have used. This is made possible through RRB-Resource related billing and DIP(Dynamic Item Processor) profile
3) Service Project:PS is used here for the purpose of servicing equipment that may be on a customer site or even in our own site. In this case, we may need to use CS and PM modules. PS is created with a structure representing the various pieces of equipment. It will be like sales oriented project, but we need to connect PM orders to the WBS or Network.The planned costs can be seen by the project and the actual costs can be settled to the project. Billing of the customer could be done through RRB, where CATS timesheets and other actual costs can be transferrred to the customer invoice with a mark-up.
In simple terms Customer Projects bring revenue to the Company.
Capital Investment Project was used in malls & commercial building contruction, the main thing is that settlement is done against AUC (asset under construction), ur complete building will be ur asset, but during contruction that will be ur AUC (asset under construction).
hope u will understand.
Capital investments, means the acquisition of fixed assets as the result of in house production or purchase.
In SAP the term investment is not limited only to investments you capitalize for book keeping or tax purposes. An investment in this context can be any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed.
Hope this will be enough to understand the diffrence
Regards,
ANSAR

Similar Messages

Sell an investment project that needs to be an asset of the company

I'm working on a new project for a service company, this company has it's own network and equipment and it is a company asset.
The scenario I have is the next...
The client pays the entire cost of the project, so this is a sale, but the result of the project is a company asset, the cost of the project will be discounted of billing receipt of the client.
I have already worked with investment projects and sales project, but in this case how should I treat this scenario?
I need suggestions...

Hi,
As per my understanding of the issue
Create mulitroot WBS Elements.
WBS1 is internally financed and to carry out the activities which are funded by the company itself.
WBS2 will be an externally financed e.g by the client.
So you can know what cost has been incurred for that WBS and what was the budget available..
so it helps in tracking the cost and budget independently.
Hope its useful.
Reward points if useful.
Thanks...

Investment project down payment config

Dear all
please help me on the following issue.
i am working on a investment project.
there are many POs generated with account assginment of WBS or Network.
almost every PO need to do the down payment.
but i don't know how to config it.
is it in OBYR? or somewhere else?
please give me some advice.
thanks a lot.
Judy

Dear Judy ZHU,
Menctioned particular WBS cost object when ever the down payment transaction is carring out. If ur a PS consultant need not worry about this. Y because it is required some accounting knowledge regarding Reconsalation for the Down Payment. Better to hand over to FI Consultant, he will deal it. Other wise revert me back.
Regards.

Settlement of Investment Projects

Hello,
At my present client, for Investment projects the client want to settle top level WBS to AUC and capitalise it. So ideally the cost from lower level WBS should flow to top WBS. I am using substitution to remove investment profile from lower WBS..
My concern is how do I auto populate the settlement for lower WBS to top WBS. I am aware about settlement strategy and OSS note 211324.However the client (PMO) doesnt want to implement that note. So this rules out option of maintaning settlement strategy to Superior WBS automatically. I am just checking if anybody has faced such situation and approach to be adopted for same. Maintaning settlement rules manually or creating enhancement are the only option I see.
Please let me know your opinions.
Thanks
Sarang

hi
its better you can maintain manually.

How to close an Investment Project without Capitalizing

Hi All,
Requirement is how to close an Investment Project midway, when cost have been settled to AuC over several periods.
In present system they transfer the cost from their Work In progres account to a Cost center.
Thanks and regards
Maneesh

let us say over the time 1000 is in AuC
do a financial journal
Cr 1000 WBS Dr 1000 Cost centre (just use a dummy cost centre)
Now settle WBS to AuC
Dr 1000 WBS Cr AuC 1000
Now the AuC has 0 and can be deleted
The WBS has 0 and can be closed
The cost centre now has the debit 1000 - you can do whatever you want with that

Procurement part in Investment Project

Dear Gurus,
Our client needs to start a investment project.
Pl. give the process for the procurement part in a investment project.
Regards,
Amol

Hi Amol,
It could be a MTS scenario with PS integration. If you have projects in construction sort of, then you need to have a PS in your system implemented. You can follow the normal procurement cycle with focus on PS and project allocation of materials.
Share more details about your project to help more.
Regards
Shiva

Investment project / customer project

Hi
Investment project having only WBS element, it does not have ACTIVITIES, but Customer project u have both WBS & ACTIVITIES. wht is the reason behind Investment project does not having ACTIVITIES.
There may be some reason behind this logic, can u explain please.
thanqu
raj

Hi,
I am Ganesh - application consultant for PS. There is no hard and fast rule, as far as these two scenarios (Customer project and Investment project) are concern. You can have activites and networks in Investment projects also. Mainly, it is driven by the business need. When investment projects do not have any SD/MM integration, the activities are not used. But, there is no such distinction. In nutshell, you can have networks/activities in both caes.
Regards,
Ganesh

AFE process for Customer and Investment Project

Hi All,
My client want to have AFE process for Customer as well as Investment Project Creation.
Once, AFE is approved a project should be created along with project plan valueswith approved values in AFE request. Also, in case any supplement need to project also should have a similar AFE approval process. For this client, there is No IM module implemented as such.
Want to know how we can map this scenario in SAP.
Thanks in advance.
Regards,
Atul R. Rajmane

IYou can make use of simulations...create simulation version before creating operative project...you may create more than one simulation for various cost plan scenarios..you can plan revenue in simulation also for customer project...whoever gives approval for project expenditure.... they may compare the cost of the simualtion version and approval can be transfer of simulation version to operative version....Also, you can use this for supplements...create simualtion during course of project...then add actvitiy, material..etc., do the cost analysis...and provide the supplement budget accordingly to the new planned cost.

Line items for Capital investment project report

Hi guys,
any idea how may I report on the line items for CIP similar to the info I get via t-code CJIC but for multiple WBS elements with investment profile. Is it possible that I may find needed info based on the status of the line item?
Thanks and regards

Hi,
without Investment Profile you can not create AUC or main asset through Project.
its just only oneor two settings - only creation of Investment profile and its assignkent to project profile.
still if you dont want to go with this - then
Maintaiin settlement rule manually to FXA. in this FI person will create C- WIP ( AUC) by normal transaction (AS01). and will maintain in settlement rule- respective WBSE.
venkatesh
Edited by: venkatesh kulkarni on Nov 20, 2009 1:05 PM

Investment Project

Hi All.
Need some suggestion if it is possible to avoid copying of Investment profiles in lower WBS while creating project structure.
Need investment profile for AUC only in the Top WBS. Means need only one AUC for the whole project.
Thank You
Best Regards
Maneesh

Or else better not to maintain it in project profile. Maintain manually in top WBS.
Regards

Vendor details along with amount settled to an asset in an investment project.

Hi Guys,
Here we are following std process i.e. PR/PO with WBS as account assigned, then GR-GI/SES and then settle it to AUC and then in the end to FXA.
Now the requirement is to capture all the line item details (including vendor with the amount) settled to asset. I have tried a lot and get the WBS, AUC from FXA and the CO doc., FI Doc. & the settlement doc. but not able to link CO doc. of settlement to the GR-GI CO document.
Can any one help me on this or can suggest any other work around?
Thanks & regards,
Soubhagya

Hello Soubhagya,
With % settlement it looks difficult because what if you have total actual cost (6 line items) is 60K and you want to distribute it among 5 FXA on line items wise, as you will be maintaining % distribution rule (12%) but your objective to get the report is like distribute 2 line items(actual) cost to FX1, 1 line item cost to FX2 and so on..
For that,It will be more appropriate to maintain settlement by 'Amount' also.
Now,for development of this report, it is actually very difficult because we lose the track of line item details (VT 4) when we reach at settlement (WBS->AUC) ,as we have only the total cost only to be adjusted/distributed and it goes the same way till FXA.
Even if a report is to be developed then I can think of some 'Reference Fields' at GRN- > Settlement (AUC) -> Settlement (FXA). All these documents should be posted w.r.t. this reference field and ABAPer has to collect the line item details with this reference field and show in the o/p against an asset number.
(Development of these formats/screens for running actual transaction in background is a tedious job ) And obviously that would be applicable for new projects (new GRNs) only.
For existing one, it looks near to impossible to me.You can have few words with ABAPer to discuss on it.
Regards
Saurabh

Capitalization of an investment order/project - Original cost elements

Hi all,
I do have a question concerning the capitalization of an investment order/investment project onto an asset under construction (AuC).
I have configured the system in a way, using capitalization key and capitalization versions, that I can capitalize 100 % of the costs within the IFRS depreciation area to the AuC and 0 % of the costs within my local gaap depreciation area to the AuC.
Instead of capitalizing the costs within the local gaap depreciation area, the cost are booked to the u201CAccount for capitalization differences/nonoperating expensesu201D.
With the settlement of the investment order/investment project to the AuC the original cost accounts/cost elements (shared between IFRS and local gaap) are credited and the AuC is debited for the IFRS deprecation area and the u201CAccount for capitalization differences/nonoperating expensesu201D is debited for the local gaap depreciation area.
My problem is, that I do not want to have the costs for my local gaap P&L on the u201CAccount for capitalization differences/nonoperating expensesu201D, I do want to have them instead on the corresponding local gaap cost accounts/cost elements to the original shared cost accounts/cost elements within FI and CO.
Is there any possibility to do this within SAP Standard?
(If possible the solution should also work within New GL, using multiple ledgers for parallel accounting instead of different account)
Thank you!
Regards

Hi Prad,
I am on 4.6C/D.
Please check on your settings for Capitalization of AUCs created through Investment Support Measures: -
1. Go to the IMG, Asset Accounting under Special Valuation and determine the Depreciation Areas you would like your Investment Support Measures to post to.
2. Still in Special Valuation, define an Investment Support Key and assign it to the relevant depreciation area
3. Also, define the relevant account determination for such posting under the Special Valuation
4. Proceed in the same area to define the Transaction type for the Investment Support Measure by changing any of the Standard ones in there in line with your requirements
5. Now move back to IMG, Asset Accounting then Master Data. Here you go to the screen layout and pick the relevant asset class for AUCs. Get this logical feild group and pick on the item Investment Support. Proceed to define its feild group rule as optional at the required asset maintenance level (Main Asset and/or Sub Level)
6. Leave the IMG and access the relevant AUC's Master Data from the User Menu. Click the tab Investment Support and insert the Investment Support Key you created in note 2 above
7. Now capitalise the AUC. Should work

Project as an Investment measure - Unable to settle

Hi,
Request help on the below situation.
1.We have created a project as an Investment project using tcode CJ20N and a WBS element in the project also.
The WBS element when released, creates an AUC automatically.
However the AUC created does not have any depreciation areas active in it because, in our system, the asset class 4001 ( AUC for Investment Profile) has all the depreciation areas deactivated in it.
2.Because of this, we end up in the error as below, while attempting to settle the WBS element.
No depreciation areas have been defined for asset 40000-0
Message no. AA025"
3. Hence we attempted to activate the depreciation areas for the asset class 4001 to be in line with the asset class 4000 (AUC asset class)
4. But after doing this we were not able to even release the WBS elements which were created after this config change. The attempt to release ended in update termination error as below.
" Express document "Update was terminated" received from author "Hemamalini S""
5. We conclude that if the depn areas are deactivated, we are not able to settle the WBS and if the depn areas are activated we are not able to release the WBS.
Thank you
Hemamalini

Try to ad the the depreciation area's to the asset under construction:
Set first the default valuesfor the depreciation area: TC OAYZ
With the transaction AFBN - New Depreciation Area you can ad the depreciation area to the AUC class
First test this this transaction code is working for all the assets

PS module ---Functional steps in Investment and Customer Projects in PS

Hi Experts,
I am new in PS module,Pls tell the steps in----->
1>Investment Project---The steps and transactions in PS according to Flow of PS module in Investment project from start till end of PS.
2>Customer Project--The steps and transactions in PS according to Flow of PS module in Customer Project from start till end of PS.
I    want to know functionally how the above Projects operate differently functionally with transactions and Flow.
Regards,
Rahul

Hi Rahul,
In addition to link provided above , please have a look on functional steps for Typical Investment & Customer project scenarios as follows.
Investment Project
1. Create a suitable WBS using Project builder.
2. Plan basic dates manually for WBS elements using Project planning board
3. Plan costs manually for WBs elements using Easy cost planning
4. Budget WBS elements
5. Enter actual dates during the project execution phase.
6. Assign various documents for WBS elements using Execution Services for updating commitment &
   actual costs.
7. Calculate overhead costs & carry out settlement to assets under construction or completed asset in
   Asset accounting.
Customer Project
1. Create a customer inquiry in SD.
2. Create a project (WBS & Network) using standard structures
3. Plan dates using Scheduling
4. Plan Resources
5. Plan materials by transferring Bills of Material
6. Plan costs using Network costing
7. Create sales pricing data ( Create quotation bases on project cost plan,Plan revenues for project)
8. Create a sales order with a bliing plan in SD
9. Create confirmations ( using CATS)
10. Purchase matetrials & services.
11. Document variance usign claims
12. Post Revenues using Milestone billing
13. Calculate overhead costs,carry out a results analysis & settle results analysis values to profitability
      segment.
Regards
Tushar

Single project definition (Investment + Overhead)?

Hi PS gurus,
I have a business requirement, single project can be having both investment & overhead, meaning, in the project some costs have to be settled to final asset (capitalisation) and some costs are to be settled to cost centre (revenue expenditure).
please let us know how i can proceed.
Currently, we are creating investment project & overhead project separately using investment profile & overhead profile respectively.
Thank you in advance,
Srihari

Created project definition using invesment profile through CJ01 and wbs elements 3 inserted, viz
WBS element-0 -   Dummy -
Level 1
WBS element 1 -   Investment measure -
Level 2
WBS element 2 -   Overhead                 -
Level 2
Networks created through CN21
Network1 assigned to WBS element 1 -PR/PO created / MIGO/ML81n carried out then MIRO
Network2 assigned to WBS element 2 -PR/PO created /MIGO/ML81n carried out then MIRO
CJ88 - Settlement
WBS element 1 - costs moved from NW to WBS elements to AUC - capitalized by creating settlement rule on final asset
WBS element 2- costs moved from NW to WBS element, create settlement rule on Cost Centre
while creating WBS elements, u have to be careful in ensure the WBS element 2 does not investment profile, check all control tabs in WBS & NW.
The above process applied for Project with Investment + Overhead Expenditure.
Thanks
Srihari

Investment projects

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