Investment projects

[Former Member]

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

[Former Member · Accepted solution]

Dear Lallan ,

Main diff. between customer and investment prjs are following...

1-Customer projects-- Externally financed projects

investment projects---- Internally financed projects

2- 1. Investment Project are long term project in which we create a project and invest money and finally it will be a fix asset for compony.

where as customer project we get money from our customer

for perticuler prj.

it is very difficult to decribe all diff. here in customization of

customer and investment.

i will send document on ur email.

regards,

Vivek tripathi

[Former Member · Accepted solution]

Dear Vivek,

Thanku very much for your valuable answer but i want to know How u know my email id?

regards

Lallan...

Edited by: lallan singh on Oct 7, 2008 9:11 AM

[Former Member]

Investment projects are capital projects. Capex ( capital expenditure budgeting ) can be managed very efficiently using the integration with investment management. 1st level WBS can be linked to end node in investment structure. Budget across projects can be managed top down from investment management module.

WBS becomes an investment measure when investment profile is attached to it. Costs are periodically settled ro AUC or CWIP account to show in the books and subsequently settled to a fixed asset so that depreciation starts.

[ansar_shaikh2]

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

[Former Member]

Hi,

In project system there are the some difference between Investment & Customer Project as following.

1. Investment Project is use to create a project as capitalisation(AUC to Asset).

In customer project you can get result anyalyasis.(Difference between Cost & revenue)

2. In investment project you can make a budget.

In Customer project budget is not reqd.

3. In investment project Actual cost incurred on GRN(Migo).

In Customer project Actual cost incurred on Billing..

It's above major difference.

Regards,

Vishal Kr. Sharma

[Former Member]

dear Vishal,

How u can say that in customer project there is no need of budget and actual cost incurred on billing ?

i am not getting.

can any one give me more details or documents which contains basic and configuration difference between customer project and investment project..

regards

Lallan