Best WBS structure

[Former Member]

Hi all!

I´m trying to decide what would be the best structure for my projects. I need to post costs directly in my WBS elements. I´n not sure weather to set all the account assignment WBS elements at the same level (for example, level 2) or to have a mixed structure with account assignment WBS elements at level 3 and at level 2.

Can anybody tell me if there are specific advantages of having all acc.ass. WBS elements at the same level? Or is there no particular advantage?

Thanks

Mart

[Former Member · Accepted solution]

Hi,

I don't know that anything called as Best WBS structure can be defined or not because it depends on the business requirements... As you have thought you can keep your first level WBS as non-account assignment element and to see the overall project costs whereas the 2nd level wbs can be created with respect to your requirements of the major activities in the Project (to have separate budget activity wise) and then the subsequent level of wbs can be used to breakdown the major activity (and even budget can be allocated if reqd.) Other experts may add to this...

Regards,

Bala.

[Former Member · Accepted solution]

Bala,

Thanks for your feedback. I´m perfectly aware that there is no such thing as a best structure and that it depends on the bussiness needs...maybe the subject I entered was not that fortunate!

Both options I suggested fit the business needs...I´m just trying to find pros and cons in order to decide per one or other...

Thanks anyway!

[stheurkar]

Hi,

Account Assignment Element indicator is a one of operative indicator for WBS Element.

Usage:

If you want to post actual costs and commitments to a WBS element, you have to indicate that the WBS element is an account assignment element in the WBS. All objects that can be assigned costs and commitments within a project (for example, orders, networks, or purchase orders) can only be assigned to a WBS element if you have set the account assignment indicator for the element.

In Customizing for the Project System, you can set an indicator to specify that costs are planned for all WBS elements or only for specific WBS elements.

Regards

Sandeep

[Former Member]

Hi all,

Thanks for your replies. My question remains unsolved, but I guess it is not an easy one to answer at it fully depends on the customer needs. I was just trying to find some clue in order to choose one or another structure.

Anyway, as I say, thanks.

Regards

[luis_rocha2]

Hi,

as said before, it depends on customers needs.

Still, we can have a discussion anyway on opinions, strengths and weaknesses.

Here are a few thinking points:

level 1. Top level WBS, level 1 is the project number

level 2. breakdown per project phase

level 3. project per company code

If you are following a project methodology, then standard project phases are probably defined and standard for alll projects. If you are involved in R&D activity projects, probably capitalization rules come into discussion (IFRS or US GAAP possibility to capitalize R&D tasks). Then, if you are running multiple company code projects, you probably need the breakdown per company code, assuminig you are not really doing CO inter-company postings...

Anyway, here are a few thoughts, the level 2 and level 3 could be swapped...I am interested in the discussion, let me know your thoughts or additional dimensions that would be critical to consider in a "general approach" to WBS structures...

Luis

[Former Member]

Hi,

The work breakdown structure (WBS) is a model of the project that organises project tasks into a hierarchy.

u2022 It is the functional basis for further planning steps in a project, for example, for process planning, cost planning, scheduling, capacity planning or costing, as well as project control.

u2022 It gives you a clear picture of the project and facilitates the co-ordination and implementation of the project from a management standpoint.

u2022 It shows the work involved in a project.

You can keep all the WBSE as account assignment .

Try to break the project into various WBSE and further you can break them until you get the desired output so that project can be tracked at various levels.

Muzamil