T&M Billing with PS

[Former Member]

Hello All,

We are working on a scenario involving RRB for T&M projects.

We sell services to our customers on a resource / role basis. For example, hours spent performing an Analyst role are sold at $100/hr and GRC are sold at $150/hr. Therefore, it appears that the contract should be set up by role i.e., one item each for Analyst and GRC linking to a corresponding WBS element in PS per role. However, the resource could be performing the Analyst role on a variety of tasks / phases within the project - e.g. functional design, technical design, implementation, etc... Time entry happens through an external system and is posted as confirmations against network activities in the project.

Business wants people to be able to charge their time against a task (functional design, etc...), without being concerned about which role they are performing. The question is mainly about how to structure the project in relation to the contract in SD, which will allow for reporting by task as well as role depending on who charged to the task.

It is agreed that a resource will perform only one role per project. Is it possible to create a material for each role (Analyst, GRC, etc...) and then somehow link the resource to a role in a given project? Has anyone encountered this scenario?

Any input will be greatly appreciated.

[Former Member]

Hi Muralidhar,

From what you have described and from what i understand this can be easily achieved in the standard system itself. For e.g. In the project structure create an activity, say functional design and assign the resource to this activity. Specify the work center, which in turn will calculate the costs for this activity. Timesheet also can be booked against this activity.

I would also suggest you to go through SAP Help and understand the way in which RRB works in case of T&M projects.

Regards,

Gokul

[Former Member]

Hi Murli,

I complety agree with my Friend Gokul above.

Hi,

For T&M billing this scenario,  role is required to be common between PS and SD in terms of using the price.

You can create role based Activity types (Not project activity) for both the roles for example Activity type1(ATT1 Name=Analyst, Desc= Analyst)
define activity price as 100$/hr in kp27

Create work center let say WC1 using ATT1 (Analyst) and cost center CC1. Create a WBS as "Analyst activities" and Create all activities under it as functional design,
technical design, implementationt and Assign the resource (Analyst) to this activity.

In SD contract, You need to create 1 line item as " Analyst" and link it to respective WBS a/c assigned.Now once the resource "Analyst" will start logging the effort,
You can see the actual cost (100$ * no of hrs) from various cost reports.

Same for another role as well.

Ashish

[Former Member]

Hi,

Is Analyst and GRC are only project roles or designation of employees?

Ashish

[Former Member]

Analyst and GRC are only project roles and the person performing these roles in one project can be performing different roles in different projects.

In response to the other suggestions on the forum, costing is not an issue. The resource will have a cost center and activity type maintained in infotype 0315, which will drive the resource's cost. The main issue is with tying up the resource's time spent against various tasks (activities) with the correct line item in SD so that the hours are billed to the customer at the correct rate. The rate is maintained in the SD line item.

If we create a WBS per contract line item and list activities for all the tasks that a resource can perform, the structure will become huge (there are 20 tasks that each resource could perform) - additionally, the external time entry system is not sophisticated, so it would be prohibitively difficult for the user to choose the correct activity to charge their time to.

Please let me know if you want me to add more clarity to the requirement.