CAPEX projects with multiple cost objects

[Former Member]

Dear Experts,  

                    I was going through SAP help and found the below given statement on which I need your help to understand the business objective behind this statement:

'When implementation projects for the PS System are filtered to make them IM-specific, all the logistical functions such as networks, capacity requirements planning and resource planning are hidden, since they are primarily required for customer projects. If you also want to use these functions for capital investment measures, you should not use an implementation project specially filtered for IM. In this case, do not proceed as described above, but instead generate an implementation project using the application area PS (Project System) as a selection criterion."

Here, I want to know, Why we do not use networks, capacity requirements, resources planning in CAPEX projects which use IM components in it?

What if,when we use them (especially network and activities) in such environment.?

Please share your experiences.

Thanks & Regards

Manas

[Makal]

Hello Manas,

There is no restriction on using network activities in CAPEX projects.

Manas Ram wrote:
.....But my real concern is to know why sap does not recommend to use all PS components along with IM components?....
Regards
Manas

Where is SAP recommending, not to use network activities in CAPEX projects? Where did you read it?

Don't get confused. You can use network activities in CAPEX projects as well.

Regards,

Amaresh Makal

[sanjeevc]

Go though the below summery and understand of concept of network and wbs requirement in PS.

The complex plans of a company can be represented in SAP PS using the two structures work breakdown structure (WBS) and network (NTW).

The hierarchical structure work breakdown structure reflects the structure of such projects.

Networks are used to represent the detailed processes.

To plan and monitor costs, you can use WBSs and/or NTWs.

You plan and post revenues on work breakdown structures, Budgeting is only possible for work breakdown structures. However, by assigning one, or if required, more than one network to a work breakdown structure, the costs of both structures can be checked against the budget as assigned funds.

Time scheduling is carried out using WBSs and/or NTWs. Time dependencies between individual tasks in a project can be planned by linking the activities of networks.

To plan material and capacity requirements, you use networks. When you create WBSs and/or NTWs, you can use standard structures as templates.

Consider the requirements of your projects.

Regards,

Sanjeev

[Former Member]

Sanjeev,

             Your elaborated response says all that I am familiar with. But my real concern is to know why sap does not recommend to use all PS components along with IM components?

What difficulties we would be having in using them in such scenarios?

Waiting response from other experts also to share their experience.

Regards

Manas

[former_member209919]

Hi Manas,

You can have IM with PS , WBS, networks and activities and this is a normal process.

When you use IM, you can create Project and WBS structure from  the appropriation request in IM.. I assumme that the statement is related to , if you need networks and activities you have to create directly in PS...

But it is clear that you can use networks and activities for CAPEX projects linked to IM.

Regards,

Sara

[Former Member]

Thanks to all .

The doubt is clear now.

Closing the thread.

Regards

[former_member209919]

Hi Manas,

When you use IM you can have WBS or internal orders as investment object (linked to the investmen program) But your WBS can have network and activities. 

Other thing it is if it make sense enter  capacity requeriment or resource as " investment", usually this is a expense that shoul not be capitalized.

Not sure if it is answered your question..

Sara