How is a Value Category added to a Project ?

[Former Member]

Hello Everyone,

I am trying to determine if using Value Categories are beneficial for my client for Project Systems and Plant Maintenance..

1.The value categories have been created and maintained in OIK2 & OPI2

2. We created cost element groups and assigned them to the Value categories with KAH1

3. We have determined which reports would be helpful most of the S_ALR_   reports

The challenge is now how are the Value categories linked to the Project/WBS/Order?

I tried to create a project to attaché the Value category or at least to the Cost Center group... but I didn't see where I could place those, so now I need help in determining how the value categories are attached to a project... Can anyone tell me please??

How are they assigned them to the project???

Thank you

Tomiya 

[sammar81 · Accepted solution]

Hi Tomiya,

You don't need to assign Value Categories to the Project/WBS/Network/ACtivities.

Value Categories are used to group similar type of Costs/Revenues which gets booked to the Project.

So Lets say you have created a Value Category as Labour which has a cost element Group as 6120200 to 6120299. Now whenever you post actual cost or plan cost using these cost elements. In the reports S_ALR.. you can segregate the cost as per the value category Labour..

Hope it clears your query..

Cheers

Sammar

[Former Member · Accepted solution]

Thank you Sammar,

I am FI CO so now my question is, does posting occur at settlement? As our project settles to an order.  So I'm still not clear how the cost element groups assigned to the Value Categories are recognized ?

i have looked at current projects and I am not able to see where the postings are directed. Do you select a cost element at the creation of the project or in the settlement.

We are trying to determine if using the S_ALR  reports a beneficial. I think they are so now I must convince my client.

Can you assist in this question ?

thank you

Tomiya

[sammar81 · Accepted solution]

Hi Tomiya,

The actual cost to a WBS or a network/activity with PS is booked when we do a GR for a PO. Or we are confirming timesheets, or I am doing a Journal entry using FICO.

So In all of these GL is used and from a WBS poing of view as  it is a CO Object and Cost Element is used.

What you can check is run a CJI3 report for any of your project, you will find that cost has been booked against a WBS using one of the cost elements which are created by you guys in CO.

And now that you have a grouping of CE and assigned them to a value category it serves your purpose of reporting by Value Categories.

The Settlement Also uses Cost Elements, usually a Project ( WBS or Network Activity) is settled to either a Cost center ( If its an expense Project) or to a Fixed Asset ( If it is an Investment Project) or to a PSG ( if it is a revenue Project).

Sometimes projects are settled to higher Level WBS as well or another CO object or directly to a GL..This all depends upon how the settlement profile is a created.

Hope it is clear now..

Cheers

Sammar

[Former Member · Accepted solution]

Thank you so much !! I am clear now and understand fully!!!

Tomiya