Cost Planning

Cost planning is a critical component of project management in SAP PS, enabling organizations to estimate, track, and control expenses throughout the project lifecycle. Costs can be planned using manual techniques with Work Breakdown Structures (WBS) or automatic techniques with networks and assigned orders.

1. Manual Cost Planning using WBS structures

Manual cost planning provides flexibility and control over budgeting. SAP PS supports four methods for manual cost planning within WBS elements :

Overall Planning :
Allows entering total costs for each WBS element manually. These costs can be distributed across fiscal years, enabling long-term financial planning.
Detailed Planning :
Focuses on planning by cost element (e.g., labor, materials) and time period. This granular approach provides insight into cost distribution and timing.
Unit Costing :
Uses a predefined profile to enter quantities of required resources, such as materials, internal activities, or external services, for each WBS element. Costs are calculated based on these quantities and their associated rates.
Easy Cost Planning :
Provides a user-friendly interface for cost element-based planning. It simplifies the budgeting process by using a quantity structure (e.g., specifying the number of units required and their costs).

2. Automatic Cost Planning with Networks and Assigned Orders

Automatic cost planning leverages the integration of networks and orders with WBS elements, streamlining the budgeting process and enhancing accuracy.

Cost Planning Using Networks

In this approach, costs are automatically calculated based on the resource requirements identified in network activities and operations. This method offers several advantages :

Reusability: Plan data from existing projects can be copied to new projects, reducing setup time.
Dynamic Adjustments: If project activities are rescheduled, the associated cost planning adjusts automatically.
Granular Planning: Costs are planned by cost element and time period, ensuring detailed tracking.

Planned Costs of Assigned Orders

WBS elements designated for account assignment can be linked to various orders, such as :

Internal Orders: Share the same cost planning methods as WBS elements.
Service and Maintenance Orders: Enable cost tracking for operational activities.
Production Orders: Automatically assigned to stock-holding WBS elements when linked to project stocks.

Key points to consider :

Assignments to WBS elements can be created manually or automatically.
For plant maintenance orders, the WBS element can be derived from the functional location, provided the WBS element is already stored in that location.
Cost planning for maintenance and production orders follows similar principles to network cost planning, ensuring consistency.

3. Planning Statistical Key Figures (SKFs)

Statistical Key Figures (SKFs) are measurable values used to monitor specific units or metrics relevant to a project.

Examples include:

Mileage covered during a project.
Number of team members assigned to the project.
Machine hours utilized.

Features of SKF Planning:

SKFs can be applied to multiple objects, including projects, cost centers, profit centers, internal orders, and business processes.
The planning process for SKFs is similar to detailed cost planning, focusing on precise and period-based measurements.

Conclusion

Effective cost planning in SAP PS is essential for achieving project success. Whether leveraging the manual flexibility of WBS elements or the automated precision of networks and assigned orders, SAP PS provides robust tools to manage project costs. The inclusion of Statistical Key Figures further enriches planning by enabling monitoring of non-financial metrics that impact project outcomes.

By carefully selecting the appropriate cost planning methods and integrating them into your project processes, your organization can enhance budgeting accuracy, resource optimization, and overall project efficiency.

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Cost Planning​

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Cost Planning