Presenting Closing The Year with SAP's Project System & Investment Management

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Avoid the mistakes that break next year’s project budget reporting! Walk through the steps required to close the year with SAP’s Project Systems and Investment Management.

* Clarify the year-end role of Project Systems
* Describe two reporting methods within IM
* Explain the most efficient IM transactions
* Expand on Advance Commitment budgeting
* Identify the mistakes to avoid

Published in: Business, Technology

Presenting Closing The Year with SAP's Project System & Investment Management

  1. 1. Closing the Year with SAP’s Project Systems & Investment Management <ul><li>Presenter: </li></ul><ul><li>Kent Bettisworth </li></ul><ul><li>President & Executive Consultant </li></ul><ul><li>BETTISWORTH & ASSOCIATES </li></ul><ul><li>[email_address] </li></ul>
  2. 2. Introduction <ul><li>Learn to avoid the horrors that break next year’s budget reporting! Walk with me through the trick steps required to close the year with SAP’s Project Systems and Investment Management. Uncover the secret report treat every company needs! This session is certain to be a scream! </li></ul><ul><li>I will: </li></ul><ul><li>Clarify the role of Project Systems at year-end </li></ul><ul><li>Describe the two reporting methods within IM </li></ul><ul><li>Explain the most efficient IM budget transactions </li></ul><ul><li>Expand on Advance Commitment budgeting </li></ul><ul><li>Identify the mistakes to avoid </li></ul>www.bettisworthassociates.com
  3. 3. What We’ll Cover … <ul><li>Define ‘successful’ year-end close </li></ul><ul><li>Prepare to close the year </li></ul><ul><li>Open the new year </li></ul><ul><li>Complete the year-end close </li></ul><ul><li>Questions </li></ul>www.bettisworthassociates.com
  4. 4. A Successful Year-end Close is… <ul><li>New year program (IM) budget reflects management’s top-down direction </li></ul><ul><ul><li>Funding structure and allocation is up-to-date </li></ul></ul><ul><li>Top-down and bottom-up gap is measurable </li></ul><ul><ul><li>Project wish list is refreshed and plans are current </li></ul></ul><ul><ul><li>New projects approved and funded if 1 st quarter start </li></ul></ul><ul><ul><li>Existing project plans and budgets are up-to-date </li></ul></ul><ul><ul><li>Project commitment delivery dates are up-to-date </li></ul></ul><ul><li>Depreciation forecast is current </li></ul><ul><ul><li>Projects are closed and placed in-service </li></ul></ul><ul><ul><li>Forecast in-service date updated for on-going and new projects </li></ul></ul><ul><li>Advance Commitments funded for Future Years </li></ul><ul><ul><li>Future years are budgeted and funded </li></ul></ul>www.bettisworthassociates.com
  5. 5. The Project Portfolio Process <ul><li>Phase 1: Begin preparations for the upcoming cycle </li></ul><ul><ul><li>Refresh the wish list </li></ul></ul><ul><ul><li>Update in-progress projects </li></ul></ul><ul><ul><li>Compare grass-root plans with executive guidance </li></ul></ul><ul><ul><li>Align budget with strategic goals </li></ul></ul><ul><li>Phase 2: Finalize the budget </li></ul><ul><ul><li>Adjust to market conditions </li></ul></ul><ul><ul><li>Complete the year-end close </li></ul></ul><ul><li>Phase 3: Manage throughout the cycle </li></ul><ul><ul><li>Control project expenditures </li></ul></ul><ul><ul><li>Adjust to market conditions </li></ul></ul>www.bettisworthassociates.com
  6. 6. Close the Year in 10 Easy Steps! www.bettisworthassociates.com Phase 1 Phase 2 Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8 3 Before first IM27, & after Appropriations, Projects, or Orders Add new, Close old, Update plan & depreciation, Update budget, Settle IMx,CJ20N, CJ40, CJ9C, CJ3x,CJ8x 4 -6 to -3 months New Year Program Create & Update new approval year program structure, plans, & budgets IM27 IM27_Repeat 5 First month of new year Purchase orders Update commitment delivery dates CJCF or KOCF 6 First month of new year Projects /Orders Prior Year Program Carry-forward project budgets Carry-forward program budgets CJCO or KOCO IMCAOV 7 First month of new year New Year Program Final update of new approval year IM27_REPEAT 8 First month of new year New Year Program Finalize new approval year plan Finalize new approval year budget IM35 IM32 9 First month of new year New Year Program Block new project assignment to prior approval year IM02 10 First month of new year Projects and/or Orders Distribute budget to projects Release budget IM52 CJ32 * 2 nd month of new year Prior Year Program Close old approval year IM27_CLOSE
  7. 7. What We’ll Cover … <ul><li>Define ‘successful’ year-end close </li></ul><ul><li>Prepare to close the year </li></ul><ul><li>Open the new year </li></ul><ul><li>Complete the year-end close </li></ul><ul><li>Questions </li></ul>www.bettisworthassociates.com
  8. 8. Do not Open New Year Yet! www.bettisworthassociates.com Program - 2006 Program - 2007 Program - 2008 Measures Measures Measures Complete or Abandoned Complete or Abandoned New Projects & Wish List New Projects & Wish List Fiscal Year Change Fiscal Year Change Carry Forward Carry Forward Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8
  9. 9. Is the Structure Current (IM22)? <ul><li>Program - represents a portfolio of projects across multiple approval years </li></ul><ul><ul><li>Do you need a new program? </li></ul></ul><ul><li>Program position –reflects your organization’s method of funds allocation. </li></ul><ul><ul><li>Has the structure or method of allocation changed? </li></ul></ul><ul><ul><li>Do projects need to be reassigned? </li></ul></ul>www.bettisworthassociates.com Measures Project (WBS) Order Appropriation Project (WBS) Order Appropriation Project (WBS) Order Appropriation
  10. 10. Reassign Projects (IM05)? <ul><li>Reorganization of portfolio results in reassigned projects </li></ul><ul><li>Reassign in CURRENT year & BEFORE new approval year is created </li></ul><ul><li>Cannot transfer between programs </li></ul><ul><li>See OSS 192815 to reassign carry-forward projects </li></ul>www.bettisworthassociates.com
  11. 11. Assign Plan Version to new Approval Year <ul><li>Use S_ALR_87003567 to activate each IM approval year and plan version and, </li></ul><ul><li>To designate a default plan version for copying plan values from carry-forward projects to the program positions </li></ul>www.bettisworthassociates.com
  12. 12. IMR8 - Find Missing Assignments www.bettisworthassociates.com
  13. 13. Key Integration with Projects www.bettisworthassociates.com Step Timing Object Step Description SAP Transaction 3.a. Before first IM27 Projects and/or Orders Copy actual to plan for closed months CJ9C or KO15 3.b. Before first IM27 Projects and/or Orders Update project plans Update commitment dates CJ40 or KO12 ME22 3.c. Before first IM27 Programs Projects and/or Orders Adjust program budgets Adjust project budgets IM32 CJ3x, KO2x 3.d. Before first IM27 Projects Fund & Release 1 st Qtr new year advance commitments IM52, CJ32 3.e. Before first IM27 Projects and/or Orders Update depreciation simulation data CJ20N or KO02 3.f. Before first IM27 Projects and/or Orders Settle projects Close projects CJ8x, KO8x CJ20N ,KO04 3.g. Before first IM27 Appropriation Requests Refresh and plan 'wish' list IMA11, IMA12
  14. 14. Update Project Planning (CJ9C) www.bettisworthassociates.com
  15. 15. Adjust Budget & Fund 1 st Q Advances www.bettisworthassociates.com
  16. 16. Update Depreciation Forecast <ul><li>Enter the ‘Depreciation Simulation’ data on all capital investment measures and Appropriation Requests </li></ul><ul><li>Include the anticipated capitalization amounts in the depreciation forecast </li></ul>www.bettisworthassociates.com
  17. 17. Year-end Mistake: Wish list out-dated or non-existent <ul><li>Productivity enhancement </li></ul><ul><li>Capture pre-approval costs </li></ul><ul><li>Reflect plan costs in portfolio </li></ul><ul><li>Create new project </li></ul><ul><ul><li>Copy plan values from appropriation request </li></ul></ul>Mistake Result Solution Not integrating or updating proposed projects in your portfolio. (IMA12) Proposed project cost is buried in departmental overhead. You lack a complete picture of your project portfolio. Use appropriation requests (as of release 4.0) or planning projects to manage your wish list. Plan Values Plan Values
  18. 18. Year-end Mistake: Projects Not Closed Mistake Result Solution Failure to timely close projects (CJ20N or KO04) Depreciation, both financial and tax, is inaccurate. Improve close-out processes. Maintain frequent reviews of projects beyond projected completion date.
  19. 19. What We’ll Cover … <ul><li>Define ‘successful’ year-end close </li></ul><ul><li>Prepare to close the year </li></ul><ul><li>Open the new year </li></ul><ul><li>Complete the year-end close </li></ul><ul><li>Questions </li></ul>www.bettisworthassociates.com
  20. 20. Close the Year in 10 Easy Steps! www.bettisworthassociates.com Phase 1 Phase 2 Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8 3 Before first IM27, & after Appropriations, Projects, or Orders Add new, Close old, Update plan & depreciation, Update budget, Settle IMx,CJ20N, CJ40, CJ9C, CJ3x,CJ8x 4 -6 to -3 months New Year Program Create & Update new approval year program structure, plans, & budgets IM27 IM27_Repeat 5 First month of new year Purchase orders Update commitment past delivery dates CJCF or KOCF 6 First month of new year Projects /Orders Prior Year Program Carry-forward project budgets Carry-forward program budgets CJCO or KOCO IMCAOV 7 First month of new year New Year Program Final update of new approval year IM27_REPEAT 8 First month of new year New Year Program Finalize new approval year plan Finalize new approval year budget IM35 IM32 9 First month of new year New Year Program Block new project assignment to prior approval year IM02 10 First month of new year Projects and/or Orders Distribute budget to projects Release budget IM52 CJ32 * 2 nd month of new year Prior Year Program Close old approval year IM27_CLOSE
  21. 21. Prepare the Investment Programs www.bettisworthassociates.com Step Timing Object Step Description SAP Transaction 4.a. -6 to -3 months Current Year Program Update next year plans & budgets (within current year) IM35 IM32 4.b. -6 to -3 months Current Year Program Fund next year advance commitments (within current year) IM32 IM52, CJ32 4.c. -6 to -3 months New Year Program <ul><li>Create New Approval Year </li></ul><ul><li>Copy structure </li></ul><ul><li>Carry-forward measures </li></ul><ul><li>Carry-forward plan and budget </li></ul>IM27 4.d. -6 to -3 months New Year Program Analyze the bottom-up plans Update new year plans S_ALR_8701nnnn IM35 4.e. -6 to -3 months New Year Program Copy plans to budget Adjust for initial top-down budget NOTE: No budgets are released IM32 4.f. -6 to -3 months New Year Program Measure the budget gap Z121PLANBUDGT 4.g. -6 to -3 months New Year Program Repeat New Approval Year NOTE: Repeat steps 4.a to 4.g IM27_Repeat
  22. 22. Adjust Current Year Program (IM35) <ul><li>Assumes using Annual plans and budgets </li></ul><ul><ul><li>Configured in IM program type </li></ul></ul><ul><li>Must keep years in sync with carry-forward project annual plans and budgets </li></ul>www.bettisworthassociates.com Current Year Program
  23. 23. Analyze Bottom-Up Project Plans www.bettisworthassociates.com Next Yr Initial Bottom-up Current Year Program
  24. 24. Fund Advance Commitments (IM32) <ul><li>In current year, fund 1 st quarter advance commitments </li></ul><ul><li>Eliminates unnecessary reduction in current year budget </li></ul><ul><li>NOTE: Applicable where using availability control </li></ul>www.bettisworthassociates.com Current Year Program
  25. 25. Open New Approval Year (IM27) <ul><li>Several months before the new cycle begins: </li></ul><ul><ul><li>Update individual project plans and budgets first </li></ul></ul><ul><li>Use the settings to create: </li></ul><ul><ul><li>Funds allocation structure </li></ul></ul><ul><ul><li>Carry forward projects excluding completed or cancelled </li></ul></ul><ul><ul><li>Copy ‘project’ plan & budget values to new approval year </li></ul></ul>www.bettisworthassociates.com
  26. 26. Open New Approval Year (IM27) www.bettisworthassociates.com
  27. 27. Two Options for Current Year IM Reporting <ul><li>Option 2 - Current year plan-budget-expenditures </li></ul><ul><ul><li>Carry-forward projects </li></ul></ul><ul><ul><ul><li>Statistical values created and stored in IM database </li></ul></ul></ul><ul><ul><ul><li>Statistical values viewed in IM reports </li></ul></ul></ul><ul><ul><li>Current projects </li></ul></ul><ul><ul><li>Standard SAP reports formatted for option 2 </li></ul></ul><ul><li>Option 1 - All projects, including carry-forward, are reported as ‘current’ (no statistical values stored in IM) </li></ul>www.bettisworthassociates.com Option 2 Carry-forward projects New projects Option 1 New projects
  28. 28. Mistake: Create new Program (IM01) www.bettisworthassociates.com Mistake Result Solution The Investment Program short and long name contains a specific year. The short name cannot be changed. Confusion prevails when you refer to the program in future years. A program exists indefinitely. The short and long name should describe the type of program, and not reference a year. For existing programs: 1. Rename the long description. and/or 2. Create a new program & Stop carrying-forward the incorrectly named program. Examples of Bad Names: PLM01= Projects for 2001 or CAP2001 = Capital for 2001   Recommended Examples: PROMO = Marketing Promotion Or RD = Research & Development
  29. 29. Mistake: Use IM01 instead of IM27 www.bettisworthassociates.com Mistake Result Solution Create a new program every year. (IM01) Projects and plan values are not carried-forward to the new year. You are unable to report across multiple program years. You are unable to reassign projects across years. Use IM01 only once when creating an initial program. Use IM27 for every approval year thereafter. Never use IM01 to create new approval years for the same program! Program X - 2006 Program Y - 2007 Program Z - 2008 Measures Measures Measures New Projects New Projects IM01 IM01 IM01
  30. 30. Mistake: Never Using IM27 www.bettisworthassociates.com Mistake Result Solution Never using IM27 - Open New Fiscal Year You continue to add projects to the original program year resulting in increased overhead and maintenance. Prior year closed projects never drop from the reports. Always use IM27 to create a new approval year. Your project portfolio stays focused on the active projects you need to manage. Program in 2005 Program in 2006 Program in 2007 Old Measures Old Measures Old Measures New Projects New Projects
  31. 31. Plan Reports for Analysis <ul><li>These reports are only useful with updated plan data </li></ul><ul><li>The comparisons include: </li></ul><ul><ul><li>Program only </li></ul></ul><ul><ul><li>Measures only </li></ul></ul><ul><ul><li>Program & Measures </li></ul></ul><ul><ul><li>Plan to Plan </li></ul></ul><ul><li>Depreciation forecast </li></ul><ul><ul><li>Must have the projected in-service date </li></ul></ul>www.bettisworthassociates.com
  32. 32. Analyze Bottom-Up Project Plans www.bettisworthassociates.com (S_ALR_87012813) Initial Bottom-up New Year Program
  33. 33. Don’t Use IM34-Rollup Plan Values! <ul><li>Eliminates the ability to report carry-forward projects separately from current year projects! </li></ul><ul><li>Old projects are treated as if always in new approval year </li></ul>www.bettisworthassociates.com
  34. 34. Plan for New Year Programs (IM35) www.bettisworthassociates.com Use Carry-forward as a Basis New Year Program
  35. 35. Determine New Current Plan (IM35) www.bettisworthassociates.com Manually Entered Programs with No Carry-forward Plans New Year Program
  36. 36. Enter Initial Top-Down Budget (IM32) www.bettisworthassociates.com Use Planned Total as a Basis Initial Budget
  37. 37. Entering Top-Down Budget Guidance <ul><li>What value you enter depends on whether you use Method 2 or Method 1: </li></ul><ul><ul><li>For Method 2: Enter the difference between carry forward budget and management’s top line number </li></ul></ul><ul><ul><ul><li>This difference is the ‘current’ budget, in other words, the budget for the newly funded projects </li></ul></ul></ul><ul><ul><ul><li>The carry forward budget is already added as statistical value </li></ul></ul></ul><ul><ul><ul><li>Make certain you do not overstate ‘current’ budget </li></ul></ul></ul><ul><ul><li>For Method 1: Enter management’s top line number </li></ul></ul><ul><ul><ul><li>NOTE: There are no statistical values. All project funding must be created as ‘current’ </li></ul></ul></ul>www.bettisworthassociates.com
  38. 38. Populating the IM Budget <ul><li>IM27 does NOT copy to ‘current’ year budget </li></ul><ul><ul><li>Copies to ‘forward’ year budget </li></ul></ul><ul><ul><li>IM32 > Settings > Approval period > Forward <enter> </li></ul></ul><ul><ul><li>Values displayed in ‘Carry-forward’ columns/rows </li></ul></ul><ul><ul><li>Represent ‘statistical’ values for reporting </li></ul></ul><ul><li>IM32 – Enter values manually or use Copy View </li></ul><ul><ul><li>Copy View would usually use a % of ‘Planned Total’ </li></ul></ul><ul><li>IMCAOV – Carry-forward to next year </li></ul><ul><ul><li>Works only within the same IM program approval year </li></ul></ul><ul><ul><li>Not across approval years! </li></ul></ul><ul><ul><li>Perform to maintain consistency between IM positions and projects by year; Definitely prior to final IM27! </li></ul></ul><ul><li>IM64 – Copy Budget from old IM </li></ul><ul><ul><li>Do not use unless restarting your program </li></ul></ul>www.bettisworthassociates.com
  39. 39. <ul><li>These reports only useful with updated budget and plan data </li></ul><ul><li>Comparisons include </li></ul><ul><ul><li>Program plan, budget </li></ul></ul><ul><ul><li>Measure plan, budget </li></ul></ul><ul><li>All are formatted for carry-forward reporting </li></ul><ul><li>One critical report comparison you need is missing! </li></ul>Understanding the Gap www.bettisworthassociates.com
  40. 40. Initial Gap (without a list projects) www.bettisworthassociates.com (S_ALR_87012813) New Year Program Bottom-up Gap Top-down
  41. 41. Initial Gap – Carry-forward vs Current <ul><li>Program managers planned additional $34,612,500 for current year </li></ul><ul><li>$16,225,000 carried forward from 2007 program </li></ul><ul><li>Management agreed to initially fund $31,420,525 </li></ul>www.bettisworthassociates.com (S_ALR_87012813) New Year Program
  42. 42. A Missing Report <ul><li>For top-down versus bottom-up reporting, </li></ul><ul><ul><li>Create report for Program Budget versus AR and Measure Plan </li></ul></ul><ul><ul><li>Copy form 121PLANBUD and modify as above </li></ul></ul>Value type is: 47 39 1 & 10 www.bettisworthassociates.com
  43. 43. Initial Budget Reconciliation with Measures – Bottom-up and Top-Down www.bettisworthassociates.com Top-down Bottom-up Gap New Year Program (Z121PLANBUDGET custom)
  44. 44. Mistake: Advance Commitments funded in Current Budget! www.bettisworthassociates.com Carry Forward Carry Forward Program X - 2006 Program X – 2007 / 2008 Program X - 2008 Measures Measures Measures Complete or Abandoned Complete or Abandoned New Projects & Wish list New Projects & Wish list Fiscal Year Change Mistake Result Solution Future year advance commitments funded with current year budget. Current year available funds are reduced unnecessarily . PO delivery dates are wrong. Inefficient budget returns & supplements in 4 th quarter. Fund two years instead of one. Fund advance commitments in current year + 1 year.
  45. 45. Advance Commitments <ul><li>In current year, fund 1 st quarter advance commitments </li></ul><ul><li>Eliminates unnecessary reduction in current year budget </li></ul><ul><li>NOTE: Applicable where using availability control </li></ul>www.bettisworthassociates.com Current Year Program
  46. 46. Helpful Reconciliation Tools <ul><li>Comparison Checks </li></ul><ul><li>Negative values </li></ul><ul><li>Cumulative > Annual </li></ul><ul><li>Releases > Budget </li></ul><ul><li>Plan/Budget = Assigned </li></ul>www.bettisworthassociates.com
  47. 47. What We’ll Cover … <ul><li>Define ‘successful’ year-end close </li></ul><ul><li>Prepare to close the year </li></ul><ul><li>Open the new year </li></ul><ul><li>Complete the year-end close </li></ul><ul><li>Questions </li></ul>www.bettisworthassociates.com
  48. 48. Close the Year in 10 Easy Steps! www.bettisworthassociates.com Phase 1 Phase 2 Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8 3 Before first IM27, & after Appropriations, Projects, or Orders Add new, Close old, Update plan & depreciation, Update budget, Settle IMx,CJ20N, CJ40, CJ9C, CJ3x,CJ8x 4 -6 to -3 months New Year Program Create & Update new approval year program structure, plans, & budgets IM27 IM27_Repeat 5 First month of new year Purchase orders Update commitment past delivery dates CJCF or KOCF 6 First month of new year Projects /Orders Prior Year Program Carry-forward project budgets Carry-forward program budgets CJCO or KOCO IMCAOV 7 First month of new year New Year Program Final update of new approval year IM27_REPEAT 8 First month of new year New Year Program Finalize new approval year plan Finalize new approval year budget IM35 IM32 9 First month of new year New Year Program Block new project assignment to prior approval year IM02 10 First month of new year Projects and/or Orders Distribute budget to projects Release budget IM52 CJ32 * 2 nd month of new year Prior Year Program Close old approval year IM27_CLOSE
  49. 49. Carry-forward commitments (CJCF or KOCF) www.bettisworthassociates.com Mistake Result Solution Failure to carry-forward open commitments with past due delivery dates. (CJCF or KOCF) Available funds are over-stated. Run transaction CJCF and/or KOCF to move past due commitments to the first period of new year. <ul><li>Before </li></ul><ul><li>After </li></ul>
  50. 50. Carry-forward the Budget (CJCO or KOCO) <ul><li>Make certain the financial year is closed </li></ul><ul><li>Repeat one last time </li></ul><ul><li>Previous carry-forward is displayed </li></ul>www.bettisworthassociates.com
  51. 51. Mistake: Unreturned Budget Mistake Result Solution Failure to timely cancel or close projects and return budget funds CJ3x or KO2x). Budget funds are not available for allocation to other projects and/or projected budgets are distorted. Return unused budgets and close projects not later than the first use of IM27 and IM27_REPEAT in 4th quarter.
  52. 52. IM27_REPEAT Final Update <ul><li>After the financial year is closed: </li></ul><ul><li>Repeat one last time </li></ul><ul><ul><li>Drop completed or cancelled projects </li></ul></ul><ul><ul><li>Copy latest project plans to portfolio structure </li></ul></ul><ul><li>Finalize bottom-up plan </li></ul><ul><li>Select both, budget and plan carry forward </li></ul><ul><li>Changes reflect latest market conditions </li></ul>www.bettisworthassociates.com
  53. 53. Revise Top-Down Management Guidance (IM32) www.bettisworthassociates.com Increase Budget By 10% New Year Program
  54. 54. Repeat the Gap Analysis www.bettisworthassociates.com Top-down Bottom-up Gap New Year Program (Z121PLANBUDGET custom)
  55. 55. Gap Analysis–General Value List Top-down Bottom-up www.bettisworthassociates.com New Year Program (Z121PLANBUDGET custom)
  56. 56. Align Top-Down Strategic Guidance <ul><li>Align ‘overall’ budgets with strategic goals (IM32) </li></ul><ul><li>Captures the expected direction of future spending </li></ul>www.bettisworthassociates.com New Year Program
  57. 57. Reconcile Strategic Budgets <ul><li>Analyze project plans to determine the size of the gap compared to the ‘overall’ strategic portfolio </li></ul>www.bettisworthassociates.com New Year Program (Z121PLANBUDGET custom)
  58. 58. Lock New Project Assignments (IM02) <ul><li>The portfolio for the new cycle is now active, so </li></ul><ul><li>New projects and project ideas should be ‘locked’ from the current portfolio </li></ul><ul><li>In this example, new projects are ‘locked’ from the CAPITAL-2007 program </li></ul>www.bettisworthassociates.com
  59. 59. Distribute Budget to Projects (IM52) <ul><li>Allocate funds to new projects </li></ul><ul><li>Supplement carry-forward projects </li></ul><ul><ul><li>Normally you should not expect to supplement </li></ul></ul><ul><ul><li>Carry budgets to next year in the prior year program </li></ul></ul><ul><li>Requires the Budget dist. overall indicator in the program type and/or position </li></ul>www.bettisworthassociates.com
  60. 60. Release Advance Budgets (CJ32) <ul><li>Budgeting process for advance commitments: </li></ul><ul><ul><li>Fund a forward year (current year + 1) </li></ul></ul><ul><ul><li>Must use annual budgeting </li></ul></ul><ul><ul><li>Recommend using budget release (CJ32) </li></ul></ul><ul><ul><li>Avoids using current year funds for future year commitment </li></ul></ul><ul><ul><ul><li>Enables accurate budget reporting </li></ul></ul></ul><ul><ul><ul><li>Enhances budget availability control </li></ul></ul></ul>www.bettisworthassociates.com
  61. 61. Post Depreciation Forecast <ul><li>Use SAP report S_ALR_87099918 (Primary Cost Planning) to post forecasted depreciation to cost centers </li></ul><ul><li>Posting to different cost center plan versions is also available </li></ul><ul><li>Actual depreciation will be posted to cost centers during monthly depreciation run </li></ul>www.bettisworthassociates.com
  62. 62. Close Old Year (IM27_Close) <ul><li>Enables Option 1 reporting </li></ul><ul><li>All projects report as ‘current’ </li></ul><ul><li>No separate identification of carry-forward projects </li></ul><ul><ul><li>Can still see prior year expenditures </li></ul></ul><ul><ul><li>Cannot separately report carry-forward plan or budget </li></ul></ul><ul><li>Irreversible transaction </li></ul><ul><li>Prior year approval year’s no longer useable </li></ul>www.bettisworthassociates.com
  63. 63. What We’ll Cover … <ul><li>Define ‘successful’ year-end close </li></ul><ul><li>Prepare to close the year </li></ul><ul><li>Open the new year </li></ul><ul><li>Complete the year-end close </li></ul><ul><li>Questions </li></ul>www.bettisworthassociates.com
  64. 64. Related OSS Notes <ul><li>OSS 511631, Jan 2006, Reporting in old investment program after IM27_Close </li></ul><ul><li>OSS 444444, Dec 2005, Using IM27 </li></ul><ul><li>OSS 845077, Aug 2005, General Value List report clarification related to the annual values setting </li></ul><ul><li>OSS 192815, Jan 2003, Reassigning measures after IM27 </li></ul>www.bettisworthassociates.com
  65. 65. Key Learnings www.bettisworthassociates.com
  66. 66. Key Learnings Additional presentations available at: www.mysaptraininghome.com/documents Send e-mail to [email_address] to register for newsletter. www.bettisworthassociates.com
  67. 67. Practicing What You Learn <ul><li>Do you need SAP Access to practice? </li></ul><ul><ul><li>From $59.95 per week to </li></ul></ul><ul><ul><li>$149 per month subscriptions </li></ul></ul><ul><ul><li>Systems available include: </li></ul></ul><ul><ul><ul><li>Release 4.7 </li></ul></ul></ul><ul><ul><ul><li>Release ECC6.0 </li></ul></ul></ul><ul><ul><ul><li>BI 7.0 </li></ul></ul></ul><ul><ul><ul><li>CRM 5.0 </li></ul></ul></ul>Sign up for SAP Access at: www.bettisworthassociates.com/mysaptraininghome.html www.bettisworthassociates.com

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