Network Planned Costs 

Purpose

The system uses the calculation of plan costs in the network to determine their development over time, based on the available quantity and price structures.

Depending on whether the network is header-assigned or activity-assigned, the system records the costs so calculated in the:

Further functions, such as the asynchronous network costing and the cost forecast, are available for activity-assigned networks.

Prerequisites

There must be a network schedule.

The costing variant must be defined in the Project System IMG and stored in the network header control data. In the IMG; you can define the planned costing variant as a default value in the network type parameters.

The activity/activity element must be flagged as "costing relevant", using the control key. You maintain the control key in the Project System IMG and define it in the detailed data for activities and activity elements.

For the purpose of overhead calculation, you must also enter a costing sheet in the detailed data for activities or activity elements. If you have not maintained a costing sheet for the activity, the system uses the costing sheet from the network header.

Process Flow

  1. Plan the services to be rendered and the required operating resources in the activities, activity elements, and components.

    2. Even at early planning stages, where the structure is not detailed and the exact nature of materials is still unclear, you can use the unit costing to plan costs in detail for general costs activities or material components. If the necessary information is available, you can replace the activity with a subnetwork.

    You use the invoicing plan to determine when and in what amount costs for materials and services procured externally, and general costs activities, are expected to occur.

  2. Calculate the planned costs The system determines the plan costs:

You use the planned cost determination indicator to stipulate whether and when the planned costs are determined when you save the network:

  1. Value
  • Action
    • 1
    • When saved, from release
    • 2
    • When you save
    • 0
    • Planned costs not determined when network saved

    In this case, the system recalculates all the costs, taking account of price changes. You can execute the planned cost calculation function at any time during network maintenance.

    You can run the asynchronous network costing for one or more networks at any time, regardless of the costing in network maintenance. If Project Cash Management is active, the system uses the asynchronous network costing to determine planned payments for the network.

    See Asynchronous Network Costing.

    Planned costs are calculated for the following network objects:

    See also: Basis Values for the Network Costing .

    1. The system determines the planned overhead (overhead or process costs) as well as the planned costs. Depending on the network type in question, the planned costs are recorded in the network header or activity.

      2. See Calculating Planned Costs and Overhead .

      If the activity is assigned to a WBS element, the network type and status determine whether the network is appended and/or apportioned. Plan values in appended networks increase the plan values in the relevant WBS element: apportioned values increase the assigned value. Networks flagged as preliminary planning networks (network type 21) are always appended.

      See also Orders for Projects .

    2. You can evaluate the network plan costs online, using various criteria:

    If an activity is technically complete or flagged for deletion, the planned costs are not determined and cannot be displayed in the itemization. The plan costs determined before the Technically complete status was set remain in place in activity-assigned networks. You can evaluate them in the project information system.

    See Representing Planned Costs.

    Activities

    As the project progresses, actual costs will arise relating to the planned costs. Network actual costs arise from:

    In valuated project stock, actual costs from material procurement are recorded in the WBS element and those from materials usage are recorded in the activity.

    See also Valuated Project Stock

     

    You determine the overhead on actual costs periodically, as part of periodic processing.

    Actual costs, commitments, and data from network activity confirmations, or changes to the forecast work and forecast completion of the project, mean that the actual development of costs will often vary from what you have planned. To achieve a realistic cost forecast, you can use this data to update your cost expectations.

    See also Project Cost Forecast .

    For more information on cost planning and actual costs, refer to Cost Object Accounting.