Cost Planning on the Investment Program 

Use

Before you can budget and approve your investment program, you have to collect the plan values from the existing investment measures and appropriation requests. You then use the plan values as the basis for the binding budget.

Features

Entering Values

You enter planned values for individual measures and appropriation requests independently of the investment program at the level of the individual measure or appropriation request. You use the functions of the Project System (PS) or Overhead Cost Controlling – Overhead Orders (CO-OM-OPA) components for structure planning, cost element planning, and unit costing.

Rolling Up Values on Program Positions

For planning the investment program as a whole, you have to roll up the plan values of the individual measures that belong to it. Once the measures and appropriation requests have been assigned to the program positions, you can automatically adopt the total of the planned values of the subordinate measures as default values for the end nodes of the investment program, using periodic processing.

During the rollup of values within an investment program, the plan or budget values belonging to a program position are adopted by all program positions that are above this position in the hierarchy. Later changes to these values can also be transferred to the higher-level program positions.

Rollup of Values

Rollup of…

Response of the system

…existing values (values have neither been newly added nor changed)

It rolls up plan (and budget) values. The end nodes of the investment program keep their values, and these form the basis for the rollup. The value of an investment program position that is not an end node is increased by the total of the values of the end nodes below it in the hierarchy. If the position below this non-end-node position is also not an end node, then the value of the lower level position is rolled up only if there is no position below it in the hierarchy that has a value to be rolled up. In other words, the system always rolls up the values of those program positions that are at the lowest level of the hierarchy.

…existing values of end nodes only

Same as above except only the values of end nodes are rolled up.

…changed values

Following changes, the logic of the rollup is similar to that for existing values. The only difference: Only changed values are used as the basis for the rollup. Each program position receives a new value, consisting of its existing value plus the changes in the values of all program positions below it in the hierarchy. (Changes may be in the form of supplements or other changes to the original budget.)

If the overall budget or annual budget is less than the distributed budget, then you can make the budget consistent again by rolling up the values on the investment program. However, when you do so, any program position budget amounts that were not yet distributed are then lost.

Within the investment program, the system can roll up the default values from the end nodes. You can also correct the values, either across the board (using a percentage rate in order to increase or reduce the values), or on an individual basis.

You can make the rollup of plan values on the investment program dependent on versions (refer to Versions for Planning ).

Status Selection Profile

You can use a status selection profile to select investment measures or appropriation requests that have a specific user status and system status, such as Released. For more information on the definition of status selection profiles, see the Implementation Guide (IMG) for Investment Management. Choose Investment Programs ® Information System.

The system determines default plan values for investment program positions that have a status which does not allow planning, as follows:

Similar logic applies within a project. WBS elements that have a status that does not allow planning cannot be overwritten manually. However, they can be modified by the roll up function.