Handling of Complex Investment Measures 

Purpose

The Handling of Complex Investment Measures scenario enables you to manage the planning, investment, and financing processes for investment measures within your enterprise. The term investment, in this context, is not limited only to investments you capitalize for bookkeeping or tax purposes. An investment in this context can be any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed (for example, plant maintenance projects or research and development).

In this scenario, work breakdown structure (WBS) elements and projects are used in the system to represent investment measures. Therefore, in contrast to the Handling Simple Investment Measures scenario, you use planning functions from the Project System (PS) component in this scenario.

The scenario covers the entire investment process, from the planning and decision-making phase, to an approved measure, to implementation, and finally to settlement on completion or at the end of the project.

Prerequisites

You use the basic functions of the PS component.

Process Flow

  1. You create appropriation requests for the investment measures you wish to implement, and enter planned values for these appropriation requests. Appropriation requests can have several variants with different plan values.
  2. Once an appropriation request is approved, you create a project for its implementation.
  3. You structure the project to reflect organizational aspects, and enter plan and budget values for the accompanying WBS elements. In doing so, you adopt the overall plan values from the appropriation request.
  4. You release the project.
  5. During the implementation of a project, all related costs are collected on the WBS elements for the project. WBS elements can be investment measures with assets under construction assigned to them.
  6. You analyze the plan, budget, and actual values for the projects. Actual values are subject to availability control.
  7. You allocate overhead costs periodically to WBS elements, and settle elements periodically to receivers (for example, cost centers, assets under construction, and so on).
  8. If a project includes investment measures with assets under construction assigned to them, you post a full settlement for the relevant WBS elements when the asset is completed.

Result

You manage an investment measure in the form of a project.