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Results Analysis for Projects in Release 3.0

Description

The enhancements in the Project System for Release 3.0 have led to the following changes in results analysis:

In the Project System, earned value analysis is used for controlling progress internally and as an activity confirmation for the customer. You can specify or determine a percentage of completion for each WBS element, activity element or activity. The Project System provides a number of measurement methods for determining the percentage of completion, such as:
In results analysis, you can define a valuation method with the results analysis type L (results analysis using earned values) that carries out results analysis on the basis of the earned values.
In Customizing for the Project System, you can specify which fields are relevant for earned value analysis. When defining the update rules in results analysis, you assign the line IDs to these fields.
The work breakdown structure can be broken down into areas that have their own budget responsibility. Between two subprojects, fixed prices can be agreed for rendering a service. The fixed price is entered on the lower-level WBS element and automatically updated on the higher-level WBS element.
You can carry out a results analysis for the subprojects either individually or in total.
Through the project structure indicator you determine for each valuation method how the data for the subprojects is summarized during results analysis.
If the indicator T is set, all planned data and all actual data is summarized to the next external billing element or account assignment element, that is, the planning data and the actual data is summarized to the ordering billing element.
If the indicator P is set, all planned data and actual data is summarized to the next external or internal billing element or account assignment element, that is, the planning data and the actual data is summarized to the ordering or supplying billing element.
If the indicator U is set, summarization is carried out as under T but the planned values are always summarized from the bottom.
You use the profit basis to determine, for each valuation method, which planned values are used to determine the profit percentage rate. The fixed price agreement is taken into account in the profit percentage rate when you choose the profit basis D (cost element planning + fixed price) or U (manual profit percentage rate + fixed price).
The individual WBS elements of a project can be assigned to different profit centers and company codes.
In Release 3.0 you can carry out results analysis for account assignment elements to calculate work in process and to pass it on to the corresponding profit center.
You can use the project structure indicator to determine, for each valuation method, how the data is summarized for WIP calculation. If you set the indicator P or T , the planned data and actual data is summarized to the next WIP element (that is, account assignment element for which the work in process is calculated).
In Release 3.0, you can carry out a results analysis for the overall project although certain WBS elements are assigned to different company codes within the project structure. To do this, you set the Cross company valuation indicator for the results analysis version. The data calculated is purely informative and should not be transferred to Financial Accounting.

The following changes in results analysis were also made for engineer-to-order:

In engineer-to-order, you can carry out structure-oriented planning in which the planned values for each WBS element are roughly estimated. In results analysis, you can specify a profit percentage rate for each valuation method. If you have chosen either the profit basis T or U, the calculated costs and the calculated revenue are not calculated on the basis of the planned values but on the basis of the percentage specified.
In engineer-to-order, you can define an estimated results reserve to reserve a part of the results so far attained where an unknown amount of follow-up costs is possible. To do this, you define a revenue percentage for each valuation method. On the basis of the revenue percentage and the planned revenue, the system determines which actual revenue may be realized. You can either reserve a portion of the actual revenue with every actual posting, or you can reserve the actual revenue that exceeds the allowed revenue.
For each valuation method, you can determine how results analysis is to be carried out when the actual values exceed the planned values. If you set the indicator A or B , the actual values replace the planned values as the basis for results analysis. If you set the indicator C , the difference between the actual costs and the planned costs is updated under a separate line ID.

Change system parameters in customizing

In Customizing, the valuation methods and update were changed correspondingly.

Define valuation methods

Define update