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Fixed Prices in the Project
Description
You can determine fixed prices for a service to be performed between two
WBS elements that are directly under each other in a hierarchy.
Scope of functions
In the first configuration level for Release 3.0, a fixed price agreement
is only possible between two WBS elements within a work breakdown structure
that are directly under each other in a hierarchy. A fixed price can only be
agreed over subproject limits, that is, the WBS elements must belong to
different subprojects.
The WBS of a project can be broken down into
areas to which a separate budget responsibility is assigned. These areas
consist of hierarchically related WBS elements and therefore form a subtree of
the entire WBS. This subtree is referred to as a "subproject" and it receives
a separate identifier. There cannot be two separate subtrees with the same
subproject identifier within a project definition.
The subproject identifier is stored in the WBS
element. During a later substructuring of a WBS element into further WBS
elements, this identifier is passed on. The possible identifiers for a
subproject can be maintained in Customizing.
The subproject represents an internal
organizational unit and should also be used as a selection criterion and for
the authorization check (after 3.0). However, this new grouping option may be
used for further decentralization of project managment in a later
release.
The fixed price is entered in the subordinate
WBS element and updated automatically in the superior WBS element.
A fixed price can be managed in the planned and
actual data.
- In the planned data, the term "fixed price agreement" is used.
- In the actual data, the term "fixed price allocation" is used.
- Overall project view / subproject view
Two types of views are the overall project view
and the subproject view.
The fixed price agreement is not used in the
overall project view.
Only the fixed price is used in the subproject
view. The corresponding WBS element and all of its subordinate WBS elements do
not exist in the subproject view. The subproject view is supported in
- budgeting / availability control
- commercial PS structure reports
After Release 3.0, SAP plans to offer the
subproject view for use in the following functions:
- technical PS reports (Schedule Information System)
Change system parameters in customizing
You have to create a fixed price version in the Implementation Guide for
the Project System.
Additional information