The static methods of preinvestment analysis are based on data related to years. Within the investment time frame, you select a year, in which the costs and output are representative for the entire investment time frame. The time-related change of costs and output is not taken into account in this procedure.

Static methods are then suitable when for example, a simple examination is sufficient for small replacement and expansion investments. With a lower level of information, you will use constant anticipated cash flows and shorter runtimes.

In the SAP measure catalog, you find the group Investment Measures under FIN: Financials. All key figures are described here, which are typical for investment planning. In addition to this, investment planning uses further key figures which are listed in different places in the measure catalog.

SEM-BPS offers you planning layouts, with which you can execute cost, profit and return on investment comparisons.

• A cost comparison is appropriate when the costs change through an investment, but not the proceeds. This case is typical for a modernization investment.
• With a profit comparison calculation, the investment plan is sensible if the profit gained by it is larger than zero. With several variants for an investment plan, the one with the highest profit is the most advantageous. In contrast to a cost comparison, this procedure can also be used when the revenue changes through the investment.
• It is only useful to compare the profits of different versions with each other, when you assume that there is the same capital tie-up. If this is not the case, then a return on investment calculation should be executed.

All of these procedures are supported with the layouts delivered. There are three different entry layouts with which you can enter data for three different versions. The comparison of total costs, profit and return on investment is possible with a further layout. The Excel workbook contains a second page in this planning layout, in which the decisive measures are visualized in a graphic.

The Business Content for static preinvestment analysis delivered with SEM-BPS, is made up of the following central planning objects:

You use the described planning layouts and the assigned planning functions with the help of the planning folder Stat. preinv. analysis ex. beverage plant as follows:

1. In the layout one-off costs, you enter the respective investment volumes for up to three different planning versions.
2. In the layout fixed costs, you enter the fixed costs for these versions. You also enter here the share of revenue, which is independent of the production quantity (liquidation revenue).
3. In the layouts var costs alc. or var. costs non-alc enter variable costs and revenue for the different versions. The delivered example is created so that it can also be used when the investment serves to support the production of different material groups. You can enter costs per unit, quantities, and prices for each of these material groups.

In the different output layouts, the key figures, which are used as a decisive criterion for the investment (total costs, profit, return on investment, contribution margin), are displayed in tabular form and as graphics.