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Function documentationPlanning of Labor Costs

 

You use this function to improve your financial planning of labor costs. With this function, you can plan labor costs and revenues based on Portfolio Management capacity planning data or the Project Management role demand and resource assignment information using the Project Management cost/revenue rate.

You can define and assign cost/revenue rates to a role or a resource in Project Management. To calculate the labor planning costs based on the capacity, the system uses these cost/revenue rates as a part of financial planning in Portfolio Management.

Prequisites

  • You have configured the following for financial planning in Customizing for SAP Portfolio and Project Management under Start of the navigation path Portfolio Management Next navigation step Base System Interfaces Next navigation step Financial Planning Settings Next navigation step Define Financial Planning Settings End of the navigation path:

    • Map Fin/Cap Entities to Project Management Rate

    • Map Financial Views to Proj. Mgmt Role Function

Features

With regards to the labor rates planning, SAP Portfolio and Project Management supports the following scenarios:

  • Cost/revenue rates assignment to roles:

    A Project Management role is always assigned to a role type. The role type is then assigned to a cost/revenue rate. When you create a new role, the system assigns this default rate to the role.

    You can change the rate in the Costing subview in the resource portion of the Project Management portal under Start of the navigation path Project Management Next navigation step Projects End of the navigation path. Select a project. When you have done the prerequisites for the project, on the Resources view, the Costing subview is displayed.

  • Cost/revenue rates assignment to resources:

    You can create resources in the Portfolio Management system directly. You can then assign the rate to the resource from the Enterprise Portal.

    You can create resources in the Portfolio Management system through an HR-ALE Integration with an R/3 or ERP system. You must maintain a mapping in the R/3 or ERP system that assigns an activity type of an employee in the ERP system to a Project Management cost/revenue rate. The mapped rate is then transferred to the Portfolio Management system.

    For already created resources, such as external resources or resources created through HR-ALE Integration, you must assign a cost/revenue rate.

Example

Based on the capacity planning data in Portfolio Management, a forecasted demand in the capacity planning view of ten consulting days for a cost rate of 500 EUR per day in March 2008 result in forecasted cost in the financial planning view for wage of 5,000 EUR in March 2008.

Based on role data in Project Management, a demand of ten consulting days for a Project Management role with a cost rate of 500 EUR per day in March 2008 result in forecasted cost in the financial planning view for wage of 5,000 EUR in March 2008.