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2003 Product Lifecycle Management Forum

PS in integration with IM,CO,MM & AA

Michele Harle – AMD Inc.


Raj Una – Unatech LLC.
Nov 4th, 2003
Agenda

 Welcome and Introductions


• System Integration Overview
• PS & IM integration
• PS & CO integration
• PS & MM integration
• PS & AA integration
• Implementation Challenge
• Open Discussion
System Integration Overview
Cost Roll Up
Budget Distribution

Liquidity Forecast IM HR Org. Structure


Cash Budget Management TR Labor Tracking

PR Release
PO Commitment
Goods Movements
M PS AM
Depreciation Forecast
AUC Settlement
Asset Capitalization

M
PO/Non-PO Invoices PM Order
Payment Schedule AP PM Facility Shutdown

CO Preventative Maintenance

Activity Allocation
Settlement
Plan Version
System Integration Overview
I Investment
M Program

(IPP) (IPP) (IPP)


Investment Investment Investment
Program Position
Budget
Program Position Program Position
P C
P S O
M
PM Order Internal Appropriatio
WBS Order n
Request
Forecast Periodic Settlement

A
A IO WBS
AUC
Asset Under Const.

Final Settlement

Commitments Allocations
Final Asset Cost Center
Goods Movement C Accounts Payable
M H FI
O
M R
External / Internal Labor Cash Flow
System Integration Overview
Inve
stme Proj Proj
ect Proj
nt Proj ect
Defi ect
Prog ect Versi
nitio Data
ram Cost on
n& Main
Stru Plan Main
Stru tena
cture ning tena
cture nce
•Assignment of Cost
nce
•Define Budget •Define Project •Maintain Project •Copy Plan Version
Categories Costs Detail center, Profit center for different forecast
•Create Work and Depreciation ( Annual Budget,
•Create Program Breakdown •Define Project
Simulation Data Quarterly Revision )
Definition and Structure (WBS) Schedule
Program positions and Network Activity
Prog
Proj
Prog ram
ect
ram Bud
Bud Rele
Plan get
get ase
Roll- Distr
Alloc
Up ibuti
ation
on
•Create Budget •Release Project Release WBS elements& Activity
Budget Generate Requisition automatically
•Budget Distribution to
Measure
System Integration Overview
A/P
Gener Good Invoi
Purc
ate s ce &
hase
Requi Recei Jour
Orde
sition pt nal
r
s Entr
•Release Purchase
y
•Purchase Order to •Confirm Receipt of •A/P invoice to
Requisitions Vendor Goods & Services Purchase Order
•Valuated/Non- •Hook-Up Cost
valuated
Upda •Installation Cost
te Proj
Peri
Proje ect Proj
odic
ct Final ect
Settl
Plan Settl Clos
eme
& eme e
nt
Budg nt
•Settle revenue & •Revise Project Plan •Final Qualification
costs from Project et and Acceptance •Close Project
•Maintain Current
to GL / Cost center
Budget ( Supplement, •Technical Close
/ Asset
Return & Transfer) WBS Elements
•Complete Final
Settlement to Asset
Agenda
 Welcome and Introductions
 System Integration Overview
 PS & IM integration
• PS & CO integration
• PS & MM integration
• PS & AA integration
• Implementation Challenge
• Open Discussion
IM Overview
 A hierarchical representation which maintains planned
and budgeted capital/expense expenditures for a certain
period of time.

 An investment measure could be


 WBS element
 Internal Order
 Appropriation Request

 Investment Measure can only be assigned to the lowest


node of the IM hierarchy.
IM Hierarchy – Capital By VP

AMD

CPG EHS IT HR MG

AWFD Dresden ATMP

Fab25 Support Facilities

Lowest Level IM Position

Cost Center Photo Implant Films Etch Polish ……


IM Structure at AMD
Investment Program Type
IM hierarchy
 IM structure can be
generated automatically
from either Cost center or
Profit Center hierarchy.
(T-code IM25)
 If Enterprise Organization
is activated, IM position
ID’s can be updated
automatically based on
the different
organizational units.
Overall / Annual values

 Planning & Budgeting can


be done either annual
basis or annual and
overall basis. All the
profiles in PS & IM need
to reflect the either one of
the option.

 Planning & Budgeting


profiles need to reflect the
same time horizons in PS
& IM.
Cost Roll-up

 Investment measure plan


amount can be rolled up
in to the specific plan
version in IM. (T-Code:
IM34)

 It’s best business practice


to roll-up into separate
version each time during
the year.
Budget Distribution
 It’s always good business
practice to distribute
additional budget as
supplements in stead of
overwriting the original
budget in the measure.
(T-code IM52)
 With User status it’s
possible not to distribute
budget until certain pre-
requisite steps (e.g.
Approvable) met.
Agenda

 Welcome and Introductions


 System Integration Overview
 PS & IM integration
 PS & CO integration
• PS & MM integration
• PS & AA integration
• Implementation Challenge
• Open Discussion
Plan Version
 Plan Versions are defined in the central table and can be
configurable in CO, PS and IM. (TCode: OKEQN)

 Actual, Commitment data are always stored in Version 0.

 Plan Versions are fiscal year dependent and maximum


999 alpha-numeric versions can be defined in the
system.

 If PCA is activated, it’s better to select the “On-line


Transfer” and “Line Item” option.
Plan Version
 Specific exchange
rate type (Daily or
Monthly etc.) can be
assigned to a version.

 If “integrated planning”
indicator is selected
the plan data from
IO/WBS can be
transferred to cost
center. In 4.7, plan
data from NWA can
also be transferred.
Plan Cost Settlement
Plan cost from WBS
element can be settled to
cost center.

Settlement rule defines


the target version where
cost will be updated.

Multiple period cost can


be settled at the same time.

T-Code: CJ9E / CJ9G


Labor Cost (Internal & External)
 Labor hours and cost can be tracked through internal
network activity using Work center and activity type.

 Rate ($$/hr or $$/qty) can be defined between Cost


center & Activity type (T-code KP26)

 Planned cost are calculated based on the planned hrs.


maintained in NWA

 Actual cost are calculated based on the confirmed hrs.


against the NWA.
Work Center master Data
Labor Cost (Internal & External)

If HR module is used, then


 Specific employees can be assigned against the
Work center.

 Employees can be assigned to specific NWA


(percentage or hours) during workforce planning
across many projects

 Cost allocated to project can be based on actual rate


and actual hours.
Overhead Allocation
 Overhead can be applied to both Plan and Actual cost.

 Costing Sheet contains the details regarding calculation


of overhead to Project/Internal Orders. It includes
 Basis for calculation (Cost Element Range & Origin)
 Computation Method (Percentage or Amount)
 Validity
 Internal order/Cost center to be credited.

 Overhead Key allows to define percentage specific to


each plant/company code within the same costing sheet.
Settlement
 SAP allows to settle cost & revenue from cost object in
one company code to another cost object in different
company code.
 However FI and CO are out of sync until FI-CO reconciliation is
executed. It can be executed many times during the fiscal month.

 It allows percentage/amount settlement to various


receivers.

 In line item settlement, it allows to settle by each


individual posted line item (T-code: CJIC/CJID).
Agenda

 Welcome and Introductions


 System Integration Overview
 PS & IM integration
 PS & CO integration
 PS & MM integration
• PS & AA integration
• Implementation Challenge
• Open Discussion
Stock/Non-stock Materials
 It’s possible to do the availability check against the stock
materials on real-time basis from the project NWA.

 Stock material can be reserved against NWA upon


release.

 System can generate PR automatically for the out of


stock quantities based on MRP parameters.

 If Project stock is activated in the project, then stock can


be managed within Project itself.
PR generation from NWA
PR release
from NWA gives
the visibility of
procurement life
cycle within
Project structure.

It’s good
business practice
to select the
indicator “2 (From
release)”.
External NWA
Material components
Project Approval Flow
Project WF sets
placed on User
QCCP status in Level –2
‘budget plan’ Level -1WBS WBS Final Unblock
list ‘approved’ released Approval Invoice

FA sets
idea Project FA sets IM52: FA sets Final Last
System
created User status WF sets
status user status ‘CAPT’ Payment Pay
in level-1 User status
Network Level – 2 WBS for
WBS in level-1 vendor
Activity
‘waiting’ WBS ‘BUDG’
‘released’

Cost Center Many QA-Validation Workflow


Approval Network for the controlled release
Workflow, Activity of the final payment
via customized Notification
forms Workflows
Project Approval Flow (User Status)

created, (default), 10 Start an approval workflow


by setting the status
‘Waiting for approval’
Only workflow
and workflow
Rejected, 29 Waiting, 20 Approved, 30 administrators
have the
In this status the
authorization
project is ‘dead’
key ‘PS000001’
Denied, 25
to set ‘approved’
Workflow and ‘budgeted’
can be restarted. Budgeted, 40 status

The IM control admin has budgeted


Hint: User-Status 10 –29 this project. In this status the
have the ‘budgeting’ transaction set to project can continue and
disallowed in configuration transaction BS02 can be set to released.
Budget Availability Control
 Control Features
 Warning
 Warning with e-mail notification
 Hard Error

 Tolerance Limit
 Percentage
 Amount
 Percentage & Amount

 Trigger Points
 PR Commitment
 PO Commitment
 Goods receipt / Invoice Entry
 Journal Entry
Budget Availability Control
Invoice Plan
Invoice Plan
allows to forecast
the cash flow by
Network Activity.

It feeds the


information to
TR-Cash Budget
Management for
corporate wide
long-term cash
flow.
Custom Report-Original Commitment
Agenda

 Welcome and Introductions


 System Integration Overview
 PS & IM integration
 PS & CO integration
 PS & MM integration
 PS & AA integration
• Implementation Challenge
• Open Discussion
Depreciation Forecast
Capital Investment Program
Budget: 100
Distributed: 100
Plan: 120

Cost Center
IPP 1 IPP 2
Budget: 80 Budget: 20 Plan
Distributed: 70 Distributed: 0 Actual CO
Plan: 100 Plan: 20

Appropriation Depreciation
Investment Measure
Request Simulation
(Order / WBS)

Plan: 100 Plan: 100


Budget: 70
Materials Invoices
Actual FI-AA

PS MM FI AUC Fixed Assets


Custom Report-Depreciation Forecast
Investment profile
 Investment Profile allows
automatic creation of
AUC upon WBS element
release. (T Code: OITA)

 Plan Depreciation amount


can be simulated based
on the default asset class.

 It’s always good practice


to select “Line Item
Settlement” for good
audit-trail.
Final Asset Creation
Agenda

 Welcome and Introductions


 System Integration Overview
 PS & IM integration
 PS & CO integration
 PS & MM integration
 PS & AA integration
 Implementation Challenge
• Open Discussion
Implementation Challenge
 Multi-currency Planning and Budgeting in USD

 Workflow and Organizational Structure

 Outstanding Commitment in SAP vs. Original Commitment at


AMD

 GR/IR Imbalance

 Conversion
 Data Cleansing
 Interim SAP to Full SAP conversion
 Inter-company Transfer because of new FASL JV

 Japanese Language Implementation


2003 Product Lifecycle Management Forum

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Session Code: 606