Cost planning in Projects
This article will describe six ways to do cost planning in Projects. Please look at the picture below, it tells us the six ways are overall planning, cost element planning, unit costing, easy cost planning, cost planning by using orders, cost planning using activities/network costing. This article will explain all of these ways to do cost planning in projects one by one.
You can use the t-code CJ40 or follow the menu path ‘Project System
-> Financials -> Planning -> Costs in WBS -> Overall values -> Change ‘ to do the overall planning. Look at the picture below, I have input the project definenation and the costing version, then press ‘Enter’.
Select period, in fact, it is the fiscal year for the cost planning. Then you need to enter the planning cost amount of money for the WBS, save it at last.
Cost element planning
The t-code for cost element planning is still CJ40, if you want to know how to use the t-code, please see the according steps in ‘overall planning’. You need to select the fiscal year and the WBS which you want to do cost element planning for, then click the ‘Primary costs’ button.
After clicking the ‘Primary Costs’ button, SAP system will jump to an interface in which you can do the cost element planning for the WBS. The screenshot of the interface is shown below, you can see there is a cost elements list on it, you can enter the plan costs for the cost elements as you want.
You can click the ‘period screen’ button to see the planning costs of every period of the fiscal year.
Below is the period screen of the planning cost, the system divides equally the amount of the money to every period.
If you want to change the logic of the dividing, you just change the ‘distribution key’.
Maybe you are confused that how the system give you the cost elements list in ‘Step 2’. This step will give you the answer.
Use the t-code CJ20N to open the project, in my example, you can see the planning profile is ‘000001’ fort the project ‘Z/006’.
Then you need to use the t-code SPRO to get the background configuration interface of the SAP system. Then follow the menu path ‘Project System -> Costs -> Planned Costs -> Hierarchical Cost Planning -> Create/Change Planning Profile’.
You can see the ‘Primary Cost Elements group’ field, and the value of it is ‘INT-2’.
Use the t-code KAH3 to display the cost elements group ‘INT-2’, you can see the cost element group is the almost the same with the elements list is ‘Step 2’, and from this, we can justify that SAP system get the elements list from the cost element group in ‘planning profile’ of the project.
Use t-code CJ40 to open project, select a WBS and click the ‘Unit Costing’ button.
Select the category of the Resource, I chose the ‘M Material’ , you can also chose another category when you are practicing. Then I enter the material number and quantity. The system will calculate the total value of the cost.
Maybe you will find that the system adds something surcharge to the resource you’ve input, this is because of the ‘Costing Sheet’ of the WBS, the detail of the logic will be explained in my other articles in future.
Easy Cost Planning
You can use t-code CJ20N or follow the menu path ‘CJ20N – Logistics -> Project System -> Project -> Project Builder ‘ to get to the ‘Project Builder’ interface. Then you open the project which you want to do ‘Easy Csot Planning’ to, then click the ‘easy cost planning’ button.
Select a WBS element and click the ‘Choose Planning Form’ button.
Tips: If you have done unit cost planning to a WBS in a fiscal year, this WBS is incapable for easy cost planning in the fiscal year. Similarly, a WBS is incapable for unit cost planning if it has been done easy cost planning to.
Select a model for easy cost panning.
Input the values for the inquired fields, then click the ‘Confirm’ button. SAP system will calculate the resources and panning cost for the WBS by using the values you input and the internal logic of the model automatically. The creation and editing of the model will be introduced in my future article.
Besides, you can click the ‘Show/Hide Item View’ button to display the detailled item of the resources.
Cost planning by using orders
You can create an order and add some costs to it, in this example, I create a maintaince order.
You can assign the order to a WBS.
You can use the report of the project to analyze its cost, such as the t-code CN42N, you can see the screenshot below, the cost of the order is shown on the report of the project.
Cost planning using activities/networks costing
You can use the project builder to create activities or networks under WBS, you can make planning costs to the activities or networks like the picture below.
You can use the report in ‘System Information’ to see the panning cost of the projects.