8/5/2022

Project System (PS)

Generated on: 2022-08-05 09:46:48 GMT+0000

SAP S/4HANA | 2020 (Oct 2020)

PUBLIC

Original content: https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/4dd8cb7b1c484b4b93af84d00f60fdb8?locale=en-

US&state=PRODUCTION&version=2020.000

Warning

This document has been generated from the SAP Help Portal and is an incomplete version of the official SAP product
documentation. The information included in custom documentation may not re ect the arrangement of topics in the SAP Help
Portal, and may be missing important aspects and/or correlations to other topics. For this reason, it is not for productive use.

For more information, please visit the https://help.sap.com/docs/disclaimer.

This is custom documentation. For more information, please visit the SAP Help Portal 1
 8/5/2022

Project Earned Value

Purpose

As a project is executed, there is an increasing number of differences between the project plan and the actual project
progression. Cost variances and schedule variances are caused by unforeseen events.

Successful project execution and effective project monitoring and control require up-to-date information on the project status
and project earned value to be available at all times. It is usually not sufficient to taken account of costs, resources, or dates in
isolation. You can only get useful statements about the project earned value and status of a project by comparing the actual
work performed.

Project Management provides you with the following integrated processes to monitor a project:

Progress Analysis

Method of valuing project progress based on the actual work performed.

For details, see Progress Analysis .

Cost Forecast

Method of recalculating the costs expected up to completion of the project based on the planned and actual values. The
updated residual costs that are calculated in this way provide a realistic cost forecast for the remainder of the project.

For more information, see Project Cost Forecast .

Progress Analysis

Purpose
You use progress analysis to monitor planned and actual project earned value based on the actual work performed. The system
evaluates the work using the total planned costs independently from the costs that are scheduled or posted on an accrual basis.

You can use progress analysis:

Internally, to identify schedule variances and cost variances on time

Externally, to provide the ordering party with the necessary reports about the execution of the project on time and to
cost, for example, for the purpose of milestone billing

You preferably use progress analysis for projects that meet the following criteria:

The project is large, meaning you have planned a lot of work packages

The project is resource-intensive

Resources can include, for example, the development hours of an R&D project.

The project earned value is not subject to the costs incurred

You usually plan the work to be scheduled on activities in the Project System. Therefore, you should carry out the determination
of project earned value on activity level.

As your project progresses, you can use progress analysis on an accrual basis to answer the following questions:

This is custom documentation. For more information, please visit the SAP Help Portal 2
 8/5/2022
What has been achieved by the cutoff date, and what is the value of this work?

Which work was scheduled?

Have schedule variances and cost variances arisen?

The following table contains an overview of the values and key gures that you need to assess the project earned value in
progress analysis:

Value or Key Figure Answers Following Question Comments

Percentage of completion (POC) How far has my project progressed by a The POC is either estimated, or determined
particular date (cutoff date)? using rules based on the project data.

A distinction is drawn between the planned

POC, which describes the share of
scheduled work in relation to the total work,
and the actual POC, which describes the
share of the actual work in relation to the
total work.

Earned value (EV) Which value corresponds to the POC? The EV arises from the valuation of the POC
and the base (for example, the cumulated
planned costs or the total budget).The
planned EV or Budgeted Cost of Work
Scheduled (BCWS) provides the value of
the scheduled work.The actual EV or
Budgeted Cost of Work Performed (BCWP)
provides the value of the work performed.

Actual Cost of Work Performed (ACWP) Which costs have been incurred by a certain The actual costs incurred to perform the
date (cutoff date)? work are shown in the actual costs in
progress analysis.

Cost variance (CV) = BCWP - ACWP Are there any cost variances? The CV consists of costs arising from
schedule variances and costs arising from
usage variances.

Schedule variance (SV) = BCWP - BCWS Are there any schedule variances? The SV speci es the proportion of the cost
variance that has been caused by schedule
variances. A positive value means that
more work was performed than
scheduled,resulting in higher costs.

Cost performance index (CPI) = BCWP / How accurate was my planning? The CPI speci es the value variance.
ACWP

Estimated costs at completion (EAC) Which total costs can arise due to project The expectedcost calculation is EAC =
processing changes? ACWP + (BCWS – BCWP) / CPI.
Alternately, you determine the expected
costs based on the data in the system by
using the cost forecast .

For more information, see Progress Analysis Versus Plan/Actual Comparison .

Process Flow
1. To monitor the project earned value, you carry out periodic progress analysis.

2. In progress determination, the system

This is custom documentation. For more information, please visit the SAP Help Portal 3
 8/5/2022
Determines the POC based on the de ned rules or estimated values

Calculates the earned value subject to the base (accumulated planned costs, budget)

3. You analyze project progression.

In the Information System you can evaluate the determined data together with other project key gures. In both the plan
and the actual, you get an overview of the project earned value over time.

For more information, see Evaluation of Project Earned Value .

Result
Progress analysis provides you with precise information about project earned value (work actually performed), as well as
information about costs and schedules. As the system calculates the earned value in relation to the total planned costs, you can
see the tendencies independent of the planned and posted costs on an accrual basis, and therefore implement the relevant
controls.

Progress Determination

Use
You use progress determination to:

Determine the project earned value at a particular time

Calculate the value of the work performed at a particular time

Progress determination provides you with the key gures that you need to do this:

Percentage of completion (POC)

The POC describes the ratio of the work carried out by a cutoff date to the total work in an activity or project. (DIN
69901)

Earned value (EV)

The EV denotes the costs corresponding to the POC for an activity or project. (DIN 69903)

The EV results from the valuation ofthe POC with the total planned costs. The term " planned costs" is a synonym for the
accumulated planned costs and the budget.

You can use the determined POC as the basis for results analysis. In balancing, the POC method is often used for results
analysis. The POC from the progress determination is the basis for the results analysis.

Prerequisite
A progress version is de ned in the Project System IMG. Using the progress version, you determine the most important control
factors for progress determination, such as:

Base (POC base) to determine the POC

Set of dates

To determine the POC, you need a measurement method : You can:

This is custom documentation. For more information, please visit the SAP Help Portal 4
 8/5/2022
Use one of the measurement methods provided by SAP

De ne a default measurement method for each object in Customizing

De ne a measurement method directly r each object

In addition, the following settings have been de ned in the Project System IMG:

Statistical key gure under which the POC is updated

Default cost element to update values by cost element

Features
Determination of the POC

The system uses certain measurement methods to determine planned and actual POC for the following project elements:

WBS element

Activities

Activity elements

Orders for the project

Calculation of the Earned Value

Using the base C(total), for example the planned costs, the system calculates the planned and actual earned value (EV) from
the POC.

EV(Planned) = POC (Planned) * C(total)

EV(Actual) = POC(Actual) * C(total)

In the following paragraphs, actual POC and POC are used synonymously.

In Customizing for the Project System, you de ne the base in the progress version. Possible bases are:

Planned costs (current or CO version)

Annual budget

Total budget

 Note
If you use planned costs as the base and determine the POC at activity level, the networks must be activity-assigned.

If you use the budget as the base, you can evaluate the earned value only in WBS elements.

For planned costs, the planned costs on an accrual basis are taken into account. However, the costs planned in
hierarchy planning are not taken into account for the WBS element.

 Example
You have agreed a xed budget with an ordering party.The earned value should be determined on the basis of the
agreed budget. You choose the agreed budget as the base.

This is custom documentation. For more information, please visit the SAP Help Portal 5
 8/5/2022
You want to analyze the earned value based on your optimistic and pessimistic planning. You choose the relevant
planning version as the base for the earned value.

You want to analyze the expected earned value in consideration of changed costs caused by planning changes. You
choose the forecast costs in the forecast version as the basis for the earned value.The determined earned value
re ects the forecast value for the work performed up to completion of the project.

For more information, see Project Cost Forecast .

The earned value is rolled up in the project hierarchy. The earned value is not recalculated in a higher hierarchy level.

Consideration of the Set of Dates

Delays usually result in cost variances. You can take into account different sets of dates to determine the POC. In Customizing
for the Progress Version, you de ne the set of dates that the system uses in the determination:

Basic or forecast dates

Earliest or latest dates

Aggregation Using the Project Hierarchy

The POC of a project results from the aggregation of the POC for the individual objects using the project hierarchy. You weight
the separate values accordingly. You de ne the basis for the weighting, for example, Work , in Customizing for the Progress
Version. You use the weighting to represent the proportion of a work package to the total work. Inaccuracies on individual object
level are adjusted in the aggregated display.

 Example
You want to analyze only the progress of the internal work in your project. In Customizing, you de ne Weight for the POC
weighting. In the object maintenance, you maintain the weighting factor additionally for each object; 1 for internal work and 0
for external work.

Only the progress for internal work is taken into account in the POC aggregation.

The system records the aggregated and non-aggregated values separately in the relevant statistical key gure.

In the Information System, you can jointly evaluate the aggregated and non-aggregated POC.

 Note
The values are aggregated in line with the project hierarchy. Hierarchical changes or a different view lead to the incorrect
display of the aggregated values in the evaluation. After hierarchical changes, you carry out progress determination again.

The earned value is totaled up in the aggregated display using the project hierarchy, irrespective of the POC aggregation.

Updating the POC for Results Analysis

Only the POC from the billing element is relevant to results analysis. The system updates the aggregated POC for the billing
element under the statistical key gure with usage POC for Results Analysis . The aggregation only takes account of the objects
in the billing structure.

This is custom documentation. For more information, please visit the SAP Help Portal 6
 8/5/2022

Correction Due to Plan Changes

The system determines the POC and earned value on the basis of the information currently available in the system. If the plan
changes whilst the project is in progress, the changes can also affect the values in the progress determination.

 Example
Plan changes lead to higher total planned costs. If the POC does not change, the earned value increases.

You determine the POC in proportion to the quantity of the completed drawings. If the number of planned drawings
increases because of additional requirements in your project, the POC is correspondingly reduced.

The project manager needs to analyze the effects of these changes on earlier periods too. The reports for the ordering party do
not contain inconsistencies when compared to earlier reports.

In Project Management , you can analyze the corrected values in addition to the original values to get a consistent assessment
of the project. Adjustment postings occur only for the actual POC or earned value of past periods.

Evaluation at Cost Element Level

In some cases, it is useful to analyze cost and schedule variances on cost element level. This allows you to analyze, for example,
the earned value for an activity, separated by work and material.

The system calculates the earned value rst in the original cost element. The system updates the determined values,
aggregated in the cost elements de ned in Customizing.

Activities
This is custom documentation. For more information, please visit the SAP Help Portal 7
 8/5/2022
You carry out progress determination as part of periodic processing.

For more information, see Carrying out Progress Determination .

You can evaluate all of the values in the progress determination, meaning the current values, the values from past periods, and
the planned values of future periods, in the Information System at any time in lists and graphs that can be exibly structured.
You can also evaluate the earned value that has been corrected to re ect plan changes together with the original value.

You can use the standard reports that have been provided. You can also create your own reports.

For more information, see Evaluation of Project Earned Value .

Progress Version

De nition
In the project version, you de ne the control parameters to calculate the POC and earned value.

A progress version is a special CO version, which the system uses to update the data in the progress determination. The data is
always available for subsequent evaluations.

The progress version is a CO version with the exclusive use Progress Analysis .

Use
You use the progress version in progress analysis. You need the progress version in the

Object maintenance, if you maintain a measurement method for the object

Execution phase, if you carry out progress determination

Information System, if you access the progress analysis reports

Structure
You use the progress version to de ne the:

Base to determine the POC

Basis for the POC weighting to evaluate the POC on an aggregated basis within the project hierarchy

Set of dates to determine the POC

You de ne the following parameters:

Planning type

Set of dates

Adoption of the actual or planned methods in the other method, if this is not maintained

Time-Phased Progress Determination

This is custom documentation. For more information, please visit the SAP Help Portal 8
 8/5/2022

Use
The earned value is calculated by applying the percentage of completion (POC) to a cost amount.

Features
You can calculate the POC in two ways:

Multiplication

The POC is multiplied by the cost amount.

Quantity Costs

Planning period 1: 20H $200

Planning period 2: 30H $330

POC 60%

Earned value (EV) $530 * 60% = $318

Time-phased

The POC is applied to the quantity and then calculated together with the corresponding costs.

Quantity Costs

Planning period 1: 20H $200

Planning period 2: 30H $330

POC 60%

EV 50H * 60% = 30H

Period 1: 20H / 20H * $200 = $200

Period 2: 10H / 30H * $330 = $110

Total: $310

Activities
To carry out the time-phased progress determination, select the Time-phased Progress Determination indicator.

Measurement Methods

De nition
In the measurement method, you de ne how the system determines the POC for an object. In the standard system, different
measurement methods have been prede ned. You can also de ne your own measurement methods in Customizing for the
Project System .
This is custom documentation. For more information, please visit the SAP Help Portal 9
 8/5/2022

Use
You save measurement methods with a Progress Version for the different project elements. You can save planned and actual
measurement methods. In progress determination, the system determines the POC according to the valid measurement
method.

For more information, see Determination of the Measurement Method

You can de ne measurement methods:

In Customizing, as default values per object type

In object maintenance for the following objects:

WBS element

Activities

Activity elements

 Note
You can assign orders to a measurement method only in Customizing for the Project System . You cannot
maintain measurement methods directly in the order.

The table shows where you maintain the measurement methods for the objects:

Object Maintenance of the Measurement Method

Projects in structure planning Details General, in the Progress tab

Projects in the project planning board Details Detail Information on Object, in the Progress tab

WBS element Details General, in the Progress tab

Activities or activity elements Details Activity/Element General, in the Progress tab

Assigned orders In Customizing for theProject System, underProgress Progress

Analysis.

Structure
The measurement method consists of a measurement technique, which has been prede ned in the SAP system, and additional
parameters.

Measurement Techniques

The measurement technique de nes how the system determines the POC on the basis of the available data in the SAP system.
The following measurement techniques are available in the SAP system:

Start-Finish Rule

Milestone Technique

Estimates

Proportional to Time

Degree of Completion

This is custom documentation. For more information, please visit the SAP Help Portal 10
 8/5/2022
You can only use this measurement technique for the actual activities that you con rm.

Proportional to Quantity

Proportional to Dependent Work

Proportional to Cost

Actual = Planned

In this measurement technique, the system copies the planned POC to the actual POC. You can only use this
measurement technique in the actual.

Parameters for the Measurement Technique

In the different measurement techniques, you de ne additional parameters to determine the POC, for example

Maximum POC

As long as work has not been completed, which means there is no actual nish date, the actual POC cannot exceed the
maximum POC. The maximum POC should prevent an over evaluation (the “90% syndrome”) of work that is “almost
complete”.

Start POC

Percentage for the initial POC in the start- nish rule .

Statistical key gures

If you want to calculate the POC on a quantity-proportion basis, you must specify the statistical key gure for the
measurement method.

Integration
The table provides an overview of the measurement methods that we recommend for each object:

Object Planned Actual Comments

Internal activity Proportional to cost Milestone Degree of completionMilestone

technique technique

External activity Proportional to costProportional Proportional to costProportional

to time to time

Cost activity Milestone Milestone

techniqueEstimateStart-Finish techniqueEstimateStart-Finish
rule rule

Production order for the project Proportional to cost Proportional to cost The system uses a suitable
weighting to aggregate the POC
for the order in the project.

WBS element Milestone techniqueProportional Milestone techniqueProportional If activities are assigned to the
to quantityStart-Finish to quantityStart-Finish WBS element, the POC should
ruleEstimateProportional to ruleEstimateProportional to be determined in the activity.
timeProportional to cost timeProportional to cost
The system uses a suitable
weighting to aggregate the POC
for the activities in the WBS
element.

This is custom documentation. For more information, please visit the SAP Help Portal 11
 8/5/2022

 Note
To get a better comparison of the determined values, we recommend that you use the same measurement methods in
planned and actual. An exception is the measurement method that you only use in actual.

Determination of the Measurement Method

Purpose
When you carry out progress determination, the system determines the POC for an object. The system rst determines the
valid measurement method for the object.

Integration
In the progress version, you can:

De ne a default measurement method for each object type

Specify whether an existing planned method is copied to the actual method, and vice versa

In object maintenance, if you do not de ne a measurement method for the object, the system uses the planned or actual
method.

For more information, see Progress Version .

Process Flow
The system determines the valid measurement method in the progress determination. The determination of the measurement
method depends on the settings for the progress version in the Implementation Guide (IMG).

The following gure illustrates how the SAP system determines the valid measurement method.

This is custom documentation. For more information, please visit the SAP Help Portal 12
 8/5/2022

The system always determines a measurement method for the object. If the system cannot nd a prede ned measurement
method, it copies measurement method “SAP 0-100”. This measurement method is xed and cannot be changed.

Result
The SAP system displays the valid method for the object in the log for progress determination or in progress analysis.

 Note
As determination of the measurement method depends on the progress version, the system displays the determined
measurement method in the detail data for the object, only when you maintain a project version for the object.

Start-Finish Rule

Use
The start- nish rule is a quick and easy measurement technique that provides you with a rough estimate of the project earned
value. This measuring technique is based on scheduling. The work package duration should not exceed three months in this
measurement technique.

Prerequisite
This is custom documentation. For more information, please visit the SAP Help Portal 13
 8/5/2022
You maintain the start and nish dates in the objects for the start- nish rule:

Basic start and basic nish for the planned POC

Actual start and actual nish for the actual POC

You maintain planned dates in scheduling, the project planning board, or structure planning.

The system determines the actual dates from the con rmations, or you can enter the actual dates.

For more information, see Entry of Actual Dates .

Features
In the start- nish rule, the POC rises at the start date to the initial POC that is de ned in the measurement method in
Customizing. When the end date is reached, the POC is 100%. In Customizing for the Progress Version , you de ne the set of
dates that the system uses to determine the POC.

In the standard system, the start- nish rule contains the following methods:

0 - 100

The initial POC is 0 %. The start date of the work package is irrelevant to progress analysis. The POC only reaches 100%
if the work package is complete, which means that the nish date has been reached.

You can use the 0 - 100 method if the work package falls within a reporting period, for example, within one month.

20 - 80

The initial POC is 20%. An initial POC of 20% is assumed at the start of the work package. By the nish date, the POC
rises by 80% to 100%.

At rst, the assumption of an initial POC of 20% seems too optimistic. However, a realistic estimate is possible overall,
because a POC of 20% is also assumed for work packages that are almost completed during the execution phase.

You should only use this method if you do not have more accurate estimates and the duration of the work package is not
more than three months.

This is custom documentation. For more information, please visit the SAP Help Portal 14
 8/5/2022

Example
The gure illustrates how the system uses the 20-80 measurement method to determine the POC based on dates.

This is custom documentation. For more information, please visit the SAP Help Portal 15
 8/5/2022

Milestone Technique

Use
You use this measurement technique if particular targets or events (milestones) are de ned in a work package, and you can
check the achievement or result of these milestones.

Milestones are usual in:

Development work

Design and engineering

Production and assembly

Cases where the ordering party prescribes milestones, for example, as the basis for payments

The milestone technique is date-related and is preferred for large projects that last longer than three months.

Prerequisite

This is custom documentation. For more information, please visit the SAP Help Portal 16
 8/5/2022
The milestones that are relevant to progress analysis have been maintained in the project. You maintain milestones in the work
breakdown structure, network, project planning board, and structure planning.

For more information, see Creating Milestones .

The following data has been maintained in the milestone detail screen, to allow the system to take account of the milestones in
progress analysis:

EV indicator

The earned value indicator sets the milestone as relevant for progress analysis

Percentage of completion (POC)

The percentage is a cumulative value, meaning the POC of the activity or WBS element increases when the milestone is
reached to the POC that you enter here.

Features
Each milestone corresponds to the proportion of work that should be or is performed in an activity or a WBS element. You can
maintain milestones for activities and WBS elements.

The system takes account of the following milestones for the planned POC:

Scheduled dates for milestones in the activity or activity element.

You can maintain milestone dates with reference to the activity for milestones for activities or activity elements. You
enter a time interval, such as 10 hours , or a percentage value, which applies to the activity duration. In network
scheduling, the system determines the milestone dates based on the dates for the activity or activity element. If you
have maintained a xed date for the activity or activity element, the system copies the xed date to the scheduled date
of the milestone during scheduling. Fixed dates are not taken into account in activity date shifts.

Fixed date (basic or forecast date) for milestones in the WBS element

In Customizing for the Progress Version , you de ne the set of dates that the system uses to determine the planned
POC:

The system takes account of the actual date of the milestone for the actual POC. When the milestone is reached, you maintain
the actual dates in the milestone overview or the system copies them from the con rmation.

If you have set the Automatic Milestone Date indicator in the con rmation parameters, the system copies the actual date from
the con rmation as the actual milestone date. If you have not set this indicator, the system asks you to con rm the milestone
dates when you save the con rmation.

For more information, see Dates in Milestones .

The system determines the POC as follows:

On the basic or forecast date of the milestone, the planned POC for the activity or WBS element rises to the POC de ned
in the milestone.

On the actual date of the milestone, the actual POC rises to the POC de ned in the milestone. The con rmation of an
activity, for example, can mean that the actual date of a milestone has been reached.

This is custom documentation. For more information, please visit the SAP Help Portal 17
 8/5/2022

Example
You have maintained the following milestones for an activity:

Milestone Scheduled Date Actual Date POC

M1 01.04.99 01.05.99 25 %

M2 01.06.99 01.07.99 60 %

Finish date 01.08.99 01.09.99 100 %

The system determines the POC as follows:

Period Planned POC Actual POC

04.99 25%

05.99 25% 25%

06.99 60% 25%

This is custom documentation. For more information, please visit the SAP Help Portal 18
 8/5/2022

Period Planned POC Actual POC

07.99 60% 60%

08.99 100% 60%

09.99 100% 100%

Estimates

Use
You de ne the POC on the basis of a subjective estimate in this method. This measurement technique Estimates is based on
dates.

You use the measurement technique Estimates when no other objective method is available. The work package duration should
not exceed three months for this measurement technique.

Prerequisite
You have maintained a planned or actual POC for each period for the WBS element or activity. The system uses the maintained
dates to set the periods.

The table shows where you maintain the data for your estimates in the Project System.

Object Maintenance of the Data for Estimates

Projects in structure planning Details General, in the Progress tab choose Estimated Values

Projects in the project planning board Details Detail Information for Object, in the Progress tab choose
Estimated Values

WBS element Details General, in the Progress tab choose Estimated Values

Activity or activity elements Details Activity/Element General, in the Progress tab choose
Estimated Values

In Customizing for the Project System , you can additionally de ne a maximum POC in the measurement method for the
estimate.

The maximum POC prevents an overvaluation of work that is “almost complete” (the “90% syndrome”). The actual POC cannot
exceed the maximum POC if the task has not been completed, that is, there is no actual nish date.

 Note
We recommend that you use a POC of 80% for the estimate of the actual POC.

Features
In this measurement technique, the system uses the percentage that has been entered manually as the POC in the speci ed
period.

 Note

This is custom documentation. For more information, please visit the SAP Help Portal 19
 8/5/2022
You always enter the cumulative estimated value. The values are not added to each other.

Example

Planned Date Estimated Value Planned POC

05.99 10% 10%

06.99 30% 30%

07.99 100% 100%

Degree of Completion

Use
You use this measurement technique as the actual method if you want to determine the project progress of internal work, for
example activities that are processed internally.

Prerequisite
You can only use this measurement technique to determine the actual POC of activities or activity elements that have been
con rmed.

Features
In this measurement technique, the system uses the degree of completion from the con rmation as the POC.

You can maintain the POC in the con rmation for the activity or activity element, or the system calculates the POC using the
data in the con rmation.

For more information, see Actual Work, Remaining Work, and Degree of Processing .

Example
You con rm activity 0010 Assembly with a 20% degree of completion. The actual POC is also 20% for the activity.

This is custom documentation. For more information, please visit the SAP Help Portal 20
 8/5/2022

Proportional to Time

Use
You can use this measurement technique for work packages in which you plan work that is continuously performed over the
total processing period (for example, consulting, administration).

Prerequisites
You have maintained the start and nish dates for the WBS element or activity:

This is custom documentation. For more information, please visit the SAP Help Portal 21
 8/5/2022
Basic start date and basic nish date for the planned POC

You maintain planned dates in time scheduling, in the project planning board, or in structure planning.

Actual start and tentative actual nish for the actual POC

The system determines the actual date based on the con rmation, or you enter the actual date in the WBS element.

Features
The system determines the duration based on:

Maintained dates

The factory calendar that applies to the object

In Customizing for the Progress Version , you de ne the set of dates that the system uses to determine the duration:

The system assumes that the project earned value is linear for the duration. The system determines the POC in proportion to
the total duration. The system uses the planned total duration as the actual total duration if the activity is not nally con rmed.

 Note

This is custom documentation. For more information, please visit the SAP Help Portal 22
 8/5/2022
The system determines the duration subject to the factory calendar. This allows factory holidays to be taken into account
when determining the POC. This may mean that the POC rises only marginally or not at all in a particular period.

Example
You have maintained the following dates for an activity:

Planning Type Planned Basic Start - Planned Basic End

Date 01/25/1999 – 04/06/1999

This results in the following POC values:

Period 1 2 3 4 Total Duration

Workdays Subject 5 days 20 days 23 days 2 days 50 days

to Factory Calendar
Plan

Planned POC 10% 50% 96% 100%

Proportional to Cost

Use
You use this measurement technique for work packages in which the costs constantly accompany the work (for example,
consulting).

Prerequisites
Accrued costs have been planned on or actual costs have been posted to the object.

 Note
The system does not take account of costs from hierarchy planning in the WBS element.

Features
The system determines the POC for a period from the ratio of planned or actual costs to the total planned costs (C(Total)). The
system calculates the planned or actual POC as follows:

EV(Planned) = Planned costs / C(Total) * 100

EV(Actual) = Actual costs / C(Total) * 100

The planned costs are the cumulated planned costs up to the calculation period. The total planned costs are the cumulated
planned costs for the duration of the work package. In Customizing for the Progress Version, you determine which cost plan the
system uses.

This is custom documentation. For more information, please visit the SAP Help Portal 23
 8/5/2022

Example
The total costs of a work package is $100,000.

The table re ects the determination of the POC in relation to the total costs.

Period 1 2 3

Planned costs $10,000 $50,000 $100,000

Planned POC 10% 50% 100%

Actual costs $5,000 $30,000 $90,000

Actual POC 5% 30% 90%

Proportional to Quantity

Use
You use this measurement technique if payable events become due over time for the work package, this means work in which
several identical parts are created. Typical examples are manufacturing, creation or delivery of a certain number of drawings,
lms, data carriers.

Integration
The system uses statistical key gures to manages quantities in the Project System. In the Basic Data Project Management
screen, you maintain the statistical key gures under StandardStructures Statistical Key Figures. .In List Display , the system
lists all statistical key gures that have been maintained.

Prerequisites
You have de ned a corresponding measurement method in Customizing. For the measurement method, you maintain the
statistical key gure to which the quantity proportionality should apply. You can maintain only one key gure for each method.

In the Basic Data Project Management screen, you have created statistical key gures under Standard Structures Statistical
Key Figures. For this method, you use only statistical key gures with key gure type Totals Value .

In the Project Planning screen, you maintain the planned values for the statistical key gures under
Costs/Revenues Statistical Key Figures . In the Project Execution screen, you enter the actual values under
Con rmation Statistical Key Figures .

Features
The system determines the POC as the ratio of the quantity (Q) to the planned total quantity (Q(Total)).

POC(Planned) = (Q(Planned) / Q (Total)) * 100

POC(Actual) = (Q(Actual) / Q (Total)) * 100

Example

This is custom documentation. For more information, please visit the SAP Help Portal 24
 8/5/2022
You plan the creation of 60 drawings for an activity. The planned quantities are distributed evenly over the periods. The
cumulated POC for each period is:

Period 1 2 3 4

Planned quantity, 15 30 45 60
accumulated

Planned POC 25% 50% 75% 100%

Con rmed quantities, 12 30 42 60

accumulated

Actual POC 20% 50% 70% 100%

Proportional to Dependent Work

Use
If a xed relationship between work packages exists for the project earned value, and you cannot break down the expenditure,
you use the proportional to dependent work measurement technique, for example, for inspection checks.

Prerequisites
You have maintained a base object for the WBS element or activity.

The table shows where you maintain the base object in the different Project System functions:

Project System Function Entry of the Base Object

Structure planning Goto Progress Analysis Parameters.

Select the progress version. In the dialog box, choose Base Object .

Project planning board Goto Progress Analysis Parameters.

Select the progress version. In the dialog box, choose Base Object .

Activity overview Details Activity/Element Progress Analysis Parameters.

Select the progress version. In the dialog box, choose Base Object .

WBS element overview Details Progress Analysis.

Select the progress version. In the dialog box, choose Base Object .

Features
In this measurement technique, the system determines the work performance of a WBS element or activity subject to the
progress of another WBS element or activity. You can use weighting to map a xed relationship between activities.

Example
You have planned two activities, ʻ Create Drawings ’ and ʻ Check Drawings ’ in the network. A drawing is not nished until it has
been successfully checked.

This is custom documentation. For more information, please visit the SAP Help Portal 25
 8/5/2022
Using this measurement technique, the POC of the ʻ Check Drawings ’ activity is copied to the ʻ Create Drawings ’ activity. You
use the milestone technique as the measurement method for the rst activity, ʻ Check Drawing ’.

Periods 1 2 3 4

Milestone activity 1 M1 M2 M3

POC 50% 50% 70% 100%

POC for activity 50% 50% 70% 100%

2(dependent activity)

Carrying out Progress Determination

Use
The system determines the POC and the earned value. You can carry out progress determination in individual processing and
collective processing at any time; usually you would carry out progress determination at the end of a period. You can carry out
progress determination several times, for example, when planning changes.

Prerequisite
In the Implementation Guide (IMG) for the Project System, you have de ned the required settings for progress determination.

If you carry out progress determination in collective processing, you have created a selection variant. You can create the
selection variant in Progress Determination Collective Processing screen.

Procedure
1. In the SAP Easy Access menu, choose Logisticsor Accounting Project System Execution, and then Period-end
Closing Forecast/Progress Individual Progress Processing

2. Enter a controlling area.

The Project Earned Value screen appears.

3. Enter one of the following to select data:

Project de nition

WBS element

Networks

 Note
If you want the networks and orders that are assigned to the project or WBS element to be included in your
selection, set the Include Orders indicator.

4. Enter the following parameters:

Progress Version

You use the progress version to de ne the different control parameters, such as the default method for the
objects, the base (C(Total)), and the set of dates.

To Period
This is custom documentation. For more information, please visit the SAP Help Portal 26
 8/5/2022
You use the period to determine the date to which the actual value is calculated. The system always calculates
the planned value for the total duration from the planned start date to the planned nish date.

5. Select the required processing option.

6. Choose Execute .

Result
The system selects the objects according to the selection criteria and determines the valid measurement methods . The system
determines the planned and actual POC for each object as follows:

Aggregated

Not aggregated

POC for results analysis

The system determines the aggregated POC of the billing element for the results analysis. In the aggregation, the
system takes account of the project elements in the billing structure that are subordinate to the billing element.

The system updates the determined POC for the different uses using the statistical key gures de ned in Customizing.

The system takes the POC as the basis to calculate the planned and actual earned value (EV).

EV = POC * C(Total)

The system updates both the original values and the corrected actual values for the purposes of consistent reporting.

 Note
Adjustment postings occur only for actual values in past periods. The current determined values are always updated in the
current period.

The system updates the calculated values by cost element using the cost elements de ned in Customizing.

When processing is complete, the system issue a two-level log.

The basic list contains the number of objects:

To which a method is assigned

For which the planned or actual method has been copied

For which the standard method was used

To go to the detail list, select a row and choose Next List Level . The detail list contains the objects and their assigned methods.

You can evaluate the determined values at any time in the Information System.

For more information, see Evaluation of Project Earned Value .

Evaluation of Project Earned Value

Use

This is custom documentation. For more information, please visit the SAP Help Portal 27
 8/5/2022
You use this function to analyze the project earned value.

Prerequisite
You have carried out progress determination for a progress version.

Features
The POC and the earned value are signi cant project key gures. You can evaluate these values on the level of the individual
project elements or aggregated for the total project or subproject. Together with other project key gures, the Progress
Analysis Values are available as the following report types:

Structure-oriented report on progress analysis

Hierarchy report of drilldown reporting

Report-Painter or Report-Writer report

All of the standard reports for progress analysis are contained in the general report selection for the Project System under
Progress Reports . The following reports are available in the standard system:

Structure Overview

You can evaluate the POC and earned value jointly in the structure overview. The system displays the values according to the
project hierarchy.

In the structure overview, you can evaluate the POC and the earned value as follows:

Aggregated

Not aggregated

Not corrected

Corrected

From the hierarchy display, you can navigate to a project element in the period breakdown and to graphic displays.

This is custom documentation. For more information, please visit the SAP Help Portal 28
 8/5/2022

 Note
You can only access the tables and graphs through the structure report for progress analysis.

You can determine the expected total costs using the project cost forecast . To evaluate these values together with the
progress values in the structure overview, when accessing the report through Settings Display Values Version , you must
specify the relevant forecast version as plan version 2.

For more information, see Calling Progress Analysis Reports .

Hierarchy Reports

In hierarchy reports, you can evaluate the earned value with other values relevant to progress analysis. In the standard system,
the following reports are available:

Progress analysis 12EVA1

This contains a hierarchical overview of the following values:

Planned earned value (original value) accumulated up to the current period

Planned costs accumulated up to the current period

Planned total, accumulated planned costs for the duration of the project

Actual earned value (original value)

Actual costs

This is custom documentation. For more information, please visit the SAP Help Portal 29
 8/5/2022
Value variance

Value index

Work variance

ETC

EAC

Progress analysis detail 12EVA2

This report compares the aggregated values with the non-aggregated values. The report contains the following values:

Planned earned value

Planned earned value (corrected)

Planned costs

Actual earned value

Actual earned value (corrected)

Actual costs

Value variance

Value index

Work variance

You can create your own reports to complement the standard reports. The exible nature of the project reports means that you
can de ne further comparison factors for the values in progress analysis.

 Note
The report selection must take place for the planned version and the progress version. You use the standard reports as
templates.

You cannot evaluate the POC in the hierarchy reports.

Report Painter Reports

You can create your own Report Painter reports to evaluate the POC and earned value by cost element. Report Painter reports
are suitable for jointly analyzing the POC and earned value. The standard system does not contain a Report Painter report for
progress analysis.

Planned data is updated in value type P1 and actual data is updated in value type P2. The system updates the original values in
activity PEV1 and the corrected values in activity PEV2.

Progress Analysis Values

Use
The standard reports contain a number of values to assess the project earned value.

Features
This is custom documentation. For more information, please visit the SAP Help Portal 30
 8/5/2022
Using the standard reports, you can evaluate the following values and key gures for progress analysis.

Planned POC

The planned POC expresses the planned work as a percentage up to a particular point.

In Customizing, you determine the following parameters for the planned POC:

Weighting for the POC aggregation

Set of dates to determine the planned POC

Default value for the measurement method in planned for each object type

Actual POC

The actual POC expresses the work actually performed as a percentage up to a particular point.

In Customizing, you determine the following parameters for the actual POC:

Weighting for the POC aggregation

Default value for the measurement method in actual for each object type

Planned Earned Value (BCWS)

The planned earned value is the value of the planned work at a particular point. It is a realistic basis for comparison (tracing
factor) to evaluate the actual POC. The system calculates the planned earned value from the planned POC in relation to the
planned total value of the work to be performed (base). In Customizing for the Project System, you de ne the reference value
to determine the earned value. You use an approved cost plan or the budget as the base. You use the same base in planned and
actual.

Planned Costs

Planned costs are the cumulated planned costs for a CO version. You can use the planned costs as the base to evaluate the
work. The total planned costs re ect the planned costs on completion.

Actual Earned Value (BCWP)

The actual earned value is the value of the work actually performed up to a particular point.

Actual Costs (ACWP)

The actual costs are the costs incurred up to a cutoff date.

Work or Schedule Variance (SV)

The work or schedule variance represents the costs incurred by a date shift, and is de ned as the difference between the actual
and planned earned value.

SV = BCWP - BCWS

Value or Cost Variance (CV)

The value or cost variance is the difference between the actual earned value and the actual cost. The cost variance contains the
costs from the usage variance and schedule variance. A negative value means that the incurred costs are greater than the
planned costs.

This is custom documentation. For more information, please visit the SAP Help Portal 31
 8/5/2022
CV = BCWP - ACWP

Value Index (CPI)

The key value that represents the relationship between the value ow and the actual costs as a percentage. The value index
shows the extent to which project execution has deviated from the plan. Using the value index, you can forecast future costs.

CPI = BCWP / ACWP

Estimated Costs-To-Complete (ETC)

The estimated costs-to-complete is an estimate of the residual costs up to completion based on the project earned value.

ETC = (BCWS - BCWP) / CPI

Estimated Costs At Completion (EAC)

The estimated costs-at-completion is an estimate of the total costs on completion based on the project earned value.

EAC = ACWP + ETC

Calling Progress Analysis Reports

Use
This report provides a structure-oriented overview of the POC and the earned value. It shows the period-speci c total values.
You can jump directly from the period breakdown to the graphical display of values.

Prerequisite
You have carried out progress determination for a progress version.

Procedure
1. In the SAP Easy Access menu, choose Logisticsor Accounting Project System Information System Progress Progress
Analysis.

2. If the system asks you to enter a PS info pro le, enter the standard pro le for progress analysis ( SAPPS_EV0002 ) or a
pro le of your own.

3. If the system asks you to enter a controlling area, enter the controlling area that is valid for your project and choose
Continue .

The Project Information System: Progress Analysis Initial Screen appears.

4. Choose Settings Value Display Plan Versions…. In the dialog box, change the progress version if required.

To analyze costs from the CO versions in the structure overview together with the progress values, when accessing the
report using Settings Value Display Version , specify the relevant CO version (for example, a forecast version) as plan
version 2.

5. Enter the selection criteria.

6. Choose Execute .

This is custom documentation. For more information, please visit the SAP Help Portal 32
 8/5/2022

Result
The report displays the progress analysis values corresponding to the project hierarchy. You can select other elds for
evaluation. In the overview, you can display both time-dependent values, such as the planned POC, and time-independent
values, such as the method assigned to the project element.

You choose Goto Periodbreakdown to display the time-dependent values for a project element.

If you do not want to display cumulative values, choose Settings Value Display Not Cumulated . The system displays the values
in the period in which they occur and adds a totals line.

 Note
Values determined in the current period are shown only in the period breakdown.

Graphical Representation

From the period breakdown, choose Goto Graphic Period Breakdown to access the graphical overview of the time-dependent
values.

 Note
Use Select Field s in the period breakdown to select the elds that you want to display in the graph.

Actual Costs of Work Performed (ACWP)

The Actual Costs of Work Performed (ACWP) value corresponds to the actual costs in the Project System. ACWP is a recognized
term in project management, which has been de ned by the US Government in the "Cost/Schedule Control System Criteria".

Budgeted Costs of Work Performed (BCWP)

The Budgeted Costs of Work Performed (BCWP) value corresponds to the actual earned value in the Project System. BCWP is a
recognized term in project management, which has been de ned by the US Government in the "Cost/Schedule Control System
Criteria".

Budgeted Costs of Work Scheduled (BCWS)

The Budgeted Costs of Work Scheduled (BCWS) value corresponds to the planned earned value in the Project System. BCWS is
a recognized term in project management, which has been de ned by the US Government in the "Cost/Schedule Control
System Criteria".

Progress Analysis Versus Plan/Actual Comparison

You estimate that the execution of a customer project will incur costs of $100,000. The project duration is four periods. The
planned costs are distributed evenly over these periods ($25,000 per period). Total costs of $40,000 are posted for periods one
and two.

The gure illustrates the plan/actual comparison, showing a favorable project situation. You can expect the costs to be lower
than planned.

This is custom documentation. For more information, please visit the SAP Help Portal 33
 8/5/2022

In your analysis, if you now take into account the actual work performed, the situation can be different. In period two, you carry
out progress analysis. The system determines the POC at 25% and the earned value (total planned costs * POC) at $25,000.
The result is a cost variance of $15,000 and a delay of one period.

This is custom documentation. For more information, please visit the SAP Help Portal 34
 8/5/2022

Project Cost Forecast

Purpose
During the execution phase of the project, variances arise time and again between the original cost and process planning and
the actual project. A shift in activity dates within the buffer times is sufficient to change project costs. Once the rst actual
costs have been incurred, you have to check the residual costs for accuracy and update them. This is the only for you, as the
project manager, to get a basis for a realistic cost forecast for the overall project duration.

The cost forecast allows you to adjust cost planning to changing conditions. To get the current residual costs (estimate to
completion), the system determines and valuates the residual activities based on the planned, forecast, and actual values in the
network. The updated total costs (estimate at completion) result from the total of the costs that have already been incurred on
the project (actual and commitment) and the updated residual costs.

This is custom documentation. For more information, please visit the SAP Help Portal 35
 8/5/2022

The determined values are proposals that act as the basis for your cost forecast.

You can carry out the cost forecast at any time for one or more projects. If required, you can also have several forecast versions
at the same time in the system. You usually carry out the cost forecast at period-end closing.

Prerequisites
The system determines the updated residual costs only for activity-assigned networks, which are both additive and for planning
purposes only. Preliminary planning networks are not taken into account.

The activity is assigned to a WBS element.

Process Flow
Before accessing the cost forecast, you need to do the following:

a. Reschedule

No scheduling of activities takes place in the cost forecast. To take account of schedule variances when determining the
updated residual costs, you have to carry out scheduling.

b. Calculate overhead on actual and commitment values

To calculate the updated total costs, you have to separately carry out the overhead calculation on actual and commitment
values. The system determines the planned overheads of the updated residual costs for activities in the cost forecast.

In the Project Execution area menu, choose Period-end Closing → Forecast/Progress to access the cost forecast. You can carry
out the cost forecast in individual or collective processing.

Based on planned, actual, and commitment values, the system determines the remaining activities in the network activities.
The system takes into account:

All the actual and commitment values in the project

The planned values for network activities in CO version 0

Forecast values from con rmations

This is custom documentation. For more information, please visit the SAP Help Portal 36
 8/5/2022
It does not consider:

Planned values for the WBS element

Planned values for the preliminary planning networks

Planned costs for material components in valuated project stock (planned for a later release)

The updated residual costs cannot be determined for simulation versions.

Based on the planned, commitment, and actual costs, the system determines the work that is still to be performed in the
network activities and recalculates it. The system updates the determined value as updated residual costs on an accrual basis
in a forecast version for:

Internally processed activities

Externally processed activities

General cost activities

¡ Material components in collective stock

Value determination usually takes place at period-end closing on the rst day of the current period. However, you can also
specify a cutoff date for the cost forecast. The system uses the cutoff date to determine the cost distribution.

The determination of the residual costs takes place at the same time as the calculation of the planned values. The basis for the
calculation of the residual costs is the valuation variant de ned in the planned costing variant of the activity.

If an activity has been completely con rmed or has a nal con rmation, the system sets the updated residual costs to zero.

In addition to the updated residual costs, the system copies the current actual and commitment values for the project from the
database to the cost forecast. The system updates the commitment values from periods that are prior to the cutoff date period
of the cost forecast to the cutoff date period in the forecast version. The default is the current period.

You can use forecast version 110 in the standard system. Forecast versions are CO versions with the exclusive use Forecast
Costs . In the Implementation Guide (IMG) of the Project System, you can create other forecast versions.

The gure shows the values that the system updates to the forecast version.

Result
You can use the following values in the forecast version to evaluate data in the Project Information System:

This is custom documentation. For more information, please visit the SAP Help Portal 37
 8/5/2022
Residual costs (estimate to completion)

Actual values at the time of the cost forecast

Commitment values at the time of the cost forecast

You can use the hierarchy reports and cost element reports in the Information System to evaluate the data.

Residual Costs of Internally Processed Activities

Prerequisites
The activity is assigned to a WBS element.

The activity is identi ed in the control key as costing-relevant.

Features
The updated residual costs are determined on the basis of the remaining forecast work in the internally processed activity or
the residual work in the cost forecast

The system determines the updated residual costs as follows:

The activity has not yet been con rmed (no actual dates).

The planned start date of the activity is later than the cutoff date in the cost forecast.

The system recalculates the planned costs in the activity and copies them as updated residual cost to the
forecast version. The updated total costs correspond to the updated residual costs.

The planned start date of the activity is earlier than the cutoff date in the cost forecast.

The system distributes the planned work in the activity in line with the activity's distribution key over the period
between the cutoff date in the cost forecast and the planned activity nish. The system recalculates the planned
costs on the basis of the changed work and copies the updated residual costs on an accrual basis to the forecast
version. The updated total costs correspond to the updated residual costs.

The planned start and nish dates of the activity are earlier than the cutoff date in the cost forecast.

All of the planned work for the activity is valued in the cutoff date period.

The activity is partially con rmed (actual costs).

In the activity con rmation, you enter the forecast work or the system determines the remaining residual work (forecast
work) based on the degree of completion. If no forecast work exists, the system calculates the residual work from the
difference between the planned work and the actual work. You can also enter the forecast duration or forecast nish in
the con rmation.

In accordance with the distribution key, the forecast work is distributed and valued in the activity to the period between
the actual date in the con rmation and the end date in the activity. The end date is determined as follows:

Forecast nish entered in the con rmation

Calculated forecast nish over the forecast duration

Planned nish

This is custom documentation. For more information, please visit the SAP Help Portal 38
 8/5/2022

The activity is completely con rmed or has a nal con rmation.

The system sets the updated residual costs for the activity to zero. No other costs are expected for the activity. The
updated total costs equal the actual costs for the activity.

Residual Costs of Externally Processed Activities

Prerequisites
The activity is assigned to a WBS element.

The activity is identi ed in the control key as costing-relevant.

Features
The updated residual costs are determined on the basis of the planned work in the externally processed activity.

The system determines the updated residual costs as follows:

There is no purchase requisition or purchase order for the activity

The planned start date of the activity is later than the key date.

The system recalculates the planned costs in the activity and copies them as the updated residual costs to the
forecast version according to the activity dates or the invoice plan. Up to now, no actual or commitment values
have been updated in the activity. The updated total costs correspond to the updated residual costs.

The planned start date of the activity is earlier than the cutoff date.

The system recalculates the planned costs in the activity on the cutoff date and records the updated residual
costs in the cutoff date period.

If the activity has an invoicing plan, costs are distributed as follows:

On the cutoff date, for dates that are earlier than the cutoff date

In line with the dates in the invoicing plan, for dates that are later than the cutoff date

This is custom documentation. For more information, please visit the SAP Help Portal 39
 8/5/2022
A purchase requisition or purchase order has been created for the activity

The System sets the updated residual costs to zero. The system calculates the updated total costs from the sum of the
actual and commitment values in the activity.

 Note
If there is a purchase requisition or purchase order for the activity, the system ignores the dates in the invoicing plan
when determining the residual costs.

Residual Costs of General Costs Activities

Prerequisites
The activity is assigned to a WBS element.

The activity is identi ed in the control key as costing-relevant.

Features
The updated residual costs are determined on the basis of planned costs in the general costs activity. The system updates the
residual costs on an accrual basis in the forecast version. If there are no actual or commitment values, the updated total costs
correspond to the updated residual costs.

The system determines the updated residual costs as follows:

No actual costs are posted for the activity

The planned costs correspond to the updated residual costs. The system updates the residual costs as follows:

The planned start date of the activity is later than the cutoff date in the cost forecast.

The system updates the residual costs according to the distribution key for the activity, or according to the dates
in the invoicing plan, starting from the activity start date.

The planned start date of the activity is earlier than the cutoff date in the cost forecast.

According to the distribution key for the activity, the system distributes the planned costs to the activity for the
period between the cutoff date in the cost forecast and the planned activity nish.

The system updates the planned costs in the activity at the cutoff date period.

If the activity has an invoicing plan, costs are distributed as follows:

On the cutoff date, for dates that are earlier than the cutoff date

In line with the dates in the invoicing plan, for dates that are later than the cutoff date

The planned start and nish dates of the activity are earlier than the cutoff date in the cost forecast.

Actual costs are posted for the activity

The system determines the updated residual costs from the difference between the planned and actual costs. The
system updates the residual costs on an accrual basis. According to the distribution key of the activity, the system
distributes the total value over the period between the cutoff date in the cost forecast and the activity’s nish date.

Actual costs are posted for the activity. These actual costs exceed the planned costs

This is custom documentation. For more information, please visit the SAP Help Portal 40
 8/5/2022
The system sets the updated residual costs to zero. The updated total costs are in line with the activity's actual costs.

Residual Costs of Material Components

Prerequisites
The material component is not part of the project stock. Currently, project stock does not support the determination of updated
residual costs for material components.

The costing-relevance indicator is set for material components in the detail screen.

Features
In the cost forecast, the updated residual costs are determined on the basis of the planned resources (material) for the
material component.

The system determines the updated residual costs as follows:

Material component: Item category N (non-stock material component)

For non-stock material components, the system updates the recalculated planned, committed, and actual values for the
activity. The system takes account of these values when determining the updated residual costs for the activity. If a
purchase requisition or a purchase order has been created for the component, only the committed and actual values
from the component are taken into account in the activity.

Stock material component

You have to differentiate between the following scenarios:

There has been no partial issue in the activity for the component

The system recalculates the planned costs in the activity and updates the determined value to the forecast
version as updated residual costs of the activity.

If the requirement date for the component is earlier than the cutoff date in the cost forecast, the component is
valued and the residual costs are recorded on the cutoff date period.

There has been a partial issue in the activity for the component

The system determines and valuates the open quantity for the component. The open quantity is calculated from
the difference between the planned quantity and the partial-withdrawal quantity. The system copies the
determined value as updated residual costs to the requirement date of the activity.

Executing the Cost Forecast

Prerequisites
Costing-relevant activities or material components have been planned for the project.

Procedure
1. In the Project Execution menu, choose Period-end closing Forecast/Progress to access the cost forecast.

You can run the cost forecast in individual or collective processing.

This is custom documentation. For more information, please visit the SAP Help Portal 41
 8/5/2022
2. Enter a project. If you are using collective processing, enter the selection variant.

3. In Version , enter the forecast version.

You can use forecast version 110 in the standard system.

4. Select the required processing options. You can choose from:

Background processing

Test run

Detailed list

Worklist

This eld is only available in collective processing.

5. You usually carry out the cost forecast at period-end closing. By default, the system sets the cutoff date to the rst day
of the current period. You can change the cutoff date of the cost forecast in Date . You use the cutoff date to de ne the
distribution of costs and the date to determine the open quantity for the material component.

6. Choose Execute .

Result
The system determines the updated residual costs and copies them on an accrual base to the forecast version together with
the actual costs and commitment values.

The system issues a two-level log.

Basic list

The basic list contains the information on the selection and errors that may have occurred in the cost forecast.

Detailed list

The detailed list shows the values of the forecast version for each object based oncost elements. You can branch from
the log to the Project Information System to carry out other evaluations.

This is custom documentation. For more information, please visit the SAP Help Portal 42