447_ERP606_BPD_EN_CN

EHP6 for SAP ERP 6.0

October 2013

English

Contract Billing for Engineering and Construction (447)

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Business Process Documentation

SAP Best Practices Contract Billing for Engineering and Construction (447): BPD

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Copyright

2013 SAP AG or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include Field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the

ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.


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Contents

1 Purpose ................................................................................................................................... 6

1.1 Lump-Sum Contract with Milestone Billing ...................................................................... 6

1.2 Bill of Services Unit Price Contract with Service Entry Sheet ....................................... 6

1.3 Cost Plus and Time and Material Billing (RRB) ............................................................... 7

2 Prerequisites............................................................................................................................ 7

2.1 Master Data and Organizational Data .............................................................................. 7

2.2 Business Conditions ......................................................................................................... 8

2.3 Preliminary Steps ............................................................................................................. 8

2.3.1 Creating User Settings for Requirement Planning .................................................... 8

2.4 Roles ................................................................................................................................ 9

2.4.1 Defining Queries for Personal Object Worklist (POWL) ......................................... 11

3 Process Overview Table ....................................................................................................... 11

3.1 Lump-Sum Contract with Milestone Billing .................................................................... 11

3.2 Bill of Services Unit Price Contract with Service Entry Sheet ..................................... 12

3.3 Cost Plus and Time and Material Billing (RRB) ............................................................. 13

4 Process Steps Lump-Sum Contract with Milestone Billing ................................................ 14

4.1 Creating Inquiry .............................................................................................................. 14

4.2 Creating Quotation ......................................................................................................... 16

4.3 Creating Project ............................................................................................................. 18

4.3.1 Assigning Milestone to the Project .......................................................................... 19

4.3.2 Creating Document for Designed Drawings ........................................................... 21

4.4 Creating Sales Order ..................................................................................................... 23

4.4.1 Assigning Billing Plan to Sales Order ..................................................................... 24

4.5 Creating Down Payment Request and Down Payment ................................................. 25

4.5.1 Posting of the Down Payment ................................................................................ 26

4.6 Confirming Milestone ..................................................................................................... 27

4.7 Creating Billing Document .............................................................................................. 28

5 Process Steps Bill of Services Unit Price Contract with Service Entry Sheet ................. 29

5.1 Creating Inquiry .............................................................................................................. 29

5.2 Creating Quotation ......................................................................................................... 30

5.3 Creating Project ............................................................................................................. 32

5.4 Creating Sales Order ..................................................................................................... 34

5.5 Creating Service Entry Sheet ......................................................................................... 35

5.6 Creating Debit Memo ..................................................................................................... 36

5.6.1 Posting Incoming Payment from Customer Manually ............................................. 36

5.7 Creating Service Entry Sheet for Subsequent Billing .................................................... 37

5.8 Creating Debit Memo ..................................................................................................... 38


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6 Process Steps Cost Plus or Time and Material Billing (RRB) ............................................ 39

6.1 Creating a Project Structure (Ref: 439) .......................................................................... 39

6.2 Posting Procurement Costs to Project ........................................................................... 40

6.3 Detail the Project Structure (Ref: 441) ........................................................................... 41

6.4 Creating Document for Designed Drawings ................................................................... 42

6.5 Creating Order ............................................................................................................... 43

6.6 Approving and Releasing the Project (Ref: 441)............................................................ 44

6.7 Confirming Activity (Ref: 441) ........................................................................................ 45

6.8 Confirming Labor through CATS (Ref: Time Entry BPD) ............................................... 46

6.9 CATS Approval (Ref: Time Entry BPD) ......................................................................... 47

6.10 Time Sheet: Transferring to Target Components ....................................................... 48

6.11 Time and Material Billing ............................................................................................ 50

6.11.1 Creating Billing Request ......................................................................................... 50

6.11.2 Creating Billing Document ...................................................................................... 51

7 Appendix ................................................................................................................................ 52

7.1 Reversal of Process Steps ............................................................................................. 52

7.2 Used Forms .................................................................................................................... 53


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Contract Billing for Engineering and Construction

1 Purpose

1.1 Lump-Sum Contract with Milestone Billing

This scenario deals with selling services where owner and general contractor have agreed on a lump sum for the execution of the contract on a billing plan with dates depending on the progress of the work.

A lump sum contract is more and more used in the construction industry. Owner and general contractor agree on a lump sum for the execution of the contract. Aside from the lump sum, the owner and general contractor agree on a billing plan with dates depending on the progress of the work. For example, this means that 10% of the lump sum is paid when the contract is signed, 40% when the building shell is finished, and 40% when the interior fittings have finally been performed. The remaining 10% is paid once the entire work is done, that means after the acceptance procedure.

A Bill of Services is a quantitative and qualitative description of the services to be performed for example, to build a new building. In case of lump sum contracts, it is used only for internal purposes, as a tool to do the internal cost estimation and to measure the progress of the construction site. But nevertheless it is also the communication structure for all business partners involved in the process (general contractor, subcontractors, and so on). But in contrast to the unit price contract the settlement is done using a billing plan and not with the service entry sheets. Service entry sheets are the internal measure to valuate the constructions site and to determine its progress.

The scenario focuses on the following activities:

Creating a Customer Inquiry (optional)

Creating a Customer Quotation (optional)

Creating a Project from a predefined template and assign milestone

Creating a Customer Order with Billing Plan

Confirmation of Milestones

Creating Billing Document and Accounting Document

Post Payment

Final Invoice and Technical closure of Project

1.2 Bill of Services Unit Price Contract with Service Entry Sheet

This scenario deals with selling services to a customer where owner and the general contractor agree on a price for one unit of the service to be performed. A unit price contract can be used in the construction industry. A Bill of Services is a quantitative and qualitative description of the services to be performed for example, to build a new building. It is the communication structure for all business partners involved in the process (owner, general contractor, subcontractors, and so on) and used, for example, to measure the progress and bill the services performed so far.

Unit price means that the owner and the general contractor agree on a price for one unit of the service to be performed. The price is determined by means of cost estimation and the sales pricing, a subcontractor quotation or entered manually. To measure the progress for the services to be performed a service entry sheet is created. A service entry sheet is a quantitative confirmation for the services performed so far. The billing (down payment request or invoice) is based on the service entry sheet (quantities performed) and the bill of services (prices).


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Creating a Customer Inquiry (optional)

Creating a Customer Quotation (optional)

Creating a Customer Order

Create a Service Entry Sheet

Create Debit Memo

Posting Incoming Payment from Customer Manually

Create Debit Memo and Accounting Document

Post Payment

Final Invoice and Technical closure of Project

1.3 Cost Plus and Time and Material Billing (RRB)

This scenario deals with resource-related billing for customer-specific services. You invoice your customers for specific materials, internal services, and costs incurred here. The billing request is used as the basis for creating the billing document. Prices for customer-specific services are not always defined in a contract as fixed prices, or determined using standard pricing. This is for instance the case if no empirical values are available for specific services, and services cannot therefore be calculated accurately before the contract conclusion.


Creating and detail a project structure

Create order

Approve and release the project

Confirm activity and labor

Approve CATS

Transfer data to controlling

Create billing request

Creating billing document and accounting document

2 Prerequisites

2.1 Master Data and Organizational Data

Default Values

Essential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits its operational focus, such as master data for materials, vendors, and customers.

The business process is enabled with this organization-specific master data, examples are provided in the next section.

Operational Focus

SAP Best Practices delivers standard values for more than one operational focus area. This means that you may find more than one master data table below. Use the master data that matches the operational focus of your company.


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Additional Default Values

You can test the scenario with other SAP Best Practices default values that have the same characteristics.

Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master Data

You can also use customized values for any material or organizational data for which you have created master data. For more information on how to create master data, see the Master Data Procedures documentation.

Use the following master data in the process steps described in this document:

Org. Structure Value Comment

Controlling area Controlling area (1000) Controlling Area 1000

Company Code Company Code (1000) Company Code 1000

Plant Plant 1 (1000) Production Plant 1000

Standard WBS E00000 ECO: Tank Extension EPC project

Standard Network E0070000 Std Network for EPC Project -A

Sales organization Sales Org. 1 (1000) Sales Org. 1000

Distribution channel 10 Direct Sales

Division 10 Product Division 01

Purchase organization Purchasing Org 1 (1000) Purchasing Org. 1000

Storage Loc 1050 Standard Warehouse

Storage Loc 1030 Production

Storage Loc 1040 Finished Products

2.2 Business Conditions

The business process described in this Business Process Documentation is part of a bigger chain of integrated business processes or scenarios. As a result, you must have completed the following processes and fulfilled the following business conditions before you can start any activities in this scenario:

Business Condition Scenario

You have completed all steps described in the Business Process Documentation Prerequisite Process Steps (154). These process steps include the step Roll MM Period to Current Period. Perform this activity if the MM period in the system is not set to the current period. This activity is performed once a month.

Prerequisite Process Steps (154)

2.3 Preliminary Steps

2.3.1 Creating User Settings for Requirement Planning

Use

In this step, you set up user settings that are necessary for requirement planning.

Procedure


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1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Production MRP Evaluation Stock / Requirement List

Transaction code MD04

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Production Planner

(SAP_NBPR_PRODPLANNER_S)

Business role menu Production Evaluations Reports Display Stock/ Requirement Situations

2. On the Stock/Requirements List: Initial Screen, make the following entries:

Field name Description User action and values Comment

Material number ECO_BOS

Plant Plant 1 (1000)

3. Choose Enter.

4. Confirm the information message.

5. Navigate to Environment Navigation Profile Assign.

6. Select the General Settings tab.

7. In the Navigation Profile field, choose the navigation design SAPPPMRP00 MRP Controller.

8. Choose Save.


10. Go back to the SAP Access screen.

Result

You have created the user settings necessary for the requirements planning.

2.4 Roles

Use

The following roles must have already been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites

The Business roles have been assigned to the user who is testing this scenario.

Business role Technical Name Process Step

Sales SAP_NBPR_SALESPERSON_M Sales Manager

SAP_NBPR_SALESPERSON_S Sales Administrator

SAP_NBPR_SERVAGENT_S Service Agent


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SAP_NBPR_SERVEMPLOYEE_S Service Employee

Billing Administrator

SAP_NBPR_BILLING_S Creating Down Payment Request and Down Payment

Creating Billing Document

Purchaser SAP_NBPR_PURCHASER_S Convert Requisition to PO

Change PO for Equipment

Down Payment monitoring for PO

Create PO for Materials w/o Material master record

Create Blanket PO

Evaluating vendors

Compare vendor evaluation

Print vendor evaluation sheet

Project Manager

SAP_NBPR_PROJECTMANAGER_M Create Project

Create Reservation for Material, Equipment and Subcontracted services

Display Project oriented PR

Progress tracking PO selection

Display Project oriented delivery commitments

Display project related procurement cost

Project Manager ECO

SAP_NBPR_PROJECTMANAGER_ECO_M Create Inquiry;

Deferred Tax Transfer

Account Receivable Accountant

SAP_NBPR_AR_CLERK_S Posting of the Down Payment

Account Payable Accountant

SAP_NBPR_AP_CLERK_S Enter Invoice with retention payment terms

Enter Invoice for Blanket PO

Execute Payment run

Warehouse Clerk

SAP_NBPR_WAREHOUSECLERK_S GR for PO with materials and equipment

Record hours via service entry sheet

Time Administrator

SAP_NBPR_TMADMIN_HCM_M Enter Time Sheet

Time Processor (HCM)

SAP_NBPR_TMPROCESSOR_HCM_S Time Sheet: Transferring to Target Components

Production Planner

SAP_NBPR_PRODPLANNER_S Creating User Settings




Engineering Specialist

SAP_NBPR_ENGINEER_S Creating Document for Designed Drawings

2.4.1 Defining Queries for Personal Object Worklist (POWL)

The following queries must be defined to test this scenario in the SAP NetWeaver Business Client (NWBC). You only need these queries if you are using the NWBC interface. You do not need these queries if you are using the standard SAP GUI.

The queries are necessary to access role specific worklists in the SAP NetWeaver Business Client (NWBC).

For more information about the creation of queries, see the section Creation of Queries in Personal Object Worklists (POWLs) in the Quick Guide to Implementing the SAP Best Practices Baseline Package (CN) document.

Business role

Application Object Type

Variant Name

Variant Selections

Selection Criteria

Query Name

Sales Administrator

Sales- Customer Cockpit

Open Quotation

For example, Open Quotation

Sales Administrator

Sales- Customer Cockpit

Sales Document Search

For example: Sales Document Search

3 Process Overview Table

3.1 Lump-Sum Contract with Milestone Billing

Process step External process reference

Business condition

Business role (not technical role for BP)

Transaction code

Expected results

Create Customer Inquiry

Sales Administrator

VA11

Create Customer Quotation

Sales Administrator

VA21

Create Project from template

Project Manager

CJ20N

Assign Milestone to Project

Project Manager

CJ20N

Create document


CV01N Create a SAP Document for drawings and assign drawings to the




Business condition


Transaction code

Expected results

project

Create Sales Order

Sales Administrator

VA01

Assign Billing Plan to Sales Order

Sales Administrator

VA02

Create Down Payment Request and Down Payment

Sales Administrator

VF01

Post Down Payment

Sales Administrator

F-29

Confirm Milestones

Project Manager

CNS41

CN25

Create Billing Document

Sales Administrator

VF01

3.2 Bill of Services Unit Price Contract with Service Entry Sheet


Business condition


Transaction code

Expected results

Create Customer Inquiry

Sales Administrator

VA11 Inquiry created.

Create Customer Quotation

Sales Administrator

VA21 Quotation created.

Create Customer Order

Sales Administrator

VA01 Customer order created.

Create Service Entry Sheet

Sales Administrator

VA01 Service Entry Sheet created.

Create Debit Memo

Sales Administrator

VF01 Debit

Memo created.

Posting Incoming Payment from Customer Manually

Sales Administrator

F-28 Down Payment posted.

Create Service Entry Sheet for Subsequent

Sales Administrator

VA01 Service entry sheet created.




Business condition


Transaction code

Expected results

Billing

Create Debit Memo and Accounting document

Sales Administrator

VF01 Debit Memo created.

3.3 Cost Plus and Time and Material Billing (RRB)

Process step

External process reference

Business condition


Transaction code Expected results

Create the Project Structure

Project Manager

CJ20N

Detail the Project Structure

Project Manager

CJ20N

Create document


CV01N Create a SAP Document for drawings and assign drawings to the project

Create Customer Order

Sales Administrator

VA01

Approve and Release the Project

Project Manager

CJ20N

Confirm Activity

Project Manager

CJ20N

Confirm Labor through CATS

Time Administrator

CAT2

CATS Approval

Time Administrator

CATS_APPR_LITE

Transfer Data to Controlling

Time Administrator

CAT7

Create Billing request

Service Employee

DP90

Change Debit Memo Request

Sales Administrator

VA02



Process step

External process reference

Business condition


Transaction code Expected results

Create Billing document

Sales Administrator

VF01

4 Process Steps Lump-Sum Contract with Milestone Billing

If you want to continue this process after BPD 756 tender processing, you can use the tender project as your project; you can skip inquiry and quotation. Change the tender project to continue from 4.3.

4.1 Creating Inquiry

Use

The process starts with an inquiry from a prospect. If you want to bid, an inquiry is created containing the most important data concerning the customer and first documents but also a Bill of Services (BOS). The customer provides the BOS and later on - the contractor has to bid in the format of the BOS.

For lump sum contracts, the prospect describes the building project without much detail. For example, the prospect may not provide a bill of services. In these cases, the general contractor creates the Bill of Services to:

Perform the cost estimation

Manage the communication with subcontractors

Measure

Valuate the progress of the construction site.

In this case, an inquiry is not created.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Inquiry Create

Transaction code VA11

2. On the Create Inquiry screen, make the following entries:


Inquiry Type YEI1

Sales organization 1000

Distribution channel 10

Division 10

Choose Enter.



3. On the ECO Inquiry-MS+CPRR: New screen, make the following entries:


Sold-to-party E-YE0060

PO Number Enter any purchase order number

Material ECO_BOS

Order Quantity 1

Valid to Todays Date + 1 Month

4. Choose Enter. Confirm the information message.

5. Select the item and choose Item Condition at the bottom of the screen.

6. On the Create ECO Inquiry-MS+CPRR: Item Data screen, make the following entries:


Condition Type ZPR1

Amount 1,000,000.00 CNY

7. Choose menu path Goto Header.

8. On the Create ECO Inquiry-MS+CPRR: Header Data screen, make the following entries:


Pricing Date Todays Date

9. Save your entries. Make a note of the inquiry number : _________

10. Choose Back to leave the screen and return to the main screen of the inquiry.


Business role Sales Administrator

(SAP_NBPR_SALESPERSON_S)

Business role menu Sales Inquiry Create Inquiry

1. On the Create Inquiry screen, make the following entries:


Sold to Party E-YE0060

Inquiry Type YEI1



Division 10

2. Choose Continue.

3. On the Select Ship-To Party screen, choose the Ship-to party same as Sold-to party.

4. On the ECO Inquiry-MS+CPRR: New screen, make the following entries:


PO Number Enter any purchase order number

Material ECO_BOS



Order Quantity 1


5. Select your line item and choose the Item Details tab.

6. On the Item details screen, choose the Pricing tab.

7. Make the following entries:


Condition Type ZPR1

Condition rate 1,000,000.00 CNY

8. Choose Incompletion Log tab and click Header, choose Pricing date and make the following entries:


Pricing Date Todays Date

9. Choose Save Document. Make a note of the inquiry number: _________

Result

An inquiry is created.

4.2 Creating Quotation

Use

The quotation is created if you want to bid for the contract. Based on the quotation, cost estimation is carried out and prices are determined. The quotation, once finished, is sent to the prospect. The prospect in turn may return the quotation to you in case of questions or additional negotiations.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Quotation Create




Quotation Type YEQ1



Division 10

3. Choose Create with reference.

4. To copy information from the inquiry, enter the inquiry number created in the previous step and choose Copy.




6. Choose the Sales tab.



Valid from Todays date

Valid to Todays Date + 60 days

8. Select the quotation item and choose Item conditions.



Condition ZPR1

Amount

for example, 1,000,000.00 CNY

10. Save the quotation and make a note of the quotation number: __________

The quotation is sent to the customer now. For a unit price contract, the quotation is printed with the Bill of Services and the prices of the service lines.




Business role menu Sales Customer Cockpit

1. On the Customer Cockpit screen, enter the following data:


Customer Number E-YE0060

2. Choose Display Customer.

3. On the Customer Cockpit: Yangzi Petrochemical Company (E-YE0060) screen, choose active query Sales Document Search tab and maintain the quick criteria if required.

4. Select your Inquiry line and choose Create with Reference.

5. On the Create Sales Document screen, make the following entries:


Sold-to party E-YE0060 Defaults from the Inquiry selected

Sales Document Type

YEQ1 ECO Quote MS

Reference Document

Created in previous step, should default on this screen

6. Choose Continue.

7. On the Select Ship-To Party screen, choose the Ship-to party same as Sold-to party.

8. On the ECO Quote MS: New screen, choose the Main view tab.


Field name Description Data Comment

Valid from Todays date



Valid to Todays Date + 60 days

10. Select your line item and choose the Item Details tab.

11. On the Item details screen, choose the Pricing tab.


Field name Description User Value and Data Comment

Condition type ZPR1

Condition rate For example: 1,000,000.00 CNY

13. Choose Save Document.

Result

A quotation is created.

4.3 Creating Project

Use

You have received the contract. The external view to the customer is represented by a sales order. Internally the controlling and management is done by means of a project. If a project has been created already as described in Scenarios 439 and 441, then create your own project by copying an existing project as described below.

The WBS element EXXXXX is the billing WBS element. In addition to WBS elements, the project contains a network with milestones. The Sales document date checkbox is set with a percentage for the billing plan. This flag Sales document date is the precondition to link milestones to billing plan items in a sales document. The percentage value is taken as the default for the billing plan item.

Procedure



SAP ECC menu Logistics Project Systems Project Project Builder

Transaction code CJ20N


Business role Project Manager

(SAP_NBPR_PROJECTMANAGER_M)

Business role menu Project Management Project Planning Project Project Builder

2. On the Project Builder screen, from the menu, choose (NWBC: More) Project New Copy project.

3. In the Create Project dialog box, make the following entries:


Project Def. New Project definition

Enter a project definition number that has not yet been used

For example, EXXXXX




Description Description Enter a description of the project you are creating

For Example: Construction Project for Lump Sum

Project def. Source Project Definition

Enter the project definition number that was created in scenarios 439 and 441

For example, EXXXXX

Start

Project Profile YECO001 ECO Engineering Procurement and Construc

4. Choose Enter

5. On the Easy cost Planning pop-up screen, choose Yes.

6. On the Number Assignment pop-up screen, enter the network number to correspond to the project def. number you are creating. If your Project Def. number is E00010 then enter E00010.

7. Ignore the warning messages displayed in the Project Builder Log screen by choosing Back.

8. On the left side of the screen under Project Structure: Description, choose the top level WBS Element Tank Extension project EXXXXX.

9. On the right side in the Identification and view selection screen, the WBS element is displayed.

10. Choose the Basic data tab.

11. In the Operative Indicators section, make the following entries:


Acct asst element Select

Billing element Select

12. To release your project, select the project definition of your project (the first row with the description of the project). In the Basic Data tab, choose System/User Status on the right of System Status and mark the user status APPD.

13. Choose Back.

14. From the menu bar, choose (NWBC: More) Edit Status Release. The system displays the message Status was set.

15. Save your entries.

Result

You have created a project by referencing an existing project EXXXXX

4.3.1 Assigning Milestone to the Project

Use

In this activity, you assign milestones to the project.

Procedure











2. On the Project Builder screen, choose Open.

3. In the Open Project dialog box, enter the Project Definition EXXXXX created in the previous step and choose Enter.

4. On the Project Builder: Project EXXXXX screen, choose the project definition on the left hand side of the screen under Project Structure: Description and choose Expand All.

5. Under WBS element Site Preparation, choose Network activity Mobilize/ Demobilize.

6. On the right side of the screen, choose Milestone Overview.

7. On the Milestone screen, make the following entries and choose Enter:


Usage 00009

Description Down Payment

8. The Milestone is assigned to the Network Activity on the left side of the screen. Choose Milestone Down Payment.

9. On the right side, choose the Basic data tab.



Usage: Sales Document Dates Select

Billing Plan: Invoice percentage 15

11. On the left side of the Project Structure: Description screen, under WBS element Earthwork, choose Network activity Erosion Control.

12. Network Activity opens. Choose Milestone Overview.



Usage 00003

Description Complete Excavation

14. The Milestone is assigned to the Network Activity on the left side of the screen. Choose the Milestone Complete Excavation on the left side of the screen.









17. On the left side of the Project Structure: Description screen, under WBS element Structural, choose Network activity Metal Grating.

18. On the right side of the screen, in Network Activity, choose Milestone Overview.



Usage 00005

Description Complete Structure

20. The Milestone is assigned to the Network Activity on the left side of the screen.

21. Choose the Milestone Complete Structure on the left side of the screen.






24. On the left side of the Project Structure: Description screen, under WBS element Commissioning and Handover, choose Network activity Commissioning&Handover.

25. On the right side of the screen, in Network Activity, choose Milestone Overview.



Usage 00008

Description Complete Project Closeout

27. The Milestone is assigned to the Network Activity on the left side of the screen.

28. Choose the Milestone Complete Project Closeout on the left side of the screen.







4.3.2 Creating Document for Designed Drawings

Use

You now create a system document to store link with the designed drawings.



Prerequisites

The designed drawing has been input in C:\SAP BP\.

You can find the designed drawing in the SAP Best Practices Documentation Package in the folder ..\ SAP_BP\Misc\ECO\China\ and copy it to C:\SAP BP\.

Procedure



SAP ECC menu Logistics Project System Documents Document

Management System Document Management System

Document Create

Transaction code CV01N


Business role Engineering Specialist

(SAP_NBPR_ENGINEER_S)

Business role menu Engineering Document Management Create Document

2. On the Create Document: Initial Screen, enter the document type KPR and the name YE_ECO_DRW_XX.

3. Choose Enter.

4. On the Create Document: Basic Data Engin/ Des.Drawing (KPR) screen, enter the following description: Drawing for Construction project XXX.

5. Choose Create Original.

6. Choose Continue (Enter) in the dialog box.

7. In the Create Document: Basic Data Engin/Des. Drawing (KPR) dialog box, enter the following data:


Applic. LIM

Description Drawing for Construction project XXX

Data Carrier PC

Original C:\SAP BP\DRAWING1.JPG Select the file from the C:\SAP BP\

8. Choose Continue (Enter).

9. Choose Check In Orig.

10. In the Check in Document: KPro dialog box, choose DMS_C1_ST and confirm your selection by choosing Enter.

11. Choose Object Links tab page, choose WBS Element, enter EXXXXX on WBS element field.

12. Choose Save (Shift+S).



13. Choose Back (F3) to the SAP Easy Access screen (SAP GUI)

Or

Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP Home (SAP NetWeaver Business Client).

Result

A document has been created in the system.

4.4 Creating Sales Order

Use

In this activity, you create the sales order.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Orders Create


2. Enter the following data


Order Type YEC1



Division 10


4. In the dialog box, enter the quotation number created in previous step and choose Copy.


6. Enter the purchase order number and the purchase order date in the main screen of the sales order.

7. The sales order item is linked to the project (billing WBS element) by the account assignment of the sales order item. Hence, the billing WBS element is debited with all revenues and down payments created due to the settlement (billing) of the sales order. Select the sales order item and choose Item details (icon with the reading-glass or follow

menu path Go to Item Account Assignment). Enter the billing WBS element EXXXXX in the WBS Element field.

8. Save the order and note the order number: __________




Business role menu Sales Customer Cockpit Customer Cockpit

1. On the Customer Cockpit screen, enter the following data and choose Display Customer




Customer Number E-YE0060

2. In the Customer Cockpit dialog box, choose active query Open Quotation.

3. Select your Quotation number and choose Create with Reference.

4. On the Create Sales Document screen, make the following entries:


Sold-to party E-YE0060 Defaults from the Inquiry selected

Sales Document Type

YEC1 ECO Order MS

Reference Document

Created in previous step, should default on this screen

5. Choose the Continue button.

6. On the Choose Ship-To Party screen, choose the Ship-to party same as Sold-to party.

7. On the ECO Order MS: New screen, choose the Main View tab.

8. Enter the purchase order number and the purchase order date.

The sales order item is linked to the project (billing WBS element) by the account assignment of the sales order item. Hence, the billing WBS element is debited with all revenues and down payments created due to the settlement (billing) of the sales order.

9. Select the sales order item and choose the Item details tab.

10. On the Item details screen, choose the Item details tab.

11. Under field Assignment, in the WBS Element field, enter the billing WBS element EXXXXX.

12. Choose Save Document. Note down the sales order number created: _________

Result

A sales order is created.

4.4.1 Assigning Billing Plan to Sales Order

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Orders Change





Business role menu Sales Sales Order Sales Order Processing Change Sales



Order

2. In the Order field, enter the sales order number from the previous step then choose Enter.

3. On the Change ECO Order MS XXX: Overview screen, choose (NWBC: More) Goto

Item Billing Plan.

4. If HeadBillPlan checkbox has been chosen, remove the tick and choose Enter.(NWBC only)

5. Choose Milestones.(NWBC only)

6. In the Selection Criteria dialog box, in the Network number field, enter EXXXXX and choose Enter.

7. In the Milestone selection dialog box, choose all four milestones created and choose Copy.

8. The system generates the Billing Plan and adjusts the data based on the Milestone information.

9. Make the following changes for the item (item for Down Payment):

Field name New Values

BR(Billing rule) 4

Billing Type YEZ1

Block Delete 02 and make it empty

10. Choose Back and save your entries.

4.5 Creating Down Payment Request and Down Payment

Use

A construction project can have a duration of several months or even years. To fund the beginning of the construction project customer and general contractor agreed on a down payment at the beginning of the project work. The down payment request is generated based on percentage in the first billing plan item.

Procedure



SAP ECC menu Logistics Sales and Distribution Billing Billing Document Create

Transaction code VF01


Business role Billing Administrator

(SAP_NBPR_BILLING_S)

Business role menu Sales Billing Create Billing Document

2. On the Create Billing Document screen, make the following entries:


Document Sales order number



3. Choose Enter

4. The system processes the data from the sales order and creates a down payment request. The down payment request is sent to the customer.

5. Mark the item of the down payment request and press button Item pricing conditions. Make a note of the net amount value: __________

6. Save the down payment request and note the document number

7. A down payment request or a down payment does not represent revenue. Strictly spoken the money still belongs to the customer. However, the value of the down payment request or the down payment later on is visible in the project reporting under the condition that the PS cash management is activated.

4.5.1 Posting of the Down Payment

Use

In this activity, you post the down payment.

Procedure



SAP ECC menu Accounting Accounts Receivable Document Entry Down

payment Down payment

Transaction code F-29


Business role Accounts Receivable

(SAP_NBPR_AR_CLERK_S)

Business role menu Accounts Receivable Posting Payment Post Customer Down Payment

2. You have received the down payment from the customer. To enter the down payment in the system, on the Post Customer Down Payment: Header screen, make the following entries:


Document date Todays date

Posting Date Todays date

Type DZ

Company Code 1000

Currency CNY

Account E-YE0060

Special G/L ind A

Bank account 10020109

Amount

xxxxxx(the amount from the

down payment request)

Value Date Todays date

3. Choose Requests.



4. Select the row with your down payment request number and choose Create down payments.

5. Choose Post (Ctrl+ S). Message Correct the marked line items appears at the bottom.

6. Double-click the marked line (with bank account), on the Post Customer Down Payment Correct G/L account item screen, choose More data. On the screen that follows, make the following entry, and then choose Back.


Reason code 062

7. Double-click the line (with customer E-YE0060), on the Post Customer Down Payment Correct Customer item screen, make the following enrties:


Tax Amount Clear the amount

Tax code X0

Calculate tax X

8. Choose Post.

9. The system displays the message Document XXXXXXXXXX was posted in company code

1000. Check the posted document using (NWBC: More)Document Display.


Or


Result

A down payment request is created and a down payment is posted.

FI document:

Debited Accounts Credited Accounts

10020109 BOC-Cust. Incoming Paymnt 22030101 Advances from customers

4.6 Confirming Milestone

Use

The first part of the construction project is finished. We can create a first partial invoice. Finishing a part of the construction project is documented by confirming a network activity with an attached billing milestone. Due to the confirmation of the network activity, the milestone is reached and the block in the assigned billing plan item is removed.

Procedure



SAP ECC menu Logistics Project System Progress Confirmation

Individual Confirmation Enter

Transaction code CN25






Business role menu Project Management Project Execution Time Management Confirm Completion in Networks

2. On the Enter Network Confirmation: Initial Screen, enter the network number EXXXXX and choose Enter.

3. Select network activity 0080 Erosion Control and choose Actual Data.

4. On the Enter Network Confirmation: Actual Data screen, make the following entries


Processing % 100%

Final Conf Select

Confirm: Actual Start Date Todays date

Confirm: Actual Finish Date Todays date

5. Choose Save.

6. In the Enter actual date dialog box, choose Yes.

7. In the Enter Actual Date dialog box, choose Back.

8. Use transaction code VA02 and enter your sales order number

9. From the menu, choose Goto Item Billing plan.

10. The second billing plan item (item for Complete Excavation) is now unlocked.

11. Choose Back to return to the SAP Easy access screen.

Result

The milestone is confirmed and the billing block is released.

4.7 Creating Billing Document

Use

Due to the confirmation of the network activity, the milestone is reached and the block in the assigned billing plan item is removed. The item can be billed.

Procedure



SAP ECC menu Logistics Sales and Distribution Billing Billing Document

Create








2. Enter the number of your sales order and choose Enter.

3. On the Debit Memo (Y2) Create: Overview of Billing Items screen, review the billing document. Save the billing document and note the document number.

4. Revenue is posted to the billing WBS element. Review the accounting document in VF03 Display Billing Document. Enter the number of the billing document and choose the Accounting button.

5. A dialog box displays all financial documents that have been created. Double-click Cost accounting doc and review the posting document

You can also partially clear a down payment against the invoice. The clearing of the down payment is distributed over several invoices.

Result

The billing document is posted.

FI document:


11220101 AR-Domestic 60010303 Revenue Expenses (Service Provider)

22210105 Output tax

22030101 Advances from customers 11220101 AR-Domestic

5 Process Steps Bill of Services Unit Price Contract with Service Entry Sheet

5.1 Creating Inquiry

Use

The process starts with an inquiry from a prospect. For bids, an inquiry is created containing the most important data concerning the customer and first documents but also a Bill of Services (BOS). The BOS is provided by the customer and. Later, the contractor bids in the format of the BOS.

Prerequisites

The Business Function DIMP_SDUD Discrete Industries of the Business Function Set Discrete Industries is active.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Inquiry Create



Business role Project Manager ECO



(SAP_NBPR_PROJECTMANAGER_ECO_M)

Business role menu Project Management Sales Create Inquiry



Inquiry Type YEI2



Division 10

3. Choose Enter.

4. On the Create ECO Inquiry-UnitPric: Overview screen, make the following entries:


Sold-to-party E-YE0060

Purchase Order Enter any purchase order number


Material ECO_BOS

Order Quantity 1

5. Choose Enter. Confirm the information message.

6. Select item number 10 and choose menu path (NWBC: More ) Goto Item More

functions Performances.

7. The screen area for BOS is displayed. To copy a template BOS, choose Service sel. (Service Selection (Shift+F1)). In the dialog box, make the following entries and set the radio button in front of the line Model Service Specs:


Model Service Specs C0000001EN

8. Choose Enter.

9. Select the outline level Structural in the template BOS.

10. Choose Select all to select lines 10 40 then choose Adopt Services.

11. For the line 50 Enter Seal walls, ceiling shaft in the short text field and in the Quantity, enter 800, and M3 in UoM.

12. Choose Back to leave the screen with the BOS and return to the main screen of the inquiry.

13. Save your entries. Make a note of the inquiry number: _________

Result

An inquiry with a BOS is created. This inquiry is the first document in the process flow.

5.2 Creating Quotation

Use



The quotation is created if you want to bid for the contract. Based on the quotation, a cost estimation is carried out and prices are determined. Once the quotation is finished, it is sent to the prospect. The prospect in turn may return the quotation to you in case of questions or additional negotiations.

Prerequisites


An inquiry is created.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Quotation Create



Business role Project Manager ECO

(SAP_NBPR_PROJECTMANAGER_ECO_M)

Business role menu Project Management Sales Create Quotation

2. Enter the following data:


Quotation Type YEQ2



Division 10


4. To copy the BOS and all other information from the inquiry, enter the inquiry number created in the previous step and choose Copy.


6. Select item number 10 and choose menu path (NWBC: More) Goto Item More


Prices and cost estimation: You can determine the price for a given service line in a few different ways:

Enter the price manually. This is only possible if the price is known (for example, simple services).

Cost estimation. This is useful for more complex services (including labor, material, equipment, and subcontractor work)

Easy Cost Planning. This is available for the BOS.

The different cost elements determined with the cost estimation are transferred to the SD pricing procedure where additional surcharges or discounts can be



calculated for different cost components (for example, a 10% surcharge is added for labor work, 0% for equipment and a discount of 5% for materials)

7. Choose line 10 Structural Heavy and enter a price of 200 CNY for the first service line. Repeat the same price for the lines 20 to 50.

8. Choose Back.



Valid to Todays date + one month

10. Save the quotation and note the quotation number: __________

11. The quotation can be sent to the customer. If you want to print the quotation with the BOS and the prices, run transaction VA22. Enter the quotation number. Go to the menu Sales

document Issue output to. To view the document, use the print preview. The system is set up (it prints a header page with the prospect address, the main information, and the BOS with the prices for the service lines).

Result

A quotation is created.

5.3 Creating Project

Use

You have received the contract. The external view to the customer is represented by a sales order. Internally the controlling and management is done by means of a project (PS = project System). If a project has been created already as described in Scenarios 439 and 441, then create your own project by copying an existing project as described below.

The WBS element EXXXXX is the billing WBS element. In addition to WBS elements, the project contains a network with milestones.

Procedure









2. On the Project Builder screen, from the menu, choose (NWBC: More ) Project New

Copy project.








For example, EXXXXX


For Example: Construction Project with BOS

Project Profile

Enter the project profile YECO001

Start

Template



For example, EXXXXX

4. Choose Enter

5. If there is Project Profile pop-up screen, choose Yes.

6. If there is Easy Cost Planning pop-up screen, choose No.

7. On the Number Assignment pop-up screen, enter the network number to correspond to the project def. number you are creating. If you Project Def. number is E00010 then enter E00010.









13. To release your project, select the project definition of your project (the first row with the description of the project). In the Basic Data tab, choose System/User Status on the right of System Status and mark the user status APPD.

14. Choose Back.

15. From the menu bar, choose (NWBC: More) Edit Status Release. The system displays the message Status was set.


Result

You have created a project by referencing an existing project EXXXXX



5.4 Creating Sales Order

Use

You have received the contract. The external view to the customer is represented by a sales order. Internally the controlling and management is done by means of a project (PS = Project System).

Prerequisites


Create a project with a billing WBS element.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Order Create





Business role menu Sales Sales Order Sales Order Processing Create Sales Order



Order Type YEC2



Division 10


4. In the dialog box, enter the quotation number and choose Copy.


6. Enter the purchase order number and the purchase order date (for example, today's date) in the main screen of the sales order.

7. The sales order item is linked to the project (billing WBS element) by the account assignment of the sales order item. The billing WBS element is debited with all revenues and down payments created due to the settlement (billing) of the sales order.

8. Select the sales order item and choose the Display Item details button.

9. Choose the Account Assignment tab (or from the menu, choose (NWBC: More) Goto

Item Account Assignment).

10. In the WBS Element field, enter the billing WBS element (for example, EXXXXX created at 5.3).

11. Save the sales order and note the order number.



Result

A Sales Order is created.

5.5 Creating Service Entry Sheet

Use

The service entry sheet is a sales document like the quotation or the sales order. It documents the progress for a number of services (which quantity is performed so far) and is the base for the settlement of the services to the customer.

Prerequisites



Procedure



SAP ECC menu Logistics Sales and Distribution Sales Bill of Service

Service Entry Sheet Create






2. Enter the following data


Order Type YED2



Division 10

3. Choose Create with reference and enter the number of your sales order to create the link between the sales order and the service entry sheet.

4. Choose Copy.



6. Choose Service Sel. to select the relevant services where you have a quantity. Confirm the information displayed in the dialog box.

7. Select all the line items except for item 50 and choose the Adopt Services button.



8. The planned quantity is suggested as quantity performed. If necessary, you can reduce this quantity to document that not the entire quantity is performed so far. In this demo script, we assume that the entire planned quantity is performed.

9. Choose Back and change Billing block to empty.

10. Save the service entry sheet and note the document number: _________

Result

A Service Entry Sheet is created.

5.6 Creating Debit Memo

Use

In this activity, you create the debit memo.

Prerequisites

The service entry sheet is created.

Procedure




Create








Document Document number of the service entry sheet

3. Choose Execute. The system processes the data from the service entry sheet and creates a debit memo.

4. Save the billing document and note the document number: _________

Result

A billing document is created.

5.6.1 Posting Incoming Payment from Customer Manually

External Process

Use



This activity posts the incoming payments from the customer.

Prerequisites

Open items have been posted.

Procedure

To perform this activity, you must execute the following sections described in the scenario Accounts Receivable (157) and use the master data from this scenario.

Section Description

4.10 in 157 Posting Incoming Payment from Customer Manually

Result

FI document:


10020109 BOC-Cust. Incoming Paymnt 11220101 AR-Domestic

5.7 Creating Service Entry Sheet for Subsequent Billing

Use

The service entry sheet is a sales document like the quotation or the sales order. It documents the progress for a number of services (which quantity is performed so far) and is the base for the settlement of the services to the customer.

Prerequisites



Procedure



SAP ECC menu Logistics Sales and Distribution Sales Bill of Service

Service Entry Sheet Create








Order Type YED2





Division 10


4. Enter your sales order number to create the link between the sales order and the service entry sheet, and then choose Copy.



6. Choose Service Selection. Choose Service Sel. to select the From SD Order XXX where you have a quantity. Confirm the information displayed in the dialog box.

7. Select the line item 50 and choose Adopt Services.

The planned quantity is suggested for the quantity performed. If necessary, you can reduce this quantity to document that not the entire quantity is performed. In this document, we assume that the entire planned quantity is performed.

8. Choose Back and change Billing block to empty.

9. Save the service entry sheet and note the document number: _________

Result

A Service Entry Sheet is created.

5.8 Creating Debit Memo

Use

In this activity, you create the debit memo.

Prerequisites

The service entry sheet is created.

Procedure




Create








Billing Type Y2 Debit Memo



Document Document number of the service entry sheet

3. Choose Execute.

4. Choose Save to create the Billing Document.

Result

A Billing Document is created.

FI document:


11220101 AR-Domestic 60010101 Revenue from main operation-domestic

22210105 Output tax

6 Process Steps Cost Plus or Time and Material Billing (RRB)

6.1 Creating a Project Structure (Ref: 439)

Use

In this activity, you create a project structure. If a project has been created already as described in Scenarios 439 and 441, then create your own project by copying an existing project as described below.

Procedure



SAP ECC menu Logistics Project System Project Project Builder






2. Choose Enter to skip the informational message if it displays.

3. On the Project Builder screen, choose Create and select Copy Project.





For example, EXXXXX


For Example: Construction Project for Unit price contract




Project Profile

Enter the project profile YECO001

Start

Template



For example, EXXXXX

5. Choose Enter.

6. If there is Project Profile pop-up screen, choose Yes.

7. If there is Easy Cost Planning pop-up screen, choose No.

8. On the Number Assignment pop-up screen, enter the network number to correspond to the project def. number you are creating. If you Project Def. number is E00010 then enter E00010.









14. Repeat step 11-14 for WBS element EXXXXX-02.


Result

The project structure is created.

6.2 Posting Procurement Costs to Project

External Process

Use

To accurately test the following sections of this scenario some procurement costs need to be posted to the newly created project. This activity provides guidance on how to post some procurement costs to a newly created project.

Prerequisites



A project was created as described in scenarios 439.

Procedure

To perform this activity, you must execute the following sections described in the scenario Project Planning for Engineering and Construction (441) and Purchase Order for Project-based Procurement (443).

Section Description

4.6 in 441 Releasing Purchase Requirements

For material ECO-D-03-30-00.

4.6.1 4.6.2 4.6.4 in 443 Converting Assigned Requisitions to Purchase Orders

For material ECO-D-03-30-00.

6.3 Detail the Project Structure (Ref: 441)

Use

In this step, the project plan is detailed via adding network activities and assigning these network activities to the WBS elements. In terms of planning the project manager also adds information about the planned hours and quantities to the activities and specifies information about the rates and the group that is supposed to execute the activities.

Prerequisites

The project definition and the WBS project structure are created and the project specific master data are set up.

Procedure Creating Network Activities



SAP ECC menu Logistics Project System Project Project Builder






2. To open the project you created in the previous step, double-click the corresponding entry in the Last Projects Processed List in the lower left hand side of the window.

3. Choose Expand All to see the complete project structure.

4. Right-click the WBS Element Management and choose Create Activity (Internal).

5. On the right side of the screen of the Internal Tab, enter the following details:


Activity Description

Project Manager

Work Center YE5410



Work 100 H

Activity Type YE04

Control Key PS01 Cost is not calculated for this activity.


Result

Network activities EXXXXX-XXXX are created.

6.4 Creating Document for Designed Drawings

Use

You now create a system document to store link with the designed drawings.

Prerequisites

The designed drawing has been input in C:\SAP BP\.

You can find the designed drawing in the SAP Best Practices Documentation Package in the folder ..\ SAP_BP\Misc\ECO\China\ and copy it to C:\SAP BP\.

Procedure



SAP ECC menu Logistics Project System Documents Document

Management System Document Management System

Document Create

Transaction code CV01N


Business role Engineering Specialist

(SAP_NBPR_ENGINEER-S)

Business role menu Engineering Document Management Create Document

2. On the Create Document: Initial Screen, enter the document type KPR and the name YE_ECO_DRW_0X.

3. Choose Enter.

4. On the Create Document: Basic Data Office-Documents (KPR) screen, enter the following description: Drawing for Construction project XXX.

5. Choose Create Original.

6. Choose Continue (Enter) in the dialog box.

7. In the Create Document: Basic Data Engin/Des. Drawing (KPR) dialog box, enter the following data:




Applic. LIM

Description Drawing for Construction project XXX

Data Carrier PC

Original C:\SAP BP\DRAWING2.JPG Select the file from C:\SAP BP\

8. Choose Continue (Enter).

9. Choose Check In Orig.

10. In the Check in Document: KPro dialog box, choose DMS_C1_ST and confirm your selection by choosing Enter.

11. Choose Object Links tab page, choose WBS Element, enter EXXXXX on WBS element field.

12. Choose Save (Shift+S).


Or


Result

A document has been created in the system.

6.5 Creating Order

Use

The contract (sales order) is created when the Project is approved and released.

Procedure



SAP ECC menu Logistics Sales and Distribution Sales Order Create








Order Type YEC3

Sales Organization 1000

Distribution. Channel 10



Division 10

3. Choose Enter. Make the following entries:


Sold to Party E-YE0060

PO Number Purchase Order Number Test Cost Plus or TM Billing

PO Date Purchase Order Date Enter the current date

Req Delivery date Enter todays date

Delivery Plant 1000

Payment Term 0001

Item 1

Material Time and Material ECO_TIME_MATERIAL

Qty 1

4. Choose Enter and confirm followed information.

5. For item 10 (a cost plus billing material), double-click the item and enter the following

information:

Tab name Field name User action and values Comment

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