CHAPTER Investment Management FEATURING: INVESTMENT MANAGEMENT CONFIGURATION ® INVESTMENT PROGRAMS, MEASURES, AND PROFILES » INVESTMENT MANAGEMENT PLANNING AND BUDGETINGavestment Management (IM) isan example of a SAP module that crosses both FI and CO, Because of the function it provides—namely, capital acquisition manage- ment—it purposefully resides in neither, ‘The key integration points involved with cither Fl or CO are Asset Accounting, General Ledger Accounting, and Internal Order Accounting. Both General Ledger and Internal Order Accounting were cov- cred in detail in prior chapters, so the concepts will only be mentioned here. Asset Accounting is not covered in any of the chapters, but its role as it relates to IM will be developed within this chapter. Another integration point with IM is the SAP module called Project Systems (PS). Through the assignment of Work Breakdown Structures, or WBS elements, spending on PS-related capital projects can be monitored and controlled. Because Project Sys- tems is beyond the scope of this book, WBS development will be mentioned but not shown. The focus of configuration will be on the IM module and its relationship to Internal Order Accounting. The chapter will begin with a brief explanation of IM configuration concepts, Investment Management Configuration Configuration for the Investment Management (IM) module is rather simple in that there are not loo many working parts to manage. Of the areas necessary to configure to support internal order integration, only the program type and investment profile have not been covered in prior chapters, Concepts like order type, user status, and plan and budget profiles have been covered previously. How they are relative to IM configuration will be exposed. ‘The configuration itself that will be flushed out in the chapter will be simple and straightforward. Only those parts necessary to get IM up and running will be shown in any detail. To this end, asset accounting configuration will be mentioned but not shown, Before beginning the project, it is advisable to partner with whomever your asset expert is and let them know what your needs will be regarding asset class devel opment. For demonstration purposes, a preconfigured asset class, AuCl (Asset under Construction), will be shown, Investment Management can be a good analysis tool for monitoring and reporting Projects at a high level Plan/Actual or Budget/Actual comparisons are examples of. how IM can be useful. It is not a replacement for Project Systems and its task-oriented planning approach. -PROGRAM TYPES, INVESTMENT MEASURES, AND THE INVESTMENT ROFILE 775 Before beginning, itis important to understand some of the terminology that will be used in the chapter: Investment program ‘The user-defined capital budget hierarchy used to plan, budget, and monitor all capital spending. ‘The investment prograin is developed in ahierarchical format. Program position or investment node Refers to a position found on the investment program hierarchy: At the lowest level of a hierarchy, a progeam position may relate to a capital project or project component, Measure Either an internal order or a WBS element. The measure, as SAP refers to it, the cost collector through which spending will be controlled and monitored. Itis the key integration object with Investment Management. WBS, elements are the collectors associated with Project Systems, whereas internal orders are cost collectors found in the CO module. The measure is always assigned ‘16 the lowest progam position within the investment program. Begin IM development with the creation of master data items such as program types, investment profiles, and investment measures. Program Types, Investment Measures, and the Investment Profile Begin your Investment Management configuration with the creation of the program type, which could be described as the backbone of the investment program. The investment program provides an enterprise-wide view of capital spending and bud- geting through a hierarchical representation. There are two steps associated with progcam type development: 1. Create the program type. . 2. Assign approved objects for use with the program type. Within the hierarchy, you would find the projects that make up your capital invest- ment plan for one or multiple fiscal years, depending on your management style, Figure 13.1 provides you with a basic example of an investment program hierarchy, In this example, the program position PROJECT_001 (New Plant Roof) represents a single capital project. The program type is the control mechanism for the investment programs it regulates how planning and budgeting are accomplished through var- ious profile assignments. Additional maintenance, although not required, will allow general status management to be activated through the order type.