Integrating WBS Elements

Integrating WBS Elements from SAP Project Systems to Customer Individual Requirements (Sales Order)
Table of Contents
Project Systems – Customer Oriented Project Implementation Situation ............................................... 2
Integration of Projects Systems (PS) and Sales and Distribution (SD) ................................................... 2
While Creating Project Structure........................................................................................................... 2
Indicator: Billing element ................................................................................................................... 4
Project Customization Prerequisites – OPSB, OPSA .............................................................................. 4
Transfer Plan Values from Sales Order ............................................................................................... 6
Customization Settings from Sales and Distribution (SD) Perspective (OVZG): ..................................... 7
Requirement Type Determination: .................................................................................................... 7
Configure Requirement Types............................................................................................................ 7
Configure Requirement Classes ......................................................................................................... 9
SD Order Creation ............................................................................................................................... 13
PS Transactions (CJ43) ......................................................................................................................... 21
CN41 – PS Information Report................................................................................................................ 23
Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/
Twitter @mistersharesap
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Project Systems – Customer Oriented Project Implementation Situation
Integration of Projects Systems (PS) and Sales and Distribution (SD)
This article focuses on an aspect of integration of Projects systems (PS) and Sales and Distribution (SD)
Mostly such integration scenarios are in High- tech Capital industries where each Sales document runs
most of the time into millions of dollars revenues and such revenue is billed based on delivery of certain
assemblies, or phase wise completion of the Contract terms.
To keep track of such revenues, Project System module is very helpful. The Project structure can be
modified as per the revenue streams of a Sales contract, different WBS elements can be to each item in
a single Sales Order or to multiple sales orders as per the scenario requirement.
And then, if using networks for the cost planning which in turn are assigned to WBS element and with
totalling up functionality available for the WBS structure, WBS elements usage helps to analyse costs
incurred and revenues received for the Project.
Since project customers have generally customized customer requirements, tracking of such
customized solutions on their costs & revenues from a logistical & financial point of view can be difficult
to keep track of and hence this kind of integration help to keep better overview on works & revenues.
The below scenario explains in simple terms how the Project Structure can be linked to the Sales Order
Item.
In PS, the planning of expected revenues can be done at either WBS element structure level or revenue
element level. We are looking at planning of revenues at WBS element level
If business requires that planned revenues need to come a Sales Document, that scenario follows. For
revenues to come from SD, the sales document has to have account assignment to WBS element with
a billing plan in it.
While Creating Project Structure
First important check to keep in mind is maintenance of the Billing Indicator in the Project Structure for
planned revenue values to be visible in PS. This setting allows for planned revenue on WBS element.
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Indicator: Billing element
This indicator defines the WBS element as a billing element.
Further notes
If you want to maintain a billing plan for a WBS element, you must set this indicator. If you have
maintained a billing plan for the WBS element, you cannot change this indicator.
Project Customization Prerequisites – OPSB, OPSA
If these planned revenues are to flow from the Sales Order , it is important that the planning profile
associated with the project contains certain customization settings as shown below. This Planning
profile is assigned to the project profile which is used to create the project as the below screen shows.
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The planning profile should have the tick maintained in the check box “ from the sales order” if the
values need to come from sales order as shown by below screen shot.
Transfer Plan Values from Sales Order
Defines that the system updates the values of a project account assigned customer order item as
planned revenue and if necessary as planned payment in the relevant WBS element.
Further notes
The system does not additively update the planned revenues from the project accounted sales and
distribution documents and the billing plan for the WBS element. If there is a billing plan maintained
for the WBS element, the system will in any case only update planned revenue from the billing plan to
the project. Values from the sales and distribution document that may already have been updated, are
deleted by the system.
The planned revenues or planned payments from the project account sales and distribution
documents are updated additively by the system for the manually planned values.
The planned revenues or planned payments from the project account sales and distribution
documents cannot be updated in the manual revenue and payment planning.
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Customization Settings from Sales and Distribution (SD) Perspective (OVZG):
Requirement Type Determination:

How does Sales order transfer its net price/ agreed invoice value as planned revenue to the project.
It depends on how is the account assignment of the Sales Order item is handled and the maintaining of
the billing plan foe the item.
The account assignment depends on the determination of the requirement type of the material. Added
to this, material master data should be maintained appropriately to successfully have the WBS element
as the account assignment.
The System uses the MRP group in the material master records and the sales document type, along with
the item category group to determine the requirement type. The determination also happens based on
the strategy group maintained in “MRP 3” view of the material master. There is a sequence to this
determination.
If no strategy group is maintained in “Material master”, the system will determine it using the “MRP
group” maintained in “MRP 1” view of material master.
If no MRP group is maintained in “Material master”, the system will determine it using the “Material
Type ” of the material master.
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If still system is unable to determine the “ Requirement type”, the system attempts to find with the help
of the “ item category “ in SD item and the “MRP type” maintained in “ MRP 1” view of the material
master.
At customising level, the requirement type, in turn , is uniquely assigned to a requirement class.
Configure Requirement Types
In this IMG step, you change or define requirements types which identify the different requirements,
such as sales order requirements, delivery requirements or individual customer requirements. The
requirements types can be changed, for example, in order to represent customer-specific terms.
Together with the item category and the MRP type of the material, an allocation to the individual
transactions in sales and distribution is carried out by means of the requirements type. requirements
type. Every requirements type is allocated to a requirements class with its corresponding control
features.
While a requirements type is allocated to a single requirements class, a requirements class can be
allocated to several requirements types. As a result, it is possible to control different transactions in a
uniform manner with regard to their technical procedure.
Note
The requirements type is displayed in the sales document and can be changed there.
Actions
1. Check first whether the requirements types available in the standard version are sufficient
for your demands.
2. If necessary, enter an alphanumeric key for a requirements type, which can have up to four
characters, and a description.
3. Allocate a requirements class to the requirements type.
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The requirement class has the following configuration :-
The important configurations to be maintained are
Configure Requirement Classes
In this menu option, you define and maintain the requirement classes with which you control all
functions relevant to requirements in logistics.
The requirement class controls the MRP and the requirements consumption strategy as well as the
relevancy for planning. Specifications on the settlement of the requirement class, for example, the
settlement profile and the results analysis key, are preferably used by Materials Management and do
not have to be used when configuring the availability check and transfer of requirements.
The requirement class specifies the following points:
• whether an availability check and a transfer of requirements is carried out for a transaction (for
sales documents, fine tuning using the schedule line category is possible, see note),
• whether the requirements are relevant for MRP,
• the allocation indicator from the sales view which controls the settlement of customer
requirements with planned independent requirements
• whether an item is to be settled to an auxiliary account assignment,
• the settlement profile,
• the results analysis key.
Note
The availability check and transfer of requirements are controlled globally using the requirement class
for all sales document types. For the sales document types, fine tuning is also possible at schedule line
level. The specifications from the requirement class are transferred to the schedule lines as a default
value and can be overwritten. Fine tuning of the sales document types using the schedule line category
is described in the section "Defining the procedure for each schedule line category".
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For information on independent requirements allocation and independent requirements reduction,
see the manual "SD Sales". The configurations for independent requirements allocation are described
in the Implementation Guide for Production Planning in the chapter "Demand Management".
Actions
1. Check first whether the requirement classes available in the standard version are sufficient
for your demands.
2. If necessary, enter a new key for the requirement class, which can have up to three
characters, and a description.
3. Specify whether an availability check and/or a transfer of requirements should be carried out
for the requirement class. At requirements class level, the availability check can only be
activated at the same time as the transfer of requirements. On the other hand, the transfer of
requirements can be activated independently of the availability check.
4. Specify whether a requirement is relevant for MRP.
5. Specify for the allocation indicator whether a settlement of customer requirements with
planned independent requirements should be carried out by allocating a consumption strategy
to the requirement class. The allocation indicator corresponds to the settlement indicator
which is maintained in planned independent requirements management. Customer
requirements can only be settled with planned independent requirements types to which the
same consumption strategy was allocated in independent requirements planning.
6. Specify the indicator for requirements reduction, if necessary.
Notes
You can make the settings for the requirements class which concern costing and account assignment in
the following activity: Sales and Distribution -> Basic Functions -> Account Assignment/Costing ->
Maintain requirements classes for costing/account assignment.
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The above configuration step of requirement class is the most important in terms of integrating Project
system with SD and MM modules.
In this, Account assignment category setting - Q or D decides if the Sales Order can be linked to Project
System.
Q is for Value & Stock management at Project level while D does the same at Sales order level
SD Order Creation
When an item is added in the Sales Order is being created, System automatically checks for the
requirement type in the background and issues the message as the below screen shows :-
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The ‘requirement type” can be checked in the columns you get when “Procurement “ tab is selected at
the sales order header.
The column in the procurement tab to be checked :-
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Such Sales order only gets saved when “WBS element” value is inputted in the Account Assignment tab.
Then the billing plan should be maintained for each billable item in the sales order.
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When the billing plan is maintained in the sales order item, then only values flow from SD to PS.
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PS Transactions (CJ43)
Transactions CJ42/CJ43 (revenue planning) or CN41 (PS Financial reports) can be used to check if the
revenues had transferred to the WBS element from the sales order.
In this scenario, as only 30% is to be billed at “contract sign” this year and the remaining in next year as
shown by the dates in the billing plan, the “sales order value” column in CJ43 shows the distribution of
the revenues across the periods in 2023 and in next year 2024 .
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The rest is in year 2024.
Cumulative column shows entire values for both years ( = Sales order Value + Prev year)
The “Sales order Value” shows the amount to be billed in 2023.
When the actual billing is done as per the dates in the billing plan, the actual revenue too gets posted
to the WBS elements.
CN41 – PS Information Report

The below screen shot of CN41 report shows the planned revenues on the WBS elements ,value flow
being from the sales order to the WBS elements
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Thus, the superior WBS elements/project definition can act as the pivotal point on which costs and
revenues can be compared and thus a superlative analysis can be done to monitor the profitability of
the project.
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In a project scenario where the costs and revenues can get easily out of track , such mapping in the
system helps for project managers to better monitor their cash ,cost & revenue flows.
The real scenario in an industry can have multiple instances of above described scenario, with WBS
elements being billing relevant and the Project sales order having 500-5000 items with assignments to
WBS elements.
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Integrating WBS Elements from SAP Project Systems to Customer Individual Requirements (Sales Order)

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

Integration of Projects Systems (PS) and Sales and Distribution (SD)

While Creating Project Structure

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

This indicator defines the WBS element as a billing element.

Project Customization Prerequisites – OPSB, OPSA

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Transfer Plan Values from Sales Order

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Requirement Type Determination:

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Configure Requirement Types

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Configure Requirement Classes

The requirement class specifies the following points:

• whether the requirements are relevant for MRP,

• whether an item is to be settled to an auxiliary account assignment,

• the settlement profile,

• the results analysis key.

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The column in the procurement tab to be checked :-

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Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CN41 – PS Information Report

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