RWD Info Pak Template - University of Leedssapinfo.leeds.ac.uk/content/cj01/wi/word/cj01wi.doc ·...

Title: Create a ProjectCategory 1 : Departmental AccountingCategory 2 : Cost Object Maintenance

Work Instruction

Create a Project CJ01

PurposeUse this procedure to create a Project Definition and a Work Breakdown Structure.

TriggerPerform this procedure when a new project is initiated.

PrerequisitesThe Project Definition is the binding framework for all the organisational elements in a project. You can also define non-binding information such as start and finish dates in the Project Definition.

Work Breakdown Structures (WBS) divide a project into manageable units. The Work Breakdown Structures can be organised into a project task hierarchy. To set up a Project Definition and a Work Breakdown Structure, the following steps need to be carried out:

Create a Project Definition.

Create the WBS elements for the individual tasks or sub tasks within the project.

Maintain the data for the individual WBS elements.

Save the WBS.

Menu PathUse the following menu path to begin this transaction:

Select Accounting Project System Basic data Project Special Maintenance Functions Work Breakdown Structure WBS Create to go to the Create Project: Initial Screen.

Transaction CodeCJ01

Additional Information When creating a project definition, it is possible to copy an existing one which can then be edited as required.

When creating WBS elements, you can also copy an existing WBS element and edit it as required.

Alternatively, in the case of capital projects, you can copy a standard Project Definition and a standard WBS, which can then be edited as required.

File name: document.docReference Number: ###

Version: Not StartedLast Modified: 3/26/2003 5:32 PM

Work Instruction / 29


Procedure

1. Start the transaction using the menu path or transaction code CJ01 .

Create Project: Initial Screen

2. Perform one of the following:

If Go To

Read the notes on the Capital project process flow. Step3

Set up a Project Definition and WBS for a Capital project. Step4

Set up a Project Definition and WBS for a Research Grant project. Step 23

Set up a Project Definition and WBS for a multi-level Research Grant project.

Step 36

3. The capital project process flow is as follows:

Summary of the Process



Work InstructionPage 1 / 29


When a capital project is set up, the capital project template should be used. The template holds a standard structure together with all the correct system settings which will ensure the correct accounting treatment of assets, both while under both while under construction and when finally completed.

The template holds the following information:

Investment Profile ZUNIV1 - Income

Investment Profile ZUNIV2 - Expenditure

Settlement Profile ZCP001 - Income

Settlement Profile ZCP002 - Expenditure

Profit center 71100

The process is as follows:

The project and associated WBS elements are created using the standard template CP.999999.(SAP transaction CJ01).

The standard template creates the following structure:

The WBS elements allow the costs and revenues associated with the project to be managed and collected in a meaningful way. The structure can be edited to exclude any WBS elements that are not required.

Once the project has been set up with the appropriate WBS elements, it has to be released in order to allow postings to be made to it. The release procedure is key in that it also automatically initiates the creation of an Asset Under Construction (AUC).

Why is the AUC important?As WBS elements are cost objects, the spend (and the grant income) affect the profit and loss account. For accounting purposes however, all ‘capital expenditure’ needs to be reported in the balance sheet. The AUC therefore acts as the link and means of transferring this information to the balance sheet at the period end. The investment profiles ZUNIV1 and ZUNIV2 ensure that the connection is made to the correct balance sheet accounts, 11050 for expenditure and 27300 for income.

At the period end, the costs are transferred to the AUC by a settlement program (CJ8G) which is run by financial accounts. The program serves to transfer the balances in the project to the AUC. Two settlement profiles have been set up, ZCP001 and ZCP002 in order to settle income and expenditure.

The settlement rule does not need to be entered manually on the WBS elements as it is connected to the investment profiles ZUNIV1 and ZUNIV2. The settlement rule tells the system which asset under construction to post to and which accounts to credit and debit.

Settlement Rules





The settlement rules have been set up in the system as follows:

ZCP001 (Costs)

This rule transfers out the balances on the WBS elements by crediting up to three cost elements. The debit is posted to the balance sheet fixed asset account 11050.

(Credit) 69700 Contracted staff Costs

(Credit) 69710 Non Contracted Staff Costs

(Credit) 69720 Non Staff Costs

Debit 11050 Fixed Assets – AUC Capital projects

ZCP002 (Income)

This rule transfers out the balances, on the income WBS element’s account 69620, to the balance sheet account 27300.

Debit 69620 Settle Capital Grants to Assets

(Credit) 27300 Def Capital Grants

Some capital projects have an element of repair work attached to them. Repairs are reported in the profit and loss account not in the balance sheet. The standard repair WBS element does not therefore have an investment profile, hence the costs are not therefore transferred to an AUC.

The monthly settlement process will continue until the project is ‘technically completed’. At this stage the asset is ready for use and the asset master record is therefore set up. This is a manual process (using SAP transaction AS01). A separate asset record is created where there is an associated grant.

These asset numbers are then entered onto the settlement rule of each of the WBS elements. When settlement is run this time, the balances on the AUC are reversed and posted to the finished asset records and to the correct accounts in General ledger. The status on each of the WBS elements needs to be changed at the same time to ensure that all stages of the project start to depreciate simultaneously.

Depreciation is charged from the beginning of the month in which the asset is finished.

Once the asset has been capitalised, subsequent costs are still charged to the project but are no longer settled to the AUC at the period end but are settled directly to the asset.

When the standard template is used the WBS elements are assigned automatically to profit centre 71100. This automatic assignment ensures that all capital expenditure is collected in one area for analysis purposes.





Setting up a Capital Project

4. To set up a Capital project, complete/review the following fields:

Field Name R/O/C Description

Project def. R Enter the project definition name/number. Click on to search for project definition names/numbers already set up on SAP. The format for the project definition is CP.XXXXXX, whereby XXXXXX is a 6 digit number.

When setting up a capital project, this field

can be left blank and the selected in order to assign a new number from the capital project number ranges available on the system.

Project profile R Select the Capital Projects profile from the dropdown list.

Template:Project Definition

N/AIt is possible to copy a project definition which already exists and then edit it as required. This option is not used for capital projects as a standard template has been set up.

Template:Standard Project Definition

R Enter the standard project definition Click on to display the options

A standard template has been set up for capital projects which ensures that the project profile is set up correctly. The template holds important control information relating to the creation of an asset under construction, the asset class and the depreciation of the asset. The template should always be used when setting up a capital project.

Example: CP.999999.

5. Click on to display the next available number in a particular range.





Find Open Number

6. As required, complete/review the following fields:


Start value R Enter the start value.

This field can be used to identify the next available number for the project. The system will automatically insert an end value (999999). The next available number will be displayed.

Example: CP.711240

Finish value R Enter the end value.

This field can be used to identify the next available number for the project. The system will automatically insert a start value (000000). The next available number will be displayed.

Example: CP.711240

Search strategy RClick on the radio button . Find next open number.

7. Click on .





Find Open Number

In this example the start value CP.711240 was entered. The finish value was entered as CP.799999. The next number in the range, CP.711241, was proposed.

8. Click on to accept.

Alternatively, click on for more proposed project definition numbers.

9. Click on to accept.

10. Click on to display the Create Project definition screen.





Create Project definition:



Responsible Person R Enter details of the responsible person by selecting from the

drop down list. Click on .

The responsible person is used to determine who receives the availability control messages and is usually the departmental administrator.

Example: 00011761

Applicant Number R Enter details of the applicant by selecting from the drop down

list. Click on .

Example: 00010451

Start date R Enter the start date.

Example: 01.03.2002






Finish date R Enter the end date.

Example: 01.02.2003

Location R Enter the location by selecting from the drop down list. Click

on .

Example: 071

Profit centre R Enter the profit centre.

Example: 711000

Where a project template has been used, some or all of these fields will default in from the template settings. Amendments can be made to the fields which are displayed in white.

The control tab, administration, and long txt tabs are automatically populated with key data.

12. Click on to view the standard WBS structure which has been set up for capital projects.





Create Project: Copy Standard WBS Elements

The standard capital expenditure project format is displayed. This categorises the capital expenditure into the required format e.g. fees, main contract, furniture etc. The WBS element number defaults to the template number 999999. If the standard layout is adopted, this number should be replaced with the system generated project number. Any categories which are not required can be excluded by clicking in the selection flag column .

13. To adopt the standard layout and change the WBS element numbers click on .

Change Key





In this example, the system searches for all records which refer to the template number 999999 and proposes to replace the numbers with the new project number 711241.

14. Click on to accept the changes.

Change Key

15. The system will display the message .

16. Click on to accept the changes. All lines which are displayed in yellow will be included.

If you wish to exclude any lines, prior to clicking on , click in the column marked against the line(s) to exclude. The line will now be displayed in white.

17. To display the WBS elements, click on .





Create Project: WBS Element Overview

The basic data, assignments, responsibilities etc can be viewed by scrolling through the tabs. The ‘Acct’ (Account Assignment) indicator on the basic data tab, determines whether the WBS element can accept actual postings. The level 1 WBS element is a summary level and should always be left blank in order to prevent postings being made to it.

For capital projects the ‘Bill’ (Billing Element) indicator should always be left blank on all WBS elements (including the WBS element for capital grants) otherwise it will not be possible to settle the project correctly at the month end.

18. To view the entire hierarchy, click on the grey box to the left of the WBS element at the top of

the list and click on .





Create Project: Hierarchy Graphic

The project structure can be seen more easily. CP.711241 is on level 1 and summarises the level 2 WBS elements against which postings are made.

19. To return to the Create Project: WBS Element Overview screen, click on .

20. Before postings can be made to a WBS element, its status must be set to ‘Released’ (REL). To do this, highlight the required WBS element by clicking on the button to the left of it, and select Edit Status Release

Releasing the level 1 summary WBS element will simultaneously release all the subordinate level 2 WBS elements all WBS elements.

The status of the project is displayed as REL.





21. To save the project definition and WBS elements click on .

22. The system displays the message .

ResultYou have set up a Project Definition and a Work Breakdown Structure for a capital project.

Setting up a Research Grant Project

23. To set up a Project Definition and WBS for a Research Project, complete/review the following fields:


Project def. R Enter the project definition name/number.

Project definitions are in the format RG.XXXX.NNNNNN where XXXX is the four character departmental code and NNNNNN is the six digit project number from OSCAR.

Example: RG.MECH.440001

Project profile R Select the Research Projects profile from the dropdown list.

Care should be taken to select the correct profile. DO NOT use the profile for multi-level research projects!

24. Click on to display the Project definition screen.





Create Project : Project definition



Project Definition R Enter a description for the project definition.

Example: Mech Eng – Research project 4

Responsible Person REnter details of the responsible person by clicking on and selecting from the drop down list.


Example: 10195

Applicant Number R Enter details of the applicant by selecting from the drop down

list. Click on .

Example: 10031







Example: RGMECH

The control tab, administration, and long txt tabs are automatically populated with key data.

26. Click on to display the Create Project: WBS Element Overview screen.


The WBS element can now be created.







WBS element R Enter the WBS Element name/number.

Enter the same name as the project definition by copying and pasting the definition from the Project definition field.


Description R Enter the description of the WBS element.

Copy and paste the description from the Project definition description field.

Billing Element R Tick the ‘Bill’ (Billing Element) field by clicking on it.

This allows research grant income to be posted to the project, and is a required field. If you forget to tick it you will receive the message:

.

28. Click on to enter details.






29. Click on to attach a costing sheet.








Costing sheet R Enter the costing sheet number.

The costing sheet is used to charge departmental overhead costs to research projects. It must already have been set up using transaction KZS2. If the costing sheet has not already been set up, the field can be left blank and the costing sheet assigned at a later date using transaction CJ02.

31. Click on the tab to return to the Basic Data screen view.

Before postings can be made to a project, the status of the project must be set to released.





32. To release the WBS element, highlight it and then select Edit Status Release.

33. Click on to save the project.

34. The system will display the message .

35. You have completed this transaction.

ResultYou have set up a Project definition and Work Breakdown Structure for a research grant project.

Setting up a Multi-level Research Project

36. To set up a Project Definition and Work Breakdown Structure for a research project with multiple level WBS elements, proceed as follows:

A Work Breakdown Structure (WBS) is a model of a project, and shows the project activities arranged in a hierarchical structure. The various work activities, budget categories, etc, are described in individual WBS elements. You can further subdivide these WBS elements into lower levels until the required level of detail is shown. In practice most research projects will comprise two levels: a summary (Level 1) WBS element, and, below that, detailed level 2 WBS elements against which actual costs are posted. Research projects may only have one level 1 WBS element, but many WBS elements at level 2 elements or below.



Project definition R Enter the project definition name/number.

Project definitions are in the format RG.XXXX.NNNNNN where XXXX is the four character departmental code and NNNNNN is the six digit project number from OSCAR.


Project profile R Select the Research Projects (Multi-level) profile from the dropdown list.

38. Click on to display the project definition screen.





Create project: Project definition



Project definition R Enter a project description.

Example: Oncology - ICRF

Responsible person REnter details of the responsible person by clicking on and selecting from the drop down list.


Example: 13168






Applicant number REnter details of the applicant by clicking on and selecting from the drop down list.

Example: 33288


Example: RGONCO

40. Click on to display the Create Project: WBS Element Overview screen.






41. First, set up the level 1 WBS element by completing the following fields:


Level R Enter the hierarchy level number.

Example: 1

The first entry must always be at level 1.

WBS element R Enter the WBS element number.

Enter the same number as the project definition by copying and pasting the definition from the Project definition field.

Example: RG.ONCO.441234

Description R Enter the description of the WBS element.

Copy and paste the description from the Project definition description field.

Example: Oncology – ICRF

Acct R Deselect the account assignment indicator by clicking on it.

Bill R Select the billing element indicator by clicking on it.

Level 1 WBS elements, which provide a summary of costs incurred on the lower level WBS elements, are used for billing the project sponsor.

Level 1 elements should not be set as account assignment elements as they are used to summarise costs posted to the lower level WBS elements. The billing element indicator should, however, be set to allow summarised billing of the sponsor from the level 1 WBS element.






42. Next, set up the level 2 WBS elements as required:


Level R Enter the hierarchy level number.

Example: 2

WBS element R Enter the WBS element number.

Example: RG.ONCO.441234.GMB

Description R Enter the WBS element description.

Example: Melanoma Biology

Acct R Ensure that the account assignment indicator is set .

Bill R Leave the billing element indicator blank .

43. Click on to enter the details.






In this example a research grant project has been set up with one level 1 WBS element and three subsidiary level 2 WBS elements. Actual costs are posted to the level 2 WBS elements which have the account assignment indicator set. These are summarised on the level 1 element which is not an account assignment element. Billing is carried out from the level 1 WBS element which is set as a billing element.

44. Click on the tab to enter a Costing Sheet and a Results Analysis key.






Costing Sheets are used to charge departmental overhead costs to research projects. They include the cost elements on which the overhead is calculated, the overhead rate, and the cost object from which the overheads are charged. Costing sheets are set up using transaction KZS2.

Results Analysis is a periodic process that calculates the value of work done on a project by comparing costs incurred to date against revenue received. Where costs exceed revenue, the balance is treated as Work in Progress (WIP) and a debit posting is made against a WIP account in the balance sheet. Where revenue exceeds costs, a credit entry for Deferred Income is made in the balance sheet. The method of calculating these adjustments is determined by a Results Analysis key. For research projects the key is RGWIP.







Costing Sheet As required, enter the costing sheet number against the account level 2 WBS elements.

Costing sheets should only be allocated to WBS elements that have the account assignment indicator set. If a WBS element is not an account assignment element the costing sheet will be ignored in periodic processing.

If the costing sheet has not already been set up, the field can be left blank and the costing sheet assigned at a later date using transaction CJ02.

RA key R Enter the results analysis key RGWIP against the level 1 WBS element only. Leave the RA key field on the level 2 WBS elements blank.

The RA key should only be entered on the level 1 WBS element. If this is not done, the results analysis will be incorrect as the calculation will be carried out on the lowest level WBS elements only. Consequently any income on the level 1 element will be ignored.

46. Click on to enter details.






47. Click on the tab to return to the Basic Data screen view.

Before postings can be made to a project, the status of the project must be set to Released.

48. To release the WBS element, highlight it and then select Edit Status Release.

If you select the level 1 WBS element to release, all subsidiary WBS elements will be released at the same time.

49. Click on to save the project.

50. You have completed the transaction.





ResultYou have created a Project Definition and a Work Breakdown Structure for a multi-level research project.





This page is intentionally left blank.




RWD Info Pak Template - University of Leedssapinfo.leeds.ac.uk/content/cj01/wi/word/cj01wi.doc ·...

Documents

Transcript of RWD Info Pak Template - University of Leedssapinfo.leeds.ac.uk/content/cj01/wi/word/cj01wi.doc ·...