2003 Product Lifecycle Management Forum

PS in integration with IM,CO,MM & AA

Michele Harle AMD Inc.

Raj Una Unatech LLC.
Nov 4th, 2003

Agenda
Welcome and Introductions
System Integration Overview
PS & IM integration
PS & CO integration
PS & MM integration
PS & AA integration
Implementation Challenge
Open Discussion

System Integration Overview

Cost Roll Up
Budget Distribution

Liquidity Forecast
Cash Budget Management

TR

IM

HR

Org. Structure
Labor Tracking

PR Release
PO Commitment

MM

Goods Movements

PO/Non-PO Invoices
Payment Schedule

AP

Activity Allocation
Settlement
Plan Version

PS

CO

AM
PM

Depreciation Forecast
AUC Settlement
Asset Capitalization

PM Order
Facility Shutdown
Preventative Maintenance

System Integration Overview

Investment
Program

I
M

(IPP)

(IPP)
Investment
Program Position
P
M

P
S

PM Order

WBS

Forecast

(IPP)

Investment
Program Position

Investment
Program Position

C
O

Budget

Appropriatio
n
Request

Internal
Order

Periodic Settlement
A
A

IO

AUC

WBS

Asset Under Const.

Final Settlement
Commitments
M
M

Goods Movement
External / Internal Labor

Final Asset
H
R

Allocations

Cost Center
C
O

Accounts Payable
Cash Flow

FI

System Integration Overview

Investment
Program
Structure

Define Budget
Categories
Create Program
Definition and
Program positions

Program Plan
Roll-Up

Project
Definition &
Structure
Define Project
Create Work
Breakdown
Structure (WBS)
and Network Activity

Project Cost
Planning

Maintain Project
Costs Detail
Define Project
Schedule

Program Budget
Distribution

Create Budget
Budget Distribution to
Measure

Project Data
Maintenance
Assignment of Cost
center, Profit center
and Depreciation
Simulation Data

Project Budget
Allocation

Release Project
Budget

Project Version
Maintenance
Copy Plan Version
for different forecast
( Annual Budget,
Quarterly Revision )

Release

Release WBS elements& Activity

Generate Requisition automatically

System Integration Overview

Generate
Requisitions
Release Purchase
Requisitions

Periodic
Settlement
Settle revenue &
costs from Project
to GL / Cost
center / Asset

Purchase Order

Purchase Order to
Vendor

Update Project
Plan & Budget
Revise Project Plan
Maintain Current
Budget ( Supplement,
Return & Transfer)

Goods Receipt

A/P Invoice &

Journal Entry

Confirm Receipt of
Goods & Services

A/P invoice to
Purchase Order

Valuated/Nonvaluated

Hook-Up Cost

Project Final
Settlement
Final Qualification
and Acceptance
Technical Close
WBS Elements
Complete Final
Settlement to Asset

Installation Cost

Project Close

Close Project

Agenda
Welcome and Introductions
System Integration Overview
PS & IM integration
PS & CO integration
PS & MM integration
PS & AA integration
Implementation Challenge
Open Discussion

IM Overview
A hierarchical representation which maintains planned
and budgeted capital/expense expenditures for a certain
period of time.
An investment measure could be
WBS element
Internal Order
Appropriation Request
Investment Measure can only be assigned to the lowest
node of the IM hierarchy.

IM Hierarchy Capital By VP
AMD

CPG

EHS

AWFD

Fab25

IT

HR

Dresden

ATMP

MG

Facilities

Support

Lowest Level IM Position

Cost Center

Photo

Implant

Films

Etch

Polish

IM Structure at AMD

Investment Program Type

IM hierarchy
IM structure can be
generated automatically
from either Cost center or
Profit Center hierarchy. (Tcode IM25)
If Enterprise Organization
is activated, IM position
IDs can be updated
automatically based on the
different organizational
units.

Overall / Annual values

Planning & Budgeting can
be done either annual
basis or annual and
overall basis. All the
profiles in PS & IM need
to reflect the either one of
the option.
Planning & Budgeting
profiles need to reflect the
same time horizons in PS
& IM.

Cost Roll-up
Investment measure plan
amount can be rolled up
in to the specific plan
version in IM. (T-Code:
IM34)
Its best business practice
to roll-up into separate
version each time during
the year.

Budget Distribution
Its always good business
practice to distribute
additional budget as
supplements in stead of
overwriting the original
budget in the measure.
(T-code IM52)
With User status its possible
not to distribute budget until
certain pre-requisite steps
(e.g. Approvable) met.

Agenda
Welcome and Introductions
System Integration Overview
PS & IM integration
PS & CO integration
PS & MM integration
PS & AA integration
Implementation Challenge
Open Discussion

Plan Version
Plan Versions are defined in the central table and can be
configurable in CO, PS and IM. (TCode: OKEQN)
Actual, Commitment data are always stored in Version 0.
Plan Versions are fiscal year dependent and maximum
999 alpha-numeric versions can be defined in the
system.
If PCA is activated, its better to select the On-line
Transfer and Line Item option.

Plan Version
Specific exchange
rate type (Daily or
Monthly etc.) can be
assigned to a version.
If integrated planning
indicator is selected
the plan data from
IO/WBS can be
transferred to cost
center. In 4.7, plan
data from NWA can
also be transferred.

Plan Cost Settlement

Plan cost from WBS
element can be settled to
cost center.
Settlement rule defines
the target version where
cost will be updated.
Multiple period cost can
be settled at the same
time.
T-Code: CJ9E / CJ9G

Labor Cost (Internal & External)

Labor hours and cost can be tracked through internal
network activity using Work center and activity type.
Rate ($$/hr or $$/qty) can be defined between Cost
center & Activity type (T-code KP26)
Planned cost are calculated based on the planned hrs.
maintained in NWA
Actual cost are calculated based on the confirmed hrs.
against the NWA.

Work Center master Data

Labor Cost (Internal & External)

If HR module is used, then
Specific employees can be assigned against the
Work center.
Employees can be assigned to specific NWA
(percentage or hours) during workforce planning
across many projects
Cost allocated to project can be based on actual rate
and actual hours.

Overhead Allocation
Overhead can be applied to both Plan and Actual cost.
Costing Sheet contains the details regarding calculation
of overhead to Project/Internal Orders. It includes
Basis for calculation (Cost Element Range & Origin)
Computation Method (Percentage or Amount)
Validity
Internal order/Cost center to be credited.
Overhead Key allows to define percentage specific to
each plant/company code within the same costing sheet.

Settlement
SAP allows to settle cost & revenue from cost object in
one company code to another cost object in different
company code.
However FI and CO are out of sync until FI-CO reconciliation is
executed. It can be executed many times during the fiscal
month.

It allows percentage/amount settlement to various

receivers.
In line item settlement, it allows to settle by each
individual posted line item (T-code: CJIC/CJID).

Agenda
Welcome and Introductions
System Integration Overview
PS & IM integration
PS & CO integration
PS & MM integration
PS & AA integration
Implementation Challenge
Open Discussion

Stock/Non-stock Materials
Its possible to do the availability check against the stock
materials on real-time basis from the project NWA.
Stock material can be reserved against NWA upon
release.
System can generate PR automatically for the out of
stock quantities based on MRP parameters.
If Project stock is activated in the project, then stock can
be managed within Project itself.

PR generation from NWA

PR release
from NWA gives
the visibility of
procurement life
cycle within
Project structure.
Its good
business practice
to select the
indicator 2 (From
release).

External NWA

Material components

Project Approval Flow

Project
placed on
QCCP
budget plan
list

idea Project
created

WF sets
User
status in
Level -1WBS
approved

FA sets
User status
in level-1
WBS
waiting

Level 2
WBS
released

IM52:
WF sets
User status
in level-1
WBS BUDG

Cost Center
Approval
Workflow,
via customized
forms

Final
Approval
FA sets
System
status
Network
Activity
released

Many
Network
Activity
Notification
Workflows

FA sets
user status CAPT
Level 2 WBS

Unblock
Invoice

Final
Last
Payment Pay
for
vendor

QA-Validation Workflow
for the controlled release
of the final payment

Project Approval Flow (User Status)

created, (default), 10

Rejected, 29

Start an approval workflow

by setting the status
Waiting for approval
Waiting, 20

Approved, 30

In this status the

project is dead
Denied, 25
Workflow
can be restarted.

Hint: User-Status 10 29
have the budgeting transaction set to
disallowed in configuration transaction BS02

Budgeted, 40

Only workflow
and workflow
administrators
have the
authorization
key PS000001
to set approved
and budgeted
status

The IM control admin has budgeted

this project. In this status the
project can continue and
can be set to released.

Budget Availability Control

Control Features
Warning
Warning with e-mail notification
Hard Error

Tolerance Limit
Percentage
Amount
Percentage & Amount

Trigger Points
PR Commitment
PO Commitment
Goods receipt / Invoice Entry
Journal Entry

Budget Availability Control

Invoice Plan
Invoice Plan
allows to forecast
the cash flow by
Network Activity.
It feeds the
information to
TR-Cash Budget
Management for
corporate wide
long-term cash
flow.

Custom Report-Original Commitment

Agenda
Welcome and Introductions
System Integration Overview
PS & IM integration
PS & CO integration
PS & MM integration
PS & AA integration
Implementation Challenge
Open Discussion

Depreciation Forecast
Capital Investment Program
100
Budget:
Distributed: 100
Plan:
120
IPP 1
80
Budget:
Distributed: 70
Plan:
100

Cost Center
Plan
CO
Actual

IPP 2
20
Budget:
Distributed: 0
Plan:
20

Appropriation
Request

Investment Measure
(Order / WBS)

Plan:

Plan:
Budget:

100
Materials

PS

MM

Invoices

FI

Depreciation
Simulation

100
70
FI-AA

Actual
AUC

Fixed Assets

Custom Report-Depreciation Forecast

Investment profile
Investment Profile allows
automatic creation of AUC
upon WBS element
release. (T Code: OITA)
Plan Depreciation amount
can be simulated based on
the default asset class.
Its always good practice to
select Line Item
Settlement for good audittrail.

Final Asset Creation

Agenda
Welcome and Introductions
System Integration Overview
PS & IM integration
PS & CO integration
PS & MM integration
PS & AA integration
Implementation Challenge
Open Discussion

Implementation Challenge
Multi-currency Planning and Budgeting in USD
Workflow and Organizational Structure
Outstanding Commitment in SAP vs. Original Commitment at
AMD
GR/IR Imbalance
Conversion
Data Cleansing
Interim SAP to Full SAP conversion
Inter-company Transfer because of new FASL JV

Japanese Language Implementation

2003 Product Lifecycle Management Forum

Thank You For Attending!

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Session Code: 606