Investment Management (Q109) –�Scenario Overview

SAP Best Practices for Chemicals

1. SAP Best Practices
for Chemicals
Investment Management (Q109) –
Scenario Overview

2. SAP AG 2007 SAP Best Practices for Chemicals / 2
Overview
The Investment Management (IM) component provides functions to support
the planning, investment, and financing processes for:
• Capital investments, such as the acquisition of fixed assets as the result of-
house production or purchase
• Investments in research and development
• Projects that fall primarily under overhead, such as continuing education of
employees or establishing new markets

• Maintenance programs
The term investment, therefore, is not limited only to investments you
capitalize for bookkeeping or tax purposes. An investment in this context can
be any measure that initially causes costs, and that may only generate
revenue or provide other benefits after a certain time period has elapsed (for
example, plant maintenance).

3. SAP AG 2007 SAP Best Practices for Chemicals / 3
Features
Application module IM (Investment Management)
Application module PS (Project System)
Module IM for overall planning, budgeting and controlling of
Investment projects, Maintenance projects and operational
maintenance activities
Module PS as planning and controlling tool for individual measures
Maintenance work orders as cost collector for handling of operational
and project-related activities
Fully integrated process of Financials, Asset-Accounting, Controlling
and Plant Maintenance

4. SAP AG 2007 SAP Best Practices for Chemicals / 4
The Asset Life-Cycle
OperatingOperating
Production
Maintenance
Quality assurance
Research &
Development
Asset
retirement
Decision for
Investment
Construction
Projection
Procurement
process
Building
Assembling
EAM

5. SAP AG 2007 SAP Best Practices for Chemicals / 5
General Program structure
• Shows the structure of
the enterprise
• Based on technical
structure

6. SAP AG 2007 SAP Best Practices for Chemicals / 6
Integration IM/PS and PM
Investment program
Projects
Work
order
Maintenance program
Projects
Work
order

7. SAP AG 2007 SAP Best Practices for Chemicals / 7
Invest Program Structure

8. SAP AG 2007 SAP Best Practices for Chemicals / 8
Maintenance Program Structure

9. SAP AG 2007 SAP Best Practices for Chemicals / 9
Budgeting Maintenance
IM-Program
position
D
i
s
t
r
i
b
u
t
i
o
n
Work order
Budget
Budget
Planned
Values
Actual Costs
Active availability
check
Aggregation
assignments by
Functional
location

10. SAP AG 2007 SAP Best Practices for Chemicals / 10
Process Cost planning
Cost planning based on:
• Objects - Count / Types
• Scale of planned measures
• Components and services
• Estimation of unplanned measures
Budget
Actual
Compares Modifying
Costs:
• Workt
• Components
• other costs
Reporting
Adjustment

11. SAP AG 2007 SAP Best Practices for Chemicals / 11
Example: Scenario Plant Maintenance
CH-MAINT
BP01
PRO
OP
Program:
Projects
:
Pr 1.1
Pr 1
Pr 1.2 Pr 1.3
K1
PROD
K2 K3
Plan
Plan
Budget
Cost center
Ball system 1
BP01-PM-20
Plan
BP01
KMA
KMA1
Technical structure:
Work order
Cost center
WBS
Internal labor
Components
Settlement
to cost centger
Ball system 2Ball system 3
Operational Maintenance

12. SAP AG 2007 SAP Best Practices for Chemicals / 12
Fiscal year changing
Program position 2006Program position 2006
BudgetBudget
10001000
Distrib.Distrib.
10001000
Work order 1Work order 1
closedclosed 300300
Project XProject X 600600
Work order 2Work order 2
closedclosed 100100
J F MAM J J ASOND
2006
Program position 2007Program position 2007
Budget year before Budget year before 600600
Budget newBudget new 3000 3000
WholeWhole 36003600
distributeddistributed
Project YProject Y 10001000
Work order 3Work order 3 10001000
J F MAM J J ASOND
2007
Project XProject X
BudgetBudget 600600
+ Addition+ Addition 10001000
Year changing
new
new

13. SAP AG 2007 SAP Best Practices for Chemicals / 13
Reporting
Example: Availability Program 2006Program 2006
BudgetBudgetAct. ObligoAct. ObligoAvail.Avail.
Roll-up
BudgetBudget ActualActual ObligoObligo Avail.Avail.
Program position
assignedassigned
operative Objectsoperative Objects
Work order 1Work order 1
Work order 2
Project XProject X
Project YProject Y
1300 800 200 300
100100 2020 -- 8080
200200 180180 5050 -30-30
400400 150150 100100 150150
600600 450450 5050 100100
!

14. SAP AG 2007 SAP Best Practices for Chemicals / 14
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