WBS Elements

[Former Member]

What are wbs elements in SAP. What is the different b/w internal orders and wbs elements.

[Former Member · Accepted solution]

hi

WBS is nothing but Work Breakdown Structure. It is mainly used in Project System (PS) module. Tcode : CJ20N

For any project defined we must have atleast one WBS. Within this WBS we can have networks. Networks are nothing but the series of activities. Material are used to perform the activities.

To explain in detail just consider one example:

Govt of india wants to have Roads to be build through out the india. So Project can be defined in sap as "Connectivity".

WBS can be roads within different states like Roads for Gujarat, Karnataka etc.. i.e. WBS Gujarat, WBS Karnataka etc.

We can define different networks for these WBS like Road Between Ahmedabad to Surat or Between Bangalore to Belgham.

For this network we can have many activities like Land selection, Land Preparation, Road Building, Final finishing etc etc.

Hemal's example was a good example. Project Systems comes into play only when the industry's business is based on projects like... Construction companies, Engineer to Order scenarios. You may not see anyone using PS module for retail business. As Hemal explained in that example, you have a main project which is broken down into WBS elements. You can use the TC CJ20N to create the project and the WBS elements. Each WBS may have mutiple Networks associated and each Network may have multiple Network Activities as explained in the example by Hemal.

On the Sales Order, if your client is implementing PS module, you may have to attach the Sales Order to the WBS element it belongs to. WBS element is nothing but a bucket where all the activities belonging to that particular part of the project are captured. In the example, WBS Gujurat will tell you how many Sales Orders were created for the Gujurat sector, howmuch was spent on raw materials, what's the currect stock ([roject stock) available. How many Production Orders have been confirmed and howmany of them are getting confrmed in the future. How many invoices have been generated or how much revenue has been generated for that particular sector. How many deliveries have been made, what deliverables are still not accomplished.

So as you can see, PS is the center stage for all the modules that are being implemented like FI/CO, SD, MM, PP in this example. You can have cost centers and work centers defined. You can also have profit centers assigned at the plant level and get reports on varius selection criteria.

In a complete cycle of PS, like in reality, you initiate a project, you confirm/release the WBS/activities as per requirement, you execute the project and you close it.

One cannot initiate an activity unless it has been released by the project manager. Everything is accountable here and every dime is counted and at the end you know howmuch did you spend or make on each sector (WBS). Dont get confused with the term sector here... I am using it just for the explaination purposes.

In one typical example, the company I was working with until not too long ago, had Deliveries from the Project (TC: CNS0). We never used VL01N. We used CNS0 to create a delivery and then used VL02N for confirming the picking quantity for the already created delivery document.

I hope this should help you at least a bit. I'm not a PS consultant so I may not know a whole lot but trying going to CJ20N and you will see a lot yourself.

PS concultants are one of the highest paid consultants. Their supply is less and so is the demand. They are expected to understand real world business processes very well and they are generally the center stage of a project.

for furthur notes

http://help.sap.com/erp2005_ehp_03/helpdata/EN/4c/225e1d46e611d189470000e829fbbd/frameset.htm

http://help.sap.com/erp2005_ehp_03/helpdata/EN/4c/225d5a46e611d189470000e829fbbd/frameset.htm

http://help.sap.com/erp2005_ehp_03/helpdata/EN/4c/225e2a46e611d189470000e829fbbd/frameset.htm

for Internal oerder

Purpose

Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving:

Implementation Considerations

Order management within a company usually differentiates between sales-oriented orders, and internal orders. Sales-oriented orders (production or sales orders) are intended mainly for the logistical control of input factors and sales activities. Internal orders are categorized as either:

Orders used only for monitoring objects in Cost Accounting (such as, advertising or trade fair orders)

Productive orders that are value-added, that is, orders that can be capitalized (such as in-house construction of an assembly line).

Internal order management is the most detailed operational level of cost and activity accounting. It can be used for:

Cost monitoring, for example, where costs need to be looked at from object-related aspects, unlike in Cost Element Accounting or Cost Center Accounting

Assisting decision-making, when you need to decide between in-house production and external procurement

An enterprise’s internal orders can be used for different controlling purposes. For more information, see Classified by Controlling Objectives .

Features

You can use master data to assign certain characteristics to your internal orders, which enables you to control which business transactions can be used with the internal order.

Internal order planning enables you to roughly estimate the costs of a job before the order starts and to make an exact calculation at a later date. You can choose between various planning approaches to compare the effectiveness of different methods.

You can assign and manage budgets for internal orders.

You apply the actual costs incurred by a job to your internal orders using actual postings. In Financial Accounting, you can assign primary cost postings (such as the procurement of external activities and external deliveries) directly to internal orders.

In period-end closing you can use various different allocation methods (for example, overhead costing) to allocate costs between different areas of Cost Accounting.

Order settlement enables you to transfer the costs incurred by an order to the appropriate receivers.

The information system for internal orders enables you to track planned and assigned costs on your orders in each stage of the order life-cycle.

You can archive internal orders that you no longer require. See Archiving.

for furthur notes

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/COOMOPA/COOMOPA.pdf

http://help.sap.com/erp2005_ehp_03/helpdata/EN/cd/238f38661fca77e10000009b38f842/frameset.htm

nagesh

[Former Member]

Hi,

WBS stands for Work Brek down Structre.

In SAP WBS and IO both are cost objects.

Cost object can capture costs/expenses.

WBS associates with Project systems where as Internal orders associstes with CO.

Internal orders are of two types. Real and statistical.

Real orders carries cost and can be settled to another cost objects where as statistical orders are for informative/analysys purpose only. An example for Real orders are capturing costs for asset Capitalisation and for statistical is capturing the cost incurred per vehicle.

Both WBS and IO need to be settled periodically.

You can control the expenditure by way of budgest in both the cases.

As WBS elements are associated with Projects, you will be able to use the objects only when PS module is implemented. A detailed plan anc control are possible in PS as against the Internal Orders. You can go upto activity level planning etc.,

Reward if useful.

Sarma

[Former Member]

Can anyone help me about mining contractor?

We already use CO and PP module

and they also want to use PS to analyze cost for each project

as my consideration, this can be done through cost center analysis as they also have cost center structure for their project.

is there anyone can help me bout best practice in mining contractor?

[Former Member]

Hi Deepti,

Internal orders & WBS Elements both are cost objects in controlling. But WBS Elements have some more advantage over Internal orders....

In a Project With WBS element you can create a strcuture

to book the cost on different heads. The budget allocated for Project can be distributed to various WBS elements and helps in monitoring the cost at WBS level as well as Project level.

If you use Internal orfer each WBS become an Internal order. You cannot distribute the budget for several orders.

WBS elements also help you to plan material & resource by using activities.

Venkat

[Former Member]

Both r used in sap system for capturing the expenses