PPM or EPPM for investment controlling instead of SAP IM

[bjoern_hansen1]

Hi all,

I have heard, that SAP IM (investment management) is not the target architecture by SAP, but EPPM (or PPM?).

a) is this true?

b) where can I find an official statement like this?

c) customer has already PPM, but needs similar functionality like SAP IM, problem: e.g. an IT project has 80% OPEX and 20% CAPEX. Capex shall be planned/budget/reported in an own structure (like IM23). I was told, it is not possible to assign a project or WBS element to 2 different hierarchies (portfolios?) in PPM. this should be a common situation at customers...

Any help highly appreciated

best regards

Bjoern

[bjoern_hansen1]

Hi Ken,

thanks for your answer. On PS side everything is clear to me. General recommentation is to have 2 different WBS for CAPEX and OPEX (even if this needs reposting of costs).

this leads to the question: I have a clear assignment of WBS elements (object class) to CAPEX or OPEX. CAPEX is centrally managed (investment controlling). Availability control is not needed in ERP/S4, but reporting on planned and "used" investments = actuals on CAPEX WBS elements.One site currently uses SAP IM (IM23) with IM32 and IM52...

Beside availablity control, which is not required, the question is, if eppm (is that the new functionality in S4?) can provide this kind of functionality, like top down allocation of budget (=plan figures in S4/ERP)?

Is this something the classification could provide as kind of "alternative hierarchy"?

many thanks!

br Bjoern

[Ken_Melching]

EPPM is the latest license that includes PPM and CPM.

PPM has functionality called Alternative hierarchies or Classification Hierarchies. An individual Portfolio Item (which usually equates to a single project) can be proportionally assigned (split) to the Classification Hierarchy. That is where you would achieve the reporting construct of a split between Capital and Expense.

How you account for the split in the executable project can be achieved in several ways. One way is to use split settlement rules on a WBS (80% settles to an AuC, 20% settles to a cost center). Or you can create 2 WBS elements, one to settle to an AuC and another to settle to a cost center. This method means that the incoming charge has to be split to the 2 WBS elements which is harder to manage.

Active Budget Control on a PS Project hasn't changed, you still use the Budget Profile. And the Investmenr Profile is still used to generate the AuC automatically.

For future direction of SAP products you can check the Simplification List for S/4HANA or look up SAP Roadmap Explorer. IM hasn't had any new development is some time.