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SAP PS-MM enterprise structure for Construction industry

837

Hi,

My query is about MM enterprise structure for the Construction industry for PS module. i have searched a lot in the forum and not found any suitable suggestion. So here i am posting my query, please reply as per your real implementation experience in PS module for any large construction industry/business.

My company is doing around 60+ construction projects for government and private customers. each project length is ~3 years. every year we get around 8 new projects and deliver around 6 projects. While doing enterprise structure for MM, the PS consultant suggested creating 1 plant per project, which is the easiest solution (i think). But my argument is if we create a plant for each project then every year the plant number will keep on increasing and after 5 years it will add more ~50 plants and total plat will be 110+ (Active+Inactive) and each time we need to involve consultants to create plants and related configuration and extends materials.

I believe SAP PS is robust enough to handle this kind of industry, Please suggest to me what is the best practice for the construction industry, in terms of project-wise storage location, valuation as each project in a different location and having a full setup like several storage locations, machines, equipment, offices, accounts, maintenance, Admin etc.

Thanks

RAIM.

ramu_entapps
Explorer
0 Kudos

Hi RAIM

The org structure is important factor. it should not change frequently like by Project completion or new project. Another option can be go for plant as region to manage and later use storage location to work in the Project site which may change. Also look at the demand and supply considerations to satisfy the the project needs.

Hope that helps.

Regards

Ramu Kengua

0 Kudos

Hi Bhoomika,

My query was what is the best practice as per SAP for the construction industry as for this type of industry they do all projects for customers not CAPEX.

IF we choose option 2: all projects under 1 plant, then can we get separate MAP (Moving Average Price) for the same material in different project-wise storage location?

for example. Plant code 1000, Material code 20000 - Sand. Project code - X, Y, Z. Scenario is all project procures Sand locally, so price differs project to project. that is, under Plant 1000 for material 20000-Sand, under Project X WBS will have 100$, under Project Y WBS will have 90$, under Project Z WBS will have 109$ ?

And for Option 2, what I understood is like below will be the Enterprise structure, Thats mean we have to create project-wise several storage locations to manage stock and reports, Please share the best practice for Option 2 enterprise structure.

Thanks,

RAIM

Paulo_Vitoriano
Active Contributor
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Every WBS with Valuated Project Stock is managing its own MAP. Please refer to the system documentation, you keep on asking exact same question many times in different variants. Just prototype and test if you have doubts, involve MM colleague if necessary.

The answer above does not touch on Valuated Project Stock, so it might be misleading. Your best friend is SAP Help.

Accepted Solutions (0)

Answers (3)

Answers (3)

Paulo_Vitoriano
Active Contributor

Hi Imran,

The system process has to be designed as multiple options are possible.

You can have a special WBS structure where each WBS represents a Valuated Project Stock.

Anyway all your projects need to manage valuated project stock to have it separated from the plant valuation.

Regards,

Paulo

BalaAP
Active Contributor
0 Kudos

I guess this may be a decision for "logistical convenience" rather than easy configuration. Are you not using "project valuated stock" indicator (PRPS-KZBWS = M)?

The requirement may be for uniform price update of material for the entire project (because, valuated project stock will update the material price based on WBS (not at project level), if MAP price is set for the material which you are procuring.

As Paulo suggested, you can have plant/valuation area for multiple similar projects, instead of 1-to-1 mapping. You need to clarify with your MM consultant in an elaborated way.

Please suggest me whether I am talking logical?

Paulo_Vitoriano
Active Contributor
0 Kudos

Hi Imran,

One plant per project is a very bad idea, not sure where it is coming from.

Instead use a valuated project stock to manage multiple "valuation areas" within same plant.

Regards,

Paulo

0 Kudos

Hi Paulo,

Thanks for your suggestion, Can you please describe the process bit more steps, How can we have project-wise valuation area ?

Thanks

RAIM

Paulo_Vitoriano
Active Contributor

Hi,

Each WBS with a valuated project stock will represent a segment with its own valuation (different from the plant valuation), so the price of materials will be calculated at the WBS level (special stock category). Those materials will be also reserved by the project, so cannot be consumed elsewhere until transferred to the unrestricted stock.

Regards