Progress calculations in SAP Project system

Introduction: This blog will explain the SAP Project System progress calculations and review procedures. This post will be useful to SAP Project System users who are not currently using this feature.We strongly recommend you to utilise the services of an experienced SAP PS Consultant to perform the configuration activities related to the project progress calculations feature.Current State: You are using SAP Project System to manage your projects including planned costs, Actual costs, commitment and budget. But you are not checking the progress reports to report the project progress. You are using external systems to track your project progress. Future State: You are planning to use the SAP standard features of earned value analysis for all your projects. Hence, you are planning to complete the project progress calculation pre-requisites, master data setup and configurations. The configurations are expected to be performed by SAP Project System Consultant.Pre-requisites 1. The basic progress calculation configuration requires the following pre-requisites met • Progress versions- Maintain Progress Version

Fig 1: Maintain Progress Version

• Define Statistical Key Figure for Percentage of Completion

Fig: 2 Maintain statistical key figure

Fig 3: Maintain statistical key figure

In configuration under “Define Statistical Key Figure for Percentage of Completion” assign the Statistical Key Figures, check the assignment.

Fig 4: Check SKF assignment

Note: Please ensure statistical key figures are created for other controlling areas too.

• Define Measurement Methods as the default value

Fig 5: Define Default methods

• Maintain Assignment of Cost Element Group

Fig 6: Maintain Assignment of Cost Element Group

You will create the cost element with category 61 in SAP Easy access.

Fig 7: Cost Element creation

Master Data Setup 1. Progress methods assignment in the project objects

Fig 8: Project methods assignment in the project

2. Planning either overall costs or annual costs are a must to compare the plan vs actual in the progress calculation. 3. Posting actual costs to activities are performed as part of project execution. The “Cost Proportional” method takes into account the real cost to calculate the progress 4. The estimation process requires manual entry of progress value against the object by project team member or project manager. Please note to enter the actual progress of the individual object the object should have actual dates; you achieve this by confirmations.

Fig 9: Estimation method progress % entry

Fig 10: Estimation method progress % entry

Proper scheduling/activity confirmation will allow you to enter plan and actual POC. 5. Project team members should have performed the date scheduling.The primary dates and scheduled dates should be available on the project objects. SAP Transaction Codes to calculate project progress: CNE1- Individual Progress calculation CNE2-Collective Progress calculation (This blog will cover only Individual progress calculation)

Fig 11: Progress calculation

Reports to Verify the Project Progress 1. CNE5 – Structure Overview

Fig 12: CNE5 Report execution

Fig 13: CNE5 Report output

2. S_ALR_87015124 – Project Hierarchy

Fig 14: Hierarchy report output

3. S_ALR_87015125 – Details

Fig 15: Project progress details report output

Fig 16: Progress details report output

Progress AnalysisThe following key figures are analysed against the project objects:

  • Planned POC in percent

The planned POC is the value of the work planned. This POC value is a percentage (%) of all the work required.

Fig 17 Planned POC %

  • Actual POC in percent
 The % of work done up to a certain point in time (current period). In the estimation method, it is a value entered against the individual activity and aggregated to the level 1 WBS element. In the Cost proportional method, it is calculated automatically comparing the plan and actual costs.

Fig 18 Actual POC %

  • BCWS

The Budgeted Cost of the work scheduled is the value that represents the value of the planned activity. The system multiplies the planned POC and the overall costs to get this BCWS in the reports.The value in this example is 1500.

Fig 19: BCWS

  • BCWP
The Budgeted Cost of the work performed is the value that represents the value of the actual activity. The system multiplies the actual POC and the overall costs to get this BCWP in the reports.The value in this example is 1440.

Fig 20: BCWP

  •   ACWP
The actual cost of Work performed is the actual cost of the project up to the current period. In this example, the actual cost is 1440( ACWP)

Fig 21: ACWP

  •  Cost Variance (CV)

Fig 22: Cost Variance

Cost variance is the difference between the BCWP and the ACWP.

 CV = BCWP – ACWP (1440-1440=0)
  •  Schedule Variance (SV)
Schedule Variance (or Work Variance) is calculated as the difference between
BCWP and BCWS (1440- 1500 =-60)

Fig 23: Schedule variance

  •  Value Index (CPI)

The Value Index is calculated as the ratio of BCWP and ACWP, in our example the value index is  1500/1440=1.041

Fig 24:  Value Index

  • Estimated costs at completion (EAC)

Fig 25: EAC

EAC is the cost that is estimated as the final cost at the completion of the project

  • Estimate to Complete (ETC)

Fig 26: ETC

Estimate to Complete is the second forecasting technique that is used along with the Estimate at Completion. It is the amount of money to complete the remaining work (the work that is left after a particular period).Mobile Application for Project Progress calculation:The progress calculation and the progress view can be done on the move, and the SAP Mobile Application for the Project progress calculation is available from KSA Tech Consulting Pty Limited, Sydney (www.ksatech.com.au)