Investment Management

1. Investment Program Structure

2. Investment Budgeting
3. Investment Measure (order/project)
4. Use of investment measure (order/project)
5. Period end closing and reporting

1. Investment Program Structure

Investment program definition is created per approval year.
Investment program top position is created to represent the top position of structure used in
budgeting process and controls all parameter regarding assignment to company code and cost
object such as orders/WBS’s.
Investment program structure is created with subordinate nodes (Position ID) which is logical
representation of capital budgeting process and its control in the organization.
All position ids should be released to enable budgeting process.

2. Investment Budgeting
Investment budgeting process is nothing but capital budgeting process within the organization.
Budgeting is carried out with reference to investment program and is done at lower nodes.
It represents budgeted values for the activities for approval year.
a. Investment Budget Distribution
Budget values from position id are further distributed to investment measure (Order/WBS).
Prerequisite for this activity is creation of investment measure.

3. Investment Measure (order/project)

Investment measure are created as master data.
They are created with reference to order type meant for investment management.
Requisite cost center need to provide for capital expenditure.
Parameters like Company code, currency, profit center are derived automatically.
investment profile is assigned to Investment measure.
Scale and investment reason are assigned to Investment measure.
Investment program and position id is assigned to Investment measure.

4. Use of investment measure (order/project)

Investment measure are used in account assigned PR/PO/Direct Fi Booking for Asset Procurement.
Commitment and actual cost gets generated, once PR/PO/Direct Fi Booking is done.
Budget availability is checked for every transaction against investment measure.

5. Period end closing and reporting

In period end all investment measures are settled to AuC.
For all completed assets, investment measures are settled to Fixed assets.
Based on settlement profile, allocation structure, source structure settlement takes place.
Settlement triggers Fi and CO documents.
Transaction Code for SAP IM Module

IM01/02/03: create/Change/Display investment Program

IM11/12/13: Create/Change/Display investment program Position

IM22/23: Investment Program structure

IM32/33: Investment Program budgeting

IM30/31: Investment Program Budget supplement

IM38/39: Investment Program Budget return

IM52/53: Budget distribution to Investment Measure

S_ALR_87013019: Budget Actual Commitment for Investment program

Points raised by Mohhammad.

Impact of time cost, in case of varies from planned

Cost material services, category wise

Primavera, BOQ legacy system, nomenclature standard between legacy systems

Points suggested by Mandeep.

Pre Project award is not the standard functionality in sap PS system, but we can achieve it by developing
some custom business process. This will require details discussion of pre project award processes.

WBS: The WBS is a hierarchical reflection of all the work in the project in terms of deliverables.
In order to produce these deliverables, work must be performed.

Activity: WBS’s are broken into smaller, more manageable components called activities. In
general terms these are also called as tasks.