FIND YOUR EDGE Americas' SAP Users' Group Kent Bettisworth, ASUG PME SIG Chair, BETTISWORTH & ASSOCIATES Tom Martin, PPM Solution Architect, ProPPM Corporation December 18, 2013 11AM Eastern/10AM Central/9AM Mountain/8AM Pacific Best Practices for Year-end Closing with SAP’s Project Portfolio Management (PPM and/or IM) and Project Systems (PS)
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ASUG Webcast-Best Practices for Year-End Closing With SAP's Project Portfolio Management (PPM) and Project Systems (PS)_December 2013
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The recording and slides will be posted to the ASUGwebsite
Hosted in Discussions in the workspace for host community Link can also be found on the Event Page All participants will be emailed the link to the recording and slides
Use the for questions throughout the webcast
Panelists will answer questions in this forum We’ll take questions from here at the end of the presentation
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Managing projects and portfolios is much easierwhen you successfully ‘close’ the prior year in SAP
Walk with us through the best practices required fora proper and successful year-end close
Compare Investment Management (IM) to ProjectPortfolio Management (PPM) year-end budgetingprocesses
Learn to avoid the mistakes that break next year’sbudget reporting
This session will challenge what you know aboutyear-end closing in the Portfolio and Project modules
Introduction
Learn the best practices for a successful year-end‘close’ for portfolios and projects
Comprehend Portfolio and Project Management and(PPM) Investment Management (IM) differences
Avoid year-end mistakes that break next year’sbudget reporting
Audience: Technical and Business
Level : Intermediate
Learning Points
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Portfolio and Project Lifecycle Processes
PPM and IM differences
Portfolio Item versus Appropriation Request Financial Views versus Plan Versions / Budget Custom PPM & IM Integration
New year budget reflects management’s top-downdirection (for next year and future years)
Program funding structures and allocations are up-to-date
Top-down and bottom-up gap is measurable
Portfolio wish list is refreshed and plans and status current New projects approved and funded, if 1st quarter start Active project plans, budgets, and status are up-to-date Project commitment delivery dates are up-to-date
Advance Commitments funded for Future Years
Future years are budgeted and funded
Depreciation forecast is current
Projects are closed and placed in-service Forecast in-service date updated for on-going and new projects
A Successful Year-end Close is…
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AnnualBusinessPlanning
ProjectSelection
ClosingProjectCreation
ProjectExecution
Month-EndProcessing
StrategicPlanning
Long-term strategicplanning is entered intoPortfolio Items
Best Practice 1 - Strategic Planning
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Portfolio Structure versus IM Structure
PPM and IM both use hierarchical structures
IM = one structure PPM = unlimited structures (one primary and many
classifications)
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AnnualBusinessPlanning
ProjectSelection
ClosingProjectCreation
ProjectExecution
Month-EndProcessing
StrategicPlanning
‘Top-Down’ Planning can beentered annually, quarterly
‘Bottom-Up’ Planning isaggregated from portfolioitem level into buckets bymonthly period
Best Practice 2 - Annual Planning
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Step 1 - Plan Costs in PPM Portfolio Item
Plan Costsin Portfolio
Items
Roll-upProjectPlanned
Costs
TransferPlanned
Costs to IM
Set Budgetin IM
TransferBudget to
IM
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Step 2 - Roll-up Project Planned Costs
Plan Costsin Portfolio
Items
Roll-upProjectPlanned
Costs
TransferPlanned
Costs to IM
Set Budgetin IM
TransferBudget to
IM
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Best Practice 3 - PPM and IM Plan Integration
Real-time integration ofplanning and budgeting databetween PPM and IM
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Step 3 – Transfer Planned Costs to IM
Plan Costsin Portfolio
Items
Roll-upProjectPlanned
Costs
Set Budgetin IM
TransferBudget to
IM
TransferPlanned
Costs to IM
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Best Practice 4 – PPM/IM Financial Integration
PPM Financial Categories, Groups and Views offerpowerful visibility of global capital budget vs spend
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Step 4 and 5 – Set IM Budget, Transfer to PPM
Plan Costsin Portfolio
Items
Roll-upProjectPlanned
Costs
TransferPlanned
Costs to IM
Set Budgetin IM
TransferBudget to
PPM
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Best Practice 5 – Distribute Budget to Projects
Budget distribution to projects istriggered by Portfolio Itemstatus
IM52 distribution is performedautomatically in the background
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Portfolio and Project Lifecycle Processes
PPM and IM differences
Portfolio Item versus Appropriation Request Financial Views versus Plan Versions / Budget Custom PPM & IM Integration