What is meant by WBS element and in what scenario, PM orders settlement rule created with category as WBS?

By: Prasanth.N

Budget: Amount of resources allocated under a particular head in a financial year.

Budget Control: Having/ creating a control on the resources allocated in a financial year.

Original Budget: The initial budget that you have allocated to a WBS element.

Supplement of Budget: One time/ discrete increment in the original budget.

Return of Budget: Taking out the unutilized portion of the budget.

Transfer of Budget: Transferring the budget among two or more expense heads.

Project Definition: A framework for a business undertaking with a fixed goal to achieve with given resources.  The project definition contains dates and organizational information that are binding for the entire project.  WBS Element: Individual structural element in a work breakdown structure (WBS) representing the hierarchical organization of an R/3 project. Describes either a concrete task or a partial one that can be further subdivided.

Proposed Business Process : Assume there are seven expense heads in maintenance department. There may be addition of expense head in near future.  Based on the maintenance heads, maintenance department will create a project in project system. This project will be used for statistical purpose only & will not have any financial implication. 

Upon creation of a project, WBS elements will be created as per the expense heads. So for each expense head, there will be one top level WBS element. Again these WBS elements will be divided in twelve WBS elements. These twelve WBS elements represent twelve calendar months. Budget will be allocated to each WBS element & the WBS element will be released from the project.

Maintenance department will create maintenance orders as per their work requirements. These orders will be settled to cost centre, which is maintained in the settlement rule. Also WBS element will have to be mentioned in each order so that the budget control can take place. So as to capture cost from each maintenance order, the WBS element field will be made ?mandatory field? in maintenance order.

So when a maintenance order is released, system will do a budget check against the WBS element mentioned. If the budget check status is OK, order is released or else it will stopped from release. If the order is stopped from release, maintenance department will have to supplement the budget. Upon supplementing, the order is released again & the maintenance cost such as, labour, material costs can be booked on the order. Again the order cost is settled to cost centre & at the same time, budget is consumed from the respective WBS element.

Every year, maintenance department will copy the previous years project so as to save time & efforts to create project & WBS elements. And the maintenance department will assign the budget allocated to each WBS element in a financial year.  It is also possible to return the unutilised budget or, transfer of budget from one WBS element to another.

- Create a project CJ20N
- Create WBS element CJ20N
- Assign Budget to WBS elementsKO22
- Display assigned Budget KO23
- Supplement Budget KO24
- Display Supplement budget KO25
- Return Budget KO26
- Display Return budget KO27
- Transfer of budget CJ34

Settlement From WBS to AUC that was created from other WBS

How can make a settlement from a WBS to an AUC that was created from other WBS ?. The system send me a message AA 311 You cannot posted to the AUC ( Investment Support Measure ). The Help told me that I need flag a WBS like a Capital Investment Measure, I search in all fields of the structure but I dont found nothing.

Go to the WBS element Control data tab and enter the investment profile field. Then it will allow you to create an AUC.

What is the correct procedure for settling the WBS element costs to an AuC & then to as asset?

For settlement to AUC settlement rule is not required.  Follow the steps:

1) For WBS element where the asset has to be created, AUC willbe created automatically when the WBS element is in release status to get this investment profile should be assigned to WBS element in Control Tab
2) You can see in the syatem status show as AUC to see the AUC number follow the path
    EDIT---> WBS element ----> Investment program----> Asset under Construction where you can see the AUc which is created automatically
3) Once the above two steps are throughfor settlement to AUC goto transaction CJ88 give the WBS element number select the processing type as partial captalization and execute all the costs pertaining to that WBS elements will be automatically settled to the AUC which is created for that WBS element

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