Creating a project

Creating a project

Open: Projects > Projects > Project management

You use the Project management function (GESPJM) to define the details of a particular project or job your company is working on. A project forms a fundamental part of the billing contract.

To create a new project, click New.

1. Complete the project header information fields in the Home section:
   1. Sales site: Sales sites are maintained in the Sites function (GESFCY) (Setup > Organizational structure > Sites).

   The Sales site is the site from which your project is managed. Type in or select a site for your project from the Sites table (FACILITY). This site must be defined on the same company as the Operating site.

   The Sales site is mandatory.

   2. Operating site: Operating sites are also maintained in the Sites function (GESFCY).

   The Operating site is used as the default value when creating a new task. The Operating site must be defined on the same company as the Sales site.

   The Sales site and Operating site must be defined on the same company.
   3. Project: Type in a project number (or code), or leave blank to generate the next number on file.

      The Project number, if generated automatically, uses the PJM - Project mangement sequence code.

   4. Status: Indicates the current stage of your project in the project cycle.

   New is the default status for new projects. The values are defined in local menu 2249 - Project status.

   Do not amend or delete the values in local menu 2249 - Project status.
   5. Description/Short description: You can add both long and short descriptions.

   The Description field is mandatory.

2. Complete the fields in the General section giving the details of the project:
   1. Customer block:
      1. Customer: Type in or select a customer for your project from the BP Customers table (BPCUSTOMER).
      You cannot modify your customer if a sales document linked to your project has been created.
   2. Contact (relationship): Use this field to identify the contact within your customer's organization that can be contacted about this project. This field defaults to the contact associated with the defined customer in the Contacts (relationship) table (CONTACTCRM) but can be amended.
   3. Sales rep: Type in or select a sales representative for your project from the BP Sales rep table (SALESREP).
   2. Type block:
      1. Category: To group this project with similar projects, type in or select an appropriate project category. The values are defined in miscellaneous table 434 - Project category.
      2. Internal/Provisional/Template: Select the check box that best describes your project. You can use template projects as a model for creating new projects.
   3. Project dates block:

      The fields in this block work together to define a valid start, and planned end date for your project. The dates are determined by the project operational tasks, and the operating site calendar (Operating site field).

      1. Start date/End date: These dates are updated automatically to reflect the dates for the project operational tasks. The planned start date for your project must be consistent with, and match, the earliest task start date; the planned end date must be consistent with, and match, the latest task end date. The dates can be controlled by the OPPDATUPD - Project dates adjustment parameter (TC chapter, PJM group).
      2. Due date: Type in the date you expect this project to be delivered.
      3. Duration: Type in the number of days you expect this project to take to complete.
      If the Duration is modified, the End date is recalculated automatically based on the Start date.
   4. Management block:
      1. Currency: Currencies are maintained in the Currencies function (GESTCU).

      This field defaults to the currency associated with your defined sales site (Sales site field). You cannot change it once you have created your project.

      The Currency code is mandatory.

      2. Overview currency: Currencies are maintained in the Currencies function (GESTCU).

      This field defaults to the currency associated with the defined sales site (Sales site field) but can be amended.

      This field provides the default currency for the financial overviews.

      The Overview currency code is mandatory.

      3. Rate type: Select the exchange rate type to be applied to all project charges (that is a daily (current/spot) exchange rate, an average exchange rate or a monthly exchange rate).

      The values are defined in local menu 202 - Exchange rate type.

      Do not amend or delete the values in local menu 202 - Exchange rate type.
      4. Indirect cost overview: Select this check box if you will manage indirect costs for your project. The indirect costs will be defined by cost type.
         
      5. Budget auto. creation: This check box defaults to the value defined in the TASBUDAUT - Budget automatic creation parameter (TC chapter, PJM group).
      You can create a simple cost structure using the project budget automation functionality. With the Budget auto. creation check box selected, a new budget code is created when an operational task is created.
      6. Budgeting intermediate levels: Select this check box if intermediate levels of the cost structure can be defined as chargeable.

      If only the lowest levels of the cost structure are chargeable, clear this check box.

      Selecting the Budgeting intermediate levels check box permits budget codes to be manually defined as "chargeable".
      If chargeable budget lines and expenses are defined for intermediate levels of the cost structure this can result in a more complex financial follow-up being required. However this can be useful for some projects.
      You cannot modify the Budgeting intermediate levels check box once the budgets have been set.
      7. Person responsible: Select the person that has overall responsibility for delivering this project.
      This employee will be automatically added to the list of employees assigned to your project (see step 4).
      8. Estimated progress (%): This figure represents the estimated progress of this project against the budget. Entry is controlled by the ESTPRGMET - Bud/proj progress estim method parameter (TC chapter, PJM group). See Estimating project progress.
      9. Progress range: Optional. Select the code that best represents the estimated completion percentage of this project. The values are defined in miscellaneous table 385 - Progress range. The range you select will update the Estimated progress (%) field by the default rate defined in the miscellaneous table. See Estimating project progress.
      10. Progress billing: Select this check box to use progress billing as an invoicing process for billing the customer for this project according to its progress. Progress billing will use the Estimated progress (%) for scheduled invoices to determine the amount to bill the customer.
   5. Financials block:
      1. Accounting code: Type in or select an accounting code for your project from the Accounting codes table (GACCCODE). A Project accounting code value is available, if required.
      2. Revenue recognition rule: Type in or select from the Revenue recognition rules table (REVREC) the method this project will use to calculate the values that should be recognized and then posted to the revenue and cost accounts.
      3. Estimated revenue at completion/Accounting currency: Entry of the Estimated revenue at completion field is controlled by the ESTREVMET - Revenue estimation method parameter (TC chapter, PJM group). Click the Refresh icon if this field can be calculated automatically. Alternatively, if this field is updated manually, type in the total revenue you estimate you will receive for your project.
      If this field can be updated both manually and automatically, you could set an initial estimated revenue value for your project manually then periodically refresh the value once sales orders have been linked to your project.
   6. Description/Comment: These are free format-text fields. You have unlimited characters with which to add information to support your project.
3. To create your project, click Create.

The project number (Project field) is generated automatically using the PJM - Project mangement sequence code.

At this point you have defined the core details for your project. It is a good idea to save those details now. Click Create.
4. Now add the list of employees that are assigned to your project to the table in the Assigned employees section.

Type in or select from the Users table (AUTILIS), the list of employes to be assigned to your project. The user’s role is defined on their user record (maintained in Setup > Users > Users (GESAUS)).

Your list of assigned users is for information only. It is only used for filtering data for some specific selection lists.
A user must be defined as active on projects on their user record to be assigned to project tasks.



Project management (GESPJM): Assigned employees section

5. Add any project codes that are associated with this project to the table in the Associated projects section.

For each associated project that can be consolidated with this project in the Financial overview (using the Financial overview function (PJMFINOV0)), select the Consolidation check box.

6. Add any competitor tender information to the table in the Competitors section:
   1. Competitor: To group this project with similar projects, type in or select appropriate competitor codes. The values are defined in miscellaneous table 418 - Competitors.
   2. Competitor amount: The value of your competitor’s tender.
   3. Strengths/Weaknesses: Describe your competitor’s assets (strengths) and weaknesses.
7. Finally, assign the analytical dimension codes for your project to the table in the Analytical dimension section.
To track Project management costs in finance, you can create analytical dimensions for each project code and each cost type.
The Dimension type for the project must have an "analytical dimension" value.

Analytical dimension codes are maintained in the Dimensions function (GESCCE) (Common data > G/L accounting tables > Analytical > Dimensions).

Type in or select analytical dimension codes for your project from the Dimensions table (CACCE).

An analytical project dimension code can be created automatically for dimension types flagged as Project management, if the PJTAUTCRE - Create project dimension parameter (TC chapter, PJM group) is set to Always. Note that the conditions outlined in step 5 for the Financial data overviews must be met, however.

You are offered a choice of whether or not to create the dimension code if PJTAUTCRE is set to Confirmation.



Project management (GESPJM): Analytical dimension section

You can now define a cost structure for your project.

Project cost structure

You create the cost structure directly from your project.

To define a cost structure for your project, click Cost structure.

A cost structure can be multilevel:

1. The top (or parent) level is used to group and consolidate the sub-levels.
2. The intermediate levels also provide the opportunity to consolidate the lower levels to manage costs and track budgets.
3. The lowest levels, or the levels manually defined as "chargeable" in the cost structure are considered to be expense items such as a product, expense note, Business Partner invoice, time records.

To add a new budget code below the current (highlighted) level, click Create sub-level.

Reminder: Cost structureThe cost structure must mirror the financial reporting for the company.

Project management (GESPJM): Cost structure

• You can link each budget level with none (zero) or many (N) lower levels.
• Each budget level can be either chargeable or non-chargeable. The lowest levels are defined as chargeable, by default.
• You can only amend the Chargeable check box on an intermediate budget level if you selected the Budgeting intermediate levels check box in the General section.
• You can only link to a chargeable budget from an operational task or a document (using the Project field).
A chargeable budget code is, by definition, an active project link available for selection from a document.
A non-chargeable budget code is simply a consolidation level in the cost structure.
• The budget code, if generated automatically, uses the BDG - Budget code sequence code.
• Each budget code at each budget level can have a different status. When the project is launched the budget code status is set to Open.
• The budget site (Site field) defaults to the financial site associated with the defined operating site (Operating site field) for the project but can be amended.
The budget site must be a financial site.
• You can assign a person (Person responsible field) to have overall responsibility for managing costs for each budget code at each budget level.
This employee will be automatically added to the list of employees assigned to your project (see step 4 of Creating a project).
• You can assign a project-related labor time category to each budget code at each budget level. When recording labor time against the specific budget code, the appropriate time category is displayed for new time entry lines, by default.
• Budget codes are listed in order of creation, by default. For example, B01, B02. You can use the Sort key field to apply a numerical sort order to the Budget code field at each budget level. Alternatively, you can leave the Sort key blank to use the default sort order, or change the Sort key value to reorder a Budget code.
• The estimated financial progress of a budget code is represented in the Estimated progress (%) field. Entry is controlled by the ESTPRGMET - Bud/proj progress estim method parameter (TC chapter, PJM group). The Estimated progress (%) field is updated automatically by the default rate defined in miscellaneous table 385 - Progress range, if you select a Progress range code that best represents the estimated completion percentage of the budget code. Using the Progress range is optional.
  Progress billing uses the estimated progress of a budget code represented in the Estimated progress (%) field to determine the percentage and amount to bill customers. To use progress billing as an invoicing process for billing for this project according to progress against a budget code select the Progress billing check box. See Estimating project progress.
• The sequence number (Sequence number field) is generated automatically using the PBU - Project management project budget sequence code. This sequence number is used by the Manufacturing module to track work in progress orders associated with a budget code.

Use the Budget lines section to add expense forecasts to chargeable budget codes. That is, add one budget line per type of cost you plan to track for the chargeable budget code.

Budget lines

• Each budget line at each chargeable budget level can be assigned to a cost type.

Reminder: Project cost typesProject cost types define types of cost that can affect a project such as raw materials, labor costs and expense notes.

• Use a labor cost type to track workload and time spent on projects, such as on project task operations and work order operations.
• Use a material cost type to track all product-related costs, such as purchasing products and issuing stock to work orders.

Valuation of these cost types takes place in the Purchasing and Manufacturing modules respectively.

• Use an accounting expense cost type to track direct financial costs and overheads, such as expense notes, BP invoices and time records.
For each budget line, if the cost type calculates a value it will be applied. All other costs must be entered manually.

Project management (GESPJM): Budget lines, mandatory Cost type

• If the budget line is a labor expense, you must define a quantity, a time unit and an amount.

The amount is calculated automatically if a labor rate is defined for the cost type. Different labor rates can have different activation dates.

• If the budget line is a material expense, you must only define an amount.
• Manually entered budget lines display the value Manual in the Source column.



Project management (GESPJM): Budget lines, Budget source

You can now define an operational structure for your project.

Project operational structure

You create the operational structure directly from your project.

To define an operational structure for your project, click Task planning.

An operational structure can be multilevel:

1. The top (or parent) level is the macro task.
2. The intermediate levels provide the opportunity to group tasks together. Intermediate levels also enable a set of tasks to be launched simultaneously, for example, launching a parent task will also launch its child tasks.
3. The lowest levels in the operational structure are considered to be expense tasks, that is labor tasks, material tasks or combined labor/material tasks.
   1. Labor tasks such as design phases or assembly are operational tasks. Labor tasks support time management.
   2. Material tasks are product requirement-orientated, such as products or bills of material requirements.

All tasks are defined by a type - provisional or operational - and a category - labor, material or mixed.

To add a new task below the current (highlighted) level, click Create sub-level.

Project management (GESPJM): Operational structure

• You can link each task with none (zero) or many (N) lower level tasks.
• You must link each task that is to be launched with a chargeable budget code. The budget code is initialized by default for sub-level tasks.

Reminder: Budget codesEach budget code represents a financial phase of the project.

To automatically create and link a new budget code that mirrors a task code, leave the Budget code blank and select the Budget creation check box.

• The task code, if generated automatically, uses the TSK - Task code sequence code.
• Each task at each level can have a different status.
• The task site (Site field) defaults to the defined operating site (Operating site field) for the project but can be amended.
The task site must have the same financial site as the budget site.
• The date and duration fields work with the site calendar to automatically define a valid start and planned end date for your task.
1. Start date/End date: Type in either the planned start date for your task, or the planned end date.
The Start date is calculated automatically if the End date and Duration are defined; the End date is calculated automatically if the Start date and Duration are defined.
2. Due date: Type in the date you expect this task to be delivered.
3. Duration: Type in the number of days you expect this task to take to complete.
If the Duration is modified, the End date is recalculated automatically based on the Start date.

The dates are controlled at the different task levels to ensure date consistency of a branch. They can also be controlled manually using Adjust task dates from the Actions menu for a single task, or the Adjust all dates action from the Action panel.

• You can assign a person (Person responsible field) to have overall responsibility for managing progress of each task at each level.
This employee will be automatically added to the list of employees assigned to your project (see step 4 of Creating a project).
• You can assign a project-related labor time category to each task at each task level. When recording labor time against the specific task, the appropriate time category is displayed for new time entry lines, by default.
• Task codes are listed in order of creation, by default. For example, T01, T02. You can use the Sort key field to apply a numerical sort order to the Task code field at each task level. Alternatively, you can leave the Sort key blank to use the default sort order, or change the Sort key value to reorder a Task code.
• The estimated operational progress of a task is represented in the Estimated progress (%) field. Entry is controlled by the ESTPRTMET - Task progress estim. method parameter (TC chapter, PJM group). The Estimated progress (%) field is updated automatically by the default rate defined in miscellaneous table 387 - Progress range, if you select a Progress range code that best represents the estimated completion percentage of the task. Using the Progress range is optional.
  Progress billing uses the estimated progress of a task represented in the Estimated progress (%) field for scheduled invoices to determine the percentage and amount to bill customers. To use progress billing as an invoicing process for billing for this project according to progress against a task select the Progress billing check box. See Estimating project progress.
You can choose to update parent tasks if you update this field manually.
• The sequence number (Sequence number field) is generated automatically using the TAS - Project management project task sequence code. This sequence number is used by the Manufacturing module to track work in progress orders associated with a material requirements task.

Use the Activity section to define the details of a labor task and assign employees to the task.

Use the Products section to define the details of the required materials, if the task is a material requirement.

Activity section

You can add multiple operations to each task.

When you add task operations to your project, default details for new labor tasks are provided if defined for the assigned task category. You can amend the default details as required.

• You must assign task operations to a resource (work center). You must also define the planned load and time unit.

You can assign two resources to the same operation. For example, both a labor resource and a machine resource might be required to complete an operation. The valuation for the operation will be the total cost of the first resource plus the cost of the second resource.

• The task operation valuation can be driven according to the PJMOPECST - Operation labor rate priority parameter (TC chapter, PJM group), that is, the labor rate can be initialized based on the costing dimension rate or the cost type rate.
• Operation dates must match the start and end dates defined for your task.

The date and duration fields work with the site calendar and the resources calendar to automatically define a valid start and planned end date for your task operation.

1. Start date/End date: Type in either the planned start date for your task operation, or the planned end date.
The Start date is calculated automatically if the End date and Duration are defined; the End date is calculated automatically if the Start date and Duration are defined.
2. Duration: Type in the number of days you expect this task operation to take to complete.
If the Duration is modified, the End date is recalculated automatically based on the Start date.

Task operation dates are controlled by the shift patterns assigned to the resource, the fixed working patterns that include working days and non-working days within a 7-day week, defined in the Weekly structures (GESTWD) and Time table schemas (GESDIH) functions.

To assign employees to your task operation, click the Link icon in the Assign column.

Click the Link icon in the Assign column to display a detailed entry screen. You can also change the status of the task from this screen.

• You can assign multiple employees to each task. Each employee you assign to a task is added to the list of assigned employees for the project (project Assigned employees section).
• You can only assign employees defined as active on projects to tasks. The user is activated using their user record.
• You must match an employee’s assignment dates with the start and end dates defined for the task. The assignment start and end dates, and times, are calculated using the weekly structure defined on the employee record.
• You can assign a project-related labor time category to a task operation and to an employee assigned to the operation. When recording labor time against the specific task operation sequence number, the appropriate time category is displayed for new time entry lines, by default.
• The cumulative planned and remaining load quantities, that is for all employees, must match or be less than those defined for the operational task line.

Project management (GESPJM): Operational tasks

Project management (GESPJM): Operational tasks detailed entry screen

Products section

• Material requirements tasks can be for a finished or semi-finished product. You can define one, or multiple products for each task. For each product you can define the required quantity, required date, the method of consumption (delivered or sold), the primary and a secondary budgeting method (standard cost, budget cost), and for purchased products, a forecast cost as a manual budget figure. If the product is available in stock you can manually allocate it in full, or in part, to the project. The availability date of the product (based on the product receipt date) is provided. If an assignment rule with a standardized project priority has been defined for the product, stock is allocated automatically.
Product alerts are provided to assist with planning. An alert might display where a product requirement date is before the availability date, an order quantity is less than the required quantity, or an order quantity is greater than the required quantity. Alerts are displayed for material requirements tasks at all statuses except Closed.
• Material requirements tasks are automatically included as planned or firm material tasks in Material Requirements Planning (MRP) calculations, according to the task status. All orders and suggestions generated by the MRP calculations are linked to the project task.

• Once allocated, material requirements tasks can be consumed using multiple flows.

You use the Consumption mode field (CSMTYP) to select the product for delivery documents.


1. For a billable product delivery you can use a standard sales order flow.

Set the Consumption mode to Sales order. You will have to create a sales order line for the product linked to the material task in order to deliver the product and consume the stock.

2. You use a non-billable product delivery flow to consume the product allocated on the task.
Use this flow:
• If you want to detatch the invoicing flow (sales orders) from the material flow (product deliveries). For example, when invoicing flows are based on scheduled invoices, or progress billing.
• When the product must be delivered to the customer site.
• When you want to consume the product attached to the task internally on the project - you will need to use an internal "dummy" customer to receive the delivery.

Set the Consumption mode to Direct delivery.

You can manage non-billable deliveries from the Sales module using the Deliveries (GESSDH), and Customer returns (GESSRH) functions. The Deliveries function includes a dedicated non-billable Task selection picking list from which you can create the delivery transaction.

Project management (GESPJM): Material tasks

Predecessors section

For tasks that depend upon the start or completion of a different task, whether that task is a precursor or a successor, and in the current project or a different project, you can use this section to manage constraints that must be considered when planning the project operational structure.

For each task that is dependent upon a different task, assign one of four Link types to the task, plus a Constraint type:

End to Start - The task cannot begin until the linked task that it depends upon is complete. Controls are applied that ensure the start date of the task is later than the end date of the linked task.

Start to Start - The task cannot start until the linked task that it depends upon has started. Controls are applied that ensure the start date of the task is later than or equal to the start date of the linked task.

End to End - The task cannot be completed until the linked task that it depends upon is complete. Controls are applied that ensure the end date of the task is later than or equal to the end date of the linked task.

Start to End - The task cannot be completed until the linked task that it depends upon has started. Controls are applied that ensure the end date of the task is later than or equal to the start date of the linked task.

Flexible - The dependent task start/end date should be observed. A warning is displayed but the task can start/finish.

Strict - The dependent task start/end date must be respected. The task is blocked if the dates do not fit within the defined start/end dates of the linked task.

To minimize delays in operational planning, Lag time can be assigned to each task as a positive or negative number of working days. A negative lag is considered to be a lead.

To view the scheduling of the project, the labor and material tasks and the linked tasks in the form of a Gantt chart, click the Timeline action.