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SAP Commercial Project Management Explained

Wednesday, 09 September 2020

Think180 is passionate about SAP Commercial Project Management (CPM) and what it can do for our clients. If you’re a Project Manager, Portfolio Manager or a PMO in a project-heavy industry (such as construction or utilities), you should consider SAP CPM. As an additional tool that sits over the top of your existing ERP or S/4HANA, CPM solves business issues in Integrated Estimating, Financial Management, Project Control and Issue and Change Management.

sap eppm

Problems CPM can solve for you:

  • Better Governance and control of all projects. SAP CPM goes above and beyond the existing capabilities of SAP Project Systems and Plant Maintenance.
  • Better and consistent view of your work across your business, despite all your lines of business running differently.
  • Better organisation and analysis of transactional data related to Project Systems.

In a nutshell, CPM increases project profitability and efficiency!

 

Three Key Features of SAP CPM

Shared Workspace

SAP CPM Provides a shared workspace that gives insight on how all projects are travelling in a top down approach. Think of it as a front-door to your portfolio of work and Project Systems that delivers from a financial, procurement, delivery and a sales perspective.

Project Costs and Revenue Planning

SAP CPM provides the ability to load estimates into SAP to better meet Project Scopes, link bid structures and manage Project Delivery against estimates. Out-of-the-box SAP doesn’t include this capability.

Project Issue and Change Management

SAP CPM comes with Project Issue and Change Management Capability to lodge issues and change requests for immediate analysis and approval, quickly adapting to changes and avoiding unplanned costs.

sap cpm

Detailed Capability Overview:

Master Project

Create a Master Project and link to one or many project systems. In the Master Project overview, see all financials, alerts (e.g. overdue billing, last invoice, billing due dates.) Go into a specific Project System for more information including a Work Breakdown Structure for each system.

Overview Page

Shows an overview of the Financial Status of the project, along with WIP Reporting and Progress Reports allowing you to interpret costs at a glance.

Financial Page

One of the key functions available with SAP CPM, the Financial Page displays the financial plan and analysis for the project. Drill down deeper to see a Distribution Analysis, Mapping Details of your planning costs, and the Project Bid Structure which allows you to make estimates in SAP. Other features include financial tracking during various phases of the project and, simple excel-based functionality which shows Activity Cost Rates, Resources and Expense Types.

Commercial View

This includes all the sales-related info for the project, showing Sales Orders and Contracts, Billing Plan and Invoices. Alerts will appear for outstanding customer payments and overdue billing, and the Work Breakdown of the project shows all sales items related to the project.

SAP CPM doesn’t support Plant Maintenance and therefore we have to customise to improve this capability to include Work Orders and Notifications.

Procurement View

Procurement View shows the Purchase Orders and Invoices related to Project Spending, Good Receipts and Service Confirmations. Further customisation can allow for Project Deliveries and Vendor Task Progress to be included in the view.

Team Overview

See all resources on the project to better maintain the project team. See roles, sub-teams, responsibilities, and Project Objects and assign tasks to members. The Master Project Hierarchy allows you to view the hierarchy of members with the subordinate team structures.

Issues and Change Management

Another key function of SAP CPM that is of high demand, is the Issue and Change Management capability. This addresses the delay in approved change requests by seeing and responding to all open issues and change requests in a much faster turnover. Log and document issues and requests, assign members to a request, manage tasks to process  issues and requests and include approved change requests in your financial forecast. Any Change Requests made can be created for internal budget revisions and/or external changes. Budget revisions are tracked taking all approved change requests into account.

Think180 believes that any clients who manage a large portfolio of work need SAP CPM, and we have the technical and functional skills to implement SAP CPM into your business. Reach out to us today to chat about your project requirements, or read more here.

By Leah McGeorge