Avoid the mistakes that break next year’s project budget reporting! Walk through the steps required to close the year with SAP’s Project Systems and Investment Management. * Clarify the year-end role of Project Systems * Describe two reporting methods within IM * Explain the most efficient IM transactions * Expand on Advance Commitment budgeting * Identify the mistakes to avoid

6. Close the Year in 10 Easy Steps! www.bettisworthassociates.com Phase 1 Phase 2 Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8 3 Before first IM27, & after Appropriations, Projects, or Orders Add new, Close old, Update plan & depreciation, Update budget, Settle IMx,CJ20N, CJ40, CJ9C, CJ3x,CJ8x 4 -6 to -3 months New Year Program Create & Update new approval year program structure, plans, & budgets IM27 IM27_Repeat 5 First month of new year Purchase orders Update commitment delivery dates CJCF or KOCF 6 First month of new year Projects /Orders Prior Year Program Carry-forward project budgets Carry-forward program budgets CJCO or KOCO IMCAOV 7 First month of new year New Year Program Final update of new approval year IM27_REPEAT 8 First month of new year New Year Program Finalize new approval year plan Finalize new approval year budget IM35 IM32 9 First month of new year New Year Program Block new project assignment to prior approval year IM02 10 First month of new year Projects and/or Orders Distribute budget to projects Release budget IM52 CJ32 * 2 nd month of new year Prior Year Program Close old approval year IM27_CLOSE

8. Do not Open New Year Yet! www.bettisworthassociates.com Program - 2006 Program - 2007 Program - 2008 Measures Measures Measures Complete or Abandoned Complete or Abandoned New Projects & Wish List New Projects & Wish List Fiscal Year Change Fiscal Year Change Carry Forward Carry Forward Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8

12. IMR8 - Find Missing Assignments www.bettisworthassociates.com

13. Key Integration with Projects www.bettisworthassociates.com Step Timing Object Step Description SAP Transaction 3.a. Before first IM27 Projects and/or Orders Copy actual to plan for closed months CJ9C or KO15 3.b. Before first IM27 Projects and/or Orders Update project plans Update commitment dates CJ40 or KO12 ME22 3.c. Before first IM27 Programs Projects and/or Orders Adjust program budgets Adjust project budgets IM32 CJ3x, KO2x 3.d. Before first IM27 Projects Fund & Release 1 st Qtr new year advance commitments IM52, CJ32 3.e. Before first IM27 Projects and/or Orders Update depreciation simulation data CJ20N or KO02 3.f. Before first IM27 Projects and/or Orders Settle projects Close projects CJ8x, KO8x CJ20N ,KO04 3.g. Before first IM27 Appropriation Requests Refresh and plan 'wish' list IMA11, IMA12

14. Update Project Planning (CJ9C) www.bettisworthassociates.com

15. Adjust Budget & Fund 1 st Q Advances www.bettisworthassociates.com

18. Year-end Mistake: Projects Not Closed Mistake Result Solution Failure to timely close projects (CJ20N or KO04) Depreciation, both financial and tax, is inaccurate. Improve close-out processes. Maintain frequent reviews of projects beyond projected completion date.

20. Close the Year in 10 Easy Steps! www.bettisworthassociates.com Phase 1 Phase 2 Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8 3 Before first IM27, & after Appropriations, Projects, or Orders Add new, Close old, Update plan & depreciation, Update budget, Settle IMx,CJ20N, CJ40, CJ9C, CJ3x,CJ8x 4 -6 to -3 months New Year Program Create & Update new approval year program structure, plans, & budgets IM27 IM27_Repeat 5 First month of new year Purchase orders Update commitment past delivery dates CJCF or KOCF 6 First month of new year Projects /Orders Prior Year Program Carry-forward project budgets Carry-forward program budgets CJCO or KOCO IMCAOV 7 First month of new year New Year Program Final update of new approval year IM27_REPEAT 8 First month of new year New Year Program Finalize new approval year plan Finalize new approval year budget IM35 IM32 9 First month of new year New Year Program Block new project assignment to prior approval year IM02 10 First month of new year Projects and/or Orders Distribute budget to projects Release budget IM52 CJ32 * 2 nd month of new year Prior Year Program Close old approval year IM27_CLOSE

23. Analyze Bottom-Up Project Plans www.bettisworthassociates.com Next Yr Initial Bottom-up Current Year Program

26. Open New Approval Year (IM27) www.bettisworthassociates.com

28. Mistake: Create new Program (IM01) www.bettisworthassociates.com Mistake Result Solution The Investment Program short and long name contains a specific year. The short name cannot be changed. Confusion prevails when you refer to the program in future years. A program exists indefinitely. The short and long name should describe the type of program, and not reference a year. For existing programs: 1. Rename the long description. and/or 2. Create a new program & Stop carrying-forward the incorrectly named program. Examples of Bad Names: PLM01= Projects for 2001 or CAP2001 = Capital for 2001 Recommended Examples: PROMO = Marketing Promotion Or RD = Research & Development

29. Mistake: Use IM01 instead of IM27 www.bettisworthassociates.com Mistake Result Solution Create a new program every year. (IM01) Projects and plan values are not carried-forward to the new year. You are unable to report across multiple program years. You are unable to reassign projects across years. Use IM01 only once when creating an initial program. Use IM27 for every approval year thereafter. Never use IM01 to create new approval years for the same program! Program X - 2006 Program Y - 2007 Program Z - 2008 Measures Measures Measures New Projects New Projects IM01 IM01 IM01

30. Mistake: Never Using IM27 www.bettisworthassociates.com Mistake Result Solution Never using IM27 - Open New Fiscal Year You continue to add projects to the original program year resulting in increased overhead and maintenance. Prior year closed projects never drop from the reports. Always use IM27 to create a new approval year. Your project portfolio stays focused on the active projects you need to manage. Program in 2005 Program in 2006 Program in 2007 Old Measures Old Measures Old Measures New Projects New Projects

32. Analyze Bottom-Up Project Plans www.bettisworthassociates.com (S_ALR_87012813) Initial Bottom-up New Year Program

34. Plan for New Year Programs (IM35) www.bettisworthassociates.com Use Carry-forward as a Basis New Year Program

35. Determine New Current Plan (IM35) www.bettisworthassociates.com Manually Entered Programs with No Carry-forward Plans New Year Program

36. Enter Initial Top-Down Budget (IM32) www.bettisworthassociates.com Use Planned Total as a Basis Initial Budget

40. Initial Gap (without a list projects) www.bettisworthassociates.com (S_ALR_87012813) New Year Program Bottom-up Gap Top-down

43. Initial Budget Reconciliation with Measures – Bottom-up and Top-Down www.bettisworthassociates.com Top-down Bottom-up Gap New Year Program (Z121PLANBUDGET custom)

44. Mistake: Advance Commitments funded in Current Budget! www.bettisworthassociates.com Carry Forward Carry Forward Program X - 2006 Program X – 2007 / 2008 Program X - 2008 Measures Measures Measures Complete or Abandoned Complete or Abandoned New Projects & Wish list New Projects & Wish list Fiscal Year Change Mistake Result Solution Future year advance commitments funded with current year budget. Current year available funds are reduced unnecessarily . PO delivery dates are wrong. Inefficient budget returns & supplements in 4 th quarter. Fund two years instead of one. Fund advance commitments in current year + 1 year.

48. Close the Year in 10 Easy Steps! www.bettisworthassociates.com Phase 1 Phase 2 Step Timing Object Step SAP Transaction 1 Before first IM27 Current Year Program Change structure Reassign projects IM22 IM05 2 Before first IM27 Current Year Program Assign version to new approval year Find projects not assigned to IM S_ALR_87003567 IMR8 3 Before first IM27, & after Appropriations, Projects, or Orders Add new, Close old, Update plan & depreciation, Update budget, Settle IMx,CJ20N, CJ40, CJ9C, CJ3x,CJ8x 4 -6 to -3 months New Year Program Create & Update new approval year program structure, plans, & budgets IM27 IM27_Repeat 5 First month of new year Purchase orders Update commitment past delivery dates CJCF or KOCF 6 First month of new year Projects /Orders Prior Year Program Carry-forward project budgets Carry-forward program budgets CJCO or KOCO IMCAOV 7 First month of new year New Year Program Final update of new approval year IM27_REPEAT 8 First month of new year New Year Program Finalize new approval year plan Finalize new approval year budget IM35 IM32 9 First month of new year New Year Program Block new project assignment to prior approval year IM02 10 First month of new year Projects and/or Orders Distribute budget to projects Release budget IM52 CJ32 * 2 nd month of new year Prior Year Program Close old approval year IM27_CLOSE

51. Mistake: Unreturned Budget Mistake Result Solution Failure to timely cancel or close projects and return budget funds CJ3x or KO2x). Budget funds are not available for allocation to other projects and/or projected budgets are distorted. Return unused budgets and close projects not later than the first use of IM27 and IM27_REPEAT in 4th quarter.

53. Revise Top-Down Management Guidance (IM32) www.bettisworthassociates.com Increase Budget By 10% New Year Program

54. Repeat the Gap Analysis www.bettisworthassociates.com Top-down Bottom-up Gap New Year Program (Z121PLANBUDGET custom)

55. Gap Analysis–General Value List Top-down Bottom-up www.bettisworthassociates.com New Year Program (Z121PLANBUDGET custom)

65. Key Learnings www.bettisworthassociates.com

66. Key Learnings Additional presentations available at: www.mysaptraininghome.com/documents Send e-mail to [email_address] to register for newsletter. www.bettisworthassociates.com