Cost planning:

Cost planning deals with the costs you expect to incur in connection with your project as it is
executed.
Manual cost planning in the work breakdown structure
Cost planning using activities (network costing)
Manual planning in the WBS involves:
Overall planning: The most basic form of cost planning, where the costs for WBS elements are
entered manually. You can break down your figures by fiscal year if you wish.
Detailed planning of primary costs and activity inputs: This type of planning is based on cost
elements and periods.
Unit costing:
For each WBS element, you use a scheme for entering quantities (materials, internal activities,
external activities, variable items, and so on). This type of planning is cost element-based.

Creation of Planning Profile:

You need planning profiles for the planning methods below:
 Overall planning for internal orders
 Hierarchy cost planning for projects
 Preliminary costing for production orders that do not have a quantity structure (CO
production orders).
 Cost planning for investment programs or investment measures, and for appropriation
requests.
 Financial budgeting.
SPRO >> IMG >> Project System >> Costs >> Manual Cost Planning in WBS >> Hierarchical
Cost Planning >> Create/Change Planning Profile.
T Code: OPSB
Step 1: Click New Entries in the Change View “Planning Profile: Cost and Revenue Planning for
Projects” screen
Step 2: Enter the Following fields:

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Assigning Planning profile to the project:
In the control tab of the Project definition (CJ20N) you can assign the planning profile to the
project.

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Cost planning:
Step 1: Enter T code CJ40
And enter the controlling area name.

Step 2: Enter the project definition and press enter.

Step 3: Click on the Element Overview button

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Step 4: Click and Save the data.

Cost Planning:
It is a user friendly tool that enables you to plan costs for WBS elements based on quantity and
characteristics.
You can plan in any plan version.
You have not carried out a unit costing on the internal order.
You need to define Costing Model to plan using Easy Cost Planning. Costing Model becomes a
predefined template for costing using quantities.

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Costing Model:
T code – CKCM
Step 1: Create a new costing model

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Step 2: After creating costing model click on Assign Characteristics to the model and enter the
char name to be included.
You can also create the Characteristic Name in transaction CT04

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Step 3: Now select Define derivation rules

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Step 4: Select type and object and enter the quantity and price
Select the activation type to set derivation rule in there

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Step 5: Now go to the project Builder CJ20N and select the WBS element.

Now press the Easy cost Planning icon or press SHIFT + F11
Step 6: Select the Costing Variant and click on create estimates.

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Step 7: On the right, Click on choose Planning form that create above.

Enter the required values and click confirm.

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Hierarchical/Overall Planning for WBS elements:
Path: SPRO >> IMG >> Project System >> Financials >> Planning>> Cost in WBS >> Overall
Values >> Change
T Code: CJ40
Step 1: In the Change Cost Planning: Initial Screen, Enter the Proj Def

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Step 2: Enter the Cost plan version 1 For the Higher WBS Elements and click plan values on the
menu and select Check Values.

Step 3: In the Edit Menu, Select Total up option for the summation of WBS elements to Main
WBS and Click Save.

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Step 4: Check the Planned values in the Report S_ALR_87012993.

Some Reports for planning:

Shows variance(plan vs actual) of
S_ALR_87100190 –
each project/person responsible –
1 Cost Plan/Actual/Variance for Each Project
suitable for multiple project
and Person Responsible
selection
Shows variance(plan vs actual) of
S_ALR_87013532 –
2 Cost each project/person responsible in
Plan/Actual/Variance (more detail)
detail
Shows the
S_ALR_87013533 –
4 Cost Plan,Actual,Cmmt,Rem.Plan and
Plan/Actual/Cmmt/Rem.Plan/Assigned
assigned costs
Shows budget, actual costs, and
S_ALR_87013557 –
5 Budget variance – suitable for multiple
Budget/Actual/Variance
project selection
S_ALR_87013542 –
Actual / Commt ./ Total / Plan base
6 Cost Actual/Commitment/Total/Plan in CO
on Cost element
Area Currency
Shows all actual line item posted to
7 Cost CJI3 – Actual Line items
WBS/Activity

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