Overview - Simple example

In this example we consider the case where a purchase order with a value of 100$ w/o tax (116$ with tax) was created and assigned on the project.

Step 1 - The Purchase Request (PR) is created - There is no cost yet, but there is a commitment.

Step 2 - The PR is approved and the Purchase Order is created. In this case, the amount of the PO will be added into the "Cash Future" as at some point in the future this will have to be paid.

Step 3 - The goods (or service) are received (GR). We received everything, so a value of 100$. The commitments are now 0 (since everyting was received) and the PEC (Actual Cost) is 100$. Nothing has yet been paid for CASH is still 0.

Step 4 - The invoice is received. Total value with tax is 116$. The tax is instantly "recovered" : we will have a CASH of -16$.

Step 5 - The invoice is paid. As we pay 116$ but we had a -16$ (Tax recovery) CASH, at the end the CASH is equal to 100$, the amount without tax. The Cash Future becomes 0 as everything was paid.

Definitions

Commitments (Current)

Definition : It’s the current amount of the purchase requests and orders not yet received. Amount is without tax and in local currency. In the purchase order (ME23N) it corresponds to the "To be delivered" in the PO header :

Calculation : None. Amount comes directly from SAP. You can see the details/documents via the CJI5 transaction

About the Posting date for commitments : For the commitment data, the posting date (and all linked characteristics : year, quarter, month) is based on the expected delivery date of the PO/PR :

Note: This is the present (previous day or current day) value. It doesn't take into account the period selected in the query prompt (it is not possible to get the commitments at a selected date due to the way SAP manages that data)

PEC

Definition : The PEC (Capital Spend) is the actual costs (received costs). This includes the downpayments. The cost can correspond to :

Purchase orders, the reception of services/goods (at GR date)
Stock issue : value of the material (at stock issue date)
Hours : standard cost defined for each hour.
Transfers (from Maintenance orders etc...)
Manual entries (CO document) and other adjustments.
Downpayments

In the purchase order header this corresponds to the "Delivered" value + Downpayments :

Calculation : None. Data comes directly from RCS and can be checked by transaction CJI6.

Splitting the GR & Downpayments

If you want to show separately the downpayments and the actual costs (GR - Goods receipt) you can use the "Key Figure Type" :

Downpayments

Definition : The down-payment is the value of the advanced payments done to the supplier. It is also included in the PEC.

Calculation : None. The data comes directly from RCS and can be checked by transaction CJI6, or directly on the purchase order history (ME23N).

Cash

Cash (or "Cash Out") is the amount paid (Without tax).

If cost is linked to a purchase order, then it's the amount once the invoice has been paid.
If cost is not related a purchase order, then it's equal to the PEC (GR).

Formula is CASH = PEC + Variation of the payables balance. In other words :

Where :

Balance = Amount of all open documents (documents not cleared)
FIAP = Payables ledger = Invoices.payments, Excluding Downpayments (as DP are already included in the PEC).
FIGL = General ledger = Provisions/GRNI

Tax Recovery

Due to the way the formula works, between the time where the invoice is received and the time where it is paid, the CASH will show a negative amount equal to the tax value. This is intended. Basically, we consider that the tax is recovered instantly (Negative cash) when the invoice is received. Then the invoice is paid (with tax) and the end cash result is without tax.

Simple example (PO - No downpayment)

Step 1 - PR and then PO are created. No costs or payments yet.

Step 2 - Goods/services are received for 100$. PEC, which is getting the data from CO, will show 100$ due to the GR and there will be a FIGL posting of -100$ for the GRNI.

Step 3 - The invoice (116$ with tax) is received. The FIGL GRNI is cleared and there is a new FIAP posting for 116$. PEC + FIGL Posted + FIGL Cleared + FIAP Posted = -16$. This corresponds to the tax value that is "recovered".

Step 4 - The invoice is paid. The FIAP document (invoice) is cleared. At the end FIGL Posted + FIGL Cleared + FIAP Posted + FIGL cleared = 0, so the CASH out is equal to the PEC. 100$ which is the amount without tax.

Cash Future (and details)

CASH Future is the amount that at some point will have to be paid. This includes :

Amount of PO's not yet received
Amount of invoices not yet paid
Amount received but yet invoiced.

The Cash Future is then split into 2 parts :

Cash Due : amounts that are estimated to be due in the future. This is then split by month : Due M (this month), Due M+1 etc...
Cash Overdue : amounts that are estimated to be overdue already.

Due/Overdue are determined by looking at the Net Due Date of the document. Either the actual one (for invoices), or a estimated one (when there is no invoice yet) :

Purchase Requisitions are not included in the Cash Future (or commitments). Only costs related to a purchase order are included in the Cash Future.

Cash Due and Cash Overdue can be then split into the different types :

Estimated Net Due Date

If the invoice was not received, the future cash period will be based on an estimated Net Due Date. This Net Due date is calculated from the Payment Terms.

If the Payment Term is complex (Multiple payments) or doesnt correspond to the reality (Ex : Payment based on the progress of construction) then the period will be incorrect/irrelevant.

Cash Due (Actual or estimated Net due Date is in the future):

Ordered but Receipt Late : Order exists, but no GR or invoice yet and the requested delivery date is in the past. Net due date is calculated based on the requested delivery date + Terms of payment.
Ordered, Receipt in Future : Order exists, but no GR or invoice and the requested delivery date is in the future.Net due date is calculated based on the requested delivery date + Terms of payment.
Received : GR is done, but no invoice and the estimated net due date is in the future. Net due date is calculated based on the GR date + Terms of payment..
Invoiced : Invoice has been received but not yet cleared. The net due date is coming from the invoice and is a future date.

Cash Overdue (Actual or estimated Net due Date is in the past):

Received : GR is done, but no invoice and the estimated net due date is in the past. Net due date is calculated based on the GR date + Terms of payment..
Invoiced : Invoice has been received but not yet cleared. The net due date is coming from the invoice and is a past date.

The Cash Due can also be split by month :

The period (M for current month, M+1 for next month etc...) is based on the Net Due date. Depending on the case the Net Due date is the actual one from the invoice, or an estimated one based on a date + the payment erms :

Quantity

It's the quantity received in the costs :

If the cost is related to a purchase order, then it's the goods receipt quantity
If the cost is related to a stock issue, then it's the quantity issued
If the cost is related to hours/days worked, then it's the number of hours.

Hours

Definition : Number of Hours allocated to the WBS. The value associated is included in the PEC.

Calculation : None. The data comes directly from RCS and can be checked in transaction CJI3.

Assigned / Commited

It’s the sum of the current received costs (PEC, excluding Downpayments) and to be received costs from purchase orders (Commitment)

Time

Note that if you try to display the Assigned costs by period, the month will represent the posting month for the actual costs and the requested delivery date for the commitments.

Budget

Definition : Global authorized amount for the project. The amount is not time-dependant (it's a global amount for the overall duration of the project). Amount is in local currency.

Calculation : None. The data comes directly from RCS and can be checked CJ31.

Time

There is normally no time dimension for the budget, but we added Project Start Date in it.

Group code PS Budget

Definition : Budget for the PS Group code projects grouping. This is currently mostly used by IT and R&D to allocate an overall budget to multi-company projects. Amount is always in EUR

Calculation : None. The amount comes directly from transaction ZWPST004.

PEC Forecast

Obsolete Key Figure - No longer used.

CASH Forecast

Obsolete Key Figure - No longer used..

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PS Key Figures