In the live sessionSAP ByD Platinum Engineering “Meet the Expert” Session: “Intercompany Project Time and Expenses” we discussed the purchase order item “unlimited over-delivery” indicator.
Here is a wrap-up of what we discussed enhanced with additional information.
The issue tackled by using the indicator is the following:
In many cases intercompany staff or even 3d party staff – the latter maybe only working for one customer who is the ByD customer – work in projects on a regular, long lasting appointment. Now, the project lead of an individual project when doing their individual planning needs to estimate for how many hours the respective resources are needed for their individual project. They may or may not know this. But for sure, very often they do not want to extend an existing PO or even create a new one. One of the reason for this is that this usually comes with resources not being able to record time to a project because a PO is exhausted = finally delivered and thus cannot be used in time recording any more. Then non-availability of time recording in a timel manner of course immediately influences the ability to create customer invoices in a timely manner as well.
There are mainly two approaches used:
- Create PO items with a quantity that is usually not exceeded. 1000 hours, e.g.
- Tick the over-delivery indicator either when ordering from the project or directly in the PO item.
And now for the caveat:
The latter option is usually perceived as the more appropriate one. But you have to be aware that it in some situations it requires some discipline in order to make the system work as expected.
Consider a long running project. From time to time, usually at period end, at year end, or when prices change, you may wish to close POs and create new ones.
And now the very behavior of the “unlimited over-delivery” indicator has to be considered. If you want/need the old PO items to disappear from a resource’s time sheet for a project you must manually reset the “unlimited over-delivery” indicator!
The rationale behind this is:
The time sheet usually takes the PO item’s delivery status “completely delivered” as an indicator for not offering this PO item any more.
However, this is not possible when the “unlimited over-delivery” indicator is used: As the PO item is still set to “completely delivered” once the ordered quantity is exceeded, this status value is ignored in the time sheet when the “unlimited over-delivery” indicator is set.