S4125 en Col14 Part A4 Extract 3

Lesson: Managing Classification Hierarchies
Figure 38: The Concept of Classification Hierarchies
The figure demonstrates a portfolio item that is assigned to a single bucket of a standard
portfolio, and split into multiple buckets of a classification hierarchy. You may even create
more than one alternative classification hierarchy. Financial planning values and capacity
planning of a portfolio item are distributed into multiple buckets of the classification hierarchy
in the same way as the item is split into the multiple buckets.
Portfolio – Specific Classification Hierarchies
Figure 39: Portfolio – Specific Classification Hierarchies
You can create classification hierarchies as portfolio-specific hierarchies or as cross-portfolio

hierarchies. The figure demonstrates two standard portfolios with two portfolio-specific
classification hierarchies.
You create classification hierarchies in a similar way to how you create standard portfolios. As
a portfolio administrator, you use the administrator workset for portfolios. You can create a
cross-portfolio classification hierarchy. Alternatively, by selecting a portfolio in the
dashboard, you can create a portfolio-specific classification hierarchy.
© Copyright. All rights reserved. 91

Unit 2: Portfolio Definition and Buckets
You must select a portfolio type and enter master data the same way that you do them for
standard portfolios. For example, you can enter a description and authorizations.
Portfolio Elements and Classification Hierarchies

You can assign existing portfolio items to multiple classification hierarchies. This procedure is
usually performed by a portfolio item manager. To do so, open an item and navigate to
Classification. This is a subordinate tab to the Overview tab. In this tab, you can select a single
classification hierarchy and split the item into multiple buckets. You may specify a factor for
distributing financial and capacity planning data of the item to multiple buckets.
You can also assign the initiatives of a standard portfolio to the buckets of a classification
hierarchy.
Planning Classification Hierarchies

Financial and capacity planning for the buckets of a classification hierarchy works the same
way as financial and capacity planning for the buckets of a standard portfolio. For example,
you can plan financial values manually and roll-up data of assigned portfolio items and
assigned initiatives.
92 © Copyright. All rights reserved.

Unit 2
Exercise 10
Create a Classification Hierarchy
Business Example
You want to analyze your portfolio from a market perspective and from the organizational
point of view. So, you plan to create classification hierarchies to map additional views to your
standard portfolio.
Note:
In this exercise, when the values include ##, replace the characters with the
number that your instructor assigned to you.
This exercise depends on the portfolio definition that was created in the exercise,
Create a Portfolio Definition.
1. Create a classification hierarchy named Markets##. Set the Status to Active.
2. Create buckets in your classification hierarchy. The top bucket is called Markets##. The
subordinate buckets are called Americas##, EMEA##, and APA##.
Select Euro and Consultant Days as Currency and Capacity Unit, respectively. Enter a start
and finish date for financial and demand planning. The start date is January this year, and
the finish date is the end of next year. The Period Breakdown is Monthly. The Currency
Transfer Period start date is January this year, and the finish date is the end of next year.
3. Check your classification hierarchy from the Portfolio Management tab.

Unit 2
Solution 10
Create a Classification Hierarchy
Business Example
You want to analyze your portfolio from a market perspective and from the organizational
point of view. So, you plan to create classification hierarchies to map additional views to your
standard portfolio.
Note:
This exercise depends on the portfolio definition that was created in the exercise,
Create a Portfolio Definition.
1. Create a classification hierarchy named Markets##. Set the Status to Active.

a) Choose Project Management Office → Portfolio.
b) Choose Classification Hierarchies.
c) Choose Create Classification Hierarchy.
d) On the Create Cross-Portfolio Classification Hierarchy screen, from the Portfolio Type
field, choose the portfolio IT Portfolio ##.
If you have not created a Portfolio Type, choose IT Department 20.
e) Choose the Continue.
f) On the General Information tab page, enter the data shown in the following table:
Name Value
Name Markets##
ID Markets##
Status Active
g) Choose Save and close the classification hierarchy.
h) On the Classification Hierarchy: Markets## screen, choose Save and return to the
classification hierarchy dashboard.
2. Create buckets in your classification hierarchy. The top bucket is called Markets##. The
subordinate buckets are called Americas##, EMEA##, and APA##.
Select Euro and Consultant Days as Currency and Capacity Unit, respectively. Enter a start
and finish date for financial and demand planning. The start date is January this year, and

the finish date is the end of next year. The Period Breakdown is Monthly. The Currency
Transfer Period start date is January this year, and the finish date is the end of next year.
a) On the classification hierarchy dashboard, choose the classification hierarchy
Markets##.
b) On the Classification Hierarchy: Markets## screen, choose the Buckets tab page.
c) Choose Create.
d) On the Create Bucket screen, select the Create Directly under Portfolio radio button
and choose Continue.
e) On the General Information tab page, and enter the data shown in the following table:
Name Value
Bucket Name Markets##
ID Markets##
Status Active
f) Choose the Financial and Capacity Information tab page and enter data shown in the
following table:
Name Value
Currency Euro
Capacity Unit Consultant Day
Fin Period Breakdown Monthly
Cap Period Breakdown Monthly
Financial Planning Start January 1st this year
Financial Planning Finish December 31st next year
Demand Plan Start January 1st this year
Demand Plan Finish December 31st next year
Currency Transfer Period Start January 1st this year
Currency Transfer Period Finish December 31st next year
g) Choose Save and close bucket Markets##.
h) On the Bucket: Markets## screen, choose Save and exit the screen.
i) On the Classification Hierarchy: Markets## screen, choose Save.
j) Choose Create.
k) On the Create Bucket screen, select the Select Parent Manually radio button and
choose Select Bucket.
l) On the Select Bucket dialog box, choose Markets## and then choose OK.
m) Choose Continue.

n) On the General Information tab page, in the Bucket Name field, enter Americas##. All
other fields are the same as the Markets## bucket.
o) Create two more subordinate buckets EMEA## and APA## in the same way as
described for the bucket Americas##.
3. Check your classification hierarchy from the Portfolio Management tab.

a) On the Portfolio Management tab page, choose Classification Hierarchies.
b) Choose Switch Portfolio.
c) On the Switch Portfolio dialog box, choose Markets##.
d) Choose OK.
e) Expand your top bucket Markets## in the dashboard to view the three subordinate
buckets: Americas##, EMEA## and APA##.

Configuration for Classification Hierarchies
Figure 40: Configuration of Classification Hierarchies
You can implement a business add-in to modify the rollup factor for portfolio elements. In the
standard delivery, the same rollup factor is used to roll up every financial view and capacity
view.
Hint:
You can also set up a portfolio type for classification hierarchies. However, you
could use the same portfolio types that you used for standard portfolios. Keep in
mind that the portfolio type specifies financial and capacity planning settings.


Unit 2
Exercise 11
Check the Configuration Relevant to
Classification Hierarchies
Business Example
You want to check the configuration settings for classification hierarchies.
Check the configuration settings for classification hierarchies.
1. Check the master switch for classification hierarchies. Check if it is possible to use
portfolio-specific classification hierarchies.
2. Check the portfolio item types. For which portfolio item type can you use separate factors
to roll up financial and capacity planning values?

Unit 2
Solution 11
Check the Configuration Relevant to
Classification Hierarchies
Business Example
You want to check the configuration settings for classification hierarchies.
Check the configuration settings for classification hierarchies.
1. Check the master switch for classification hierarchies. Check if it is possible to use
a) From the SAP Easy Access screen, start transaction SPRO.
b) On the Customizing: Execute Project screen, choose SAP Reference IMG.
c) On the Display IMG screen, navigate to SAP Customizing Implementation Guide → SAP
Portfolio and Project Management → Portfolio Management → Global
Customizing → Global Settings.
d) Next to the Check Global Settings field, choose the IMG — Activity button.
e) On the Information screen, choose Continue.
f) On the Change View Define Area for Settings: Overview screen, choose Master
Switches.
g) In the Dialog Structure pane, choose the Default Settings (SAP) folder.
h) On the Information screen, choose Continue.
i) Check Master Switches 0006. The Setting Value is set to 1 so that it is possible to use
j) Return to the Display IMG screen.
2. Check the portfolio item types. For which portfolio item type can you use separate factors
to roll up financial and capacity planning values?
a) On the Display IMG screen, navigate to SAP Portfolio and Project
Management → Portfolio Management → Global Customizing → Portfolio-Independent
Settings.
b) Next to the Define Portfolio Item Types field, choose the IMG — Activity button.
For the Item Types GR20, GR20WBS, and PLM550, the Factor field is active.
c) To return to Customizing, press F3.

LESSON SUMMARY
You should now be able to:
● Create a classification hierarchy
● Check the configuration of classification hierarchies


Unit 2
Learning Assessment
1. When you create a portfolio, it is mandatory to select a portfolio type.

Determine whether this statement is true or false.
X True
X False
2. When a portfolio is created, the user who created it is automatically listed as the user with
administration authorizations.
X True
X False
3. When you create a bucket, it inherits the authorizations of higher-level objects, which
cannot be changed or removed.
X True
X False
4. Which is the smallest period unit?

Choose the correct answer.
X A Week
X B Month
X C Quarter
X D Year

Unit 2: Learning Assessment
5. Which values of a portfolio item are distributed to multiple buckets of the classification
hierarchy?
X A Financial and capacity period breakdown
X B Currency
X C Financial and capacity planning
X D Capacity unit
6. Which of the following settings does a portfolio type in a classification hierarchy specify?
X A Financial and capacity planning
X B Financial period breakdown
X C Capacity unit

Unit 2
Learning Assessment - Answers
1. When you create a portfolio, it is mandatory to select a portfolio type.

X True
X False
Correct. When you create a portfolio, it is mandatory to select a portfolio type.
2. When a portfolio is created, the user who created it is automatically listed as the user with
administration authorizations.
X True
X False
Correct. When a portfolio is created, the user who created it is automatically listed as the
user with administration authorizations.
3. When you create a bucket, it inherits the authorizations of higher-level objects, which
cannot be changed or removed.
X True
X False
Correct. When you create a bucket, it inherits the authorizations of higher-level objects.
However, you can supplement, change, or remove these inherited authorizations if
necessary.

Unit 2: Learning Assessment - Answers
4. Which is the smallest period unit?

X A Week
X B Month
X C Quarter
X D Year
Correct. Month is the smallest period.
5. Which values of a portfolio item are distributed to multiple buckets of the classification
hierarchy?
X A Financial and capacity period breakdown
X B Currency
X C Financial and capacity planning
X D Capacity unit
Correct. The Financial and capacity planning values of a portfolio item are distributed to
multiple buckets of the classification hierarchy.
6. Which of the following settings does a portfolio type in a classification hierarchy specify?
X A Financial and capacity planning
X B Financial period breakdown
X C Capacity unit
Correct. The portfolio type specifies financial and capacity planning settings.

UNIT 3 Portfolio Items and Initiatives
Configuration and Creation
Lesson 1
Configuring Portfolio Items 108
Exercise 12: Configure a Portfolio Item Type 111
Exercise 13: Configure a Portfolio Item Category 115
Lesson 2
Creating Portfolio Items 120
Exercise 14: Create Portfolio Items 123
Exercise 15: Copy a Portfolio Item 131
Lesson 3
Creating Portfolio Initiatives 137
Exercise 16: Create a Portfolio Initiative 141
UNIT OBJECTIVES
● Configure a portfolio item type

● Configure a portfolio item category
● Create portfolio items
● Create portfolio items with item templates
● Outline portfolio initiatives
● Create a portfolio initiative
● Outline the synchronization of portfolio initiative master data

Unit 3
Lesson 1
Configuring Portfolio Items
LESSON OVERVIEW
The lesson discusses the configuration settings for portfolio items.
Business Example
In your IT department, there are proposals for various software projects. Therefore, you
create portfolio items in your portfolio so that you can compare the proposals with each other
and then make a decision later about which of these proposals will be actually implemented.
In Customizing for SAP Portfolio and Project Management, you want to create a portfolio item
type that you can use to create the portfolio items. For this reason, you require the following
knowledge:
● An understanding of how to configure portfolio items
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Portfolio Item Type
Figure 41: Definition of Portfolio Item Types and Dependent Settings
To create a new portfolio item type, you must create a key and a text. When you set the
Proposal indicator for a portfolio item type, all items for this type are flagged as proposals and

Lesson: Configuring Portfolio Items
are displayed on the relevant tab in the item dashboard. Alternatively, items can also be
dynamically managed as proposals depending on their status or current decision point.
When you create an item, the system may automatically generate a portfolio project at the
same time. In the simplest case, the system creates a project definition, which can be used
later for resource planning and for uploading project structures of other project management
systems. You can define the project type you want to use to create this project definition in
the definition of the portfolio item type. If you do not enter a value here, the system uses the
project type that is defined in the global settings of SAP Portfolio and Project Management for
S/4HANA (PPM).
In addition to a project definition, you can define project templates if you want to create a
complete portfolio project together with the item. Item type and projects templates are
mapped in the customizing activity Map Item Type to Project Templates. In this case, the
system uses the project type of the template for the operational project.
You can set the NoAutocPro indicator in the definition of the portfolio item type if you do not
want a portfolio project, a project definition, or a complete project to be created when you
create an item. However, you can remove this indicator when you create an item. If necessary,
you can also assign a portfolio project to an item at a later stage.
When you define a portfolio item type, define the decision points, the status, and the status
sequence in which a decision point can progress. You can also define the possible statuses for
an item, and the corresponding sequence in the definition of the portfolio item category.
If necessary, you can define whether a field is mandatory or not, depending on the portfolio
type and portfolio item type. You can implement this field configuration in the definition of the
portfolio types in Customizing for PPM.

Unit 3: Portfolio Items and Initiatives Configuration and Creation

Unit 3
Exercise 12
Configure a Portfolio Item Type
Business Example
You want to create portfolio items. However, you first need to define a new portfolio item type
for these items.
Create a new portfolio item type by copying an existing item type. Then, adjust the new
portfolio item type to your requirements and check the copied entries and assign the portfolio
item type to the portfolio type.
Note:
In this exercise, you create a new portfolio item category that is required for one or
more of the subsequent exercises in the course.
1. In Customizing for PPM, create a new portfolio item category with the text Software
Projects## and the identification GR##. To do this, copy the portfolio item type
TEMP_550 Template IT Projects and all dependent entries. When using your portfolio item
type, do not create a portfolio project automatically. Adjust your portfolio item type
accordingly and save.
2. Check the settings for your portfolio item type. Which decision point is currently
supported? Which statuses are assigned to the portfolio item type?
Hint:
In a later exercise, you also make settings for decision points and statuses.
However, in this exercise you only check the copied entries.
3. Assign the portfolio item type you have just created to portfolio type GROUP## (IT
Portfolio ##).

Unit 3
Solution 12
Configure a Portfolio Item Type
Business Example
You want to create portfolio items. However, you first need to define a new portfolio item type
for these items.
Create a new portfolio item type by copying an existing item type. Then, adjust the new
portfolio item type to your requirements and check the copied entries and assign the portfolio
item type to the portfolio type.
Note:
In this exercise, you create a new portfolio item category that is required for one or
1. In Customizing for PPM, create a new portfolio item category with the text Software
Projects## and the identification GR##. To do this, copy the portfolio item type
TEMP_550 Template IT Projects and all dependent entries. When using your portfolio item
type, do not create a portfolio project automatically. Adjust your portfolio item type
accordingly and save.
b) On the Customizing: Execute Project screen, choose SAP Reference IMG.
Customizing → Portfolio-Independent Settings.
d) Next to the Define Portfolio Item Types field, choose the IMG — Activity button.
e) On the Change View Linking Item type and Application: Overview screen, select the
item type TEMP_550 Template IT Projects.
f) From the application toolbar, choose Copy as.
g) In the Item Type field, enter GR## and confirm the warning message that you get. In the
second Item Type field, enter Software Projects##.
h) Select the NoAutocPro checkbox, and press ENTER to save to bring you to the Specify
object to be copied.
i) On the Specify object to be copied dialog box, choose Copy all. The system now copies
all dependent entries.

j) On the Information dialog box, choose Continue.
k) Save your portfolio item type.
2. Check the settings for your portfolio item type. Which decision point is currently
supported? Which statuses are assigned to the portfolio item type?
Hint:
In a later exercise, you also make settings for decision points and statuses.
However, in this exercise you only check the copied entries.
a) On the Change View Linking Item type and Application: Overview screen, select GR##
Software Projects## from the list of item types, to check the entries of your portfolio
item type.
b) In the dialog structure, double-click the Linking Item type and Decision Points folder.
There are three decision points assigned to your portfolio item type, Z001 Discover,
Z002 Prepare, and Z003 Explore.
c) In the dialog structure, double-click the Item Status folder.
d) On the Determine Work Area: Entry dialog box, choose Continue.

There are three statuses assigned to your item category: 0001 In Preparation, 0002 In
Progress and 0003 Closed.
3. Assign the portfolio item type you have just created to portfolio type GROUP## (IT
Portfolio ##).
a) On the Change View Portfolio Type Definition: Overview screen, select the portfolio
type GROUP##. In the dialog structure pane, double-click the Assign Item Types
folder.
b) Choose New Entries.
c) To display the available item types use the search help.
d) Choose GR## Software Projects##.
e) Press Enter and confirm the warning messages.
f) Choose Save.

Portfolio Item Category
Figure 42: Definition of Portfolio Item Categories
On the Classification tab page of an item, you can specify the location, category, or the priority
of the item, which you can use for evaluation purposes at a later stage. The possible field
values are defined in Customizing for SAP Portfolio and Project Management.
In the customizing activity Define Portfolio Item Categories, you can define possible values for
the Category field for items. Depending on the category, you can also define the values for the
fields Subcategory, Portfolio Item Group, and Technology Type. To select a technology type in
an item, you must always first select the category to which the item belongs.
For the Area and Location fields, you can specify the geographical location of an item and use
this for later evaluations. You can define areas and locations freely in Customizing for PPM.
For example, a location can be an office within a company, a plant, or even a city. Countries,
continents, or sales regions are typical areas. However, each location is always uniquely
assigned to an area.

Unit 3
Exercise 13
Configure a Portfolio Item Category
Business Example
To categorize your software projects, define portfolio item categories and dependent entries
in Customizing for PPM.
Create a new category, subcategory, and technology type.
Note:
In this exercise, you configure a portfolio item category that is required for one or
1. Define a new portfolio item category Software## with the identification 99##. The
category must be subdivided into the subcategories SAP Software and Non-SAP
Software. For your category, you must be able to select the portfolio item groups
Internal Development, Implementation, and Upgrade. In addition, you must be able
to choose between the two technology types ABAP and Java. Use the keys 0001, 0002, for
the dependent Customizing entries for your category 99##.
2. In Customizing, check how many locations were defined for the area Europe/Middle East.

Unit 3
Solution 13
Configure a Portfolio Item Category
Business Example
To categorize your software projects, define portfolio item categories and dependent entries
in Customizing for PPM.
Create a new category, subcategory, and technology type.
Note:
In this exercise, you configure a portfolio item category that is required for one or
1. Define a new portfolio item category Software## with the identification 99##. The
category must be subdivided into the subcategories SAP Software and Non-SAP
Software. For your category, you must be able to select the portfolio item groups
Internal Development, Implementation, and Upgrade. In addition, you must be able
to choose between the two technology types ABAP and Java. Use the keys 0001, 0002, for
the dependent Customizing entries for your category 99##.
b) On the Customizing: Execute Program screen, choose SAP Reference IMG.
Customizing → Portfolio Item Settings.
d) Next to the Define Portfolio Item Categories field, choose the IMG — Activity button.
e) On the Change View Category: Overview screen, choose New Entries.
f) In the first Category field, enter 99##, and in the second Category field, enter
Software##.
g) To save your entry choose the Back button.
h) On the Change View Category Overview screen, select the Software## field you just
created.
i) In the Dialog Structure pane, double-click the Subcategory folder.
j) On the Change View Subcategory: Overview screen, choose New Entries and enter the
data shown in the following table:

Subcategory Subcategory Text

0001 SAP Software
0002 Non-SAP Software
k) Press F3 to save your changes.
l) On the Change View Category Overview screen, select the Software## field you
created.
m) In the Dialog Structure pane, double-click the Portfolio Item Groups folder.
n) On the Change View Portfolio Item Group: Overview screen, choose New Entries and
enter the data shown in the following table:
Group Group Text
0001 Internal Development
0002 Implementation
0003 Upgrade
o) Press F3 twice to save your changes.
p) On the Change View Category Overview screen, select the Software## field you
created.
q) In the Dialog Structure pane, double-click the Technology Type folder.
r) On the Change View Technology Type: Overview screen, choose New Entries and enter
the data shown in the following table:
Technology Type Technology Type Text
0001 ABAP
0002 JAVA
s) Press F3 twice to save your changes and exit the screen.
2. In Customizing, check how many locations were defined for the area Europe/Middle East.
a) On the Display IMG screen, navigate to SAP Customizing Implementation Guide → SAP
Customizing → Portfolio Item Settings.
b) Next to the Define Location field, choose the IMG — Activity button.
A list of the locations (defined in the training system) and the assignments of these
locations to an area is shown. There are seven locations assigned to the area Europe/
Middle East.
c) Press F3 to exit the Customizing activity.

Hint:
Factory calendars and the number of working hours per day are assigned
to locations. You can use this information in the resource planning to
determine the availability of resources if no working hours are assigned to
the resource. In this case, the system can use the data from the location
the resource has been assigned to.

LESSON SUMMARY

Unit 3
Lesson 2
Creating Portfolio Items
LESSON OVERVIEW
This lesson shows the various options for creating portfolio items.
Business Example
In your IT department, there are proposals for various software projects. Therefore, you want
to create the corresponding portfolio items in your portfolio so that you can compare the
proposals with each other and then make a decision later about which of these project
proposals will be actually implemented. For this reason, you require the following knowledge:
● An understanding of how to create portfolio items
LESSON OBJECTIVES
Portfolio Item Creation
Figure 43: Portfolio Item Details 1/2
Portfolio items in PPM represent individual projects, project proposals, services, or product
initiatives. At item level, you can enter critical success factors and plan finances and
capacities.
The progress of an item (such as its specification, planning, and execution) can be
represented by decision points. Based on the decision points and the data of the items, you

Lesson: Creating Portfolio Items
can monitor these in PPM, compare them with each other, and make decisions about future
progress.
The data itself can be entered manually, derived by using questionnaires and scoring models,
or determined from allocated projects and controlling objects through integration with Project
Management and FI/CO systems. For a detailed structuring and resource planning, items can
also use a built-in function for project management in PPM.
When you create items, they are allocated to just one portfolio bucket. If necessary, you can
change this allocation afterward, that is, you can move items from one bucket to another.
However, these buckets must all belong to the same portfolio.
Hint:
You can only allocate items to buckets that do not have lower-level buckets.
Portfolio Item Details 2/2
Figure 44: Portfolio Item Details 2/2
When you create an item, you must always specify a portfolio item type or an item template.
The portfolio item type specifies several properties of the item, such as decision points. In
addition to the portfolio item type, the item template includes additional master data, such as
area and priority.
You have different options for creating items. You can create items individually or you can
create multiple items at the same time. In addition, you can use an interface in the PPM core
system to generate portfolio items based on a Microsoft Excel file.
The data of an item is summarized on various tab pages. The General Information tab page,
for example, contains the name, external identification, and description of the item. The
General Information tab also includes information about the planned, expected, and actual
start and end of the item. In addition, you can enter information about the status, location,
category, and priority of the item. You can also define critical success factors, such as the
probability of technical and commercial success or the assessed risk of the item.
The Additional Information tab contains details about the actual decision point, for example,
the status. However, changes to the decision point are not specified here but on the separate
Phases and Decisions tab.

On the Financial Information tab, you can select the currency and period breakdown for
financial planning at the item level. These fields are mandatory, but the item automatically
transfers the values from the parent bucket as default values when you create it. On this tab
page, you can define values for the estimated launch and development costs as well as the net
present value of the item.
Together with the probabilities for technical and commercial success, the system calculates
the expected commercial value of this item. The fields for the planned, actual, and budget
values are derived from the financial planning data or by integration of the item with a FI/CO
system.
On the Capacity Information tab, you can decide which time unit you want to use for capacity
planning. You can also define the actual headcount of the item for informational purposes.
On the Authorizations tab, navigated to by Miscellaneous → Authorizations, you can add new
users that have authorizations, for example, to read or change the item, or you can change
the authorizations inherited from the parent bucket.
In the same way as for the buckets, you can also enter additional information for items on the
Note tab, navigated to by Documents and Notes → Notes. When you add a note, the system
automatically adds details about the person who enters the note, and the time it was added.
Companies need additional fields for informational purposes at the item level. These
customer fields can be defined in the PPM core system. The customer fields are then shown
on the tab pages in the items.

Unit 3
Exercise 14
Create Portfolio Items
Business Example
Your IT department uses the CATS time sheet for time data recording. You also want to
introduce computer-assisted time data recording in other departments. You plan to adjust
CATS to the requirements of the various departments and develop your own confirmation
software called Orion. You must create portfolio items for both proposals to help you decide
which one to implement.
Create portfolio items for the various proposals.
Note:
This exercise requires you to use the following items created in previous
exercises:
Item Created in Exercise
Software Projects## Configure a Portfolio Item Type

Software## Configure a Portfolio Item Category
In this exercise, you create portfolio items that are required for subsequent
exercises in the course.
1. Create a new portfolio item with the text Orion - Confirmation Module, and the
identification Orion## for SAP Projects in your portfolio IT Portfolio##. Assign the item to
the bucket Non-SAP Projects of your portfolio IT Portfolio##. Use your portfolio item type
Software Projects##.
Make sure that a portfolio project is not automatically created while saving the item. Enter
the following data:
Field name Value
Status In Progress
Planned start First of next month
Planned finish First of next month + 6 months
Probability of commercial success 95%
Category Software##
Subcategory Non-SAP software

Field name Value
Technology type Java
Group Internal development
Location Walldorf
Net present value (Man.) EUR 10,000,000
Launch costs EUR 60,000
Development costs EUR 180,000
2. Create a new portfolio item for the second proposal with the adjustment and company-
wide implementation of CATS. Enter the text CATS - Adjustment and
Implementation, and the identification CATS## for the item. Assign the item to the
bucket SAP Projects of your portfolio IT Portfolio##. Use your portfolio item type Software
Projects## again.
the following data:
Field name Value
Status In Progress
Category Software##
Subcategory SAP software
Technology type ABAP
Group Implementation
Area Europe/Middle East
Location Walldorf
Net present value EUR 10,000,000

Unit 3
Solution 14
Create Portfolio Items
Business Example
Your IT department uses the CATS time sheet for time data recording. You also want to
introduce computer-assisted time data recording in other departments. You plan to adjust
CATS to the requirements of the various departments and develop your own confirmation
software called Orion. You must create portfolio items for both proposals to help you decide
which one to implement.
Create portfolio items for the various proposals.
Note:
This exercise requires you to use the following items created in previous
exercises:
Item Created in Exercise
Software Projects## Configure a Portfolio Item Type

Software## Configure a Portfolio Item Category
In this exercise, you create portfolio items that are required for subsequent
exercises in the course.
1. Create a new portfolio item with the text Orion - Confirmation Module, and the
identification Orion## for SAP Projects in your portfolio IT Portfolio##. Assign the item to
the bucket Non-SAP Projects of your portfolio IT Portfolio##. Use your portfolio item type
Software Projects##.
the following data:
Field name Value
Status In Progress
Category Software##
Subcategory Non-SAP software

Field name Value
Technology type Java
Group Internal development
Location Walldorf
Net present value (Man.) EUR 10,000,000
a) In the SAP Fiori Launchpad, choose Portfolio Management → Portfolio Items.
b) Make sure you are working in the context of your portfolio IT Portfolio##. If not, choose
Switch Portfolio, choose your portfolio, and then choose OK.
c) To create a new portfolio item, from the dashboard, choose Create → Create Item.
d) On the Create Item screen, choose Select Bucket.
e) On the Select Bucket dialog box, choose Software Department## → Non-SAP

Projects## and choose OK.
f) On the Create Item screen, in the Item Types field, from the list, select Software
Projects## and choose Continue
If you have not created your own item type, in the Item Types field, enter Software
Projects 20 and choose Continue.
g) On the General Information tab page of the new portfolio item, enter the data shown in
the following table:
Name Value
Name Orion - Confirmation Module
ID Orion##
Status In Preparation
Planned Start The first of the next month

Planned Finish The first of the next month + 6 months
h) Choose Save. Once the new portfolio item has been saved, in the Status field, select In
Progress.
i) Choose the Additional Information tab page, and enter the data shown in the following
table:
Field Value
Probability Commercial Success 95
j) Choose the Classification tab page, and enter the data shown in the following table:

Name Value
Category Software##. If you have not created

your own category, you can choose:
Software 20
Subcategory Non-SAP Software
Technology Type Java
Group Internal Development
Location Walldorf
k) Choose the Financial Information tab page, and enter the data shown in the following
table:
Name Value
Net Present Value (Man.) 10,000,000
Launch Costs 60,000
Development Costs 180,000
l) Choose Save and exit the screen.
2. Create a new portfolio item for the second proposal with the adjustment and company-
wide implementation of CATS. Enter the text CATS - Adjustment and
Implementation, and the identification CATS## for the item. Assign the item to the
bucket SAP Projects of your portfolio IT Portfolio##. Use your portfolio item type Software
Projects## again.
the following data:
Field name Value
Status In Progress
Category Software##
Subcategory SAP software
Technology type ABAP
Location Walldorf
Net present value EUR 10,000,000

Field name Value

a) Go to the Portfolio Items dashboard.
b) To create a new portfolio item, from the dashboard, choose Create → Create Item.
c) On the Create Item screen, choose Select Bucket.
d) On the Select Bucket dialog box, choose Software Department## → SAP Projects##
and choose OK.
e) On the Create Item screen, in the Item Types field, from the list, select Software
Projects## and choose Continue
If you have not created your own item type, in the Item Types field, enter Software
Projects 20 and choose Continue.
f) On the General Information tab page of the new portfolio item, enter the data shown in
the following table:
Name Value
Name CATS - Adjustment and Implemen-
tation
ID CATS##
Status In Preparation
Planned start The first of the next month

Planned end date The first of the next month + 5 months
g) Choose Save. Once the new portfolio item has been saved, in the Status field, select In
Progress.
h) Choose the Additional Information tab page, and enter the following data:
Name Value
Probability Commercial Success 95%
i) Choose the Classification tab page, and enter the following data:
Name Value
Category Software##. If you have not created
your own category, you can choose:
Software 20
Subcategory SAP Software
Technology Type ABAP

Name Value
Location Walldorf
j) Go to the Financial Information tab, and enter the following data:

Name Value in Euro
Net present value (man.) 10,000,000
Launch Costs 35,000
k) Choose Save and exit the screen.


Unit 3
Exercise 15
Copy a Portfolio Item
Business Example
You company has planned several projects. The first planned IT project in your department is
the implementation of various customer enhancements for the SAP Project System. The
second project involves the training department who plans the development of various
courses. Create items for proposals for the training development projects.
For the IT project, create a portfolio item by copying data from the item CATS — Adjustment
and Implementation, which you already created. For the training department, create new
items in a table for the bucket ERP Training with the portfolio item type Training
Projects.
Note:
This exercise required you to use the portfolio items created in the exercise,
Create a Portfolio Item.
1. Create a portfolio item by copying data of the item CATS — Adjustment and
Implementation, which you have created. The name of the new item must be PS
Customer Enhancements, with the identification PSK##. Reduce the copied values for
the net present value (man), launch costs, and developments costs to EUR 200,000, EUR
2,000, and EUR 6,000. The project must have a duration of just two months. Adjust the
planned finish date accordingly.
2. Create the new items for the training development project with the names and
identifications shown in the table. Move the item PPM Training to the bucket EPPM
Training.
Name ID
PS Training PS##
MM Training MM##
SD Training SD##
PPM Training PPM##

Unit 3
Solution 15
Copy a Portfolio Item
Business Example
You company has planned several projects. The first planned IT project in your department is
the implementation of various customer enhancements for the SAP Project System. The
second project involves the training department who plans the development of various
courses. Create items for proposals for the training development projects.
For the IT project, create a portfolio item by copying data from the item CATS — Adjustment
and Implementation, which you already created. For the training department, create new
items in a table for the bucket ERP Training with the portfolio item type Training
Projects.
Note:
This exercise required you to use the portfolio items created in the exercise,
Create a Portfolio Item.
1. Create a portfolio item by copying data of the item CATS — Adjustment and
Implementation, which you have created. The name of the new item must be PS
Customer Enhancements, with the identification PSK##. Reduce the copied values for
the net present value (man), launch costs, and developments costs to EUR 200,000, EUR
2,000, and EUR 6,000. The project must have a duration of just two months. Adjust the
planned finish date accordingly.
b) From the dashboard, choose the portfolio item CATS — Adjustment and
Implementation.
c) On the Item: Cats — Adjustment and Implementation screen, choose You Can
Also → Copy to New Item.
d) On the Create Item screen, in the Select Bucket dropdown, choose SAP Project##, and
in the Item Type dropdown, select Software Projects##. Choose Continue.
e) On the Create Item screen, choose the General Information tab page.
f) In the Name field, enter PS Customer Enhancement, and in the ID field, enter PSK##.
In the Planned Start field enter the first day of next month, and in the Planned Finished
Date field adjust the date to ensure the project has a duration of two months.
g) Choose the Financial Information tab page, and change the data shown in the following
table:

Name Value
Net Present Value (Man.) 200,000
Launch Costs 2,000
h) Choose the Save and exit the screen.
2. Create the new items for the training development project with the names and
identifications shown in the table. Move the item PPM Training to the bucket EPPM
Training.
Name ID
PS Training PS##
MM Training MM##
SD Training SD##
PPM Training PPM##
b) From the dashboard, choose Create → Create Multiple Items.
c) On the Create Multiple Items screen, choose Select Bucket.
d) On the Select Bucket dialog box, choose Training Department## → ERP Course.
Choose OK.
e) On the Create Multiple Items screen, from the Item Type field, select Software
Projects## from the list. Choose Continue.
f) Create new portfolio items in a table; enter the names and identifications in the Name
and External ID columns, as show in the table.
g) On the Create Multiple Items screen, choose Save and exit the screen.
h) In the dashboard, select the portfolio item associated with PPM## and choose Move
To.
i) On the Select Bucket screen, select the bucket Training Department## → EPPM
Course Development and choose OK.

Portfolio Item Dependencies

It is not possible to observe the schedule of individual portfolio items in isolation. You must
also take time dependencies between several portfolio items into consideration during
planning and execution.
To do so, you can create Dependencies in PPM. Using a dependency, you link a portfolio item
with another item in the form of a predecessor-successor relationship. There are various
dependency types: Finish to Start, Finish to Finish, Start to Start, and Start to Finish.
A portfolio item can have dependencies to several other portfolio items. Using the
dependencies dashboard, you can analyze existing dependencies for an item in a table. Traffic
light functions help you track time-critical situations at a glance.
You create dependencies from a portfolio item. For each dependency, you must enter a name,
an external ID, the dependency type, and a portfolio item as a predecessor to the current
item. If required, you can also specify a description and comment.
The system now automatically determines the planned dates of the current item and the
predecessor. When saving, the system uses the planned dates and the dependency type to
calculate a dependency risk.
In the detail screen of a dependency and in the dependencies dashboard, the dependency risk
of a dependency is displayed in the form of an icon. The dependency risk reflects the buffer
between the planned dates of the predecessor and successor according to the dependency
type.
For example, using the dependency type Finish to Start, the system calculates the difference
between the planned start date of the current item and the planned finish date of the
predecessor. The number of days determined in this way is then assigned to an icon.
The item dependency status defines dependency status groups that determine the level of
risk for item dependencies. For each dependency status group, you set upper and lower limits
in days and then assign an appropriate status icon to each limit. You can define as many
dependency status groups as you like, in ascending order of severity starting from 1.
Portfolio Item Templates

An item template serves as a template for creating new portfolio items. You create and
manage item templates in the administration area. The templates always refer to a portfolio
bucket. The global template specifies whether the template can be used as a template only in
this bucket or also in other buckets of the same portfolio.

Figure 45: Item Template Overview
The figure, Item Template Overview, shows the creation of an item template. You create item
templates using the same tab pages as portfolio items. They have almost an identical master
data. This way, you can also assign decision points to item templates.
You can also link item templates to project templates from Project Management. However,
this link is established in Customizing for the PPM core system and not in the administration
area.
Item templates have their own status management. You use the statuses Created, Active, and
Completed to specify whether an item template may be used as a template. You can change
the statuses in any order. The status Created is the initial status. The status is supposed to
describe the life-cycle of a template.

LESSON SUMMARY

Unit 3
Lesson 3
Creating Portfolio Initiatives
LESSON OVERVIEW
This lesson provides an overview of the basic functions of portfolio initiatives in SAP Portfolio
and Project Management.
Business Example
Your company is planning to develop and launch a new product. Development is subdivided
into several phases and individual projects. You can use a portfolio initiative to map these
requirements. For this reason, you require the following knowledge:
● An understanding of the structure of portfolio initiatives
● An understanding of the function of portfolio initiatives
● An understanding of how to create portfolio initiatives
LESSON OBJECTIVES
● Outline portfolio initiatives
● Create a portfolio initiative
● Outline the synchronization of portfolio initiative master data
Portfolio Initiatives
Portfolio initiatives is a structuring tool in PPM. Initiatives are independent objects, similar to
portfolio buckets and portfolio items, that can summarize data from assigned items and can
be used for overall planning.
Unlike portfolio buckets, which have a more static structure, initiatives can also be used
operationally. A portfolio initiative contains an actual start date and phases that structure the
time of the process. It is due to this operative character that a portfolio initiative is also similar
to a portfolio item.
For example, you find decision points in both objects. However, there are also differences. An
initiative is designed for aggregation, whereas an item can also carry out concrete resource
planning.
From a technical perspective, a portfolio initiative is an interdependency of a portfolio item
and portfolio project. However, it is only designed to map certain functions, such as financial
planning. A portfolio initiative is an interdependency only from a technical perspective; it has
neither all the functions of a project nor all the functions of a portfolio item.

Portfolio Initiative Assignment
Figure 46: Structure of a Portfolio Initiative
A portfolio initiative consists of master data that is created in the head of the initiative. Phases
and decision points are already created when the initiative is created. Both are used to map
the progress of the initiative.
Phases and decision points are not created manually but according to the PPM configuration.
There is no initiative without a phase or decision point.
An assignment to a portfolio bucket is already created when the initiative is created. The
figure, Structure of a Portfolio Initiative, shows the basic structure of an initiative and its links
to other objects.
In the course of editing an initiative, you can also consecutively create new portfolio items and
assign existing ones. Such portfolio items are then assigned to the initiative as well as to a
portfolio bucket, which also means that initiatives enable a different and additional
perspective of portfolio items than portfolio buckets. You can keep using portfolio items
without an assignment to an initiative.
An advantage of assigning several items to an initiative is that master data or authorizations
can be exchanged. Authorizations can be inherited in a top-down manner. Scheduling data
can then be inherited in a bottom-up manner, which implies that you can simplify data
maintenance. Changed data can be kept synchronously.
In PPM, there are two scenarios for this purpose: horizontal and vertical data synchronization.
You are not limited to the two objects, initiative and item, either. The synchronization of data
is a part of Decision Flow Management (DFM), which was introduced with SAP Resource and
Portfolio Management (SAP RPM) 4.5.

Lesson: Creating Portfolio Initiatives
Portfolio Initiative Master Data
Figure 47: Portfolio Initiatives in PPM
Portfolio initiatives are of operational character. However, they also summarize the data of
subordinate objects. This difference is illustrated in the figure, Portfolio Initiatives in PPM. You
can see phases and decision points that represent the progress of the initiative and thus also
affect the progress of subordinate objects.
The subordinate objects are portfolio items. In documentation, such items are usually
referred to as initiative items to distinguish them from normal portfolio items.
Portfolio Initiative Basic Functions
● Overview specifies description and identification, status, dates, and settings for financial
planning and capacity planning.
● Assigned items assign existing items to the initiative or create new items.
● Capacities and financial planning determine plan data manually, or determine the capacity
data and financial data by rolling up the planning of subordinate items. Alternatively, derive
financial planning from the capacity planning data.
● Stakeholders assign parties and persons involved in an initiative.
● Phases and decisions use phases and decision points to map the life cycle of an initiative.
The phase concept is based on that of Project Management. Stakeholders can be included
in the approval process.
● Questionnaires assign values to fields that would otherwise be difficult to determine.
● Checklists document the completion of the most important topics of an initiative. The
structure of the checklists is again based on the checklists in Project Management.
● Change documents are used for attributes, status, object links, and authorizations.
● Process change changes the portfolio initiative type.
● Classification hierarchies for initiatives are used to map initiatives to alternative
hierarchies in addition to a portfolio structure.
● Versions for initiative, assigned items, and projects to store historical data.


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Lesson: Managing Classification Hierarchies

Figure 38: The Concept of Classification Hierarchies

Portfolio – Specific Classification Hierarchies

Figure 39: Portfolio – Specific Classification Hierarchies

You can create classification hierarchies as portfolio-specific hierarchies or as cross-portfolio

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Portfolio Elements and Classification Hierarchies

Planning Classification Hierarchies

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1. Create a classification hierarchy named Markets##. Set the Status to Active.

3. Check your classification hierarchy from the Portfolio Management tab.

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1. Create a classification hierarchy named Markets##. Set the Status to Active.

b) Choose Classification Hierarchies.

c) Choose Create Classification Hierarchy.

e) Choose the Continue.

g) Choose Save and close the classification hierarchy.

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Bucket Name Markets##

g) Choose Save and close bucket Markets##.

i) On the Classification Hierarchy: Markets## screen, choose Save.

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3. Check your classification hierarchy from the Portfolio Management tab.

b) Choose Switch Portfolio.

c) On the Switch Portfolio dialog box, choose Markets##.

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Configuration for Classification Hierarchies

Figure 40: Configuration of Classification Hierarchies

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b) On the Customizing: Execute Project screen, choose SAP Reference IMG.

e) On the Information screen, choose Continue.

h) On the Information screen, choose Continue.

j) Return to the Display IMG screen.

c) To return to Customizing, press F3.

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1. When you create a portfolio, it is mandatory to select a portfolio type.

4. Which is the smallest period unit?

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X A Financial and capacity period breakdown

X C Financial and capacity planning

X A Financial and capacity planning

X B Financial period breakdown

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Learning Assessment - Answers

1. When you create a portfolio, it is mandatory to select a portfolio type.

Correct. When you create a portfolio, it is mandatory to select a portfolio type.

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4. Which is the smallest period unit?

Correct. Month is the smallest period.

X A Financial and capacity period breakdown

X C Financial and capacity planning

X A Financial and capacity planning

X B Financial period breakdown

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● Configure a portfolio item type

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Portfolio Item Type

Figure 41: Definition of Portfolio Item Types and Dependent Settings

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