Say that your business process involves registering a concept, doing some high level analysis and, if it is a feasible concept, converting it to a project.
One way to represent this situation in SAP PPM is to create two Items / initiatives, one for the concept and another for the project.
But if it is a one-to-one relationship (i.e. 1 concept gets converted to 1 project), then there is a better way.
It is best to convert the item type from Concept to Project. This way you can trace the lifecycle of that concept through the one item, instead of having two entries / items for the same piece of work.
SAP PPM supports such best practice functionality of converting an item / initiative from one item / initiative type to another. Furthermore, it allows you to take a snapshot of the item at the point of conversion, so you have it for traceability, audit and version analysis.
How To Enable Item Type Conversion in SAP PPM
Assuming you have the two item types set up (Concept and Project), navigate to SAP Portfolio and Project Management > Portfolio Management > Global Settings > Portfolio-Independent Settings > Define Portfolio Item Types in the IMG.
Select the Concept item type, and double click the Permitted Item Types for Switching To from the Dialog Structure.
In the pop-up, select the decision point at which you want to allow the Concept item to be converted to a Project item.
In the resulting window / table, click on New Entries and select Project as the Target Type. Save.
Converting Item Type on Portal End
To test this on portal end, go into any item with item type Concept and progress the decision points up the point where you allowed the conversion to occur in the IMG. Then click on the Change Process button in the item details screen.
In the pop-up, click on the Item Type dropdown and select Project. Save.
That is how you convert one item type to another.