SAP PS overview

Ver. 01.00 WEF 27th Jan 2016 Doc. Ref. No. IBS/PCR/01
VARUN MAHESHWARI
varun.Maheshwari@hotmail.com
SAP PROJECT SYSTEM

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Content
 SAP Project System: Introduction
 SAP Project System: Functionalities
 Master data
 Phases in SAP PS
 Project Structure
 Project Builder
 Project Scheduling
 Project Workforce Planning
 Project Procurement
 Project Cost Planning
 Project Revenues
 Project Budgeting
 Project Execution
 Project Payment
 Period End Process
 SAP Project System: Project Analytics
 Project Information System
 Project Progress

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What is Project?
Projects are tasks with special characteristics:
•They are generally complex, unique, and involve a high degree of risk.
•They have precise goals which are agreed on by you and the ordering
party.
•They are limited in duration and are cost and capacity intensive.
•They are subject to certain quality requirements.
To be able to carry out a project in its entirety, the project goals must be
precisely described and the project activities to be carried out must be
structured

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SAP PS Introduction
 SAP Project System (PS) is a Project Management module in SAP that assists us
throughout the lifecycle of a project.
 Projects in PS are normally given an appropriate structure to allow dates,
resources, costs, budgets and payments to be planned, controlled and monitored
transparently. Hierarchies are used for evaluating aggregated data, allocating
budgets and defining responsibilities.
 SAP Project System (PS) module is seamlessly integrated with both the Logistics
and Accounting modules in SAP (like MM, HR, SD, PP, PM, FI, CO, FM etc.)
 Projects in PS are broadly classified as:
 Customer / Revenue Projects
 Investment / Capital Projects
 Costs / Overhead Projects

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Phases in SAP PS
The project itself comprises several phases. A high degree of precision is required when
planning and coordinating large and complex projects. When planning the flow of a project,
you will schedule deadlines and dates, make resources available, and assign funds. The
Project System gives you the support you need in all project phases.

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Project Structure
 Project definition: The project definition is
the binding framework for all
organizational elements within a project.
 Work Breakdown Structure
Hierarchically structured elements to
build up project organization and enable
top-down/bottom-up scenarios for project
management (time, costs, resources), as
well as assignment of all kinds of related
objects, activities.
 Activities (Network)
Chains of activities linked via
relationships provide network technique
to model the projects’ process flow and
allow typical functions like scheduling,
capacity planning, or procurement on
them.
 Milestones
Key dates assigned to the WBS or to activities
to trigger subsequent functions.

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Coding Mask
• Coding mask serve as a display option for complex project number
• Used to derive the hierarchy
of a work breakdown
structure from the number of
their WBS element.
Coding mask for
Project
Project created
with coding
mask

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Project Creation in Project Builder
(CJ20N)
The Project Builder provides you with a user-friendly access into the Project System and
integrates all of the user-specific functions. In the Project Builder, you can create, display,
and process all the data of a given project structure.
The screen is split into three areas. At the top left, you see an overview of the structure of
the created project (we refer to this as the structure tree). Beneath this, you see the work
list area and the template area. On the right-hand side of the screen, you see the work
area.

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Project scheduling
• Project System provide various date
planning functions. Flexible scheduling
techniques can be used to calculate
earliest/latest dates, floats or critical
paths within projects.
• Dependent dates, such as requirement
dates of materials, services or
capacities, billing dates or periods of
planned costs can automatically be
derived from planned dates.
• Comparing forecasted, planned and
actual dates you can easily identify
deviations from your project plan.
• Additional tools such as Progress
Tracking, Subnetwork Monitor,
Simulations or Milestone Trend
Analysis enables you to manage the
dates of your projects efficiently.

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Workforce Planning
• For detailed workforce planning you can assign organizational units or individual personnel
resources to work packages of your project.
• Because of the tight
integration of Project
System to Human
Capital Management
you can directly access
the availability or even
qualifications of
employees if required
during workforce
planning.

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Material and external service
planning
• If you assign material components
to Networks you can plan material
requirements based on your project
schedule, check the material
availability and trigger the material
procurement and delivery later on.
• Functions such as project specific
bills of material, bill of material
transfer, the open catalog interface
or integrations to Integrated Product
and Process Engineering (iPPE)
helps you to plan materials
efficiently in Project System.
• In order to plan external services
you can directly use purchasing info
records, outline agreements or
service specifications from Materials
Management in Project System. The
open catalog interface allows you to
select services also from internal or
external service catalogs

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Cost Planning
Structural Cost Planning:
It is the most basic for of cost
planning. Strong hierarchy of
WBS-Elements can be used to
plan costs in a top-down- as well
as in a bottom-up-procedure. For
this, the detail can vary from
overall to periodical values, also
on a cost element level.
Easy Cost Planning:
Predefined calculation templates
presented in a highly configurable,
HTML-based user interface
provide an end-user focused easy-
to-understand environment. It is
an easy-to-use tool to plan costs
by cost elements in a quantity
structure.

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Revenue Planning
• Structural Revenue Planning:
Revenue can be planned directly within the
WBS hierarchy on Various level.
• Project/Sales order billing Plan:
The billing plan provides revenue planning by
percentage or as overall values either via the
project or the sales order.
• Milestone Billing:
Dates and progress of milestones are used to
trigger the billing procedure.
• Resources related billing:
Planned resources are used to feed the
projects sales price calculation. During
execution, actual costs can be used to derive
the billing. The flexible and easy-to-use
Dynamic Items Processor supports this.

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Budget
Management
 Project Budgeting along the Work Breakdown Structure
The projects’ cost plan are the basis for deriving the original budget. After the approval, this
can be used to control the budget availability against the expenditures during the execution
phase. Additionally, the original budget can be broken down into smaller packages of
released budget to allow an even more accurate availability control. All budgets can be
planned by year or as overall values.
Project Cost Plan
Original Budget
+ Supplements
- Returns
Budget
Approved
Yearly
Budget
!Released Budget
Budget availability control enables you to control costs actively by issuing warnings
and error messages when tolerance limits of the budget are exceeded because of assigned
values.
Budget
Availability
Control

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Budget Management
Budgets can be distributed hierarchically within the project structure. If required you can
successively release budgets and post updates, such as budget supplements or returns.
Budget Release: In the project system there is a release function with which you can
successively release budget. A release is based on the current budget, meaning the
original budget that has been changed by supplements, returns, or transfer posting.
Budget Supplement
If the funds provided are not sufficient, the Project System enables you to use budget
supplements, which can be used on the project.
Budget transfer (CJ34)
In an area of responsibility, budget run low on a project, while on another project there is
still sufficient budget. You can use transfer postings to provide a project with available
budget from another project.

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Project Execution-(Time)
• HR
• CO
• MM
• CS
• PS
Time Tracking
Time Release
Time Approval
Transfer
M T W T FTarget
6 3 8 4Project / HR
8 2 5 4Cost Center / HR
CATS
Internal &
External
Persons
• In the execution phase of projects confirmations can be used to document the
actual work performed and the progress of individual work packages.
• Using confirmations you can also enter forecast information such as the
remaining work or duration.
• Because of confirmations the dates and capacity requirements of your project
will be adapted and actual costs are posted automatically to the project.

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Project Execution-(Time)
 Cross Application Time Sheet CATS
Once a project is released, actual time/cost can be booked against the project. Besides
using a manual confirmation, CATS offers an ergonomic time entry interface.
 Before times are transferred to the target applications, entered times can be approved
and released. The entered times lead to appropriate actual times and costs on the
projects. Full change and cancellation handling are also provided.

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Payment
 Project Cash Management
Project-related payments can be planned either manually, based on project cost plan, or supported by
various tools like invoice/ billing plans or down payment requests. During execution, payment relevant
postings - through integration of other SAP Solutions – are feeding Project Cash Management and
provide the most accurate information possible on incoming and outgoing payments.
 Payment Flow Analysis / Interest Calculation
Payment information can be used to run various analysis as well as an interest calculation.
Cash In
Cash Out
Interest Calculation
Payment Flow Analysis

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Period End Process
• You can perform
various period end
closing procedures
on your project to
ensure that all
project data
belonging to a
period is determined
and available for
purposes of
enterprise control.
• You can use the
Schedule Manager
to easily plan, carry
out and control your
period-end closing
procedures.

Project Analytics

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Project Information System
Workforce
Structures  Logistical Infosystem
Structures/Dates/Procurement
 PS Infosystem Finance
Controlling/Finance/Payment
 Capacity Information System
Workload/Workforce Planning
Controlling
Hierarchy &
Cost Element
Reporting

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Project Progress
Cost-to-Complete
Progress Analysis
Milestond
Trend
Analysis
Progress Tracking

X
X
 Progress Analysis/ Earned Value
 Cost-to-Complete
 Milestone Trend Analysis
 Progress Tracking

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