SAP PS Overview

Welcome to Project System(PS) Overview

Project Definition
Numbering
Project Numbering & Coding Masks

Project Definition

Settings
Field Requirements Project Profile

Responsibilities Dates

Organisational Data

What are Work Breakdown Structures used for?

Planning: Planned Costs Periodic Processing: Overheads Settlement Earned Value Analysis

Dates: Basic Dates Scheduled Dates Actual Dates

Budget:
WBS Structure

Execution: Actual Costs Commitments:

Original Budget Budget Updates Release Budgets Availability Control

Purchase Requisition Purchase Order

Work Breakdown Structure

Organisation & Responsibilities

Work Breakdown Structures

Operative Indicators

Structure Objects

Documentation

Operative Indicators and Attributes

WBS 1

WBS 1.2
Partially Rel

WBS 1.3
Released

WBS 1.4
Partially Rel

WBS 1.2.1
Released

WBS 1.2.2
Released

WBS 1.4.1
Released

WBS 1.4.2
Released

Planning Element
For planning costs Plan/actual cost comparison

Key
Account

assignment element

For posting actual costs Network / Maintenance Order assignments

Activities and Networks - Functions

Internal Activity Milestones: Milestone Trend Analysis Internal Work Dates, Capacities Costs External Activity / Service: Dates Costs Commitments

Dec 12

Material: Costs Activity: Dates Costs

Network

Periodic Processing: Overheads Settlement

Mar April

Dates Costs Commitments

System Status and User Status control

CRTD PREL

CRTD

CRTD

PREL

REL

CRTD

CRTD

CRTD

CRTD

CRTD

REL

REL

REL

What is Status control used for?

To allow or forbid certain business transactions.

Which elements?
Project definition and WBS elements are affected.

How?
Status are activated manually or automatically by the system.

Why system and user status?

User status adds detail to the system Status.

System Status
The following status are set by the system/user as the project goes through Its different stages:

CRTD Created (Automatic) REL Released (Manual) LKD Locked (Manual) UNLK Unlock (Manual) BUDG Project Budgeted (Automatic)

AVAC Availability Control Activated (Automatic)

TECO (Manual)

Planning versus Budgeting

Planning
Externally Financed Projects Cost-oriented (cost elements, plan versions, period values) Easily changed; line items created if desired No availability check

Budgeting
Internally Financed Projects Funds-oriented (original, supplements, returns, annual values) Binding values; line items for each change Availability check: For eg. Warning at 95% Error message at 110%

"FUNDS REQUESTED"

"APPROVED FUNDS"

Cost Planning in Projects

WBS 1

WBS 1.1

WBS 1.2

WBS 1.3

Cost Element Planning Activity / Network Costing

Easy Cost Planning

Internal Processing

Work: 500hrs

Output provided to complete activities

1200
Organisational unit Where an activity is carried out or work output is provided.

Work Center

Scheduling Data

Capacity Available

Cost Center
Responsible Persons Cost Center Data

External Processing
Work Performed by a third party (Vendor) 1300
Description Material Group Purchasing Group Quantity & Unit Price per Unit
Entry of Services performed PO Processing

PR Committments
Invoice Verfication Purchase Requisition Bid Invitation

Actual Costs
Good Receipt / Service Receipt

Quotation Entry

Vendor Selection

Vendor
Purchase Order

1000

PO Committments

Network Activities
Internal Processing: Work / Services performed inhouse External Processing:

Purchasing of work / services

Costs Activity:

Services: Purchasing of services with service specifications

Planning of additional primary costs

Four Types of Activities

Internal Processing External Processing

Activities and Activity Elements

Internal External

Costs, services
General Cost Activities

Reference Dates from Activity

Start or Finish

Activity Elements
Work External Costs Service
General Costs Service

Activity Assignment to WBS

WBS 1

Date Planning
Cost Planning Generating Settlement rules Activity Elements

WBS 1.3

WBS 1.4

WBS 1.5

WBS 1.3.1

WBS 1.3.2

WBS 1.5.1

WBS 1.5.2

1100 1000 1200 5000

Network

Logical Sequence

Relationships
FS Relationship

Time Sequence

SS Relationship

FF Relationship

SF Relationship

Integration with MM
2000 1000 4000 5000 3000 6000

Definition
Material required for performing an activity or for manufacturing a product.

Item Category

Project Stock

Plant Stock

Non Stock

Materials Materials Materials

Stock Item L

Stock Item L

Non-Stock Item N

Purchase Req.

Reservation

Purchase Req.

MM

Services

2000

3000 6000

1000 4000 5000

Services
Allows you to define services to be procured. Individual service specifications can be created for each planned procurement in the Purchasing document.

Services
Description Material Group

Service Number Planned Services Unplanned Services

Purchasing Group
Service Specifications

Service Master Or text / value

Value Limit

Vendor 1000
Purchase Order

Purchase Requisition

Value Check

External Services Management 2000 3000 1000 4000 5000

Actual Costs
Invoice Verification

6000
PR Commitments
Purchase Requisition Bid Invitation

Services

Services Finally Complete

Item Category D

Quotation Entry

Service Entry Sheet PO Processing

Vendor Selection

PO Commitments

Project Dates Project Definition

BASIC DATES

Project Definitions

WBS Elements
BASIC DATES FORECAST DATES Scheduled Dates Actual Dates

Network Header
BASIC DATES Scheduled Dates Actual Dates

Network Header

Network Activity
CONSTRAINTS Earliest scheduled dates Latest scheduled dates Actual Dates

Activity Element
Earliest scheduled dates Latest scheduled dates Actual Dates

BOLD Manual Planning Dates

Italics Automatic Dates

Bottom-Up planning
WBS
P P1 P2

Project planning board

P

P1

Extrapolate Dates Automatically

P2

20 10 40 50

60 80

10 20 30

30

70

Network 1

Network 2

40
50 60 70 80
Basic dates in project definition

Example of scheduling6 D 20
20 3 3 10 1 1 2D 2 2 30 3 4

6D 8 8 50 9 9

2D 4 5

40 5 6

3D 7 8

3D 11 11

10 20 30 40

Earliest
Start Date

Earliest Finish
Date

10 1 1
Latest Start

2D 2 2
Latest Finish Date

50
1 2 3 4 5 6 7 8 9 10 11 12 13 Days

Date

Legend

Time Constraints Start 1

Before

2
Before

Start

Finish

After

After

For activities, time constraints set 1. An exact start / finish 2. The earliest value limit
( ( = must) = not before)

Cost Planning and Budgeting Approval

Budget applied for
2001 2000

Approved budget

Cost Planning
Annual plan value

Total
1 IT -1399 2 IT -1399-1 3 IT -1399-1-1 3 IT -1399-1-2 2 IT -1399-2 . . . O R I G I N A L P L N D T O T A L D I S T R B T

Cost Budgeting
... ... ... ...

Budget

Bottom-up extrapolation

Top-down distribution

Budgeting Overview

Budget Values

Availability Control:
Against Current

Budget Updates

Budget Against Budget Releases

Budget Carryforward

Release Budget

2002

2003

Commitment Management MM

Purchase Requisition

WBS Element DS-0310001: Server

C/Elem
Purchase Order

Committed
6000

Actual
5000

Assigned
11000

4000000

WBS Element DS-0310001: Server C/Elem

Goods Receipt

Committed 0

Actual 11000

Assigned 11000

4000000

Commitment management allows you an early recording and analysis of such commitments for their cost and financial effects.

Availability Control
WBS 1.1.1

No more Funds available!!

Business Events
Invoice

Budget Comm Actual Total 2003 2004 50 30 20 10 5 5 40 25 15

Availability check

Checks overall funds available

Purchase order Purchase Requisition

Availability Control Animation

Budget 200 000

Budget 120 000 Actual 80 000

Budget

80 000

Assigned 76 Assigned 101 000 At 110% budget completion, An error message is Posted by the system and mail Sent to the responsible person.

Commitments 25 000

Activities 76 000 At 95% budget completion, A warning message is Posted by the system. NOTE: Percentages differ across project processes

Actual costs 80,000

Commitments
(purchase order, purchase requisition, funds reservation)

Networks / Orders 76,000

Items within budget are Successfully posted.

25,000

CO

MM

PS

PM

Deriving Settlement Rules

Settlement Strategies

2
Manually for Assets and Cost Centers

1
Proposed by default rule To assigned WBS

Periodic Settlement Processing

1 Periodic Settlement to AUC 2

Final Settlement to Fixed Assets

Asset Under Construction

Final Asset

Project Closing Case Flow Diagram

Final Settlement from AUC to Assets Reduce released budget

Return Original Budget

Delete unused WBS Elements

Clear Project Stock

Update all WBS Elements to TECO

Close project definition

Perform Budget Return check

SAP PS Overview

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