Project System Module (PS)

Presented by:

Greg Martinez Paula Erickson

CSU Chico
SAP AG

Overview
Review of Organizational Elements and Master Data Overview of Projects using the PS module and how it is integrated with other modules in the R/3 System Become familiar with the basic functions in the PS module

CSU Chico
SAP AG

Organizational Areas in R/3

Sales
Sales organization Sales area Company code Business area

Accounting

Purchasing
Purc.organization Warehouse

Cost accounting

Plant Maintenance/ Service

Maintenance

Production

PS

Controlling area Prof.segment

Human resources

Treasury

CSU Chico Plant

Planning Plant

Personnel area

FM area

SAP AG

Organizational Structures: Accounting

Operating concern Operating concern IDEA IDEA Fin.mgt area 1000 Controlling area Controlling area 1000 1000

Company code Company code 1000 1000

Company code Company code 1000 1000

Company code Company code 2000 2000

Business Business area 4000 area 4000

Business Business area 6000 area 6000

Business Business area 1000 area 1000

Business Business area 2000 area 2000

Business Business area 4000 area 4000

CSU Chico
SAP AG

Organizational Structure: Logistics

Controlling area Controlling area 1000 1000 Company code Company code 1000 1000 Purchasing organization Purchasing organization 1000 1000 Sales organization Sales organization 0001 0001 Sales path Sales path 01 01 Division 06 Division 06 Division 08 Division 08

Valuation level Valuation level Plant 1200 Shipping point 0006 Shipping point 1200
SAP AG

Plant 1300 Storage location 0001 Storage location 0002 Storage loc.003 (WMS store)

CSU Chico

Organizational Elements and Master Data

Operating Concern - (CO) Part of organization for which the sales market is structured in a uniform manner (product group, customer group) can contain >1 controlling area Controlling Area - (CO) Identifies a self-contained, organizational unit within a group, for which cost accounting can be performed Company Code - (FI) Smallest organ unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting

CSU Chico
SAP AG

Organizational Elements and Master Data

Division -(SD) Based on responsibility for sales or profits from salable materials or services Plant - (LO) Within Logistics, a place where either materials are produced or goods and services are provided. Assumes variety of roles (Maintenance Plant, retail or wholesale site) Storage Location - (LO) Allows the differentiation of materials stocks within a plant Shipping Points - (SD) Fixed location that carries out shipping activities (companys mail department)

CSU Chico
SAP AG

Organizational Elements and Master -Data a separate area of operations or Business Area (FI) Represents
responsibilities within an organization. Can have several Company Codes Purchasing Organization - (MM) Procures materials and services, negotiates conditions of purchase with vendors, and bear responsibilities for such transaction Sales Organization - (SD) Sells and distributes products, negotiates terms of sales, and is responsible for these transaction Organizational Structure is prerequisite for making correct application specific system setting in customizing - it is the framework

CSU Chico
SAP AG

Master Data
Accounting

Central Functions
Classes Characteristics Object dependencies Documents

Capital investment management

G/L account Chart of accounts Asset CI program Cost center Cost element Activity type Profit Center

Cost Acctg

Purchasing
Material Activity master Vendor Purc.info record
WBS

Treasury
Commt item
Network

Plant Maintenance/ Service Equipment

Maintenance

Production

Human Resources

CSU Chico Work center

BOM PRT

Person Qualification profile

SAP AG

Controlling Levels Management

Result

Controlling
u ct Ac l A l te te sa dg sa dg Fd Buman Fd Buman m l mPl P co t co t

Execution

Resources

Value
Capital Vendor Personnel Procurement Assets Investment Production Materials Costs S&D

Time
Revenues

Customer

CSU Chico
SAP AG

Departments

Project Tasks
Cross-department
Purchasing Sales Accounting Production

Hierarchy of tasks

Agreements

Planning and Controlling

Dates
Resources

Budget Costs

CSU Chico
SAP AG

Overview of Projects
Tasks with particular characteristics

Complex, unique, and involve a high degree of risk Limited duration, and cost and capital intensive

To execute a project:

Need a project-specific organizational form Must describe the project objective Structure the project activities you want to perform

Structured according to:

How it is organized using Work Breakdown Structure (WBS) The processes involved using Networks

CSU Chico
SAP AG

Project System
Use
- Investment - Marketing - Make-to-order production - Asset construction - Shutdown - Services - Plant maintenance -R&D - EDP projects

PS
Views
- Materials Management - Cash Management - Resources - Operating results - Controlling - Periodic processing - Configuration - Workflow - Investment Management

Functions
- Structures - Time scheduling - Project plannimg board - Cost planning - Financial data - Budget - Info system

CSU Chico
SAP AG

Integration
SD Quotation Order Billing document

Plan order Production order Settlement

PP

MM Purchase requisition Purchase order Goods receipt Invoice receipt Material issue

CO Order Surcharges Distribution Assessment Activity allocation

PM Plant maintenance order Settlement

FI

AM Asset under construction Settlement

CSU Chico

Invoice

SAP AG

Integration of Financial Data

MM FI
Purchase requisition

> 3.0

Purchase order

Down payment request Down payment

Goods issue Invoice receipt

Bank clearing

Payment

Expenditure PS

Financial budget

Revenue > 3.0

Quotation Sales order Down payment request FI Down payment Delivery Invoice issue Bank clearing Payment

> 3.0 SD

CSU Chico
SAP AG

Integration Example: Vendor Down Purchase Payment order item

Payment Difference between invoice and down payment clearing Down payment request

Down payment clearing Invoice checked against down payment document

Down payment

CSU Chico
SAP AG

Invoice

Integration Example: Purchasing

Purchase requisition
BE

? = Invoice Invoice verification verification Bid invitation

Goods Goods receipt receipt

Entry of quotation

Purchase order monitoring

Vendor selection

CSU Chico
SAP AG

Ordering Ordering

Function Model (5)

Status/ Phase Structuring
Concept

Structuring
Structure

Planning
Costs Dates

Approval
Budget

Execution
Actual data

Closing
Settlement

Project definition

Commitment, costs, revenues

...

Work breakdown structure

Budget t

Network

Release

... Confirmmation PP order

CSU Chico
SAP AG

TIME

Settlement

Settlement

... ...

... ...

Costs Dates

Operative Structures in Projects

WBS

Network

CSU Chico
SAP AG

Project definition

Operative Structures in Projects

Project definition

Defines task to carry Contains data which is binding on the whole project

such as start and finish dates and organization data WBS is the model of the project

Project services to be rendered in graphical form Operative basis for cost planning, time scheduling, and budget

allocation in projects Network reproduces the activities from the project

Operative basis for the planning and control of dates, costs and

resources (personnel, machines, PRTs, materials)

CSU Chico
SAP AG

Master Data
Project definition Work breakdown structure
Responsibility-oriented organization

Network
Process-oriented organization

1:N 1:N

Budget Costs

Dates Resources Resource costs Basic dates Organizational units

CSU Chico
SAP AG

Basic dates

Project Definition

March 31

April 6

Dates Basic dates for entire project

Default values Company code Currency Settlement rule

Planning parameters For dates For costs

April 7

CSU Chico

Organizational outline Controlling area

SAP AG

Projection Definition
First Step in creating a project Outline connecting all objects created within a project Contains data used for the entire project Default values that are copied into the new WBS elements you create for this project

CSU Chico
SAP AG

Work Breakdown Structure

Dates Basic dates Scheduled dates Actual dates Costs Planned costs Actual costs
April 7

Budget Original budget Release budget

Purchase order

Financial data Customer Vendor

Commitment Purchase requisition Purchase order

CSU Chico Periodic processing Surcharges

Settlement

SAP AG

Work Breakdown Structure

Focus is on planning, analysis, description, control and monitoring costs, basic dates and budgets It forms the basis for organization and coordination in the project Shows amount of work, time required, and cost involved Operative basis for further steps Structured according to different criteria depending on level detail Tasks and Activities are describe as individual elements

CSU Chico
SAP AG

Work Breakdown Structure

WBS Elements

Can be:

Tasks Partial Tasks which are subdivided further Work Packages

Start and finished dates Text describing the work to be performed Responsible cost centers Cost centers carrying out the project

CSU Chico
SAP AG

Structure of a WBS

Currency

Milestones

PS texts

Documents

Subproject
SAP AG

CSU Chico

Network
Internal processing
Work Dates Costs

April 7

Scheduling
Relationships Constraints Floats Critical activities

External processing
Services Dates Costs

Controlling
Earned value reports Capacity load

Material
Purch. parts / assemblies Dates Costs, commitment

CSU Chico
SAP AG

Periodic processing
Surcharges Settlement

Network
Networks represent processes or task in a project Essential elements of a network are:

Activities

Work Center, Duration, S&F, Resources Required, Texts

Activity elements Relationship The Network Header contains data required for the entire network

CSU Chico
SAP AG

Network are answered using network information Question that

Where are we unclear? Where are the Scheduling uncertainties? When and what amount are cost incurred? When and what quantity do resources are made available?

Relationships

FS (finish-start) SS (start - start)

FF (finish-finish) SF (start-finish)

CSU Chico
SAP AG

Structure of a Network Network header

External processing General costs activity Documents Services External processing PS texts Internal processing
Int. processed element Ext. processed element Gen. costs element

Milestones Internal processing Material components Production resources/tools Qualification

CSU Chico
SAP AG

Relationships
Production FS relationship Assembly

Design SS relationship

Purc.order

Purc.order

BOM

FF relationship

Design
Work scheduling

SF relationship

CSU Chico

Acceptance

Start -up

SAP AG

Work Breakdown Structures and Networks WBS Network

13 13 1000 1100 1100 13-1 13-1 13-2 13-2 13-3 13-3 13-4 1050 1050 1060 1060 1140 1140 13-1-1 13-1-1 13-1-2 13-1-2 13-2-1 13-2-1 13-2-2 13-2-2 2000 2000 1050 1050 1030 1030 1060 1060 1100 1100 1080 1080 3000 3000 1120 1120 1030 1030 1120 1120 1170 1170 1000 1000 1080 1080 2000 2000 1140 1140 1170 1170 1170 3000 3000

Elevator 1 Engineering 1-1 Elec.parts 1-2 Mech.parts

13-2 Procurement 13-2-1 Elec.parts 13-2-2 Mech.parts

13-3 Assembly 13-4 Insurance

1000 Layout 1030 Engineering: Mech.parts 1050 Engineering: Elec.parts 1120 Procurement:: Car 1080 Procurement: Mech.parts

1060 Procurement::Motor 1100 Procurement: Elec. parts 1140 Assembly 2000 Acceptance 1170 Release 3000 Insurance

CSU Chico
SAP AG

Planning (Cost and Dates)

Various ways of planning dates

Plan dates in the WBS, binding on any further planning Dates in the network are determined by the system or manually Plan dates in lists, or using the various PS graphic interfaces.

Types of dates

Basic Dates - Binding basis of time schedule in the WBS elements Forecast Dates - Expected dates for WBS elements

CSU Chico
SAP AG

Planning (Cost and Dates)

Plan cost at different levels of cost planning

Structure planning (by WBS)

Plan cost without the reference to a cost element

Cost element planning (detailed planning)

Plan cost with reference to a cost element

Unit Costing

If information on sources of supply, quantities, and prices is

available, you can use unit costing to produce a project cost plan

CSU Chico
SAP AG

Approval (Budget)
Approval Phase

Prescribe the project funds in the form of a budget

Budget differs from the cost plan in that it is binding

Starts with defining an original budget for the WBS element Store as overall, then distribute it Release the budget in stages, prevents exceeding early

CSU Chico
SAP AG

Execution (Actual data)

Actual dates and costs are confirmed

status of activity processing is documented system checks the dates of the WBS element and set actual dates Actual cost create activity allocation Tolerance limits Integration

CSU Chico
SAP AG

Closing
Project closing

Collecting all costs Settling the costs Closing the structures

CSU Chico
SAP AG