SAP Project System For EC&O PDF

Detailed Overview –
SAP Project System

@ Customer ABC
Presentation Index
Project System
Easy
Presentation Index
EC&O
Topic
• An Overview – SAP Application & Modules • Resource Planning
• Enterprise Structure • Cost planning
• Data in SAP • Overhead allocation
• An Overview – Project Characteristics • Revaluation at Actual Prices
• Project System – Data Types • Cash management
• Project System – Organisation Structure • Budgeting
• Master Data – Project Definition • Revenues
• Master Data – Work Breakdown Structure (WBS) • Milestone Billing
• Master Data – Network Activity • Sales Pricing & Resource Related Billing
• Network Activity – Process Sequence • Assembly Processing
• Master Data – Activity Elements • Materials
• Master Data - Milestones • Commitment Management
• Related Master Data – From Other Modules • Confirmations
• Project Characteristic & Phases • Cross Application Time Sheet (CATS)
• Project Builder & Project Planning Board • BOM Transfer
• Date planning • Status Management
© Satyam 2008 3
Easy
Presentation Index – Contd…
EC&O
Topic
• Claims Management • Add Topics Here !!
• Project Versions
• Simulations
• Progress Analysis
• Results Analysis
• Period End Closing
• Mass Change
• Validation
• Substitution
• Interest Calculation
• Project Oriented Procurement (PROMAN)
• OPEN PS
• Archiving
• SAP PS Reporting
• Add Topics Here !!
© Satyam 2008 4
An Overview
SAP Application & Modules
Easy
EC&O SAP ECC 6.0 Application
Cross Industry
Financials Logistics HCM Application Solutions
Integrated Comprehensive
solutions SD FI functionality
Sales & Financial
Distribution Accounting
MM CO
Materials Controlling
Open Mgmt.
PP AA
systems Asset
R/3
Production
Planning Accounting Designed
for all types
Client / server QM
Client / Server PS of business
Project
architecture Quality ABAP System
Mgmt. PM
WF
Plant Workflow
Maintenance IS
HR
Human Industry
Resources Solutions
Enterprise data
model Scalability
Agenda © Satyam 2008 6

Easy
EC&O
SAP Technology Environment
Platform
SAP Application Modules
Independent
Platform
Dependent R/3 Data Repository
(Basis) Commun User
ications Interface
Database
Operating System
Hardware Platform and Environment
Enterprise Network

Easy
EC&O
Client Server Architecture

Easy
EC&O
Sample SAP System Landscape
Development Testing Production
Database
Servers
Application
Servers
Presentation
Servers

Easy
EC&O
Integration ---- An Example
Projects MM
SD Sales order
MRP
FI / CO
Purchase
Req
Purchase
Producti Order
on
Goods Receipt
Stock and
Plant maintenance consumption
accounts
updated
SAP ECC 6.0
Enterprise structure
Easy
EC&O Enterprise Structure
Company 0001
Company code 0001 0002
Purchasing 1000 2000

organization
Sales 3000 4000
organization
Plants 0001 0002 0003 0004 0005

Easy
EC&O Organizational Units
Views Levels
Group
Cost accounting Controlling areas
External logistics Sales organization Purchasing organiz.
Company codes
Financial accounting
Valuation areas
Internal logistics
(MRP/Production) Plants
Inventory mgmt Storage locations/batches/special stocks

Easy
EC&O Organizational Units
CO-
Operating Concern
PA
CO- CO- EC-

Controlling Area OM PC PCA
Focus on External
Company Code
Accounting
Sales Organization
Focus on Sales
A
A A
Plant Focus on Manufacturing

An Overview
Project - Characteristics
Easy
EC&O
What is a Project?
© Satyam 2008 16
Easy
EC&O
Project Characteristics
© Satyam 2008 17
Easy
EC&O
Project Environment and Constraints
© Satyam 2008 18
Easy
EC&O
Project Characteristics
• Projects are tasks with particular characteristics:

• They are usually complex, unique, and involve a high degree of risk.
• They have precise targets.
• They are limited in duration, and are cost and capacity intensive.
• Several departments are involved in a project.
• They are subject to specific quality requirements.
• They are of mostly strategic significance.
• Projects are usually an integral part of a business's commercial processes. To
control all the tasks which occur as part of project execution, a project-
specific organizational form needed and it should be in a central position to
the user departments involved.
© Satyam 2008 19
Easy
EC&O
Phases in Projects
© Satyam 2008 20
Easy
EC&O
Project System Functions
Project creation & structuring

• Planning
• Budgeting
• Controlling project status
• Scheduling
• Capacity planning
• Project versions
• Period end procedures
• Project reporting
© Satyam 2008 21
Project System
Data Types
Easy
EC&O
Data in SAP – Project system
Configuration Project , Budget & Settlement profiles,

Data
Master Data WBS Element, Network activities, Work

Centre,
Transaction Data Confirmations, POCs, Plan & Actual

Dates

Project System
Organisation Structure
Easy
EC&O
Project System – Organizational Units
NO ORGANISATIONAL UNITS OF ITS OWN RUNS ON OTHER ORG UNITS
•Controlling Area
Project Definition •Company Code
•Business Area
•Profit Centre
•Plant
WBS Element
•Controlling Area •Company Code

•Company Code •Business Area
•Business Area Network Header •Profit Centre
•Profit Centre •Plant
•Plant •Technical Location
•Equipment
•Resp Cost Centre
•Investment Program
•Joint Venture
Internally Processed Externally Processed

Material Components General Cost Activities
Activities Activities
•Purchasing Organization •Plant
•Purchasing Organization •Plant •Business Area
•Purchasing Group
•Purchasing Group •Work Center •Profit Center
•Plant
•Plant •Business Area
•Business Area
•Storage Location •Profit Center
•Profit Center

Master Data
Project Definition
Easy
EC&O
Project Definition:
• The binding framework for all organizational element created within a project.
• Start and end dates for the project can also be defined.
• Project responsibility can be defined
• Carries default data for WBS Elements
• Specifies the Budget settings
• Specifies the project number and WBS Element numbering
• Allows / Dis-allows project specific stock valuation

Easy
EC&O Project Definition
Numbering Project Definition

Project
Numbering
& Coding
Masks
Settings
Field Requirements
Project
Profile
Responsibilities
Organisational
Dates Data
© Satyam 2008 28
Easy
EC&O
Project Definition & Work Breakdown Structure

Easy
EC&O
Project Coding Masks and Special Characters

Easy
EC&O Project Profile
© Satyam 2008 31
Master Data
Work Breakdown Structure (WBS) Element
Easy
EC&O
Work Breakdown Structure
Organisation
&
Responsibilities
Work Breakdown Structures
Operative
Indicators
Structure
Objects
Documentation
© Satyam 2008 33
Easy
EC&O WBS Element - Functions

Easy
EC&O What Is a Work Breakdown Structure Used For?
© Satyam 2008 35
Easy
EC&O
Sample Project Structure
PROJECT DEFINITION
(WBS #)
WBS LEVEL 1
(BUILD
WHAREHOUSE)
WBS LEVEL 2 WBS LEVEL 2 WBS LEVEL 2

(Design) (Cost Estimate) (Build)
NETWORK
NETWORK NETWORK
(Initiate
(Site Prep) (Evaluate Bids)
Construction)
ACTIVITY ACTIVITY
(Grading) (Perk Testing)
© Satyam 2008 36
Easy WBS Elements – Operative Indicators and
EC&O
Organizational Data

Easy
EC&O
Sample Project Structure with WBS

Easy
EC&O Assigned Objects
© Satyam 2008 39
Easy
EC&O Project Documentation
© Satyam 2008 40
Easy Different Ways of Creating Work Breakdown
EC&O
Structures
© Satyam 2008 41
Easy
EC&O Derivation of the WBS Hierarchy Structure
© Satyam 2008 42
Easy
EC&O
Hierarchy Graphic

Easy
EC&O User-Defined Fields in WBS Elements
© Satyam 2008 44
Easy
EC&O WBS Master Data Process Flow
Receive Create
Start Request for Create Project Create WBS Settlement
New Project Rules
Perform Actual
End Release
Settlement Expenditures
© Satyam 2008 45
Master Data
Network activity
Easy
EC&O What Are Activities and Networks Used For?
© Satyam 2008 47
Easy
EC&O Different Ways of Creating Networks
© Satyam 2008 48
Easy
EC&O
Standard Structures
© Satyam 2008 49
Easy
EC&O Copying Projects from Templates
© Satyam 2008 50
Easy
EC&O Templates of Project Structures
• Standardization is one method of ensuring in the initial phase that projects

are structured efficiently and economically.
• By defining standard projects and networks, we can standardize project
management in a company by referring back to data that has been derived
from existing projects.
• A further advantage of standardizing project structures is that it makes the
processing of projects more transparent, enables the comparison of projects
and subsequently facilitates project controlling.
• In Project System, there are several different standard structures that you can
use as templates to create operative structures.
• Standard networks for creating networks, Standard project definitions for
creating project definitions and Standard work breakdown structures for
creating work breakdown structures.
© Satyam 2008 51
Easy
EC&O Templates of Project Structures
Standard
Project
Definition
Standard
WBS
Hierarchy
• Standard work breakdown structures are neutral project structures that can be used
as templates to create other standard or operative work breakdown structures. A
standard WBS has the individual tasks (WBS elements) by which the project is
structured, as well as general organization data.
© Satyam 2008 52
Easy
EC&O Network Type and Network Profile
© Satyam 2008 53
Easy
EC&O Network Activities
Internal Processing: External Processing:

 Work / Services  Purchasing of work /
performed inhouse services
Costs Activity: Services:

 Planning of additional  Purchasing of services
primary costs with service specifications
© Satyam 2008 54
Easy
EC&O Network Activities - Functions

Easy
EC&O WBS Structure and Networks - Example
WBS Network
13 1000
1100
1050 3000
13-1
13-1 13-2 13-3 13-4
1060
1140 1170 1000 1140 1170

1000
13-1-1 13-1-2 13-2-1 13-2-2
1080
2000
1030 2000
1050 1030 1060 1080
3000
1120
1100 1120
1060Procurement::Motor
1000 Layout
1100Procurement: Elec.
13 Elevator 1030 Engineering:
parts
13-1 Engineering 13-2 Procurement 13-3 Assembly Mech.parts
1140 Assembly
13-1-1 Elec.parts 13-2-1 Elec.parts 13-4 Insurance 1050 Engineering: Elec.parts
2000 Acceptance
13-1-2 Mech.parts 13-2-2 Mech.parts 1120 Procurement:: Car
1170 Release
1080 Procurement:
3000 Insurance
Mech.parts

Easy
EC&O
Project Structures Assignment
© Satyam 2008 57
Easy
EC&O
Assignment of WBS

Easy
EC&O Networks
 Network represents the flow of a project or of a task within a project

 Various structural elements can be graphically displayed for a project and
their interdependencies in Project System.
 Networks are used as a basis for planning, analyzing, controlling and
monitoring schedules, dates and resources (such as people, machines,
PRTs, materials, documents and drawings).
 Networks can be assigned to a project or a sales document, such as a
sales order.
 A network is a special type of work order that has the same structure as
production orders, maintenance orders, and inspection orders in the ERP
system.
 Network consists of the following:
 Activities
 Activity Elements
 Relationships

Easy
EC&O
Network Structure

Easy
EC&O
Network Activities

Easy
EC&O
Network Structure with Activities
© Satyam 2008 62
Easy
EC&O
Sub Networks
© Satyam 2008 63
Easy
EC&O
Activity Relationships

Easy
EC&O
Network Maintenance Options
© Satyam 2008 65
Easy
EC&O
Network Structure Graphic

Easy
EC&O
Network Structure Graphic – Additional Functions
© Satyam 2008 67
Easy
EC&O
Internal Activity Details and Work Center
© Satyam 2008 68
Easy
EC&O
External Processing Details
© Satyam 2008 69
Network Activity
Process Sequence
Easy
EC&O
Internal processing

Easy
EC&O External Processing/Services
© Satyam 2008 72
Master Data
Activity elements
Easy
EC&O
Activities and Activity Elements
 Four Types of Activities

 Internal Processing Internal External
 External Processing
 Costs, services
 General Cost Activities
 Reference Dates from Activity

 Start or Finish
 Activity Elements
 Work
 External
 Costs General Service
Costs
 Service
© Satyam 2008 74
Easy
EC&O Activity Elements - Functions

Master Data
Milestones
Easy
EC&O Milestone – Functions (for WBS)

Easy
EC&O Milestone Functions
© Satyam 2008 78
Easy
EC&O Activity Milestones
© Satyam 2008 79
Easy
EC&O
Milestones Usage
© Satyam 2008 80
Easy
EC&O
PS Texts, Documents, Milestones

Related Master Data
From other modules
Easy
EC&O Project System – Master Data Integration
Related master data from other modules
• Materials - MM
• Service Specifications - MM
• Work Centre - PP
• Production Resources & Tools - PP
• Activity Type - CO
• Cost, Revenue & Secondary Cost Elements - CO
• Statistical Key Figures - CO
• Cost Centers - CO
• Equipment - PM
• Functional Location - PM
• Employee master - HR
Project Characteristics & Phases
Easy
EC&O Project System - Characteristics

Easy
EC&O
Aspects of Project Execution
© Satyam 2008 86
Easy
EC&O
Phases in a Project (Customer Project)

Project Builder
&
Project Planning Board
Central transactions
Easy
EC&O Project Builder & Project Planning Board
 Project Builder
 Primarily used for creating & maintenance of structures
 Single window transaction
 Project Planning Board:
 Primarily used for scheduling and resource planning
 Based on Gantt chart

Easy
EC&O Project Builder
© Satyam 2008 90
Easy
EC&O
Project Builder

Easy
EC&O
Project Planning Board

Easy
EC&O
Project Planning Board: Integration

Project Processes
Date Planning
Easy
EC&O
Date Planning
 In this component you plan and check dates in the Project System.
 The purpose of date scheduling is to determine the duration, schedule dates,

float times and critical paths.
 You enter dates in the work breakdown structures and individual networks.
 You can check and change them in all stages of a project .

Easy
EC&O
Where do you Maintain Dates in Project System
Project Dates
Project  BASIC DATES

definition
 BASIC DATES
WBS  FORECAST DATES
elements  Scheduled dates
 Actual dates
 BASIC DATES
Network
 Scheduled dates
header
 Actual dates
 CONSTRAINTS
Network  Earliest (scheduled) dates
activity  Latest (scheduled) dates
 Actual dates
 Earliest (scheduled) dates

Activity  Latest (scheduled) dates
element  Actual dates
 SAP AG 2003 BOLD = Manual planning dates Italics = Dates calculated by the system

Easy
EC&O
Function of Dates

Easy
EC&O Actual Dates
© Satyam 2008 98
Easy
EC&O
Scheduling
How is scheduling carried out in Project system?
 Scheduling the Work Breakdown Structure

The system calculates the dates for an entire project or a portion of the project (sub
tree) with all associated activities when you select the scheduling function.
 Scheduling the Overall Network

In overall network scheduling, the system schedules all networks which are linked
with relationships
 Project Scheduling
In project scheduling you can schedule the project with all assigned activities, as in
WBS scheduling. Additionally you can decide whether just networks are scheduled
or whether service and maintenance orders are also scheduled.
 Network Scheduling
Scheduling determines the earliest and latest start and finish dates for carrying out
activities in the network and calculates the required capacity requirements as well
as the slack time or "floats".

Easy
EC&O
Scheduling

Easy
EC&O
Scheduling

Easy
EC&O
Bottom-Up Planning
Project planning board

WBS
P
P
Extrapolate
P1 P2 P1 Dates
Automatically P2
10
20 60
20
10 40 50 80
30 70 30
40
Network 1 Network 2
50
60
70
80
Basic dates in project definition
© Satyam 2008 102

Easy
EC&O
Scheduling Scenarios

Easy
EC&O
Scheduling – Floats
20 6D
3 8
3 8
10 2D 50 3D
1 2 9 11
1 2 9 11
30 2D 40 3D
3 4 5 7
4 5 6 8
10 Earliest Earliest Finish

Start Date Date
20
10 2D
1 2
30
1 2
40
Latest Start Latest Finish
50
Date Date
1 2 3 4 5 6 7 8 9 10 11 12 13 Days
Legend
© Satyam 2008 104
Easy
EC&O
Time Constraints
1 Start 2 Start Finish
Before Before
After After
For activities, time constraints set

1. An exact start / finish ( = must)
2. The earliest value limit ( = not before)
© Satyam 2008 105

Project Processes
Resource Planning
Easy
EC&O
Resources
 This component is used to plan the resources required for the work that is
carried out internally in a project. i.e. the work that is not procured externally
via purchasing
 You specify the work and the work center where this work is to be carried out
in the internally processed network activity.
 During scheduling the system determines the capacity requirements for the
project.
 In projects the most important resource is the project staff.
 Workforce Planning enables you to distribute work from network activities to

people, positions, and HR organization units according to periods.

Easy
EC&O
Resources

Easy
EC&O
Resource planning

Easy
EC&O
Workforce planning

Easy
EC&O
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
© Satyam 2008 111

Easy
EC&O External Processing
Work Performed by a third

party (Vendor)
1300 PR
Committments
Purchase
Description Invoice Requisition
Verfication
Bid
Material Group Actual Invitation
Costs
Purchasing Group Good Receipt /
Service Receipt Quotation
Quantity & Unit Entry
Entry of
Price per Unit Services
performed Vendor
PO Selection
Vendor 1000 Processing
Purchase
Order
PO
Committments
© Satyam 2008 112

Project Processes
Cost Planning
Easy
Project Processes
EC&O
Transactional data
• Date Planning • Claim Management

• Resource Planning • Simulations
• Cost Planning • Overhead Allocation
• Budgets • Progress Analysis
• Sales Pricing & Resource Related • Result Analysis
Billing
• Project Closing & Period Settlements
• Revenues
• Purchasing
• Confirmations
• Time Booking (Cross Application Time
Sheet)
• Milestone Billing
• BOM Transfers
• Status Management

Easy
EC&O
Cost planning
Purpose:
 To plan, monitor and control project costs
Integration:
 The component is tightly integrated with other SAP Modules, such as
1. CO - Controlling
2. FI - Financial Accounting
3. PP - Production Planning and Control
4. MM - Materials Management

Easy
EC&O
Cost Planning in Projects

Easy
EC&O
Network Costing

Easy
EC&O
Network Costing Paths
© Satyam 2008 118

Easy
EC&O
Header-Assigned Networks
© Satyam 2008 119

Easy
Activity-Assigned Networks
EC&O
© Satyam 2008 120

Easy Project Cost Planning Using Activities
EC&O
© Satyam 2008 121

Easy
EC&O
Cost Planning Using Cost Activities
© Satyam 2008 122

Easy
EC&O
Costs Activity Details
© Satyam 2008 123

Easy
EC&O Invoicing Plan
© Satyam 2008 124

Easy
EC&O
Easy Cost Planning

Easy
EC&O Execution Services
© Satyam 2008 126

Easy
EC&O
Planned Internal Activity Costs
© Satyam 2008 127

Easy
EC&O
Project: Assignment of Orders
© Satyam 2008 128

Easy
EC&O
Appended and Apportioned Orders
© Satyam 2008 129

Easy
EC&O
Tables for Order Values
© Satyam 2008 130

Easy
EC&O
Costing Parameters for: Network
© Satyam 2008 131

Easy
EC&O
Costing Variant: Valuation Variant
© Satyam 2008 132

Easy
EC&O
Order Categories and Order Types
© Satyam 2008 133

Easy
EC&O
Process Costs for Projects
© Satyam 2008 134

Easy
EC&O
Process - Definition and Rate
© Satyam 2008 135

Easy
EC&O
Cost integration using account assignment
© Satyam 2008 136

Easy
EC&O
Cost integration using account assignment
© Satyam 2008 137

Easy
EC&O
Cost Forecast : function
© Satyam 2008 138

Project Processes
Overhead Allocation
Easy
Project Processes
EC&O
Transactional data
• Date Planning
• Resource Planning • Claim Management
• Cost Planning • Simulations
• Budgets • Overhead Allocation
• Sales Pricing & Resource Related • Progress Analysis
Billing
• Result Analysis
• Revenues
• Purchasing
• Confirmations
Sheet)
• BOM Transfers

Easy
EC&O
Overhead Calculation

Easy
EC&O
Overheads
© Satyam 2008 142

Easy Costing Sheet
EC&O
© Satyam 2008 143

Project Processes
Activity Type – Revaluation at Actual Prices
Easy
EC&O Revaluation at Actual Prices
© Satyam 2008 145

Easy
EC&O Revaluation at Actual Prices
© Satyam 2008 146

Project Processes
Cash Management
Easy
EC&O
PS Cash Management
 Project Cash Management enables you to look at project-related payment

flows by supplying information on the timing of payments into and out of your
project.
 It also plans and monitors the payment flow from the project point of view.
 Project Cash Management thus differs from Cash Budget Management and
Cash Management in Treasury (TR), which monitor the payment flow for the
whole business.
© Satyam 2008 148

Easy
EC&O
PS Cash Management
© Satyam 2008 149

Project Processes
Budgeting
Easy
EC&O Planning versus Budgeting
Planning Budgeting
 Externally Financed Projects  Internally Financed Projects
 Cost -oriented (cost elements , Funds -oriented (original,

plan versions, period values) supplements , returns , annual values)
 Easily changed; line items  Binding values; line items for

created if desired each change
 No availability check  Availability check: For eg.

Warning at 95%
Error message at 110%
"FUNDS REQUESTED" "APPROVED FUNDS"
© Satyam 2008 151

Easy
EC&O
Cost Planning and Budgeting

Easy
EC&O
Budgeting Overview

Easy
EC&O Availability Control
No more Funds
available!!
WBS 1.1.1 Business
Events
Budget Comm Actual
Invoice
Total 50 10 40
2003 30 5 25
2004 20 5 15 Availability
check
Checks overall
funds available
Purchase
order
Purchase
Requisition
© Satyam 2008 154

Easy
EC&O Availability Control
Budget 200 000
Budget 120 000 Budget 80 000

Actual 80 000 76 000
Assigned 101 000
At 110% budget completion,
An error message is
Posted by the system and mail
Sent to the responsible person.
Commitments Activities
25 000 76 000
At 95% budget completion,
A warning message is
Posted by the system.
NOTE: Percentages differ
across project processes
Actual costs Commitments Networks / Orders

(purchase order,
purchase requisition, Items within budget are
80,000 funds reservation)
76,000 Successfully posted.
25,000
CO MM PS PM
© Satyam 2008 155

Easy
EC&O
Assigned Funds & Availability Control

Easy
EC&O Budget Distribution from Investment Management
© Satyam 2008 157

Project Processes
Revenues
Easy
Revenue Planning
EC&O
© Satyam 2008 159

Easy
EC&O
Revenue Planning : Overview
© Satyam 2008 160

Easy
EC&O
Manual Revenue Planning
© Satyam 2008 161

Easy
EC&O
Creating Billing Plans
© Satyam 2008 162

Easy
EC&O
Billing Plan: Structure
© Satyam 2008 163

Easy
EC&O
Account Assignment in Sales Document
© Satyam 2008 164

Easy
EC&O
Sales Order and Billing Plan

Easy
EC&O
Sales Document Structure
© Satyam 2008 166

Easy
EC&O
Functions in Sales Orders
© Satyam 2008 167

Easy
EC&O
Item Categories
© Satyam 2008 168

Easy
EC&O
Requirements Determination
© Satyam 2008 169

Easy
EC&O
Requirement Class
© Satyam 2008 170

Easy
EC&O
Account Assignment Categories
© Satyam 2008 171

Easy
EC&O
SD: Account Assignment and Processes
© Satyam 2008 172

Project Processes
Milestone Billing
Easy
EC&O Project processes
Transactional data

Billing
• Revenues
• Purchasing
• Confirmations
Sheet)
• BOM Transfers

Easy
EC&O
Milestone billing

Easy
EC&O
Milestone billing

Easy
EC&O
Milestone Billing Plan in Projects
© Satyam 2008 177

Easy
EC&O
Billing Plan in Sales Documents
© Satyam 2008 178

Project Processes
Sales Pricing & Resource Related Billing
Easy
Transactional data

Billing
• Revenues
• Purchasing
• Confirmations
Sheet)
• BOM Transfers

Easy
EC&O
Sales Pricing

Easy
EC&O Sales Pricing Views
© Satyam 2008 182

Easy
EC&O
Dynamic Item Processor
© Satyam 2008 183

Easy
EC&O Customizing: DIP Profile
© Satyam 2008 184

Easy
EC&O Resource-Related Billing
© Satyam 2008 185

Easy
EC&O Resource-Related Structure
© Satyam 2008 186

Project Processes
Assembly Processing
Easy Automatic Creation of WBS Elements –
EC&O Assembly Processing
© Satyam 2008 188

Easy
EC&O
Assembly Processing with WBS
© Satyam 2008 189

Easy
EC&O
Assembly Processing
© Satyam 2008 190

Project Processes
Materials
Easy
EC&O
Materials Planning
 Purpose
To monitor the material requirements and costs in projects, to control the flow
of materials and for scheduling.
 Integration
Material forms a link from a project to Sales, Materials Management
(Purchasing and Inventory Management), and Production Planning and
Control.
 Material requirements in projects form the basis for procurement, whether the
material is produced in-house (production) or procured externally
(purchasing).
 Materials can be attached to the activities

 Directly
 Through BOM

Easy
EC&O Materials
© Satyam 2008 193

Easy
EC&O
Materials in Projects
© Satyam 2008 194

Easy
EC&O
Integration with MM and PP
© Satyam 2008 195

Easy
EC&O
Purchasing Process

Easy
EC&O Direct Procurement
© Satyam 2008 197

Easy
EC&O Purchasing Non-stock Components
© Satyam 2008 198

Easy
EC&O Procurement Using Requirements Planning
© Satyam 2008 199

Easy
EC&O Managing Stocks of Material Components
© Satyam 2008 200

Easy
EC&O Collective Stock: Quantities and Values
© Satyam 2008 201

Easy
EC&O Valuated Project Stock: Quantities and Values
© Satyam 2008 202

Easy
EC&O Non-Valuated Project Stock: Quantities and Values
© Satyam 2008 203

Easy
EC&O Third-Party Orders
© Satyam 2008 204

Easy
EC&O
Integration with MM
Definition
2000 3000 Material required for performing
an activity or for manufacturing
1000 6000 a product.
4000 5000
Item Category
“Project Stock” “Plant Stock” “Non Stock”

Materials
Materials
Materials
Stock Item Stock Item Non-Stock
“L” “L” Item “N”
Purchase Req. Reservation Purchase Req.
MM
© Satyam 2008 205
Easy
EC&O Services
2000 3000
1000 6000 Services

Allows you to define services to be procured.
4000 5000 Individual service specifications can be
created for each planned procurement in the
Purchasing document.
Services
Description “Service Number”

Material Group Planned Unplanned
Purchasing Group Services Services
Service Specifications
Service Master Value
Or text / value Limit
Vendor 1000
Purchase
Order Purchase Value
Requisition Check
© Satyam 2008 206

Easy
EC&O External Services Management
2000 3000
1000 6000
4000 5000 PR
Commitments
Actual
Costs Purchase
Invoice Requisition
Verification
Bid
Invitation
Services Services Item

Finally
Complete Category Quotation
“D” Entry
Service Entry
Sheet Vendor
Selection
PO
Processing
PO
Commitments
© Satyam 2008 207

Easy
EC&O Account Assignment Categories
© Satyam 2008 208

Easy
EC&O Valuation of Project and Sales Order Stock
© Satyam 2008 209

Easy
EC&O Tables for MM Integration
© Satyam 2008 210

Easy
EC&O
External Processing

Project Processes
Commitment Management
Easy
EC&O Commitment Management
PS PS PS
2000 3000 2000 3000 2000 3000

1000 6000 1000 6000 1000 6000
4000 5000 4000 5000 4000 5000
Materials
Materials Services Notifications
Materials Materials Materials
Materials Materials
Materials Services Claims Notifications
MM Purchase Order
Purchase Req
WBS Element DS-0310001: General

C/Elem Committed Actual Assigned
4000000 6000 5000 11000
© Satyam 2008 213
Easy
EC&O Commitment Management
MM
Purchase
Requisition
WBS Element DS-0310001: Server
4000000 6000 5000 11000
Purchase
Order
WBS Element DS-0310001: Server

Goods
Receipt 4000000 0 11000 11000
• Commitment management allows you an early recording and

analysis of such commitments for their cost and financial
effects. © Satyam 2008 214
Project Processes
Confirmations
Easy
EC&O
Confirmation Options

Easy
EC&O
Confirmation
 Confirmations document the state of processing for activities and activity

elements in a network.
 It can be used to forecast progress in the future.
 Precise confirmations are very important for realistic and accurate project
planning.
Features:
You control the following business functions via confirmations:

 Reduction of work center capacity load
 Update of the actual costs based on the confirmed data
 Update of network data, such as duration, work, and status
 Update of dates for WBS elements
 Copy actual dates to milestone (depending on degree of progress)
 Removal of the billing block in the billing plan
 Backflushing and unplanned withdrawals of material components
 Posting of open reservations
 Activation of milestone functions

Project Processes
Cross Application Time Sheet (CATS)
Easy
EC&O
Cross application time sheets (CATS)

Project Processes
BOM Transfer
Easy
Transactional data

Billing
• Revenues
• Purchasing
• Confirmations
Sheet)
• BOM Transfers

Easy
EC&O
Transferring BOMs

Project Processes
Status Management
Easy
EC&O System Status and User Status

Easy
EC&O Status Function

Easy
EC&O 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)
© Satyam 2008 226

Easy
EC&O Status Profile

Project Processes
Claims Management
Easy
EC&O Project Processes
Transactional data

Billing
• Revenues
• Purchasing
• Confirmations
Sheet)
• BOM Transfers

Easy
EC&O
Claims

Easy
EC&O Claim Management Functions
© Satyam 2008 231

Easy
EC&O Claim Data
© Satyam 2008 232

Easy
EC&O Connecting a Cost Collector to a Claim
© Satyam 2008 233

Easy
EC&O Customizing for Claims
© Satyam 2008 234

Easy
EC&O
Cost integration of claims

Easy
EC&O Evaluation of Claims
© Satyam 2008 236

Project Processes
Project Versions
Easy
EC&O Creating Project Versions
© Satyam 2008 238

Easy
EC&O
Versions in the Project System
© Satyam 2008 239

Easy
EC&O
Project Versions
 A project version shows the state of the project at a certain point in time or at
a certain status.
 Are the basis for statistical evaluations, for example, in earned value analysis.
 Can be used in Milestone Trend Analysis.
 Document (as a history) the state of the project in the past.
 Can be used for comparison purposes.
 Project versions are a "snapshot" of a project at a certain point in time.
 Plan versions are created in accounting and store the various costs plans for
a project, such as best and worst case scenarios.
© Satyam 2008 240

Project Processes
Simulations
Easy
EC&O Simulation Version
 When you are planning complex projects, for instance in engineering-to-order,

it is often necessary to simulate and save changes to a project, without
affecting the operative project. To do so, you use simulation versions that can
be changed, costed and scheduled.

Easy
EC&O Simulation Versions - Flow

Easy
EC&O Simulation – Version Key & Profile
© Satyam 2008 244

Easy
EC&O Version Keys and Simulation Profiles
© Satyam 2008 245

Easy
EC&O Evaluation of Simulation Versions

Project Processes
Progress Analysis
Easy
EC&O
Project Progress
 You use the planning phase of your project to plan how you want your project
to progress. However, errors in planning or unforeseen events may cause the
project to vary from the plan.
 The project objective will then only be achieved if project management
identifies these variances early on and takes prompt action to correct them.
 To this end, project management requires constant access to current
information about:
 Project status
The state of the project at a particular time, as derived from actual
data on costs, dates, and capacities.
 Project progress
The progress of the project towards achieving its goal, as of a
particular time, compared with planning
 Expected project development

Easy
EC&O
Progress Analysis : Basic Concepts

Easy Progress Value Determination: Measurement
EC&O
Methods

Easy
EC&O
Progress Determination : Function

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

Easy
EC&O
Progress Analysis
 Progress analysis is the tool used to determine planned and actual project
progress values, and to compare the two sets of data.
 The system uses the overall planned costs to evaluate the work done,
meaning that the evaluation is not dependent on the costs planned or posted
by period.

Easy
EC&O
Earned Value Management (EVM)
Common terminologies in EVM

 Planned POC : How far should my project progress by a particular point in
time?
 BCWS: Budgeted cost of work scheduled
 Actual percentage of completion (POC): How far has my project actually

progressed?
 BCWP : What is the planned value of the actual work performed?
 ACWP: What costs have already been incurred for the project?
 SV = BCWP – BCWS: Are schedule variances occurring?
 CV = BCWP – ACWP : What are the costs resulting from schedule variances?
 CPI = BCWP /ACWP : How accurate was my planning?
 EAC: What are the total costs to be expected if the cost variance continues?
Easy
EC&O
Progress Analysis: Calculation

Project Processes
Results Analysis
Easy
EC&O Result Analysis : Objective

Easy
EC&O Overview of Result Analysis

Project Processes
Period End Closing
Easy
EC&O
Period – End Closing Procedures

Easy
EC&O
Aspects of Settlement

Easy
EC&O Settlement Scenarios

Easy
EC&O Multi-Level Settlement : Direct Settlement

Easy Periodic Settlement Processing – Investment
EC&O Projects
1 Periodic Settlement to AUC 2 Final Settlement to Fixed Assets
Asset Final
Under Asset
Construction
© Satyam 2008 264

Easy
EC&O Generating Settlement Rule for a WBS
© Satyam 2008 265

Easy
EC&O
Determine Settlement Strategy for WBS Element
© Satyam 2008 266

Easy
EC&O
Deriving Settlement Rules for Activities
© Satyam 2008 267

Easy
EC&O
Indicators in the Settlement Profile
© Satyam 2008 268

Easy
EC&O
Settlement: Debit and Credit
© Satyam 2008 269

Easy
EC&O
Maintaining Settlement Rules
© Satyam 2008 270

Easy
EC&O
Settlement Structure
© Satyam 2008 271

Easy
EC&O
PA Settlement Structure
© Satyam 2008 272

Easy
EC&O Assets Under Construction Flow Chart
START
Create Is this a Monthly

Investement capital Sttlmnt
Capital Project Release Yes Create AUC
Profile on project? settles capital
Project WBS to AUC
Monthly No
Create Non-
Sttlmnt settles
Capital WBS
non-capital to
Elements
exp receiver
Changes
Closed and Project All asset under Finished
status from
END ready for Completed AUC final Building
AUC to TECO
depreciation
© Satyam 2008 273

Easy
EC&O Project Closing Case Flow Diagram
Final Settlement
from AUC to Assets
Reduce released
budget
Return Original Budget
Delete unused WBS Clear Project Update all WBS

Elements Stock Elements to TECO
Close project Perform Budget

definition Return check
© Satyam 2008 274
Easy
EC&O
Schedule Manager
© Satyam 2008 275

Project Processes
Mass Change
Easy
EC&O
Mass Change
© Satyam 2008 277

Easy
EC&O
Mass Change
© Satyam 2008 278

Project Processes
Validation
Easy
EC&O
Validation
© Satyam 2008 280

Project Processes
Substitution
Easy
EC&O Substitution
© Satyam 2008 282

Project Processes
Interest Calculation
Easy
EC&O
Interest Calculation
© Satyam 2008 284

Project Processes
Project Oriented Procurement (PROMAN)
Easy
EC&O Project- Oriented Procurement – Proman
© Satyam 2008 286

Project Processes
Open PS
Easy
EC&O Open PS
© Satyam 2008 288

Project Processes
Archiving
Easy
EC&O
Benefits of Archiving
© Satyam 2008 290

Easy
EC&O Purpose of Archiving Objects
© Satyam 2008 291

Easy
EC&O Archiving Steps
© Satyam 2008 292

Easy
EC&O Deleting Without Archiving
© Satyam 2008 293

Easy
EC&O Archiving Objects
© Satyam 2008 294

Reports & Analysis
SAP PS reporting
Easy
EC&O Project System – Information System

Easy
EC&O
Information Systems
Purpose
 The Project Information System is a flexible, comprehensive information
System.
 you can use to monitor and control your project data.
 You can evaluate individual projects, partial projects, or multiple projects.
Features
 You can run recurring standard reports and create your own reports to meet
your specific information needs and tasks.
 You can display all data in the information system immediately after entering it
or can run the reports in the background.
 This also includes reports offering different degrees of detail, summarizations,
and views of current data, version data, and archive data for:
• Structures
• Controlling
• Progress
• Resources
• Material

Easy
EC&O
Structure Overview and Individual Overviews
© Satyam 2008 298

Easy
EC&O Structure Information System: Functions

Easy Structure Information System : Graphical
EC&O
Evaluation and Data Export

Easy
EC&O
Hierarchy Reports
© Satyam 2008 301

Easy
EC&O
Cost Element Reports

Easy
EC&O Evaluation Using Cost Reports
© Satyam 2008 303

Easy
EC&O SAP Business Information Warehouse
© Satyam 2008 304

Easy
EC&O
Line Item Reports

Easy
EC&O
Information Systems
© Satyam 2008 306

Easy
EC&O Level of Detail
© Satyam 2008 307

Easy
EC&O
Evaluation Using Cost Reports
© Satyam 2008 308

Easy
EC&O

Easy
EC&O
Thank you!
Indrajit +91 9052230808 Indrajit_Das@satyam.com
Chinnababu +91 9000525299 Chinnababu_Chavakula@satyam.com

Easy
EC&O Safe harbor
© Satyam 2008
This is solely for the use of Satyam only. Without prior permission, no part of it
may be circulated, quoted or reproduced outside of the organization.
satyam.com

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Detailed Overview –

SAP Project System

• An Overview – SAP Application & Modules • Resource Planning

• Enterprise Structure • Cost planning

• Data in SAP • Overhead allocation

• An Overview – Project Characteristics • Revaluation at Actual Prices

• Project System – Data Types • Cash management

• Project System – Organisation Structure • Budgeting

• Master Data – Project Definition • Revenues

• Master Data – Work Breakdown Structure (WBS) • Milestone Billing

• Network Activity – Process Sequence • Assembly Processing

• Master Data – Activity Elements • Materials

• Master Data - Milestones • Commitment Management

• Related Master Data – From Other Modules • Confirmations

• Project Characteristic & Phases • Cross Application Time Sheet (CATS)

• Project Builder & Project Planning Board • BOM Transfer

• Date planning • Status Management

• Claims Management • Add Topics Here !!

• Period End Closing

• Project Oriented Procurement (PROMAN)

• Add Topics Here !!

Agenda © Satyam 2008 6

Hardware Platform and Environment

Agenda © Satyam 2008 7

Agenda © Satyam 2008 8

Development Testing Production

Agenda © Satyam 2008 9

Company code 0001 0002

Purchasing 1000 2000

Plants 0001 0002 0003 0004 0005

Agenda © Satyam 2008 12

Cost accounting Controlling areas

External logistics Sales organization Purchasing organiz.

Inventory mgmt Storage locations/batches/special stocks

Agenda © Satyam 2008 13

CO- CO- EC-

Plant Focus on Manufacturing

Agenda © Satyam 2008 14

• Projects are tasks with particular characteristics:

Project creation & structuring

Configuration Project , Budget & Settlement profiles,

Master Data WBS Element, Network activities, Work

Transaction Data Confirmations, POCs, Plan & Actual

Agenda © Satyam 2008 23

NO ORGANISATIONAL UNITS OF ITS OWN RUNS ON OTHER ORG UNITS

•Controlling Area •Company Code

Internally Processed Externally Processed

Agenda © Satyam 2008 25

• Project responsibility can be defined

• Carries default data for WBS Elements

• Specifies the Budget settings

• Specifies the project number and WBS Element numbering

• Allows / Dis-allows project specific stock valuation

Agenda © Satyam 2008 27

Numbering Project Definition

Agenda © Satyam 2008 29

Agenda © Satyam 2008 30

Work Breakdown Structures

Agenda © Satyam 2008 34

WBS LEVEL 2 WBS LEVEL 2 WBS LEVEL 2

Agenda © Satyam 2008 37

Agenda © Satyam 2008 38

Agenda © Satyam 2008 43