Introduction To SAP Project Systems

Introduction to SAP Project Systems
Prerana Dhumale
India SAP CoE, Slide 1

Target Audience
This course is intended for the following audiences:

 Project teams
 SAP Consultants

Objectives
India SAP CoE, Slide 3 2

Table of contents
Contents
Lesson 0: Introduction
Lesson 1: Project Structures
Lesson 2: Project Planning
Lesson 3: Project Budgeting
Lesson 4: Scheduling & Execution
Lesson 5: Project Period End Closing
Lesson 6: Project Analysis & Reporting
Lesson 7: Other SAP Proj. Mgt. Tools

Introduction - Project Systems
 What is a Project?
A temporary endeavor undertaken to create an unique product or service, as a result
that a company carries out, characterized by the uniqueness of its general conditions
and constraints. These conditions include,
 Objectives of the project
 Time frame for executing it
 Financial and capacity-related restrictions
Projects usually involve cross-

departmental and highly complex
Project business processes.
Constraints Projects are often cost-intensive, time-
consuming, and of strategic importance.
SAP PS
SAP PS is a project management tool that assists you throughout all the phases of
your project. Through the high level of integration between SAP PS and other SAP
functions, such as Logistics, Accounting, and Human Resources, SAP PS ensures
that the necessary business processes are handled quickly and efficiently.

Introduction - Project Systems
Project Types
 Internal Projects
Projects financed internally with in the Organization for their New, Expansions, Overheads, R&D
and so on. These project types are:
 Overhead Cost Projects (Ex: Maintenance, shutdown and R&D projects)
 Capital Investment Projects (Ex: Building a factory, Expanding existing facility)
 External Projects
Projects financed from external organizations or Agencies and creating revenue’s to the
executing/undertaking Organization.
 Customer Projects (Ex: Building a Cell Tower, building roads and Bridges etc)

Introduction - Project Systems (cont…)
 Key Functions:
 To carry out complex, unique, and high degree of risk activities
in a structured manner.
 To monitor dates and schedules.
 To monitor costs and revenues.
 To Control of budget .
 To trigger Billing schedules, cash flow plans.
 Resource allocation and monitoring.
 To monitor, track and control Project purchases.
 To monitor the Project progress w.r.t. Cost, Time, Revenue and
% of completion.
 Simulations and Flexible reporting

 Comparison with Other Applications:

 Flexibility of PS making its use more common
 Flexibility to Operate Higher level with in the
Organization.
 Flexibility in integrating with other external
applications.
 PS has very tight integration with the FI/CO modules
 FI/CO has a much broader usage on projects.
 Flexible Reporting and Monitoring tools
 Tight integration with new generation Project Management tools

 Project System Org. Structure Elements
The Project System has no organizational structures of its own. Various elements
already defined in Accounting and Logistics will be used in Projects. These
elements will be assigned to various Project Structure elements. Required
elements are:
 Controlling Area
 Business Area if defined
 Company Code
 Profit Centre
 Plant
 Currency
 Technical Location/Equipment
 Responsible Cost Center
 Investment Program
 Joint Venture
 Jurisdiction Code
 Purchase Organization
 Purchase Group
 Storage Location

Investment Project Process
Inv. Prog
IM
Production Administration Maintenance “Investment Positions”
Appropriation Business Planning Investment

Idea Request Measure
Approval
PS
Planning
“Pre-Investment” Budgeting
Replacement
investment
Implementation
Retirement
Settlement and
capitalization
Maintenance
and use

Customer Project Process ( ETO)
Proj. Planning
Create Enquiry Proj. Creation
Budgeting &
Approvals
Create Quotation
Project Close
Create Sales Order
Procurement
Settlement
Billing & Invoicing
Proj. Execution
Delivery
SD
SD PS

Customer Project Process - Construction
Create Enquiry
Standard WBS
Create Project
Enquiry to Proj.
Standard Network
Vendor Quotations
Concept & Product Schedule Project

Development Price Comparison
Make Buy
Proj. Simulation Make Or Buy
Create PO
Assign Mat to Proj.
Create Sale Order
GR
Create Billing &
Release Project
Invoice Plan
Release Execution
Delivery & Billing
Project Close

Integration Functions With Other Modules
- Internal Order
- IM Program
CO controlling
- Settlement
- Cost Centre
- Position ID
- AR IM
- Budget Distribution
-Sales promotion accounting
- Proj. Creation
Proj - Settlement CC
SD -Sales Campaign
- ETO process - Assembly PP
- Milestone Billing Project Systems processing
- Stocks Project Struc ture
MM - reservations PS - Purchasing
- Contract
- Material issue
- Material Value
- Goods receipt
- Invoice receipt MM
- Direct Capitalization -Capitalisation
History
FI
- Invoice receipt - Depreciation
- Revenue recognition - AuC
- Asset balances
AM
- Person Responsible - Order Creation - Financial Statements
- Workflow - Planning
HR - Partner functions
- Confirmation with P - Budgeting
- Order Cost control
M
personnel number - AuC, Fixed Asset

Table of contents
Contents
Lesson 0: Introduction
Lesson 1: Project Structures
Lesson 2: Project Planning
Lesson 3: Project Budgeting
Lesson 4: Scheduling & Execution
Lesson 5: Project Period End Closing
Lesson 6: Project Analysis & Reporting
Lesson 7: Other SAP Proj. Mgt. Tools

Project Structures
To carry end to end process of a project, the project goals must be defined and activities
to be carried out must be structured. A clearly defined structured project is the basis for
its planning, monitoring, control and success.
Depending on the type of project and the monitoring needs, projects in the Project System can
be structured using:
 Work breakdown structure (WBS)
 Networks/Activities
We can use either Operative Projects or Standard projects for structuring the Project. Standard
WBS and standard networks allow you to standardize and reuse structures and sequences of
events in a project.

Project Structures

Work Breakdown Structure
A work breakdown structure is a model of a project, and

shows the project activities to be carried out as a hierarchical
structure there by split the project into manageable units. You
can define WBS hierarchy based on:
 Logic and Process oriented

 Function Oriented
 Object Oriented
WBS Elements
WBS divides the project step-by-step into structure elements, these elements are called
work breakdown structure elements (WBS Elements). The various work packages in the
project are described in individual work breakdown structure elements (WBS elements).
You can further divide these elements at various levels until you reach the level of detail
you require.

Project Definition and Work Breakdown
Structure
Project Definitions
Project Definitions
Work Breakdown Structures
WBS Elements

Structure of a Project
Project Definition
WBS Element
CP-0001 Cell tower Construction
CP-0001
Cell Tower
CP-0001- 1 CP-0001- 2 CP-0001- 3 CP-0001- 4

Engineering Procurement Erection Acceptance
CP-0001- 1 - 1 CP-0001- 1 - 2 CP-0001- 2 - 1 CP-0001- 2 - 2 CP-0001-2 -3

Civil Mechanical PSU Electronic Cabin
Work Breakdown
Structure

Breakdown Structures used for?
Costs & Revenues:
 Planned Costs/Revenues Dates:

 Actual costs/Revenue
 Basic Dates
 Scheduled Dates
 Actual Dates
Periodic Processing:
 Overheads “WBS Structure”
 Settlement
 Earned Value Analysis Budget:
 Original Budget
 Budget Updates
 Release Budgets
 Availability Control
Execution:
 Confirmation
 Goods Issue
 Resource usage
Commitments:
 Purchase Requisition
 Purchase Order

Work Breakdown Structure
Prerequisites for WBS creation:
 Project profile
 Project Coding mask
 Project Definition
Data for WBS elements:

 Basic Data
 Project Responsibilities
 Organization Data
 Control Data
 Documents
 Project Summarization Data
 Settlement Rules
 Tax Depreciation Simulation Data
 Assets Under Construction
 Capital Investment Measures

Project Profile
Control
 Field Key
 Simulation
 Status Profile
 Validation
 Substitution
Organization Controlling
 Controlling Area  Object Class
 Company Code  Planner Profile
 Business Area  Budget Profile
 Profit center
 Plant
Project Profile  Settlement Profile
 investment Profile
 Proj Currency …
Planning Board / Dates

 WBS Scheduling
 Planning Board Profile
 Hierarchy Graphic
 Network Profile
 Capacity req Planning
…

Project Coding Mask
Special Characters for Projects
Length Auto Lock Lock

Length Entry Entry Coded Number Operative Standard
of
control Tool Tool Proj only Assignm structure structure
Coding
ent
Coding Mask
I
Key 0 = number
X= Alphanumerical

Project Definition
Project Definition
Project definition: It is a framework for a business undertaking with a fixed goal to achieve
with given resources. It contains dates and organizational information that are binding for the
entire project.
 Project Definition Description
 Person Responsible
 Applicant number
 Organization units
 Dates

Data for WBS elements
4
3
2 1
1. Operative indicators
2. Responsibilities
3. Org. Assignments
5 4.
5.
Controlling Profiles
WBS Dates
6 6. User Fields

Project Creation Methods
1 Hierarchy Graphic
2
Manual
Project Builder
4
3 Incorporate
Copy
= Operative Structure
= Standard Structure

Project Creation
Using Project Builder
Current
project
Overviews of
selected Object
Selected
Object
Detailed screen for

Selected Object
Work List &

Templates

Templates and Work Breakdown
Structures
Template Operative
XX-9999 CP-0001
CX- 9999-01 CX-9999-02 CP-0001-01 CP-0001-02

Include Template
Start Template Operative
1 1
1.01 1.02 1.01 1.02
Include
Template
Finish

System Status & User Status Control
CRTD PREL
CRTD CRTD PREL REL
CRTD CRTD CRTD CRTD CRTD REL REL REL
 What is Status control used for?  Which elements?

 To allow or Block certain business  Project definition and WBS
transactions. elements are affected.
 How?  Why system and user status?

 Status are activated manually or  User status adds detail to the
automatically by the system. system Status.

System Status
SYSTEM STATUS
The following status are set by the system/user as the project progress through
different stages:
 CRTD Created (Automatic)
 REL Released (Manual)
 LKD Locked (Manual)
 UNLK Unlock (Manual)
 BUDG Project Budgeted (Automatic)
 AVAC Availability Control Activated (Automatic)
 …

User Status’s
A status set by the user to complement the system status for a given status object. You can
use only a user status belonging to a status profile (defined in Customizing) and assigned to
the relevant status object.
User statuses enable you to extend the control of business processes managed by the
system status. You can set and delete user statuses manually when carrying out business
transactions.
WBS User Status
In the following steps you add the system status provided by SAP to your user status.
You can define a user status for:
 Project_definitions
 WBS elements
 Network headers and network activities

System Status (1)
CREATED
Created (CRTD)
 Use
 Initial system status for new WBS elements
 Allows project structuring, date and cost planning.
 Allows Budgeting
 Prerequisites
 The superior WBS element MUST have status Created
RELEASED
Released (REL)
 Use
 Allows costs and revenues to be posted to the project
 Passed onto lower level WBS elements
 Prerequisites
 Created must have been set
….. Cont

System Status (2)
Technically Complete (TECO)

 Use
TECHNICALLY COMPLETE
 For projects completed from a technical point of view.
 Allows costs and revenues to be posted to the project.
 Prerequisites
 Created or Released must have been set.
Closed (CLSD)
 Use
CLOSED  Prevents actual postings.

 Prevents network creation.
 Prerequisites
 Released or Technically complete must have been set.
Deletion Flag (DLFL)

 Use
 Objects are deleted logically, but not physically.
FLAGGED FOR DELETION
 Prerequisites
 Allowed if all costs have been settled completely.
 Allowed if there are no reservations or commitments.
Demo & Exercises
Menu path: Logistics  Project System  Project  CJ20N –

Project Builder
Transaction: CJ20N
Menu path: Logistics  Project System  Information System

 Structures  Individual Overviews  WBS Elements 
S_ALR_87015066 – WBS Elements
Transaction: S_ALR_87015066
Menu path: SAP Customizing Implementation Guide  Project

System  Operative Structures  Work Breakdown Structure
(WBS)  Create Project Profile
Transaction: OPSA

Networks and Activities
Networks
A network represents the flow of a project or of a task within a project.
During the life of a project, networks are used as a basis for planning,
analyzing, controlling and monitoring schedules, dates and resources
(such as people, machines, materials, documents and drawings).
You can assign networks to a project.
Network / Activities
A network is a special type of work order that has the same structure
as production orders, maintenance orders, and inspection orders in
the System.
Activities
Individual tasks in the project are mapped as activities in a network.
Activities having the following characteristics:
 They have a duration.
 They have a defined start and a defined finish.
 Resources are needed to execute them.
 They incur costs.

Activities and Networks - Functions
Internal Activity:
 Work
 Dates, Capacities
 Costs
External Activity /
Milestones: Service:
April
7  Dates
 Milestone Trend analysis  Costs
 Billing Milestones  Commitments
 Payments
Material:
Costs Activity:  Dates
 Dates “Network”  Costs
 Costs  Commitments
 Payments  Payments
 Purchased Parts
Periodic Processing:
 Overheads May
 Settlement
June
 Process Costs

Networks Structure (1)
 A network consists of the following:
 Activities
 Activity elements
 Relationships
20 Work
Scheduling
10 Engineering 40 Design 50 Production 60 Assembly 70 Start Up
30 Procurement
Legend Activity Relation ship

Networks Structure (2)
External
 Four Types of Activities

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

 Start or Finish
 Activity Elements
 Work
 External
 Costs
 Service
Service

Sub Networks
Network
Engineering Production Assembly Start Up
Settlement Rule
Profit Center
Other data
Sub Network
Legend Activity Relation ship

Network Field Requirements
1
4
5
2
3
6 1. Network No and Description
7 2.
3.
Dates
Scheduling Parameters
4. Allocation (Header or Activity)
5. Assignment to Org Elements
6. MRP relevant control
8 7.
8.
Costing base from Profile
Purchase Requisition Control

Network Graphic Details
Control
Activity
key
Activity Duration
number
Description
Earliest
finish
Relationship Latest
Floats finish

Resource Planning
Documents Materials
 Internal Processing
 Labor requirements
 Capacity requirements
 External Processing
 Materials
Internal External
 Documents, PS Texts
 Milestones

PS Texts Milestones

Activities
Control Key
Activity No
Execution
Assignment Constraints
Execution
Work Related
factor
External
Activity
assignments

Milestone Data
Unique Milestone
number Activity to which the
milestone is
assigned
Parameter for
Progress Analysis
Manual
planned date
Parameter for
planned date in
relation to activity

Network Settings
Valid Receivers
Allocation Structure
Source Structure
Settlement PA transfer
Status Profile
Profile Structure
% of settlement
Number range No of Distribution rules Allowed
Network Types Planning Element Status number
Classification Control Authorization Key
Business Transaction control
Network Assignment Stock Priority

Planner Group PR for Network along with Resv.
Procurement Indicator Item Category
Field Key
Network Profile External Activity
Graphic Profiles
Network Activity Parameters Internal Activity
Cost Activity
Service Activity
Settlement strategy
Costing Types
Release Strategy
Parameters for Plan Cost Variant
Costing Variant
Network Types Actual Cost Cost Component Structure
Variant
Assignment type Costing Variants to Network
PS-PP integration Types
Message Types
Change Document control
Activity Change control
Change Profile
Activity Element Change Control
Component Change control
PRT change Control

WBS & Network comparison
WBS1
 WBS
 Cost Control and Reporting WBS1.1 WBS1.2
 Reflects Ownership
 Hierarchical Structuring
WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2
 NETWORK
 Work Control
 Reflects Execution Process 20
 Spread across Different WBS
elements 10 40 Network
30

Activities Assignment to WBS Elements
WBS1
 Planning dates
 Planning Costs WBS1.1 WBS1.2
 Settlement rules
 Milestones WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2
 Billing Plans
20
10 40 Network
30

Network Creation Methods
1
Manual
Network Structure 2
Graphic
Project Builder
Copy 3
Copy Project Incl. Activities

5
Incorporate 4

Network Creation
Drop here
Click & Hold Result

Activity Creation
Drop here
Click & Hold Result

Activity Element Creation
Drop here
Click & Hold
Result

Demo & Exercises
Menu path: Logistics  Project System  Project

 CJ20N – Project Builder
Transaction: CJ20N

Standard Structures
Be defining standard projects and networks you can standardize project management
referring back to data that has been derived from existing projects. Standardization is one
method of ensuring in the initial phase that projects are structured efficiently and
economically. 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 the Project System there are several different standard structures that you can use as
templates to create operative structures.
 Standard project definitions

 Standard networks
 Standard work breakdown structures
 Standard milestones

Standard Structures (Cont..)
 Standard project definitions
Neutral project definition, which can be used to create operative project definitions or
standard project definitions as templates. Project definitions are the frameworks of
projects and contains basic Organizational data i. e.
 Controlling Area
 Business area
 Company code
 Plant
 Factory calendar
 Standard networks
Project-neutral network structure, which can be used as a template when creating other
standard networks or operative networks. Creating operative networks by using standard
networks will save the time and increase the consistency of business process.
You can link standard networks with standard work breakdown structures in order to create
project templates, which contain both the project structure and the activities assigned to
the structure.

From Standard Networks
1 From milestone
3
While creating operative network using standard

network, if the standard Network is linked to standard Creating operative Milestone from
WBS, system will create operative WBS as well. standard milestone system will create
operative network from Standard
Network which is attached to standard
From Sale order
2 Milestone.
= Direct Assignment
= indirect Assignment
Creating operative network from Sales Order using

standard Network, system will create operative Network
with activities as standard Network and materials from
sales order.

 Standard work breakdown structures
Neutral work breakdown structure that can be used more than once and serves as a
template for creating operative work breakdown structures
WBS From Standard Networks

1 From Standard WBS 2
While creating operative network using standard While creating operative WBS from standard
network, if the standard Network is linked to standard WBS, if WBS is linked with standard network,
WBS, system will create operative WBS as well. system will not create operative network
 Standard milestones
Standard milestones are used for creating milestones and other standard milestones. You
can combine different standard Milestones in a milestone group.
From milestone
3

Project Builder
The Project Builder is a user-friendly method of accessing the Project System, which
enables you to edit your projects quickly and efficiently.
It gives the option of Context sensitive menus, Drag & Drop, and the capability to define
your own worklist and templates pool.
Use:
 Create, change or display all project structure data in one transaction
 Graphic views (hierarchy and network graphic)
 Project planning board with all its overviews (capacity, costs, component, and
maintenance order overviews)
 Can define a user-specific worklist and a user-specific templates pool
 Can make user-specific changes to the settings

Project Builder
Structure
Work Area
Tree
Selected Project
& Project Tree
Worklist
and
Templates
Proj. Definition
and Structure
Worklists &
templates
Work Area

Worklists and Templates

Planning Board
Entry Area
Over view buttons
Worklist Preview Of
last Project
Templates & individual

objects WBS structure
Gantt Chart

Graphics of Planning Board
Hierarchy Graphic Network Graphic
Gantt Chart Business Graphic

Structure Planning
Structure planning will be used if you have a more precise idea of the structure of the project.
Using structure planning you can enter WBS elements and Activities together. Structure
planning is having two views i.e.
 WBS elements
 Network activities
Use:
 Create Projects and activities
 Maintain already created projects
 Analysis
 Capacity leveling
 Cost overviews as for activities

Structure Planning (Cont..)
WBS element View
Network View

Demo & Exercises

 CJ20N – Project Builder
Transaction: CJ20N

 CJ27 – Project Planning Board
Transaction: CJ27, CJ2B and CJ2C

 Special Maintenance Functions  CJ2D Structure
Planning
Transaction: CJ2D, CJ20 and CJ2A

Lesson Summary
 Project Header
 WBS structure
 Networks
 Sub networks
 Activities
 Activity Elements
 Standard structures
 Standard Networks
 Standard milestones
 Project builder
 Project Planning Board
 Network Graphic
 Project coding mask
 Project profiles

Reference links
1. http://help.sap.com/saphelp_46c/helpdata/en/04/926eae46f
311d189470000e829fbbd/frameset.htm

Introduction To SAP Project Systems

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Introduction to SAP Project Systems

India SAP CoE, Slide 1

This course is intended for the following audiences:

India SAP CoE, Slide 2

India SAP CoE, Slide 3 2

Lesson 1: Project Structures

Lesson 2: Project Planning

Lesson 3: Project Budgeting

Lesson 4: Scheduling & Execution

Lesson 5: Project Period End Closing

Lesson 6: Project Analysis & Reporting

Lesson 7: Other SAP Proj. Mgt. Tools

India SAP CoE, Slide 4

Projects usually involve cross-

India SAP CoE, Slide 5

India SAP CoE, Slide 6

India SAP CoE, Slide 7

 Comparison with Other Applications:

India SAP CoE, Slide 8

India SAP CoE, Slide 9

Production Administration Maintenance “Investment Positions”

Appropriation Business Planning Investment

India SAP CoE, Slide 10 10

India SAP CoE, Slide 11 11

Concept & Product Schedule Project

Delivery & Billing

India SAP CoE, Slide 12 12

- Stocks Project Struc ture

India SAP CoE, Slide 13 13

Lesson 1: Project Structures

Lesson 2: Project Planning

Lesson 3: Project Budgeting

Lesson 4: Scheduling & Execution

Lesson 5: Project Period End Closing

Lesson 6: Project Analysis & Reporting

Lesson 7: Other SAP Proj. Mgt. Tools

India SAP CoE, Slide 14

 Work breakdown structure (WBS)

India SAP CoE, Slide 15

India SAP CoE, Slide 16

A work breakdown structure is a model of a project, and

 Logic and Process oriented

India SAP CoE, Slide 17

Work Breakdown Structures

India SAP CoE, Slide 18

CP-0001 Cell tower Construction

CP-0001- 1 CP-0001- 2 CP-0001- 3 CP-0001- 4

CP-0001- 1 - 1 CP-0001- 1 - 2 CP-0001- 2 - 1 CP-0001- 2 - 2 CP-0001-2 -3

India SAP CoE, Slide 19

 Planned Costs/Revenues Dates:

India SAP CoE, Slide 20

Data for WBS elements:

India SAP CoE, Slide 21

Planning Board / Dates

India SAP CoE, Slide 22

Length Auto Lock Lock

India SAP CoE, Slide 23

India SAP CoE, Slide 24

India SAP CoE, Slide 25

India SAP CoE, Slide 26

Detailed screen for

Work List &

India SAP CoE, Slide 27