Introduction to sap project systems
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This document provides an introduction to SAP Project Systems (PS) and outlines the key topics that will be covered in the training course. The objectives of the course are to understand PS structures like work breakdown structures (WBS) and networks, project life cycles, planning, budgeting, scheduling, execution, and reporting. It describes the types of internal and external projects handled in PS and how PS integrates with other SAP modules. Key sections cover WBS elements, networks, activities, and milestones that are used to plan and monitor project progress. Status control and the different system and user statuses are also summarized.
Introduction to sap project systems
- 1. Introduction to SAP Project Systems PS Training Trainer Mr.Soumya De Designation PS Functional Lead
- 2. Target Audience This course is intended for the following audiences: Project teams SAP Consultants
- 3. Objectives At the completion of this course, Participants should be able to: understand the Overview of SAP Project System Module Understand Project System structures. Understand the Projects Life Cycle for Internal projects External projects Understand Operative data for projects. Understand Planning and Budgeting activities against projects. Understand Material and Service value flows. Become familiar with project integration points. Become familiar with periodic settlements & closure related steps. Become familiar with year end processes. Understand the various Project Finance Reports in the system.
- 4. Lesson 0: Introduction Lesson 1: Project Structures Lesson 2: Project Planning Lesson 3: Project Budgeting Contents Lesson 4: Scheduling & Execution Table of contents Lesson 5: Project Period End Closing Lesson 6: Project Analysis & Reporting Lesson 7: Other SAP Proj. Mgt. Tools
- 5. 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 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. Projects usually involve cross- departmental and highly complex business processes. Projects are often cost-intensive, time- consuming, and of strategic importance. Project Constraints
- 6. 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 executing/undertaking Organization. Customer Projects (Ex: Building a Cell Tower, building roads and Bridges etc)
- 7. 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 Introduction -
- 8. Introduction - 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
- 9. Introduction - 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
- 10. Investment Project Process Production Administration Maintenance I M Inv. Prog Approval Budgeting Implementation Retirement Replacement investment Planning Idea Appropriation Request Investment Measure - Business Planning Settlement and capitalization Maintenance and use PS
- 11. Customer Project Process ( ETO) Create Quotation Create Sales Order SD Create Enquiry Proj. Planning Budgeting & Approvals Procurement Settlement Project Close Proj. Creation Proj. Execution Delivery PS Billing & Invoicing
- 12. Customer Project Process - Construction Create Project Enquiry to Proj. Create Enquiry PS . . . . . . . . . . . Standard WBS Standard Network Concept & Product Development Schedule Project Vendor Quotations Price Comparison Make Or Buy BuyMake Assign Mat to Proj. Proj. Simulation Create PO GR Create Sale Order Create Billing & Invoice Plan Release Project Production Order Execute Order Confirm Order GR for Order Release Execution Delivery & Billing Project Close PP MMSD
- 13. Integration Functions With Other Modules -Sales promotion Proj -Sales Campaign - ETO process - Milestone Billing - Stocks - reservations - Material issue - Material Value - Direct Capitalization - Invoice receipt - Revenue recognition - Person Responsible - Workflow - Partner functions - Confirmation with personnel number -Capitalisation - Depreciation - AuC - Asset balances - Financial Statements - Purchasing - Contract - Goods receipt - Invoice receipt - Assembly processing - IM Program - Position ID - AR - Budget Distribution - Proj. Creation - Internal Order controlling - Settlement - Cost Centre accounting - Settlement CC SD MM FI CO IM PP MM AM HR Project Systems Project Structure History PS - Order Creation - Planning - Budgeting - Order Cost control - AuC, Fixed Asset P M . . . . . . . . . . .
- 14. Lesson 0: Introduction Lesson 1: Project Structures Lesson 2: Project Planning Lesson 3: Project Budgeting Contents Lesson 4: Scheduling & Execution Table of contents Lesson 5: Project Period End Closing Lesson 6: Project Analysis & Reporting Lesson 7: Other SAP Proj. Mgt. Tools
- 15. 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. Project Structures Depending on the type of project and the monitoring needs, projects in the Project System can be structured using: Work breakdown structure (WBS) 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. Networks/Activities
- 16. Unit Contents Work Breakdown Structure Networks Activities Milestones Standard Work Breakdown Structures Standard Networks Project Builder Planning Board Structure Planning Project Structures
- 17. Work Breakdown Structure WBS Elements 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 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.
- 18. Project Definitions Work Breakdown Structures WBS Elements Project Definitions Project Definition and Work Breakdown Structure
- 19. Structure of a Project Project Definition CP-0001 Cell Tower WBS Element CP-0001 CP-0001- 1 Engineering CP-0001- 2 Procurement CP-0001- 3 Erection CP-0001- 4 Acceptance CP-0001- 1 - 1 Civil CP-0001- 1 - 2 Mechanical CP-0001- 2 - 1 PSU CP-0001- 2 - 2 Electronic CP-0001-2 -3 Cabin Work Breakdown Structure Cell tower Construction
- 20. Confirmation Goods Issue Resource usage Basic Dates Scheduled Dates Actual Dates Original Budget Budget Updates Release Budgets Availability Control Purchase Requisition Purchase Order Dates: Budget: Commitments: Execution: Planned Costs/Revenues Actual costs/Revenue Costs & Revenues: Overheads Settlement Earned Value Analysis Periodic Processing: Breakdown Structures used for?
- 21. 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
- 22. Control Field Key Simulation Status Profile Validation Substitution Controlling Object Class Planner Profile Budget Profile Settlement Profile investment Profile Planning Board / Dates WBS Scheduling Planning Board Profile Hierarchy Graphic Network Profile Capacity req Planning Organization Controlling Area Company Code Business Area Profit center Plant Proj Currency Project Profile Project Profile
- 23. Project Coding Mask Special Characters for Projects Length of Coding Length control Entry Tool Entry Tool Coded Proj only Auto Number Assignm ent Coding Mask Lock Operative structure Lock Standard structure I Key 0 = number X= Alphanumerical
- 24. 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
- 25. Data for WBS elements 12 3 4 5 6 1. Operative indicators 2. Responsibilities 3. Org. Assignments 4. Controlling Profiles 5. WBS Dates 6. User Fields
- 26. Project Creation Methods Project Builder Hierarchy Graphic Incorporate Copy Manual = Operative Structure = Standard Structure 1 2 3 4
- 27. Project Creation Using Project Builder Current project Selected Object Overviews of selected Object Detailed screen for Selected Object Work List & Templates
- 28. Templates and Work Breakdown Structures XX-9999 CP-0001 CX- 9999-01 CX-9999-02 CP-0001-01 Template Operative CP-0001-02
- 29. Start Finish Include Template 1 1 1.01 1.02 1.01 Template Operative 1.02 Include Template
- 30. CRTD CRTD CRTD CRTD CRTD CRTD CRTD PREL PREL REL CRTD REL REL REL What is Status control used for? To allow or Block certain business transactions. How? Status are activated manually or automatically by the system. Which elements? Project definition and WBS elements are affected. Why system and user status? User status adds detail to the system Status. System Status & User Status Control
- 31. 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)
- 32. 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
- 33. 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 (REL) Use Allows costs and revenues to be posted to the project Passed onto lower level WBS elements Prerequisites Created must have been set CREATED RELEASED System Status (1)
- 34. Technically Complete (TECO) Use 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 Prevents actual postings. Prevents network creation. Prerequisites Released or Technically complete must have been set. TECHNICALLY COMPLETE FLAGGED FOR DELETION CLOSED Deletion Flag (DLFL) Use Objects are deleted logically, but not physically. Prerequisites Allowed if all costs have been settled completely. Allowed if there are no reservations or commitments. System Status (2)
- 35. 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
- 36. Networks and Activities Network / 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. 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.
- 37. Milestone Trend analysis Billing Milestones Work Dates, Capacities Costs Dates Costs Commitments Payments Dates Costs Commitments Payments Purchased Parts Overheads Settlement Process Costs Dates Costs Payments Activities and Networks - Functions Internal Activity: External Activity / Service: Material: Periodic Processing: Costs Activity: Milestones: April 7 May June
- 38. A network consists of the following: Activities Activity elements Relationships Networks Structure (1) Engineering 40 Design 50 Production 60 Assembly 70 Start Up 30 Procurement 10 20 Work Scheduling Activity Relation shipLegend
- 39. Networks Structure (2) External Service Reference Dates from Activity Start or Finish Activity Elements Work External Costs Service Four Types of Activities Internal Processing External Processing Costs, services General Cost Activities
- 40. Engineering Assembly Activity Relation shipLegend Sub Networks Production Start Up Settlement Rule Profit Center Other data Sub Network Network
- 41. Network Field Requirements 1 2 3 4 5 6 7 8 1. Network No and Description 2. Dates 3. Scheduling Parameters 4. Allocation (Header or Activity) 5. Assignment to Org Elements 6. MRP relevant control 7. Costing base from Profile 8. Purchase Requisition Control
- 43. Resource Planning External External Processing Internal Processing Labor requirements Capacity requirements Materials Documents, PS Texts Milestones W Documents Materials Internal PS Texts Milestones
- 44. Activities Activity No Control Key Assignment Work Related Execution factor Execution Constraints assignments External Activity
- 45. Activity to which the milestone is assigned Parameter for Progress Analysis Parameter for planned date in relation to activity Manual planned date Unique Milestone number Milestone Data
- 46. Network Settings Network Network Types Network Profile Parameters for Network Types Settlement Profile Status Profile Number range Planning Element Classification Control Planner Group Procurement Indicator Field Key Graphic Profiles Activity Parameters External Activity Internal Activity Cost Activity Service Activity Settlement strategy Release Strategy Plan Cost Variant Actual Cost Variant Assignment type PS-PP integration Change Document control Valid Receivers Allocation Structure Source Structure PA transfer Structure % of settlement No of Distribution rules Allowed Status number Authorization Key Business Transaction control Stock Priority PR for Network along with Resv. Item Category Change Profile Activity Change control Activity Element Change Control Component Change control PRT change Control Costing Types Costing Variant Cost Component Structure Costing Variants to Network Types Message Types Network Assignment
- 47. WBS & Network comparison WBS1 WBS1.1 WBS1.2 WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2 10 30 20 40 Network WBS Cost Control and Reporting Reflects Ownership Hierarchical Structuring NETWORK Work Control Reflects Execution Process Spread across Different WBS elements
- 48. Activities Assignment to WBS Elements WBS1 WBS1.1 WBS1.2 WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2 10 30 20 40 Network Planning dates Planning Costs Settlement rules Milestones Billing Plans
- 49. Network Creation Methods Project Builder Network Structure Graphic = Operative Structure = Standard Structure 2 Manual 1 Copy 3 Incorporate 4 Copy Project Incl. Activities 5
- 50. Network Creation Click & Hold Drop here Result
- 51. Click & Hold Drop here Result Activity Creation
- 52. Activity Element Creation Click & Hold Drop here Result
- 53. Demo & Exercises Menu path: Logistics Project System Project CJ20N Project Builder Transaction: CJ20N
- 54. 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
- 55. 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.
- 56. From Standard Networks While creating operative network using standard network, if the standard Network is linked to standard WBS, system will create operative WBS as well. 1 From Sale order 2 Creating operative network from Sales Order using standard Network, system will create operative Network with activities as standard Network and materials from sales order. From milestone 3 Creating operative Milestone from standard milestone system will create operative network from Standard Network which is attached to standard Milestone. = Operative Structure = Standard Structure = Direct Assignment = indirect Assignment Standard Structures (Cont..)
- 57. 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 From Standard WBS While creating operative WBS from standard WBS, if WBS is linked with standard network, system will not create operative network 2WBS From Standard Networks While creating operative network using standard network, if the standard Network is linked to standard WBS, system will create operative WBS as well. 1 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 Standard Structures (Cont..)
- 58. 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
- 59. Project Builder Structure Tree Worklist and Templates Work Area Selected Project & Project Tree Worklists & templates Proj. Definition and Structure Work Area
- 61. Planning Board Entry Area Worklist Preview Of last Project Gantt Chart Over view buttons WBS structure Templates & individual objects
- 62. Hierarchy Graphic Gantt Chart Network Graphic Business Graphic Graphics of Planning Board
- 63. 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
- 64. Structure Planning (Cont..) WBS element View Network View
- 65. Demo & Exercises Menu path: Logistics Project System Project CJ20N Project Builder Transaction: CJ20N Menu path: Logistics Project System Project CJ27 Project Planning Board Transaction: CJ27, CJ2B and CJ2C Menu path: Logistics Project System Project Special Maintenance Functions CJ2D Structure Planning Transaction: CJ2D, CJ20 and CJ2A
- 66. 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