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 Accounting
Sales organization Company code

Sales area Business area

Purchasing Cost accounting

Purc.organization Controlling area
Warehouse

Plant Maintenance/
PS
Production
Prof.segment

Human resources Treasury

Service
Planning
Plant

CSU Plant Personnel FM

area area
Chico
 SAP AG
Organizational Structures: Accounting
Operating concern
IDEA

Fin.mgt area
Controlling area
1000
1000

Company code Company code Company code

1000 1000 2000

Business Business Business Business Business

area 4000 area 6000 area 1000 area 2000 area 4000

CSU
Chico
 SAP AG
Organizational Structure: Logistics
Controlling area
1000

Purchasing organization Company code Sales organization

1000 1000 0001

Sales path Division 06

01

Division 08

Valuation level
Plant 1200 Plant 1300

Shipping point Storage location Storage loc.003

0006 0001 (WMS store)
CSU
Shipping point Storage location
Chico
1200 0002
 SAP AG
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 (company’s mail department)
CSU
Chico
 SAP AG
Organizational Elements and
Master Data
 Business Area - (FI) Represents a separate area of operations or
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
CSU- specific system setting in customizing - it is the
framework
Chico
 SAP AG
Master Data Central Functions
Classes
Characteristics
Object dependencies
Documents

Accounting Capital investment management Cost Acctg

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

Purchasing Treasury
Material
WBS
Activity master Commt
Vendor item
Purc.info record
Network

Plant Maintenance/ Production

Human Resources
Service Equipment

Person
CSU Work center Qualification
BOM profile
Chico PRT
 SAP AG
Controlling
Management
Levels Result

Controlling

Execution
Resources

Value Time

Capital Investment Costs Revenues

Vendor Procurement Production S&D Customer

Personnel Assets Materials Departments

CSU
Chico
 SAP AG
Project Tasks
Cross-department Sales Accounting
Purchasing Production

Hierarchy
of tasks Agreements

Planning and Controlling

Dates Budget

Resources 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
PS
Use Functions Views
- Materials
- Investment - Structures Management
- Marketing - Time scheduling - Cash Management
- Make-to-order - Project plannimg - Resources
production board - Operating results
- Asset - Cost planning - Controlling
construction - Financial data - Periodic processing
- Shutdown - Budget - Configuration
- Services - Info system - Workflow
- Plant - Investment
maintenance Management
-R&D
- EDP projects

CSU
Chico
 SAP AG
Integration
SD PP
 Quotation  Plan order
 Order  Production order
 Billing  Settlement
document
MM CO

Purchase requisition  Order

 Purchase order  Surcharges

 Goods receipt  Distribution

 Invoice receipt  Assessment

 Material issue  Activity allocation

PM FI AM

 Plant maintenance  Asset under

order CSU construction
 Settlement
 Invoice
 Settlement
Chico
 SAP AG
Integration of Financial Data
MM FI

Purchase Down payment

Purchase Goods Bank
requisition request Payment
order issue clearing
> 3.0 Down
payment Invoice
receipt
Expenditure

PS
Financial
budget

Revenue
> 3.0 Invoice
Sales Down issue Bank
Quotation Down Delivery Payment
order payment clearing
> 3.0 payment
request
SD FI
CSU
Chico
 SAP AG
Integration Example: Vendor Down
Payment Purchase
order item

Payment
Difference between Down payment
invoice and down request
payment clearing

Down payment clearing

Invoice checked against Down payment
down payment document

Invoice
CSU
Chico
 SAP AG
Integration Example: Purchasing
Purchase
requisition
BE
?
=
Invoice Bid
verification invitation

Goods Entry of
receipt quotation

Purchase order Vendor

monitoring selection

CSU Ordering
Chico
 SAP AG
 Function Model (5)
Status/ Structuring Structuring Planning Approval Execution Closing
Phase
Costs
Concept Structure Dates Budget Actual data Settlement

Project
definition

...

...

...
costs, revenues
Commitment,

Settlement
Budget
Work Costs
Dates
breakdown
structure

Settlement
...
Release Confirm-
Network mation

PP
order

TIME
CSU
Chico
 SAP AG
Operative Structures in Projects

WBS

Network

Project definition
CSU
Chico
 SAP AG
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 Network

Responsibility-oriented Process-oriented
organization organization

1:N

Budget Dates
Costs Resources
Basic dates Resource costs
CSU Basic dates
Chico Organizational units
 SAP AG
Project Definition March
31
April
6

Dates
 Basic dates for
entire project

April
7
Default values Planning
 Company code parameters
 Currency  For dates
 Settlement rule  For costs

Organizational
outline
CSU
 Controlling area
Chico
 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 April
7
Dates
 Basic dates
 Scheduled dates
 Actual dates

Costs Budget
 Planned costs
 Original budget
 Actual costs
 Release budget

Purchase
order

Financial data Commitment

 Customer  Purchase requisition
 Vendor  Purchase order

Periodic processing
CSU  Surcharges

Chico  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

CSU
Subproject

Chico
 SAP AG
Network
Internal processing
 Work
 Dates
 Costs
April
7
Scheduling
External processing
 Relationships
 Services
 Constraints
 Dates
 Floats
 Costs
 Critical activities

Controlling Material
 Purch. parts / assemblies
 Earned value reports
 Dates
 Capacity load
 Costs, commitment

Periodic processing
CSU  Surcharges
 Settlement
Chico
 SAP AG
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
 Question that are answered using network information

 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) FF (finish-finish)

 SS (start - start) SF (start-finish)

CSU
Chico
 SAP AG
Structure of
Network header
a Network
External General
processing costs activity

Documents
Services PS texts
External Internal
processing processing

Int. processed
Milestones element

Ext. processed
Internal element
processing
Gen. costs
Material components element
Production resources/tools
Qualification

CSU
Chico
 SAP AG
Relationships
Production Assembly
FS relationship

Purc.order
Design
SS relationship
Purc.order

BOM
Design
FF relationship
Work
scheduling

Acceptance Start
CSU
SF relationship -up

Chico
 SAP AG
 Work Breakdown Structures and
Networks
WBS Network
13 1000

1100

1050 3000
13-1 13-2 13-3 13-4
1060

1140 1170 1000 1140 1170

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

1000 Layout 1060 Procurement::Motor

1030 Engineering: Mech.parts 1100 Procurement: Elec.
13 Elevator 13-2 Procurement 13-3 Assembly 1050 Engineering: Elec.parts parts
13-1 Engineering 13-2-1 Elec.parts 13-4 Insurance 1120 Procurement:: Car 1140 Assembly
13-1-1 Elec.parts 13-2-2 Mech.parts 1080 Procurement: Mech.parts 2000 Acceptance
13-1-2 Mech.parts 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