SAP Project System, Standard Project Management Business Process

1. SAP PROJECT SYSTEM

2. OBJECTIVES
BY THE END OF THIS SECESSION, YOU SHALL BE ABLE TO UNDERSTAND:
• SAP PROJECT SYSTEMS OVERVIEW
• SAP PS PROJECT STRUCTURE
• SAP PS PROJECT PLANNING
• SAP PS PROJECT BUDGETING
• SAP PS PROJECT EXECUTION
• SAP PS PROJECT CLOSURE

3. Overview Structuring Planning Budgeting Execution Closure

4. SAP
R3
PS
MM
QM
PM
SD
HR
FI
CO
DMS
Overview Structuring Planning Budgeting Execution Closure

5. • SAP PS OVERVIEW: SAP PS COMPONENTS
Overview Structuring Planning Budgeting Execution Closure
Project Structure
WBS
Activity
Milestone
Time Planning Cost Planning
Budgeting
Actual booking/Progress
Confirmations
Project Reporting

6. OBJECTS IN SAP PS
• PROJECT DEFINITION
• WBS
• NETWORK
• ACTIVITY
• MILESTONE
• PS TEXT
• PS DOCUMENT

7. • PROJECT SYSTEM USES THE ORGANIZATION STRUCTURE DEFINED BY OTHER MODULES.
Overview Structuring Planning Budgeting Execution Closure
Controlling Area
Company Code
Business Area
Profit Center
Plant
Business Area
Profit Center
Plant
Plant
Work Center
Purchasing Organization
Purchasing group
Plant
Purchasing Organization
Purchasing group
Service master record

8. MASTER DATA IN PROJECT SYSTEMS
Note: ALL CCA MASTER DATA IS MAINTAINED CENTRALLY
WBS elements
Hierarchicaloriented
Network / Activities
Process-oriented
1
13-
Assignments
WBS elements
and activities

9.  Actual Costs
 Basic Dates
 Scheduled Dates
 Actual Dates
 Original Budget
 Budget Updates
 Release Budgets
 Availability Control
 Purchase Requisition
 Purchase Order
Commitments:
WHAT ARE WORK BREAKDOWN STRUCTURES USED FOR?
Dates:
Budget:
Execution:
“WBS Structure”
 Planned Costs
Planning:
 Overheads
 Settlement
 Earned Value Analysis
Periodic Processing:

10. OPERATIVE INDICATORS AND ATTRIBUTES
Key
 Account assignment element
 For posting actual costs
 Network / Maintenance Order
assignments
 Planning Element
 For planning costs
 Plan/actual cost comparison
WBS 1
WBS 1.3
Released
WBS 1.2
Partially Rel
Released Released Released Released
WBS 1.4
Partially Rel
WBS 1.2.1 WBS 1.2.2 WBS 1.4.1 WBS 1.4.2


 Billing element
 Planning for Revenue
 Raise bill to customer

11. Project Definitions
Work Breakdown Structures
WBS Elements
Project Definitions
PROJECT DEFINITION AND WORK BREAKDOWN STRUCTURE

12. 1 V-06
2 V-06.01
3 V-06.01.01
3 V-06.01.02
2 V-06.02
Entries Goal
Automatic
derivation
1 V-06
1 V-06.01
1 V-06.02
1 V-06.01.01
1 V-06.01.02
Hierarchy Key
level
DERIVATION OF THE WBS HIERARCHY
V-06
V-06.01 V-06.02
V-06.01.01 V-06.01.02

13. SAP PS Project Structure: Project Definition
Overview Structuring Planning Budgeting Execution Closure

14. PROJECT LEVELS
Project Levels:
 Each project must have a single Level 1 WBS
 Allows for ease of reporting at a project level
 Structure below Level 1 is determined by phase and other
reporting requirements
This is an example of a typical project structure

15. V-1111111 V-0691001
V-1111111.02 V-1111111.03 V-0691001.02
Template Operative
TEMPLATES AND WORK BREAKDOWN STRUCTURES
V-0691001.03

16. ACTIVITIES AND ACTIVITY ELEMENTS
 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
Internal External
General
Costs
Service

17. SAP PS Project Structure: Activities and Networks
Overview Structuring Planning Budgeting Execution Closure

18. NETWORK ACTIVITIES
 Work / Services
performed inhouse
Internal Processing:
 Purchasing of work /
services
External Processing:
 Planning of additional
primary costs
Costs Activity:
 Purchasing of services
with service specifications
Services:

19. 1200
Cost Center
INTERNAL PROCESSING
Work: 500hrs Output provided to complete activities
Work Center
Organizational unit Where an activity is
carried out or work output is provided.
Scheduling Data
Cost Center Data
Responsible
Persons

20. 1300
Purchasing Group
EXTERNAL PROCESSING
Description
Material Group
Work Performed by a third
party (Vendor)
Price per Unit
Quantity & Unit
Vendor 1000
Purchase
Order
Quotation
Entry
Vendor
Selection
PO
Processing
Entry of
Services
performed
Good Receipt /
Service Receipt
Invoice
Verfication
PR
Commitments
Purchase
Requisition
Bid
Invitation
PO
Committments
Actual
Costs

21. WBS 1.4
WBS 1
WBS 1.5
WBS 1.3
WORK BREAKDOWN STRUCTURES & NETWORKS COMPARED
1000
1200
5000 Network
WBS 1.3.1 WBS 1.3.2 WBS 1.5.1 WBS 1.5.2
1100
 WBS
 Cost Control and Reporting
 Reflects Ownership
 NETWORK
 Work Control
 Reflects Execution
Versus

22. WBS 1.4
WBS 1
WBS 1.5
WBS 1.3
ACTIVITY ASSIGNMENT TO WBS
1000
1200
5000 Network
WBS 1.3.1 WBS 1.3.2 WBS 1.5.1 WBS 1.5.2
1100
 Date Planning
 Cost Planning
 Generating Settlement rules

23. Logical Sequence Time Sequence
FS Relationship
SS Relationship
FF Relationship
SF Relationship
RELATIONSHIPS

24. Activity
number
Control
key
Duration
Description
Earliest
finish
Latest
finish
Floats
Relationship
Activity
Days Days
Days
Specification Mechanical Layout
Days
Procurement
FS FS
16.02.2000 34 18.02.2000 21.02.2000 34 17.05.2000 18.05.2000 34 08.06.2000
04.04.2000 0 06.04.2000
FS
07.04.2000 0 07.07.2000
FS
10.07.2000 34 28.07.2000
Electronic Layout
21.02.2000 64 31.03.2000
24.05.2000 30 07.07.2000
NETWORK GRAPHIC DETAILS

25. Project Structure: Milestones
Overview Structuring Planning Budgeting Execution Closure

26. SYSTEM STATUS AND USER STATUS CONTROL
CRTD
CRTD CRTD
CRTD CRTD CRTD CRTD
PREL
PREL REL
CRTD REL REL REL
 What is Status control used for?
 To allow or forbid 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.

27. SYSTEM STATUS’S
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)

28. Project Version

“Project Snapshot”
Can’t be changed!!!
Simulation Version
CO Plan Version
Can be changed!!!
Versions
VERSIONS IN PROJECT SYSTEMS

29. January February March April
Project V-0691001
Version 001
Project V-0691001
Version 002
SIMULATION

30. SIM 001 SIM 002 SIM 003
WHAT ARE SIMULATION VERSIONS USED FOR?
Update
Operative Project
Comparisons
Create

31. SAP PS PROJECT PLANNING: TIME PLANNING
Time Planning Cost Planning Revenue Planning

32. SAP PS PROJECT PLANNING: COST PLANNING
Time Planning Cost Planning Revenue Planning

33. COST PLANNING
TYPES OF COST PLANNING
 HIERARCHICAL COST PLANNING
 UNIT COST PLANNING
 EASY COST PLANNING
 COST ELEMENT-BASED COST PLANNING
 AUTOMATIC COST PLANNING

34. Time Planning Cost Planning Revenue Planning
SAP PS PROJECT PLANNING: COST PLANNING CONT.

35. PROJECT COST PLANNING: REVENUE PLANNING
Time Planning Cost Planning Revenue Planning

36. Approved
budget
Budget
Top-down
distribution
Budget
applied for
Annual plan value
Bottom-up
extrapolation
1 E-1399
2 E-1399-1
3 E-1399-1-1
3 E-1399-1-2
2 E-1399-2
.
.
.
O
R
I
G
I
N
A
L
P
L
N
D
T
O
T
A
L
D
I
S
T
R
B
T
Total
...
...
...
...
2000
2001
Cost Planning Cost Budgeting
COST PLANNING AND BUDGETING

37. Release
EUR 8.0 m
Budget 10m Budget 10m
EUR EUR
EUR
EUR
Release
EUR 2 m
EUR EUR
EUR EUR
RELEASING THE BUDGET
Release
EUR 3 m
Add 1 m Add 5 m

38. 2002
2001
Budget Values
Budget Updates
BUDGETING OVERVIEW
 Availability Control:
 Against Current
Budget
 Against Budget
Releases
Budget Carryforward Release Budget

39. Invoice
Business Events
Purchase
order
Availability
Check
No more
Funds
available!!
Purchase
Requisition
Business Events Budget Check (AVAC)
Budget
Total 5
0
2015 3
0
2
0
WBS 1.1.1
Comm Actual
1
0
4
0
5
5
2
5
1
5
Checks overall
funds available
2016
Overview Structuring Planning Budgeting Execution Closure
SAP PS Project Budgeting: Budget Control

40. SAP PS PROJECT BUDGETING: BUDGET CYCLE
Overview Structuring Planning Budgeting Execution Closure
Budget
exceeded error
message

41. SAP PS PROJECT BUDGETING: BUDGET SUPPLEMENT
WBS 1
WBS 1.1
WBS 1.1.1 WBS 1.1.2
WBS 1.2
WBS 1.2.1
Company’
s Fund
Overview Structuring Planning Budgeting Execution Closure

42. SAP PS Project Budgeting: Budget Return
WBS 1
WBS 1.1
WBS 1.1.1 WBS 1.1.2
WBS 1.2
WBS 1.2.1
Company’
s Fund
Overview Structuring Planning Budgeting Execution Closure

43. SAP PS Project Budgeting: Budget Transfers
WBS 1
WBS 1.1
WBS 1.1.1 WBS 1.1.2
WBS 1.2
WBS 1.2.1
Overview
Structurin
g
Planning Budgeting Execution Closure

44. PROCUREMENT STEPS
WBS 1.1
WBS 1.1.1
WBS 1.1.1
T-20600
10
Vendor Purchase
Components
Goods receipt
For Purchase
order
Goods issue
to Network
Activity
(Consumption)

45. COMMITMENT MANAGEMENT (2)
WBS Element V-0691001.01
Purchase
Requisition
Purchase
Order
Goods
Receipt
MM CO
WBS Element V-0691001.01
C/Elem Committed Actual Assigned
4000000 0 11000 11000
C/Elem
4000000
Committed
6000
Actual
5000
Assigned
11000
WBS Element V-0691001.01
WBS Element V-0691001.01

46. SAP PS PROJECT CLOSURE: PROJECT CLOSURE FLOWCHART
Clear
project
stocks
Clear
pendin
g
settlem
ents
Delete
unused
WBS
elements
Reduce
release
d
budget
Return
original
budget
Update
all WBS
element
s status
to TECO
Close
project
definitio
n
Overview Structuring Planning Budgeting Execution Closure

47. SAP PS PROJECT CLOSURE: TECO STATUS
Overview Structuring Planning Budgeting Execution Closure

48. SAP PS PROJECT CLOSURE: CLOSED STATUS
Overview Structuring Planning Budgeting Execution Closure

49. REPORT: BUDGET / ACTUAL / VARIANCE

50. REPORT: BUDGET / ACTUAL / COMMITMENT

51. REPORT: ACTUAL / COMMITMENT / PLAN

52. THANK YOU