sheetal.

deshmukh: SAP Project System - A

ready Reference ( Part 1 )
Posted by Sheetal Deshmukh May 9, 2008
Being a beginner in SAP PS is a challenge. As a techie, When I started my ABAP Program
in PS Module, I found a lot of scattered information but there is no article or blog with
consolidated information even on basic terminologies of SAP PS. This blog is my attempt
to provide an insight of basic techno-functional aspects and terminologies of SAP PS to a
novice.
In my first blog you will find the important terms of the PS module. I have tried to explain
them with the help of an example. Following this is the next blog SAP Project System - A
ready Reference ( Part 2 ) where the technicalities of the same are covered.
The Project System (PS) module of SAP is specifically designed to provide comprehensive
and fully integrated project management functionality for SAP customers. A Project is a
complex undertaking, bringing with it huge data of different type.
At the beginning of each project, whether it involves developing a new product, make-toorder engineering or internal organization, you need to define and set up the structures
necessary to manage your project and incorporate them into your existing organizations and
processes. Before you can run a project in its entirety, you must first describe the project
goals precisely and create a structure for the project activities to be carried out. A clear
project structure provides a basis for successful project planning, monitoring and control.

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Organizational Structures in Project System:

"

You create and manage your project structure in SAP R/3 Project System, by means of work breakdown structures
and networks.The WBS describes individual phases and functions of a project. Network contains the individual
project tasks and the dependencies between them in the form of activities and relationships

Some important terms:

Project Definition
Project Definition is general description of the project that you want to manage. It is a framework laid down for all the
objects created within a project. It contains organizational data that is binding for the entire project.

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Work Breakdown Structure (WBS)

WBS is a hierarchical model of the tasks to be performed in the project. It provides overview of the project and forms
basis for the project organization and coordination.It shows work, time and money spent on the project. You can use
it to plan dates & costs and allocate budget. The Work Breakdown Structure can be displayed according to:
Phase
Function
Object

Individual tasks required to carry out the project is called WBS elements.

Network
The network describes project processing. Thus the Network contains instructions on how to carry out activities
in a specific way, in a specific order and in a specific time period.Main elements of network are activities and
relationships. It forms the basis for planning, analyzing and monitoring time schedules, costs, & resources.

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Activities
Activities are used to plan project staffing, capacity, material, PRTs, and service requirements. When
activities are assigned to WBS elements, detailed view of costs, dates, and capacities at WBS element
could be obtained. Its a task in a network which has a defined start and finish. An activity can be
broken down into activity elements.Three categories of activities in the Project System:
Internal Activities
External Activities
General Cost Activities

Activity element
Activity element is an activity which is subordinate to another activity. Activity elements contain the same information
as activities.Three categories of activity elements in the Project System:
Work elements
External Elements
General Cost Elements

Activity Type
Its a physical measure of activity output of a cost center .e.g. hours, number of units produced,
machine times, production times.

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Milestones
Milestones are the events in the project to which particular importance is attached Or which trigger predefined
functions. In general they indicate transition between different departments or phases. Milestones are assigned to
activities and WBS elements:In PS milestones are used to:
Trigger predefined functions in network activities.
Carry out earned value analysis.
Determine dates in billing plan for sales orders.

Relationships
You use relationships to depict chronological and technical dependencies between activities. The relationship
determines the nature of the link between the individual activities. :
FS Relationship : An activity does not start until the preceding activity is completed.
SS Relationship : An activity can not start unless another activity has started.
FF Relationship : An activity can not be completed until another activity has been completed.
SF Relationship : An activity can not be completed until another succeeding activity has stared.

Confirmations
It is a part of network control. It documents the state of processing for the network activities and activity elements.
There are two types of confirmations Partial & Final.Confirmations are used to record:
The work center where the activity was carried out.
The person who carried out this activity.
The yield and scrap produced in an activity.
The actual values for the duration and dates.

Settlement
As a rule, projects are used to collect and monitor costs, but are not usually the final cost object. For this reason the
costs in atypical project will be settled at the end of the period.To this end, you store settlement rules in the activity /
WBS element requiring settlement. They contain information on settlement receivers, cost apportionment and control
data. Settlement receivers could be cost centers, G/L accounts. Etc.

Budget
The budget is the approved cost structure for an action or project in a particular period.Budgeting differs from cost
plan in that it is binding. In the approval phase you prescribe your project funds in the form of budget. It is possible to
allocate overall and annual budget in parallel.

Work Centers
Work center represents the resources responsible for executing an activity. In a work center, you can enter the
available capacity and an operating time. You can arrange the work centers in a hierarchy for capacity evaluation
purposes. Internal activities are assigned to work centers (resources) to be completed.A work center is a physical
unit within a company where an activity is performed.

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Profit Center
It is subdivision of business organization which is set up for internal management control purposes. Profit centers
divide business up on a management basis. The basic aim of profit center accounting is to present areas of the
business as entities operating independently in the market.

Lots of jargons .let me site an instance of the construction project of a building..

Let say there is a construction company that is going to construct a Multi-Storey building.
The first thing that needs to be created in the system is Project Definition. The entire
activity plan for this project will come under this project definition. Overall budget needs
to be estimated, assigned and get approved for the project. Project timeline needs to be
decided. Project could be then subdivided into separate parts which are actually WBS
elements lets say in this e.g. we have 4 main WBS elements:
1.
2.
3.
4.

Land Acquisition
Procurement
Construction
General

To every above WBS, budget and time line need to estimated.

Now to take an example we will drill down two WBS elements namely Land Acquisition
and Construction.
- Land Acquisition could be sub divided into activities as in

Generation of request document for the land.

Soil testing
Approval for construction
Preparation of purchase order of the land

Above 4 activities should be done in sequence. As in second activity will start only after
request document for the land is completed and so on. Hence these activities have FS
Relationship between them.
- Now take WBS element Construction.
It could be sub divided in to floor wise tasks. Let say, we have four story building and each
floor has 4 flats. So under WBS element Construction we may create separate sub WBS
element for each floor. Each sub WBS element of floor may be divided further into last level
of WBS elements one for each flat on the floor. This way we will have hierarchy of the
WBS elements.Finally last level of WBS elements i.e. WBS elements of the flats will have
activities like
1. Plumbing

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2.
3.
4.
5.

Electrical work
Flooring
Painting
Furniture

These activities form the Network.

Let say Plumbing and Electricity work are the external activities as they are given
to a outside contractor. While the other activities are done by company labor
so they are internal activities. Plumbing and Electrical work could be started
simultaneously.While flooring needs be done once the plumbing and Electrical
work is complete. Hence they have FS relationship and so on.Now if we talk
about milestones:
1.
2.
3.
4.

First milestone could be purchasing the land

Second could construct the base of the building.
Third could be construct the floors
Fourth could be completion of plumbing and electrical work for all the flats. And so on.

As I have said that Work center represents the resources responsible for executing an
activity For the above activities, work centers could be the company labor required for the
construction, labor provided by the external service center for plumbing and Electricity work.
while Profit Centers could be the finally constructed flats.

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Sr NO

Project Elements

Examples

1
2

Project Def
WBS

Activities (Under 3rd WBS)

Relationship

Milestones

Network

Constructing the Buiding

Generation of request
document for the land
Soil testing
Approval for
construction
Preparation of purchase
order of the land
Plumbing( external
Activities)
Electricity work( external
Activities)
Flooring (internal
activities)
Painting (internal
activities)
Furniture
Flooring needs be done after the
plumbing and Electricity work.
Hence they have FS relationship
First milestone could be
purchasing the land
Second could construct
the base of the building.T
hird could be construct
the floors
Fourth could be
completion of plumbing
and electricity work for all
the flats
Plumbing and Electricity installation
are to be one contractor each.

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sheetal.deshmukh: SAP Project System - A ready Reference ( Part 1 )

Therefore, there exist a network

within on the activities of it under
different WBSs.

( Referencee : The book : Functions in Detail : R/3 System - Project Management in

Engineering & Construction )
1084 Views
May 11, 2008 9:33 PM Aditya Varrier
Hi Sheetal,
a good blog to understand the terminologies in PS.
Waiting for Part 2.
Great work.
Regards,
Aditya
May 11, 2008 10:08 PM Sharayu Kumatkar
Sheetak the Blog is really nice n very useful.
May 11, 2008 10:11 PM Sharayu Kumatkar
Sheetal very good Blog.
and indeed it is very useful.
May 11, 2008 11:08 PM Arpil Gupta
Nice and concise information on PS. Gr8.
Regards
Arpil
May 11, 2008 11:48 PM Sheetal Deshmukh
Hi ! Sheetal,
Appreciate ur efforts put in, towards making
PS-Module,simplified,informative & presentable
covering conceptual knowledge.
Hope to see bog no2 as early as possible.
All the Best in future endeavours also.
Warm Regards,
Sudhir
12.05.08

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May 12, 2008 12:05 AM simranpreet sandhu

Very well written for the consolidated information on SAP PS.
May 12, 2008 5:52 AM Chetan Ahuja
A good one . Will really help beginners to understand the concepts of SAP PS.

May 13, 2008 7:57 PM Beena Thekdi

Hi
Good job.
Both the parts are very much descriptive and can be used as reference for techies.
Starting point for beginners.
Thanks.

May 20, 2008 1:58 AM Nayan Kurup

Hi Sheetal,
This is a very useful blog for all the techis...Very simple language and a lot of useful content...
Keep it up.
Thanks
Nayan
Jun 12, 2008 9:55 AM Sastry Gunturi
hi sheetal i am working on a report in PS and need to pull the last posting date with amount spend on the project....
where can i those.... thank you.
Jan 5, 2009 10:15 PM Amaresh Makal
Sheetal,
Wonderful job. Any beginner can understand the concept, terminology, and whole picture of PS.
Amaresh
Feb 4, 2009 5:55 AM Tejaswini Chafekar
Hi Sheetal,
Very helpful blog!
I am very new to PS, and as per our requirement, i need to send a mail to completion of one step. So i need to link a
workflow to the PS.
Can you help me on this?

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Thanks,
Runal
Jun 28, 2010 12:24 AM Kiran Kumar
Its Very easy to understand the basic flow of the PS module
Good attempt
Regards
Kiran
Jul 2, 2010 7:50 PM Muthuraman Govindasamy
Hello Sheetal
Very nicely presented the Project system
Muthu
Aug 23, 2010 5:17 AM mahesh A
Hi shital,
its very gr8 documentation for PS freash consultant.Hope if you have more documentation ,you will forwards to sdn
forum.
Regards,
Mahesh Amale
Aug 10, 2011 11:11 PM subhash sharma mahesh A in response to
The documents created are excellent and very useful to any PS module user.
Can you throw some ligt on how to import network activites from excel sheet. Similarily can i import Confirmation
from a excel sheet.
Regards
SCSharma
GM_Manufactuing systems (using SAP)

Jun 15, 2012 10:53 AM Pranav Trivid

Hi Sheetal,

You have a done a great job!!!

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Regards,
Pranav

Jun 25, 2012 12:36 PM mahesh A

Nice Material.......Thanks sheetal

Jun 26, 2012 7:02 PM srikanth ch

Hi Sheetal'

Thank you for giving such a valuable information for easy understanding of PS
basics.

Regards'
srikanth.

Jun 29, 2012 12:33 PM Sheetal Deshmukh

Thanks all for appreciating my work !

Jul 3, 2012 8:29 AM B P singh

Its really a great thing.Such an effort to make the jargons and business flow comprehensible
is really commendable!!

Thanks and Regards

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Jul 31, 2012 11:52 AM dhayanandha nandha

Nice Stuff for a beginner.

Great job!

Thanks & Regards

Nandha

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