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
Company code

Sales organization

Business area

Sales area

Purchasing

Cost accounting
Purc.organization
Warehouse

Plant Maintenance/
Service
Maintenance

Production

SAP AG

Prof.segment

Human resources

Planning
Plant

CSU Chico
Plant

PS

Controlling area

Personnel
area

FM
area

Treasury

Organizational Structures: Accounting

Operating
Operating concern
concern
IDEA
IDEA
Fin.mgt area
1000

Controlling
Controlling area
area
1000
1000

Company
Company code
code
1000
1000

Business
Business
area
area 4000
4000

Business
Business
area
area 6000
6000

CSU Chico
SAP AG

Company
Company code
code
1000
1000

Business
Business
area
area 1000
1000

Business
Business
area
area 2000
2000

Company
Company code
code
2000
2000

Business
Business
area
area 4000
4000

Organizational Structure: Logistics

Controlling
Controlling area
area
1000
1000

Purchasing
Purchasing organization
organization
1000
1000

Company
Company code
code
1000
1000

Sales
Sales organization
organization
0001
0001
Sales
Sales path
path
01
01

Division
Division 06
06
Division
Division 08
08

Valuation
Valuation level
level
Plant 1200
Shipping point
0006

Storage location
0001

Shipping point
1200

Storage location
0002

CSU Chico

SAP AG

Plant 1300
Storage loc.003
(WMS store)

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 (companys 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
- specific system setting in customizing - it is the framework

CSU Chico
SAP AG

Master Data

Central Functions
Classes
Characteristics
Object dependencies
Documents

Capital investment management

Accounting

G/L account
Chart of accounts

Cost Acctg

Cost center
Cost element
Activity type
Profit Center

Asset
CI program

Purchasing

Treasury
Material
Activity master
Vendor
Purc.info record

Plant Maintenance/
Service
Equipment
Maintenance

CSU Chico
Work center

BOM
PRT

SAP AG

WBS

Commt
item
Network

Production

Human Resources

Person
Qualification
profile

Controlling
Levels
Management
Result

Controlling
al
tu t
Ac omm t
s c dg e
Fd Bu Plan

Execution

Time

Value

Vendor
Personnel

Capital

Investment

Costs

Procurement

Production

S&D

Assets

CSU Chico

SAP AG

Resources

Materials

Revenues

Departments

Customer

Project Tasks
Cross-department

Sales

Accounting
Production

Purchasing

Hierarchy
of tasks

Agreements

Planning and Controlling

Dates

Budget
Resources

CSU Chico
SAP AG

Costs

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
Use
- Investment
- Marketing
- Make-to-order
production
- Asset
construction
- Shutdown
- Services
- Plant
maintenance
-R&D
- EDP projects

CSU Chico
SAP AG

PS

Functions
- Structures
- Time scheduling
- Project plannimg
board
- Cost planning
- Financial data
- Budget
- Info system

Views
- Materials
Management
- Cash Management
- Resources
- Operating results
- Controlling
- Periodic processing
- Configuration
- Workflow
- Investment
Management

Integration
SD
Quotation
Order
Billing
document

Plan order
Production order
Settlement

MM

CO
Order
Surcharges
Distribution
Assessment
Activity allocation

Purchase requisition
Purchase order
Goods receipt
Invoice receipt
Material issue

FI

PM
Plant maintenance
order
Settlement

SAP AG

CSU Chico

PP

AM
Asset under
construction
Settlement

Invoice

Integration of Financial Data

MM

Purchase
requisition

> 3.0

FI

Purchase
order

Down payment
request
Down
payment

Goods
issue

Expenditure

Financial
budget

Bank
clearing

Payment

Bank
clearing

Payment

Invoice
receipt

PS

Revenue
> 3.0
Quotation

> 3.0

Sales
order

SD

Down
payment
request

CSU Chico
SAP AG

Down
payment

FI

Delivery

Invoice
issue

Integration Example: Vendor Down

Purchase
Payment
order item
Payment
Difference between
invoice and down
payment clearing

Down payment
request

Down payment clearing

Invoice checked against
down payment document

CSU Chico
SAP AG

Down payment

Invoice

Integration Example: Purchasing

Purchase
requisition
BE

?
=
Bid
invitation

Invoice
verification

Entry of
quotation

Goods
receipt

Purchase order
monitoring

CSU Chico
SAP AG

Vendor
selection

Ordering

Function Model (5)

Status/
Phase

Structuring

Structuring

Planning

Approval

Execution

Closing

Concept

Structure

Costs
Dates

Budget

Actual data

Settlement

Confirmmation

Network
PP
order

CSU Chico
SAP AG

TIME

...

Settlement
Settlement

Costs
Dates

...

Release

...

...
Budgett

Work
breakdown
structure

Commitment,
costs, revenues

Project
definition

Operative Structures in Projects

WBS

Network

CSU Chico
SAP AG

Project definition

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
organization

Process-oriented
organization

1:N
1:N

Budget

Dates

Costs

Resources

Basic dates

Resource costs

CSU Chico

Basic dates

Organizational units
SAP AG

Project Definition

March
31

April
6

Dates
Basic dates for
entire project

Default values
Company code
Currency
Settlement rule

Planning
parameters
For dates
For costs

Organizational
outline

CSU Chico

SAP AG

Controlling area

April
7

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
Planned costs
Actual costs

Budget
Original budget
Release budget
Purchase
order

Financial data
Customer
Vendor

Commitment
Purchase requisition
Purchase order

processing
CSU Chico Periodic
Surcharges

SAP AG

Settlement

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

CSU Chico

Subproject

SAP AG

PS texts

Documents

Network
Internal processing
Work
Dates
Costs

April
7

Scheduling

External processing

Relationships
Constraints
Floats
Critical activities

Services
Dates
Costs

Material

Controlling

Purch. parts / assemblies

Dates
Costs, commitment

Earned value reports

Capacity load

CSU Chico
SAP AG

Periodic processing
Surcharges
Settlement

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
a
Network
Network header
External
processing

General
costs activity
Documents

Services

PS texts
Internal
processing

External
processing

Int. processed
element

Milestones
Internal
processing
Material components
Production resources/tools
Qualification

CSU Chico
SAP AG

Ext. processed
element
Gen. costs
element

Relationships
Production

Assembly

FS relationship

Design
SS relationship

Purc.order

Purc.order

BOM

FF relationship

Design
Work
scheduling

Acceptance

CSU Chico

SF relationship

SAP AG

Start
-up

Work Breakdown Structures and

Networks
WBS
Network
13
13

1000
1100
1100

13-1
13-1

13-2
13-2

13-3
13-3

1050
1050

13-4

3000
3000
1060
1060

1140
1140
13-1-1
13-1-1

13-1-2

13-2-1
13-2-1

1170
1170

1140
1140

1000
1000

13-2-2
13-2-2

1080
1080
2000
2000

1050
1050

1030
1030

1060
1060

13
Elevator
13-1 Engineering
13-1-1 Elec.parts
13-1-2 Mech.parts

SAP AG

1120
1120

1120
1120

13-2 Procurement 13-3 Assembly

13-2-1 Elec.parts
13-4 Insurance
13-2-2 Mech.parts

CSU Chico

2000
2000

1030
1030

1080
1080
3000
3000

1100
1100

1170
1170
1170

1000 Layout
1030 Engineering: Mech.parts
1050 Engineering: Elec.parts
1120 Procurement:: Car
1080 Procurement: Mech.parts

1060 Procurement::Motor
1100 Procurement: Elec.
parts
1140 Assembly
2000 Acceptance
1170 Release
3000 Insurance

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