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

PS
Purc.organization Controlling area
Warehouse Prof.segment

Plant Maintenance/ Production Human resources Treasury

Service
Planning
Plant
Maintenance
CSU Chico
Plant
Personnel FM
area area

SAP AG
Organizational Structures: Accounting
Operating
Operating concern
concern
IDEA
IDEA

Fin.mgt area
Controlling
Controlling area
area
1000
1000
1000

Company
Company code
code Company
Company code
code Company
Company code
code
1000
1000 1000
1000 2000
2000

Business
Business Business
Business Business
Business Business
Business Business
Business
area
area 4000
4000 area
area 6000
6000 area
area 1000
1000 area
area 2000
2000 area
area 4000
4000

CSU Chico

SAP AG
Organizational Structure: Logistics
Controlling
Controlling area
area
1000
1000

Purchasing
Purchasing organization
organization Company
Company code
code Sales
Sales organization
organization
1000
1000 1000
1000 0001
0001

Sales
Sales path
path Division
Division 06
06
01
01

Division
Division 08
08

Valuation
Valuation level
level
Plant 1200 Plant 1300

Shipping point Storage location Storage loc.003

0006 0001 (WMS store)
CSU Chico
Shipping point Storage location
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 (companys mail department)
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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

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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

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

Controlling

Fd Bu Plan
Ac omm t
s c dg e
tu t
al
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
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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 Chico Invoice
construction
Settlement Settlement

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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
SD request FI
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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
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SAP AG
Integration Example: Purchasing
Purchase
requisition
BE
?
=
Invoice Bid
verification invitation

Goods Entry of
receipt quotation

Purchase order Vendor

monitoring selection

CSU Chico Ordering

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
Budgett
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
1:N

Budget Dates
Costs Resources
Basic dates Resource costs
CSU Chico Basic dates
Organizational units
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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 Chico
Controlling area

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

CSU Chico Periodic processing

Surcharges

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

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SAP AG
Structure of a WBS

Currency

Milestones PS texts Documents

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Subproject

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

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

Periodic processing
CSU Chico Surcharges
Settlement

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
SF relationship CSU Chico -up

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

1100
1100

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

1140 1170 1000

1000 1140
1140 1170
1170
1140 1170 1170
13-1-1
13-1-1 13-1-2 13-2-1
13-2-1 13-2-2
13-2-2
1080
1080
2000
2000
1030
1030 2000
2000
1050
1050 1030
1030 1060
1060 1080
1080
3000
3000 1120
1120
1100
1100 1120
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

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SAP AG
Closing
Project closing

Collecting all costs

Settling the costs

Closing the structures

CSU Chico

SAP AG