This document provides an introduction to SAP Project Systems (PS) and outlines the key topics that will be covered in the training course. The objectives of the course are to understand PS structures like work breakdown structures (WBS) and networks, project life cycles, planning, budgeting, scheduling, execution, and reporting. It describes the types of internal and external projects handled in PS and how PS integrates with other SAP modules. Key sections cover WBS elements, networks, activities, and milestones that are used to plan and monitor project progress. Status control and the different system and user statuses are also summarized.

1. Introduction to SAP Project Systems
PS Training
Trainer Mr.Soumya De
Designation PS Functional Lead

2. Target Audience
This course is intended for the following audiences:
Project teams
SAP Consultants

3. Objectives
At the completion of this course, Participants
should be able to:
understand the Overview of SAP Project System Module
Understand Project System structures.
Understand the Projects Life Cycle for
Internal projects
External projects
Understand Operative data for projects.
Understand Planning and Budgeting activities against projects.
Understand Material and Service value flows.
Become familiar with project integration points.
Become familiar with periodic settlements & closure related steps.
Become familiar with year end processes.
Understand the various Project Finance Reports in the system.

4. Lesson 0: Introduction
Lesson 1: Project Structures
Lesson 2: Project Planning
Lesson 3: Project Budgeting
Contents
Lesson 4: Scheduling & Execution
Table of contents
Lesson 5: Project Period End Closing
Lesson 6: Project Analysis & Reporting
Lesson 7: Other SAP Proj. Mgt. Tools

5. Introduction - Project Systems
What is a Project?
A temporary endeavor undertaken to create an unique product or service, as a result
that a company carries out, characterized by the uniqueness of its general conditions
and constraints. These conditions include,
Objectives of the project
Time frame for executing it
Financial and capacity-related restrictions
SAP PS
SAP PS is a project management tool that assists you throughout all the phases of
your project. Through the high level of integration between SAP PS and other SAP
functions, such as Logistics, Accounting, and Human Resources, SAP PS ensures
that the necessary business processes are handled quickly and efficiently.
Projects usually involve cross-
departmental and highly complex
business processes.
Projects are often cost-intensive, time-
consuming, and of strategic importance.
Project
Constraints

6. Introduction - Project Systems
Project Types
Internal Projects
Projects financed internally with in the Organization for their New, Expansions, Overheads,
R&D and so on. These project types are:
Overhead Cost Projects (Ex: Maintenance, shutdown and R&D projects)
Capital Investment Projects (Ex: Building a factory, Expanding existing facility)
External Projects
executing/undertaking Organization.
Customer Projects (Ex: Building a Cell Tower, building roads and Bridges etc)

7. Key Functions:
To carry out complex, unique, and high degree of risk
activities in a structured manner.
To monitor dates and schedules.
To monitor costs and revenues.
To Control of budget .
To trigger Billing schedules, cash flow plans.
Resource allocation and monitoring.
To monitor, track and control Project purchases.
To monitor the Project progress w.r.t. Cost, Time,
Revenue and % of completion.
Simulations and Flexible reporting
Introduction -

8. Introduction -
Comparison with Other Applications:
Flexibility of PS making its use more common
Flexibility to Operate Higher level with in the
Organization.
Flexibility in integrating with other external
applications.
PS has very tight integration with the FI/CO modules
FI/CO has a much broader usage on projects.
Flexible Reporting and Monitoring tools
Tight integration with new generation Project Management
tools

9. Introduction -
Project System Org. Structure Elements
The Project System has no organizational structures of its own. Various elements
already defined in Accounting and Logistics will be used in Projects. These
elements will be assigned to various Project Structure elements. Required
elements are:
Controlling Area
Business Area if defined
Company Code
Profit Centre
Plant
Currency
Technical Location/Equipment
Responsible Cost Center
Investment Program
Joint Venture
Jurisdiction Code
Purchase Organization
Purchase Group
Storage Location

10. Investment Project Process
Production Administration Maintenance
I M
Inv. Prog
Approval
Budgeting
Implementation
Retirement
Replacement
investment
Planning
Idea
Appropriation
Request
Investment
Measure
-
Business Planning
Settlement and
capitalization
Maintenance
and use
PS

11. Customer Project Process ( ETO)
Create Quotation
Create Sales Order
SD
Create Enquiry
Proj. Planning
Budgeting &
Approvals
Procurement
Settlement
Project Close
Proj. Creation
Proj. Execution
Delivery
PS
Billing & Invoicing

12. Customer Project Process - Construction
Create Project
Enquiry to Proj.
Create Enquiry
PS
.
. . .
.
.
.
.
.
. .
Standard WBS
Standard Network
Concept & Product
Development
Schedule Project
Vendor Quotations
Price Comparison
Make Or Buy
BuyMake
Assign Mat to Proj.
Proj. Simulation
Create PO
GR
Create Sale Order
Create Billing &
Invoice Plan
Release Project
Production Order
Execute Order
Confirm Order
GR for Order
Release Execution
Delivery & Billing
Project Close
PP MMSD

13. Integration Functions With Other Modules
-Sales promotion
Proj
-Sales Campaign
- ETO process
- Milestone Billing
- Stocks
- reservations
- Material issue
- Material Value
- Direct Capitalization
- Invoice receipt
- Revenue recognition
- Person Responsible
- Workflow
- Partner functions
- Confirmation with
personnel number
-Capitalisation
- Depreciation
- AuC
- Asset balances
- Financial Statements
- Purchasing
- Contract
- Goods receipt
- Invoice receipt
- Assembly
processing
- IM Program
- Position ID
- AR
- Budget Distribution
- Proj. Creation
- Internal Order
controlling
- Settlement
- Cost Centre
accounting
- Settlement CC
SD
MM
FI
CO IM
PP
MM
AM
HR
Project Systems
Project Structure
History
PS
- Order Creation
- Planning
- Budgeting
- Order Cost control
- AuC, Fixed Asset
P
M
.
. . .
.
.
.
.
.
. .

14. Lesson 0: Introduction
Lesson 1: Project Structures
Lesson 2: Project Planning
Lesson 3: Project Budgeting
Contents
Lesson 4: Scheduling & Execution
Table of contents
Lesson 5: Project Period End Closing
Lesson 6: Project Analysis & Reporting
Lesson 7: Other SAP Proj. Mgt. Tools

15. To carry end to end process of a project, the project goals must be defined and activities
to be carried out must be structured. A clearly defined structured project is the basis for
its planning, monitoring, control and success.
Project Structures
Depending on the type of project and the monitoring needs, projects in the Project System can be
structured using:
Work breakdown structure (WBS)
We can use either Operative Projects or Standard projects for structuring the Project. Standard
WBS and standard networks allow you to standardize and reuse structures and sequences of
events in a project.
Networks/Activities

16. Unit Contents
Work Breakdown Structure
Networks
Activities
Milestones
Standard Work Breakdown Structures
Standard Networks
Project Builder
Planning Board
Structure Planning
Project Structures

17. Work Breakdown Structure
WBS Elements
A work breakdown structure is a model of a project, and
shows the project activities to be carried out as a hierarchical
structure there by split the project into manageable units. You
can define WBS hierarchy based on:
Logic and Process oriented
Function Oriented
Object Oriented
WBS divides the project step-by-step into structure elements, these elements are called
work breakdown structure elements (WBS Elements). The various work packages in the
project are described in individual work breakdown structure elements (WBS elements).
You can further divide these elements at various levels until you reach the level of detail
you require.

18. Project Definitions
Work Breakdown Structures
WBS Elements
Project Definitions
Project Definition and Work Breakdown Structure

19. Structure of a Project
Project Definition
CP-0001
Cell Tower
WBS Element
CP-0001
CP-0001- 1
Engineering
CP-0001- 2
Procurement
CP-0001- 3
Erection
CP-0001- 4
Acceptance
CP-0001- 1 - 1
Civil
CP-0001- 1 - 2
Mechanical
CP-0001- 2 - 1
PSU
CP-0001- 2 - 2
Electronic
CP-0001-2 -3
Cabin
Work Breakdown
Structure
Cell tower Construction

20. Confirmation
Goods Issue
Resource usage
Basic Dates
Scheduled Dates
Actual Dates
Original Budget
Budget Updates
Release Budgets
Availability Control
Purchase Requisition
Purchase Order
Dates:
Budget:
Commitments:
Execution:
Planned Costs/Revenues
Actual costs/Revenue
Costs & Revenues:
Overheads
Settlement
Earned Value Analysis
Periodic Processing:
Breakdown Structures used for?

21. Work Breakdown Structure
Prerequisites for WBS creation:
Project profile
Project Coding mask
Project Definition
Data for WBS elements:
Basic Data
Project Responsibilities
Organization Data
Control Data
Documents
Project Summarization Data
Settlement Rules
Tax Depreciation Simulation Data
Assets Under Construction
Capital Investment Measures

22. Control
Field Key
Simulation
Status Profile
Validation
Substitution
Controlling
Object Class
Planner Profile
Budget Profile
Settlement Profile
investment Profile
Planning Board / Dates
WBS Scheduling
Planning Board Profile
Hierarchy Graphic
Network Profile
Capacity req Planning
Organization
Controlling Area
Company Code
Business Area
Profit center
Plant
Proj Currency
Project Profile
Project Profile

23. Project Coding Mask
Special Characters for Projects
Length
of
Coding
Length
control
Entry
Tool
Entry
Tool
Coded
Proj only
Auto
Number
Assignm
ent
Coding Mask
Lock
Operative
structure
Lock
Standard
structure
I
Key 0 = number
X= Alphanumerical

24. Project Definition
Project Definition
Project definition: It is a framework for a business undertaking with a fixed goal to achieve
with given resources. It contains dates and organizational information that are binding for the
entire project.
Project Definition Description
Person Responsible
Applicant number
Organization units
Dates

25. Data for WBS elements
12
3
4
5
6
1. Operative indicators
2. Responsibilities
3. Org. Assignments
4. Controlling Profiles
5. WBS Dates
6. User Fields

26. Project Creation Methods
Project Builder
Hierarchy Graphic
Incorporate
Copy
Manual
= Operative Structure
= Standard Structure
1 2
3
4

27. Project Creation
Using Project Builder
Current
project
Selected
Object
Overviews of
selected Object
Detailed screen for
Selected Object
Work List &
Templates

28. Templates and Work Breakdown Structures
XX-9999 CP-0001
CX- 9999-01 CX-9999-02 CP-0001-01
Template Operative
CP-0001-02

29. Start
Finish
Include
Template
1 1
1.01 1.02 1.01
Template Operative
1.02
Include Template

30. CRTD
CRTD CRTD
CRTD CRTD CRTD CRTD
PREL
PREL REL
CRTD REL REL REL
What is Status control used for?
To allow or Block 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.
System Status & User Status Control

31. System Status
SYSTEM STATUS
The following status are set by the system/user as the project progress through
different stages:
CRTD Created (Automatic)
REL Released (Manual)
LKD Locked (Manual)
UNLK Unlock (Manual)
BUDG Project Budgeted (Automatic)
AVAC Availability Control Activated (Automatic)

32. A status set by the user to complement the system status for a given status object. You can
use only a user status belonging to a status profile (defined in Customizing) and assigned to
the relevant status object.
User statuses enable you to extend the control of business processes managed by the
system status. You can set and delete user statuses manually when carrying out business
transactions.
WBS User Status
In the following steps you add the system status provided by SAP to your user status.
You can define a user status for:
Project_definitions
WBS elements
Network headers and network activities

33. Created (CRTD)
Use
Initial system status for new WBS elements
Allows project structuring, date and cost planning.
Allows Budgeting
Prerequisites
The superior WBS element MUST have status Created
Released (REL)
Use
Allows costs and revenues to be posted to the project
Passed onto lower level WBS elements
Prerequisites
Created must have been set
CREATED
RELEASED
System Status (1)

34. Technically Complete (TECO)
Use
For projects completed from a technical point of view.
Allows costs and revenues to be posted to the project.
Prerequisites
Created or Released must have been set.
Closed (CLSD)
Use
Prevents actual postings.
Prevents network creation.
Prerequisites
Released or Technically complete must have been set.
TECHNICALLY COMPLETE
FLAGGED FOR DELETION
CLOSED
Deletion Flag (DLFL)
Use
Objects are deleted logically, but not physically.
Prerequisites
Allowed if all costs have been settled completely.
Allowed if there are no reservations or commitments.
System Status (2)

35. Demo & Exercises
Menu path: Logistics Project System Project CJ20N
Project Builder
Transaction: CJ20N
Menu path: Logistics Project System Information System
Structures Individual Overviews WBS Elements
S_ALR_87015066 WBS Elements
Transaction: S_ALR_87015066
Menu path: SAP Customizing Implementation Guide Project
System Operative Structures Work Breakdown Structure
(WBS) Create Project Profile
Transaction: OPSA

36. Networks and Activities
Network / Activities
Networks
A network represents the flow of a project or of a task within a
project.
During the life of a project, networks are used as a basis for planning,
analyzing, controlling and monitoring schedules, dates and resources
(such as people, machines, materials, documents and drawings). You
can assign networks to a project.
A network is a special type of work order that has the same structure
as production orders, maintenance orders, and inspection orders in
the System.
Activities
Individual tasks in the project are mapped as activities in a network.
Activities having the following characteristics:
They have a duration.
They have a defined start and a defined finish.
Resources are needed to execute them.
They incur costs.

37. Milestone Trend analysis
Billing Milestones
Work
Dates, Capacities
Costs
Dates
Costs
Commitments
Payments
Dates
Costs
Commitments
Payments
Purchased Parts
Overheads
Settlement
Process Costs
Dates
Costs
Payments
Activities and Networks - Functions
Internal Activity:
External Activity /
Service:
Material:
Periodic Processing:
Costs Activity:
Milestones: April
7
May
June

38. A network consists of the following:
Activities
Activity elements
Relationships
Networks Structure (1)
Engineering 40 Design 50 Production 60 Assembly 70 Start Up
30 Procurement
10
20 Work
Scheduling
Activity Relation shipLegend

39. Networks Structure (2)
External
Service
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

40. Engineering Assembly
Activity Relation shipLegend
Sub Networks
Production Start Up
Settlement Rule
Profit Center
Other data
Sub Network
Network

41. Network Field Requirements
1
2
3
4
5
6
7
8
1. Network No and Description
2. Dates
3. Scheduling Parameters
4. Allocation (Header or Activity)
5. Assignment to Org Elements
6. MRP relevant control
7. Costing base from Profile
8. Purchase Requisition Control

42. Network Graphic Details
Activity
number
Control
key
Duration
Description
Earliest
finish
Latest
finishFloats
Relationship
Activity

43. Resource Planning
External
External Processing
Internal Processing
Labor requirements
Capacity requirements
Materials
Documents, PS Texts
Milestones
W
Documents Materials
Internal
PS Texts Milestones

44. Activities
Activity No
Control Key
Assignment
Work Related
Execution
factor
Execution
Constraints
assignments
External
Activity

45. Activity to which the
milestone is
assigned
Parameter for
Progress Analysis
Parameter for
planned date in
relation to activity
Manual
planned date
Unique Milestone
number
Milestone Data

46. Network Settings
Network
Network Types
Network Profile
Parameters for
Network Types
Settlement Profile
Status Profile
Number range
Planning Element
Classification Control
Planner Group
Procurement Indicator
Field Key
Graphic Profiles
Activity Parameters
External Activity
Internal Activity
Cost Activity
Service Activity
Settlement strategy
Release Strategy
Plan Cost Variant
Actual Cost Variant
Assignment type
PS-PP integration
Change Document control
Valid Receivers
Allocation Structure
Source Structure
PA transfer Structure
% of settlement
No of Distribution rules Allowed
Status number
Authorization Key
Business Transaction control
Stock Priority
PR for Network along with Resv.
Item Category
Change Profile Activity Change control
Activity Element Change Control
Component Change control
PRT change Control
Costing Types
Costing Variant
Cost Component Structure
Costing Variants to Network Types
Message Types
Network Assignment

47. WBS & Network comparison
WBS1
WBS1.1 WBS1.2
WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2
10
30
20
40 Network
WBS
Cost Control and Reporting
Reflects Ownership
Hierarchical Structuring
NETWORK
Work Control
Reflects Execution Process
Spread across Different WBS
elements

48. Activities Assignment to WBS Elements
WBS1
WBS1.1 WBS1.2
WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2
10
30
20
40 Network
Planning dates
Planning Costs
Settlement rules
Milestones
Billing Plans

49. Network Creation Methods
Project Builder
Network Structure
Graphic
= Operative Structure
= Standard Structure
2
Manual
1
Copy 3
Incorporate 4
Copy Project Incl. Activities
5

50. Network Creation
Click & Hold
Drop here
Result

51. Click & Hold
Drop here
Result
Activity Creation

52. Activity Element Creation
Click & Hold
Drop here
Result

53. Demo & Exercises
Menu path: Logistics Project System Project
CJ20N Project Builder
Transaction: CJ20N

54. Standard Structures
Be defining standard projects and networks you can standardize project management
referring back to data that has been derived from existing projects. Standardization is one
method of ensuring in the initial phase that projects are structured efficiently and
economically. A further advantage of standardizing project structures is that it makes the
processing of projects more transparent, enables the comparison of projects and
subsequently facilitates project controlling.
In the Project System there are several different standard structures that you can use as
templates to create operative structures.
Standard project definitions
Standard networks
Standard work breakdown structures
Standard milestones

55. Standard Structures (Cont..)
Standard project definitions
Neutral project definition, which can be used to create operative project definitions or
standard project definitions as templates. Project definitions are the frameworks of
projects and contains basic Organizational data i. e.
Controlling Area
Business area
Company code
Plant
Factory calendar
Standard networks
Project-neutral network structure, which can be used as a template when creating other
standard networks or operative networks. Creating operative networks by using standard
networks will save the time and increase the consistency of business process.
You can link standard networks with standard work breakdown structures in order to
create project templates, which contain both the project structure and the activities
assigned to the structure.

56. From Standard Networks
While creating operative network using standard
network, if the standard Network is linked to standard
WBS, system will create operative WBS as well.
1
From Sale order
2
Creating operative network from Sales Order using
standard Network, system will create operative Network
with activities as standard Network and materials from
sales order.
From milestone
3
Creating operative Milestone from
standard milestone system will create
operative network from Standard Network
which is attached to standard Milestone.
= Operative Structure
= Standard Structure
= Direct Assignment
= indirect Assignment
Standard Structures (Cont..)

57. Standard work breakdown structures
Neutral work breakdown structure that can be used more than once and serves as a
template for creating operative work breakdown structures
From Standard WBS
While creating operative WBS from standard WBS,
if WBS is linked with standard network, system
will not create operative network
2WBS From Standard Networks
While creating operative network using standard
network, if the standard Network is linked to standard
WBS, system will create operative WBS as well.
1
Standard milestones
Standard milestones are used for creating milestones and other standard milestones.
You can combine different standard Milestones in a milestone group.
From milestone
3
Standard Structures (Cont..)

58. The Project Builder is a user-friendly method of accessing the Project System, which
enables you to edit your projects quickly and efficiently.
It gives the option of Context sensitive menus, Drag & Drop, and the capability to define
your own worklist and templates pool.
Use:
Create, change or display all project structure data in one transaction
Graphic views (hierarchy and network graphic)
Project planning board with all its overviews (capacity, costs, component, and
maintenance order overviews)
Can define a user-specific worklist and a user-specific templates pool
Can make user-specific changes to the settings
Project Builder

59. Project Builder
Structure
Tree
Worklist and
Templates
Work Area
Selected Project
& Project Tree
Worklists &
templates
Proj. Definition
and Structure
Work Area

60. Worklists and Templates

61. Planning Board
Entry Area
Worklist Preview Of
last Project
Gantt Chart
Over view buttons
WBS structure
Templates & individual
objects

62. Hierarchy Graphic
Gantt Chart
Network Graphic
Business Graphic
Graphics of Planning Board

63. Structure Planning
Structure planning will be used if you have a more precise idea of the structure of the project.
Using structure planning you can enter WBS elements and Activities together. Structure
planning is having two views i.e.
WBS elements
Network activities
Use:
Create Projects and activities
Maintain already created projects
Analysis
Capacity leveling
Cost overviews as for activities

64. Structure Planning (Cont..)
WBS element View
Network View

65. Demo & Exercises
Menu path: Logistics Project System Project
CJ20N Project Builder
Transaction: CJ20N
Menu path: Logistics Project System Project
CJ27 Project Planning Board
Transaction: CJ27, CJ2B and CJ2C
Menu path: Logistics Project System Project
Special Maintenance Functions CJ2D
Structure Planning
Transaction: CJ2D, CJ20 and CJ2A

66. Lesson Summary
Project Header
WBS structure
Networks
Sub networks
Activities
Activity Elements
Standard structures
Standard Networks
Standard milestones
Project builder
Project Planning Board
Network Graphic
Project coding mask
Project profiles

67. Reference links
1. http://help.sap.com/saphelp_46c/helpdata/en/04/926eae46f3
11d189470000e829fbbd/frameset.htm