Explore topic-wise InterviewSolutions in .

Technical Reports −

Project Information System in SAP PS allows to manage and control your project technically.

This allows you to select all the objects or particular objects in the system- WBS, Networks, PS texts and material etc. to check their present status and their use in project network hierarchy. This allows you to see the status of project based on different objects.

Using Project Information System, you can monitor the data elated to current project as well as data in archive to see historical data and lesson learnt.

You can enter the values in filters to create structure list which can be used to view graphics or to move data to different project management tools.

Commercial Reports −

You can view various commercial reports related to project progress in SAP PS system:

Cost Element Report to view cost and revenues to summarize line items.

To monitor full value flow in the project, you can use Cost/Revenue and Payment hierarchy reports. Payment hierarchy reports contains data related to drill down.

To display actual, plan, commitment and budget values you can use Line Item Reports.

There are different project versions types available in Project System −

Project Versions −

To compare project status at specific time period.

Plan Versions −

This is sued to store different cost plans for a project.

Selection Versions −

This is used to perform background processing and to save the project data matching certain selection criteria.

Simulation Versions −

In below table, you can see the different features in a project that above versions supports in SAP system.

In SAP system, version is defined as state of a project at certain point in time. Project versions are used in Earned value analysis and for project evaluation.

Functions −

A Project version can be used for the following purpose:

• To perform the statistical evaluation

• To document the state of project

• To perform comparison and analysis of project progress

• To perform milestone trend analysis to analyze the dates in a project and comparing them with planned data in the project.

Basic Scheduling −

It only calculates basic dates for orders in MRP run and in house production time for material master in use.

Lead time Scheduling −

In this MRP, production dates are defined by lead time scheduling for planned orders.

MRP parameters are required to run material requirement planning to meet Planned Independent Requirement PIR and to use Routing information. Different MRP parameters can be used −

Processing Key −

NetChange −

In this run system consider those material which has undergone some changes from the previous MRP run.

NetChange in planning horizon −

This run considers the requirement in predefined planning horizon and not like net change which check the future requirements.

In this run, system consider only those material which has undergone some changes from their last MRP run.

Regenerative Planning −

In this run, system consider all the material irrespective of changes and it is time consuming and not common in Production planning.

MRP run or planning run is an engine which is used to fill demand and supply gap. Issues & Receipts are called MRP Elements. Issues include PIRs, Dependent Requirements, Order Reservations, Sales Orders, Issuing Stock Transfer Orders, etc. and receipts include Production Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving Stock Transfer Order, Schedule lines, etc.

This component is used to plan and manage material requirement in project and to manage the material flow in the project. Material requirement planning in project comes from Material management and Production Planning and Control.

• Backward
• Backward in time
• Current Date
• Forward Date, etc.

In SAP Project system, you can schedule a project or part of the project with all the activities that are assigned to project. You use WBS element basic dates as basic dates to schedule the activities.

When a network contains few activities that are not assigned to same WBS they are treated as external networks in system in project scheduling.

To define parameters for WBS scheduling, you can use T-code: OPTQ or you can navigate to SPRO → IMG → Project System → Dates → Data Planning in WBS → Define Parameter for WBS Scheduling

This component in Project system is used to plan and check dates in project. The use of date scheduling is to determine phases in a project and duration of the phases, critical paths and events in project schedule.

In Work breakdown structures WBS and Network, you enter the dates and these dates can be changed during full project lifecycle.

You use Availability Control by defining tolerance limits, which will allow you to define by how much you can overspend.

In SAP Project system, you can use following planning methods −

Manual Revenue Planning −

You can perform manual revenue planning based on Work breakdown structure or by revenue element.

Automatic update Revenue plan −

You can perform automatic update of revenue planning based on Work breakdown structure or in sales order.

SAP PS: Budget Management for Projects

Budget is defined as approved cost for a project and it is different from the cost plan. Budget is approved cost from management for expected development of order cost for a given time period.

A Costing variants contains the following components −

Costing type −

Costing type is used to define the object- like a network, or a project for which you have to create the costing.

Valuation variant −

In SAP system, you use valuation variant to maintain valuation bases for materials and activity types managed in the costing.

In SAP PS, you use Cost component to plan, monitor, and control project cost for projects. This component is integrated with different components in SAP ERP system −

• Finance Accounting and Controlling
• Production Planning
• Material Management

To create an access control list, navigate to PS object for which you want to assign authorizations.

• Go to ACL tab page.
• Select insert line button to enter the new data.
• Click on save button to save the entry.

The user gets change authorization in this scenario.

Authorization can be assigned for following PS objects −

• Project
• Work Breakdown structure
• Network
• Activity
• Activity Element

In SAP Project system, you use access control list to assign authorizations for specific Project system objects. Access control list function should be activated in project profile or network profile.

Evaluation period is the period in which you want to control your project, and it will be displayed in your planning board.

Transactions is OPTY

In SAP Project System, you can define the person responsible for Work Center. To define a person responsible you need to enter person responsible Id and descriptive name of person responsible for managing work center.

To specify a person responsible for work center, navigate to below path in SAP Easy access.

SPRO → IMG → Project System → Structures → Operative structure → Network → Work Center → Specify person responsible for work center.

This profile is part of the "Planning Board Profile" and it determines the beginning and the end of the evaluation and planning periods. This means that pre evaluation and post evaluation periods are defined automatically. This is how the Planning Board is displayed graphically.

In SAP PS system, a network type is used to contain the information for controlling and managing networks. Network is defined as work order that has a structure in common with production, maintenance and inspection orders.

You can create network profile in SAP PS to maintain Network and WBS structure and to define rules for linking networks.

In a project, you collect cost and revenues temporarily and they have to settle as part of period end processing. You need a settlement profile stored in project profile or network type which determines whether settlement is required, allowed or blocked.

You use the settlement profile to define the following for actual costs −

• Full Settlement
• Can be settled
• Not to be settled

You must maintain below information under project profile section −

• Basic data
• Time scheduling
• Costs/revenues/finances
• Organizational data

A Project profile is defined to maintain default values and control parameters like planning methods for costs. The information entered in project profile is copied to project in project definition or also in the project elements. These information can be changed at later stage.

WBS and Networks are two structures that differ in the way in which they enable you to structure projects and in the functions provided for them in the SAP system. For example, if you need a hierarchical budget management function for a project, you would want to use a WBS structure. If, in addition, you also want to do capacity planning, you would have to use one or several networks as well. Depending on the specific requirements you may be able to map a project only via a WBS structure, or by using only one or several networks, or a combination of both.

There are several parameters to define in here at the structures level. First is the Project Definition (Proj. Profile), then we have the WBS Level, and then, if used, the Network/Activity/Subactivity Level. You may include components and services. The configuration goes into Proj. Definition, WBS and Activity profiles.

A Selection profile in SAP Project system is used when you have large number of selection objects repeatedly with same selection condition. Selection condition are used using top down approach.

A status profile contains the individual user statuses and the business transaction rules defined for those statuses. You can define multiple limit number of user status profiles that can be maintained in SAP system.

A Project type is used to group or classify the projects as required- Example: Banking projects Capital projects or IT development projects.

A Project type is also used for reporting, building authorization and for creating hierarchies and network in project planning. It can also be used for developing customer requirements e.g. use of BADI for WBS settlement rule determination based on project type as a parameter.

• Projects has a defined goal which is agreed between company and customer and is defined in Project Charter.

• A Project is complex, unique, and definitive in scope and involves a high certain risk to execute and complete on time.

• Project has defined quality requirements.

• Project has definitive cost, duration and resources to work on the project.

A Project is defined as a temporary endeavor to create a product or to provide a service.

In SAP PS system, you can manage all the currency dependent data in the Project System using below different currencies.

Controlling area currency −

In this currency type, you define work breakdown structure WBS, networks, activities, and orders in one controlling area.

As same controlling area is used, currency in a project system is also uniform.

Object Currency −

In Project system, it is also possible to assign any object currency to different objects in the system.

• WBS element
• Project definition
• Network header
• Network activity

Note that when a company code is assigned to a controlling area and company code contains multiple currencies in this case you can’t allocate object currency in PS as in this case system automatically takes the local currency of company code.

Transaction Currency −

In this case, you use the costs and revenues from different business transactions are recorded as per currency of the business transaction.

Plant is an organizational unit within a company where activities take place. A plant will produce goods and makes goods available for the company.

Controlling Area in an organization is defined as an organizational structure and is cost accounting, Cost centers, profit centers are used to define the Controlling area.

You can use these business areas if other company codes require the same areas.

It is easy to configure if you use Business Area as you just need to attach to the company code and the other details in business area will get attach itself.

By using Business areas in controlling, you can create Profit and loss statement, Balance sheet, etc. for business areas so this is used for management accounting in few companies.

Note − Business areas are more used in Controlling as compare to Finance Accounting.

Business Arears are used to differentiate transactions that comes from different line of business in a company.

Example −

There is a big company XYZ, which runs multiple business. Let us say it has 3 different domains like manufacturing, marketing and sales.

Now you have 2 options −

• First is to create different company codes
• And other better option is to create each of these business lines into business areas.

Company code is smallest unit in an organization for which financial statements (profit-loss statement, etc.) can be generated.

When a project is initiated, it starts with the definition and classification of the project structure which is required to align it with the existing enterprise structure in an organization.

Project System has no organizational structures of its own and we have to incorporate the structure to enterprise structure by assigning organization elements in different ERP R/3 modules. These organization elements allow Project system to maintain and get the data correctly.

An Organization structure consists of various elements that has to be created as part of structuring of project. Following are the organization elements −

• Company Code
• Business Area
• Controlling Area
• Plant

To perform activities like material requirement planning MRP, Bills of material BOM, material requisition as per MRP, capacity planning and other production planning tasks in project lifecycle.

To manage the sales process in project lifecycle- includes quotations for customer projects. This includes billing, selling and shipping of goods and services required in project lifecycle.

To manage procurement and inventory functions occurring in project lifecycle.

To plan the costs and revenue in the project system as per the financial planning requirements.

Below are the key steps involved in Project process flow −

• Create Templates/WBS
• Create Project
• Project Planning
• Budgeting and Release
• Project Implementation
• Project Completion

In Project System, Work Breakdown structure WBS and network diagram can be used to structure the project either in hierarchical order or using network techniques. You can define key milestones and documents that allows you to monitor the progress of project and helps you to define key interest of individuals.

You can categorize projects according to the list of activities and project structure or on the basis of individual activities −

• Using Work break down structure WBS
• Using individual activities as per work packages

External Financed Projects −

This includes the projects which are sponsored by clients and are executed to meet the client requirements. These projects are called customer projects and project goal is aligned to meet the customer demand.

Internal Financed Projects −

This includes project related to capital investment or overhead cost projects.

Project system is closely integrated with other SAP modules like logistics, material management, Sales and Distribution, Plant Maintenance, and Production planning module.