Overview of Project Structure:

Work breakdown structure

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Work breakdown structures enable you to map the structure of a project in the SAP system.
This is done via work breakdown structure (WBS) elements that are located at different
levels and structure the project hierarchically.
Advantage of a hierarchical structure is that within the structure, data can be inherited or
distributed in the top-down direction and it can be aggregated or summarized in the
bottom-up direction.
You can use WBS elements to structure your projects based on phases, functions, or
organizational aspects at the individual level.
Functions of work breakdown structures

The following list provides an overview of important functions of work breakdown structures in
the SAP system:
Planning and entering dates
Cost planning and account assignment of documents
Planning and invoicing revenues
Planning and monitoring payment flows
Hierarchical budget management
Material stock management
Various period-end closing tasks
Monitoring a project's progress
Aggregated data analysis
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Work breakdown structures that are not assigned to networks are typically used to map
projects that focus on controlling aspects and therefore require fewer logistical functions.
These kinds of projects usually involve overhead cost or investment projects.

Network
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You can use one or several networks to map the flow of a project or of parts of a project in
the SAP system. To do this, you need networks that are linked to each other via
relationships.
The relationship between two activities defines the logical sequence of the activities
(predecessor-successor relationship) and their time-based interdependencies.
You can also map project flows across different networks by linking activities of different
networks to each other.
Advantage of the network technique is that SAP systems can automatically determine
planned dates for each activity and the entire network on the basis of the duration of
individual activities and their chronological sequence.
Functions of networks
The following list provides an overview of important functions of networks in the SAP
system:
Scheduling
Resource planning
Confirmation of work
External procurement of services
Material requirements planning, procurement, and delivery
Network costing
Various period-end closing tasks
Monitoring a project's progress

Work breakdown structures and networks

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To utilize the functions and benefits of work breakdown structures and networks at the
same time, you can assign network activities to WBS elements.
Once you have assigned activities to WBS elements, you can exchange data between the
work breakdown structure and the activities.
For example, activities can inherit statuses from the WBS elements they are assigned to.
Conversely, you can total up project activity dates to the WBS elements, or check funds
allotted to activities against the budget of the WBS elements. In reporting, you can obtain
an aggregated analysis of the data of assigned activities at the level of WBS elements.

Operative and standard structures, versions

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In general, the structures available in SAP Project System are divided into operative
structures ((work breakdown structure and network) that is, for operational project
management), standard structures ((standard work breakdown structure and standard
network) the standard structures merely serve as templates for the creation of
operative structures or of parts of those structures), and versions ((project version and
simulation version) Versions can be used to record the status of a project at a specific
point in time or at a certain stage in the system. In addition, you can use versions to
test changes that are implemented retroactively before including them in your operative
project.).

Work Breakdown Structure

Structure and Master Data
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Each work breakdown structure is based on a project definition that serves as a

framework for the project and contains parameters that control the properties of the
entire project.
WBS elements that actually contain the cost, revenue, budget, and scheduling data.
The project definition is not a separate controlling object in the SAP system.

Project Definition

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You must first create a project definition. Some processes require you to first create a
WBS element. The project definition is then created automatically when you save the
WBS element.
During the creation process you must specify a unique identification for the project
definition, which may consist of a maximum of 24 characters.
You can control the structure of the identification via coding masks.
You must specify a start or end date for your projects; otherwise, the system will
propose using the current date.
Project Profile-When creating the project definition, you must always specify a project
profile. The project profile contains control data and default values for the project. You
cannot change the project profile of a project at a later stage.
Organizational Aspects-You must assign your project to a controlling area at the project
definition level. The assignment to a controlling area is mandatory. It can be proposed
via the project profile and cannot be changed after you have saved your project for the
first time.
The assignment of a project to a controlling area via the project definition is unique.
Company Code- Company Code is also mandatory; the entries you store in the project
definition are merely default values for the WBS elements. Therefore, the assignment
to a company code can be changed for each individual WBS element.

Project Currency - All currency-based data of your projects is managed in three

different currenciesthe controlling area currency, the transaction currency (that
is, the currency of the respective business transactions), and the project or object
currency if this is explicitly permitted for the controlling area. You can choose the
object currency for each WBS element separately, provided you use only one
company code in your controlling area. If you cover several company codes in
cost accounting, the object currency is automatically derived from the local
currency of each company code and cannot be changed manually.

10. Sales Pricing-The Sales pricing fields are only relevant if you want to carry out sales
pricing exclusively on the basis of your project data.
11. The assignments to other organizational units within FI (business area, profit

center) and logistics (plant, location) that you can enter in the project definition
serve as default values for the WBS elements of the project.
12. Project Stock- Another important setting to be made at the project definition level
involves the project stock indicators. However, you should note that you can no longer

modify the settings as to whether you want to allow a valuated project stock once you
have saved the project definition.
WBS Elements
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WBS element also contains a unique external identification that consists of a maximum
of 24 characters and can be controlled through a coding mask. A WBS element can
have the same identification as the project definition. Internally, the system assigns
another unique number to the WBS element, which allows you to modify the external
identification at a later stage. However, you cannot modify the external identification at
a later point in time if you have distributed the work breakdown structure to other
systems via Application Link Enabling (ALE), or if the status of a WBS element does not
allow for a modification.
Organization Assignment2.1.In an international project, you can store different company codes in different WBS
elements. However, all of these company codes must be assigned to the controlling
area you have specified in the project definition.
2.2 Most of the organizational units can be proposed using the project profile or project
definition and, if required, you can modify each WBS element separately.
Organizational assignment - The company code, object currency, object class, andif

business area accounting is carried outeven the business area are mandatory
fields at the level of WBS elements and can no longer be modified once the
planned or actual values have been entered.
Operational indicators
4.1 Planning Element -1. WBS elements you want to plan costs for manually must

be marked as planning elements.

2. If you use the appropriate settings in the planning profile of the
project, you can even ensure that manual cost planning on a WBS
element is only possible if this indicator is set.
3. Creating planned costs by rolling up planned values of subordinate
WBS elements or orders is possible, regardless of the Planning Element
indicator.
4.2 Account Assignment Element 1. indicator determines whether you can assign
orders to the WBS element (in particular, activities and networks).
2. It also controls whether you can assign any documents to the WBS
element that result in actual or commitment postings to the WBS
element.
3. If you dont set this indicator for a WBS element, for example, you
cannot assign a purchase requisition or invoice to this WBS element.
4.3 Billing elements 1. If you want to base revenue planning on a WBS element and
post actual revenues to the WBS element at a later stage, you must mark the WBS
element as a billing element.
5. Statistical Indicator - the actual costs are only updated statistically for this WBS
element under value type 11 (Statistical Actual) instead of value type 4 (Actual). This
means that when you assign documents to a statistical WBS element, you must
specify the WBS element as an account assignment recipient and a "real" account
assignment object that serves as a recipient of actual costs.