SAP PS Training

SAP PS Introduction:

Project Management / Project System

● Project types & PS

● Planning Types

● Project Vs Project System

● Integration with Other modules

Structures

● Work Breakdown Structure (WBS)

● Network

● Activities

● Relationships

● Sub networks

● Milestones

● Standard structures

● Project Builder

● Project planning board

● Structure Planning

● Mass Change

● Status Management

Dates

● Types of Dates

● Settings for Scheduling Parameters

● Presentation of Dates in the Graphics

● Scheduling Functions

● Dates in the Work Breakdown Structure (WBS)

● Scheduling the Work Breakdown Structure

● Network Scheduling

● Scheduling the Overall Network

● Overall Network Scheduling with Selection Option

● Scheduling with Service/Maintenance Orders

Costs

● Cost Planning

● Orders for Projects

● Project Cost Forecast

● Budget Management for Projects

● Availability Control

● Commitments Management (CO)

● Funds Commitment (Cost Centers, Internal Orders, Projects)

● Automatic and Periodic AllocationsRevenues and Earnings

● Billing Plans in WBS Elements

● Project-Related Incoming Orders

● Transfer Prices for Projects

● Sales Pricing and Quotation Creation

● Resource-Related Billing

● CPR and Valuation of Semi-Finished Constructions

Payments

● Project Cash Management

● Manual Payment Planning

● Calculating the Payment Flow Automatically

● Recording Actual and Commitment Payment Data

Resources

● Capacity Leveling in the Project System

● Executing Capacity Leveling (PS)

● Workforce Planning

Materials

● Procurement Management

● Material Assignment to Networks

● Activating Requirements

● Material Availability Check

● Activating Requirements

● Material Assignment to Standard Networks

● Project Stock

● Grouping for Individual Project Planning

● Bill of Material Transfer

● Delivery from Projects

● Monitoring Dates

● Assembly Processing in the Project System

● Project-Oriented Procurement (ProMan)

Production Resources/Tools (PRT)

● PRT – Detail Study

● Production Resource/Tool (PRT) Availability Check

Confirmation

● Confirmation Directly in the Project System

● PS-CON

● PDC

Simulation

● Creating Simulation Versions

● Transfer of Operative Data and Simulation Data

● Evaluating Simulation Versions

Versions

● Project Version – detail

SAP PS Introduction:

Project Management / Project System

● Project types & PS

Create a project:

Scenario

To edit a complete project planning process, you will take different roles in GBI, e.g. Production
Supervisor and Cost Accountant. Overall, you will be working in the Project Management (PS) and
Financial Accounting (FI) departments.

Employees involved

 Jun Lee ( Production Supervisor)

 Jermain Kumins (Shop Floor Worker 1)
 Silvia Cassano (Accounts Payable Specialist)
 Jamie Shamblin (Cost Accountant)

At the beginn of your project you assign WBS elements, activities and milestones at Project Builder. Also
you assingn milestones to your project. In the last few steps, you create creditor invoice for you business
partner, which acts as an intermediary for the test driver and you have to pay for the entire project.
Process description

Fig Process description

How to Create Project

Task Create a new project.

Short Description Use the SAP Easy Access Menu to create a new project.

Name (Position) Jun Lee

This is the Project structure of cost project P/20##, which consists of WBS elements, activities, and
milestones.

We will use the project builder to create a project ”Development of Ultralight Bike”. The project
consists of a work breakdown structure and network activities.
To create a project, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Confirm the popup ”Project Builder: Options” using the enter icon.
In the popup ”Project Builder: User-specific options” enter for Hierarchy levels 99 and select Preview last

project. Leave other fields as they are. Confirm your entries by using the continue icon.

To create the project P/2###, select Create and choose Project.

In the screen Project builder enter in the field Project Def. P/2###.

Remember to replace ### with your three-digit number, e.g. 003 if your number is 003. For Text
(unlabeled) enter Development of Ultralight Bike ### and select in Project Profile Cost projects (US).

Confirm your entries by using the continue icon.

Click on the WBS Element Overview icon to create new WBS elements.

Fill in the following data in the Project Builder screen.

Please notice that the system will deduce the project number from the entry. Special characters such as
double quotes can be configured in the SAP customizing menu.

Confirm your entries by using the continue icon.

Operative indicators such as the above (”PE” and ”Acct”) control, whether the WBS elements can be
used for cost planning and cost ac- count purposes.

Remark the hierarchy graphic can be used to edit the project as well. Please note, that the derivation of
WBS element structure has determined the hierarchy from the number of the WBS elements. Naturally
this works only for numbers, which reflect a hierarchical order and are customized by a so called number
mask.

Confirm your entries by using the continue icon.

To derive the WBS structure drm the number of the WBS elements choose in the pull down menu
Project → Derive structure → Execute .

Go to the tab Responsibilities to assign responsible cost centers to all WBS elements.
Assign responsible cost centers to all WBS elements. Therefore select the Tab Responsibilities and enter
the following data.

Confirm your entries by using the continue icon.

Use the hierarchy graphic to display your project structure.

Use the ”Hierarchy graphic” icon.

The hierarchy graphic can be used to edit the project as well. Please note, that the derivation of WBS
element structure has determined the hierarchy from the number of the WBS elements. Naturally this
works only for numbers, which reflect a hierarchical order and are customized by a so called number
mask.

Confirm your entries by using the continue icon.

To return to the Project Builder use the Back icon. Save your project with

Return to the Easy Access Menu by using the Back icon.

Change the Project

Task Change the project.

Short Description Use the SAP Easy Access Menu to change the project form the task above.

Name (Position) Jermain Kumins

The project P/20## will be enhanced by network activities (thereby detailing the information of the WBS
elements). Activities describe the process flow of the project. You can plan dates, resources and costs
through network activities as well.
To change a project, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Double click at . In the Open Project screen enter in Project Definition P/2### and choose .

Use the Overview icon. Choose the Activity Overview icon.

Enter the following data:

Confirm your entries by pressing Enter or pressing .Activity type LABOR is not set up for cost center
NA00 NAPC1000 in the year 06/11/2012.

In the Branch to the activity overview of external activities create more activities. To do so use the Ext
Processing tab. In the Activity field enter 0045 and activate the Service Field and enter Outsourcing
electronic gear in Description. Confirm your entries by pressing Enter. In the Service Specification: Ext.
Specs f. Task List Maintain screen enter in the first line 10, in the field short text Engineering, choose for
Quant. 1, for Unit EA and in Gross price 2000. In the second line enter 20, for the short text enter Ext.
production, choose 1 for Quant., EA for Unit and enter by Gross price 3000.
Confirm your entries with Enter or .

Go back to the Project Builder: Project P/2### screen by pressing once

On the Prim. Costs Tab enter f or Activity 0135, enter Performance test by professional drivers in
Description, for Amount 10000 and 741000 for Cost elem.

Confirm your entries, by pressing Enter. Use the Save icon to save your entries, confirm any

messages. Return to the Easy Access Menu by using the Back icon.

● Planning Types

● Project Vs Project System

● Integration with Other modules

Structural Elements

A project cannot exist without a structure. At a minimum, you need a Project Definition plus at
least one WBS. These two elements are what make up the basis of a project. Extending your project to
include Networks makes it more complex and usually means you need scheduling and complex material
handling. However, some implementations only use WBSs to plan and capture costs. In all cases, it is
wise (though not mandatory) to have a method by which your WBS structure is recognized by its various
levels—hence Coding Masks.

Depending on the implementation, a mask that carries intelligence (that is, it contains numbers
and letters that mean something to the business) may not be the best approach, as often the coding
becomes redundant over time.

Project Definition: What a Project’s Defaults Are

When a project is created for the first time, all settings from the Project Profile are copied into
the Project Definition:

• It cannot Plan Costs or Revenues.

• It cannot have Costs or Revenues posted to it.

• It is the “Header” of the Project.

• There can only be one Project Definition for a project.

• Subsequently created WBS Elements will always inherit key organizational and profile data from the
Project Definition (but these can be changed manually)

Coding Masks: How Project Numbers Are Coded

Coding Masks are important as follows if you need to have some intelligence in the way your
Project Definition and WBS Elements appear to the user:

1. There can be many.

2. They can reflect the structure of a project.
3. They can control project identification.
4. They only relate to Project Definitions and WBS Elements.
5. They determine what special characters are permitted to separate the structure view.
6. They are not connected to Profiles—the “Project ID” used in Operative or Template
7. projects determines the mask.
8. Different Masks can be used with one or many Project Profiles.

Project Profiles: How a Project Should Behave—What It’s Allowed to Do

A Project Profile is mandatory when creating a project:

1. There can only be one per project.

2. They contain the control parameters used in a project: Business rules, organizational settings,
and so on.
3. They influence a project’s behaviour by providing default information.

They carry “subprofiles” that further influence a project:

1. Version Profile
2. Planning Profile
3. Budget Profile
4. Investment Profile
5. Status Profile
6. Simulation Profile
7. Network Profile and so on.

Work Breakdown Structure Elements: The Hierarchical Structure

A Work Breakdown Structure represents the structural relationship that work elements of a project have
with each other:

1. It is a model of the work to be performed in a project in a hierarchical structure.

2. It forms the basis for organization and coordination in a project.
3. It carries the dates associated with a package of work.
 4. Work Breakdown Structures can be represented in a variety of ways:
5. Logic-Oriented according to PHASE (Plan, Define, Acquire, and so on).
6. Function-Oriented according to FUNCTION (Engineer, Construct, Commission,
7. Support, and so on).
8. Object-Oriented according to PHYSICAL objects (Asset, Asset components, and so on).
9. WBS Elements can have costs planned and posted to them.
10. WBS Elements can have revenues planned and posted to them.
11. WBS Elements can have a controlled Budget.

Network

1. How to Carry Out Tasks in a Specific Way, Order, and Time Period

Networks are used to provide for scheduling of Activities in a project:

• Unlike WBS Elements (which can only be connected in a linear fashion), Network

Activities can be connected to one another using special dependencies called “Start/

Finish” rules.

• Networks have a three-tier structure:

• Network Header

• Network Activity

• Activity Element

• Networks are identified by a unique number.

• Network Activities are identified by their owning Network Number plus a

sequential number. Activity Elements are identified by a further sequential number.

• Networks are not “effective” until they are Released.

2. What Materials and Resources Are Needed to Carry Out a Task

Network Activities can perform a number of complex tasks:

• Plan/Receive Costs.

• Order/Reserve Materials and Services.

• Book Resources.

• Schedule tasks.
 • There are three types of Activity, plus special settings for Service:

• Internal—for planning Internal resources such as labour

• External—for planning externally procured Services or Contracts

• General Cost—for planning by Cost Element

• Service—for planning Services (for example, Contractors)

• Activity Types are attached to Networks by using Control Keys.

• Subnetworks are other types of Orders (such as Maintenance or CS Orders) that

have been manually assigned to a WBS or Network.

3. Internal Activities—Planning Internal Resources

• Internal Activities are defined by Control Keys. Usually, they utilize two objects to

make them effective:

• Work Center—for Capacity Planning

• Activity Type—for pricing of resources

• Work Centers are independently managed objects. They can be an individual, a

group of people, or a piece of equipment. They exist to help manage “Capacities”

and to carry all the information required to determine available Capacities and to

provide for Capacity levelling.

• Activity Types are independently managed objects. They belong to Cost Centers.

They are attached to a “Pricing Schedule,” meaning they have a planned cost per

unit (which can be a standard Unit of Measure).

• When Work Centers and Activity Types are used in conjunction, they effectively

“Plan the Resource” and “Plan the Cost” at the same time.

• Costs associated with a Network Activity aggregate to the WBS to which they are

assigned.

• Internal Activities can have attached a set of Components or BOMs (Bills of Materials)
4. External Activities—Planning External Resources

External Activities are the basis for externally procured resources including Services and
Contracts. They are defined by Control Keys.

• External Activities can have attached a set of Components (Materials) or BOMs

(Bills of Materials).

• Costs associated with an External Activity aggregate to the WBS to which they are

assigned.

• When “Released,” External Activities trigger events:

• A Purchase Requisition if the Material Component is “Non-stock” (becomes a

commitment).

• A Reservation if the Material Component is “Stock” (Assigned Cost).

• A Reservation is cancelled when a Network Activity is “Technically Closed.”

• A Purchase Requisition/Order remains open when a Network Activity is

“Technically Closed.”

• Some External Activities are “Services.” Services are regarded as being consumed at the time
of their performance. They cannot be stored or transported, for example, construction work,
cleaning services, legal services.

• They can have a preliminary Total Planned Cost that is reduced as and when Material
Components are added.

5. General Cost Activities—Planning Unspecified Costs

General Cost Activities are the simplest form of Costing in Networks. They are defined by

Control Keys:

• They carry an Amount in the currency selected.

Configure Currencies in SAP

To Configure currencies the currency table must have entries for all currencies which occur
in your business transactions. In the SAP standard recipient system, all currencies are defined
according to the international ISO standard. SAP recommends that you use the ISO standard for
your additional entries. If your entries do not correspond to the ISO standard, you will not be able to
use data exchange in international communication (e.g. bank clearing transactions).
Remember the following in mind while configuring currencies in SAP

 Check the currency entries for completeness.

 Add the missing currency entries as required.
 Use the ISO standard for your additional entries.
The transaction to access this directly is 0Y03

• They require a Cost Element to determine what type of cost is being planned.

• They can have attached a set of Components or BOMs (Bills of Materials).

• In themselves, they do not generate any Purchasing Documents. However, if Material

Components are attached, they will.

Personalising the F4 Values

In SAP, Many times when we press F4 value all the records are displayed out of which most
them are not of much use. Hence it is possible to restrict the values to show only the ones which a
user needs by using the Personal value list. This is a very nice and simple option which can
definitely make you work smarter and it can get your favorite values easily.

6. Material Components—Planning Materials

Material Components represent the physical materials you need to plan for within an Activity:

• Components can be added to any Activity.

• There is no restriction on how many Materials you have.

• They form the basis of all your Project Procurement (unless you are using Easy Cost Planning).

• They carry the methods by which MRP will order Materials.

• They can be Stock or Non-stock.

• Each Material Component can trigger a Reservation/Requisition.

• They form the basis of Material Project Cost Planning.

• All Material Components belong to one Activity at a time.

● Activities

● Relationships

● Sub networks

Milestones: Things a Project Must Remember to Do

Milestones carry dates and functions that can be triggered in the future:

• They can be attached to a WBS or a Network (with slightly different functionality).

• In their simplest form, Milestones can just be reminder dates.

• In their most complex form, Milestones can be used for:

• Automatic triggering of Customer Billing (by Percentage or Amount).

 • Preset Customer Billing Plan (by set amount).

• Automatic triggering of subsequent events, such as the Releasing of a related Network

Activity.

• Milestones can trigger a Workflow message to remind the receiver of an event.

• Milestones form the basis of SAP’s “Milestone Trend Analysis” reporting function.

• When Assembly Processing is used to create auto-projects, and Milestones exist in

the Standard Networks, the Sales Order Billing Plan is automatically created.

• Billing is sensitive to the Date Categories configured in Milestones:

• By Percentage

• By Amount

Customization: OPSR, O

● Standard structures

● Project Builder

Templates: How a Project Should Look

A template is a neutral structure that can be used to standardize WBS structures, Networks, and
Milestones:

1. Templates are Master Data.

2. You can have many templates to reflect different project scenarios.
3. Project and Network Templates contain a Project or Network Profile.
4. Templates can contain inherent business rules.
5. Templates are not mandatory (unless you are using Assembly Processing), but if you have
common, complex structures, they help maintain consistency.
6. Operative Projects and their Networks can be used as templates, but are prone to inheriting
errors in structure.
7. With Assembly Processing, Projects are created in the background from a Sales Order, so you
must have Standard WBSs and Standard Networks.
8. Milestone Templates (Standard Milestones) can be attached to Standard WBSs and Standard
Networks.
9. Standard Templates do not carry Settlement Rules.

● Project planning board

● Structure Planning

● Mass Change

● Status Management

Dates

● Types of Dates

● Settings for Scheduling Parameters

● Presentation of Dates in the Graphics

● Scheduling Functions

● Dates in the Work Breakdown Structure (WBS)

● Scheduling the Work Breakdown Structure

● Network Scheduling

● Scheduling the Overall Network

● Overall Network Scheduling with Selection Option

● Scheduling with Service/Maintenance Orders

Costs

● Cost Planning/ Resource planning

Any planning you may perform is determined by the amount of detail you need. From a Cost
perspective, planning can be as simple as entering a planned value against a WBS. More detail is
achieved by specifying where exactly the costs may be incurred (Cost Element) and exactly how many
Units you want to plan for (Unit Costing). Even more detail can be applied by planning at a Network level
by Material and then integrating it with CO, so the source Cost Centers are informed.

Resource Planning is mainly about the people (or roles) you may want to plan for via Work Centers
and Activity Types. This type of planning optionally involves Capacity Planning, where you may share
resources from another department.

1. Structure Cost Planning via WBS: Direct Entry of Costs Against a WBS Structure, Without Regard
to Cost Elements
These are Costs associated with the WBS as a whole.
• Structure Cost Planning is the simplest form of cost planning.
• It is independent of cost elements.
• Plan values entered hierarchically to estimate the expected costs for a project.
 • Usually “Rough-Cut”—meaning that when more detail is known, you will probably
be more precise and progress to Detailed Cost Planning.
• Can be entered against any WBS (unless configuration in Plan Profile says otherwise).
• Planning is usually Bottom-up, meaning costs are aggregated from the lowest level
WBS upward automatically.
• Can be “integrated” with Controlling.
2. Detailed Cost Planning (WBS)
3. Detailed Cost Planning (Network)
4. Easy Cost Planning (WBS)
5. DIP Profiles
6. Plan Versions (CO)
7. Statistical Key Figures
8. Overheads (CO)
9. Value Categories

● Orders for Projects

● Project Cost Forecast

● Budget Management for Projects

1. In Projects
2. In Investment Programs
3. Availability Control

● Commitments Management (CO)

● Funds Commitment (Cost Centers, Internal Orders, Projects)

● Automatic and Periodic AllocationsRevenues and Earnings

● Billing Plans in WBS Elements

● Project-Related Incoming Orders

● Transfer Prices for Projects

● Sales Pricing and Quotation Creation

● Resource-Related Billing

● CPR and Valuation of Semi-Finished Constructions

Payments

● Project Cash Management

● Manual Payment Planning

● Calculating the Payment Flow Automatically

● Recording Actual and Commitment Payment Data

Resources

● Capacity Leveling in the Project System

● Executing Capacity Leveling (PS)

● Workforce Planning

Materials

● Procurement Management

● Material Assignment to Networks

● Activating Requirements

● Material Availability Check

● Activating Requirements

● Material Assignment to Standard Networks

● Project Stock

● Grouping for Individual Project Planning

● Bill of Material Transfer

● Delivery from Projects

● Monitoring Dates

● Assembly Processing in the Project System

● Project-Oriented Procurement (ProMan)

Production Resources/Tools (PRT)

● PRT – Detail Study

● Production Resource/Tool (PRT) Availability Check

Confirmation
● Confirmation Directly in the Project System

● PS-CON

● PDC

Simulation

● Creating Simulation Versions

● Transfer of Operative Data and Simulation Data

● Evaluating Simulation Versions

Versions

● Project Version – detail.