SAP PS (Project Systems)

A project is a complex process which involves various activities and huge data.
Hence SAP Project Systems (PS) is specifically designed to provide comprehensive Project
Management functionality to SAP Customers.
Project systems serves as a useful tool to effectively manage functional and technical
aspects of various ongoing projects of an organization, it helps in Planning, Organizing,
Budgeting, Management of services and other sales processes involved in the project.
Before you Run any project, it is necessary to describe the project goals and structures for
project activities to be carried out in a timely manner, A clear project Structure provides a
basis for successful project planning, monitoring and control.
SAP project Systems is highly Integrable solution. Which integrates with Finance, HR, and
various Logistics Modules to manage Large and complex projects such as construction,
production service, investment projects in all types of industries.

PS Integration with various SAP Modules

Project Systems Organizational Structure

Project
Systems

WBS
Elements

Networks

Work
Centres

PS Organizational Structure

At the highest level of SAP PS, projects are defined and then structured into an
organizational form that maps to the specific project.

1. Work Breakdown Structure: The project is first broken down into work breakdown
structures (WBS) which map to specific project deliverables.

2. Networks: Each WBS can then be broken down into networks of activities. A network can
be thought of as a list of tasks organized into a process flow with specific timing.

3. Activities: Activities are the key tasks to be completed. These activities map to internal
activities, external activities, cost activities and materials components.

4. Work Centres: Internal activities are assigned to work centres (resources) to be

completed
Let’s discuss with an Example, how to create a project System for Construction of a Building
and how it is structured to various WBS elements and Activities along with networks and
work centres, and then how all the costs are settled towards AUC Asset and Then to the
Main Asset.

Building Construction

Floor 1 Floor 2

Networks (predecessor or successor

Plumbing
relationship between activities)

Electricity

Painting Activities
Settlement

Furniture AUC Asset

Settlement

Flooring Main Asset

Project Elements
Configuration Steps in project systems

1. Define Special Characters for Projects

2. Define Project Coding Mask

3. Create Project Type for WBS Element

4. Create Project Profile

5. Specify Persons Responsible for WBS Elements

6. Define Field Selection for Work Breakdown Structures

7. Network

8. Activity

9. Maintain Allocation structure

10. Maintain settlement profile

11. Maintain Budget profile

12. Define Tolerance Limits

13. Assign the Budget Profile in the Project profile (OPSA)

14. Creation of Project definition

15. Budgeting

16. Budget Release

17. Release the WBS Element (T. Code CJ02)

18. Change the Field Status group G010 for Field Status Variant TML (T. Code OBC4)

19. Create Asset Class for (AUC)

20. Create Asset (AuC)

21. Maintain Settlement Rule

22. Post the Cost to the WBS element Through (T. Code F-02)
 23. Display the Cost at Project Level (T. Code CJI3)

24. Run the settlement to AUC

25. Post the Pending Cost (Rs.100000) to the WBS element (T. Code F-02)

26. Maintain Settlement Rule for W/01-001-A2

27. Run the Final Settlement (T. Code CJ88)

First step: Define Special Characters for Projects

In this step, you specify how a project number is coded for editing. You can maintain the
following parameters for editing the project number
 the length of the key for project coding. You can assign up to five places for the key.
 an indicator specifying whether the key must have this exact length or whether it can
also be shorter
 special characters to enter WBS elements faster
 an indicator specifying whether only coded project numbers can be used to create
projects
SAP Recommendation, Avoid the following special characters: *,+,? and %. These special
characters are used for specific functions in the system.

Project systemsstructuresoperative structuresWBSproject coding maskDefine

special characters
TCODE- OPSK

Define all the Characters as in the below screen & Save

Second step: Define Project Coding Mask

A project coding mask is used to create a structure for the project IDs. A coding mask helps
in displaying complex project IDs. For example, it can help in indicating the level of the WBS
element in the overall project hierarchy
X for alphanumeric characters
0 for numeric characters
special characters to organize the project numbers
Example
You enter the following mask for key "Z": /000-XXX-000/XXXX
The project number Z453SKS555ELEK is edited to Z/453-SKS-555/ELEK.

Project systemsstructuresoperative structuresWBSproject coding maskDefine

project coding mask

TCODE-OPSJ

As below give the project ID, Coding Mask, Coding Description and sav
Third step: Create Project Type for WBS Element

Create project types for project structure elements. Project types are used to group projects
based on a certain category, for example:
 Capital-investment projects
 Customer projects
 Development projects

It is just a naming convention to identify the project

Project systemsstructuresoperative structuresWBScreate project types for WBS
elements
TCODE-OPSO

Here click on new entries, give any Alphanumeric or Numeric code as project type, Give the
description and save

Fourth step: Create Project Profile

The project profile contains default values and other control parameters such as the
planning method for dates and costs.

The project profile contains default values and other control parameters such as the
planning profiles, Budget profiles, costs, dates Etc
The data that you enter in the project profile will be copied into a project in its project
definition or in the WBS elements which can later be overwritten.
Examples
 To carry out cost planning you must specify a planning profile.
 To carry out financial budgeting you must specify a financial planning profile .

Project systemsstructuresoperative structuresWBScreate project profile

TCODE- OPSA
Click on new entries, here under control tab, In the project type field enter the project type
created in above step
Enter the default project status profile
Enter the default WBS status profile

Go to organisation tab in the same screen and mention all the below details as in below
screen and save
Fifth step: Specify Persons Responsible for WBS Elements

In this step, you specify the responsible people.

1. Enter a number and the name of the person responsible for project management.
2. Enter the SAP name of the person in charge of the project.
The SAP name is used when messages are automatically sent, for example, in
availability control

Project systemsstructuresoperative structuresWBSspecify person responsible for

WBS elements
TCODE- OPS6
Give the no of persons responsible for the project and give the name of the person and save

Sixth step: Define Field Selection for Work Breakdown Structures

In this step, you can make a field selection for the screens of the project definition and the
WBS elements.
Project systemsstructuresoperative structuresWBSuser interface settings Define
Field Selection for Work Breakdown Structures
TCODE- OPUK for project definition
TCODE- OPUJ for WBS element

Seventh & Eighth step: Network & Activities

In this step we will just discuss the overview of network and Activities

A network can represent the sequence of activities in a project or the sequence of a single
activity within a project. You can graphically display various structural elements of a project
and their interdependencies in the Project System.

During the life of a project, networks are used as a basis for planning, analysing, controlling,
and monitoring schedules, dates, and resources. (Such as personnel, machines, PRTs,
materials, documents, and drawings).
The essential components of a network are:
 Activities
 Relationships

Activities
The most important data describing an activity in the Project System is:
  Work centre in which the activity is to be carried out
 Duration of the activity
 Start and finish dates for the activity
 Resources required to carry out the activity
 Texts and documents describing the activity

Relationships
There is usually a reason for a specific sequence of activities in a network. For example,
there may be technical dependencies between individual activities. These dependencies are
represented by relationships in which one activity is the predecessor or the successor of
another activity.
The relationship type specifies how the individual activities are linked with each other:
 Finish - Start (FS) Relationship
Relationship between the finish of one activity and the start of its successor.
 Start - Start (SS) Relationship
Relationship between the start of one activity and the start of its successor.
 Finish - Finish (FF) Relationship
Relationship between the finish of one activity and the finish of its successor.
 Start - Finish (SF) Relationship

Ninth step: Maintain Allocation structure

Here source cost elements will be defined from where cost will flow & receiving elements will also
be defined to where costs will be settled while doing settlement.
Personal Cost
The source cost element for Personal Cost would be like salary, allowances & other expenses
towards employees. There would be "N" no of cost elements, so cost element group can be assigned
to Source.
Material Cost
The source cost elements would be Purchase goods, freight, etc., whichever are having link with
Material.
Receiving Cost Element:
Settlement Cost element can be single or multiple based on the structure, client is following.

Controllinginternal ordersActual postingsSettlementMaintain Allocation structure

TCODE-OKO6
Go to new entries, give the Allocation structure name and description, then select the line
and click on assignments

After selecting Assignments tab click on new entries, fill the assignment field and text, then
select the line and click on source
Until the source is assigned the overlapping indicator will be yellow. After assigning the
source elements the indicator will turn green

After selecting the source tab, select the range of cost elements, or cost elements groups
can be assigned here and then click on back button

Now select the settlement cost element tab and select settlement receiver, here receiver
category can be Asset or cost centre or order or WBS etc, here since we are settling all the
costs to AUC Asset, we have selected the settlement receiver as FXA (Asset) and save
Tenth step: Maintain settlement profile

In a project, you collect cost and revenues temporarily and they must 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 can use the settlement profile to define the following for actual costs −

 Full Settlement
 Can be settled
 Not to be settled
As per the settings in the settlement profile, there is a need to settle the costs of an object in
full before that object is achieved in the system.

Controlling → Internal Orders → Actual Postings → Settlement → Maintain settlement

profiles.
TCODE-OKO7
Click on new entries,
 Select to be settled in full
 Select default values
 Assign the allocation structure created in the above step here and select the default
object type
 Select the valid receivers
 Select document type, maximum number od distribution rules and residence time
and save

Eleventh step: Maintain Budget profile

In this step, you
 create new budget profiles
 define parameters for new budget profiles
 change existing budget profiles
To be able to budget projects, you must create a budget profile or use an existing one.
The following parameters are relevant for project budgeting:
 Time horizon
 Here you define: the number of years in the past from the start year, the number of
years in the future from the start year, budgeting start year, a relative specification
referring to the current fiscal year, budgeting for overall and/or annual values
 Display: standard view as well as the budget value when you access the function,
decimal places and scaling factor as default values
 Currency translation
a) exchange rate type
b) value date

 Availability control
Project System Costs  Budget  Maintain Budget Profiles
TCODE-OPS9
  Click on new entries
 Give profile name and text
 Select the number of past and future years you want to maintain the budget
 Mention exchange rate type
 Select activation type
 Maintain budget currency and save

Step twelve: Define Tolerance Limits

Tolerance Limits are set for defining what actions are to be taken when the Budget is
overrun. Example: Warning will be shown if the Budget Exceeds 70% of Budget available.
Warning with mail to the Person responsible when the Budget Exceeds 90% of Budget
available. Hard stop Error will be shown if the Budget Exceeds 100% of Budget available.
Different Budget Profiles can have different Tolerance settings

Project System Costs  Budget  Maintain Budget Profiles

TCODE-
  Click on new entries
 Select the controlling area
 Select the budget profile which was created in a previous step
 Select the target group (++ means all activity groups)
 Select the message type to be received when the budget gets exhausted
 Define the usage and currency is picked from your budget profile and save
 In the below screen we have mentioned if budget gets used upto 90% issue a warning
message, if it is 100% used up issue a error message

Step thirteen: Assign the Budget Profile in the Project profile

Project systemsstructuresoperative structuresWBScreate project profile

TCODE- OPSA
Double click on project profile you created in fourth step

 Select the controlling tab in the same screen

 Assign the budget profile created in eleventh step
  Assign the settlement profile created in tenth step and save

Step fourteen: Creation of Project definition

In this step you will create a WBS elements for undertaking the project based on the coding mask
defined
In SAP easy access menu or end user menu follow the path
AccountingProject SystemProjectSpecial Maintenance FunctionsWork Breakdown
Structure (WBS) CJ01 – Create
TCODE-CJ01
Select the project definition based on the coding mask defined
Select the project profile defined in forth step and press enter, it will navigate to next screen

in this screen
  Give project description
 Select person responsible
 Applicant no
 Factory calendar
 Time unit
 Organisation information

In the control tab

 Select the budget profile

 Select planning profile and click on wbs element overview ( yellow triangle button)

In the basic data tab

Select the level for WBS element
Choose the coding mask floor level and give description
Similarly do for all project hierarchies and press enter

In the same tab select the PE and Account Assignment tick marks and save
Note: The advantage of above setting is for the purpose of planning system will consider the
only elements which are ticked as PE and while making the posting, system will allow the
postings to only those WBS elements which are ticked for account assignment.

Step fifteen: Budgeting

In this we can maintain the budget for all the Activity WBS elements
In SAP easy access menu or end user menu follow the path

Accounting Project System Financials Budgeting  Original Budget

TCODE-CJ30
Here mention the project definition created in step fourteen and press enter

 Then maintain the budget for each project hierarchy and press enter
 Select s/05-001-E1 hierarchy
 Click on annual overview

 Assign budget to year 2022 and select back button

 Similarly do for all the project hierarchies
Then go back and click on edit menu and total up and save

Budget gets posted

Step sixteen: Budget Release

In this step you can release the budget for usage
In SAP easy access menu or end user menu follow the path
Accounting Project System Financials Budgetingrelease
TCODE-CJ32
Select the project and press enter

 In this step specify the budget amount to be released for each hierarchy
 Here I have released only for floor 1, after completion of first floor we can release for
2nd floor
 Go to edit menu in same screen and click on total up and then save

Budget release document gets saved

Step seventeen: Release the WBS Element

In this step we need to release the WBS element for processing again go to
In SAP easy access menu or end user menu follow the path
AccountingProject SystemProjectSpecial Maintenance FunctionsWork Breakdown
Structure (WBS) CJ02 – change
TCODE-CJ02
Here give the project definition and click enter

 Here select the WBS element

 Go to edit
 Go to status and release and save
 Similarly do for all the floor WBS elements

Step eighteen: Change the Field Status group G010 for Field Status Variant TML
TCODE-OBC4

In the additional account assignment tab for WBS element mark optional entry and save
Step nineteen: Create Asset class for(AUC)

In this step we need to create AUC Asset class where we need to settle all the costs
IMGfinancial AccountingAsset Accountingorg structureAsset classesDefine Asset
class
TCODE-OAOA
 Click on new entries
 Give description, Account determination, screen layout rule, number range
 Select no AUC settlement and save

Go to TCODE OAYZ and select the asset class

Select the Asset class created in the above step
Double click on depreciation areas
  Here untick the deactivation button for Dep area
 Give DEP key
 Useful life
 Layout and save

Step twenty: Create Asset (AuC)

In SAP easy access menu or end user menu follow the path
AccountingFinancial AccountingFixed AssetsAssetsCreateAS01 – Asset
TCODE-AS01

 Select the Asset class created in step nineteen

 Select the company code
 Number of similar assets and press enter

In the General tab give the description and click on time dependent tab

In the time dependent tab

Fill the cost centre, profit centre and save
AUC Asset got created

Step Twenty-one: Maintain Settlement Rule

In this step we can maintain settlement receiver for all the costs
In SAP easy access menu or end user menu follow the path
AccountingProject SystemProjectSpecial Maintenance FunctionsWork Breakdown
Structure (WBS) CJ02 – Change
TCODE-CJ02
Here select the WBS element and click on settlement rule

Here select the

 Settlement category
 Settlement receiver ( Asset created in step twenty)
 Give 100% settlement and click back button
 Repeat same for all WBS elements and save