Project System Approach:

 

A Project is a summary of certain business processes within a Company. A Project can be defined as a plan distinguished by a uniqueness of its conditions. These conditions include clear goals and objectives, and restrictions such as time, money and personnel resources.

The realisation of a project involves many phases. Large project requires a high degree of precise planning   and coordination. During the initial phase of process, dates must be defined, resources must be available and financing must be provided.

A clearly and precisely structured project is the basis for planning monitoring and controlling of projects.

 

SAP PS is a Project management tool which supports in all phases of the project. The high degree of integration between SAP PS and other SAP functions eg. Materials Management, Sales, Production, Finance, Controlling, Human Resources ensures that the required business processes can run quickly and efficiently in SAP PS.

SAP PS provides the structures that we can use to model and analyse the projects flexibly.

We can plan and monitor dates, costs, revenues, budgets, resources,  materials and so on in these structures using the relevant tools and reports from SAP PS.

 

The Project Systems module tracks the Project related activities for plants in an organization. This facilitates in monitoring the entire process starting from the inception of the project to sale of product. 

 

The Document covers the detailed use of SAP PS module vis-à-vis the requirements of cleint. It covers the entire cycle, from the Creation of a Project to the closure of the same.

 

 

Solution in Project Systems:

 

Project System is part of SAP's solution for Project and Portfolio Management. This presentation gives you and your customer an overview about the PS functionalities.

 

Introduction:

Project System is part of SAP's solution for Project and Portfolio Management. Project System helps you manage the project through its entire life cycle, from setting up a structure, to drawing up detailed plans, to execute and completing the project. Because of its tight integration into financial and logistic core enterprise processes Project System can especially be used for large and complex projects such as construction, production, maintenance, investment, or costs projects in all industries.

 

Project Structuring:

In Project System you can use Work Breakdown Structures (WBS) and Networks to structure your projects hierarchical and/or using network techniques. Milestones and documents help you to mark project events of particular interest and document your project appropriate. You can set up project structures manually or based on templates. Project structures can also be created automatically from sales documents or cProjects projects for example. Using access control lists, partner data and persons responsible you can easily define authorizations and responsibilities for project elements.

 

Project Scheduling:

Project System provides various date planning functions. Flexible scheduling techniques can be used to calculate earliest/latest dates, floats or critical paths within projects. Dependent dates, such as requirement dates of materials, services or capacities, billing dates or periods of planned costs can automatically be derived from planned dates. Comparing forecasted, planned and actual dates you can easily identify deviations from your project plan. Additional tools such as Progress Tracking, Sub network Monitor, Simulations or Milestone Trend Analysis enables you to manage the dates of your projects efficiently.

 

Capacity and Workforce Planning:

 

Networks in Project System enable you to plan, analyse and level WorkCentre based capacity requirements of your project. You can use simulation versions for what-If analysis of your project

Schedules and capacity requirements. For detailed workforce planning you can assign organizational units or individual personnel resources to work packages of your project. Because of the tight integration of

Project System to Human Capital Management you can directly access the availability or even qualifications of employees if required during workforce planning.

 

Material and External Service Planning:

 

If you assign material components to Networks you can plan material requirements based on your project schedule, check the material availability and trigger the material procurement and delivery later on.

Functions such as project specific bills of material, bill of material transfer, the open catalog interface or integrations to Integrated Product and Process Engineering (iPPE) helps you to plan materials efficiently in Project System. In order to plan external services you can directly use purchasing info records, outline agreements or service specifications from Materials Management in Project System. The open catalog interface allows you to select services also from internal or external service catalogs.

 

Financial Planning:

 

You can use various techniques for planning costs and revenues in Project  System depending on your financial planning requirements. So the cost planning capabilities for example range from overall cost

planning to Easy Cost Planning or detailed network costing. Sales Pricing helps you to create quotations for customer projects based on the planned costs. Project milestones can be used to derive billing dates automatically from the project schedule. Project System cash management also allows you to plan and monitor incoming and outgoing payments for projects.

 

Budget Management:

 

Budget is the approved cost structure for a project. You can allocate budget to projects in Investment Management or directly in Project System. Budgets can be distributed hierarchically within the project

structure. If required you can successively release budgets and post updates, such as budget supplements or returns. Budget availability control enables you to control costs actively by issuing warnings and error messages when tolerance limits of the budget are exceeded because of assigned values.

Budget Control functionality can be useful to control over all allowed finance for any projects. Tolerance Limits will have 3 type of notification like: Warning, Warning + Email & Error Message.

 

Confirmation:

 

Confirmations In the execution phase of projects confirmations can be used to document the actual work performed and the progress of individual work packages. Using confirmations you can also enter forecast information such as the remaining work or duration. Because of confirmations the dates and capacity requirements of your project will be adapted and actual costs are posted automatically to the project.

Project System provides various confirmation options including individual and collective confirmations, integration to the Cross Application Time Sheet (CATS) or external interfaces.

 

Project Related Procurement:

 

Reservations or purchase requisitions can automatically be created for a project based on your material and external service planning. You can easily track all follow up in-house production and purchasing processes related to your project for example using the ProMan or Progress Tracking. Commitments and actual costs because of purchasing documents, material movements or invoices are automatically posted to the project. Valuated project stock helps you to manage and valuate material in your project independently if required.

PROMAN is used to track overall materials procurement etc.

 

Cost Integration and Billing:

 

Costs actually incurred are posted directly to your project by account assignment of documents in Financial Accounting, Controlling or Materials Management for example. Using Execution Services you can       

also directly post various documents in Easy Cost Planning based on planned values. Costs of orders assigned to your project can be analysed in project reporting and will be checked against the project budget. Milestone billing and resource related billing can be used in customer projects to control billing processes based on the project progress.

For customer Projects we can use this fuctionality

 

Claim Management and Workflow:

 

Project System supports Claim Management using a notification type called "claim". You can use claims to

document variances from your project plan, name the person responsible, and initiate follow-up activities. Costs that are caused by a deviation can be planned using claims and integrated into your project plan. Standard workflows can be used in Claim Management for approval processes. Other standard workflows are available in Project System in order to notify persons responsible in case of deviations affecting  purchase orders or project capacity and date planning.

 

Project Progress:

 

Milestone trend analysis and Progress Tracking can be used to effectively monitor the project schedule.

Progress Analysis in Project System provides several methods and interfaces to derive and analyze the POC and other project  progress values of your project or individual work packages. Using the Progress Analysis Workbench you can easily monitor and enter all progress related data for several projects simultaneously. Forecast values can be calculated or entered manually using the Forecast Workbench for example.

 

Period End Closing:

 

You can perform various period-end closing procedures on your project to ensure that all project data belonging to a period is determined and available for purposes of enterprise control. Typical period-end closing procedures for projects are: Overhead calculation Template allocation Project interest calculation

Progress and results analysis Project related incoming order analysis Settlement You can use the Schedule Manager to easily plan, carry out and control your period-end closing procedures.

 

Project Reporting:

 

Project System provides various standard reports for real-time reporting of financial and logistic project data as well as predefined BI content. Using report-report interfaces you can directly navigate from one report to other more detailed reports. You can also define your own reports and queries depending on your reporting requirements. Project System reports include: Project and individual structure reports

Resource and material reports Hierarchy, cost element and line item reports Claim and project progress reports

 

Interfaces:

 

Project System provides several options to exchange project data with external systems. For example you can use various BAPIs to export, import or maintain project data. Based on the BAPI technology the OpenPS interface allows you to interchange project data with Micrsosoft Project Client based on predefined mapping rules. As of SAP ERP 6.0 Enhancement Package 3 more than 50 Enterprise

Services are available to interchange project data with other systems too. More information on Enterprise Services for Projects can be found on the Enterprise Services Workplace

 

Integration with other Modules:

 

PS-MM: Project consists of WBS elements (means sub projects ) > network element--> activity. for these each activity, manpower resources, material, duration will be assigned. While doing the mrp, BOM will be exploded and the requirements will be generated. if it is of external procurement, then purchase order will be generated. Then you have to procure the material. This will be reserved for this project. Purchase Requisition, Purchase Order, Good Issue, Project stock, Service Procurement.

 

PS-HR: CATS for time booking in HR, where you can book the working time of the employee against the Network or the WBS element & then transfering the data to PS.

there is no direct integration between HR payroll and project system. The indirect integeration is thru SAP Finance & Controlling. We define CO activity types for labour hour rate determination, which is used for PRoject labour costing. The time entries carried out using CATS are used for calculating the number of days salary is payable and number of OT hours paybale for an employee.

 

PS-SD: ASEMBLY PROCESSING & DIP PROFILE with RESOURCE REPLATED BILLING

DIP with RRB

The dynamic item processor (DI processor) is a tool that the system uses to group data (for example, line items that are produced when posting goods movements, completion confirmations or surcharges) in  dynamic items during resource-related billing and quotation creation. The dynamic item processor profile (DIP profile) controls amongst other things how the system groups the data in dynamic items.

RRB

The prices for services performed for individual customers are not always stored as fixed prices in a contract or determined using the standard pricing procedure. It is possible that specific services do not have prices that are based on experience, meaning that the services cannot therefore be adequately costed before contract completion. Typical examples of this are:

 Make-to-order production

 External maintenance in the service company

 Specific services, such as consulting

Resource-related billing is performed for these types of orders. For example, the customer is charged for individual materials, internal company services and costs in the billing document.

PS-PP: PS-PP Integration Comes in picture when we are going to do Production of some Itmes (inhouse), required in Project.

Like in our order customer required transformer and Pole for electrification. If we are doing Production of Transformer we can do it and transfer to the customer site. Here we will make BOM (Bill of material) of item that is to be produce and connect/assign it to project.

1)Resources

• Work center --> PP MODULE

2). Material

• Work breakdown structure BOM-->PP MODULE

PS-FI: When you are creating a project you need controlling area, company code, profit centers, cost centers, settlement profile, costing sheet, RA key, Activity types. PS is working with CO Module directly and then CO is working with FI internally. When anyone post any entry for a cost element, automatically the corresponding GL is posted.

When you create a PO, automatically system will pick the Inventory GL (If material is a stock item) from BSX in OBYC and it works on valuation classes in Material Master.     

When we receive goods as project stock, automatically Inventory is debited.

When we issue the goods to project, system will post the accounting entry to the cost element which is maintained in GBB(OBYC) and it depends on account modifier which is linked with the Movement type.

During period end closing of customer projects, system will post the entry to B/S account which is maintained in RA configuration and settlement happens to FI.

PS-PM: The idea behind this integration is you can achieve the PM work order capabilities like Scheduling, assigning internal resource to your project job, Stock material consumption, Non stock material Procurement, Service procurement with or without Framework order. All you need to do you in that specific PM work order maintain the WBS as account assignment in location tab of the PM work order. The cost incurred in PM work order need to be settled into the WBS. The relevant config is as regular & applicable with PM & PS like enabling the WBS as settlement receiver in Your settlement profile etc.




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