SAP PROJECT SYSTEM

FUNCTIONALITY
OVERVIEW
 SAP R/3 MODULES
SD FI
Sales & Financial
Distribution Accounting
Financial
MM CO
Modules
Materials
Mgmt. Controlling

PP AM
ECC6
Production Fixed Assets
Planning Mgmt.

QM Client / Server PS
Quality Project
Manage-ment
ABAP/4 System

PM IM
Plant Main-tenance Investment

HR IS Mngmnt.
Human Industry
Resources Solutions
WHAT IS PROJECT
What is a Project? According to Wikipedia Project management is the
discipline of initiating, planning, executing, controlling, and closing the work
of a team to achieve specific goals and meet specific success criteria.

According to SAP: A project is a summary of certain business processes

within an enterprise that can be defined by the uniqueness of its conditions:
Precise goals Time, money, or personnel restrictions Use or defined
resources Complexity Cross departmental processing Typically follow the
order of concept, rough cut planning, detailed planning, approval, execution,
completion
PROJECT SYSTEM INTEGRATION
MM
PP PM

FI PS CO

AM
INTEGRATION WITH OTHER MODULES
Other Used to capture cost for capital,
exploration & opex projects
SAP Plan
modules
FI
CO Cost Project
MM Cost are assigned to
PM the relevant Budget
project/WBS element
HR
WBS WBS
element element

REPORTING
Reports can be generated
according to specific Assets
business requirements, e.g. Project Cost centres
project costs-planned vs. Settlement
actual GL accounts
PROJECT TYPES
Direct Projects Are used to plan and manage reimbursable work for customers within and outside of the organization. Sales
Order present

Overhead (Non-Statistical) ProjectsAre used to plan for and manage work funded with overhead planning is performed on
network activities/elements. No Sales Order

Service Center ProjectsAre used as cost collectors for Service Centers and other Cost Redistribution Accounts (CRAs)
planning is performed on network activities/elements. No Sales Order

Statistical Overhead ProjectsAre used to plan for and track organizational overhead expenses planning is performed on the
statistical WBS elements. There are no network activities/elements for this type of project. No Sales Order

Budget Structures To support the Planning, Programming, Budgeting, and Execution. No Sales Order

Capital (CPP) Projects Are used for the modernization and improvement of Working Capital Fund (WCF) activities, functions and
equipment items. Capital assets are items such as automated data systems, software tools, and minor construction -planning is
performed on network activities/elements. No Sales Order
PROJECT LIFECYCLE

Close Create

Final
settlement Plan

Technically
complete Budget

Month-end
settlement Release
Costs
PROJECT CREATION
Manage
ManageProjects
Projects

Overview
Overview

Project
ProjectCreation
Creation Create / Change a Project

Project
ProjectMaintenance
Maintenance

Project
ProjectReporting
Reporting
PROJECT DEFINITION

Applicant
Responsible
Person
Project
Definition je ct
Pro ile
of
Pr

Plant
MAY
31
Start End
Date Date
PROJECT PROFILE

Time Scheduling Profiles

Basic Data

C lie n t

C o n tr o llin g
A rea

B u sin e ss
A rea

P la n t

Organizational Data
Accounting Profiles
USING TEMPLATE PROJECT PROFILES

Project Type A Project Type B Project Type C

e ct ct c t
o j je je
Pr Pro Pro
o f ile o f ile o f ile
Pr Pr Pr
A B C
STANDARD WBS ELEMENT
Standard WBS
WBS

COPY

Add elements after copying

CREATE A PROJECT ACTIVITY FLOW
P r o je c t D e f in it io n

W BS 1

W BS 11 W BS 12

W BS 111 W BS 112 W BS 121 W BS 122

A c tiv ity 1 A c tiv ity 2 A c tiv ity 3

M a te ria l C o m p o n e n ts 1 M a te r ia l C o m p o n e n ts 2

M a te ria l C o m p o n e n ts 3
WORK BREAKDOWN STRUCTURE - FUNCTIONS
April
Dates: 7
l Basic dates
l Scheduled dates
l Actual Dates
Costs/Revenues Budget:
l Planned costs/revenues l Original budget
l Actual costs/revenues l Budget updates
l Budget releases
l Availability control

Purc.order

Payment data: Commitments:

Commt
l Planning of payments l Purchase requisition
(debit-side/credit-side) l Purchase order
l Actual data updates
Periodic
Periodicprocessing:
processing
l Overheads, process costs
l Interest calculation
l Results analysis
l Settlement
 ACTIVITIES AND NETWORK - FUNCTIONS
Internal activity:
l Work
l Dates, capacities
l Costs

Milestones: External activity /

l Billing dates based on service:
billing milestones l Dates
(invoice / down payment) l Costs, commitments
l Payments

Costs activity: Material:

Commt
l Dates l Purchased parts/
l Costs assemblies
l Payments l Dates
Periodic processing:
Periodic processing l Costs, commitments
l Process costs l Payments
l Overheads
l Settlement
NETWORK VS WBS
Process Oriented Responsibility Oriented

C o n s tru c t
Mechanical
C o m p u tin g
Construct C e n te r
Computing Structural
Center

Wiring S tru c tu ra l M e c h a n ic a l W irin g

HVAC C o m m u n ic a tio n s

P lu m b in g E l e c t r ic a l

Decking Frame Roof E le v a to rs

Network Work Breakdown Structure

NETWORK COMPONENTS
10 Engineering
20 Work Scheduling 60 Inspection

40 Production 70 Start-up
80 Civil

90 Mech.
50 Assembly
30 Component Procurement

Key
= Activity
= Relationship
= Activity Element * Header not shown
EXAMPLES OF PROJECT STRUCTURES
P ro j e c t X Y Z
R 50m
P ro j e c t X Y Z
P ro j e c t X Y Z B a s e l i n e R 50 000
R 47m

D e s ig n
R1m
C iv il s
R 11m
In s ta l P l a n t
R 30m
C o m m is s io n P la n t
R5m
C o m m is s io n P la n t
R 50 000
In i t i a l D e s i g n F i n a l D e s i g n Complex structure Simple structure
INVESTMENT AND OPERATIONAL PROJECT STRUCTURES

IM Capital or
Investment program Operational
1300 / current year Programs or
Projects
H1000 PS
E-99##
Elevator
1000

E-99##-1 E-99##-2 E-99##-3 E-99##-4

Engineering Procurement Assembly Acceptance

E-99##-1-1 E-99##-2-1
Electrical Engine

E-99##-1-2 E-99##-2-2
Mechanical Cabin

E-99##-2-3
Equipment

SAP AG 1999
COST PLANNING IN PROJECTS
Overall planning
(Hierarch. planning)
Cost planning using 600,000 Cost element planning
activities/ 400,000 200,000
network costing
400000 150000 400000 180000
415000 75000 415000 80000

E 10h service 1421

F
F 10h vendor 1000
K
Unit costing
K $5000
$5000 ce
ce 466000
466000

1 1

Projects and orders Easy Cost Planning

I/0099

PP PM/CS CO
SAP AG 1999
BUDGETING
Company 1
IM

Medical Pipe Modulat Operating Industrial

EPC Revamping .
Line System Theattre Pumping

Region1 Region 2 Region 3

JaTim

Top down
Project 1 Budgeting

Project 2

PS Project 3
BUDGETING IN PROJECTS

Budget is the approved cost limit for a project.

It differs from cost planning because of its binding nature.
The budget is the approved spend for the project and it is allocated to the
lower WBS elements
Activate availability control
enables checks on the costs, by issuing warning and error messages
when the predefined cost tolerance limits are exceeded
BUDGET AVAILABILITY CONTROL
Purchase order
Purchase order
40000030
40000030

XYZ Consulting
XYZ Consulting
Services
Services
Jakarta
Jakarta

1000 hrs
1000 hrs
Consulting
Consulting
Services
Services

Total: 400 EUR

Total: 400 EUR
Back to user
WBS Element To Person
reponsible
Budget Actual

6XXX xxx xxx

6XXX xxx xxx
6XXX xxx xxx
8XXX xxx xxx

20000 19700
Error message:
Budget overrun by
100 EUR
PROJECT MAINTENANCE
Create a Simulation

Change/Display
Manage
ManageProjects
Projects a Simulation

Delete a Simulation

Overview
Overview Transfer a Project

Simulation Logs
Project
ProjectCreation
Creation
Simulation
Administrative Data

Project Create a standard

ProjectMaintenance
Maintenance WBS

Create a standard
Project Network
ProjectReporting
Reporting
Cancel / Reverse
Confirmation
PRODUCT LIFE CYCLE PROCESS
Planning and Budgeting Actual Values Settlement Maintenance

IM PS Fixed Equipment
Direct capitalization
Assets

CO
Cost Centres
Investment Term Capital or
Program Operational
Projects

Plan & Settlement

Maintenance PM
Budget AM
Cost of Sales
Settlement
Capital or
FI
Operational
Programs Investment Settlement
Periodic Asset
Projects Settlement under .
Construction
MM SD AM
PROJECT REPORTING
Project
Project
Management
Management

Overview
Overview

Project
ProjectCreation
Creation

Project
ProjectMaintenance
Maintenance

Project
ProjectReporting
Reporting
DRILL DOWN - REPORT
WBS
WBSElement:
Element:Structural
Structural
Cost
Costelements
elements Actual
Actual Plan
Plan
421000
421000 Indirect
Indirectlabor
labor 235,000
235,000 234,000
234,000
422000
422000 Temp. pers. wages120,000
Temp. pers. wages120,000 119,000
119,000
431000
431000 Overtime premium60,000
Overtime premium60,000 70,000
70,000
420000
420000 Direct labor
Direct labor 210,000
210,000 213,000
213,000
* *Wages
Wages 625,000
625,000 636,000
636,000
430000
430000 Outside
OutsideContractors
Contractors 315,000
315,000 320,000
320,000
*Contractors
*Contractors 315,000
315,000 320,000
320,000
410000
410000 Consumable
ConsumableMaterials
Materials 117,000
117,000 110,000
110,000
410100
410100 Other materials
Other materials 100,000
100,000 105,000
105,000
* *Raw Materials
Raw Materials 217,000
217,000 215,000
215,000
****Total
TotalCosts
Costs 1,157,000
1,157,000 1,171,000
1,171,000
DRILL DOWN - LINE ITEM
ZOI - Leisure Goods International Line Item Display 1
Cost Order Doc Date Invoice No. Input By Value
Element Number

410100 30001 032197 1236 LOCKIEKE 25000

410100 30456 032697 BETH230 SCOTTB 50000
410100 30467 032697 23698669 CALLAHAND 25000

ZO2 - Leisure Goods International Line Item Display 2

Cost Order Doc No. PstgDate Value
Element Number

410100 30001 032197 040197 25000

410100 30456 032697 041597 50000
410100 30467 032697 032697 25000
DRILL DOWN - DOCUMENT
Bethlehem Steel
Date: 032697 Invoice No: beth230

Date Qty Description Price Value

030197 50 SteelBeam-FE456 $100 $50,000

Sub Total $50,000

Sales Tax $0
Total Due 042597 $50,000
EARNED VALUE ANALYSIS

25%

% Complete % Remaining
INFORMATION SYSTEMS
Structure/Dates Costs/Revenues/Payments
- List Edit Goto View Extras Settings System Help

W BS elements Act. Network CCenter Cost Element Actual Costs

P.1234.1000 10 6004056 1000 400000 10,000.00

ALV
P.1234.1000 20 6007843 1000 420000 12,000.00

P.1234.1000 30 6009977 1000 450000 23,000.00

*1000 10 1000 45,000.00

P.1234.1000 20 6003433 1200 600000 30,000.00

P.1234.1000 30 6005678 1200 240000 36.000,00

*1200 1200 620000 66,000.00

**P.1234.1000 111,000.00

10 1200 24,000.00 20,000.00

4731 10 COPC-FINI-2 1200 40,000.00 36,000.00

4745 10 COPC-CONFIG-1 36,000.00

Capacities Project summarization

Profitability Analysis
Information Profit Center Accounting
SAP-EIS
Systems

Progress
Progress analysis
analysis Order report Business
Business Information
Information
Reservations Warehouse (BW)
Reservations
Purchase
Purchase requisitions
requisitions
Purchase
Purchase orders
orders
Stock/requirements
Stock/requirements list
list
QUESTIONS
THANK
YOU