SAP PS (Project System) Tutorial -Learn SAP PS Online

SAP PS (Project System) is a project management tool that assists you throughout all the phases of your project. Through the high level of integration between SAP PS and other SAP functions, such as Logistics, Accounting, and Human Resources, SAP Project system ensures that the necessary business processes are handled quickly and efficiently.

This Project Management/SAP Project System (PS) supports a project/product life cycle, typical in an Engineer-to-Order, Project Centric business and/or organizations facing frequent new products introduction. The application exercises are designed to demonstrate and apply Project Management concepts and processes using SAP PS as the enabling technology. PS integrates SAP PS, SAP SD, SAP CO, SAP MM and SAP HR in a large projects context.

The below SAP PS Tutorial and training gives basic introduction about SAP PS system, and different conditions and major Characteristics and functions of the project,

SAP PS Tutorial

What is a Project? 

A temporary endeavour undertaken to create a unique product or service, as a result that a company carries out, characterized by the uniqueness of its general conditions and constraints.  The Project is nothing but complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.

• These conditions include,
• Objectives of the project
• Time frame for executing it
• Financial and capacity-related restrictions

SAP Projects (SAP PS) usually involve cross departmental and highly complex business processes. Projects are often cost-intensive, time consuming, and of strategic importance.

Major Characteristics of SAP Projects (SAP PS) include,

• Has an established objective.
• Has a defined life span with a beginning and an end?
• Typically requires across-the-organizational participation.
• Involves doing something never been done before.
• Has specific time, cost, and performance requirements 

Project Types

Internal Projects: Projects financed internally within the Organization for their New, Expansions, Overheads, R&D and so on. These project types are:

Overhead Cost Projects (Ex: Maintenance, shutdown and R&D projects)

Capital Investment Projects (Ex: Building a factory, Expanding existing facility) 

External Projects: Projects financed from external organizations or Agencies and creating revenues to the executing/undertaking Organization.

Customer Projects (Ex: Building a Cell Tower, building roads and Bridges etc)

Direct Projects – Are used to plan and manage reimbursable work for customers within and outside of the organization. Planning is performed on network activities/elements. Exist at Echelon II and Echelon III. Sales Order present 

Overhead (Non-Statistical) Projects – Are used to plan for and manage work funded with overhead – planning is performed on network activities/elements. Exist at Echelon II and Echelon III. No Sales Order. 

Service Center Projects – Are used as cost collectors for Service Centers and other Cost Redistribution Accounts (CRAs) – planning is performed on network activities/elements. Exist at Echelon II and Echelon III. No Sales Order

Statistical Overhead Projects – Are 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. Exist at Echelon II and Echelon III. No Sales Order

Budget Structures – Are used at Echelon II commands to support the Planning, Programming, Budgeting, and Execution System (PPBES) and to support the creation of Budget Exhibits. These structures will also be used to pass funds to field activities and prime contractors/OEMs and to capture Expense Operating Budget (EOB) employee labour hours/costs. No networks are included in this structure. Exist at Echelon II only. 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. Exist at Echelon II and Echelon III. No Sales Order

SAP Project Functions

• Define the purpose or product to be completed
• Organize the work to be accomplished
• Separate the work into smaller, manageable pieces and activities
• Provide a framework on which to plan the project requirements, using both internal and external resources
• Capture actual performance data on the same framework, which can be used for comparisons
• Provide a consistent format for tracking and reporting project information for management decision making
• Provide a permanent record of project performance which can be analyzed for future performance improvements

SAP PS (Project System) Integration with other SAP modules

Project System Org. Structure Elements

The SAP Project System (PS) has no organizational structures of its own. Various elements already defined in Accounting and Logistics will be used in Projects. These elements will be assigned to various Project Structure elements. Required elements are: 

• Controlling Area
• Business Area if defined
• Company Code
• Profit Centre
• Plant
• Currency
• Technical Location/Equipment
• Responsible Cost Centre
• Investment Program
• Joint Venture
• Jurisdiction Code
• Purchase Organization
• Purchase Group
• Storage Location 

What is a Work Breakdown Structure? 

Serves as a model of the project that shows the project deliverable in hierarchical form

Thereby represents the structure organization of the project and provides a phase, function, or product-oriented description of the project

Outlines the project in manageable sections

Individual elements of the WBS are called WBS elements

Depending upon the project phase, you can break down the WBS elements further

The WBS is the operative basis for:

• Cost
• Revenue
• Payment planning
• Time scheduling
• Budget allocation in projects 

Project Life Cycle Definition

In SAP Project Systems (PS) which Project can be divided into phases to provide better management control with appropriate links to the ongoing operations of the performing organizations Completion and approval of one or more deliverables (Scope definition) characterizes a project phase some deliverables can correspond to project management process groups (Initiating, Planning, Executing, Monitoring and Controlling, Closing), others are the end products or components of end products for which the project was conceived.

Description of Process Groups

• Initiating processes include actions to begin projects and project phases
• Planning processes include devising and maintaining a workable scheme to ensure that the project meets its scope, time, and cost goals as well as organizational needs
• Executing processes include coordinating people and other resources to carry out the project plans and produce the deliverables of the project or phase. These deliverable is a product or service produced or provided as part of a project
• Monitoring and controlling processes measure progress toward achieving project goals, monitor deviation from plans, and take corrective action to match progress with plans and customer expectations
• Closing processes include formalizing acceptance of the project or phase and bringing it to an orderly end

SAP PS Tutorial for Beginners

Tutorial :  Introduction

Tutorial : What is a Project Charter and Why is it important?

Tutorial : Step by step configuration

SAP PS Tutorial (Project System) for beginners to explain what SAP PS module, and it gives a brief understanding of SAP PS module and important and concepts are explained above post. I will be adding more posts in SAP PS Tutorial, so please bookmark the post for future reference too.