SAP Project SystemOverview

Mario FranzProject SystemSAP Suite Solution Management

28.04.2008

Introduction

Project System is part of SAPssolution for Project and PortfolioManagement. Project Systemhelps you manage the projectthrough its entire life cycle, fromsetting up a structure, to drawingup detailed plans, to execute andcompleting the project.

Because of its tight integrationinto financial and logistic coreenterprise processes ProjectSystem can especially be usedfor large and complex projectssuch as construction, production,maintenance, investment, orcosts projects in all industries.

Project Builder and Project Planning Board

Project Structuring

In Project System you can use WorkBreakdown Structures (WBS) andNetworks to structure your projectshierarchical and/or using networktechniques. Milestones anddocuments help you to mark projectevents of particular interest anddocument your project appropriate.

You can set up project structuresmanually or based on templates.Project structures can also becreated automatically from salesdocuments or cProjects projects forexample.

Using access control lists, partnerdata and persons responsible youcan easily define authorizations andresponsibilities for project elements.

Graphical Display of WBS and Networks

Project Scheduling

Project System provide various dateplanning functions. Flexible schedulingtechniques can be used to calculateearliest/latest dates, floats or criticalpaths within projects.

Dependent dates, such as requirementdates of materials, services orcapacities, billing dates or periods ofplanned costs can automatically bederived from planned dates.

Comparing forecasted, planned andactual dates you can easily identifydeviations from your project plan.

Additional tools such as ProgressTracking, Subnetwork Monitor,Simulations or Milestone TrendAnalysis enables you to manage thedates of your projects efficiently. Progress Tracking and Project Planning Board

Capacity and Workforce Planning

Networks in Project System enablesyou to plan, analyze and level workcenter based capacity requirementsof your project.

You can use simulation versions forwhat-If analysis of your projectschedules and capacity requirements.

For detailed workforce planning youcan assign organizational units orindividual personel resources to workpackages of your project.

Because of the tight integration ofProject System to Human CapitalManagement you can directly accessthe availability or even qualificationsof employes if required duringworkfore planning.

Capacity Leveling and Workforce Planning

Material and External Service Planning

If you assign material components toNetworks you can plan materialrequirements based on your projectschedule, check the materialavailability and trigger the materialprocurement and delivery later on.

Functions such as project specific billsof material, bill of material transfer, theopen catalog interface or integrationsto Integrated Product and ProcessEngineering (iPPE) helps you to planmaterials efficiently in Project System.

In order to plan external services youcan directly use purchasing inforecords, outline agreements or servicespecifications from MaterialsManagement in Project System. Theopen catalog interface allows you toselect services also from internal orexternal service catalogs. Material Components in the Project Builderand Service Specification

Financial Planning

You can use various techniques forplanning costs and revenues in ProjectSystem depending on your financialplanning requirements.

So the cost planning capabilities forexample range from overall costplanning to Easy Cost Planning ordetailed network costing.

Sales Pricing helps you to createquotations for customer projects basedon the planned costs.

Project milestones can be used to derivebilling dates automatically from theproject schedule.

Project System cash management alsoallows you to plan and monitor incomingand outgoing payments for projects.

Overall Cost Planning and Easy Cost Planning

Budget Management

Budget is the approved coststructure for a project. You canallocate budget to projects inInvestment Management ordirectly in Project System.

Budgets can be distributedhierarchically within the projectstructure. If required you cansuccessively release budgetsand post updates, such asbudget supplements or returns.

Budget availability controlenables you to control costsactively by issuing warnings anderror messages when tolerancelimits of the budget are exceededbecause of assigned values.

Allocation and Mass Release of Project Budgets

Confirmations

In the execution phase of projectsconfirmations can be used todocument the actual workperformed and the progress ofindividual work packages.

Using confirmations you can alsoenter forecast information such asthe remaining work or duration.

Because of confirmations thedates and capacity requirementsof your project will be adapted andactual costs are postedautomatically to the project.

Project System provides variousconfirmation options includingindividual and collectiveconfirmations, integration to theCross Application Time Sheet(CATS) or external interfaces. CATS and Individual Confirmation

Project Related Procurement

Reservations or purchaserequisitions can automatically becreated for a project based on yourmaterial and external serviceplanning.

You can easily track all follow up in-house production and purchasingprocesses related to your project forexample using the ProMan orProgress Tracking.

Commitments and actual costsbecause of purchasing documents,material movements or invoices areautomatically posted to the project.

Valuated project stock helps you tomanage and valuate material in yourproject independently if required.

ProMan and Progress Tracking

Cost Integration and Billing

Costs actually incurred are posteddirectly to your project by accountassignment of documents inFinanical Accounting, Controllingor Materials Management forexample.

Using Execution Services you canalso directly post variousdocuments in Easy Cost Planningbased on planned values.

Costs of orders assigned to yourproject can be analyzed in projectreporting and will be checkedagainst the project budget.

Milestone billing and resourcerelated billing can be used incustomer projects to control billingprocesses based on the projectprogress. Execution Services and Resource Related Billing

Claim Management and Workflows

Project System supports ClaimManagement using a notification typecalled "claim". You can use claims todocument variances from your projectplan, name the person responsible,and initiate follow-up activities.

Costs that are caused by a deviationcan be planned using claims andintegrated into your project plan.

Standard workflows can be used inClaim Management for approvalprocesses.

Other standard workflows areavailable in Project System in order tonotify persons responsible in case ofdeviations affecting purchase ordersor project capacity and date planning. Workflow because of Network Changes Affecting

Purchase Orders and Claim Management

Project Progress

Milestone trend analysis andProgress Tracking can be used toeffectively monitor the projectschedule.

Progress Analysis in ProjectSystem provides several methodsand interfaces to derive andanalyze the POC and other projectprogress values of your project orindividual work packages.

Using the Progress AnalysisWorkbench you can easily monitorand enter all progress related datafor several projectssimultaneously.

Forecast values can be calculatedor entered manually using theForecast Workbench for example. Progress Analysis Workbench and

Milestone Trend Analysis

Period-End Closing

You can perform various period-end closing procedures on yourproject to ensure that all projectdata belonging to a period isdetermined and available forpurposes of enterprise control.

Typical period-end closingprocedures for projects are:

Overhead calculationTemplate allocationProject interest calculationProgress and results analysisProject related incoming orderanalysisSettlement

You can use the ScheduleManager to easily plan, carry outand control your period-endclosing procedures. Overhead Calculation and Schedule Manager

Project Reporting

Project System provides variousstandard reports for realtimereporting of financial and logisticproject data as well as predefined BIcontent.

Using report-report interfaces youcan directly navigate from one reportto other more detailed reports.

You can also define your own reportsand queries depending on yourreporting requirements.

Project System reports include:Project and individual structure reportsResource and material reportsHierarchy, cost element and line itemreportsClaim and project progress reports Hierarchy Report and Project Structure Overview

Interfaces

Project System provides several optionsto exchange project data with externalsystems. For example you can usevarious BAPIs to export, import ormaintain project data.

Based on the BAPI technology theOpenPS interface allows you tointerchange project data with MicrsosoftProject Client based on predefinedmapping rules.

As of SAP ERP 6.0 EnhancementPackage 3 more than 50 EnterpriseServices are available to interchangeproject data with other systems too.More information on Enterprise Servicesfor Projects can be found on theEnterprise Services Workplace:www.sdn.sap.com/irj/sdn/esworkplace

BAPI Explorer and Enterprise Services Workplace