PROJECT SYSTEM

Project System (PS) Module is all about planning, executing, monitoring and controlling projects throughout its
lifecycle. Basically it starts with creation of Project definition (along with WBS element, Networks and Activities).
P.S is a management tool which integrates with all modules of SAP
Project:
Projects are having unique characteristics which should be achieved with in a given point of time with
proper cost. They are subject to certain quality requirements.
Project Types:
Investment project (Asset)
Customer project (Revenue)
Project System organization structure.

Project definition
The project definition contains dates and organizational information that are binding for the entire project.
Project Definition is identified by project coding key and description
WBS (Work Breakdown Structure)
The work breakdown structure (WBS) is the basis for the organization and coordination of a project. It is the
functional basis for further planning steps in a project, for example, for process planning, cost planning,
scheduling, capacity planning or costing, as well as project control. It gives you a clear picture of the project and
facilitates the coordination and implementation of the project from a management standpoint. It shows the work
involved in a project.
The main objectives of the WBS are to split the project into manageable units, define basic dates, and
determine its costs.
The WBS divides the project step-by-step into structure elements. The elements are called work breakdown
structure elements (WBS elements) in the Project System. Each WBS element is the result of this splitting.
Level 1 WBS element should bear the same coding key of project definition.
Network
A network represents the flow of a project or of a task within a project. It is an object containing instructions on how
to perform tasks in a specific way, in a specific order, and in a specific time period.

Activities

Activities are the small work packages of a project. Activities can be also be subdivided into
smaller work packages called Activity elements. They have a duration.
They have a defined start and a defined finish.
They are processed without interruption.
Resources are needed to execute them.
They incur costs.

It divided into four elements

Internally processed activities [Activities done with in the company.)

Externally processed activities (Activities done outside the company.)
General costs activities
Service processed activities [it contains more technical specification]

WBS OPERATIONAL INDICATORS

It contains 3 elements
1. Planning Element
2. Account Assignment
3. Billing Element

1.Planning Element

If the Planning element indicator has been set in plan profile of your project, An element of a work
breakdown structure for which costs can be planned.

2.Account Assignment
An element in a work breakdown structure (WBS) to which the following postings can be made:

Actual postings

Commitment postings

3.Billing element
An element in a work breakdown structure (WBS) in which billing can take place.
Revenues can be posted in the billing element.

.
THREE TYPES OF GRAPHICS IN PS
1. Hierarchy graphic
2. network graphic
3. gan shott
hierarchy graphic
It Shows the hierarchy of the work down structure
WBS
LEVEL 1
WBS

WBS 2

WBS 3

WBS 2

WBS 3

Network graphic
List of activity of project link and relation of project .

FS

FS

Gan Shott Graphic

It is over Scheduling chart, it will used to display complete project plan .we can also able to see
project cost in gan shott graphic.

Cost Planning
1. WBS Planning
2. Network costing
1. WBS Planning
Direct input cost
Planed cost

2.Network costing
To assign costing to different activates and
To different cost centers

PROJECT SYSTEM PROCESS FLOW

Here we will give the full flowchart to how to define the project and what are the steps involved in the
system. When we are doing the following steps will be involved

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Create project
plan cost and material cost
scheduling [ before scheduling we have link relationship activities ]
budgeting
project release
process procurement [pr-po-gr]
activities confirmation
settlement
teco
clsd