SAP PROJECT SYSTEMS BRIEF OVERVIEW

ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) integrates internal and
external management information across an entire organization
ERP systems includes the following characteristics:
An integrated system that operates in real time
A common database, which supports all applications.
A consistent look and feel throughout each module.
Installation of the system without data integration by the
Information Technology (IT) department.

ERP
ERP system in market.
SAP
PeopleSoft Enterprise
Siebel
Oracle Apps
Quadra
Aurigo

WHAT IS SAP

Materials
Costs

Revenues

Resources

Island Solutions

SAP

Different Modules in SAP

SAP - Systems, Applications and Products in Data Processing
SAP Go live in Brigade was on 4th April 2008
1. PS Project System
2. MM Materials Management
3. FI CO - Finance and Accounting
4. SD - Sales and Distribution
5. CS Customer Services
6. RE Real Estate
7. QM Quality Management
8. BIW Business Information Warehouse
9. DMS Document management System

WHAT IS SAP PROJECT SYSTEM

SAP Project System Module:
Maintains data relating to the project structure, e.g. WBS (Work
Breakdown Structure) elements, activities and networks.

Provides extensive functionality to manage project management

tasks of different project types.
Provides constant access to data in all the departments involved
in the project.
Integrates to other modules and allows you plan, execute, and
account for projects as part of your normal commercial
procedures.

PROJECT SYSTEM
Controlling Area
Company Code
Business Area
Profit Center
Plant
Cost Center

Project Definition
WBS Elements
Networks

Profit Center
Business Area
Plant

Activities
Internally Processed

Externally Processed

Service

Plant
Work Center
Purchasing Organization
Purchasing group

Purchasing Organization
Purchasing group
Service master record

Material Components
Purchasing Organization
Purchasing group
Plant
Storage Location

KEY FUNCTIONS PROJECT SYSTEM (PS)

Setup

Plan

Execute

Close

Create
project
definition

Plan
revenues and
costs

Manage
costs and
revenues

Make final
settlements

Use WBS
standard
templates

Plan dates
and
resources

Manage time
recording

Close the
project

Define WBS
elements

Plan
materials and
services

Manage
resources

Define
networks &
activities

Manage
materials and
services
Manage
period-end
closing
Reporting and analysis

PROJECT MASTER DATA

Project Definition
Identifier, SAP Org Framework, Start
& Finish
Work Breakdown Structure
Hierarchy model of the Project
The lowest chunk of work that cannot
be divided further is called work
package.
Network
Sequential structure showing
activities
Activity
Component of process with duration,
start and finish date
Processed w/o interruption, incurring
costs, resources are required for
execution
Milestones

Project Definition

WBS Elements

Networks

Network Activities

Module Map: PS integration points with other modules

G/L accounts
Assets
Revenues
Expenses

Distribution
Assessment
Cost centers
Cost elements
Profit centers
Resource rates
Overhead costs
Cost of Sales
Activity types
CO versions

FI

Materials
BOM
Vendor master
Service master
Standard service catalog
Service model specifications
Purchase requisition

Purchase order
Stock transfer
Contracts
Purchasing Info Records
Invoice verification
MRP

MM

PS
CO

SD

PM
Asset
Master Record
Equipment
Master Data

RE
Mgt. master
Data

Customer master
Inquiry
Quotation
Order
Billing request
Billing

TERMINOLOGIES IN SAP

Profit Center
Plant
Work Breakdown Structure (WBS)
Purchase Organization
Purchase Group
Cost Center
Work Center
Network
G L Account
Authorization
11

SAP - PS

29-Jul-11

TERMINOLOGIES IN SAP

FICO
TECO
Transaction Code
Budget
Cost Plan
Activity Confirmation
WBS/Activity Release
Purchase Order
Purchase Requisition
Movement Types
12

TOPICS COVERED

Project Structure
Creation of PRs Service and Material
Cost planning
Budgeting
Selection of Materials
Viewing reports

PROJECT STRUCTURE

Every Project has a project definition (e.g. BE/GW/01)

Plant
Profit Centre
Standard Template of WBS elements .
Requisition for creating new project has to be forwarded to the PS core team

SAP - PS

PROJECT STRUCTURE

29-Jul-11

Project Definition
Brigade Rubix

Business Dev

Legal

Engineering

Liaison

Plumbing

Civil

Electrical

Structural Glazing

Sub Structure

Super Structure

Finishing
Cement Proc

Br. Work

RCC

Activity

1St Floor
2nd Floor
3rd Floor
4th Floor

Network

Ex. Plaster

Tiling
Tile Proc

Tile Work

S
15

PROJECT STRUCTURE
Project
Definition

BE/RB/01

WBS level 1

BE/RB/01.01

BE/RB/01.01.01

WBS Level 2

WBS Level 2

WBS Level 2

BE/RB/01.01.02.01

WBS Level 3

WBS Level 3

WBS Level 3

BE/RB/01.01.02.03.01

WBS Level 4
16

PROJECT BUILDER - SCREENSHOT

SAP - PS

29-Jul-11

TERMINOLOGIES IN SAP
Plant From a materials-management view, a plant can
be defined as a location that holds valuated stock
Purchasing Organization A purchasing organization is simply defined as a
group of purchasing activity that is associated with
all or a specific part of the enterprise.

18

SAP - PS

29-Jul-11

TERMINOLOGIES IN SAP
Plant From a materials-management view, a plant can
be defined as a location that holds valuated stock
Purchasing Organization A purchasing organization is simply defined as a
group of purchasing activity that is associated with
all or a specific part of the enterprise.

19

SAP - PS

29-Jul-11

TERMINOLOGIES IN SAP
Purchasing Groups The purchasing group can be defined as a person or
group of people dealing with a certain material or
group of materials purchased by through the
purchasing organization.
Profit Center
A profit center is a management-oriented
organizational unit used for internal controlling
20

WBS FOR SALE ORDER CONSUMPTION

Consumption towards sale of raw materials WBS under Civil works for Sale
Order

WBS FOR FREE ISSUE CONSUMPTION

Consumption WBS for Civil Works

WBS FOR FREE ISSUE CONSUMPTION

Consumption WBS for Electrical Works

BUSINESS PROCESS FOR PURCHASED

MATERIAL
Purchase
Requisition

Requirement for Material

Request For

Payment to vendor

Quotation
Invoice
verification
Goods issue
to project

Goods receipt
at project

Material
Cycle

Receiving
Quotations

Vendor
Finalization

Purchase order
monitoring

Release of
purchase order

PURCHASE REQUISITIONS - PRS

Types of PRs

Material PRs or Manual PRs ME51N

Service PRs or Network PRs CJ20/CJ20n

MATERIAL PRS

Material PRs are the indents we raise for raw materials.

These are Stock items.
Material is accepted (MIGO) and moves into stock with a batch being
created.
The cost of the material is booked in the project only after the
contractor raises the bill.
Consumption of the raw materials is done by QS in SAP after which the
cost gets booked in the project.

STEPS TO CREATE MANUAL PR

Transaction Codes
ME51n-(Creation)
ME52n(Change)
ME53n ( Display)

Select raw material ( Material Type ZROH)

Type the quantity
Plant
Delivery date
Estimate price
Purchase Org BGSP
Purchase Group B01
Purchase Requisitioner (type the name of the person who raises the PR)
Item text: Enter the product specification

NETWORK PRS

Network PRs are requisition we raise for Services.

All Service PRs are raised through network and get converted into work
orders.
All network PRs are non-stock items.
The cost is booked into the project as soon as the material is accepted in
the system.
Raw materials PRs are also sometimes raised through network, some of
which are listed below

All high value items like lifts, panel boards, pumps, DG sets etc.
Materials which are not transferred to or fixed by the contractor. E.g: Interior
items like tables, chairs, soft furnishings, electrical fixtures etc.
Network PRs for raw materials has to be released only with approval from
Project Head.

STEPS TO CREATE SERVICE/ NETWORK PRS

T-codes CJ20 and CJ20n

Select the appropriate WBS.
All civil works should be under civil WBS/plumbing works should be under
plumbing WBS ( including civil works related to plumbing works).
Create activity
Attaching the right materials under activity
Release of PRs.

EXAMPLE FOR ATTACHING SERVICE COMPONENT

(CONT)
If the contract is finalized as combined rate for material and
labour, then only one material has to be attached, which is as
shown below:
A) PCC 1:2: 4 or PCC 1:2:4 (w/o BOM)

MATERIAL MODULE GROUPING OF MATERIALS

PURCHASING ORGANIZATION

BGMP - Material Procurement

BGSP -Service Procurement

PURCHASING GROUP

B01 HO-raw materials

E01 Electrical raw materials
S01 - Site raw materials
B02 HO- Service procurement
SO2 Site Service procurement
E02 Electrical -Service procurement
B03 -Imports
B04 - IT
B05- Assets

ZROH MATERIALS

ZROH This material type represents raw materials or materials issued by

Brigade to the contractor.

MM60 To find the list of ZROH.

LIST OF RAW MATERIAL GROUPS

ADMIN
AM
BM
CM
CP
EM
FF
FT
GH
GP
GR
GS
HA
IT
ME
MI
PC
PF
PM
PT
RM
SF
ST
SW
TL
TM

Admin Materials
Aluminum Materials
Building Materials
Cement
Concrete Products
Electrical Materials
Furniture & Fixtures
Fire, Safety Product
Glass and Hardware M
Gym & Play Equipment
Grills & Rolling Shu
Granite, Marble and
Home Applicances
IT Materials
Machinery & Equipmen
Measuring Instrument
Paint Materials/Chem
PVC & FRP Products
Plumbing Materials
Paint Materials
Ready Mix Concrete
Sanitary ware Fittin
Steel
Sanitary ware
Tiles
Timber Material

SERVICE MATERIALS

To find the list of service materials T-code is MM60

Services materials are used for raising PRs for issuing Work Orders to
Contractors.

SERVICE MATERIAL TYPES

ZCIW - Brigade - Civil Works

ZELE Brigade- Electrical Works

ZFFW Brigade-Fire Fight. Works

ZGEN Brigade- Generic Material

ZPLW Brigade - Plumbing Works

ZWER Brigade Admin Materials

EXAMPLE FOR SELECTING SERVICE MATERIALS

Item: PCC 1: 2: 4
There are 2 components
Contractor supplied Materials
Labour
If the contract is finalized with separate rates for material
and labour, then 2 materials should be attached as
below
A)Contractor material for PCC (CW002001-1) - for VAT
component.
B) PCC 1: 2:4 (CW002005) if there is free issue
(cement in this case) - for labour services or
C) PCC 1: 2: 4 ( w/o BOM) (CW002005/1), if there is no
free issue

MM60 TRANSACTION- SNAPSHOT

Enter Plant

Enter Material Type - ZROH for

raw materials and exclude
ZROH for Service materials

COST PLANNING AND BUDGETING

Cost Planning Create/ Change CJ40
Budgeting CJ30

REPORTS

ME5J- Display of Purchase Requisitions network

ME5A- Display of Purchase Requisitions ( network and Material PRs
ZPSIOR Indented vs Ordered vs Received
ZPSRAB RA Bill Tracking Report
MM60 Material List
S_ALR_87013557 - Budget/Actual/Variance

Thank You