SAP Project System User Manual

INDEX
1. Overview..................................................................................................................... 3
2. Project....................................................................................................................... 5
2.1 Create project .................................................................................................... 5
2.2 Create Sub-projects ...................................................................................................... 8
2.3 Create Activities .................................................................................... 10
2.4 Attaching milestones................................................................................................... 13
2.5 Material Planning 17
3. Budgeting.................................................................................................................. 17
3.1 Original Budget................................................................................................. 18
3.2 Supplement Budget ........................................................................................... 19
3.3 Returns in Project.............................................................................................. 20
3.4 Transfers from project....................................................................................... 21
3.5 Report for budget updates................................................................................. 22
4. Scheduling................................................................................................................. 23
5. Project Release.......................................................................................................... 23

6. PRs and Reservations....................................................................................... 25

6.1 Purchase requisition.......................................................................................... 26
6.2 Reservations for Project .................................................................................... 27
7. Project Execution.................................................................................................. 29
7.1 Activity Confirmations & Milestones achievement ......................................... 29
7.2 Project Progress ................................................................................................ 33
7.2.1 Project %age of Completion ..................................................................... 33
7.2.2 Project Financial Progress......................................................................... 37
7.2.3 Vendor Deployment Chart 43
7.3 Technical completion of project activities........................................................ 45
7.4 Result Analysis. 46
7.5 Project Closing.. 48

SAP Project System User Manual

1. Overview
A Project is a summary of certain business processes within a Company. A Project can be
defined as a plan distinguished by a uniqueness of its conditions. These conditions include clear
goals and objectives, and restrictions such as time, money and personnel resources.
The realization of a project involves many phases. Large project requires a high degree of
precise
planning and coordination. During the initial phase of process, dates must be defined, resources
must be available and financing must be provided.
A clearly and precisely structured project is the basis for planning monitoring and controlling of
projects.
SAP PS is a Project management tool which supports in all phases of the project. The high
degree of integration between SAP PS and other SAP functions eg. Materials Management,
Sales, Production, Finance, Controlling, Human Resources ensures that the required business
processes can run quickly and efficiently in SAP PS.
SAP PS provides the structures that we can use to model and analyze the projects flexibly.
We can plan and monitor dates, costs, revenues, budgets, resources, materials and so on in
these structures using the relevant tools and reports from SAP PS.
The Project Systems module tracks the Project related activities for plants in an organization.
This facilitates in monitoring the entire process starting from the inception of the project to
capitalization of the Asset constructed.
The Document covers the detailed use of SAP PS module vis--vis the requirements of Firepro.
It covers the entire cycle, from the Creation of a Project to the closure of the same. The broad
steps

in a Project, as applicable for Firepro, as mapped in SAP shall be:

.. Creation of Project
.. Creation of Sub-projects under the Project
.. Assigning of Planned Budget per Sub-project
.. Creation of Network and activities
.. BOM transfer to project and tracking the history of changes made to a BoM
.. Generation of Material requirements and Purchase requisition for externally procured items/
services
.. Assigning of Materials to be consumed during the course of the project
w.r.t the Activities
.. Completion of Activities
.. Confirmation of activities to complete the milestones and release of
Billing blocks from billing plans
.. Closing of Project

2. Project
2.1 Create project

T-code: CJ20N
In the project builder screen, choose create and then click on project.

Enter the project definition, description, choose a project profile and enter.

2.2 Create Sub-project(S)

Click on the WBS Element Overview button on the initial project screen.

Now, in the screen that appears, enter the numeric codes and description of the sub-projects as
follows :-

2.3 Activity creation

Click on the Activity Overview button on the sub-project initial screen.

Now, in the screen that appears, click on the Ext processing tab, and enter the activity
description and tick the SE radio-button as follows :-

Press Enter ; a service-specification screen appears and details are to be filled as follows :-

2.4 Milestone creation

First, create an activity for attaching milestones.

Next, go to the said activity and click on the Milestone Overview button :-

The following screen appears, where the milestones are to be defined :-

For every milestone, Percentage Of Completion and Invoice percentage data are to be inserted,
and the radio-buttons for trend analysis, progress analysis and Sales document date are to be
ticked as follows :-

2.5 Material Planning

BoM transfer and

change-history.doc

3. Budgeting
The Budget is the approved cost limit of the project.

It can differ from the project cost planning. Whereas the project costs need to be estimated as
accurately as possible during the planning phase, the funds are predetermined as a budget in the
approval phase. The budget is the limit set by management for project costs over a certain period
of time.

3.1 Original Budget

We define the budget of the project by T Code CJ30.

3.2 Supplement Budget

Tcode CJ36

We can also use CJ37 to supplement one whole project.

3.3 Returns in Project

We use T Code CJ38 to return the budget allocated to our project.

4.4 Transfers from Project

We can transfer the budget from one WBS element to other
T Code : CJ34.

3.5 Report for Budget updates

We can see the budget updates for a project by S_ALR_87013560.

4. Scheduling

5. Project Release
Tcode CJ20N
Open the project and expand it. Individual activities can be released separately or the whole
project can be released at once.
Select the activity to be released, go to edit->status->release. Or, choose the project definition
and then go to edit->status->release.

PRs are created when activities are released.

6. PRs and Reservations

Purchase Requisitions for projects can be viewed using Tcode ME5J ; material-reservations for
projects can be viewed using Tcode MB25.
6.1 Purchase Requisitions in ME5J

6.2 Reservations in MB25

7. Project Execution
7.1. Activity confirmations and milestone achievement
T Code : CJ20N
Select the activity and go to EDITActivityconfirm.

The confirmation screen appears as follows :-

Post actual dates for only those activities for which you wish to remove the billing blocks.

7.2 Project Progress

7.2.1 Project status and percentage of completion
We can see the project progress report through Tcodes CN41N and ZPPR.
This report shows the actual status of each activity, milestone, summarization at WBS and finally
at project level. The latter report has been developed as per Firepros requirement.
.
The different reports are as follows :-

ZPROJECT_PROGRESS_REPORT :- [ Tcode ZPPR ]

CN41N :-

7.2.2 Project financial progress

We can see the detailed budget-report of the project using T Code
S_ALR_87013558
This gives the actual/commitment/rem-ord-plan/assigned budgets in detail.

Tcode S_ALR_87013542 gives detailed cost-reports based on individual cost-elements or costelement groups.

Only revenue cost elements :-

7.2.3 Vendor Deployment Chart :- [Tcode ZDCH]

This report enlists all the projects in which a particular Contractor/Subcontractor is engaged,
and also displays the percentage of work completed by the same entity in the different
projects.

7.3 Technical completion of project activities

All the activities in the projects should be confirmed as and when appropriate. Once these
activities are complete in all respects, they should be set to Technically Complete in CJ20N.

7.4 Result Analysis

RA is done in order to calculate WIP (Work in Process) . The method employed in the SAP
system is Percentage of Completion based on costs ; this is as per Firepros business process.
Tcode KKA2

The output looks like the following :-

7.5 Project Closing

After all the activities are confirmed fully and set to the status Technically Complete, the
respective activities as well as the corresponding networks should be set to the status CLSD
i.e. Closed. Thereafter, no costs can be booked against those particular activities/networks.
Thereafter, the relevant sub-projects and ultimately, the project itself, should be Closed.
The menu path in each case is the same :CJ20N screen > Edit > Status > Close > Set.
This should be done after clicking on the relevant activity/network/sub-project/project.