1. Question 1. What Is Sap-project System?

Answer :
Project System is a Project management tool from SAP. Which has a very good integration
with the other modules of SAP like FI, CO, MM, SD, PP, HR, DMS. This module basically
co-ordinates and controls all the phases of a project, in direct co-ordination with purchasing
and controlling, from quotation to design and approval, to resource management and cost
settlement. Also beside the integration with the SAP module this Project system also has an
integration with the third party popular Project management tools like Microsoft Projects and
Primavera.
2. Question 2. Define Project Definition?
Answer :
Project definition is a binding framework in SAP for all organizational element created within
a project (e.g. WBS and Networks). Data like company code, plant and person responsible
can be defaulted into WBS if initially entered in the project definition. Such data can also be
defaulted into the project definition via project profile which will then default it to subsequent
WBS.

SAP BI Interview Questions

3. Question 3. Explain Wbs?
Answer :
Work Breakdown Structure (WBS) is a model of a project, and shows the project activities to
be fulfilled in hierarchical form. It forms the operative basis for planning costs, revenues, and
payments, as well as for scheduling, and budgeting. It also shows the responsibility.
One definition from the Project Management Institute is as follows:
o The Work Breakdown Structure (WBS) is a key planning tool used to define a
project in terms of its deliverables while providing a method for breaking these
deliverables into meaningful work efforts.
o 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.
o It provides a clear picture of the project and facilitates the coordination and
implementation of the project from a management standpoint.
o It shows the work involved in a project.
o Work Breakdown Structures (WBS) is created under an object known as Project
definition.
4. Question 4. What Is A Network?
Answer :
A Network in Project System module is used to represent the flow of activities or tasks within
a project. During the life cycle of a project, networks are used as a basis for planning,
analyzing, controlling and monitoring schedules, dates and resources.
A Network header contains all the project activities and can be used to default certain values
for the entire network. Some of these fields include assignment to WBS, profit center, basic
start and finish dates of the network as well as indicators for scheduling (forwards,
backwards).
 SAP BI Tutorial
5. Question 5. What Is Standard Project Structure?
Answer :
Standard structures in Project System can be found in Standard project definitions and in
Standard WBS These standard structures can be used as a template to standardize project
management.
This brings about the advantage of Making the processing of projects more transparent
(everyone create an operative project from a standard project), Enabling comparison of
projects with similar structures, Facilitates project controlling
Standard project templates CANNOT be used to capture any actual data (e.g. costs, actual
materials used) and they serve as a quick way to create an operative project during
implementation stage. As such, it is recommended that nominated users maintain these
standard project templates at least once a year or whenever there are process changes for each
type of project.

SAP QM Interview Questions

6. Question 6. Define Project Type?
Answer :
Project type is an object that groups projects according to criteria. Authorization and security
can be done based on the project types.
7. Question 7. What Is Project Coding Mask?
Answer :
Project Coding helps display complex project numbers. They can also be used to indicate the
position of a WBS element in the project hierarchy.
We can create a mask for every key you want to use in project coding. Project Definition has
to be unique in the SAP System and also WBS Element has to be unique in the SAP System.
Project code is changeable and the hierarchy can be changed up to certain point of project
status.
Project Code has 2 parts
o Part 1: Project Identifier (Project Coding Mask)
o Part 2: Project Number (usually a serial number)
Every project begins with a Project-ID (max. 5 Characters), Using separators to distinguish
the different WBS levels. e.g.: “/”, “-“, “.” Character max. For Project Code which includes
Project ID, Project Number and all separators.

SAP QM Tutorial SAP PM Interview Questions

8. Question 8. Define Project Version?
Answer :
Project versions are used as snapshots of projects at different stages to keep track change
history.
9. Question 9. What Are The Parameters Of Project System?
Answer :
 There are several parameters to define in here at the structures level. First, its the Project
Definition (Proj. Profile), then we have the WBS Level, and then, if used, the
Network/Activity/Sub activity Level. You may include components and services. The
configuration goes into Proj. Definition, WBS and Activity profiles.

SAP MM Interview Questions

10. Question 10. What Is The Accounting And Logistical Information That Gets Defined
With A Project Definition?
Answer :
In the Project Profile, you define the Controlling area, Company Code, Business Area, Plant,
Functional Area, Profit Center and Project Currency for the project. If it is a sales project, you
can also define Sales Organization, Distribution Channel, Division and DIP Profile. In
addition, you also define the Object Class, Planning Profile, Budget Profile, Costing Sheet,
Interest Profile, Investment Profile (CAPEX), Result Analysis Key (CO-PA), Settlement
Profile and Settlement Rule Strategy. You will also define whether costs are actual or
statistical. This information is then copied to lower level WBS elements.

SAP PM Tutorial
11. Question 11. What Do Activities, Ntw, Wbs Represents?
Answer :
WBS and Networks are two structures that differ in the way in which they enable you to
structure projects and in the functions provided for them in the SAP system. For example, if
you need a hierarchical budget management function for a project, you would want to use a
WBS structure. If, in addition, you also want to do capacity planning, you would have to use
one or several networks as well. Depending on the specific requirements you may be able to
map a project only via a WBS structure, or by using only one or several networks, or a
combination of both.

SAP ABAP Interview Questions

12. Question 12. What Is The Menu Path & T. Code For Defining Special Characters For
Projects?
Answer :
It can be found at the following location: Project System >>> Structures >>> Operative
Structures >>> Work Breakdown Structures >>> Project Coding Mask >>> Define Special
Characters for Projects Transaction is OPSK .

SAP BI Interview Questions

13. Question 13. The Structure Of Ntw Is Similar To What Type Of Order?
Answer :
Maintenance order.

SAP MM Tutorial
14. Question 14. What Is The Impact Of Coding Mask On The Project And Where Is It
Created (menu Path) ?
 Answer :
Coding masks contain the sections for the external identification of projects, and they are
separated by special characters. A section consists either of numbers that are represented by
“0” characters in the coding mask, or alphanumeric characters that are represented by “X”
characters in the mask. You can store a descriptive text for each coding mask and use lock
indicators to control whether the key and the associated mask can be used for operative or
standard WBS structures. Project System >>> Structures >>> Operative Structures >>> Work
Breakdown Structures >>> Project Coding Mask >>> Define Project Coding Mask
Transaction is OPSJ .
15. Question 15. How To Set Field Status Of Wbs As Mandatory, (wbs Element, And Ntw) ?
Answer :
There are five different transactions. Project Definition, WBS Elements, Network Header,
Networks Overview and Network Details. There you will see a table with radio buttons that
indicate whether a field should be set as Input, Required (mandatory), Display, Hide. You can
also define Influence Fields and Field Groups. For Project Definition and WBS Elements:
Project System >>> Structures >>> Operative Structures >>> Work Breakdown Structures
>>> User Interface Settings >>> Define Field Selection for Work Breakdown Structures
Transactions are OPUK (Project Definition), OPUJ (WBS Elements) For Networks: Project
System >>> Structures >>> Operative Structures >>> Network >>> User Interface Settings
>>> Define Field Selection for Networks Transactions are OPUA (Header), OPUB
(Overview), OPUC (Details).

SAP FICO Interview Questions

16. Question 16. Diff Between Validation & Substitution?
Answer :
It enables to automatically change master data fields of Project Definitions, WBS Elements,
Network Headers and Activities. For example, you can automatically set the cost center 9999
for those WBS Elements into which responsible persons with number 0 to 20 have been
entered. Validation enables you carry out self-defined checks for master data fields of the
same elements. But the result of validations consists of informational messages, warnings or
error messages. For example, you can validate that projects with a specific project profile
always begin with the same key.

SAP ABAP Tutorial

17. Question 17. What Do Time Profiles Do?
Answer :
This profile is part of the “Planning Board Profile” and it determines the beginning and the
end of the evaluation and planning periods. This means that reevaluation and post evaluation
periods are defined automatically. This is how the Planning Board is displayed graphically.

SAP PI Interview Questions

18. Question 18. Where Do We Define Time Profiles? What Is Evaluation Period?
Answer :
Evaluation period is the period in which you want to control your project, and it will be
displayed in your planning board. Don’t get confused with scheduling, which is how time is
 managed in a project. Project System >>> Structures >>> Project Planning Board >>> Define
Time Profiles Transactions is OPTY .

SAP QM Interview Questions

19. Question 19. Is There Any Way By Which We Can Lock Two Specific Webs Elements
Say Overheads And Other Expenses, So That The User Cannot Release Pr?
Answer :
The easiest way would be to define the project release process in the bottom-up fashion. That
means, you will only release the activities/WBS elements that you need from time to time
during the course of the project. That way, charges won’t be accrued on a WBS element until
it’s released (so, don’t release it until it’s ready for collecting costs).

SAP FICO Tutorial

20. Question 20. How And Where Do You Control The Budget For The Project & What Is
The Menu Path?
Answer :
Through the Budget Profile, in transaction OPS9. Path is: Project System >>> Costs >>>
Budget >>> Maintain Budget Profile Among other things, you will have to define the Time
Frame (Annual or Total), Exchange Rate type, whether or not Availability Control will be
used, and the Budgeting Currency. There are additional settings in that path, such as defining
a Budget Profile for a Project Definition among others.

SAP BPC Interview Questions

21. Question 21. How Do You Control That The Project Does Not Run Over Allocated
Budget?
Answer :
You use Availability Control by defining tolerance limits, which will allow you to define by
how much you can overspend. For example, you can set the system to send you a message
when 95% of the budget has been spent, and stop al PR´s when you have reached 100% or
110% of the budget. Path is Project System >>> Costs >>> Budget >>> Maintain Budget
Profile >>> Define Tolerance Limits.
22. Question 22. What Setting Does Ntw Scheduling Contains? Where Are These Settings
Done (menu Path)?
Answer :
Control Key in transaction OPSU defines whether an activity can be confirmed, scheduled,
capacity requirements determination, costs, etc. Other important settings include Network
Types, Parameters for Network Types, Network Profiles and Control Keys. There settings are
found in the following paths: Project System >>> Structures >>> Operative Structures >>>
Network >>> Settings for Networks Project System >>> Structures >>> Operative Structures
>>> Network >>> Settings for Network Activities .

SAP PI Tutorial
23. Question 23. What Is The Organizational Structure Of Ps Module?
Answer :
 PS structure consists of Project Definition, WBS Elements and Networks. PS uses structures
from FI/CO, MM, SD, etc. There is no structure of PS but the one provided above.

SAP ASAP Interview Questions

24. Question 24. For Raising Client Billing, Is There Any Possibility Of Linking Line Items
In Sd Module With Activities / Wbs In Ps Module?
Answer :
It can be linked through DIP Profile and do Resource Related Billing for raising billing.

SAP PM Interview Questions

25. Question 25. Is There Any Way By Which We Can Stop The Network From Attaching
Further Materials After It Is Released?
Answer :
This is controlled through the change profile, which is assigned to the network profile. In the
change profile, under the Component tab, you can define the release status of the activity at
which you can create/change/delete material components.

SAP PS Tutorial
26. Question 26. Can Revenues Be Linked With Activities?
Answer :
No, it can be done at WBS level with 'Billing' operative indicator.
27. Question 27. Can Progress Be Updated In Wbs Elements?
Answer :
Yes, You can use Progress Analysis (EVA) for this.

SAP MM Interview Questions

28. Question 28. We Would Like To Compare The Planned Cost, Actual Cost & Revenue
For Line Items In Sd Module. For This As What Object Should We Consider The Line
Item In Ps Module.
Answer :
You can use Billing level WBS in PS module.

SAP BPC Tutorial

29. Question 29. In Easy Cost Planning/ Cost Models, The Resource Requirement Details
(quantity And Rate) Are Given To Get The Cost Of Each Line Item. But To Get
Planned Cost Of Each Activity, The Consultant Is Asking Us To Assign Resources
Separately Again In Activities. If We Consider The Line Items As Activities, Should We
Assign The Resources Again Or The Same In Easy Cost Planning / Cost Models Can Be
Linked To Get The Resources Assignment In A Simpler Method.
Answer :
Instead of this, you can use costing variant for Easy Cost Planning (not for the activities)

SAP PP Interview Questions

30. Question 30. Is There Any Way By Which We Can Lock Two Specific Wbs Elements
Say Overheads And Other Expenses, So That The User Cannot Release Pr?
Answer :
The easiest way would be to define the project release process in the bottom-up fashion. That
means, you will only release the activities/WBS elements that you need from time to time
during the course of the project. That way, charges won't be accrued on a WBS element until
it's released (so, don't release it until it's ready for collecting costs).
31. Question 31. How Can We Set The Options For Capacity Reports Cm01?
Answer :
This will possible depend on your config, but the options I use are:
o Settings>General>
o Tick, Cumulation of reqmts, Dyn. capacity cumul. and then select the hierarchy you
have set up.
o I then select the financial year (as we are budget driven) using Entry type A and the
start/finish of the financial year.
o I select period Month.
o Then click tick.
o I then select the work centre I require. or arm of the hierarchy.
o You can then select standard overview and also select graphs or if you need a
detailed list press that button.

S (Project Systems) Interview Questions

SAP PS (Project System) FAQ
1. What are the parameters of Project System?

There are several parameters to define in here at the structures level. First, its the Project
Definition (Proj. Profile), then we have the WBS Level, and then, if used, the
Network/Activity/Subactivity Level. You may include components and services. The
configuration goes into Proj. Definition, WBS and Activity profiles.

2. What is the accounting and Logistical information that gets defined with a Project
Definition?

In the Project Profile, you define the Controlling area, Company Code, Business Area, Plant,
Functional Area, Profit Center and Project Currency for the project. If it is a sales project, you
can also define Sales Organization, Distribution Channel, Division and DIP Profile. In addition,
you also define the Object Class, Planning Profile, Budget Profile, Costing Sheet, Interest
Profile, Investment Profile (CAPEX), Result Analysis Key (CO-PA), Settlement Profile and
Settlement Rule Strategy. You will also define whether costs are actual or statistical. This
information is then copied to lower level WBS elements.

3. What do Activities, NTW, WBS represents?

WBS and Networks are two structures that differ in the way in which they enable you to
structure projects and in the functions provided for them in the SAP system. For example, if you
need a hierarchical budget management function for a project, you would want to use a WBS
structure. If, in addition, you also want to do capacity planning, you would have to use one or
several networks as well. Depending on the specific requirements you may be able to map a
project only via a WBS structure, or by using only one or several networks, or a combination of
both.

4. What is the menu path & T. Code for defining special characters for Projects?

It can be found at the following location:

Project System >>> Structures >>> Operative Structures >>> Work Breakdown Structures >>>
Project Coding Mask >>> Define Special Characters for Projects Transaction is OPSK

5. The structure of NTW is similar to what type of order?

Maintenance order.

6. What is the impact of coding mask on the project and where is it created (menu path)?

Coding masks contain the sections for the external identification of projects, and they are
separated by special characters. A section consists either of numbers that are represented by "0"
characters in the coding mask, or alphanumeric characters that are represented by "X" characters
in the mask. You can store a descriptive text for each coding mask and use lock indicators to
control whether the key and the associated mask can be used for operative or standard WBS
structures.

Project System >>> Structures >>> Operative Structures >>> Work Breakdown Structures >>>
Project Coding Mask >>> Define Project Coding Mask
Transaction is OPSJ

7. How to set field status of WBS as mandatory, (WBS Element, NTW)?

There are five different transactions. Project Definition, WBS Elements, Network Header,
Networks Overview and Network Details. There you will see a table with radiobuttons that
indicate whether a field should be set as Input, Required (mandatory), Display, Hide. You can
also define Influence Fields and Field Groups.

For Project Definition and WBS Elements:

Project System >>> Structures >>> Operative Structures >>> Work Breakdown Structures >>>
User Interfase Settings >>> Define Field Selection for Work Breakdown Structures

Transactions are OPUK (Project Definition), OPUJ (WBS Elements)

For Networks:

Project System >>> Structures >>> Operative Structures >>> Network >>> User Interfase
Settings >>> Define Field Selection for Networks

Transactions are OPUA (Header), OPUB (Overview), OPUC (Details)

8. Difference between validation & substitution in SAP Project System.

Substitution enables to automatically change master data fields of Project Definitions, WBS
Elements, Network Headers and Activities. For example, you can automatically set the cost
center 9999 for those WBS Elements into which responsible persons with number 0 to 20 have
been entered.

Validation enables you carry out self-defined checks for master data fields of the same elements.
But the result of validations consists of informational messages, warnings or error messages. For
example, you can validate that projects with a specific project profile always begin with the same
key.

9. What do time profiles do?

This profile is part of the "Planning Board Profile" and it determines the begginning and the end
of the evaluation and planning periods. This means that preevaluation and post evaluation
periods are defined automatically. This is how the Planning Board is displayed graphically.

10. Where do we define time profiles? What is evaluation period?

Evaluation period is the period in which you want to control your project, and it will be
displayed in your planning board. Dont get confused with scheduling, which is how time is
managed in a project.

Project System >>> Structures >>> Project Planning Board >>> Define Time Profiles
Transactions is OPTY

11. What are the different time profiles?

There are two, but you can define your own. SAPPS_Z001 and SAPPS_Z002.

12. What is value categories required for? Where are they maintained?

13. What are the important terms in a costing sheet?

14. How to create and change planning profile? What is the Menu path?

15. How and where do you control the budget for the project & what is the menu path?
Through the Budget Profile, in transaction OPS9. Path is:

Project System >>> Costs >>> Budget >>> Maintain Budget Profile

Among other things, you will have to define the Time Frame (Annual or Total), Exchange Rate
type, whether or not Availability Control will be used, and the Budgeting Currency. There are
additional settings in that path, such as defining a Budget Profile for a Project Definition among
others.

16. How do you control that the project does not run over allocated budget?

You use Availability Control by defining tolerance limits, which will allow you to define by how
much you can overspend. For example, you can set the system to send you a message wuen 95%
of the budget has been spent, and stop al PR�s when you have reached 100% or 110% of the
budget. Path is Project System >>> Costs >>> Budget >>> Maintain Budget Profile >>> Define
Tolerance Limits

17. What does project version do? How do you define the project version (menu path)?

18. What governs the way scheduling is to be performed? What is the menu path?

19. What setting does NTW scheduling contains? Where are these settings done (menu
path)?

Control Key in transaction OPSU defines whether an activity can be confirmed, scheduled,
capacity requirements determinarion, costs, etc. Other important settings include Network Types,
Parameters for Network Types, Network Profiles and Control Keys.

There settings are found in the following paths:

Project System >>> Structures >>> Operative Structures >>> Network >>> Settings for
Networks

Project System >>> Structures >>> Operative Structures >>> Network >>> Settings for Network
Activities

20. What is the organizational structure of PS module?

PS structure consists of Project Definition, WBS Elements and Networks. PS uses structures
from FI/CO, MM, SD, etc. There is no structure of PS but the one provided above.

SAP PS INTERVIEW QUESTIONS

WHAT IS SAP PROJECT SYSTEM MODULE?

Project System is one of the key modules of SAP to perform project and portfolio management and
helps you to manage the project life cycle starting from structure, to plan, execution and till the
project completion.
IS PROJECT SYSTEM INTEGRATED WITH OTHER MODULES OF SAP ECC?

Project system is closely integrated with other SAP modules like logistics, material management,
Sales and Distribution, Plant Maintenance, and Production planning module.
FOR RAISING CLIENT BILLING, IS THERE ANY POSSIBILITY OF LINKING LINE ITEMS IN SD
MODULE WITH ACTIVITIES / WBS IN PS MODULE?

It can be linked through DIP Profile and do Resource Related Billing for raising billing.
CAN REVENUES BE LINKED WITH ACTIVITIES?

No, it can be done at WBS level with ‘Billing’ operative indicator.

CAN PROGRESS BE UPDATED IN WBS ELEMENTS?

Yes, you can use Progress Analysis (EVA) for this.

WE WOULD LIKE TO COMPARE THE PLANNED COST, ACTUAL COST & REVENUE FOR LINE ITEMS IN
SD MODULE. FOR THIS AS WHAT OBJECT SHOULD WE CONSIDER THE LINE ITEM IN PS MODULE.

You can use Billing level WBS in PS module.

7. IN EASY COST PLANNING/ COST MODELS, THE RESOURCE REQUIREMENT DETAILS (QUANTITY
AND RATE) ARE GIVEN TO GET THE COST OF EACH LINE ITEM. BUT TO GET PLANNED COST OF
EACH ACTIVITY, THE CONSULTANT IS ASKING US TO ASSIGN RESOURCES SEPARATELY AGAIN IN
ACTIVITIES. IF WE CONSIDER THE LINE ITEMS AS ACTIVITIES, SHOULD WE ASSIGN THE
RESOURCES AGAIN OR THE SAME IN EASY COST PLANNING / COST MODELS CAN BE LINKED TO
GET THE RESOURCES ASSIGNMENT IN A SIMPLER METHOD.

Instead of this, you can use costing variant for Easy Cost Planning (not for the activities)
IS THERE ANY WAY BY WHICH WE CAN LOCK TWO SPECIFIC WBS ELEMENTS SAY OVERHEADS AND
OTHER EXPENSES, SO THAT THE USER CANNOT RELEASE PR?

The easiest way would be to define the project release process in the bottom-up fashion. That means,
you will only release the activities/WBS elements that you need from time to time during the course
of the project. That way, charges won’t be accrued on a WBS element until it’s released (so, don’t
release it until it’s ready for collecting costs).
 IS THERE ANY WAY BY WHICH WE CAN STOP THE NETWORK FROM ATTACHING FURTHER
MATERIALS AFTER IT IS RELEASED?

This is controlled through the change profile, which is assigned to the network profile. In the change
profile, under the Component tab, you can define the release status of the activity at which you can
create/change/delete material components.
HOW CAN WE SET THE OPTIONS FOR CAPACITY REPORTS CM01?

This will possible depend on your config, but the options I use are:
Settings>General>
Tick, Cumulation of reqmts, Dyn. capacity cumul. and then select the hierarchy you have set up.
I then select the financial year (as we are budget driven) using Entry type A and the start/finish of the
financial year.
I select period Month.
Then click tick.
I then select the work centre I require. or arm of the hierarchy.
You can then select standard overview and also select graphs or if you need a detailed list press that
button.
WHAT IS AN EXTERNAL AND AN INTERNAL PROJECT IN TERMS OF PROJECT BUDGET?

External Financed Projects −

This includes the projects which are sponsored by clients and are executed to meet the client
requirements. These projects are called customer projects and project goal is aligned to meet the
customer demand.

Internal Financed Projects −

This includes project related to capital investment or overhead cost projects.
HOW DO YOU CATEGORIZE PROJECT BASED ON THE LIST OF ACTIVITIES?

You can categorize projects according to the list of activities and project structure or on the basis of
individual activities −

 Using Work break down structure WBS

 Using individual activities as per work packages
WHAT IS WORK BREAKDOWN STRUCTURE?

In Project System, Work Breakdown structure WBS and network diagram can be used to structure
the project either in hierarchical order or using network techniques. You can define key milestones
and documents that allow you to monitor the progress of project and helps you to define key interest
of individuals.
 WHAT ARE THE DIFFERENT STEPS INVOLVED IN PROJECT PROCESS FLOW?

Below are the key steps involved in Project process flow −

 Create Templates/WBS
 Create Project
 Project Planning
 Budgeting and Release
 Project Implementation
 Project Completion
WHAT ACTIVITIES OF SAP FICO IS INTEGRATED WITH SAP PROJECT SYSTEM MODULE?

To plan the costs and revenue in the project system, as per the financial planning requirements.
WHAT ACTIVITIES OF SAP MM IS INTEGRATED WITH SAP PROJECT SYSTEM MODULE?

To manage procurement and inventory functions occurring in project lifecycle.

WHAT ACTIVITIES OF SAP SD IS INTEGRATED WITH SAP PROJECT SYSTEM MODULE?

To manage the sales process in project lifecycle- includes quotations for customer projects. This
includes billing, selling and shipping of goods and services required in project lifecycle.
WHAT ACTIVITIES OF SAP PP IS INTEGRATED WITH SAP PROJECT SYSTEM MODULE?

To perform activities like material requirement planning MRP, Bills of material BOM, material
requisition as per MRP, capacity planning and other production planning tasks in project lifecycle.
EXPLAIN ORGANIZATION STRUCTURE AND ELEMENTS IN SAP PROJECT SYSTEM?

When a project is initiated, it starts with the definition and classification of the project structure
which is required to align it with the existing enterprise structure in an organization.

Project System has no organizational structures of its own and we have to incorporate the structure to
enterprise structure by assigning organization elements in different ERP R/3 modules. These
organization elements allow Project system to maintain and get the data correctly.

An Organization structure consists of various elements that have to be created as part of structuring
of project. Following are the organization elements −

 Company Code
 Business Area
 Controlling Area
 Plant
WHAT IS COMPANY CODE?

Company code is smallest unit in an organization for which financial statements (profit-loss
statement, etc.) can be generated.

What do you understand by Business Areas? Explain with the example of use?

Business Arears are used to differentiate transactions that come from different line of business in a
company.

Example −
There is a big company XYZ, which runs multiple businesses. Let us say it has 3 different domains
like manufacturing, marketing and sales.

Now you have 2 options −

 First is to create different company codes

 And other better option is to create each of these business lines into business areas.
WHAT ARE THE ADVANTAGES OF USING BUSINESS AREA IN ABOVE SCENARIO?

You can use these business areas if other company codes require the same areas.

It is easy to configure if you use Business Area as you just need to attach to the company code and
the other details in business area will get attach itself.

By using Business areas in controlling, you can create Profit and loss statement, Balance sheet, etc.
for business areas so this is used for management accounting in few companies.

Note − Business areas are more used in Controlling as compare to Finance Accounting.
WHAT IS CONTROLLING AREA IN SAP SYSTEM?

Controlling Area in an organization is defined as an organizational structure and is cost accounting,

Cost centers, profit centers are used to define the Controlling area.
WHAT IS PLANT?

Plant is an organizational unit within a company where activities take place. A plant will produce
goods and makes goods available for the company.
 WHAT ARE THE DIFFERENT CURRENCY TYPE IN SAP PS SYSTEM?

In SAP PS system, you can manage all the currency dependent data in the Project System using
below different currencies.

Controlling area currency −

In this currency type, you define work breakdown structure WBS, networks, activities, and orders in
one controlling area.

As same controlling area is used, currency in a project system is also uniform.

Object Currency −
In Project system, it is also possible to assign any object currency to different objects in the system.

 WBS element
 Project definition
 Network header
 Network activity
Note that when a company code is assigned to a controlling area and company code contains multiple
currencies in this case you can’t allocate object currency in PS as in this case system automatically
takes the local currency of company code.

Transaction Currency −
In this case, you use the costs and revenues from different business transactions are recorded as per
currency of the business transaction.
HOW DO YOU DEFINE A PROJECT?

A Project is defined as a temporary endeavor to create a product or to provide a service.

COULD YOU NAME FEW CHARACTERISTICS OF A PROJECT?

 Projects has a defined goal which is agreed between company and customer and is defined in Project
Charter.
 A Project is complex, unique, and definitive in scope and involves a high certain risk to execute and
complete on time.
 Project has defined quality requirements.
 Project has definitive cost, duration and resources to work on the project.
 WHAT IS THE USE OF DEFINING PS TYPES IN PROJECT DEFINITION?

A Project type is used to group or classify the projects as required- Example: Banking projects
Capital projects or IT development projects.

A Project type is also used for reporting, building authorization and for creating hierarchies and
network in project planning. It can also be used for developing customer requirements e.g. use of
BADI for WBS settlement rule determination based on project type as a parameter.
WHAT IS THE USE OF STATUS PROFILE?

A status profile contains the individual user statuses and the business transaction rules defined for
those statuses. You can define multiple limit number of user status profiles that can be maintained in
SAP system.
WHAT IS THE USE OF SELECTION PROFILE IN SAP PS SYSTEM?

A Selection profile in SAP Project system is used when you have large number of selection objects
repeatedly with same selection condition. Selection condition are used using top down approach.
WHAT ARE THE PARAMETERS OF PROJECT SYSTEM?

There are several parameters to define in here at the structures level. First is the Project Definition
(Proj. Profile), then we have the WBS Level, and then, if used, the Network/Activity/Subactivity
Level. You may include components and services. The configuration goes into Proj. Definition, WBS
and Activity profiles.
WHAT IS THE DIFFERENCE BETWEEN A WBS AND NETWORK STRUCTURE?

WBS and Networks are two structures that differ in the way in which they enable you to structure
projects and in the functions provided for them in the SAP system. For example, if you need a
hierarchical budget management function for a project, you would want to use a WBS structure. If, in
addition, you also want to do capacity planning, you would have to use one or several networks as
well. Depending on the specific requirements you may be able to map a project only via a WBS
structure, or by using only one or several networks, or a combination of both.
WHAT DO YOU UNDERSTAND BY PROJECT PROFILE?

A Project profile is defined to maintain default values and control parameters like planning methods
for costs. The information entered in project profile is copied to project in project definition or also in
the project elements. These information can be changed at later stage.
WHAT INFORMATION IS MAINTAINED UNDER PROJECT PROFILE?

You must maintain below information under project profile section −

 Basic data
 Time scheduling
 Costs/revenues/finances
 Organizational data
WHAT IS THE USE OF SETTLEMENT PROFILE?

In a project, you collect cost and revenues temporarily and they have to settle as part of period end
processing. You need a settlement profile stored in project profile or network type which determines
whether settlement is required, allowed or blocked.

You use the settlement profile to define the following for actual costs −

 Full Settlement
 Can be settled
 Not to be settled
WHAT IS THE USE OF NETWORK PROFILE?

You can create network profile in SAP PS to maintain Network and WBS structure and to define
rules for linking networks.
WHAT IS NETWORK TYPE IN SAP PS SYSTEM?

In SAP PS system, a network type is used to contain the information for controlling and managing
networks. Network is defined as work order that has a structure in common with production,
maintenance and inspection orders.
WHAT DO TIME PROFILES DO?

This profile is part of the “Planning Board Profile” and it determines the beginning and the end of the
evaluation and planning periods. This means that pre evaluation and post evaluation periods are
defined automatically. This is how the Planning Board is displayed graphically.
HOW DO YOU SPECIFY A PERSON RESPONSIBLE FOR WORK CENTER IN PS SYSTEM?

In SAP Project System, you can define the person responsible for Work Center. To define a person
responsible you need to enter person responsible Id and descriptive name of person responsible for
managing work center.

To specify a person responsible for work center, navigate to below path in SAP Easy access.

SPRO → IMG → Project System → Structures → Operative structure → Network → Work Center
→ Specify person responsible for work center.
WHERE DO WE DEFINE TIME PROFILES? WHAT IS EVALUATION PERIOD?

Evaluation period is the period in which you want to control your project, and it will be displayed in
your planning board.

Transactions is OPTY
WHAT IS THE USE OF ACCESS CONTROL LIST?

In SAP Project system, you use access control list to assign authorizations for specific Project system
objects. Access control list function should be activated in project profile or network profile.