C_TS410_2022 SAP Project Systems (PS)

SAP Project Systems (PS) Detailed Explanation

SAP Project Systems (PS) is a powerful module in SAP S/4HANA used to manage large and complex projects across industries such as construction, research and development (R&D), capital investments, and engineering. It provides tools for project planning, execution, monitoring, and closure, enabling organizations to manage project timelines, budgets, resources, and costs efficiently.

9.1 Key Elements of SAP PS

1. Project Structures

A well-defined project structure is essential for breaking down projects into manageable components. SAP PS uses two primary structures:

a. Work Breakdown Structure (WBS)

• Definition: The Work Breakdown Structure (WBS) is a hierarchical framework that divides a project into smaller, manageable components.
• Purpose:
  • Organize and structure the project.
  • Plan costs, schedules, and resources at different levels.
  • Monitor project progress.

Key Features of WBS:

1. Levels: WBS can have multiple levels to organize tasks (e.g., Project → Phase → Sub-tasks).
2. WBS Elements: Each element represents a project activity or deliverable.
3. Hierarchy: Higher-level WBS elements summarize costs, resources, and dates for their lower-level components.

Example of a WBS Structure:

Level	WBS Element ID	Description
Level 1	PROJ001	Construction Project
Level 2	PROJ001-PLN	Planning Phase
Level 2	PROJ001-DES	Design Phase
Level 3	PROJ001-DES-001	Create Building Design
Level 3	PROJ001-DES-002	Approve Building Design

Transaction Code:

• CJ20N: Project Builder (create and maintain WBS).

b. Networks and Activities

• Networks: Represent the sequence and dependencies of activities required to execute the project. Networks allow you to plan, monitor, and control tasks efficiently.
• Activities: Individual tasks within the network that describe specific work to be performed, such as design, procurement, or testing.

Types of Activities:

1. Internal Activities: Tasks performed using internal resources (e.g., labor, machines).
2. External Activities: Tasks that require procurement of services from external vendors.
3. Cost Activities: Define cost-relevant tasks for cost planning.

Example of Network and Activities:

Network ID	Activity ID	Description	Duration	Type
NET001	ACT001	Site Preparation	5 Days	Internal
NET001	ACT002	Equipment Procurement	10 Days	External

Transaction Code:

• CN22: Create and maintain network activities.

2. Project Planning

Project planning involves defining project timelines, budgets, and resources to ensure smooth execution.

a. Scheduling

• Definition: Scheduling assigns start and finish dates to WBS elements and activities.
• Types of Scheduling:
  1. Forward Scheduling: Calculates dates starting from the project start date.
  2. Backward Scheduling: Calculates dates starting from the project completion date.

Dependencies: SAP PS considers task dependencies (e.g., Finish-to-Start relationships).

Example:

• Site Preparation: Start → Jan 1, Finish → Jan 5
• Equipment Procurement: Start → Jan 6, Finish → Jan 15

b. Budgeting

• Definition: Budgeting involves planning the expected costs for each WBS element and activity.
• Purpose:
  • Track budgeted costs against actual costs.
  • Prevent budget overruns.

Steps in Budgeting:

1. Define planned costs for WBS elements.
2. Allocate budget to WBS components.
3. Control costs using availability checks (e.g., block overspending).

Transaction Code:

• CJ30: Budget Planning.

Example of Budget Allocation:

WBS Element	Planned Cost
PROJ001-PLN	$10,000
PROJ001-DES	$50,000
PROJ001-DES-001	$20,000

c. Resource Planning

• Definition: Allocate human resources, machines, and materials to project activities.
• Purpose: Ensure resource availability and prevent over-allocation.

Steps:

1. Assign resources (e.g., technicians, tools) to specific activities.
2. Plan material requirements for procurement.
3. Monitor resource utilization.

Integration:

• Integrates with HR for personnel availability.
• Integrates with MM for material procurement.

3. Project Execution

Project execution involves the actual implementation of the planned tasks. Key activities include:

1. Creating Purchase Requisitions and Orders:

   • For external services and materials.
   • Integration: Linked with Materials Management (MM) for procurement.

2. Time Confirmations:

   • Record time spent by personnel on project activities.
   • Integration: Linked with HR for time tracking.

3. Material Consumption:

   • Post goods issues for materials consumed during project execution.
   • Transaction Code: MIGO

Example:

• WBS Element: Site Preparation
  • Technician Work: 10 hours
  • Material Used: 5 bags of cement

4. Project Monitoring

Monitoring ensures the project stays on track in terms of time, costs, and deliverables.

Key Processes:

1. Progress Analysis:

   • Compare planned progress vs. actual progress.

2. Cost Analysis:

   • Track actual costs incurred against the budgeted costs.

3. Milestone Tracking:

   • Monitor the completion of critical project milestones.

Transaction Code:

• CN41N: Overview of Project Structures.

Example:

WBS Element	Planned Cost	Actual Cost	Variance
PROJ001-PLN	$10,000	$12,000	$2,000 Over
PROJ001-DES	$50,000	$45,000	$5,000 Under

5. Project Closure

The final stage involves closing the project and archiving data.

1. Final Cost Settlement:

   • Settle project costs to appropriate cost centers, internal orders, or assets.

2. Archive Project Data:

   • Store historical data for future reference and reporting.

3. Reporting:

   • Generate reports on project costs, resource utilization, and milestones.

Transaction Codes:

• CJ88: Settle Project Costs.

9.2 Key Transactions in SAP PS

In SAP Project Systems (PS), transaction codes (T-Codes) play a crucial role in managing various project-related tasks efficiently. These transactions allow users to create, update, and monitor project components, schedules, costs, and execution

1. CJ20N - Project Builder

Purpose:

• Create and maintain the Work Breakdown Structure (WBS), Networks, and Activities.
• Centralized tool to manage the project hierarchy and details.

Key Features:

• Visual representation of the project structure.
• Simplifies the process of managing WBS elements, network activities, and their relationships.
• Users can:
  • Create WBS elements and assign networks.
  • Schedule project tasks.
  • Assign resources (labor, machines, materials).

Steps to Use CJ20N:

1. Open Project Builder:

   • Transaction Code: CJ20N

2. Create a New Project:

   • Enter a Project Definition (e.g., CONSTRUCTION001).
   • Define the start and end dates for the project.

3. Create WBS Elements:

   • Right-click on the project definition → Select Create WBS Element.
   • Enter details like:
     • Description
     • Cost center
     • Responsible person

4. Create Networks and Activities:

   • Create Network elements under the WBS.
   • Define tasks (activities) and their dependencies (e.g., Finish-to-Start).

5. Save the Project:

   • Once the structure is complete, save the project.

Example:

Level	WBS/Network	Description	Start Date	End Date
Project Level	PROJ001	Construction Project	01-Jan-2024	30-Sep-2024
WBS Level 1	PROJ001-PLN	Planning Phase	01-Jan-2024	31-Jan-2024
Network	NET001	Create Building Design	01-Feb-2024	15-Feb-2024
Activity	ACT001	Finalize Design Approval	16-Feb-2024	20-Feb-2024

2. CN41N - Overview of Project Structures

Purpose:

• Display the entire project structure (WBS, Networks, and Activities) in a single screen.
• Analyze the project’s hierarchy, costs, and progress.

Features:

• Provides a graphical and hierarchical view of the project.
• Drill down to specific WBS elements and activities.
• View details such as costs, timelines, and resource assignments.

Steps to Use CN41N:

1. Enter Transaction Code CN41N.
2. Enter the Project Definition (e.g., PROJ001) or WBS Element.
3. View the project structure, including WBS elements and activities.
4. Filter and sort based on project progress, costs, or dates.

Example Outputs:

• Planned and actual costs at each WBS level.
• Start and finish dates for activities.
• Resource utilization per task.

3. CJ30 - Budget Planning

Purpose:

• Plan and allocate the budget for WBS elements.
• Monitor planned costs against actual costs to prevent budget overruns.

Features:

• Enter planned costs at each WBS level.
• Lock budgets to prevent unauthorized changes.
• Use availability control to ensure costs do not exceed the budget.

Steps to Use CJ30:

1. Enter Transaction Code CJ30.
2. Enter the Project Definition (e.g., PROJ001).
3. Select the WBS element where you want to allocate the budget.
4. Enter the planned cost in the required currency.
5. Save the budget.

Example Budget Plan:

WBS Element	Budget Allocated	Currency
PROJ001-PLN	10,000	USD
PROJ001-DES	50,000	USD
PROJ001-CNST	100,000	USD

4. CN22 - Create and Maintain Network Activities

Purpose:

• Create, modify, and maintain network activities within a project.
• Link activities to WBS elements and define task dependencies.

Features:

• Assign internal and external resources (labor, machines, materials) to activities.
• Define durations and start/finish dates for activities.
• Establish task relationships like Finish-to-Start or Start-to-Start.

Steps to Use CN22:

1. Enter Transaction Code CN22.
2. Select or create a Network.
3. Add Activities under the network (e.g., ACT001, ACT002).
4. Enter activity details:
   • Duration
   • Resources required
   • Dependencies (e.g., predecessors or successors).
5. Save the Network.

Example Network Activities:

Network	Activity ID	Description	Duration	Predecessor
NET001	ACT001	Site Preparation	5 Days	-
NET001	ACT002	Foundation Work	10 Days	ACT001
NET001	ACT003	Frame Construction	15 Days	ACT002

9.3 Integration with Other SAP Modules

SAP Project Systems (PS) integrates seamlessly with other SAP modules to ensure efficient execution and monitoring of projects.

1. Integration with Materials Management (MM)

• Purpose: Manage procurement of materials required for project activities.
• Process:
  • Create Purchase Requisitions (PR) for materials in WBS or Network Activities.
  • Convert PR into Purchase Orders (PO) for vendor procurement.
  • Goods Receipt and Goods Issue for project-related materials.

Transaction Codes:

• ME51N: Create Purchase Requisition.
• MIGO: Goods Movement for Project Material.

Example:

• WBS Element PROJ001-CNST requires 10 tons of steel.
• A Purchase Requisition is created and converted into a Purchase Order.

2. Integration with Controlling (CO)

• Purpose: Track and settle project costs to cost centers, internal orders, or assets.
• Process:
  • Costs incurred in a project (e.g., materials, labor) are recorded in Network Activities or WBS elements.
  • Project costs are settled to appropriate cost objects.

Transaction Codes:

• CJ88: Settle Project Costs.

3. Integration with Financial Accounting (FI)

• Purpose: Record financial transactions related to project expenses.
• Process:
  • Expenses for labor, materials, and services are posted to Financial Accounting.
  • Budget control ensures no overspending on projects.

Example:

• Payment for external services is posted against the project WBS.

Transaction Code:

• FB60: Post Vendor Invoice.

4. Integration with Human Resources (HR)

• Purpose: Manage and allocate human resources (e.g., labor) for project tasks.
• Process:
  • Personnel are assigned to Network Activities for time confirmation.
  • Employee time spent on activities is recorded and costed in SAP PS.

Transaction Code:

• CATS: Cross-Application Time Sheet.

Summary of Key Transactions in SAP PS

Transaction Code	Purpose
CJ20N	Project Builder (Create WBS and Networks)
CN41N	Display Project Structures Overview
CJ30	Budget Planning
CN22	Create and Maintain Network Activities
CJ88	Cost Settlement

SAP Project Systems (PS) (Additional Content)

1. Reporting Tools in SAP PS

Accurate and timely reporting is critical for project monitoring and decision-making. SAP PS provides several standard reporting transactions that allow project managers to evaluate cost, schedule, and progress at various levels of the project hierarchy.

Key Reporting Transactions

Transaction Code	Description	Purpose
CN52N	Project Cost Overview	Provides a consolidated view of actual, planned, and committed costs for WBS elements and networks
S_ALR_87013558	Project Structure with Cost Line Items	Lists detailed line-item costs for each WBS element and network activity in a structured format

Use Case Examples

• A project manager wants to monitor overspending on design activities. Using CN52N, they can compare planned vs actual costs and drill down to root causes.
• A finance controller reviews S_ALR_87013558 to validate each vendor invoice and internal posting charged to the project.

These reports support both cost control and audit readiness.

2. Project Templates (Standard Project Definitions)

To enhance project standardization, efficiency, and consistency, SAP PS allows the creation of project templates.

What is a Project Template?

A Standard Project Definition is a reusable template containing a predefined WBS structure, networks, activities, relationships, and sometimes cost planning data. It can be copied during the creation of new operational projects.

Benefits of Using Templates

• Reduces time spent in creating projects from scratch.
• Ensures consistent structure, coding standards, and planning logic.
• Facilitates reporting across similar projects.

Transaction Code

• CJ91: Create Standard WBS/Standard Project
• CJ92: Change Standard WBS
• CJ93: Display Standard WBS

Example Scenario

A construction company frequently undertakes residential building projects. Using CJ91, it creates a template containing:

• Phases: Planning, Permitting, Construction, Finishing
• Predefined WBS elements and network relationships
• Cost planning templates per square meter

When a new project starts, the team simply copies the template and adjusts quantities or dates as needed.

3. Risk Management in Project Systems (Advanced/Optional)

While not part of the core SAP PS curriculum, Project Risk Management can be introduced as an extension for organizations that require proactive issue and risk tracking.

Purpose of Risk Management

• Identify, assess, and mitigate risks and issues that can delay or increase project costs.
• Provide project stakeholders with visibility into risk exposure.
• Improve decision-making and contingency planning.

Core Elements (if using SAP Risk Management or custom solution)

1. Risk Register:

• List of identified risks, their impact, and probability.
• Risk categories: schedule delays, cost overruns, resource unavailability.

2. Issue Log:

• Tracks current problems encountered during project execution.
• Captures resolution actions and responsible parties.

3. Risk Mitigation Plans:

• Defines corrective or preventive actions for each major risk.

Integration Possibility

• In some advanced SAP setups, risks are integrated with WBS elements or milestones using SAP Governance, Risk and Compliance (GRC) or a custom development.
• Risks can be monitored alongside project KPIs for early warning signals.

Example Use Case

• In an infrastructure project, a vendor delivery delay is logged as a risk with a high likelihood and major cost impact.
• The planner sets up a contingency activity within the project network to prepare for delay scenarios.

Summary of Supplementary Topics in SAP PS

Topic	Description	Benefit
Reporting Tools	CN52N and S_ALR_87013558 provide cost control and audit visibility	Enables real-time cost tracking and detailed reviews
Project Templates	CJ91 allows creation of reusable WBS structures	Standardizes project planning across similar initiatives
Risk Management (Optional)	Proactive management of risks and issues	Enhances project governance and reduces unplanned disruptions