SAP (Systems Applications and Products in Data Processing)

What is Project System?

Project System is one of SAP's most important modules for managing projects and portfolios. It aids in the management of the project life cycle, from structure to planning, execution, and completion. Other SAP modules such as logistics, inventory control, trading and marketing, operations and maintenance, and production scheduling are tightly connected with the project system.

It helps businesses to manage all SAP projects, both large and small, easily. The responsibility of a project manager's is to make sure that these projects are completed on time and within budget and that resources are allocated to them appropriately.

SAP-Project System integration

The following components are intimately connected with the SAP PS system:

  • Use the Finance and Controlling Module to plan the expenses and income in the project system according to the financial planning requirements.
  • To handle procurement and inventory functions during the project lifecycle, use Material Management (MM).
  • Use the Sales and Distribution Module to handle the sales process in the project lifecycle, including quotations for customer projects. The project lifecycle comprises billing, selling, and delivering goods and services.
  • In the project lifecycle, production planning duties include material requirement planning MRP, bill of materials BOM, material requisition as per MRP, capacity planning, and other production planning tasks.
  • Other R/3 modules include plant maintenance, budget management, and investment, among others.

Categories of Projects:

Projects can be categorised into the following categories based on their budget:

  1. Projects that are financed externally include those that are sponsored by clients and completed to fulfil their needs.
  2. Client projects are those in which the project purpose is to fulfil the needs of the customer.
  3. Internally funded initiatives are projects involving capital investment or overhead costs.

You may also categorise projects based on a list of activities and the project's structure or based on specific activities.

Process Flow in a Project System

Each procedure in Project System contains a set of tasks that must be completed. In the Project Lifecycle, these tasks are referred to as process flow. A project is established when a request is received, and it must go through the following phases in the project process flow/lifecycle.

The major phases in the project process flow are as follows:

  1. Make WBS/Templates
  2. Do a project
  3. Planning a project
  4. Budgeting and Publication
  5. Implementation of the Project
  6. Finalisation of the project

Elements and Structure of an Organisation

An organisational structure comprises several elements that must be constructed as part of the project's framework. Since the Project System lacks its organisational structure, we must map it to the enterprise structure by allocating administrative aspects to various ERP R/3 modules. These organisational aspects enable the Project system to keep and obtain data appropriately.

Currencies Controlling Area Currency in SAP PS

Work breakdown structure (WBS), networks, activities, and orders are all defined in one controlling area with this currency type. Currency in a project system is uniform since the same controlling area is used.

Object Currency

It is possible to allocate any item currency to different system objects in Project System.

  1. Element of the WBS
  2. Definition of the Project
  3. The header for the network
  4. Activity in the network
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