SAP PS Questions and Answers 4

What is SAP Project System module?Is Project system integrated with other modules of SAP
ECC?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 allows 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 has 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 comes from different line of business
in a company.

Example −

There is a big company XYZ, which runs multiple business. 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?What is the use of Selection Profile in SAP PS system?What
are the parameters of Project System?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?How do you specify a person responsible for work center in PS
system?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.
In SAP PS system, authorization can be assigned for which objects?
Authorization can be assigned for following PS objects −

 Project
 Work Breakdown structure
 Network
  Activity
 Activity Element
Consider a user A is assigned to user group 1 that has read authorization for a PS object and user
has change authorization for PS object. What authorization user will get?
The user gets change authorization in this scenario.
How do you create an access control list?
To create an access control list, navigate to PS object for which you want to assign authorizations.

 Go to ACL tab page.

 Select insert line button to enter the new data.
 Click on save button to save the entry.
What is the use of cost component in SAP PS system?
In SAP PS, you use Cost component to plan, monitor, and control project cost for projects. This
component is integrated with different components in SAP ERP system −

 Finance Accounting and Controlling

 Production Planning
 Material Management
What are the different components under costing variant?
A Costing variants contains the following components −

Costing type −

Costing type is used to define the object- like a network, or a project for which you have to create
the costing.

Valuation variant −

In SAP system, you use valuation variant to maintain valuation bases for materials and activity
types managed in the costing.
What do you understand by project budget?
SAP PS: Budget Management for Projects

Budget is defined as approved cost for a project and it is different from the cost plan. Budget is
approved cost from management for expected development of order cost for a given time period.
What are the different planning methods that you can use in Project System?
In SAP Project system, you can use following planning methods −
Manual Revenue Planning −

You can perform manual revenue planning based on Work breakdown structure or by revenue
element.

Automatic update Revenue plan −

You can perform automatic update of revenue planning based on Work breakdown structure or
in sales order.
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.
How do you manage dates in the project?
This component in Project system is used to plan and check dates in project. The use of date
scheduling is to determine phases in a project and duration of the phases, critical paths and events
in project schedule.

In Work breakdown structures WBS and Network, you enter the dates and these dates can be
changed during full project lifecycle.
How do you define parameters for WBS scheduling?
In SAP Project system, you can schedule a project or part of the project with all the activities that
are assigned to project. You use WBS element basic dates as basic dates to schedule the activities.

When a network contains few activities that are not assigned to same WBS they are treated as
external networks in system in project scheduling.

To define parameters for WBS scheduling, you can use T-code: OPTQ or you can navigate to
SPRO → IMG → Project System → Dates → Data Planning in WBS → Define Parameter for
WBS Scheduling
What are the different type of Scheduling options?

 Backward
 Backward in time
 Current Date
 Forward Date, etc.
How do you manage material requirement in the project?
This component is used to plan and manage material requirement in project and to manage the
material flow in the project. Material requirement planning in project comes from Material
management and Production Planning and Control.
What is MRP run?
MRP run or planning run is an engine which is used to fill demand and supply gap. Issues &
Receipts are called MRP Elements. Issues include PIRs, Dependent Requirements, Order
Reservations, Sales Orders, Issuing Stock Transfer Orders, etc. and receipts include Production
Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving Stock
Transfer Order, Schedule lines, etc.
What are the different MRP parameters?What is the difference between basic scheduling and
lead time scheduling?
Basic Scheduling −

It only calculates basic dates for orders in MRP run and in house production time for material
master in use.

Lead time Scheduling −

In this MRP, production dates are defined by lead time scheduling for planned orders.
What is the use of Project versions in SAP system?
In SAP system, version is defined as state of a project at certain point in time. Project versions
are used in Earned value analysis and for project evaluation.

Functions −

A Project version can be used for the following purpose:

 To perform the statistical evaluation

 To document the state of project

 To perform comparison and analysis of project progress

 To perform milestone trend analysis to analyze the dates in a project and comparing them
with planned data in the project.
What are the different Project versions in SAP system?
There are different project versions types available in Project System −

Project Versions −

To compare project status at specific time period.

Plan Versions −

This is sued to store different cost plans for a project.

Selection Versions −

This is used to perform background processing and to save the project data matching certain
selection criteria.

Simulation Versions −

In below table, you can see the different features in a project that above versions supports in SAP
system.
What are the different types of report in PS system?
Technical Reports −

Project Information System in SAP PS allows to manage and control your project technically.

This allows you to select all the objects or particular objects in the system- WBS, Networks, PS
texts and material etc. to check their present status and their use in project network hierarchy.
This allows you to see the status of project based on different objects.

Using Project Information System, you can monitor the data elated to current project as well as
data in archive to see historical data and lesson learnt.

You can enter the values in filters to create structure list which can be used to view graphics or
to move data to different project management tools.

Commercial Reports −

You can view various commercial reports related to project progress in SAP PS system:

Cost Element Report to view cost and revenues to summarize line items.

To monitor full value flow in the project, you can use Cost/Revenue and Payment hierarchy
reports. Payment hierarchy reports contains data related to drill down.

To display actual, plan, commitment and budget values you can use Line Item Reports.