Contents

SAP PS quick Overview .................................................................................................................................. 4

Deciding on a Project Coding Mask .............................................................................................................. 7
Define Project coding mask ........................................................................................................................ 11
Configure Status Profile .............................................................................................................................. 13
User status - Prevent release of WBS-element before Budgeting.............................................................. 20
Define field selection for WBS and PS ........................................................................................................ 29
Define Field Selections for Work breakdown Structure (WBS) ........................................................ 29
Availability control configuration................................................................................................................ 32
How availability control works.................................................................................................................... 43
Using Validations in Project System with Examples ................................................................................... 48
Purpose .............................................................................................................................................. 48
Validation ........................................................................................................................................... 48
Validation in Project system: ............................................................................................................ 48
Examples of Commonly used Validation: ........................................................................................ 49
Define budget profile .................................................................................................................................. 50
Define Project Profile .................................................................................................................................. 55
How to create Project Type for WBS .......................................................................................................... 59
Define Budget Tolerance limit .................................................................................................................... 62
Settlement Profile configuration ................................................................................................................ 63
SAP PS TABLE............................................................................................................................................... 66
Budget Management .................................................................................................................................. 67
Congratulations on downloading this SAP PS eBook. This book is a collection of blogpost available over
internet. Each chapter represents one blogpost. We have curated the post that can best fit for given
topic.

These posts are arranged in a way, so that you can follow them in given sequence and configure or learn
SAP PS module. At the start of each blogpost the link to the post is given, as a credit to blogpost writer
and for your easy reference to check further on same post.

We hope that you enjoy reading this format of book. You can also checkout our YouTube video about
SAP PS configuration at SAP College YT Channel.
SAP PS quick Overview

Blogpost Link: https://www.tutorialspoint.com/sap_ps/sap_ps_quick_guide.htm

SAP PS - Overview

Project System is one of the key modules of SAP to perform project and portfolio management. It helps
you to manage the project life cycle starting from structuring to planning, execution, until the project
completion. Project system is closely integrated with other SAP modules like logistics, material
management, Sales and Distribution, Plant Maintenance, and Production planning module.

It enables organizations to manage all SAP projects- large and small-scale projects efficiently. The Project
Manager has a task to ensure that these projects are executed within budget and time and to ensure
that resources are allocated to the project as per the requirement.

Before a project is initiated, it is required that project goal is clearly defined and the activities be
structured.

The integration between SAP Project System PS with SAP ERP R/3 application modules allows you to
design, plan, and execute the projects as part of your normal project procedure. Hence, Project System
module has the constant data access to all the departments involved in the project.

Classification of Projects

As per budget, projects can be categorized in the following categories −

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.

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

Using Work breakdown structure WBS.

Using individual activities as per work packages.

In Project System, Work Breakdown structure and network diagram can be used to structure the project
either in hierarchical order or in 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.

Project Structure can be defined either manually or based on templates. You can also create the Project
structures using sales documents automatically.
In the following diagram, you can see the sample project structure that is created hierarchically using
Work Breakdown structure.

Project System – Process Flow

In Project System, each process has a defined set of tasks to be performed. These tasks are known as
process flow in Project Lifecycle.

When a project request is received, a project is created and it has to undergo the following steps in
project process flow/lifecycle.

Following are the key steps involved in Project process flow −

Create Templates/WBS

Create Project

Project Planning
Budgeting and Release

Project Implementation

Project Completion

Here is a diagrammatic representation of the process flow of SAP PS −

SAP PS - Integration with ERP Modules

Project system is closely integrated with other SAP modules like logistics, material management, Sales
and Distribution, Plant Maintenance, and Production planning module.

The integration between SAP Project System PS with SAP ERP R/3 application modules allows you to
design, plan, and execute the projects as part of your normal project procedure. Hence, Project System
module has the constant data access to all the departments involved in the project.

SAP PS system is tightly integrated with the following modules −

Finance and Controlling Module − To plan the costs and revenue in the project system as per the
financial planning requirements.

Material Management MM − To manage procurement and inventory functions occurring in project

lifecycle.

Sales and Distribution 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.

Production Planning − 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.

Other R/3 modules − Other modules like plant maintenance, budget management, investment, etc.
In the following diagram, you can see SAP Project System is integrated with SAP R/3 modules during
project lifecycle.

Organization Structure and Elements

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.

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Deciding on a Project Coding Mask

Blogpost link: https://blogs.sap.com/2015/11/26/deciding-on-a-project-coding-mask/

FACTORS FOR DECIDING A PROJECT CODING MASK IN SAP

In SAP Project Systems, a Project Coding Mask is used to create a structure for the project number.
Masks help in displaying complex project numbers and in indicating the position of a WBS element in
the project hierarchy.
Complex projects often require a complex numbering structure. A WBS element number may look like
this: M-EIPL123-02-A7/18. Here a project coding mask can be used to provide this structure uniformly
to all WBS elements in that project, without giving scope to user errors.

The project coding mask is made up of 2 parts: Project Coding Key and Coding Mask.
A. Project Coding Key:

1. The Key is present at the start of the project coding mask, in the above example being ‘M’.
The Key determines the structure used for coding the Project definition and WBS elements,
hence it is a mandatory field if a company decides to use a coding mask for their projects.
2. What if the user enters a different Key while creating a project? The system can be
customized to prevent the user from entering a different Key.
3. The project coding mask can have a maximum of, but not necessarily, 24 characters. Out of
these 24 characters, the Key can have a maximum of 5 characters (For ex. ABCDE). This
maximum possible length for the Key needs to be specified in customizing under Define
special characters for projects.
4. The Key has a few restrictions:
a. If a project is created using say 3 characters for the Key, then the length as specified
above cannot be edited to a lower value unless the project is deleted.
b. This length specified in customizing, say 3, is then reserved for the Key out of the 24
characters for all the projects in the system. The balance quantity can be used by the
mask section. This is irrespective of the Key length specified while creating a project
coding mask. That means even if the Key is assigned as 1 character, the mask
section can still have a maximum of 21 characters only.
c. No two keys can start with the same character. That is, if you have a key ‘G’ for a
particular coding mask, then you cannot have another one as say ‘GRK’. For this
reason the Key is not limited to numeric or alphanumeric characters. It can be
created using any character.

B. Coding Mask:

1. The coding mask can consist of numeric characters (represented by ‘0’), alphanumeric
characters (represented by ‘X’), and separators.
2. A separator is a symbol which distinctly separates the coding mask from the Key. It is also
used to represent the next level of WBS elements. A separator can be any of the following: /
. : > ; – < =. A separator is also counted as a character.
3. Thus a project coding mask may be represented as, say, ABC-XXXXXXX-000.XX/00. Here
each separator creates the next WBS element level representation. Thus ‘XXXXXXX’
represents the top level WBS element (Level 1), ‘000’ represents WBS elements of Level 2,
‘XX’ Level 3 and so on.
4. The coding mask also has a few restrictions:
a. The first character following the Key must be a separator.
b. At each WBS element level the mask can either be numeric characters (-00) or
alphanumeric characters (-XX), but not both (-X0).
c. Once a project is created using a project coding mask, the mask cannot be deleted in
customizing unless the project itself is deleted.
Creating a project with a Project Coding Mask:
1. While creating a project, the system identifies the coding mask from the Key being entered
by the user. If the project coding Key consists of more than 1 character, it is mandatory for
the user to enter the entire Key exactly. Otherwise it will reject the entry.
 2. Once the Key is entered correctly, the system creates the project and displays the project
coding mask on the screen.

3. The system cannot prevent the user from creating the project definition with just the coding Key. It
can make automatic corrections in some other cases. These corrections vary in nature for
numeric and alphanumeric coding masks. For example, if the project coding mask is
TFP/XXXXX-0-0-0, following are the user entries and the corresponding system corrections:
USER ENTRY SYSTEM CORRECTION
TFP TFP (No change)
TFP/000 TFP/000 (No change)
TFP- TFP
TFP1 TFP/1
TFPabc TFP/ABC
TFPabc1234 TFP/ABC12-3-4
TFP12345a Error (There should be a number in
place of ‘a’)
If the project coding mask is TFP/00000-0-0-0:
USER ENTRY SYSTEM CORRECTION
TFP/000 TFP
TFP/00000 TFP
TFP1 TFP/00001
TFP-1 TFP/00001
TFP>=1 TFP/00000-1
TFP/->=1 TFP/00000-0-0-1
TFP/11 TFP/00011
TFP-100000 TFP/10000
TFP-1000033 TFP/10000-3-3
TFP-11-11 TFP/00011-1-1
TFP-12345678 TFP/12345-6-7-8
TFP-123456789 TFP/12345-6-7-8
TFP123456789 Error
In any other case the system will give an error.
  If more than one project coding mask is present in the system, the system can be
customized to limit the user to entering only the required coding key.
 If no project definition text is entered by the user, the system automatically names it as
‘Project Definition [project number entered by user]’. The text field is editable and can have a
maximum of 40 characters.
Limitations of using project coding mask:

There is one limitation of using the coding mask. While creating the project definition, the user must
enter the exact number of characters as given in the coding mask after the first separator. That is, for
TFP/XXXXX-0-0-0, the user must enter the definition with 5 characters after “TFP/”. The system is
unable to prevent the user from doing otherwise. There are 2 scenarios:

1. When the system converts a user entry TFP-ABCD133 to TFP/ABCD1-3-3, the user should
manually trim it down to TFP/ABCD1. This is because when the system generates the WBS
element number, it copies the entire definition number and adds one level to the same. For
example, if the definition is kept unchanged as TFP/ABCD1-3-3, the top level WBS element
(level 1) is named as TFP/ABCD1-3-3-1. As per the coding mask TFP/XXXXX-0-0-0, the
system then identifies this WBS element to be at level 4, which is the last level. Beyond the
last level in the coding mask, the system only provides a temporary number (%00000001)
which cannot be saved as is.
2. If the user enters TFP/ABC, the project definition stays as TFP/ABC. However, the top level
WBS element (level 1) gets named as TFP/ABC1, and a subordinate WBS element gets
named as TFP/ABC11. As per the coding mask TFP/XXXXX-0-0-0, the system then
identifies both the WBS elements to be at level 1, which is not desired.

Structuring the client’s Project Coding Mask:

Considering all the above points, assuming that the client has specified 5 WBS element levels, the
coding mask can be structured as follows:

FIELD LENGTH
Project Coding Key 1
First Mandatory Separator 1
Subordinate WBS levels 4x2=8
Separators for each subordinate WBS level 4x1=4
Provision for one more subordinate WBS level in the 3
future (including separator)
Balance quantity available for top level WBS 7
element
TOTAL 24

The project coding Key is assigned only 1 character so that more characters can be available for the
top level WBS element. The Key characters can be one of the following:

G – indicates projects involving ground mounted structures

R – indicates projects involving roof mounted structures

M – Mixed
 In the mask section for this client, alphanumeric characters are desired for the project definition, while
numeric characters are desired for the WBS element levels. Thus the sample project coding mask would
show as: G-XXXXXXX-00-00-00-00

Any suggestions / corrections are most welcome.

Define Project coding mask

Blogpost link: https://www.tutorialkart.com/sap-ps/define-project-coding-mask/

How to define project coding mask

In this activity you create project coding mask for editing the project number. Masks helps in displaying
complex project numbers and used to indicate the position of WBS elements in the project hierarchy.

The below characters are available for editing.

X – Used for alpha numeric characters

0 – Used for numerical characters only

/ – Used for separator.

An example of project coding mask

XX/000-XX-XX-XX-XX

000 can be used for project serial number

XX – Can be first level of WBS element

XX – Second level of WBS element.

XX – Third level of WBS element.

XX – Fourth level of WBS element

Configuration steps for creating a new project coding mask

Navigation

SAP R/3 Role

Project coding mask
Menu
 Transaction
OPSJ
code

SPRO > Project system > Structures > Operative structures > Work breakdown
SAP Menu Path
structures > Project coding mask > Define project coding mask.

Step 1 : – Execute tcode “OPSJ” from SAP command field.

Step 2 : – On change view “Project Number Editing” overview screen, choose new entries button to create
new project coding mask.

Step 3 : – On new entries project coding mask screen, enter the following details.

PrjID: – Enter the key that defines as project identifier in SAP. The key will be tied in next field (coding
mask). You can maintain different project identifies as per your requirements of project.

Coding mask : – The data enter here will be determine how the numbers and characters will look when you
are creating a project.

Lck : – Check this lock operative field to lock this coding mask. If you choose lock option, you are not able
to create new project with this mask.
After entering all the required details for coding mask, choose save icon and save the details.

Configure Status Profile

Blogpost Link: https://blogs.sap.com/2020/09/06/user-status-control-in-sap-ps/

SAP PS User status Functionality

1. Introduction

This Blog Post is about the user status function in SAP-PS.

SAP provided standard system status, in order to fulfill business requirements. Whereas, user status
function plays a very important role in order to fulfill those requirements, which cannot be mapped
through system status.

This blog post is divided into 2 parts (Configuration & Process Flow).

In the below example, I will display, how commitment (PO) can be blocked by using user status function,

2. Configuration

Path : SPRO->Project System->Structures->Operative Structures->Work Breakdown Structure (WBS)->

WBS User Status->Create Status Profile

 Create a status profile, as in below scenario TEST001

 Here have created 3 user status INIT, EXEC & CLSD
 Add object type, in our case it is WBSE
 Double click on user status INIT

 Press create button, below screen, will appear

 Here we have opted block PR & PO
 As explored many features are available

 INIT user status PR & PO blocked

 EXEC every transaction allowed.

 CLSD user status PR & PO blocked

  Assign status profile to the Project profile for WBSE, as above.

3. Process Flow

 Create project & WBSE Element

 For WBSE (39-01) user status INIT active
 PO blocked as below

 Now change user status for WBSE (39-01) as “EXEC”

 No error message of user status for PO, as it is allowed for EXEC status & wbse has user status
EXEC. Screenshot as below
Conclusion

User status can be used for many purposes, like :

 Tracking the life cycle of the project

 Block business transaction
 Workflow trigger
 Override System status

In the above Blog Post, have tried highlighting a few of them.

User status - Prevent release of WBS-element before Budgeting

The objective of this article is to guide you through SAP PS system customizing that prevents Release for
WBS-elements before the budget allocation. Same approach can be applied to orders.

It is a very common business requirement to avoid any postings before the budget is assigned
and availability control is activated. It can be achieved in few easy configuration steps with a user status
profile.

Step 1: Create initial WBS user status

In a new or existing user status profile create a new initial user status. This initial user status should
prevent everything except budgeting, and it can auto delete afterwards.

Let us assume I do not use any user status profiles with my WBS-elements yet, therefore I will create a
new user status profile called ZWBS0001. Use the following IMG path:

Next click on New entry icon and populate the data as on the below screen:
Next double-click on the new profile record to drill down into setup of user statuses and maintain the
following data:

Double-click the newly created NOBU status to browse into the overview of available operations, the system
will display a pop-up window suggesting profile assignment to allowed object types:

I will select Yes option and maintain a check-mark for WBS-element:

Save the data, go back, drill-down again on the NOBU status and click on New entries button. This is a radio-
button selection to allow or disallow different business transactions. I will keep budget related transactions
active with status Delete option on Budgeting. Besides I will keep Release forbidden as shown on two next
screens:
In case you are using availability control based on released budget you need to enable additional business
transaction into the User Status list of managed business transactions that can influence the User Status.

Use transaction code BS32 and set a check mark for KBFR as shown on the below screen:
Next it will show up on the list of business transactions with additional radio-buttons and similar
settings can be made:

Step 2: Assign the user Status Profile within Project Profile

Use the following IMG path:

Next I will assign the user status profile ZWBS0001 to the project profile 0000001 for the purpose of
this example as shown on the below screen:

Now the customizing is completed and I can proceed with testing.

Step 3: Unit test

I will create a new project and a sample account assignment WBS-element with CJ01 transaction code.
You can see that the initial user status NOBU is being automatically assigned:

Next I will try to Release the WBS-element using CJ02 transaction, the system will display an error
message:
Finally I will go to transaction CJ30 to maintain original budget for the Project/WBS and next will
display WBS master data in CJ03:

You can see that system status BUDG was raised by the system, while user status NOBU has
disappeared.

This configuration setup is based on OSS Note 602588 – Availability control before budgeting and
the note can provide additional support information as well as references to related OSS notes.
Define field selection for WBS and PS

Blogpost link: https://www.saponlinetutorials.com/define-field-selections-work-breakdown-structure-

sap/

Define Field Selections for Work breakdown Structure (WBS)

The following SAP training tutorials guides “how to define field selections for work breakdown structure
in SAP step by step. In our previous SAP PS training, we have learnt how to maintain milestone usage.
You can maintain field selection for WBS by using the following navigation methods.
 Path: – SAP IMG >> Project Systems >> Structure >> Operative Structure >> Work
Breakdown Structure >> User Interface Settings.
 Transaction code: – OPUJ
Configuration Steps
Enter transaction code “SPRO” in the SAP command field and enter.

On Execute project screen, Select “SAP Reference IMG”

On Display IMG Screen, Follow the Path and double click on “Define Field Selections for Work
Breakdown Structure”
On choose activity screen, choose either project definition or WBS Element.

On field selection: Modifiable fields screen, Select Input or Required or Display or Hide for Modifiable
fields as per your requirements. Click the influencing option.
On field selection influencing fields screen, select the master data for which you want influence to apply.
Here we are selecting project profile and updating project profile ID.

After updating all the required details, click on save button and save the configured data. Successfully we
have defined Field Selections for Work breakdown Structure in SAP.

Availability control configuration

Purpose

The purpose of this document is to document the entire Configuration required for Budget Availability
Control (BAC) including Budget Profile and Tolerance Limits. At the end of the document, examples of
BAC response based on the tolerance limit set are documented.

General Information

The configuration for BAC can be divided into two steps

– Maintaining Budget Profile

– Defining Tolerance Limits

Maintaining Budget Profile

Detail Configuration steps with screen shots for Budget profile are listed below:

Go to Maintain Budget Profile using the Transaction code or Menu Path stated below:

Transaction Code OPS9

Menu Path SPRO

> SAP Reference IMG
>> Project System
>>> Costs
>>>> Budget
>>>>> Maintain Budget Profile<

Select “New Entries”

• Profile – Budget Profile Enter the name for the new Budget Profile, say “ZCAP”

• Text – Description for Budget Profile

Enter the Description for the Budget Profile, Example -> “Profile for Capital Projects“

• Timeframe: Based on the business requirement, specify the number of years in the past/future you
would like to plan/budget projects for.

For the purpose of illustration, the budget profile is maintained such that the Budget can be maintained
for 5 years in the past/ 5 years in the future and the start year (current year) as the reference point.
• Total values (Indicator): Check this indicator so that overall values can be maintained for budget.

• Annual values (Indicator): Check this indicator if business prefer to maintain the budget on annual
basis.

• Representation: • Decimal places and the Scaling factor would help in controlling the layout of the
filed group values that have constant units.

• Decimal Places – Number of Decimal Places (say ‘2’ )

• Exchange Rate Type – M

Maintain the exchange rate type that would be used for the BAC calculations.

• Program Type Budget – Program type for budgeting In case of Investment Projects, this field will be
significant, as this will ensure that WBS elements with a given budget profile cannot receive overall or
annual budgets unless the WBS element (or a WBS element above it in the hierarchy) is assigned to a
program position of an investment program with the correct program type entered here.

Select the Program Type for the Budget Profile, example “Z001”

• Activation Type – Availability Control Activation Type

This Field determines whether and how availability control should be activated.
There are three activation types:

0 = cannot activate: This activity type may cause an already active availability control to be deactivated.

1 = automatic activation when budget is assigned. Upon selecting this activation type, at least one
tolerance limit should be maintained for the budget profile.

2 = background activation when percentage of consumption is exceeded For the Project used in this
illustration, as we want to activate Budget Availability

Control when Budget is allocated, maintained the Activation Type as “1“

• Usage – Usage in % for background activator.

– Use this indicator, only when the activation type ‘2’ has been used. By maintaining a percentage value
in this field, say 50, the system will activate BAC when the assigned funds of the WBS is more than the 50
% of the budget available on the WBS. Since we have opted for Activation type ‘1’ – Automatic activation
during Budget allocation, this usage field is left blank.

• Overall- Availability control against overall value.

– Select the Overall indicator so that the budget checks would be done against the Overall budget values
and not against the annual values.

• Object Currency (Indicator) – Availability Control in Object Currency

– In case if business prefers budget checks to be done against the Object currency values, only then
check this indicator.

• Releases(Indicator) – Availability control against releases

– If the business requirement is such that the budget is released as and when required and the budget
check accordingly should be for the released budget

only, then check this indicator. If the Budget check needs to be done for the entire amount budgeted,
then leave this indicator deselected.

• Budgeting Currency-

– Controlling Area Currency(Indicator) – Budgeting/Planning in the Controlling Area Currency

– Object Currency (Indicator) – Budgeting/Planning in the Object Currency

– Transaction curency (Indicator) – Budgeting/Planning in the Transaction Currency

Select the Controlling Area currency.

• Save the Budget Profile.

Result

Configuration of Budget Profile is completed for which Tolerance limits are to be set.

Example

Below is the screen shot for Budget Profile ZCAP as an Example.

Define Tolerance Limits

Tolerance Limits are set for defining what actions are to be taken when the Budget is overrun. Example:
Warning will be shown if the Budget Exceeds 70% of Budget available. Warning with mail to the Person
responsible when the Budget Exceeds 90% of Budget available. Hard stop Error will be shown if the
Budget Exceeds 100% of Budget available. Different Budget Profiles can have different Tolerance
settings.

Detail Configuration steps with screen shot for Tolerance limits are listed below:

• Go to Maintain Define Tolerance Limits using the Menu Path stated below:

Menu Path SPRO –> SAP Reference IMG –> Costs –> Budget –> Tolerance Budget

Select “New Entries”

• COAr – Controlling Area. Enter Controlling area.

• Prof. – Budget Profile

Enter Budget Profile for which you want to set the Tolerance Limits. In this example, “ZCAP”

Tr. Grp – Tolerance Group

Tolerance Group is the Activity Group for which you want to set the Tolerance

limits.

E.g. Activity Group 00 – Purchase Requisition, Tolerance settings for this activity group will be applied
only for Budget overrun due to Purchase Requisition.

Below is the list of allowed Activity Groups:

Select Activity Group “00” for setting Tolerance limits to give warning message and an email when PR
exceeds 90% of Budget.

• Act. – Availability control action

This field indicates what action is triggered if the defined tolerance limit is exceeded.

Enter “2” in this field as we want a warning message and an email when PR exceeds 90% of Budget.

• Usage – Usage rate in %

The “usage” represents the ratio of funds commitments to the budget, expressed as a percentage. If this
value is exceeded because of budget reductions or assigned funds in commitments which are too high,
the specified action is triggered.

Enter “90” in Usage Field.

• Save the Tolerance Limits for PR for 90% Usage.

• Below is sample of business requirement for Tolerance Limits for below Activity Group and Budget
Profile combinations.

Result

Tolerance Limits were successfully set for Budget Profiles and Activity Groups.

Example

Below is the screen shot of a Tolerance Settings for Budget profile ZCAP when budget exceeds 90% and
100% of WBS Budget.

Examples of BAC actions:

• Created a project (FS00141) and assigned the WBS FS00141 to an Investment Program.

• Distributed the budget to the project using transaction IM52 for a value (USD 1000.00).
• Since the activation type maintained for the budget profile ZCAP is automatic activation upon budget
allocation, the status of the WBS for which the budget is

distributed will now be BUDG AVAC

• WBS Person responsible is maintained on the WBS

Now create a PR for USD 901.00, which is 90.1% of the available budget (USD 1000.00). In this example,
created PR for qty 1, hence the valuation price is same as the PR amount.

Check that the account assigned object is the WBS element for which the budget has been maintained.
• If the requisitioned tries to save the PR, then system will pop-up the below messages

• Once the PR is saved, a warning mail will be triggered to the person responsible maintained on the
WBS. Below is the screen shot of how the message will look like at the SAP Business Workplace (SBWP)
in the inbox of the person responsible maintained on the WBS.
• In the above message, the following details can be noticed.

– PR number which has triggered this warning message

– WBS FS00141 for which the PR has been assigned and for which the budget check was done

– Assigned funds are 99.00 USD less than budget which means the available budget on the WBS is now
99.00 USD

• For this same WBS copying the above created PR 20001251, if the Purchase Order is tried to create for
USD 1001.00 which is a dollar over the budget allocated, the system as per the tolerance limit set (Hard
stop error when assigned funds exceed 100% of available budget) should throw a hard stop error.

• With reference to PR 20001251, create a PO for USD 1,001.00. Check that the WBS is the same used on
the PR and budgeted FS00141

• When the buyer, tries to save the PO, the following message window will pop-up and prevents from
saving the PO. The message displays the amount by which the available budget exceeded. (USD 1.00)
• Similarly in case of the other activity groups, BAC would trigger appropriate action based on the
tolerance limits set.

How availability control works

Several time we will have budget issues in project system. I am giving some examples how the Project
System availability control behaves & its consequences.

Note : In this case I am taking example of direct FI Posting to the WBS Elements

Step 1 ) Creation of 4 WBS elements for Testing

Step 2) Assigning & releasing budget for the specific Budget H-0021-4

Here I enter Rs.1000/- as a Budget & released Rs.800/- only. The same you can get it in the PS Budget
Report CJ32

Note the Budget is allocated only in the higher WBS Element i.e., H-021 only
Step 3 ) Booking the expenses using FB50 for the 4th level WBS element H-0021-04, even though the
budget allocated at Higher WBS Element. Here system will allow to post expenses or not..? let see..!
Its saving with out giving any error message & it consider the Budget from the top level WBS
Element. isn’t it..?

Step 4 ) Check the Budget Report :

You can observe in the 4th line item, availability as 100 -ve value & the actual and assigned value as
100/-. It is because we have done some postings to the 4th level WBS Element.

In the top level WBS Element, Current budget is 1000/-, Released is 800/-, Actual cost is 100/- (This is
4th Level WBS Element Actual amount), Finally it is showing that Available Budget as 900.
Step 5) Now, I distributed budget amount 200/- to the 4th level WBS Element

Here it shows that available or remaining 200/- at 4th WBS Element. If you are trying to post 100 then,
will the system allow you to post ..? Lets see…! A document has posted with 100/- INR. Now the
Available balance is 100/- INR.
Step 6) If the Available balance is 100/- INR, then trying to post 250/- to the 4th level WBS. As per the
standard report it should allow up to 200 since its showing for 200/-, but here the life has changed to
error message…!

As expected system should through an error message stating that “150/- Budget exceed. (Since
Available Balance = 100 & Posted amount 250 = -150)

its giving the error message for 150/- even through 200/- available in the specific WBS Element budget.
Reason : System behavior is, after distribution to the 4th WBS system will consider 100/- already
consumed with -ve value. After assigning that it will consume the first & remain value would be 100/- &
the invoicing amount would 250/- that is the reason, error triggered for 150.

But the budget report it shows availability for 200/-. max time business have a confusing since it
showing in budget available, even though system will not allow you to process further due to the above
error.

Using Validations in Project System with Examples

Purpose

The purpose of this blog is to help the beginners in creating validation in Project system, also it lists
some examples of the commonly used validations with prerequsities and checks.

Validation

SAP Help explains validation as a check of values or combination of values in the SAP environment. In
the Std SAP System almost all data’s are validated against some tables or master datas. In addition to
SAP defined validation, a user can define his own set of validation to carry out project specific checks.

A validation has three areas, Pre-requisites, Checks & Messages.

Pre-requisites:

It is the statement which determines whether validation should be carried out or not. If the statement is
true, then system proceeds to check area otherwise allows the transaction.

Check:

This is the condition which is to be validated. If the statement is true, then the transaction continues, but
if the statement is false, the system displays the message.

Message:

This is the message which is to be displayed if the check statement fails.

Validation in Project system:

You can create the validations for Project systems using Tcode OPSI or from the following menu path:

SPRO >Project system> Structures> Operative Structures> Work Breakdown Structure/Network> Maintain
Validation.
Once you create the validation, this validation should be maintained in Project profile (for Project
Definition and WBS element) or in Network Profile (for Network header and Network Activity) Make
sure to tick the check box automatic validation in project profile, so that system performs validation
automatically whenever you save the project.

You can assign only one validation name per object, say project definition or WBS Element, in project
profile. But you can create 999 validation steps for a single validation name.

Examples of Commonly used Validation:

Purpose Pre-requisite Check Action

To allow specific project PROJ-PSPID like A* PROJ-PROFL = ‘1000’ System checks if the
codes for specific project project code starts with A,
profiles then project profile 1000
has been used or not.
To check 1st level WBSE PRPS-STUFE = ‘1’ PRPS-POSID = System checks First level
code is same as project WBSE and Project
code PROJ-PSPID definition number are same
or not
To check project code and PROJ-PROFL = ‘00001’ PRPS-POSID :1-X: = System allows to have
WBSE code are same different WBSE code under
PROJ-PSPID a project code, in order to
avoid this, you can perform
this check. Here, X
denotes the length of the
project without special
characters.
To check specific PROJ-PROFL = ‘00001’ PRPS-POSID :X-X: = ‘A’ System checks whether
characters in the WBSE the ‘X’ th position of WBSE
code code is ‘A’ for the project
profile 00001
To allow only certain user PRPS-PRCTR <> ‘ ‘ SYST-UNAME = ‘ABC’ System allows only user
to enter a value in certain ABC to enter the value for
fields Profit center for all WBSE
To make project type PROJ-PROFL = ‘001’ PRPS-PRART <> ‘ ‘ System checks whether
mandatory for particular the project type has been
project profile and for AND entered for 1st level WBSE
1st level WBSE of the project with profile
PRPS-STUFE = ‘1’ 001
To make resp cost center CAUFVD-PROFID = ‘0001’ CAUFVD-KOSTV System makes sure that
as madatory field for a resp. cost center is filled for
particular network type and AND <> ‘ ‘ a particular network profile
profile. and network type.
CAUFVD-AUART = ‘PS02’

Useful link:
http://help.sap.com/erp2005_ehp_04/helpdata/en/da/6ada3889432f48e10000000a114084/frameset.
htm

You can read more about validations in this help section.

Define budget profile

Blogpost link: https://blogs.sap.com/2015/02/10/create-budget-profile-and-activate-availability-

control/

Reference to my previous document related to budgeting on Asset Purchase Budget on Asset Purchase. i
will explain in this document how to create budget profile that you need to assign to internal order.

The budget process for internal orders have the advantage of availability control. This is where the
system can be set to check if there is budget available for the internal order before allowing the posting
of costs.

The customizing of availability control is made of the below steps:

1.Maintain the budget profile.

2.Maintain number ranges for budgeting.

3.Define tolerance limits for the availability control.

4.Specify exempt cost elements from the availability control.

5.Maintain the budget manager.

Below we will go through details of every step:

1) Maintain the budget profile

T-code: OKOB

Menu Path : Controlling- Internal Orders- Budgeting and Availability Control – Maintain Budget Profile.

In the budget profile, you customize the behavior of budgeting by defining the below parameters:
*Time Frame

*Currency Translation

*Representation

*Investment Management

*Availability Control

* Budgeting Currency

In the Time Frame section, you will define how many years in the past and how many years into the
future you want to create the budget, and if the budget will be total values or annual values. If the
Annual values indicator is checked, you can split the overall budgeting by year.

In the Currency Translation Section you need to define the exchange rate type to be used in the
budgeting.

The Representation section allows you to define the decimal places for the budgeting amounts.
In the Availability Control section, you need to define how the system will determine the budget control:

in Activation Type you need to choose (1) Automatic activation during budget allocation, you can also
set if the budget control should consider the overall budget or by year by check the overall box or the
budget will be calculated on total value base.

2) Maintain Number Ranges for Budgeting

T-Code: OK11

Menu Path: Controlling-Internal Orders- Budgeting and Availability Control-Maintain Number Ranges
for Budgeting

3) Define Tolerance Limits for Availability Control

Menu Path: Controlling – Internal Orders – Budgeting and Availability Control-Define Tolerance Limits
for Availability Control.

If you want the SAP to control the internal order budget . yin this step you indicate if any overspending
should trigger a warning message or error message preventing posting of the transaction.
Enter your controlling Area and profile budget and choose the type of transaction that you would to
activate the availability control in Usage

in action field you have a choice between below actions : Warning , Warning with Mail to person
responsible or Error Message.

also you need to define the usage in % which will trigger the action you choose once the consumed
budget reach this limit.

4) Specify Exempt Cost Elements from Availability Control

T-code: OPTK

Menu Path: Controlling-Internal Orders-Budgeting and Availability Control-Specify Exempt Cost

Elements from Availability Control

You can define the cost element that you want to be ignored in the internal order availability control.
5) Maintain Budget Manager

T-code: OK14

Menu path : Controlling- Internal Orders- Budgeting and Availability Control-Maintain Budget Manager

The budget manager is the SAP user who will receive the email when specified tolerance levels are
reached.

Finally you need to maintain this budget profile in your internal order structure though T-code KOT2
Define Project Profile

Blogpost link:
https://www.tutorialspoint.com/sap_ps/sap_ps_project_profile.htm#:~:text=Advertisements,be%20cha
nged%20at%20later%20stage.

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. This information can be changed at later stage.

Note that the values in the project profile is used to maintain the functions of certain areas of the
Project System and should only be changed without considering all the factors. You should not change
the keys related to costing sheet or the results analysis key as these can change existing system.

You must maintain the following information under project profile section −

Basic data

Time scheduling

Costs/revenues/finances

Organizational data
A standard R/3 System contains the predefined project profile that has the most important control
parameters.

To create a Project profile −

Step 1 − Use T-code: OPSA or go to SPRO → IMG → Project Systems → Structure → Operative Structures
→ Work Breakdown structure → Create Project Profile.

Step 2 − To create a new profile, click New Entries on Project Profile Overview screen.

On the New Entries screen, enter the following details −

Proj.prof. − Enter the unique ID that identifies project profile in SAP system.

Project Type − Category to which project belongs.

Field Key − Select field key from the drop-down list. You can select different field keys for different
projects as shown below −
In the new window, select the following −

Display Options − This determined how the project will be identified in project builder.

All account assessment element − This has to be selected if all WBS has to be created using this profile.

Project summarize master data − Select this field to summarize the master data in project. This is used
to perform any reports.

Project Stock − Default is no stock option.

Next, go to Organization tab. You have to enter the following details under the Organization tab −

Controlling Area − Enter Controlling area belongs to project profile

Company Code − Enter the company code that belongs to Control area

Business area − Enter business area belongs to company code and controlling area

Plant − Enter plant code belongs to company code

Functional area − Enter functional area key

Profit Center − Enter profit center belongs to controlling area

Project Currency − Enter project currency

Click the save button at the top to save the project profile.

How to create Project Type for WBS

Blogpost link: https://www.tutorialkart.com/sap-ps/how-to-create-project-types-for-wbs-element/

In this activity, you create project types for WBS Element in SAP using the transaction code OPSO.

Navigation

SAP R/3 Role

Maintain Project Types
Menu

Transaction
OPSO
Code

SPRO > Project System > Structures > Operative Structures > Work break
SAP IMG Path
down structure > Create Project types for WBS element

Configuration Steps

Learn how to configure project types for WBS element in SAP using the transaction code “OPSO”.

Step 1: Execute t-code “OPSO” from SAP Command field.

Step 2: On change view project types overview screen, choose new entries button for maintain the new
project types in SAP system as per requirements of project.
Step 3: On new entries overview of added entries screen, enter the following details

Typ: Enter the two digits key that defines as project type in SAP

Description: Enter the description of project type for WBS

Choose save button to save the created project types for WBS element in SAP.

Define Budget Tolerance limit

Blogpost Link: https://www.saponlinetutorials.com/define-budget-tolerance-limits/

Budget tolerance limits are defined for availability control to specify the tolerance limits for a activity
group. You can maintain tolerance limits in SAP by using the following SAP menu path navigation
method.

SPRO >> IMG (F5) >> Project system >> Costs >> Cost >> Budget >> Define tolerance limits

Step 1: – Enter transaction code “SPRO” in command field and press enter, In next screen click on “SAP
Reference IMG” and follow the path and click define tolerance limits.

Step 2: – On project availability control tolerance limits overview screen, click on “new entries” to
maintain tolerance limits as per business requirements.

Step 3: – On new entries screen, update the following fields.

COAr: – Update the controlling area that you want to specify the tolerance limits

Prof: – Update the budget profile ID

Text: – It displays the budget profile description

Tr.Grp: – Tolerance group specifies the type of tolerance that applies for budgeting. Update the
tolerance group from the drop down list.

Act: – Update the activation key from the drop down list, it determines to action when tolerance limit is
exceeded.

Usage: – Update the percentage of budget that you want to activate the key when amount is exceeded.

After updating all the required details, click on save button and save the configured budget tolerance
limits.

Successfully we have defined tolerance limits for project availability control in SAP system.

Settlement Profile configuration

Blogpost Link: https://blogs.sap.com/2020/09/07/settlement-profile-configuration/

Introduction –

The settlement profile is a prerequisite for settlement process flow.

In this blog post, will try to cover parameters related to the Settlement profile configuration.

Settlement profile configuration

Parameters for configuration explained as below –

Actual Cost/ Cost of Sales

To be settled in full – Object needs to be with value 0, before close status or deletion flag.

Can be settled – Only warning message, when Object is set to close status or deletion flag, if the
balance, not 0.

Not for settlement – No message, when you set the close status for the object or deletion flag, even if
the balance is not 0.

Valid Receivers

Multiple options available, as an example – WBSE, CC, Network, FXA, G/L, Sales order, Material, Profit
segment, Order, Order Item, etc.
Choose “settlement not allowed” – To exclude the receiver from settlement rule

Choose ” can be settled “ – Can include receiver in settlement rule.

Choose ” Must be settled “ – Must include receiver in one settlement rule at least.

Default Values

Allocation structure – Used to Allocate cost posted/incurred on a sender by cost element or cost
element group.

Source structure – It is used to split costs posted by cost element, further settle costs incurred on the
sender to various receivers.

PA transfer structure – Used to transfer, FI posting to Profitability Analysis. In PA transfer structure

relevant accounts are assigned to value fields in Profitability Analysis, through assignment lines.

Default object type – Default receiver object type for the rule

Indicators

100%-validation – Set this indicator. The system issues a warning when total is <> 100%. Else, system
issues a warning, when the total is > 100%.

%-Settlement – This indicator, allows the use of costs to be settled, distributed in percentage.

Equivalence Numbers – This indicator, allows the use of costs to be settled, using equivalence
proportion.

Amount Settlement – This indicator, allows the use of costs to be settled, using Amount.
Variances to Costing Based PA – This indicator, allows variances to pass to Costing Based PA during order
settlement.

Other Parameters

Document type – Doc type for Settlement

Maximum number distribution .rules – Maximum number of distribution rules for each settlement rule.
The settlement rule is a combination or else comprise of distribution rule. No Distribution rule, no
settlement!

Note – In the last step, assign the project profile to the settlement profile.

Conclusion –

This blog post highlights the config parameters of settlement profile. In the next edition will cover the
process flow of settlement.

SAP PS TABLE
Budget Management
Introduction

A project consists of many phases – Concept/ Planning/ Execution & Closure. The Project cost is
estimated during the Planning Phase, accordingly the available fund is prescribed for the project in the
form of a budget. Budget is the device by which management approves the expected development of
project costs over a given timeframe.

Content highlighted – Budget Allocation, Budget Update, Budget Release & Availability Control

Budget Allocation

A project can be budgeted in 2 different ways:

 Transfer the values from Planned Cost as Budgeted Amount.

 Enter the Budget directly in the WBS elements.

Transfer the values from Planned Cost as Budgeted Amount.

 Run transaction CJ30, below screen, will appear.

 As a prerequisite, I have already posted Planned Cost, which will be treated as a proposed value
for Budget Allocation.

 Select Planned Total column, & the row for WBSE where you want to copy this Planned Amount
for Budget Allocation, as in the above case I have opted header Level WBSE
 As displayed below, opt for Copy View.
 Path as Edit>>>>Copy View, as below.

 In the below screen, enter the percentage, you want to copy.

 In the above case, the percentage is 100.

 Hence, the budget amount will be 70000000 EUR.
 The budget is allocated at 1st level WBSE, with AVAC Activation.
 With this approach, parents and all its child WBSE’s in the same hierarchy can spend till
70000000 EUR as budget control.

 Difference between “Distributable & Distributed” columns.

 In the above screen, 70000000 EUR is distributable.
  Hence, WBSE which has 70000000 EUR as a distributable amount, can further distribute till
70000000 EUR to its lower level WBSE in the same hierarchy.

Enter the Budget directly in the WBS elements.

 In direct budget allocation – One approach can be bottom-up

 Here child WBSE’s are allocated the amount, followed by total up.
 Path = EDIT>>>TOTAL Up.

 The system will add the allocated amount of child WBSE’s & display the same at header WBSE.
 As in this case, header WBSE has an amount of 4500000 EUR(after total up).
Budget Updates

Unexpected/unforeseen events, additional requirements, price changes for external activities, and other
parameters incline projects for more funds. In such cases, you may need to update the original budget.
There are three types of Budget updates:

 Supplements, Returns & Transfers

Budget Supplement

 Run transaction CJ37

 As in below screen, the current budget is appearing as 4500000 EUR for Prj @ header level
WBSE

 Enter supplement, as displayed below for child WBSE’s as 100000 & 200000 EUR
 Opt, “total up” for the summation at header WBSE
 Follow the path, as displayed below

 Total up will appear as 300000 EUR.

 Initially budget (current) was 4500000 EUR.
 After the supplement, the system will display the current budget, as 4800000 EUR.
Budget Transfer

 Run transaction CJ34, below screen will appear

 Here, I have opted checkbox “Overall Values too”, as the time frame is not yearly, It is overall.

 In the next screen enter sender & receiver WBSE with an amount as currency, as displayed
below
  Press enter & save.

Budget Return

 Run transaction CJ34, below screen will appear

 Enter the amount for child WBSE’s, as displayed below

  After total up, the sum of child-level WBSE’s will appear at header WBSE.

 Changes visible as in the column “Current Budget”.

 Finally, save the transaction.

Budget Release

The budget release is a process of Releasing a specific amount of the total Allocated budget. It is a
dedicated amount, posted through transaction CJ32. Once consumed, you can release the rest of the
amount until the “overall budget” Value/amount is reached.

You cannot post Budget released amount more than total budget amount, displayed as below-
Availability Control

Availability control compares the current distributed budget (or released amount) with the assigned
value, by issuing a warning, warning with mail & error messages when budget exceeds depends on
Tolerance Limits Settings.

 When a project is being executed, the available funds are used at various places within the
Project thereby Commitments are created, and actual costs are incurred.
 Together with the costs of apportioned orders, Commitments and actual costs will form
as Assigned funds.
 Availability control monitors funds using budget allocation. By entering business transactions
that create cost assignments, then the system checks whether there is still sufficient budget
available for the Project.
 Assigned funds can be found in the budgeted WBS element and in the lower-level assignable
WBS elements.
 To ensure that the available funds are not exhausted at an early stage, release the budget in
stages, with AVAC activated on Released Budget Amount.

In the above blog post, I have tried highlighting a basic overview of:

Budget Allocation, Budget Update, Budget Release & Availability Control.

Shall cover other areas like Config, Essential reports, Reconstruct AVAC, & IM integration in the next
blog post.