Business Blueprint Document

Process code : PS.01

Consultant : Mr. Prapanna Ray
Version : 1.0

BUSINESS BLUEPRINT

Project “SANKALP”
PROJECT SYSTEM MODULE
ON SAP ERP

AT
EAST INDIA UDYOG LIMITED

Submitted By
Intellect Bizware Services Pvt. LTD
Scenario – PS.01
SAP PS Overview

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Consultant : Mr. Prapanna Ray
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DOCUMENT CONTROL
Title Project System
Process SAP PS Overview
Project Phase Business Blueprint Phase
Author Prapanna Ray
File Name EIUL-BBP-PS-OVERVIEW
Path Project Repository
Created on 24.03.2021
Last Edited on 14.04.2021

SIGN-OFF
Role Name Signature
BU Head Mr. Surendra Babu
Commercial Head Mr. Darshan Dhiman
Execution Head Mr. Pushpendra Saini
Execution (State Head) Mr. G. Kameshwar Rao

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REVISION HISTORY

Version Issue Revision

Change Details Approved by
No. Date Done by
1.0 Initial version
2.0

Contents
1. OVERVIEW OF SAP PROJECT SYSTEM.......................................................................................................................................................................................5

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1.1 INTRODUCTION...........................................................................................................................................................................................................................5
1.2 PROJECT SYSTEM ORGANIZATION STRUCTURE................................................................................................................................................................7
1.3 MASTER DATA.............................................................................................................................................................................................................................8
1.4 PROJECT STRUCTURING...........................................................................................................................................................................................................9
1.5 OPERATIVE PROJECTS.............................................................................................................................................................................................................10
1.6 WORK BREAKDOWN STRUCTURE.......................................................................................................................................................................................10
1.7 PROJECT PROFILE.....................................................................................................................................................................................................................11
1.8 PROJECT TYPE................................................................................................................................................................................................................................12
1.9 PROJECT CODING MASK.........................................................................................................................................................................................................13
1.10 PROJECT / WBS STATUS..........................................................................................................................................................................................................14
1.11 PERSON RESPONSIBLE............................................................................................................................................................................................................15
1.12 APPLICANT NUMBER...............................................................................................................................................................................................................15
1.13 BUSINESS PROCESS FOR CREATION OF PROJECT............................................................................................................................................................15
1.14 PLANNING...................................................................................................................................................................................................................................17
1.15 PLANNING OF BUDGET...........................................................................................................................................................................................................18
1.16 COST PLAN AND BUDGET PROCESS EXPLAINATION......................................................................................................................................................21
1.17 PROJECT EXECUTION AND MONITORING:.........................................................................................................................................................................22
1.18 PROJECT CONTROL..................................................................................................................................................................................................................23
1.19 BUDGET CHECK........................................................................................................................................................................................................................23
1.20 PS TEXT.......................................................................................................................................................................................................................................23
1.21 PERIODIC SETTELEMENT.......................................................................................................................................................................................................23
1.22 PROJECT CLOSURE...................................................................................................................................................................................................................24
2. MODULE INTEGRATION................................................................................................................................................................................................................25
2.1 MATERIAL MANAGEMENT..............................................................................................................................................................................................................25
2.2 FINANCIAL ACCOUNTING...............................................................................................................................................................................................................26
2.3 CONTROLLING................................................................................................................................................................................................................................27
2.4 SALES AND DISTRIBUTION.............................................................................................................................................................................................................27
3. INFORMATION STRUCTURES......................................................................................................................................................................................................27

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1. OVERVIEW OF SAP PROJECT SYSTEM

1.1 INTRODUCTION
SAP Project System is a project management tools that assists you throughout all phases of project through the high level of integration between SAP
PS and other SAP modules such as Logistics, Accounting, and Human Resources. SAP PS ensures that the necessary business processes are handled
quickly and efficiently. SAP PS provides structure that allows mapping projects flexibly and appropriating structures. Using suitable tools and reports in
SAP PS, one can plan and monitor dates, costs, revenues, budget, resources, material and so on for these structures. Project Systems is a component
module of the SAP system that can be used to plan, execute, and account for complex orders as part of the business processes.

Project Systems provides a central point through which the procurement of materials and services, the planning and scheduling of services and
reporting of milestone dates can be coordinated and tracked. SAP PS is the component of both my SAP Enterprise Resource Planning (my SAP ERP)
and my SAP Product lifecycle Management (my SAP PLM)
Depending on the project type and requirement of project monitoring, one can structure the project. SAP Project System provided two type of
structures for mapping of a projects which are work breakdown structures called WBS and network and activity. One uses a work break down
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structure to organize a project in form of a hierarchy, and so map the structure of project. Network on other hands is used to represent the individual
project activities together with their logical relationships in other words, the flow of the project. One can map a project using just one work break
down or one network. However one can also illustrate a project using a work break down structure and one or more networks in order to use the
characteristics of both structure together. Work break down structure consists of work break down elements (WBS elements) that are arranged at
various levels to produce a hierarchy model of project activities to be carried out. Each individual WBS elements can act as controlling objects in which
one can plan and monitor costs, revenues, payments, budgets, and dates. A network represents the flow of work .the individual tasks in project are
mapped as activities in a network. Activities form the operative basis for planning and controlling dates costs and resources. When activities are
assigned to WBS elements the dates and cost defined in the individual activities are totaled up at WBS level and can be evaluated. One can analyze
order costs for the WBS element and check them against the WBS budget. With the help of progress analysis one can view progress values that reflect
the status of project relative to the individual WBS element or aggregate them according to the project hierarchy.

1.2 PROJECT SYSTEM ORGANIZATION STRUCTURE

Organization structure (unit) is the elements of the logical structure of the SAP system. A strategic unit assists in designing the SAP system into an
Enterprise. The Project System Project System has no organizational structures of its own; you incorporate it into the existing structure by making

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assignments to the organizational units in other modules like Financial, Controlling, Material Management, Sales and Distribution, Production Planning
etc.

1.3 MASTER DATA

Master data is used to bring uniformity in the integrated database so that user can enter transaction data with less effort. Master data is a pre-
requisite for all business transactions.
Various departments viz. design, materials, projects and finance perform task of creating and maintaining these masters. These master data records
are updated or new records are created as and when need arises while executing business transactions in SAP. Masters data created in individual

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modules of SAP. For example, Material Masters are created in MM module. BOMs are created in PP module. Standard WBS, Standard Network, Work
Center are created in PS module G/L account, Cost Centers, Cost Elements, Profit Centers are created in FI/CO module.
We will be using PS, MM, SD, FI, CO, QM, PP modules of SAP S/4 HANA.
Some important master data are given below:

o Material master
o Purchasing masters:
 Vendor master.
 Purchasing info-records
 Vendor master
o Sales masters:
 Customer master.
o Production masters:
 BOM.
 Work Center.
 Resources.
o Finance & Controlling:
 G/L account.
 Cost Centers.
 Cost Elements.
 Costing Sheets.
 Profit Centers

1.4 PROJECT STRUCTURING

 To be able to carry out a project in its entirety, the project goals must be precisely described and the project activities to be carried
out must be structured. A clearly and unambiguously structured project is the basis for its planning, monitoring, control and success.
 Depending on the type of project and the emphasis in project monitoring, the project is structured in the project system using the
work breakdown structure (WBS).
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 The work breakdown structure (WBS) is a model of the project that organizes project tasks into a hierarchy. The main objectives of the WBS are
to split the project into manageable units, define basic dates, and determine its costs.
 The WBS divides the project step-by-step into structure elements. The elements are called work breakdown structure elements (WBS elements)
in the project system. WBS elements are the only structural element in work breakdown structures.
 The project definition is the binding framework for all organizational elements within a project.

Proposed Level -2 WBS (Header WBS) in Project Structure:

 BOQ WBS
 Erection Work WBS
 Admin and Distribution WBS
 Billing WBS
 Finance WBS
 Rework WBS
 DLP Cost WBS

1.5 OPERATIVE PROJECTS

 This is creation of an actual project. This can be either copied from the template or started fresh as a new one. A clearly and unambiguously
structured project is the basis for its planning, monitoring, control and success. It forms the basis for organization and coordination in the
project. It shows the amount of work, the time required, and the costs involved in the project.
 To be able to carry out a project in its entirety, the project goals (WBS elements start and finish date etc.) must be precisely described and the
project activities to be carried out must be structured.
 Following are maintained while defining a project.
o The project definition is the binding framework for all organizational elements within a project.

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o Define overall project start and finish dates (start and finish may change / vary depends upon the project status).
o Determine the project objectives (responsible person, text, etc.).

1.6 WORK BREAKDOWN STRUCTURE

 A work breakdown structure (WBS) is a model of the work to be performed in a project organized in a hierarchical structure (as per the
requirement). The WBS is an important tool, which helps keep an overview of the project.
 Work breakdown structure can be divided for the project into useful steps, specify basic dates, specify the work involved, and determine project
costs.
 The individual levels of the hierarchy in a work breakdown structure will enable “EIUL” to organize a project into steps.
 The WBS can further be broken down into steps of individual elements. These elements are referred to as work breakdown structure elements
(WBS elements) in the project system.
 Depending on the phase of the project, continue to break down the tasks and activities in the project, step-by-step, till the level of detail
necessary to carry it out is reached.
 The individual WBS elements represent activities within the work breakdown structure. The elements are called work breakdown structure
elements (WBS elements) in the project system. The data that can be maintained for WBS elements is as follows: -
o Basic Data: Basic data (start date and finish date and description for each WBS element which will be within project date.
o Project Type & Priority: The project type / priorities are used to sort a WBS element according to particular categories and evaluate in
the information system.
o Operative Indicators: The operative indicators define the controlling properties of the WBS elements. The WBS element contains three
operative indicators, which are as follows: -
 Planning element
 Account assignment element
 Billing element.
o Organization Data: The controlling area in the project definition is valid for the entire project whereas WBS elements can be assigned to
different plants, company codes.
o Project Responsibilities: Maintain person responsible for each WBS element.
o Documents: Add PS texts and link a document to WBS element.

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o Control Data: – These are various default profile set for control purpose.

1.7 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. This information can be changed at later stage.
 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

Proposed Project Profile:

Project Profile Description

Z000001 EIUL Electrical Projects (Domestic)
Y000001 EIUL Electrical Projects (International)
Z000002 EIUL Water Project

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Z000003 EIUL Smart Solution Project

1.8 Project Type

 A Project type is used to group or classify the projects as required.
 A Project type is used for reporting purpose.
 It is also used for building authorization and for creating hierarchies and network in project planning.

Proposed Project Type:

Project Type Description

Z1 Supply and Erection.

Z2 Supply.

Z3 Erection.

Z4 Other

1.9 PROJECT CODING MASK

 Each type of project will have a project code in the system which can be standardized using the “Project Coding Mask.”
 EIUL shall set up the project system so that project number can be broken into several sections via special characters.
 The way this number is structured depends on the first characters of the project number. These characters are used as keys for project
coding.

Proposed Coding Mask:

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Coding Mask Description Coding Logic

PT/0000/00/0000/000 Power Transmission Coding Mask First character of Power Transmission/Running Number/L-1 WBS/
L-2 WBS/L-3 WBS/L-4 WBS
PD/0000/00/0000/000 Power Distribution Coding Mask First character of Power Distribution/Running Number/L-1 WBS/
L-2 WBS/L-3 WBS/L-4 WBS
SS/0000/00/0000/000 Smart Solution Coding Mask First character of Smart Solution/Running Number/L-1 WBS/
L-2 WBS/L-3 WBS/L-4 WBS
WA/0000/00/0000/000 Water Coding Mask First Two character of WAter /Running Number/L-1 WBS/
L-2 WBS/L-3 WBS/L-4 WBS

1.10 PROJECT / WBS STATUS

 Statuses define which business transaction is currently possible for the respective project definition or WBS element. In general, a status
either allows a business transaction or allows the transaction but generate a warning or prohibit the transaction.
 Status for Project definition & WBS elements are differentiated between: -
o System status
o User status

SYSTEM STATUS:
 System status is a status of a project definition or WBS element that are predefined in the system.

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 System status are either automatically set by the system based on different business processes (such as budgeting or entering actual dates)
or manually assigned by the user.
 Following are some important system statuses that can be set manually: -
o Released (REL): In this status, cost and revenue can be assigned to WBS element. This status is automatically passed on to
subordinate WBS element and cannot be reset.
o Technically Completed (TECO): The status for project or WBS element that are completed from a technical point of view but where it
still expects costs to accrue. This status does not allow any planning activities but allows the account assignment of committed costs
and revenues. However, costs through FI module can be booked even after this status. This status is automatically passed on to
subordinate WBS element and can be reset.
o Closed (CLSD): The status for a project definition or WBS element that has been completed from both a logistic and an accounting
point of view. This status not only prohibits planning activities, but also posting of actual cost and revenues. This status is
automatically passed on to subordinate WBS element and can be reset (resetting this status leads to TECO status).
o Deletion Flag (DLFL): The deletion flag status designates work breakdown structures or WBS elements that have been flagged for
deletion. This means that the objects are deleted logically, but not physically. This status prohibits all business transactions. This
status is automatically passed on to subordinate WBS element and can be reset.
o Locked: The use of this status to either lock individual business transactions or all the data in a work breakdown structure or WBS
element, this can be set the following statuses:
o
 Account assignment locked (AALK)
 Master data locked (MDLK)
We can set these statuses in addition to every other status except deletion flag. The statuses are not passed on to subordinate WBS elements
and can be reset.

 Following are some important system statuses that is set automatically by system: -
o Created (CRTD): This is the initial system status for a new project or WBS element. In this status you structure the project and plan
dates, costs, and revenues. The system sets this status automatically when you create a new project or WBS element.
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o Budgeted (BUDG): This status is automatically set by the system when budgeting for a WBS element is done.
o Availability Control Active (AVAC): This status is automatically set by the system when availability control is activated.

1.11 PERSON RESPONSIBLE

 Each WBS is assigned to a responsible person. The person responsible for WBS is also an authorization object in SAP PS. This matter will be
used to separate access to WBS along specific parameters.
 Please note that SAP PS will provide and maintain its own table with person responsible for WBS elements. There will be no link to the
employee number which is separately maintained in SAP module human resources (HR).

1.12 APPLICANT NUMBER

 The project applicant will be project-owning department. In addition, it might be helpful to specify a number for project applicants along
departments for reporting reasons.

1.13 BUSINESS PROCESS FOR CREATION OF PROJECT

 The process of project structuring will start with creating the project definition using the project profile and entering other data such as start
date, finish date, person responsible etc.
 Once the project definition is created the WBS structure is created by entering the WBS element & description using the defined project
coding mask.
 There will be only one level 1 WBS element. The level 1 WBS element will be same as of the project definition & its description is same as of
the project or plant name.
 As any WBS element is created, its system status is CRTD (Created) (this status is set automatically by the system when WBS is created).
 The system status CRTD will not allow to book any actual cost.
 Save the project once the WBS structure is created.

 If there is any change (add or delete) in WBS structure, add or delete the WBS
 element and save the project.
 Once the final structure is ready, original budgeting will be done.
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 If you want to delete a WBS element, then first check whether it is budgeted or not.
 If the WBS element does not contain any budget, then you can delete the WBS Element. But if it contains budget, then you must first remove
the budget from.
 That WBS element and then you have to set deletion flag. You cannot delete a WBS
 element if contains a budget.
 After the releasing the WBS element, if you want to add any WBS element then you can add the WBS element.
 After releasing a WBS element, you can only delete those WBS elements which do not have budget.
 Those WBS elements which have budget, cannot be deleted, instead can be set to deletion flag after making the budget value to zero through
budget update process.
 To delete those WBS elements which have commitments, remove the commitments, and make the budget value to zero and then set deletion
flag.

1.14 PLANNING

PLANNING OF COST:

 Cost planning deals with the cost that is expected to incur in connection with the project. Cost plan has different aims at
different stages of the project. At the design and rough planning stage, cost planning acts as the base for initial cost
estimate.
 At the approval stage, it forms the basis for the budget allocation. During the execution stage, cost planning is used to
compare plan cost and actual cost and analyse variance.
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PLANNING PROFILE:

 The planning profiles are needed to be configured to plan the cost at overall level.
 The system considers the settings that you make in the planning profile during manual planning and during VSR
optimization (interactive and in the background, see VSR Optimization).

Proposed Planning Profile:

Planning Profile Description

Z000001 EIUL Electrical Projects Planning Profile (Domestic)
Y000001 EIUL Electrical Projects Planning Profile (International)
Z000002 EIUL Water Project Planning Profile
Z000003 EIUL Smart Solution Project Planning Profile

CO VERSION
 During the planning and execution phase, plan cost for a WBS element keeps on changing. CO versions enables you to plan
several different costs for a single WBS element. Plan cost is always done with reference to a CO version.
 Planning of cost should to be done in version “1” When there is a change in the plan cost, the existing plan cost of Version
“0” needs to be changed in version 0 itself.

Note: When Controlling area is created, the system automatically creates the CO version “Plan/Actual (Version 0)”.

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1.15 PLANNING OF BUDGET

 The budget is the approved cost structure for a project. It may differ from project cost planning or as per the
requirements. Costs are estimated as accurately as possible during the planning phase.
 On conclusion of the planning phase, a decision-making body will approve the project, and a planned budget will be
assigned to it.
 Budget can be created for project by Adopting the values from cost planning as budget or Entering budget values directly
into the WBS elements.
 The project system recognizes the following different budget types: -
o Original Budget: The original budget is the budget initially allocated - that is, the budget before any updates
(changes) were carried out. From a point in time, it can only be amended by means of budget updates (changes in
Budget) after the necessary approvals from the management (manually).
o Budget Updates: Unforeseen events, additional requirements, price rises, and so on may mean that, there is a
need to correct the original budget - that is, budget updates (changes in the budget).
o There are three types of budget updates:
 Budget Supplements: (Addition to the budget) If the funds available are not sufficient, “BT
INTERNATIONAL” can create budget supplements, enabling itself to continue work on It’s project. There
are two types of supplements in the project system:
 Within Projects: Supplements within projects are distributed top-down from a higher-level WBS element
to lower-level ones. The amount of a supplement to a WBS element may not exceed the funds available in
the next level up. How much budget is available is determined by the distributable value or the available
value. The available value is the difference between the distributable value and the assigned value.
 To Projects: Supplements to projects, enables to target budget supplements - that is, assigns
supplementary funds to a selected WBS element from outside that element, regardless of how much
budget is still available higher up in the hierarchy. The budget thus added is updated upwards in the
hierarchy.
o Budget Returns: Excess funds can be returned. This can be done in the following two ways:

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 Within Projects: Returns within projects follow the bottom-up principle, from a lower-level WBS element
to a higher-level one. Only budget, which is still distributable or available, can be returned. The system
calculates the budget available/distributable in controlling area currency and includes budget line items
entered in other currencies.
 From Projects: With a return from a project, budget that is still available or distributable in a WBS element.
The effect of the return is recorded within the project - meaning that the overall budget is reduced.
 Budget Transfers: Within a responsibility area, it may happen that one project is running short of funds
while another still has plenty. Transfer is a tool, which enables the available budget in one project at the
disposal of another. Additionally, the WBS elements involved may belong to the same project or to
different ones.
o Budget Release: In many businesses, budget distribution is not the same as releasing the funds. For this reason,
the project system includes a separate funds release facility, which can be used to make successive budget
releases. The release is based on the current budget. For example in the organization for a particular project if
“X” amount is the sanctioned budget but whereas allocated budget can be only some percentage of “X” then the
budget release facility is adopted.
o Current Budget: The current budget is shown in the information system as budget values. The current budget is
calculated as follows:

Original budget + Supplements – Returns +/- Transfers = Current budget

The current distributable budget forms the basis for availability control as per the released budget (the system checks automatically the
availability of budget while creating PR / PO as per the tolerances {80 % budget reaches the system will give warning message and after
reaching 100 % the system gives error message} and automatically stops generating the PR / PO).

 Budgeting Methods:

The project system supports top-down budget planning. In top-down planning, the budget plan values are distributed from the upper to
the lower WBS planning elements. For budgeting the top-down planning is required to have better control over the distribution of the
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funds available. Within the project structure, the system ensures that the funds in lower-level WBS elements (distributed values) do not
exceed those in the higher-level elements. The project system also supports bottom-up budget planning. In bottom-up planning, the
budget plan values are distributed from the lower WBS planning elements. Since the system doesn’t support to total up the top WBS
planning element automatically, hence the total up at top WBS planning element has to be done by clicking Edit Total up or F9.

 Budget in Time Frame:

Based on the project stage and the details available and required, the budgeting can be done across the time frame of the project
duration. The budget can be planned for Overall values or annual values or Both.

 Budget Profile & Availability Control Tolerances

o BUDGET PROFILE
 The budgeting profiles are needed to be configured to plan the budgets at overall level.
 We can control various parameters over budget by assigning specific budget profile to your project.

Proposed Budget Profile:

Budget Profile Description

Z000001 EIUL Electrical Projects Planning Profile (Domestic)
Y000001 EIUL Electrical Projects Planning Profile (International)
Z000002 EIUL Water Project Planning Profile
Z000003 EIUL Smart Solution Project Planning Profile

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AVAILABILITY CONTROL TOLERANCES:

o You can set tolerances over budget profile according to requirements of your businesses. Few scenarios as
follows.
 If the assigned value exceeds to 80% of the budget – system should give warning message.
 If the assigned value exceeds to 90% of the budget – system should give warning message with mail to
person responsible.
 If the actual value exceeds 100% of the budget – system should give error message and stop from further
processing.

1.16 COST PLAN AND BUDGET PROCESS EXPLAINATION

 Planning of cost & budgeting will be done at highest level WBS elements.
 The process of planning of cost will be as follows:
o Planning of cost is possible in those WBS elements which are defined as planning elements (those WBS elements on
which operative indicator PE is checked).
o Planning of cost will be done in version 1 (Plan Version) only.
o The process of planning of cost will start with entering the planed cost directly into the planning WBS elements at overall.
o After planning the cost in version 1 (Plan Version), plan cost need to be copied in version 0 (Plan/Actual Version).
o Copying of cost from one version to another version will be done through standard copy transactions.
o Original budgeting for the WBS element will be done either copying it from plan cost or manually entering the budget
values in the WBS elements.
 The process of original budgeting by copying from plan cost will be as follows:
o Select those WBS elements for which budgeting needs to be done.
o After selecting the WBS elements, copy view function needs to be done. In copy view function view 05 (planned total)
need to be selected. The copy view function will overwrite or add the values in percentage or in absolute figures (as
provided) from the view selected.
 Any change in budget values will be done through budget updates process (supplements, returns & transfers).
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 If there is an increase in the budget, then it will be done by supplementing the additional budget to the WBS element at Current
Year (supplement to the project).
 If there is a decrease in the budget, then it will be done by returning the additional budget from the WBS element (return from
the project). If there is a transfer in the budget, then it will be done by transferring the additional budget from sender WBS
element to receiver WBS element from one year to another.
 After any update in the budget (supplements, returns & transfers), plan cost also need to be updated. This will have to be done
manually.

1.17 PROJECT EXECUTION AND MONITORING:

 Project execution is a phase at which actual cost, actual revenue; actual dates and so on will be posted to a project. Any projects
before going to the execution phase, needs to be released in PS. It means before giving confirmations to an operative project, the
status of the project should be changed to REL (release).
 No cost booking is possible in a project till the time the project status is changed from created (CRTD) to Release (REL).

1.18 PROJECT CONTROL

 During the project execution phase, the project should have control over the planned budget values and the actual values. Any
actual values exceeding the planned budget value should be controlled and proper approvals need to be taken and then the work
needs to be carried out.
 Project is controlled by status (system & user) and availability control.

1.19 BUDGET CHECK

 This component enables to monitor and control project costs. The project manager can use availability control (as per the
tolerances maintained in configuration).

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 Availability control enables you to control costs actively by issuing warning, warning with mail to person responsible and error
messages when costs are incurred. Availability control checks the current distributable budget (or release) against the assigned
value.

1.20 PS TEXT

 PS texts are text created and managed in the project system. During project processing, you can enter information, such as
requirements definitions, work package definitions, or logs, directly into the project system, in the form of PS texts.

1.21 PERIODIC SETTELEMENT

 Settlement is the process where the actual costs incurred for a WBS element are allocated, in whole or in part, to one or more
receivers. The debit postings remain in the receivers (WBS elements / Cost centre / WIP), where they can display them.
 Settlement rule need to be created for WBS – which contains settlement profile, source structure, distribution structure. Within
settlement rule, distribution rules are created, which defines the percentage / amount to be allocated to receiving WBS.
Maximum number of distribution rules that can be made for any WBS is 999.
 A prerequisite for settlement is that:
o The relevant objects should have system status "Released" at WBS element.
o The settlement rule must have been defined in the WBS as account assignment element (WBS element/ sales order/cost
centre / fixed asset.
o Settlement can be done to another WBS.
o Common costs can be settled from common WBS to individual WBS / asset by defining appropriate settlement /
distribution rule.
o The sender (WBS element) object should have actual cost incurred in the WBS account assignment element.
o As the project is executed, project person will make sure, at the end of each period that all the cost data belonging to the
project are settled, the fewer WBS elements in the project, the better the performance of the project functions.

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o Costs can be transferred to capital work in progress (WIP) periodically without waiting for the entire project completion
or can be transferred to cost centre for non-capitalized costs. The settled costs are recorded in the relevant receiver, and
it can be evaluated in reporting.
 Following are the two-settlement type: -
o DIRECT SETTLEMENT:
 Each WBS element is settled directly to the external cost object. Examples: cost centre / GL.
o MULTI-LEVEL SETTLEMENT:
 Individual WBS element in the project can be settled to other WBS elements within the same project.

1.22 PROJECT CLOSURE

 The project has to be technically completed before closing. The status will get changed to TECO.
 After TECO, a project is technically completed, and no more activity can be performed. No material issue costs can be booked,
other than already committed costs. Fresh PR and PO cannot be made under any WBS TECO status.
 Once projects have reached their end and all expected costs have been settled to their various receivers, projects should be
closed to prevent additional costs from being posted against them. The system status of the project should be set to “CLSD”.
Under this system status, all financial transactions are forbidden.

TECHNICALLY COMPLETED (TECO):

Set this status for WBS elements that are completed from a technical point of view, but where you still expect costs to accrue
from the commitments (purchase order) already made.

Closed (CLSD):
Set this status for a work breakdown structure or WBS element that has been completed from both a logistic and an
accounting point of view.

LOCKED (LKD):

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You can use this status to either lock individual business transactions or all the data in a work breakdown structure or WBS
element. You can set the following statuses: -
Account assignment locked (AALK)
Master data locked (MDLK)

2. MODULE INTEGRATION
Considering the specific requirements of the organization, the integration takes place between modules. The continuous exchange of
information with other application areas. System ensures a real time database. Fully integrated processing helps us to optimize the
project execution within the company.

2.1 Material management

The broad levels of integration with material management are:

 Purchase requisition
 Material purchase order
 Service requisition
 Service purchase order
 Good receipt
 Invoice receipt
 Material issue

For example, for the materials required for the project.

 For common material procurement

o A purchase requisition is directly created in the material management.
o This purchase requisition is converted to a purchase order.

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o On receipt of the goods, goods receipt will be done at storage location.

o On actual consumption of material on project the cost of material will be loaded on WBS.
 For individual / building specific material procurement
o A purchase requisition is directly created in the material management with respect to individual / building specific WBS element.
o This purchase requisition is converted to a purchase order.
o On receipt of the goods, goods receipt will be done on individual / building WBS elements.
o On receipt of the RA Bill, goods consumption will be performed on individual /building WBS elements through standard transaction.

For example, for the services required for the project,

 For common service procurement (Common/Specific),

o A service purchase requisition is directly created in the material management and loaded to respective WBS.
o This service purchase requisition is converted to a service purchase order.
o On receipt of the RA bill, service entry will be done on individual WBS.

2.2 Financial Accounting

 Vendor down payment

 Invoice verification
 Vendor payment
 Incoming payment
 G/L
 Asset accounting
 Direct postings

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2.3 Controlling
 Cost center accounting
 Re-postings
 Settlements
 Cost elements

For example, the costing of the operation - both external and internal - is done automatically with data maintained in activity type prices and the price
maintained in material / service master.

2.4 Sales and Distribution

The broad levels of integration with sales & distribution are:

 Creation of Sales Order w.r.t WBS Element.

For example, when sale order is created, WBS Element is captured in Sales order with billing element activated at WBS Element level.

3. INFORMATION STRUCTURES
 The project information system is required to analyse and control your project.
 There are various standard reports available in the project information system. The standard also includes reports offering different degrees of
detail, summarizations, and views of current data, version data, and archive data for:
o Structures
o Controlling.
o Progress
o Resources

Cost Reports:

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o S_ALR_87013542 - Actual/Commt/Total/Plan in CO Area Currency

o S_ALR_87013543 - Actual/Plan/Variance Absolute/Variance %
o S_ALR_87013544 - Actual/Plan Comparison: Periods
o S_ALR_87013537 - Commitment Detail
o S_ALR_87013533 - Plan/Actual/Commitment/Rem. Plan/Assigned
o CJI3 - Display Actual Cost Line Item
o CJI5- Display Commitment items – Line item

Budget Reports:

o S_ALR_87013557 - Budget/Actual/Variance
o S_ALR_87013558 - Budget/Actual/Commitment/Rem Plan/Assigned
o S_ALR_87013559 - Budget/Distributed/Plan/Distributed
o S_ALR_87013560 - Budget updates

Structure Overview Reports:

o CN41/CN41N - Structure Overview

o CN42/CN42N - Project Definitions
o CN43/CN43N - WBS Elements
o CN46/CN46N – Networks
o CN47/CN47N – Activities

Material/Service Reports:

o ME5J – Lists the Purchase requisitions

o ME2J - Lists the Purchase Orders
o CN52N – Material Component Overview
o MBBS - Valuated Project stock

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o MMBE - Stock Overview

o MB25 - List of Reservations
o ME2S - Service PO overview
o CNMM - Project Oriented Procurement
o CATS_DA – Working time

Confirmation Reports:

o CN48N - Confirmations Overview

o CJI3 - Display Actual Cost Line Item

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