What is the Project system in SAP?
It is module of SAP that handles the full cycles of planning and execution of the Projects. It integrates between all other modules enabling projects to be executed efficiently, with appropriate timing and within established budget.
This Module is highly integrated with the Other Modules like SAP Finance and logistics Modules. These can be used for the large and complex projects such as production, construction, services across all the industry. Project system can be integrated with other Non- SAP systems as well.
Categorize projects according to the list of activities and project structure or based on individual activities −
Using Work breakdown structure WBS
Using individual activities as per work packages.
When a project request is received, a project is created, and it must undergo the following steps in project process flow/lifecycle.
Following are the key steps involved in Project process flow −
Budgeting and Release
What are the Project system characteristics?
Projects have the following characteristics −
- Projects have a pre-defined goal, which is agreed between the company and customer and is defined in Project Charter.
Projects are complex, unique, and definitive in scope and involves a high certain risk to execute and complete on time.
Projects are defined as a part of the internal processes of a company. To execute the tasks in a project, you must get an organizational form that is specific to the project and which is shared by all the departments involved.
While defining the project goal clearly to carry out project its scope and activities to be carried out must be structured.
You can define project structure −
As per the organization structure.
As per the defined processes.
Organization that uses the project system have the following advantages:
Detailed and systematic follow up of the customers and company -in house projects.
Resource utilization rates
Integrated platform for both SAP and non- SAP model and departments with common platform.
Project profitability by phases.
The basic function of the SAP PS module:
Project structure: These are work packages that are created during project using Work break down structure (WBS element) network Plans specific to PS.
Time schedule: Each project are assigned a time line according to the Project calendar for the Work element to track the activities of the employee.
Cost and Revenue Planning: It is the cost and revenue planning of the steps in work packages (WBS elements).
Budgeting: It is the budgeting of the projects and the steps in work packages (WBS elements) included in the projects, to make budget management and to ensure budget availability controls.
Project Progress Analysis: It is the analysis of the stages of the projects, the progress of the project steps, and the project status.