Project System Module (PS) Presented by: Greg Martinez Paula Erickson 1 1 1 1 1

Overview Review of Organizational Elements and Master Data Overview of Projects using the PS module and how it is integrated with other modules in the R/3 System Become familiar with the basic functions in the PS module 1 1 1 1 1

PS Organizational Areas in R/3 Sales Accounting Purchasing Sales organization Company code Sales area Business area Purchasing Cost accounting PS Purc.organization Controlling area Prof.segment Warehouse Plant Maintenance/ Service Production Human resources Treasury Planning Plant Maintenance Personnel area FM area Plant

Organizational Structures: Accounting Operating concern IDEA Fin.mgt area 1000 Controlling area 1000 Company code 1000 Company code 1000 Company code 2000 Business area 4000 Business area 6000 Business area 1000 Business area 2000 Business area 4000

Organizational Structure: Logistics Controlling area 1000 Purchasing organization 1000 Company code 1000 Sales organization 0001 Sales path 01 Division 06 Division 08 Valuation level Plant 1200 Plant 1300 Shipping point 0006 Storage location 0001 Storage loc.003 (WMS store) Shipping point 1200 Storage location 0002

Organizational Elements and Master Data Operating Concern - (CO) Part of organization for which the sales market is structured in a uniform manner (product group, customer group) can contain >1 controlling area Controlling Area - (CO) Identifies a self-contained, organizational unit within a group, for which cost accounting can be performed Company Code - (FI) Smallest organ unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting 1 1 1 1 1

Organizational Elements and Master Data Division -(SD) Based on responsibility for sales or profits from salable materials or services Plant - (LO) Within Logistics, a place where either materials are produced or goods and services are provided. Assumes variety of roles (Maintenance Plant, retail or wholesale site) Storage Location - (LO) Allows the differentiation of materials stocks within a plant Shipping Points - (SD) Fixed location that carries out shipping activities (company’s mail department) 1 1 1 1 1

Organizational Elements and Master Data Business Area - (FI) Represents a separate area of operations or responsibilities within an organization. Can have several Company Codes Purchasing Organization - (MM) Procures materials and services, negotiates conditions of purchase with vendors, and bear responsibilities for such transaction Sales Organization - (SD) Sells and distributes products, negotiates terms of sales, and is responsible for these transaction Organizational Structure is prerequisite for making correct application - specific system setting in customizing - it is the framework 1 1 1 1 1

Capital investment management Master Data Central Functions Classes Characteristics Object dependencies Documents Accounting Capital investment management Cost Acctg G/L account Chart of accounts Cost center Cost element Activity type Profit Center Asset CI program Purchasing Treasury Material Activity master Vendor Purc.info record WBS Commt item Network Production Plant Maintenance/ Service Human Resources Equipment Maintenance Person Qualification profile Work center BOM PRT

Controlling Levels Management Controlling Execution Result Resources Fds commt Actual Execution Budget Plan Resources Value Time Capital Investment Costs Revenues Vendor Procurement Production S & D Customer Personnel Assets Materials Departments

Planning and Controlling Project Tasks Cross-department Sales Accounting Purchasing Production Hierarchy of tasks Agreements Planning and Controlling Dates Budget Resources Costs

Overview of Projects Tasks with particular characteristics Complex, unique, and involve a high degree of risk Limited duration, and cost and capital intensive To execute a project: Need a project-specific organizational form Must describe the project objective Structure the project activities you want to perform Structured according to: How it is organized using Work Breakdown Structure (WBS) The processes involved using Networks 1 1 1 1 1

PS Project System Views Use Functions - Materials Management - Cash Management - Resources - Operating results - Controlling - Periodic processing - Configuration - Workflow - Investment Management - Investment - Marketing - Make-to-order production - Asset construction - Shutdown - Services - Plant maintenance - R & D - EDP projects - Structures - Time scheduling - Project plannimg board - Cost planning - Financial data - Budget - Info system

Integration SD PP Order Billing document Plan order Production order Quotation Order Billing document Plan order Production order Settlement MM CO Order Surcharges Distribution Assessment Activity allocation Purchase requisition Purchase order Goods receipt Invoice receipt Material issue PM FI AM Plant maintenance order Settlement Asset under construction Settlement Invoice

Integration of Financial Data MM FI Purchase requisition Down payment request Purchase order Goods issue Bank clearing Payment > 3.0 Down payment Invoice receipt Expenditure PS Financial budget Revenue > 3.0 Invoice issue Sales order Down payment Bank clearing Quotation Delivery Payment Down payment request > 3.0 SD FI

Integration Example: Vendor Down Payment Purchase order item Payment Difference between invoice and down payment clearing Down payment request Down payment clearing Invoice checked against down payment document Down payment Invoice

Integration Example: Purchasing Purchase requisition BE ? = Bid invitation Invoice verification Entry of quotation Goods receipt Purchase order monitoring Vendor selection Ordering

Function Model (5) T I M E Status/ Phase Structuring Structuring Planning Approval Execution Closing Costs Dates Concept Structure Budget Actual data Settlement Project definition . . . . . . . . . Budget Work breakdown structure Commitment, costs, revenues Settlement Costs Dates . . . Release Confirm-mation Settlement Network PP order T I M E

Operative Structures in Projects WBS Network Project definition

Operative Structures in Projects Project definition Defines task to carry Contains data which is binding on the whole project such as start and finish dates and organization data WBS is the model of the project Project services to be rendered in graphical form Operative basis for cost planning, time scheduling, and budget allocation in projects Network reproduces the activities from the project Operative basis for the planning and control of dates, costs and resources (personnel, machines, PRTs, materials) 1 1 1 1 1

Master Data Project definition Work breakdown structure Network Responsibility-oriented organization Process-oriented organization 1:N Budget Costs Basic dates Dates Resources Resource costs Basic dates Organizational units

Project Definition Dates Basic dates for entire project April 7 March 31 April 6 Dates Basic dates for entire project April 7 Default values Company code Currency Settlement rule Planning parameters For dates For costs Organizational outline Controlling area

Projection Definition First Step in creating a project Outline connecting all objects created within a project Contains data used for the entire project Default values that are copied into the new WBS elements you create for this project 1 1 1 1 1

Work Breakdown Structure April 7 Dates Basic dates Scheduled dates Actual dates Costs Planned costs Actual costs Budget Original budget Release budget Purchase order Financial data Customer Vendor Commitment Purchase requisition Purchase order Periodic processing Surcharges Settlement

Work Breakdown Structure Focus is on planning, analysis, description, control and monitoring costs, basic dates and budgets It forms the basis for organization and coordination in the project Shows amount of work, time required, and cost involved Operative basis for further steps Structured according to different criteria depending on level detail Tasks and Activities are describe as individual elements 1 1 1 1 1

Work Breakdown Structure WBS Elements Can be: Tasks Partial Tasks which are subdivided further Work Packages Start and finished dates Text describing the work to be performed Responsible cost centers Cost centers carrying out the project 1 1 1 1 1

Structure of a WBS Currency Documents PS texts Milestones Subproject

Network Internal processing Scheduling External processing Dates Costs April 7 Scheduling Relationships Constraints Floats Critical activities External processing Services Dates Costs Controlling Earned value reports Capacity load Material Purch. parts / assemblies Dates Costs, commitment Periodic processing Surcharges Settlement

Network Networks represent processes or task in a project Essential elements of a network are: Activities Work Center, Duration, S&F, Resources Required, Texts Activity elements Relationship The Network Header contains data required for the entire network 1 1 1 1 1

Network Question that are answered using network information Where are we unclear? Where are the Scheduling uncertainties? When and what amount are cost incurred? When and what quantity do resources are made available? Relationships FS (finish-start) FF (finish-finish) SS (start - start) SF (start-finish) 1 1 1 1 1

Structure of a Network Network header External processing General costs activity Documents Services PS texts External processing Internal processing Int. processed element Milestones Ext. processed element Internal processing Gen. costs element Material components Production resources/tools Qualification

Relationships Production Assembly FS relationship Design Purc.order Design SS relationship Work scheduling BOM Design FF relationship Acceptance Start -up SF relationship

Work Breakdown Structures and Networks WBS Network 13 1000 1100 1050 3000 13-1 13-1 13-2 13-3 13-4 1060 1140 1170 1000 1140 1170 1000 1170 13-1-1 13-1-2 13-2-1 13-2-2 1080 2000 1030 2000 1050 1030 1060 1080 3000 1120 1100 1120 1000 Layout 1030 Engineering: Mech.parts 1050 Engineering: Elec.parts 1120 Procurement:: Car 1080 Procurement: Mech.parts 1060 Procurement::Motor 1100 Procurement: Elec. parts 1140 Assembly 2000 Acceptance 1170 Release 3000 Insurance 13 Elevator 13-1 Engineering 13-1-1 Elec.parts 13-1-2 Mech.parts 13-2 Procurement 13-2-1 Elec.parts 13-2-2 Mech.parts 13-3 Assembly 13-4 Insurance

Planning (Cost and Dates) Various ways of planning dates Plan dates in the WBS, binding on any further planning Dates in the network are determined by the system or manually Plan dates in lists, or using the various PS graphic interfaces. Types of dates Basic Dates - Binding basis of time schedule in the WBS elements Forecast Dates - Expected dates for WBS elements 1 1 1 1 1

Planning (Cost and Dates) Plan cost at different levels of cost planning Structure planning (by WBS) Plan cost without the reference to a cost element Cost element planning (detailed planning) Plan cost with reference to a cost element Unit Costing If information on sources of supply, quantities, and prices is available, you can use unit costing to produce a project cost plan 1 1 1 1 1

Approval (Budget) Approval Phase Prescribe the project funds in the form of a budget Budget differs from the cost plan in that it is binding Starts with defining an original budget for the WBS element Store as overall, then distribute it Release the budget in stages, prevents exceeding early 1 1 1 1 1

Execution (Actual data) Actual dates and costs are confirmed status of activity processing is documented system checks the dates of the WBS element and set actual dates Actual cost create activity allocation Tolerance limits Integration 1 1 1 1 1

Closing Project closing Collecting all costs Settling the costs Closing the structures 1 1 1 1 1