Importance of Overhead class in SAP PS Module

In SAP PS (Project System), the overhead class plays an important role in managing project costs. It is used to group cost elements that are not directly associated with a specific work package or activity in the project.

The importance of the overhead class in SAP PS can be summarized as follows:

Cost Allocation: The overhead class is used to allocate indirect costs to the project. These indirect costs can include administrative overhead, depreciation, rent, and other expenses that are not directly related to a specific work package or activity in the project. By grouping these costs into an overhead class, it becomes easier to allocate them to the appropriate cost objects in the project.

• Cost Planning: The overhead class is also used in cost planning for the project. When planning project costs, it is important to include all indirect costs that will be incurred during the project. By using the overhead class, these costs can be easily identified and included in the overall project cost estimate.

• Cost Control: The overhead class is also used in cost control for the project. By tracking the actual costs associated with the overhead class, it becomes easier to monitor project costs and make adjustments as necessary. This can help ensure that the project stays within budget and that any deviations are identified and addressed in a timely manner.

• Reporting: The overhead class is used in reporting on project costs. By grouping indirect costs into an overhead class, it becomes easier to generate reports that show the overall project costs, including both direct and indirect costs. This can provide valuable insight into the project's financial performance and help stakeholders make informed decisions about the project.

In summary, the overhead class is an important element in SAP PS as it helps to allocate, plan, control, and report on indirect costs associated with a project. It is a powerful tool for managing project costs and ensuring that projects stay within budget and deliver value to stakeholders.

How to integrate SAP PS with Cross Application Time Sheet (CATS)

Business Scenario:

SAP PS (Project System) is a module in the SAP ERP system that supports project planning, execution, monitoring, and control. On the other hand, CATS (Cross-Application Time Sheet) is an SAP module that enables employees to record their working hours and tasks performed.

The integration between SAP PS and CATS allows for the seamless flow of data between the two modules. This integration allows project managers to monitor the progress of the project in real-time by accessing time and effort data from employees.

The integration enables the following features: Employees can record their working hours and the tasks they perform directly in CATS.

The data from CATS can be transferred automatically to SAP PS to provide accurate and up-to-date information on project progress.

Project managers can use this information to monitor project performance, manage resource allocation and costs, and adjust project plans as needed.

The integration also helps in automating the billing process by accurately recording employee's working hours and the tasks performed.

Prerequisite:

a) Creation of Work Center (t code CNR1)- Create a work center with work center category 0006-Project Management for Capacity category 002-Labor

Enter working hours in the Work center (operating time, length of breaks, number of individuals, percentage of Capacity utilization etc.) to calculate the capacity 

b) Link HR personnel’s (HR master data) in the Work center- 

c) Maintain KP26 rate for Activity type & Cost center (which was assigned in the Work center in the costing tab)

d) Capacity requirement checkbox should be active at Network header level

Step by step procedure to capture the cost with CATS: 

Step 1. Maintain master data in the Project Builder (CJ20n): . 

Create Network activity, assign work center & Enter Work in Hours at network activity level

Whenever we assign work & work center, Person assignment tab will get activated

Step 2. Assign personnel number (HR master data) against network activity: 

Click on person assignment tab & assign HR Personnel

 Step 3. Distribute the work among the Personnel numbers: 

Allocate the work to HR Personnel assigned at Activity level

Save the Network.

Step 4: Enter actual working hours (T code- CAT2): 

Enter personnel number in the selection screen

Enter Network & activity number

Enter actual time against desired date to book time for this activity (lets us assume that he worked on 26^th Oct for 5 hours)

Save the time sheet.

Step 5. Transfer the actual hours to PS (T code- CAT5): 

Next process is to Transfer actual time sheet hours to PS module.

Enter personnel number in the selection screen, 

Let's execute it in the test mode. 

We will get the details of actual hours booked for personnel number 1807. We will have to cross check all the details to proceed further. 

Press back & untick test run checkbox & execute again

When we execute it without test run, the actual hours will gets transferred to PS module 

Step 6: Check the impact of CATS confirmation on the Network Activity (T code- CJ20n): 

System status CNF gets activated because of CATS data transfer

Step 7. Actual cost report to check the impact of CATS (T code- CJI3): 

Actual cost gets posted for 5 hours’ time booking form CATS

Conclusion: 

Overall, the integration of SAP PS and CATS improves project management by providing accurate and real-time information on project progress, resource utilization, and costs.

 

 

 

Backflush indicator impact on SAP PS Network activities

Business Scenario: 

Backflush indicators in SAP PS (Project System) are used to automate the process of updating the production or manufacturing activities in a project. Backflushing is a process that involves updating the production activities and goods movement data in SAP PS after the completion of a production order. This process eliminates the need for manual updates, which saves time and reduces errors.

In this blog, we will discuss backflush indicators in SAP PS and how they work.

What is Backflushing?

Backflushing is the process of updating production activities in a project after the completion of a production order. This process is used to update the goods movement data and the consumption of materials used in production activities. The backflushing process eliminates the need for manual updates and reduces the risk of errors in the production process.

Backflushing is typically used in manufacturing or production projects where a large number of materials are consumed in the production process. The backflushing process updates the inventory data and the consumption of materials automatically, which saves time and reduces errors.

What are Backflush Indicators in SAP PS?

Backflush indicators are used to automate the process of updating production activities in SAP PS. These indicators are set up in the project profile and are used to determine whether backflushing should be used for a particular project.

Backflush indicators are set up in the project profile under the "Control Data" tab. There are two types of backflush indicators:

Automatic Backflushing: If this indicator is set, the backflushing process is triggered automatically when the production order is completed. The system updates the goods movement data and the consumption of materials automatically.

Manual Backflushing: If this indicator is set, the backflushing process must be triggered manually. The user must update the goods movement data and the consumption of materials manually after the completion of the production order.

How do Backflush Indicators work?

Backflush indicators are used to automate the process of updating production activities in SAP PS. When a production order is completed, the system checks the backflush indicator set up in the project profile. If the automatic backflushing indicator is set, the system automatically updates the goods movement data and the consumption of materials used in the production activities.

If the manual backflushing indicator is set, the user must manually update the goods movement data and the consumption of materials used in the production activities. This process involves updating the inventory data and the consumption of materials used in the production activities.

Benefits of Backflush Indicators in SAP PS

Time-saving: Backflush indicators automate the process of updating production activities, which saves time and reduces the risk of errors.

Reduced Errors: The backflushing process eliminates the need for manual updates, which reduces the risk of errors in the production process.

Cost-effective: The backflushing process reduces the cost of updating production activities by eliminating the need for manual updates.

Practical use of Backflush indicator: 

Step 1: Create a Project with WBS element, Network activities with Material component

Step 2: Release the Network Activity

Step 3: Confirm the network activity by using CN25 

Confirmation in PS results automatic goods issue of material components which were assigned to the same network activity. 

Please note that Confirmation through CJ20n, will not have any impact on Backflush indicator.

Step 4: Check the actual cost line item report (CJI3)

Check the material document (MIGO > Display > Material Document),

Backflush indicators in SAP PS automate the process of updating production activities after the completion of a production order. These indicators save time, reduce errors, and are cost-effective. By using backflush indicators, businesses can streamline their production processes and improve their overall efficiency.

Concept of Subproject in SAP PS module

Business Scenario:

In SAP PS (Project System), the subproject concept is used to divide a larger project into smaller, more manageable parts. A subproject is essentially a mini-project that is part of a larger project and has its own set of deliverables, budget, and timeline. In this blog, we will explore the concept of subprojects in SAP PS and how they can be used to improve project management.

Subproject Concept in SAP PS

The subproject concept in SAP PS involves breaking down a larger project into smaller, more manageable parts. Each subproject is managed as an individual project, with its own WBS (Work Breakdown Structure) and project team. A subproject can be used to manage specific deliverables within the larger project or to manage a portion of the project that requires specialized expertise or resources.

The subproject concept in SAP PS is closely related to the concept of the project hierarchy. The project hierarchy in SAP PS is a way of organizing projects and subprojects into a tree-like structure, with the main project at the top and the subprojects below it. This hierarchy can be used to provide a clear overview of the entire project and the relationships between the different subprojects.
Benefits of Subprojects in SAP PS

There are several benefits to using subprojects in SAP PS. These include:

Improved Project Management: By breaking down a larger project into smaller subprojects, project managers can better manage the project and ensure that each deliverable is completed on time and within budget.


Clearer Communication: The subproject concept in SAP PS provides a clear way to communicate project goals and expectations to team members, stakeholders, and sponsors. It also provides a clear structure for reporting on project progress.


Resource Optimization: Subprojects in SAP PS allow project managers to allocate resources more effectively. They can assign resources to specific subprojects based on their skills and expertise, which can lead to better project outcomes.


Greater Flexibility: The subproject concept in SAP PS allows project managers to make changes to the project plan more easily. If a specific subproject is not going according to plan, it can be adjusted without affecting the rest of the project.
Practical use:
Subprojects are an essential tool in SAP PS (Project System) for breaking down larger projects into smaller, more manageable parts. They allow project managers to better manage specific deliverables within a larger project or manage portions of the project that require specialized expertise or resources. In this blog, we will explore the subproject concept in SAP PS, its benefits, and its applications in project management.

When you work with subprojects, a task of a project is created as a separate subproject, for example, because a different department or a subcontractor is responsible for the task. To map this relationship, you create an inter-project link between the task of the master project and the project definition of the subproject.

A task of a master project can only ever be linked to a single subproject. The subproject can, however, also be the master project for other subprojects which enables you to map multilevel project hierarchies.

The following graphic explains the scenario:



1. Subproject Field as Label

The subproject field works as a labeling mechanism that enables you to organize and manage WBS (Work Breakdown Structure) elements hierarchically. Each subproject is identified by a description that is defined in the WBS element. When you subdivide the WBS element at a later point in time, the subproject's assignment is copied to the new lower-level WBS elements. This ensures that the subproject's scope is retained across the WBS hierarchy.

2. Transferring Prize Agreements between WBS Elements

Subprojects can be used to transfer prize agreements between WBS elements. To achieve this, you divide the work breakdown structure into subprojects. A subproject is made up of WBS elements hierarchically connected. After creating the subproject and assigning it to the WBS element, the system will give you the option to select the subproject in budgeting. This allows you to control the budget area-wise, making it easier to monitor resource utilization and track expenses.

3. Budget Control using Subprojects

If the company is using intracompany billing or transfer pricing between departments, subprojects are a helpful tool for controlling the budget. In this scenario, you can create Level 2 WBSE for each department and create other breakups for each department under it. In dynamic selection of project report, you can mention the project type so that you can get the report for a department. Using subprojects in this way enables you to allocate resources more effectively and optimize the use of available funds.

4. Application in Project Management

Subprojects in SAP PS are a powerful tool for managing complex projects. By dividing a project into smaller subprojects, project managers can improve project management, optimize resources, and provide clear communication and reporting on project progress. Each subproject is managed as an individual project, with its own WBS and project team. The subproject concept in SAP PS allows project managers to make changes to the project plan more easily. If a specific subproject is not going according to plan, it can be adjusted without affecting the rest of the project.
Configuration T code- OPUM
Conclusion

In conclusion, the subproject concept in SAP PS is a powerful tool for managing complex projects. By breaking down a larger project into smaller, more manageable parts, project managers can improve project management, optimize resources, and provide clear communication and reporting on project progress. The subproject concept is an important part of the SAP PS module and should be considered for any project that requires complex management.

Future of SAP PS module

SAP PS (Project System) module is a widely used project management tool used by businesses around the world. It provides an integrated approach to project management, enabling businesses to plan, execute, and control projects effectively. SAP PS module has been a popular tool for decades, but as technology continues to evolve, there are questions about what the future of SAP PS module will look like.

The future of SAP PS module is likely to be shaped by several factors, including technological advancements, changing business needs, and evolving project management practices. In this blog, we will explore some of the trends that are likely to shape the future of SAP PS module.

• Cloud-Based Solutions

One of the most significant trends that will shape the future of SAP PS module is the shift towards cloud-based solutions. Cloud-based solutions offer several benefits over traditional on-premise solutions, including lower costs, greater flexibility, and improved scalability. As businesses increasingly adopt cloud-based solutions, we can expect to see a corresponding shift towards cloud-based SAP PS solutions.

Cloud-based SAP PS solutions will enable businesses to access project management tools from anywhere, at any time, on any device. This will be particularly valuable for businesses that have remote teams or that need to collaborate with partners and suppliers located in different parts of the world.

• Automation and AI

Another trend that will shape the future of SAP PS module is the increasing use of automation and AI. Automation and AI technologies can be used to automate repetitive tasks, reduce manual errors, and improve project efficiency. As these technologies become more sophisticated, we can expect to see a corresponding increase in their use in SAP PS module.

For example, AI technologies can be used to predict project outcomes based on historical data, identify potential project risks, and recommend optimal project management strategies. Automation technologies can be used to automate project scheduling, resource allocation, and budgeting, freeing up project managers to focus on more strategic tasks.

• Integrated Project Management

Integrated project management is another trend that will shape the future of SAP PS module. Integrated project management involves the integration of different project management functions, such as project planning, scheduling, cost management, and resource management, into a single system. This approach enables businesses to manage projects more efficiently, by reducing the need for manual data entry and improving data accuracy.

SAP PS module already offers integrated project management capabilities, but we can expect to see these capabilities become even more sophisticated in the future. For example, we may see greater integration with other SAP modules, such as SAP Finance and SAP HR, to provide a more holistic view of project performance.
Greater Flexibility

Finally, we can expect to see greater flexibility in the future of SAP PS module. As businesses continue to evolve and change, they will require project management tools that can adapt to their changing needs. This may include the ability to customize project management workflows, integrate with other third-party tools, and support agile project management methodologies.

SAP has already started to offer greater flexibility in its SAP PS module, with the introduction of new features such as SAP Fiori and SAP HANA. These technologies enable businesses to customize their project management workflows and provide real-time data analytics, enabling faster and more informed decision-making.

In conclusion, the future of SAP PS module is likely to be shaped by several factors, including cloud-based solutions, automation and AI, integrated project management, and greater flexibility. Businesses that are able to embrace these trends and adopt new technologies will be well-positioned to succeed in the increasingly competitive project management landscape. As SAP PS module continues to evolve, we can expect to see more powerful and sophisticated tools that enable businesses to manage their projects more efficiently and effectively.

How to Trigger an email from Milestone Confirmation in SAP PS

Business Scenario:

The Project milestones is the important functionality of SAP PS which is used to map events of particular events (such as completion of critical project stage etc.). The milestones can be utilized for multiple purpose (like Milestone billing, Progress analysis, milestone trend analysis etc.).

Whenever Network activity to which milestone is attached is confirmed, actual date will transferred to Milestone automatically.


Impact of milestone actual date:

Whenever milestone is confirmed, Billing block in the sales order billing plan will be removed. We can raise the invoices against Sales Order as per Milestone invoicing percentage.

Another use of Milestone confirmation is that upon completion of Project stage should notify the other stakeholders of the Projects.

We can divert the mail triggered with milestone confirmation to few business user by taking ABAPER's help.

We have to execute following steps to trigger a mail after milestone confirmation.
Step 1. Create Project structure (i.e. WBS element, Network, activity, Milestone) in the Project Builder (CJ20n) transaction.






Step 2. Release the project & Select project definition > Edit > Status > Release







Project released successfully.







Step 3: We have to maintain the parameters to trigger a mail from Milestone confirmation.

Maintain the Prerequisites for Mail triggering – Click on milestone function & select functions tab of Milestone









Workflow task defined for Milestone confirmation:
System Status: we have to mention the system status at which mail will be triggered.
Status Change: With this key you determine when the function is activated. In our case, + stands for Status set.
Execute once: Use this indicator to specify that the milestone function can only be triggered once.
Task: TS00007944 (PS: Enter actual data)












Step 4: Confirm the Network activity





We have to enter necessary inputs to Confirm the network activity


After entering the confirmation parameters in the activity confirmation screen, press back icon (or press Shift button)


Whenever actual date updated in the milestone, it will give a following pop up for workflow triggered.
We have to consult Workflow / ABAP consultant to divert the mail triggered to selected user id's.













In conclusion, email triggering with milestone confirmation in SAP PS can be a powerful tool to keep project stakeholders informed about the progress of a project. By following the steps outlined above, you can set up email triggering with milestone confirmation in SAP PS and ensure that project stakeholders are always up to date with the latest project information.



















- March 06, 2023




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How to Trigger an email from Milestone Confirmation in SAP PS

How to Trigger an Email for Milestone Confirmation in SAP PS Business Scenario: The Project milestones is the important functionalit...