SAP TRAINING SESSION

PS MODULE
(End User)

Trainer : M. Miqdad Raza (ISD PAK BU)

Arsalan Tahir Butt (Corporate R&C)
Objective
SAP (PS Module) is a digital learning platform that supports learners to upgrade their analytical techniques
towards projects. Purpose of this training to provide knowledge and engage planning team to understand
company expectations towards its effectiveness implementation.

What will you learn ?

This training shall help end user to understand complete entire project lifecycle, from the creation of a project to the
preparation of detailed cost plan, cost actualization, project monitoring and closure. Hands-on training shall be
provided and keenly focus's on best practices across company.

To whom it should attend !

If you are working as planning engineer and involving in day-to-day operation matters of projects.
 Contents
DAY-1 (Half Day + Practice) DAY-3
 Claim Management – (Process adopted)
 Legacy Systems Replaces by SAP
 Data Archiving – (Process adopted)
 SAP Modules implemented at Descon
 Reports
 SAP PS Module Commonly use terms
 Issues faced by users
 Project Life Cycle in SAP & Process Overview
 Project Planning in SAP
 Cost planning, Budgeting and versions
 Revenue Planning
 Procurement (Purchase Requisition – Material / Service)

DAY-2 (Full Day)

 Project Execution & Monitoring / Cost Actualization
 Month End Closing
 Re-Evaluation
 RAKey Process
 Cost plan LF
 Project Closing
 Compliance
Legacy Systems replaced by SAP

SD

PM

CATs
Legacy Systems replaced by SAP

MM

FICO

FICO
 Sales and
Distribution
(SD)
Document Plant
Management Maintenance
System (DMS) (PM)
SAP MODULES

Cross - Equipment
Tool and
Application Management
Time Sheets Project (ETM)

Systems

Quality Financial
Management Controlling
(QM) (FICO)

Human
Materials
Capital
Management
Management
(MM)
(HCM)
 SAP PS Modules Common Terms
Controlling Area:
The SAP Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes.
For DEL it is DES1, for ODICO it is DES2.
 SAP PS Modules Common Terms
Plant:
A plant is an organizational unit subdivide an enterprise according to the logistics operation. e.g.
Corporate 1101 , Maintenance PAK BU 1108.
 SAP PS Modules Common Terms
Profit Centre:
Profit Centre is an organizational unit used for reporting profit and loss of a defined area of
responsibility within the organization.
i.e. Project or Zone. e.g. HYUNDAI = 11080205, FATIME FERTILIZER = 11080101

Cost Centre:
Organizational unit within a controlling area that represents a location where cost occur is known
as Cost Center in SAP terminology. e.g. 11080205L Labor Cost Center

Cost Element:
Cost element means a distinct componentControlling
or categoryArea of costs (e.g. materials,
DES1 Column1
directColumn2
labor, Column3
Geographical Locations PAK OMAN QBU UAE
allocable direct costs, subcontracting costs, Company
other costs)
Code
which is assigned to
1100
a cost
1400
objective.
1300 1200
A cost element is the cost of a resourcePlant that is
/ ISD consumed by an activity.
1108 e.g.
1408 800560
1308 = 1208
Coating/Wrapping material, 810003 = Sub Contract Engineering Services 11080205
Profit Centre
Cost Centre 11080205E
11080205L
PS Module / Coding Mask - ISD TP TO TQ TA
PS Module / Coding Mask - Maf. DM / DR
 Project Structure in PS Module (IS Division)
Coding Scheme:
Plants:
- Turnaround: TP.0XXXX
- Manpower Supply Jobs: TP.1XXXX
Controlling Area- DES1
- Retrofit Construction: TP.2XXXX
- E&I Jobs: TP.3XXXX PAK OMAN QBU UAE
- EPC Retrofit Jobs: TA.4XXXX
Company 1100 1400 1300 1200

Plant 1108 1408 1308 1208

WBS Elements:
- Analytical study heads are replicated in WBS

Revenue TP.00061-RV
VC TP.00061-VC
Direct Labor TP.00061-VC-L
PPE TP.00061-VC-L-PP
PACKAGE TP.00061-VC-L-DL
 Processes Overview: Planning & Budgeting

Project
Project Award Project Scheduling •BPO Creation
Budgeting
•BPO Planning
• Inquiry • WBS
• Sales Order •Run Cost plan
• Quotation • Activities • Dates •Revenue Planning •Copy plan to
• New Project Budget
•Approvals
Cost & Revenue •Release
Proposal Project Structuring Budget
Planning

Processes Overview: Execution & Closure

Execution •Labor hours and Cost Period End

• Purchase •Equipment hours and
•Technically Complete
Requisitions cost •Payroll •Close open POs
•CATS •Transfer Stocks
• Purchase Orders •Equipment Logbook
•Material consumption •Asset Depreciation
•Progress Analysis •MM Closing •Clear Invoices
• Service Orders •Material Issuance •Actual Revenue •Revaluation
•Service
•Result Analysis
Project Entry/Acceptance Sheet Project
•Progress Booking Monitoring •Settlement
Release •Customer Billing
•Open/Close Posting Closure
Period
 Project Life Cycle in SAP PS Module
Planning Phase Monitoring Phase
• Create WBS
• Material PR
• Create Network & Activities
Project Purchase • Service PR
• Create activity Elements for Equipment
Structure Requisition

• BPO (Base Planning object)

• Maintain Activity Type Rate(Labor, Equip)
• WPP (Work Progress Plan)
• Actual Man-hours / Machine Hours
Cost • Cost Plan
Actuals • Actual Cost (Material & Service, Others)
Planning • Revenue Plan

• Budget Allocation
• Budget Release • Revaluation Process
• Budget Transfer Period End • RAKey Process
Budgeting Closing
• Budget Supplement

• Actual, Comitt. & Inventory Check

• Copy actual into Plan • Cost, Budget, Actual and Commitments
Cost • Delete previous Cost Plan • Compare Budgets
Reports
planning • Upload Revise Cost Plan
(LF)
 Proposal and Project Award prior to project life cycle
Proposal / SD
SD
Bidding (Winbid Create
Create Inquiry / Excel) Quotation

SD
Submit
Create Sales Project awarded
Quotation
Order

Pre-requisites for New Project

*FICO – Profit Center
PS SD *FICO – Cost Centers for Labor and
Equipment Rates
Create New Link Project to HCM – Personal Sub Area
Project Sales Order FICO - Bank Master
Project Creation In Sap (Pre-Requisites) – Best Practice

Planning team shall ensure to open project in SAP by sharing following

information with SAP PS Module power user for creation:

1. PO / LOI Copy
2. In case of PO / LOI not issued,
2.1. Client email that shall be confirming project value
2.2. Approval by Incharge Planning
3. Client Name
4. Project Duration: Start date and end date
5. Project Type: Shutdown / Retrofit / Manpower Supply / E&I
 Budget Release Protocol – As per policy 13.1
In order to cater for initial mobilization before Project Budget upload in SAP.
 5% of approved BID cost to be released for EPC, Construction and IP Division’s projects.
 10% of approved BID cost to be released for Manufacturing and MAINTENANCE Division’s projects

can be released in SAP.

Required Documents,
a. Approved Bid Copy (as per applicable bid approval limits) to be submitted (Bid Summary Report/BSR)
b. Complete project WBS Structure to be created with top nodes for cost booking (Budget Rev 00) Top
sheet.

To proceed for 100% successful release of budget in SAP. Following documents shall be required
for Division approval,

1. Hard signed copy of budget (PCM)

2. Approved Bid Summary Report (Proposals)
3. Approved PCP (HR)*
4. Project Risk Register (for40M PKR+ Projects ) (PCM – Proposals to share Proposal RR)*
Project Structure

A standard template (In case of Maint.

Division i.e.; MF-04) has been agreed which
is being used to create structure of every
new project.
 Project Structure
WBS

Work Breakdown Structure defines cost heads to record actual and plan cost in a hierarchical structure.
Following functions are adopted
•We plan cost on WBS Level
•Budget Control is activated on WBS Level
•Actual cost is summarized on WBS level to compare with plan.
Level - 1

Level - 2

Level - 3
Network & Activity
 A network organizes the activities under the WBS of the project. Whereas activity is created
under the WBS where we assign the resources. Activity is used to create PR and Man hours
posting through CATs.

Activity Element
Activity element is created under the activity as per equipment requirement.
It is used to post actual machine hours.
 Project Structure
(Network & Activity)

Network

Activity
 Project Financial Planning (Cost & Revenue)

CO-PS CO-PS CO-PS Excel

Create BPO (Base OR / Import BPOs Run BPO upload Prepare WBS and
Planning Object) from Excel to SAP program BPO Mapping file

PS
PS
Copy Cost plan to CO PS
Run Cost plan using
Version E01 (Budget Plan Revenue
mapping file
Rev0)
 Cost Plan
Cost Plan = ZWPP (Phasing) x BPO
 Firstly, BPOs are linked with WBS in excel standard format and then uploaded in
SAP

 T Code for uploading is ZCP.

 CJ40 T-Code is used to make it cost plan.

 Currency Types
There are two types of currency

Controlling Area Currency:

The system can derive the controlling area currency automatically from organizational units. In Descon its PKR.

Object Currency:
It is the local currency for the respective BU. For QBU its QAR

BPO (Base Planning Object )

BPO is a object for cost plan against each head. we enter the balance cost of each head in the BPO.
T-Code ZKKE1 Creation
T-Code ZKKE2 Change
T-Code ZKKE3 Display
It can be prepared in Excel standard format and uploaded in one go using T-Code ZBPO.

WPP (Work Progress Plan)

WPP file is created to distribute the plan cost over the period of project against each Head.
It is uploaded in the system using T code ZWPP
 Cost Plan - Work Progress Plan (WPP)
Quantities
(upload through Excel) - ZWPPR amounting to 1

Start Date Finish Date

First we make the WPP on excel and upload this WPP in SAP.
Work Progress Plan (T code: ZWPP)
(upload through Excel)

LF or Budget

Week/Month/Year Plan
WPP Distribution Basis
(MHRS or Quantity)

Start of date

Excel File
Format must
match this
order
Cost Plan - Work Progress Plan (WPP)-zcp-cj40
(upload through Excel) – T code ZWPPR
 Cost Planning - Base Planning Object (BPO)
BPO – Base Planning Object is a building block for cost planning*

Pre-requisites for BPO Planning

Labor Rates should be available
Equipment Rates Should be available
Monthly distribution should be
* All BPOs prepared in excel will be uploaded in SAP defined in system through WPP (Work
Progress Plan)
 Cost Planning Inputs
BPO -
BPO -
Services
BPO SAP REPORT KKE4
To verify BPO
PCP (HCM)
Equipment

BPO –
BPO -
Fixed
Labor
Assets

BPO –
BPO -
Material
Project Misc.
Expenses
 ZCP Creation
Cost Plan (ZCP) is first set in excel, then we upload it in SAP (T code: ZCP).
A typical excel ZCP looks like this,
 Cost Plan Uploading (T code : ZCP REPORT)

DES1

Upload ZCP BL0 (Baseline 0)

File

To clear
Previous
cost
Cost Plan Uploading (Cj40)
 Project Financial Planning (Cost & Revenue)
Now the final two steps in cost planning are Cost and Revenue Planning

Revenue Planning (CJ42)

Cost Planning (CJ30)

 Project Financial Planning (Cost Planning CJ30)
3.Edit

3. Copy View

1. Click Current
Budget

4.Enter
Percentage

5.Total Up and
then Save

2. Select All
 Project Financial Planning (Revenue Planning CJ42)

1. Double Click

3. Go to Detailed
PLanning
5. Press Control+S
two Times

4.Enter Revenue
2. Select Year on relevant Cost
element
 Revenue Planning in SAP (CJ42)

 Monthly Base Revenue Planning is performed by CJ42 T-Code.

 Revenue plan is entered in Object currency.

 It is entered against the specific revenue WBS (TP. xxxxx-RV)
 We can enter value of Revenue (Normal, Extra, other ) month wise.
 Cost Plan (SAP REPORT s_alr_87013565)

Planned Revenue Planned Costs Planned Contribution Margin

To select
Period/WBS
category

Planned PAT%
Project Financial Planning (Cost & Revenue)

Revenue Planning – Monthly

 Project Financial Planning (Cost & Revenue)
CO Versions
CO Version Description
0 Cost Plan Updated Version for Plan and Actual
E01 Cost Plan Rev 0 Bid2Budget
(Mapping of WinBid Codes w/ SAP Master Data Available)
R01 Cost Plan Rev 1 Revised Budget
PA1 Project Annual Forecast Project Annual Plan
PL1 Project Forecast for LF1 Project Plan – 1st Quarter
PL2 Project Forecast for LF2 Project Plan – 2nd Quarter
PL3 Project Forecast for LF3 Project Plan – 3rd Quarter
AB1 Annual Plan BU Plan (Department and Project) – Annual
LF1 1st LF (BA/BSD) (CO) BU Plan – 1st Quarter
LF2 2nd LF (BA/BSD) (CO) BU Plan – 2nd Quarter
LF3 3rd LF (BA/BSD) (CO) BU Plan – 3rd Quarter
Cost Plan – Version availability in SAP ; CJ9FS
Budget Approval Cycle (Rev 00) – as per policy
Budget Approval Cycle (Rev 01) - as per policy
Budget Supplement & Transfer
Budget Transfer
When a cost head (SAP WBS) is exhausted, we need to transfer the budget from one head to other.
It should not affect the project profitability

Budget Supplement
If there is an increase in one cost head and it cannot be compensated through contingencies or
management reserve (resultantly having a direct impact on project profitability

An additional budget will be provided to that cost head after the approval (Same hierarchy which
approves the budget). - SOP-06 reference
Project Budgeting (Supplement T code: CJ37)
Budget Supplement & Transfer
Project Budgeting (Transfer)
Revenue Planning in SAP (Period Wise: T code CJ42)

Enter
Planned
Values
here
Other SAP Modules Integration with PS Module
 Procurement
(Purchase Requisition for Material/Services)

 Material PR & Service PR is generated using T-Code ME51N/CJ20n.

 PR is approved by single identity which is Project Manager (as per SAP position)

 These PRs then converted into PO/WO by the Commercial or Subcontracting department.

 PO has multiple hierarchy of approval depends upon the amount.

 Procurement
(Purchase Requisition for Material/Services)

Comes Automatically
 Procurement (Material PR)
Material Purchase Requisition can also raised though cj20n Project Builder under relevant WBS.

Material
Purchase
Requisition
 Procurement (Service PR)
Service Purchase Requisition can also raised though cj20n Project Builder under relevant WBS.

Service
E&P
Purchase
Requisition
Procurement
(Service PR)
Procurement (PR Release)
Procurement (PO Release) – 3542
(40001/00062)
Invoicing

Invoices are booked in SAP once prerequisites are ensured.

 Signed PO of the project is received from Business Development.

 Sales Order is created in SAP by Business Development.

 Invoices received from site are validated/approved from client.

 Invoicing (booking in SAP)

VA02 Transaction code

Enter Order Number

provided by BD Select Description where
invoice is to be booked
 Invoicing (booking in SAP)

Enter Billing Date, Billing

Type. Go to Account Assignment
After Entering Block should
be set to zero
Enter Project WBS & Go to Billing Document on Top left
of the window. Then select create Billing Document
 Invoicing (booking in SAP)

Press Save

Note This Document Number & Close this Window

 Invoicing (booking in SAP)

1. Go to Accounting

2. Note Accounting
Document Number
Go to VF02 Transaction Code
1. Enter Billing Document Number 2. Press Release for Accounting
Project Execution and Monitoring (cost actualization)

QM
Material Inspection,
CAR/PAR, NCR,
MM
RFI, Puchlist, Audits ETM/PM
Material Receiving
and Issuance Requisition, Planning,
Shipping, Logbook,
Service Entry & Billing, Maintenance
Acceptance

CATS
P6-PS
Actual Progress &
Dates
Project Man-hour Entry,
Approval, and Transfer
to HCM/PS
 Project Monitoring (Support)

DMS
Document
Attachments PS

SD Claim Management
(Variation Order for Extra &
Actual Revenue (Billing Additional Work)
documents) Back Charging
Scrap Sales

CMDG
QM
Customer, Vendor,
Employee, Position, Project RFI, CAR/PAR, NCR,
Puchlist, Audits
Recipient etc
Personnel Cost Plan (PCP) from (HCM)
There are some key points for PCP:

 Personnel cost plan is for management staff.

 It is an excel base sheet which is uploaded in SAP by HCM Corp..

 Deployment start and end dates to be mentioned in the sheet.

 Position wise craft is planned.

 Once PCP is finalized the change is under Division President approval.

 Positions against which persons are not at site should be mentioned as TBN and their budgeted
salaries will be mentioned.

 WBS should be mentioned for Headoffice and Freelance staff.

Other Requirements (Maintaining of Activity Type Rates)

Requirement for BPO Planning

Labor Rates should be available
Equipment Rates should be available
 Actual Booking / Services
 Issuance of material against the reservation number.

 Service Entry Sheet (SES) against the Work Order using t-Code ML81N, for the work done by
the vendor.
 Actual Booking / Mhrs
Labor Time sheet

Labor Hours are approved by the PM/SM

Equipment log book

Equipment hours are approved by the planning team.

 Activity Type-Rates (Labor and Equipment) / Mandaotry
 Once the project is created, we have to maintain the Hourly rates of Labor and Equipment using T-Code
KP26. If the rates are not maintained, system will not allow to post the actual Man-hours and Machine-Hours
against respective Activity Type (Labour & Equipment ).

 These rates are maintained in controlling area currency.

 These rates are maintained in each cost center.

 During the month Labor and Equipment cost is calculated on these rates.
Activity Type-Rates (Labor)
Activity Type-Rates (Equipment)
 Actual Booking (Man-hours)
• Time Sheet entry (CATA) and its approval (Out of System)
 Actual Booking (Man-hours)
• Time Sheet Entry & Approval
 Actual Booking (Man-hours)
Timesheet Transfer to HR and PS
 Actual Booking (Machine Hours)
• Log book Sheet (Out of system)
 Actual Booking (Machine Hours)

• Log book Approval

 Project Execution and Monitoring
PRs Release Strategies
 Project Execution and Monitoring
POs Release Strategies
 Period End Closing
FI
HCM Depreciation, MM
Payroll Clearing
Period Closed
Execution Reconciliation

PM ETM CO PS
PM Order Rental Price Calculation Project
Settlement Settlement and Postings Revaluation

PS
FI PS
Result Analysis
Period Closed Settlement
Key
 Re-Evaluation Process (S_ALR_87013611)
 For every Month Closing, we execute a
transaction of Re-Evaluation. In this
method, Cost of Man-hours and Machine
Hours are re-calculated on the basis of
Actual Cost & Hours.

The difference of cost between plan rates and

actual rates is posted on the projects.

 After that, this above revaluated cost will

be synchronized in PS Reports.

 This process run on Cost Center level

against each project.
Project Revaluation for Labor and Equipment
(CJN1/CJN2)
Claim Management
 Claim Management
• Claims management is a process of capturing, planning and
monitoring unforeseen project events or variances from the original
project plan.

• CLM1 T Code is used to Create the Claim.

• CLM2 T Code is used to Change the Claim.

• CLM3 T Code is used to Display the Claim.

Claim Management (T code: clm1)

Costs

Subject
 Document Management System – DATA ARCHIVING IN SAP

• Documents are being archived in DMS Module of SAP on Monthly Basis

T.Code= CV01N
Document Management System

T-Code= CV04N
 Project Closing /cj20n
The following processes or steps should be taken into account before closing the project
All the activities should be 100% confirmed or set completed status (P6 / SAP)
*Status TECO – Technically Completed should be set (This status will close open Reservations and Purchase Requisitions)
Open Purchase Orders (Material) should be fully delivered or closed
Project Material Stock should be transferred to surplus plant
Open Invoices should be cleared
Payments to vendor should be cleared
Set Project Close status (CLSD)

Adobe Acrobat
Document
 Reports
S No Report T-Code Purpose
1 CN48N Actual Man-hours and Machine Hours Posting on Daily Basis)
2 CJI3 Actual Cost Booking against WBS
3 CJI5 Commitment Cost (PRs/POs/WOs)
4 S_alr_87013532 WBS wise (Plan / Actual Cost)
5 S_alr_87013542 WBS wise & Cost Element wise (Plan / Commitment / Actual Cost)
6 ME5J Project wise List of PRs
7 ME2J Project wise List of POs
8 S_alr_87013558 WBS Wise (Budget / Actual / Variance)
9 MBBS Material Stock Report
10 ZPJYD Analytical Study
11 S_ALR_87013611 Cost Center Actual/Plan/Variance
12 S_ALR_87013565 Execute Drill Down report planned contribution margin
13 S_ALR_87100185 Actual Cost per month (Current Fiscal Year)
14 S_ALR_87100186 Plan Cost per month (Current Fiscal Year)
15 S_ALR_87013542 Actual/Cumulative/Total/Plan
16 KKA2 Result Analysis for Project
 Report
(CN48N)
• In order check Man-hours against project network.
 Report
(CN48N)
• In order to check Machine-hours against Project network.
 Report
(CJI3)
• Actual Cost Booking WBS wise
 Report
(CJI5)
• Commitment Cost WBS wise (PRs + POs + WOs)
 Report
(s_alr_87013532)
• Planned / Actual Cost (WBS wise)
 Report
(s_alr_87013542)
• Planned / Commitment / Actual Cost (WBS wise)
 Report
(ME5J)
• List of PRs
 Report
(ME2J)

• List of POs
 Report
(S_alr_87013558)
• WBS Wise (Budget / Actual / Variance)
 Report
(ZPJYD)

• Analytical Study (Summary)

 Report
(S_ALR_87013565)
 Report
(S_ALR_8700186)
 Report
(S_ALR_87013542)
 Report
(KKA2)

Total
Project’s
Actual
Periodic/Monthly Value
Revenue
Received Revenue
Total
Project’s
Cost

PAT
POC Revenue
 RA Key Process

Result Analysis
Cost-Based POC Method
Revenue-Based Method - With Profit
Realization

Result Analysis Calculations

Cost-Based POC Method
POC(%) = Actual Cost / Planned Cost
Planned Profit (%) = Planned Profit/Loss /
Planned Cost
Cost of Sales = Actual Cost
Revenue Affecting Net Income R(c) =
Planned Revenue x POC (%)

R(c) < R(a) --> R(r)

If the revenue affecting net income is less than the actual revenue, the system creates a revenue surplus. The revenue surplus is
basically a reserve. The revenue surplus can be shown as a liability in the balance sheet through settlement to FI.
R(c) > R(a) --> R(z)
If the revenue affecting net income is greater than the actual revenue, the system creates revenue in excess of billings. The revenue in
excess of billings can be capitalized in the balance sheet through settlement to FI.
 Issue faced by User
Q. PR does not released in some cases?

A.Commonly there are 3 issues: 1) Budget availability 2) Wrong selection of G/L 3) Version not updated after any change in raised PR.

Q. Finance raised concern of cost actualization in different cost heads ?

A. Appropriate selection of G/L while raising PR and expense voucher booking in correct WBS as per planned budget.

Q. Error in approval of SES?

A. PO version either not updated nor approved. Refer buyer needs to resolve

Q. While creating BPO, user usually asked for BPO category selection ?

A. M category shall be used for Material, Labor / Equipment ‘E’ Category, Services ‘N’ category, In case of variable (general items) ‘V’

category shall be used.

Q. BPO Uploading process available in SAP. Usually error faced while uploading of BPO / ZWPP / ZCP

A. BPO creation / uploading are carried out with specific format defined. So fill data in proper manner for successful uploading.
Q. During Month end closing, Multiple error appears w.r.t maintain labor and Equipment, Project Open and Work

Centre not assigned Kp26, Project open, Work center not assigned

A.In order to avoid monthly end closing error, All project activity type rate should be maintained at start of project,

Work center should be assigned against respective WBS. Respective Zonal Planning Coordinator / In charge planning

can be consulted to support team for error resolving.

Q. Project Closure and closing of commitments ?

A. Commitment closing is important process for project closure. In charge Planning / PM emphasized on commitment

closing and locking of Project in SAP. Commitment can be closed by closing PR / PO, SES actualization and Invoices

booking and Posting. Lastly Project status marked as TECO (to avoid any upcoming cost) and CLSD after successful

process performed.
Q. What are the reports that planning engineer usually review prior to perform budget related

processes. ?

A. In SAP there are many standard reports available that can support user to review as an when

required basis. As reporting is real time and budget errors can be immediately analyze by right

access of the report. Some reports are already shared in aforementioned slides.
Q&A
Thank You