SAP PS Interview Questions

What is SAP Project System module?

Project System is one of the key modules of SAP to perform project and portfolio management and helps you to manage the project life cycle starting from structure, to plan, execution and till the project completion.

Is Project system integrated with other modules of SAP ECC?

Project system is closely integrated with other SAP modules like logistics, material management, Sales and Distribution, Plant Maintenance, and Production planning module.

For raising Client billing, is there any possibility of linking line items in SD module with Activities / WBS in PS module?

It can be linked through DIP Profile and do Resource Related Billing for raising billing.

Can Revenues be linked with Activities?

No, it can be done at WBS level with ‘Billing’ operative indicator.

Can progress be updated in WBS elements?

Yes, you can use Progress Analysis (EVA) for this.

We would like to compare the planned cost, actual cost & revenue for line items in SD module. For this as what object should we consider the line item in PS module.

You can use Billing level WBS in PS module.

7. In easy cost planning/ cost models, the resource requirement details (quantity and rate) are given to get the cost of each line item. But to get planned cost of each activity, the consultant is asking us to assign resources separately again in activities. If we consider the line items as activities, should we assign the resources again or the same in easy cost planning / cost models can be linked to get the resources assignment in a simpler method.

Instead of this, you can use costing variant for Easy Cost Planning (not for the activities)

Is there any way by which we can lock two specific wbs elements say overheads and other expenses, so that the user cannot release PR?

The easiest way would be to define the project release process in the bottom-up fashion. That means, you will only release the activities/WBS elements that you need from time to time during the course of the project. That way, charges won’t be accrued on a WBS element until it’s released (so, don’t release it until it’s ready for collecting costs).

Is there any way by which we can stop the network from attaching further materials after it is released?

This is controlled through the change profile, which is assigned to the network profile. In the change profile, under the Component tab, you can define the release status of the activity at which you can create/change/delete material components.

How can we set the options for capacity reports CM01?

This will possible depend on your config, but the options I use are:
Tick, Cumulation of reqmts, Dyn. capacity cumul. and then select the hierarchy you have set up.
I then select the financial year (as we are budget driven) using Entry type A and the start/finish of the financial year.
I select period Month.
Then click tick.
I then select the work centre I require. or arm of the hierarchy.
You can then select standard overview and also select graphs or if you need a detailed list press that button.

What is an external and an internal project in terms of project budget?

External Financed Projects −

This includes the projects which are sponsored by clients and are executed to meet the client requirements. These projects are called customer projects and project goal is aligned to meet the customer demand.

Internal Financed Projects −

This includes project related to capital investment or overhead cost projects.

How do you categorize project based on the list of activities?

You can categorize projects according to the list of activities and project structure or on the basis of individual activities −

  • Using Work break down structure WBS
  • Using individual activities as per work packages

What is Work Breakdown Structure?

In Project System, Work Breakdown structure WBS and network diagram can be used to structure the project either in hierarchical order or using network techniques. You can define key milestones and documents that allow you to monitor the progress of project and helps you to define key interest of individuals.

What are the different steps involved in Project Process Flow?

Below are the key steps involved in Project process flow −

  • Create Templates/WBS
  • Create Project
  • Project Planning
  • Budgeting and Release
  • Project Implementation
  • Project Completion

What activities of SAP FICO is integrated with SAP Project System module?

To plan the costs and revenue in the project system, as per the financial planning requirements.

What activities of SAP MM is integrated with SAP Project System module?

To manage procurement and inventory functions occurring in project lifecycle.

What activities of SAP SD is integrated with SAP Project System module?

To manage the sales process in project lifecycle- includes quotations for customer projects. This includes billing, selling and shipping of goods and services required in project lifecycle.

What activities of SAP PP is integrated with SAP Project System module?

To perform activities like material requirement planning MRP, Bills of material BOM, material requisition as per MRP, capacity planning and other production planning tasks in project lifecycle.

Explain Organization structure and elements in SAP Project System?

When a project is initiated, it starts with the definition and classification of the project structure which is required to align it with the existing enterprise structure in an organization.

Project System has no organizational structures of its own and we have to incorporate the structure to enterprise structure by assigning organization elements in different ERP R/3 modules. These organization elements allow Project system to maintain and get the data correctly.

An Organization structure consists of various elements that have to be created as part of structuring of project. Following are the organization elements −

  • Company Code
  • Business Area
  • Controlling Area
  • Plant

What is Company Code?

Company code is smallest unit in an organization for which financial statements (profit-loss statement, etc.) can be generated.

What do you understand by Business Areas? Explain with the example of use?

Business Arears are used to differentiate transactions that come from different line of business in a company.

Example −

There is a big company XYZ, which runs multiple businesses. Let us say it has 3 different domains like manufacturing, marketing and sales.

Now you have 2 options −

  • First is to create different company codes
  • And other better option is to create each of these business lines into business areas.

What are the advantages of using Business area in above scenario?

You can use these business areas if other company codes require the same areas.

It is easy to configure if you use Business Area as you just need to attach to the company code and the other details in business area will get attach itself.

By using Business areas in controlling, you can create Profit and loss statement, Balance sheet, etc. for business areas so this is used for management accounting in few companies.

Note − Business areas are more used in Controlling as compare to Finance Accounting.

What is Controlling Area in SAP system?

Controlling Area in an organization is defined as an organizational structure and is cost accounting, Cost centers, profit centers are used to define the Controlling area.

What is Plant?

Plant is an organizational unit within a company where activities take place. A plant will produce goods and makes goods available for the company.

What are the different currency type in SAP PS system?

In SAP PS system, you can manage all the currency dependent data in the Project System using below different currencies.

Controlling area currency −

In this currency type, you define work breakdown structure WBS, networks, activities, and orders in one controlling area.

As same controlling area is used, currency in a project system is also uniform.

Object Currency −

In Project system, it is also possible to assign any object currency to different objects in the system.

  • WBS element
  • Project definition
  • Network header
  • Network activity

Note that when a company code is assigned to a controlling area and company code contains multiple currencies in this case you can’t allocate object currency in PS as in this case system automatically takes the local currency of company code.

Transaction Currency −

In this case, you use the costs and revenues from different business transactions are recorded as per currency of the business transaction.

How do you define a Project?

A Project is defined as a temporary endeavor to create a product or to provide a service.

Could you name few characteristics of a Project?

  • Projects has a defined goal which is agreed between company and customer and is defined in Project Charter.
  • A Project is complex, unique, and definitive in scope and involves a high certain risk to execute and complete on time.
  • Project has defined quality requirements.
  • Project has definitive cost, duration and resources to work on the project.

What is the use of defining PS types in Project definition?

A Project type is used to group or classify the projects as required- Example: Banking projects Capital projects or IT development projects.

A Project type is also used for reporting, building authorization and for creating hierarchies and network in project planning. It can also be used for developing customer requirements e.g. use of BADI for WBS settlement rule determination based on project type as a parameter.

What is the use of Status profile?

A status profile contains the individual user statuses and the business transaction rules defined for those statuses. You can define multiple limit number of user status profiles that can be maintained in SAP system.

What is the use of Selection Profile in SAP PS system?

A Selection profile in SAP Project system is used when you have large number of selection objects repeatedly with same selection condition. Selection condition are used using top down approach.

What are the parameters of Project System?

There are several parameters to define in here at the structures level. First is the Project Definition (Proj. Profile), then we have the WBS Level, and then, if used, the Network/Activity/Subactivity Level. You may include components and services. The configuration goes into Proj. Definition, WBS and Activity profiles.

What is the difference between a WBS and Network structure?

WBS and Networks are two structures that differ in the way in which they enable you to structure projects and in the functions provided for them in the SAP system. For example, if you need a hierarchical budget management function for a project, you would want to use a WBS structure. If, in addition, you also want to do capacity planning, you would have to use one or several networks as well. Depending on the specific requirements you may be able to map a project only via a WBS structure, or by using only one or several networks, or a combination of both.

What do you understand by 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. These information can be changed at later stage.

What information is maintained under Project Profile?

You must maintain below information under project profile section −

  • Basic data
  • Time scheduling
  • Costs/revenues/finances
  • Organizational data

What is the use of Settlement profile?

In a project, you collect cost and revenues temporarily and they have to settle as part of period end processing. You need a settlement profile stored in project profile or network type which determines whether settlement is required, allowed or blocked.

You use the settlement profile to define the following for actual costs −

  • Full Settlement
  • Can be settled
  • Not to be settled

What is the use of Network profile?

You can create network profile in SAP PS to maintain Network and WBS structure and to define rules for linking networks.

What is Network type in SAP PS system?

In SAP PS system, a network type is used to contain the information for controlling and managing networks. Network is defined as work order that has a structure in common with production, maintenance and inspection orders.

What do time profiles do?

This profile is part of the “Planning Board Profile” and it determines the beginning and the end of the evaluation and planning periods. This means that pre evaluation and post evaluation periods are defined automatically. This is how the Planning Board is displayed graphically.

How do you specify a person responsible for work center in PS system?

In SAP Project System, you can define the person responsible for Work Center. To define a person responsible you need to enter person responsible Id and descriptive name of person responsible for managing work center.

To specify a person responsible for work center, navigate to below path in SAP Easy access.

SPRO → IMG → Project System → Structures → Operative structure → Network → Work Center → Specify person responsible for work center.

Where do we define time profiles? What is evaluation period?

Evaluation period is the period in which you want to control your project, and it will be displayed in your planning board.

Transactions is OPTY

What is the use of Access Control List?

In SAP Project system, you use access control list to assign authorizations for specific Project system objects. Access control list function should be activated in project profile or network profile.

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