Overview of ERP Project Systems


Project systems are planned and implemented using a phased approach. These are further summarized as Development and Execution. Cost planning, budgeting, approval, resource planning are some of the activities that are done for each phase separately. The main project is represented by the execution phase where the planning, budgeting, scheduling is carried out.

Master Data Used in Project Systems

  • WBS elements
  • Network/Activities

Work Bench Structure

An individual structural element in a work breakdown structure (WBS) representing the hierarchical organization of a R/3 project. Describes either a discrete task or a partial one that can be further subdivided.


A Network represents the flow of a project or of a task within a project. During the life of a project, networks are used as a basis for planning, analyzing, controlling and monitoring schedules, dates, and resources (such as people, machines, materials, documents, and drawings). You can assign networks to a project.A network is a special type of work order that has the same structure as production orders, maintenance orders, and inspection orders in the R/3 System.

A key step in project planning is determining the sequence in which the activities will be performed. This involves determining which activities are dependent on each other and which activities require additional work or must be broken down even further. In Project Systems, this planning of processes and sequencing of activities is done using networks. A network consists of a network header and a series of activities either with relationships and, optionally milestones.

Cost Center
The cost center master record represents the main organizational unit in Controlling. Each department units will have their own Cost center number. Each department will plan and monitor their yearly budget expenditure on their respective cost centers.

Profit Center
Is an organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Profit Center groups are collections of Profit centers with similar characteristics.Activity Types

Activity Types
Activity types define the type of activity that can be provided by a cost center(work activity, machine hours, and so on).

What are Work Breakdown Structures used for?

  • Planned Costs.
  • Periodic Processing of Overheads, Settlements and Earned value analysis.
  • execution of actual costs.
  • Commitments with Purchase Reqs and Purchase Orders.
  • Dates for Basic, Scheduled and Actual.
  • Budgeting with Updates, releases and availability control.

Activities and Networks -Functions

  • Internal Activity with Internal work, dates, capacities and work.
  • Milestone trend analysis
  • cost activity with dates and costs.
  • period processing with overhead and settlements.
  • External Activity with dates, costs, commitments.
  • Internal Activity with Dates, capacities, and costs.
  • Material dates, costs, and commitments.

This document provides the basic hierarchical structure of the Project Systems module in SAP.The document also defines the terminologies used frequently in the Project Systems module. Also, the tables used in the module with the links are diagrammatically presented which will be useful to technical people for customized development.

From a technical perspective, refer Hierarchical Structure for an overview of how all the tables are linked in SAP.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: