Introduction

Effective financial management is a cornerstone of successful project execution. SAP Project System (SAP PS) provides comprehensive financial tools for budgeting, costing, and controlling to ensure projects remain financially viable and aligned with business objectives. Understanding how to leverage SAP PS for financial management enables organizations to optimize resources, track expenses, and maintain cost efficiency throughout the project lifecycle.

This course is designed to help project managers, financial controllers, and SAP users master the financial aspects of SAP PS. Participants will learn how to define project budgets, allocate costs, monitor financial performance, and integrate SAP PS with financial accounting (FI) and controlling (CO) modules. By the end of the training, attendees will be equipped with the knowledge and best practices needed to maintain cost transparency, enhance financial control, and drive profitability in projects.

Prerequisites

• Basic understanding of project management and financial concepts.

• Familiarity with SAP ERP modules, particularly SAP FI/CO (helpful but not required).

• No prior experience with SAP PS is necessary.

Table of Contents

1. Introduction to SAP PS Financials

1.1 Overview of SAP PS Financial Management
1.2 Key Financial Processes in SAP PS
1.3 Integration with SAP FI/CO for Cost and Revenue Management
1.4 Navigating Financial Transactions in SAP PS

2. Project Budgeting in SAP PS

2.1 Setting Up Project Budgets and Cost Elements
2.2 Budgeting Methods and Hierarchies
2.3 Budget Updates, Transfers, and Supplements
2.4 Budget Availability Control and Monitoring

3. Cost Planning and Forecasting

3.1 Cost Planning Strategies in SAP PS
3.2 Activity-Based Costing (ABC) for Projects
3.3 Resource Cost Allocation and Pricing Models
3.4 Forecasting Cost Estimates and Cash Flow Projections

4. Costing and Expense Tracking

4.1 Cost Elements and Cost Centers in SAP PS
4.2 Recording and Monitoring Actual Costs
4.3 Managing Internal and External Cost Allocations
4.4 Handling Overhead Costs and Adjustments

5. Revenue Planning and Billing in SAP PS

5.1 Revenue Recognition and Accrual Accounting
5.2 Integration with Sales and Distribution (SD) for Billing
5.3 Managing Customer Invoices and Payments
5.4 Profitability Analysis for Project-Based Revenues

6. Cost Controlling and Variance Analysis

6.1 Establishing Cost Control Measures in SAP PS
6.2 Analyzing Planned vs. Actual Costs
6.3 Identifying and Resolving Cost Variances
6.4 Performance Metrics for Cost Control

7. Reporting and Financial Insights in SAP PS

7.1 Standard Financial Reports in SAP PS
7.2 Customizing Cost and Budget Reports
7.3 Using SAP Business Intelligence (BI) for Financial Analysis
7.4 Real-Time Dashboards for Project Cost Monitoring

8. Best Practices and Real-World Applications

8.1 Case Studies on SAP PS Financial Management
8.2 Lessons Learned from Budgeting and Costing Challenges
8.3 Strategies for Continuous Financial Optimization
8.4 Future Trends in SAP PS Financial Management

Conclusion

SAP PS Financials offers a structured approach to budgeting, costing, and controlling, ensuring that projects are executed within financial constraints while maximizing profitability. By mastering these financial capabilities, organizations can gain better visibility into project finances, make informed decisions, and mitigate financial risks.

This training provides participants with the knowledge and hands-on skills to implement best practices in project financial management. By leveraging SAP PS effectively, businesses can enhance cost efficiency, maintain financial control, and drive successful project outcomes.