In complex business environments, projects must be managed not only from a scheduling and execution perspective but also through rigorous financial control. SAP Project System (PS) provides comprehensive tools for project planning and monitoring, while SAP Controlling (CO) offers powerful capabilities for internal cost tracking and management. The integration between SAP PS and SAP CO is fundamental to ensuring that project costs are accurately captured, analyzed, and controlled throughout the project lifecycle.
This article provides an introduction to the integration between SAP PS and SAP CO, highlighting key features, benefits, and how these modules work together to support effective project financial management.
SAP PS focuses on project structure, scheduling, and resource management, while SAP CO handles cost accounting and internal controlling functions. Integrating these modules allows organizations to:
In SAP CO, cost objects like Cost Centers, Internal Orders, and Projects are used to collect costs. SAP PS integrates directly with CO by using WBS (Work Breakdown Structure) elements and Network Activities as cost objects. This means costs posted to PS elements simultaneously update CO cost objects, ensuring synchronized financial tracking.
Budgets planned in SAP PS are reflected in SAP CO, enabling budget availability checks during cost postings. This helps prevent overspending and enforces budget discipline by triggering warnings or errors if costs exceed approved limits.
Costs incurred on projects (e.g., labor, materials, external services) are posted through SAP PS but captured in SAP CO for detailed controlling. Upon project completion or at defined intervals, costs can be settled from PS objects (WBS elements, networks) to CO cost centers or profitability segments, enabling precise financial reconciliation.
The integration between SAP Project System (PS) and SAP Controlling (CO) is vital for effective financial management of projects. By linking project structures to controlling objects, organizations gain accurate, timely visibility into project costs and budgets, enabling better control and strategic decision-making. Understanding this integration empowers SAP users to leverage the full capabilities of both modules and drive project success.