Subject: SAP - Project System (PS)
Author: [Your Name]
In the world of project management and enterprise resource planning (ERP), tracking costs accurately is critical to ensure financial control and decision-making. SAP Project System (SAP PS), a core module within SAP ERP, is designed to help organizations plan, manage, and monitor project costs and timelines efficiently. One essential aspect of cost management in SAP PS is the integration and use of Cost Centers from the Controlling (CO) module. This article discusses the concept, configuration, and best practices for implementing Cost Centers in SAP PS.
Cost Centers are organizational units in the Controlling (CO) module of SAP that represent areas where costs are incurred. These can be departments, teams, or even specific pieces of equipment. The primary objective of a cost center is to capture and manage costs for internal reporting purposes.
In SAP PS, projects often involve internal resources such as personnel, equipment, and overheads. By assigning these costs to Cost Centers, organizations can:
SAP PS integrates seamlessly with CO to facilitate comprehensive project cost tracking. Here are the main areas where Cost Centers intersect with PS:
Before using cost centers in SAP PS, ensure they are properly defined in Transaction Code: KS01 (Create Cost Center):
In SAP PS:
Within each network activity:
Note: Work centers are created using CR01, and the cost center is assigned during setup.
Activity types (transaction KL01) define the type of work performed and how it is costed. Each activity type is associated with a cost center and rate.
This allows SAP to calculate internal labor costs when the activity is executed in a network.
Use CJ20N to execute project planning and KAFD / CAT7 for actual activity allocation. SAP posts the cost from the sender cost center to the project WBS or network.
Once cost centers are implemented in PS, reporting can be performed via:
Implementing cost centers in SAP PS enhances the accuracy, transparency, and accountability of project cost tracking. By effectively linking CO and PS modules, businesses can gain deeper insights into internal cost drivers, improve budget control, and make more informed project decisions. As with any SAP implementation, success lies in thoughtful configuration, process alignment, and ongoing monitoring.
Keywords: SAP PS, Cost Center, Activity Allocation, Work Center, Project Costing, SAP Controlling, SAP Project System, CO-PS Integration