SAP Module Overview

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SAP MODULE OVERVIEW

On this article you will learn about all SAP modules and a simple overview of each one. As you can see in the above picture we have 12 main modules which inside have several sub modules, you will have an overview of the main module and also links to a more detailed description of each of them. I will try to write this article in the easiest to READ and UNDERSTAND way possible to help the understanding of these basic concepts. If you think something is missing or want something to be added to this article just leave a comment. Now lets go back to the above picture, as you may see the center of everything is the R/3 Client. All modules move around this Center which is the client which is also the string that holds all modules together:

What is the R/3 Client?R/3 Client is defined as an independent accountable business unit within an R/3 system. A client can be a company, corporation or even a business unit. The simplest definition of an R/3 system is one database. In one R/3 system, there is only one database. To expand the definition, R/3 is considered to be all of the components attached to that one database. Thats

why we have the R/3 in the middle of our SAP world. But below our R/3 Client we have the term ABAP So now our question is:

What is ABAP?ABAP (Advanced Business Application Programming, ABAP is an object-oriented programming language used to develop applications for the SAP R/3 system. The ABAP programming language was originally used by developers to develop the SAP R/3 platform and was also intended to be used by SAP customers to enhance SAP applications customers can develop custom reports and interfaces with ABAP programming. The language is fairly easy to learn for programmers but it is not a tool for direct use by non-programmers. Good programming skills, including knowledge of relational database design and preferably also of object-oriented concepts, are required to create ABAP programs. SAP is also combining ABAP with JAVA. Learn More: ABAP VS JAVA.

Currently in SAP we have twelve modules; some of them are integrated by the combination of other modules:1. Financial Accounting (FI): An important core module, designed for meeting all the accounting and financial needs of an organization. Within this module Financial Managers as well as other Managers within your business can review the financial position of the company in real time. 2. Controlling (CO): Represents the companys flow of cost and revenue, offers all the support information needed by Management for the purpose of planning, reporting and decision making. Decision making can be achieved with a high level of information reducing drastically risks. Basically It is a management instrument for organizational decisions.

3. Sales & Distribution (SD): The SAP sales and distribution is part of the logistics module that support your customers, starting from quotations, sales order and all the way towards billing the customer. It is tightly integrated with the MM (Material Management) and PP (Product Planning) functional modules. It allows companies to input their customer sales price, check for open orders and forecast etc. 4. Material Management: (MM): Is the materials management module of the SAP. This module is used for Procurement Handling and Inventory Management. Materials management (MM) is integrated with other modules such as SD (Sales & Distribution), PP (Product Planning) and QM (Quality Management). Materials management is used for procurement and inventory management.

5. Product Planning (PP): The purpose of PP&C (Production Planning and Controlling) is to ensure that manufacturing runs effectively and efficiently and produces products as required by customers. The Production Planning module of SAP takes care of Master data needed like Bill Of Materials, Routings and Work Centers and stores it in one separate component. 6. Quality Management (QM): Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management is the comprehensive solution that supports the company throughout the product life cycle and along the supply chain.

7. Plant Maintenance (PM): oriented to cover all maintenance activities, supporting the Planning, Programming and Implementation, with emphasis on the availability of equipment, staff costs and Assurance, guaranteeing so the state of the art of database and optimization. SAPs Plant Maintenance comprises of the following activities such as inspection, to measures and establishes the actual condition of a technical system, preventive maintenance to measures and maintain the ideal condition of a technical system, repair to measures and restore the ideal condition of a technical system and other measures that need to be taken using the maintenance organization. 8. Human Resources (HR): It deals with various activities done in the human resource department of an organization, such as, Personal administration, personnel development, training and event management, payroll etc. This module enables customers to effectively manage information about the people in their organization, and to integrate that information with other SAP modules and external systems.

9. Project System (PS): Created to support the planning, control and monitoring of longterm, highly complex projects with defined goals .Projects are generally part of the internal processes of a company. To be able to control all tasks in project execution, you need an organizational form that is specific to the project and which is shared by all departments involved.

1. Introduction to SAP FI Module

SAP FI Financial module is maybe one of the most important modules behind SAP. It was designed for meeting all the accounting and financial needs of an organization. Within this module Financial Information is available for revision in real time. The real-time functionality of the SAP modules allows for better decision making and strategic planning. The FI (Financial Accounting) Module integrates with other SAP Modules such as MM (Materials Management), PP (Production Planning), SD(Sales and Distribution), PM (Plant Maintenance),and PS (Project Systems). The FI Module also integrates with HR(Human Resources) which includes PM(Personnel Management), Time Management, Travel Management, Payroll.Document transactions occurring within the specific modules generate account postings via account determination tables.

Such a complex module is formed by several sub-components also known as sub-modules:

Accounts Receivables: Responsible for handling all account postings and records generated as a result of Customer sales activity.Postings are automatically updated in the General Ledger . Within this module aging of receivables and specific customer analysis can be done. This module is integrated with the General Ledger (FI-GL) Sales and Distribution (SD) and Cash Management Modules. Accounts Payable: Records account postings generated as a result of Vendor purchasing activity. Automatic postings are generated in the General Ledger as well. Payment programs within SAP also enables the payment management of payable documents through several gateways. Asset Accounting: Used for managing companys Fixed Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class. Bank Accounting: Management of bank transactions in the system including cash management. Consolidation: combines financial statements of multiple entities within an organization. These statements provide an overview of the financial position of the whole company. Funds Management: Provides budget management for revenues and expenses within the company as well as track these to the area of responsibility. General Ledger/New General Ledger: These are fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. Financial Impacts from other modules are posted on the GL. These postings are displayed in real-time providing up-to-date visibility of the financial accounts. Special Purpose Ledger: defines ledgers for reporting purposes. Data can be gathered from internal and external applications and processed through SAP. Travel Management: provides management of all travel activities including booking trips and handling of expenses associated with travel.

2. Introduction to SAP CO

The SAP CO (Controlling) Module provides supporting information to Management for the purpose of planning, reporting, as well as monitoring the operations of their business. Management decision-making can be achieved with a high level of information provided by this module. The CO (Controlling) Module has several sub modules as follows:

Cost Element Accounting: provides all information related to the costs and revenue within an organization. This module works fully integrated with FI so all postings are automatically updated from FI (Financial Accounting) to CO (Controlling). Cost elements are the basis for cost accounting since they enable the User to display costs for each of the accounts that have been assigned to the cost element. Examples of accounts that can be assigned are Cost Centers, Internal Orders, WBS (work breakdown structures).

Cost Center Accounting: provides information related to the costs incurred by the business. Cost Centers within SAP are normally assigned to departments or manager responsible for certain areas of the business, as well as functional areas within the organization. Marketing, Purchasing, Human Resources, Finance, Facilities, Information Systems, Administrative Support, Legal, Shipping/Receiving, or even Quality are normally handled with Cost Centers and specific Cost Centers are normally created for each functional areas. Internal Orders: Internal Orders are used as a method to collect costs and business transactions related to a specific task. This level of monitoring is very detailed. Management usually uses this functionality to review Internal Order activity for betterdecision making purposes.

Activity-Based Costing (ABC): This sub module allows a better definition of the source of costs to the process driving the cost. Activity-Based Costing enhances Cost Center Accounting allowing a process-oriented and cross-functional view of the cost centers. It can also be used with Product Costing and Profitability Analysis.

Product Cost Controlling: Provides the ability to analyze product costs allowing optimal price(s) decision making to market products. Within this module of CO (Controlling) planned, actual and target values are analyzed. This module as well has two Sub-components:

o Cost Object Controlling: includes Product Cost by Period, Product Cost by Order, Product Costs by Sales Orders, Intangible Goods and Services, and CRM Service Processes. o Actual Costing/Material Ledger: includes Periodic Material valuation, Actual Costing, and Price Changes.

Profitability Analysis: Provides the functionality and provides the ability to review information related to the companys profit or contribution margin handled by business segment. The CO (Controlling Module) within the Profitability Analysis provides support for the following two methods to handle the analysis:

o Account-Based Analysis: uses an account-based valuation approach. In this analysis, cost and revenue element accounts are used. These accounts can be reconciled with FI (Financial Accounting). o Cost-Based Analysis: uses a costing based valuation approach as defined by the User.

Profit Center Accounting: provides visibility of an organizations profit and losses by profit center. The methods which can be utilized for EC-PCA (Profit Center Accounting) are period accounting or by the cost-of-sales approach. Profit Centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.

3. Introduction to SAP SD

Sales & Distribution (SD) is one of the core and most-used modules of SAP R/3 products beside Financial (FI), Controlling(CO), Material Management (MM), and Production Planning (PP) modules. The Sales & Distribution (SD) module consists of various components also called sub-modules. Which are known as:

(SD-BF) Basic Functions and Master Data in SD Processing. (Also subdivided in several components as: Pricing, Outputetc) (SD-BF-PR) Pricing and Conditions (SD-BF-EC) Extra Charge (SD-BF-CM) Availability Check and Requirements in Sales and Distribution Credit and Risk Management (SD-BF-AS) Material Sorting (SD-BF-OC) Output Determination (SD-SLS) Sales (SD-SLS-OA) Scheduling Agreements for Component Suppliers (SD-SLS-OA) Customer Service Processing (SD-FT) Foreign Trade/Customs (SD-BIL) Billing (SD-BIL-IV) Payment Card Processing (CAS) Sales Support: Computer-Aided Selling (SD-EDI) Electronic Data Interchange/IDoc Interface (LE-SHP) Shipping (LE-TRA) Transportation (SD-IS-REP) Reports and Analyses

The main areas covered by this module and the sub modules are:

Pre-sales activities, including Inquiry and Quotation creation. Sales Order processing, including Sales Order (SO) creation. Shipping, including Outbound Delivery document creation. Billing, including Billing document and invoice creation.

Sales & Distribution (SD) is a module highly integrated with other SAP Modules as FI, CO, MM, PP & more. This can make SD a complex module, so as part of this Introduction we will also try to detail a normal sales process and how the activities integrate and are covered by this module.

Pre-sales activities: It starts when a customer or a prospect requests information by any source about a product or service offered by the company. This request is processed through SAP and the the first integration we have is by the creation of a an Inquiry Document or a Quotation Document. At this point of the process we still havent effectively made a sale thats why it is considered as a presale activity.

Sales Order processing: Our quotation document previously created is send to our customer so they can make effective their purchase procedure. At this point they may want to negotiate payment terms, price, dates or any adjustments to the original document created by us.

As soon as we receive a Purchase Order (PO) from our Customer we create a Sales Order (SO) which makes reference to the previously created Quotation Document. Now scenario is adjusted based on the business requirements. In some cases depending on the business Sales Orders (SO) can be made without a previously created quotation document as also in other scenario this can be a requirement.

Inventory Sourcing: The product requirement from the Sales Order at the required date needs to be available by one of the following options: To fulfill the products requirement from an SO at the required date, we can obtain them by one of these options:

o Taking from Available stock at warehouse. At this point the SD module may trigger stock transfers between warehouses. o o Triggering a production order to produce the products in-house. Triggering a purchasing order to purchase the products from vendor.

Here is where the integration between Production Planning (PP) and Material Management (MM) starts.

Shipping: When the product we sold is available at the warehouse, the sales personnel can start shipping activities by creating an outbound delivery document (Delivery Order/DO). Now this Deliver Order (DO) can be created by referring to our original Sales Order (SO). This will trigger the preparation of the product by the personnel of the warehouse. If the Warehouse Management (WM) module is integrated, a Deliver Order (DO) can trigger a Transfer Order. When the products are ready to be sent, the warehouse personnel will post the Goods Issue (GI) transaction that refers to the DO. The GI transaction will reduce the inventory level of products and then the warehouse personnel sends the products to the customer by transportation mode that has been determined in Sales Order (SO) document. Billing: This whole process will be managed before the delivery date specified in the Sales Order (SO) document. The finance department will generate a billing document and send an invoice form to the customer. The invoice will request the customer to pay the products we have sent at the price condition and terms of payment we have agreed in SO document.

As you can see integration is one of the fundamental aspects of this module so a very good understanding of the process is required by all SD Consultants. This document will continue with a more detailed explanation between all these modules so dont forget to stay tuned.

4. Introduction to SAP MM

SAP MM (Material Management) one the biggest functional module in SAP ERP. This module mainly deals with the Procurement Process, Master Data (Material & Vendor Master), Inventory Management, Valuation of Material & Account Determination, Material Requirement Planning, Invoice Verification etc. This module is highly integrated with several modules in SAP. SAP Materials management (MM) covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It also includes Inventory and Warehouse management to manage stock until usage dictates the cycle should begin again. Electronic Kan-ban/Just-in-Time delivery is supported.

Some of the SAP MM sub-components are:

Consumption Based Planning: deals with stock replenishment utilizing material requirements planning (MRP), determining lot-sizing procedures, and performing forecasting, potentially with formulas. Purchasing: The purchasing area of MM provides the ability to determine possible sources to supply materials/services, the actual procurement of these materials/services, tracking the delivery from vendors, and monitoring the payments to those vendors. Within purchasing are the vendor master records, requisitions, requests for quotes, conditions and prices, purchase orders, and vendor confirmations among many other objects. Inventory Management: The inventory management component houses the material and service master records, and controls and tracks all the goods movements, receipts, issues, return receipts, stock transfers, reservations, physical inventory, stock determination, and batch handling. In addition, inventory management contains the actual costing material ledger that supports multiple currencies and valuations of a material as well as calculating an actual price from production. Invoice Verification: supports verification and material valuations such as Last In First Out (LIFO) and First In First Out (FIFO), revaluations for price changes, changes to the invoices for credits, taxes, cash discounts, checking the invoices, defining account impacts for invoices, canceling invoices, delivery costs, and determining invoice variances. External Services Management: The external services management component is provided to support the complete process of procuring external services from vendors, from bidding on invitations, to awarding the order, to acceptance of services. It is used to define the service specifications, enter the services performed, accept those services, and then verify the service invoice. The information systems within MM consist of vendor valuations, the purchasing information system, and inventory information.

5. Introduction to SAP PP

In any company when we talk about manufacturing we have align and manage several. The nature and the constraints of these resources are some times determined by some strategic decisions and daily running of manufacturing rests with Production Planning and Control (PP&C) The purpose of PP&C is to ensure that manufacturing runs effectively and efficiently and to align the production processes with the timings promised to customers. The PP module is divided into two Sub-modules:

PP-PI. Production Genera

But this higly complex module integrates with many SAP components like:

Master Data - includes the material master, work centers, routings and bill of materials. SOP - Sales and Operations Planning (SOP) provides tools for forecasting sales and production planning based on historical, current and future data.

DRP - Distribution Resource Planning allows to plan the demand for distribution centers. Production Planning - includes material forecasting, demand management, long term planning and master production scheduling (MPS). MRP - Material Requirements Planning relies on demand and supply elements with the calculation parameters to calculate the net requirements from the planning run. Shop Floor Control - includes the processing of production orders, goods movements, confirmations and reporting tools for production. Capacity Planning - evaluates the capacity utilized based on the work centers available capacity to show capacity constraints. Repetitive Manufacturing - in repetitive manufacturing, the manufacturing process is usually simple in that the same products are produced over a long period of time. This module provides the transactions and business process for companies to run repetitive manufacturing in SAP. KANBAN is a process of replenishment based on a pull system using KANBAN cards to generate the replenishment cycle. Product Cost Planning - is the process of evaluating all the time values and value of component materials to determine the product cost.

The Production Planning (PP) module of takes care of Master data needed like Bill Of Materials, Routings and Work Centers and stores it in one separate component. Production Planning (PP) module can also plan Capacity. The capacity Planning sub-module takes into account various capacities like pooled capacity etc. Production Orders reporting has flexibility of confirming orders with or without backflush. The material can be staged to production site from the Warehouse after releasing the order. Costing can be triggered automatically by integrating the module with the Cost Accounting Module. Integration with other modules like Material management, Financial Accounting, Cost Accounting, Human Resources & Development, Sales and Distribution etc adds on to reliability of the production planning system in SAP R/3. The system is a real time system. The changes in demand (cancelled or added sales order etc) and supply (high/low rejection, early/late supply from supplier, breakdown of facilities etc) are reflected in real time and the production controller can react fast to these changes. SAPs Production Planning (PP) module is one of the most effective and most requested tools in the market.

6. Introduction to SAP QM

To properly understand all concepts behind SAP QM lets try to reinforce the concept of Quality Management. Quality management as described is a method for ensuring that all the activities necessary to design, develop and implement a product or service are efficient and effective respect to the whole system and its performance. So Quality management is a comprehensive solution that supports the company throughout the full product life cycle and along the supply chain. The Quality Management component (QM) is part of the integrated R/3 System. With the functions of the Quality Management (QM) module, you can implement the most important elements of a QM system, as specified in ISO 9000: Quality planning Quality Inspection Creating and managing the master data that is required to plan and execute quality inspections. Determining whether the units inspected fulfill the predefined quality

Quality Control

Quality Certificates Quality Notifications Test Equipment Management

requirements Implementing different preventive, monitoring and corrective activities. These activities are based on the specifications from quality planning and the evaluations of quality inspections and quality notifications. Certifying the quality of a material or product. Recording the Non-Conformance of product. Managing master data as well as the planning and processing calibration inspections for test and measurement equipment

SAPs Quality Management (QM) offers a wide range of functions and collaborative services, which are fully integrated into SAP ERP, for assuring and managing the quality of products and assets. It also focuses on prevention and continuous process improvement through collaboration and sustained quality control. SAP Quality Management (QM) module supports tasks associated with quality planning, quality inspection and quality control through the enterprise. It sets the specifications for quality and standard testing procedures, controls the creation of quality certificates and manages notifications related to quality. It also stores the quality data for raw materials, goods-in-process and finished goods. Quality Management (QM) is a complex module highly integrated with other modules as seen In the picture at the top of this post. Very soon I will be writing an article with the details of the integration between this module and others so stay tuned!.

7. Introduction to SAP PM

The R/3 Plant Maintenance (PM) module is the application component that provides a comprehensive software solution for all maintenance activities that are performed within a company. Data and functions of all maintenance procedures performed within a company can be fully interconnected making this module closely integrated with other modules like Materials Management (MM), Production Planning (PM), Sales & Distribution (SD), Controlling (CO). Data within this module is always kept current and processes that are necessary for Plant Maintenance and Customer Service are automatically triggered in other areas (A purchase requisition for non-stock material in the Materials Management/Purchasing areas). The openness of the R/3 System enables you to use external systems that are integrated with the Plant Maintenance (PM) component, such as geographical information systems (GIS), computeraided design (CAD) systems and supervisory control and data acquisition (SCADA) systems. The SAP Plant Maintenance (PM) comprises activities such as inspection, measures and establishes the actual condition of a technical system, preventive maintenance to measure and

maintain the ideal condition of a technical system, repair to measure and restore the ideal condition of a technical system and other measures that need to be taken using the maintenance organization. To fulfill these activities Plant Maintenance (PM) works with the following Sub modules:

Management of Technical Objects: includes master data objects such as functional locations and equipment master records. Maintenance Processing: includes processing steps such as notifications and work orders. Preventative Maintenance: includes maintenance planning and work scheduling tasks.

This makes SAP R/3s PM module to function as a computerized maintenance management system (CMMS). So lets define properly what these type of systems are: A CMMS software package as properly maintains a database of information about all maintenance operations within an organization . This information is intended to help maintenance workers do their jobs more effectively (for example, determining which storerooms contain the spare parts they need) and to help management make informed decisions (for example, calculating the cost of maintenance for each piece of equipment used by the organization, possibly leading to better allocation of resources). The information may also be useful when dealing with third parties; if, for example, an organization is involved in a liability case, the data in a CMMS database can serve as evidence that proper safety maintenance has been performed. These type of systems are a MUST for large enterprises in order to guarantee their work properly. These type of packages typically deal with some or all of the following: Work orders: Scheduling jobs, assigning personnel, reserving materials, recording costs, and tracking relevant information such as the cause of the problems, downtime involved, and recommendations for future action. Preventive maintenance (PM): Keeping track of PM inspections and jobs, including step-bystep instructions or check-lists, lists of materials required, and other pertinent details. Typically, the CMMS schedules PM jobs automatically based on schedules and/or meter readings. Different software packages use different techniques for reporting when a job should be performed. Asset management: Recording data about equipment and property including specifications, warranty information, service contracts, spare parts, purchase date, expected lifetime, and anything else that might be of help to management or maintenance workers.

Inventory control: Management of spare parts, tools, and other materials including the reservation of materials for particular jobs, recording where materials are stored, determining when more materials should be purchased, tracking shipment receipts, and taking inventory. Safety: Management of permits and other documentation required for the processing of safety requirements. These safety requirements can include lockout-tagout, confined space, foreign material exclusion (FME), electrical safety, and others. As you may see SAP has specific modules for handling all these activities mentioned. So SAP R/3s Plant Maintenance (PM) module functions as a computerized maintenance management system (CMMS) and is used to plan and schedule ongoing, daily facility maintenance fully integrating with all other SAP Modules.

8. Introduction to SAP HR

SAP Human Resources (HR) resource management system solution is one of the largest modules in the SAP R/3 system which enables the effective management of information about th people within an organization and integrates this information within external system and SAPs modules. We define an organization as an individual enterprise that works with sub departments like HR, Marketing, Finance, R&D etc. For any organization employees or Human Resources

are considered the most powerful resource. So to maintain the employee related data we require one system which ensures accuracy and consistent within the organization. The basic task of Human Resource Management is to produce the organizational hierarchies, relationships between employees and to allow effective storage and administration of employee data. Now from the Organization Management perspective, companies can model a business hierarchy, the relationships of employees to various business units and the reporting structure among employees. Some basic processes covered by any Human Resources department are:

Personnel Administration (PA): sub module helps employers to track employee master data, work schedules, salary and benefits information. Personnel Development (PD): functionality provided by this sub module focuses on skills of each employee, qualifications and career plans. Time Evaluation: process attendance and absences, gross salary and tax calculations, Payroll: payments to employees and third party vendors.

More sub-modules provided by the (HR) module are:

Organizational Management Personnel Administration Recruitment Time Management Payroll Benefits Compensation Management Personnel Cost Planning Budget Management Personnel Development Training & Event Management Travel Management

Many of these sub modules are further sub divided into many components like Time Management which is further divided into Time Administration, Shift Planning, Incentive Wages and Time Sheet. Environment Health & Safety is further divided into Occupational Health & Industrial Hygiene & Safety and so on this is why is considered one of the biggest modules. Consistent with the overall integration of SAP R/3, the HR module shares information with other modules, such as Financial Accounting (FI), Controlling (CO), Production Planning and Business Workflow. The Payroll processes use Accounts Payable functions to print checks, manage payment and bank information, and process payments to tax authorities and other thirdparty vendors. Payroll results are also posted to General Ledger accounts for use in periodic income and expense reporting. For management accounting, information regarding employment costs can be transferred to Cost Centers with in the CO module. Employees can be assigned to Work Centers, which are used in conjunction with modules like Production Planning (PP). Assigned positions and reporting relationships are used in Business Workflow to route purchase

requisitions and other documents for approval. As mentioned before this same integration can be made with external systems offering additional flexibility within this module.

9. Introduction to SAP PS

Big and Small-scale projects require precise and detailed planning of activities involved. Theses plannings require resources to be assigned to specific activities aswell as setting and controlling budgets. Each and every day markets are becoming more and more competitive. Companies are demanded to more fast development and production of products. Processes need to be more optimized to force cost reductions and competition is growing faster every day. Therefore, a process for research and development projects that is both chronologically and organizationally perfect gains more importance . The SAP Project System (PS) optimizes the business processes from project planning through to carrying out the project and enables a project progress analysis. You can plan, carry out and control projects in a target-orientated and a business fashion. Projects are generally part of the internal processes of a company. To be able to control all tasks in project execution, you need an organizational form that is specific to the project and which is shared by all departments involved. Before you can carry out a project in its entirety, the project goals must be precisely described and the project activities to be carried out must be structured.

A clear, unambiguous project structure is the basis for successful project planning, monitoring, and control. The high degree of integration between the Project System (PS) and other R/3 application components means that you can plan, execute, and account for projects as part of your normal commercial procedures. This means the Project System has constant access to data in all the departments involved in the project. That way the R/3 Project System guarantees close and constant monitoring of all aspects of your project. This includes both technical and commercial aspects of the project

Projects in SAP (PS) can be structured the following way:

By structures, using Work Breakdown Structures (WBS) By process, using Individual Activities (work packages)

Projects can de be distinguish between these types:

Externally financed projects Customer projects Internally financed projects Overhead cost projects Capital investment projects (Integrating with Investment Management Module)