Describing Integration Scenarios for PPM

The preceding graphic shows how many companies use other project management systems instead of (or in addition to) Project Management in various departments or for various project categories. These include Microsoft Project, Project System, or any standalone external project management systems. PPM allows you to integrate data from projects of these project management systems.

Project Management is a tool that can be used for the operational management of projects within PPM. Along with project structuring and the management of resources, Project Management also provides functions such as time scheduling or document management.

Based on the planned work for roles or tasks, you can also calculate costs or revenues in Project Management and transfer them to internal orders or work breakdown structures. The implementation phase of projects in Project Management is supported by the status management and special approval processes for phases and confirmations.

By default, you can link Microsoft Project, Project System, and Project Management with PPM. Data from these project management systems can be uploaded to PPM to be evaluated and compared together in PPM, or to be used for central resource management. The data from projects of these project management systems can be used to adjust data in portfolio items, and also to create task hierarchies and roles in the assigned Project Management projects.

Another PPM interface allows you to integrate the resource data required for the central resource management across all project management systems from SAP Human Capital Management (SAP HCM) systems. Based on personnel data in SAP HCM, you can automatically create and update business partners, their qualifications, and their availability in PPM.

Along with the structure, scheduling, and resource data, it is also possible to evaluate financial details of linked projects in PPM to obtain an overall picture.

You can make informed decisions about the further processing of these items. For this purpose, you can also upload costs, revenues, budgets, and commitments of these projects from accounting (subsequently referred to as FI/CO) to PPM. You can compare them with the strategic financial planning of items and buckets.

These costs also include the costs for the work carried out by the respective resources. To enter this work and to calculate the corresponding costs, you can use the Cross-Application Time Sheet (CATS).

For a better understanding of how PPM or Project Management, external project management systems, FI/CO, and CATS work together, see the figures, Integration Scenario 1, Integration Scenario 2, and Integration Scenario 3. For the sake of simplicity, integration with HCM is not mentioned.

Many customers use Project Management directly for the operational management of their projects. Therefore, it is not necessary to set up an integration with an external project management system. Integration with FI/CO is used to display financial details in PPM.

The sample scenario displayed in the preceding graphic, begins with the creation of a portfolio item. The portfolio manager or item manager creates a portfolio item, enters critical success factors, and executes an initial forecast of the required capacities and financial resources. In a review, decision-makers compare these data with the data of other portfolio items and make a decision regarding the further processing of the portfolio item.

Parallel to this, a project is created in Project Management and linked to the portfolio item. This can be performed automatically or manually when the portfolio item is created at a later stage, for example, after the portfolio item is first approved. The project lead defines the project roles required for their project, and the relevant resource manager then provides these roles with suitable resources. The resource requirements and staffing can be integrated into the strategic capacity planning of the portfolio item and compared with the projected capacity requirements.

Parallel to the associated project, you can create cost collectors in the FI/CO system. You can use these collectors for a detailed cost planning, budgeting (if required), and collection of the actual costs of the project. Cost collectors can be one or more internal orders or a Project System work breakdown structure that allows multilevel controlling of the project. Cost collectors can be created automatically from Project Management. You can also manually create cost collectors in the FI/CO system and then link them with the Project Management project (account assignment). Data from Project Management can then be transferred automatically to the cost collectors and used for cost estimates. By integrating the FI/CO system with PPM, the planning data of the cost collector can also be transferred to the corresponding portfolio item, and compared with the projected financial details.

After the approval of the portfolio item, the associated project is released. The resources assigned to the project can confirm their working hours using CATS. The resources can automatically import default values from Project Management to the CATS worklist. The data entered in CATS can then be transferred to Project Management and FI/CO. This results in actual costs on the cost collectors for the work carried out. In turn, the actual work and actual costs of the cost collector can be transferred to the portfolio item and monitored in PPM.

Operational project management is performed with Project System instead of Project Management. With the integration of FI/CO, the cost, revenue, budget, and commitment data from Project System is transferred to PPM.

The sample scenario outlined in the preceding video also begins with the creation, strategic planning, and a first review (if applicable) of a portfolio item.

The sample scenario outlined in the preceding figure also begins with the creation, strategic planning, and a first review (if applicable) of a portfolio item.

In parallel, a project is created in Project System. You can do this manually, or you can create a project in Project System from the portfolio item. The project is used in Project System for a detailed structure, scheduling, and cost planning. You can synchronize attributes and statuses of the Project System project with the item and item decision points. The synchronization can be bidirectional. Financial planning data of Project System projects are also transferred to PPM, and are compared to the strategic financial data.

If necessary, the budgeting and execution of the project is performed in Project System once the portfolio item has been approved in PPM. For example, you can use the time sheet to enter time data and to post actual costs to the project. By uploading project data to portfolio item, you can monitor the dates and financial details, and therefore, the project progress in PPM.

The preceding video displays a scenario in which Microsoft Project is used for the operational management of a project. The cost and revenue of the project are managed in parallel in FI/CO. In PPM, you can combine and monitor the project data from Microsoft Project and the financial details from FI/CO. In addition, you can use PPM for the central administration of resources.

This sample scenario also begins with the creation, strategic planning, and, if applicable, a first review of a portfolio item. In PPM, a project definition is automatically created as a technical basis for the integration of structure, scheduling, and resource data from Microsoft Project.

The structuring, scheduling, and determination of the required resources of the project are performed in Microsoft Project. When you upload project data to PPM or Project Management, this creates the corresponding project structure elements and roles. The resource manager in PPM can then staff these roles with suitable resources. The integration of data with the strategic capacity planning allows an aggregated evaluation at the portfolio item level and at the level of portfolio buckets.

Cost and revenue planning, any budgeting, the posting of actual cost, and revenue are performed in a cost collector (for example, an internal order in FI/CO). The cost collector is linked to the portfolio item in PPM. The financial details can then be transferred to the portfolio item and integrated into the strategic financial planning. At the portfolio item level in PPM, the project data from Microsoft Project as well as the corresponding financial details from FI/CO can be evaluated and monitored together.