Budget:-Budget is the financial limit assigned to a project or WBS element to ensure spending is

within Control.

Budgeting is a crucial part of project planning and execution.

Budgeting in project management refers to the approved amount of money allocated to carry
out a [Link] includes all planned

Costs like material,labor,services, and overheads.

Purpose:-The main Purpose of Budgeting is cost Control.

Process Overview:-project Created with a structure using [Link] the budget is prepared and
approved

using an internal [Link] approval the budget is entered and released in the
system.

During Project Execution,actual costs are compared against the budget.

if actual costs exceed the budget, System shows a Warning or error based on tolerance
limits.

EX:-If a company is constructing a new office, it might approve a rs50 Lakh Budget. all expenses
like Construction,labor, and materials will monitered

against this [Link] expenses reach rs45 lakh, only rs5 lakh will be available for remaining
work.

INvestment Project:-

is a project that involves Long-term capital expenditure, typically for acquiring or

constructing assets like buildings, machinery,

or [Link] as increased production capacity, cost savings, or strategic

advantages.

in sap ps an investment project is created to plan,monitor,and control such capital

investments.

Settlement:-to transfer Costs to fixed assets once project is complete.

EX;-Setting up a new production Plant or buying heavy equipment would be handled as an

investment project.
Milestone:-

A Milestone is a significant point or event in a project that is used for monitoring progress and
controlling activities.

Milestones are generally Linked to activities in a network.

They can be used for purposes like triggering billing, releasing payments, scheduling
dependencies, or confirming progress.

EX:-completion of design, prototype approval, or final delivery.

Where it is Used:-They are mainly used in networks and are attached to activities.

Purpose:-For Progress Tracking

To trigger Billing

To Relese Payments.

For Workflow or apporoval Points.

For technical Confirmation of work done.

EX:-suppose we have a construction [Link] the foundation is completed, a milestone is

triggered.

Based on that, partial billing is done or next activity starts.(CN22)

oka construction project lo foundation(Punadhi) poorthinainappudu, oka milestone trigger

authundhi.

dhani adharamga billing chestharu ledha thadhupari activity start authundhi.

Project Profile:-

a Project Profile is a key Control elements that defines the default settings and parameters
for creating and managing a project.

it controls how a project behaves during its lifecycle.

 Purpose:-Project Profile defines the framework for project [Link] ensures consistency
by assigning default Values.

Controls:-Number Range for Wbs elements & Project definition.

Planning Methods:-(Cost Planning, revenue Planning)

Budget Profile

Settlement rule Strategy

Costing Parameters

Default Object Types(like network profile, planning profile)

When It is used:-Whenever we create a project CJ20N, we select a project profile Which

automatically brings all standard Settings.

EX:-if we are creating a capital project for a new plant setup, we use a specific project profile
which has settings for budgeting, settlement

to asset,and cost [Link] simplifies project creation and avoids manual entry errors.

project profile anedhi project create cheyyadamlo avasaramina anni default settings
thisukuravadaniki upayogistharu.

Availability Control:-

Availability Control is a budgeting function that helps monitor and control project costs.

It ensures that actual Costs and Commitments do not exceed the assigned budget.

Purpose:-To Control Costs within the approved Budget.

To Avoid Overspending in Projects.

 How It Works:-System Compares the assigned budget with actual Costs, Commitments, and
planned costs

If the expenses exceed the budget, the system can trigger warning or errors, based on
the tolerance limits.

Activation:-Availability Control is Activated through the budget profile.

Controlled at WBS element level

Tolerance Limits:-You can Define Different levels of tolerance with specific messages(info,
warning, error)

EX:-If 95% budget is consumed System Gives warning, at 100% error.

EX:-If a Project has a budget of 10 lakhs and we try to post a cost of 11 lakhs, the system will
give an error

If Availability Control is active. This ensures that we stay within the budget limits.(CJBN)

Availability control anedhi project lo karchulu budget lopale undela choose

[Link] dhatithe warning ledha error isthundhi.

Substution:Validation:-

Substitution:-is used to automatically replace or fill certain field values during data
entry,based on specific conditions.

EX:-If The Project type is Investment The system can automatically substitute the cost
center with a default one.

Validation:-is used to check if the entered data meets specific business rules or
[Link] not, the system can issue a Warning or

error.

EX:-If Someone tries to assign a non-capital Cost center to an investment project, the
system will give an error message.
 Substtitution:-System certain Values ni automatic ga replace chesthundhi.

Validation:-System rules ni check chesi wrong data unte error or warning isthundhi.

These are useful tools in sap to ensure data integrity and follow internal business rules
automatically during project

or financial transactions.

Network Schduling:-

in sap ps is the process of calculating the planned start and Finish dates of activities in a
project, based on relationships,

durations, and constraints.

Purpose:-To determine the time of project Activities

Helps to Planning, Monitoring, and resource management

How It Works:-Activities are created in a Network.

We define Relationships(Like Finsh-Start,Start-Start)

Based on activity duration and relationships, system calculates.

Types Of Scheduling:-

Forward Scheduling:-calculates from the project start date

Backward Scheduline:-Caluculates from the Project end date.(CN22)

EX:-in a machine installation project, if Activity A is "Laying foundation" and Activity B

Is "Installing Machine"

We set a Finish-to-Start [Link] A is Completed in 5 days, B Starts on Day

[Link] System Calculates all the

dates automatically using scheduling.

 Network Scheduling anedhi project activities ki start& end dates calculate
[Link] Madhya relationships base

chesukoni system automatic ga timing ni fix chesthundhi.(fs,ss,ff,sf)

FS(Finish to Satrt):-default:-Finish before successor start

SS:-Start at same time or with delay

FF:-Both Activities finish at the same time

SF:-Rare:-Start Before successor can finish.

Used:-Created in Network Activities,Visualized in Planning Board.

EX:-oka activity purthi aithe tharuvatha activity prarambham avvali ane vidhamga.

Cost Planning:-

in Sap Ps refers to estimating and assigning planned costs to various project elements like
wbs elements and network activities.

It Helps in budgeting,Controlling,and comparing actual project expenses against planned

values.

Purpose:-To estimate total cost of a project.

Used for budget preparation.

Helps in Cost Control and Project Performance analysis.

Where:-at Wbs element evel

at network/activity level

also supports Unit Costing, Easy Cost Planning, and Detailed Cost Planning.

Methods Of Cost Planning:-Easy Cost Planning:-user-friendly for non-technical users

Detailed Cost Planning:-Item-wise Planning

Unit Costing:-used for precise quantity & rate-based cost

 Activity-Based Costing:-Cost Based on work, duration, and resource usage

Cost Planning ante Project Lo yee wbs/activity ki entha karchu Authundho mundhuga
estimate [Link] budget

plan chesi, execution time lo actual cost tho compare chesi control cheyyavachu.

Cost Planning in Sap Ps is Essential for Estimating, budgeting, and Controlling project expenses
to ensure financial discipline throughout the

project lifecycle.

Usage Of Activity:-

In Sap Ps, an activity represents a specific task or operation in a [Link] is used for
Scheduling, Costing, and Resource Planning.

Activities are Created under a Network and are essential for project execution tracking.

Types Of activities:-Internal Activities:-Work Done using internal resources(EX:-Employees)

External Activities:-Outsourced work(EX:-vendor services)

Service Activity:-Based on service specifications (linked with MM)

Cost Activity:-Direct Cost Planning(manual entry)

Genral Cost Activity:-used for overhead or general costs.

Where It Used:-In Network Structure(Under WBS)

EX:-activity anedhi project lo oka task laga [Link] scheduling, costing, resource assign
cheyyadam kosam vadatharu.

EX:-Instalation, testing, delivery-anni activities laga create chestharu.

Network Order:-

is a type of order used to plan and execute project [Link] links together tasks(activities),
resources, and costs, and is used
 for scheduling, costing, and resource planning.

Structure:-A network is created under wbs elements. it contains

Activities

Relationships(FS,SS,etc..)

Work Centers(For Capacity)

Cost elements

Materials or services(for Procurement)

Functions of Network Order:-[Link]:-Calculate activity Start and Finish dates

[Link] Planning:-Based on activity and assigned work

[Link] Planning:-Assign work Centers,labor,machines

[Link] Integration:-Triggers Prs for External activities.

[Link]:-Track Progress using CN25

[Link]:-Costs settled to wbs or asset

EX:-Network Order anedhi project lo activities, schedule,cost,resource lanu manage

cheyyataniki upayogapade structure.

idhi wbs kindha create chestharu.

Final:-A Network Order in Sap Ps is a detailed planning object used to define, schedule,
and execute project activities efficiently.