SAP PS (S/4HANA) Project System Overview

SAP PS (S/4HANA) Project System Overview

Project System is one of the key modules of SAP to perform project and portfolio management. It helps you to manage the project life cycle starting from structuring to planning, execution, until the project completion. Project system is closely integrated with other SAP modules like logistics, material management, Sales and Distribution, Plant Maintenance, and Production planning module.

It enables organizations to manage all SAP projects- large and small-scale projects efficiently. The Project Manager has a task to ensure that these projects are executed within budget and time and to ensure that resources are allocated to the project as per the requirement.

Before a project is initiated, it is required that project goal is clearly defined and the activities be structured.

The integration between SAP Project System PS with SAP ERP R/3 application modules allows you to design, plan, and execute the projects as part of your normal project procedure. Hence, Project System module has the constant data access to all the departments involved in the project.

Types of the Project

As per budget, projects can be categorized in the following categories 


  • External Financed Projects− This includes the projects which are sponsored by clients and are executed to meet the client requirements. These projects are called customer projects and project goal is aligned to meet the customer demand.
  • Internal Financed Projects− This includes project related to capital investment or overhead cost projects.