SAP ConsultingProjects and engineering
SAP PS - Project System
SAP PS (Project System) builds capital and customer projects from a work breakdown structure (WBS) and networks, and tracks budget, cost, revenue and capitalization on those objects. In S/4HANA every actual project posting lands in the Universal Journal (ACDOCA) with its WBS element.
Process
A capital project in SAP PS, from WBS to asset
A capital project ends by settling AuC to fixed assets; a customer project ends with milestone billing and revenue recognition in EBRR.
- 01StructuringCJ20N · Project Builder
WBS and network from templates
- 02Scheduling and costingCKCM · ACDOCP
Dates, float, planned cost
- 03BudgetingCJ30 · CJ37 · CJ32
Availability control
- 04Release and executionF2930 · F0296
AuC created on release
- 05Progress and period-endCNPAWB · CJI3N
Plan and actual side by side
- 06SettlementCJ88 · CJ8G
From AuC to fixed assets
Comparison
One project, two profit figures
On a multi-year construction job, tax profit is fixed when the work ends; TFRS 15 spreads revenue as progress is measured.
Tax: GVK Art. 42-43
Multi-year construction work
- Profit fixed in the year work ends
- All of it is income of that year
- Each job's revenue and cost kept apart
- Shared overhead split by spend ratio
Reporting: TFRS 15
Performance over time
- Revenue spread as work progresses
- Progress may use an input method
- In S/4HANA: EBRR method 3 (POC)
- Postings go straight to ACDOCA
Our setup in SAP PS
Consulting recommendation
- One project or top WBS per contract
- Allocation rule based on spend ratio
- Completion-year report
- Both results reported separately
Scope
Where SAP PS projects need design work
WBS and network templates
Standard WBS and standard networks, and the level at which planning, account assignment and billing flags are set.
Budget and availability control
Budget profiles with tolerances per transaction group: warning, email to the project manager, or error.
Project purchasing and stock
Requisitions and orders on activities or WBS elements; valuated or non-valuated project stock and requirements grouping.
Capital projects and AuC
Investment profiles, AuC created on release, multi-level settlement and capitalization in asset accounting.
Billing and revenue
Milestone billing plans, resource-related billing and EBRR keys on the billing WBS element.
Progress and reporting
Progress analysis in CNPAWB, Project Schedule (F5611) and cost reports, and Fiori equivalents of your ECC reports.
Current state
SAP PS in S/4HANA: what is different
- Actual cost and revenue sit in the Universal Journal (ACDOCA) with the WBS element. Since 2022, Easy Cost Planning and network costing write their plan to ACDOCP.
- Classic cost-element project planning is out of the menu but still works. It writes to totals tables, which reports built for S/4HANA Finance do not read; Report Writer/Painter does.
- On-premise rights to PS compatibility items ended in late May 2026; RISE runs them to end-2033 (Note 2269324). Progress tracking, workforce planning, project texts and claims were renewed.
- SAP recommends CJ20N instead of CJ21-CJ29 for scheduling. Customer project revenue is posted straight to the ledger with event-based revenue recognition (EBRR); KKA2 still exists.
Localization
Tax, TFRS 15 and e-Invoice in Türkiye
Multi-year jobs (GVK 42-43)
Each contract becomes its own project or top WBS. Shared overhead is split by spend ratio, shared machine depreciation by days used; profit is set when the work ends.
TFRS 15 versus tax
Under TFRS 15, revenue on work done over time follows measured progress, such as costs incurred; for tax, profit is fixed in the completion year. Plan for both early.
Progress invoices and e-Invoice
Milestone and resource-related invoices are created as SD billing documents and feed the e-Invoice or e-Archive flow from there. PS has no e-document of its own.
E-Invoice
From the field
SAP PS mistakes we keep running into
- The WBS mirrors the org chart. When department order drives the WBS, budget, cost and settlement breakdowns lose their meaning. The WBS carries cost and responsibility, the network time and resources; account assignment is flagged only where actual costs land.
- The investment profile comes after closing. SAP lets you assign the profile later, but only while the WBS element has not been settled. Defaulting it from the project profile and removing it where nothing is capitalized avoids correction postings.
- Orders settle straight to the AuC. In direct settlement, senders must exist while the asset is under construction, and documents pile up. SAP prefers multi-level settlement: costs collect on the investment WBS, then the AuC; non-capitalizable costs run apart.
- Old transactions are missed after conversion. CJ21-CJ29, the old Smart Business analytics and some classic reports are gone or lost their on-premise usage rights in May 2026. Before conversion we check usage in ST03N and map each transaction to its successor.
FAQ
SAP PS: questions we are often asked
What is SAP PS?
SAP PS (Project System) is the S/4HANA component that manages the structure, schedule, budget, cost and revenue of projects. A project is built from a work breakdown structure (WBS) and networks; purchasing, materials, labor and billing are assigned to that structure.
What is the difference between a WBS and a network?
The WBS is the cost and responsibility hierarchy of the project; budget and cost roll up there. The network defines the sequence, duration and resource needs of the work. Activities are assigned to WBS elements, and their costs flow to those elements.
How are capital project costs capitalized?
An investment profile is assigned to the WBS element, and an asset under construction (AuC) is created automatically when it is released. Costs settle to the AuC at period-end and to final fixed assets when the project finishes. Capitalizable and non-capitalizable costs are settled in separate runs.
Is SAP PS still part of S/4HANA, and what is EPPM?
Yes. PS is in the S/4HANA core scope, under SAP's Enterprise Portfolio and Project Management (EPPM) umbrella. Portfolio management, phase-based project management and Commercial Project Management under the same umbrella may need a separate license. Some ECC transactions in compatibility scope lost their on-premise rights in May 2026; most have a renewed successor.
How is revenue recognized on customer projects?
S/4HANA uses event-based revenue recognition (EBRR). The key on the billing WBS element sets the method; cost-based percentage of completion corresponds to the input method in TFRS 15. Because Turkish tax fixes profit on multi-year construction work in the completion year, the two results are reported separately.
Sources12 sourcesSAP Help Portal, SAP Support, Mevzuat Bilgi Sistemi +1
SAP Help Portal
- Control Functions of the Investment Profile help.sap.com (opens in a new tab)
- Recommendations in Capital-Investment Projects help.sap.com (opens in a new tab)
- Specifying Tolerance Limits help.sap.com (opens in a new tab)
- Supported Revenue Recognition Methods for Projects help.sap.com (opens in a new tab)
- Event-Based Revenue Recognition help.sap.com (opens in a new tab)
- Milestone Billing help.sap.com (opens in a new tab)
- SAP S/4HANA 2023 Feature Scope Description help.sap.com (opens in a new tab)
- Simplification List for SAP S/4HANA 2022 - Initial Shipment, Feature Pack Stack 1 & 2 help.sap.com (opens in a new tab)
SAP Support
Mevzuat Bilgi Sistemi
KGK
Sources checked as of October 2026. SAP Notes require an SAP for Me account.
SAP Consulting
Plan your SAP PS setup with a consultant
A good place to begin is your project types and capitalization flow.