SAP PS Interview Questions and Answers

SAP PS Interview Questions And Answers prepared from Codingcompiler experts. These SAP PS Interview Questions were asked in various interviews conducted by top multinational companies across the globe. We hope that these interview questions on SAP PS will help you in cracking your next job interview. All the best and happy learning.

In this article, you’ll learn

SAP PS Interview Questions

SAP PS Interview Questions And Answers
Advanced SAP PS Interview Questions And Answers
The Best SAP PS Interview Questions And Answers

SAP PS Interview Questions

  1. What is SAP PS?
  2. What is SAP Project System module?
  3. Is Project system integrated with other modules of SAP ECC?
  4. What is an external and an internal project in terms of project budget?
  5. What is WBS?
  6. What do you understand by Project?
  7. How can PS be linked to COPA? How will the settlement take place in this case (when PS is linked to Controlling through COPA)?
  8. What is SAP-Project System
  9. What is Project Definition?
  10. Explain What is unit costing?

SAP PS Interview Questions And Answers

Q. What is SAP PS?

Ans. Project System provides tools to track project milestones, costs, and resources. SAP’s Project System module contains tight integration to the Controlling, Human Resources, and Logistics modules. It utilizes personnel records from HR, rolls costs into Controlling and links to materials or customers in the Logistics modules.

Two key objects that define the Project in SAP are:

Work Breakdown Structure – defines tasks and assign resources to those tasks
Network – defines the dependencies within the Work Breakdown Structure (WBS)

Q. What is SAP Project System module?

Project System is one of the key module of SAP to perform project and portfolio management and helps you to manage the project life cycle starting from structure, to plan, execution and till the project completion.

Q. Is Project system integrated with other modules of SAP ECC?

Answer: Project system is closely integrated with other SAP modules like logistics, material management, Sales and Distribution, Plant Maintenance, and Production planning module.

Q. What is an external and an internal project in terms of project budget?

Answer: 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.

Q. What is WBS?


  • A Work Breakdown Structure (WBS) is a model of a project and shows the project activities to be fulfilled in hierarchical form. It forms the operative basis for planning costs, revenues, and payments, as well as for scheduling, and budgeting. It also shows responsibility.
  • One definition from the Project Management Institute is as follows:
  • The Work Breakdown Structure (WBS) is a key planning tool used to define a project in terms of its deliverables while providing a method for breaking these deliverables into meaningful work efforts.
  • It is the functional basis for further planning steps in a project, for example, for process planning, cost planning, scheduling, capacity planning or costing, as well as project control.
  • It provides a clear picture of the project and facilitates the coordination and implementation of the project from a management standpoint.
  • It shows the work involved in a project.
  • Work Breakdown Structures (WBS) is created under an object known as Project definition.

Q. What do you understand by Project?

Ans. A project is a system which involves 1. project, sub-project, activities & tasks. It will have the good integration with the other modules like MM, Fi/co, & PM modules.

Q. How can PS be linked to COPA? How will the settlement take place in this case (when PS is linked to Controlling through COPA)?

Ans. The settlement will take place via a profitability segment. Level 1 WBS should have a settlement rule define to be settled to PSG and level 2 WBS should be settled to superior one WBS element. The main one level 1 WBS/ Project will be settled to PSG and variance will be posted to COPA.

Q. What is SAP-Project System

Ans. Project System is a Project management tool from SAP. Which has very good integration with the other modules of SAP like FI, CO, MM, SD, PP, HR, DMS? This module basically coordinates and controls all the phases of a project, in direct coordination with purchasing and controlling, from quotation to design and approval, to resource management and cost settlement.

Also beside the integration with the SAP module this Project system also has an integration with the third party popular Project management tools like Microsoft Projects and Primavera.

Q. What is Project Definition?

Ans. Project definition is a binding framework in SAP for all organizational elements created within a project (e.g. WBS and Networks). Data like company code, plant and person responsible can default into WBS if initially entered in the project definition. Such data can also default into the project definition via project profile which will then default it to subsequent WBS.

Advanced SAP PS Interview Questions And Answers

Q. Explain What is unit costing?

Ans. Unit costing is a means of recording all the costs – direct and indirect – associated with the delivery of services. Total cost of service provision divided by the total amount of service provided.

Q. What is the milestone triggering?

Ans. Whenever the confirmation of activities done and if the milestone is attached with that particular activity the milestone triggers the milestone as per the configuration done and it will do the billing through the SD module.

Q. What Is Standard Project Structure?

Answer :

Standard structures in Project System can be found in Standard project definitions and in Standard WBS These standard structures can be used as a template to standardize project management.

This brings about the advantage of Making the processing of projects more transparent (everyone create an operative project from a standard project), Enabling comparison of projects with similar structures, Facilitates project controlling

Standard project templates CANNOT be used to capture any actual data (e.g. costs, actual materials used) and they serve as a quick way to create an operative project during implementation stage. As such, it is recommended that nominated users maintain these standard project templates at least once a year or whenever there are process changes for each type of project.

Q. How Do You Control That The Project Does Not Run Over Allocated Budget?

Answer :

You use Availability Control by defining tolerance limits, which will allow you to define by how much you can overspend. For example, you can set the system to send you a message when 95% of the budget has been spent, and stop al PR´s when you have reached 100% or 110% of the budget. Path is Project System >>> Costs >>> Budget >>> Maintain Budget Profile >>> Define Tolerance Limits.

Q. What Setting Does New Scheduling Contains? Where Are These Settings Done (menu Path)?

Answer :

Control Key in transaction OPSU defines whether an activity can be confirmed, scheduled, capacity requirements determination, costs, etc. Other important settings include Network Types, Parameters for Network Types, Network Profiles and Control Keys. There settings are found in the following paths: Project System >>> Structures >>> Operative Structures >>> Network >>> Settings for Networks Project System >>> Structures >>> Operative Structures >>> Network >>> Settings for Network Activities .

Q. How LSMW and BAPI works?

Ans. LSMW is an encapsulated data transfer tool. It can provide the same functionality as BDC in fact much more but when coming to technical perspective most the parameters are encapsulated.

To list out some of the differences :

  • LSMW is basically designed for a functional consultant who do not do much coding but need to explore the functionality while BDC is designed for a technical consultant.
  • LSMW offers a different technique for migrating data: Direct input , BAPI,Idoc,Batch input recording. While BDC basically uses recording.
  • LSMW mapping is done by SAP while in BDC we have to do it explicitly.
  • LSMW is basically for standard SAP application while BDC basically for customized applications.

Q.  Is There Any Way By Which We Can Lock Two Specific Wbs Elements Say Overheads And Other Expenses, So That The User Cannot Release Pr?

Answer :

The easiest way would be to define the project release process in the bottom-up fashion. That means, you will only release the activities/WBS elements that you need from time to time during the course of the project. That way, charges won’t be accrued on a WBS element until it’s released (so, don’t release it until it’s ready for collecting costs).

Q. What do time profiles do?

Ans. The profile is part of the”Planning Board Profile” and it determines the beginning and the end of the evaluation and planning periods. This means that pre evaluation and post evaluation periods are defined automatically. This is how the Planning Board is displayed graphically.

Q. What is the Organisational structur of PS?

Answer: PS structure consists of Project Definition, WBS Elements and Networks. PS uses structures from FI/CO, MM, SD, etc. There is no structure of PS but the one provided above.

Q. What is Company Code?

Answer: Company code is smallest unit in an organization for which financial statements (profit-loss statement, etc.) can be generated.

The Best SAP PS Interview Questions And Answers

Q. What do you understand by Business Areas? Explain with the example of use?

Answer: Business Arears are used to differentiate transactions that comes from different line of business in a company.

Example −

There is a big company XYZ, which runs multiple business. Let us say it has 3 different domains like manufacturing, marketing and sales.

Now you have 2 options −
1. The first is to create different company codes.
2. And other better option is to create each of these business lines into business areas.

Q. For raising Client billing, is there any possibility of linking line items in SD module with Activities / WBS in PS module? 

Ans. It can be linked through DIP Profile and do Resource Related Billing for raising billing.

Q. Can Revenues be linked with Activities?

A. No, it can be done at WBS level with ‘Billing’ operative indicator.

Q. Can progress be updated in WBS elements?

Ans. Yes, You can use Progress Analysis (EVA) for this.

Q. We would like to compare the planned cost, actual cost & revenue for line items in SD module. For this as what object should we consider the line item in PS module.

Ans. You can use Billing level WBS in PS module. 

Q. What are settlement rules?

Answer: Settlement rules are nothing but settling the account for a cost center.Which WBS are account assigned the cost of corresponding WBS should be settled to the respective cost center assigned for that WBS.Settlement rule is assigned in settlement profile in which you will define (like assect) the rules of settlement.

Q. How do you define a Project?

Answer: A Project is defined as a temporary endeavor to create a product or to provide a service.

Q. Could you name few characteristics of a Project?


  • Projects has a defined goal which is agreed between company and customer and is defined in Project Charter.
  • A Project is complex, unique, and definitive in scope and involves a high certain risk to execute and complete on time.
  • Project has defined quality requirements.
  • Project has definitive cost, duration and resources to work on the project.

Q. What is the use of defining PS types in Project definition?

Answer: A Project type is used to group or classify the projects as required- Example: Banking projects Capital projects or IT development projects.

A Project type is also used for reporting, building authorization and for creating hierarchies and network in project planning. It can also be used for developing customer requirements e.g. use of BADI for WBS settlement rule determination based on project type as a parameter.

Related Interview Questions

  1. SAP ABAP on HANA Interview Questions And Answers
  2. SAP Adobe Forms Interview Questions And Answers
  3. SAP HANA Interview Questions
  4. Core Java Interview Questions
  5. JSF Interview Questions
  6. JSP Interview Questions
  7. JPA Interview Questions
  8. Spring Framework Interview Questions
  9. Spring Boot Interview Questions
  10. Core Java Multiple Choice Questions
  11. 60 Java MCQ Questions And Answers
  12. Aricent Java Interview Questions
  13. Accenture Java Interview Questions
  14. Advanced Java Interview Questions For 5 8 10 Years Experienced
  15. Core Java Interview Questions For Experienced
  16. GIT Interview Questions And Answers
  17. Network Security Interview Questions
  18. CheckPoint Interview Questions
  19. Page Object Model Interview Questions
  20. Apache Pig Interview Questions
  21. Python Interview Questions And Answers
  22. Peoplesoft Integration Broker Interview Questions
  23. PeopleSoft Application Engine Interview Questions

Leave a Comment