Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Best practice: orders and contract management


I am currently working with a client who has impropriety set-up their contract management. I am trying to find out what the best practice in SAP PS is to harmonize such practice with the standard.

The situation is as follows (picture in the attachment):

Project structure: SAP Investment Management >>>> Investment Program >>>> Investment Measure >>>> SAP Project System >>>> Top level WBS element >>>> Network

How do resources get consumed? (e.g. materials)

To consume resources, I formalize my request through a contract. This request then becomes a contract, which successively becomes a 'buy order'.

The problem:

The budget only gets consumed when my contract becomes a 'buy order'. So during the formalization phase, the budget value will remain static. E.g. I want to plan 5 investments and have 0 buy orders at the moment. For each plan, I will have the same budget figure and when I go to implement these contracts, I will go under-budget. So the system does not calculate that maybe plans 1 and 2 will use 90% of the budget leaving not enough for plans 3,4, and 5 (who all see a full budget).

What is the best standard in SAP PS to deal with this issue and what tools can I use to implement this? I was thinking the project builder. If so, could someone explain how to appropriately configure this?

I sincerely appreciate any feedback,

Best regards,


Former Member

Hi Jessica,

Good to read the question that is easy to understand !

In the standard system the budget will be consumed by PR immediately.

There is also an OSS note that allows to ignore PR-commitments for the budget control and consider only PO commitments for the budget control.

Alternatively, if PR will not be implemented it can be cancelled, and the budget will get back to the project.


0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question