Many of the activities to be carried out are triggered from the project during project execution. Some activities in project execution can be performed outside the project organization/Project System - for example, when purchase orders are submitted and processed by the Purchasing department.

Commercial activities are assigned by means of appropriate account assignments to a WBS element or network activity.

In addition to the Project System, the following functions from other modules are used:

• SD Sales order processing, dispatch, billing
• PP Production Planning and Control
• MM Materials Management, Services
• CO Internal Accounting
• FI External Accounting and Cash Management
• PDM – Product Data Management

Once the customer has sent in a purchase order, you can use the quotation already in place to generate a sales order. Any changes between the quotation and the order can be shown both in the sales order and the project.

Sales orders includes functions such as delivery and billing. The link to the project ensures that costs and revenues are updated correctly.

The budget is the approved cost framework for a project. It differs from project cost planning in that it is binding.

• Budget updates: Unforeseen events, additional work, inflation, and so on, may mean that you need to correct the original budget. You do this by means of budget updates. These take the form of:
• Supplements
• Returns
• Transfers
• Budget release: To ensure that the available funds are not used earlier than planned, you can release the budget in stages. Budget releases are based on the current budget - that is, the original budget as amended by supplements, returns, or transfers.

Releasing a project or subprojects enables you to enter actual postings for them. You base the decision to release the project on the results of the planning phase.

As the scope of the project or other basic scheduling factors may change, it is sometimes necessary to reschedule.

The best way to schedule a project efficiently is to compare the basic dates with the actual dates.

Confirmations document the state of processing in network activitities and activity elements. You can use them to produce a forecast of how project execution is likely to progress further.

• Activity assignment: Internal process by which you can assign valuated activities from cost centers to the cost receivers, according to what caused them.
• Confirmation from PDC and external systems: You can enter data in external systems and transfer it to the R/3 System.
• Activity confirmation: You can use this function to enter confirmations directly in the Project System. A distinction is drawn between individual, collective, and summary confirmations.
• Confirmation using timesheets: The timesheet is a cross-component application of the R/3 System, which you can use to enter network confirmations relating to employees of your company and external personnel. You can then transfer the data to the Project System.

Down payments are used for short or medium-term financing. They are usually made available to vendors or produces without any interest being charged. In some industries, it is usual to make a down payments if, for example, producers of goods that take a long time to make are not in a position to bear all the costs of financing production themselves. Down payments are usually made before production starts or when it is partially complete.

As part of material requirements planning, you create planned orders to cover the requirements. Planned orders represent requests to procure or produce a material. Planned orders for materials to be produced internally are converted into production orders. The material components required for production appear as items in the planned order and are copied into the production order when the planned order is converted.

You can enter statistical key figures to form key figures in reporting and to act as the basis for period-based allocations.

You use billing to create a customer invoice for the goods and services supplied on the basis of a sales order.

• Fixed price billing: Billing is per sales order item at a fixed price and as of a fixed date.
• Billing request processing and resource-related billing: In resource-related billing, items are created in the billing request, on the basis of cost information. The billing request is used to created billing documents as of the relevant dates.

You carry out period-based commercial transactions as part of period-end closing. This ensures that all the data is determined for a period and is made available to Enterprise Controlling.

• Periodic reposting: Defective postings in the project are corrected.
• Overhead rates: The system calculates rates based on the quantities or in proportion to the unit costs. The rates are applied to materials, personnel, or machines.
• Template assignment of overhead: While the system distributes overhead at a flat rate, during template assignment, it distributes the overhead for business processes or cost centers/activity types.
• Interest calculation: Valuation of funds committed in the form or costs, revenues, and payments; used to optimize the project payment flow.
• Actual price revaluation: The system initially values activities or business processed used as part of project processing using the planned prices, because the actual prices are not determined until the period-end closing stage. You carry out the revaluation to dertermine the actual costs on the basis of the actual prices.
• Results analysis: Periodic valuation of the results for the projects
• Settlement: The system settles some or all of the costs incurred in the project to one or more receivers. The system automatically generates offset postings to credit the project.

The Project System includes a flexible and comprehensive information system.