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Setting the Application Flag 
Ensure you have selected the correct APPLICATION_FLAG attribute so that pipeline performance management (PPM) runs in SAP CRM (on-premise solution) as opposed to SAP CRM on-demand solution (hosted solution).

The default value of the application flag is zero, which corresponds to SAP CRM on-demand solution (hosted solution).
To select the application flag value:
1. Go to Customizing for Customer Relationship Management by choosing Transactions ® Settings for Opportunities ® Set Application Flag.
2. In the field App Indicator, select the value CRM.
The setting is initialized once in the INIT_APPLICATION_FLAG method of the implementation class CL_CRM_PPM_UI_UTILITY.