The PS module is well integrated with MM and FI modules in SAP. All the material purchases for project are being catered through Materials Management. Cost incurred in project during the project execution phase is being booked into Finance module which takes care of vendor payments and job closing entries. Cost booked on a project gets settled to assets under construction (CWIP) or cost center on periodically basis.
At the time of capitalization AuC cost transferred to asset.
The integration requirements of Project Systems module with different SAP ERP modules are shown diagrammatically as below: