What is time proportionality in SAP PS - Project System?

SAP Term: time proportionality

• Component: PS

• Component Name: Project System

• Description: A measurement technique used in determining the percentage of completion POC in progress analysis. In the time proportional method, the POC is calculated in relation to elapsed time in the project. The assumption is that project progress is linear over time. You can use this measurement technique when you have short reporting periods or for activities such as consulting or administrative tasks.

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• Key Concepts: 
  Time proportionality is a concept used in the SAP Project System (PS) component. It is a method of calculating the cost of a project based on the amount of time it takes to complete it. This method is used to ensure that the cost of a project is proportional to the amount of time it takes to complete it. 
  
  How to use it: 
  Time proportionality is used in the SAP Project System (PS) component to calculate the cost of a project. The cost of a project is calculated by multiplying the amount of time it takes to complete the project by an hourly rate. This rate can be set by the user or can be determined by the system based on factors such as labor costs and overhead costs. 
  
  Tips & Tricks: 
  When using time proportionality, it is important to ensure that the hourly rate used is accurate and up-to-date. This will ensure that the cost of a project is accurately calculated and that there are no discrepancies between the actual cost and the estimated cost. 
  
  Related Information: 
  Time proportionality is closely related to other concepts such as resource leveling and resource smoothing, which are also used in the SAP Project System (PS) component. Resource leveling and resource smoothing are methods of ensuring that resources are allocated efficiently and that projects are completed on time and within budget.