Where and which areas the SD & PS integration will happen?
 

The PS Sales and Distribution Integration is mainly for the customer projects.

Some I have listed below are:

* System will generate projects/network during creation of sales order.

* Your sales order value will go to PS as planned revenue.

* When you do billing in sales order you will get actual revenue in the project.

* When the milestone is achieved or confirmation of the network activity, billing block will be removed in your sales order for billing.

Also the DIP profile is another area to check out in PS-SD. The idea is to use this in Resource Related Billing scenarios. It's a very interesting feature that has been introduced in 4.6C onwards. 

This enables you to select at various levels (like Cost element etc.) how the billing needs to be done.
 

Additional notes:

1. During inquiry you can enter your WBS element, and do your project planning cost and after that become your estimate price send to customer thru quotation.

2. If you use variant configuration, you determine activity and component for your project from sales order variant.

3. You can run availability check based on project planning to check you can deliver on time.

Also Read
Change Documents in SAP Project

SAP PS Reference Books:
SAP Project System, Interview Questions and Certification, Books

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