Business Blueprint

Project System

August 2018
Approval Sheet
Name Role Signature Date

Company Code
Project Manager
Consultant
Document Control
Version Author Reviewer Descriptions
Version V.1 Tulika Das BBP First Draft
Version V.2 Tulika Das BBP Correction and Update
Version V.3 Tulika Das BBP Correction and Update
Version V.4 Tulika Das BBP Correction and Update
Version V.5 Tulika Das BBP Correction and Update
Version V.6 Tulika Das BBP Update

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List of Abbreviations
Abbreviation Description
TEL Tuaman Engineering Limited
HREL Himadri Real Estate Limited
CGST Central Goods and Service Tax
SGST State Goods and Service Tax
IGST Integrated Goods and Service Tax
UTGST Union Territory Goods and Service Tax
ACWP Actual Cost of Work Performed
BBP Business Blueprint
BCWP Budgeted Cost of Work Performed
BCWS Budgeted Cost of Work Schedule
BOM Bill of Materials
CLSD Closed
CO SAP Controlling Module
CRTD Created
CV Cost Variance
EV Earned Value
FI SAP Financial Accounting Module
FICO SAP Financial Accounting and Control Module
GST Goods and Services Tax
HR Human Resource
ID Identity
KPI Key Performance Index
LKD Locked
MM SAP Materials Management Module
PD Project Definition
PO Purchase Order
POC Percentage of Completion
PR Purchase Requisition
PS SAP Project Systems Module
REL Released
RFQ Request for Quotation
RICEF Reports, Interfaces, Conversions, Enhancements and Forms
SAP System, Application and Product
SD SAP Sales and Distribution Module
SOW Scope of Work
SV Schedule Variance
TECO Technically Closed
WBS Work Breakdown Structure
WBSE Work Breakdown Structure Element
WIP Work in Progress
GI Goods Issue
GR Goods Receipt
MM Materials Management
PI Physical Inventory
PO Purchase Order
PR Purchase Requisition
QC Quality Check
QM Quality Management
RFQ Request for Quotations
RO Return Order
TBD To be decided later
T-Code Transaction Code
WO Work Order (Service PO)

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Table of Contents
Approval Sheet 2
List of Abbreviations 4

1. Business Blueprint Overview 7

1.1. Introduction 7
1.2. Objective of the Document 7
1.3. Scope of the Document 7

2. Business Process Overview 8

2.1. In-Scope Project Systems Business Processes 8

2.2. Step by step Business Processes to be followed in TEL 8

3. Key Data and Organization Structures 10

3.1. Company Code 10

3.2. Profit Centre 10
3.3. Revenue and Cost Element 10
3.4. Activity Type 11
3.5. Project Responsible Person 11
3.6. Project Coding Mask 11
3.7. Project Profile 11
3.8. Project Type 12
3.9. Planning Profile 12
3.10. Budget Profile 13
3.11. Network Profile 13
3.12. Settlement Profile 14
3.13. Project Structure 14
3.14. Work Breakdown Structure (WBS Structure) 15
3.15. Network Header 16
3.16. Network Activities and Milestones 17

4. Business Processes 20

4.1. Pre-bid Analysis 20

4.2. Creation of an Inquiry 20
4.3. Project Bidding 20
4.4. Creation of Sales Quotation 22
4.5. Creation of Sales Order (Acknowledgement) 22
4.6. Project Processed for Customer Project 22

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 4.6.1. Project Setup for Customer Project 22
4.6.2. Project Scheduling for Customer Project 24
4.6.3. Planning of Resources and Materials 25
4.6.4. Project Cost Planning for Customer Project 27
4.6.5. Project Budgeting for Customer Project 28
4.6.6. Project Execution for Customer Project 31
4.6.7. Billing for Lump Sum Contracts with Milestone Billing 33
4.6.8. Billing for Cost Plus or Time and Material Billing 35
4.6.9. Period End Closing and Financial Accounting for Projects 37

5. Reports 39

5.1. Commonly used Standard Reports 39

5.2. Custom Reports Required 41

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 1. Business Blueprint Overview
1.1. Introduction
Tuaman Engineering Limited started its journey in the year 2007. It has capability in the field of Engineering,
Procurement, Construction and commissioning. Its projects include execution of all types of Civil, Structural &
Mechanical (Works involving fabrication and erection of structures, ducting, Pressure vessels, Tanks, Heat
exchangers, Silos and erection of all types of Equipment involved in setting up of various production Units),
Piping, Electrical, Instrumentation on EPCC basis.

In Himadri Real Estate Limited no operations have started yet. However, the business operations will be same as
Tuaman Engineering Limited.

The purpose of this document is to present a comprehensive As-Is and To-Be Business Blueprint document and
the mapping in SAP for Materials Management module of TEL and HREL. The document will act as a single
source material for all future Materials Management related design in SAP in remaining phases of this project.

The processes mapped for Materials Management in this document is drawn from and influenced by detailed
discussions with various Core Team Members from various business units and have been taken into consideration
to arrive at As-Is Study.

The scope of the blueprint shall be limited to all Project System processes at TEL and HREL as it exists in Project
Charter.

The Business Blueprint document lays out how the business processes of will be executed in the SAP ERP system.
This is done by keeping in mind the SAP best practice as well as the requirements specific to the “Plant
Engineering/ Construction industry.

1.2. Objective of the Document

After going through the document, the reader would be able to understand

• How the business will be run in the SAP ERP system

• What will be delivered by the implementation partner.

It is assumed that the reader has basic familiarity with SAP Materials Management module, so that the SAP
specific terminologies do not require any explanation in this document.

1.3. Scope of the Document

The Business Blueprint document is created in the Business Blueprint Phase. This deliverable is a central grouping
of various disciplines. Blueprint deliverables and strategies will be the fundamentals for development and
management of the on-going phases of the project.

This document covers the project system processes.

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 2. Business Process Overview
2.1. In-Scope Project Systems Business Processes

Project System Processes

Phase
Input

Customer Material Management

Request for Quotation

Goods Issuance to Projects

Output

Pre-Bid Synopsis Begin Project

After Award

Project Execution

Period End Closing Processes

Billing
Project Systems

 Reservation
 Delivery Order  Purchase Requisitions Project Closure
 Billing

Settlement of Cost

Customer Material Management Finance (FI)

2.2. Step by step Business Processes to be followed in TEL

Step Step Name Descriptive details of the activity
1. Receive invitation to bid for TEL will receive an invitation to bid for a tender.
a tender
2. Pre-Bid Synopsis Prior to bidding, an analysis should be done as to whether TEL should
participate in the bid. In order to do this TEL will consider a number of
factors. These factors will be the factors which have been captured
previously as a part of the pre-bid analysis of other similar bids.
The pre-bid analysis data will be captured in a Z transaction for future
reference. If TEL decides to participate in the bid, then a tender project
will be created for it. In this project cost planning will be done to get a

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3. Creation of an Inquiry
4. Creation of Sales Quotation
5. Creation of Sales Order
6. Customer Project
7. Project Closure
cost estimate of the project. Based on this cost estimate, the quotation
will be created.
An inquiry will be created in the system.
Sales Quotation will be created based on the cost estimate done for the
tender project.
Sales Order will be created.
Once the customer awards the project to TEL. The project team will then
be required to create the project structure, carry out planning and
budgeting. Following on from that during project execution, project
progress and milestone confirmation will need to be recorded in order
for subsequent activities such as project reporting and billing to
customer to be carried out. During the execution stage, requirement for
purchasing and consumption of goods happens seamlessly through
integration with Material Management.
During the project closure stage, period end closing process would need
to be carried out in the Project Systems module in order to settle the
cost based on the project.
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 3. Key Data and Organization
Structures
3.1. Company Code
Company as defined by the law of a particular country, company means an organizational unit in Accounting
which represents a business organization according to the requirements of commercial law of that particular
country. Company Codes are the smallest unit within an organizational structure and is used for internal and
external reporting purposes. Financial transactions are viewed at the company code level. Company codes are
used to represent legal entities in business area scenarios.

Company code for TEL and HREL will be as shown below.

Company Code Name Country Currency Language

5000 Himadri Real Estate Limited IN (India) INR (Rupees) EN (English)

6000 Tuaman Engineering Limited IN (India) INR (Rupees) EN (English)

3.2. Profit Centre

Profit Centre Accounting lets user determine profits and losses by profit centre. A Profit Centre is a management-
oriented organizational unit used for internal controlling purposes.

Dividing the company up into profit centres allows user to analyse areas of responsibility and to delegate
responsibility to decentralised units, thus treating them as “companies within the company”. Profit Centre
Accounting lets user set up the profit centres according to product, geographical factors or function.

Each profit centre must belong to one Controlling Area. The profit centres in a controlling area are all contained
in a standard hierarchy for that controlling area.

Each state will be defined as a plant in the SAP system. Each plant will be mapped to a specific profit centre. The
profit center field will be mandatory.

3.3. Revenue and Cost Element

Revenue elements record the value of operating sales within one controlling area. Each revenue element
corresponds to a revenue account in a chart of accounts.

There are two types of cost elements within the Controlling (CO) module:

 Primary cost elements - Primary cost elements can be directly posted from Financial Accounting (FI)
module. Primary cost elements are created only if the corresponding General Ledger (GL) expense
accounts exist in the chart of accounts. The system defaults the cost element name from GL expense
account master data in FI, but the name can be changed in CO (if applicable).

 Secondary cost elements - Secondary cost elements are used for internal allocations of costs within
CO. They do not correspond to any GL account in FI. They are only used in CO and consequently cannot
be defined in FI as an account

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3.4. Activity Type
Activity Type classifies the specific activities provided by a cost centre. The costs appearing on the cost centre are
related to particular activity types. The total costs are assigned to activity types and, by dividing costs by activities,
are used in activity price calculation for the cost centre/activity type.

When new equipment is rented from external party and the equipment is being used by multiple projects. There
is a need to charge the usage of the equipment by projects.

In order to track the usage of the equipment by project, there is a need to request for new Activity Type to be
created. The activity price is maintained for each of the activity type.

At month end, the number of hours used for the equipment is computed by project. The usage of the equipment
is entered as activity allocation for each project. At month end settlement, the cost of the usage is transferred to
the project based on the activity hours confirmed.

3.5. Project Responsible Person

Project Manager is responsible for the particular project. Relevant project manager will be created in SAP as the
person responsible.

3.6. Project Coding Mask

The project coding mask determines and ensures the consistency of the format of project number and WBS
elements. The project coding mask will be harmonized for all entities within TEL doing similar business.

Expectation from coding mask is to identify the type of project which is created. All tender projects will start with
T. All customer projects will start with C.

The coding mask will be same for both tender projects and customer projects. Each level of hierarchy (i.e.) WBS
will be identified by a 2 digit identifier.

3.7. Project Profile

The information stored in a profile is standard information that is needed repeatedly in similar combinations for
the maintenance of different projects. A profile acts as a data entry tool and simplifies the management of generic
project data. Project profile also determines the assignment of controlling area, company code, functional area
and most importantly, the assignment of the project profit center.

The profit center field will be mandatory.

The following Project profiles will be created in the system:

Project Description
Profile
Z6000 TEL Project Profile - Overseas
Z6001 TEL Project Profile - Andhra Pradesh
Z6002 TEL Project Profile - Arunachal Pradesh
Z6003 TEL Project Profile - Assam
Z6004 TEL Project Profile - Bihar
Z6005 TEL Project Profile - Goa
Z6006 TEL Project Profile - Gujarat
Z6007 TEL Project Profile - Haryana

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 Z6008 TEL Project Profile - Himachal Pradesh
Z6009 TEL Project Profile - Jammu and Kashmir
Z6010 TEL Project Profile - Karnataka
Z6011 TEL Project Profile - Kerala
Z6012 TEL Project Profile - Madhya Pradesh
Z6013 TEL Project Profile - Maharashtra
Z6014 TEL Project Profile - Manipur
Z6015 TEL Project Profile - Meghalaya
Z6016 TEL Project Profile - Mizoram
Z6017 TEL Project Profile - Nagaland
Z6018 TEL Project Profile - Orissa
Z6019 TEL Project Profile - Punjab
Z6020 TEL Project Profile - Rajasthan
Z6021 TEL Project Profile - Sikkim
Z6022 TEL Project Profile - Tamil Nadu
Z6023 TEL Project Profile - Tripura
Z6024 TEL Project Profile - Uttar Pradesh
Z6025 TEL Project Profile - West Bengal
Z6026 TEL Project Profile - Andaman & Nico.Is.
Z6027 TEL Project Profile - Chandigarh
Z6028 TEL Project Profile - Dadra & Nagar Hav.
Z6029 TEL Project Profile - Daman and Diu
Z6030 TEL Project Profile - Delhi
Z6031 TEL Project Profile - Lakshadweep
Z6032 TEL Project Profile - Puducherry
Z6033 TEL Project Profile - Chhattisgarh
Z6034 TEL Project Profile - Jharkhand
Z6035 TEL Project Profile - Uttarakhand
Z6036 TEL Project Profile - Telangana

3.8. Project Type

The “Project Type” is mainly used for reporting purposes. Here we will use this field to capture the discipline of
the project i.e. Civil, Mechanical, Electrical and Composite.

This data needs to be captured by the users very diligently and carefully in order to get correct reports. This field
is primarily being used to address the requirement of a report which will display the revenues and expenditures
based on Customer, Sector and Discipline.

3.9. Planning Profile

Planning profile will control the planning parameters and how the expenses planning ‘behaves’ in the projects.
Planning profile is set up at configuration level and will be defaulted based on project profile.

You use the plan profile to regulate the following project-specific settings:

1. Planning on all WBS elements or only on planning elements

2. Bottom-Up planning within hierarchical planning

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The following planning profiles have been created for TEL.

Planning Profile Planning Profile Short Text

ZTL01 Only Overall Planning

ZTL02 Both Annual and Overall Planning

This will result in change in the operating procedures of the Users. The cost planning needs to be done in SAP.

3.10. Budget Profile

Budget profile will control the budget parameters and how the budget ‘behaves’ in the projects. Budget profile is
set up at configuration level and will be defaulted based on project profile. Based on the requirements of the
business, budget profile can be configured to allow for yearly budget, overall budget, or both.

Most of the time, Overall Budget profile will be used. System should stop procurement when 100% of the budget
will be consumed. Email to external mail id; of assigned project manager should be triggered.

Depending on the available budget, there should be control on creation of PO. System should not allow posting
of PO commitments if sufficient budget is not available.

Availability control will be carried out based on the budget released. This setting will be maintained in the Budget
Profile.

The following budget profiles will be created in SAP for TEL.

Budgeting Profile Budgeting Profile Short Text

ZTL01 Only Overall Planning

ZTL02 Both Annual and Overall Planning

This will result in change in the operating procedures of the users. Budgeting needs to be entered in SAP.

3.11. Network Profile

Network profile controls the parameters for network header and network activities. A network represents the flow
of a project or of a task within a project. It controls the timing of PR creation. Two options are useful for TEL -

a) Create PR on release of activity – for Customer projects

b) Never create PR – for Tender Projects

Different types of Network Profiles have been created for different type of projects.

Network Profile Network Profile Short Text

ZTL01 Network Profile for Customer Projects

ZTL02 Network Profile for Tender Projects

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3.12. Settlement Profile
Settlement profile controls how the project costs are settled to a settlement receiver.

Settlement profile which will be created for TEL will settle costs as listed below-

1) Tender Projects – Costs will be settled to the corresponding WBS if the tender is won. If the tender is not
won, then the cost will be settled to a G/L.
2) Customer Projects – Costs will be incurred on the WBS.

3.13. Project Structure

Project Structuring is basically to devise a project framework with a set of work packages (Work Breakdown
Structure) in accordance with the scope of services mentioned in the awarded contract received from the client.

Project Structure in SAP Project System can be divided into:

1) Standard Structure
Standard Structures in SAP Project System module serves as templates for creating new projects so that
projects of the similar nature will have identical Work Breakdown Structure and Network Activities. It
speeds up the project creation process in SAP and ensures uniformity in the project structure. This will
be part of Conversion Strategy during realization phase. All final templates will be finalized and shared
during that phase.

2) Operative Projects
Operative Project is the actual project in SAP Project System module that record project related financial
transactions such as material costs, labour costs, etc. and non-financial related transaction such as project
schedule information. It enables project related management reports to be generated for effective project
control.

In SAP, different templates will be available for different projects. So while starting a new project, the project
structure must be copied fully or partially depending on the scope of work from the relevant existing templates.

Project structure consists of different elements:

1) Project definition
2) Work Breakdown Structure
3) Network Header
4) Network activities
5) Milestones

Expectation from Project structure:

1) To have a predefined structure for different types of projects which will be followed across TEL
organization.
2) Also, when the scope of services is reduced or vary partially, the relevant structures can be copied from
the templates, no need to create a new one.
3) The common templates and the standard WBS structures will be created centrally, multiple project
managers within TEL can use the same. Going forward it will help in harmonizing further business
processes within TEL.

In the project structure the entire project object will have unique identification code which will be followed across
the group. It should be made sure that all important fields like WBS code, Profit center, etc. are correct.

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In SAP System there will be project definition templates which are called Standard Project definition from where
the project definition for a new project can be copied.

3.14. Work Breakdown Structure (WBS Structure)

WBS structure is a hierarchical model of the project that organizes project work packages at various levels.
A WBS element describes either a certain task or a partial task that can be subdivided further. A WBS can have
99 levels horizontally. Work Breakdown structures are changeable and its structures differ based on project
nature. Each project should have only one top level WBS element (root WBS element).

Work Breakdown structures will facilitate TEL to plan and control project budget and determine the profitability
of the project. The following are some of the important settings in WBS elements:

Item Description TEL Setting

01 Coding Mask Please refer to the Coding Mask write-up under Section 3.7 - Project Coding
Mask of this document.

02 Level The WBS element level represents the hierarchical structure of the WBS
elements, for example:
Structures are defined in the way shown below:
Level 0: Project Definition
Level 1: 1st level of WBS
Level 2: 2nd level of WBS
Level 3: 3rd level of WBS

03 System Status The current status of a project determines the type of business transactions
executed within the system.

The following system status is relevant for TEL :

Created (CRTD): It is the initial system status for new WBS elements
created. In this status the project can be structured and dates, costs etc., can
be planned. Actual costs cannot be posted.

Released (REL): The released status can be set based on project approval.
Actual costs can be posted in this status after assigning costs/budget to WBS
elements.

Technically Completed (TECO): This status is set for WBS elements

which are completed from a technical point of view; but still expects costs to
accrue from the commitments (purchase order) already made.

Closed (CLSD): Closed status is set for a work breakdown structure or WBS
element which has been completed from both logistic and an accounting
point of view.

Locked (LKD): Locked status is set to lock for individual business

transactions or all the data in a work breakdown structure or WBS element.

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 04 Operative Indicator – This is to be activated if it is required to plan the costs for respective WBS
Planning Element element.
This indicator will be defaulted through configuration at all WBS elements.

05 Operative Indicator – This is to be activated to allow the posting of the actual costs to respective
Account Assignment
WBS element.

This indicator will be defaulted through configuration at the lower most WBS
element.

06 Operative Indicator – Billing element allows posting Revenues to respective WBS element.
Billing Element
This indicator should be set for those WBS elements which are required to be
assigned to a sales order and to receive revenue posting.

Work Breakdown Structure consists of Network Header, Network Activities and Milestones which should be
designed to represent the relevant project steps.
Expectation from WBS structure:

1) To have a predefined structure for different types of work packages (e.g. Engineering, Construction,
Procurement, Installation and commissioning) which will be followed across TEL.
2) To reduce the time consumption in creating the separate project structure for the same project in different
departments within one company.

In the Work breakdown structure all the WBS elements will have unique identification no which will be followed
across the group.

There will be standard WBS elements for different work packages which can be copied partially or fully in the
operative project, e.g. in TEL some of the standard WBS elements are Engineering, Construction, Procurement,
Installation and commissioning. Or otherwise, New WBS elements can be created using three different methods
in SAP system.

It is always recommended:

a) To activate Planning element indicator to All WBS elements in the structure.

b) To activate Account assignment element to the lower most WBS element since it will be easier to
track and settle costs. Since it will be easy to operate with planned costs.

3.15. Network Header

A Network Header represents the flow of a project or of a task within a project. It is a group of activities arranged
in a relationship.

A Network Header comprises the following:

 Activities
 Activity elements

Network Header stores and controls the parameters applicable to the network activity process, such as scheduling
type, planning type.

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The following are some important settings for network header:

Item Description TEL Setting

01 Network Number The network number is generated from the system. This is also a unique
number that identifies the network.

Number of Network headers should be as minimal as possible in order to simplify the process.

As and when the activities are created, Network header will be automatically created by the system. Identification
number for a Network Header is automatically generated from the system. A new activity can be created and
assigned in an existing Network Header.

As the Network header is automatically generated, there is no additional work involved.

3.16. Network Activities and Milestones

Network activities are a series of tasks to be performed in a network in order to achieve the objective of a project.
It has a definite duration and is linked to one another via activity relationship.

Network activities can be divided into:

1) Internal activities – where the tasks are performed by own internal resources, such as engineers, welders
and fitters
2) External activities – where the tasks are performed by outside third parties.

To facilitate the tracking of the percentage of completion, both internal activities and external activities need to
report the activity progress periodically, The process of reporting activity progress, known as activity confirmation
in SAP terminology, together with the weight assigned to the activity, enable overall percentage of completion to
be calculated.

Activity confirmation will also trigger milestone billing; enable invoices to be sent out to the customer.

By releasing the internal or external activities, the system will automatically generate purchase requisitions and
kick start the procurement activities to procure the materials and services required.

Material components can only be assigned at the activity level. Once assigned and when the activity is released,
depending on the assignment category, a Purchase requisition (PR) will be generated and start the material
procurement or material issuing process.

A network consists of Activities, Activity elements and Relationships and graphically displays the relationships
dependent on time to illustrate the logical process chain.

The most important data describing an activity in the Project System is:

 Work center in which the activity is to be carried out

 Duration of the activity
 Start and finish dates for the activity
 Resources required to carry out the activity
 Texts and documents describing the activity
 If task is related to service provider, service activity will be maintained and relevant services from the
model services can be copied.

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  As per the sequence of the activities proper relationship will be maintained between the activities (FS, SS,
FF, and SF).

The following are important fields or settings related to network activities:

Internal activity

TEL will use internal activities to assign material components for material procurement, determine the amount
of work e.g. man-hours from other divisions/cost centers who is involved in the project.

Item Description TEL Setting

01 Activity number This identification number of the activity is generated by the system.

02 WBS element The parent WBS element identification no is entered.

External Activities

Project Team will plan and create procurement activities from external vendors (also referred to as subcontracting
of services to external vendors), which are required to carry out the projects. The development of external
processing occurs through purchasing via raising purchase requisition from Project.

Item Description TEL Setting

01 Purchasing Organization Please refer to the Purchasing Organization write-up

02 Purchasing Group Please refer to the Purchasing Groups write-up

03 Material Group Please refer to the Material Groups write-up

04 Plan Delivery Time This field will be set as mandatory for all external activities.

05 Reservation/Purchase The default setting for TEL for Customer Project is “From Release”. This means
Requisition that purchase requisition will be created once the activity is released.

Milestone

They are used to mark the transition between various phases in a project and are also used in the Project execution
phase in relation to the project progress and subsequent billing to the customer.

One of the important functions of the milestone in SAP Project System is that it is able to link to the sales order
billing plan in the Sales and Distribution module and hence automatically removes the billing block from billing
plan line item, once the milestone is reached. Following fields are important for milestones:

Item Description TEL Setting

01 Sales document date Always this field has to be marked when setting up the billing milestones.

02 Invoice Percentage Enter the progress billing percentage base on the contract.

03 Actual Date Entry in this field marks the completion of the milestone. After this date only
line items can be billed.

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Material component

Material components refer to the material required in order to carry out the project. Project system is integrated
with Materials Management whereby such identified project material is procured via purchase requisition or
reservation.

Item Description TEL Setting

01 Material Code Please refer to Materials Management Blueprints for more detail.

02 Item Category The following item categories are relevant to TEL.

L – Stock Item, where materials procured using this item category will be kept
in inventory. The material cost will not be charged to the project immediately
upon goods receipt (but will be shown as commitments), physical quantity is
managed in the inventory system. The stock will be managed as project stock
in the system.
Once the goods are consumed then only the cost will be posted to Project
system.
N – Non-Stock Item, where materials procured using this item category will be
charged to the project immediately upon good receipt, these materials will not
be kept in stock.

03 Requirement Date The default is set to “aligned to start date” when the requirement date is
automatically set to activity start date. However, this can be over written to
another date where applicable.

Expectations:

1) It is possible to drill down to the detailed level of structure using activity and activity elements.
2) Work packages which are created as WBS elements can further be broken down to activity and activity
elements. From execution perspective, it will help the project manager to monitor and control the project
progress efficiently and corrective measures can be taken to finish the project on time and within budget.

No restriction on the number of activity creation.

Identification numbers for the Network Activity and Activity element are automatically generated from the
system. Activity element will have the parent network header number and the activity no under which it is created.
Seeing the activity and activity element identification no, it can easily be determined under which network header
those are created.

As the Network Activity and activity element are automatically generated, there is no additional work involved.

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 4. Business Processes
4.1. Pre-bid Analysis
This process describes the steps involved in the pre-bid analysis steps.

A record is kept of the analysis which is done and the data is entered in the system. The following points will be
considered during the pre-bid analysis:

1. The Customer’s/End User’s Profile, Market Reputation, Financial status, etc.

2. The viability of the Project being quoted for like Financial Closure, Environment Clearance, Fuel Linkage,
etc.

3. Pre-Qualification criteria compliance

This will include both Technical Qualification (TQ) and Commercial Qualification (CQ). There should be
a field which should capture whether the qualifications have been met or not. If either of the two is not
met then there should be an option of entering whether there will be a “Consortium or JV”. There should
be another field to capture the “Consortium or JV” partner.

4. Scope of Supply, Services and Location

5. Safety, Security and other assessment of site

6. Terms and Conditions

In addition to above there can be some Project specific or unique issues which can be analyzed on case to case
basis.

The specific fields to be captured for Pre-bid analysis will be finalized and provided by TEL Core team. The field
“Customer Name” should be captured in a field as it will serve as a criteria in the selection screen for later use.

4.2. Creation of an Inquiry

Please refer SD BBP.

4.3. Project Bidding

This process describes the steps involved in the entire tender process from the receipt of the request for quotation
from the customer to the creation of sales quotation in the SAP system.

The bidding stage is where the TEL will review the customer’s requirements and respond to the request for
quotation. TEL will begin the process by creating a feasibility study for the necessary work scope detailed in the
contract. TEL will then do the cost estimate for the tender. This will then be used as a basis for pricing in the final
quotation to the customer.

A tender project will be created in the system. This tender project could be created using integration with MS
Projects. The creation of a project in SAP PS from MS Projects can only be done once. The project in SAP PS will
be used to capture necessary bidding costs and cost planning will be done on this project. This will later be used
for pricing in the final quote to the customer. Based on this tender project a sales quotation will be created.

20
The cost estimate which is done is done considering the taxes which will be applicable. This is not possible in
standard SAP. Going forward, in GST this calculation may become redundant. In case this calculation is still
required in GST, then a custom solution needs to be developed.

The costs incurred during the tendering stage will be booked to the tender project. These costs will then be settled
to the operative project.

In the above scenarios, wherever there needs to be communication between various departments as a pre-
requisite to performing the steps in the system, an email or a phone call should be made to the relevant persons
involved to carry out the necessary transactions in the system.

Project Bidding
Phase
Input

Start Receiving the Bid

Bidding Manager
Tendering/

Reviewing the
Tender
Project

Scheduling of Cost Planning of

Creation of Project Documentation Settlement Project Closure End
Project Project

Step Step Name Descriptive details of the activity Transaction

1. Receiving the Bid
2. Reviewing the Tender
3. Creation of Project
4. Scheduling of Project
Code
The tender process starts when a potential customer or Outside SAP
prospect gives TEL an invitation to bid and requests for a bid
proposal.
In response to the RFQ, TEL will execute several manual
processes that involve reviewing the client’s requirements in Outside SAP
the request for proposal document. In doing so, it can refer the
data entered in the system during pre-bid analysis.
A tender project will be created in the system to estimate the CJ20N
cost of the project.
The scheduling of the project should be done. CJ20N

5. Cost Planning of the Cost Planning of the project will be done. CJ20N
Project
6. Documentation Documentation of the project will be done. Outside SAP
7. Settlement If the tender is won then the costs incurred will be settled to the CJ88
operative project. Otherwise the costs will be settled to a P/L
account.
8. Project Closure The project is technically and financially closed. CJ20N

Note: The reasons for the win or loss of the tender needs to be captured in the system. Along with this data, the
L1 bidder, L2 bidder, etc. also needs to be captured in the system. To address this issue an enhancement will be
made at the Project Definition level or at the top WBS element level. Using this enhancement, all the data required
to be captured will be captured in the system.

21
4.4. Creation of Sales Quotation
Please refer SD BBP.

4.5. Creation of Sales Order (Acknowledgement)

Please refer SD BBP.

4.6. Project Processed for Customer Project

This process describes the steps involved in the entire project from the receipt of the contract from Client to its
completion in the SAP system. The project created for this scenario will be referred to as Customer Project.

It involves the various stages of the project as detailed below:

1. Project Setup

2. Project Scheduling

3. Project Costing

4. Project Budgeting

5. Project Execution

6. Project Closure

Project will be created in the system to capture all the data relevant for the Customer Project.

The costs incurred during the project will be settled to the Customer Project. These costs will then be settled to
the cost centers.

4.6.1. Project Setup for Customer Project

Project Setup phase is basically to devise a project structure with a set of work packages (Work Breakdown
Structure) in accordance with the scope of services mentioned in the awarded contract received from the client.
The structuring of a project is important since it has impact on budgeting and also on project settlement and
reporting. Project definition is the binding framework for all organizational elements within a project.

Project Definition: Project definition and project coding mask for Project Definition in TEL has been
standardized and harmonized. The project definition will have the project profile. The project profile contains
default values and parameters for processing the project, for example, which factory calendar is used for time
scheduling, organizational values such as controlling area, company code, profit centre and plant or which
settings are used for graphics that can be passed on to the WBS elements.

Work Breakdown Structure (WBS): Work Breakdown Structure consists of Network, Activities and
Milestones which should be designed to represent the relevant project steps.

Network and Activities:

A network represents the flow of a project or of a task within a project. It is a group of activities arranged in a
relationship. Various structural elements of a project and their interdependencies can be graphically displayed
through network structure.
During the life of a project, networks are used as a basis for planning, analysing, controlling and monitoring
schedules, dates and resources (such as manpower, machineries, materials, documents and drawings etc.,).

Milestones:

22
They are used to mark the transition between various phases in a project and are also used in the Project execution
phase in relation to the project progress and subsequent billing to the customer.

Project Setup for Customer Project

Phase
Input

Start
Sales

Creation of Sales
Order

Yes

Creation of a
Creation and Deletion of
Customer Project by
Project

WBS, Networks and End

copying the Tender
Activities as required
Project

Step Step Name Descriptive details of the activity Transaction

Code
1. Creation of Sales Sales Order will be created as specified in section 4.4. Will be done by
Order SD.
2. Creation of Customer The Customer project is created by copying the Tender Project. CJ20N
Project
3. Editing the Project The Customer project will be edited as per the scenario. WBS CJ20N
elements, networks and activities can be added or deleted as
per requirement.

23
4.6.2. Project Scheduling for Customer Project
Date planning needs to be done for projects. Considering the various interlinked activities among the different
work packages, overall scheduling of activities need to be carried out. Once the project is structured, this planning
needs to be done.

In Project System, there are several options for planning and managing dates and schedules (system updates
automatically the earliest start date and end date of all activities depending on backward / forward scheduling).
Forward scheduling is used when we know the start date of the first activity and the duration of the project, to
arrive at the end date of the project; whereas backward scheduling is used when we know the end date of the final
activity and the duration of the project and desire to arrive at the start date of the first activity. During scheduling,
system uses normal duration of internally processed and general cost activities, whereas for externally processed
and services activities the system uses the number of planned delivery days.

The type of date used for planning and scheduling can be decided based on the project requirements. System also
calculates required dates of planned material with reference to activity start date.

Various types of dates are used in projects and the same are described here below:

Basic and Forecast Dates: Basic dates are the dates that have a binding character for time scheduling. Forecast
dates are the dates that are expected based on more detailed planning or on changes that will occur during the
course of the project.

Scheduled Dates: Scheduled dates for networks (for both the internal and external activity) are the start and finish
dates of activities calculated by the system on scheduling based on the duration (days / Hours) and relationship
that have been entered.

Actual dates: Actual dates provide the information on the state of the project. Actual dates are entered in the
system manually through confirmations of various activities.

SAP PS supports four types of relationships between activities, which are:

1. Finish to Start (FS)

2. Finish to Finish (FF)

3. Start to Finish (SF)

4. Start to Start (SS)

With leads and lags, the system also supports the constraint. SAP PS supports Critical Path Method (CPM) for
project scheduling and calculates free float and total float.

There are various ways of carrying out project structuring, planning and scheduling in SAP PS system using
project builder, project planning board and structure planning. For example, project Gantt chart could be viewed
through project planning board.

24
4.6.3. Planning of Resources and Materials
The purpose of resource planning is to determine the resources usage to perform the activities planned in the
project structure.

Internal Processing: Internal processed activity contains a work center at which the work is to be carried out.
It contains the working time and the duration of the activity. The assignment of the work center to a cost center
provides an activity type and a rate so that planned costs can be calculated for the activity.

 Internal processed activities are created to plan the resources required for the work that is carried out
internally in a project.

 Relevant work center has to be assigned to the internal processed activity.

 The activity type is determined from the work centre. This is essential for the calculation of the cost for
an activity.

Work Centre:

 Work Centers represents a group of people with the same skill set which belong to the same cost center.
Individuals assigned to a cost center are linked to a corresponding Work Center so that accurate rates can
be determined for labour cost planning purposes. A work center is the place where an activity is carried
out or work output is produced.

 Work centers contain data for costing activities.

The integration of PS with CATS will be explored during HR discussion.

External Processing: Externally processed activities are used for procuring activities or services that are not
procured or available within the company. Purchase requisitions are generated for externally procured activities.

Service activities: Service activities are also used to procure services externally. Unlike externally processed
activities, this activity type enables to define service specifications and value limits for unplanned services
rendered by the service provider. Service processing which includes entry and acceptance of services performed)
is also carried out by the Purchasing Department.

When an external processing activity is created, a purchase requisition is also created that is processed further in
Purchasing. Data from Purchasing Department can be used for external processing (a purchasing info record, for
example, that contains prices and delivery times for external processing).

A service activity triggers a similar purchasing process, but it contains a hierarchy of planned services to be
purchased, and value limits for unplanned services. The goods receipt for services involves two steps: entering
the service and accepting the service.

Material: The purpose of material planning is to determine the materials required in a project by means of
networks. This component is also used to monitor the material requirements and costs in projects, to control the
flow of materials.

During project planning project team, will assign components to activities that are required to execute the work.
Material number, Item category, Quantity, Purchasing organization and Purchase group are entered.

Item Category: If planned material is stock item, item category as L is assigned and item category as N is
assigned for non-stock item. When the activity is released, a PR and a reservation will be generated for the
material.

25
Requirement for Non stock item: If the allocated material is identified as a non-stock item, the system
generates a purchase requisition for the material. This document authorizes the Purchasing Department to
procure the required quantity of non-stock item in a specified date.

Material stock management: Material components in networks can be managed in different stocks. The
following different types of stock can be used, for current scenarios:

 Plant stock: This material is managed in general stock. It is not assigned to any particular project object.

 Project Stock: The projects can have their own stock. The individual stock segments are assigned to
WBS elements.

26
4.6.4. Project Cost Planning for Customer Project
Project planning deals with the costs that are expected to incur during the execution of the project. Cost planning
has different aims for the Customer Project:

 It forms the basis for the budget allocation. Depending on this budget allocation, budget is assigned at
the various WBS levels.
 During project execution, TEL will use cost planning to monitor and control cost variances.

Cost planning deals with the costs that are expected to incur during the execution of the project.

In TEL, cost planning will be done using hierarchical cost planning method. Cost planning will be done for tender
project. This cost planning will be copied to the customer project where it can be changed if required.

Planning of Costs

Phase
Input

Project Setup

Planning of Costs for

Project

Hierarchical Cost
WBS elements Planning

Step Step Name Descriptive details of the activity Transaction

1. Cost Estimate of the
Customer Project.
2. Cost Planning
Code
The cost estimate of the customer project can be same as that Outside SAP
of the tender project. Once the planned cost is in place for the
project, the project manager will send that to the senior
management for approval.
But if the approval is not given then Project cost control
department will have to rework on the cost planning.
Under supervision of Project manager Project Cost control CJ40
department will do the Project cost planning in SAP System.

Hierarchical cost planning will be done in TEL. Access will only

be provided to the authorized personnel.

If rework needs to be done on the planned cost which is in place

for the project then the Project cost control department will
have to rework on the cost planning.

27
4.6.5. Project Budgeting for Customer Project
The Budget plan will be used during the execution of the project to control the commitments and actual costs in
the project. The budget is the approved cost limit for a project. It differs from project cost planning due to its
binding nature. Whereas the project costs need to be estimated as accurately as possible during the planning
phase, the funds are predetermined as a budget in the approval phase. The budget is the limit set by management
for project costs over a certain period of time.

The project system has the following types of budget:

 Original budget
Original budget is the budget that was allocated originally. From a time that you specify, this budget can
only be corrected using budget updates.

 Budget updates
Unforeseen events, additions to the planned, increase in vendor price, etc., may make budget updates
necessary. Normally this budget update requirement comes up as a result of availability check.

These are made in the following ways:

o Supplements – when there is a deficit additional budget can be allocated to the project.
o Returns – If project has more funds than it is required, the excess funds can be returned. Return
of excess fund in the project is made from the bottom-up (from a lower-level WBS element to the
next one up). Project team can only return budget that is distributable or available.
o Budget transfers – Budget can be transferred from one WBS to another WBS.
o Current budget – The current budget is derived from:
[Original Budget (+) Supplements (–) Returns (+/-) Transfer Postings = Current Budget]

Budget Planning for a project can be done in SAP system by

 Transferring the values from the cost planning as budget, in this case the planned cost acts as a baseline
for Project budget; or
 Entering the budgets directly into the WBS elements.

In order to keep number of item-wise budget check, the user will maintain the material rate in a WBS user field.
There will be an enhancement to restrict the ordering of a material at a rate greater than the rate in the specified
field against this WBS element.

Availability Control Tolerances:

System enables to monitor and control project costs using availability control. It enables project team to control
costs actively by issuing warnings and error messages when costs are incurred. Availability control checks the
current budget against the assigned value.
The released budget forms the basis for availability control. The system checks automatically the availability of
budget while creating PR / PO and if there are any actual cost booking as per the tolerances. There should be a
check at PO creation from PR. When the available budget is exhausted PO creation should not be allowed.

28
Project Budgeting

Phase
Input

Project Cost
Planning

Budget Supplement
Project

Change Budget Budget Allocation Project Budget Project Budget Supplement/

Budget Return
Release Execution Return/Transfer

Budget Transfer
Yes

No
Authority
Approval

Budget
Approved

Step Step Name Descriptive details of the activity Transaction

Code
1. Project Budget from Project planned cost derived from the cost planning acts as a N/A
Cost Planning baseline for project budget. It can directly be copied as a project
budget or can be increased (by adding contingency) or
decreased (for the approved budget) by a certain percentage to
reach the project budget.
2. Project Report All the project report from the cost planning acts as reference N/A
Reference for Budget.
3. Budget Allocation Allocation of Budget against the work packages are done in SAP CJ30
system by the Project Manager and Project Cost Control
Department. That is the original budget of the project.
4. Budget Approval Project manager will send the Budget structure to the senior Outside SAP
management for review and approval. Once approved then
requestor needs to be informed accordingly. But if it is rejected
the Project Cost Control department will have to rework on
that. This step will be done outside the system.

5. Budget Release After the budget approval, it is made available for the Project CJ32
Execution.
6. Budget Update If Budget needs to be increased /reduced then the Budget CJ37 – Budget
Update request needs to be approved. This process will be supplement
manual. Upon receiving the Budget approval for Budget CJ38 – Budget
updates the Project cost Control Department will update the Return
Budget in SAP System. CJ34 – Budget
Transfer

29
30
4.6.6. Project Execution for Customer Project
During the phase of project execution mainly following activities take place
1) Activities creation
2) Material allocation
3) Actual Cost posting
4) Activity Confirmation

1) Activity Creation: Activities are a series of tasks to be performed in a network in order to achieve the
objective of a project. It has a definite duration and is linked to one another via activity relationship.
2) Material Allocation: Material components refer to the material required in order carrying out the project.
Project system is integrated with Material Management by assigning materials to activities, whereby such
identified project material is procured via purchase requisition or reservation.

3) Actual Cost Posting: Actual cost will be booked through different business transactions such as receipt of
goods and service entry sheet acceptance.
4) Activity Confirmation: In order to execute the project, the project has to be released. It means before
giving confirmations to an operative project, the status of the project should be changed to REL (Release).
Release process in SAP indicates the change of project status. When an operative project is created, all WBS
elements will have CRTD status. When the status of the project is changed from CRTD (Created) to REL
(Release), the assigned WBS will also get released subsequently. The confirmation or actual cost booking is
possible only if project status is in released (REL) status. Project status has to be updated on a regular basis,
by confirming the activities. Internal labour cost is captured through activity confirmation.

Step Step Name Descriptive details of the activity Transaction

1. Availability of Project
Budget
2. Project Release
3. Check status of Project
4. Issue of Goods against
a project
5. Posting from FI
6. Transfer of cost from
Tender Project
7. Activity Confirmation
8. Processing of PR
Code
Project budget should be made available before the project N/A
manager starts the project execution.
Before starting execution of any project the project manager CJ20N
has to release the 1st level of WBS (Project) or the lower level
WBS stage wise in SAP system.
During execution, status of all the previous Cost, Budget and N/A
Project oriented procurement should be checked by using
reports.
Goods are issued from the Project stock against the activity in MIGO
a project.
At month end Direct/Indirect cost postings from finance to
project WBS is also possible. Such entries also form the project
expense and hence needs to be monitored closely.
All proposal costs captured in the Tender Project will be CJ88
transferred to the Operative project.
Upon completion of an activity the project operations team will CN25/ CJ20N
confirm that activity in SAP system. If any milestone is assigned
to that activity, then by performing the activity confirmation,
the system will populate the actual date in the milestone and
then the milestone billing process will be followed.
After the PR number is generated from project for the Will be done by
materials, for further procurement related process please refer MM.
MM BBP.

31
9. Processing of Service For service procurement after the PR number is generated from Will be done by
PR project for the service activity, for further procurement related MM.
process please refer MM BBP.

32
4.6.7. Billing for Lump Sum Contracts with Milestone Billing
This scenario describes the process where the customer and TEL have agreed on the lump sum amount for
execution of specific work dictated in the contract and a billing plan with dates that are linked to milestones on
the project indicating the progress of work. As an example, the contract might have terms which say that 10% of
the entire contract value is to be paid when the contract is signed and 20% once mobilization is complete and
another 30% when engineering is complete and so on till the remaining value is billed once the entire project is
complete. The billing plan is made up of items that are tied to the milestones that specify a billing date and billing
amount. When the item in the billing plan becomes due for billing, it is automatically included in the billing due
list. This billing due list will be viewed periodically by the billing department to see which contract items are due
for billing.

Billing for Lump Sum Contracts with Milestone Billing

Phase
Input

Start
Project

Milestone is
confirmed

Billing block will be

Sales

automatically Creation of Invoice

removed
Finance

Payment End

Step Step Name Descriptive details of the activity Transaction

1. Confirm the Milestone
2. Billing block removed
in the sales order
3. Creation of Invoice
4. Payment
Code
When a specific scope of work is complete and the milestone is CJ20N
reached, billing for this milestone can be initiated by
confirming the milestone in the project.
When the milestone is confirmed, the billing block for that VA02
milestone in the sales order will be removed automatically to
allow for billing.
The invoice will be created with reference to delivery note VF01
which will be created for the sales order for the milestone
details like the amount to be billed.
Incoming payment process is further defined in the Finance
BBP.

33
34
4.6.8. Billing for Cost Plus or Time and Material Billing
This scenario describes the process where the customer is invoiced for specific materials and services based on
the cost incurred and a percentage mark-up. Prices of specific services are not always defined as fixed prices on
the contract and in these cases; services cannot be calculated accurately and fixed during the contract proposal
phase. To handle these situations, resource-related billing functionality is used to create a billing request and used
as the basis for creating the invoice. SAP will accumulate all the costs incurred for the service based on the
materials and manpower consumed for that specific service. This will include purchase order costs from external
vendors as well. A billing request is then created which will allow specific mark-up conditions to be added
manually to arrive at the final price that should be charged to the customer.

Billing for Cost Plus or Time and Material Billing

Phase
Input

Project
Execution
Integration
SD-PS

Resource Related Billing is executed

and a Billing Request is cretaed
Authority
Approval

Billing amount
Creation of Invoice
approved?
Finance

Incoming
Payment
Process

Step Step Name Descriptive details of the activity Transaction

Code
1. Project Execution During project execution cost is incurred for manpower for N/A
services performed. These costs will be accumulated in the
billing request to form the basis of the mark-up value that will
be billed to the customer.
2. Project Execution N/A
During the project execution costs are incurred via
procurement from external vendors. These costs will be

35
 accumulated in the billing request to form the basis of the
mark-up value that will be billed to the customer.

3. Project Execution Any internal labour costs that are posted to the project will be N/A
captured and used as a basis for charging manpower costs to
the customer.
4. Resource – Related DP91
Resource-related billing is executed in the system to capture all
Billing Request
the costs incurred on the project and create a billing request.
In the billing request, the necessary percentage mark-ups for
the different costs incurred can be entered manually and saved.
A billing block is automatically set on the billing request so that
the prices can be reviewed before creating the invoice.

5. Approval of Billing Seek necessary approvals for the billing amounts. Outside SAP
amount
6. Creation of Invoice When the prices on the billing request have been approved and VF01/VF04
the billing block is removed, the invoice can be created with
reference to the billing request. When creating the invoice, the
values in the billing request will be copied into the invoice. This
invoice can be printed and sent to the customer.
7. Payment Incoming payment process is further defined in the Finance
BBP. The revenues which are posted are considered in Revenue
Recognition.

36
4.6.9. Period End Closing and Financial Accounting for Projects
As per the standard rule of project, the cost needs to be settled before it is closed. This is derived from the basic
concept that projects are dynamic and have a definite start and end. Therefore costs should finally be settled to
some other business object. This is part of Finance department month end activity. Two steps are crucial here-
1) Project Settlement
2) Project Closure

Note: A User field "Completion Certificate" should be created to capture the date of the “Completion Certificate”.
Completion Certificate should be maintained as User Field. Due to defect liability TECO and CLSD cannot be done
until at a later time. So the “Completion Certificate” fields needs to be maintained.

1) Project Settlement:

Costs are collected in the project temporarily. They are settled to one or more receivers as part of period-end
process. A settlement rule is required to perform settlement and contains distribution rules and settlement
parameters for a sender object.

Carry out Project Settlement for Customer project:

There can be two scenarios:

1) If the account assignment WBS element is a billing element, then settlement is not required.
2) If the account assignment WBS element is not the billing element and any superior WBS element is
the billing element, then the cost needs to be settled from the below level WBS to the higher level
WBS.

2) Project closure:

The project closing will occur when the following conditions are met:

 Outstanding Purchase Orders are delivered and no more material and service deliveries are expected or
kept in pending.
 All the unused materials of the project have to be identified. The unused project inventory has to be
transferred to a specified storage location based on Management’s decision.
 The unused budget has to be returned to top level WBS element. The final settlement has to be performed
and all costs collected during the project life-cycle are expensed off. Any unused WBS elements will be
deleted during the project execution.
 Upon meeting all the project deliverables, the project status TECO (technically closed) will be assigned
by the project team. This process stops any open purchase requisitions (not released for purchase order)
and material reservations. It also cancels the “remaining work” for the time confirmations so the project
is 100% complete from time perspective, while it can collect the outstanding invoices/journal vouchers
from the open Purchased Orders.

If all of the above conditions are met, then the Project team closes the project and will be done by setting the
system status to CLSD (closed) at the project level.

Step Step Name Descriptive details of the activity Transaction

Code
1. System status set to Before the month end closing, the project team will have to lock CJ20N
‘TECO’. all operations in SAP system by changing the status of the
project to Technically Completed (TECO).

37
2. Create Settlement CJ20N
Settlement rule will be created in SAP system to perform
Rule
settlement, where they need to mention the category,
settlement receiver, settlement type etc.

3. Settlement Settlement will then be executed in the month end (period end CJ88
closing) in SAP system. At the end of the project, final
settlement will be executed in SAP system to transfer all the
actual cost.
4. Close the project. Set Verification will be done whether all the tasks have been CJ20N
the status to ‘CLSD’. performed as mentioned in the scope of work in the contract. If
it is done according to the scope of work, then the project team
will close the project in SAP system by changing the status of
the project as “CLSD” (Closed).
If the tasks are not completed according to the scope of work
mentioned in the contract, then the Project operations team
will have to execute the pending works in order to complete the
project.

38
 5. Reports
5.1. Commonly used Standard Reports
The Project Information System is flexible and comprehensive that can be used to monitor and control the project
data of individual projects or multiple projects within TEL organization. The system includes overview reports
and reports offering various degrees of detail.
The Project Information System is designed to meet the needs of both higher management and project
management personnel. Depending on the objects, functions, procedures and scenarios used, a wide range of data
is generated while the project is being executed.

Listed below are some of the standard SAP reports which are commonly used. Usually the standard reports can
be downloaded to MS Excel, but there are few exceptions. The Project System includes the following information
systems in order to fulfill the requirements:
No. Report type Report Description SAP Transaction
Code
1 Project Structure Structure Overview CN41/CN41N
Report Project Definitions CN42/CN42N
WBS Elements CN43/CN43N
Networks CN46/CN46N
Activities CN47/CN47N
2 Cost Plan Report Plan/Actual/Variance S_ALR_87013532
Plan/Actual/Commitment/Rem. Plan/Assigned S_ALR_87013533
Commitment Detail S_ALR_87013537
Actual Costs for each month (current fiscal year) S_ALR_87100185
Planned Costs for each month (current fiscal year) S_ALR_87100186
Commitments for each month (current fiscal year) S_ALR_87100187
Cost Element Actual/Comm/Total/Plan in COArCrcy S_ALR_87013542
Based Report Actual/Plan/Variance Absolute/Variance % S_ALR_87013543
Actual/Plan Comparison: Periods S_ALR_87013544
3 Budget Report Budget/Actual/Variance S_ALR_87013557
Budget/Actual/Commitment/Rem Plan/Assigned S_ALR_87013558
Budget/Distributed/Plan/Distributed S_ALR_87013559
Budget Updates S_ALR_87013560

4 Procurement Project Oriented Procurement CNMM

Related Report Purchase Requisitions for Project ME5J
Purchase Orders for Project ME2J
Material Component Overview CN52N
Valuated Project stock MBBS
Stock Overview MMBE
List of Reservations MB25
Service PO overview ME2S
5 Confirmation Confirmations Overview CN48N
Report
6 All line item Project Commitment line items CJI5
report Actual Cost line Items for Projects CJI3

39
Project Actual Payment Line Items CJIA

40
5.2. Custom Reports Required
The reports listed below are required in TEL and so will be custom developed.

Sl. No. Topic Requirement Fulfilled by

1 Job Cost Report A report to monitor the job cost is Custom Development
required. This report will be used for
monitoring the project.
2 Pre-Bid Analysis It should be possible to display the data Custom Development
Report captured during the pre-bid analysis.
3 Win/Loss This report will be required for Tender Custom Development
Analysis Report projects. This report will display data
concerning the reasons for Win/Loss of a
tender. It should be possible to get this
report sector-wise.
4 Customer, Sector Report which will display the revenues Custom Development
and Discipline and expenditures specific to a Customer,
wise Report Sector and Discipline. The Customer and
Sector will be captured in a field at
Project Definition level.
5 Work Progress A work progress report is required. Custom Development will be done
Report based on feasibility.
6 Daily Progress A daily progress report is required. Custom Development will be done
Report based on feasibility.
7 RA Bill An RA bill is required from the system. Custom Development will be done
based on feasibility.

41
Appendix A. - Appendices
A.1. Appendix – Custom Requirements
Sl. No. Topic Requirement Fulfilled by
1 Pre-Bid Analysis A custom screen is required to capture all Custom Development
the data required for pre-bid analysis.
2 Email to Project System should stop procurement when Custom development needs to be
Manager when 100% of the budget will be consumed. done. Dependency on mail server
100% of the Email to assigned project manager be configuration and workflow.
project budget is triggered.
consumed.
3 Win/Loss data for Refer section 4.3. Enhancement will be done to
Project Bidding capture this data.

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A.2. Appendix – Gap List
Sl. No. Topic Requirement Fulfilled by
1 Settlement of In the present scenario, revenues will be Dependency on Implementation of
Customer Project posted to the customer project. Going COPA
forward, when COPA is implemented
settlement will be done to the
Profitability segment.
2 Provident Fund of Provident Fund of labour (internal) has This will be outside SAP.
labour to be submitted for project.
3 PO PO Acknowledgement from the Vendor This will be outside SAP.
Acknowledgement to be recorded in the system according to
from Vendor which the delivery date should be
changed.

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A.3. Appendix - Review Points and Action Items
Sr. Review Comments Received
No.
1 Project Type 'Composite' is required.
2 Integration with HCM. The availability of
particular resources to be ensured.
3 Reports of Budget versus Actual is required.
4 Project Coding Mask would be defined in order
to address 9 levels of WBS as discussed.
5 Target versus actual with respect to budget is
required.
6 Target versus actual with respect to sales is
required.
7 Budgeting needs to be done at quantity and rate
level.
8 Payment processing against contractor billing to
have checks for statutory documents clearance
of sub-contractors.
9 Payment Advice to contractors should contain
all categories of deductions at the time of
payment.
10 Spare Parts to be linked to Equipments.
11 Scanned copy of documents to be uploaded.
12 Provisional Bill / Draft Bill should be generated
which should have no Financial implications.
The provisional bill should be checked and
corrected to generate the final bill which should
have financial implications.
13 Actual receipt from Customer versus payment to
Contractor is required.
14 Purchase price upload from historical PO
required.
15 Store the historical data of job cost report date-
wise.
Action Items
Project Type 'Composite' added in section 3.8.
The employees will book time. It will be possible
to run a report to check which employee has
booked time against which object.
Standard reports will be used to address this.
Section 3.6 has been changed in order to
incorporate this.
Budget will be the budget amount which will be
entered in CJ30. Actual will be the actual values
posted on the WBS. Standard reports will be
used to compare these.
Hierarchical Invoice Planning to be used to
enter the target sales values. Actual sales values
will be entered against WBS. Standard reports
will be used to compare these.
Budget amount will be entered against each
WBS created for a specific material. The rate at
which the material is to be procured is to be
specified against the particular WBS. There
should be a constraint in the rate which can be
entered in the purchase order for that item
based on the rate entered in the WBS.
Custom development required.
Deduction categories to be done through
withholding tax concept.
To be taken care in PM module.
DMS server is required.
There are 2 options to address this scenario.
Either cancel the invoice and issue a fresh
invoice or provide a provisional invoice
(proforma invoice in SAP).
The actual receipt from Customer will be
available from the Sales Invoices and the
Payment to Contrator will be available from the
Vendor Payments.
Purchase register will be available in the system
from which one can see last purchase prices.
The report can be extracted to excel and then
stored date-wise.
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A.4. Gap List (for Review Points)
Sr. No. Gap
1 In order to ensure the availability of particular resources a report needs to be run. There will be no
pop-up.
2 Hierarchical Invoice Planning can be done at WBS level. So, the structure of the project will play
an integral role.
3 Consumption will be done at moving average price.
4 Budget can be entered only at WBS level. At this level, the budget amount can be entered. The
material-wise rate and quantity can be stored in a custom field for each WBS. The budget amount
will not change on changing quantity or rate. This functionality is available in SAP PLM.

5 Prospective Sales Price versus Estimated Cost price is required for Pre-Bid. It is not possible to
address this requirement through SAP PS.
6 It will be possible to store the historical data of the job cost report by downloading it in excel. It
will however not be possible to store the job cost report date-wise in SAP.

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A.5. Appendix –Change Management
Change Management Impacted Impact Risk
Function /Area (High/ (if change management not successful)
Medium/
Low)
Dedicated Master Data team Senior High Master data is backbone of ERP system.
need to be set up Management Improper maintenance can cause the
failure of the entire ERP system

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Appendix B. - Outstanding Issues
Sl No Outstanding Topic
1. Feasibility of the creation of an inquiry for each tender has to be discussed.

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