abg one chemical im ps v 2.0

BBP Document

ADITYA BIRLA GROUP ONE CHEMICAL BUSINESS BLUE PRINT

Project System

Business Blueprint (DRAFT)

Submitted to

ADITYA BIRLA GROUP ONE CHEMICAL

By

Wipro LimitedMARCH 2013Version 2.0

TABLE OF CONTENTS:

Business Case Background2Major Process flow chart2Prerequisites for this process, (if any)4Major Process7Sub Process Investment Management Structure7Sub Process Project Structure Planning13Sub Process Cost Planning26Sub Process Project Budgeting29Sub Process Material Planning33Sub Process Service Procurement36Sub Process Activity Planning38Sub Process Scheduling39Sub Process Project Execution42Sub Process Period End Activity and Project Closure45Proposed Business Processes55Standard Reports available with the proposed process59Special Organization Considerations60Changes to Existing Organization60Improvements to existing business processes60Listing of Functional Deficits60Approaches to covering Functional Deficits60System Configuration Considerations60Interface Considerations60Any document / output printed for this business process61Development requirements for business process61Sign- Off /Approvals61

Business Case BackgroundThis Business process document describes about the process of internal project with investment management, Structural Planning, Cost Planning, Budgeting, Project Execution, Period End Activities and Project Closure.Internal project is usually a one-time activity. ABG Chemical division having following three types of internally finance projects:- Internally financed projects Capital investment projects (CAPEX) Major maintenance projects Normal maintenance projectsThe Project System is the focal point of internal project processing in R/3. It links up the following R/3 functions to create an integrated project management system: MM Materials Management, Services CO Internal Accounting FI Accounting PM Maintenance Order ProcessingProcess FlowThe SAP Project System enables the successful management of Projects with regard to: Complete integration with other modules and audit trails, A fully integrated cost planning and scheduling system, encompassing products / tooling / equipment / infrastructure / testing and validation scenarios, Standardization of processes and templates, Timely and accurate project data and information, Budget control at various levels is possible. Usually this is done at the WBS element level. Users are free to define WBS elements at any level they desire so.

It enables the control and optimization of the entire development process of projects and efficiently manages project structures, schedules and costs.

Major Process flow chart

Major IM PS Flow Chart for Capex

Major IM PS Flow Chart for Major & Normal Maintenance

Prerequisites for this process Ensure all Master data related to Project, Budget etc. are maintained All the Project System settings need to be maintained in the IMG. Settlement Rule is maintained. Ensure all Master data related to Materials etc are maintained. Material should be maintained in purchasing for External procurement Material pricing procedure is attached to vendor. Master Inspection Characteristics need to be created for the finished product and other QM settings need to be maintained. All the Maintenance Order settings need to be maintained in the IMG. All relevant MM, QM, FICO settings need to be maintained in the IMG

Business Blue Print Document

Date : 17/11/2012

Major Process Internal Projects

Sub Process Investment Management StructureInternal projects with Investment Management and Project Structural Planning, Scheduling, Material Planning, Cost Planning, Budgeting, Project Execution, Period End Activities and Project Closure.

Process Id: IM-PS-001-00

Process applicability

This process is focusing on planning of different Project components for investment management structure.

VersionChangePrepared ByDate

1.0Initial documentVipul J. Mehta17/11/2012

Investment Management Overview

The Investment Management (IM) Module provides functions to support the planning, investment, and financing processes for: Capital investments, such as the acquisition of fixed assets as the result of-house production or purchase Investments in research and development Maintenance programs The investment program and the appropriation request are objects that originate in the IM component. In order to represent the measure, the IM component uses work breakdown structure (WBS) elements from the Project System (PS). The integration with Asset Accounting enables you to easily capitalize the costs of internal orders and WBS elements that require capitalization to a fixed asset. Costs that do not require capitalization can be settled to cost accounting. You can post acquisitions to a measure in the Logistics components of the R/3 System.

The Investment Management component fulfils the following functions:

Program Program Structure Program Planning Program Budgeting Information System

The Investment Programs component provides functions for planning and monitoring of investment budgets encompassing many different measures, on a cyclical basis, of an entire corporate group. Measures (WBS or Internal Order) and appropriation requests can be assigned to investment program positions. By rolling plan values in the investment program, these measures and appropriation requests are integrated in the comprehensive investment planning process.In one investment program, all measures (orders or WBS elements) can be managed, to which both of the following apply: They belong to one controlling area. Their currency and fiscal year variant are the same as the currency and fiscal year variant in the program definition.Investment Program Definition: To initiate investment Program, a Program Definition is required to create having approval year & program Type. The commonly required data will be flows from program definition to Program position.Program Position: provides the hierarchical structure to Investment Program.Planning & Budgeting in Investment Program: Within the hierarchy of the investment program (Program Position), it is possible to plan the costs for capital investments from the bottom up, and to budget from the top down. First, assign individual investment measures only to the lowest positions in the hierarchy (also called end nodes). The measures that are allowed at this time are internal orders, WBS elements, and maintenance orders.Approval Year in Investment Program: A specific fiscal year as the approval year for a program can be entered in Investment Program Definition. Approval year means that the program has values that were approved in this year (but not necessarily for this year only).When approved budgets or measures are not used or carried out, for instance, because they have been put off until sometime in the future, then:Budget can be return to the investment program (refer to Supplements and Returns). In that case e measure required to budget again in a later approval year. Distributed budget can be kept on the measure. In that case distribution of budget to the years within the measure will be required.In ABG One Chemical the Program type can be lie as given belowProgram TypeDescription

ABG1Investment Program Type for ABG One Chemical

In RSRC the Program Position can be lie as given belowProgram Position (2nd Level)Description

RehlaRehla Investment

RenukootRenukoot Investment

NagdaNagda Investment

VeravalVeraval Investment

VilayatVilayat Investment

The Logic for code will be given below- A single Program will be created having description ABG1 which will be copied to next fiscal year, after End of the Year. Top Level Program Position will be having same description as Program name. 2nd level Program position will be Rehla, Renukoot, Nagda, Veraval & Vilayat to track & control the budget for Capital Investment & Expenses respectively. 3rd level Program Position will be naming CAPEX, Major & Normal maintenance. 4th Level will be project.

All locations IM Structure as follows.

Sub ProcessProject Structural Planning



This process is focusing on planning of different Project components for project structure.



Project StructuringThis process will describe standard methodology to be used to create project structure and significance of each object. Process will be providing guidelines to formulate project template for unique business flow in Project Systems.

Receiving of Project structure Creation of WBSCreation of networks Creation of activitiesScheduling / critical pathProject executionCost planningBudget planning

Project structure shall be expanded based on project scope with the help of various PS objects i.e. WBS element, activities, material components, documents etc. WBS elements which are required for cost planning at WBS level, planning indicator for WBS should be marked. WBS elements which are require for actual cost posting, account assign indicator should be marked.Operative indicators comprises of the following three fields: Planning element Account Assignment Element

ABG One Chemical will follow -

To activate Planning element indicator to All WBS elements in the structure. To activate account assignment indicator to all WBSE elements in the structure.

If any object gets defaulted from the standard template and is not needed in the project, such objects shall be set as marked for deletion flag by using PS standard functionality.Project responsible person for various WBS elements and project team shall be defined for the project. Project team defined at higher level WBS can be used for lower level WBS as well. However, if defined for lower level, it cannot be used for higher level WBS.

Project Definition

A clearly and unambiguously structured project is the basis for its planning, monitoring, control and success. It forms the basis for organization and coordination in the project. It shows the amount of work, the time required, and the costs involved in the project.

To be able to carry out a project in its entirety, the project goals (WBS Element, start and finish date etc) must be precisely described and the project activities to be carried out must be structured. Following are maintained while defining a Project.

The project definition is the binding framework for all organizational elements within a project. Define overall project start and finish dates (Start and finish may change / vary depends upon the project status.) Determine the Project Objectives (Responsible person, text, etc)

ABG Chemical division as following types of projects

Project Coding Mask

Project coding masks are used for editing the project number. Masks help to display complex project numbers. They can also be used to indicate the position of a WBS element in the project hierarchy.

ABG One Chemical Scenario:-

1) Each Project has its own coding mask. 2) Project structuring will be in various hierarchy levels with external Masking/numbering.3) Level - I Project Level. This level WBSE will always same as Project definition. Validation rule will be defined and defaulted in the project profile. System validates the input and forbids any other input for WBSE numbering.4) Only one WBSE will be allowed at Level 1.5) Business-Plant and project type wise coding is different. Please go through Coding logic excel sheet.

Project Coding Mask for Capex Project Veraval

Capex Project number VRCC-1-1301-VISP-M-M

VRVeravalC/R/PCaustic / Reyon / PowerCCapex1Expansion13Fiscal Year01Sequence NumberVISPSectionMMechanical DepartmentMMaterialIn Settlement cost will carry to Top WBS and from Top WBS to AUC will settle. In Asset management Final settlement will happen.

Project Coding Mask for Capex Project Nagda

Capex Project number NADC-MEM-1301-M-001

NADNagda

CCapex

MEMMembrane, SPB etc.

13Year 2013

01Sequential Number

MMechanical

001Equipment 1

Project Coding Mask for Capex Project Rehla

Capex Project number REHC-MEM-1301-M-001

REHRehla

CCapex


13Year 2013

01Sequential Number

MMechanical

001Equipment 1

Project Coding Mask for Capex Project Renukoot

Capex Project number REKC-MEM-1301-M-001

REKRenukoot

CCapex


13Year 2013

01Sequential No.

MMechanical

001Equipment 1

Capex Project

ABG Management provides funds for new investment. ABG team creates a project and track till funds consume in project. After consumed all funds settlement is executing and amount settled at fixed Asset. In Capex project we will maintain overall budget profile so that every year no need to carry-forward budget.

Veraval Reyon Capex project structure is follows.

Veraval Caustic Capex project structure is follows.

Veraval Power Capex project structure is follows.

Project Coding Mask for Major maintenance Project Veraval Caustic

Major Maintenance Project number VRCM-1301-M-2210-001

VRVeraval

CCaustic

MMajor Maintenance

13Fiscal Year

01Sequential Number

2201Section, mapped with existing cost center

001Equipment

Project Coding Mask for Major maintenance Project Veraval Power

Major Maintenance Project number VRPM-1301-M-2210-001

VRVeraval

PPower

MMajor Maintenance

13Fiscal Year

01Sequential Number


001Equipment

Project Coding Mask for Major maintenance Project Veraval Reyon

Major Maintenance Project number VRRM-1301-M-2210-01-001

VRVeraval

RReyon

MMajor Maintenance

13Fiscal Year

01Sequential Number


01Equipment

001Sub Equipment

Project Coding Mask for Major maintenance Project Nagda

Major Maintenance Project number NADM-1301-MEM-MEC-111

NADNagda

MMajor Maintenance

13Financial Year

01Sequential Number

MEMMembrane, SBP plant etc..

MECDepartment like Electrical, Mechanical etc..

111Equipment

Project Coding Mask for Major maintenance Project Rehla

Major Maintenance Project number REHM-1301-MEM-MEC-111

REHRehla

MMajor Maintenance

13Financial Year

01Sequential Number

MEMMembrane, SBP etc..

MECMechanical, Electrical etc..

111Equipment

Project Coding Mask for Major maintenance Project Renukoot

Major Maintenance Project number REKM-1301-MEM-MEC-111

REKRenukoot

MMajor Maintenance

CSCaustic, Power Plant

13Financial Year

01Sequential Number



111Equipment

Major Project

ABG Management provides funds for major equipment cost / major investment. ABG team creates a project and track funds year wise in project. After periodic interval settlement is executing and amount settled at cost centre.

Veraval Reyon Major Maintenance project structure is as follows.

Veraval Caustic Major Maintenance project structure is as follows.

Veraval Power Major Maintenance project structure is as follows.

Project Coding Mask for Normal maintenance Project Veraval

Normal Maintenance Project number VRCN-1301-M-1111

VRVeraval

C/R/PCaustic / Reyon / Power

13Fiscal Year

01Sequential Number

MMechanical Department


Project Coding Mask for Normal maintenance Project Nagda

Normal Maintenance Project number NADN-1301-MEM-MEC-BRIN

NADNagda

NNormal Maintenance

13Financial Year

01Sequential Number



BRINSection, mapped with existing cost center

Project Coding Mask for Normal maintenance Project Rehla

Normal Maintenance Project number REHN-1301-MEM-MEC-BRIN

REHRehla

NNormal Maintenance

13Financial Year

01Sequential Number


MECMechanical, electrical etc..


Project Coding Mask for Normal maintenance Project Renukoot

Normal Maintenance Project number REKN-1301-MEM-MEC-BRIN

REKRenukoot

NNormal Maintenance

13Financial Year

01Sequential Number


MECMechanical, electrical etc..


Normal Project

ABG Management provides funds for capture repair maintenance. ABG team creates a project and track funds year wise in project. After periodic interval settlement is executing and amount settled at cost center.

All locations Normal Maintenance project structure is as follows.

Proposed solutions: - In PS we will create Minimax as a project and create 1 WBS. MRP will execute on that WBS and system generates automatic PR. At the time of GR for that material that time that material will become project stock. Whenever any department request for minimax material that time store will do goods movement from minimax WBS to requested WBS. Stock will move minimax WBS to requested WBS. But when we requested WBS use material that time only requested WBS stock will consume from project.

Sub ProcessCost Planning



This process is focusing on planning of different Project components for project planning.



Project Cost PlanningCost planning deals with the costs that are expected to be incurred in connection with the project as it is executed.

Cost planning is an Instrument for drawing up all costs which are expected to be incurred during the course of an activity.These costs can be incurred directly to a: WBS (Project) Network/ActivityThere are three basic types of planning: Rough planning (also called "structure-oriented planning"): An estimate is made of the costs that will be incurred for an order or for an element of a work breakdown structure (WBS element). Cost element planning Unit costingCost planning has different aims at different stages of the project. At the concept and rough planning stage, cost planning acts as the base for an initial cost estimate. At the approval stage, it forms the basis for the budget allocation.During project execution, cost planning can be used to monitor and control cost variances. Cost planning in the Project System is affected by means of the WBS and networks.The WBS includes various planning methods in the WBS element, which can be selected depending on the state of the project and the degree of detail required. These methods can be used alternatively or together. This is decided on the basis of the information available. For example, unit costing or cost element planning can be used for particular partial tasks and cost-element-independent hierarchy planning used to estimate the costs for the rest.Hierarchy planning is the simplest type of cost planning. Planned values are entered hierarchically, and displayed in the same way.In the network, the emphasis is on date planning not on costs. If materials are attached the costs can be calculated.Internally processed activities are used to plan work that is required to be performed internally. The user can specify: required work time duration and dates of activities activity type (if desired, from the work Centre )Planned costs for the general costs activity (primary costs) are maintained in the following ways: As the overall value for a cost element Using unit costing

Sub ProcessProject Budgeting



This process is focusing on planning of different Project components for project budgeting.



Project BudgetingThe budget is the approved cost structure for a project, and differs from the cost plan in that it is binding. Having estimated the costs as accurately as possible using the different tools during the planning phase, you then prescribe the funds available for your order in the form of a budget. The budget is the device by which management approves the expected development of order costs over a given timeframe.

Once the project is finalized a detailed budgeting exercise is done for all types of projects. The work packages (WBS elements) are further detailed and individual activities are prepared.Material for construction, operating supply, services, and assets are planned for and procured as per requirement in each of the phases of the project.A detailed cost estimate of the project is arrived at and necessary approvals are taken at all levels. After this approval is done, all purchase orders that are raised against this project is subjected to budget availability control.If required, additional budget may be supplemented into the original budget.Budget allocation for a project or an order is generally preceded by a cost plan that provides the initial basis for determination and allocation of the budget. As the system enables detailed planning of project or order costs, it is relatively simple to transfer the planned values as budget.The following different budget types exist in the project system:Original budget: The original budget is the originally allocated budget. After a point in time that you specify, this budget can only be corrected using budget updates.Budget Updates: Unforeseen events, additional requirements, for example, price rises for external activities, and so on. This may mean you need to update the original budget, in the form of: Supplements, Returns, TransfersCurrent budget: The current budget is calculated as follows:Current budget =Original budget + Supplements- Returns +/- Transfers

Budget Check and update: Budget Update: Unforeseen events, additions to the plans, vendor price increase, and so on may make budget updates necessary. Normally this budget update requirement comes up as a result of availability check or thro Project Analysis (Project Reports).Supplement transferringBudget from one WBS Element to another WBS Element within the same project only, Additional budget can be also added to the existing budget after taking the approval from Management if the funds are not sufficient. (Add supplement approval process is outside SAP system)

ReturnsAny Excess amount in the particular project after its completion can be returned to the management and same can be used for the different projects based on the requirements. (Returning budget approval process is outside SAP system)

ABG One Chemical Scenario:- ABG all locations are maintaining budgets for following projects. Capital investment projects (CAPEX) Major maintenance projects Normal maintenance projects Minimax projectsPurchasing Budget:- At the time of purchasing material, system is checking budget and control PR and PO process is call purchasing budget. Nagda, Rehla and Renukoot will use purchasing budget at the time of CAPEX and major maintenance project. Veraval will use purchasing budget at the time of CAPEX, Major and Normal maintenance project.

Consumption Budget:-At the time of material goods Issue, system is checking budget is call consumption budget. Nagda, Rehla and Renukoot will use consumption budget at the time of Normal maintenance project.

Budget will be check on all the projects during following scenario.

Material purchase requisition, Service purchase order, Service entry sheets Standard Purchase order, Domestic Purchase Order Import Purchase Order Advance / Down payment against PO Goods receipt, Goods issue, Maintenance Order Financial entry against WBS.

Availability Control:

These components enable you to monitor and control project costs. The project manager can use availability control to call up an overview of the assigned funds and see which type they are. Availability control enables you to control costs actively by issuing warnings and error messages when costs are incurred.Purchase orders or purchase requisitions lead to financial commitments with varying degrees of obligation. Commitments reserve money for costs that will be incurred at a future date.

Sub ProcessMaterial Planning






Project Material PlanningMaterial forms a link from a project to Materials Management (Purchasing and InventoryManagement). Via the assignment of material components to network activities, you determine the raw materials that must be reserved or ordered for a project and trigger procurement via purchasing.

Depending on your type of project, there are various ways of assigning material components. In projects that have few material requirements, you can assign the network activities material components individually. You can assign a material with a BOM to an activity and then explode the BOM (level by level). If you work with BOMs that contain a large number of components or that are still been built up, you can expect to make several changes to the BOM during the project. You can minimize the amount of work involved in making these changes in the project by using BOM transfer. Here you create logical connections between BOM items and the network activities. To update the changes in the BOM in the project, you only have to execute the assignment again.

Materials (individual or material BOM items) are assigned to activities for external procurement and / or in-house plan order/production process. Item Categories: N (Non stock item) & L (stock item, valuated stock) are used Material with Item category N is used if the materials are to be procured directly for the network consumption. For material with Item category L, reservation is generated for WBS element on material assignment to activity. Materials readily available in stock will be diverted to maintenance order. PR will be created for materials not readily available in stock.Procurement type in use: For Item category N: Purchase requisition for network For Item category L: Reservation for WBS element

Material PRImport Purchase Order with Excise

At all locations of ABG Chemicals the Import purchase order is generally created only when the goods reach the plant and the GRN is ready to be done. All the duties are entered in the PO and then the GR is done.

Tax Code is mandatory for tax calculation, if tax code is not entered in line item, system will not calculate the taxes. In case of Import Procurement tax code with zero value needs to be entered.

At Veraval, Right before GRN import PO is changed from foreign currency to Indian currency, and then GRN is done. So basically import PO exists for regularization purposes. Assessable value does not tally with exchange rate and hence this adjustment is carried out. This shall be done away with.

At Veraval, Right before GRN import PO is changed from foreign currency to Indian currency, and then GRN is done. So basically import PO exists for regularization purposes. Assessable value does not tally with exchange rate and hence this adjustment is carried out. This shall be done away with.

In Import PO standard SAP system is checking budget for purchasing items and custom duty like CSB, HSB etc but Veraval team wants budget checks only for purchasing items. This is a GAP in standard system hence we will check with Technical / ABAP consultant for user exists / enhancement is possible or not.

For further details please refer MM BBP XXXX

Domestic Purchase OrderIn Domestic PO Wipro team will check budget check will happening on purchasing items and / or excise. But Veraval team wants budget checks only for purchasing items. This is a GAP in standard system hence we will check with Technical / ABAP consultant for user exists / enhancement is possible or not.

Goods ReceiptGoods Receipt is done against purchase order by selecting purchase order number, System displays all open items pending for delivery for the PO selected. GR can be done against multiple POs by same vendors at a single instance.

For further details please refer MM BBP XXXX

PR / PO request through Maintenance OrderAt the time of plan maintenance / plant shut down, we can raise a maintenance order that time budget will check from system. Once order is created, on the based on requirement we can raise a PR and PO process.

For further details please refer PM BBP XXXX

Sub ProcessService Procurement






Project Service ProcurementMost of the execution work in a Project may be outsourced to external vendors/subcontractors. The initiation of these orders along with the material requirement is done through project systems. This section describes the process in detail.


For miscellaneous services at site the requirement would be worked out by the execution team. The service master will be created by the authorized persons for the new items. Rates for the items and vendors for the work will also be finalized by the authorized persons. After the budgeting is done for the project, these details along with the details of vendor and info record / contract agreement with vendor would be assigned to the service activity created under the respective WBS element. The service specifications would be selected from the service master and assigned to the service activity. When the status of the activity is set to Released, purchase requisitions are generated. Purchase Requisitions (for services) consume the budget as commitment to the project.The Purchase Requisitions generated would be converted to Purchase Order by the authorized persons. This process would be covered separately in the Materials Management Module. The value of the Purchase Order forms the new commitment for the activity and consumes the budget assigned to the superior WBS element. The Purchase Order commitment reduces the Purchase Requisition commitment accordingly. Whenever there are any amendments to the service, new purchase requisition would be created using a service activity.

The acceptance of the service is done through the service entry sheet wherein the actual cost will be posted to the project.

Sub ProcessActivity Planning



This process is focusing on planning of different Project components for project activity planning.



Project Activity PlanningActivity in SAP PS will be used for detailing project, assigning material components for purchasing, plan resources, plan dates and constraints, assign relationship between project activities to schedule project. PS has various types of activities to address various requirements during project planning and execution. Network activities are classified in internal, external, service or general cost activity. These activities are attached to respective WBS element. The following function shall be performed in the Project structure: Internal activity shall be used for assigning material components for creation of material reservations or purchase requisition. Internal activities are also to be used for capacity/resource planning. External / Service activity shall be used for service oriented procurement such as sub-contracting engineering services, transportation services, installation and commissioning services etc. General cost activity will be used for planning general costs such as insurance, courier etc. Project builder transaction code (CJ20N) is available in the SAP PS system which is a master transaction, using which users can navigate to other individual screens, shall be used for project structure planning.

Sub ProcessScheduling



This process is focusing on planning of different Project components for project scheduling.



Project Time PlanningThere are different types of dates in the Project System. In order to distinguish between planning and execution in all phases of a project, it is necessary to clearly define different types of dates. Basic dates are the dates that have a binding character for time scheduling. Forecast dates are dates that are based on more detailed planning or on changes during the course of the project. Forecast dates have no influence on reservations, purchase requisitions.The user can enter basic and forecast dates for WBS elements and activities.

The user is free to decide which type of date is used for planning and scheduling. A network can be scheduled using the forecast dates, for example, forecast dates can be copied into the basic dates in the WBS or activity and then used as the basis for further planning.Actual dates provide information on the state of the project. The user can enter them and the System calculates Progress of a project based on the confirmation data. Scheduled dates are the start and finish dates of activities calculated by the system in scheduling. For WBS elements the scheduled dates are determined from the scheduled dates of the activities that are assigned to the WBS element. Earliest and latest dates are calculated in network scheduling and advise the earliest or latest date that an activity must start or finish on.Relationships determine the chronological sequence of activities in a network or a standard network.There is usually a reason for a specific sequence of activities in a network. For example, there may be technical dependencies between individual activities. These dependencies are represented by relationships in which one activity is the predecessor or the successor of another activity. Types of Relationships are as follows: Start Finish(SF) Start Start(SS) Finish Finish(FF) Finish Start(FS)

Project can also be schedule and monitor in Project Planning Board.

Sub ProcessProject Execution



This process is focusing on planning of different Project components for project execution.



Project ExecutionConfirmations document the state of processing for activities and activity elements in a network, and can be used to forecast progress in the future. Precise confirmations are very important for realistic and accurate project planning.The project execution consists of the following activities: Procurement and consumption of materials and services for the project Procurement of non-stock materials Procurement of stock items for project and consumption on projects Procurement of services for projects

Once the project has been planned and budgeted, it is released for execution. Once each of the activities is physically completed, it is confirmed into the SAP-PS system individually. However collective confirmation (completion) of activities is also possible.The following features / control functions are available via confirmations for use in projects: Update of the actual costs based on the confirmed data Update of network data, such as duration, work, and status Update of dates for WBS elements Back flushing and unplanned withdrawals of material components Posting of open reservationsActivities and individual capacities are all confirmed in the same manner.You enter confirmation in the following ways: For each activity or individual capacity For a network As a collective confirmation As a summary confirmationYou can enter the following data during confirmation: Actual dates Actual durations Work doneWhen you confirm an activity that has material components assigned to it that is to be back flushed, the system automatically posts the goods issue for these components. If the goods cannot be issued, you receive, depending on the confirmation parameters in Customizing, an error message or an error log. You can reprocess goods issues that have errors and: Change goods issued processed by back flushing Carry out planned material issues (depending on the settings you made in Customizing for confirmation parameters) Carry out unplanned material issues Copies the actual dates to the network or WBS element Calculates the actual costs for the posting date

Advance / Down Payment Against PO

This process involves the posting of accounting data for advance / down payment to vendors in Accounts Payable The invoice is yet to receive from the vendor. Advance can be given against Purchase Order, WBS element. For further details refer to finance BBP XXXX

ABG Advance / Down Payment Scenario:

Advance / Down Payment assigned to Purchase Order. This purchase order has account assignment WBS - which settles to AUC.

Create a down payment request against the PO. Generate a payment run. Settle WBS element with relevant down payment to asset under construction (assuming down payment is in a different period than GR/IR) Receive goods against the PO. Receive an invoice against the PO. Apply & clear portion of down payment against invoice. Generate a payment run - (invoice less down payment amount) Settle costs to the asset under construction.

Sub ProcessPeriod End Activities and Project Closure



This process is focusing on planning of different Project components for project period end activities and project closure.



Period end Activity and Project ClosureThe purpose is to close a project in an efficient manner.1. Closing the Project Technically.2. Closing the Project Commercially.

Year End ClosingIn project accounting the year-end closing transactions are must, to move the unused budget from current fiscal year to next fiscal year. The activities involved in year-end closing are:1) Carry forward commitments (Year End Closing) Carry forward commitments are a year-end closing transaction. This is necessary before moving the unused budget from current fiscal year to next fiscal year. Commitments are not taken into account when the unused budget is calculated. In case of major maintenance project Nagda, Rehla and Renukoot carry forwarding PR commitment as well as PO commitment in next year. But Veraval is carry forwarding only PO commitment in next year.2) Carry forward residual budget (Year End Closing)Carry forward residual budget is a year-end closing transaction. This enables to carry forward budget remainders from projects to the following fiscal year. Pre requisite is all commitments shall be carried forward & financial year shall be closed. All locations are not carry forwarding residual budget from previous year to new year.


Project SettlementCosts and expense are collected in projects only temporarily. They are settled to one or more receivers as part of period-end processing.Not all projects are subject to Settlement (this is controlled by the Settlement Profile). Settlement transfers actual costs from the Project Object to external objects (Such as Assets, Cost Centres, GL Accounts etc). In Major Maintenance, Normal maintenance, Minimax project settlement receivers are Cost Centres and for Capex projects settlement receivers Assets Under Construction, which are attributed to Expense and Capital projects respectively. You use settlement to: In capital-investment measures, to settle the charge to assets under construction this can or must be capitalized one or more Assets. Asset will be settle at top level or WBS line item wise. Include actual costs from the project in actual price calculation in Cost Centre Accounting.You define the settlement criteria in the project master data. Settlement profileYou maintain profiles in the Project System IMG. You store the settlement profile in the project profile or in the network type. It then acts as a default value for the individual objects. The profile regulates, for example, whether settlement is allowed, prohibited, or required. Settlement ruleYou must enter a settlement rule for each object you want to settle. The settlement rule contains the receiver, the apportionment rule, and other settlement parameters. You can change the profile settings in the settlement rule parameters for an object. ABG Capex ProjectIn case of Capex project we are maintaining overall budget profile hence we are not carry forwarding any budget from previous year to next year. Major Maintenance, Normal Maintenance and Minimax ProjectIn Case of Major,Normal maintenance and Minimax project, we are maintaining annual budget profile hence we can carry forward previous year budget to next year But business requirement they would not carry forward but we can carry forward open PR and PO. As an alternate approach we can close previous year PR / PO and create new PR/PO in next year.

Project Technical Closure: Upon conforming all prerequisite the project manager can set the system status as TECO with this status set, system will not allow the creation of any purchase requisition, or purchase order or sale order creation with respect to the project. The option will be available to reset the status with appropriate authorization (Which can be decided Projects Group).Project Commercial Closure: Project closure can be done only after project attains "TECO" status. Ensure all open Purchase Requisition & purchase order related to projects are closed. All the POs against the project should have Goods receipt, Vendor invoice are verified. Ensure all open internal orders related to project (if applicable) are closed. Ensure all Reservations and maintenance orders related to project are closed. Close out all risks on the project By completing all the above prerequisite, the system status should be changed from TECO to CLSD

Proposed Business Processes Step NoDescription of Activity / Process Carried outProposed Process details

1Project CreationCreate project structure with WBS in the system for doing the cost planning.

Transaction code :- CJ20N

SAP R/3 menu :- Logistics Project System Project Project Builder

2Project CostingBased on the historic data or the inputs from Project department rough-cut project costing can be done.

Transaction code :- CJ40 SAP R/3 menu :- Logistics Project System Financials Planning Cost in WBS Overall Values Change

3Project Detail PlanningOnce the Quotation is negotiated and agreed successfully by the Customer and the Project is actually allotted LOI is given real time Project planning can be done by the Project department base on the inputs given by various Project participating departments and details given by Design department. This will include Detail level WBS planning along with proper operational indicator Planning element, Acct. assg. Indicator. Network planning Internally processed activity planning Externally processed activity planning Service activity planning General cost activity planning Project related text assignment etc. Project Date planning etc.



4Project SchedulingOnce all the objects are planned in the Project with all the date or duration / relationship details Project Manager can do the Project scheduling.

Transaction code :- CJ29 CN24N ( Overall Network Scheduling)

SAP R/3 menu :- Logistics Project System Dates Project scheduling / Overall Network Scheduling

5Project Cost planningOnce the detail project planning is done Project department can further do the unplanned cost planning.

Transaction code :- CJ40

SAP R/3 menu :- Logistics Project System Financials Planning Cost in WBS Overall Values Change

6Project Budget PlanningOnce the Project cost planning is completed Project department Head can do the Budget planning by taking the cost planned values as the base. Budget planning can be done at the annual level if the Project is lasting for more than one fiscal year.


SAP R/3 menu :- Logistics Project System Financials Budgeting Original Budget Change

7Budget FunctionalityAs per the requirement and applicability various Project Budget functionalities can be carried out by Project Departments.1. Budget Supplement Provision of extra Budget after revised cost planning

Transaction code :- CJ37 (In Project) CJ36 (To Project)

SAP R/3 menu :- Logistics Project System Financials Budgeting Supplement In Project / To Project

2. Budget Return Return of surplus Budget

Transaction code :- CJ35 (From Project) CJ38 (To Project)

SAP R/3 menu :- Logistics Project System Financials Budgeting Return From Project / To Project3. Budget Transfer Transfer of Budget as per requirement and applicability

Transaction code :- CJ34SAP R/3 menu :- Logistics Project System Financials Budgeting Transfer

8Budget Release(Optional Step)Once the Budget planning is done by Project department the same can be released by Finance department or Top Management. Budget released value can be 100% of the budget planned value or it can be as per the % approved.

Transaction code :- CJ32SAP R/3 menu :- Logistics Project System Financials Budgeting Release Change

9Project ReleaseOnce all the Project planning, Budget planning and budget release is completed Project Manager can give the go-ahead for the project work to be started by releasing the Project in the system.

Transaction code :- CJ20NSAP R/3 menu :- Logistics Project System Project Project Builder

10Material Procurement Cycle ( If required during the assembly of FG) If some of the materials are required during the assembly of a FG material then it will be done as per the MM process - BP-MM-XXX-XX

11Internal Activity ConfirmationAfter the completion of work allotted to Internal resources Project person can do the confirmation of the work by confirming the activity.

Transaction code :- CJ20NSAP R/3 menu :- Logistics Project System Project Project Builder

12Service PO Creation for External Services w.r.t. PRWherever external services are required for any assembly or erection work Purchase department can create the Service PO with reference to the PR created in the Project.

Transaction code :- ME21NSAP R/3 menu :- Logistics Materials Management Purchasing Purchase Order Create

13Release of Service POPurchase order created by user can be set under approval process. This approval can be done at independent item level, or at Header level. Relevant Authorise person can approve the requisition. System does not allow processing the order unless it is approved.

Transaction code :- ME29NSAP R/3 menu :- Logistics Materials Management Purchasing Purchase Order Release Individual Release

14Service Entry Sheet against the Service POAfter the partial or full completion of the services by the Vendor Project Manager can create the Service Entry sheet for the Service PO with the quantities completed.

Transaction code :- ML81NSAP R/3 menu :- Logistics Materials Management Purchasing Purchase Order Follow-On Functions Service Entry Sheet Maintain

15Debit Memo to VendorIn this process of Logistics Invoice Verification a Debit memo is generated on vendor. Transaction code :- MIROSAP R/3 menu :- Logistics Materials Management Logistics invoice Verification Document Entry Enter Invoice

16Payment ProcessingBased on the Invoice verified Finance department can do the Payment processing to the Vendor.Transaction code :- F-53SAP R/3 Menu :- Accounting Financial Accounting Accounts Payable Outgoing Payment Post

17Direct FI Posting for Travel CostWhenever any Project person incurred a Travel cost, any meeting expenses or any other expenses for the Project he will raise the bill to the Finance department along with the supporting documents and then Finance department can do the FI posting against these with Network activity as the account assignment.

Transaction code :- FB50

SAP R/3 Menu :- Accounting Financial Accounting General Ledger Posting Enter G/L Account Document

18Project SettlementAs Project is the Temporary cost collector periodically this cost needs to be settle to the respective receiver.Finance department can do the periodic and final settlement as per the applicability.


SAP R/3 Menu :- Project System Financials Period-End Closing Single Functions Settlement Individual Processing

19Project Technical ClosureOnce the planning of the Project is freeze and it is decided that no further planning will be done Project Manager can technically close the Project by setting the TECO status.



After technical closure system wont allow any further planning to the Project whereas actual posting will be still allowed.

10Project Commercial (Final) ClosureAfter final completion of all the Project activities Project Department can commercially (Finally) closed the Project by setting the status as CLSDTransaction code :- CJ20N


After commercial (Final) Closure of the Project system will freeze all the planning and actual Posting activities.

E. Standard Reports available with the proposed process Project Structure Overview - CN41N Change document for Project / Network CN60 Display Budget Document CJ3B Budget/Actual/Commitment/Rem Plan/Assigned - S_ALR_87013558 Budget updates - S_ALR_87013560 Actual Costs Line Items - CJI3 Project Commitment Line Items CJI5 Purchase Requisitions for Project ME5J Purchase Orders for Project ME2J Actual Payments/Advance/Payment Commitments CJIA Line Item Settlement CJID Progress Structure Overview - CNE5 Material wise Stock - MMBE Valuated Project Stock MBBS Plant wise Stock / Special Stock MB53F. Special Organization Considerations G. Changes to Existing Organization Refer to FI BBP page no.H. Improvements to existing business processes I. Listing of Functional Deficits Not ApplicableJ. Approaches to covering Functional Deficits Not Applicable K. System Configuration Considerations Project Profile with all required profiles. Number range for Network Project Coding mask. WBS Structure Relevant MM, QM, FI/CO configurationL. Interface Considerations None M. Any document / output printed for this business process Print output for the PO Document Print output for GR documentN Development requirements for business process This is to be documented during implementation. (In this section capture details of developments (enhancements, outputs form development), interface list as a result of all above pointsO. Gapes In Import PO standard SAP system is checking budget for purchasing items and custom duty like CSB, HSB etc but Veraval team wants budget checks only for purchasing items. This is a GAP in standard system hence functional consultant will check with Technical / ABAP consultant for user exists / enhancement is possibility before Blue Print Sign off.

In Domestic PO Wipro team will check budget check will happening on purchasing items and / or excise. But Veraval team wants budget checks only for purchasing items. This is a GAP in standard system hence we will check with Technical / ABAP consultant for user exists / enhancement is possibility before Blue Print Sign off.

We can give advance against PO or normal advance through system. Advance / Down payment to vendor against LOI (letter of indent) to project are a GAP in system. Wipro team will come with work around and suggest some solution.

If Budget is over and then user can raise a request from system and approval will happened from system. This we can achieve through enhancement. In standard budget functionality this feature is not available. Hence we consider as a GAP. P. Test case

Refer test case refer document no......Q. Sign- Off /Approvals In this section document the name of consultant, core team member, project manager from both sides with their designation during implementation

Name of Core team membersRole/ DesignationOrganization/Business UnitSignatureDate

ABG_ONE_CHEMICAL_IM_PS_BBP V 2.0 Page 63 of 64ABG One Chemical

Plant Specific Project

Normal Maintenance

Capex

Veraval

Nagda / Rehla / Renukoot / Vilayat

Department

Sections

Department


Equipment

Major Maintenance

Department


Equipment

ABG One Chemical

Normal Maintenance

Capex

Veraval

Expansion / Returnable Scheme Project

Nagda / Rehla /Renukoot / Vilayat

Rayon Major Maintenance

Sections

Sections

Department

Department

Sections

Department


Equipment

Material / Service

Major Maintenance

Sections

Department

Caustic / Power Major Maintenance

Equipment

Sub Equipment

IM PS Flow Chart for CapexP

SM

MF

I &

CO

IM

Budget

Planning

Budget

Release

Create Program

Position ID

Budget

Distributed

Create Program

Structure

Budget

Planning

Date

Planning /

Scheduling

Budget

Release

Project

Release

Budget Functionality

Supplement /

Return / Transfer

Cost

Planning

Project Creation

with STD

Templates

Detailed Project

Structure

Planning

Material

Procurement Cycle

BP-MM-P2P-001-00

Service PO

Payment

Processing

Service Entry

Sheet

Direct FI Posting

against WBS

AUC Cost

capture at

WBS

Project

TECO

Settlement to

Asset

Period-End Activities

Project

Closure

ABG One Chemical Flow Chart Capex.vsdPage-1

IM PS Flow Chart for Major & Normal MaintenanceP

SM

MF

I &

CO

IM

Budget

Planning

Budget

Release

Create Program

Position ID

Budget

Distributed

Create Program

Structure

Budget

Planning

Date

Planning /

Scheduling

Budget

Release

Project

Release

Budget Functionality

Supplement /

Return / Transfer

Cost

Planning

Project Creation

with STD

Templates

Detailed Project

Structure

Planning

Material

Procurement Cycle

BP-MM-P2P-001-00

Service PO

Payment

Processing

Service Entry

Sheet

Direct FI Posting

against WBS

Cost

capture at

WBS

Project

TECO

Settlement to Cost

Center

Period-End Activities

ABG One Chemical Flow Chart Major Maintenance.vsdPage-1

Investment Management Module

Investment Program Structure

1 ABG ONE CHEMICAL

Product Plant Specific Top WBS

Product Plant Specific Top WBS

Scheme / Project Top WBS

1.5.3 Normal Maint.

1.5.2 Major Maint.

1.5.1 Capex

1.5 Veraval

1.1 Nagda

1.2 Vilayat

1.3 Rehla

1.4 Renukoot

Project Systems Module

PS Reyon Capex Project

VRRC-1-1301 Project

VRRC-1-1301-CSY-E

ElectricalVRRC-1-1301-CSY-M

Mechanical

VRRC-1-1301-CSY-C

Civil

VRRC-1-

1301-CSY-

M-M

Material

VRRC-1-

1301-CSY-

M-S Service

Entry Sheets

VRRC-1-1301-CHM

Section 1

VRRC-1-1301-SPG

Section 3

VRRC-1-1301-CSY

Section 2

PS Capex Rayon Veraval Structure.vsdPage-1


Caustic Capex Project

VRCC-1-1301 Project

VRCC-1-1301-CSY-E

Electrical

VRCC-1-1301-CSY-C

Civil

VRCC-1-1301-CSY-M

Mechanical

VRCC-1-1301-

CSY-C-M

Material

VRCC-1-1301-

CSY-C-S

Service Entry

Sheets

VRCC-1-1301-CHM

Section 1

VRCC-1-1301-SPG

Section 3

VRCC-1-1301-CSY

Section 2

PS Capex Caustic Veraval Structure.vsdPage-1


PS Power Capex Project

VRPC-1-1301 Project

VRPC-1-1301-CSY-E

ElectricalVRPC-1-1301-CSY-M

Mechanical

VRPC-1-1301-CSY-C

Civil

VRPC-1-

1301-CSY-

M-M

Material

VRPC-1-

1301-CSY-

M-S Service

Entry Sheets

VRPC-1-1301-CHM

Section 1

VRPC-1-1301-SPG

Section 3

VRPC-1-1301-CSY

Section 2

PS Capex Power Veraval Structure.vsdPage-1


PS Reyon Major Main.

Project

VRRM-1301 Major

Maintenance

VRRM-1301-M-2202

CSLYE 48%

VRRM-1301-M-2101

Brince Purifaction

VRRM-1301-M-2201

CSLYE 32%

VRRM-1301-E

Electrical

VRRM-1301-C

Civil

VRRM-1301-M

Mechanical

VRCM-1301-M-2201-09

Conveyer Belt

VRCM-1301-M-2201-08

Viscose Maturing Drum

VRCM-1301-M-2201-02

Viscose Shredder

Material

Service

Entry

Sheets

VRCM-1301-M-2201-08-112


VRCM-1301-M-2201-08-112


VRCM-1301-M-2201-08-112


PS Reyon Major Maintenance Veraval Structure.vsdPage-1


PS Caustic Major Main.

Project

VRCM-1301 Major

Maintenance

VRCM-1301-M-2202

CSLYE 48%

VRCM-1301-M-2101

Brince Purifaction

VRCM-1301-M-2201

CSLYE 32%

VRCM-1301-E

Electrical

VRCM-1301-C

Civil

VRCM-1301-M

Mechanical

Material

Service

Entry

Sheets

VRCM-1301-M-2201-

111 Equipment C

VRCM-1301-M-2201-

011 Equipment B

VRCM-1301-M-2201-

001 Equipment A

PS Caustic Major Maintenance Veraval Structure.vsdPage-1


PS Power Major Main.

Project

VRPM-1301 Major

Maintenance

VRCM-1301-M-2202

CSLYE 48%

VRCM-1301-M-2101

Brince Purifaction

VRCM-1301-M-2201

CSLYE 32%

VRPM-1301-E

Electrical

VRPM-1301-C

Civil

VRPM-1301-M

Mechanical

Material

Service

Entry

Sheets

VRCM-1301-M-2201-

111 Equipment C

VRCM-1301-M-2201-

011 Equipment B

VRCM-1301-M-2201-

001 Equipment A

PS Power Major Maintenance Structure.vsdPage-1


PS Caustic Normal Main.

Project

VRCN-1301 Normal

Maintenance

VRCN-1301-M-2202

CSLYE 48%

VRCN-1301-M-2101

Brince Purifaction

VRCN-1301-M-2201

CSLYE 32%

VRCN-1301-E

ElectricalVRCN-1301-C Civil

VRCN-1301-M

Mechanical

Material

Service

Entry

Sheets

PS Normal Maintenance Structure Flow Chart.vsdPage-1

abg one chemical im ps v 2.0

Documents

process of internal

project structures

project system settings

accurate project data

business process61sign

scheduling system

materials management

capex major im ps flow