SAP PROJECT IMPLEMENTATION

PARAGON GROUP OF COMPANIES

PROCESS DESIGN DOCUMENT

PROJECT SYSTEMS
Revision History

Revisio
Revision
n Summary of Changes Revised By
Date
Number

1 17/03/22 V 1.0 Haris Anjum

Usmani

Approvals
This document requires the following approvals

Paragon Signing Authorities Paragon Designations Paragon Approval Sign

& Date

CERM Quality CERM Quality Paragon Approver Paragon Approval Sign

Approver Name Approval Sign & Date Name and Date

Syeda Qurba Batool Head of PMO & Project

(Document Format Manager
Quality)

Shahzaib Siddiqui Project Coordinator

(Document Content
Quality)

Note: - This PDD provides the theoretical solution and scope of the solution which will be further
deliberated and evaluated in the UAT phase of the project in SAP Quality System. During the
UAT phase User sign off will again be required for confirmation of the proposed solution.

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LEGENDS

Process Start / End

Process Flow (SAP Process Step)

Process Reference

Manual Document

Decision (Yes/No)

Manual Input (Step Out of SAP)

Local Database

Review and Approval

Off Page Connector

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Document Composition
This document contains the following sub PDDs:

PDD Name Prepared By

Overview of TO-BE processes at Paragon group of Companies Haris Anjum Usmani

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Contents
1 PUPOSE OF THE DOCUMENT......................................................................................................... 9

2 OBJECTIVE OF PROJECT SYSTEM ................................................................................................... 9

3 SCOPE OF IMPLEMENTATION ..................................................................................................... 10

4 ORGANIZATIONAL STRUCTURE ................................................................................................... 11

5 OVERALL PROCESS FLOW .......................................................................................................... 14

5.1 Process Flow ....................................................................................................................................................15

5.2 Process Steps ..................................................................................................................................................15

6 PROCESS: CREATION OF PROJECT STRUCTURE ............................................................................ 16

6.1 Overview ..........................................................................................................................................................16

6.2 Process Flow ....................................................................................................................................................17

6.3 Process Steps ..................................................................................................................................................18

6.4 Solution Architecture Design .............................................................................................................................18

6.5 Workflow .........................................................................................................................................................19

6.6 Reports ...........................................................................................................................................................19

6.7 Interface ..........................................................................................................................................................19

6.8 Conversion.......................................................................................................................................................19

6.9 Enhancement ...................................................................................................................................................19

6.10 Form ...............................................................................................................................................................19

7 PROCESS: PROJECT PLANNING .................................................................................................. 19

7.1 Overview ..........................................................................................................................................................19

7.2 Process Flow ....................................................................................................................................................20

7.3 Process Steps ..................................................................................................................................................20

7.4 Solution Architecture Design .............................................................................................................................21

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7.5 Workflow .........................................................................................................................................................21

7.6 Reports ...........................................................................................................................................................21

7.7 Interface ..........................................................................................................................................................21

7.8 Conversion.......................................................................................................................................................21

7.9 Enhancement ...................................................................................................................................................21

7.10 Form ...............................................................................................................................................................21

8 PROCESS: PROJECT BUDGETING ................................................................................................ 21

8.1 Overview ..........................................................................................................................................................21

8.2 Process Flow ....................................................................................................................................................22

8.3 Process Steps ..................................................................................................................................................22

8.4 Solution Architecture Design .............................................................................................................................23

8.5 Workflow .........................................................................................................................................................23

8.6 Reports ...........................................................................................................................................................23

8.7 Interface ..........................................................................................................................................................23

8.8 Conversion.......................................................................................................................................................23

8.9 Enhancement ...................................................................................................................................................23

8.10 Form ...............................................................................................................................................................23

9 PROCESS: BUDGET ALLOCATION / DISTRIBUTION ........................................................................ 24

9.1 Overview ..........................................................................................................................................................24

9.2 Process Flow ....................................................................................................................................................24

9.3 Process Steps ..................................................................................................................................................24

9.4 Solution Architecture Design .............................................................................................................................25

9.5 Workflow .........................................................................................................................................................25

9.6 Reports ...........................................................................................................................................................25

9.7 Interface ..........................................................................................................................................................25

9.8 Conversion.......................................................................................................................................................25

9.9 Enhancement ...................................................................................................................................................25

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9.10 Form ...............................................................................................................................................................25

10 PROCESS: POSTING ACTUAL DATES AND CONFIRMATIONS ..................................................... 26

10.1 Overview ..........................................................................................................................................................26

10.2 Process Flow ....................................................................................................................................................26

10.3 Process Steps ..................................................................................................................................................27

10.4 Solution Architecture Design .............................................................................................................................27

10.5 Workflow .........................................................................................................................................................27

10.6 Reports ...........................................................................................................................................................27

10.7 Interface ..........................................................................................................................................................27

10.8 Conversion.......................................................................................................................................................27

10.9 Enhancement ...................................................................................................................................................28

10.10 Form ...............................................................................................................................................................28

11 PROCESS: BUDGET TRANSFER / CARRY FORWARD................................................................. 28

11.1 Overview ..........................................................................................................................................................28

11.2 Process Flow ....................................................................................................................................................28

11.3 Process Steps ..................................................................................................................................................29

11.4 Solution Architecture Design .............................................................................................................................29

11.5 Workflow .........................................................................................................................................................29

11.6 Reports ...........................................................................................................................................................29

11.7 Interface ..........................................................................................................................................................29

11.8 Conversion.......................................................................................................................................................30

11.9 Enhancement ...................................................................................................................................................30

11.10 Form ...............................................................................................................................................................30

12 PROCESS: PERIOD-END SETTLEMENTS .................................................................................. 30

12.1 Overview ..........................................................................................................................................................30

12.2 Process Flow ....................................................................................................................................................30

12.3 Process Steps ..................................................................................................................................................31

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12.4 Solution Architecture Design .............................................................................................................................31

12.5 Workflow .........................................................................................................................................................31

12.6 Reports ...........................................................................................................................................................31

12.7 Interface ..........................................................................................................................................................31

12.8 Conversion.......................................................................................................................................................31

12.9 Enhancement ...................................................................................................................................................31

12.10 Form ...............................................................................................................................................................32

13 PROCESS: PROJECT CLOSING ............................................................................................... 32

13.1 Overview ..........................................................................................................................................................32

13.2 Process Flow ....................................................................................................................................................32

13.3 Process Steps ..................................................................................................................................................33

13.4 Solution Architecture Design .............................................................................................................................33

13.5 Workflow .........................................................................................................................................................33

13.6 Reports ...........................................................................................................................................................33

13.7 Interface ..........................................................................................................................................................34

13.8 Conversion.......................................................................................................................................................34

13.9 Enhancement ...................................................................................................................................................34

13.10 Form ...............................................................................................................................................................34

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1 PUPOSE OF THE DOCUMENT

SAP implementations are projects to select and implement business processes in an SAP
landscape. A Process Design, Document these business process requirements of a company. In
collaborative business processes, several companies may be involved.
The process design provides you a general idea of how your business processes could be
mapped in one or more SAP Systems. The process design documents lays out the scope of
business scenarios, business processes, process steps, and the requirements of an SAP solution
implementation.

2 OBJECTIVE OF PROJECT SYSTEM

SAP PS is a project management tool that provides business with support in all phases of the
project. Projects are tasks with special characteristics. Both small and large scale projects require
precise planning for many detailed activities involved. To be able to control all tasks in project
execution, there is a need of an organizational form that is specific to the project and which is
shared by all departments involved.
Before carrying out a project, the project goals must be precisely described and the project
activities to be carried out must be structured.
There are two structures in Project Systems which can be used to map project components: Work
Breakdown Structures and Networks.
Work breakdown structures can be used to organize a project in a hierarchy and to map the
project structure. Networks, on the other hand, represent individual project activities and their
temporal and logical relationships. These two components of SAP PS can be combined to create
a project structure.
Work breakdown structures consist of work breakdown structure elements (WBS elements) that
are arranged at various levels to produce a hierarchical model of the project activities to be carried
out. Each individual WBS element can act as a controlling object in which you can plan and
monitor costs, revenues, payments, budgets, and dates.
A network represents the flow of a project. The individual tasks in the project are mapped as
activities in a network. The temporal and logical dependencies between the various activities can
be represented as links, also known as relationships.
Activities form the operative basis for planning and controlling dates, costs, and resources
(personnel, machinery, and materials). When activities are assigned to WBS elements, the dates
and costs defined in the individual activities are aggregated at WBS Element level, and can be
evaluated.

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3 Scope of Implementation

The scope to this document is to define all the business requirements at Paragon Group for
SAP Project System module.
The master data (Project Definition, WBS Element, and Network Activity) is defined in the
Enterprise Master Data Document.
The scope of the SAP Project System at Paragon Group is to enable the following:
 Project Structure – Each component item / service that is defined in task list allows
more comprehensive reports of project expenses without having the details in Balance Sheet /
Profit and Loss Accounts. Also allows control on cluttering the G/L accounts.
 Planning – This allows planning to be carried out at WBS / Network cost element level,
which eventually rolls up to give overall planning figures for the whole WBS structure. The
material components and external services will also be planned the Project System’s domain.
 Budgetary Control – System checks will be carried out for costs incurred against
budget availability.
 Project Execution – This involves network procurement process, material reservations,
purchase requisitions, goods receipt/issuances and service entry sheets for Network Activities
(external services)
 Project Closing – This includes the reporting/adjustments, settlements, and system
statuses.
 Reporting and Monitoring – Monitor and controlling budget during execution phase.

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4 Organizational Structure

Each project starts with the definition and classification of the structures required for processing
the project and incorporating these structure into the existing enterprise structure.

Controlling Area

Company Code
FINANCE Controlling

Assets Materials Management Profit Center

Assets Under
Plant Cost Center
Construction
Purchasing
Organisation

Storage Location

Purchasing Group

Work Center

Controlling Area: Controlling areas are the organizational units in a group, which require their
own complete, self-contained cost accounting.
You can use one controlling area to conduct joint cost accounting for a number of company codes.

Controlling Area Controlling Area Description

ZPGC Controlling Area for PCL & PDL

Company Code: A company code is an organizational unit within a client for which a separate
balance sheet is drawn up. The balance sheets and profit and loss statements required by
legislation are produced at company code level.

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 Company Code Company Code Description
1000 Paragon Constructors (Pvt.) Ltd.
2000 Paragon developers (Pvt.) Ltd.
3000 Lucky Paragon Ready-mix Ltd.

Profit Center: Profit centers divide your business up on a management basis. The basic aim of
profit center accounting is to present areas of the business as entities operating independently in
the market.

Company Code Profit Center Profit Center Description

1000 10001 Region Office South (PCL)
1000 10002 Region Office North (PCL)
2000 20001 Region Office South (PDL)
2000 20002 Region Office North (PDL)

Cost Center: A cost center is an organizational unit within a controlling area. It represents a
sharply delineated area within which costs arise. The delineation can be based on functions, cost
settlement techniques, physical location, or responsibility areas.

Cost Center Cost Center Description

TBD Electrical
TBD Civil
TBD M&P
TBD Piling

Plant: Plant is an organizational unit serving to subdivide an enterprise according to production,

procurement, maintenance, and materials planning aspects. It is a place where either goods are
produced or materials and services are provided.

Company Code Plant Plant Description

1000 1001 Paragon Constructor-HO
1002 Karachi North
1003 Karachi South
1004 Karachi West
1005 Karachi East
1006 Karachi Bharia

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 1007 Islamabad Office
1008 Islamabad SITE
2000 2001 Paragon Developer Office
2002 Paragon Developer SITE
3000 3001 Lucky Paragon-Office

Storage location:
Storage locations can be reviewed in Paragon_Enterprise_Structure_Design_V3 document
shared earlier.

Project Profile
A Project profile is defined to maintain default values and control parameters like planning
methods for costs. The information entered in project profile is copied to project in project
definition or also in the project elements.

Project Profile Project Profile Description

1000 Paragon Constructors (Pvt.) Ltd.
2000 Paragon Developers (Pvt.) Ltd.

Project Structure: The project structure is an important component of the project system module.
Therefore, the project structure has to be clearly and precisely defined as it forms the basis to
successfully track from planning and budgeting to capturing of commitment and actual costs, as
well as allowing meaningful reporting to be generated. A project structure is divided into the
following main components:
 The Project ID – This is the project header and defines the project as well as the
organization structure assignment of the project
 The Work Breakdown Structure (WBS) elements – These are the levels below the
project ID. The WBS elements are where planning and posting of costs will be done. A hierarchy
can be built using WBS elements. This can later be used for reporting purposes.
 The Network – Describes the project processing and represents the logical flow of a
project. The essential elements of a network are activities and their relationships. Networks form
the basis for planning, analyzing and monitoring schedules, cost and resources.
The Project System has no organizational structures of its own, we incorporate it into the existing
structure by making assignments to the organizational units in Accounting and Logistics. It is this
which enables the Project System to present data clearly and in many different ways.

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The diagram below demonstrates a simple hierarchical structure of a project.
CONTROLLING AREA
PROJECT COMPANY CODE
DEFINITION PROFIT CENTER
PLANT

COMPANY CODE
PLANT
PROFIT CENTER
1ST LEVEL WBS
COST CENTER

WBS ELEMENT WBS ELEMENT WBS ELEMENT WBS ELEMENT

PLANT
NETWORK PROFIT CENTER

ACTIVITIES PLANT
PROFIT CENTER

PURCHASING
ORGANISATION
PLANT INTERNALLY EXTERNALLY MATERIAL
GENERAL COST PURCHASING GROUP
WORK CENTER PROCESSED PROCESSED COMPONENTS
ACTIVITIES PLANT
PROFIT CENTER ACTIVITIES ACTIVITIES
STORAGE LOCATION

PURCHASING
ORGANISATION
PURCHSAING GROUP
PLANT
PROFIT CENTER

5 OVERALL PROCESS FLOW

A Project can generally be divided in phases such as:

 Project Structuring
 Project Planning
 Project Budgeting
 Project Execution
 Project Period-End Activities
 Project Closing
A high degree of precision is required when planning and coordinating large and complex
projects. When planning the flow of the project, you schedule deadlines and dates, make
resources available and assign fund.
During Budgeting, you allocate, distribute, release and assign funds to relevant objects of the
project structure.
Budgeting is followed by Project Execution, where you post actual results of the activities
planned and monitor the progress of the project.

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Project Period-End Closing, allows to transfer the unutilized budgets to the fiscal year follows,
perform period-end settlements to the cost objects.
Project is closed, once all the activities planned are completed, relevant costs can be capitalized
from AUC to Fixed Assets and project expenses are settled to cost objects (G/L accounts).

5.1 Process Flow

5.2 Process Steps

Step Step Name Business Role Transaction Expected Results
Condition Code / Fiori
Application
i Project structuring On acceptance Project CJ20N Project structure (WBS,
of the budget, Management networks) is created
Project Team
structuring is
carried out.
ii Detailed costs, dates Detailed cost Project CJ20N Planning for the project is
and material planning planning and Management carried out
material Team
assignments
are carried out
for the project
as a part of
planning phase
iii Budgeting The planned Project CJ20N, Approved budget
cost for the Management CJ30 allocated to project as
activities forms Team original budget

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 the basis for
the budgeted
estimation
iv Project release Project is Project CJ20N The Project is released for
released once Management execution
the budget is Team
approved
v Confirmation of actual Once the Project CJ20N Confirmation of network
time and actuals project and the Management activities post actuals
costs activities are Team dates and costs, which is
released, determination criteria for
Confirmations project progress analysis
of network
activities will
be posted
using project
planning board
vi Period end closing For projects Project CJCO, Relevant settlements are
which are Management CJCF, performed and Budgets
spread over Team CJ20N for the projects are carried
number of forward to the next fiscal
years, period- year
end closing will
be carried out
vii Project monitoring Throughout the Project CJ20N Active monitoring of
and controlling execution to Management activities dates, costs
closing phase, Team incurred against budgets
monitoring and
controlling is
carried out for
the dates and
costs
viii Project closing Project is Project CJ20N The project is closed and
closed once it Management relevant result analysis
is technically Team reports are generated
and
commercially
completed

6 Process: Creation of Project Structure

6.1 Overview
Creation of the project structure process pertains mainly to the master data maintenance and
detailed master data details can found in the Enterprise Master Data Document.
Master data is the characteristics of an organizational unit that remain in the system for a long
period of time. Master data contains information that is frequently required by the business and
forms the basis of subsequent transactions.

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6.2 Process Flow

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6.3 Process Steps
Step Step Name Business Condition Role Transaction Expected
Code Results
i Create Once project approved by Project CJ20N Project
Project and Management, project will be Management Created
WBS created and along with it Team and
(Levels 1 WBS using template or Level 1-2
and 2 ) operative project structure WBS
assigned
to project
ii Extend the Various levels of WBS will be Project CJ20N WBS
WBS (as created with relevant Management structure
required) operative indicators such as Team defined
‘Account Assignment, Billing, for the
Planning’ project
iii Create Network forms basis for Project CJ20N Network
Network planning, analyzing, Management Header
Header for monitoring costs and Team created
task and resources assigned to the for the
assign it to network activity lowest
lowest WBS WBS
level level
element
iv Create and Activities will be the cost Project CJ20N Activities
assign carrier object. Activities Management of the
network comprises of material Team project
activities for components, internal and assign to
the WBS externals services networks.
(Material
components,
External
services)

6.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

For Tendering Process:

 Tendering Information Form will be created outside the system
 BOQ (Bill of Quantity) feed in Project system on WBS level, all department prepare rate
analysis for their respective field (Civil, Electrical, Plumbing, Drainage, HVAC, BMS, and
Fire).
For Feasibility Process (PDL):
 Feasibility process feed in Project System on WBS level.
 And calculation will be done out of SAP

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6.5 Workflow
Report Description
None

6.6 Reports
Reports Description Transaction Code

6.7 Interface
Interface Description
None

6.8 Conversion
Data Conversion Description
None

6.9 Enhancement
Enhancement Description
None

6.10 Form
Form Description
None

7 Process: Project Planning

7.1 Overview
Project planning includes the business aspects such as Dates, Costs, Material, resource and
payments. Cost planning deals with the cost which is expected to be incurred in connection with
the project as it is executed.

For Actual labor/employee cost please refer to Human capital management’s Process
design Document.

For Material Allocation and Planning please refer to Material management’s Process
design Document.

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7.2 Process Flow

PROJECT SYSTEM – PROJECT PLANNING

START
PROJECT MANAGER

i ii iii
ENTER PLANNED DATES FOR THE ENTER AND ASSIGN THE
PERFORM SCHEDULING OF
WBS MANUALLY USING PROJECT PLANNED RESOURCES TO
NETWORK ACTIVITIES
PLANNING BOARD NETWORK ACTIVITY

v iv
COST PLANNING FOR NETWORK
END BUDGETING PROCESS ACTIVITES AGGREGATED ON WBS
LEVELS

7.3 Process Steps

Step Step Name Business Condition Role Transaction Expected
Code Results
i Enter Planned dates entered for Project CJ20N Planned
planned the WBS using forward Management dates
dates for scheduling forms the basis Team maintained
the WBS for network activities
manually scheduling
using
project
planning
board
ii Perform Using forward scheduling for Project CJ20N Network
scheduling network activities, based on Management scheduling
of network planned dates system Team carried out
activities schedules to calculate the
earliest dates of the activities
to finish
iii Enter and Internally processed Project CJ20N Planned
assign activities, Service activities, Management resources
planned Material components are Team assigned
resources assigned to activities to
to network activities
activities

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 Step Step Name Business Condition Role Transaction Expected
Code Results
iv Cost Plan costs for assigned Project CJ20N Planned
planning activities by using quantity Management costs for
for network structure for projects. Team WBS
activities Activities costs are elements
aggregated aggregated on the WBS maintained
on WBS levels to which activity is for the
level assigned activities

7.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

7.5 Workflow
Report Description
None

7.6 Reports
Reports Description Transaction Code

7.7 Interface
Interface Description
None

7.8 Conversion
Data Conversion Description
None

7.9 Enhancement
Enhancement Description
None

7.10 Form
Form Description
None

8 Process: Project Budgeting

8.1 Overview
The Budget is the approved and binding cost framework for a project within a particular period of time.
Cost plan when approved by an approving authority is considered as budget for a project. 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 or for a project.

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8.2 Process Flow

PROJECT SYSTEM – PROJECT BUDGETING

ASST. PROJECT

i PERFORM ADJ USTMENTS TO

MANAGER

START THE PLANNED COST AND END

CREATE THE DRAFT BUDGET

REJECTED / NEED AMENDMENTS

MANAGER

vi
PROJECT

ii
REVIEW THE DRAFTED FUNDS ALLOCATED FOR THE
REJECTED / NEED AMENDMENTS BUDGET CAPEX PROJECT
CHIEF FINANCIAL

iii v
OFFICER

REVIEW THE
PROPOSED BUDGET APPROVED BUDGET FOR THE
FOR THE CAPEX CAPEX PROJECT
PROJECT
DIRECTORS
BOARD OF

iv
REVIEW THE
PROPOSED BUDGET BUDGET APPROVED
FOR THE CAPEX

8.3 Process Steps

Step Step Name Business Condition Role Transaction Expected
Code Results
i Perform The planned costs for the CJ20N Adjusted
adjustments activities are subjected to planned
to the adjustments before costs
planned proposing for approval determined
cost and and project
create the budget
draft budget proposal is
prepared
ii Review the Project manager reviews the N/A Project
drafted proposed budget budget is
budget reviewed

iii, iv Review the Chief Financial Officer and N/A Chief

proposed Board of Directors reviews financial
budget for the proposed budget officer and
the project Board of
Directors

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 Step Step Name Business Condition Role Transaction Expected
Code Results
review the
proposed
budget

v Approved Budget approval is N/A Project

Budget for communicated to CFO, and budget
the Project relevant accounting entries approved,
are made for the project Finance
makes
down
payment
for the
project
vi Funds As the project budget is CJ20N Budgeted
allocated approved, Funds are made amount for
for the available as a Down the project
project Payment entered in
the system

8.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

8.5 Workflow
Report Description
None

8.6 Reports
Reports Description Transaction Code
Specific Network Costing CJ9K

8.7 Interface
Interface Description
None

8.8 Conversion
Data Conversion Description
None

8.9 Enhancement
Enhancement Description
None

8.10 Form
Form Description
None

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9 Process: Budget Allocation / Distribution

9.1 Overview
Once the Project budget is approved by the decision makers of the company, this enables the
Project Manager to allocate the approved budgets on the WBS / Network / Activity.

9.2 Process Flow

PROJECT SYSTEM – BUDGET ALLOCATION / DISTRIBUTION

i
ASST. PROJECT MANAGER

RECEIVES APPROVED
START BUDGETED FIGURES

ii
BUDGET
YES CHANGED FROM
PROPOSAL?

NO

iii iv v
PROJECT MANAGER

ALLOCATE / DISTRIBUTE RELEASE THE APPROVED

RELEASE THE PROJECT FOR
APPROVED BUDGET ON WBS BUDGET FOR THE CAPEX
EXECUTION
ELEMENTS PROJECT

END

9.3 Process Steps

Step Step Business Condition Role Transaction Expected
Name Code Results
i Receives Approved budget is received Assistant N/A Approved
the by Project management Project budget
approved department Manager from the
budgeted Board of
figures Directors
received
ii Budget Approved budget is not Assistant N/A N/A
changed always the proposed budget Project
from Manager
proposal?

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 Step Step Business Condition Role Transaction Expected
Name Code Results
iii Allocate / The approved budgeted Project CJ30 Original
Distribute figures are allocated / Manager budget
approved distributed on WNS elements. allocated /
budget on Budget at lower-level WBS distributed
WBS element should not exceed at WBS
elements budget at higher level WBS elements
v Release The approved budget is Project CJ20N Original
the released in the project Manager budget
Approved system as the original budget released
budget for
the Project
iv Release Project manager releases the Project CJ20N Project
the project project, so that execution of Manager status
for activities can take place changed
execution ‘REL’
(Released)

9.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

9.5 Workflow
Report Description
None

9.6 Reports
Reports Description Transaction Code
Specific Network Costing CJ9K

9.7 Interface
Interface Description
None

9.8 Conversion
Data Conversion Description
None

9.9 Enhancement
Enhancement Description
None

9.10 Form
Form Description
None

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10 Process: Posting Actual Dates and Confirmations

10.1 Overview
Various functions, such as posting actuals costs, actual dates, actual labor and changing activity
status are carried out automatically by means of confirmations. Confirmations document the
processing status of activities and activity elements in a network and enables to evaluate the
project progress.

For Actual labor/employee cost please refer Human Capital Management’s Process
Design Document.

For Material Allocation and Planning please refer Material Management Process Design
Document.

An activity must be released before one can confirm it. In the project planning board, first
release the activity and then confirm it later.

10.2 Process Flow

PROJECT SYSTEM – ACTUAL DATES AND CONFIRMATIONS

i RECEIVES INFORMATION FOR

ASST. PROJECT MANAGER

COMPLETION OF NETWORK
START ACTIVITIES

ii
ENTER ACTUAL DATES FOR
COMMUNICATE RELEVANT AMENDMENTS
ACTIVITY / NETWORK / WBS

YES

iii iv v
PROJECT MANAGER

VERIFY THE POST NETWORK ACTIVITY

SUGGEST THE NECESSARY
INCOMPLETE COMPLETION OF VERIFIED CONFIRMATION USING
AMENDMENT REQUIRED
NETWORK ACTIVITY PROJECT BUILDER

END

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10.3 Process Steps
Step Step Name Business Condition Role Transaction Expected
Code Results
i Receives During execution phase, Assistant N/A Task
information information received on Project completion
for completion of tasks Manager information
completion assigned to network received
of network forms basis for posting
activities confirmations
ii Enter actual Actual dates are entered Assistant CJ20N Actual dates
dates for for the relevant project Project for the
WBS / system structure object Manager activities to be
Network / using Project Builder confirmed are
Activity entered
iii Verify the Project Manager verifies Project N/A Verification
completion the status of the activity Manager results can be
of network for which confirmation is positive and
activity to be posted negative
iv Suggest Necessary amendments Project N/A Necessary
necessary are communicated to Manager amendments
amendments responsible person for communicated
required to the activity execution to responsible
complete the personnel
task
v Post network Confirmation of the Project CJ20N Confirmation
activity activity is posted using Manager posted
confirmation project builder, once the
using Project activity completion is
builder verified

10.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

10.5 Workflow
Report Description
None

10.6 Reports
Reports Description Transaction Code
Specific Network Costing CJ9K

10.7 Interface
Interface Description
None

10.8 Conversion

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 Data Conversion Description
None

10.9 Enhancement
Enhancement Description
None

10.10 Form
Form Description
None

11 Process: Budget Transfer / Carry forward

11.1 Overview
As in an event where Paragon project management team needs to reallocate budget either
within the project or to another project, SAP Project System allows to transfer the budget from
one WBS to another in the same project, followed by relevant approvals from the management.
In addition, Paragon may face such a scenario where the project is expected to continue for
number of years and at the year-end (as a part of Project System closing activities) unutilized
budgets may have to be carried forward to the following fiscal year. SAP PS also possess the
ability to handle such a case.

11.2 Process Flow

PROJECT SYSTEM – BUDGET TRANSFER / CARRYFORWARD

iii
START COMMUNICATE REJ ECTION
OF THE REQUEST TO END
PROJECT MANAGER

PROJECT MANAGER

i
CREATE THE REQUEST TO v
TRANSFER THE BUDGET
WITHIN PROJECT TRANSFER THE BUDGET /
OR CARRYFORWARD THE
REJECTED

CARRYFORWARD TO NEXT BUDGET

FISCAL YEAR
BOARD OF DIRECTIOS

ii iv

REVIEW THE REQUEST

FOR THE BUDGET REQUEST ACCEPTED COMMUNICATE ACCEPTANCE
REALLOCATION

ACCEPTED

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11.3 Process Steps
Step Step Name Business Condition Role Transaction Expected
Code Results
i Create the In an event where the Project N/A Request for
request to tolerance limit for a WBS Manager budget
transfer the in compromised, Project transfer is
budget within manager may raise a submitted
request to transfer for Board of
project unutilized budget from Directors
Or another WBS element review
Carryforward Or where the project life
to next fiscal spreads over the number
year of years, as a period-end
closing process, unutilized
budgets shall be carried
forward to next fiscal year
ii Review the Board of directors reviews Board of N/A Board of
request for the request for the transfer Directors directors
budget / carryforward the budget review the
reallocation request
iii Communicate For any reason, Board of Board of N/A Request
rejection of directors may choose to Directors rejected,
request to reject the request for alternative
project transfer of budget means
manager suggested
iv, v Request Acceptance of request will Project CJ34, Request
accepted, be communicated to Manager CJCO acceptance
Transfer / project manager and results in
Carryforward relevant transfer / transfer /
the budget carryforward of budget will carryforward
be carried out of budget

11.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

11.5 Workflow
Report Description
None

11.6 Reports
Reports Description Transaction Code
Commitments Carry forward CJCF

11.7 Interface
Interface Description
None

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11.8 Conversion
Data Conversion Description
None

11.9 Enhancement
Enhancement Description
None

11.10 Form
Form Description
None

12 Process: Period-End Settlements

12.1 Overview
Period based business transactions as part of the period-end closing procedure, enables that all
the data belonging to a period is determined and made available to Enterprise Controlling.
At the year-end settlement of activity and WBS cost to controlling cost object is essential for
management accounting reporting, in which periodic cut-off is imperative.
This also allows to perform ‘results analyses for the period.
For Project Billing please refer to Sale & Distribution Document

12.2 Process Flow

PROJECT SYSTEM – PERIOD-END SETTLEMENTS
ASST. PROJECT MANAGER

i
AT PERIOD-END DETERMINE
START THE COSTS TO BE SETTLED
ON COST OBJECTS

ii VERIFY THE iii

PROJECT MANAGER

SETTLEMENTS PERFORM SETTLEMENTS OF

PROPSED AS PER VERIFIED COMPLETED NETWORK
CONFIRMATIONS OR ACTIVITES ON COST OBJECTS
SERVICE ENTRY

END

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12.3 Process Steps
Step Step Name Business Condition Role Transaction Expected
Code Results
i At the Assistant Project Manager Assistant CJ20N Activity cost
period-end generates a report for the Project to be
determine costs of the project to be Manager settled, are
the costs to settled on cost object identified
be settled on
cost objects
ii Verify the Before carrying out the Project N/A Verifies the
settlements settlement process, Project Manager status of
proposed as Manager verifies the activities for
per completion of the activity or which
confirmations the service rendered settlements
or service are to be
entry sheets posted
iii Perform Project Manager will carry Project CJ88, Settlements
settlement of out settlement of activity Manager CJ8G carried out
completed cost and WBS elements
network costs to the relevant cost
activities on object using settlement
cost objects rules.

12.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

12.5 Workflow
Report Description
None

12.6 Reports
Reports Description Transaction Code
Settlement Rule WBS CJB1
Results Analysis KKA2

12.7 Interface
Interface Description
None

12.8 Conversion
Data Conversion Description
None

12.9 Enhancement
Enhancement Description
None

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12.10 Form
Form Description
None

13 Process: Project Closing

13.1 Overview
Once all activities are finished on project, the project manager and financial controller will get
the latest report on costs of project. If there no additional costs expected in the project, then PM
will close the project in the system. Project closure decision is very critical because once the
project is closed; no further costs can be posted.

13.2 Process Flow

PROJECT SYSTEM – PROJECT CLOSING

i
START TECO STATUS?

YES

ii NO
iii ALL THE
PERFORM REMAINING
PROJECT MANAGER

RELEVANT
SETTLEMENTS TO AUC / NO
SETTLEMENTS CARRIED
COST OBJECT
OUT?

YES

v iv
CAPITALIZE THE AUC TO THE
NO AUC CAPITALIZED?
FIXED ASSET

YES
vii GENERATE THE COST ANALYSIS
REPORT FOR THE CAPEX vi CLOSE THE PROJECT,
PROJECT FROM THE CHANGE PROJECT STATUS
END
INFORMATION SYSTEM TO CLSD AND ARCHIVE THE
PROJECT DATA

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13.3 Process Steps
Step Step Name Business Condition Role Transaction Expected
Code Results
i TECO In order to close a project, Project CJ20N N/A
status? Project Manager needs to Manager
make sure the project,
WBS, network and activities
status is ‘TECO’
(Technically Completed)
ii All the In order to close a project, Project CJ20N N/A
relevant Project Manager needs to Manager
settlements ensure that no cost remains
carried out? unsettled
iii Perform Project Manager performs Project CJ20N Settlements
remaining the settlement posting for Manager to AUC and
settlements the cost left on the project cost object
to AUC or structural objects carried out
cost object
iv AUC Project Manager ensure that Project CJ20N N/A
Capitalized? cost of AUC have been Manager
capitalized to the fixed asset

v Capitalize Project Manager settles Project CJ88 AUC

the AUC to AUC to the Fixed Asset Manager capitalized
the Fixed to the Fixed
Asset Asset
vi Close the Once all the prerequisites Project CJ20N Project
project, for project closure are Manager Closed
change the satisfied, the project
project manager closes the project
status to by changing the status to
‘CLSD’ and ‘CLSD’.
archive the
project data

13.4 Solution Architecture Design

Paragon group will follow all standard processes as mentioned in the process flow.

13.5 Workflow
Report Description
None

13.6 Reports
Reports Description Transaction Code
Specific Network Costing CJ9K

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13.7 Interface
Interface Description
None

13.8 Conversion
Data Conversion Description
None

13.9 Enhancement
Enhancement Description
None

13.10 Form
Form Description
None

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