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Project Acadia
May 2012
CONFIDENTIAL
1
FIN-01-02-03 Business Sub-Process Design Document
Execute Project
TABLE OF CONTENTS
1 Document History....................................................................................................................... 3
1.1 Revision History..................................................................................................................... 3
1.2 RASCI.................................................................................................................................... 3
1.3 Approval Detail...................................................................................................................... 3
1.4 Related Documents............................................................................................................... 3
2 Business Process Overview:..................................................................................................... 4
2.1 Key Principles and Objectives............................................................................................... 4
2.2 Key Assumptions................................................................................................................... 4
3 Business Process Scenarios:.................................................................................................... 5
3.1 Definitions, Acronyms, Terminology.......................................................................................7
4 Business Process Diagram........................................................................................................ 8
4.1 Process Diagram................................................................................................................... 8
4.2 Activity List........................................................................................................................... 10
4.3 Inputs................................................................................................................................... 11
4.4 Outputs................................................................................................................................ 11
5 Process Variations.................................................................................................................... 11
5.1 Business Unit Led Variations............................................................................................... 11
5.2 Geography/Legal Entity Led Variations................................................................................11
6 Role Definition & Organizational Impact.................................................................................11
6.1 Role/Skill Class Inventory.................................................................................................... 11
6.2 Organizational Impact.......................................................................................................... 12
7 RICEFW...................................................................................................................................... 12
7.1 Reports................................................................................................................................ 12
7.2 Interfaces (Inbound / Outbound).......................................................................................... 12
7.3 Conversions......................................................................................................................... 13
7.4 Enhancements..................................................................................................................... 13
7.5 Forms.................................................................................................................................. 13
7.6 Workflows............................................................................................................................ 13
8 Other Issues / Gap List............................................................................................................. 14
8.1 Other issues, Gaps, and outstanding points........................................................................14
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FIN-01-02-03 Business Sub-Process Design Document
Execute Project
1. Document History
1.1 Revision History
1.2 RASCI
3
FIN-01-02-03BP315 Business Sub-Process Design Document
Execute Project
Solution Objectives
In building the solution for VFC Project Systems (and Investment Management), the following overall
objectives are relevant:
Discontinue use of standalone internal orders as capital and expense tracking vehicles and replace
with projects that allow hierarchical grouping of multiple related sub-projects
The solution must facilitate better project cost tracking, control and reporting (provide consistent tools
and methodologies for managing projects)
Have the ability to reflect true cost of a project excluding internal labor (internal labor may be in the
scope of a future project)
An individual project needs to be able to contain costs that are eventually settled into assets AND/OR
expense, or be setup as a statistical object with real costs going to a cost center
Ensure there is budget control for capital portion of projects.
Reporting should be available to monitor actuals against budget, and actuals against plan for capital
and expense components
SAP PS Overview
VFCs business requires projects to be used in support of the capital planning process, in conjunction with the
Investment Management module. At this time there are no requirements for projects to support revenue-
producing business scenarios. Defined global project types will promote consistency across the enterprise
and will allow for more meaningful comparisons.
The Execute Projects business process focuses on the daily and monthly use of projects that will be tracked
using the SAP Project Systems (PS) module. The main elements of this process are as follows:
1) Status management
2) Daily activities charging the project
a) Purchase order assignment
b) Goods receipts
c) Invoice receipts
d) Activity allocation
e) Journal entries
3) Month-end activities
a) Update status
b) Settlement
Projects are required only to support the capital planning and execution process (including the opex
portion of capital projects), in conjunction with the Investment Management module
Projects will also be used to represent marketing projects
No requirement for revenue-generating projects, or billing of any kind
The current approval process for specific capital projects will continue, using WEAs and approval
through the WEA Lotus Notes database
Projects (capex) will be created manually in PS and assigned to positions (nodes) in the approved
investment program in the IM module
No requirement for networks
Once a WBS element has been released (has status REL) it is possible to create purchase requisitions in
which the WBS is the cost assignment object. This is governed by availability control, which prevents a
purchase requisition from being created that would exceed the budget of the WBS element. Once the
status of technically complete (TECO) has been set on a WBS element, it is no longer possible to assign
new purchase documents to that WBS.
When Commitment Management is activated for the controlling area, the assignment of a purchasing
document to a WBS element creates a commitment in the information system.
b) Goods receipts
When a goods receipt (GR) is performed for a WBS-assigned PO, the actual expense debit is charged to
the WBS element. The commitment amount that was posted when the PO was created is
correspondingly reduced by the actual amount posted in the GR.
c) Invoice receipts
When an invoice receipt (IR) is performed for a WBS-assigned PO, any expense debits or credits (price
variances) are generally charged to the WBS element.
d) Activity allocation
Work performed internally on projects can be charged to the WBS element using activity allocation,
usually by assigning time sheet entries to the WBS element. This is not applicable for VFC in the first
phase of the project.
e) Journal entries
Postings to the general ledger accounts with reference to a WBS Element as the cost object can be
performed as needed.
3) Month-end activities
a) Update status of projects
This step is important because the settlement of WBS elements used as investment measures depends
on their system status. While a WBS element has the Released status (REL) it will settle its charges each
period to its associated AUC(s). Once the status is changed to technically complete (TECO), the amounts
that have accumulated on the AUC will settle to the final fixed asset (FXA) so that depreciation may begin.
Projects that are complete both technically and financially should be given the status of Closed (CLSD) to
prevent further activity and to reduce the system processing workload during settlement.
Status changes shall be performed in general by the finance team, not the operations team.
b) Perform settlement
WBS elements are used to temporarily collect costs for an investment measure. These debits then have
to be debited in turn to assets under construction or cost centers. Therefore, periodic settlement of the
measures is required. In addition, an investment measure with an asset under construction has to be
settled to fixed assets when it is completed.
i) WBS AUC
Uses an AUC settlement type. The AUC distribution rule is automatically generated by the system the
first time the WBS element is settled. This settlement path is used each period, until the WBS element
gets the TECO status. Values on the WBS element are settled to the AUC, using either original cost
elements, or a secondary cost element.
ii) AUC FXA
Uses an FXA settlement type. The FXA distribution rule is automatically generated by the system at
the time a fixed asset is created from the WBS element. Once the WBS element gets the TECO
status, values on the AUC are settled to the final completed asset(s).
iii) WBS Cost center
Uses a PER or PRE settlement type. PRE is used if a single WBS element (investment measure)
settles to both an AUC and a cost center. PER is used on WBS elements that are not investment
measures and that settle only to a cost center.
A test settlement should be run prior to the real update run, in order to disclose any problems before they
become financial postings.
After the settlement is executed, a report should be run from the PS information system to confirm that the
balance of all WBS elements is zero, indicating that all values have been successfully settled.
Statistical WBS elements do not need to be settled since the real cost posts to the cost center. Statistical
WBS elements will retain their statistical balance.
Daily
Daily project charges Various charges are made to the various Multiple
N/A
WBS element roles
Month-end
Set project status Change system/user status on CJ20N Coalition
N/A
WBS elements accountant,
Fixed asset
accountant
Settle projects Individual project CJ88 Coalition
N/A
accountant,
Fixed asset
accountant
Settle projects Collective projects CJ8G Coalition
N/A
accountant,
Fixed asset
accountant
Report project Run a report to confirm correct S_ALR_87013542 Coalition
N/A
settlement of all WBS elements accountant,
Fixed asset
accountant
4.3 Inputs
The Inputs needs to be specifically documented for the client specific situation, like interfacing with
external systems, workflow, form & Medium of communication.
4.4 Outputs
The Outputs needs to be specifically documented for the client specific situation, like interfacing with
external systems, workflow, form & Medium of communication.
5. Process Variations
5.1 Business Unit Led Variations
Note: Please see Organizational Impacts within the Project Share Drive.
7. RICEFW
(Note: Below are the RICEFWS discovered in the Blueprint Phase. A complete list of RICEFWs will be stored
in a central location. After the design phase, the list below should not be considered exhaustive as the
RICEFWs may change throughout discovery.
7.1 Reports
N/A NONE
Direction
RICEFW # (Inbound / Interface Description
Outbound)
7.3 Conversions
RICEFW
Conversion Description
#
N/A NONE
7.4 Enhancements
N/A NONE
7.5 Forms
Client XYZ
Form Description
RICEFW #
N/A NONE
7.6 Workflows
Client XYZ
Workflow Description
RICEFW #
N/A NONE