Module Oil and Gas Project

Bahwan Engineering
Group
SAP Implementation
Project AHLAM
To-Be Process Document
Project System
Oil & Gas Projects
PS05
Submission Date: 12-06-2012

Prepared By Reviewed By
Stephen I Rodrigues Abhay Agarwal
To-Be Process Document Project System
Table of Contents
1. Document Identification................................................................................................................4
2. Revision Record.............................................................................................................................4
3. Submission Record........................................................................................................................4
4. Confirmation Record.....................................................................................................................5
5. Business Process Definition..........................................................................................................6
6. AS-IS Document Reference..........................................................................................................7
7. PS05A: Job Cost Estimate and Initial Budget on JCE..................................................................8
7.1 Proposed Process Flow Chart...................................................................................................8
7.2 Proposed Process Flow Description.......................................................................................11
7.3 Integration with other Modules..............................................................................................12
8. PS05B: Finalization of Design Consultant..................................................................................13
8.1 Proposed Process Flow Chart.................................................................................................13
9. PS05C: Mobilization...................................................................................................................15
9.1 Proposed Process Flow Chart.................................................................................................15
10. PS05D: Project Material Procurements.....................................................................................17
10.1 Proposed Process Flow Chart.............................................................................................17
10.2 Proposed Process Flow Description....................................................................................18
10.3 Integration with other Modules...........................................................................................18
11. PS05E: Project Service Procurements.......................................................................................19
12. PS05F: Project Time Sheets......................................................................................................21
13. PS05G: Project Equipment Requisitions & Postings...............................................................24
14. PS05H(i): Claims Receivable from Customer...........................................................................26
15. PS05H(ii): Claims Receivable from Vendor..............................................................................28
Confidential SAP Implementation - Project AHLAM Page 2 of 56

16. PS05H(iii): Claims Receivable from Internal for Budget Amendments...................................30
17. PS05I(i): Claims Payable to Customer - Contra Charges..........................................................32
18. PS05I(ii): Claims Payable to Customer - Penalty......................................................................34
19. PS05I(iii): Claims Payable to Vendor........................................................................................36
20. PS05I(iv): Claims Payable to Parties who are neither Customer nor Vendor...........................38
21. PS05J: Project Closure..............................................................................................................40
22. Gaps and its Resolution.............................................................................................................42
23. Process Work Flow....................................................................................................................42
24. Configuration Reference............................................................................................................43
25. Report Requirements.................................................................................................................50
26. FRICE Objects...........................................................................................................................52

1. Document Identification
This is the Identification Number for the Document detailing the function proposed. Include a brief Objective
description of the document clarifying the intent and overview of its content, example data given below,
Document ID Description
BEG_AHLAM_BBP_PS_Module_Oil & Gas_Projects_V1.0.doc To Be Oil & Gas Projects Process
2. Revision Record
Record all amendments and revisions on the original document prior to its final acceptance by the function owner. Any
amendment carried out subsequently must have approval by the function owner.
Rev
Date Revision Summary Revised By Approved By
Number
1.0 12.06.2012 Initial Stephen I Rodrigues
3. Submission Record
Provides confirmation from the Implementer on their understanding of the proposed functional scope vis--vis
current practice / requirement.
Team Details Name Designation Signature Date
Implementer
Functional Consultant Stephen I Rodrigues SAP Functional

Consultant (Project
System)
Project Manager Abhay Agarwal Project Manager

4. Confirmation Record
Record concurrence of the Project Drivers and Project Facilitators involved in the study and
documentation of requirements for the proposed function / process. Any Remark below should be
considered a part of the process / function / documentation and is to be treated as mandatory. Clearance
from the Project Steering Committee shall be considered as final confirmation of the document.
Team Details Name Designation Signature Date
Business
Raghunath
Subash Narkhade
Core Team
Pritam Das
Members
Venkatesh Sheshadri
Division Head
Project
Management V Krishnamoorthy
Team
Rajagopal
Remarks

5. Business Process Definition
OVERVIEW SAP R/3 PROJECT SYSTEM (PS)
Introduction
Bahwan Engineering Group is the flagship of the Suhail Bahwan Group, one of Oman's foremost business houses. It
is one of the largest engineering construction groups in Oman. It has nation-building projects, not only in Oman but in
the UAE too. BEC has multi-disciplinary construction projects under one umbrella, involving civil, mechanical,
electrical construction, elevators and escalators, diesel power generation, trading in electrical and mechanical
products and facilities management services in Oman and UAE. It has also integrated construction projects in sectors
such as Oil, Gas and Power Projects, High Voltage Transmission and Distribution projects, Airports, Hotels, Hospitals
and Commercial-Residential Complexes.
The module Project System (PS) of SAP R/3 (ECC 6.0) is able to provide structures to plan and costs of resources for
these structures. For the purpose of BEC SAP R/3 only cares of project budget and project costs. For time scheduling
and monitoring BEC will use Primavera Project Management Version 6 and MS Project 2010.
The structure provided by SAP PS for mapping projects is a work breakdown structure (WBS). Work breakdown
structures consist of work breakdown structure elements (WBS elements) which are arranged at various levels to
produce a hierarchical project model. At BEC the WBS is structured along the Job Cost Estimate (JCE) which are
assigned to the project and will be having their own budget. Once budget is released the execution can start. Actual
costs will be allocated and posted to WBS element and reported for budget and cost controlling reasons. The
variations would be tracked by SAP PS - Claims Management, which would record the details of variations.
Scope of Business Blueprint Document
The Business Blue Print document for SAP R/3 PS is to describe the To-Be process flows and the system
configuration to be maintained by taking the requirements of Oil & Gas Projects as mentioned in the AS-IS Analysis
into account. Some parts of the processes are related to other SAP Modules like Materials Management (SAP MM)
for purchasing material and services or Finance Accounting (SAP FI) for Controlling and Project Settlement.
The interaction between SAP and Primavera Project Program is also described is separate BBP document. Please
note that due to the Cost structures which would be maintained in SAP, and the Construction program would be
maintained in Primavera, hence the interface between Primavera and SAP is to push information in a MS Excel Sheet
to SAP, which would be captured in Z Tables in SAP. This would be processed in a Custom Development which would
be used by SAP Business Intelligence (SAP BI) or SAP PS for reporting.
The Primavera Construction Program Data transferred would not be interacting with the SAP PS WBS Structure (JCE
Structure), whereas would only be taken into SAP for Analysis. Please refer to document BEG_AHLAM_BBP_PS_
Module_Primavera_Integartion_V1.0.doc for more details.
Please note that there would not be any interface between SAP PS and MS Project as the Bar Chart Program of MS
Project and the SAP JCE Structure are different. Whereas the data from these system can be taken a format as
suggested in BEG_AHLAM_BBP_PS_ Module_Primavera_Integartion_V1.0.doc and then uploaded into SAP for
further planning & analysis.

AS-IS Document Reference
Provide reference to current process study document pertaining to this business process. Either include the AS-IS
process description or indicate the document reference number.
Sln Document Reference Description Enclosed (Y/N)
1 N
2 N
3 N
4 N
5 N
6 N
7 N
8 N
9 N
10 N
11 N
12 N
13 N
14 N
15 N
16 N
17 N
18 N

PS05A: Job Cost Estimate and Initial Budget on JCE
7.1 Proposed Process Flow Chart
Document proposed business process flow based on system and process requirements.
The following overview describes the symbols used in the process flowcharts:
Process Start and End Decision Box
Process / Activity step Document / Output
Continuation of the
process map to a
Data Storage different page and
Process Link
Pre defined process &

Automatic triggering of Manual Steps in the
subsequent process process / Out of SAP
Interface with SAP




7.2 Proposed Process Flow Description
Provide complete details of the proposed process description.
Process Steps involved in the Proposed Process Definition
1. Upon the receipt by the valid Order / LOA from the client, the user has to create a JCE Structure (hereinafter
referred to as WBS Structure) in SAP. The WBS Structure would be created either by using standard WBS
structure or an operative structure. The Standard WBS structure would copy only the structure, where as the
Operative structure would copy both the structure and unit costing (Easy Cost Planning). The Person
Responsible on the WBS and Project Definition would be maintained for the Project. The indicator for the Food
and Camp provided by Admin would be maintained at the Project level, which has to be indicated by the User.
2. Parallel the Sales Order has to be created in system with regard to the Order / LOA from the client, and then
link the Level 1 WBS Node to the Sales Order Line item.
3. The project costs would then be created or edited (if copied from operative project) in the Easy Cost Planning
for each WBS Elements. The cost would be totaled up, which would be used later by Commercial Division to
copy to initial budget on the project. The Easy Cost Planning would use the component of Unit Costing in
Projects, in which we would use the Material, Service Master for Equipments and Activity Types for Labor. Any
other cost would be estimated as Variable Costs. Upon completion of cost planning, the user would set the
status for Divisional Head Approval. A mail would be created manually by User from within project Builder
Screen to the Divisional Head for Approval.
4. Any soft copy documents to be uploaded in DMS System and recorded with unique status. The documents
would be linked to object WBS Element.
5. Upon receipt of the mail, the Divisional Head would then run a report Planned Contribution Report which
would indicate the planned profit for the Project. He would then change the status of the Project Definition to
indicate the Approval of WBS Structure (JCE) in system. If not approved, he would set a user status to indicate
that it is sent back for correction. If rejected the mail would be sent back to Estimator for correction, which upon
correction would again be sent for Divisional Head Approval. Upon Divisional Head Approval, a manual mail
would be created by Divisional Head to Commercial Section.
6. The commercial section would review the WBS Structure (JCE) and then pass the Budget into system, by
copying method (Plan to Budget). Upon saving of the Budget document is posted and the availability control on
the WBS Structure would get activated. The commercial user would set the status for the release of the WBS
Structure. Along with the Budget, the Commercial User would also create Recipient for ETM. A mail would then
be created manually by Commercial Section User to all the relevant Users.
7. The divisional Users upon receipt of this mail would transfer the data to simulation version. A User Status would
be set upon the completion of this activity.

7.3 Integration with other Modules
Provide complete details of the integration points with the other modules
Step No Description Integrated with module
2 Sales Order linked to WBS Element Sales & Distribution (SD)
Cost Planning in Easy Cost Planning

includes, Cost Elements, Materials Material Management (MM), Controlling (CO)
3
Master, Activity Type
6 Recipient Master created for ETM Equipment & Tools Management (ETM)

PS05B: Finalization of Design Consultant

1. In case of the Contract is an EPC contract then the following flow is considered, or else the process is skipped
to the Mobilization process. Please refer process PS05C: Mobilization for more details.
2. The User would create a Purchase Requisition (PR) for the External Design Drawing Service by linking the
Purchase Requisition to the WBS (JCE) for which the Budget is released in system. A commitment item for the
purchase requisition is created in the back end. Existing Purchase Requisition can be used for creating the PR
in system.
3. Any external documents which are converted to softcopy format can be linked in Document Management
System (DMS) by creating a Document Info Record in system. The Document Info Record can thus be linked to
the PR, WBS or Vendor as required.
4. The PR would then be further processed by the Purchasing Section. Please refer to document MM:
Purchasing Process for Projects for more details on the Purchasing Process.
5. Upon the submission of the Design documents by the Design Consultant the documents are uploaded in DMS
System and recorded with unique status. In case of any document not getting approved, then the document is
sent back for correction. The status of such documents would be maintained in Document Info Record. Please
refer to section 24, for more details on Document Management System.
6. Upon the Approval of the Design Documents by Client the Mobilization is started at site. Please refer process
PS05C: Mobilization for more details.
2, 4 Purchase Requisition Process Material Management (MM)
3, 5 Document Info Records Document management System (DMS)

PS05C: Mobilization


1. The Bonds and Insurances, Site Investigation Documents and NOCs and Permits upon receipt, the soft copy
formats would be scanned and uploaded in Document Management System (DMS) via a Document Info
Record. The Document Info record will be linked to the WBS Element in system.
2. The Documents are sent for Approval of the client. The status of the documents submitted would be maintained
in the system. Meantime the other planning documents are generated from the CPMS work sheet in the
system. Please refer to documents BEG_AHLAM_BBP_PS_Module_Primavera_Integartion_V1.0.doc for
more details about the Primavera Interface and CPMS Analysis in SAP.
3. Once the documents are approved or rejected, user status would be changed in the Document Info Record in
DMS system. This would be recording all the documents which would help to report during the course of the
project.
4. Upon all the documents gets approved then the Manpower, Equipment and Material Mobilization is initiated to
site.
1-3 Document Info Records Document management System (DMS)

PS05D: Project Material Procurements

1. Upon the requirement of the material, the user would check if any available material is in stock, if available, the
User would create a material Reservation in the system with respect to Project.
2. This would not check for the budget if available on the WBS Element (JCE). If the Budget is insufficient, then
system would give an error, for which the user has to first amend the Budget in system and then create the
material Reservation in system. Please refer to process PS05H (iii) Claims Receivable from Internal for Budget
Amendments to find more details about amending budget on WBS Element (JCE).
3. If the budget is sufficient then the document is saved in the system. During the save function if the budget is
consumed by specified % the system would send a mail to the person responsible who is maintained on the
WBS (JCE). Please refer to Section 24, Budget Availability Control for more details about Budget Control.
4. The further process of Inventory management process is further descried in document MM: Inventory
Management Process. Please refer to document MM: Inventory Management Process for further details.
5. If the Material is not in free stock then material would have to be procured. The User would create a Material
Purchase Requisition in the system with respect to Project WBS Element.
6. This would internally check for the budget if available on the WBS Element (JCE). If the Budget is insufficient,
then system would give an error, for which the user has to first amend the Budget in system and then create the
Purchase Requisition in system. Please refer to process PS05H (iii) Claims Receivable from Internal for
Budget Amendments to find more details about amending budget on WBS Element (JCE).
8. The further process of Purchase Requisition Process is further descried in document MM02: Purchase
Requisition to Project Stock. Please refer to document MM02: Purchase Requisition to Project Stock for
further details.
1-3 Material Reservation Process Material Management (MM)
4-6 Purchase Requisition Process Material Management (MM)

PS05E: Project Service Procurements

1. The User would create a Subcontracting Purchase Requisition in the system with respect to Project.
2. This would internally check for the budget if available on the WBS Element (JCE). If the Budget is insufficient,
then system would give an error, for which the user has to first amend the Budget in system and then create the
Purchase Requisition in system. Please refer to process PS05H (iii) Claims Receivable from Internal for
Budget Amendments to find more details about amending budget on WBS Element (JCE).
4. The further process of Purchase Requisition Process is further descried in document MM02: Purchase
Requisition. Please refer to document MM02: Purchase Requisition for further details.
1-4 Purchase Requisition Process Material Management (MM)

PS05F: Project Time Sheets

1. The Time Sheet Data would be filled by Staff or Workers in the Excel Format. The Format would have the Data
with the following fields as below,
(i) Date
(ii) Employee Number
(iii) WBS Element
(iv) Regular Working (Days)
(v) Regular Overtime (Hours)
(vi) Incentive Overtime (Hours)
(vii) Nocturnal Overtime (Hours)
(viii) Holiday Overtime (Hours)
(ix) Attendance/ Absence Type
2. The Regular Hours would be filled with Unit of Measurement (UOM) in Day, whereas the OT data would be
maintained in Unit of Measurement (UOM) Hours. The Attendance / Absence Types would be maintained
against the Appropriate Date column.
3. An upload program would be used, to upload the regular working and OT records (Regular Overtime (Hours) +
Incentive Overtime (Hours) + Nocturnal Overtime (Hours) + Holiday Overtime (Hours)) to Cross Application
Time Sheet (CATS) against Date, Employee Number and WBS Element worked. There would be no validation
of the data in SAP upon upload. The Food and Camp Cost Activity Types would be picked form the HR Custom
info type and would be posted in CATS based on indicators maintained on Project Definition.
4. Please note that the Cost Center / Activity Type rates from Controlling Module (CO) and default activity types
from HR Module against each employee would be considered during this upload. Please refer to document
CO04: Activity Types Planning for more details of Activity Type Planning.
5. Upon the upload of data in CATS, the data would be transferred to the project for Job Costing, where in the
quantity recorded in CATS would consider the plan data of activity type from CO, and posts the costs to the
project.
6. Meantime, the Time Sheet data would also be uploaded to HR info type with the OT records, i.e. Regular
Overtime (Hours), Incentive Overtime (Hours), Nocturnal Overtime (Hours) and Holiday Overtime (Hours).
Please refer to HR Document for more details.
7. Upon Payroll execution, the data from Payroll and data posted onto the job, would be compared and a
Difference Posting report would be generated from the system, which would be used further by Finance for
Manual Reposting of Costs. Please refer to document CO05: Manual Reposting of Costs for more details of
Manual Reposting of Costs.
8. A report would be generated in system, which would indicate the planned to actual costs debited to jobs,
employee category wise (activity type wise).

Cross Application Time Sheet (CATS), Controlling (CO),

1-4 Time Sheet Data Upload
Human Resources (HR)
7 Difference Posting Report Controlling (CO)
7 Manual Reposting of Costs Controlling (CO)
Planned to Actual Labor Costs Cross Application Time Sheet (CATS), Controlling (CO),
8
Comparison Human Resources (HR)

PS05G: Project Equipment Requisitions & Postings

1. Based on the approved equipment rolling plan, which is saved in the document info record, the divisional user
has to create an equipment requisition in the system. The User has to enter the basic requirements such as
type of the equipment (Class), required start date/time and end date/time and quantity required. The Recipient
has to be maintained on the requisition which represents the project site (Project Definition or WBS Element)
where the equipment should be delivered.
2. While creating a requisition user must know whether the request is for equipment item or multipart equipment.
For equipment item, the user should select the class and for the multipart equipment, equipment number
should be selected in the request.
3. Upon the Requisition is saved, system will assign an internal number. This is the reference number for further
processing with MAMD.
4. Please refer to Process ETM01: Internal Hiring for further details about ETM Internal Hiring Process.
1-4 ETM Internal Hiring Process Equipment & Tools Management (ETM)
1 Document Info Records Document Management System (DMS)

PS05H(i): Claims Receivable from Customer


1. Upon the receipt of Engineers Instruction or Site Instruction from Client or Consultant, the documents are
scanned and uploaded in Document Management System (DMS).
2. If the scope of work is to add or decrease in the existing scope then the claim is created and linked to the
existing WBS Element (JCE) in system. A Cost Estimate is created for the claim and the document is linked via
DMS.
3. In case of the scope is new, a request is sent via manual mail to Commercial Section to add a variation WBS
Element (JCE). Upon addition of WBS Element the Claim is then prepared by the Division. The claim is sent for
divisional head approval by sending a manual mail form the Claim in system.
4. There would be user status maintained for Divisional Head Approval in system. The Divisional Head would
either approve or set the status to reject in system. If rejected, then project manager would take it back to the
client or else foreclose the Claim.
5. If approved then a mail is sent to commercial section to supplement the Budget in system. Tasks and Actions
are maintained as and when required by the Divisional User. The Budget would be supplemented by
Commercial Section and then change User status on the Claim indicating Budget is posted for the Claim. A
Budget Supplement Document is generated internally by system during budget posting.
6. Mean time, the project manager would meantime negotiate with client if necessary and then submit the claim
document to the client for Approval. Upon Approval the mail would be sent to commercial section to supplement
the Budget in system. Simultaneously, the planned costs are edited as with material, labor and equipment and
then transferred to a new simulation version. The tasks and actions are maintained as and when required by
the Divisional User. It is then forwarded for budget amendment if not previously done.
7. Simultaneously the Sales Order (Contract) would also be amended in system and then User status would be
changed on the Claim indicating contract is changed due to the Claim.
2, 6 Create Cost Estimate Controlling (CO)
PS05H(ii): Claims Receivable from Vendor


1. Upon the identification of a Contra Claim with regard to a vendor, the claim is created and linked to the existing
WBS Element (JCE) in system. The PO number with regards to the vendor and also the vendor information is
entered in the claim. A Cost Estimate is created for the claim and any additional documents are linked via DMS
to the claim.
2. The Project Manager would then follow up with the vendor for the approval of the claim with the vendor, and
upon approval, a mail is then sent to Finance Section to initiate a Debit Note Process against the Vendor.
1 Create Cost Estimate for Claim Controlling (CO)
2 Debit Note Process Finance Accounting (FI)

PS05H (iii): Claims Receivable from Internal for Budget
Amendments

1. In case of any Budget Transfer Request, or Budget Amendments due to internal reasons of BEC, the user
would create a claim and link to the existing WBS Element (JCE) in system. A Cost Estimate is created for the
claim and any additional supporting documents are linked via DMS to the claim.
2. Upon the claim approval from the Divisional Head, a mail would be sent to the commercial who would perform
the Budget transfer / budget supplement / if budget return.
3. Meantime, the planned costs are edited as with material, labor and equipment and then transferred to a new
simulation version. Upon the mail from Divisional Head, the budget transfer / budget supplement / budget
return is performed in system by commercial section. A budget document is posted internally in the system
upon budget posting.
1, 3 Create Cost Estimate for Claim Controlling (CO)

PS05I(i): Claims Payable to Customer - Contra Charges


1. A claim is created and linked to the existing WBS Element (JCE) in system. A Cost Estimate is created for the
claim and the document is linked via DMS.
2. Negotiation with the client is maintained as tasks and activities on the claim form.
3. If the negotiation agreement wins, then the claim is closed, if not then the planned costs are edited as with
material, labor and equipment and then transferred to a new simulation version. A mail is then send to the
commercial team to amend the budget.
4. Tasks and Actions are maintained as and when required by the Divisional User. The Budget would be
supplemented by Commercial Section and then change User status on the Claim indicating Budget is posted
for the Claim. A Budget Supplement Document is generated internally by system during budget posting.
5. Financial Postings would be later performed by Finance over the customer contra charges.
5 Financial Postings Finance Accounting (FI)
PS05I(ii): Claims Payable to Customer - Penalty


1. A claim is created and linked to the existing WBS Element (JCE) in system. A Cost Estimate is created for the
claim and the document is linked via DMS.
5. Financial Postings via Credit Note would be later performed by Finance over the customer contra charges.
5 Financial Postings(Credit Note) Finance Accounting (FI)
PS05I(iii): Claims Payable to Vendor


1. Upon identifying a vendor payable claim, a claim is created and linked to the existing WBS Element (JCE) in
system. A Cost Estimate is created for the claim and the document is linked via DMS.
5. The Purchase Order is amended for the vendor by the Purchasing Team.
5 Purchase Order Material Management (MM)
PS05I(iv): Claims Payable to Parties who are neither

Customer nor Vendor


1. Upon identifying a agency payable claim for example: Oman Municipality Claims, ROP Claims during execution
of Job, a claim is created and linked to the existing WBS Element (JCE) in system. A Cost Estimate is created
for the claim and the document is linked via DMS.
5. Financial Postings are then entered against the agency.
5 Financial Postings Finance Accounting (FI)

PS05J: Project Closure

1. Upon the end of the project, a Closure Notification would be created in the system, which has the steps of
project closure. The Closure steps would be predefined in the codes and catalogs, which would be copied unto
the notification.
2. Additional closure documents (if any) would be linked via DMS to the Closure Notification. The tasks and
Actions would be updated as a part of closure process.
3. If any tasks are to be closed by another division or section, then a mail would be sent to intimate to close. The
concerned division / section would close the tasks and update the activities in the system.
4. Upon closure of all tasks in closure notification, the Notification is closed and status on the WBS would be set to
technically complete at the Project. The Period end closing process on the project would be initiated by Finance
Section.
2 Document Info Records Document management System (DMS)
4 Period End Closing Controlling (CO)

Gaps and its Resolution
List all the identified and potential Gaps with the current business process against the proposed business process.
Describe the potential gaps with reference to the to-be process steps. Enlist Resolution to the identified Gaps
explaining how the identified Gap/s will be resolved
GAP ID Description Ref. To-Be Steps Reference of GAP Analysis

List
Compulsory WBS should not be deleted in
PS05A
system
Upload of Time Sheet Data with Extraction
PS05F
Logic from Z Tables
Difference Posting Report (Allocated Amount
PS05F
Payroll Costs)
Budget Check during creation of Material
PS05G
Equipment Requisition
Sub Screen to Maintain Custom Fields on
PS05A Project Definition (Camp and Food provided
by Admin. fields)
Process Work Flow
Identify all process work flow requirements to automate the functionality.
Work Flow Details
No Custom Workflow is Planned. BEC has proposed to use the SAP standard Mail function to send and received
mails in the process.

Configuration Reference
List all Configuration details for access to the functionality
Description
1. Organizational Structures in SAP R/3 PS System
The module Project System of SAP R/3 has no organizational structures of its own. It is incorporated into the existing
structure by making assignments to the organizational units defined in accounting and logistics modules. The
organizational structures defined for BEC are as follows.
Please refer to Business Blueprint of Finance Accounting, Material Management & Sales and Distribution for more
details about Financial and Logistical Organizational Structures.
2. Master Data
The basic data of SAP R/3 is stored in master data records in the system. When processing business events and
transactions, the system accesses master records and the data stored in these records. This section describes
Master Data which will be used in SAP PS module.
a. Standard Work Breakdown Structure
The project structuring and project creation will be following along a standardized Work Breakdown Structure (WBS).
A WBS Structure can only be initiated and created on a basis of a signed off Contract.
The following standard WBS structures for Oil & Gas Projects will be maintained in system,
WBS Element Master

-Civil Division.xlsx
Apart from the above standard WBS Structure, there would be 2 more WBS maintained for Free Stock and for default
ETM Configuration. The Free Stock WBS Element would be used only when a material on the project is unconsumed.
It would be transferred to this Free stock to track the entire free stock item in the inventory with regard to Oil & Gas
Projects.
b. Project Coding
Each type of Project will have a Project Code in the system which can be standardized using the Project Coding
Mask. We can set up the Project System so that project number can be broken into several sections via special
characters. The way this number is structured depends on the first characters of the project number. These
characters are used as keys for project coding.
The coding mask for BEC Oil & Gas Projects will be as following:

CBE XXXX XX XX XX XX
Prefix for
BEC Oil & Indicator for Lead JCE 2nd Level JCE 3rd Level
Project Number JCE 1st Level
Gas Job and Sub Job
Projects
The coding mask for BCC Oil & Gas Projects will be as following:
CBC XXXX XX XX XX XX
Prefix for
BCC Oil & Indicator for Lead JCE 2nd Level JCE 3rd Level
Gas Job and Sub Job
Projects
The coding mask for BCC - DCL- IJV Projects will be as following:
IJV-XXXX-XX-XX-XX-XX-XX
IJV XXXX XX XX XX XX
Prefix for
Indicator for Lead
BCC - DCL- Project Number JCE 1st Level JCE 2nd Level JCE 3rd Level
Job and Sub Job
IJV Projects
The coding mask for BCC Water & Waste Projects will be as following:
WWT-XXXX-XX-XX-XX-XX-XX
WWT XXXX XX XX XX XX
Prefix for
BCC Water Indicator for Lead JCE 2nd Level JCE 3rd Level
& Waste Job and Sub Job
Projects
c. Lead and Sub Jobs

Based on the Structure and Coding of the job discussed above and Lag and Lead Jobs would be as follows,
Lead Job: This is the Job which is mainly used to Bill the main customer, which may or may not have job from
different company code. Example BCC getting a job and executing it. In this case the Lead job indicator in coding
mask would be used.
Sub Job: This is the Job which may or may not in the same company and may or may not be executed by same
division. Example BEC MEP getting a job from BCC Oil & Gas and executing it. In this case the Lead job is BCC Oil &
Gas and Sub Job is BEC MEP. The coding mask for sub job would be used in this case.

The following scenarios are observed in case of BEC,
a) Lead Job and Sub Job with same company
When a Job is awarded to division of a company(example BEC Oil & Gas) and if a portion of work is awarded to a
division in same company(example BEC MEP), then there would be 3 projects created in such scenario, a main
project which would be created with the
b) Lead Job and Sub Job across company
c) Separate Jobs across company
d) 100% Subcontracting by one company to another company
3. Project Profiles
When the user creates a work breakdown structure (JCE Structure), he/she must also enter a project profile for the
project. The project profile contains default values and parameters for processing the project.
The following project Profiles will be maintained for Oil & Gas Projects,
Controlling Company Plant Curre Project Project Profile Types of Project Handled
Area Code ncy Profile Description
Code
1000 1101 OMR Z000001 BEC Civil Projects BEC Civil Projects
BCC Civil Jobs, Water &
1000 1103 OMR Z000002 BCC Civil Projects
Waste Water Projects
9000 9121 OMR Z000003 BEC-DCL IJV Projects BEC DCL IJV Projects
4. Budget Availability Control
a. Budgeting Levels
According to the project structure described in Work Breakdown Structure (JCE) the budget will be posted on the
WBS Elements. This means that the budget for the following example project would be posted to the lowest level of
WBS (JCE) of the project and also monitored on that level.
The following treatment would be maintained for the Budget Checks in system,
Controlling
Area Effect Budget Usage
1000 Warning 80%

1000 Warning with Mail to Person Responsible 95%
1000 Error message 100%
The system will check whether available budget is sufficient or not by transacting the following transactions:

Purchase Requests and/or
Purchase Orders
There will be a tolerance limit defined in the system which proofs the usage level of the budget by transacting a
Purchase Requests or a Purchase Order. The tolerance level at BEC will be set to be 100%. If the budget is not
sufficient Purchase Requests and Purchase Orders cannot be posted in the system and an error message will be
provided to the system user.
Please note that there will not be any budget check for Labor and Equipment Posting transactions in system. Also
internal material requisitions would not have any budget check in system.
5. Project Status Management
a. User Status Profile
User statuses are defined in addition to system status. User statuses are to detail the high-level system status along
customer requirements. System status cannot be changed or modified whereas user status can be defined
separately. Activities which are allowed by the concerned system status might be controlled in more detail by
permitting or not permitting the transaction of these activities.
The following user status profile is set for all projects of BEC.
Status Description of
Status
Code Status
10 STA1 Status 1
20 STA2 Status 2
30 STA3 Status 3
STA4 Status 4
The details of the status would be finalized in Realization Phase of this SAP ERP Implementation project.
b. Status Numbering
If you assign a status number to a user status a lowest and highest status number for the user status need to be
specified. These numbers limit the status number interval from which the subsequent user statuses can be chosen.
The system usually works through the statuses in numerical order (status numbers). In BEC case however, the
following status numbering is proposed:
Lowest Highest
Status
Status Short Text Position status status
Number
number number
ETRC ETM Recipient Created

10 JCEC JCE Created in system Initial 10 15

Lowest Highest
Status
Status Short Text Position status status
Number
number number
15 UCSA Unit Costing Comp. & Sent for Approval 15 25

Divisional Head Rejected & Sent back for 15 20
20 DHRJ
Correction
25 DHAP Divisional Head Approved 25 35
Commercial Section Rejected & Sent Back for 15 30
30 CSRJ
Correction
35 CSAP Commercial Section Approved & JCE Budgeted 35 40
40 SMPC Simulation Project Created 40 45
45 PRIP Project In Progress 45 50
50 PRCO Project Completed 50 55
55 WRAC Warranty Active 55 60
60 WRCO Warranty Completed 60 60
In this case it is not possible to change directly from status STA1 to status STA3, because from status number 10 you
can only switch to maximum status number 30. Similarly, once you reach the STA3, you can no longer return to the
STA1 status.
6. Reporting Objects in SAP PS
a. Project Types
Project types can be used as a filtering criterion in the project information system. Project type do not influence
program control or screen selection, the object is only used for reporting reasons. The advantage to use project types
for reporting reasons is mainly based on the possibility to report not only single project-wise but over a class of
projects all over BEC.
Reporting Example:
Display Actual Budgets over all Oil & Gas Projects for 2013
Display Actual Costs for Material over all Mechanical Projects in 2012
The following project types are defined for EO:
Typ Description
(CHAR 2) (CHAR 40)
GE Genset Project
EV Elevator project
CV Civil Project
ME MEP Project
EL Electrical Project
OG Oil & Gas Project
BO Bilad Oman Fabrication Project
FM FMM Projects
WW Water & Waste Water Project

Typ Description
(CHAR 2) (CHAR 40)
IJ BCC-DCC IJV Projects
Any additional types of project types if required will be added during the Realization Phase of this SAP ERP
Implementation project.
b. Person Responsible for Projects
Each project is assigned to a responsible person. At BEC this person will be mainly the Project Manager or the
Construction Manager from each concerned division. The person responsible for projects is also an authorization
object in SAP PS. This matter will be used to separate access to projects along specific parameters.
Each Division need to name their Persons Responsible for Projects to provide these names in the SAP PS system.
Please note that SAP PS will provide and maintain its own table with person responsible for projects. There will be no
link to the employee number which is separately maintained in SAP module Human Resources (HR).
Key Person responsible

(NUMC 8) (CHAR 25)
XXXXXXXX Project Manager
c. Applicants for Projects
The project applicant will be project-owning division or division who leads the project. It would also be helpful to
specify a number for project applicants along divisions for reporting reasons.
Applicant Number Applicant

(NUMC 8) (CHAR 25)
GE Genset Project
EV Elevator project
CV Civil Project
ME MEP Project
EL Electrical Project
OG Oil & Gas Project
BO Bilad Oman Fabrication Project
FM FMM Projects
WW Water & Waste Water Project
IJ BCC-DCC IJV Projects
d. Project Priorities
Project priorities are used as a filter criterion in the information system. The priority does not influence the program or
the screen selection. The following reporting examples are imaginable:
Display all Projects with High Priority in 2012

By using a Project Type as further information criterion:
Display all Project Type Oil & Gas Projects with High Priority over BEC in 2012
Priority Description
(CHAR 1) (CHAR 40)
1 Very Urgent
2 Urgent
3 Normal
4 Low
During the execution of the project, the Project Definition and WBS Element Level priority can be changed if required;
the system would record the changes and can be reported.
7. Claim Management
Things like delivery difficulties, price variations, and unforeseen capacity bottlenecks can cause the project to vary
from what was planned. In such cases, the BEC need to establish who is responsible for the variance. Claim
Management ensures that subsequent claims against the contract partner, resulting from variances, can be prepared
and submitted at the appropriate moment, or claims by the contract partner can be headed off.
The Project System supports Claim Management using a notification type called "claim". We use these notifications to
document variances from the project plan, name the person responsible, and initiate follow-up activities.
The following are among the points you enter in the claim:
Cause of the variance
Person or group responsible
Costs arising from the variance
Actions and tasks to be initiated because of the variance
The integration of unit costing with the claim and the link to workflow functions in the SAP system ensure efficient
Claim Management execution
The following document types will be maintained in the system,
Document Number Range Number Range

Type From To
Claims 400000000 499999999
Receivable
Claims 400000000 499999999
Payable
BEC Project 500000000 599999999
Closure
The Status for the claim would be finalized during the Realization Phase of the SAP ERP Implementation project.
8. Document Management System (DMS)
Documents show any kind of storable information, such as technical drawings, graphics, programs, or text, which,
taken together, describes an object. We use DMS make documents available throughout the project life cycle, and

link them with SAP objects from different business areas.
The following documents types would be defined in DMS for Oil & Gas Projects,
DMS_BEC_Civil_Tend DMS_BEC_Civil_R02.
er_R00.xls xls
The documents specified here can be changed in Realization Phase of this SAP ERP Implementation Project based
on the requirement.

Report Requirements
List all Report Requirements involved in this process, the given example data shows the report details
Object Module Description Criticality Type of Report
Type
Critical / SAP SAP BI Report
Non Standard Custom
Critical (mention
T-code of
report)
Report PS Project Actual Cost Statement Critical No Yes No
Report PS CN42N - Project Definitions Critical Yes No No
Report PS CN43N - WBS Elements Critical Yes No No
Report PS CN55N - Sales Document Items Critical Yes No No
Report PS CN45N - Orders Critical Yes No No
Report PS CN42 - Project Definitions Critical Yes No No
Report PS CN43 - WBS Elements Critical Yes No No
Report PS CN45 - Orders Critical Yes No No
Report PS CNS55 - Sales Document Items Critical Yes No No
Report PS CLM10 - Overview Critical Yes No No
Report PS CLM11 - Hierarchy Critical Yes No No
Report PS S_ALR_87013531 - Critical Yes No No
Costs/Revenues/Expenditures/Receipts
Report PS S_ALR_87013532 - Plan/Actual/Variance Critical Yes No No
Plan/Actual/Commitment/Rem.Plan/Assign
ed
Report PS S_ALR_87013537 - Commitment Detail Critical Yes No No
Report PS S_ALR_87100185 - Actual Costs for Each Critical Yes No No
Month (Current Fiscal Year)
Report PS S_ALR_87100187 - Commitments for Each Critical Yes No No
Month (Current Fiscal Year)
Report PS S_ALR_87100186 - Planned Costs for Critical Yes No No
Each Month (Current Fiscal Year)
Actual/Commitment/Total/Plan in CO Area
Currency
Report PS S_ALR_87013543 - Actual/Plan/Variance Critical Yes No No
Absolute/Variance %
Report PS S_ALR_87013557 - Budget/Actual/Variance Critical Yes No No
Budget/Actual/Commitment/Rem
Plan/Assigned
Budget/Distributed/Plan/Distributed
Report PS S_ALR_87013560 - Budget updates Critical Yes No No
Report PS S_ALR_87013564 - Plan/Actual/Variance Critical Yes No No
Report PS S_ALR_87013565 - Planned Contribution Critical Yes No No

Margin
Report PS S_ALR_87013566 - Actual Contribution Critical Yes No No
Margin
Report PS CJI3 - Actual Costs/Revenues Critical Yes No No
Report PS CJI8 - Budget Critical Yes No No
Report PS MBBS - Valuated Project Stock Critical Yes No No
Report PS ME5J - For Project Critical Yes No No
Report PS ME2J - For Project Critical Yes No No
Report PS Material Planned / Actual Cost Statement Critical No Yes No
Material Planned /
Actual Cost Statement
Report PS Labor Planned / Actual Cost Statement Critical No Yes No

Report PS Equipment Planned / Actual Cost Critical No Yes No
Statement
FRICE Objects
List all the FRICE objects other than reports involved in this process, the given example data shows the report
details
Object Type Module Description Criticality (Critical / Method/Other Details
Non Critical)
Enhancement HR Amendment of Custom Infotype Critical User Exit
to keep Activity Type data in
Employee Master
Conversion CATS Upload Program for CATS Critical BDC
Conversion HR Upload Program for Time Sheet Critical BDC
data into HR Infotype
Report PS Difference Posting report Critical BI
Conversion CO Upload Program for Manual Critical BDC
Reposting of Costs
Enhancement PS Sub Screen Development on Critical User Exit
Project Definition (Camp and
Food provided by Admin. fields)

Module Oil and Gas Project

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Module Oil and Gas Project

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Bahwan Engineering

To-Be Process Document

Submission Date: 12-06-2012

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Confidential SAP Implementation - Project AHLAM Page 3 of 56

BEG_AHLAM_BBP_PS_Module_Oil & Gas_Projects_V1.0.doc To Be Oil & Gas Projects Process

Functional Consultant Stephen I Rodrigues SAP Functional

Project Manager Abhay Agarwal Project Manager

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5. Business Process Definition

OVERVIEW SAP R/3 PROJECT SYSTEM (PS)

Scope of Business Blueprint Document

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Sln Document Reference Description Enclosed (Y/N)

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PS05A: Job Cost Estimate and Initial Budget on JCE

7.1 Proposed Process Flow Chart

Process Start and End Decision Box

Process / Activity step Document / Output

Pre defined process &

Interface with SAP

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Provide complete details of the proposed process description.

Process Steps involved in the Proposed Process Definition

Confidential SAP Implementation - Project AHLAM Page 12 of 56

Step No Description Integrated with module

2 Sales Order linked to WBS Element Sales & Distribution (SD)

Cost Planning in Easy Cost Planning

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8.1 Proposed Process Flow Chart

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8.2 Proposed Process Flow Description

Provide complete details of the proposed process description.

Process Steps involved in the Proposed Process Definition

8.3 Integration with other Modules

Step No Description Integrated with module

2, 4 Purchase Requisition Process Material Management (MM)

3, 5 Document Info Records Document management System (DMS)

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9.1 Proposed Process Flow Chart

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Provide complete details of the proposed process description.

Process Steps involved in the Proposed Process Definition

9.3 Integration with other Modules

Step No Description Integrated with module

1-3 Document Info Records Document management System (DMS)

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10.1 Proposed Process Flow Chart

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10.2 Proposed Process Flow Description

Provide complete details of the proposed process description.

Process Steps involved in the Proposed Process Definition

10.3 Integration with other Modules

Step No Description Integrated with module

1-3 Material Reservation Process Material Management (MM)

4-6 Purchase Requisition Process Material Management (MM)

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