Sales and Distribution SCOPE

RCL Construction Division

 Document Information
Title Sales and Distribution
Owner
Contact

Version control :

Date Version Author Notes

RCL CD SD SCOPE Page 2

Document Distribution :

Name Role

RCL CD SD SCOPE Page 3

1. EXECUTIVE SUMMARY ............................................................................................................................. 6

1.1 ABOUT RCL CONSTRUCTION DIVISION ........................................................................................................ 6

1.2 OBJECTIVE OF THIS REPORT ........................................................................................................................... 6
1.3 STRUCTURE OF THE DOCUMENT ..................................................................................................................... 7
1.4 ORGANIZATION OVERVIEW ...................................................................................................................................... 7
1.5 OVERVIEW OF SALES AND DISTRIBUTION MODULE: ...................................................................................................... 8

2. ORGANIZATIONAL ELEMENTS ............................................................................................................ 9

2.1 SALES AREA ........................................................................................................................................................ 10

2.1.1 Sales Organization .................................................................................................................................. 11
2.1.2 Distribution Channel ............................................................................................................................... 12
2.1.3 Division .................................................................................................................................................... 12
2.1.4 Sales Office .............................................................................................................................................. 13
2.1.5 Sales Group ............................................................................................................................................. 13
2.2 PLANT ............................................................................................................................................................... 13
2.3 SHIPPING POINT .................................................................................................................................................. 14

3. MASTER DATA .......................................................................................................................................... 15

3.1 CUSTOMERS ................................................................................................................................................... 15

3.1.1 Customer Account Groups ............................................................................................................ 16
3.1.2 Customer Partner Function ........................................................................................................... 17
3.1.3 Payment Terms ................................................................................................................................. 17
3.2 MATERIAL MASTER (SERVICE MATERIALS)................................................................................................. 18
3.3 MODEL SERVICE SPECIFICATION ................................................................................................................. 18
3.3.1 Bill of Services ......................................................................................................................................... 19
3.5 COSTING TEMPLATE ...................................................................................................................................... 20
3.6 PRICING .......................................................................................................................................................... 22
3.6.1 Condition Type ........................................................................................................................................ 23
3.7 REJECTION REASON FOR INQUIRY ............................................................................................................... 23
3.8 USER STATUS FOR INQUIRY ......................................................................................................................... 24
3.9 REJECTION REASON FOR QUOTATION ......................................................................................................... 25
3.10 USER STATUS FOR QUOTATION ............................................................................................................... 25

4. SALES AND DISTRIBUTION PROCESSES ..................................................................................... 28

4.1 PC_SD_001 – SALES MASTER DATA........................................................................................................ 28

4.1.1 Customer Master .................................................................................................................................... 29
4.1.2 Bill of Services ......................................................................................................................................... 29
4.1.3 Costing Template .................................................................................................................................... 30
4.1.4 Pre-Requisite ........................................................................................................................................... 30
4.1.5 Business Considerations .......................................................................................................................... 30
4.1.6 Gaps / Issues Identified ........................................................................................................................... 30
4.1.7 Developments / Reports.......................................................................................................................... 30

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 4.1.8 Roles and Authorizations........................................................................................................................ 30
4.2 PC_SD_002 – TENDERING PROCESS.................................................................................... 31
4.2.1 Pre-Qualification.................................................................................................................................... 31
4.2.2 Inquiry Logging....................................................................................................................................... 32
4.2.3 Quotation Processing............................................................................................................................. 32
4.2.4 Pre-Requisite.......................................................................................................................................... 33
4.2.5 Business Considerations......................................................................................................................... 33
4.2.6 Gaps / Issues Identified.......................................................................................................................... 34
4.2.7 Developments / Reports......................................................................................................................... 34
4.2.8 Roles and Authorizations........................................................................................................................ 34
4.3 PC_SD_003 – CONTRACT AWARD....................................................................................... 35
4.3.1 Lump Sum Contract with Milestone Billing............................................................................................. 35
4.3.2 Lump Sum Contract with Progressive Billing.......................................................................................... 36
4.3.3 Unit Rate Contract with Re-measurable Billing...................................................................................... 37
4.3.4 Cost Plus Contract with Resource Related Billing................................................................................... 38
4.3.5 Pre-Requisite.......................................................................................................................................... 39
4.3.6 Business Considerations......................................................................................................................... 39
4.3.7 Gaps / Issues Identified.......................................................................................................................... 40
4.3.8 Developments / Reports......................................................................................................................... 40
4.3.9 Roles and Authorizations........................................................................................................................ 40
4.3.10 Project Period End Closing...................................................................................................................... 40
5. INFORMATION SYSTEM.................................................................................... 44
6. DATA MIGRATION STRATEGY........................................................................... 45
7. LIST OF T-CODES............................................................................................ 46
8. ABBREVIATIONS.............................................................................................. 47
9. APPENDIX....................................................................................................... 48
A. TASKS, ACTION POINTS, DECISIONS TAKEN/TO BE TAKEN............................................................ 48
B. LEGENDS OF BUSINESS PROCESS FLOW CHART....................................................................... 49
C. BUSINESS PROCESS MASTER LIST CODES.............................................................................. 50
ADDENDUM........................................................................................................ 51

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1. Executive Summary
The Purpose of the Sales and Distribution Scope, which is the main deliverable of requirement
gathering Phase, is to serve as conceptual master plan for Project’s Commercial business
processes in RCL Construction Division.

This Scope has been developed by documenting all input gathered from the business team by
scheduling meetings and workshops with the Business Process owners and Core team users
from RCL CD as well as from cross modular meetings. This document shows the business
requirements for Project’s commercial activities such tendering, project billing etc. in detail,
and serves as the basis for organization, configuration and development activities.

1.1 About RCL Construction Division

Rezayat Construction, Maintenance and Engineering, a Division of Rezayat Company Limited,
provides construction, operation and maintenance services on installed plant and equipment
within offices, hospitals, housing, process plants, airports and other commercial and
residential properties.

The Division also includes a Building and Civil Engineering Section which is responsible for
turnkey construction projects. It also provides general support services to electromechanical
operation and maintenance works, including building work, carpentry, plumbing, L V electrical
systems, gardening, pest control, janitorial and cleaning services, and purchasing services.

From its prime operational centres in Al Khobar, Jubail and Riyadh, the Rezayat Construction,
Maintenance and Engineering Division is able to provide
construction/maintenance/engineering services throughout the Kingdom and can respond
effectively to emergency situations, rapidly deploying experienced engineering and support
personnel to site.

1.2 Objective of this Report

The Purpose of this Scope, which is the main deliverable of a Requirement gathering Phase, is
to serve as conceptual master plan for the implementation of Sales and Distribution module of
SAP in RCL CD.

This Scope has been developed by documenting all inputs gathered from the core team by
scheduling meetings and workshops. The document shows the business requirements in
detail, and serves as the basis for organization, configuration and development in SAP.

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During the course of this phase of the assignment, consultants held business process
workshop for the business team to discuss and deliberate the business requirements for
respective functional areas. The objectives of the workshops were to discuss the following
aspects of each business process and to define the requirements in detail:

 Business Process

 Expectations/ Improvements

 Reporting/Information requirements

During the workshops, the business team was acquainted with the capabilities and
functionality of the SAP solution.

The purpose of this document

 Confirm the understanding of the business process and scenario, which would form the
basis for system specifications
 List requirements which cannot be addressed by the system
 Form the basis for all subsequent activities to be conducted during the project

This document covers only an Overview of the to-be processes. The exact data on master data
fields, their statuses, order types – if not identified in scope, number ranges if not identified -
used in individual transactions shall be determined during the Realization phase

1.3 Structure of the Document

The document provides an overview of Project’s commercial activities in RCL CD. This would
help in defining the boundaries of the Sales and Distribution module and also in identifying the
activities to be performed within Sales and Distribution Module in SAP. Subsequently, the
report discusses in detail, the proposed coverage of SAP at Rezayat Group, in terms of
organizational entities and business processes. This document captures in detail the
processes and the conditions associated to the extent it has been discussed.

1.4 Organization Overview

RCL Construction Division is a division of Rezayat Company Ltd (RCL), provides construction,
operation and maintenance services on installed plant and equipment within offices, hospitals,
housing, process plants, airports and other commercial and residential properties.

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 REZAYAT
GROUP

RCL NCC

RCL-CD RCL MD

1.5 Overview of Sales and Distribution Module:

The Sales and Distribution Module caters to the business processes associated with customer
order fulfillment. SD has several components offering diverse functionality. The Sales and
Distribution (SAP SD) consists of all master data, system configuration, and transactions to
complete the Order to Cash process. The main operations of this module are customer inquiry
logging, preparing quotation for customers, Customer Sales Orders Processing, Pricing, and
Billing.

This module is integrated with Project System (PS), Financial accounting (FI), Controlling (CO)
and Material Management (MM).

In RCL CD SD will be used to map the following processes for Project Sales

a) Prequalification
b) Inquiry Logging
c) Estimation and quotation preparation
d) Sales order processing
e) Project Billing

Bill of services will be used to map estimation process and quotation preparation process.
Once the contract is awarded the same Bill of Service will be used to map unit rate contract
process and also to map progressive billing based on the BOQ quantities.

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2. Organizational Elements

Organizational structures in SAP represent the organizational views of an enterprise in various

areas. Organizational structures are defined based on the business processes. The
organizational structure forms a framework that supports all business processes and activities.

Sales and Distribution is a component within the SAP that enables the Sales Process within
SAP System. In sales and distribution module, organization entities are important as it is a
platform for creation of master data, transaction data, SD reporting. The standard application
is set to control accessibility at sales organization, division level etc i.e. user assigned to one
organization structure will not be able to access data of another if the relevant rights are not
granted.

Controlling Area
REZ1
REZAYAT GROUP

Company Code
1041
RCL CD

Plant Sales Organization Plant Plant

3041 1041 1041 2041
RCL ICC - KHOBAR RCL CD RCL CD - JUBAIL RCL CD - YANBU

Shipping Point Shipping Point Shipping Point

3041 1041 2041
RCL ICC - KHOBAR RCL CD - JUBAIL RCL CD - YANBU

The Organization Elements applicable for Sales and Distribution Module are:

1. Sales Organization
2. Distribution Channel

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 3. Division
4. Sales office
5. Sales Group

These organization elements are required in Sales and distribution to understand the
organization / division that is rendering the products or services to the customer. To capture
the revenue to be received at the company level, sales organization and division plays a vital
role.

2.1 Sales Area

All valid combinations of Sales Organization / Distribution Channel / Division / Sales Office /
Sales Group are termed as Sales Areas in SAP. Every sales transaction (sales/services) always
takes place in a Sales Area. Each customer, with whom business is transacted, must be
maintained in that specific sales area.

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 SALES AREA

SALES ORGANIZATION

1041 RCL CD

DISTRIBUTION CHANNEL

01 GOVERNMENT
02 QUASI GOVERMENT
03 PRIVATE COMPANY
04 INDIVIDUAL (Private No CR)
05 AFFILIATES / INTERCOMPANY

DIVISION

57. Maintenance Services 61. Building Maintenance Services

58. Garage Services 65. Commercial & Residential Projects
59. Short Term Projects 66. Housing Maintenance Services
60. Industrial Projects 67. Janitorial & Chauffeuring Services

SALES OFFICE

1041 RCL CD – JUBAIL

2041 RCL CD – YANBU
3041 RCL ICC - KHOBAR

2.1.1 Sales Organization

A sales organization is the central entity in Sales & Distribution and is responsible for the sale
and distribution of goods and services. It represents the selling unit as a legal entity. It is
responsible for product guarantees and other rights to recourse, for example. Each business
transaction is processed within a sales organization.
A sales organization has its own specific data related to:

 Customer Master

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  Pricing
 Sales views of the material master

Each sales organization is assigned exactly one company code. This way, the system derives
the company code for each accounting transaction originating from Sales. Below mentioned
Sales organization shall be created for RCL CD. The sales organization must be specified in all
sales documents. Following sales organizations will be defined in the SAP system:

Sales Sales Organization Company Code

Organization Name Assigned
1041 RCL – CD 1041

2.1.2 Distribution Channel

It is the channel through which saleable materials or services are sold to the customers. The
distribution channel can also be viewed as segmentation of an organization’s customer base,
important from an analytical and control standpoint. A distribution channel is assigned to
multiple Sales Organizations.

The following distribution channels have been proposed for RCL CD, and those will be linked to
the following Sales Organization:

Distribution Name of Distribution Sales

Channel Channels Organization
01 Government 1041
02 Quasi Government 1041
03 Private Company 1041
04 Individual (Private- No CR) 1041
05 Affiliates / Intercompany 1041

2.1.3 Division
This entity normally groups together saleable materials and services for the purpose of
responsibility and analysis.
The division is used for control and analysis purpose and can be assigned to multiple sales
organizations. The divisions will be assigned to the Sales Organizations engaged in relevant
business.
The following Divisions shall be defined for RCL CD:
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 Sales
Division Name of the Division
Organization
1041
57 Maintenance Services
1041
58 Garage Services
1041
59 Short Term Projects
1041
60 Industrial Projects
1041
61 Building Maintenance Services
Commercial & Residential 1041
65
Projects
1041
66 Housing Maintenance Services
Janitorial & Chauffeuring 1041
67
Services

2.1.4 Sales Office

A Sales Office is an organizational unit that has responsibility for the sale of certain products
or services in a particular geographic region. This refers to what is known as ‘branches’ in the
present terminology. The following sales offices will be created for RCL CD:

Sales Sales
Name of the Sales Office
Office Organization
1041 RCL CD – JUBAIL 1041
2041 RCL CD – YANBU 1041
3041 RCL ICC – KHOBAR 1041

2.1.5 Sales Group

Sales Group represents a group of individuals in an office that are responsible for carrying out
the sales function. We can also map individuals to sales groups for easy identification.

The Sales Group will not be used by RCL CD as it is not required to map individuals who is
responsible for the sales.

2.2 Plant
An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and
materials planning aspects. It is a place where either material is produced or goods and services are provided.
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Further details are covered under MM Module Blue Print.

2.3 Shipping Point

Shipping point is the Organizational unit in Logistics which carries out shipping processing.
The shipping point is the part of the company responsible for the type of shipping, the
necessary shipping materials and the means of transport.

Shipping Point is the key organization unit for delivering from sales and distribution module.
Any delivery from the respective plants to other companies will be through the Shipping point
defined for the plant.

The following shipping point will be created in the system for RCL CD as a technical
requirement, as the shipping point is mainly applicable for trading business.

Shipping Point Name of the Shipping Points Plant

1041 RCL – CD – Jubail 1041

2041 RCL – CD – Yanbu 2041

3041 RCL – ICC – Jubail 3041

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3. Master Data

Master data is the data about customers, products and services that remains constant over a
period of time. This data is carefully maintained by a responsible person in the organization
and forms the basis of all transactions.

Master data forms the basis of sales and distribution processing. Precisely maintained and
classified master data considerably simplifies and accelerates the operative processing in
daily business. A large amount of data is copied from the master records during business
transaction processing. The sales related masters to be maintained for Rezayat Project Sales
are:

• Customers
• Service Materials
• Bill of Services
• Costing Templates

The following system settings also will be maintained for Rezayat Project Sales:-

 Rejection Reason for Inquiry

 User Status for Inquiry
 Rejection Reason for Quotation
 User Status for Quotation

3.1 Customers

The system would regard any business partner or consumer in the Sales Cycle as a Customer.
Customer master is the central entity for Customer Order Management Cycle in the system.
Customer in SAP can denote different kinds of customers. The extent of information captured
for each type of customer would vary as per requirements.

In SAP, a customer would be identified with the help of a unique customer code and captures
all information about the customer. The customer master would capture information at various
levels like name and address, payment terms, banking details, accounting data (such as the
GL account to be utilized for the customers transactions), the sales office responsible for the
customer, terms of delivery, customer classification parameters etc. It is

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recommended that the customer master be administered centrally. This would help in having
a central control in creation of new customers for the whole company. The creation of
duplicate customers in the system would be eliminated.

All the business related information on customers is stored in the customer master. The
customer has the following views:

General Data: Data related to name, address, telephones, contact persons, industry details,
etc., which remain constant for a customer across organization elements in SAP.

Company Code Data: Data used in FI, such as the reconciliation account number, sort key,
etc., which remains constant for a company code. Ownership of this data is mainly with the
Accounting function.

Sales Area Data: Data used in SD, such as the indicator for pricing procedure, tax
classification, account assignment group, partner determination, statistical update group (for
updating Information System). For each customer, this data is to be maintained separately for
each sales area. However, each customer will be maintained in for the sales organization /
Distribution channel / Division. This will minimize the master data maintenance effort. At
transaction level the user will choose the correct sales area for the document.

3.1.1 Customer Account Groups

Account groups control the following functions of the customer master:

 Number Range
 Field Selection- Fields present for data entry in the customer master

The following account groups for customers will be maintained in the system for Rezayat
Project Sales

 Z001: Customers, with whom Rezayat has ongoing business or first time business. For
this account type, all three segments of the master (General, Accounting and Sales
Area) will be maintained.
 Z002: Prospects, from whom Rezayat is soliciting business, but no transaction has
taken place. It possible to record an inquiry from a prospect and send quotations. No
Company Code (accounting) data will be maintained for this account. It is necessary to
change the account group and maintain the Company Code data for the account
before recording any order from that customer.

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  Z003: One-time customer or cash customer. All the cash customers will be serviced
through this account – applies to sale from services only.
 Z999: Intercompany :- All the affiliates will be created as customer under this group to
handle intercompany transactions. All the group companies will be serviced through
this account.

The account groups will share a common, internally generated number range across the entire
organization.

3.1.2 Customer Partner Function

The component Partner Determination in Sales and Distribution enables to display the
partners involved in the business transaction, their functions and their business relationships
in the SAP system. When creating or processing sales documents, the system can determine
the partners automatically. Partner functions are classified using partner types. Partner types
enable general scheduling of partner functions in creditors, customers, personnel and contact
persons.

The following partner functions shall be used in case of Rezayat Project Sales:

 Sold-to Party (Main customer)

 Ship-to Party (Goods recipient)
 Payer (Agency making the payment)
 Bill-to Party (Agency receiving the invoice)

It is advisable to maintain these relationships in the customer master itself so that the data is
automatically available in sales documents. The default partner determination can be
overwritten at transaction stage.

3.1.3 Payment Terms

Terms of payment provide information for:

 Cash management
 Dunning procedures
 Payment transactions

In most business transactions, the system defaults the key specified in the master record of
the customer in question. Regardless of whether or not a key is defaulted from the master
record, you can manually enter a key during document entry.

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The following payment terms are used:

 100% Advance with order

 100% Advance with order against Advance BG
 30 Days Net from the date of invoice
 60 Days Net from the date of invoice
 90 Days Net from the date of invoice
 120 Days Net from the date of invoice
 LC at site – 30 days from delivery / Bill of Lading
 LC at site – 60 days from delivery / Bill of Lading
 LC at site – 90 days from delivery / Bill of Lading
 LC at site – 120 days from delivery / Bill of Lading
 Payment at site – against shipping documents

Additional Payment terms for Sales order will be created before go live as per the sales orders
to be taken into SAP

3.2 Material Master (Service Materials)

Material master represents the goods and services which are offered to customers. All
materials relevant for sales should have their sales area data maintained. The sales area
controls the sales relevant parameters for sales transaction processing and relevant
reporting aspects. The Material types are defined as per the number ranges, master data
parameters and inventory behaviors.

Material master data is critical for doing the sales transaction. Sales are booked either for sale
of product or for the sale of the services, for which in SAP a material is required.

Further details of Material Master have been covered under MM Module Blue Print.

3.3 Model Service Specification

Model service specification is a collection of services, the associated descriptions, plus pricing
and quantity data. A set of model service specifications serves as a template for creating
further specifications. Model service specifications count as master records within External
Services Management.

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To make voluminous specifications easier to handle, we can structure them hierarchically
using the outline function in the model service specification. The outline is comparable to the
table of contents of a book. The uppermost level of the specifications always shows the short
text for the document item. You can create the outline below this. A maximum of four
hierarchy levels is possible. Outline levels are used to develop the hierarchy. You can change
the number, the short text, and the long text of the outline levels at any time. You can assign
any number of service lines to each outline level.

RCL CD will create Model service Specification to map customer bill of quantities in the
system. Present Quotation number will be used to create the model service specifications. The
outline will represent the structure of customer’s BOQ and all the required service lines will be
copied from the customer BOQ. The Model service specification created will be used as Bill of
Services in the sales document and also for estimation.

3.3.1 Bill of Services

A Bill of Services is a catalogue of services. It is a grouping of services and their qualitative
and quantitative descriptions.

Bills of services play an important and central role for numerous business processes in the
engineering and construction industry. On the debit side, BOS are fully integrated in the sales
and distribution (SD) process. The customer BOS forms the basis for describing the services to
be performed in sales documents. Cost planning, sales price determination, and billing are

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carried out on this basis. On the credit-side, BOS are completely integrated into the
purchasing process. BOS are fully integrated into the sales and distribution process. They are
also integrated with the components Project System (PS), Financial Accounting (FI) and
Controlling (CO).

The BOS structure allows you to describe services completely. A service line describes an
individual service. You can structure a BOS by using an outline layout structured according to
construction stages. You have several options for creating and editing a customer BOS. When
creating bills of services with extensive specifications, you do not need to repeatedly enter the
services on a manual basis. Instead, you can easily copy them from existing service master
data, using the reference technique and the selection function.

3.5 Costing Template

Easy cost planning functionality will be used to create costing templates. ECP is used at
service level within BOS in sales. ECP uses templates (costing models). A template is a model
for the estimation of a service, which can be used repeatedly.

Easy Cost Planning enables you to quickly calculate planned costs in the SAP System. You
establish a representation of the structure of planning objects in the system. These can then
be used as planning forms by all cost planners. Easy Cost Planning is therefore particularly
efficient when more than one person in your organization plans costs, or when you frequently
plan costs in a similar way.

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If you want to use a planning form for the cost estimate, you must have already defined the
planning form in the system.

You create a costing model that contains the cost factors of a planning object and that
represents the planner’s point of view. You can structure the planning object. It is also
possible to divide up related cost factors into separate costing models. You then merge these
costing models into one large costing model at the end. This helps even large planning objects
remain manageable, and enables you to reuse the smaller costing models.

The planner uses the costing model as a planning form. The use of this planning form ensures
that all of the relevant cost factors are included, helping you to avoid errors.

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To plan the costs, the planner quantifies the cost factors. The use of planning forms enables
the costs to automatically be translated into data for unit costing: the system generates the
costing items of the unit cost estimate and costs them.

The planning object can be structured whichever way the planner chooses, and the
substructures that the user defines can be costed separately.

You can define the entry screen in accordance with your individual requirements for each
planning form. It is automatically generated in HTML format, and you can modify it in various
ways. You can also insert information in the form of explanatory text. The entry screen
includes a field where planners can enter comments for themselves or for other users who
need to analyze the cost estimate. These comments are saved together with the entries for
the cost estimate.

RCL CD will prepare costing templates to do costing for service line items.

3.6 Pricing
The term pricing is used broadly to describe the calculation of prices and costs. Conditions
represent a set of circumstances that apply when a price is calculated. The condition
technique refers to the method by which the system determines prices from information
stored in condition records. In Sales and Distribution, the various elements used in the
condition technique are set up and controlled in Customizing. During sales order processing,

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the system uses the condition technique to determine a variety of important pricing
information.

3.6.1 Condition Type

A condition type is a representation in the system of some aspect of your daily pricing
activities. For example, you can define a different condition type for each kind of price,
discount or surcharge that occurs in your business transactions. Price elements are
represented by condition types in SAP system.

The below condition type will be created for project billing.

Condition Type Description

ZPR0 Price

AZWR Down Payment Adjustment

ZRET Project Retention

ZOTH Other Deductions

3.7 Rejection Reason for Inquiry

The reason for rejecting an Inquiry can be maintained to close the inquiry documents. The
rejection can come from the organization or from the customer.

The following Rejection Reason will be created in the system for closing the Inquiry
Documents.

Rejection Reason Description

I1 OUT OF SCOPE

I2 UNREALISTIC DATE OF SUBMISSION

I3 Non availability of resources.

I4 Unacceptable Client.

I5 Unfavorable location of project site.

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 I6 Insufficient information provided with
enquiry.

3.8 User Status for Inquiry

A status set by the user to complement the system status for a given status object. You can
use only a user status belonging to a status profile and assigned to the relevant status object.
User statuses enable you to extend the control of business processes managed by the system
status. You can set and delete user statuses manually when carrying out business
transactions.

A status is an indicator that fulfills two functions. First, it informs you that a particular status
has been reached. Second, it influences the business transactions you can perform for a
particular status. A status can allow a business transaction; allow a business transaction but
issue a warning message; or prohibit a business transaction altogether. If a warning message
is issued it is up to the user whether the business transaction is carried out or not.

Statuses can be used to control and communicate. Statuses can be used in reporting.
Statuses can be used as selection criteria. Statuses can communicate the state of an object.

Two User Status profile will be created for REZAYAT GROUP for assigning to Inquiry Document.
One User Status Profile on Inquiry Header level for communicating the current status of the
Inquiry Document. The second User Status profile on Inquiry Item Level for controlling to
record the review and approval process.

 Header Status

Status Description

CRTD Created

UNRW Under Review

CLRD Clarification Requested

DTQT Decided to Quote

 Item Status

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 Status Description

CRTD Created

APRV Approved

RJCT Rejected

CRTN Correction Required

3.9 Rejection Reason for Quotation

The reason for rejecting a Quotation can be maintained to close the Quotation documents.
The rejection can come from the organization or from the customer.

The following Rejection Reason will be created in the system for closing the Quotation
Documents.

Rejection Reason Description

Q1 TECHNICAL BID REJECTED

Q2 COMMERCIALLY NOT SUCCESSFUL

Q3 PROJECT ON HOLD

Q4 DUE TO DELETION OF SCOPE

3.10 User Status for Quotation

A status set by the user to complement the system status for a given status object. You can
use only a user status belonging to a status profile and assigned to the relevant status object.
User statuses enable you to extend the control of business processes managed by the system
status. You can set and delete user statuses manually when carrying out business
transactions.

A status is an indicator that fulfills two functions. First, it informs you that a particular status has been reached.
Second, it influences the business transactions you can perform for a particular status. A status can allow a business
transaction; allow a business transaction but

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issue a warning message; or prohibit a business transaction altogether. If a warning message
is issued it is up to the user whether the business transaction is carried out or not.

Statuses can be used to control and communicate. Statuses can be used in reporting.
Statuses can be used as selection criteria. Statuses can communicate the state of an object.

Two User Status profile will be created for REZAYAT GROUP for assigning to Quotation
Document. One User Status Profile on Quotation Header level for communicating the current
status of the Quotation Document. The second User Status profile on Quotation Item Level for
controlling to record the review and approval process.

 Header Status

Status Description

CRTD Created

ESTN Estimation in Progress

MGRV Management Review

SBMT Submitted

CLEV Under Client Evaluation

OHLD On Hold

RQTS Revised Quotation to be Submitted

AWRD Contract Awarded

LOST Lost the Bid

 Item Status

Status Description

CRTD Created

APRV Approved

RJCT Rejected

RCL CD SD SCOPE Page 26

 CRTN Correction Required

User status for approval need to be created more depends on the approval matrix to record
the review and approval by different authority.

RCL CD SD SCOPE Page 27

4. Sales and Distribution Processes

Sales & Distribution (SD) is the authorized legal arm of the company to do transaction with the
Customer. In RCL CD, Sales& Distribution can be divided into Pre sales activity, Sales Orders,
and Billing.

Sales & Distribution Module of SAP communicates with other modules in the SAP System to
ensure a constant flow of information. Sales processes will be integrated with Financial
Accounting (FI), Controlling (CO), Materials Management (MM) and Project System (PS).

RCL CD handles many projects. In order to capture the revenue for the project executed and
for collections related to projects SAP Sales and distribution module is used. Sales and
distribution module is helpful for order management and finance interface. It is also required
to update the receivables from client and for outstanding collection. It can be integrated with
PS module to update the planned and actual revenue for project work effectively.

Sales and distribution processes for RCL CD are broadly classified as follows:-

 PC_SD_001 – Sales Master Data

 PC_SD_002 – Tendering Process
 PC_SD_003 – Contract Award

4.1 PC_SD_001 – Sales Master Data

The Process of maintaining master data is essential for the smooth operation of the Business
function in Rezaayt. The following master data which RCL CD frequently uses for its business
transaction.

 A record for each Customer is required to be created for smooth business function. The
details of the Customer need to be recorded while creating a new Customer.
 All the details regarding the Customer address, telephone number etc need to be
recorded for ready reference.
 The service material needs to be created which are to be maintained in the sales
documents.
 Service Master needs to be created to prepare customer BOQ Line items
 Bill of Services will be created to maintain customer BOQ in the system
 Costing Template for Estimation

RCL CD SD SCOPE Page 28

4.1.1 Customer Master
The customer master would capture information at various levels like name and address,
payment terms, banking details, accounting data (Reconciliation account, payment term),
terms of delivery, Customer group, account group of customers etc. It is recommended that
the customer master be administered centrally. This would help in having a central control in
creation of new customers for the whole company. The creation of duplicate customers in the
system would be eliminated.

 RCL CD Project uses Sales and distribution module to handle project related pre-sales
and sales activities. In order to record these processes in SAP master data needs to be
maintained prior to executing the transactions.
 Master Data Team will create the Customer Master data in the system based on the
input received from concerned department.
 The flow chart also shows the roles and responsibility related to customer master
creation and change.
 All finance related Customer Account details like reconciliation account, payment terms
will be integrated with finance. For every account group one reconciliation account will
be maintained.

4.1.2 Bill of Services

Estimation department will create Bill of services as per Customer BOQ for estimation and
quotation purpose. The same data can be used by Project department for Sales Order
creation. Creation of Bill of services consists of two master creations, one is service master
and the other is Model Service Specification. The Bill of Services master creation process will
happen as shown in the flow chart attached in the Addendum.

 Service master will be created after verifying the BOQ line items for those masters
which are missing
 Master data team creates the master data and it will be verified by the master data
verification team or the team who is going to use the master data.
 Model service specification will be created to represent the client BOQ in the system
by structuring the service masters as BOQ line items.
 Model Service Specification created also will be verified before using it in the sales
documents.

RCL CD SD SCOPE Page 29

4.1.3 Costing Template
Estimation department will create costing models as costing template through Easy cost
planning templates. The template created will be used as planning for costing Bill of Services
in the quotation based on the estimation. Easy cost planning Model consist of material data as
well as activity type rates to do the costing. These details have to be available in the system
for creating costing models. The Costing Template creation process will happen as shown in
the flow chart attached in the Addendum.

4.1.4 Pre-Requisite
 Customer Account Group, Reconciliation account, sort key etc.

 Service Group, Unit of Measurement, Service Category, Valuation Class for Services.

 Material Master records, Activity Type and Activity Type rates.

4.1.5 Business Considerations

 If RCL Maintenance Division Decides to buy RIB software for Estimation then some of
the above mentioned master data are not required in SAP.

 Consultant will complete the configuration in system to use all the functionality
mentioned in the document.

4.1.6 Gaps / Issues Identified

 Gap identified to handle quotation specific material cost for valuation variant in the
costing template.
 Gap identified to add additional fields in the service master.

4.1.7 Developments / Reports

 Custom Transaction required to upload Service Master from Excel sheet.

 Custom Transaction required to upload Model Service Specification from Excel

sheet.

 Custom Table Required to maintain Material cost per quotation to fetch material
value in valuation variant.

4.1.8 Roles and Authorizations

Activity Role Transaction Org. Element

Create / Change Master Data VD01 / VD02 Sales Org. 1041

Customer Master Sales Administrator

RCL CD SD SCOPE Page 30

 Data

Change / Display Master Data VD02 / VD03 Sales Org. 1041

Customer Master Sales Administrator
Data

Change / Display Estimation AC03 Service Category

Service Master Manager

Create / Change Model Estimation ML10, ML11 Service Category

Service Specification Engineer

Create / Change Costing Estimation CKCM Object : Bill of

Model Engineer Services

4.2 PC_SD_002 – Tendering Process

Tendering is the process of making an offer, bid or proposal, or expressing interest in
response to an invitation or request for quotation. Tender request documents; also referred to
as Requests For Quotation (RFQ) or Requests for Proposal (RFP), outline what is required, that
is, what the requesting organization’s needs are. These documents also outline the particular
requirements, criteria, and instructions that are to be followed.

The following processes covers under Tendering Process in RCL Construction Division:-

1 Pre-Qualification
2 Inquiry Logging
3 Quotation Processing

4.2.1 Pre-Qualification
Pre-qualification is a process whereby a Customer takes information from RCL Construction
Divisions and makes a tentative assessment. Prequalification is a process by itself, where in
client says there is a prospect of tender and ask for a kind of job done. RCL cnstruction
division shall prove for qualification by submitting necessary documents. Upon reviewing
these documents by the client and prequalification reward, the client will send the inquiry.

The overall Pre-qualification process will happen as shown in the flow Chart attached in the
Addendum.

RCL CD SD SCOPE Page 31

  Once the requirement for submitting pre-qualification receives prepares the
documents to be submitted for pre-qualification.
 Creates a pre-qualification document in the system.
 Create a DMS document for the pre-qualification submittal in the system.
 Approves the pre-qualification submittal in the system by setting the approve status
on the DMS document.
 If client approves the pre-qualification then it will be used for inquiry logging process.
 If the client rejects pre-qualification then the pre-qualification documents will be closed
in the system by mentioning the rejection reason.

4.2.2 Inquiry Logging

Inquiry logging is done in RCL Construction Divisions to record the inquiries received from
different clients on different kinds of Jobs. At a later stage received inquiries can be analyzed
for Managements decision making.

The inquiry logging process will happen as shown in the flow Chart attached in the
Addendum.

 The inquiry from customers will be received either through fax or email.
 Once the inquiry is received estimation will create inquiry document in the system.
 While creating the inquiry the tender number mentioned in inquiry will be
maintained as the PO number in the inquiry document and the PO date field will be
used to indicate the inquiry received date.
 Estimation will analyze the inquiry then will discuss with higher management to take
quote no quote decision.
 If the higher management decision is to no quote then estimation will close the inquiry
document by maintaining inquiry rejection reason for future analysis.
 If the higher management decision is to quote for the inquiry then estimation will
arrange to purchase the bid document.

4.2.3 Quotation Processing

The quotation processing will happen as shown in the flow chart attached in the Addendum.

 Quotation processing starts upon receipt of the bid package.

 Estimation will conduct a preliminary review of Tender documents.
 Engineering / Design will also conduct a preliminary review of Tender Documents.
 Based on the preliminary review management will take bid no bid decision.
 If the decision is to bid then design / engineering will prepare a preliminary design.

RCL CD SD SCOPE Page 32

  If the design already given by the client then engineering will only conduct the
quantity take off.
 Based on the preliminary review estimation will get technical / commercial
clarifications from the client.
 Estimation will send RFQ to vendors for quotation.
 Estimation will review the Vendor’s quotation and choose the best offer.
 Engineering / Design will optimize the design.
 Engineering and Estimation together will prepare the technical proposal and which
will be submitted to the client.
 Technical proposal will be maintained in the DMS for future reference.
 Once the technical proposal has been submitted estimation will start
preparing commercial proposal.
 A quotation document will be created in the system.
 Client BOQ will be copied in the quotation document as Bill of Services.
 Costing will carry-out on each line item of the client BOQ either in-house calculation or
cost from sub-contractor/vendor.
 After costing each line item will be reviewed and if any changes required those
line items will go for re-costing.
 After costing estimation will add overheads and margin and do the pricing.
 After pricing quotation document will be reviewed by management.
 If the prices are OK then bid bond will be arranged, if any changes required estimation
will carry-out the pricing changes.
 After bid bond the complete bid package will be submitted to client.

4.2.4 Pre-Requisite
 Customer Master, Material Master, Bill Of Services

 Costing Models as well as client’s BOQ created in the system.

 Material Master records, Activity Type and Activity Type rates.

4.2.5 Business Considerations

 If RCL Construction Division Decide to buy RIB software for Estimation then the above
mentioned quotation process not required in SAP.

 Consultant will complete the configuration in system to use all the functionality
mentioned in the document.

 Some of the processes shown as sequence in the flow chart may be executed parallel
with other processes.

RCL CD SD SCOPE Page 33

  Some of the Processes shown in the flow diagram may not be applicable for all the
projects especially small projects.

 Some of the processes shown in the flow diagram might repeat multiple times depend
on the nature of the project.

 Roles identified in the process flow diagram are indicative.

4.2.6 Gaps / Issues Identified

 Gap identified to handle vendor quotation comparison with multiple currencies.
 Gap identified to automate approved vendor cost into customer quotation.

4.2.7 Developments / Reports

 Custom Transaction required for vendor quote comparison.

 Custom Transaction required to automate approved vendor quote into customer

quotation costing

 Custom Report to list resources in the quotation.

 Custom Transaction to download customer quotation in excel after pricing.

4.2.8 Roles and Authorizations

Activity Role Transaction Org. Element

Create / Change / Estimation VA11 / VA12 / Sales Org. 1041

Display Inquiry VA13

Change / Display Inquiry Management VA12 / VA13 Sales Org. 1041

Create / Change / Estimation VA21 / VA22 / Sales Org. 1041

Display Quotation VA23

Change / Display Management VA22 / VA23 Sales Org. 1041

Quotation

Create / Change / Engineering / CV01N, CV02N,

Display Document Design CV03N

RCL CD SD SCOPE Page 34

4.3 PC_SD_003 – Contract Award
Once a contract is awarded to RCL Construction Division, it is considered as initiation of a
Project. After receiving the order from client RCL CD split the handling of contract in to two
sections, one is commercial of the contract and the other is project execution. All the
commercial activities related to an awarded contract will be handled in Sales and Distribution
Module.

RCL CD handles the following types of contracts:-

1) Lump Sum Contract with Milestone Billing

2) Lump Sum Contract with Progressive Billing

3) Unit Rate Contract with Re-measurable Billing

4) Cost Plus Contract with Resource Related Billing

4.3.1 Lump Sum Contract with Milestone Billing

In Lump Sum contract with Milestone Billing where Client and Rezayat has agreed on a lump
sum for the execution of the contract on a billing plan with dates usually depending on the
achievement of Milestones in the Project.

The process flow for Lump Sum contract with milestone billing will happen as shown in the
flow chart attached in the Addendum.

 A project is created with a billing work breakdown structure (WBS) element. Network
and activities are also created. Define milestones for the billing plan which includes
the percentage value for billing amount of the contract value.
 A Customer order (Sales Order) is created with a material item that contains a service
specification. If the contract is a result of a tendering the customer order will be
created with reference to a customer quotation. Latest negotiation will be considered
in the customer order.
 The customer order item is linked to the project (billing WBS element) by the account
assignment of the customer order item. Hence the billing WBS element will be debited
with all revenues and down payments created due to the settlement (billing) of the
customer order. Defined milestones of the project are taken over to the billing plan of
the customer order item.
 After a part of the construction project has been completed the work can be
documented by confirming a network activity with an attached billing milestone. Due
to the confirmation of the network activity the milestone is reached and the block in
the assigned billing plan item is removed.

RCL CD SD SCOPE Page 35

  The Billing document is then created for all items without a billing block. Once the
billing documents have been created, they are transferred to Financial Accounting
automatically, and the corresponding FI documents are generated.
 The down payment adjustments as well as retention adjustments will be maintained in
the billing document before posting to accounts.
 The financial accounting transactions post the outgoing and incoming payments. The
posting can be done automatically or manually, depending on the transaction.

4.3.2 Lump Sum Contract with Progressive Billing

In Lump Sum contract with Progressive Billing where Client and Rezayat has agreed on a lump
sum for the execution of the contract on a billing plan with dates usually depending on the
progress of the work in every month.

The process flow for Lump Sum contract with progressive billing will happen as shown in the
flow chart attached in the Addendum.

 A project is created with a billing work breakdown structure (WBS) element. Network
and activities are also created.

 A Customer order (Sales Order) is created with a material item that contains a service
specification. If the contract is a result of a tendering the customer order will be
created with reference to a customer quotation. Latest negotiation will be considered
in the customer order.

 In the sales Order progressive billing plan will be maintained based on the planned
percentage of completion of the project on a monthly basis.

 After a part of the project execution has been completed the progress of the completed
/ client approved percentage will be informed from the site.

 The percentage of completion will be adjusted in the sales order if it varies from the
planned progress percentage. While adjusting the planned percentage of progress final
invoicing amount will be automatically adjusted in the sales order billing plan.

 The billing block in the sales order billing plan item will be manually removed.

RCL CD SD SCOPE Page 36

  The Billing document is then created for all items without a billing block. Once the
billing documents have been created, they are transferred to Financial Accounting
automatically, and the corresponding FI documents are generated.
 The down payment adjustments as well as retention adjustments will be maintained in
the billing document before posting to accounts.

 The financial accounting transactions post the outgoing and incoming payments. The
posting can be done automatically or manually, depending on the transaction.

4.3.3 Unit Rate Contract with Re-measurable Billing

In a unit rate contract, the work to be performed is broken into various parts, usually by BOQ,
and a fixed price is established for each unit of work. A minimum quantity of each work will be
mentioned in the contract where as the payment will be made based on the quantity take off
conducted during every month.

The process flow for unit rate contract with re-meaurable billing will happen as shown in the
flow chart attached in the Addendum.

 A project is created with a billing work breakdown structure (WBS) element. Network
and activities are also created.

 A Customer Order is created with a material item that contains a service specification
(Bill Of Services). If the contract is a result of a tendering the customer order will be
created with reference to a customer quotation. Latest negotiation will be considered
in the customer order.

 The customer order item is linked to the project (billing WBS element) by the account
assignment of the customer order item. Hence the billing WBS element will be debited
with all revenues and down payments created de to the settlement (billing) of the
customer order.

 The services that have been performed, planned and unplanned – are entered in the
service entry sheet (Quantity take-off based on the site measurement). After checking
the service entry sheet remove the billing block based on the client approved quantity.
The service entry sheet constitutes the basis for the billing process.

 A service entry sheet is created then the down payment request or invoice is
generated. Once the billing documents have been created, they are transferred to
Financial Accounting automatically, and the corresponding FI documents are
generated.

RCL CD SD SCOPE Page 37

  The down payment adjustments as well as retention adjustments will be maintained in
the billing document before posting to accounts.

 The financial accounting transactions post the outgoing and incoming payments. The
posting can be done automatically or manually, depending on the transaction.

4.3.4 Cost Plus Contract with Resource Related Billing

In many cases, the prices for customer-specific activities are neither stored in the form of
fixed prices nor calculated using standard pricing. This is because it may be the first time that
you are carrying out particular activities. This means that you have no reference values on
which to calculate a costing before you close the contract.

Orders of this kind are billed according to the resources consumed in executing them. In
resource-related billing, individual materials, internal company services and costs are passed
on to the customer. Billing requests during resource-related billing serve as the basis for
creating billing documents. You can create billing requests for customer orders, customer
projects and service orders. Items are created in the billing request on the basis of information
on the resources to be billed.

RCL CD will use resource related billing to address their maintenance service contract billing.

Cost Plus Contract with Resource Related Billing

Event

Contract
Start End
Details
Cost Budget

Controller

Create Sales Create Billing Change Debit Create Billing

Order Request Memo Request Document
Accounts Service Team
Customer

Carry-out
Create Service Book Material Book Equipment
Service Book Labor Costs
Order Costs Costs
Activities

Receive
Customer
Payment

 A Customer Service Order will be created as and when a maintenance request is

received from the customer.

 All the labor costs, material cost and equipment costs will be booked on the service
order.

RCL CD SD SCOPE Page 38

  A sales order will be created with a Dynamic Item Profile.

 Define which billing data is to be supplied and/or postponed. The system reads the
expenses (hours, travel expenses or third-party invoices) for the service order, and
uses the dynamic item processor to summarize these according to any criteria you
define here.

 The system determines a corresponding material, which has the character of a service
to be billed, for each dynamic item. The system uses these materials to create a billing
request (which is a sales document that is similar to the sales order), in which it also
performs pricing. The system will accept entries you make manually during pricing.

 The system uses fixed price billing to convert the billing request to a billing document
(the actual invoice document).

 Create billing document with reference to the billing request. Once the billing
documents have been created, they are transferred to Financial Accounting
automatically, and the corresponding FI documents are generated.

 Further details of Customer Service processing are covered under CS Module Scope.

4.3.5 Pre-Requisite
 Customer Master, Material Master, Bill Of Services

 Client’s BOQ created in the system.

 Monthly Billing Plan prepared.

 Dynamic Item Profile for Cost Plus Contract

4.3.6 Business Considerations

 Some of the processes shown as sequence in the flow chart may be executed parallel
with other processes.

 Some of the Processes shown in the flow diagram may not be applicable for all the
project divisions’ especially small projects.

 Some of the processes shown in the flow diagram might repeat multiple times depend
on the nature of the project.

 Roles identified in the process flow diagram are indicative.

RCL CD SD SCOPE Page 39

4.3.7 Gaps / Issues Identified
 Gap identified to handle customer supplied material reconciliation with BOQ progress
for unit rate contract billing.

4.3.8 Developments / Reports

 Enhancement to service master to record customer supplied material reference
for report generation.

 Custom report to compare customer supplied material with billed BOQ items.

4.3.9 Roles and Authorizations

Activity Role Transaction Org. Element

Create / Change / Project Sales VA01 / VA02 / Sales Org. 1012,

Display Sales Order VA03 1013, 1014, 1040,
1041

Display Sales Order Project Execution VA03 Sales Org. 1012,

1013, 1014, 1040,
1041

Create / Change/ Cost Budget VF01 / VF02 / Sales Org. 1012,

Display Billing Document Controller VF03 1013, 1014, 1040,
1041

Display Billing Document Project Execution VF03 Sales Org. 1012,

1013, 1014, 1040,
1041

4.3.10 Project Period End Closing

Period-end closing is the framework for carrying out period-related commercial transactions.
Period end closing is done to ensure that all the data belonging to a period is determined and
that data is available for enterprise controlling purposes. Result Analysis and Settlement
belongs to Project period end closing.

RCL CD SD SCOPE Page 40

Results Analysis is a periodic process that determines the costs and revenues for a period
based on planned costs and revenues and the Percentage Of Completion (POC). By comparing
these results with actual posting’s recorded previously in Financial Accounting, the analysis
provides a posting in Financial Accounting (WIP, reserves). Also, a few results can be posted to
Profitability Analysis to ensure that the period results in Financial Accounting are the same as
those recognized in Profitability Analysis.

Legend:
C(z) Work in progress C(r) Reserves for unrealized costs
R(z) Inventory, from which R(r) Revenue surplus (revenue can be generated)
R(p) Planned revenues C(p) Planned costs
R(a) Actual revenues C(a) Actual costs
R(c) Revenues affecting result C(c) Costs affecting result
POC Percentage of completion

Based on the Percentage of Completion calculated by the Revenue Proportion Valuation

Method, and based on the Planned /Actual cost & revenue, the system calculates, work in
process (WIP) or reserves for unrealized costs. WIP is calculated at WBS billing Element and
the calculated WIP will be capitalised through a debit entry to the WIP P/L account and a

RCL CD SD SCOPE Page 41

credit entry to the WIP Balance sheet account during Settlement. Once the WBS (Billing
Element) is technically complete (TECO), pending capitalized cost that is there in balance
account is posted back to profit & loss account as the project is technically completed. The
actual posting of values happens during final settlement for that period.

In REZAYAT Result Analysis will be calculated based on the Cost based POC method.

RCL CD SD SCOPE Page 42

The above figure shows an example of cost based Result Analysis.

After calculating Result Analysis Project will be settled to Profitability segment so that
profitability analysis for the project (with production order) can be analyzed in Controlling.
During settlement, actual posting of calculated WIP/reserves for unrealized cost happens as
per the posting rule. When WIP carrying object is Technically Completed (TECO), entries to
WIP P/L & Balance Sheet account are reversed.

Project Period End activities are covered under CO (Controlling) Module Scope.
Please refer CO Blue Print Point 4.4 for further details.

RCL CD SD SCOPE Page 43

5. Information System

It is proposed to use standard reporting in SAP. If any specific requirement arises during
realization will be considered later. Some of the Standard SAP report details given below.

Report Transaction Code

Customer wise Sales Summary VC/2
List of sales orders (all orders / only open orders) VA05
List of Incomplete Orders V.02
List of Sales orders blocked for billing V23
List of all invoices (customer wise /material wise) VF05
List of Invoices blocked for Accounting VFX3
Analysis of outstanding Customer FBL5N
Display Condition Records VK13
Credit Overview F.31
A/R Summary FCV1
Process Billing Due List VF04
Background Processing for Invoice VF06

RCL CD SD SCOPE Page 44

6. Data Migration Strategy
The following master data will be transferred to SAP through LSMW/BDC:
 Customer Master
 Material Master

 Service Master

RCL CD SD SCOPE Page 45

7. LIST OF T-CODES
VD01 – Create Customer Master

VD02 – Change Customer Master

VD03 – Display Customer Master

AC03 – Create Service Master

ML10 – Create Model Service Specification

ML11 – Change Model Service Specification

ML12 – Display Model Service Specification

CKCM – Create Costing Model

MMS1 – Create Material for Sales

MM02 – Change Material

MM03 – Display Material

VA11 – Create Inquiry

VA12 – Change Inquiry

VA13 – Display Inquiry

VA15 – Inquiry List

VA21 – Create Quotation

VA22 – Change Quotation

VA23 – Display Quotation

VA25 – Quotation List

VA01 – Create Sales Order

VA02 – Change Sales Order

VA03 – Display Sales Order

VA05 – Sales Order List

VF01 – Create Billing Document

VF02 – Change Billing Document

VF03 – Display Billing Document

VF04 – Billing Due List

VF11 – Cancel Billing Document

VFX3 – Release Billing Document

RCL CD SD SCOPE Page 46

8. Abbreviations

WBS - Work Breakdown Structure

DMS - Document Management System
PR - Purchase Requisition
PO - Purchase Order
RFQ - Request For Quotation
BOS - Bill of Services

RCL CD SD SCOPE Page 47

9. Appendix

A. Tasks, action points, decisions taken/to be taken

Action Points - Partner Action Points - Rezayat

List of Document Types for DMS, related to
Project Sales.
List of User Status for Quotation Header for
Management Approval through automated
workflow with Levels of approval required.
List of User Status for Quotation Item for
Expediting the document flow within
estimation and with customer.
List of Unit of measurements to be created in
the system with standard conversion factors.
List of Rejection reasons for Inquiry.
List of Rejection Reasons for Quotation.

RCL CD SD SCOPE Page 48

 B. Legends of Business Process Flow Chart

Symbol Description

Business Activity / Event:

Trigger Event
Identifies an action that either leads into or out of the scenario, or an
outside Process that happens during the scenario.

Unit Process:
Unit Business Identifies a task executed in SAP that is covered in a step-by-step
process
manner in the scenario.

Manual Process:
Manual Process Covers a task that is manually done

Predefined Process Reference:

Predefined
Process
If the scenario references another scenario in total, put the scenario
Reference number/ name here.

Flow line (solid):

Line indicates the normal sequence of steps and direction of flow in
the scenario.

End Process:
End Process Represents end of process.

Documents
Hardcopy / Document:
Identifies a printed document, report, or form

RCL CD SD SCOPE Page 49

 C. Business Process Master List Codes

Level 1 Level 2 Level 3 Level 4 Level 5

Business Blue
Enterprise Business Process Business Process Code
MODULE Business Process Print Number
Area Scenario Group

Project Commercial - PC
Sales and Distribution - SD
Sales Master Data - MD PC_SD_001
Customer Management - CM
01Create Customer Master PC_SD_MD_CM_01
02Maintain Customer Master PC_SD_MD_CM_02
03Blocking Customer Master PC_SD_MD_CM_03
04Extend Customer Master PC_SD_MD_CM_04
Bill of Quantities - BQ
01Create Service Master PC_SD_MD_BQ_01
02Maintain Service Master PC_SD_MD_BQ_02
03Create Model Service Specification PC_SD_MD_BQ_03
04Maintain Model Service Specification PC_SD_MD_BQ_04
Costing Template - CT
01Create Costing Template for Easy Cost Planning PC_SD_MD_CT_01
02Maintain Derivation Rules for Easy Cost Planning PC_SD_MD_CT_02
Tendering Process - TP PC_SD_002
Pre-Qualification - PQ
01Create Pre-Qualification Document PC_SD_TP_PQ_01
02Maintain Pre-Qulaification Document PC_SD_TP_PQ_02
03Close Pre-Qualification Document PC_SD_TP_PQ_03
04Maintain PQ Submittal in DMS PC_SD_TP_PQ_04
Inquiry Logging -
IN
01Create Inquiry PC_SD_TP_IN_01
02Maintain Inquiry PC_SD_TP_IN_02
03Update Bill of Services in the Inquiry PC_SD_TP_IN_03
04Close Inquiry PC_SD_TP_IN_04
05Maintain Inquiry Submittal in DMS PC_SD_TP_IN_05
Quotation Processing - QT
01 Create Quotation PC_SD_TP_QT_01
02 Maintain Bill of Serivce in the Quotation PC_SD_TP_QT_02
03 Easy Cost Planning on Service Line Items PC_SD_TP_QT_03
04 Maintain Conditions PC_SD_TP_QT_04
05 Maintain Quotation Submittal in DMS PC_SD_TP_QT_05
06 Quotation Revision PC_SD_TP_QT_06
Contract Award - CA PC_SD_003
Sales Order - SO
01 Create Sales Order PC_SD_TP_SO_01
02 Maintain Bill of Services in Sales Order PC_SD_TP_SO_02
03 Update Sales Order Line Items as per contract PC_SD_TP_SO_03
04 Maintain Billing Plan in Sales Order PC_SD_TP_SO_04
Quantity Take-Off - TO
01Create Service Entry Sheet PC_SD_TP_TO_01
02Maintain Service Entry Sheet PC_SD_TP_TO_02
Billing - BL
01 Create Down Payment Request PC_SD_TP_BL_01
02 Create Invoices PC_SD_TP_BL_02
Maintain Down Payment & Retention Details in
03 Invoices PC_SD_TP_BL_03
04 Maintain Payment Certificate Received in DMS PC_SD_TP_BL_04

RCL CD SD SCOPE Page 50

 Addendum

End to End Process Flow Chart

Project Sales – FOR KSA companies

Business Development Team / Estimation Team Document Controller Design Engineer / Estimation Quantity Surveyor Procurement Team Accounts Team Site QS / Construction Manager Project Manager /Project Control Manager / Cost Budget Controller Manager (Business Development / Estimation) Finance Manager General Manager Executive Director CFO GGM Master Data Team

Start YES

Fill the YES

Invitation Received Prepare Pre- financial Check the OK to Submit

from Customer Inform to Create only a Qualification details PQ Create

OR Identify New Manager prospect Document required requirement Customer

Customer and Send Review PQ Master

YES YES Document

Fill form for NO Add the

Inquiry Process/Invitation to bid Pre- Customer NO Customer Maintain PQ missing Details are OK
YES Financial
qualification Process master Exists details Details are OK

creation documents in DMS

YES NO PQD OK

NO NO
Submit Review PQ
Create PQ submission PQD OK
Document in Prequalification Add missing Document

system document to Revise PQ

Customer Document Documents

/ Details Approve Pre-
Qualification
Document

Inform to

NO Manager Analyze and PQ

PQ Accepted by rejection reason Discuss the

and inform to GM PQ Rejection

Customer with team

Close PQ
Document

YES
Customer Sends Review the inquiry

Inquiry Based on Receive Inquiry Maintain Inquiry

Document in the Document YES Review the Inquiry
PQ Submitted from existing DMS

Customers

Analyze

Create Inquiry the scope OK to Bid Yes OK to Bid Yes OK to Bid Yes OK to Bid

Document in the and inform

system Arrange the GM

required
documents NO
for Bid

Purchase Review and Approve Yes

Advise

Accounts to

arrange Bid

Purchase Close the Inquiry purchase

the Bid Document

Document Reject No

Quotation Process
Receive Bid Upload Bid
Preliminary Preliminary review Preliminary review Preliminary review Preliminary review
Documents Documents in
from review of Bid DMS of Bid Documents of Bid Documents NO of Bid Documents NO YES of Bid Documents

Customer Documents

Send NO YES

Regret Close Quotation Bid / No Bid Bid / No Bid Info received

Letter to by maintaining Bid / No Bid about Bid

Client Rejection Reason Documents

Preliminary
YES Review

Info received
Send Prepare No about Bid

Clarifications Commercial Documents

to Client Clarifications Prepare Preliminary

Preliminary Review
Design /

Quantity Take off Inform to

CFO and

GGM

Receive Update Status in the

Clarification Quotation Prepare

from Client Document Technical

Clarifications
Check Activity

Types
Prepare Excel
Sheet for BOQ Prepare
Upload in the Optimized

required format Design

Existing Activity Type

Check Existing Template can Available

Costing Template be used

No Create

Review and Material

Validate Rate for Agree Master

Prepare List of Activity Type Activity Rate

Check Material Material Master to

Master for Costing Material No be created and NO
Model Creation Master Exists send to Master

Data Team Create

YES Activity Type

Check Activity Inform to Review

Type and Rate for Activity Type and No Accounts and

Costing Model Rate Available Validate

Creation BOS
YES

YES YES

Create Costing Create Request to YES Send RFQ

Create BOQ get Vendor

Template Quotation and get Inform to Concerned Concerned

Vendor Master Data Team to Department

Quotation update Activity Rate update

Sales Order Processing Activity Rate

Review Costing in the system

and Technical

Do Costing using Easy Cost Prepare Maintain Technical Proposal

Planningc/RIB in the Technical Proposal in DMS

Quotation Document Proposal

NO Details are OK
Revise Revise the
Revise Costing Technical Optimized

Revise Proposal Design

YES

Pricing in the Quotation Pricing Quotation Pricing Quotation Pricing Quotation Pricing Quotation Pricing

Quotation NO YES NO YESNO Review NO

Document Review Review Review YES Review

Revising the

Billing Quotation
Pricing in the NO YES

Pricing OK Pricing OK Pricing OK Pricing OK Pricing OK

Fill Bid Bond

Details and
Send to FM’s Review and Review and Review and Review and Review and Review and
Prepare Approval

Bid Bond Approve Bid Approve Bid Approve Bid Approve Bid Approve Bid Approve Bid

Request Send Bid Bond Bond Request Bond Request Bond Request Bond Request Bond Request Bond Request

Request for
Manager’s
approval

Close the
Quotation NO

Document

Bid Won Bid

Submission Arrange Bid
Inform to Bond

Management

YES

Receive Hand Over Fill Performance / Create Sales

Contract Required details to Advance Order Lump Sum Contract
Documents Project Execution Guarantee Details Project

from Client team and Send to FM’s Execution

Approval

LS Contract
Prepare
Performance

and Advance UR Contract

Guarantee Review and Review and Review and Review and

Request Approve Approve Approve Approve
Measure Performance / Performance / Performance / Performance /

Site Advance Advance Advance Advance

Guarantee Guarantee Guarantee Guarantee

Progress Maintain Billing NO Request Request Request Request

Maintain BOQ

Submit Performance Arrange Plan

Guarantee to the Performance

Client Guarantee Get Approval

from Site

Consultant

Is the Contract
Relevant for

Retention
Send Approved
Measurement for
Billing

YES
Create Retention NO

Agreement

NO

Remove Billing

Block for Invoicing Create Service

line Item for Lump Entry Sheet for

Sum Contract Unit Rate Contract

Generate Final Bill for

Retention Recovery
after completion of
Retention Period

Generate Billing
Document

Post & Release

the Billing
Document

Submit the Billing (remove block)

Customer Document with

End Receivables Supporting Documents

to the Client
RCL CD SD SCOPE Page 51