Please see the SAP Analytics Approach document, section 'Documentation' for more information about the context of this document.
| Status | Revision in progress |
|---|---|
| Functional Specification Owner | CONNELLY-ext, Delia |
| Stakeholders | |
| Jira Request ID | [ERP-125] Business Case form to capture Project Financial Indicators - Jira |
| Jira Development (Build) ID | [ERP-263] Business Case form to capture Project Financial Indicators - Jira |
| Lean IX App Link | |
| Business Process Reference (L4) | 10.01.03.01. Manage Initiatives and Items | Signavio |
High-Level Specification
| Parameter | Value |
|---|---|
| Application System (Delivery Tool) | SAC Story |
Functional Overview
The Project Business Case captures key financial information about a project in a simplified and standardized format to enable comparable financial reporting across a Project Portfolio.
The Business Case includes:
- Capturing financial information such as Sales Prices, Sales Volumes
- Calculation of financial measures such as Sales Forecast, Contribution Margin
- Calculation of financial indicators, such as NPV, MIRR and VCI
The financial indicators are further input to the Project Scoring calculation, which supports the Project Prioritization process.
Scope
The Project Business Case must be completed for all financially driven projects.
Process Flow Diagram
Step | Description | Comment |
|---|---|---|
| 1. | Enter Project Cost | |
| 2. | Complete Business Case | |
| 3. | Trigger Project Scoring | |
| 4. | Project Score is displayed |
Solution Overview
Input from: Reporting & Analytics Consultant
The Project Business Case incorporates data drawn from the following sources:
- Centrally maintained Master Data
- Project Costs maintained in a separate Planning form
- Data inputs directly in the Business Case
- Calculations
Story Definition
Overview Page
TBD how this will relate, or be tied to input of Project Cost / Forecast
Story Page N
Page Objective
Input of Business Case
Page filters
Report Field Name | Mandatory/Optional | Prompt Type (Single Value, Multiple Single Values, Interval, Selection Option, Hierarchy) | Default Value(s) or Restrictions (please provide default value) |
|---|---|---|---|
| Item Id | Mandatory | Single Value Select from Hierarchy or by Item attributes such as Person Responsible |
Page level input controls
Calculations
Layout
Refer here for a mock-up of the Business Case: Business Case Template - Google Sheets
If multiple data sources consumed by story:
Widget | Data Model | Field | Filter |
|---|---|---|---|
Header | PPM_ITEM | Project Name: CGPL_TEXT-TEXT1 | |
| PPM_ITEM | Project ID /RPM/ITEM_D-EXTERNAL_ID | ||
| PPM_ITEM | Project Owner: /RPM/ITEM_D-ZXX14 | Derive Personnel Name from Position | |
| PPM_ITEM | /RPM/ITEM_D-CATEGORY | Retrieve description from RPM_PROJ_CAT | |
0. Preliminary Information | PPM_ITEM | Year of Project Kick-Off | Mandatory, format YYYY Default to year of /RPM/ITEM_D-PLANNED_START |
| PPM_ITEM | First Year of Commercial Sales | Optional, format YYYY If entered, must be >= Year of Project Kick-Off | |
| PPM_ITEM | Time to Full Maturity (Years) | Optional, integer If entered, must be >= 0 | |
| PPM_ITEM | Discount Rate (WACC) | Mandatory, format % Must be >= 0 and <= 100 | |
| ?? | Years for NPV Calculation | Centrally maintained parameter | |
| PPM_ITEM | Currency | Mandatory Default to Group Currency (EUR) and allow to switch to Item currency (/RPM/ITEM_D-CURRENCY) | |
| PPM_ITEM | End Year for NPV Calculation | Calculated: If First Year of Commercial Sales = 0 then Year of Project Kick-Off + Years for NPV Calculation Else First Year of Commercial Sales + Years for NPV Calculation | |
| PPM_ITEM | Probability of Commercial Success | Optional, format % If entered, must be >= 0 and <= 100 | |
| PPM_ITEM | Probability of Technical Success | Optional, format % If entered, must be >= 0 and <= 100 | |
| PPM_ITEM | Risk Adjustment | Mandatory, format % Must be >= 0 and <= 100 | |
| PPM_ITEM | Working Capital/Sales Ratio | Mandatory, format % Default to ??? / central parameter? Must be >= 0 and <= 100 | |
| PPM_ITEM | EBITDA at Maturity | Optional, format as per Currency | |
1. Project Cost | PPM_ITEM | Project Cost - Opex: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Filter:
|
| PPM_ITEM | Project Cost - Capex: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Filter:
| |
| Total Project Costs | Display-only, format as per Currency Calculated: Project costs - OPEX) + (Project costs - CAPEX) | ||
2. Project P&L Impact | PPM_ITEM | Select Unit: Unit | Mandatory, selected UOM from list |
| PPM_ITEM | Product Volumes UOM: /RPM/FIN_PLAN-UNIT | Display-only, same as UOM Filter:
| |
| PPM_ITEM | Product Volumes: /RPM/FIN_PLAN-QUANTITY | Optional, format as quantity in selected UOM Filter:
| |
| PPM_ITEM | Product Selling Price Unit: /RPM/FIN_PLAN-UNIT | Display-only, derived as Currency / UOM Filter:
| |
| PPM_ITEM | Product Selling Price: /RPM/FIN_PLAN-AMOUNT | Optional, format is Currency per UOM Filter:
| |
| PPM_ITEM | Sales Forecast: /RPM/FIN_PLAN-AMOUNT | Display-only Calculated per year: Product Volumes * Product Selling Price Filter:
| |
| PPM_ITEM | Product Variable Cost: /RPM/FIN_PLAN-AMOUNT | Optional, format as per Currency Filter:
| |
2. Project P&L Impact | PPM_ITEM | Contribution: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: Product Volumes * (Product Selling Price - Product Variable Cost) Filter:
|
| PPM_ITEM | Contribution in % of Sales: /RPM/FIN_PLAN-QUANTITY | Display-only, format as % Calculated per year: Contribution / Sales Forecast * 100 Filter:
| |
| PPM_ITEM | Total Fixed Costs: /RPM/FIN_PLAN-AMOUNT | Optional, format as per Currency Filter:
| |
| 3. Cash Impacts | PPM_ITEM | Working Capital: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: Working Capital/Sales Ratio * Sales Forecast Filter:
|
| PPM_ITEM | Change in Working Capital: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: Sales Forecast this year - Sales Forecast last year Filter:
| |
| PPM_ITEM | Other Cash Impacts: /RPM/FIN_PLAN-AMOUNT | Optional, format as per Currency Filter:
| |
| 4. Subsidies | PPM_ITEM | Subsidy: /RPM/FIN_PLAN-AMOUNT | Optional, format as per Currency Filter:
|
| 5. Interim Calculations | Year XXXX - Year YYYY | Display only Year XXXX = Year of Project Kick-Off Year YYYY = End Year for NPV Calculation | |
Discount Period from Kick-Off: /RPM/FIN_PLAN-QUANTITY | Display-only, format as per Currency Calculated per year: If Year < Year of Project Kick Off or > End Year for NPV Calculation then zero Else If previous year Discount Period > 0 then Add 1 to previous year Discount Period Else Add 0.5 to previous year Discount Period Filter:
| ||
Cashflow: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: If Year < Year of Project Kick Off or > End Year for NPV Calculation then zero Else Contribution - Total Project Costs - Change in Working Capital - Other Cash Impact Filter:
| ||
Discounted Cashflow: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: Cashflow / (1 + Discount Rate) ^ Discount Period from Kick-Off Filter:
| ||
Risk Adjusted Contribution: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: If Year < Year of Project Kick Off or > End Year for NPV Calculation then zero Else Contribution * Risk Adjustment % Filter:
| ||
Risk Adjusted Cashflow: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: If Year < Year of Project Kick Off or > End Year for NPV Calculation then zero Else Risk Adjusted Contribution - Total Project Costs - Change in Working Capital Filter:
| ||
Risk Adjusted Discounted Cashflow: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: Risk Adjusted Cashflow / (1 + Discount Rate) ^ Discount Period from Kick-Off Filter:
| ||
Cumulative Discounted Cash Flow: /RPM/FIN_PLAN-AMOUNT | Display-only, format as per Currency Calculated per year: If Year < Year of Project Kick Off or > End Year for NPV Calculation then zero Else Risk Adjusted Cashflow for this year + Cumulate Discounted Cash Flow for Filter:
| ||
Payback Period (Days): /RPM/FIN_PLAN-QUANTITY | Display-only, format as per Currency Calculated per year: If Cumulative Discounted Cash Flow = 0 then zero ElseIf Cumulative Discounted Cash Flow < 0 then 365 ElseIf previous year Cumulative Discounted Cash Flow > 0 then zero Else (previous year Cumulative Discounted Cash Flow * -1) / (Cumulative Discounted Filter:
| ||
| 6. Financial Indicators | Year XXXX - Year YYYY | As above | |
NPV (Net Present Value) | Display-only, format as per Currency Calculated: Sum (Discount Cashflow) for all years | ||
Risk Adjusted NPV | Display-only, format as per Currency Calculated: Sum (Risk Adjusted Discount Cashflow) for all years | ||
MIRR (Modified Internal Rate of Return) | Display-only, format as per Currency Calculated: MIRR (Sum (Discounted Cashflow) for all years, Discount Rate, Discount Rate) | ||
Discounted Payback Period | Display-only, format as per Currency Calculated: Sum (Playback Period for all years) / 365 | ||
VCI (Value Creation Index) | Display-only, format as per Currency Calculated: NPV / Sum (Total Project Costs) for all years between kick off to NPV calc? | ||
| 7. Comments and Justification | Comments | Optional, long text commentary to support Business Case Saved in custom long text?? |
Story Page N+1 (etc.)
Story Filters
Report Field Name | Mandatory/Optional | Prompt Type (Single Value, Multiple Single Values, Interval, Selection Option, Hierarchy) | Default Value(s) or Restrictions (please provide default value) |
|---|---|---|---|
Data models
| Data Model Technical Name | Data Dodel Description | Jira Development ID | Link to Data Model Functional Specification |
|---|---|---|---|
| (Filled when available) | Text for data model | ||
Business Roles
Design Rationale
Input from: Reporting & Analytics Consultant
Assumptions
Dependencies
Special Requirements
Frequency of Analysis/Report Run
Testing Considerations / Dependencies
N.B. Unless this is a planning story, the testing should cover layout and user experience NOT data values for metrics created in the data model. Data model values will be tested in conjunction with the data model specification.
How to test
The developer will need to test repeatedly, so where appropriate provide instructions to reverse the actions performed so the test may be run again, or explain how to create new input data to the test. In particular, the developer will need logons for test users representing the various roles within the approval process.
Test Conditions and Expected Results
| ID | Condition | Expected Results |
|---|---|---|
Testing Considerations / Dependencies
Other Requirements