Initiation is a preliminary project phase. In this phase, the decision is taken on whether to carry out the project.

It uses both the Project System functions and the following functions from Sales and Distribution (SD):

• SD Inquiry processing
• SD quotation processing

You can use an inquiry to record a customer query, including the customer's basic requirements. You send exact and binding product information (such as prices and delivery dates) to the customer in the form of a quotation.

The Project System supports this work with its integrated capacity scheduling and cost and date planning. You can organize and structure production at the same time. When the quotation phase is finished, a complete project, with WBS elements and networks, may be in place in the R/3 System. You can use the project simulation functions to work through different quotation scenarios, postponing the decision on which one to use until you have actually received the order.

It is also possible for projects to be initiated by means of internal processes. Internal project initiation involves preparing for and making the decision to approve the project.