Hi ​@DivyaSubramanian ,

It seems the functional expectation is to create the project first. 

When a project is in Initialized status, it is normally not connected to a corresponding financial project. If the initialized project should be available for Budget or Business Planning, a corresponding financial project with status Planned can be created with this activity.

The financial project can be deleted if the project still has status Initialized and the financial project has not yet been used in Budget or Business Planning.

Hope this Helps,
Regards,
Dinudu Kankanamge.