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SAP Best Practices for Subsidiary Integration in One Client

Production with Intercompany Replenishment

SAP Best Practices


Purpose, Benefits, and Key Process Steps

Purpose
This scenario covers collaboration within a corporate group where the headquarters and
the subsidiaries act as an occasional supplier between each other.
Requesting Plant looks for a temporary source of supply due to Material shortage (any
material type) or lack of production capacity (finished or semi-finished product).
Buyer from the requesting Plant manually requests a material transfer from another Plant.
Each Plant belongs to different organization and different company code.

Benefits
Automation of the collaboration between headquarters and its subsidiaries
Transactional focus, providing fully integrated business processes
Based on existing well-tried Best Practice Scenarios
Transparent view of outstanding stock transfers, stock-in-transit
Efficient Processing of intercompany stock transfers
Sales order BOM processing and Order Change Management integrated in intercompany
processing.

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Scenario Overview
Flow and key points

Process flows covered


Stock overview between Plants
Planning overview between Plants
Capacity analysis
Purchase order (manually)
Production Data changes
Costing run
BOM compare
Order BOM Management
Order Change Management (OCM)

Key Points
Integrated collaboration between headquarters and associated subsidiaries
Rapid ROI by reusing existing data exchange capabilities
Built upon established SAP Best Practices Baseline package scenarios

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Required SAP Applications and Company Roles

Required SAP Applications


Headquarter with SAP ECC 6.0 EHP5 with related country BAiO Baseline Solution V1.605
installed
Purchase Organization (Subsidiary 1 and 2) with the solution SAP BAiO for Subsidiary
Integration V1.605 installed with related country Baseline Solution V1.605 variant files on
the same SAP ECC 6.0 EHP5 instance and client as the headquarter

Company roles involved in the process flows


Purchaser
Production Planner
Warehouse Clerk
Warehouse Manager
Billing Administrator
Accounts Payable Accountant
Engineering Specialist
Sales Department
Enterprise Controller
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Business Process: Production with Intercompany
Replenishment (Variant 1)

Production with Intercompany Replenishment


Stock Availability Process:
1. Requesting Plant checks Delivering Plant stock availability
2. Requesting Plant creates and prints intercompany purchase order
3. Delivering Plant creates cross company delivery
a. Delivering Plant posts the Goods Issue (GI) and prints delivery note
b. Requesting Plant posts the Goods Receipt (GR)
4. Delivering Plant creates the intercompany billing
5. Requesting Plant processes the intercompany payment

Stock availability check


1

Intercompany Purchase Order


2
/ /
GR Delivery process GI
Requesting Plant 3b 3a Delivering Plant
(Headquarter or (Headquarter or
Billing
Subsidiary) 4 Subsidiary)

Intercompany Payment
5

2011 SAP AG. All rights reserved. 5


Business Process: Production with Intercompany
Replenishment (Variant 2)
Production with Intercompany Replenishment
Capacity analysis and manufacturing Process:
1. Requesting Plant asks Delivering Plant Capacity Analysis
a. Delivering Plant confirms available Capacity
2. Requesting Plant creates and prints intercompany purchase order
3. Delivering Plant creates and confirms production order
4. Delivering Plant creates cross company delivery
a. Delivering Plant posts the Goods Issue (GI) and prints delivery note
b. Requesting Plant posts the Goods Receipt (GR)
5. Delivering Plant creates the intercompany billing
6. Requesting Plant processes the intercompany payment

Capacity check
1
Available Capacity
1a

/ 2
Intercompany Purchase Order
/
Requesting Plant Production order
GR Delivery process GI Delivering Plant 3
(Headquarter or 4b 4a and confirmation
(Headquarter or
Subsidiary) Billing Subsidiary)
5

Intercompany Payment
6

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Business Process: Production with Intercompany
Replenishment (Variant 3)
Production with Intercompany Replenishment
Manufacturing Process with Production Data Changes:
1. Delivering Plant changes Production Data
2. Costing Run and dispatched information by the Headquarter to Subsidiaries
3. BOM Comparison and Costing Comparison in the Requesting Plant
4. Requesting Plant asks Delivering Plant Capacity Analysis
a. Delivering Plant confirms available Capacity
5. Requesting Plant creates and prints an intercompany purchase order
6. Delivering Plant creates and confirms the production order
7. a. Delivering Plant creates cross company delivery and posts the Goods Issue (GI)
b. Requesting Plant posts the Goods Receipt (GR) Change
8. Delivering Plant creates the intercompany billing 1 Production Data
9. Requesting Plant processes the intercompany payment
BOM and Costing Comparison Costing Run +
3 2
information spread
Capacity check
4
Available Capacity
4a
/
/ 5
Intercompany Purchase Order
Production order
Delivering Plant 6
(Headquarter or and confirmation
Requesting Plant GR Delivery process GI
7b 7a Subsidiary)
(Headquarter or
Subsidiary) Billing
8

Intercompany Payment
9
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Business Process: Production with Intercompany
Replenishment (Variant 4 Step 1)
Production with Intercompany Replenishment
Manufacturing Process with Order Change Management:
1. Customer Request for Quotation to the Requesting Plant (not demonstrated in this scenario)
2. Quotation Generation and acceptance (not demonstrated in this scenario)
3. Sales Order Generation in the Delivering Plant
4. Delivering Plant creates and releases Production Order
5. Requesting Plant changes the initial Sales Order
6. Delivering Plant changes the Production Order using Order Change Management
7. a. Delivering Plant produces, confirms production, post Goods Issue for the components and posts Goods Receipt for the produced material
b. Delivering Plant creates delivery to Customer and posts the Goods Issue (GI)
8. Requesting Plant creates the Customer billing
9. Customer processes the payment
10. Delivering Plant creates the intercompany billing
11. Requesting Plant processes the intercompany payment Production
Order
3
/
5
Requesting Plant Sales Order
(Headquarter or 2 Order Change
Request for Subsidiary) Management Change
Quotation Production
8 11 Sales Order Change
4 Order and
1 / 6
Production
Intercompany Payment
Order
Intercompany Billing Delivering Plant
10 Confirmation
(Headquarter or
9 GR Delivery process Subsidiary)
GI
7b 7a
Customer
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Business Process: Production with Intercompany
Replenishment (Variant 4 Step 2)
Production with Intercompany Replenishment
Manufacturing Process with Order Change Management:
1. Customer Request for Quotation to the Requesting Plant (not covered in this scenario)
2. Quotation Generation and acceptance (not covered in this scenario)
3. Sales Order Generation in the Delivering Plant
4. Order BOM Generation in the Delivering Plant
5. Delivering Plant creates and releases Production Order
6. Delivering Plant changes the Order BOM and the Production Order using Order Change Management
7. Delivering Plant produces, confirms production, post Goods Issue for the components and posts Goods Receipt for the produced material
8. Delivering Plant creates delivery to Customer and posts the Goods Issue (GI)
9. Requesting Plant creates the Customer billing
10. Customer processes the payment
11. Delivering Plant creates the intercompany billing
12. Requesting Plant processes the intercompany payment Order BOM Production
Management Order
4
/ 3
6
Requesting Plant Sales Order
(Headquarter or 2 5 Order Change
Request for Subsidiary) Management Change
Quotation Change
9 12 Production
Order BOM
Order and
1
Intercompany Payment
/ 7
Production
Order
Intercompany Billing Delivering Plant
11 Confirmation
(Headquarter or
10 GR Delivery process Subsidiary)
GI
8b 8a
Customer
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Business Process in Detail: Production with
Intercompany Replenishment (Variant 1)
Process Description in Detail:

/ /
Requesting Delivering
Production with Intercompany

Stock Availability Process Plant Plant

Check Material stock Material stock available for


availability manufactured product
Create/Print/Send
Intercompany Purchase
Order Create Delivery
Pick Material on stock
Replenishment -

Post the Goods Receipt Post the Goods Issue and


print delivery note
Verify invoice
Create/Send/Print Billing
Document
Process outgoing
payment

2011 SAP AG. All rights reserved. 10


Business Process in Detail: Production with
Intercompany Replenishment (Variant 2)
Process Description in Detail:

/ /
Requesting Delivering
Production with Intercompany

Plant Plant

Request Capacity Check Check potential Capacity


Manufacturing Process

Create/Print/Send
Release Manufacturing
Intercompany Purchase
Process
Order
Confirm Manufacturing
Replenishment -

Process
Post Manufacturing Goods
Receipt
Post Components
Consumption Goods Issue
Create Delivery
Pick Material from stock
Post the Goods Issue and
Post the Goods Receipt print delivery note
Verify invoice Create/Send/Print Billing
Document
Process outgoing
payment

2011 SAP AG. All rights reserved. 11


Business Process in Detail: Production with
Intercompany Replenishment (Variant 3)
Process Description in Detail:

/ /
Requesting Delivering
Production with Intercompany

Plant Plant
Manufacturing Process with

Change Production Data


Production Data Changes

Costing Run + information


spread
BOM and Costing
Comparison
Check potential Capacity
Request Capacity Check
Release Manufacturing
Create/Print/Send Process
Replenishment -

Intercompany Purchase
Order Confirm Manufacturing
Process
Post Manufacturing Goods
Receipt
Post Components
Consumption Goods Issue
Create Delivery
Pick Material from stock
Post the Goods Receipt Post the Goods Issue and
print delivery note
Verify invoice
Create/Send/Print Billing
Process outgoing Document
payment
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Business Process in Detail: Production with
Intercompany Replenishment (Variant 4 - Step1)
Process Description in Detail:

/ /
Requesting Delivering
Production with Intercompany

Customer
Plant Plant
Manufacturing Process with
Order Change Management

Request for Quotation Quotation


Sales Order Creation

Release Manufacturing
Requirements Change Process
Sales Order Change
without Order BOM

Setting Order Change


Management
Replenishment -

Change Production Order


Post Manufacturing Goods
Receipt, Confirm
Manufacturing Process
Post Components
Consumption Goods Issue
Create Delivery
Post the Goods Receipt
Pick Material from stock
Create/Send/Print Billing
Document Post the Goods Issue and
Verify invoice print delivery note

Process outgoing Verify invoice Create/Send/Print Billing


payment Document
Process outgoing
payment
2011 SAP AG. All rights reserved. 13
Business Process in Detail: Production with
Intercompany Replenishment (Variant 4 - Step2)
Process Description in Detail:

/ /
Requesting Delivering
Production with Intercompany

Customer
Plant Plant
Manufacturing Process with
Order Change Management

Request for Quotation Quotation


Sales Order Creation Order BOM Management
Release Manufacturing
Process
Change Order BOM
Replenishment -

with Order BOM

Setting Order Change


Management
Change Production Order
Post Manufacturing Goods
Receipt, Confirm
Manufacturing Process
Post Components
Consumption Goods Issue
Create Delivery
Post the Goods Receipt Create/Send/Print Billing
Document Pick Material from stock
Verify invoice Post the Goods Issue and
Verify invoice
print delivery note
Process outgoing
payment Create/Send/Print Billing
Process outgoing
payment Document
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Process Flow Diagram
Production with Intercompany Replenishment
Stock Availability Process
Missing Parts in Requesting Ship Material
Event

Requesting Plant Informs the Informs the to Requesting


Plant Receives Warehouse Warehouse Requesting Delivering
Manufacturing Purchase Manager Clerk Plant Plant Invoice
Order
Requesting
Purchaser Production
Requesting Supervisor
Plant

Check Stock
availability in
Delivering Plant

Create/Print/Send
Plant

Intercompany
Purchase Order
Warehouse
Delivering
Manager
Plant

Create Delivery
Note from
Intercompany
PO
Warehouse
Delivering
Clerk
Plant

Pick
Material
from
Stock
Requesting
Warehouse
Clerk
Plant

Goods Receipt
and Stock
Material
Accountant
Accounts
Payable

Sales from Invoice Receipt


local stock and Payment
(B22)

2011 SAP AG. All rights reserved. 15


Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process
Missing Parts or Requesting Ship Material
Event

lack of Production Plant Informs the Informs the Informs the to Requesting
in Requesting Plant Receives Production Warehouse Warehouse Requesting Delivering
Manufacturing Purchase Supervisor Manager Clerk Plant Plant Invoice
Order
Production
Supervisor
Delivering
Plant

Check Potential Release Confirm


Capacity in Manufacturing Manufacturing
Delivering Plant Process in Process + Goods
Delivering Plant Receipt
Requesting
Purchaser

Create/Print/Send
Plant

Intercompany
Purchase Order
Warehouse
Delivering
Manager
Plant

Create Delivery
Note from
Intercompany
PO
Warehouse
Delivering
Clerk
Plant

Pick
Material
from
Stock
Requesting
Warehouse
Clerk
Plant

Goods Receipt
and Stock
Material
Accountant
Accounts
Payable

Sales from Invoice Receipt


local stock and Payment
(B22)

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Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process with Production Data Change

Asynchronous Flow Prerequisite

Enterprise
Event

New Product Controller Headquarter


Introduction Information Information
Enterprise Engineering
Delivering
Specialist
Plant

Change
Production Data
Delivering
Controller
Plant

Costing Run
Headquarter

New Validated
Manufacturing
Reference

2011 SAP AG. All rights reserved. 17


Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process with Production Data Change
Missing Parts or Ship Material
Requesting Informs the Informs the Informs the Requesting
Event

lack of Production to
in Requesting Plant Plant Receives Production Warehouse Warehouse Requesting Delivering
Manufacturing Purchase Order Supervisor Manager Clerk Plant Plant Invoice
Production
Supervisor
Delivering
Plant

Check Potential Release Confirm


Capacity in Manufacturing Manufacturing
Delivering Plant Process in Process + Goods
Delivering Plant Receipt
Requesting
Purchaser

Create/Print/Send
Plant

Intercompany
Purchase Order
Warehouse
Delivering
Manager
Plant

Create Delivery
Note from
Intercompany
PO
Warehouse
Delivering
Clerk
Plant

Pick
Material
from
Stock
Requesting
Warehouse
Clerk
Plant

Goods Receipt
and Stock
Material
Accountant
Accounts
Payable

Sales from Invoice Receipt


local stock and Payment
(B22)

2011 SAP AG. All rights reserved. 18


Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process with Order Change Management without Order BOM

Manufacturing Flow with OCM

Requesting
Plant Informs the Customer Informs the
Event

Receives Production Request for Warehouse


Request for Supervisor Change Department
Quotation
Customer

Request for
Quotation
Department

After Approval
Sales

Sales Order Sales Order


Creation Change
Production
Supervisor
Delivering

Release Confirm
Manufacturing Change Manufacturing
Plant

Process in Production Order Process + Goods


Delivering Plant Receipt
Engineering
Delivering
Specialist

Set Order Change


Plant

Management

2011 SAP AG. All rights reserved. 19


Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process with Order Change Management without Order BOM

Delivery Flow

Informs the Informs the Requesting Requesting


Event

Warehouse Warehouse Ship Material Customer


to Customer Delivering
Manager Clerk Plant Invoice Invoice
Department
Warehouse
Delivering

Pick
Plant

Create Delivery
Note from Material
Intercompany from
Sales Order Stock
Requesting
Warehouse
Clerk
Plant
Customer

Invoice Receipt
Goods Receipt and Customer
and Stock Payment
Material
Accountant

Invoice Receipt
Accounts
Payable

Sales from and


central stock Intercompany
(B21) Payment

2011 SAP AG. All rights reserved. 20


Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process with Order Change Management with Order BOM

Manufacturing Flow with OCM


Requesting Engineering
Plant Informs the Informs the Informs the
Event

Receives Production Engineering Specialist Warehouse


Request for Supervisor Specialist Request for Department
Quotation Change
Customer

Request for
Quotation
Department
Sales

After Approval
Sales Order
Creation
Production
Supervisor
Delivering

Release Confirm
Manufacturing Change Manufacturing
Plant

Process in Production Order Process + Goods


Delivering Plant Receipt
Engineering
Delivering
Specialist
Plant

Order BOM Order BOM Set Order Change


Creation Change Management

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Process Flow Diagram
Production with Intercompany Replenishment
Manufacturing Process with Order Change Management with Order BOM

Delivery Flow

Informs the Informs the Requesting Requesting


Event

Warehouse Warehouse Ship Material Customer


to Customer Delivering
Manager Clerk Plant Invoice Invoice
Department
Warehouse
Delivering

Pick
Plant

Create Delivery
Note from Material
Intercompany from
Sales Order Stock
Requesting
Warehouse
Clerk
Plant
Customer

Invoice Receipt
Goods Receipt and Customer
and Stock Payment
Material
Accountant

Invoice Receipt
Accounts
Payable

Sales from and


central stock Intercompany
(B21) Payment

2011 SAP AG. All rights reserved. 22


Legend

Symbol Description Usage Comments Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Role band contains To next / From last Diagram: Leads Flow chart continues on the next /
Payable Clerk or Sales Representative. This band tasks common to that to the next / previous page of the previous page
<Function>

can also identify an organization unit or group, role. Diagram


rather than a specific role. Diagram
Connection
The other process flow symbols in this table go
into these rows. You have as many rows as
required to cover all of the roles in the scenario.
Hardcopy / Document: Identifies a Does not correspond to a task
printed document, report, or form step in a document; instead, it is
External Events: Contains events that start or end used to reflect a document
Hardcopy /
External

the scenario, or influence the course of events in generated by a task step; this
to SAP

Document shape does not have any outgoing


the scenario.
flow lines

Flow line (solid): Line indicates the normal Connects two tasks in
a scenario process or Financial Actuals: Indicates a Does not correspond to a task
sequence of steps and direction of flow in the a non-step event financial posting document step in a document; instead, it is
scenario. Financial used to reflect a document
Flow line (dashed): Line indicates flow to generated by a task step; this
Actuals shape does not have any outgoing
infrequently-used or conditional tasks in a flow lines
scenario. Line can also lead to documents involved
in the process flow.

Business Activity / Event: Identifies an action that Does not correspond Budget Planning: Indicates a Does not correspond to a task
either leads into or out of the scenario, or an to a task step in the budget planning document step in a document; instead, it is
Business outside Process that happens during the scenario document used to reflect a document
Activity / Event Budget generated by a task step; this
Planning shape does not have any outgoing
flow lines
Unit Process: Identifies a task that is covered in a Corresponds to a task
step-by-step manner in the scenario step in the document
Unit Process Manual Process: Covers a task Does not generally correspond to
that is manually done a task step in a document;
instead, it is used to reflect a task
Manual that is manually performed, such
Process Reference: If the scenario references Corresponds to a task Process as unloading a truck in the
another scenario in total, put the scenario number step in the document warehouse, which affects the
Process and name here. process flow.
Reference

Existing Version / Data: This block Does not generally correspond to


Sub-Process Reference: If the scenario references Corresponds to a task covers data that feeds in from an a task step in a document;
another scenario in part, put the scenario number, step in the document external process instead, this shape reflects data
Sub- name, and the step numbers from that scenario
Existing coming from an external source;
Process here Version / this step does not have any
Reference Data incoming flow lines

Process Decision: Identifies a decision / branching Does not usually


point, signifying a choice to be made by the end correspond to a task System Pass / Fail Decision: This Does not generally correspond to
user. Lines represent different choices emerging step in the document; block covers an automatic a task step in the document;
from different parts of the diamond. Reflects a choice to decision made by the software instead it is used to reflect an
Process System automatic decision by the system
Decision be made after step Pass/Fail
execution Decision that is made after a step has been
executed.

2011 SAP AG. All rights reserved. 23


2011 SAP AG. All rights reserved

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