Beruflich Dokumente
Kultur Dokumente
Prof. Dr. Heimo H. Adelsberger Dipl.-Wirt.-Inf. Pouyan Khatami Dipl.-Wirt.-Inf. Taymaz Khatami
Table of contents
Table of contents ........................................................................................................................ 2 Table of figures .......................................................................................................................... 4 Copyright .................................................................................................................................... 6 1 Introduction ........................................................................................................................ 7 1.1 Unit objectives procurement process in SAP ERP .................................................. 7 1.2 Scenario for the case studies ........................................................................................ 8 2 Organizational levels of procurement ................................................................................ 9 2.1 Theory Organizational levels.................................................................................... 9 2.1.1 Organizational levels in the procurement process ................................................ 9 2.1.2 Organizational levels of inventory management ................................................ 10 2.1.3 Purchasing organization and purchasing groups ................................................ 11 2.2 Excurse organizational levels ................................................................................. 14 2.2.1 Implementation Guide ........................................................................................ 14 2.2.2 SAP ERP organizational levels in customizing ................................................. 17 3 Master data in procurement .............................................................................................. 21 3.1 Theory master data ................................................................................................. 21 3.1.1 Material master data ........................................................................................... 21 3.1.2 Vendor master data ............................................................................................. 22 3.1.3 Purchasing info records ...................................................................................... 22 3.1.4 Conditions .......................................................................................................... 23 3.2 Practical application master data ............................................................................ 25 3.2.1 Information about the Speedstar ........................................................................ 25 3.2.2 Creating material master data ............................................................................. 26 3.2.3 Create vendor master data .................................................................................. 44 3.2.4 Creating purchasing info records and conditions ............................................... 45 4 Procurement process ........................................................................................................ 47 4.1 Theory procurement process .................................................................................. 47 4.1.1 Model procurement process ............................................................................... 47 4.1.2 Purchase requisitions .......................................................................................... 48 4.1.3 Consumable materials ........................................................................................ 50 4.1.4 Purchase order .................................................................................................... 52 4.1.5 Purchase order processing .................................................................................. 52 4.1.6 Item category ...................................................................................................... 53 4.1.7 Issuing Messages ................................................................................................ 54 4.2 Practical Application Procurement process ............................................................ 55 4.2.1 Create purchase requisition ................................................................................ 55 4.2.2 Create purchase order with reference to purchase requisition ........................... 56 4.2.3 Display purchase order ....................................................................................... 57 4.2.4 Display messages ............................................................................................... 58 4.2.5 Processing status of the purchase requisition ..................................................... 58 5 Goods receipt and goods movement ................................................................................ 60 5.1 Theory goods receipt and goods movement ........................................................... 60 5.1.1 Goods receipt...................................................................................................... 60 5.1.2 Goods movement................................................................................................ 61 5.1.3 Goods receipt in inspection stock....................................................................... 62 5.1.4 Transaction types ................................................................................................ 63 5.1.5 Stock overview ................................................................................................... 64 page 2 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP 5.1.6 Stock-to-stock transfer posting........................................................................... 65 5.1.7 Material and accounting documents ................................................................... 66 5.1.8 Effects of a goods receipt ................................................................................... 67 5.2 Practical application goods receipt and goods movement ...................................... 68 5.2.1 Check stock overview ........................................................................................ 68 5.2.2 Post goods receipt............................................................................................... 69 5.2.3 Display the material document ........................................................................... 70 5.2.4 Material transfers in unrestricted-use stock ....................................................... 71 5.2.5 Display material document for material transfer ................................................ 71 5.2.6 Display stock overview ...................................................................................... 71 5.2.7 Display order history .......................................................................................... 72 Invoice verification and manual vendor payment ............................................................ 73 6.1 Theory Invoice verification .................................................................................... 73 6.1.1 Types of invoice verification.............................................................................. 73 6.1.2 Effects of invoice verification ............................................................................ 74 6.1.3 Elements of a payment transaction ..................................................................... 75 6.1.4 Integration of materials management in other functional areas ......................... 75 6.2 Practical application Invoice verification ............................................................... 77 6.2.1 Entering the vendor invoice ............................................................................... 77 6.2.2 Display invoice document and purchase order history ...................................... 78 6.2.3 Manual outgoing payment with check printing .................................................. 80 Reporting .......................................................................................................................... 81 7.1 Theory reporting ..................................................................................................... 81 7.1.1 Standard reports.................................................................................................. 81 7.1.2 List displays ........................................................................................................ 81 7.1.3 SAP List Viewer and ALV Grid Control ........................................................... 82 7.1.4 Functionality of the SAP List Viewers/ ALV Grid Control ............................... 83 7.1.5 Layout (display variant) ..................................................................................... 84 7.1.6 Logistics information system ............................................................................. 85 7.1.7 Organization of information structures .............................................................. 86 7.1.8 Reporting in standard analyses ........................................................................... 87 7.1.9 Flexible Analyses ............................................................................................... 88 7.2 Practical application reporting ................................................................................ 89 7.2.1 List displays for purchase orders ........................................................................ 89 Completion ....................................................................................................................... 95 Reflections ........................................................................................................................ 96 9.1 Questions ................................................................................................................... 96 9.2 Standard solution ....................................................................................................... 98
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Table of figures
Figure 1: Process overview practical application ....................................................................... 8 Figure 2: Relevant organizational levels in the procurement process ........................................ 9 Figure 3: Organizational levels of inventory management ...................................................... 10 Figure 4: Plant-specific purchasing organization ..................................................................... 11 Figure 5: Cross-plant purchasing organization ........................................................................ 12 Figure 6: Cross-company code purchasing organization ......................................................... 12 Figure 7: SAP ERP Easy Access Menu: SAP system screenshot ............................................ 15 Figure 8: SAP reference IMG: SAP system screenshot ........................................................... 16 Figure 9: Assignment plant company code: SAP system screenshot .................................... 19 Figure 10: Cross-company code procurement: SAP system screenshot .................................. 20 Figure 11: Material master record ............................................................................................ 21 Figure 12: Vendor master data ................................................................................................. 22 Figure 13: Purchasing info records .......................................................................................... 23 Figure 14: Conditions ............................................................................................................... 24 Figure 15: Process overview maintaining master data .......................................................... 25 Figure 16: Bill of materials racing cycle ............................................................................... 25 Figure 17: Material master data Speedstar ............................................................................... 28 Figure 18: Views and organizational units; SAP-HCC Magdeburg, integration case study LO (SAP ERP ECC 5.0), 2006 ....................................................................................................... 30 Figure 19: Material storage 0001 in plant 1000: SAP system screenshot ................................ 30 Figure 20: Material master data Basis-Module ........................................................................ 32 Figure 21: Material master control element ............................................................................. 35 Figure 22: Material master data wheel ..................................................................................... 37 Figure 23: Material master data chain ...................................................................................... 39 Figure 24: Material master data gearing .................................................................................. 40 Figure 25: Purchasing info record - Conditions: SAP system screenshot ................................ 45 Figure 26: Procurement process ............................................................................................... 47 Figure 27: Purchase requisitions .............................................................................................. 49 Figure 28: Converting purchase requisitions into purchase orders .......................................... 49 Figure 29: Account assignment objects ................................................................................... 50 Figure 30: Procurement for consumption................................................................................. 51 Figure 31: Purchase order ........................................................................................................ 52 Figure 32: Purchase order processing ...................................................................................... 53 Figure 33: Item category .......................................................................................................... 54 Figure 34: Issuing Messages .................................................................................................... 54 Figure 35: Process overview procurement process ............................................................... 55 Figure 36: Create purchase requisition: SAP system screenshot ............................................. 56 Figure 37: Selection variant: may purchase requisitions ......................................................... 57 Figure 38: Reference purchase order purchase order requisition .......................................... 58 Figure 39: Processing status of the purchase requisition: SAP system screenshot .................. 59 Figure 40: Goods receipt postings ............................................................................................ 61 Figure 41: Goods movements and stocks ................................................................................. 62 Figure 42: Goods receipt in inspection stock ........................................................................... 63 Figure 43: Transaction types .................................................................................................... 64 Figure 44: Stock overview ....................................................................................................... 65 Figure 45: Stock-to-stock transfer posting ............................................................................... 66 Figure 46: Material and accounting documents ....................................................................... 66 Figure 47: Effects of a goods receipt ....................................................................................... 67 Figure 48: Process overview goods receipt and goods movement ........................................ 68 Figure 49: Stock overview: SAP system screenshot ................................................................ 68 page 4 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP Figure 50: Goods receipt from an order: SAP system screenshot ............................................ 69 Figure 51: Stock overview: SAP system screenshot ................................................................ 70 Figure 52: Stock overview: SAP system screenshot ................................................................ 72 Figure 53: Order history: SAP system screenshot ................................................................... 72 Figure 54: Order status: SAP system screenshot ..................................................................... 72 Figure 55: Invoice processing .................................................................................................. 73 Figure 56: Types of invoice verification .................................................................................. 74 Figure 57: Effects of invoice verification................................................................................. 74 Figure 58: Elements or a payment transaction ......................................................................... 75 Figure 59: Materials management integration ......................................................................... 76 Figure 60: Process overview invoice verification ................................................................. 77 Figure 61: Invoice verification: SAP system screenshot ......................................................... 78 Figure 62: Accounting document: SAP system screenshot ..................................................... 79 Figure 63: Accounting document purchase order: SAP system screenshot .......................... 79 Figure 64: Purchase order history: SAP system screenshot ..................................................... 79 Figure 65: Standard reports ...................................................................................................... 81 Figure 66: List displays ............................................................................................................ 82 Figure 67: SAP List Viewer and ALV Grid Control ............................................................... 83 Figure 68: Functions of the SAP List Viewers/ ALV Grid Control......................................... 84 Figure 69: Layout (display variant) .......................................................................................... 85 Figure 70: Logistics information system .................................................................................. 86 Figure 71: Organization of information structures ................................................................... 87 Figure 72: Reporting for standard analyses .............................................................................. 87 Figure 73: Flexible Analyses .................................................................................................... 88 Figure 74: Process overview reporting.................................................................................. 89 Figure 75: Report for purchase orders ...................................................................................... 90 Figure 76: Remove sort criteria: SAP system screenshot ........................................................ 90 Figure 77: Column configuration: SAP system screenshot ..................................................... 91 Figure 78: Purchase order values of vendors: SAP system screenshot .................................... 92 Figure 79: Purchasing information system - key and text: SAP system screenshot ................ 93 Figure 80: Purchasing information system key figures selection: SAP system screenshot .. 93 Figure 81: Purchasing information system ABC analysis: SAP system screenshot ............. 94
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Copyright
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This document is mostly based on publications for the TERP10 course mySAP ERP integrated business processes those parts are subject to the copyright of SAP AG. All figures used within this course are created in the style of the TERP10, if not labeled else wise. Those parts are subject to the copyright of SAP AG. All screenshots used within this document, even if displayed in extracts, are subject to the copyright of SAP AG. Distribution and reproduction of this document or parts of this document in any form is prohibited without the written permission of Prof. Dr. Heimo H. Adelsberger, Dipl.-Wirt.-Inf. Pouyan Khatami, and Dipl.-Wirt.-Inf. Taymaz Khatami.
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1 Introduction
1.1 Unit objectives procurement process in SAP ERP
This unit aims at giving you an understanding of the procurement process in SAP ERP. After this unit, you will be able to: - name the organizational levels and master data of the procurement process - operate the procurement cycle for stock and consumable materials concerning o purchase requisitions, o purchase orders, o goods receipt, o invoice receipt, and o vendor payment - identify different stock types - record goods receipt in the quality inspection - describe important interfaces with other SAP ERP processes - list tools for analyses and reporting in the procurement process Note: It is vital for the successful completion of this case study that you are familiar with the navigation basics in SAP ERP systems (cf. unit Introduction/Navigation). This includes that you are able to handle the SAP Easy Access Menu as well as an understanding of the SAP transaction concept. Your knowledge about help options and further documentation is to enable you to mostly discover the complexity and potential of the system independently albeit you have to study with given scenarios. Note: Please avoid to merely clicking through the described steps of the case studies without thinking carefully about what you are doing to make sure you achieve sustained learning success. Try to clarify at each step what is done and why it is done. Therefore, you should regularly use the F1 and F4 help functions as well as the SAP online librarys help menu (cf. introduction chapter, Help) to display further information and explanations regarding the particular processes. Since we arranged the case studies neatly, not all entries that you need to enter on the different screens can be explained in detail. Thus, you should try to get a profound knowledge using the F1 and F4 keys regarding the meaning of the particular fields and entries. Please unconditionally use the SAP Easy Access Menu instead to the transaction codes. Thus, you will quickly understand the structure and logic of SAP ERP. When you are a bit more experienced using the SAP system, it is advisable to use the transaction codes. Please read the case studies and advises carefully, since careless mistakes causing huge problems happen quite often.
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page 8 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Client A client is a self-contained unit in SAP with separate master records and an own set of tables (and table entries). It is on the highest level of organizational elements in SAP ERP. A client can match either a group or a company. Company code A company code represents an independent accounting unit. On company code level, legally required financial statements as well as profit and loss statements are created. A company code is an organizational structure of accounting. Depending on size and structure of the company, it is possible to create multiple company codes for one client (n:1).
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Integrated business processes with SAP ERP Plant A plant is an organizational element within a company. Within a plant, goods are procured, services rendered, or goods are prepared for delivery. Manufacturing facilities, warehouses, and distribution centers are referred to as plants. A plant is the central organizational unit of logistics. One plant is assigned to one company code; company codes can include multiple plants. Storage location A storage location is an organizational unit enabling local distinction of material stock within a plant. Quantitative inventory management and inventory are conducted on storage location level. A storage location is part of a plant; a plant can contain multiple storage locations (1:n). Purchasing organization Purchasing organizations are structured to negotiate procurement terms and conditions regarding one or multiple plants or companies. Pricing conditions are set at purchasing organization level. Purchasing organizations are assigned to the material management functional area. Purchasing group Purchasing groups are keys for buyers or groups of buyers responsible for particular buying activities. They cannot be assigned to a purchasing organization, since purchasing groups are assigned directly to procurement objects (e.g. particular materials). This is not limited to the borders of particular organizational units, e.g. company codes or purchasing organizations.
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Integrated business processes with SAP ERP A unique, three-digit alphanumeric key is assigned to each client (e.g. client 900). Additionally, the organizational levels company code, plant, and storage location assigned to a client are defined uniquely by the means of a four-digit alphanumeric key (e.g. plant in Hamburg, unique key 1000). The organizational structures are assigned to each other uniquely. Accordingly, multiple plants can e.g. be assigned to a company code. However, a plant is only assigned to one company code in SAP ERP. In the image displayed above, you can see a detail of the IDES model company in which the following cases are set. You can see that company code 1000 IDES AG represents the corporate headquarters in Frankfurt. Amongst others, company code 1000 encompasses the plants 1000 (Hamburg) and 1100 (Berlin). Multiple storage locations (0001, 0002, etc.) are assigned to each plant. Storage locations must have a unique, four-digit alphanumeric key within a plant.
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Integrated business processes with SAP ERP Cross-plant purchasing organization In case of cross-plant purchasing, a purchasing organization is assigned to exactly one company code in the customizing process. Then, the purchasing organization is responsible for the procurement of all plants assigned to the company code. In the following figure, you can see that purchasing organization 1000 is in charge of procurement for the plants in Hamburg and Berlin.
Cross-company code purchasing organization In case of a cross-company code purchasing organization, a purchasing organization is assigned neither to a plant nor to a company code in the customizing process. If an order is created in SAP ERP for which the particular purchasing organization is responsible, the system prompts you to enter the company code for which the order is processed.
Thus, purchasing organization C100 in IDES is not assigned to a particular company code. Accordingly, this organizational unit can process procurement for each plant and each company code. page 12 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
A purchasing group refers to either a buyer or a group of buyers responsible for particular activities within a company, for example purchasing material XY.
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aligning the company-neutral and industry-specific functionalities of SAP ERP with the particular business requirements of a company, extending SAP functionalities in a company, implementing SAP solutions quickly, efficiently, and securely, and documenting and monitoring system settings with a user-friendly tool (Implementation Guide IMG) for project management and project execution.
The SAP ERP system consists of an application layer and a technical layer. The application layer, which is used for carrying out routine tasks (e.g. starting production, arranging deliveries, creating invoices, etc.) by employees, layer contains three main areas logistics, accounting, and HR. You can find the technical layer in the SAP Easy Access Menu in the tools-section. The technical layer contains all functionalities that the SAP ERP system needs for customizing, system development, and system monitoring.
page 14 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
You can run customizing in SAP ERP using the IMG (Implementation Guide). To open customizing, please choose Tools Customizing IMG Execute Project (SPRO) in the SAP Easy Access Menu. Next, click the button to go to the SAP IMG (Implementation).
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You can see that the SAP Implementation Guide (IMG) follows the structure of the SAP application layer. Thus, the technical layer is structured in logistics, accounting, and HR as well. Under enterprise structure, you can define organizational structures (company codes, plants, purchasing organizations, etc.) and assign them to each other. The other IMG components deal with maintaining master data as well as process customizing.
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Double-click on the line Edit company code data and confirm the following message (no authorization to maintain data). Next, you see a table with all company codes of IDES AG (e.g. 1000 IDES AG). By doubleclicking the line 1000 IDES AG, you can see that IDES AGs domicile is Frankfurt and the company code currency is Euro. Leave the screen and return to the SAP IMG. Plants Next, choose Enterprise Structure Definition Logistics-General Define, Copy, Delete, Check Plant and click the button.
Double-click on the line Define plant and accept the following notification. Again, you can see a table containing all plants of the IDES group. Plants 1000 and 1100 that were already described are defined here as well. Additionally, you can get further information about plants by double-clicking the corresponding line. Leave the screen and return to the SAP IMG. Purchasing organization You can find the purchasing organization by choosing Enterprise structure Definition Materials Management Maintain Purchasing Organizations Leave the screen and return to the SAP IMG. page 17 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP Storage locations To define storage locations, please choose Enterprise structure Definition Materials Management Maintain Storage locations Confirm the subsequent notification. Next, you need to enter the key of a particular plant in the pop-up window, since storage locations are defined on plant level, not on client level. Enter plant 1000 and confirm. Next, you can see a table containing all storage locations existent in plant 1000. 2.2.2.2 Integration of organizational levels The integration of organizational levels is implemented under Enterprise Structure -> Assignment. In integration, particular organizational units are assigned to each other according to the logic of the company structure. Plants Choose Enterprise Structure Assignment Logistics - General Assign plant to Company Code You can see that plant 1000 in Hamburg is assigned to IDES AG (Frankfurt). Furthermore, the company code 1000 of IDES AG contains overall 14 plants for which it is responsible from an accounting point of view.
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Leave the screen and return to the SAP IMG. Purchasing organization Select Enterprise structure Definition Material Management Maintain Purchasing Organization At the bottom of the table, you see the purchasing organzation C100 Zentraleinkauf (central purchasing). This PO is responsible for cross-company code procurement. Next, choose Enterprise structure Assignment Materials Management organization to Company Code Assign Purchasing
You can see that purchasing organization 1000 is in charge of purchasing in company code 1000 IDES AG. Search for (ctrl f) the PO C100. You will notice that this purchasing organization is not assigned to a particular company code. Correspondingly, cross-company code procurement is possible with this purchasing organization.
page 19 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
With it, this brief excurse is completed. Please bear in mind that this section is not relevant to the final SAP exam, but encourages the understanding of SAP ERP. Take the chance and look at other organizational structures and their interrelations when mentioned in the course. You can review the complete company structure of IDES AG using the two mentioned points in SAP IMG (-> transaction: SPRO). Enterprise Structure Definition Enterprise Structure Assignment
page 20 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
page 21 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
page 22 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP The following data can be stored and maintained in info records: - Current and future prices and conditions (e. g. freight, discounts) - Delivery data (e. g. planned delivery time, tolerances) - Vendor data - Texts The SAP system provides data maintained in info records as default values when creating purchasing documents (e.g. purchase orders or contracts). In planning processes, purchasing info records can be referenced to pre-determine vendor-specific data
3.1.4 Conditions
Conditions are used for price determination in purchase orders. When you create a purchase order with reference to a contact or a purchasing info record, or if particular criteria defined in the extended conditions are applicable to purchase order entry, the SAP system automatically applies conditions to the purchase order. Thus, they influence the effective price. There are different types of conditions used in purchasing: - Conditions in a contract apply to all contract release orders created with reference to the particular contract. - Conditions in purchasing info records apply to all purchase order items containing material or vendor of the purchasing info record. - Extended conditions are only applied if particular criteria are met. Using extended conditions, you can for example define vendor discounts or you can include discounts for a material type. Extended conditions are more flexible than conditions in info records or contracts, since they can determine which criteria must be met so that conditions apply to particular orders.
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page 24 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
The Speedstar consists of the following items: 1 x frame 2 x wheels 1 x chain 1 x gearing
page 25 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP These four components are combined in the first step of production, resulting in the BasisModule. After mounting the Basis-Module, pedals (2x), brakes (2x), handlebar (1x), and a saddle (1x) are added. An employee from warehouse management told you that pedals, brakes, and saddles as raw materials are already available from the warehouse in quantity. Thus, you do not need to maintain material master records for these materials, since they are already in place.
page 26 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP Sales & Distribution (SD) o Sales: Sales organization data 1 o Sales: Sales organization data 2 o Sales: General/plant data o Foreign trade: Export o Sales text Materials Management (MM) o Purchasing o Foreign trade: Import o Purchasing order text Logistic Execution Warehouse Management (LE-WM) o General plant data/storage 1-2 o Warehouse management 1-2 o Quality management Production Planning (PP) o MRP 1-4 o Forecast o Work scheduling o Production resources/tools (PRT) Financial Accounting (FI) o Accounting 1-2 Controlling or Management Accounting (CO) o Costing 1-2 At this point, you do not need to maintain the Speedstar at all (since we are in the procurement case study), because it is a fabrication product which is not procured. Accordingly, the material does not feature a purchasing view and is mostly important for production. However, materials management (MM includes procurement) is primarily in charge of maintaining material master records at least for client-wide and materials management-own views (e.g. basic data, purchasing). Other departments then complete these master data regarding their own views (e.g. work scheduling view by production employees). Transaction MMF1 Material Industry sector
Speedstar-xyy Mechanical engineering Basic data 1 und 2 Sales & distribution: sales organization data 1 and 2 Sales: general plant data
Views
Hamburg [1000] Material storage [0001] Germany, Frankfurt [1000] Customer sales [10] page 27
Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP Basic data 1 Short description of the material Unit of measure division Gross weight Net weight SD: sales organization 1 Delivering plant Tax classification SD: General plant data Transportation group Loading group MRP 1 MRP type MRP controller Lot size MRP 2 Prod.stor.location Procurement type In-house production time SchedMargin key MRP 3 Tot.repl.lead time Availability check Work scheduling Prod.stor.location Accounting 1 Price control Standard price Valuation class Costing 1 Set flag Set flag DE Material origin With quantity structure Speedstar-xyy
Figure 17: Material master data Speedstar
Speedstar [PC] [00] piece Cross-division 18 kg 15 kg [1000] [1] [0001] [0002] [PD] [001] [EX] Hamburg Full taxes On pallets Fork lift truck Material requirements planning Controller 001 Lot-for-lot order quantity
[02] individual requirement [0001] [S] 3000 7920 Hamburg Standard price
page 28 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP To create a master record for a finished product in SAP ERP, select the following transaction: Logistics Materials Management Material Master Material Create (Special) Finished Product (transaction code: MMF1) 1. You can now see the create finished product screen. Enter Speedstar-xyy in the material field. The material you choose and name is defined client-wide. Next, click on the match code (symbol: ) to choose mechanical engineering as industry sector. No reference material is used. Go to the next dialogue by clicking or pressing Enter. 2. The next step is view selection. The selection of views is necessary to enable the creation of detailed material records in different departments. Please select the following lines: o Basic data 1 o Basic data 2 o SD: sales organization 1 o SD: sales organization 2 o Sales: general plant data o MRP 1 o MRP 2 o MRP 3 o MRP 4 o Work scheduling o accounting 1 o accounting 2 o costing 1 o costing 2 Close the dialogue (click or press Enter).
In contrast to usual operations, you will maintain all these data within this case study for didactic purposes. Usually, these specific views of the material master are created with reference to the corresponding organizational units. Thus, the accounting view is for example always created for a company code and the sales view is always created for a sales organization. Since a group can contain multiple company codes, sales organizations, or plants (cf. organizational structures chapter), this results in multiple master data segments for one particular material. The following figure illustrates this:
page 29 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Figure 18: Views and organizational units; SAP-HCC Magdeburg, integration case study LO (SAP ERP ECC 5.0), 2006
3. The following dialogue comprises information about the organizational unit, for which you are supposed to create the material. To enter, press the matchcode symbol or the F4 key, respectively. The Speedstar will be produced in plant Hamburg (1000) and stored in material storage (0001), which is affiliated with plant Hamburg (1000). Enter Germany, Frankfurt (1000) as sales organization. Enter customer sales (10) in the distribution channel field. Compare your data with the following figure:
Figure 19: Material storage 0001 in plant 1000: SAP system screenshot
Complete the dialog. 4. You will now see the first view basic data 1 for the newly created product. Enter Speedstar-xyy in the material description field. Enter piece (PC) under unit of measure for racing cycles. It is a cross-division product (division 00). Enter 18kg under gross weight and 15kg under net weight. Proceed to the next view by either clicking or pushing enter. Note: Change views only by clicking or pushing Enter. A manual selection of the next view by clicking on the next tab can result in the loss of provided data in the data fields, which may in turn cause a transaction failure. page 30 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP Additionally, please pay attention to fields marked with the symbol, since these fields are mandatory to be able to proceed to the next view or dialog, respectively In case you forgot to create a view, you can change this using the transaction MM01 (create transaction), but not using the MM02 (change transaction) one. MM02 (change transaction) can only be used for views already created in the system. 5. Since you do not need to enter any data in the basic data 2 view, proceed immediately to the next view. The classification view was skipped automatically, since it was not selected previously. 6. In the SD: sales organization 1 view, enter Hamburg (1000) under delivery plant. For Germany, enter full taxes (1) under tax classification. Complete the dialog pressing enter. 7. The sales: general plant data view contains the transportation group (Trans.grp) field in which you enter on pallets (0001) as well as the loading group (LoadingGrp) field, in which you enter fork lift truck (0002). 8. In the next view MRP 1, enter material requirements planning (PD) under MRP type. Furthermore, enter controller 001 (001) under MRP controller and enter Lotfor-lot order quantity (EX) under lot size. Go to the next dialog. 9. In the MRP 2 dialog, enter in-house production (E) under procurement type and 5 days under in-house production. The scheduling margin key (SchedMargin key) equals 000. Enter production storage location (prod.stor.location) 0001 under material storage (Hamburg). 10. Next, you see the MRP 3 view. Enter 15 days under total replenishment lead time (Tot.repl. lead time). Enter individual requirement (02) under availability check. Complete the dialog. 11. In the work scheduling view, enter material storage (0001) for the production storage location. Complete the view. 12. Within the view Accounting 1, enter standard price (S) into the price control field, 3000 into the standard price field, and finished products (7920) into the valuation class field. Switch to the next view. 13. Check the -box material origin and with quantity structure in the Costing 1 view. 14. Press the Button to maintain the language key for Germany. Type in DE as Language key and Speedstar-xyy in the description field. This step is necessary, since you are going to sell that product in Germany. 15. Safe the newly created material by pushing the -button or CTRL+S. The system displays a message confirming that the material was created. 3.2.2.2 Material master record: Basis-Module In the following table, relevant data for the Basis-Module is displayed. The Basis-Module is a semi-finished product, i.e. a temporary product in the production process, which will be utilized for the production of a Speedstar. Since the Basis-Module derives from in-house production and is only used for internal purposes (i.e. not for delivery), there is no need for maintaining sales and distribution views as opposed to the Speedstar. Furthermore, there are no taxes involved, since temporary products originate from in-house production and will thus be reprocessed.
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Transaction MMB1 Material Industry sector Basis-module -xyy Mechanical engineering Basic data 1 and 2 views MRP 1 to 4 Work scheduling Accounting 1 and 2 Costing 1 and 2 plant Storage location Basic data 1 Short description of the material Base unit of measure Division Gross weight Net weight MRP 1 MRP type MRP controller Lot size MRP 2 Procurement type Production storage location In-house production time Scheduling margin key MRP 3 Availability check Work scheduling Production storage location Accounting 1 Price control Standard price Valuation class Costing 1 Set flag Set flag Material origin With quantity structure
Figure 20: Material master data Basis-Module
Hamburg [1000] Material storage [0001] Basis-Module Speedstar xyy [PC] [00] piece cross divisions 13 kg 11 kg [PD] [EX] [E] 3 days [000] [02] Individual requirement Material requirements planning Lot-for-lot order quantity In-house production
page 32 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP To create a semi-finished product in SAP ERP, run the following transaction: Logistics Materials management Material master Material Create (Special) Semi-Finished Product (transaction code: MMB1) 1. You are now in the create semi-finished product dialog. Enter Basis-Module-xyy under material. The material you created is client-wide unique. Select mechanical engineering under industry sector by clicking the match code symbol . No reference material is used. Go to the next dialog by clicking or pushing enter. 2. The next step is view selection. The selection of views is necessary to enable the creation of detailed material records in different departments. Please select the following lines: o Basic data 1 o Basic data 2 o MRP 1 o MRP 2 o MRP 3 o MRP 4 o Work scheduling o Accounting 1 o Accounting 2 o Costing 1 o Costing 2 Complete the dialog (click or enter).
3.
4.
5.
6.
7. 8.
The following dialogue comprises information about the organizational unit, for which you are supposed to create the material. To enter, press the match code symbol or the F4 key, respectively. The Basis-Module will be produced in plant Hamburg (1000) and stored in material storage (0001), which is affiliated with plant Hamburg (1000). Complete the dialog. You will now see the first view basic data 1 for the newly created product. Enter Basis-Module Speedstar in the material description field. Enter piece under unit of measure. It is a cross-division product (division 00). Enter 13kg under gross weight and 11kg under net weight. Proceed to the next view by either clicking or pushing enter. Since you do not need to enter any data in the basic data 2 view, proceed immediately to the next view. The classification view was skipped automatically, since it was not selected previously. In the next view MRP 1, enter material requirements planning (PD) under MRP type. Furthermore, enter controller 001 (001) under MRP controller and enter Lotfor-lot order quantity (EX) under lot size. Go to the next dialog. In the MRP 2 dialog, enter in-house production (E) under procurement type and 3 days under in-house production time. The scheduling margin key (SchedMardin key) equals 000. Enter material storage Hamburg (0001) under production storage location (Prod.stor.loc.). Go to the next view. Next, you see the MRP 3 view. Enter individual requirement (02) under availability check. Complete the view. In the work scheduling view, enter material storage (0001) for the production storage location (Prod.stor.loc.). Complete the view. page 33
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Integrated business processes with SAP ERP 9. Within the view Accounting 1, enter standard price (S) into the price control field, (2000) into the standard price field, and semi-finished products (7900) into the valuation class field. Switch to the next view. 10. Check the -box material origin and with quantity structure in the Costing 1 view. Safe the newly created material by pushing the button or CTRL+S. The system displays a message confirming that the material was created. 3.2.2.2 Material master records: Frames In accordance with the already created material master records, you can find all relevant data for the frame. You can try to maintain the master records solely based on this table or you can choose to follow the subsequent step-by-step instructions. The frame is a raw material, which is procured externally. Correspondingly, it is the first material maintained from a materials management/purchasing point of view. Prior to saving your entries, you are advised to compare your results with the step-by-step instruction to avoid incorrect data sets.
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Integrated business processes with SAP ERP Transaction MMR1 Material Industry sector frame-xyy Mechanical engineering Basic data 1 and 2 Purchasing Views MRP 1 to 4 Accounting 1 Costing 1 Plant Storage location Basic data 1 Short description of the material Base unit of measure Material group Purchasing Purchasing group MRP 1 MRP type MRP controller Lot size MRP 2 production storage location Planned delivery key Scheduling margin key MRP 3 Availability check Accounting 1 Price control Standard price Valuation class Costing 1 Set flag Set flag Material origin With quantity structure
Figure 21: Material master control element
Hamburg [1000] Material storage [0001] Carbon frame for Basis-Module [PC] piece [020] Vehicles [000] Boss, H [PD] [EX] Material requirements planning Lot-for-lot order quantity
[0001] Material storage 3 days [000] [02] [S] 750 [3000] Raw materials 1 Individual requirement Standard price
page 35 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP To create the control element, please run the following transaction: Logistics Material Management Material Master Material Create (Special) Raw Material (transaction code: MMR1) 1. You are now in the create raw material dialog. Enter frame-xyy under material. Select mechanical engineering under industry sector. No reference material is used. Go to the next dialog by clicking or pushing enter. 2. Select the following views in the view selection dialog: o Basic data1 o Basic data2 o Purchasing o MRP 1 o MRP 2 o MRP 3 o MRP 4 o Accounting 1 o Costing 1 Complete the dialog. 3. The next dialog contains plant Hamburg (1000) and storage location material storage (0001). Please make sure you select material storage (0001) which belongs to plant Hamburg (1000). 4. You will now see the first view basic data 1. Enter carbon frame for Basis-Module in the material description field. Enter piece (PC) under unit of measure. The material group is vehicles (020). Proceed to the next view by either clicking or pushing enter. 5. In the purchasing view, you assign the material to the purchasing group of boss, H (000). Complete this view. 6. In the next view MRP 1, enter material requirements planning (PD) under MRP type. Once again, enter controller 001 (001) under MRP controller and enter Lotfor-lot order quantity (EX) under lot size. Go to the next dialog. 7. In the MRP 2 dialog, enter material storage (0001) under both production storage location (Prod. stor. location) and storage location for EP (Storage loc. for EP). The planned delivery time (Plnd delivery time) is 3 days. Again, the scheduling margin key equals 000. Go to the next view. 8. The next view is MRP 3. Enter individual requirement (02) under availability check. Go to the next view. 9. In the accounting 1 view, enter standard price (S) under price control and 750 as standard price. Assign the material to the valuation class raw materials 1. Proceed to the last view. 10. In the costing 1 view, set the flag for material origin and with quantity structure. Safe the newly created material by clicking on or pressing CRTL+S. The system displays a message confirming that the raw material was created. 3.2.2.3 Material master record: Wheel For routine reasons, the wheel is almost identical to the already created frame. Only material, short name, and price differ. You can try to enter the data by yourself (step-by-step guide follows below).
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Integrated business processes with SAP ERP Transaction MMR1 Material: Industry sector: Wheel-xyy Mechanical engineering Basic data1 und 2 Purchasing Views: MRP 1 to 4 Accounting 1 Costing 1 Plant: Storage location: Basic data 1 Short description of the material Base unit of measure: Material group Purchasing Purchasing Group MRP 1 MRP type MRP controller Lot size MRP 2 Production storage location Planned delivery key Scheduling margin key MRP 3 Availability check Accounting 1 Price control Standard price Valuation class Costing 1 Set flag Set flag Material origin With quantity structure
Figure 22: Material master data wheel
Hamburg [1000] Material storag4e [0001] Wheel for Basis-Module [PC] Piece [020] Vehicles [000] Boss, H [PD] [EX] Material requirements planning Lot-for-lot order quantity
[0001] Material storage 3 days [000] [02] [S] 100 [3000] Raw materials 1 Individual requirement Standard price
page 37 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP The wheel is procured from contractors as well. Therefore, select the following transaction: Logistics Material Management Material Master Material Create (Special) Raw Material (transaction code: MMR1) 1. You are now in the create raw material dialog. Enter wheel-xyy under material number. Select mechanical engineering under industry sector. No reference material is used. Go to the next dialog by clicking or pushing enter. 2. Select the following views in the view selection dialog: o Basic data1 o Basic data2 o Purchasing o MRP 1 o MRP 2 o MRP 3 o MRP 4 o Accounting 1 o Costing 1 Complete the dialog. 3. The next dialog contains plant Hamburg (1000) and storage location material storage (0001). Go to the next view. 4. In the first view basic data 1, enter wheel for Basis-Module in the material description field. Enter piece (PC) under unit of measure. The material group is vehicles (020). Proceed to the next view. 5. In the purchasing view, you assign the material to the purchasing group of Boss, H (000). Complete this view. 6. Next is the view MRP 1. Enter material requirements planning (PD) under MRP type. Once again, enter controller 001(001) under MRP controller and enter Lot-forlot order quantity (EX) under lot size. Go to the next dialog. 7. In the MRP 2 dialog, enter material storage (0001) under both production storage location (Prod. stor. location) and storage location for EP (Storage loc. for EP). The planned delivery time is 3 days. Again, the scheduling margin key equals 000. Go to the next view. 8. The next view is MRP 3. Enter individual requirement (02) under availability check. Go to the next view. 9. In the accounting 1 view, enter standard price (S) under price control and 100 as standard price. Assign the material to the valuation class raw materials 1 (3000). Proceed to the last view. 10. In the costing 1 view, set the flag for material origin and with quantity structure. Safe the newly created material by clicking on or pressing CRTL+S. The system displays a message confirming that the raw material was created. 3.2.2.4 Material master record: Chain The chain is concerning its data quite similar to the already created raw materials. Correspondingly, you can merely find a tabulation of the data you need to enter. Enter the data given in the table below to create the material master record for the chain in the system. The SAP ERP system facilitates creation, as you may use the master data of the already created frame as reference. Therefore, additionally enter in the reference/material field framexyy. Select the particular views in the subsequent dialog. Next, enter plant 1000 and material storage 0001 and enter the same data in the corresponding fields on the right hand side below the reference. Subsequently, you can see that the system enters all required data from the page 38 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP reference in the current material master. Click through all views pressing enter to confirm them. Please pay attention to your manual entries in the planned delivery time and standard price fields. Transaction MMR1 Material Industry sector Chain-xyy Mechanical engineering Basic data1 und 2 Purchasing Views MRP 1 to 4 Accounting 1 Costing 1 Plant Storage location Basic data1 Short description of the material Base unit of measure Material group Purchasing Purchasing group MRP 1 MRP type MRP controller Lot size MRP 2 Production storage location Planned delivery time Scheduling margin key MRP 3 Availability check Accounting 1 Price control Standard price Valuation class Costing 1 Set flag Set flag Material origin With quantity structure
Figure 23: Material master data chain
Hamburg [1000] Material storage [0001] Chain for Basis-Module [PC] piece [020] Vehicles [000] Boss, H [PD] [EX] Material requirements planning Lot-for-lot order quantity
[0001] Material storage 4 days [000] [02] [S] 75 [3000] Raw materials 1 Individual requirement Standard price
page 39 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP 3.2.2.5 Material master data: gearing The last data set you need to create is for the Basis-Modules gearing. Please pay attention to the differences to the already created data sets as the gearing is a trading good. Trading goods are movable goods intended for commercial exchange. Correspondingly, you will commence running a different transaction. Transaction MMH1 (!) Material Industry sector Gearing-xyy Mechanical engineering Basic data 1 und 2 Purchasing Views MRP 1 to 4 Accounting 1 Costing 1 Plant Storage location Basic data 1 Short description of the material Base unit of measure Material group Purchasing Purchasing group MRP 1 MRP type MRP controller Lot size MRP 2 Production storage location Planned delivery time Scheduling margin key MRP 3 Availability check Accounting 1 Price control Standard price Valuation class Costing 1 Set flag Set flag Material origin With quantity structure
Figure 24: Material master data gearing
Hamburg [1000] Material storage [0001] Gearing for Basis-Module [PC] Piece [020] Vehicles [009] Mueller, K [PD] [EX] Material requirements planning Lot-for-lot order quantity
[0001] Material storage 6 days [000] [02] [S] 500 [3100] Trading good 1 Individual requirement Standard price
page 40 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP Therefore, select the following transaction: Logistics Material Management Material Master Material Create (Special) Trading Good (transaction code: MMH1) 1. You are now in the create trading good dialog. Enter gearing-xyy under material. Again, select mechanical engineering under industry sector. No reference material is used. Go to the next dialog by clicking or pushing enter. 2. Select the following views in the view selection dialog: o Basic data1 o Basic data2 o Purchasing o MRP 1 o MRP 2 o MRP 3 o MRP 4 o Accounting 1 o Costing 1 Complete the dialog. 3. The next dialog contains plant Hamburg (1000) and storage location material storage (0001). Go to the next view. 4. In the first view basic data 1, enter gearing for Basis-Module in the material description field. Enter piece (PC) under unit of measure. The material group is vehicles (020). Proceed to the next view. 5. In the purchasing view, you assign the material to the purchasing group of Mueller, K (009). Complete this view. 6. Next is the view MRP 1. Enter material requirements planning (PD) under MRP type. Once again, enter controller 001(001) under MRP controller and enter Lot-forlot order quantity (EX) under lot size. Go to the next dialog. 7. In the MRP 2 dialog, enter material storage (0001) under both production storage location (Prod. stor. location) and storage location for EP (storage loc. for EP). The planned delivery time is 6 days. Again, the scheduling margin key equals 000. Go to the next view. 8. The next view is MRP 3. Enter individual requirement (02) under availability check. Go to the next view. 9. In the accounting 1 view, enter standard price (S) under price control and 500 as standard price. Assign the material to the valuation class trading goods 1 (3100). Proceed to the last view. 10. In the costing 1 view, set the flag for material origin and with quantity structure. Safe the newly created material by clicking on or pressing CRTL+S. The system displays a message confirming that the raw material was created. Note: Please carefully process the case studies and pay attention to all given specifications. Additionally, you should double-check your entries frequently and correct if needed as exemplified below (transaction MM03. Mistakes and errors, which you note not until later in the case studies are quite difficult to eliminate or may be irreversible as well. Bear in mind that when completing a process-step, you hand over a plan etc. to another department for further processing and you wouldnt want to make a bad impression, right?
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Integrated business processes with SAP ERP 3.2.2.6 Displaying material master data To display material master data in the system, please select: Logistics Materials Management Material Master Material Display Display Current (MM03) In the initial window, you can enter the following materials in the material field - Speedstar-xyy - Basis-module-xyy - frame-xyy - wheel-xyy - chain-xyy - gearing-xyy Next, press Enter. In the select views dialog, select the views you are interested in. - General Data o Basic data 1 o Basic data 2 o Classification - SD = Sales & Distribution o Sales: Sales org. data 1 o Sales: Sales org. data 2 o Sales: General/plant data o Foreign trade: Export o Sales text - MM = Material Management o Purchasing o Foreign trade: Import o Purchase order text - LE-WM = Logistic Execution Warehouse Management o General plant data/storage 1-2 o Warehouse management 1-2 o Quality management - PP = Production Planning o MRP 1-4 o Forecasting o Work scheduling o Production resources/tools - FI = Financial Accounting o Accounting 1-2 - CO = Controlling/Management Accounting o Costing 1-2 The organizational data for your materials are as follows: Plant 1000 Storage location 0001 Purchasing organization 1000 Sales organization 1000 Distribution channel 10 page 42 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Additionally, please look at the other materials required for bicycle production. These materials already exist in plant 1000. Correspondingly, you do not need to maintain these material master records anymore. Another employee (your course supervisor) already created these materials and do thus not feature a user name containing xyy! Pedal Brakes Handlebar Saddle
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Integrated business processes with SAP ERP 7. ABC indicator 8. Automatic purchase order A select
10. Safe your entries. The system provides you with a number for the vendor account. Please list this number without the left-hand zeros. Vendor account: ______________________________________ Now that you created the vendor, the next step is the creation of the purchasing info records.
6. Safe your entries and list the number of the info record: page 45 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Purchasing info record (Frame): ________________________________ 7. Next, enter material wheel-xyy in the create info record initial screen (transaction code ME11). The other entries are equivalent to the prior task. Press enter. 8. Once again, click the icon. Enter a standard quantity of 200 pieces and a net price of 100 EURO. 9. Click on the -icon. Select condition type PB00 and click on the icon (scales). 10. To configure the condition, enter 100 EURO in the price field from a scale quantity of 1 piece and from a scale quantity of 1000 enter a price of 80 EURO. 11. Safe and list the info record number. Purchasing info record number (wheel): ________________________________ 12. Proceed analogously for material chain (chain-xyy). Enter 100 pieces in the standard quantity field as well and enter 75 EURO in the net price field. 13. Click on the -icon. Select condition type PB00 and click on the - icon (scales). 14. To configure the condition, enter 75 EURO in the price field from a scale quantity of 1 piece and from a scale quantity of 500 enter a price of 65 EURO. 15. Safe and list the info record number. Purchasing info record number (chain): ________________________________ 16. Proceed analogously for material gearing (gearing-xyy). Enter 100 pieces in the standard quantity field as well and enter 500 EURO in the net price field. 17. Click on the -icon. Select condition type PB00 and click on the - icon (scales). 18. To configure the condition, enter 500 EURO in the price field from a scale quantity of 1 piece and from a scale quantity of 500 enter a price of 450 EURO. 19. Safe and list the info record number. Purchasing info record number (gearing): ________________________________ With it you created purchasing info records for those primary products and commodities being integrated into the production of the end product or intermediate goods, respectively. You may have observed that the system displayed only relevant views on the material master file for you in the role employee (purchasing). However, information originating from other departments material master was already existent and visible to you. From a materials management/purchasing point of view, you maintained all relevant master data (material, vendor, purchasing info records, conditions). Next, you will focus on the procurement process. However, before that theoretical background will be presented.
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4 Procurement process
4.1 Theory procurement process
The following section delivers insight into the procurement process of the SAP ERP system.
The external procurement process requires the following five process steps: 1. Requirements determination: In case of material requirements, the responsible department may manually hand a purchase request over to the purchasing department. If a MRP procedure is in place for a material in the material master data (in our case always material requirements planning however other types are possible as well), the SAP MRP module automatically generates an order. The abbreviation MRP stands for Material Requirements Planning, which accounts for the in-line with demand allocation of materials. 2. Determining the source of supply: The SAP ERP system assists the responsible procurement agent (for our materials: purchasing group 000 (raw materials) and 009 (trading goods)) with the determination of supply sources, e.g. vendors, in many ways. One possible way of determining the supply source is the creation of requests and consequently the evaluation of offers.
page 47 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP 3. Vendor selection: The SAP system allows for price comparisons and facilitates thus the vendor selection. A comparison of bids may for example disclose the cheapest vendor. Additionally, rejection letters may be processed automatically (in our case studies, we already created a vendor which will be used later on to procure materials from). 4. Purchase order processing: When creating purchase orders, the system features entry aids. Thereby, information from master records is automatically transferred to purchase orders. 5. Order monitoring: the purchaser in charge can monitor the order status online anytime and may intervene if necessary. Thus, the purchaser can determine whether goods receipt or invoice receipt processes are already completed. Additionally, the SAP ERP system features dunning procedures. 6. Goods receipt: The SAP system checks for example the goods receipt quantity in comparison to the order quantity and in case of deviations, the system can automatically issue warnings for the corresponding department. 7. Invoice verification: The system checks vendor invoices regarding formal or logical errors. 8. Payment handling: Usually, financial accounting is in charge of vendor payment.
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In general, the responsible buyer converts purchase requisitions into purchase orders. Thereby, you have the following options: If you have not entered a valid source of supply for the corresponding material-vendor relationship yet, the purchase order can be created with reference to the purchase requisition. The reference to the purchase requisition can be made both on the initial screen as well as on the item overview for purchase order entry. Prior to converting a purchase requisition into a purchase order, the buyer needs to determine the source of supply. Valid info records or outline agreements can be entered into the purchase requisition. Then, the responsible buyer converts the purchase requisition manually, or the system converts it automatically.
page 49 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
When procuring consumable materials without material master record, you need to enter the following data along with the account assignment category: - Short text (description) - Material group - Order unit In case you create a purchase order with account assignment, you need to enter e.g. a cost center or an asset number, depending on the account assignment category. Depending on the page 50 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP account assignment category, the system can suggest a G/L account number for the consumption account using automatic account determination. The SAP system in standard configuration contains for example the following consumable materials with material master record: - Material type: non-stock material (NLAG): quantity and value are not updated - Material type: non-valuated material (UNBW): quantity is updated, but value is not. - Consumable materials with material master record are required to have an account assignment.
page 51 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP can display subsequent documents (material and invoice documents) from the purchase order history screen to monitor order progression.
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page 54 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
1. Enter the following data in the first line of the item overview: a. Account assignment type: not specified b. Material: gearing-xyy c. Quantity requested: 100 d. Delivery date: current date + 1 week e. plant: 1000 f. Press Enter 2. Next, enter the following data in the second line of the item overview a. Account assignment type: cost center [K] b. Material: gearing-xyy c. Quantity requested: 10 d. Delivery date: current date + 1 week e. plant: 1000 f. Press Enter. The system displays an error message prompting you to enter a cost center as account assignment type. page 55 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP 3. Therefore, enter cost center 4298 and G/L account 400000. Cost center 4298 is part of the IDES groups engineering. 4. Press Enter once again. The system automatically fills in the spare fields using the cost centers master data. If the system warns you that the specified date is not a working day, elide the message pressing enter. Next, you should see the following figure:
Safe your created purchase requisition and list the number of the purchase requisition on your data sheet. Leave the transaction. Purchase requisition (gearing): ________________________________
2. In the document overview (left window), select your purchase requisition number and click adopt ( ). Data from the purchase requisition is transferred into the fields of the purchase order (on the right hand side of the screen). 3. Enter the following data in the order header: a. Vendor: Your vendor number b. Purchasing organization: 1000 c. Press Enter 4. The system issues a notification in the status bar (at the bottom of the screen) that you can reach a lower price from an ordered quantity of 500 pieces. Therefore, the system used information about price conditions regarding the combination vendor-material from the purchasing info record, which you already maintained. Since we want to order merely 110 pieces, skip the message pressing Enter. 5. Safe the purchase order and list the purchase order number. 6. Skip a possible notification regarding occurred messages with safe. This is a warning concerning the possibility that a message was not issued. The reason for that is an incomplete SAP customizing Purchase order (gearing): ______________________________________________
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Integrated business processes with SAP ERP 4. The processing status of both positions should say that both orders were created (PO created). The status of a document (purchase order, purchase requisition, order, etc.) is important in SAP ERP. Depending on the status, it is defined which subsequent functions are applicable. Thus, the system avoids the creation of further purchase orders with reference to this purchase requisition.
Figure 39: Processing status of the purchase requisition: SAP system screenshot
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Note: The transaction type for an order item is located in the item detail section in the delivery tab. Regarding production orders, you can find the transaction type in the goods receipt tab. When posting to stock, stock quantity and stock value will be updated (exception: material types without value updates).
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Your material order was delivered completely by your vendor. Next, you have to post goods receipt.
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9. Safe the document and list the document number. Document number goods receipt ______________________________________
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2. Select the Doc. info tab in the header data and then click the button to branch into the payment document. 3. Double-click on accounting document in the dialog box documents in accounting. Double-check the documents information. 4. You can see from the posting document that 100 pieces of gearings were booked to account number 310000 and 10 pieces were posted directly as consumable materials. For the latter ones, the constructing division was specified as account assignment object. In doing so, consumption is not posted to material, i.e. to the stock of materials, but to the cost center 4298. Costs of cost center 4298 were posted to account 400000. The account 191100 is used for offsetting entry. 5. Go back to your material document and select the Where tab. Click the -button to check changes to the stock. 6. Now you can see that 100 pieces of material gearing were added to the inspection stock. Since the 10 pieces for the construction division were posted to consumable materials as account assignment object and since thus the stock is updated neither by quantity nor by value, they are not listed.
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To display other stock types (reserved stock, planned receipts, available stock, etc.) in the stock overview, you can scroll to the right or double-click the line of the plant.
In the status tab page, in the header of the order document you can see that the order status is characterized as fully delivered.
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Integrated business processes with SAP ERP for maintenance needs. Serial numbers are activated in materials management and used in inventory management. Integration in logistics: Inventory management can be extended by the warehouse management system (WMS), which manages storage location regarding complex warehouse structures. While inventory management manages stock quantity and stock value, WMS is occupied with handling and monitoring of warehouses.
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4. Choose safe and list the document number. Invoice document number: _______________________________________________ Remain in the MIRO transaction.
4. Leave the accounting document by pressing the back button. Close the dialog box list of documents in accounting. 5. In the item overview, select the purchase order number with a double-click to display the purchase order history.
6. Then, select in the order item detail section the purchase order history tab. You can see that the accounting document is displayed together with the goods receipt document due to invoice entry.
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Integrated business processes with SAP ERP Leave the purchase order history and the invoice document dialog.
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7 Reporting
In this chapter, you will learn about tools for displaying and formatting information by the means of list display, evaluations, and the logistics information system of SAP ERP.
Integrated business processes with SAP ERP orders, e.g. purchase orders for which no invoice has been received or expired scheduling agreements. Scope-of-list parameters determine which data is displayed concerning a selected document (which lines appear in a report). The scope-of-list parameter is a feature that manages the data range displayed for evaluations. You can choose if you want a list to be displayed in short form or if you want the list to contain more information (e.g. lines for quantity and value of open purchase orders or the period of outline agreements). Moreover, the purchase order history can be displayed in additional lines in the list. Using scope-of-the-list parameters, you can determine whether the list is issued with ALV Grid Control (the ALV Grid Control is a tool for displaying tabular data in different applications within SAP ERP in case ALV Grid Control is not used for an output, you receive listed, not tabular data which is a less flexible and less functional way of displaying information. However, the complete functionality of ALV Grid Control cannot be applied to all types of lists). In addition to the list displays for documents and master data, the purchasing menu contains general analyses, the purchase order value analysis, and goods receipt forecast reports.
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Integrated business processes with SAP ERP Not all lists can employ the complete functionality of ALV Grid Control. However, some lists feature special functions over and above the functionality of the List Viewers. They can modify appearance and content of lists using the layout (display variant). The key elements of SAP List Viewer and ALV Grid Control can be summarized as follows: - Identical appearance of all lists and tables - Inter-application, standardized functionality with homogeneous icons - Simple creation and change of layouts (display variants)
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Integrated business processes with SAP ERP Create subtotals: In case you create a sum for at least one column in a list, you can create subtotals in addition. Subtotals can be created for one or more selected columns without value or quantity columns. Layout: You can modify the appearance of a list using layouts or display variants. Note: The particular list determines whether you can use a layout or display variant.
Figure 68: Functions of the SAP List Viewers/ ALV Grid Control
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The list is sorted by vendor and purchasing document, but you want to create an output of the list sorted by vendor and material. Change the sort sequence and safe this setting as userspecific layout myLayout-xyy. 1. Therefore, choose Settings Layout Change. 2. Choose the sort order tab. 3. Position your cursor on the purchasing document on the left hand side of the screen and choose remove sort criteria.
4. Position the cursor on material in the right half of the screen and choose add sort criterion. 5. Choose save layout. page 90 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP 6. Enter the following data in the dialog box (save layout): a. Save layout myLayout-xyy b. Description myLayout-xyy c. Client-specific indicator selected d. Pre-set indicator selected 7. Confirm to save the layout again. 8. The dialog box change layout will be displayed again. Confirm once more to display the list with the new layout (sort). Furthermore, display the columns order quantity and to be delivered for each position after the column material group. 1. Choose the column purchase order quantity (quantity) and drag & drop it on the left, next to the column material group. 2. Repeat the last step for the to be delivered column.
3. Choose Settings Layout Save. Choose your layout myLayout-xyy and choose continue to copy the values in the layout. 4. In the dialog box, choose yes. 5. It is not necessary to save your work. Finally, you will perform another analysis by the means of the purchasing information system (using the path Logistics Logistics Controlling you can find all info systems, which were explained theoretically earlier in this section). You will now determine the vendors volume of procurement in the company for the purchasing organization 1000. Choose therefore Logistics Logistics Controlling Purchasing Information System Standard Analyses Vendor (MCE3) page 91 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
1. Enter the following data on the selection screen: a. Purchasing organization 1000 b. months 01.2004 current date c. Choose execute (F8) 2. You get the following initial list (or similar to this one):
3. In addition to the vendor name, you want to display the key for this attribute. Select the corresponding characteristic display by choosing Settings Characteristic Display Key and Text. In case the column width is not sufficient, you can extend is by double-clicking the column header and entering a larger value for the column width.
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Figure 79: Purchasing information system - key and text: SAP system screenshot
4. Next, you need information about the number of purchase order items and the number of deliveries. Add these two key figures to the initial list. Therefore, choose Edit Choose Key Figures a. Select the key figures PO items and deliveries and choose execute. Confirm your selection with Enter. b. The orders and deliveries columns are displayed additionally in the initial list.
Figure 80: Purchasing information system key figures selection: SAP system screenshot
5. Determine the most important vendor as measured by order value. For your strategy of analysis, please consider the percentage sum of the order value. Therefore, please perform an ABC analysis for the key figure purchase order value. Segment A is 70 %, segment B 20 %, and segment C is 10 %. Check the complete list for the ABC analysis of the purchase order value. Which vendor has the highest purchase order value? List the answer on you data sheet. a. Position your cursor on the purchase order value column and choose Edit ABC analysis. b. Choose the strategy total PO value (%) and confirm your selection with enter. c. Accept the proposed segment sized. page 93 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami
Integrated business processes with SAP ERP d. Choose total list in the graphical display to display the entire list of the ABC analysis.
Figure 81: Purchasing information system ABC analysis: SAP system screenshot
Most important vendor: _______________________________________________________ When you want to comprehend the results of your analysis, it is important to know the selection criteria of the analysis. This is why you should take a closer look at the selection protocol of the ABC analysis. If you want to display the selection log, you have to leave the ABC analysis dialog and return to the initial list. After that, choose Extras -> Select Log. A dialog window with the selection values is displayed. The info structure is S012 purchasing. A vendor analysis was conducted in the purchasing information system. Info structures are database tables, in which period-dependent data from the operative applications is updated. They consist of characteristics, which are suited for summarization (e.g. purchasing organization), and of key figures (e.g. revenue). Exit the analysis without saving.
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8 Completion
Congratulations! You completed the procurement case study. The subsequent case studies are based on the results of this case study. In case your data differs from the description in the script, please contact your tutor prior to processing another case study. In the first case study procurement in SAP ERP, you learned about the functional area materials management. Finally, please submit the carefully completed data sheet to your tutor (use support email address) for the case study procurement. Please comply with the naming rules. Non-compliant data sheets will not be accepted; i.e. rename the document that you downloaded from this courses download area as follows: 01-procurement-xyy-zzz-surname.doc Thereby, you need to replace xyy with your user number without the WIP and without the hyphen (WIPx-yy) and replace zzz with the number of the client you are working on. Example: Your name is Max Mustermann, you are working on client 901, and your user number is WIP8-99. Then, name the document as follows: 01-procurement-899-901-Mustermann.doc
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9 Reflections
9.1 Questions
General questions concerning organizational levels in procurement processes 1 List all organizational levels relevant to the procurement process. ___________________________________________________________________________ ___________________________________________________________________________ 2 May more than one company code be assigned to a particular plant? ___________________________________________________________________________ ___________________________________________________________________________ 3 May a storage location number appear in different plants several times? ___________________________________________________________________________ ___________________________________________________________________________
True or False? 4 A particular purchasing organization can purchase materials or services exclusively for one plant only. ______________________________________________________ 5 A particular plant is assigned to one particular purchasing organization. ______________________________________________________ 6 A purchasing group is only assigned to one particular purchasing organization. ______________________________________________________ 7 Creating a master record for a vendor requires the immediate entry of all relevant data for purchasing and accounting in one single step. ______________________________________________________ 8 A company code has to be assigned to a purchasing organization. ______________________________________________________
Cloze text 9 10 Without specifying a ____________________, no goods movements can be entered. Clients, _________ and___________ are examples of organizational levels being important for maintaining material master records.
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Multiple Choice Questions 11 What are the effects of entering a goods receipt against a purchase order? (More than one Answer are correct!) The purchase order is deleted. An accounting document can be generated. For each item, a material document is created. The purchase order history is updated for each order item. A material document is created. A credit item is created automatically for the vendor on the amount of the delivery value.
A B C D E F
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Yes, despite of identical storage location number or storage location name, respectively, the storage locations are independent organizational units with individual inventory management. True or False? 4 A particular purchasing organization can purchase materials or services exclusively for one plant only.
False cross-plant and cross-company code purchasing! 5 A particular plant is assigned to one particular purchasing organization.
False cross-plant and cross-company code purchasing! 6 A purchasing group is only assigned to one particular purchasing organization.
False! 7 Creating a master record for a vendor requires the immediate entry of all relevant data for purchasing and accounting in one single step..
False SAP ERP additionally offers the possibility of de-central vendor master record maintenance. Purchasing and accounting views can be maintained separately. 8 A company code has to be assigned to a purchasing organization.
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Integrated business processes with SAP ERP Cloze text 9 10 Without specifying a transaction type, no goods movements can be entered. Clients, plant and storage location are examples of organizational levels being important for maintaining material master records.
Multiple Choice Questions 11 What are the effects of entering a goods receipt for a purchase order? (More than one Answer are correct!) The purchase order is deleted. An accounting document can be created. For each item, a material document is created. The purchase order history is updated for each order item. A material document is created. A credit item is created automatically for the vendor on the amount of the delivery value.
A B C D E F
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