Business Process Procedures

SAP Best Practices SAP Best Practices Baseline EN Package APOV1.600: Solution Scope

SAP ECC 6.00June 2007August 2000August 2000EnglishEnglish

SAP Best Practices Baseline Package APOV1.600

SAP AGNeurottstr. 1669190 WalldorfGermanySolution Scope

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ContentsSAP Best Practices Baseline Package V1.600: Solution Scope61Purpose62Functional Scope Supported Business Processes or Scenarios62.1Organizational Structure62.2Financial Accounting72.3Standard Cost and Profit Center Accounting72.4Materials Management82.5Sales & Distribution92.6Production Planning and Control92.7Quality Management102.8Travel Management112.9Asset Management112.10Cash Management122.11Project System132.12Product Cost Planning142.13Batch Management142.14Profitability Analysis152.15Cost Object Controlling - Make-to-Order162.16Cost Object Controlling - Make-to-Stock162.17Cost Object Controlling - Repetitive172.18Human Capital Management182.19SD/MM Services192.20Customer Service/Plant Maintenance202.21On-Site Repair Services212.22Repairs and Returns at Plant222.23Preventive Maintenance232.24Internal Maintenance for IT Services242.25Spot Consulting262.26Project with Fixed Price and Time and Material Billing272.27Contract with Auto-Creation of Project, Down Payments, Personnel Assignment and Milestone Billing282.28Project with Resource-Related Inter-company Billing292.29Procurement of Stock Material302.30Procurement of Stock Material (specially for India)312.31Procurement Contract322.32Internal Procurement (Stock Transfer With Delivery)332.33Internal Procurement (Stock Transfer from Depot to Plant - ROH Material Type)342.34Internal Procurement (Cross-Company Stock Transfer)352.35Third Party with Shipping Notification352.36Third Party Without Shipping Notification362.37Bought-In Item362.38Extended Sales Order Processing372.39Customer Consignment Processing382.40Returns and Complaints382.41Returnables Processing392.42Batch Recall392.43Cross Company Sales Order Processing402.44Sales Order Processing with DUMMY Customer412.45PP and Discrete Manufacturing Make-to-Stock412.46PP and Process Manufacturing Make-to-Stock422.47Make-to-Order (MTO) Quotation Processing/Order Processing432.48Repetitive Manufacturing442.49Procurement of External Services ( Specially for India)462.50Procurement of Imported Materials ( Specially for India)472.51Procurement of Capital Material to Manufacturing Plant ( Specially for India)472.52Subcontracting without Payment of Excise Duty ( Specially for India)482.53Procurement of Trading Material ( Specially for India)492.54Physical Inventory with Balance Sheet Valuation492.55Long-Term Service Order Processing w. Settlement502.56Sale of Service (Specially for India)502.57Export Sales Under Bond (Specially for India)512.58Excise Periodic Processing ( Specially for India)522.59Sale At Depot ( Specially for India)532.60Deemed Export ( Specially for India)533Functional Scope Functions543.1Financials553.2Human Resources573.3Operations: Value Generation593.4Operations: Support743.5Corporate Services:82

SAP Best Practices Baseline Package APOV1.600: Solution ScopePurposeThis solution scope provides an overview of the processes and functions covered by SAP Best Practices Baseline Package EN V1.600. It describes the functions and explains their business purposes. Under Functional Scope Supported Business Processes or Scenarios, you will find a scenario-based view of the functions. Under Functional Scope Functions, you will find a view arranged according to groups of functions and based on the relevant SAP Solution Map.

The solution scope does not provide technical explanations of how to use the functions. For further information on this topic, see the business process procedure documents.

Functional Scope Supported Business Processes or ScenariosOrganizational StructurePurposeThis building block sets up an enterprise structure within an SAP Best Practices solution. When activated a generic organizational structure for related country/region is created in the system. Each BC Set contains parameters that can be overwritten, and either creates an org. unit or assigns an org. unit. The eCATTs can be reused to create further organizational units. Function ListThe following functions are provided to support the J02 building block: Creation and assignment of all organizational units needed for SAP Best Practices installation Use of variable fields in the eCATT supports implementation of own organizational data J02 provides a framework for an organizational structure. Additional data are implemented with the installation of further building blocks. Key Points Preconfigured organizational settings Easy installation procedure by usage of a step-by-step approach. eCATTs provide for fast implementation methodology. Country-generic framework (must be completed by local requirements via activation of country specific building blocks, i.e. - Financial Accounting) Financial AccountingPurposeThis building block provides evaluation, implementation, and support for the external accounting processes in "SAP Financials". Its purpose is to reduce the implementation effort and to meet the concrete requirements of your enterprise in the best possible manner. The Financial Accounting building block can be integrated into existing system landscapes, and can also be used when setting up new systems. eCATTs containing the system settings for accounting processes are used. Complete documentation of the processes and pre-configuration also helps you to make the selections you need. Function ListThe following functions are provided to support the N70 External Financial Accounting: General ledger accounting Accounts payable accounting Accounts receivable accounting Bank accounting Closing activities Key PointsThe FI building block can be used by midsize enterprises operating on a national level, as well as by groups operating on a global level. The building block is based on local legislation. This building block can be used as the basis for setting up integrated solutions.

Standard Cost and Profit Center AccountingPurposeThis building block is used to set up industry-independent Overhead Cost Controlling and Profit Center Accounting. This creates a basis for industry-specific enhancements.Function ListThe following functions are provided to support the Central Cost Center Accounting Building Block (N71). Overhead Cost Controlling Master data Planning Actual postings Period end closing Profit Center Accounting Actual postings Reporting Key Points Industry-independent Cost Center Accounting is set up. This can be used as a basis for a customer-specific enhancement. Planning processes can be performed. Profit Center Accounting is set up. This can be used as a basis for a customer-specific enhancement. The profit centers are used instead of business areas. Period accounting is used. This building block can be used to perform period-end closing in Cost Center Accounting and Profit Center Accounting. The relevant processes are shown as examples. Materials ManagementPurposeThis building block contains the generic Materials Management functions in the Baseline Package. Function ListThe building block consists covers the following areas: Material Master Consumption-Based Planning Purchasing Inventory Management Physical Inventory Valuation and Account Assignment Logistics Invoice Verification Key PointsThe following functions are provided to support the J05 building block: Installation Role eCATTs and external files for creating master data Configuration settings Master data for setting up printing Print forms

Sales & DistributionPurposeThis building block makes up the generic functionality for Sales and Distribution in the SAP Best Practices Baseline Package. Function ListThe following functions are provided to support the J04 Sales and Distribution building block: Installation role Configuration settings Master data Print forms assignments Key Points Preconfigured SD settings Easy to install by following the installation role provided Documentation

Production Planning and ControlPurposeThis building block contains all the necessary activities and settings required for production and implementation of the master data for the Production Planning and Control System.Function ListThe building block contains the major activities within the production area and following functions are provided to support the Production Planning and Control building block: Basic data for Production Planning and Process Industries Settings for sales and operations planning Essential settings required for materials requirement planning Essential settings required for shop floor control Basic settings for process order Settings for Quality Management

Quality ManagementPurposeThis building block describes all of the activities necessary when activating the Quality Management basic settings for PP-PI, Materials Management (MM) and Sales and Distribution (SD) processes.Function ListThe following functions are provided to support and enable the Quality Management core building block: Maintenance of master data for inspection plans, for example, the creation of catalogs and selected sets Creation of Quality Management views in the material master with relevant inspection types for each material General Quality Management Customizing for PP-PI, MM and SD Customizing for SD including inspection type 06 for returns without a task list, and only with defect recording. The SD Customizing also contains settings for the notification type complaints Key Points Basic steps to setting up batch management are well documented. Examples of classes and search strategies are simple yet effective.

Travel ManagementPurposeThe Add-On for Travel Management shows how an employee can make his/her own travels arrangements. All of the expenses claimed are verified against the travel policy of the company.If the employee enters travel data in connection with the Cross-Application Time Sheet (CATS), data such as trip dates and cost assignment are pre-filled.The purpose of the business scenario provided for Travel Management is to offer integrated management of all of the travel expenses incurred: From the request/approval stage (optional) To the point at which the travel expenses are posted to Financial Accounting and allocated on a cause basis in Cost Accounting. To the reimbursement of travel expenses to the employee. Function ListThe following functions are included in the J09 Travel Management building block: Travel request (optional) Approval of the travel request (optional) Entry of travel facts Individual receipts Posting to FI/CO with cost assignment Reimbursement of expenses to employees Asset ManagementPurposeThis building block provides evaluation, implementation, and support for the asset management processes in "mySAP Financials". Its purpose is to reduce the implementation effort and to meet the concrete requirements of your enterprise in the best possible manner. The Asset Management building block can be integrated into existing system landscapes, and can also be used when setting up new systems. Business Configuration Sets containing the system settings for asset management processes are used. Complete documentation of the processes and pre-configuration also helps you to make the selections you need. Asset Management is a sub-ledger accounting for general ledger accounting and is used to manage and document in detail the activities in the fixed assets. The FI-AA system allows you to update the depreciation and the changes to the asset balance sheet value of Asset Management in the general ledger accounting of the SAP R/3 System. Different additional cost accounting account assignments can also be made for these activities.Function ListThe following functions are provided to support the N72 Asset Management building block: Master data Asset transactions Periodic processingKey Points The processing of tangible assets allows the development of the fixed assets to be represented and documented for accounting purposes. Depreciation can be transferred directly to FI Financial Accounting and to cost center accounting.

Cash ManagementPurposeThe daily treasury process within a company comprises a wide range of transactions, from determining the current liquidity based on bank account balances (cash position) and open receivables and payables (liquidity forecast), through to manually entering planned payment flows (advices) and carrying out cash concentration (the concentration of several bank account balances onto one target account).The main aim is to ensure sufficient liquidity for all payment obligations that become due. Another aim is to ensure that the incoming and outgoing payment flows are optimally controlled and monitored.SAP R/3 Cash Management creates a basis for decisions for the resulting investment or borrowing transactions in SAP R/3 Financial Supply Chain Management. Function ListThe following functions are provided to support the Cash Management building block: Status analysis Cash concentration Key Points Cash Management is used to monitor payment flows and safeguard liquidity so that you can meet your payment commitments You can carry out your cash planning

Project SystemPurposeThe Project System building block contains the configuration steps that are specific for the project system.Function ListThe following functions are included in the J12 Project System building block: Basic settings for WBS structure Project type Field key Graphics profile DB profile Basic settings for networks Planner groups Procurement indicators for material components Time profile Planning board profile / Gantt chart profile Workforce planning profile Overall profile Network type Standard network profile Network profile Cost component structure General settings for projects Status profile Payment schedule Simulation profile Cost planning profile Tolerance limit Budget profile Easy cost planning CO versions for ECP Costing variants Valuation variants Master data Standard WBS elements Key Points Project system settings for service providers Cross-application Customizing Scenario-dependant configuration Product Cost PlanningPurposeThis building block provides all the settings that are required to create a standard cost estimate, that is, a standard price calculation for materials without relation to a specific production scenario, which can then be updated as standard price in the material master. Function ListThe following functions are provided by the building block J18: Costing sheet Cost component structure Valuation variant Costing variant Cross-company costing Key Points Standard cost estimate

Batch ManagementPurposeThis building block includes the customizing steps and master data necessary to set up Batch Management in all business areas, including MM, PP/PI, and SD, and is used in Baseline with the following material types: ROH Raw HALB Semi-Finished FERT Finished Goods HAWA Trading Goods (Other material types can also be used) Function ListThe following functions are provided to support the J19 Batch Management building block: Setting the batch level to the material level Setting Batch Management to active Automatic creation of batch at goods receipt Setting up the batch-where-used-list Expiration date check at goods receipt and for certain movement types Creation of classes: one for use in the material master with the characteristic expiration date, and the second as a selection class for use in all search strategies with the characteristics remaining shelf life for batch, batch determination delivery date, and expiration date, shelf life 3 different search strategies: One for sales, one for repetitive manufacturing, and one for make-to-stock, thus ensuring that the batch with the smallest remaining shelf life is automatically chosen Batch determination considering Selection class Search strategy Sort rule Allocation to order type and/or plant Specific Customizing for batch split processing in sales (creation of item category, copy control, billing method, and so on) Key Points Basic steps for setting up Batch Management are well documented. Examples of classes and search strategies are simple yet effective.Profitability AnalysisPurposeThis building block is used to set up Profitability Analysis. The building block provides functionality to plan, organize and evaluate the effectiveness of sales by calculating contribution margins. Function ListThe following functions are provided by the Profitability Analysis Building Block (J17): Master Data and Structures Valuation of Sales Planning Transfer of Billing Documents and Actual Flows Information System Key Points Profitability Analysis is set up. This can be used for valuation of sales and the transfer of billing documents. Planning processes can be performed. This building block can be used to perform period-end closing and reporting in Profitability Analysis. Cost Object Controlling - Make-to-OrderPurposeThis building block provides all the settings that are required for period-end closing in sales order controlling.Function ListThe following functions are provided by the building block J20: Results analysis Settlement Key Points Sales order controlling Simultaneous costing Period-end closing

Cost Object Controlling - Make-to-StockPurposeThis building block provides all the settings that are required for performing cost object controlling by order. Preliminary costing, simultaneous costing, and period-end closing are supported.Function ListThe following functions are provided by the building block J21: Valuation variant Costing variant WIP calculation Variance calculation Settlement Key Points Cost object controlling by order Preliminary costing Simultaneous costing Period-end closing

Cost Object Controlling - RepetitivePurposeThis building block provides all the settings that are required for performing cost object controlling by period. Preliminary costing, simultaneous costing, and period-end closing are supported.Function ListThe following functions are provided by the building block J22: Valuation variant Costing variant Product cost collector WIP calculation Variance calculation Settlement Key Points Cost object controlling by period Preliminary costing Simultaneous costing Period-end closing Human Capital ManagementPurposeThe Human Capital Management building block contains the configuration steps that are necessary for setting up the Cross-Application Time Sheet (CATS).Function ListThe following functions are included in the J14 Human Capital Management building block: Setting up the organizational structure Personnel management Relationships Scales Qualification catalog Personnel numbers Payroll area Info-groups Personnel actions Time management Work schedules Attendance type Counting role to attendance type Master data Employee for CATS and travel Assign qualifications to personnel CATS Data entry profiles for CS, SD, PS with work list Key Points HR Cross-Application Time Sheet settings for service providers Cross-Application Customizing Scenario dependant configuration Cross-Application Time Sheet SD/MM ServicesPurposeThe SD/MM Services building block contains the configuration steps that are necessary for setting up service-specific Sales & Distribution and service-specific Materials Management.Function ListThe following functions are included in Materials Management: Material groups and material types Industry sectors and industry-sector-specific field selection Product hierarchy External services management Inventory management and physical inventory Service processing Serial number profiles Serialization attributes for movement types The following functions are included in Sales and Distribution: Pricing Condition types (Document) pricing procedure Account assignment/costing Sales - default values for material type Billing types and billing procedures

Customer Service/Plant MaintenancePurposeThe Customer Service/Plant Maintenance building block contains all the configuration steps that are specific for these areas.Function ListThe following functions are included in the J13 Customer Service/Plant Maintenance building block: General Settings for CS Maintenance planning plant Maintenance planning plant to maintenance plant Values for component item categories Value for current date as basic date Values for units for operation Value categories Cost elements to value categories Cost key figures Version for cost estimates for orders Employees responsible for work centers Warranty types Warranty counters Material groups Account groups and field selection for customer Master Data Characteristic warranty period Warranty Work center Maintenance strategy Material Key Points Customer service settings for service providers Scenario-dependant configuration Preventive maintenance Resource-related billing Warranty check Management of technical objects

On-Site Repair ServicesPurposeA customer has signed a service contract with an IT service provider. The business process starts with a customer reporting a hardware problem (for example, with a server). The IT service provider creates a service order and carries out the repairs at the customer's site.The costs; fees, spare parts and travel expenses resulting from the service order are entered in the repair order and billed to the customer on a resource-related basis, according to the corresponding effort and expenses.Process FlowThe process starts with a customer reporting a problem with a robot to a call center agent, who creates a service notification in the system. A service contract is created for the customer.The service agent processes the service notification and sets its status to "in process". The service agent then calls a technician and assigns him/her to the relevant service order. This telephone call is also documented in the service notification. Subsequently, a service order is created from the extended notification, and the activities required and the times for the service to be carried out on-site are planned.The technician carries out the repairs at the customer's site and confirms the spare parts and services used by issuing an overall completion confirmation. A billing request is created. After checking the conditions, the billing request can be sent.The service order is checked and technically completed by the service agent. The costs resulting from the service order and revenues are settled to the service contract.Function List1. Customer contract creation1. Service notification creation1. Changing a service notification 1. Service order creation1. Changing a service order 1. Recording actual time worked and entry of travel expenses 1. Transferring time to service order 1. Settling travel expenses 1. Managing posting run of trip data to accounting 1. Confirming the material used1. Displaying planned/actual costs 1. Billing request creation1. Billing document creation1. Accounting rule assignment1. Closing service order - technically 1. Service order settlement1. Closing service order - business view Key Points 1. Technical object management1. Service notification 1. Service order 1. Cross-Application Time Sheet 1. Travel management 1. Time & material billing

Repairs and Returns at PlantPurposeA customer has signed a service contract with an IT service provider. The business process starts with shipment of the damaged device (for example, a laptop) to a service center.The IT service provider carries out a warranty check and then creates a service order followed by a repair cycle (time and spare parts). The repaired device is subsequently delivered to the customer.The costs (fee, spare parts) resulting from the service order are entered to the repair order and billed to the customer on a resource-related basis, according to the corresponding effort and expenses.Process FlowThe business process starts with a customer reporting a problem with a servo motor. A service agent creates a service notification in the system. (The service notification number is used as a "return material authorization (RMA) number in the remainder of the repair process.)The service agent carries out a warranty check on the service notification and then creates a service contract.The service center informs the customer that they must send the servo motor to the central service center. The service notification number (RMA) must be specified on the shipping documents; otherwise the servo motor will be rejected by the service center. If the necessary spare parts are not in stock, they have to be ordered.A repair order is then created from the service notification so that the entire repair process can be controlled and settled. In the repair order, the damaged servo motor is automatically assigned by the returns items created.A service order is automatically generated using an item proposal to enable the repairs to be carried out. Once the repairs have been carried out, the costs are confirmed to the service order. The repaired servo motor is delivered to the customer and the final repair status can be displayed.The service center creates a billing request. This appears in the repair order as an additional item and is not a separate document (unlike the billing request in the on-site service process). The repair order can now be billed.The costs resulting from the service order are settled to the repair order. The costs and revenues can now be compared in the cost report of the repair order.Function List1. Customer contract creation1. Service notification creation1. Changing the service notification 1. Displaying the repair order 1. "Return delivery" creation with reference to sales order 1. Stock overview 1. Changing the repair order starting the repairs 1. Displaying the service order 1. Changing the service order 1. Posting the goods issues 1. Displaying the serviceable materials 1. Recording the actual time worked 1. Transferring the time to the service order 1. Checking the planned/actual costs 1. Closing the service order - technically 1. Displaying the equipment using the equipment list 1. Displaying the status of the repair order 1. Billing request creation1. Service order settlement1. Closing the service order - business view 1. Billing document creationKey Points 1. Service notifications 1. Repair orders 1. Automatic creation of service order 1. Check of warranty 1. Cross-Application Time Sheet 1. Resource-related billing

Preventive MaintenancePurposeA customer has signed a maintenance contract with an IT service provider.The business process starts with a customer who wants to have regular maintenance of a device triggered by a maintenance schedule. A maintenance plan is created, and, subsequently, a service order is automatically generated and the necessary spare parts are ordered.The costs; fees, spare parts and travel expenses resulting from the service order are entered in the repair order and billed to the customer on a resource-related basis, according to the corresponding effort and expenses.Process FlowThe business process starts with a customer who wants to maintain a technical device at specific intervals. A service contract and a maintenance plan are created, which define the dates and the scope of tasks involved in the maintenance. Subsequently, a service order is generated automatically and the necessary spare parts are ordered.A technician carries out the repairs at the customer's site and confirms the spare parts used, as well as the services performed by issuing an overall completion confirmation. A billing request is created and can be billed after checking the conditions.The service employee checks the service order and sets it to technically complete. Costs resulting from the service order and revenues are settled to the service contract.Function List1. Customer contract creation1. Technical object creation, type "customer equipment" 1. Maintenance plan creation1. Maintenance plan scheduling1. Displaying the scheduled overview list 1. Changing the service order 1. Recording the actual time worked and entering travel expenses 1. Transferring time to service order 1. Travel expenses settlement1. Posting run management of trip data to accounting 1. Displaying planned/actual costs 1. Billing request creation1. Billing document creation1. Accounting rule assignment1. Closing service order - technically 1. Service order settlement1. Closing service order - business view Key Points 1. Management of technical objects 'equipments' 1. Manual creation of maintenance plan but automatic creation of updates 1. Automatic creation of service orders when the corresponding maintenance date has been reached 1. Travel management 1. Cross-Application Time Sheet 1. Resource-related billing

Internal Maintenance for IT ServicesPurposeThe IT Service Provider has a problem with a piece of equipment (for example, with a Printer).The business process starts with an employee reporting a problem with the hardware by creating a maintenance order in the system.A warranty check is carried out and the necessary spare parts and third party services are ordered for the repairs.The costs and materials are entered to the maintenance order. After the repairs are carried out, the costs are charged to the cost center. Process FlowThe business process starts with an employee reporting a problem with a piece of equipment by creating a maintenance order in the system.A warranty check is carried out and the necessary spare parts and third party services are ordered for the repairs.After the repairs are carried out, the costs and materials are confirmed to the maintenance order. The costs are settled to the cost center. Function List Create a technical object, type "machines" Create internal order Create purchase order Confirm goods receipt Enter invoice for external maintenance Record actual time worked Transfer time to internal order Display planned/actual costs Settlement order Close internal order - business view Key Points Management of technical object Procurement of external services and materials Cross-Application Time Sheet Time & material billing

Spot ConsultingPurposeThis business scenario addresses a simple project cycle from quotation to completion and resource billing of the actual work performed. The sales order is the focal point of the process as it formalizes the customers requirements, collects labor costs, and generates billing time and material. This scenario would typically apply to a consulting arrangement of short duration where detailed work planning and execution are not required.Process FlowIn the first process step, you create a quotation, which is based upon an estimation of required time and costs to perform the requested work. However, final billing is based on the actual work performed. Once the customer accepts the quotation, you create a sales order with reference to the estimated costs in the quotation. The work is performed and travel expenses and time are recorded via the Cross-Application Time Sheet (CATS). The recorded time and associated costs are transferred and posted to the sales order.These actual costs are then used as the basis for generating resource-related billing. The scenario assumes partial billing of work performed, demonstrating the flexibility of the resource-related billing function.Results analysis is conducted and the settlement of costs and revenues is executed from the sales order to profitability analysis.Function ListThe following functions are included for the scenario Spot Consulting: 1. Quotation creation1. Sales order creation with reference to quotation 1. Reviewing of sales order planned costs and revenues 1. Recording the actual time worked (with the Cross-Application Time Sheet (CATS), approving trips, trip settlement) and travel expenses 1. Posting run creation1. Posting (and transfer) the data 1. Transferring time and costs to sales order 1. Resource related billing document creation1. Reviewing sales order actual costs and actual revenues 1. Displaying document flow of the sales order 1. Performing results analysis on the sales order 1. Settlement of sales order to profitability analysisKey Points 1. Unit costing 1. Time & material billing 1. Cross-Application Time Sheet 1. Travel management 1. Results analysis 1. Profitability analysis Project with Fixed Price and Time and Material Billing PurposeThis business scenario addresses the execution of a project, which has both fixed price and time & material activities. It applies to a business situation where the initial effort is a fixed price project study, which in turn leads to project work on a time and material basis. This is realized in the SAP R/3 Project System including Sales functions. A project with a simple structure is set up, separate invoicing occurs, and revenues and costs are collected and analyzed in a single object. Process FlowIn the first step of the process, you create a project including two WBS elements from a standard template and execute Easy-Cost-Planning for both of them. After this, a quotation and sales price calculation are created. In the next step of the business process, you create a sales order with reference to the quotation including two items: one for the fixed-price study and another for the time and material work event. For the time and material work event, an external processing item is released, which appears as a service purchase requisition. A material component is assigned to this external service and should show the possibility of procuring materials as well as for receiving to stock. A stock overview for the material shows that the material is physically in the project stock. The appropriate WBS elements are then assigned to the individual items in the sales order. The fixed-price project study is complete, time is recorded via the Cross-Application Time Sheet (CATS), and an invoice is created for the corresponding item in the sales order. Time and material work is performed by an external vendor. The hours worked are posted in a service entry sheet. Releasing the service entry sheet updates the costs for the project. Resource-related billing takes place on a periodic basis or at the end of the project.The process concludes with technical completion of the project, results analysis, and settlement to profitability analysis.Function List 1. Creation of a project from a standard template and execute easy cost planning 1. Creation of a sales price calculation and a quotation using ECP 1. Creation of a sales order with references to the quotation 1. Creation of network activities in the project 1. Settlement rule generation1. Changing the results analysis key in the project 1. Recording the time for the fixed-price activity 1. Transferring the time of fixed-price activity to project 1. Creation of an invoice for the sales order fixed-price item 1. Procurement of external services and materials 1. Recording time and travel expenses for external service 1. Goods receipt for the material, stock overview and goods issue for reservation 1. Quality Inspection1. Creation of Excise invoice ( Specially for India)1. Creation of an invoice for the time & material activity 1. Posting Excise JV ( Specially for India)1. Viewing project postings and completing the project 1. Performing a results analysis on the project 1. Settling the project to profitability analysis Key Points 1. Project with WBS elements for fixed price and material billing 1. Resource-related quotation using data from easy cost planning 1. Sales order with reference to resource-related quotation with fixed price and time & material item 1. Cross-Application Time Sheet 1. Fixed price billing 1. Procurement of external services 1. Service entry 1. Time & material billing 1. PS reporting (BI)

Contract with Auto-Creation of Project, Down Payments, Personnel Assignment and Milestone BillingPurposeThis business scenario addresses the typical business processes of an engineering or industrial design company. An agreement with a customer for a design project requires a down payment and billing based on performance of defined milestones. The design company sets up a project structure and assigns employees to specific activities based on skill sets and availability. The project is automatically created from the contract using a pre-defined project structure template. Process FlowThe process begins with the creation of a customer contract. The pre-determination of required materials, which is fixed in the customer contract, triggers the generation of a project based upon a standard project template. The project is structured according to WBS elements and their linked network activities, which drive material management, procurement, assignment of personnel, and cost analysis. The WBS element of the project is copied to the contract so that all costs and revenues are cumulated on the project. A billing plan is automatically created. The milestones of the project are taken over as billing dates in the billing plan. After the project is released, the down payment is due.After personnel have been assigned to project activities, the project is released for time recording. As work is completed, employees record their times in the Cross-Application Time Sheet (CATS) after which it is transferred to the project system for cost collection. Period-end activities are carried out with results analysis and project settlement, which can be performed periodically and/or at the end of the project following its technical completion.The project structure allows the dynamic adjustment of the scope of activities at any time throughout the project.Function List 1. Creation of customer contract 1. Changing the project 1. Scheduling/personnel assignment review1. Down payment creation1. Creation of a down payment entry in accounting 1. Viewing the costs, payments and revenues for the project 1. Recording the actual time worked and the travel expenses 1. Transferring time to project 1. Trip settlement1. Confirmation of billing block status of contract items 1. Creation of billing document 1. Settlement rule generation 1. Results analysis performance for the project 1. Closing the project 1. Settlement of the project to profitability analysisKey Points 1. Contract 1. Automatic creation of a project 1. Personnel planning on the project 1. Down payment 1. Payment entry 1. Cross-Application time sheet with work list 1. Milestone billing 1. PS reporting

Project with Resource-Related Inter-company Billing PurposeThis business scenario addresses the typical business processes of a consulting, auditing or legal services company. The services are provided by different company divisions. For these shared resources, you need to be able to easily bill the other divisions in other countries and departments. ( This scenario shows a firm having an engagement with a client and sourcing foreign and domestic resources.Using the inter-company process the firm bills its client for time and travel expenses for all resources (domestic and foreign) on a resource related basis and automatically generates a payment to another branch for the time and travel expenses supplied from the branch. The firm pays the foreign branch, transferring the appropriate revenue to foreign books.The design company sets up a project structure and assigns employees to specific activities based on skill sets and availability. The project structure provides you with detailed information about the progress of the project such as resource availability, costs and revenues.Process FlowThe scenario starts with the creation of a project. Easy Cost Planning is used to create a quotation and subsequently create a service sales order. The pre-determination triggers the generation of a network based upon a standard network template. The project manager manually assigns the network activities to the appropriate WBS elements.A separate inter-company order is created to bill all of the relevant hours between the two company codes. There should only be one inter-company order between these two company codes for handling the inter-company process.The project is structured according to WBS elements and their linked network activities, which drive assignment of personnel and cost analysis. The WBS element of the project is copied to the quotation and subsequently to the sales order, so that all costs and revenues are cumulated on the project.Once personnel from both company divisions are assigned to project activities, the project is released for time recording. As work is completed, employees record time in the Cross-Application Time Sheet (CATS), after which it is transferred to the project system for cost collection. All the summarized hours in the project are billed on a resource-related basis together with the inter-company hours. Period-end activities are carried out with results analysis and project settlement, which can be performed periodically and/or at the end of the project following its technical completion.The project structure allows the dynamic adjustment of the scope of activities at any time throughout the project.Function List 1. Creation of a project from a standard template and easy cost planning execution1. Creation of a sales price calculation and a quotation using ECP 1. Creation of a inter-company sales order1. Creation and completion of a sales order with references to the quotation 1. Changing the project 1. Reviewing the scheduling/personnel assignment 1. Recording the actual time worked 1. Transferring the time to the project 1. Creation of the posting run 1. Posting (and transferring) the data 1. Creation of a resource-related billing document 1. Creation of a resource-related inter-company billing document 1. Generation of settlement rules 1. Performance of results analysis for the project 1. Closing the project 1. Settling the project to profitability analysis Key Points 1. Project creation1. Easy cost planning 1. Generation of a quotation 1. Creation of a sales order with reference to the quotation 1. Automatic creation of a network 1. Personnel planning for the project 1. Cross-Application time sheet with work list and travel expenses 1. Resource-related billing 1. Resource-related inter-company billing 1. PS reporting 1. CO reportingProcurement of Stock MaterialProcess Flow The following steps are provided in the Procurement of Stock Material scenario: Requests for quotation (RFQ) posting to vendors to enquire prices for certain goods. Submission of quotations by the vendors. Price entry into the system with reference to the RFQ. Price comparison in the system. Contract (WK) creation for plant BP01 with reference to the RFQ from above. Maintenance of the quotation number in the info record to ensure that the current purchasing prices are the same as in the quotation. Purchase requisition posting to the material above. Purchase order creation with reference to the purchase requisition. Posting of the goods receipt for the raw materials for the incoming goods to storage location 0004 in plant BP01. Posting of the goods receipt of the trading good to storage location 0001 in plant BP02. Automatic batch number creation for each incoming batch on receiving the goods. Posting of the goods receipt to the quality stock. Goods receipt inspection (quality management) for the raw materials and trading goods. In the usage decision, move of the amount of material in the quality stock to the appropriate stock - unrestricted or blocked (stock). Key Points Quotation handling in procurement Procurement contracts Batch management in procurement Goods receipt inspection (QM)

Procurement of Stock Material (specially for India)Purpose This process describes the procurement process of raw materials from indigenous source of supply with Country Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.

Process Flow Procurement of Stock Materials Raw Material Local / Return Request for Quotation (RFQ) Message output: RFQ Maintaining Quotation Price Comparison Creating Contract Creating Purchase Requisition Purchase Order Message Output Goods Receipt for Purchase Order Displaying QM Inspection lot Process: Quality inspection - Accept Logistics Invoice Verification Procurement of Stock Materials from SSI Vendor Master Data Maintenance for SSI Vendors ( specially for India) Purchase Order Message Output Goods Receipt for Purchase Order Logistics Invoice Verification Procurement of Stock Materials for Depot Purchase Order Message Output Goods Receipt for Purchase Order Logistics Invoice Verification Creating Purchase Requisition Purchase Order Message Output Goods Receipt for Purchase Order Process: Quality inspection reject Excise Invoice Other Movements ( specially for India) Posting and Printing the Excise Invoice ( specially for India)Key PointsProcurement of Stock Materials Raw Material Local / ReturnProcurement of Stock Materials from SSI Vendor ( specially for India)Procurement of Stock Materials for Depot.Procurement ContractPurposeBasic agreements are long-term agreements with the supplier on the supply of materials/ the contribution of services at certain specified conditions within a certain period of time. The following basic agreements exist:1. Quantity contracts (definition of a delivery volume of supplier materials at the conditions agreed on) 1. Value contracts (definition of a value limit for material procurement based on the conditions agreed on) 1. Delivery schedules (agreed points in delivery time and conditions for supplier materials, which have been agreed on) Process Flow1. Creating a Basic Agreement (Quantity Contract)1. Creating a Purchase Requisition1. Processing the Purchase Requisition1. Creating Purchase Order1. Posting the Goods Receipt1. Posting Invoice Receipt and Invoice Verification1. Monitoring the Outline Agreement.Internal Procurement (Stock Transfer With Delivery) PurposeIn business scenario, most of the time there will be a manufacturing plant to take care of production activity and there will be depots to take care of distribution network of products produced. If material is subject to Excise Duty, even moving between plant and depot also needs to be with Excise Invoice. This process describes the full cycle from stock transport order, goods issue, excise invoice, goods receipt and subsequent sales processes.Function ListThe following functions are provided to support the Stock Transfer With Delivery (J51) building block: Generate purchase requisition by MRP in the receiving plant.Creating Stock Transport OrderCreating Outbound DeliveryChanging Outbound DeliveryCreating Billing DocumentCreating Excise Invoice ( Specially for India)Printing Excise Invoice ( Specially for India)Goods Receipt for Outbound DeliveryKey Points The quantity posted from stock is first of all managed as stock in transit for the receiving plant. The quantity only gets posted to the unrestricted-use stock of the receiving plant once the goods receipt has been posted. This enables monitoring of the quantity 'on the road'. The transfer posting is valuated at the valuation price of the material in the issuing plant. Delivery costs can be entered in the stock transport order. Internal Procurement (Stock Transfer from Depot to Plant - ROH Material Type) PurposeThis process describes the stock transfer process of raw materials from depot to Manufacturing Plant. The stock transfer can happen via delivery route only. The Stock Material is purchased at the depot from an external source. Subsequently it is transferred to the manufacturing plant. This process, although not widely prevalent is used when it is convenient for purchase at depot. For eg.the vendor is located close to the depot and it is uneconomical to ship the quantity directly to the plant. Process FlowStock Transfer of Raw MaterialsPurchase OrderMessage OutputGoods Receipt for Purchase OrderLogistics Invoice VerificationCreating Stock Transport OrderCreating Outbound DeliveryChanging Outbound DeliveryCreating Excise Invoice for Delivery at Depot (Specially for India)Verifying and Post Excise Invoice ( Specially for India)Printing the Excise Invoice ( Specially for India)Capture and Post Excise Invoice ( Specially for India)Goods Receipt for Purchase OrderKey Points Stock Transfer Order Capture Excise Invoice for transferring materials from Depot to Production Plant

Internal Procurement (Cross-Company Stock Transfer) PurposeThis process describes the full cycle of from stock transport order, goods issue, excise invoice, goods receipt and subsequent sales processes of Cross-Company Transfer.Process FlowThe following functions are provided to support the Cross-Company Delivery Building Block: Customer for cross company delivery Creating Purchase Order Creating Outbound Delivery Changing Outbound Delivery Creating Billing Document Creating Excise Invoice ( Specially for India) Printing Excise Invoice ( Specially for India) Goods Receipt for Purchase OrderKey Points Internal Procurement of Cross-Company Transfer

Third Party with Shipping NotificationPurposeYour customer orders products that are not produced by your company and are not kept in stock. The vendor sends the material directly to your customer.In the next step of the value chain, you receive a shipping notification from your vendor stating that the products have been shipped to your customer. You then bill your customer based on the quantity shipped as noted on the shipping notification.Process Flow Creating Sales Order Purchasing Order Processing Goods Receipt Based on Shipping Notification Billing Process Invoice VerificationKey PointsThe customer invoice can be created on the basis of the shipping notification before receiving the incoming invoice from the vendor.Third Party Without Shipping NotificationPurposeYour customer orders products that are not produced by your company and are not kept in stock. You have to order them from an external vendor. The vendor sends the material directly to your customer.The billing to your customer is based on the invoice received from your vendor.Process Flow Creating Sales Order Purchasing Order Processing Billing Process Invoice VerificationKey PointsAs no shipping notification is available, the customer invoice can only be created after having finished vendor invoice verification. Bought-In ItemPurposeMaterial is procured specifically for one customer in this scenario. This means that a purchase requisition is generated from a sales order item, which is then converted into a vendor order. It is not necessary to subject the material to inventory management in your own company. The material is first sent from the vendor to your warehouse. It is administered there as sales order stock. The complete shipping processing then takes place from your own shipping point. Process Flow Sales Order Purchase Order Goods Receipt Delivery Processing Billing Processing Printing Billing Document Invoice Verification.Key Points This value chain is used if the material that the customer wants is not in stock. The material therefore gets procured from an external supplier.Extended Sales Order ProcessingPurposeThis scenario describes the entire process chain for a standard sales process with a customer. The business process encompasses all of the steps from creating an order to the billing procedure.The following functions are provided to support the Extended Sales Order Processing building block:1. Sales order creation: The process starts with creation of a customer's standard sales order. Depending on the customer and the material, various special events are set up for order entry, such as material substitution or the automatic generation of free goods when the customer orders a specified minimum quantity. 1. Delivery creation: A delivery is created on the basis of the sales order and batch determination takes place. 1. Picking: The quantity physically shipped has to be registered in the system to ensure that there are no differences between the sales order and the delivery document. In the case of real differences, this can also be documented and ensures correct postings. 1. Goods issue posting:The quantity physically picked has to be posted for goods issue 1. Billing creation: Once the goods issue has been posted, the delivery can be invoiced. This step signifies the end of the business transaction in Sales and Distribution. The appropriate accounting and controlling documents are generated. 1. Billing documents display: You can switch from the billing document display to the corresponding accounting documents and to the profitability analysis. 1. Creating Excise Invoice ( Specially for India)Excise Invoice is a legal document to be submitted to the Excise Authorities.1. Printing Excise Invoice ( Specially for India)Excise Document is a legal document, which must accompany when goods are being sent to the customer.Key Points 1. Availability checks as well as batch determination procedures. 1. This scenario is designed for trading goods as well as for finished goods (from the company's own production). 1. Creating Excise Invoice and printing (Specially for India).Customer Consignment ProcessingPurposeThis scenario describes how finished products and trading goods are handled within a consignment process in which the products shipped to the customer still belong to the company until a third party sells them to the customer. The scenario covers the following steps: consignment fill-up, consignment issue, and consignment pick-up.Functions ListConsignment fill-up: 1. Consignment fill-up order 1. Outbound delivery 1. Goods issue consignment 1. Stock overview Consignment Issue: 1. Consignment issue order 1. Outbound delivery 1. Batch management 1. Goods issue 1. Invoice Consignment Pick-Up: 1. Consignment pick-up order 1. Returns delivery for the order 1. Picking 1. Goods issue consignment return Key Points1. The physical shipment of goods to the customer is completely separate from the sales process. 1. The shipment of goods to the customer site represents a stock transfer from free stock to customer consignment stock. 1. The products at the customer site are reflected in the company's stock overview.

Returns and ComplaintsPurposeThis scenario provides all of the necessary activities for complaints and returns processing. The complaints process focuses on the processing of credit memos if no goods are sent back. During returns processing, goods are returned and go through a quality evaluation. The goods are then returned to unrestricted or blocked stock.Function ListThe following functions are provided to support complaints processing: 1. Entry of a complaint in quality management because the customer ordered a material that does not satisfy quality standards. 1. Accepting the complaint, which leads to a qualification notification and evaluation? 1. Creation of a credit memo request, which uses a settlement material to balance the value of the complaint delivery. 1. Appointing the value credit memo as a reference to the credit memo request. The following functions are provided to support returns processing: 1. Creation of a return order for the initial sales order. 1. Shipping back and booking goods into the return stock with a return delivery. 1. Goods inspection and evaluation reaching a usage decision. 1. Creation of a credit memo depending on the result of the inspection.

Key Points1. In this scenario, customer complaints are notified without reference to vendor or internal production notifications. 1. The inspection lot is created automatically but the subsequent procedures, ending with the usage decision, have to be entered manually. Returnables ProcessingPurposeThis scenario includes all of the necessary activities for the shipment of goods with packaging material standard pallets and, in particular, the return of the pallets. Function ListThe following functions are provided: 1. After a standard order is placed, a delivery is created where the pallets are entered manually. 1. Entry of the delivered pallets to a special stock assigned to the customer. 1. Invoicing; the pallets are not relevant for billing. 1. The pallets return collects the pallets from the customer and books them back into the unrestricted inventory

Batch RecallPurposeThis scenario enacts a batch recall. A defect batch is identified and must be recalled from customers and prospects who have received the batch. A program is executed to identify all customers who received a defect batch . The user then chooses the addresses of the appropriate contact persons, and the system prints a standard letter to each customer to inform them of the recall. The subsequent activities for each customer are stored in the system. Return deliveries are also entered and documented, if necessary.Process Flow On discovering a defect in a batch, an employee in the company starts a direct mailing. In the direct mailing, a selection of addresses is chosen. These addresses should correspond to the customers who have received the defect batch. A letter is automatically printed with the addresses of the selected customers. As soon as the addresses are printed, the direct mailing is automatically closed, and a follow up activity is created. The follow up activity can be used to document further contact with the customer and process the return of the batch. Within the follow up activity, an ordinary returns document can be created, and the returns process can take place. In a return delivery the goods are shipped back and booked into the return stock. From the return stock, the goods receipt is inspected (quality management) and evaluated, and a usage decision is made. Depending on the inspection, a credit memo is created. Key Points A modified report provided by the building block selects customers based on a material number and batch number. The type of addresses - home address, business address, etc. - can also be selected. The sales support functionality triggers a batch specific return processing. Cross Company Sales Order ProcessingPurposeA customer places an order which cannot be filled by the vendor. The vendor therefore sends the goods to the customer from a plant belonging to another company code. Process FlowThe following processes are provided to support this scenario: Sales organization BP01 in company code BP01 creates a sales order. The goods are not available in a plant belonging company code BP01 and must be shipped from a plant belonging to a different company code, BP0X. The sales organization BP01 in company code BP01 issues a customer issue, while the distribution plant belonging to company code BP0X uses inter-company billing with the sales organization BP01. Key Points1. The delivery plant belongs to a different company code 1. Direct delivery from delivery plant to customer 1. Customer invoice and inter-company billing document 1. Internal transfer prices Sales Order Processing with DUMMY CustomerPurposeA "dummy" customer is used when your sales order processors need to investigate an order without first looking up the customer's account number. The sales order can be saved but remains incomplete until a valid customer account number has been entered on the sales order. For example, this function is particularly useful for those companies that take phone orders. A customer calls and requests pricing and information on a catalog item. The order processor can build the entire order without needing the customer's account number until the end. Once the customer's account number has been entered, all of the customer-specific information is transferred from the customer master and other customer-specific records.Process Flow Sales order creation with "DUMMY" customer Replacement of "DUMMY" customer by a real customer account Key Points Installation role Business configuration settings in BC-SetsPP and Discrete Manufacturing Make-to-StockPurposeThe scenario Production Planning and Discrete Manufacturing describes a business process which is typical for companies with lot size-oriented production, for example, within the food industry. During production order processing, batches are determined automatically based on expiry dates. The production scenarios consist of both goods movements (goods issues and receipts) and confirmation of completion of the production order. Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing, simultaneous costing and period-end closing.Process Flow1. The typical planning process starts with rough-cut planning. The previous year's sales figures can be used as a basis for this distribution. To ensure that production stays in line with sales, you may create the production plan synchronously to sales. However, this demands a certain degree of flexibility in production. 1. In rough-cut planning, long-term planning takes place with a time frame of approximately one year. The planning data is transferred from SOP to Demand Management. Demand Management generates primary planning requirements, which are a prerequisite for the subsequent Material Requirements Planning (MRP) run. This is short-term planning, with a maximum time frame of four weeks. In material requirements planning, the bill of materials (BOM) for the material gets expanded and production is planned right down to component level. Alternatively, you can also create a planned order manually. 1. As a result, planned orders are generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. If there is no MRP run, it is also possible to create a planned order manually. 1. The goods issues can be posted manually before order processing, and the goods receipt will also be created manually before the completion confirmation is issued. 1. When the order is created, target costs are calculated for the order lot size (preliminary costing). During the production process, costs incurred during production are updated on the order, which enables you to keep track of and compare target costs and actual costs at any time (simultaneous costing). 1. Period-end-closing activities are applied to the order. This includes revaluation at actual prices, calculation of overhead surcharges, WIP calculation and variance calculation. After this, production variances are settled to CO-PA. Key Points1. Routing and bill of material (BOM)-oriented production 1. Manufacturing of products in batches according to a routing and a bill of materials (BOM) specified for the appropriate production quantity (lot size) 1. Cost Object Controlling (preliminary and simultaneous costing, period-end closing)

PP and Process Manufacturing Make-to-StockPurposeThe scenario Production Planning and Process Manufacturing describes a business process, typical for companies with process-oriented (regulated) production, for example, within the food industry and within production by lot size. Automatic batch determination can be performed based on the expiry date (and other characteristics if configured extra) during production order processing. The production scenarios additionally offer in-process and post-process quality management. Furthermore, the scenario is supported by the main required cost object controlling functions, such as preliminary costing, simultaneous costing and period end closing.Process Flow 1. The typical planning process starts with rough-cut planning. The previous year's sales figures can be used as a basis for this distribution. To ensure that production stays in line with sales, it is possible to create the production plan synchronously to sales. This, of course, requires a certain degree of flexibility in production. 1. In rough-cut planning, long-term planning takes place with a time frame of approximately one year. The planning data is transferred from SOP to Demand Management. Demand Management generates primary planning requirements, which are a prerequisite for the subsequent MRP run. This is short-term planning, with a maximum time frame of four weeks. In material requirements planning, the BOM for the material is exploded and planning takes place right down to component level. 1. As a result, planned orders are generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions for the raw materials required are created. 1. The products are produced according to a recipe, and a final quality inspection completes this process. 1. In Process Management, the process instructions are compiled into control recipes and sent to the control recipe destination. 1. The goods issues/receipt may be posted manually or automatically in Process Management using process messages. 1. Afterwards, the produced material is posted automatically to stock in quality inspection (also see the material master view: quality inspection). The status of the process order is expanded to include DLV (Delivered). 1. When the order is created (preliminary costing), target costs for the order lot size are calculated. During the production process, costs incurred during production are updated in the order, which enables comparison of target costs and actual costs at any time (simultaneous costing). 1. Period-end-closing activities are applied to the order. This includes revaluation at actual prices, calculation of overhead surcharges, WIP-calculation and variance-calculation. After that, production variances are settled to CO-PA. Key Points 1. Recipe-oriented production (NAMUR, SP88) 1. GMP compliance 1. Manufacturing of products in batches according to a recipe specified for the appropriate production quantity 1. Inclusion of order processing and guidelines for quality, inspection requirements, process instructions and substance/material composition 1. Process Management functions using HTML - based PI Sheets as a processing cockpit 1. Digital signatures 1. In-process control QM 1. Post-process control QM 1. Cost object controlling (preliminary and simultaneous costing, period-end closing)Make-to-Order (MTO) Quotation Processing/Order ProcessingPurposeMake-to-Order (MTO) Quotation Processing/Order Processing is demonstrated using a robot manufacturer as an example. This manufacturer uses both prefabricated components and components that are produced on an order basis. The scenario is triggered by the manufacturer receiving a written request for quotation (RFQ) for a robot, from a customer. In response to the customer's RFQ, the manufacturer creates a quotation in the SAP system. When the customer requests a technical change to the quotation, the manufacturer creates a follow-on quotation. Additionally, when the customer requests a price change, the manufacturer modifies the follow-on quotation accordingly. Finally, the customer accepts the last follow-on quotation, a referenced sales order is created, and the manufacturer produces the robot according to the customers requirements. Process FlowThe following sub-processes are provided to support the MTO Quotation Processing / Order Processing scenario:

1. Creation of the quotation header 1. Selection of the configurable robot using classification criteria 1. Configuration of the selected robot using characteristic value assignments and dependencies for the specific specifications 1. Optional: Credit limit check 1. Manual post processing of the resulting sales BoM 1. Output of the quotation document 1. Creation of the follow-on quotation for technical changes 1. Commercial changes in the follow-on quotation 1. Sales order creation from the follow-on quotation 1. Output of the order confirmation document 1. Stock/requirements List 1. Material requirements planning 1. Order confirmation with down-payment 1. Posting of customer down-payment 1. Production order processing 1. Controlling 1. Delivery processing 1. Invoicing Key Points 1. Differentiation between the original and the follow-on quotation 1. Creation of follow-on quotations with reference to an original quotation 1. Variant configuration with BoM explosion 1. Pricing for components including variant conditions 1. Credit limit check 1. Pricing for components including variant conditions 1. Billing plan including down payment Repetitive ManufacturingPurposeThe scenario Repetitive Manufacturing (REM) describes a business process typical for companies with a basic repetitive production process, for example, within the food industry. This scenario is based on a fairly simple REM process which produces semi-finished materials from 3 basic components using a routing with one work center. It is partly integrated with the Discrete Manufacturing scenario where the semi-finished materials produced in this scenario can be used to produce the finished goods materials.Automatic batch determination based on the expiry date is performed during REM backflushing, as well as automatic goods receipts and goods issue.Furthermore, the scenario is supported by the main required cost object controlling functions, such as preliminary costing, simultaneous costing and period end closing.Process Flow 1. Creation of standard cost estimate for material 1. Marking and releasing material price 1. The typical planning process starts with rough-cut planning. The previous year's sales figures can be used as a basis for this distribution. To ensure that production stays in line with sales, it is possible to create the production plan synchronous to sales. This, of course, requires a certain degree of flexibility in production. 1. In rough-cut planning, long-term planning takes place with a time frame of approximately one year. The planning data is transferred from SOP to Demand Management. Demand Management generates primary planning requirements, which are a prerequisite for the subsequent MRP run. This is short-term planning, with a maximum time frame of four weeks. In material requirements planning, the BOM for the material gets exploded and planning takes place right down to component level. 1. As a result, planned orders are generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions for the raw materials required are created. 1. Before production starts, a product cost collector gets created. It is a purely CO object to which all costs are posted. Other than in lot-based production, in REM quantities and their corresponding cost amounts are not stored in the same order. 1. Perform repetitive manufacturing backflush This transaction executes multiple activities in a single step. These activities include the finished product goods receipt, backflush of component materials, posting of costs to cost collector and the creation of materials and accounting documents. A detailed description of this process is defined as follows. 1. At the end of the production process, you access the final backflush function. The system explodes the BOM according to the following logic: If you enter a planned order, the system explodes the BOM from this planned order. If you enter a revision level and no planned order, the system explodes the BOM that is allocated to this revision level. If you do not enter a planned order or a revision level, the system explodes the current BOM of the material using the posting date.

1. The system posts the goods receipt of the finished material (assembly) and backflushes the components. At the same time, the system creates material and accounting documents. 1. Errors may occur in backflushing. For example, sufficient warehouse stock may not be available or important data, such as the issue storage location, may be missing. You then have the following options: You can make corrections immediately in a component overview. You can set the system to only post the goods issues of components with no errors. Backlogs are created for the complete requirement quantities of the components with errors. You can then process these backlogs later. If negative stocks are allowed for the material in the storage location, the system will post negative stock quantities under certain circumstances.

1. The system reduces the material's planned orders or run schedule quantities by the quantity backflushed. This takes place according to the strategies set in Customizing for reducing the planned orders. The system reduces the planned orders or run schedule quantities assigned to the production version specified. The system reduces the planned orders or run schedule quantities assigned to the production version specified as well as planned orders or run schedule quantities that are not assigned to any specific production version. The system reduces the planned orders or the run schedule quantities assigned to the production version specified those that are not assigned to any specific production version and also those that are assigned to other production versions of the material.

1. In make-to-stock and in valuated make-to-order repetitive manufacturing, the system posts the following costs to the product cost collector: Material costs The system determines the prices of the withdrawn components from the material master records. The total of these prices are then assigned to the product cost collector. Production activitiesThe posting of production activities is optional. The system determines the production costs using the standard cost estimate for the material or the preliminary cost estimate for the product cost collector. If the actual times differ from the planned times in the routing, you can also backflush these times. Target costs are calculated when the product cost collector is saved (preliminary costing). During the production process, costs incurred during production are updated on the PCC, which enables comparison of target costs and actual costs at any time (simultaneous costing). 1. Period-end-closing activities are applied to the product cost collector. This includes calculation of overhead surcharges and variance-calculation. After that, production variances are settled to CO-PA. 1. At the end of the production process, a product cost collector report is shown to provide information about the costs incurred during the production process. Key Points 1. REM backflushing 1. Automatic batch determination 1. Product cost collector 1. Cost object controlling (preliminary and simultaneous costing, period-end closing)

Procurement of External Services ( Specially for India)PurposeExternal Services Management is an application component within Materials Management Module. It covers from creation of service master, bid invitation, order placements process, entering and accepting services and finally invoice verification process.Process Flow Procurement of External Services Procurement Process Create Service Master Create Purchase Order for this Service Message Output for the Purchase Order Creation and Acceptance of Service Entry Sheet Invoice Verification for Services Withholding Tax Processing ( Tax Deduction at Source) Withholding tax Remitance Challan Updating Bank Challan Number for TDS Payment Vendor TDS Certificate Print E-File Return( Annual Return)Key Points Purchasing External Service Withholding Tax Remittance Challan Updating Bank Challan Number for TDS Vendor TDS Certificate Print E-File Returns

Procurement of Imported Materials ( Specially for India)PurposeThis process Procurement of Imported Materials shows you how to handle the Countervailing duty (CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs duties, such as basic customs duty or special customs duty, you can credit CVD paid on imports to your CENVAT account.Process Flow Creating Purchase order Message Output Invoice Verification for CVD, Custom Duty, Educational Cess on CVD, Customer Educational Cess. Goods Receipt for Imported Purchase Order Invoice Verification for Imported Vendor Key Points Purchasing Imported Material Invoice Verification for CVD, Customs Duty, ECess on CVD, Customs ECSS Invoice Verification for Imported Vendor

Procurement of Capital Material to Manufacturing Plant ( Specially for India)PurposeThe Capital Items business scenario for India is processed differently as far as excise duty is concerned. Manufacturing Plants are allowed to set off excise duty on purchases of capital items against excise duty on outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and the rest in any year after that.Process Flow Creating Purchase order for Capital Materials Release Purchase order Message Output for Purchase Order Goods Receipt for Purchase Order Verifying Logistics Invoice Balance Credit on Capital GoodsKey Points Creating and Releasing Purchasing Order for Capital Material Verifying Logistics Invoice for Capital Purchase Order Balance Credit on Capital Goods

Subcontracting without Payment of Excise Duty ( Specially for India)PurposeIn Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by subcontractor. The reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within 180 days specified by the law, you will have to reverse any excise credit that you posted when you have purchased the materials. When you send material out of your factory premises you need to send with 57F4 Challan. In this process you are going to do the same.Process Flow Creating Subcontracting Purchase order Message Output for Purchase Order Transferring of Components to Subcontractor Creating of subcontracting Challan Goods Receipt for Purchase Order Reconciling Subcontracting Challan Completing/Reversal/Re-Credit Subcontracting Challan Logistics Invoice VerificationKey Points Subcontracting Purchasing Order Transferring Components to Subcontractor Creating Subcontracting Challan Reconciling Subcontracting Challan Completing/Reverse/Re-Credit Subcontracting Challan

Procurement of Trading Material ( Specially for India)PurposeIn Indian scenario apart from own production and sales activities, lots of trading activities also take place. To fulfill that requirement in this Best Practices, we have taken up this scenario. For such trading scenario there will not be any Excise Duty related entries and also there will not be any Excise registers. There is a possibility of Sales Tax being applicable on some products.Process Flow Creating Purchase Requisition Requesting for Quotation Message Output for RFQ Maintain Quotation Price Comparison Purchase Order creation Message Output for Purchase Order Goods Receipt for Purchase Order Logistics Invoice VerificationKey Points Request for Quotation Price Comparison based on Quotation

Physical Inventory with Balance Sheet Valuation Purpose

The purpose of this scenario is to carry out a physical inventory of your company's warehouse stocks for balance sheet valuation. Process flowThe following steps are provided in the Physical Inventory with Balance Sheet Valuation scenario: Creation of stocks based on various procurement activities and material prices Execution of physical inventory using the method of periodic inventory Balance sheet valuation after the periodic inventory based on market prices, range of coverage and nonmovement of stocks Revaluation by updating the valuation price in the material master Key Points Periodic physical inventory Balance sheet valuation based on lowest value determination Material price revaluation using inventory prices

Long-Term Service Order Processing w. Settlement

PurposeThe business scenario longterm service order with settlement describes the handling of a longterm customer assignment. The focus of this process is to show the development of the costs and revenues and their account throughout the whole assignment.

Function ListThe customer assignment is realized in the SAP ECC Project System including sales functions. The main steps are:1. A project with a simple structure is set up and assigned to a customer order1. Activity will be carried out and costs are set to the project1. Period-end closing is running and the accrual of the accounts will be done1. The costs, revenues and the accounts can be followed up to all steps of the procedure and can also be analyzed after the end of the active part, maybe as a step of the preparation for the year-end closing.

Sale of Service (Specially for India)PurposeSome times Services are sold to the Customer along with the Materials. In this Scenario no Delivery is involved as Services cannot be delivered to the Customers, Physically.Process Flow Creating Sales Order Creating Billing Document Printing Billing DocumentKey Points Creating Sales Order for Service Creating and Printing Billing Document for Sales Order

Export Sales Under Bond (Specially for India)PurposeExport Sales is created when the Customer is located in a different Country. In this scenario, there is no Excise Duty as Exports are being made under Bond. Process Flow Creating Inquiry Creating Quotation Creating Sales Order Creating Pro Forma Invoice Creating Outbound Delivery Creating and Printing Billing Document Creating and Printing Excise Invoice Creating Excise Bond Creating and Printing ARE-1 Posting ARE-1 Updating ARE-1 Updating ARE-1 Countersigned by Customs Updating ARE-1 Document Approved and Returned by Customs Updating ARE-1 Sending ARE-1 to Excise Department Updating ARE-1 Closing ARE-1 Once Excise clears the documentsKey Points Creating Sales Order for Bond Material Creating Excise Bond Creating & Posting & Updating ARE-1

Excise Periodic Processing ( Specially for India)PurposeExcise Periodic Processings that are to be carried out at end of a period. Excise Periodic Processing helps you prepare and carry out the activities required for day-end or month-end and year-end closing. TR6 Challan Posting with PLA Register Updation Utilization of CENVAT RG1 Register updation Proforma for Monthly Return under Rule 7 of the Cenvat Credit Rules, 2001Process FlowExcise Periodic Transactions TR6 Challan Posting with PLA Register Updating Utilization of CENVATExcise Report CENVAT RegisterExcise Register Updating Updating of RG1 Register RG1 Register Extraction RG1 Register Print Utility PLA Register Extraction PLA Register Print Utility Register RT- 12

Key Points Excise Periodic Transactions Excise Report Excise Register Updating

Sale At Depot ( Specially for India)PurposeDepot is a place where there is no Manufacturing activity. Goods are stored at Depot and from here they will be sold to the Customers. Process Flow Creating Stock Transport Order for transferring of materials from Production Plant to Depot. Creating & Changing Outbound Delivery Creating Billing Document Creating & Printing Excise Invoice Goods Receipt for Purchase Order Creating Sales Order Creating Outbound Delivery Creating Depot Excise Invoice Creating & Printing Billing DocumentKey Points Creating Transfer Order Create Excise Invoice Create Depot Excise Invoice Creating & Printing Billing Document

Deemed Export ( Specially for India)PurposeThis documentation gives an instruction on how the scenario (J96- Deemed Export) is processed from business point of view, Also, it gives a step by step operation guide, which the users can follow to finish the process of this scenario.Process Flow Creating Inquiry Creating Quotation Capturing License Creating Sales Order Creating Pro Forma Invoice Creating Outbound Delivery Creating and Printing Billing Document Creating and Printing Excise Invoice Creating & Printing & Posting ARE-3 Updating ARE-3 Closing ARE-3Key Points Capturing License Creating Sales Order for Deemed Export Creating Pro Forma Invoice Creating & Printing Excise Invoice Creating & Posting & Updating ARE-3

Functional Scope FunctionsSAP Best Practices are the easiest way to set up a business solution that provides unlimited scalability, best-of-breed functionality, complete integration, and easy collaboration for every business. With SAP Best Practices you can reap business benefits quickly and eliminate as much risk as possible. It provides you with the combined benefits of a powerful solution and proven business expertise that stems from collaborative efforts between SAP and its partners.SAP Best Practices Baseline Package quickly turns your SAP software into a live system that handles all your specific business requirements. Preconfigured SAP R/3 Enterprise business scenarios help you rapidly realize business benefits without extensive configuration. Use it to evaluate your specific business solution. And use it to implement this solution so that you can realize all its benefits faster, with less effort, and less expensively than ever before.SAP Best Practices can be used by mid-sized enterprises that need rapid implementation or by large companies that need to create a corporate template for their