Billing Project Report

7/27/2019 Billing Project Report

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SALES AND BILLING IN SAP (PRODUCTION PLANNING)

SUBMITTED BY : MADHURI R

ROLL NUMBER: 13P35Y0019

SUBMITTED TO : GEMS B SCHOOL

YEAR OF SUBMISSION: 2014


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TABLE OF CONTENTS

Preface1. Acknowledgment

2. Declaration

3. Abstract

4. Company profile

5. Introduction to ERP concepts

6.1 What is ERP?6.2 Benefits of the ERP software

7. SAP Concepts

7.1 SAP-Company and Software Package

7.2 SAP R/3 Client Server Architecture

7.3 SAP database organization

7.4 Application Modules of SAP

7.5 Advantages of SAP

8. Introduction to PP Module

8.1 What is PP?

8.2 Enterprise Structure

8.3 Customization9. Define plant

10. Define company code

11. Define MRP Controller

12.Production Planning

13.Bibliography


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PREFACE

I am the student of GEMS B SCHOOL ( BHARATHIAR

UNI VERSI TY), Bangalore studying in2nd semester . As a part of 2-year MBA course, I have undergone a

project as a Major project Work on I ntroduction to SAP PP Module

& SALES AND BI LL ING SYSTEM to facilitate them with an

automated software besides the error prone manual work .

Enterpri se Resource Planning is that growing segment of information

technologies that fu lf i l l needs of the enterpr ises l ike qual i ty, time to

market, customer satisfaction, performance and profitability very

ef fectively and eff icientl y.

The aim of the project is to provide an integrated environment to an

enterprise with SAP software with al l its advantages over the manual

system. All the operations of the company can be integrated in to an

overall system for planning, controll ing and monitor ing.

The work done in thi s project has been done using the SAP ECC4.7

tool. SAP R/3 SD module is a very effective tool for SALES AND

BI LL ING SYSTEM . Thi s report provides the knowledge regarding

the technology used in the project.


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ACKNOWLEDGEMENT

For every accomplishment we need t h e cooperation and help of

others. As knowledge advances by s t e p s notbyl e a p s so, a b i l i t y

advances by encouragement and guidance.

First of all would like to thank GEMS B SCHOOL f o r providing an

opportunity to create this project. Then I would like t o thank OSWAL

GROUP Ltd, B a n g a l o r e for providing suchworking environment.

I express my deep sense of gratitude and feeling of indebtedness toOSWAL for providing all the facilities and its staff. I also express my

gratitude to my project guide, for their bold attention in this particular

time of the project and guide me as per according to progress of my

project work on SALES AND BILLING SYSTEM of PP Module

in SAP.

MADHURI RGEMS B SCHOOL

(BHARATHIAR UNIVERSITY)


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DECLARATION

This is to certify that this project entitled Billing System in SAP

submitted as the partial fulfillment of the requirement for degree ofMBA. in GEMS B SCHOOL ( BHARATHIAR UNIVERSITY),

submitted to the Institute is authentic record of our own work carried outat the end of third semester Bangalore, has been approved by the project

in charge after an oral examination on the same, in collaboration with anHead of I.T Department .

5


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ABSTRACT

This report covers the introductory concepts about the ERP software.

The ERP software used is SAP Software. Enterprise Resource Planning,

a software solution that addresses the enterprise needs taking the process

view of an organization to meet the organizational goals tightly

integrating all functions of an enterprise.

Enterprise Resource Planning, a business management system that

integrates all facets of the business, including planning, manufacturing,

sales, and marketing. ERP had its origins in manufacturing and

production planning. In the mid -90s it was extended to other back-

office functions such as financial management and human resource

management. More recently these systems have addressed applications

specific to higher education such as student systems and grants

management.

SAP is an ERP software product capable of integrating multiple

business applications, with each application representing a specific

business area. These applications update and process transactions in

real time mode.

This report covers the pp Module in SAP for a new enterprise. The

customization includes the customization of the Master Data as well as

that of the transaction Data. After this, the enterprise would be ready to

run SD Module in SAP.


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Application Implementation is done in SAP R/3 with database in Oracle. The

company has SAP R/3 4.7 application, which enables the effective and streamlined

operations of the department, in an online integrated way.

The staff skills are enhanced through proper training and deploying the

appropriate resources of the company to get the maximum result.

The team members are highly motivated and professionals, who have been the

most helpful to me. They are always open to any queries and problems that I face

during the course of my training and guide me suitably. I am very impressed by their

style of functioning and feel very privileged at being here in such a professional

atmosphere, which shall help me, a lot in guiding and shaping my future in the

industry.

The Systems Department Team

Mr. Nitesh kumar General Manager, IT

Mr. Narinder Singh Manager, IT

Mr. Sunish Gupta ABAP Consultant

Mr. Adhish Prabhakar ABAP Consultant

Mr. Siddharth Sharma pp


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2. Project Review

2.1 EVOLUTION OF ERP

Automation was a magic word in the beginning. The focus then shifted to computers

and the trends were to replace the human power with the microprocessor power,

pink slip the employee and hopefully the faults and the costs will come down. From

then onwards, automation was considered the panacea for all ills of business. But

there was much that was wrong with this approach. As these automation packages

use to come in different forms and in a non-integrated fashion, loading too much

Information Technology on to these in- efficient processes and packages that leads

to double entendre.

Actually confusion was that companies developed separate computer applications to

satisfy the needs of their particular functional segment. e.g. Accounts, Purchase,

Inventory and Planning. Such systems grew as inconsistent islands of information,

and hence their consolidation was not possible which lead to numerous

organizational problems and data inconsistencies are likely to occur. As a result the

decision-makers were denied of access to timely information for making urgent

business decisions. This gave rise to the need of an integrated system (ERP) that

would address the information requirements of the entire enterprise.


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DEFINE ERP

Enterprise Resource Planning, a software solution that addresses the enterprise

needs taking the process view of an organization to meet the organizational goals

tightly integrating all functions of an enterprise.

Fig 3:- Enterprise Resource Planning

Short for Enterprise Resource Planning, a business management system that

integrates all facets of the business, including planning, manufacturing, sales, and

marketing. As the ERP methodology has become more popular, software applications

have emerged to help


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Business managers implement ERP in business activities such as inventory control,

order tracking, customer service, finance and human resources.

ERP had its origins in manufacturing and production planning . In the mid -90s it

was extended to other back-office functions such as financial management and human

resource management. More recently these systems have addressed applications

specific to higher education such as student systems and grants management .

Enterprise Resource Planning software, or ERP, doesn't live up to its acronym. Forget

about planningit doesn't do much of thatand forget about resource, a throwaway

term. But remember the enterprise part. This is ERP's true ambition. It attempts to

integrate all departments and functions across a company onto a single computer

system that can serve all those different departments' particular needs.


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SCOPE OF ERP

The various areas that can be covered under the concept of Enterprise

Resource

Planning (ERP) are discussedbelow:-

Fig4:-Areas covered under ERP

Customer Relations

o Sales Support

o Delivery

o Billing

o Credit

Logistics

o Procurement

o Production

o Materials Mgt.


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Human Resources

o Payroll

o Organization

o Hiring

Treasury

o Commitments

o Investmentso Currencies

.


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2.2 EXPLORING ERPS BENEFITS

Integrated, uniform, relevant and up-to-date information is vital for the existence for

the enterprise. ERP brings together people who work on share tasks within the same

enterprise. Some of the tangible benefits of ERP are

Reduction of lead-time by 60%

99% on time shipments

Doubled business

Increase of inventory turns to over 30%

Manufacturing of single bicycle time reduced to 80%

Better customer satisfaction

Improved vendor performance

Increase flexibility

Reduced quality cost

Improved workflow and efficiency.

Improved access to information.

Improved controls and program alerts.

Improved resource utility

Improved information accuracy

Improved decision making capability

Another reason to consider ERP is to improve workflow and efficiency. As an

example, online requisitions can be completed and workflow processes can forward

the form along the approval path more rapidly than with traditional paper processes.


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Another reason to consider ERP is the ability to improve controls and to program

alerts. Alerts, for example, can be programmed to warn budget managers about

budgets that are in danger of running out of funds and to implement controls that

prevent individuals from overspending budgets.

SHORTCOMINGS OF ERP

Problems with ERP systems are mainly due to inadequate investment in ongoing

training for the involved IT personnel - including those implementing and testing

changes - as well as a lack of corporate policy protecting the integrity of the data in

the ERP systems and the ways in which it is used.

Disadvantages

Customization of the ERP software is limited.

Re-engineering of business processes to fit the "industry standard"

prescribed by the ERP system may lead to a loss of competitive

advantage. ERP systems can be very expensive leading to a new

category of "ERP light" solutions

ERPsare often seen as too rigid and too difficult to adapt to the

specific workflow and business process of some companiesthis

is cited as one of the main causes of their failure.

Many of the integrated links need high accuracy in other

applications to work effectively. A company can achieve

minimum standards, then over time "dirty data" will reduce the

reliability of some applications.

Resistance in sharing sensitive internal information between

departments can reduce the effectiveness of the software.


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Some large organizations may have multiple departments with

separate, independent resources, missions, chains-of-command, etc,

and consolidation into a single enterprise may yield limited benefits.

2.3INTRODUCTION TO SAP R/3 - ENTERPRISE

SOFTWARE

Integrated software that supports the information flows among the processes in

the supply chain.

Sap R/3 is an ENTERPRISE SOFTWARE.

Fig5:- Flow of information in Enterprise Software

Enterprise software is integrated software that facilitates the flow of

information among all the processes of an organizationssupply chain.


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A supply chain describes the chronological and logical relationships of

business transactions from original supply to final consumption.

A value chain encompasses those activities in the supply chain that add value to a product or

service of an organization.

A value chain views all the business events from the receipt of a customer order

to the delivery of that order. For example, value is added when the production

process takes raw materials and transforms them into a finished product, when

the product is sold to the customer. A company is profitable if the price

consumers are willing to pay for a product exceeds the costs of creating value.

THREE -TIER CLIENT/SERVER ARCHITECTURE

The R/3 Basis is the business operating system software that resides on the database

server, the application server, and the clients of the end user of the R/3 installation.

The SAP R/3 Basic system is a multi-tier client/server system. The classic

configuration of a SAP R/3 System contains the following software layers:

Presentation Layer

Application Layer

Database Layer

PRESENTATION LAYER

Presentation Layer contains the software components that make up the SAPGUI

(Graphical User interface). This layer is the interface between the SAP R/3 Systems


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and its users. The SAP R/3 system uses the SAPGUI to provide an intuitive

graphical user interface for entering and displaying data. The presentation layer

sends the users input to the application server, and receives data from it.

APPLICATION LAYER

The application layer consists of one or more application servers and a message

server. Each application server contains a set of services used to run in the SAP R/3

System.

Theoretically, you only need one application server to run a SAP R/3 System. In

practice, the services are distributed across more than one application server. This

means that not all application servers will provide the full range of services. The

message server is responsible for communication between the application servers. It

passes requests from one application server to another within the system. It also

contains information about application server groups and the current load balancing

within them. It uses this information to choose an appropriate server when a user

logs onto the system.

DATABASE LAYER

The database layer consists of a central database system containing all of the data in

the SAP R/3 System. The database system has two components - the database

management system (DBMS), and the database itself. SAP does not manufacture its

own database. Instead, the SAP R/3 System supports the following database systems

from other suppliers: ADABAS D, DB2/400 (on AS/400), DB2/Common Server,


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DB2/MVS, INFORMIX, Microsoft SQL Server, ORACLE, and ORACLE Parallel

Server.

The database does not only contain the master data and transaction data from your

business applications, all data for the entire SAP R/3 System is stored there. For

example, the database contains the control and Customizing data that determine how

your SAP R/3 System runs. It also contains the program code for your applications.

Applications consist of program code, screen definitions, menus, function modules,

and various other components. These are stored in a special section of the database

called the SAP R/3 Repository, and are accordingly called Repository objects. You

work with them in the ABAP Workbench.

The following diagram depicts the whole scenario -

Fig 6:- Software layers of R/3 system


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FEATURES OF 3-TIER ARCHITECTURE

SCALABILITY

Adding more applications or more users to the system. When more users are added

to the system, another application server may be added to handle the additional

processing demands of those users.

FLEXIBILITY

The number of application modules may be increased without changing the Basis

System software that runs on the application servers and the database server.

ON-GOING MAINTENANCE

Business functions included in the system may be removed and replaced by other

functions that better match current business practices. Also, changes in organization

structure can be made using the R/3 Reference Model and does not require changes

in the Basis Software system.


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2.4 ADVANTAGES OF SAP R/3

Fig 7:- Advantages of SAP R/3

The SAP R/3 software helps in providing the various functions in the system


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SECURITY THROUGH INTEGRATION

It helps in providing full-fledged integration of the various data transfers and

high quality reports can be made easily.

SAVING TIME WITH INTEGRATION

The consolidation software helps to shorten the time needed to close the books,

The financial transactions in the ledger are integrated with the consolidation

database and helps in getting the required information at any time.

AUTOMATION OF CONSOLIDATION PROCEDURE

It helps in reducing the time and expenses to manually enter all the documents

especially in the area of consolidation investments.

COST EFFECTIVE AUDITS

The system generates printed audit reports and allows the auditor to perform

interactive analysis of special detailed information directly on the screen.

CUSTOMIZING THE SOFTWARE AS PER THE NEEDS

It is helpful in making new programs as per the requirements.

PRE-FIGURED FOR THE FAST IMPLEMENTATION

System comes with a variety of useful consolidations, which can be put to use

immediately or can be employed after minimal adjustments. The system

includes several industry-related plans.

EASY TO LEARN AND USE


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The system is user friendly and context-sensitive help functions and extensive

online documentation allows learning the system easily.

ACCOUNTING AUTONOMY

Running your consolidation on a separate computer increases the accounting

departments autonomy. This is very helpful during the closing period when

there is lot of workload.

INFORMATION SYSTEM

The controlling component includes versatile reporting functions. Exception

reporting and interactive navigation through the database enhances the

preparation of information.

APPLICATION MODULES

SAP has several layers. The Basis System is the heart of the data operations and

should be not evident to higher level or managerial users. Other customizing and

implementation tools exist also. The heart of the system from a managers view

point is the application modules.


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Fig 8:- R/3 Core business processes

These modules may not all be implemented in a typical company but they are all

related and are listed below:

FI Financial Accounting-designed for automated management and external

reporting of general ledger, accounts receivable, accounts payable and other sub-

ledger accounts with a user defined chart of accounts. As entries are made

relating to sales production and payments journal entries are automatically

posted. This connection means that the "books" are designed to reflect the real

situation.

CO Controlling--represents the company's flow of cost and revenue. It is a

management instrument for organizational decisions. It too is automatically

updated as events occur.


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AM Asset Management--designed to manage and supervise individual aspects

of fixed assets including purchase and sale of assets, depreciation and

investment management

PS Project System--is designed to support the planning, control and monitoring

of long-term, highly complex projects with defined goals.

WF Workflow--links the integrated SAP application modules with cross-

application technologies, tools and services

IS Industry Solutions--combine the SAP application modules and additional

industry-specific functionality. Special techniques have been developed for

industries such as banking, oil and gas, pharmaceuticals, etc.

HR Human Resources--is a complete integrated system for supporting the

planning and control of personnel activities.

PM Plant Maintenance--In a complex manufacturing process maintenance

means more than sweeping the floors. Equipment must be services and rebuilt.

These tasks affect the production plans.

MM Materials Management--supports the procurement and inventory

functions occurring in day-to-day business operations such as purchasing,

inventory management, reorder point processing, etc.

QM Quality Management--is a quality control and information system

supporting quality planning, inspection, and control for manufacturing and

procurement.


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PP Production Planning--is used to plan and control the manufacturing

activities of a company. This module includes; bills of material, routings, work

centers, sales and operations planning, master production scheduling, material

requirements planning, shop floor control, production orders, product costing,

etc.

SD Sales and Distribution--helps to optimize all the tasks and activities carried

out in sales, delivery and billing. Key elements are; pre-sales support, inquiry

processing, quotation processing, sales order processing, delivery processing,

billing and sales information system.

2.5 MODULES IMPLEMENTED AT HERO

The ERP package implementation at Hero Cycles covers the following seven

modules :-

1. Cost Controlling

2. Sales and Distribution

3. Material Management

4. Production Planning & Control

5. Plant Maintenance

6. Quality Management

7. Financial Accounting


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3.1 SAP CONFIGURATION

Oswal Group has implemented SAP R/3 having following features:

SAP R/3 release 4.7 Enterprise

SAP version 4.7 Enterprise upgrade from 4.0B as Front-end.

Currently supporting 150 users

All the departments work under the environment of

IBM AIX with RS/6000 SP Server, IBM P630 Server.

Oracle 8.0.6 upgraded to Oracle 9.2.0.4 as Backend RDBMS for R/3 system.

ABAP/4 as application programming language.

Windows 98 as client operating system.

Three-tier architecture

Class B IP addressing

Core Builder 9000 (switch from 3COM) is used to provide networking (Client

Server) connections to various department within organization.


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3.2 TRAINEE SERVER (IDES)

SAP IDES the "Internet Demonstration and Evaluation System" in the R/3

System, represents a model company. SAP IDES is a normal R/3 but with lots of

DEMO data. It is purely for education .It is a training server, used to give training to

users. When sap is implemented in company, first IDES is installed so that users

become familiar with different screens and transaction codes. It is simple to use and

has a variety of master and transaction data, and is used for demos, online/classroom

training, and presentations. IDES uses easy-to-follow business scenarios to show

you the comprehensive functions of the R/3 System. The focal point of IDES,

however, is not the functionality itself, but the business processes and their

integration. SAP regularly updates the IDES data (master data, transaction data, and

customizing). Above all, IDES shows you the possibilities of the integrated

applications in the SAP System. IDES cover all aspects of a business enterprise,

including Human Resources, Financial Accounting, Product Cost Planning, Overhead

Management, Profitability Analysis, Planning, Sales and Distribution, Materials

Management, Production and much more.

System Requirement to install IDES

For installing IDES 46C on a Laptop, you need:-

Windows server

160 GB HDD512 MB RAM


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INTRODUCTION TO

PRODUCTION PLANNING


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3.3 PHASES OF IMPLEMENTATION OF SAP

Accelerated SAP (ASAP) is an approach specifically developed by SAP to help

customers implement the SAP software as quickly and efficiently as possible.

The Accelerated SAP Roadmap consists of the following phases

Project Preparation

Business Blueprint

Realization

Final Preparation


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Go-Live&Support

Fig9:-various phases for implementing sap

1. Project Preparation

It consists of identifying team members and development strategy as how to go.

ASIS (Existing Process followed, requirements)

TOBE (Requirement analysis and best process recommended)

Difference between (ASIS) & (TOBE) is GAP analysis

2. Business Blueprint


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It is a legal documentation between client and the company (implementer/service

provider) .We has to understand the current business process of client and analyzing

the business and prepare documentation. It is a detailed documentation for the client.

3. Realization

This phase is used to implement or migrate the entire business of client from Non-

SAP environment to SAP environment.

4. Final Preparation (Preparation for Production Use)

This phase is used for testing and end user training. After successfully completion of

this phase client is ready to run business in SAP R/3.

5. Go-Live & Support

In this phase we deliver the project end date and end user training at client site.

4.1 ENTERPRISE STRUCTURE

In enterprise structure we learn how to portray the specific organizational structure

of our company in r/3 system. First we analyze the structures and procedures in our

company

and then match them to the SAP structures .To help us portray our structures various

organizational elements are defined as eg. In standard version .Normally these

would not cover all our needs thus we extend the elements and define them as


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required .as soon as our organizational units are ready; access is located so that no

other changes can be made.

The enterprise structure consists of:

DEFINE:-

Controlling area

Company

Company code

Plant

Storage location

Purchase organization

Sales area

Sales organization

Distribution Channel

Division

Company:-

A Company is an organizational unit in accounting which represents a business

organization according to the requirements of commercial law in a particular

country.

Company code:-

A company code is a smallest independent accounting unit that represents an

individual company.

Plant:-

A Plant is an organizational unit where we can manufacture the goods, store goods,

sale our goods, and we can also provide services & we can do purchasing also.


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Storage Location:-

It is a place where products before and after manufacturing are stored.

Purchasing Organization:-

Organizations that discuss with Vendor terms and conditions of purchase.

Sales organization:-

Sales organization is an organizational unit which is responsible of certain product

and liability of that product. A company code can have several sales organizations

Distribution channel:-

Distribution channel is the way in which products or services reaches the customers.

Division: - Division is the way of grouping materials, products or services. This

represents companysproduct line like nature of material. It tells about spectrum of

products.

Controlling area:-It is the highest organization with reference to costing material.

Just like the company itself, each company code in a company has a controlling

area.

Sales area:- It comprises of sales org , distribution channel & division.


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4.2 FLOW CHART OF ENTERPRISE STRUCTURE

CONTROLLING

AREA

COMPANYPURCHASING

ORGANIZATION

COMPANY CODE 1 COMPANY CODE 2

COMPANY CODE 3

PLANT

MAINTENANCE

area

PLANT 1 PLANT 2

PLANT 1 PLANT 2 PLANT3

Sales

SL 2SL 1

SL 2

SALESORGANIZATION

DISTRIBUTION

CHANNEL

DIVISION

Fig10:-Flow chart of Enterprise Structure


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SNAPSHOTS OF ENTERPRISE STRUCTURE

LOGON SCREEN OF SAP

When we double click the sap logon icon on the desktop the following screen

appears which prompts you to logon on following servers

1. IDES (Internal Demonstration Evaluation Server):-Purely for educationalpurposes

2. Production Server:The checked project are used here with the livedata.

Double click on ides server


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USER AUTHENTICATION CHECK


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USER AUTHENTICATION CHECK

New password.I

Clent _fB'O'Ol

.,YseL Jsapuser IPassword 'l'.f

Language n

I I>1sooomIDEs OVR!i21I start rpjsybex - Mastennglo 0SAP Document1 M1crosof


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Fields entered are:-

1. User name

2. Password


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SAP WELCOME SCREEN

The SAP Easy Access screen is where you will start every session, and is the primary

user navigation area.


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ENTERPRISE STRUCTURE

TRANSACTION CODESPRO

INITIAL SCREEN


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1. DEFINE COMPANY

Company:- A Company is an organizational unit in accounting which represents a

business organization according to the requirements of commercial law in a

particular country.

Menu Path: PRO Enterprise Structure Definition Financial

AccountingDefine Company

After following this path then execute (dbl click ) then go to New Entries


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I


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Fields Entered are:-

Company:- 4444

Company name:- G & G Enterprises

Country:- IN (India)

Language Key:- EN (English)

Currency:- INR (Indian Rupee)


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To save your entries click on save. Then a request number is generated .This request

number is stored on the main server and thus later with the help of this number we

can trap the transaction performed.

Always write down the SAP document number. If you need to view a document

in the future, using the document number is the easiest way to find to it.


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View of Created Company

Our Company 4444- G & G Enterprises is added in the list.

Thus after generation of request our company is added in the list of existing

companies


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DEFINING COMPANY CODE

Company code:-A company code is a smallest independent accounting unit that

represents an individual company.

Menu Path:- Enterprise StructureDefinitionFinancial AccountingEdit,

Copy, Delete Company CodeEdit Company Code Data


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After navigating through the above menu path the list of already existing company

codes is displayed. To define your own company code click on new entries and

make the above shown entries

Details Of Added Entries


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Request generated

After making required entries, click on save a request code is generated and our

company code is added in the list of existing company codes.


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DEFINE PLANT

Plant: - A Plant is an organizational unit where we can manufacture the goods, store

goods, sale our goods, and we can also provide services & we can do purchasing

also.

Menu Path:- Enterprise Structure Defination Logistic General Define,

Copy, Delete, Check PlantDefine Plant


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After that go to New Entries


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Details of added Entries


City Code:- 0001

Factory calendar:- 01


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Editing Plant

In this screen we add additional information about the plant like who is running this

plant.


Title:- Ms.

Name:- Gurpreet

Country:- IN (India)

Language:- EN (English)


plant is added in the list of existing company codes.


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Customizing of Plant Parameters

Menu Path:- Spro Production MRP Plant Parameters Carry Out

Overall Maintenance

We need to do all these customizing so that Enterprise Structure we create should

support all the planning & scheduling functions we need to perform.


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Maintenance ofNumber Range

Assign Number Ranges

Iir- 4447 Plant1

Numberranges/

I. Planned orders To maint

I Reserv./depend.reqmts I To maint.

I Purchase requisitions I To maint

I MRPlists I To maint.

I Sim.dependentreqmts I To maint.

I....IIJ el",;iJ l.l:i SAPLogon520 =I ....:JsynacliveGui>


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Details of MRP Controller:-


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In this details we add Plant Name, MRP Controller, Telephone no. , Recipient

Name,

Business Area, Recipient Type. These are some of the mandatory fields which we

have to fill so that we can see all the details at the end report.

Maintenance of Floats


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It specify extra time to be allowed for Production

Fields Entered:-

1. Schedule Margin Key:-000

2. Opening Period:-003

3. Float Before Period:-003

4. Float After Production:-005

5. Release Period:-010


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Maintenance Of Conversion

Conversion

i- r 4447 Plant!

Conversion/

I Planned order-> production order I To main!.

I Plannd order-> purch.requisilion I To main!.

II

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Conversion of Planned Order to Production Order on clicking on this we get

Fields Entered:-

Production order: PP01 (Standard Production Order (Int no.))

Process order: PI01 (Process Order (Internal Number Assignment))

After this click on save button & then go back to conversion screen so that we can

maintain second option in same way.


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Maintenance of BOM/Routing Selection

Fields Entered:-

Plant:- 4447

BOM select Id:- 01

Routing select Id:- 01


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Maintenance of Param: Detailed Scheduling

For this we have to enter following Fields which we have to define by our own:-

Plant 4447

Production Scheduler 420

Name of Production Scheduler ABC

Production Profile 111111

Name of Production Profile PP Scheduling


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After maintaining all Parameters


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DEFINE STORAGE LOCATION

Storage Location:- It is a place where products before and after manufacturing are

stored.

Menu Path:- Enterprise Structure Definition Material Management

Maintain Storage Location

Now we have to enter Work area or plant where we work i.e. 4447


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Details of Added Entries


Storage Location No. :- SL1

Description:- Storage Location


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Storage Location is added in the list of existing Storage locations.

DEFINE PURCHASING ORGANIZATION

Purchasing Organization:-Organizations that discuss with Vendor terms and

conditions of purchase.

Menu Path:- Enterprise Structure Definition Material Management

Maintain Purchasing Organization


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Fields Entered are :-

Purchasing Organization:- 4445 & 4446

Purchasing Organization Description:- Product Purchasing


Purchasing Organization is added in the list of existing Purchasing Organizations.


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DEFINE SALES ORGANIZATION

Sales organization:-Sales organization is an organizational unit which is

responsible of certain product and liability of that product. A company code can

have several sales organizations

Menu Path:-Enterprise Structure Definition Sales & Distribution

Define, Copy, Delete Sales Organization

1


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Sales Organization is added in the list of existing Sales Organizations.


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DEFINE DISTRIBUTION CHANNEL

Distribution channel:- Distribution channel is the way in which products or

services reaches the customers.

Menu Path:-Enterprise Structure Definition Sales & Distribution

Define, Copy, Delete Check Distribution Channel Define Distribution

Channel


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Distribution Channel:- 42 & 43

Description:- Product Distribution & For Billing


Distribution Channels is added in the list of existing Distribution Channels.


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DEFINE DIVISION

Division: - Division is the way of grouping materials, products or services. This

represents companysproduct line like nature of material. It tells about spectrum of

cts.

Menu Path:- Logistic Material Master Settings for keyfields Define

Divsion


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Division:- D0 & D2

Description:- Product & Electricity


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Distribution Channels is added in the list of existing Distribution Channels

DEFINE CONTROLLING AREA

Controlling area:-It is the highest organization with reference to costing material.

Just like the company itself, each company code in a company has a controlling

area.

MenuPath:- Enterprise Structure Definition Controlling Maintain

Controlling AreaMaintain Controlling Area


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Details of Added

Entries


Controlling Area:- 4445

Currency Type:- 10

Chart of Accounts:- INT (Integer)

Fiscal Year Variant:- K4


Controlling Area is added in the list of existing Controlling Area.


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ASSINGMENTS

The Process of Assignment builds Relationships among plant, Storage location,

Purchasing Organization, Sales Area.

Assignment of Company Code to Company

Menu Path:- Enterprise Structure Assignment Financial Accounting

Assign Company Code to Company

After this we have to enter Company i.e4444 against Company code i.e4445. Then

we have to save after that request will generate which will result in final screen.


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Final Screen

Change View "Assignment:Company Code-> Company":Ovetview

'ji> [IDCil

Position.. =r Entry 43 of 211


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Now your Company Code has been assigned to your Company.

Assignment of Controlling Area to Company

Menu Path:- Enterprise Structure Assignment Controlling Assign

Company Code to Controlling Area


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After this we have to click on Assignment of Company Code to Controlling Area,

then on NEW ENTRIES.



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Final Screen


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Now your Company Codes has been assigned to your Controlling area.


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Assignment of Plant to Company Code

Menu Path:- Enterprise StructureAssignmentLogistic(General)Assign

Plant to Controlling Area


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Company Code 4445 get selected

87


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Now click on Continue, then a request will be generated and then and your plant i.e

plant1 get assigned to your Company Code 4445.

Final Screen


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Allocation of Plants->Company Code:Overview

Assign Analyze error(s) Delete

Company codePlants

4300 India

4400 Thailand

E._G & 61 enterprices4447 Pla nt1

4446 G & 62 enterprices

L4448 Pl ant3

4500 IDES Canada for 4500

4510 SAP Plant - E.as.tern Canada4520 SAP Plant - Central Canada

4530 Vancouver

4540 Red Deer Fac111ty

4518 US Company

L4514 Fort Worth

4520 Canadian 2 Company

4600 Mala ysia

4700 Indonesia

4800 Phil;pp;nes

4801 KL Knitwears


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Assignment of purchasing Organization to Company Code

Menu Path:- Enterprise Structure Assignment Material Management

Assign Purchasing Organization to Company Code

After going through the above path then a list of Company code screen will be

opened & then we have to select our Company code & then click on that so that a

list of Purchasing Organizations will be opened.


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List of Purchasing Organizations

Now we have to select our Purchasing Organization i.e4446 so that it could be

assigned to Company Code. After that we have to save & a request will be generated

and then Purchasing Organization will be assigned to Company Code.


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Final Screen

Purchasing Organizations -> Company Code: Ovetview

Assign Analyze error(s) Delete Select/Deselect Move Deselect

Company code

Purchase Organizations

4000 IOES Canada

4009 microsoft company

4100 Korea

4200 Taiwan

4300 India

4400 Thailand

E._G & 61 enterprices4445 product purchasing

4446 G & 62 enterprices

L4446 product purchasing

4500 IDES Canada for 4500

4500 SAP Canadian Company

4510 Eastern Purch Org4520 Central Purch Org4530 Western Purch Org

US Company

L_4514 Fort Worth Purch Org

4520 Canadian 2 Company


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Assignment of purchasing Organization to Plant

Menu Path:- Enterprise Structure Assignment Material Management

Assign Purchasing Organization to Plant

After going through the above path then a list of Purchasing Organization screen

will be opened & then we have to select our Purchasing Organization & then click

on that so that a list of Plant will be opened.


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List of Plants

Now we have to select our plant i.e4447 so that it could be assigned to Purchasing

Organization. After that we have to save & a request will be generated and then

Plant will be assigned to Purchasing Organization.


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Final Screen

Plants >Purchasing Organization:Overview

Assign Analyze error(s) Delete SelectiDeselect Deselect

Purch. organizationPlants

3050 LIDES UK

L 3D50 UK

3111 OEM US

4000 IDES Canada

4000 Toronto4100 Plant 4100

4202 fabric purchasing

L4200plant nahar1

4203 f abric purchasing2

L4201pla nt 1

4444 IDES puchasing org.

PL1 product1on housePL2 product1on house new

product purchasing

L4447 Pl ant1

4446 product purchasing

L4448 Pl ant3

4500 SAP Canadian Company

I


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Assignment of Sales Organization to Company Code

Menu Path:- Enterprise Structure Assignment Sales & Organization

Assign Sales Organization to Company Code

After going through the above path then a list of Company Code screen will be

opened & then we have to select our Company Code & then click on that so that a

list of Sales Organization will be opened.


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List of Sales Organizations

Now we have to select our Sales Organization i.e4449 so that it could be assigned to

Company Code. After that we have to save & a request will be generated and then

Sales Organization will be assigned to Company Code.


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Final Screen


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4.4 PRODUCTION PLANNING MODULE

SAP PP is the Production Planning module of the SAP ERP software package from

SAP AG. Production Planning is integrated with other modules such as SD, MM and

QM. Production Planning is looks after planning part in industry.

The production planning is concerned with the planning and programming of

materials and equipment, start & ending dates of activities undertaken in industry,

procurement of materials (Raw materials, Semi Finished goods), Storage and

inventory control, goods recipt, goods transfer from one location to other location.

Production Planning is one of the functional modules in SAP. It is the branch of

logistics that deals with the tangible components of a supply chain interdependent

collection of organizations that supply materials. Specifically, production planning

covers the Planned Independent Requirements, Production orders, Production

requisitions of different materials present in the storage location.

SAP PP is all about Planning & scheduling. These resources include man,

manpower and materials. The main functionality within PP includes Planned

Independent Requirement(PIR), Material Requirement planning(MRP),Planned

Order, Production Order, Confirmation, Goods receipt. The module has important


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master data material master, Bill of material, Routing & Work Center. Broadly,

the various levels that can be defined for a SAP PP implementation are: Company,

Company Code, Plant, Storage Location and Purchasing Organization, Controlling

area, Sales Organization.

DATA IN SAP

There are two types of data in SAP:-

1. Master data

2. Transaction data

1. Master data:-

These data can not change frequently and are basic for execution of trasaction.eg:-Material master, BOM , Routing and Work center etc.

Master Data in PP Module are as Follows:-

o Material Master

o Bill Of Material (BOM)

o Work Center

o

Routing

2. Transaction data:-


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There are perpetual data which can change, generated with time and generated from

transaction e.g. planned order, production order, purchase requisition order etc.

MATERIAL MASTER

Businesses related information is maintained in material master. The information of

material is arranged in logically view depending upon business function. There is a

transaction code for creating, editing, displaying and deleting.

It include Various Views:-

Basic View

MRP View

Workscheduling View

Accounting View

Quality View

Sales View

Costing View

Table3:-T-codes for Material Master

Create Change Display Display Changes Set Deletion Flag

MM01 MM02 MM03 MM04 MM06

MINIMUM REQUIREMENT TO CREATE A MATERIAL MASTER


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SAP Easy A ccess

ffi I I Othermenu I .iiiil # I .... .... I ffi Create rote I t!JjiJ Assign users [), Documentation J'V Cl SAP menuD OfficeD Cross-Application ComponentsD LogisticsD Accounting D Human ResourcesD Information SystemsD Toots

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CREATE MATERIAL INITIAL SCREEN

Fields Entered Are:-

1. Industry Sector- M (Mechanical engineering)

2. Material Type- FERT (Finished product)

Hit enter


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SELECT VIEW SCREEN

SELECTED VIEWS:-

Basic Data 1

Basic Data 2

Purchasing

MRP 1

MRP 2

MRP 3

MRP 4

Work Scheduling

Accounting

Costing


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Organizational Level

Fields Entered:-

Plant:- 4447

Storage Location:- SL1


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Basic Data 1

Fields Entered:-

Material Description:-Fan

Base Unit of Measure:-pc

Material Group:-00120


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Base Data 2


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Purchasing Screen

Fields Entered:-

Purchasing Group :- 000


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MRP 1 Screen


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Fields Entered:-

MRP Type:- PD( Planned)

MRP Controller:- 111

Lot Size:- EX(lot for lot Order Quantity)

MRP 2 Screen


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Fields Entered:-

Procurement Type:- X(Internal as well as External procurement)

Special Procurement:- 11

In-house Production:- 10 days

Goods Receipt processing:- 10 days

Planned Delivery Time:- 5 days

Schedule Margin Key:- 000

MRP 3 Screen

114


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Work Scheduling

Fields Entered:-

Production Scheduler:- 420

Production Scheduler Profile:- 111111


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Accounting 1 Screen

Fields Entered:-

Valuation Class:- 7920

Price Control:- S(Standard Price)

Standard Price:- 100


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Costing 1 Screen

After this we will save & then FERT Material will be created by giving a message

ie. Material 1798 created like this we can create other material also.


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Bill of Material(BOM)

Components used in making a product and quantity of components. It can be at one

level not multiple level. There is a transaction code of creating, editing, and

displaying the BOM.

Transaction codes :

Creation- CS01

Change- CS02

Display- CS03

Minimum requirement to create BOM

1. Material code

2. Plant code that is for which plant, which create BOM usage

3. BOM usage/type

NOTE:-

BOM can be created for in-house produced products, finished/semi

finished products but not for the raw material.

One material can have multiple BOM.

Structure of BOM:-

Header:-

For which material/product BOM is created. In this, we mention:

Base quantity: For how much quantity, BOM is being created.


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Administrative data: who has created and date of creation.

Item overview :- List of components used in BOM.

Sub Item :- It is the Installation point of item in the BOM.

BOM status :- It tells us whether BOM is active or inactive for particular

application. It

is mentioned in BOM Header.

Types of BOM category:-

Production BOM:

Sales BOM

Functional Location BOM

Engineering/Design BOM

Universal BOM

BOM Group:-

Several BOM can be groups together in BOM group using head of material .We can

create BOM by using variant BOM .They should be in same plant.

Group BOM:-

If a BOM is created without maintaining a plant ,then group BOM is created. Later

this BOM is required for allocation of plant.Using plant transaction ,Group BOM is

allocated to plant.Group BOM can be allocated to any number of plants.

T code for plant allocation of Group BOM:CS07


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Variant BOM:-It is created for different material where most of the component of

the material are same, only few vary. Variant BOM of material is created as a

variant of already created material .Variant BOM and Multiple BOM are mutually

exclusive to each other.

Customizing of BOM

Menu Path:- SPRO Logistics- General Material Master Basic

SettingsMaterial TypesDefine Attributes of Material Types


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Screen For Creating of Bill of Material(BOM)

Transaction Code:- cs01

Menu Path :- Logistics Production Master Data Bill of Material Bill

of MaterialsMaterial BOMCS01(Create)


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CREATE BOM INITIAL SCREEN


Plant :- 4447

BOM Usage :- 1

Hit enter


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Component:- 1793, 1799

Quantity:- 5, 5

Hit Enter

After this click on save a request will be generated and the BOM will be created.

WORK CENTER

Work center is a place where operation is carried out. It is created at plant level.In

this, we have to maintain an External No.

Transaction code :-

Create :- CR01

Change :- CR02

Display :- CR03

Work center Category:-

It is a mandatory entry while creating work center, which contrasts the maintenance

of fields default Value of the fields in work center.

Views in Work Center:

o Basic Data

o Default views for Operation. (Values set in this will get copied in the

Routing automatically)

o Capacity


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o Scheduling

o Costing

Standard Value Key:

It activates which activity is to be consumed at the work center

If reference indicator is set, then the value of control key cannot be

changed inrouting

In Work center, we assign the cost center

Many work centers can be assigned to one cost center. But the same

work centers can't be assigned to another cost center keys

Max. 6. can be maintained, for more activities Two work centers can be

made with divided activities.

Control Key:

It is a mandatory entry for an operation which controls:

Whether the operation is relevant to Scheduling

CRP i.e. Capacity Requirement Planning

Inspection Characteristics.

Auto G.R. (Goods Received)

Rework, (Work Again For Improvement)

Costing.

Standard Text Key.

Pooled Capacity:-


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It is the capacity category which is shared by Several Work centers.

E.g. One man- many M/c's

Back flush is present in.

-Material Master. (In MRP2, View)

-Work center

-Routing

-Production order


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Display iMG

g I Existing BC Sets BC Sets forActivity Activated BC Sets forActivity lUI Release Notes I Change Log Where Else L

I> @!II QualityManagement 0o

I> PlantMaintenance and Customer Service BI> Customer Service

"" Production

"" Basic Data

I> Bill of Material

"" Work Center

klist usage

1> StandardValue

Determine person responsible

. . ove t1me matnxGActivity ubsystems

Define defaultwork center

I> Routing Dat CapacityPlanning

Setup work center screen sequence GDefine graphics profile B

II 1> (SPRO1!J DES INsfiA

l JJ;TIAPLogoH !l iD'MicrosoftH IJ...::JsynactiveH.J IProduction -Display 1.. ,1= IJ tV:>--'i 114PM ll

129


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Screen for Creating of Work Center

Transaction Code:- CR01

Menu Path:- Logistics

Production

Master Data

Work Centers

WorkCenter CR01(Create)


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Basic Data


Person Responsible:- 777

Usage:- 009


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Default Value


Control Key:- PP01

Setup:- MIN (Minute)

Machine:- MIN (Minute)

Labor:- MIN (Minute)Hit Enter


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Capacities


Setup Formula:- SAPR05

Processing Formula:- SAPR06

Teardown Formula:- SAPR03

Hit Enter


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Scheduling


Capacity Category:- 001

Setup Formula:- SAP001

Processing Formula:- SAP002

Teardown Formula:- SAP007

Hit Enter


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Costing


Cost Center:- 4220

Activity Type:- 4221, 4220, 4223

After this we have to save and then Work Center is created.


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ROUTING

Sequence of operations to create a material is called routing.

VARIOUS OPERATIONS PERFORMED:-

Sampling:-We take particular of material, we inspect it and AQL (Acceptance Quality level) is

made by R& D department.AQL means which parameters are to be used i.e.

Mechanical, chemical Parameters etc and these are defined in SAP as Inspection

characteristics.

Supply Chain:-

CustomerPlantVender

SCM (Supply Chain Mgt.) Components:

SAP R/3

mySAP SCM.

APO ( Advance Planning Optimizer

ICH ( International Collaborated Hub)

EM (Event Mgmt.)

SAP BW (Business Info Warehouse)

Routing:-


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Work centers are used in Routing.

ADVANTAGES:-

1. We know process of Production.

2. Scheduling

3. Capacity Planning

4. Costing

5. To book the Production

Task List:-

Different Types of Task list (we call Routing as Task list)

1. Routing (N)

2. Reference Operation set (s):-These are used in Discrete Mfg.

3. Rate Routing (R)

4. Reference Rate Routing Operation Set (m):- Used in Repetitive mfg.

5. Standard N/W (0):-Used in Project System

6. Inspection Plant (Q):- Used in quality mfg

7. Master Recipe:-Used in Process Industries

Reference Operation set:-It is a kind of task list which is created without

maintaining a material.

Structureof Routing:-

Header Materials with Group No &Group Counter

Sequence

Operation


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Work Center PRT Component allocation Inspection characteristics Control

key

Screen For Creating RoutingTransaction Code:- CA01

Menu Path :- LogisticsProduction Master Data Routing Routings

Standard RoutingCA01(Create)


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CREATE ROUTING INITIAL SCREEN

Fields Entered Are:-Usage :- 1 (Production)

Status:- 4 (Released)

Hit enter and then click on Operation so that we assign Work Centers to different

Operations.


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Assigning of Work Centers


Work Centers:- 1555, 1556

Standard Key :- 46, 47

Hit Enter then save your Routing will be saved.


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4.5 FLOW OF PP For

Discrete Manufacturing

PIR/SO

MRP Planned

Orders Production

Orders

Confirmation

GR


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Planned Independent Requirement

Planned Independent Requirement (PIR):-

PIR is used for maintaining the requirement which could be week wise, monthly

wise or yearly wise. For estimating the requirement forecasting is done.

T code for PIR is: MD61

T code for changing PIR is: MD62

Planned order:-

A request created in the planning run for a plant to trigger the procurement of a plant

material for a certain quantity for a specific date.

Initial Screen for Creating PIR

Hit Enter


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Creating Requirement

After this we have to Enter and to see the requirement we have to run MRP

MRP:-Material requirement Planning:

-MRP is the planning coverage of shortage with the suitable receipt element.

T Code for MRP: MD02

MRP contain the following steps: NRC(Net

Requirement Calculation)

PQC(Procurement Quantity Calculation)


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Procurement Type

Scheduling

BOM explosion

MRP Procedures:-

Whether and how material is planned.

-MRPPD--- planning will take place.

Consumption Base Planning.

Reorder point lavel planning.

Forcast based planning.

Time based planning.

-Master production scheduling

-MRP in external procurement

-GR Processing time.

Execution in MRP:-

(1) Total Planning:-

All Material are planned, it can be run online or background.

T Code is: MD01

(2) Single item Planning:-

Only selected material are planned.

Single item single level planning

T Code is: MD02

Single item multi level planning

T Code is: MD03


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Single item iterative planning

T Code is: MD43

Customizing of MRP


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Stock Requirement List

To change this requirement to Planned Order we have to run Single Item Multiple

Level MRP.


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MRP Screen


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Planned Order

Now we have to Double click on planned order so that we can change that into

Production Order.


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Stock Requirement List

Now we have to Dbl click on Production Order to convert planned order to

production order.


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Production Order:- These are used in Discrete Manufacturing scenano where

product Stability is less it is basically the order given by l'viRP Controller to the

Shop floor people to start production.

20 PC Scrap portion

ExpectYieldVar

0.00

BasicDates Scheduled Confirmd

Finish 23.04.2009 24 00 23.04.2009 24:00

Start

Release

23.04.2009 00 00 23.04.2009 00:20

23.04.2009

00 00

Scheduling

Type

Reduction

Note

Priority

2 Backwards

No reduction carried out

No schedulingnote

Scheduling margin 000

Float bef.prod

Float after pro

Release period

Workdays

Workdays

Workdays


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Customizing of Release Production Order

Menu Path:- Production-+ Shop Floor Control-+ Operation-+ Avail Check-+

Define Checking Control

Display iMG

g I Existing BC Sets BC Sets forActivity Activated BC Sets forActivity lUI Release Notes I Change Log Where Else L

Structure

I> Pru u"liuuPluuiuy GI> Capacity Requirements Planning BI> MaterialRequirements Planning

"" Shop Floor ControlI> Master Data

"" Operations

l> Task List Selectionl> Bill of Material Selection Capacity Requirements Planningl> Change Management for Production Orders (DCM)

l> Confirmation

Define Print Control Gl> Schedule Background Jobs G

I>ISPROIDES INS fiA

ID - 1$1mr;fSAPLogo... JI!WMicrosolt .. lnactrve.. Joductron...llf Floi.play L l Jlrw.!j u@l


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Confirmation

Confirmation:- Declaring completion of an operation consumption of an activity is

called confirmation. It can be at order level or at operation level. Confirmation is

saved against already created confirmation.

-Even if full Qty. Confirmed, then also PCNF status will come, if partial

confirmation is selected during CNF.

-Even if partial is confirmed, then also CNF status will come if final

confirmation is selected during CNF.

-In automatic conformation, system itself selects the status i.e. PCN for CNF.

Types of Confirmation T Code

1. Time Ticket Confirmation CO11n

2. Time Even Confirmation CO19

3. Collective Confirmation CO12

4. Progressive Confirmation CO1f

Effects of confirmation:-

1. Order gets updated

2. Capacity Requirement gets required (In capacity Planning in orders)

3. Actual costs gets debited

4. HR data gets posted.

5. Material document may get (if auto GR is done. Then it will be posted, otherwise

not).

Note:-When confirmation is posted

6. GI of back flush component takes place.

7. GR of header material takes place if auto GR is set


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After Confirmation Production Order

Here we can check the status of Production Order.

GMPS:- Goods Moment Posted.

It means final Confirmation has been done.


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10. 104- Reversal.

11. 105- GR from Inspection.

12. 106-Reversal.

13. 561- Initial Stock Update.

Transfer Posting to Stock Transfer:- MB1B

1. 311- For stock transfer from storage location to Storage location.

2. 312-Reversal of 311.

3. 301-Transfer from Plant to Plant


5. 309-Transfer from Material to Material.


7. 313-Removal of stock from one Storage Location.

8. 314- Reversal of 313.

9. 315- Placement of Stock in another Storage Location.

10. 316- Reversal of 315.


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5. FUTURE SCOPE

In SAP PP Planning is done through MRP or MPS, but there is a limitation in PP

that the planning is not done across supply chain i.e. vendor ,plants and customersso its advanced version is APO(Advanced Planning and Optimizing), in this

planning is done across the supply chain. In APO there are many planning tools

i.e.:-

DEMAND PLANNING:-It is based on historical data which is taken

from BW (Information warehouse).

GATP (Global Available to Promise):- IT is checking the

availability/feasibility to meet sales order quantity while creating sales order.

SNP (Supply Network Planning):- It is mid to long term planning across

the supply chain. It is finite planning.

PPDS (Production Planning and Detailed Scheduling):- This is the

detailed Production Planning with the location in shorter horizon.

TVPS (Transport Planning Vehicle Schedule):-IT means to select the

shortest path for transportation so that the transportation cost is reduced.

The limitations of the PP module are overcome by the advanced version APO.


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screens to develop and use are provided. The user can simply point

the cursor and click the mouse to operate

ID S International Demonstration and Education System. A sample

application provided for faster learning and implementation

IMG Implementation Guide Hierarchical structure reflecting the R/3

component hierarchy and contains all configuration activities

Industry

Sectors

When you create a material master record, you are required to classify

the material according to industry sector and material type. Industry

sectors have control functions in the R/3 System. For example, it is

factor determining the screen sequence and field selection in

material master record. Once you have assigned an industry sector o

material, you cannot change the industry sector again afterwards.

The standard R/3 System contains the following industry sectors. The

ID used to identify the industry sector internally appears in

parentheses.

Plant engineering and construction (A)

Chemical industry (C)

Mechanical engineering (M)

Pharmaceuticals (P)

Invoice: Invoice is a document, which is issued to a buyer (Company) from

the supplier (vendor) for the payment. The following information ismaintained in invoice

Invoice date, Posting date, Invoice ref number, tax amount, amount,

tax code, terms of payments, vendor address, banking accounting


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information etc

Lot size Quantity to be produced or to be procured.

DescriptionText of up to 40 characters that briefly describes a material. You mayhave only one description for each material, but it may exist in as

many different languages as you like.

Material group Grouping of materials and services according to their characteristics.

Material type Groups together materials with the same basic attributes, for

example, raw materials, semi finished products, or finished products.

When creating a material master record, you must assign the material

to a material type

ng

price

Price that changes in consequence of goods movements and the entry

of invoices, and which is used to valuate a material. The moving

average price is calculated by dividing the value of the material by

the quantity of material in stock. It is recalculated automatically by

the system after each goods movement or invoice entry.

nt

yp : -

- It is a three-digit code, which plays a role of important control

function in inventory management. It acts as a central role in

automatic account determination. It determines which stock account

or consumption account is updated in financial accounting.

R on . The person responsible for a group of materials within MRP in a

plant or company. Any material that takes part in material

requirements planning must be assigned to an MRP controller

MRP type Key that controls the MRP procedure (MRP or reorder point) to be

used for planning a material. It contains additional control


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parameters, for example, for using the forecast for the materials

planning, for firming procurement proposals and so on.

NumbRanges:

Number ranges are maintained for each & every document, Posted inthe SAP System. The maximum numbers of digit allowed are

18digits (99, 9999, 9999, 9999, and 9999).

Two types of number ranges: -

Internal number ranges - System will automatically define numbers

to all documents

External number ranges - User has to give doc number externally

while creating document

Opening period Number of workdays subtracted from the order start date ,to

determine the creation date

Price control Indicator determining the procedure used for material valuation.

Two procedures are available in the standard system:

Valuation at standard price

Valuation at moving average price or (if the material ledger

has been activated) periodic unit price

u nt

type

Classification determining whether a material is produced in-house,

procured externally, or both.

u has

requisition

Request or instruction to Purchasing to procure a certain quantity of a

material or a service so that it is available at a certain point in time.

u has ng

group

(MM) A Purchasing Group is a grouping of departments or areas that

purchase in R/3 used for assigning Purchase Requisition approval

rules. The Purchasing Group field is a required field on a Purchase


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Requisition and is assigned to each authorized R/3 user that is part of

that Purchasing Group. For example, several users from the same

department or area may use the same Purchasing Group.

u has ng

p u nt

time

Time that purchasing department requires to convert a purchase

requisition into a purchase order

u has ng

u k y

Key defining the valid reminder days and tolerance limits applicable

to this material for the purchasing department.

The purchasing value key serves as an entry aid.

R on on

account

G/L account, to which transactions in the subsidiary ledgers, (such as

in the customer, vendor or assets areas), are automatically updated. It

is generally the case that several sub ledger accounts post to a

common reconciliation account. This ensures that the s

n the sub ledger accounts are accurately reflected in the general

ledger (i.e. in line with balance sheet conventions).

Release period Number of workdays between the planned start date of the

production order and the date for releasing the order. If the order

release indicator is set, the production order is released by a

background program that takes all dates into account.

Reservation: - It stores requisition created from particular cost center to particular

department for issuing the material reservation posted in the system.

It leads to decrease in stock.

R/3 R/3 is an ERP system offered by the SAP company. The R/3 stands


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for real-time / three-tiered architecture, defined as follows:

The "R" in R/3 = real time. During real-time processing, data is

processed immediately, the moment the data is entered into the

system. This is different than a "batch mode", in which data is stored

and all transactions are processed together, at a later time.

The "3" in R/3 = A three-tier computer architecture comprised of

three operational layers as outlined below. The SAP R/3 system uses

a special type of client/server architecture consisting of three well-

defined and separate processes, each running on a different platform

S h du ng

Agreement

Outline agreement on the basis of which materials are procured at a

series of predefined points in time over a certain period.

Schema Group It allows to group together the purchasing organizations, which uses

the same calculation schema.

Schema Group

Vendor

The main function of it is to identify or to pick the right process and

conditions for a particular vendor

Sp

p u nt

type

An indicator in the material master record that defines external

procurement or in-house production of the material more precisely.

S k ans

(S ):

It is method of removal of material from one location and

transferring it to another location. This process is performed betweentwo plants and two storage locations.

Stock types The different stock types are

1. Unrestricted use stock

2. Quality inspection stock


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3. Blocked stock

4. Warehouse stock

ans os ng

(TP): -

- It is a general term of stock transfer that changes the stock type or

stock categories. The difference between transfer posting and stock

transfer is: -

TP is logical stock transfer and ST is a physical stock transfer.

VALUATION A THE VALUATION AREA SETTING IS USED TO CALCULATE TOTAL STOCK .

Valuation Class It is used to determine which stock account is updated during the

goods movement of a material. It is maintained in Accounting 1 view

in material master record

SAP TRANSACTIONS

For performing any kind of task in the SAP R/3 ERP system, a transaction is used.

SAP provides a standard set of transactions to manipulate i.e. insert, update, delete

and display data in the system. A transaction code is a four-character command that

tells the system location of a task. Each SAP screen has a unique transaction code. A

transaction code may contain only letters such as zstm or a combination of letters

and numbers such as me51. In SAP, you can use transaction codes as a shortcut or

alternative to using the navigation path to get to a system task.

Listed below are the commands used in combination with the transaction codes.

Command + Trans

Description

Code

/n + Transaction code End current system task and go to new system task

Create a new session and go to new system task without closing

/o + Transaction codeprior session

/o List open sessions

/i or /nend Log off


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BIBLIOGRAPHY

BOOKS:-

SAP PP ( FUNCTIONALITY AND TECHNICAL CONFIGURATION)

BY MARTIN

SAP ONLINE LIBRARY HELP

WEBLINKS:-

www.sap.com

www.sapinfo.com

www.sapzone.com

www.sap-img.com

www.sapgenei.com

www.help.sap.com
http://www.sap.com/http://www.sapinfo.com/http://www.sapzone.com/http://www.sap-img.com/http://www.sapgenei.com/http://www.help.sap.com/http://www.help.sap.com/http://www.help.sap.com/http://www.sapgenei.com/http://www.sap-img.com/http://www.sapzone.com/http://www.sapinfo.com/http://www.sap.com/


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Documents

Billing Project Report