External and Internal Subcotracting

EHP3 for SAP ERP 6.0

September 2008

English

Subcontracting (External and Internal) (918)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Subcontracting (918): BPD

Copyright

© Copyright 2008 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, System i, System i5, System p, System p5, System x, System z, System z9, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, POWER5+, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

© SAP AG Page 2 of 38


Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.



ContentsSubcontracting (918).....................................................................................................................6

Purpose......................................................................................................................................... 6

Prerequisites.................................................................................................................................. 6

Master Data and Organizational Data........................................................................................6

Roles.......................................................................................................................................... 7

Process Overview Table................................................................................................................8

Process Steps.............................................................................................................................. 11

Purpose.................................................................................................................................... 11

External Subcontracting...............................................................................................................11

Process Flow............................................................................................................................ 11

Creating a Purchase Order......................................................................................................12

Stock Transfer for Subcontractor Without Delivery..................................................................13

Stock Transfer for Subcontractor with Delivery........................................................................14

Processing Deliveries, Picking.................................................................................................15

Goods Receipt for Subcontract Order (Without WM)...............................................................17

Results Recording.................................................................................................................... 18

Record Usage Decision...........................................................................................................19

Invoice Verification................................................................................................................... 20

Create Purchase Order for Special Stock................................................................................21

Internal Subcontracting................................................................................................................23

Material Requirements Planning..............................................................................................24

Planned Independent Requirements........................................................................................25

MRP Run................................................................................................................................. 26

Sales............................................................................................................................................ 27

Sales Order Processing...........................................................................................................28

Posting Materials Provided.......................................................................................................29

Availability Check of Non Provided Materials...........................................................................31

Convert Planned Order into Process Order..............................................................................32

Release Process Order............................................................................................................33

Process Order Confirmation.....................................................................................................34

Shipping: Delivery.................................................................................................................... 35

Goods Issue for Delivery..........................................................................................................36

Billing....................................................................................................................................... 37



Subcontracting (918)

Purpose

In subcontracting processing, a vendor receives materials (components) and processes these materials. Finally, the semi-finished or finished materials are returned to the owner.

There are the following types of subcontracting:

External subcontracting

Internal subcontracting

Prerequisites

Master Data and Organizational DataDefault ValuesEssential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits the operational focus, for example, master data for materials, vendors, and customers.

The business process is enabled with this organization-specific master data. Examples are provided in the next section.

Additional Default ValuesYou can test the scenario with other SAP Best Practices default values that have the same characteristics.

Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master DataYou can also use customized values for any material or organizational data for which you have created master data. For more information about how to create master data, see the Master Data Procedures documentation.



Use the following master data in the process steps described in this document:


Master / Org. Data Value Master / Org. Data Details

Comments

Vendor S-9000 andS-1003

Purchasing org. 1000

Purchasing group 001

Company code 1000

Plant 1000

Material CH-6210

Material CH-3200 Component of CH-6210



Master / Org. Data Value Master / Org. Data Details

Comments

Vendor S-1005

Purchasing org. 1000

Company code 1000

Plant 1000

Material CH-6800



Sold-to party C-1000

Roles

UseThe following roles must have already been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). The roles in this business process documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

PrerequisitesThe business roles have been assigned to the user who is testing this scenario.

Business Role Technical Name Process Step Buyer SAP_BPR_PURCHASER-S Creating purchase order



Business Role Technical Name Process Step Warehouse clerk SAP_BPR_WAREHOUSESPECIALIST-

SStock transfer for subcontractor without delivery

Warehouse clerk SAP_BPR_WAREHOUSESPECIALIST-S

Stock transfer for subcontractor with delivery


Processing deliveries, picking


Goods receipt for subcontract order (without WM)

Quality specialist

SAP_BPR_QUALMGR-S Results recording ,Record usage decision

Accounts payable SAP_BPR_AP_CLERK-S1 Invoice verification

Buyer SAP_BPR_PURCHASER-S Create purchase order for special stock

Production planner SAP_BPR_PRODUCTIONPLANNER_EX-S Planned independent requirements

Production planner SAP_BPR_PRODUCTIONPLANNER_EX-S MRP run

Sales administration

SAP_BPR_SALESPERSON-SSales order processing

Warehouse clerk SAP_BPR_WAREHOUSESPECIALIST-S Posting materials provided

Production planner SAP_BPR_PRODUCTIONPLANNER_EX-S

Availability check of non provided materials

Production planner SAP_BPR_PRODUCTIONPLANNER_EX-S

Convert planned order into process order

Production planner SAP_BPR_PRODUCTIONPLANNER_EX-S Release process order

Shop floor specialist

SAP_BPR_SHOPFLOORSPECIALIST-S Process order confirmation

Warehouse clerk SAP_BPR_WAREHOUSESPECIALIST-S Shipping

Warehouse clerk SAP_BPR_WAREHOUSESPECIALIST-S Goods issue for delivery

Accounts receivable

SAP_BPR_SALESPERSON-S2Billing

Process Overview Table

External Subcontracting



Process Step External Process Reference

Business Condition

Business Role

Trans-action Code

Expected Results

Creating purchase order

- Subcontracting required

Buyer ME21N A purchase order is created.

Stock transfer for subcontractor without delivery

Purchase order

Warehouse clerk

ME2o Stock transfer posted

Stock transfer for subcontractor with delivery

- Purchase order

Warehouse clerk

ME2o Open delivery

Processing deliveries and picking

– Stock transfer Warehouse clerk

ME2o and VL03N

Materials posted to stock provided to the vendor

Goods receipt of subcontract order

– Goods delivered by subcontractor

Warehouse clerk

MIGO Goods receipt of the service

Result recording – Material is subject to quality management

Production worker

QE51N Result recording is carried out.

Record usage decision

- Quality specialist

QA11 Usage decision is made.

Invoice verification

- MIRO Invoice is accounted

Create purchase order special stock

- Subcontracting required

Buyer ME21N Purchase order is created. The delivery is sent directly to the subcontractor.

Internal Subcontracting


Business Condition

Business Role

Transaction Code

Expected Results

Sales order processing

Internal subcontracting is needed

Customer service

VA01 Created sales order

Posting materials provided by the customer

Goods required for further production

Warehouse clerk

MB1C Goods receipt posted and available for further processing production

Availability check Production planner

MD04 Availability of required




Business Condition

Business Role

Transaction Code

Expected Results

material is checked

Convert planned order into process order

Processing production

Production planner

MD04/COR7 Created process order and material reservations of the components

Release process order

Production planner

MD04/COR2 Released process order

Process order confirmation

Finished production

Shop floor Specialist

CORK Confirmed process order. Quantities are in sales order stock.

Delivery of finished goods

Goods have to be picked

Warehouse clerk

VL01N Delivery document created. Goods are picked.

Goods issue for delivery

Goods have to be issued

Warehouse clerk

VL02N

Creating a billing document

– Material shipped invoice required

Accounts receivable

VF01 Billing document created with status completed



Process Steps

PurposeIn subcontracting processing, the vendor receives materials (components). He uses these materials (components) to produce the end product.

There are different types of subcontracting, namely the following:



External SubcontractingThis section describes how to procure materials using a subcontract order. It describes how subcontract orders are processed in purchasing, inventory management, and invoice verification.

Process FlowIn subcontract order processing, the vendor receives materials (components) by the help of which he produces the end product. The following steps are involved:

1. You order the end product using a subcontract order. The components that the vendor needs to manufacture the end product are specified in the purchase order. The individual components are copied from an existing bill of material. This is known as BOM explosion.

2. In inventory management, the components are posted to the stock of material provided to the vendor. The components are then supplied to the vendor.

3. The vendor delivers the ordered material (the end product). The consumption of the components is posted.

4. If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed than planned in the purchase order, you must make an adjustment.

5. The vendor charges for the service. The invoice is posted in the invoice verification.



SAP AG 2006, SAP Best Practices


Vendor: S-1003

SAPChem AGPlant BP01

Vendor: S-9000(subcontractor)

Purchase order for components with delivery address to subcontractor

Invoice

Invoice

Delivery to subcontractor

Goods delivery

Delivery of components

Purchse order

CH-6210 (GranuSAP, 100 kg)

Creating a Purchase Order

PrerequisitesThe master data exists in the system (material master, BOM, vendor, info record for subcontracting).

Procedure1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP Menu Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known

Transaction Code ME21N

Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role

Business Role Buyer (SAP_BPR_PURCHASER-S)

Business Role Menu Purchasing Purchase Order Create Purchase Order

2. On the Create Purchase Order screen, make the following entries:

Field Name Description User Action and Values Comment

Order type BSART NB Standard PO




Vendor S-9000

Purchasing org.

1000

Purch. group 001

Company code

1000

Item category L (Subcontracting)

Material No. of material CH-6210

Quantity 1000

Plant 1000

Delivery Date Choose a date in the future. Important for the determination of components if you have a new bill of material

3. Choose Enter.

4. To check the components of the bill of material (BOM) make the following checks within the Create Purchase Order screen:


Item detail: Material data tab

Choose Components.

Component Overview

Components of the bill of material were taken over automatically.

CH-3200, CH-4120

CH-1100 is provided by a vendor. It is not displayed in the purchase order.

5. On the Processing Components: Component Overview screen, select a component. In the SAP Menu, choose Component List Component available.

6. On the Availability Check screen, select a material and choose Check availability (F7). The material has to be confirmed for the delivery date. If not, perform transaction MB1C with Movement Type 501 after saving the purchase order.

7. Go back to the Create Purchase Order screen and save your settings (Ctrl.+S).

ResultThe standard purchase order is created.

Stock Transfer for Subcontractor Without Delivery

PrerequisitesThe amount of the components in stock is sufficient.





SAP Menu Logistics Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor

Transaction Code ME20


Business role Warehouse Clerk (SAP_BPR_WAREHOUSESPECIALIST-S)

Business role menu Warehouse Management Shipping Monitoring Subcontracting Stock for Vendor

2. On the SC Stock Monitoring for Vendor screen, make the following entries:

Field Name Description User Action and Values

Comment

Vendor S-9000

Plant 1000

3. Choose Execute (F8).

4. In the following list, select the individual materials, and choose Post Goods Issue to create a stock transfer to the subcontractor.

5. The screen Post Goods Issue appears. Enter the storage location for each material once again. If the material is batch managed, enter the batch number as well. The appropriate quantity is suggested by the system. If necessary, enter the amount manually.


Comment

Storage location < storage location> CH-3200 -> 10Q4;

CH-4210 -> 10Q1

Batch < batch number >

6. Choose Enter.

ResultA stock transfer to the subcontractor is created and posted. Continue with the step Goods Receipt for Subcontract Order (without WM).

Stock Transfer for Subcontractor with Delivery



SAP Menu Logistics Materials Management Purchasing Purchase



Order Reporting SC Stocks per Vendor



Business Role Warehouse Clerk (SAP_BPR_WAREHOUSESPECIALIST-S)

Business Role Menu Warehouse Management Shipping Monitoring Subcontracting Stock for Vendor

2. Enter the required data in the SC Stock Monitoring for Vendor screen. Then select the following values:


Comment

Vendor S-9000

Plant 1000

3. Choose Execute.

4. In the following list, select the individual materials, and choose Create delivery (menu: Edit Create delivery) to create a delivery to the subcontractor.

5. The screen Create delivery appears. Enter the storage location for each material once again. If the material is batch managed, enter the batch number as well. The appropriate quantity is suggested by the system. If necessary, enter the amount manually.


Comment

Storage location < storage location > for the material

is determined automatically

Batch < batch number > for the material

is determined automatically

Amount if not filled in automatically

6. Choose Enter.

Since the subcontractor's material staging requirements are not entered as real requirements (in other words, they are not ATP relevant), automatic batch assignment is not possible. When the batches are assigned manually, care must, therefore, be taken to ensure that only unrestricted batches in the warehouse are selected.

ResultAn open delivery is created, which is picked in the following step, and delivered to the subcontractor. The Goods Issue for Delivery function is used to transfer the material to the stock provided to the subcontractor.

Processing Deliveries, Picking





SAP Menu Logistics Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor



Business role Warehouse Clerk (SAP_BPR_WAREHOUSESPECIALIST-S)

Business role menu Warehouse Management Shipping Monitoring Subcontracting Stock for Vendor

2. On the SC Stock Monitoring for Vendor screen, make the following entries:


Comment

Vendor S-9000

Plant 1000


4. Scroll up the delivery with open goods issues (line Deliveries with Open GI, pushbutton in the left margin) and select the appropriate delivery by double-clicking it. The Delivery for subcon. <8xxxxxxx> Display: Overview screen (transaction vl03n) is displayed.

5. Switch to the change mode by clicking the Display <> Change pushbutton or by using the following menu path: Outbound Delivery Display Change.

6. Enter the picking amount in the tab Picking.

7. To post the goods issue, choose Post goods issue. The material is posted to the stock provided to the subcontractor.

In the stock overview for the individual materials, you can check the individual postings (transaction mmbe, menu path: Logistics Material Management Inventory Management Environment Stock Stock Overview). The relevant deliveries are now displayed under Stock provided to vendor.

8. You can also check the status of the delivery by going back in the delivery:

SAP Menu Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Display

Transaction Code VL03N

9. Enter the following data:

Field Name Description User Action and Values Comments

Outbound delivery <Outbound delivery>

10. Choose Enter.

11. Go to the Status Overview view. The goods movement status has to be C for all delivered materials.



ResultThe individual materials are posted to the stock provided to the vendor.

In the following 10 days (planned delivery time according to the settings in the info record), filling is carried out by the subcontractor. When the filling process is complete, the finished product is returned; a goods receipt for the subcontract order is then posted.

Goods Receipt for Subcontract Order (Without WM)For the goods receipt with warehouse management, go to the chapter Goods Receipt (with WM, batch managed)



SAP Menu Logistics Material Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known

Transaction Code MIGO



Business Role Menu Warehouse Management Receiving Goods Receipt Purchase Order

2. Enter the required data on the Goods Receipt for Purchase Order: Initial Screen.

Field Name Description User Action and Values Comments

Movement Type ACTION A01 - Goods Receipt

Reference Document REFDOC R01 - Purchase Order

Purchase Order Number

<Purchase Order > created

Movement Type 101

3. Choose Enter.

4. Enter the batch number or let the system suggest a number and specify the date of production for the finished product in the batch view.

5. Specify the consumed quantities and the appropriate batch number, storage location, and production date for each material, which are contained in the vendor's delivery note. The batch number must correspond to the number of a batch from the stock provided to the subcontractor.

6. Complete the posting by saving your data.

7. Material document <5XXXXXXXXX> is posted.



ResultThe goods receipt of the service for purchase order is posted in the stock. At the same time, the consumed quantities of the stock provided to the subcontractor are posted to consumption.

Only the material from the purchase order, that is, CH-6210, has movement type 101.

You can also check the accounting documents that are automatically created in the background. Use transaction mb03 to check your material document and choose Accounting Documents.

Results Recording

Prerequisites The material CH-6210 is subject to QM.

Inspection type 05 is active in the material master.

An inspection plan assigned to the material is present.

Sample procedures (SP-02) for the inspection points have been assigned to the characteristics of the inspection plan.

A process order has been released.



SAP Menu Logistics Quality management Quality inspection Worklist Results recording

Transaction Code QE51N


Business Role Quality Specialist (SAP_BPR_QUALMGR-S)

Business Role Menu Quality Management Quality Inspection Result Recording Worklist

2. Enter data as required on the Results recording worklist screen on the Material tab page and choose Execute (F8).


Plant 1000

Insp. lot origin 01

Material CH-6210

Default next inspection point

Select this flag.


4. After the inspection lot selection, the inspection lots with the sample records are displayed on the left.



5. On the Record Results: Characteristic Overview screen the assigned master inspection characteristics for operation 0010 are displayed. Record results by entering the following data:


Result Choose the corresponding code for the evaluation using selection help (F4) or enter the numerical value according to the standard.

1 meets standard requirements.

6. Choose Save.

ResultThe results recording was carried out.

Record Usage Decision

UseAfter the results recording is ended, a usage decision can be made for the material.

PrerequisitesThe inspection results for the inspection lot are recorded, evaluated, closed, and saved. The usage decision is not yet made.

ProcedureYou can branch directly from results recording (see previous chapter using transaction qe51n) into the usage decision by double-clicking the top line of the inspection lot (in the left part of the screen) after the results are saved.

1. Access the transaction choosing one of the following navigation options:


SAP Menu Logistics Quality management Quality inspection Inspection lot Usage decision Record

Transaction Code QA11


Business Role Quality Specialist (SAP_BPR_QUALMGR-S)

Business Role Menu Quality Management Quality Inspection Record usage decision

2. Enter data as required on the screen Record usage decision: Initial screen:


Inspection lot Inspection lot number Enter the inspection lot number or find with F4.



3. On the next screen, enter the usage decision code:


UD-Code Name for usage decision (UD) code

A Enter A for acceptance

Batch Status Click the button. In the upcoming window, change the new batch status from restricted to unrestricted and choose Continue.

4. Save your entries (Ctrl. +S).

5. If the information message A pull derivation will be performed appears, choose Continue.

ResultThe usage decision is made.

Invoice Verification



SAP Menu Logistics Materials Management Logistics Invoice Verification Document Entry Enter Invoice

Transaction Code MIRO


Business Role Accounts Payable Accountant 1 (SAP_BPR_AP_CLERK-S1)

Business Role Menu Accounts Payable Invoices Enter Incoming Invoice w/ PO Reference

2. In the Enter Company Code dialog box, select company code 1000 and choose Continue.

The Enter Company Code screen may not appear if you have already executed this transaction. On the Enter Incoming Invoice: Company Code <Company Code> screen, you can change the company code by choosing Edit Switch company code (F7).

3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:


Invoice date <date> For example., today’s date

Purchase order <number of the purchase order>

Calculate tax Select the Calculate tax The field Tax amount is




field. automatically filled.

Amount Amount of purchase order

You can copy the amount from the Balance field.

4. Choose Enter.

5. To check the document, choose Simulate document (Ctrl.+Shift+F7).

6. On the Simulate Document in EUR (Document Currency) screen, you can check the accounting settings.

7. Choose Back and Post your document (Ctrl +.S).

If the accounting of the invoice is blocked by blocking reason ‘Date’, you can use transaction MRBR to release the blocked invoice.

ResultThe invoice is entered, simulated, and accounted.

Create Purchase Order for Special Stock

Procedure1. Access the transaction by choosing one of the following navigation options:


SAP Menu Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known

Transaction Code ME21N


Business Role Buyer (SAP_BPR_PURCHASER-S)

Business Role Menu Purchasing Purchase Order Create Purchase Order

2. On the Create Purchase Order screen, make the following entries:


Order type BSART NB Standard PO

Vendor S-1003 For purchasing org. 1000

Purchasing org. Org. data tab 1000 Purchasing org. 1000

Purchasing group 001 Purch. group 1

Company code 1000 Company Code 1000

Expand Item overview Choose If the item overview window is not visible

Material CH-4120




Order quantity Any

Delivery date Any, in future

Net price Enter a Net price

Currency EUR

Plant 1000 Production plant 1000

Storage location 10Q1 Std. Warehouse

3. Choose Enter. Since a rounding value of 500 is defined for material CH-4120 in master data (view tab MRP 1), the following message might appear: Order quantity violates rounding rules. This depends on the amounts in the purchase order.

4. Choose the Material data tab page in the Item detail area. Switch to another Details window.

5. Choose the Delivery Address on the Item detail area (Vendor: S-9000 Flag SC Ven.: X).

6. Choose Enter. The vendor address from vendor S-9000 has been copied. The vendor address is automatically copied from the master data. Due to the flag, the GR-posting gets in the special stock (subcontracting stock).

7. Choose Enter. Confirm each message.

8. Choose Save (Ctrl. + S).

ResultThe system creates the purchase order. The delivery goes directly to the subcontractor. The subcontractor informs the purchasing organization 1000 when the goods are delivered.

The GR is posted directly in the special stock of the subcontractor (by the purchasing organization 1000).



Internal Subcontracting

Overview

SAP AG 2006, SAP Best Practices


Filling

Canister, 5 kgVERP

CH-4200

PowerPaint, redFERT

CH-6800

Material providedMaterial provided

Paint, redYQNM

CH-0500 Plant BP01

DescriptionMat. type

Mat Nr

WM managed

QM active batch managed

CH-6800 (PowerPaint, red)

Process FlowThe process flow in the Internal subcontracting scenario covers the following areas:

Sales (sales order processing)

Goods receipt of the parts provided (with previous contract and purchase order for the parts)

Production (creating and confirming process orders)

Delivery and goods issue

Billing (invoice creation)

When a sales order is entered, a planned order is automatically created as well. Availability check and pricing are carried out using the prices and conditions stored.

ResultAt the end of the scenario the following documents are available with the status completed:

Sales order



Process order

Delivery

Transfer order

Goods issue

Billing document

Follow-on documents are also generated for the areas:

Financial accounting (not cleared)

Profitability analysis

Cost center accounting

Material Requirements PlanningThe material requirements planning scenario is used to create a one-year planning basis for a material. On the basis of planned independent requirements and depending on warehouse stocks, planned orders (for production) or purchase requisitions (for purchasing) are created across all BOM levels.

PrerequisitesTo carry out the planning run, planned independent quantities must exist, and a strategy group must be assigned to the materials.

Material Material text Plant Strategy Useful monthly quantity

MRP controller

CH-6800 PowerPaint, red, 5 kg 1000 YL 500 kg YQ2

Process FlowMaterial requirements planning is carried out in two steps:

1. Create planned independent requirements.

2. Carry out planning run.

Material requirements planning is controlled by means of the planning strategies. For PowerPaint, red, the following planning strategy is used.

Planning Strategy YLIn this strategy, a fixed planned order is created when a customer order is entered. This is called assembly processing. This ensures that an availability check is triggered directly from the sales order.

Planned independent requirements are entered at the level of the finished product (CH-6800 PowerPaint, red, 5 kg) in this strategy. By means of these planned independent requirements, special planned orders are created that only affect production (in other words, are converted into a process order) when the sales order for the finished product CH-6800 appears.



The sales orders for this strategy are entered as individual customer requirements and managed as an individual segment in material requirements planning.

As soon as the customer order appears, the planned independent requirement is calculated at the level of the sales order (CH-6800). If the planned independent requirement is not completely exhausted by the sales order, it is preserved in the remaining quantity. If the sales order exceeds the planned independent quantity, the planned order quantity is increased.

ResultMaterial requirements planning allows to plan all requirements for the packaging material (CH-4200).

Planned Independent RequirementsPlanned independent requirements serve as preliminary planning for all BOM levels. They display the expected quantities from sales orders.

PrerequisitesTo create planned independent requirements, a strategy group must be assigned to the materials. The strategy for this material should be YL. Therefore, check the Material Master.



SAP Menu Logistics Materials Management Material Master Material Display

Transaction Code MM03


Business Role Production Planner (SAP_BPR_PRODUCTIONPLANNER_EX-S)

Business Role Menu Production Planning Display Master Data Display Material

2. Enter the required data on screen Display Material (Initial Screen):


Material number CH-6800

3. Choose Organizational levels.

4. Select view MRP3 and choose Enter.

5. Enter the following data:


Plant 1000

6. Choose Enter. As a result, YL (Subcontracting) appears in the strategy group field.





SAP Menu Logistics Production – Process Production Planning Demand Management Planned Independent Requirements Create

Transaction Code MD61



Business Role Menu Production Planning Demand Management Create Planned Indep. Requirements

2. On the Planned independent requirements screen, enter the following data:


Material number CH-6800

Plant 1000 Production plant

Version 00 Requirements plan

Planning horizon from actual date

Planning horizon to + 1 year

Planning period M Month

3. Choose Enter.

4. On the Plnd. Ind. Rqmts Create: Planning Table screen make the following entries:


Planned quantity < monthly quantities > For example, between 200 kg and 1000 kg

5. Choose Save.

ResultPreliminary planning requirements for one year were created for the finished good PowerPaint, red, CH-6800. The planning requirements are split into months.

MRP RunThe MRP run is performed daily. The run compiles the requirements from the independent planned requirements, the individual sales requirements, already existing planned orders, and available stock.

The planning is performed on the finished product. All BOM items of the materials are planned.

PrerequisitesRequirement changes are made (sales order, independent planned requirements); the MRP type PD must be entered in the material master. This can be checked in view MPR1 of the material master (as described in Planned Independent Requirements – Prerequisites).



Procedure1. Access the transaction using one of the following navigation options:


SAP menu Logistics Production – Process MRP Planning Single-Item, Multi-Level Planning

Transaction code MD02


Business role Production Planner (SAP_BPR_PRODUCTIONPLANNER_EX-S)

Business role menu Production Planning MRP Single-Item;Multi-Level

2. On the Materials Requirements planning screen, enter the following data:


Comment

Material CH-6800 PH-6504

Plant 1000

Processing key NETCH Net change for total horizon

Create pur. req 2 Purchase requisitions in opening period

Schedule lines 3 schedule lines

Create MRP list 1 MRP list

Planning mode 2 Re-explode BOM and routing

Scheduling 2 Lead time scheduling and capacity planning

Also plan unchanged components

X Check

3. Choose Settings Save from the menu (only necessary at the first time).

4. Choose Enter (three times). Confirm all appearing messages.

ResultAll materials depending on material CH-6800 PowerPaint red are planned exploding the BOM. The result of the MRP-run is shown in the stock/requirements list (Transaction MD04.

SalesThis scenario describes the subcontracting of a product, for example, the filling of red paint (product PowerPaint, red). The subcontractor receives the red paint (Paint, red; CH-0500) as bulk, fills it into canister CH-4200 (process order ), and sends the finished product (PowerPaint, red; CH-6800) back to the customer.

The subcontractor is responsible for purchasing the material CH-4200 (Canister).



Note that quality control is not included in this value chain for the product PowerPaint, red. The finished product (PowerPaint, red; CH-6800) is inspected by the customer on delivery.

To map the process flow for internal subcontracting, the corresponding master data (for example, articles, prices, conditions, customers, batches, master recipes) must be maintained in the system.

The strategy group YL must be maintained in the material master for material CH-6800 (PowerPaint, red).

Sales Order Processing

UseWhen a sales order is created, no availability check is performed for the material CH-6800 because there is no plant stock for the customer material (make to order). Therefore, the availability check has to be made in a later step of the procedure.

The pricing data is determined using the standard pricing procedure RVAA01.

Procedure1. Access the transaction using one of the following navigation options:


SAP Menu Logistics Sales and Distribution Sales Order Create

Transaction Code VA01


Business Role Sales Administration (SAP_BPR_SALESPERSON-S)

Business Role Menu Sales Sales Orders Create Sales Order

2. Enter the required data on the Create Sales Order screen:


Order type YQOR Standard order

Sales organization 1000

Distribution channel 10 Direct Sales

Division 10

3. Choose Enter.

4. Enter the required data on the Create Standard Order screen:


Sold-to party C-1000 Customer number

PO Number Order number For example, internal subcontracting

Requested delivery date

Date For example, today plus one week

Material CH-6800 PowerPaint, red




(Subcontracting mat.)

Order quantity 20 For example, between 1 and 50 drums

5. Choose Enter.

6. If a request on availability check comes up, choose Back (F3) and then Continue and save (Ctrl.+S) your entries. Note the number of the created sales order appearing in the status row since you need it in the following process steps.

ResultA complete sales order is created in the system. Additionally, a planned order with secondary demands for the components is created. There is no availability check at this point because the provided materials are not yet posted to stock.

Posting Materials Provided

PurposeThe components CH-0500 needed for processing are provided by customer C-1000. To complete the sales order, the materials provided must be posted.

PrerequisitesTo map the goods receipt of the parts provided in internal subcontracting, the sales order must already exist in the system.



SAP Menu Logistics Materials Management Inventory Management Goods Movement Goods Receipt Other

Transaction code MB1C



Business Role Menu Warehouse Management Consumption and Transfers Other Goods Receive

2. Enter the following data on the Enter Other Goods Receipts: Initial Screen.


Comment

Movement type 501 E Receipt w/o purchase order into unrestr. sales order stock

Special stock E is set automatically




Comment

Plant 1000 Production plant

Storage location 10Q4 Production

3. Choose Enter.

4. Enter the required data on the Enter Other Goods Receipts: New Items screen.


Comment

Sales Order <customer order number>

Position 10

Material CH-0500

Quantity <raw material Quantity for the sales order>

Note that the required quantity of the raw material depends on the quantity in each package.

That means, if the finished good is sold in 5 l buckets, then the raw material for 5 buckets sold is 5 times the bucket plus 5 l of content for each bucket. This means 5 buckets plus 25 l of content. So the 25 l need to be booked in the sales order stock.

5. Choose Enter.

Batch number assignment for the batch managed components to be provided can take place automatically when the goods are received (internal number allocation). All provided materials are batch managed.

6. If a warning message appears, confirm with Yes and make the entries as required by the system message in the Enter Other Goods Receipts: New Item 000x screen. If a warning message appears, confirm again with Enter.


Comment

Prod.Dt/Exp.Dt Production date <Current date>

7. Choose Enter.

8. If you are not yet on screen Enter Other Goods Receipt: Collective Processing, choose Overview.

9. You have called up the Enter Other Goods Receipts: Collective Processing screen. Check once again the quantities of the materials you have entered.

10. Post the goods receipt by choosing Post (Ctrl.+S).



ResultThe goods receipt document has been posted. The material is now available for further processing in production.

Availability Check of Non Provided MaterialsYou have to check first, whether all components of the planned order are available. The materials provided were already posted to stock as described above, so they are available.

The material that is not provided (Canister CH-4200) is checked for availability via the planned order. The component is checked on plant stock level. If there is no available stock, the purchase processing must be triggered.

To check the availability of material CH-4200 on plant level instead of individual customer stock the field Explosion Type must set to YQ Collective requirements only in BOM of the master recipe.

Alternatively (for demonstration purposes), the material can be posted to stock without purchase order as described above for the provided material. However, it cannot be posted into the customer sales order stock.

PrerequisitesA planned order must have already been created. Since you already carried out an availability check for this planned order, this order does exist.

ProcedureRun the Multilevel, Singel-Item (MD02) transaction to receive planned order again.



SAP Menu Logistics Material Management Inventory Management Environment Stock Stock/Reqmts List




Business role menu Production Planning MRP Stock/Requirement List – Individual Display

2. Enter the following data on the Stock/Reqmts List/Initial Screen:


Comment

Material CH-6800

Plant 1000

3. Choose Enter.


http://dict.leo.org/?p=2Ib6..&search=stock

http://dict.leo.org/?p=2Ib6..&search=customer

http://dict.leo.org/?p=2Ib6..&search=individual


4. Search for and enter the planned order number you created with your sales order on the Stock/Requirements List as of XX:XX screen (column MRP element). Position the cursor on the corresponding line and double-click the item. Choose Change element (F8).

5. On the Change planned order: individual customer order screen, choose Check Component Availability (Shift + F7).

Components marked green means: Available, everything ok Components marked yellow means: Missing part. For materials provided a goods receipt has

to be posted (as described above), for non provided materials the purchase processing must be triggered. A purchase requisition might be generated for the missing part (refer also to Business Process Documentation Procurement of batch managed stock materials).

Components marked red means: Availability check has produced errors, check logs. After purchasing you might run the multilevel, Single-item (MD02) transaction again.

Availability check for the non-provided component (CH-4200) is performed on plant stock level. To avoid requirements on individual customer stock level for this component, the flag Explosion Type in the BOM item of the header material CH-6800 is set to YQ (collective requirements only).

ResultsAll components are available (or purchase processing was triggered).

Convert Planned Order into Process OrderDuring process planning, the plan orders are converted to process orders, whereby the basic dates and quantities are copied and used as a basis to determine concrete production dates. Dates and quantities can also be adapted manually.

You can also create process orders manually (transaction COR1). Refer to the corresponding chapters in the Business Process Documentation.

PrerequisitesA planned order must be created via the corresponding sales order.



SAP Menu Logistics Material Management Inventory Management Environment Stock Stock/Reqmts List




Business Role Menu Production Planning MRP Stock/Requirement List – Individual Display

2. Enter the required data on the Stock/Reqmts List/Initial Screen.





Plant 1000

3. Choose Enter.

4. Select the planned order number you created with your sales order on the Stock/Requirements as of XX:XX screen. Position the cursor on the corresponding line and double-click the item.

5. Choose Convert planned order to process order (Button: Proc. Ord).

6. The screen Create Process order: Header – General Data (transaction cor7) comes up.

7. Check the entries of the process order:


Total qty General data area

Sales order Sales order area Sales order number you created

8. Approve the process order by choosing Process Order Functions Approval Individual approval from the menu.Ignore the information message in the status row Error or warning occurred during master data transfer (see log). It refers to the information messages about the receipt not being subject to approval that appears before. To check this, you can look up the log file choosing menu path Goto Logs On master data reading and click the button beside Error Messages.

9. Save (Ctrl.+S) the process order and leave the process order. You are again on the Stock /Requirement List: Initial Screen.

ResultWhen the process order is created, material reservations for the components are created.

You can check the process order number Stock/Requirements list (transaction md04). Choose Refresh (F6) to update the actual view. You can see that the planned order is converted in a process order (MRP element: PrcOrd). You can see the process order number in the column MRP element data.

Release Process OrderTo start production it is necessary to release the process order.

PrerequisitesA process order must be created and all materials must be available.



SAP menu Logistics Material Management Inventory Management



Environment Stock Stock/Reqmts List

Transaction code MD04



Business role menu Production Planning MRP Stock/Requirement List – Individual Display

2. Enter the required data on the Stock/Reqmts List/Initial Screen:



Plant 1000 Berlin

3. Choose Enter.

4. Enter the process order number you created from your planned order on the Stock/Requirements as of XX:XX screen. Position the cursor on the corresponding line and double-click the item.

5. Choose Change element (F8)

6. The Change Process order: Header – General Data screen comes up (transaction cor2). Choose Go to from the menu bar and choose Material list. Enter the batch number of material number CH-0500.

7. Choose Release (Ctrl.+ F6).

8. Choose Save (Ctrl.+S).

ResultThe availability of the materials is checked again. If parts are missing you get a screen on which you can select an overview of the missing parts. As you have processed the goods receipt for the material for the customer order the materials are available. The process order is released.

Process Order ConfirmationAfter a process order has been released for production and the production already is finished, you must confirm your produced order.

PrerequisitesA process order has been created and released.



SAP Menu Logistics Production Process Process Orders Confirmation Enter for Order

Transaction Code CORK




Business role Shop Floor Specialist (SAP_BPR_SHOPFLOORSPECIALIST-S)

Business role menu Shop Floor Process Process Order Confirmation

2. On the Create Process Order Confirmation: Initial screen, make the following entries:


Process order

Number of your process order

3. Choose Enter.

4. On the Create Process Order Confirmation: Actual data screen, make the following entries:


Goods movement icon

N/A Choose Goods Movement. The screen Shelf Life / Expiry Date comes up

Expiry Date/Manu. date

Enter the appropriate date and confirm


ResultThe process order is confirmed. Based on the customizing, all reservations are cleared, the goods receipt and the actual costs will be booked automatically. In the stock/ requirements list, the process order has disappeared and the quantity is in the sales order stock.

Shipping: Delivery

In this process step, WM is not involved because the material is not WM managed.

Automatic batch determination is carried out.

PrerequisitesA complete sales order must be available before a delivery document can be created. Materials (and batches) must be available in the storage location.

The batch status of the materials might be set to unrestricted in the batch management.



SAP Menu Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With Reference to Sales Order

alternatively:



Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Create Single Document With Reference to Sales Order




Business Role Menu Warehouse Management Shipping Create Outbound Dlv. With Order Ref.

2. Enter the required data on the Create Outbound Delivery with Order Reference screen.


Comment

Shipping point 1000 Shipping point 1000

Selection date Selection date for the delivery

< date > Actual date + one month

Order < order number >

3. Choose Enter.

4. On the Create Outbound Delivery: Overview screen, select the Picking tab page and enter the required data (order quantity). In case of batch material choose Batch structure of the delivery item.


Comment

Batch Split Indicator

Click on Button Only for batch materials. The button expands a line item containing the batch number appears

Picking Quantity < quantity > Enter picking quantity in the line item containing the batch number

5. To hide the item containing the batch number, choose the button with the minus-sign.

.

6. Choose Save (Ctrl + S).

ResultThe system contains a complete delivery document. The goods are fully picked.

Goods Issue for DeliveryAfter the goods have been picked via a transfer order, the goods issue for the delivery is posted.



PrerequisitesThe process order has been processed and confirmed, PowerPaint, red (CH-6800) is available on stock.



SAP Menu Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document

alternatively:

Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Change Single Document




Business Role Menu Warehouse Management Shipping Change Outbound Delivery

2. Enter the required data on the Create Outbound Delivery with Order Reference screen.


Comment

Order Number of sales order

<Order number>

3. Choose Post goods issue.

ResultThe goods are fully picked. The goods issue for the delivery has been posted.

BillingOnce the goods issue has been posted, the delivery can be invoiced. The pricing data is transferred from the order. Only the taxes are redetermined when the billing document is created.



PrerequisitesA delivery with goods issue posting is required for billing.



SAP Menu Logistics Sales and Distribution Billing Billing document Create

alternatively:

Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Billing Billing document Create

Transaction Code VF01


Business Role Sales Billing (SAP_BPR_SALESPERSON-S2)

Business Role Menu Sales Billing Create Billing Document

2. Enter the required data on the Create Billing Document screen:




Document Number of delivery <Delivery number>



If the message Check Log! is displayed, choose Edit Log from the menu to check the log. The log contains the message that item 10 from the delivery is not relevant for billing. Only the item containing the batch number and picked quantity is relevant for billing.

ResultA billing document has been generated. The document has the status completed.

The corresponding documents were generated for financial accounting, profitability analysis, and cost center accounting.

The accounting document has not been cleared. The document can be cleared by entering an incoming payment, for example (transaction code f-28).
