SAP Best Practices for Subsidiary Integration in One ... · PDF fileSAP Best Practices for Subsidiary Integration in One Client Production with Intercompany Replenishment ... (Variant

SAP Best Practices for Subsidiary Integration in One Client

Production with Intercompany Replenishment

SAP Best Practices

© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose

This scenario covers collaboration within a corporate group where the headquarters and

the subsidiaries act as an occasional supplier between each other.

Requesting Plant looks for a temporary source of supply due to Material shortage (any

material type) or lack of production capacity (finished or semi-finished product).

Buyer from the requesting Plant manually requests a material transfer from another Plant.

Each Plant belongs to different organization and different company code.

Benefits

Automation of the collaboration between headquarters and its subsidiaries

Transactional focus, providing fully integrated business processes

Based on existing well-tried Best Practice Scenarios

Transparent view of outstanding stock transfers, stock-in-transit

Efficient Processing of intercompany stock transfers

Sales order BOM processing and Order Change Management integrated in intercompany

processing.


Scenario Overview

Flow and key points

Process flows covered

Stock overview between Plants

Planning overview between Plants

Capacity analysis

Purchase order (manually)

Production Data changes

Costing run

BOM compare

Order BOM Management

Order Change Management (OCM)

Key Points

Integrated collaboration between headquarters and associated subsidiaries

Rapid ROI by reusing existing data exchange capabilities

Built upon established SAP Best Practices Baseline package scenarios


Required SAP Applications and Company Roles

Required SAP Applications

Headquarter with SAP ECC 6.0 EHP5 with related country BAiO Baseline Solution V1.605

installed

Purchase Organization (Subsidiary 1 and 2) with the solution SAP BAiO for Subsidiary

Integration V1.605 installed with related country Baseline Solution V1.605 variant files on

the same SAP ECC 6.0 EHP5 instance and client as the headquarter

Company roles involved in the process flows

Purchaser

Production Planner

Warehouse Clerk

Warehouse Manager

Billing Administrator

Accounts Payable Accountant

Engineering Specialist

Sales Department

Enterprise Controller


Business Process: Production with Intercompany

Replenishment (Variant 1)


Stock Availability Process:

1. Requesting Plant checks Delivering Plant stock availability

2. Requesting Plant creates and prints intercompany purchase order

3. Delivering Plant creates cross company delivery

a. Delivering Plant posts the Goods Issue (GI) and prints delivery note

b. Requesting Plant posts the Goods Receipt (GR)

4. Delivering Plant creates the intercompany billing

5. Requesting Plant processes the intercompany payment

Delivering Plant

(Headquarter or

Subsidiary)

Requesting Plant

(Headquarter or

Subsidiary)

1 Stock availability check

5 Intercompany Payment

Billing 4

2 Intercompany Purchase Order

3a Delivery process GI GR

3b

/ /





Capacity analysis and manufacturing Process:

1. Requesting Plant asks Delivering Plant Capacity Analysis

a. Delivering Plant confirms available Capacity

2. Requesting Plant creates and prints intercompany purchase order

3. Delivering Plant creates and confirms production order

4. Delivering Plant creates cross company delivery

a. Delivering Plant posts the Goods Issue (GI) and prints delivery note




Delivering Plant

(Headquarter or

Subsidiary)

Requesting Plant

(Headquarter or

Subsidiary)

1 Capacity check


Billing 5



4b

/ /

Available Capacity 1a

3 Production order

and confirmation





Manufacturing Process with Production Data Changes:

1. Delivering Plant changes Production Data

2. Costing Run and dispatched information by the Headquarter to Subsidiaries

3. BOM Comparison and Costing Comparison in the Requesting Plant

4. Requesting Plant asks Delivering Plant Capacity Analysis

a. Delivering Plant confirms available Capacity

5. Requesting Plant creates and prints an intercompany purchase order

6. Delivering Plant creates and confirms the production order

7. a. Delivering Plant creates cross company delivery and posts the Goods Issue (GI)




Requesting Plant

(Headquarter or

Subsidiary)

/

Change

Production Data

Delivering Plant

(Headquarter or

Subsidiary)

4 Capacity check


Billing 8



7b

/

Available Capacity

Production order

and confirmation

1

6

2 Costing Run +

information spread

4a

3 BOM and Costing Comparison



Replenishment (Variant 4 – Step 1)


Manufacturing Process with Order Change Management:

1. Customer Request for Quotation to the Requesting Plant (not demonstrated in this scenario)

2. Quotation Generation and acceptance (not demonstrated in this scenario)

3. Sales Order Generation in the Delivering Plant

4. Delivering Plant creates and releases Production Order

5. Requesting Plant changes the initial Sales Order

6. Delivering Plant changes the Production Order using Order Change Management

7. a. Delivering Plant produces, confirms production, post Goods Issue for the components and posts Goods Receipt for the produced material

b. Delivering Plant creates delivery to Customer and posts the Goods Issue (GI)

8. Requesting Plant creates the Customer billing

9. Customer processes the payment



11

Intercompany Payment

Intercompany Billing 10

4 Sales Order Change


7b

Requesting Plant

(Headquarter or

Subsidiary)

/

Delivering Plant

(Headquarter or

Subsidiary)

/

Customer

1

Request for

Quotation

Sales Order 2 Order Change

Management

Production

Order 3

5

Change

Production

Order and

Production

Order

Confirmation

6

8

9



Replenishment (Variant 4 – Step 2)


Manufacturing Process with Order Change Management:

1. Customer Request for Quotation to the Requesting Plant (not covered in this scenario)

2. Quotation Generation and acceptance (not covered in this scenario)

3. Sales Order Generation in the Delivering Plant

4. Order BOM Generation in the Delivering Plant

5. Delivering Plant creates and releases Production Order

6. Delivering Plant changes the Order BOM and the Production Order using Order Change Management

7. Delivering Plant produces, confirms production, post Goods Issue for the components and posts Goods Receipt for the produced material

8. Delivering Plant creates delivery to Customer and posts the Goods Issue (GI)

9. Requesting Plant creates the Customer billing

10. Customer processes the payment



12


8b

Requesting Plant

(Headquarter or

Subsidiary)

/

Delivering Plant

(Headquarter or

Subsidiary)

/

Customer

1

Request for

Quotation

Sales Order 2

3

Order BOM

Management

Order Change

Management

Production

Order 4

5

Change

Order BOM

6

Change

Production

Order and

Production

Order

Confirmation

7

9

10


Intercompany Billing 11


Process Description in Detail:

Check Material stock

availability

Create/Print/Send

Intercompany Purchase

Order

Post the Goods Receipt

Verify invoice

Process outgoing

payment

Requesting

Plant

Material stock available for

manufactured product

Create Delivery

Pick Material on stock

Post the Goods Issue and

print delivery note

Create/Send/Print Billing

Document

Pro

du

ctio

n w

ith

In

te

rc

om

pa

ny

Re

ple

nish

me

nt -

Sto

ck

A

va

ila

bility P

ro

ce

ss

Business Process in Detail: Production with

Intercompany Replenishment (Variant 1)

/ /

Delivering

Plant



Request Capacity Check

Create/Print/Send


Order


Verify invoice

Process outgoing

payment

Requesting

Plant

Check potential Capacity

Release Manufacturing

Process

Confirm Manufacturing

Process

Post Manufacturing Goods

Receipt

Post Components

Consumption Goods Issue

Create Delivery

Pick Material from stock


print delivery note


Document

Pro

du

ctio

n w

ith

In

te

rc

om

pa

ny

Re

ple

nish

me

nt -

Ma

nu

fa

ctu

rin

g P

ro

ce

ss



/ /

Delivering

Plant



BOM and Costing

Comparison

Request Capacity Check

Create/Print/Send


Order


Verify invoice

Process outgoing

payment

Requesting

Plant

Change Production Data

Costing Run + information

spread

Check potential Capacity


Process


Process


Receipt

Post Components


Create Delivery



print delivery note


Document

Pro

du

ctio

n w

ith

In

te

rc

om

pa

ny

Re

ple

nish

me

nt -

Ma

nu

fa

ctu

rin

g P

ro

ce

ss w

ith

Pro

du

ctio

n D

ata

C

ha

ng

es



/ /

Delivering

Plant



Quotation

Sales Order Creation

Sales Order Change


Document

Verify invoice

Process outgoing

payment

Requesting

Plant


Process

Setting Order Change

Management

Change Production Order


Receipt, Confirm

Manufacturing Process

Post Components


Create Delivery



print delivery note


Document

Pro

du

ctio

n w

ith

In

te

rc

om

pa

ny

Re

ple

nish

me

nt -

Ma

nu

fa

ctu

rin

g P

ro

ce

ss w

ith

Ord

er C

ha

nge

M

an

ag

em

en

t

with

ou

t O

rd

er B

OM


Intercompany Replenishment (Variant 4 - Step1)

/ /

Delivering

Plant

Request for Quotation

Requirements Change


Verify invoice

Process outgoing

payment

Customer



Quotation

Sales Order Creation


Document

Verify invoice

Process outgoing

payment

Requesting

Plant

Order BOM Management


Process

Change Order BOM

Setting Order Change

Management



Receipt, Confirm


Post Components


Create Delivery



print delivery note


Document


Intercompany Replenishment (Variant 4 - Step2)

/ /

Delivering

Plant



Verify invoice

Process outgoing

payment

Customer

Pro

du

ctio

n w

ith

In

te

rc

om

pa

ny

Re

ple

nish

me

nt -

Ma

nu

fa

ctu

rin

g P

ro

ce

ss w

ith

Ord

er C

ha

nge

M

an

ag

em

en

t

with

O

rd

er B

OM


Process Flow Diagram Production with Intercompany Replenishment

Stock Availability Process

Pu

rch

aser

Req

uesti

ng

P

lan

t

Ware

ho

use

Cle

rk

Deliv

eri

ng

P

lan

t

Create/Print/Send Intercompany

Purchase Order

Requesting Plant

Receives Purchase

Order

Pick Material

from Stock

Ship Material to

Requesting Plant

Requesting Delivering

Plant Invoice

Missing Parts in Requesting

Plant Manufacturing

Ac

co

un

ts

Pa

ya

ble

A

cc

ou

nta

nt

Ev

en

t

Invoice Receipt and Payment

Sales from local stock

(B22)

Informs the Warehouse

Manager

Pro

du

cti

on

Su

perv

iso

r R

eq

uesti

ng

P

lan

t

Check Stock availability in

Delivering Plant

Ware

ho

use

Cle

rk

Req

uesti

ng

P

lan

t

Ware

ho

use

Man

ag

er

Deliv

eri

ng

P

lan

t

Create Delivery Note from

Intercompany PO

Goods Receipt and Stock Material


Clerk




Pu

rch

aser

Req

uesti

ng

P

lan

t

Ware

ho

use

Cle

rk

Deliv

eri

ng

P

lan

t


Purchase Order

Requesting Plant

Receives Purchase

Order

Pick Material

from Stock

Ship Material to

Requesting Plant


Plant Invoice

Missing Parts or lack of Production

in Requesting Plant Manufacturing

Ac

co

un

ts

Pa

ya

ble

A

cc

ou

nta

nt

Ev

en

t



(B22)

Informs the Production Supervisor

Pro

du

cti

on

Su

perv

iso

r D

eliv

eri

ng

P

lan

t

Check Potential Capacity in

Delivering Plant

Ware

ho

use

Cle

rk

Req

uesti

ng

P

lan

t

Ware

ho

use

Man

ag

er

Deliv

eri

ng

P

lan

t


Intercompany PO



Manager


Process in Delivering Plant


Clerk


Process + Goods Receipt



Manufacturing Process with Production Data Change

En

terp

rise

Co

ntr

oller

Deliv

eri

ng

P

lan

t

Costing Run

Enterprise Controller

Information

New Product Introduction

Ev

en

t

En

gin

eeri

ng

S

pecia

list

Deliv

eri

ng

P

lan

t

Change Production Data

Headquarter Information

Asynchronous Flow Prerequisite

Head

qu

art

er

New Validated Manufacturing

Reference



Manufacturing Process with Production Data Change

Pu

rch

aser

Req

uesti

ng

P

lan

t

Ware

ho

use

Cle

rk

Deliv

eri

ng

P

lan

t


Purchase Order

Requesting Plant Receives Purchase Order

Pick Material

from Stock

Ship Material to

Requesting Plant


Plant Invoice

Missing Parts or lack of Production

in Requesting Plant Manufacturing

Ac

co

un

ts

Pa

ya

ble

A

cc

ou

nta

nt

Ev

en

t



(B22)

Informs the Production Supervisor

Pro

du

cti

on

Su

perv

iso

r D

eliv

eri

ng

P

lan

t

Check Potential Capacity in

Delivering Plant

Ware

ho

use

Cle

rk

Req

uesti

ng

P

lan

t

Ware

ho

use

Man

ag

er

Deliv

eri

ng

P

lan

t


Intercompany PO



Manager




Clerk





Manufacturing Process with Order Change Management without Order BOM

Cu

sto

mer

Requesting Plant

Receives Request for Quotation E

ven

t Informs the Production Supervisor

Pro

du

cti

on

Su

perv

iso

r D

eliv

eri

ng

P

lan

t

Informs the Warehouse Department



Sale

s

Dep

art

men

t


After Approval Sales Order

Creation

En

gin

eeri

ng

S

pecia

list

Deliv

eri

ng

P

lan

t

Sales Order Change

Set Order Change Management


Customer Request for

Change



Manufacturing Flow with OCM …



Manufacturing Process with Order Change Management without Order BOM

Pick Material

from Stock

Ac

co

un

ts

Pa

ya

ble

A

cc

ou

nta

nt

Ev

en

t

Invoice Receipt and


Sales from central stock

(B21)

Ware

ho

use

Cle

rk

Req

uesti

ng

P

lan

t

Ware

ho

use

Dep

art

men

t D

eliv

eri

ng

P

lan

t


Intercompany Sales Order


Manager


Clerk

Cu

sto

mer


Ship Material to Customer


Plant Invoice

Requesting Customer

Invoice

Invoice Receipt and Customer

Payment

… Delivery Flow



Manufacturing Process with Order Change Management with Order BOM

Cu

sto

mer

Requesting Plant

Receives Request for Quotation E

ven

t Informs the Production Supervisor

Pro

du

cti

on

Su

perv

iso

r D

eliv

eri

ng

P

lan

t

Informs the Engineering Specialist

Informs the Warehouse Department



Sale

s

Dep

art

men

t


After Approval Sales Order

Creation

En

gin

eeri

ng

S

pecia

list

Deliv

eri

ng

P

lan

t

Order BOM Creation

Set Order Change Management


Order BOM Change

Engineering Specialist

Request for Change



Manufacturing Flow with OCM …



Manufacturing Process with Order Change Management with Order BOM

Pick Material

from Stock

Ac

co

un

ts

Pa

ya

ble

A

cc

ou

nta

nt

Ev

en

t

Invoice Receipt and


Sales from central stock

(B21)

Ware

ho

use

Cle

rk

Req

uesti

ng

P

lan

t

Ware

ho

use

Dep

art

men

t D

eliv

eri

ng

P

lan

t


Intercompany Sales Order


Manager


Clerk

Cu

sto

mer


Ship Material to Customer


Plant Invoice

Requesting Customer

Invoice

Invoice Receipt and Customer

Payment

… Delivery Flow


Legend

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

Exte

rnal

to S

AP

Business Activity / Event

Unit Process

Process Reference

Sub-Process

Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version /

Data

System Pass/Fail Decision

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts

Payable Clerk or Sales Representative. This band

can also identify an organization unit or group,

rather than a specific role.

The other process flow symbols in this table go

into these rows. You have as many rows as

required to cover all of the roles in the scenario.

Role band contains

tasks common to that

role.

External Events: Contains events that start or end

the scenario, or influence the course of events in

the scenario.

Flow line (solid): Line indicates the normal

sequence of steps and direction of flow in the

scenario.

Flow line (dashed): Line indicates flow to

infrequently-used or conditional tasks in a

scenario. Line can also lead to documents involved

in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

<F

unction>


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Documents

SAP Best Practices for Subsidiary Integration in One ... · PDF fileSAP Best Practices for Subsidiary Integration in One Client Production with Intercompany Replenishment ... (Variant