SCM680 Cross Application Processes in MM and SD

SCM680SCM680 Cross-ApplicationProcesses in MM and SD

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Participant HandbookCourse Version: 2003 Q3Course Duration: 2 Day(s)Material Number: 50063656

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About this HandbookThis handbook is intended to complement the instructor-led presentationof this course, and serve as a source of reference. It is not suitable forself-study.

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2003 / Q3 © 2003 SAP AG. All rights reserved. iii

About this Handbook SCM680

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iv © 2003 SAP AG. All rights reserved. 2003 / Q3

ContentsCourse Overview ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viiiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Unit 1: Third-Party Processing..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Sales Order with Third-Party Item .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Purchase Order and Goods Receipt for the Third-Party Item... 33Vendor Invoice and Billing Document for the Customer .. . . . . . . . 53

Unit 2: The Cross-Company-Code Sales Process..... . . . . . . . . . . . 71Sales Order for Cross-Company-Code Sales .. . . . . . . . . . . . . . . . . . . . 73Shipping and Goods Movements for Cross-Company-CodeSales .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Invoices for Cross-Company-Code Sales.. . . . . . . . . . . . . . . . . . . . . . . . . 98

Unit 3: The Intra-Company-Code Stock Transfer Process..... 127Stock Transport Order for Intra-Company-Code StockTransfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129

Goods Movements for Intra-Company-Code Stock Transfer .. .151

Unit 4: The Cross-Company-Code Stock Transfer Process...175Stock Transport Order for Cross-Company-Code StockTransfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177

Transactions/Events in the Issuing Company Code .... . . . . . . . . .197Transactions/Events in the Receiving Company Code... . . . . . . .225

Unit 5: Subcontracting..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241Procurement via Subcontracting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243Goods Movements for Subcontracting .. . . . . . . . . . . . . . . . . . . . . . . . . . .263Goods Receipt and Invoice Receipt .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291

Appendix 1: Overview of G/L accounts and Postings in MM andSD ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315

2003 / Q3 © 2003 SAP AG. All rights reserved. v

Contents SCM680

vi © 2003 SAP AG. All rights reserved. 2003 / Q3

Course OverviewIn this course, you will gain an insight into different business processes aswell as an insight into operations in sales and distribution and materialsmanagement. Special procurement forms and special sales forms belongto these business processes:

� Third-party processing

In third-party processing, delivery of the material required by thecustomer is not carried out by your company. Instead, you forwardthe request to an external vendor, who then sends the material directlyto the customer and charges you for the material.

� Cross-company-code sales

In the case of cross-company-code sales, delivery of the materialrequired by the customer does not take place from one�s owncompany code, but from a plant of another company code.

� Intra-company-code stock transfer

In the case of intra-company-code stock transfers, material istransferred between plants that have the same company code.Starting with material requirements planning, you can trigger thestock transfer via a purchase order and use shipping for the goodsmovement.

� Cross-company-code stock transfer

In the case of cross-company-code stock transfers, material istransferred between plants that have different company codes. Thematerial is thus bought for an internal price by one of the companycodes and sold by the other.

The result is, according to the company code, the purchase and saleof material.

� Subcontracting

In subcontract procurement processing, the vendor is providedwith material or components to manufacture the material required,which is/are used to manufacture the finished product. You canuse shipping to send the components from your company to thesubcontractor.

Target AudienceThis course is intended for the following audiences:

2003 / Q3 © 2003 SAP AG. All rights reserved. vii

Course Overview SCM680

� Project team members responsible for implementing cross-applicationbusiness processes in Sales and Distribution, and MaterialsManagement.

Course PrerequisitesRequired Knowledge� SCM600/LO150 - Processes in Sales and Distribution or

SCM500/LO020 - Processes in Procurement

Recommended Knowledge� Alternative: Good knowledge of procurement processes in MM or

purchasing processes in SD.

Course GoalsThis course will prepare you to:

� Implement selected cross-application business processes in Sales andDistribution and Materials Management

� Execute the cross-application business processes of third-partyorder processing, cross-company-code sales, stock transfer, andsubcontracting in SAP R/3.

� Outline the main settings possible in Customizing

Course ObjectivesAfter completing this course, you will be able to:

� Map the process of third-party order processing in an enterprise� Map the process of cross-company-code sales in an enterprise� Map the intra-company-code stock transfer process in an enterprise� Map the cross-company-code stock transfer process in an enterprise� Map the process of subcontracting in an enterprise

SAP Software Component InformationThe information in this course pertains to the following SAP SoftwareComponents and releases:

viii © 2003 SAP AG. All rights reserved. 2003 / Q3

Unit 1Third-Party Processing

Unit OverviewIn this unit, you will find out how to use third-party processing for thedirect delivery of the material required by the customer by an externalvendor. The external vendor sends the material directly to the customerand bills you for the service.

Unit ObjectivesAfter completing this unit, you will be able to:

� Plan third-party processing for certain materials� Create a sales order with third-party items� Find the corresponding purchase requisition� Explain how third-party processing is automatically triggered from a

sales order� Convert the automatically created purchase requisition into a

purchase order� Post the goods receipt for a purchase order with third-party items and

explain what amount is posted to which account by the goods receipt� Post the invoice receipt in the invoice verification and explain which

accounts are posted to in doing so� Issue an invoice for the sales order� Explain which settings in MM and SD are necessary and possible

for third-party processing

Unit ContentsLesson: Sales Order with Third-Party Item... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Exercise 1: Preparations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Exercise 2: Creating a Sales Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Lesson: Purchase Order and Goods Receipt for the Third-Party Item ... 33Exercise 3: Creating a Third-Party Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Exercise 4: Posting a Goods Receipt .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

2003 / Q3 © 2003 SAP AG. All rights reserved. 1

Unit 1: Third-Party Processing SCM680

Lesson: Vendor Invoice and Billing Document for the Customer .. . . . . . . . . 53Exercise 5: Entering a Vendor Invoice ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Exercise 6: Issuing an Invoice for the Sales Order... . . . . . . . . . . . . . . . . . . . 65

2 © 2003 SAP AG. All rights reserved. 2003 / Q3

SCM680 Lesson: Sales Order with Third-Party Item

Lesson: Sales Order with Third-Party Item

Lesson OverviewIn this lesson, you will learn about the first process step for third-partyprocessing Create sales order, as well as the necessary and possible dataand Customizing settings.

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Plan third-party processing for certain materials� Create a sales order with third-party items� Find the corresponding purchase requisition� Explain how third-party processing is automatically triggered from a

sales order

Business ExampleFor own sales processes, the enterprise triggers a direct delivery from thevendor to the customer without going via the enterprise�s own warehouse.

Your task is to analyze the creation of sales orders with third-party items.

Third-Party ProcessingIn third-party processing, the sales area passes the sales order to anexternal vendor. The external vendor then delivers the goods directlyto the customer and charges the sales area for the goods. In turn, thecustomer receives an invoice from the sales area.

The customer�s purchase order is entered as a sales order in a salesorganization of your enterprise (SD application). A purchase requisition isautomatically created from the order. Finally, a purchase order is createdat the vendor in the MM purchasing application. It then follows that thegoods are to be delivered directly to the customer.

If the vendor reports that s/he has made an outbound delivery, you post agoods receipt, so that this information is entered in the system.

You enter the invoice placed to your enterprise by the vendor for the goodsdelivered to the customer in the MM invoice verification. You then createthe SD billing document for your customer.



Figure 1: Third-party processing

Sales OrderThird-party processing is triggered when you enter a sales order witha third-party item. An order can consist completely or partially ofthird-party items.

Depending on the settings made for your system in Customizing,third-party item categories for the corresponding materials can bedetermined automatically by the system (automatic third-partyprocessing).

However, if you enter the corresponding item category, a standard itemcan be changed into a third-party item manually. This allows you toprocess materials that you would normally deliver yourself as third-partyitems (manual third-party processing).

Sales Order StructureThe sales document consists of a document header and any amount ofitems. Each item can contain any amount of schedule lines. Procurementand shipping data is found at schedule line level.



Figure 2: Structure of a sales order with third-party items

The Customizing of sales documents takes place at header, item, andschedule line level based on this structure. The related control instrumentsare the sales document type, the item category, and the schedule linecategory.

Third-Party Item in the Sales OrderYou process third-party items by creating a sales order (for example,sales document type TA - standard order). At item level, you use theitem category to define that the material is to be delivered directly to thecustomer by a vendor. The item category TAS is provided for third-partyitems as the SAP R/3 default. Depending on this item category, theschedule line category CS (third-party) is determined for third-party items.The sales order can contain further third-party items or items with otheritem categories.

Item category

Item categories are determined automatically in SAP R/3. You indicate theproperties and characteristics of a document item and control, amongstothers, price determination, billing and delivery. In this way, you candetermine the billing relevance depending on the item category, forexample.

The following excerpt from SAP R/3 Customizing shows you detailsabout the item category TAS.



Figure 3: Item category TAS

The indicator for the automatic creation of purchase orders has not been setfor item category TAS. In contrast, by default, both purchase requisitionsand purchase orders can be generated automatically for the item categoryALES, which is also designated for third-party processing.

Item category determination

In essence, the item category depends on the sales document type and theitem category group of the material.

Two further factors item use and item category of the higher-level item, are ofsubordinate importance in third-party processing.

From the point of view of sales, you can group different materials togetherusing the item category group. In this way, you should, for example,assign the item category group BANS (third-party item) to materials whosesales are processed exclusively within a third-party deal. Item categoryassignment in the default then results in the automatic determination ofthe item category TAS.



Figure 4: Item category determination

The item category determined by the system can be altered to thepermitted alternatives that are saved in Customizing. You can make useof this option, for example, in the case of a material which you wouldnormally deliver yourself, but for which you make arrangements for anexternal vendor to procure and deliver directly to the customer instead.

Schedule line category

The standard Customizing of Sales and Distribution (IMG) is such that apurchase requisition is automatically created in purchasing. A relatedpurchase requisition item is thus created automatically for each third-partyitem in the sales order. This is achieved by the settings of the specialschedule line category for third-party items.

The schedule line category serves the different forms of control of schedulelines. Inventory management, material requirements planning, and theavailability check are controlled via the schedule line category.

For a purchase requisition to be created automatically in purchasing whenyou save the sales order, the necessary parameters (the document type forpurchase requisitions, for example) must be assigned to the correspondingschedule line category.



The schedule line category CS (third-party) is designated in the default forthird-party item processing.

Figure 5: Schedule line category for third-party processing

Since your enterprise does not deliver third-party items, you do not needto post a goods issue in your system. It is for this reason that the scheduleline category CS does not contain a movement type in Customizing, and isnot set as delivery-relevant.

The following excerpt from SAP R/3 Customizing shows you details aboutthe schedule line category CS.



Figure 6: Schedule line category CS

Schedule line category determination

Schedule line categories are assigned to item categories. The aim of thisassignment is:

� Tp enable the system to automatically propose a schedule linecategory on order entry, and

� To define the schedule line categories, which can be chosen by theuser when changing the proposal.

The assignment is influenced by the MRP type from the material masterrecord.



Figure 7: Schedule line category determination

Automatic determination of the schedule line category takes place in twosteps:

� In the first step, the system tries to determine a schedule line categoryby means of the key combination of item category andMRP type.

� If a schedule line category is not found in the first step, the systemthen tries to find a schedule line in a second step using the keycombination of item category and no MRP type, that is, using the MRPtype � � (blank).

If there are materials for which no MRP type has been maintained in thematerial master record, but for which a schedule line category is to befound, then a row with the item category and no MRP type (MRP typeblank) must exist in the schedule line assignment in Customizing. This isthe case, for example, for the item category TAS in the standard system, sothat the schedule line category CS is always determined regardless of theMRP type of the material.

Third-Party RequisitionFor a purchase requisition to be created automatically from the sales orderfor third-party items when you save, the Customizing of the scheduleline category CS contains a specified document type for the purchaserequisition as well as the (purchasing) item category, and the accountassignment category.

If a third-party item has more than one schedule line (with confirmedquantity > 0), then a purchase requisition item is created for each scheduleline.

You can branch to the display of the created purchase requisition itemsfrom the schedule line of the sales order.



Figure 8: Creating a purchase requisition

The automatically-created purchase requisition can already contain afixed source of supply (see the lesson Purchase Order and Goods Receiptfor the Third-Party Item). In this case, the planned delivery time fromthe purchasing info record, or from the assigned contract is taken intoconsideration for purchase order scheduling, and to determine the deliveryproposal.

During the creation of the purchase requisition, the system automaticallydetermines a vendor for each purchase requisition item. Product allocationis not checked in the case of third-party items.

You can subsequently change the delivery date and quantity for athird-party item in the sales order. The changes made are automaticallycopied to the related purchase requisition, as long as the processing statusof the purchase requisition still permits this.

The following graphic shows you the transfer of the most important datafrom the sales order to the order item. You can find detailed informationon this in SAP R/3 Note 95024.



Figure 9: Data transfer from the sales order to the purchase order

The purchase requisition is assigned to the sales order. The accountassignment cannot be changed in the purchase requisition.

The delivery address of a third-party item contains the address data fromthe related customer master record.

Scheduling for Third-Party ItemsThe planned delivery time from the material master or from the fixedsource of supply, that is, the time that the vendor needs to deliverthe material is taken into consideration in automatic purchase orderscheduling of third-party items. In addition, the purchasing departmentprocessing time, that is, the time that the purchasing department needsto process third-party orders, is incorporated. Amongst others, thepurchasing department processing time can be assigned to the plant in theCustomizing of purchasing.

First of all, the system checks whether the requested delivery date is farenough in the future, so that it can be confirmed when considering thesetwo dates (backward scheduling). If this is not the case, then, starting fromthe current date, the system checks to find the earliest date when the thethird-party item can be confirmed (forward scheduling). You can findfurther details on this in SAP R/3 Note 210455.



Figure 10: Delivery date determination in the case of forward scheduling

Hint: Changes to quantities and dates, which you make in thepurchase order are transferred automatically to the sales order.

If, for example, the vendor for the purchase order confirms deviantdates and quantities, and these are entered in the purchase order,then the data is transferred automatically to the sales order.



Figure 11: Changing the confirmed date in the sales order

In forward scheduling, two schedule lines are created, where the confirmedquantity for the requested delivery date is zero.

The requested delivery date is proposed as the delivery date in purchasing,even if the vendor cannot deliver within such a short space of time. Thebuyer receives information about the delivery date and, based on hisexperience with this vendor, reacts accordingly.

If, in his/her order confirmation the vendor gives a deviant date (or adeviant quantity), this change can be seen in the sales order once the orderhas been confirmed.



Exercise 1: Preparations

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan third-party processing for certain materials

Business ExampleYou have reached an agreement with a vendor for a certain material, thats/he will deliver this material directly to your customer if s/he receives acorresponding purchase order. This makes sense for you in the case of thecurrent material, since it is only rarely requested, and because you wouldonly trigger procurement once you receive a sales order. In this way, youcan cut down on one shipping method.

Task 1A master record already exists for the material described in the abovebusiness scenario. This material is procured from vendor 1010. A masterrecord already exists for this vendor also.

You can work with a purchasing info record and a source list whenprocuring this material externally. Alternatively, a regular vendor existsfor sourcing.

1. Since, in the past, you have procured material T-AUC## from vendor1010, an info record might already exist in the system.

Check whether an info record exists with the following data, andmake a note of the current purchase price.

Vendor: 1010

Material: T-AUC##

Purchasing organization: 1000

Plant: 12##

Net price: ___________________________________

2. Now maintain the source list for material T-AUC## in plant 12##.Enter vendor 1010 and sales organization 1000 as the fixed source.The entry should be valid from today to the end of this year.

Continued on next page



Task 2Third-party processing is immediately planned for sales of the materialdescribed in the above business scenario. The item category group in thematerial master must be changed for this.

1. Material T-AUC##should normally be delivered to your customer bythird-party processing. To do this, change the item category group inthe material master.

Sales organization: 1000

Distribution channel: 12

Hint: It is not sufficient if you only change the entry in the fieldGeneral item category group. Ultimately, it depends on the entryin the field Item category group, as long as an entry exists here.



Solution 1: PreparationsTask 1A master record already exists for the material described in the abovebusiness scenario. This material is procured from vendor 1010. A masterrecord already exists for this vendor also.

You can work with a purchasing info record and a source list whenprocuring this material externally. Alternatively, a regular vendor existsfor sourcing.

1. Since, in the past, you have procured material T-AUC## from vendor1010, an info record might already exist in the system.

Check whether an info record exists with the following data, andmake a note of the current purchase price.

Vendor: 1010

Material: T-AUC##


Plant: 12##

Net price: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing → Master Data→ Info Record→Display.

Enter the above data in the initial screen: Choose the infocategory Standard.

In the info record, choose the view PurchOrgData 1.

The net price is 625 EUR.




2. Now maintain the source list for material T-AUC## in plant 12##.Enter vendor 1010 and sales organization 1000 as the fixed source.The entry should be valid from today to the end of this year.

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Master Data→ Source List→Maintain.

Enter the following data in the initial screen:

Material number: T-AUC##

Plant: 12##

Make a new entry with the following data:

Valid from: Current date

Valid to: 31st December of this year.

Vendor: 1010


Select Fix.

Save your entries.

Task 2Third-party processing is immediately planned for sales of the materialdescribed in the above business scenario. The item category group in thematerial master must be changed for this.

1. Material T-AUC##should normally be delivered to your customer bythird-party processing. To do this, change the item category group inthe material master.






Hint: It is not sufficient if you only change the entry in the fieldGeneral item category group. Ultimately, it depends on the entryin the field Item category group, as long as an entry exists here.

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→Master Data→ Products→Material→ TradingGoods→ Change or

Logistics→Materials Management→Material Master→Material→ Change→ Immediately.

In the initial screen, enter material number T-AUC##:

Choose the view Sales: Sales Org. Data 2.

In the dialog box Organizational levels, enter sales organization1000 and distribution channel 12.

In the data screen, change the item category group to BANS.

It is not necessary to enter this in the field General item categorygroup as well.

Save your entries.





Exercise 2: Creating a Sales Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a sales order with third-party items� Find the corresponding purchase requisition� Explain how third-party processing is automatically triggered from a

sales order

Business ExampleOne of your customers orders a material for which you have plannedthird-party processing. A purchase requisition is to be createdautomatically from the sales order. This can then later be converted intoa third-party order.

Task 1You receive the following purchase order for the material, which is to besent directly from your vendor to your customer.

PURCHASE ORDER

SudaTech GmbH (Customer 2004)

Purchase ordernumber: ##-A

Material Quantity Requested delivery date

T-AUC## 10 pc. Today + 1 workday

1. Create a sales order for this purchase order. Use the order type TAand the following sales area:


Distribution channel 12

Division 00




Sold-to party: 2004

Purchase order number: ##-A

Requested delivery date: Today + 1 workday

Material: T-AUC##

Quantity: 10 pc.

Can the requested delivery date be kept? Give reasons for thesystem�s reaction.

_____________________________________________________________

_____________________________________________________________

Choose the date proposal for Complete delivery.

Which plant is set for the outbound delivery of the goods?

_____________________________________________________________

Determine the net value of the order item.

_____________________________________________________________

Save the sales order. Make a note of the document number.

Standard order number: ___________________________________

2. Make sure that a purchase requisition was created automatically fromthe sales order. Make a note of the document number.

Purchase requisition: ___________________________________

Display the purchase requisition. What document type does thepurchase requisition have?

What delivery type has been assigned as the fixed source?

Document type: ___________________________________Vendor ___________________________________

Task 2Check the following Customizing settings.

1. For third-party processing to be triggered, an appropriate itemcategory and schedule line category must be found in the sales order.What item category has the system determined in the sales order?




Item category: ___________________________________

Which entry of the item category assignment was responsible for thedetermination of this item category?

Sales document type: ___________________________________Item category group: ___________________________________

Item category: ___________________________________

2. Explain how and why, in individual cases, you can trigger third-partyprocessing for a material with item category group NORM in astandard order.

Hint: Display the settings in Customizing for item andschedule line categories and their assignment. Do not makeany changes!

3. Optional

The setting in the schedule line category automatically creates apurchase requisition. What schedule line category was determinedin the sales order?

Sched. line cat.: ___________________________________

4. Optional

What document type is used for the purchase requisition based on thesetting in the schedule line category? Did this work in your example?

Which movement type is stored in the schedule line category?

Explain the meaning of the given system setting.

Document type: ___________________________________Movement type: ___________________________________

5. Optional

Based on which entry in the schedule line category assignment wasthe schedule line category in your sales order determined?




Item category: ___________________________________MRP type: ___________________________________

Default schedule linecategory:

___________________________________



Solution 2: Creating a Sales OrderTask 1You receive the following purchase order for the material, which is to besent directly from your vendor to your customer.

PURCHASE ORDER

SudaTech GmbH (Customer 2004)

Purchase ordernumber: ##-A


T-AUC## 10 pc. Today + 1 workday



Distribution channel 12

Division 00

Sold-to party: 2004

Purchase order number: ##-A

Requested delivery date: Today + 1 workday

Material: T-AUC##

Quantity: 10 pc.

Can the requested delivery date be kept? Give reasons for thesystem�s reaction.

_____________________________________________________________

_____________________________________________________________

Choose the date proposal for Complete delivery.


_____________________________________________________________

Determine the net value of the order item.

_____________________________________________________________





Standard order number: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Sales→ Order→ Create.

In the initial screen, enter the order type and the sales area.

Create a sales order using the above data.

b) On the screen Standard Order: Order Scheduling, you can see thatthe requested delivery date cannot be kept. When calculatingthe actual delivery date, a planned delivery date of five days,and a processing time of one day by purchasing depending onthe plant is calculated.

Choose Complete Delivery or Copy in the screen area CompleteDelivery.

c) Go to the overview screen Sales:

� Plant 12##:

Hint: In the case of an outbound delivery from one�sown warehouse, this would be the delivering plant.

� Net value 8,845.00 EUR

Choose Save.

2. Make sure that a purchase requisition was created automatically fromthe sales order. Make a note of the document number.


Display the purchase requisition. What document type does thepurchase requisition have?

What delivery type has been assigned as the fixed source?




Document type: ___________________________________Vendor ___________________________________

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Sales→ Order→ Display.

Select the item. Choose Schedule lines for item.

Select the second schedule line. Choose Schedule line - details andthen the tab page Procurement (or immediately the pushbuttonprocurement).

b) Choose the pushbutton Edit.

Document type: NBVendor: 1010

Task 2Check the following Customizing settings.

1. For third-party processing to be triggered, an appropriate itemcategory and schedule line category must be found in the sales order.What item category has the system determined in the sales order?

Item category: ___________________________________

Which entry of the item category assignment was responsible for thedetermination of this item category?




Sales document type: ___________________________________Item category group: ___________________________________

Item category: ___________________________________


Item category: TAS

b) Choose: IMG→ Sales and Distribution→ Sales→ SalesDocuments→ Sales Document Item→ Assign Item Categories .

Position on the table entry with the follow details:

Sales document type: TAItem category group: BANS

The default value TAS (field DfltC) has been assigned as theitem category.




2. Explain how and why, in individual cases, you can trigger third-partyprocessing for a material with item category group NORM in astandard order.

Hint: Display the settings in Customizing for item andschedule line categories and their assignment. Do not makeany changes!

a) To trigger third-party processing in a standard order inindividual cases, you change the determined item category TANto TAS. This is enabled by the possible alternative item categoriesfor manual entry stored in the item category assignment.

Choose: IMG → Sales and Distribution → Sales → SalesDocuments→ Sales Document Item→ Assign Item Categories .

The relevant row in the item category assignment is:

Sales document type: TAItem category group: NORM

In this case, the default value TAN (field DfltC) has beenassigned as the item category.

Select the row and choose Details. Manually allowed itemcategory in the sales and distribution document (fieldManualitem category ): TAS (amongst others)

3. Optional

The setting in the schedule line category automatically creates apurchase requisition. What schedule line category was determinedin the sales order?

Sched. line cat.: ___________________________________


Select the item. Choose Schedule lines for item.

Sched. line cat.: CS

4. Optional




What document type is used for the purchase requisition based on thesetting in the schedule line category? Did this work in your example?

Which movement type is stored in the schedule line category?

Explain the meaning of the given system setting.

Document type: ___________________________________Movement type: ___________________________________

a) Choose: IMG→ Sales and Distribution→ Sales→ SalesDocuments→ Schedule Lines→ Define Schedule Line Categories.

Position on the schedule line category CS and choose Details.

Order type NB (document type of the purchase requisition) isassigned.

You noticed above, that the purchase requisition created in yourexample contained the document type NB.

b) No movement type is stored in the definition of the schedule linecategory CS. This would not make any sense, since the issuedoes not take place from your stock in third-party processing.Consequently, you do not create an outbound delivery nor posta goods issue, so that the system does not need a specifiedmovement type.

5. Optional

Based on which entry in the schedule line category assignment wasthe schedule line category in your sales order determined?






___________________________________

a) Choose: IMG → Sales and Distribution → Sales → SalesDocuments→ Schedule Lines→ Assign Schedule Line Categories.


Item category: TASMRP type: � � (blank)

Schedule line category CS has been assigned as the default valuefor item category TAS (field SchLC.

Hint: Since the MRP type has not been specified in theschedule line category assignment for item category TAS,you do not need to determine the MRP type from thematerial master record of material T-AUC##.



Lesson Summary

You should now be able to:� Plan third-party processing for certain materials� Create a sales order with third-party items� Find the corresponding purchase requisition� Explain how third-party processing is automatically triggered from a

sales order


SCM680 Lesson: Purchase Order and Goods Receipt for the Third-Party Item

Lesson: Purchase Order and Goods Receipt for theThird-Party Item

Lesson OverviewIn this lesson, you will learn about the second process step of third-partyprocessing create purchase order. Using Customizing settings, you cancontrol whether a goods receipt for the third-party item is to be posted ornot.


� Convert the automatically created purchase requisition into apurchase order

� Post the goods receipt for a purchase order with third-party items andexplain what amount is posted to which account by the goods receipt

Business ExampleFor own sales processes, the enterprise triggers a direct delivery from thevendor to the customer without going via the enterprise�s own warehouse.

Your task is to analyze the creation of third-party orders and to enter thegoods receipt.

Third-Party OrderThe automatically created purchase requisition must be converted into apurchase order. The vendor is thus commissioned to deliver a certainquantity of materials on the specified delivery date. In addition tothird-party items, further order items can exist in the purchase order.

The following graphic shows you the structure of a purchase order.



Figure 12: Structure of a purchase order

The (purchasing) item category standard (� �, blank) is used for procurementtransactions that permit a receipt in one�s own enterprise.

The document type of the purchase requisition was determined based onthe schedule line CS. You can determine in the Customizing of purchasingwhich order document types are permitted for the conversion of apurchase requisition item into an order item. This setting also dependson the (purchasing) item category.

Source DeterminationSource determination was executed when the purchase requisition wasautomatically generated. Possible sources of supply for the externalprocurement of materials are purchase info records and outline agreements(contracts and scheduling agreements).

A source of supply is only assigned to the purchase requisition item whenthe source of supply is clear. If more than one source of supply exists, thenSAP R/3 does not automatically assign a source of supply.



Figure 13: Sources of supply in purchasing

The role of source determination is to determine sources of supply. Thequota arrangement has the highest priority.

The role of quota arrangement is to determine valid sources of supply for apurchase requisition at a certain point in time, whereby requirements canbe automatically distributed to different sources of supply when quotasare defined.

The source list also serves to determine valid sources of supply at a certainpoint in time. It contains a list of the sources of supply and periods, inwhich procurement is possible using these sources of supply, designatedfor a material.

Quota arrangement and source lists are plant-dependent.



Figure 14: Source determination

If neither a quota arrangement or an order book exist for a material, thesystem checks whether exactly one outline agreement item or exactly oneinfo record exists for the requested material.

Creating a Third-Party Order ManuallyIn third-party processing, purchase orders are created from purchaserequisitions in the usual way, that is, the buyer must assign a source ofsupply to the purchase requisition items, if this did not occur when thesales order was created. S/he must also convert these items into orderitems. In this way, purchase requisition items can be grouped together bythe same material number (and the same account assignment).



When a purchase requisition is created, the system automatically copiesthe address of the goods recipient from the relevant sales order as thedelivery address. This delivery address is automatically copied to theorder item, as in the case of the goods recipient�s customer number.

Hint: If, in third-party deals, the address data of the goods recipientis changed in the sales order, the data that has been changed isautomatically passed on to the purchase requisition, and, if apurchase order exists, to the purchase order. You can display thegoods recipient�s address data in the attributes for the item in thepurchase order.

For third-party deals, you can only change the goods recipient�saddress data in the sales order and not in the purchase order.

In the sales order, you can enter purchase order texts for each third-partyitem. When a purchase requisition is created, these texts are then copiedautomatically to the purchase requisition, and from there, to the orderitem. You can make settings for the transfer of texts

� from sales orders to purchase requisition items� from purchase requisition items to order items

in the Customizing of purchasing.

Figure 15: Settings for text transfers



The number of the purchase order created appears in the document flowof the sales order. You can branch to the purchase order from there, andpotentially, you can look at existing follow-on documents in the purchaseorder history.

Third-party items in purchase orders are indicated by the item categorythird-party (S). Third-party items must be assigned to account. The accountassignment category X (�all auxiliary account assignments�) is used asthe default.

In the Customizing of purchasing, you can define which accountassignment categories can be used in combination with an item category.

The following excerpt from SAP R/3 Customizing shows you thesettings for the account assignment category X (�all auxiliary accountassignments�).

Figure 16: Properties of account assignment categories

While the control parameters for the item category cannot be changedin the Customizing of SAP R/3, you can define that the same controlparameters can be changed or that they are fixed, based on the accountassignment category, as for the following indicators:

� Goods receipt for the item provided/possible or not� Goods receipt posting valuated or not� Goods-receipt-related invoice verification planned or not



The settings of these control parameters for the account assignmentcategory may not, however, contradict the control parameters of the�permitted� item categories.

The following excerpt from SAP R/3 Customizing shows you the settingsfor the item category third-party.

Figure 17: Item categoryThird-party

Hint: From the point of view of purchasing, you can also createthird-party items without a material number, that is, without amaterial master record.

Settings have been made in SAP R/3 for the item category third-party sothat

� A goods receipt with reference to the order item can be entered (this isnot the case in the default)

� An invoice receipt with reference to the order item must be entered(an order price of zero is not possible)

Creating a Third-Party Order AutomaticallyStarting from a third-party schedule line, you can automatically generate athird-party order in the background when you save the sales order. Youuse the ALE function to do this.



The indicator for the automatic creation of purchase orders has not beenset in the SAP R/3 default for item category TAS. In contrast, settings havebeen made in the default for item category ALES so that both purchaserequisitions and purchase orders can be generated automatically.

Figure 18: Creating a third-party order automatically

Prerequisites for the automatic creation of purchase orders are as follows:

� The indicator automatic purchase order must have been set for theitem category.

� A unique source of supply must exist for the third-party item (see�source determination� in this lesson).

� Based on the sales organization, the document type for the purchaseorder and additional data must be assigned in Customizing underenterprise structure for the purchase order to be generated.

Goods Receipt for the Purchase OrderGoods ReceiptSince third-party processing portrays goods movement directly from thevendor to the customer, inventory management is not affected by thisevent.

However, if your sales department would like to document and enter thedelivery to the customer in the system, you can arrange for a goods receiptfor the third-party order (order item, tab page delivery).

The goods receipt posting has the following effects:



Figure 19: Effects of the goods receipt posting

� The warehouse stock is not updated� The goods receipt is posted directly to consumption, and the

consumption quantity is updated� The order value is posted to a GR/IR clearing account for invoice

verification purposes� The goods receipt can be traced in the purchase order history

You post the goods receipt when the vendor reports that s/he has executedthe outbound delivery. Alternatively, you could get the customer toconfirm that the delivery has arrived. To make use of this monitoringoption, you need to set the goods receipt indicator in the order item, oryou make the corresponding settings for the account assignment categoryin Customizing.

The goods receipt quantity and the value of goods received, if a goodsreceipt has been planned at all, is proposed on invoice receipt.

Since no flow of goods occurs in your enterprise, the goods receipt postingmerely results in updates on a value basis.





Exercise 3: Creating a Third-Party Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Convert the automatically created purchase requisition into a

purchase order

Business ExampleIn the next workstep, your vendor must be authorized to send the goodsdirectly to your customer, who ordered the goods with you.

TaskTo execute the next workstep, you are an employee in the purchasingdepartment that operates for plant 12##.

1. In addition to the purchase requisition created in the precedingexercise, create a purchase order by entering via the purchaserequisition assignment list.

Hint: Alternatively, you can use the document overviewMypurchase requisitions to create a purchase order.


Purchasing group: 004


Vendor: 1010

Plant: 12##

Scope of list: A

Convert you purchase requisition into a purchase order using thefollowing data:

Order type: NB

Purchase order date: Current date

Purchase order: ’ ’ (blank)






You have telephoned your vendor. S/he could confirm that yourcustomer will be delivered the goods by his/her desired deliverydate. That is why you can leave the inserted delivery date.

Save the purchase order. Make a note of the document number.

Purchase order number: ___________________________________

2. In the print view of the purchase order, make sure that the goods arebeing delivered directly to your customer, and not to your enterprise.

Hint: First use the transaction for message output from salesdocuments. Instead of choosing the function Output message,choose the function Display message.

3. How can you directly display the delivery address when editing ordisplaying the purchase order?



Solution 3: Creating a Third-Party OrderTaskTo execute the next workstep, you are an employee in the purchasingdepartment that operates for plant 12##.

1. In addition to the purchase requisition created in the precedingexercise, create a purchase order by entering via the purchaserequisition assignment list.

Hint: Alternatively, you can use the document overviewMypurchase requisitions to create a purchase order.




Vendor: 1010

Plant: 12##

Scope of list: A

Convert you purchase requisition into a purchase order using thefollowing data:

Order type: NB

Purchase order date: Current date

Purchase order: ’ ’ (blank)



You have telephoned your vendor. S/he could confirm that yourcustomer will be delivered the goods by his/her desired deliverydate. That is why you can leave the inserted delivery date.






a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Order→ Create→ ViaRequisition Assignment List.

Enter the above data in the initial screen:

Position your cursor on the bottom row (Number purchaserequisitions = 1) and choose Process Assignment.

The data in the task description has already been entered inthe screen Process Assignment: Create Purchase Order. ChooseContinue.

Position the cursor in the document overview of the transactionCreate Purchase Order (on the left-hand side of the screen) on theopen purchase requisition, and copy using the pushbutton Copyto the current purchase order on the right-hand side of the screen.

Alternatively, you can use the left mouse button to transfer thepurchase requisition to the shopping basket.

Ignore the warning Can delivery date be kept? Realistic deliverydate dd.mm.yy and choose Enter.

Choose Save.

b) From the SAP Easy Access screen, choose Logistics→MaterialsManagement → Purchasing → Purchase Order → Create →Vendor/Supplying Plant Known .

Choose Show document overview and select your purchaserequisition viaMy purchase requisitions. You can choose or adjustan appropriate layout for an appropriate mapping.

Continue as described under a).




2. In the print view of the purchase order, make sure that the goods arebeing delivered directly to your customer, and not to your enterprise.

Hint: First use the transaction for message output from salesdocuments. Instead of choosing the function Output message,choose the function Display message.

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Order→ Messages→Print/Transmit.

In the field Document number, enter the document number of thepurchase order, which you noted (if this has not already beendone automatically).

Choose Execute.

In the screenMessage Output, select the row with your purchaseorder and choose Display message.

3. How can you directly display the delivery address when editing ordisplaying the purchase order?

Answer: From the SAP Easy Access screen, choose Logistics →Materials Management→ Purchasing→ Purchase Order→ Display.If your purchase order is not displayed straight away, choose OtherPurchase Order and enter your purchase order number in the screenSelect document. Then choose Other document.You can also display the delivery address in the print preview.Choose Print preview.At item level, you can also choose the tab page Delivery address. Inaddition to the address, you can also see the debtor number underwhich you list the customer.





Exercise 4: Posting a Goods Receipt

Exercise ObjectivesAfter completing this exercise, you will be able to:� Post the goods receipt for a purchase order with third-party items� Explain which amounts are posted to which accounts as a result of

the goods receipt

Business ExampleYou have made arrangements with the relevant vendor for him/her, in thecase of third-party deals, to report to your enterprise when the outbounddelivery to your customer has taken place.

TaskOnce your vendor has reported to purchasing that the outbound deliveryto the customer of the goods listed in the purchase order has taken place,the goods receipt needs to be posted.

1. Post the goods receipt for your purchase order.

Purchase order: From the preceding exercise

Document date: Current date

Posting date: Current date

Make a note of the document number.

Material document: ___________________________________

2. Optional

Display the accounting document for the goods receipt.

What accounts were posted to?

_____________________________________________________________

_____________________________________________________________

Clarify where the amount comes from.

_____________________________________________________________

_____________________________________________________________



Solution 4: Posting a Goods ReceiptTaskOnce your vendor has reported to purchasing that the outbound deliveryto the customer of the goods listed in the purchase order has taken place,the goods receipt needs to be posted.

1. Post the goods receipt for your purchase order.

Purchase order: From the preceding exercise





a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→ Goods Movement→Goods Receipt→ For Purchase Order→ PO Number Known.

Choose the function Goods receipt for order. Enter your purchaseorder number and choose Enter or Execute.

Select the item as OK. Choose Post.

2. Optional

Display the accounting document for the goods receipt.

What accounts were posted to?

_____________________________________________________________

_____________________________________________________________

Clarify where the amount comes from.

_____________________________________________________________




_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→Material Document→Display.

Accept the default values for the fieldsMaterial document andMaterial document year and choose Enter.

In the material document display, choose the pushbutton FI/COdocuments. Select the accounting document by double-clicking.

Hint: To display the FI/CO documents within thetransaction MIGO, choose the tab page Document infoand then the pushbutton FI/CO documents in advance inthe header details.

Debit posting: 893010 � Cost accountCreditposting: 191199 � GR/IR clearing account

The system has taken the amount from the purchase order(Value of goods received = quantity of goods received * purchaseorder price).



Lesson Summary

You should now be able to:� Convert the automatically created purchase requisition into a


explain what amount is posted to which account by the goods receipt


SCM680 Lesson: Vendor Invoice and Billing Document for the Customer

Lesson: Vendor Invoice and Billing Document for theCustomer

Lesson OverviewIn this lesson, you will learn about the further process steps of third-partyprocessing post vendor invoice and post billing document for the customer andthe related Customizing settings.


� Post the invoice receipt in the invoice verification and explain whichaccounts are posted to in doing so

� Issue an invoice for the sales order� Explain which settings in MM and SD are necessary and possible


Business ExampleAs a result of its own sales processes, the enterprise triggers a directdelivery from the vendor to the customer without going via the enterprise�sown warehouse.

Your task is to analyze the entry of vendor invoices and the creation ofbilling documents for the customer.

Incoming InvoiceAn incoming invoice is �expected� by SAP R/3 for each third-partypurchase order item (see details on the purchasing item categorythird-party).

Invoice ReceiptYou enter an invoice receipt for the invoice that arrives. To do this, youuse Logistics Invoice Verification and refer to the purchase order. If theindicator for the goods receipt has been set in the order item, the systemproposes the goods receipt quantity that has already been posted, and thevalue of the goods received.

Variances between the invoice price and the purchase order price can leadto the invoice being automatically blocked for payment. These variancesare also used to determine the profit margin in the sales order (see thesection �moving average price in third-party deals� in this lesson).



Using the indicator goods-receipt-related invoice verification in the purchaseorder item, you can set the business process in such a way that it is onlypossible to enter a vendor invoice if a goods receipt for the purchase orderhas already been entered in the system.

When the incoming invoice is posted, following are updated:

� Purchase order history

The third-party purchase order item is �completed� when the orderedquantity has also been invoiced

� G/L accounts

If a goods receipt was posted as valuated, the GR/IR clearing accountis cleared (if the goods receipt quantity and the invoice receiptquantity are the same).

� the vendor account in subledger accounting, as well as the liabilitiesaccount (general ledger)

Purchase Order HistoryThe purchase order history contains all details about deliveries that havebeen carried out up until now, or details about invoices received for apurchase order item. You can branch to the display of the follow-ondocuments from the purchase order history.

Customer Billing DocumentOnce the invoice receipt has been entered, the customer is billed. Thesales order can then be found in the billing due list and is processed in thenext collective billing run. The billing date relevant for the billing due listcorresponds to the posting date of the invoice receipt document. Since anoutbound delivery for the third-party items does not exist in the system,you need to set the indicator for order-related billing in the selection fordocuments to be billed.

Entering the Customer Billing DocumentIf the billing relevance indicator is set to �B� for the item category inCustomizing for item categories (relevant for order-related billing basedon the order quantity), the system directly transfers the order to the billingdue list.

However, if the indicator has been set to �F� (relevant for order-relatedbilling based on the invoice quantity), the system transfers the order to thebilling due list only when the vendor�s invoice has been received andprocessed in invoice verification.



In the default, the billing relevance indicator is set to F for the itemcategory TAS (third-party deal).

In the first case, the third-party order is only fully billed when the invoicedquantity of the order quantity corresponds to the sales order item. In thesecond case, a customer invoice is created for the quantity specified in thevendor invoice each time an invoice is received. The order is considered asfully billed until the next invoice is received from the vendor.

Figure 20: Copying control for item category TAS

The default setting for the third-party item category in the copying controlfor sales document to billing document determines that the quantity fromthe invoice receipt document is transferred to the billing document insteadof the order quantity, for example (invoiced quantity field).

The following excerpt from SAP R/3 Customizing shows you the settingsfor the copying control for item category TAS.



Figure 21: Copying control for sales document

If, in Customizing for item categories, you have set the billing-relevanceindicator to F, you can refer to the goods receipt quantity as an alternativeto the invoice receipt quantity when billing.

You make settings to control whether the invoice receipt quantity or goodsreceipt quantity is to be billing-relevant in the Customizing for copyingcontrol for billing, at item level.

Moving Average Price in Third-Party DealsThe moving average price compares determined prices with costs and isused to determine the profit margin invoice. The condition type VPRSexists in SAP R/3 for the moving average price. This condition type isused as a statistical value in the calculation schema.

If you have made the relevant settings in Customizing, then the movingaverage price in the case of third-party deals is calculated from the valueof the vendor invoice plus proportional statistic conditions (cash discount,statistic freight, for example) from the purchase order in materialsmanagement.

Document Flow of the Sales OrderDocument flow portrays the documents of a business transaction thatfollow one another in the system.



The first follow-on document in the sales order of this business process isthe purchase order with the third-party item. From the document display,goods receipt and invoice receipt postings and their values can be checked.

The billing document and the assigned accounting document are listedalongside.





Exercise 5: Entering a Vendor Invoice

Exercise ObjectivesAfter completing this exercise, you will be able to:� Issue an invoice for the sales order� Understand the origin of the price

Business ExampleThe vendor sends you an invoice for the goods, which you ordered, andwhich s/he delivered to your customer.

TaskYou receive the following invoice from vendor 1010:

INVOICE

Sunny Electronics GmbH (Vendor 1010)Invoice date:

Invoice 950031## (Current date)Invoice for your purchase order 45000...

Material Quantity Unit price Total price

T-AUC## 10 pc. 630.00 EUR 6,300.00 EURSunny Tetral3 monitorsVAT 10% (1l) 630.00 EURInvoice amount: 6,930.00 EUR

1. Enter the invoice in company code 1000. Make a note of the documentnumber.

Invoice verificationdocument number:

___________________________________

2. Optional

Display the accounting document for the invoice. What accountswere posted to?




Account no. Description Debits/credits______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________



Solution 5: Entering a Vendor InvoiceTaskYou receive the following invoice from vendor 1010:

INVOICE

Sunny Electronics GmbH (Vendor 1010)Invoice date:



T-AUC## 10 pc. 630.00 EUR 6,300.00 EURSunny Tetral3 monitorsVAT 10% (1l) 630.00 EURInvoice amount: 6,930.00 EUR

1. Enter the invoice in company code 1000. Make a note of the documentnumber.


___________________________________




a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Logistics Invoice Verification→ Document Entry→Enter Invoice.

Choose the transaction Invoice.

Enter the invoice in company code 1000 using the following data:



Reference: 950031##

Amount: 6,930.00 EUR

Tax amount: 630.00 EUR

Tax code: 1l (that is, 10%)

Purchase order/schedulingagreement:

Document number of thepurchase order noted above

Choose Enter.

Check the difference. Correct the amount in the invoice item.

Choose Post.

2. Optional





Account no. Description Debits/credits______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Logistics Invoice Verification→ Further Processing→ Display Invoice Document.

Accept the default values for the fields Invoice doc. number andFiscal year and choose Enter or Display doc.

Choose Follow-On Documents.... Select the accounting documentby double-clicking.

Account numberDescription Debits/credits191100 GR/IR clearing account Debit posting893010 Cost account Debit posting

154000 Input tax Debit posting1010 Creditor number of vendor Credit posting

In this way, a payable has arisen between your enterprise andthe vendor.





Exercise 6: Issuing an Invoice for theSales Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Issue an invoice for the sales order� Understand the origin of the price

Business ExampleOnce your enterprise has received an invoice from the vendor for thegoods delivered directly to your customer, you invoice your customer.You would normally use collective processing for billing to do this. Inindividual cases, you create the invoice explicitly.

Task 1Create an invoice for your customer with explicit reference to the salesorder. You use the individual procedure for billing here as an exception.

1. Enter the billing document. Note the net value.

Net value: ___________________________________

Where have you seen this value previously? Do you think this makessense?

_____________________________________________________________

Save the billing document and make a note of the document number.

Billing document: ___________________________________

Task 2Find out about the Customizing settings to create a billing document inSAP R/3.




1. You created an order-related invoice for the customer. Explain whythis is the case in third-party processing.

2. Where in Customizing do you define whether you bill according toorder or delivery? Find this place.

3. What difference would occur, if you were to choose the entry B for therelated indicator?



Solution 6: Issuing an Invoice for theSales OrderTask 1Create an invoice for your customer with explicit reference to the salesorder. You use the individual procedure for billing here as an exception.

1. Enter the billing document. Note the net value.

Net value: ___________________________________

Where have you seen this value previously? Do you think this makessense?

_____________________________________________________________



a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Billing→ Billing Document→ Create.

If necessary, enter the document number of the standard orderthat you noted above.

Choose Execute.

Net value: 8,845.00 EUR

The net value is identical to the amount in the sales order.

Yes, this amount makes sense, since it has been arranged withthe customer. However, it would not make sense to take theamount from your purchase order at the vendor, or from theincoming invoice as you would not earn anything from thebusiness transaction!

Choose Save.

Task 2Find out about the Customizing settings to create a billing document inSAP R/3.




1. You created an order-related invoice for the customer. Explain whythis is the case in third-party processing.

Answer:In third-party processing, your vendor sends the goods directly toyour customer. Therefore, you have not created an outbound deliveryfor the sales order with third-party items. Delivery-related billing isthus not possible.

2. Where in Customizing do you define whether you bill according toorder or delivery? Find this place.

Answer:Choose: IMG→ Sales and Distribution→ Sales→ Sales Documents→ Sales Document Item→ Define Item Categories .Choose Details for item category TAS.The field Billing relevance contains the entry F (order-related billingdocument - status according to invoice qty).

3. What difference would occur, if you were to choose the entry B for therelated indicator?

a) If you were to choose the entry B instead of F for the billingrelevance, the order would enter the billing due list immediatelyafter creation. Using the given system setting in the copyingcontrol for sales document to billing document for the third-partyitem TAS (field Billing quantity), billing with a log entry wouldbe rejected, since the system would attempt to determine aninvoice receipt quantity.

b) Choose: IMG→ Sales and Distribution→ Billing→ BillingDocuments→Maintain Copying Control for Billing Documents.

Choose Copying Control: Sales Document to Billing Document.

Position on the entry with the follow details:

Target: F2Source: TA

Select the entry and, in the dialog structure, choose Item via adouble-click.

Select the item category TAS and choose Details.

The indicator F has been set for the billing document (Invoicereceipt quantity less invoiced quantity).



Lesson Summary

You should now be able to:� Post the invoice receipt in the invoice verification and explain which




Unit Summary SCM680

Unit SummaryYou should now be able to:� Plan third-party processing for certain materials� Create a sales order with third-party items� Find the corresponding purchase requisition� Explain how third-party processing is automatically triggered from a

sales order� Convert the automatically created purchase requisition into a


explain what amount is posted to which account by the goods receipt� Post the invoice receipt in the invoice verification and explain which




Unit 2The Cross-Company-Code Sales

Process

Unit OverviewIn this unit, you will find out how to use cross-company-code salesprocesses in your enterprise.


� Set up cross-company-code sales processing for certain materials� Explain when a cross-company-code sales operation exists� Assign a sales area to a plant for the purpose of intercompany billing� Maintain permitted outbound supplying plants� Explain the conditions in the sales order� Execute shipping with the help of the outbound delivery� Determine the company code to which the invoice is assigned� Explain how the system determines the payer� Trigger automatic posting to the vendor account� Explain the conditions in the internal invoice� Explain the origin of the sales area

Unit ContentsLesson: Sales Order for Cross-Company-Code Sales .. . . . . . . . . . . . . . . . . . . . 73

Exercise 7: Preparations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Exercise 8: Creating a Sales Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Lesson: Shipping and Goods Movements for Cross-Company-CodeSales... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Exercise 9: Executing Shipping Activities .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Lesson: Invoices for Cross-Company-Code Sales .. . . . . . . . . . . . . . . . . . . . . . . . . 98

Exercise 10: Creating an Invoice for the End Customer... . . . . . . . . . . . .111Exercise 11: Creating an Internal Invoice .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113


Unit 2: The Cross-Company-Code Sales Process SCM680

Exercise 12: Posting an Invoice Receipt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121


SCM680 Lesson: Sales Order for Cross-Company-Code Sales

Lesson: Sales Order for Cross-Company-Code Sales

Lesson OverviewIn this lesson, you will learn how to create a sales order forcross-company-code sales. You will also learn about the Customizingsettings needed for this.


� Set up cross-company-code sales processing for certain materials� Explain when a cross-company-code sales operation exists� Assign a sales area to a plant for the purpose of intercompany billing� Maintain permitted outbound supplying plants� Explain the conditions in the sales order

Business ExampleAs a result of its own sales processes, the enterprise triggers a directdelivery to the customer from stocks of another company belonging to thesame group, without the goods going via the enterprise�s own warehouse.

Your task is to analyze the creation of a sales order for delivery fromanother company code.

The Cross-Company-Code Sales ProcessThe option of assigning plants to sales organizations to a differingcompany code enables you to process cross-business-area sales orders.

In the business transaction subsequently described, a customer ordersmonitors at the sales organization France.

The computers are produced in the Dresden plant of IDES Ltd., Germany.The sales organization France reports the customer requirement directly tothe plant in Dresden. The production plant in Germany delivers the goodsto the customer of the French sales organization.

The customer receives an invoice from the sales organization France forthis delivery. IDES Germany, however, invoices the French sales area forthe goods delivered.

Two enterprises (company codes) of the IDES affiliated group thusparticipate in the sales operation. IDES France is the ordering companycode and IDES Germany is the supplying company code.



Figure 22: The cross-company-code sales process

Once the customer�s purchase order has been received, a sales order iscreated in sales organization 2200. This belongs to the ordering companycode (company code 2200). The plant from which the articles to bedelivered are taken is assigned to the supplying company code (companycode 1000).

As soon as the sales order is due for shipping, an outbound delivery iscreated. At the end of the shipping process, the goods issue is posted andthe goods are transported to the customer.

Finally, an invoice is created for the end customer in sales organization2200, that is, in the ordering company code.

For intercompany billing to take place between the two company codesinvolved, the supplying company code creates an internal invoice for theordering company code via its sales organization 1000. Depending onthe agreement between the connected enterprises, the invoice receipt isentered automatically. Otherwise, the invoice received is entered manuallyin the financial accounting of the ordering company code.

Permitted Delivering PlantsWhen the order is created, the system checks whether the combination ofsales organization, distribution channel and delivering plant is permittedat all.



Depending on the distribution channel, the plants permitted for sales aredetermined for each sales organization. In this way, you can make settingsfor a sales organization to sell goods from more than one plant.

Similarly, a plant can be assigned to different sales organizations.

In Customizing, a plant is clearly assigned to one company code. A salesorganization also belongs to exactly one company code.

Figure 23: Permitted delivering plants

Sales organizations and plants assigned to one another do not, however,have to belong to the same company code. Otherwise, cross-company-codesales processing would not be possible. Depending on the distributionchannel, it is possible, from the point of view of sales and distribution, tofurther differentiate the plants of a sales organization. In this way, thedistribution channel plant sales is permitted for certain plants within asales organization, but not for others.

Creating a Sales OrderCross-company-code sales processing is initiated by the creation of a usualsales order.

In a sales order, the supplying plant is determined per order item by thesystem, or entered manually by the processor.



The system can propose the supplying plant from the following masterrecords (ordered according to priority):

� Customer-material info record� Customer master record for the goods recipient� Material master record

If the supplying plant found in the order item belongs to a differentcompany code than the sales organization creating the order, the systemrecognizes that it is a case of a cross-company-code sales process for thisitem.

Conditions in the Sales OrderThe system automatically executes price determination in the sales order,thus valuating the stored condition master data.

The condition type PR00 specifies the price that is to be invoiced to thecustomer. This, together with possible surcharges and discounts, will thenappear in the invoice for the customer, if no changes take place in themeantime. This price thus represents the sales revenue.

Figure 24: Price for intercompany billing



For information purposes, the price that the ordering company code has topay to the supplying company code appears (the price for intercompanybilling), instead of the moving average price of the material. It will berelevant in the internal billing document and renders the costs of theordering company code.

In the default, two condition types exist to depict the internal price: PI01(quantity-dependent) PI02 (in percent).

Condition records are entered subject to the sales organization that createsthe sales order, the delivering plant, and if necessary, the material.

The intercompany billing amount appears as a statistical value on thecondition screen of the sales order (it is merely displayed; it has no effecton the result of the price determination for the customer).






Exercise ObjectivesAfter completing this exercise, you will be able to:� Assign a sales area to a plant for the purpose of intercompany billing� Maintain permitted outbound delivering plants� Set up cross-company-code sales processing for certain materials

Business ExampleYou are in the French subsidiary of an international enterprise. You havemade arrangements with the German branch for certain materials that areseldom requested to be delivered directly to your customer when youreceive a corresponding purchase order. In this way, you save yourself adetour via your own warehouse.

TaskMaintain the Customizing settings for this business process.

1. First assign the following sales area to the supplying plant 12## forthe purposes of intercompany billing.

Sales organization forintercompany billing:

1000

Distribution channel forintercompany billing:

12

Division for intercompanybilling:

00

2. Make settings so that the French sales organization can at least sellgoods from plant 12## to end customers.

What menu path do you need to follow to make the necessary settingin Customizing?

_____________________________________________________________

_____________________________________________________________

If you have not already done so, make settings for the combination ofsales organization 2200 and distribution channel 10.




3. A material master record already exists for the material described inthe above business example. Enter plant 12## (Dresden ##) as thesupplying plant that is relevant for sales processes conducted by theFrench sales organization.

Material: T-AUD##



4. Optional

What do you need to do so that, in the item of the sales order, thesystem does not determine another supplying plant for materialT-AUD##?

1. __________________________________________________________

2. __________________________________________________________



Solution 7: PreparationsTaskMaintain the Customizing settings for this business process.

1. First assign the following sales area to the supplying plant 12## forthe purposes of intercompany billing.

Sales organization forintercompany billing:

1000

Distribution channel forintercompany billing:

12

Division for intercompanybilling:

00

a) Choose IMG → Sales and Distribution → Billing →Intercompany Billing→ Assign Organizational Units by Plant .

Choose Assign Organizational Units to the Plants.

Assign the sales area noted above to your plant 12##.

Choose Save.

2. Make settings so that the French sales organization can at least sellgoods from plant 12## to end customers.

What menu path do you need to follow to make the necessary settingin Customizing?

_____________________________________________________________

_____________________________________________________________

If you have not already done so, make settings for the combination ofsales organization 2200 and distribution channel 10.

a) Choose IMG→ Enterprise Structure→ Assignment→ Salesand Distribution→ Assign Sales Organization - DistributionChannel - Plant.

Place your cursor on the row with sales organization 2200 anddistribution channel 10, and choose Assign. Select plant 12##.

The information message refers to the cross-company-codecharacter.




3. A material master record already exists for the material described inthe above business example. Enter plant 12## (Dresden ##) as thesupplying plant that is relevant for sales processes conducted by theFrench sales organization.

Material: T-AUD##



a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→Master Data→ Products→Material→ TradingGoods→ Change or

Logistics→Materials Management→Material Master→Material→ Change→ Immediately.

In the initial screen, enter material number T-AUD##:

Choose the view Sales: Sales Org. Data 1.

In the dialog box Organizational levels, enter sales organization2200 and distribution channel 10.

In the data screen, maintain the delivering plant.

Save your entries.

4. Optional

What do you need to do so that, in the item of the sales order, thesystem does not determine another supplying plant for materialT-AUD##?

1. __________________________________________________________




2. __________________________________________________________

a) To prevent the system from using a different supplying plant,the following conditions must be met:

1. If a customer material info record exists, a variant supplyingplant may not be maintained there.

2. A deviant supplying plant may not be maintained inthe customer master for sales organization 2200 anddistribution channel 10 either.

When determining the supplying plant in the order item, thesystem accesses the master data in the following order:

1. Customer-material info record

2. Customer master record

3. Material master record





Exercise 8: Creating a Sales Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain when a cross-company-code sales operation exists� Explain the conditions in the sales order

Business ExampleYour customer orders a material that the German branch will deliverdirectly to the customer. Without any additional costs for the personresponsible for the purchase order for a �normal material�, thecross-company-code sales process is triggered.

TaskYou receive the following purchase order for the material, which is to besent directly from your vendor to your customer.

PURCHASE ORDER

Société Adecom SA (Customer 2500)

Purchase ordernumber: ##-B


T-AUD## 10 pc. Today + 3 workdays




Division: 00

Sold-to party: 2500

Purchase order number: ##-B

Requested delivery date: Today +3 workday

Material: T-AUD##

Quantity: 10 pc.





_____________________________________________________________

Where was the plant drawn from?

_____________________________________________________________

Which two organizational elements can be found in different companycodes when a cross-company-code sales process is concerned?

1. __________________________________________________________

2. __________________________________________________________


Sales order number: ___________________________________

2. In Customizing, look for the company codes that belong to the twoorganizational elements

1. __________________________________________________________

2. __________________________________________________________

3. Display the sales order that you just created.

Which condition type in the conditions screen of the order itemrefers to the price that the ordering company code has to pay to thesupplying company code?

What is the amount?

Condition type: ___________________________________Price: ___________________________________

What is the price valid for the customer?


Optional

Does the amount assigned to the price for intercompany billing havean effect on the net value? Explain why this makes sense.

_____________________________________________________________

_____________________________________________________________



Solution 8: Creating a Sales OrderTaskYou receive the following purchase order for the material, which is to besent directly from your vendor to your customer.

PURCHASE ORDER

Société Adecom SA (Customer 2500)

Purchase ordernumber: ##-B


T-AUD## 10 pc. Today + 3 workdays




Division: 00

Sold-to party: 2500

Purchase order number: ##-B

Requested delivery date: Today +3 workday

Material: T-AUD##

Quantity: 10 pc.


_____________________________________________________________

Where was the plant drawn from?

_____________________________________________________________

Which two organizational elements can be found in different companycodes when a cross-company-code sales process is concerned?

1. __________________________________________________________

2. __________________________________________________________





Sales order number: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Sales→ Order→ Create.

In the initial screen, enter the order type and the sales area.

Create a sales order using the above data.

b) The supplying plant is plant 12## (If necessary, scroll to the rightin the item in the sales overview screen).

Since a customer-material info record does not exist, and thedelivering plant has not been entered in the customer master,the plant was determined based on the entries in the materialmaster that you carried out above.

c) The following belong to different company codes:

1. Sales organization in which the sales order is entered

2. Supplying plant

2. In Customizing, look for the company codes that belong to the twoorganizational elements

1. __________________________________________________________

2. __________________________________________________________

a) Choose IMG→ Enterprise Structure→ Assignment→ Sales andDistribution→ Assign Sales Organization to Company Code.

Sales organization 2200⇒ company code 2200

b) Choose IMG→ Enterprise Structure→ Assignment→ Logistics- General→ Assign Plant to Company Code.

Plant 12##⇒ company code 1000

3. Display the sales order that you just created.

Which condition type in the conditions screen of the order itemrefers to the price that the ordering company code has to pay to thesupplying company code?

What is the amount?


What is the price valid for the customer?Continued on next page




Optional

Does the amount assigned to the price for intercompany billing havean effect on the net value? Explain why this makes sense.

_____________________________________________________________

_____________________________________________________________


Select the item in the order and choose Item conditions.

Condition type: PI01Price: 625.00 EUR

Condition type: PR00Price: 811.00 EUR

b) Choose Condition details for condition type PI01.

Since the condition is marked as Statistic, it does not have aneffect on the net value. This makes sense because the price forintercompany billing should neither increase or decrease theamount to be paid by the customer.



Lesson Summary

You should now be able to:� Set up cross-company-code sales processing for certain materials� Explain when a cross-company-code sales operation exists� Assign a sales area to a plant for the purpose of intercompany billing� Maintain permitted outbound supplying plants� Explain the conditions in the sales order


SCM680 Lesson: Shipping and Goods Movements for Cross-Company-Code Sales

Lesson: Shipping and Goods Movements forCross-Company-Code Sales

Lesson OverviewIn this lesson, you will learn about shipping activities for the sales orderfor cross-company-code sales.


� Execute shipping with the help of the outbound delivery


Your task is to analyze shipping activities in the delivering company code.

Shipping ActivitiesThe cross-company-code order has been entered directly in the deliverydue list of shipping point 1200 (Dresden). A delivery is created andprocessed in this shipping point for the delivery creation date.

The shipping process is initiated when the outbound delivery is created.This can occur with help of the usual collective processing function todeliver orders due for shipment, or with explicit reference to the salesorder.

In practice, the outbound delivery is usually created as soon as the firstworkstep in the shipping process arises. The individual steps in theshipping process (pick, pack, print delivery note, and so on) are eachexecuted based on the outbound delivery, and documented in it.

Creation of the outbound delivery, and execution of the shipping activitiestake place in the shipping point assigned in the order. This shipping pointis assigned to the supplying plant in Customizing.

Using the pick list, the material that is to be delivered to the customer iswithdrawn from the warehouse. The pick list is output based on a transferorder created for the delivery.



Figure 25: Shipping processing steps

A transfer order with reference to the outbound delivery is created forpicking. A printed list of the transfer order is given to the picker forhim/her to withdraw the corresponding articles from the warehouse.

Depending on the settings in Customizing, picking must create aconfirmation (confirmation requirement). Potential quantity variances canalso be entered in the confirmation requirement of the transfer order.

If the articles in shipping are, for example, packed in large cardboardboxes or placed on pallets, information regarding this can be stored inthe outbound delivery.

Delivery notes and so on are printed with help of message control andmessage processing.

The posting of the goods issue is the final activity in the shipping process.Stock is then updated on a quantity and value basis.



Exercise 9: Executing Shipping Activities

Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute shipping with the help of the outbound delivery

Business ExampleAt a shipping point assigned to the supplying plant, the goods areprepared for shipping to the customer and then delivered. The fact thatthis concerns cross-company-code shipping processing does not have anyeffect on the operation.

TaskTo execute the shipping activities, you are an employee of shipping pointX0## that operates for plant 12##. Use the usual functions for collectiveprocessing, which you use to process intra-company-code sales operationsin shipping.

1. Deliver the order created in the previous lesson for purchase order##-B by processing the pool of sales orders due for shipment, and thepurchase orders for shipping point X0##.

Limit your selection to shipping point X0##!

Hint: If your order does not appear in the worklist, enter ahigher date as the delivery creation date in the selection screen.

Make a note of the outbound delivery number.

Outbound delivery number: ___________________________________

2. Trigger picking by creating a transfer order for the outbound deliverythat you created.

To do this, use the collective processing function (via outbounddelivery monitor).


3. Once picking is complete, you can post the goods issue for theoutbound delivery you created.




The system is set in such a way that confirmation (from picking) doesnot have to first take place (no confirmation requirement). To do this,use the collective processing function.




Solution 9: Executing Shipping ActivitiesTaskTo execute the shipping activities, you are an employee of shipping pointX0## that operates for plant 12##. Use the usual functions for collectiveprocessing, which you use to process intra-company-code sales operationsin shipping.

1. Deliver the order created in the previous lesson for purchase order##-B by processing the pool of sales orders due for shipment, and thepurchase orders for shipping point X0##.


Hint: If your order does not appear in the worklist, enter ahigher date as the delivery creation date in the selection screen.

Make a note of the outbound delivery number.


a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Shipping and Transportation→ Outbound Delivery→ Create→ Collective Processing of Documents Due for Delivery→Sales Orders and Purchase Orders.

Enter shipping point X0##. Choose Execute.

If your order does not appear in the worklist, enter a higher dateas the delivery creation date in the selection screen.

In the list, select the row that refers to the order you createdabove.

Choose Create Delivery in Background.

b) Finally, choose Log Delivery Creation, select the entry and chooseDocuments to determine the outbound delivery number.

2. Trigger picking by creating a transfer order for the outbound deliverythat you created.

To do this, use the collective processing function (via outbounddelivery monitor).





a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Shipping and Transportation→ Picking→ CreateTransfer Order→ Via Outbound Delivery Monitor.

Enter shipping point X0##.

Choose Execute.

In the picking workload list, select the outbound delivery thatyou created and choose Create TO in background.

Confirm the dialog box that appears using Enter.

3. Once picking is complete, you can post the goods issue for theoutbound delivery you created.

The system is set in such a way that confirmation (from picking) doesnot have to first take place (no confirmation requirement). To do this,use the collective processing function.


a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Shipping and Transportation→ Post Goods Issue→Collective Processing Via Outbound Delivery Monitor.

Enter shipping point X0##.

Choose Execute.

In the list Goods Issue for Posted Outbound Deliveries, select theoutbound delivery you created and choose Post good issue.




Lesson Summary

You should now be able to:� Execute shipping with the help of the outbound delivery



Lesson: Invoices for Cross-Company-Code Sales

Lesson OverviewIn this lesson, you will learn about intercompany billing between companycodes, and the Customizing settings for this.


� Determine the company code to which the invoice is assigned� Explain how the system determines the payer� Trigger automatic posting to the vendor account� Explain the conditions in the internal invoice� Explain the origin of the sales area


Your task is to analyze the creation of internal invoices and the creation ofbilling documents for the customer.

Customer Billing DocumentWhen the goods issue is posted, the delivery is entered in the billing duelist of sales organization 2200 (France).

The invoice for the end customer is created in the sales organization thatentered the sales order.

Billing occurs with reference to the outbound delivery. It is thus irrelevantthat another company code undertook the outbound delivery.

The invoice is either created explicitly or by the collective billing run. Thebilling date relevant for the billing due list is the goods issue date of theoutbound delivery.


SCM680 Lesson: Invoices for Cross-Company-Code Sales

Figure 26: Elements of the invoice for the end customer

The invoice for the end customer concerns a �usual� invoice.

The billing types F2 or F1 are used per default, whereby billing type F2 isautomatically used by the system as the proposed billing type in the caseof standard orders (sales document type TA).

In contrast to internal invoices, the payer, the sales organization units, andthe company code are copied directly from the order.

In the order, the company code was derived from the sales organizationthat entered the order. The ordering company code is the company codeconcerned here.

Conditions in the Sales OrderIn addition to the sales price with condition type PR00, the internal price isdetermined in the billing document. As in the sales order, it is statistical.

Intercompany BillingWhen the invoice is created for the end customer, the delivery is enteredin the billing due list of the sales organization of the supplying companycode. An internal invoice is created for the ordering company code. Thisinvoice quotes the internal price for billing.



For the purposes of intercompany billing for the service provided to thecustomer of sales organization 2200, the delivering company code createsan internal invoice for the ordering company code.

Sales organization 1000 creates the internal invoice.

You assign the sales organization responsible for intercompany billing tothe delivering plant in Customizing.

As in the case of the invoice for the end customer, billing occurs withreference to the outbound delivery. When selecting the documents to bebilled, you need to set the intercompany billing indicator.

Figure 27: Elements of an internal invoice

The outbound delivery is first entered in the billing due list of theresponsible sales organization of the supplying company code when theinvoice for the end customer is entered.

SAP R/3 Note 38501 describes how the billing due list for intercompanybilling can be constructed before the customer billing document is created.

Billing type IV is used per default for the internal invoice. This is proposedbased on the document type of the order.

In principle, t he payer of the internal invoice corresponds to the orderingcompany code, which appears like a customer to the supplying companycode.



For this reason, you create a customer master record in the supplyingcompany code. You enter the relevant data for billing in this customermaster record. Finally, you assign the related customer number of thesales organization of the ordering company code in Customizing (fieldCustomer IV).

The company code in the internal invoice results from the company codeaffiliation of the supplying plant. It thus corresponds to the supplyingcompany code.

In Customizing, you assign the sales area necessary to create the internalinvoice to the supplying plant (fields sales organization IV, distributionchannel, division IV).

Hint: Make sure that the same setting is also used for stock transferprocesses.

Customer Master RecordThe sales organization in the ordering company code, which enters thesales order, takes on the role of payer in intercompany billing.

A customer master record must exist for the payer for an internal invoiceto be created. This is assigned to the sales organization in the orderingcompany code.



Figure 28: Customer master record for the payer

The customer master record must contain at least all the information thatis relevant for the role of payer (address, control account, for example).In the same way, you store the currency that the intercompany billing iscarried out in. The company code data is stored in the supplying companycode. Sales area data is entered with regard to the distribution channelfor intercompany billing (sales organization IV, distribution channel IV,division IV).

Conditions in the Internal InvoiceCondition type PR00 in the internal invoice shows the end customer theinvoiced amount. It serves as a source of information and is inactive.

Condition type IV01 gives the active price of the internal billing documentfor the customer. It is determined with reference to condition type PI01,and shows the amount that the supplying company code should receivefrom the ordering company code.

Condition type IV01 represents the sales revenue for the supplyingcompany code. Its costs are given by the moving average price of thematerial.




Two invoices are produced in cross-company-code sales processing:

� An invoice for the customer� An internal invoice for the ordering company code

An internal price, which has been agreed by the supplying and orderingcompany codes, is displayed in both the billing document for the customerand the internal invoice.

In the invoice for the end customer, this is the price of the delivered valuefor the profitability analysis in the ordering company code.



Figure 30: Condition type PI01

In the invoice that the ordering company code receives, an internal price isinvoiced and is a sales revenue in the profitability analysis of the supplyingcompany code.

To fulfill this double function, the system works with two calculationschemas within price determination.

Price determination in the sales order and in the invoice for the customertakes place using the standard calculation schema.

The internal invoice determines a second calculation schema. Thisschema is a copy of the standard schema. The newly set condition typeIV01, however, takes on the task of showing the internal price instead ofcondition type PI01.



Figure 31: Condition type IV01

Condition type IV01 is set in such a way that it uses condition type PI01as a reference. This means that no unique condition records exist forcondition type IV01, but in price determination in the internal invoice, therelevant condition is determined for condition type PI01.

This procedure enables the value of condition PI01 to be copied to thevalue field costs, when the invoice data is forwarded to profitabilityanalysis in the case of the billing document for the customer, and, in thecase of an internal invoice, the procedure enables condition type IV01 to becopied to the value field sales revenue.

Calculation Schema of an Internal InvoiceA calculation schema that differs from the sales order and customer billingdocument is used in the internal invoice (ICAA01 in the default).



Figure 32: Internal invoice: (Header) details

Condition type PI01 is replaced by condition type IV01 here.

In contrast to PI01, IV01 is not indicated as statistic. The same conditionvalues for both condition types result from the reference to condition typePI01 stored in the definition of the condition type.

In this way, condition PI01 represents the costs of the ordering companycode and IV01 represents the sales revenue of the supplying company code.

The use of different condition types for the internal moving average priceis thus necessary if forwarding to the profitability analysis is to occurcorrectly (component CO-PA).



Figure 33: Calculation Schema of an Internal Invoice

The calculation schema in the internal invoice is determined based on thedocument pricing procedure stored in the document type, the sales areaand the customer pricing procedure stored in the customer master.

The sales area refers to the sales area assigned to the supplying plant.

Credit-Side InvoiceThe invoice brought to the account of the ordering company code by thesupplying company code must be entered in the financial accounting of theordering company code for payment to occur. This can be done manually.

Cross-company-code sales processing can be set so that the creation of aninternal invoice in the supplying company code automatically results inthe creation of an incoming invoice in the ordering company code.

The two enterprises concerned can agree that a posting to vendor accountin the ordering company code (company code 2200) immediately occursfor internal billing documents invoiced by sales organization 1000 to salesorganization 2200.



Figure 34: Credit-side invoice

If the ordering company code wants to enter the incoming invoicemanually, an invoice document can be printed in the supplying companycode using message type RD00. This is then sent to the payer.

If automatic invoice receipt has been arranged, you need to use SDmessage control to make sure that message type RD04 is found in theinternal billing document.

In the SAP R/3 standard, message determination schema V40000 isassigned to billing type IV. This message determination schema containsthis message type.

Automatic posting to vendor account is triggered when message typeRD04 is processed. Technical conversion takes place using EDI techniques.This enables cross-company, electronical data exchange between businesspartners that can deploy different hardware, software and communicationservices. In this case, however, the data concerned is exchanged betweentwo partners within one system.

The data exchanged belongs to EDI message category INVOIC (forinvoice). The message is exchanged between a sender (vendor = supplyingcompany code) and a receiver (customer = ordering company code).

Two variants exist for the message category INVOIC.

Using variant FI, an invoice receipt is posted directly in financialaccounting. This variant is used in this process.



Using variant MM, the invoice receipt is posted via invoice verification inmaterials management. The MM variant is used for cross-company-codestock transfer.

Hint: However, you can only assign one of the two variants toeach message type.

The EDI message category INVOIC is used in the FI variant. You can finddetails about the necessary system settings (partner profiles, and so on) inthe Implemetation Guide for intercompany billing.

Figure 35: Assignment of the vendor master record for the supplyingcompany code to the ordering company code (= company code for thecredit-side invoice)

For the payable in the accounting of the ordering company code to beposted, the supplying company code must be created as the creditor(creditor 1000).





Exercise 10: Creating an Invoice for theEnd Customer

Exercise ObjectivesAfter completing this exercise, you will be able to:� Determine the company code to which the invoice is assigned

Business ExampleOnce the goods issue for the outbound delivery to your French customerhas been posted in the German branch, the invoice for the customer canbe created.

TaskAs an employee of the French sales organization, you create the customerbilling document.

1. Create the billing document as an exception in the one-step procedure,with explicit reference to the outbound delivery created in theprevious exercise.

Find out the company code and the sales organization to which theinvoice is assigned.

Company code: ___________________________________Sales organization: ___________________________________

Is the ordering or the supplying company code concerned here?

_____________________________________________________________

Save the customer billing document and make a note of the documentnumber.




Solution 10: Creating an Invoice for theEnd CustomerTaskAs an employee of the French sales organization, you create the customerbilling document.

1. Create the billing document as an exception in the one-step procedure,with explicit reference to the outbound delivery created in theprevious exercise.

Find out the company code and the sales organization to which theinvoice is assigned.

Company code: ___________________________________Sales organization: ___________________________________


_____________________________________________________________

Save the customer billing document and make a note of the documentnumber.



If necessary, enter the document number of the outbounddelivery that you noted above.

Choose Execute.

Choose Display details for document header.

Company code: 2200Sales organization: 2200

Since the invoice for the end customer is concerned here, it isassigned to the company code in which the order was entered,that is, to the ordering company code.

Choose Save.



Exercise 11: Creating an Internal Invoice

Exercise ObjectivesAfter completing this exercise, you will be able to:� Determine the company code to which the internal invoice is assigned� Explain the origin of the sales area� Explain how the system determines the payer� Explain the conditions in the internal clearing

Business ExampleFor the purposes of intercompany billing for the goods delivered by thesupplying company code to the customer of the ordering company code,the German branch now creates an internal invoice. The French branchacts as payer and invoice recipient.

TaskAs an employee of the German sales organization, you create intercompanybilling documents.

1. Create the internal billing document as an exception in the one-stepprocedure, with explicit reference to the outbound delivery createdin the previous exercise.

Determine the company code to which the internal invoice is assigned

Company code: ___________________________________


_____________________________________________________________

What does this depend on?

_____________________________________________________________


Internal invoice: ___________________________________

2. Since the internal invoice was created by a German sales organization,the sales area specified in the internal invoice differs from the salesarea specified in the customer billing document.

Determine the sales area to which the internal invoice is assigned.




Sales organization: ___________________________________Distribution channel: ___________________________________Division: ___________________________________

This sales area serves the purposes of intercompany billing. Whatdoes this depend on?

_____________________________________________________________

Where in Customizing does the corresponding assignment take place?

_____________________________________________________________

Who has made this basic setting for cross-company-code operations?

_____________________________________________________________

3. In the internal invoice, a business partner that does not seem to haveappeared in the previous business operation, appears as the payer.

Determine the payer of the internal invoice:

_____________________________________________________________

What does the payer depend on?

_____________________________________________________________

What path do you follow to find the setting in the system?

_____________________________________________________________

_____________________________________________________________

4. Display the total customer master record for the payer.

Which company code and which sales area are relevant here?

Company code: ___________________________________Sales organization: ___________________________________Distribution channel: ___________________________________Division: ___________________________________

In what currency should the customer be billed (according to masterdata), and what are the terms of payment?

Currency: ___________________________________Terms of payment: ___________________________________




5. Display the conditions screen for the item in the internal invoice.

Which condition type reflects the price that the ordering companycode has to pay to the supplying company code?

Condition type: ___________________________________

Optional

What price does condition type PR00 refer to in the internal invoice?

_____________________________________________________________

Does the amount assigned to this condition type contribute to thenet value?

_____________________________________________________________

Optional

What billing type does the internal invoice have?

_____________________________________________________________

In which object in Customizing is the default billing type forintercompany billing stored ?

_____________________________________________________________

Find this place.



Solution 11: Creating an Internal InvoiceTaskAs an employee of the German sales organization, you create intercompanybilling documents.

1. Create the internal billing document as an exception in the one-stepprocedure, with explicit reference to the outbound delivery createdin the previous exercise.

Determine the company code to which the internal invoice is assigned

Company code: ___________________________________


_____________________________________________________________

What does this depend on?

_____________________________________________________________




If necessary, enter the document number of the outbounddelivery that you noted above.

Choose Execute.

b) Choose Display details for document header.

Company code: 1000

The internal invoice is created by the supplying company codeand is directed at the ordering company code. That is why thecompany code displayed is the supplying company code.

The supplying company code corresponds to the company codeto which the supplying plant is assigned.

Choose Save.




2. Since the internal invoice was created by a German sales organization,the sales area specified in the internal invoice differs from the salesarea specified in the customer billing document.

Determine the sales area to which the internal invoice is assigned.


This sales area serves the purposes of intercompany billing. Whatdoes this depend on?

_____________________________________________________________

Where in Customizing does the corresponding assignment take place?

_____________________________________________________________

Who has made this basic setting for cross-company-code operations?

_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Billing→ Billing Document→ Display.

Choose Display details for document header.

Sales organization: 1000Distribution channel: 12Division: 00

b) The sales area that is needed for intercompany billing dependson the supplying plant.

c) Choose IMG → Sales and Distribution → Billing →Intercompany Billing→ Assign Organizational Units by Plant.

Choose Assign Organizational Units to the Plants.

You made the entries for plant 12## yourself in a previousexercise.

3. In the internal invoice, a business partner that does not seem to haveappeared in the previous business operation, appears as the payer.

Determine the payer of the internal invoice:

_____________________________________________________________





_____________________________________________________________

What path do you follow to find the setting in the system?

_____________________________________________________________

_____________________________________________________________


Payer in the internal invoice: 22000

In principle, the payer in the internal invoice corresponds to theordering company code, that is, to the enterprise in which thesales order was created.

It depends on the sales organization that creates the order.

b) Choose IMG → Sales and Distribution → Billing →Intercompany Billing→ Define Internal Customer Number BySales Organization .

Sales organization 2200⇒ Customer number for intercompanybilling 22000

4. Display the total customer master record for the payer.

Which company code and which sales area are relevant here?


In what currency should the customer be billed (according to masterdata), and what are the terms of payment?




Currency: ___________________________________Terms of payment: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→Master Data→ Business Partner→ Customer→Display→ Complete.

Enter debtor number 22000 in the initial screen:

The system accesses the master record for the payer using thesupplying company code and the sales area that is assignedto the supplying plant.

Enter the following data:

Company code: 1000



Division: 00

Choose Sales area data and then the tab pages Sales and and Billingdocument, to determine the currency (tab page Sales) and theterms of payment (tab pages Billing) of the debtor.

5. Display the conditions screen for the item in the internal invoice.

Which condition type reflects the price that the ordering companycode has to pay to the supplying company code?

Condition type: ___________________________________

Optional

What price does condition type PR00 refer to in the internal invoice?

_____________________________________________________________

Does the amount assigned to this condition type contribute to thenet value?

_____________________________________________________________

Optional

What billing type does the internal invoice have?

_____________________________________________________________

In which object in Customizing is the default billing type forintercompany billing stored ?




_____________________________________________________________

Find this place.


If you have not already done so, enter the document number ofthe internal invoice that you noted above in the initial screen.

In the internal invoice, select the item and choose Item conditions.

Condition type: V01

The condition value specified agrees with the net value of theinternal invoice.

b) Condition type PR00 refers to the price relevant for the customer.

The condition value of PR00 does not contribute to the net value,since the condition is inactive due to the subsequent price.

c) You can see the billing type in the title line, amongst others.

Billing type: IV

d) The billing type that the system uses automatically for theinternal invoice, that is, without manual intervention, is storedin the sales document type.

Choose: IMG→ Sales and Distribution→ Sales→ SalesDocuments→ Sales Document Header→Define Sales DocumentTypes .

Position on the item with sales document type TA and chooseDetails.

Billing type IV has been assigned for intercompany billing.



Exercise 12: Posting an Invoice Receipt

Exercise ObjectivesAfter completing this exercise, you will be able to:� Trigger automatic posting to the vendor account

Business ExampleAn agreement has been made between the two company codes concernedfor invoices from the German sales organization charged to the Frenchsales organization to be posted automatically as invoice receipts in theaccounting of the French company code.

This saves you from entering the invoice manually.

TaskYou can make settings for the automatic credit posting to take placedirectly when you save the internal invoice. Unless this immediate postingis absolutely essential, it is not be necessary to do this as this overloadsthe system unnecessarily. In our case therefore, we decide to collectivelytrigger the automatic credit posting for the accrued internal invoices. Thiscould take place as a background program during the night, for example.

1. Look at the internal invoice to see if the system has determinedmessage type RD04 and if the message has already been processed.

_____________________________________________________________

Process message RD04 contained in your internal invoice.

Message type: RD04

Billing document: Number of the internalinvoice noted in the previousexercise

Hint: Only process the message for the internal invoice thatyou created!

2. Optional

Make sure that the accounting document for the credit posting existsin the ordering company code.

To do this, branch to the document display within accounts payableaccounting.

What is in the field Reference?



Solution 12: Posting an Invoice ReceiptTaskYou can make settings for the automatic credit posting to take placedirectly when you save the internal invoice. Unless this immediate postingis absolutely essential, it is not be necessary to do this as this overloadsthe system unnecessarily. In our case therefore, we decide to collectivelytrigger the automatic credit posting for the accrued internal invoices. Thiscould take place as a background program during the night, for example.

1. Look at the internal invoice to see if the system has determinedmessage type RD04 and if the message has already been processed.

_____________________________________________________________

Process message RD04 contained in your internal invoice.




Message type: RD04

Billing document: Number of the internalinvoice noted in the previousexercise

Hint: Only process the message for the internal invoice thatyou created!


If you have not already done so, enter the document number ofthe internal invoice that you noted in the previous exercise inthe initial screen.

Choose Goto→ Header→Messages.

Message type RD04 was determined automatically by the systembased on the settings in message determination, and still remainsunprocessed.

b) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Billing→ Output→ Issue Billing Documents.


Message type: RD04

Billing document: Number of the internalinvoice noted in theprevious exerciseSales organization: 2200

Select Intercompany billing.

Select the relevant row and then choose Process.

2. Optional

Make sure that the accounting document for the credit posting existsin the ordering company code.

To do this, branch to the document display within accounts payableaccounting.




What is in the field Reference?

a) From the SAP Easy Access screen, choose Accounting→ FinancialAccounting→ Accounts Payable→ Document→ Display.

Choose Document list. Enter the following data:

Company code: 1000

Entry date: Current date

Choose Own documents only.

The document number of the internal invoice is stored in thefield Reference.



Lesson Summary

You should now be able to:� Determine the company code to which the invoice is assigned� Explain how the system determines the payer� Trigger automatic posting to the vendor account� Explain the conditions in the internal invoice� Explain the origin of the sales area


Unit Summary SCM680

Unit SummaryYou should now be able to:� Set up cross-company-code sales processing for certain materials� Explain when a cross-company-code sales operation exists� Assign a sales area to a plant for the purpose of intercompany billing� Maintain permitted outbound supplying plants� Explain the conditions in the sales order� Execute shipping with the help of the outbound delivery� Determine the company code to which the invoice is assigned� Explain how the system determines the payer� Trigger automatic posting to the vendor account� Explain the conditions in the internal invoice� Explain the origin of the sales area


Unit 3The Intra-Company-Code Stock

Transfer Process

Unit OverviewIn this unit, you will learn how to transfer materials between two plantswithin the same company code by means of a purchase order. You will getto know this stock transfer process from the point of view of sales anddistribution, inventory management, and shipping.


� Trigger the intra-company-code stock transfer process using a stocktransport order

� Explain which settings in SD and MM are necessary for and possiblefor stock transfer processing within a company code

� Set up the procedure for certain plants using stock transport orderswith SD deliveries

� Decide between one-step and two-step procedures� Explain the significance of a goods recipient master data record

assigned to the plant� Explain how the system determines important delivery parameters� Complete the one-step stock transfer by posting the goods issue� Explain which movement type is used� Read the status of the stock transfer operation

Unit ContentsLesson: Stock Transport Order for Intra-Company-Code Stock Transfer 129

Exercise 13: Preparations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139Exercise 14: Creating a Stock Transport Order .. . . . . . . . . . . . . . . . . . . . . . .145

Lesson: Goods Movements for Intra-Company-Code Stock Transfer. . . .151Exercise 15: Creating a Replenishment Delivery .. . . . . . . . . . . . . . . . . . . . .161


Unit 3: The Intra-Company-Code Stock Transfer Process SCM680

Exercise 16: Executing Picking and Posting a Goods Issue... . . . . . . .167


SCM680 Lesson: Stock Transport Order for Intra-Company-Code Stock Transfer

Lesson: Stock Transport Order for Intra-Company-CodeStock Transfer

Lesson OverviewIn this lesson, you will gain an overview of stock transfer options.

In this lesson, you will familiarize yourself with stock transport orders forthe transfer of material within a company code.



� Explain which settings in SD and MM are necessary for and possiblefor stock transfer processing within a company code

� Set up the procedure for certain plants using stock transport orderswith SD deliveries

� Decide between one-step and two-step procedures

Business ExampleThe enterprise has one central warehouse and several decentralizedwarehouses, which provide the technical field sales force with spareparts. The spare parts are procured by transferring stock from the centralwarehouse.

To make the processes simpler, the goods receipt at the receiving pointshould be posted automatically as soon as the goods issue is posted.

Your task is to analyze the creation of stock transport orders.

Overview of Stock Transfers and Transfer PostingsA change of the stock ID or stock type of a material is prominent intransfer postings. Transfer postings do not need to be connected to anactual goods movement. In stock transfers, however, a physical goodsmovement always takes place.



Figure 36: The stock transfer procedure

A stock transfer between two plants can be executed using differentprocedures. The procedures used to execute a stock transfer posting solelyuse the component MM - materials management.

Contrary to this are the procedures in which the stock transfer is triggeredwhen a purchase order is entered in MM purchasing.

If you work with Logistics Execution (LE) outbound delivery in the stocktransfer process, shipping activities can also be processed by SAP R/3(pick, pack, print delivery note, and so on).

If you want to use the SAP R/3 shipping functions in stock transferprocessing, you need to use the procedure Via stock transport order withLE outbound delivery for intra-company-code processes as well as theprocedure Via stock transport order with LE outbound delivery and SD billingdocument for cross-company-code stock transfers.

Stock Transfers with ShippingThe process described in this unit uses the procedure Via stock transportorder with LE outbound delivery, which is designated for intra-company-codestock transfers.



Figure 37: The intra-company-code stock transfer process

First of all, a stock transport order, with a reference to a purchaserequisition, if necessary, is entered in purchasing of plant 1400. Plant 1400uses this to internally request goods from plant 1200.

In this stock transport order, plant 1400 is the receiving plant.

When the purchase order is due for shipment, an outbound delivery iscreated. The goods can be packed, and assigned to an outbound shipment,for example.

Once the shipping procedure is complete, the goods issue is posted. Thegoods are now shipped from plant 1200 to plant 1400.

Plant 1200 is the issuing plant.

If, as in this case, you use the one-step procedure, a goods receipt does notneed to be posted in the receiving plant when the goods arrive.

Stock Transfer with Purchase OrderIn contrast to a stock transfer without a stock transport order, a stocktransfer via a stock transport order has the following advantages:

� The receipt can be planned in the receiving plant� It is possible to enter a vendor (transport vendor) in the stock

transport order



� Delivery costs can be planned in the stock transport order.� The stock transport order is included in material requirements

planning: Purchase requisitions that were created by MRP can beconverted into stock transport orders.

� The goods issue can be entered with a purchase order via shippingprocessing (LE-SHP)

� The goods receipt can be posted directly to consumption� The complete process can be followed in the purchase order history.

You can choose between two procedures for the stock transfer via shippingprocessing (LE-SHP)

Two-step procedure

In the two-step procedure with stock transport order and shippingprocessing, stock in transit is created when the goods issue is posted. Stockthat is in transit is thus monitored. You can display the stock in transit inthe stock overview for the material.

Figure 38: Two-step procedure

The stock in transit is valuated but is not for unrestricted use. It is stockedat receiving plant level.



A goods receipt is posted in the receiving plant when the goods arereceived.

Depending on the choice you make, you transfer to the unrestricted-usestock, the blocked stock, or the stock in quality inspection. Material isusually withdrawn from the unrestricted-use stock.

One-step procedure

In addition to the two-step procedure for the stock transfer procedure withstock transport order and shipping processing, a one-step procedure hasbeen available since since Release 4.0.

Figure 39: One-step procedure

Stock in transit is not created in the one-step procedure. In the goods issuethe system books stock directly to the stock in the receiving plant. In theorder item, you can define whether the receipt is to occur in the

� Unrestricted-use stock� Stock in quality inspection� Blocked stock

of the receiving plant.

Manual goods receipt posting in the receiving plant is thereforeunnecessary.



The one-step procedure makes sense if the two plants are not far apartin terms of distance, or if the receiving plant does not execute inventorymanagement in SAP R/3.

You decide in Customizing whether to work with the one-step or thetwo-step procedure. This setting depends on the issuing plant and thereceiving plant.

If you make use of the stock transfer posting in MM (without a purchaseorder reference) as the stock transfer procedure, both a one-step and atwo-step procedure are available.

In principle, stock can only be transferred from the unrestricted-use stockof the issuing plant in one-step stock transfers from one plant to another(without stock transport order). In the receiving plant, the stock can bereceived in the unrestricted-use stock or in the stock in quality inspection.

Stock Transfer and MRPYou can define the procurement type for the material within the MRPdata in the material master record of the receiving plant. You can assign aspecial procurement key to the materials that are predominantly procuredvia a stock transport order from another plant.

You define special procurement keys in the Customizing ofMRP/consumption-based planning. You define special procurement keysbased on a plant-dependent basis.

If you set up special procurement keys for stock transfers, you must definea key for each supplying plant.



Figure 40: Stock transfer in the material master record

In the case of a supply shortage, the program can generate purchaserequisitions with item category stock transfer (U) for these materials.

This requirement can be seen in the supplying plant straight away.



Figure 41: Properties of the item category stock transfer

Stock Transport OrderYou create stock transport orders for stock transfer within a company codeusing document type UB in the default.

In addition to the receiving plant, you also specify the supplying planthere. You also use the item category U (stock transfer) here.

The items can be assigned to account if the goods are ordered forconsumption and not for the warehouse.

If the material in the receiving plant has not been valuated, it is notpossible to assign it to account. In this case, the goods can only be orderedfor the warehouse.

Hint: If you use the one-step procedure, you must specify thestorage location in the receiving plant in the purchase order.

In purchasing, you can use the field external procurement storagelocation in the material master record for storage location proposals.

A stock transport order with an own MRP element is displayed in therequirements/stock overview.



Figure 42: Stock transport order

The stock transport order is considered by material requirements planningin both the receiving plant and the issuing plant.

In this way, the goods receipt in the receiving plant and the goods issue inthe issuing plant are planned in advance.

A purchase requisition or a stock transport scheduling agreement caninitiate the stock transport process. The purchase requisition can be createdin the department, or created by MRP.

You use document type NB (purchase requisition), and item category U(stock transfer) for the purchase requisition.

You use the stock transport scheduling agreement if stock transfers areto be executed in regular time intervals, or if you want to schedule thedelivery dates of a stock transfer precisely.

Moreover, you can make settings in Customizing that define whetheran availability check is executed or not in the delivering plant when apurchase order is created.

Characteristics of a stock transport order:

� The quantity of stock booked out is first stocked in the stock in transitof the receiving plant.



� Only when the goods receipt is posted is the quantity posted to thestock of the receiving plant. In this way, it is possible to monitor thequantity that is in transit.

� The transfer posting with the valuation price of the material isvaluated in the issuing plant.

If the two plants belong to different company codes, the stocktransport order is also a stock transfer from company code to companycode. In this case, two accounting documents are created when thegoods issue is posted. The offsetting entry for the stock posting occursin a company-code clearing account.




Exercise ObjectivesAfter completing this exercise, you will be able to:� Set up the procedure for certain plants using stock transport orders

with LE outbound delivery� Decide between one-step and two-step procedures

Business ExampleAt the Stuttgart location of your enterprise, only outbound deliverieswithin the framework of repairs take place. The spare parts are in a smallwarehouse that procures its stock via stock transfers from the centralwarehouse in Dresden.

Shipping for this kind of replenishment delivery should proceed in exactlythe same way as for customer deliveries. In particular, the system shouldsupport the operations pick, pack, print delivery note, and so on.

Since both locations belong to the same enterprise and transportation takesplace in a reliable way, you would like to cut out the goods receipt postingas an extra workstep in the Stuttgart plant.

Task 1Your enterprise has decided to implement intra-company-code stocktransfers with the help of stock transport orders, and to use LE outbounddelivery to execute the shipping process.

1. Where in Customizing do you define whether an LE outbounddelivery is created for stock transfers with a stock transport order?

_____________________________________________________________

_____________________________________________________________

What field does this depend on?

_____________________________________________________________

Make an entry that determines the delivery type used for thereplenishment delivery in supplying plant 12##. To do this, use thefollowing data:




Purchasing document type: UB

Supplying plant: 12##

Delivery type: NL

Checking rule: RP

Shipment scheduling should be executed.

2. Ensure that the one-step procedure is used for stock transports withsupplying plant 12## and receiving plant 14##.


Plant: 14##


Task 2In the stock transfer, the receiving plant appears as the goods recipient. Acustomer master record is necessary for this. In the stock transfer process,the system takes different shipping data such as the goods recipientaddress from this customer master record.

1. Create a customer master record that represents plant 14##.

Hint: It is not essential for you to create company code datafor the intra-company-code stock transfer process to function.

Create a debtor with the following details. Use the copy function(a template debtor).

Account group: Internal debtor

Debtor: 140##



Division: 00

Reference:Debtor: 14000



Division: 00




Address:Name: Plant 14## Stuttgart Service

Search term 1/2: 14##

Street/house number: Haeberleweg 2

Post code/place: 70000 Stuttgart

Region: 08

Transportation zone: D000070000

Control data:Partner company ID: 1000

VAT registration number: DE123456789

2. Assign customer number 140## to receiving plant 14##.



Solution 13: PreparationsTask 1Your enterprise has decided to implement intra-company-code stocktransfers with the help of stock transport orders, and to use LE outbounddelivery to execute the shipping process.

1. Where in Customizing do you define whether an LE outbounddelivery is created for stock transfers with a stock transport order?

_____________________________________________________________

_____________________________________________________________

What field does this depend on?

_____________________________________________________________

Make an entry that determines the delivery type used for thereplenishment delivery in supplying plant 12##. To do this, use thefollowing data:



Delivery type: NL

Checking rule: RP


a) Choose: IMG→ Materials Management→ Purchasing→Purchase Order→ Set Up Stock Transport Order→ AssignDelivery Type and Checking Rule.

Here, what is crucial is whether a delivery type has beenassigned to the combination of sales document type andsupplying plant. If this is the case, then LE outbound delivery isused in the shipping process.

Place your cursor on the entry that has the purchasing documenttype UB and supplying plant 12##.

Enter delivery type NL and checking rule RP.

Select the field Sent.

Choose Save.

2. Ensure that the one-step procedure is used for stock transports withsupplying plant 12## and receiving plant 14##.





Plant: 14##


a) Choose: IMG→ Materials Management → Purchasing→Purchase Order→ Set Up Stock Transport Order→ AssignDocument Type, One-Step Procedure, Underdelivery Tolerance.

Choose New Entries.

Create an entry using the above data.

Select the field One-step.

Choose Save.

Task 2In the stock transfer, the receiving plant appears as the goods recipient. Acustomer master record is necessary for this. In the stock transfer process,the system takes different shipping data such as the goods recipientaddress from this customer master record.

1. Create a customer master record that represents plant 14##.

Hint: It is not essential for you to create company code datafor the intra-company-code stock transfer process to function.

Create a debtor with the following details. Use the copy function(a template debtor).


Debtor: 140##



Division: 00




Division: 00




Address:Name: Plant 14## Stuttgart Service


Street/house number: Haeberleweg 2

Post code/place: 70000 Stuttgart

Region: 08

Transportation zone: D000070000


VAT registration number: DE123456789

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→Master Data→ Business Partner→ Customer→Create→ Sales and Distribution.

Create a customer master record using the above data and copytemplate. Copy all remaining default values.

Choose Save.


a) Choose: IMG→ Materials Management→ Purchasing→Purchase Order→ Set Up Stock Transport Order→ DefineShipping Data for Plants.

Position on the table entry plant 14##. Select this entry andchoose Details.

Assign customer number 140## to receiving plant 14##.

Choose Save.



Exercise 14: Creating a Stock TransportOrder

Exercise ObjectivesAfter completing this exercise, you will be able to:� Trigger the stock transfer process within a company code using a

stock transport order

Business ExampleThe stock of a certain replacement is running short. You need to requestreplenishment from the central warehouse in Dresden.

TaskCreate stock transport order and check stock

1. Create a stock transport order for your material T-AUE##using thefollowing data:





Company code: 1000

Material number: T-AUE##

Quantity: 300 m

Delivery date: Current date + 2 weeks

Plant: 14##

Storage location: 0001

What item category does the system use?

Familiarize yourself with the information on the tab page Shipping inthe item details. What delivery type and what goods recipient/debtorare displayed? Make a note of the shipping point and the route.





Delivery type: ___________________________________Debtor: ___________________________________Shipping point: ___________________________________Route: ___________________________________Purchase order number: ___________________________________

2. Branch to the stock overview for material T-AUE##.

What quantities exist in the unrestricted-use stock in the two plants?

Plant 12##: ___________________________________Plant 14##: ___________________________________

Under what stock type is the released quantity in plant 12## listed?

_____________________________________________________________



Solution 14: Creating a Stock TransportOrderTaskCreate stock transport order and check stock

1. Create a stock transport order for your material T-AUE##using thefollowing data:





Company code: 1000

Material number: T-AUE##

Quantity: 300 m


Plant: 14##


What item category does the system use?

Familiarize yourself with the information on the tab page Shipping inthe item details. What delivery type and what goods recipient/debtorare displayed? Make a note of the shipping point and the route.





Delivery type: ___________________________________Debtor: ___________________________________Shipping point: ___________________________________Route: ___________________________________Purchase order number: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement → Purchasing → Purchase Order → Create →Vendor/Supplying Plant Known.

Choose the document type Stock transport ord. and enter thesupplying plant.

Create a purchase order using the data specified above.

To enter the organizational data, if necessary, choose ExpandHeader and the tab page Org. data.

Enter the item data in the item overview, which, if necessary,you show using Expand Items.

b) Choose Item Details and the tab page Shipping.

Delivery type: NLDebtor: 140##Shipping point: X0##Route: R00125

Save the purchase order.

2. Branch to the stock overview for material T-AUE##.


Plant 12##: ___________________________________Plant 14##: ___________________________________





_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Order→ Display.

Double-click on Display material data. Choose Environment→Stock overview.

or:

From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→ Environment→ Stock→ Stock Overview.

In the initial screen, enter the material number and plants 12##and 14##. (Alternatively, delete the entries in the fields Plantand Storage location

Choose Execute.

Plant 12##: 2000 mPlant 14##: 50 m

Select the stock of plant 12## (by double-clicking in the row ofplant 12##, for example). The released quantity in plant 12## islisted under stock type Release stock transport order: 300 m



Lesson Summary

You should now be able to:� Trigger the intra-company-code stock transfer process using a stock

transport order� Explain which settings in SD and MM are necessary for and possible

for stock transfer processing within a company code� Set up the procedure for certain plants using stock transport orders

with SD deliveries� Decide between one-step and two-step procedures


SCM680 Lesson: Goods Movements for Intra-Company-Code Stock Transfer

Lesson: Goods Movements for Intra-Company-CodeStock Transfer

Lesson OverviewIn this lesson, you will learn about the shipping activities and goodsmovements for intra-company-code stock transfer.


� Explain the significance of a goods recipient master data recordassigned to the plant

� Explain how the system determines important delivery parameters� Complete the one-step stock transfer by posting the goods issue� Explain which movement type is used� Read the status of the stock transfer operation

Business ExampleThe enterprise has one central warehouse and several decentralizedwarehouses, which provide the technical field sales force with spareparts. The spare parts are procured by transferring stock from the centralwarehouse.

To make the processes simpler, the goods receipt at the receiving pointshould be posted automatically as soon as the goods issue is posted.

Your task is to analyze goods movements for stock transport orders.

Goods IssueA purchase order history record is automatically created in purchasing forthe replenishment delivery and for the final goods issue posting.

Delivery for Stock Transport OrderTo deliver the materials ordered by plant 1400, an outbound deliveryis first created. In the case of a stock transport process, this is called areplenishment delivery.

Replenishment deliveries are created exclusively using collective deliveryprocessing. Extend your selection of purchase orders using the relevantindicators in the selection screen. The replenishment delivery referencedocument is the stock transport order.



The document flow of the outbound delivery displays the referencedpurchase order.

Creation and processing of the outbound delivery takes place in therelevant shipping point for the stock transport process concerned. Thisshipping point must be assigned to the delivering plant in Customizing.

In the replenishment delivery, the receiving plant represents the goodsrecipient.

Figure 43: Goods recipient in the replenishment delivery

A relevant customer master record must exist for stock transfer processingto take place using LE outbound delivery. Important details such asaddress, transportation zone, and shipping condition are taken from thecustomer master record.

The master record is created in the sales area - a result of the salesorganization, distribution channel, and division for intercompany billing.These are assigned to the supplying plant in Customizing and are valid forboth cross-company-code sales and cross-company-code stock transfer.



Figure 44: Assignment of the sales area to the supplying plant

You do not need to enter company code data as long as the plant concernedis the receiving plant only in the case of intra-company-code stock transfer.

The customer number of the goods recipient is assigned to the receivingplant in Customizing.

Figure 45: Assignment of the goods recipient to the receiving plant



Since the replenishment delivery does not refer to a sales order, the systemmust, in part, determine important outbound delivery parameters in adifferent way. The delivery type to be used results from the document typeof the stock transport order and from the supplying plant. Assign thedelivery type NL (replenishment delivery) in Customizing for this.

Figure 46: Definition of the delivery type replenishment delivery

If you do not assign a delivery type, stock transport processes that areinitiated by a stock transport order are executed without outbounddelivery (different stock transfer procedure).



Figure 47: Determination of outbound delivery parameters

The item category is a result of the item category determination of thedelivery, where the criteria delivery type, the item category group of thematerial, and if necessary, the item category of the higher-level item playa role. Usage V serves as an internal indicator.

In the SAP R/3 standard, the item category NLN is assigned.

Depending on the item category, you can make settings with regards topicking, for example.

Shipping point determination occurs based on the supplying plant, theshipping condition of the customer master record that belongs to thereceiving plant, and the loading group of the material.

Shipping data (view Gen. sales/plant data) and accounting data must bemaintained for the material in the material master record of the supplyingplant.

Purchasing and accounting data from the material master record is neededfor the receiving plant.

Sales area data for sales organization units for intercompany billing mustalso be stored for the material. The item category group, for example, istaken from this.



Picking and Goods IssueThe replenishment delivery is usually processed in shipping, that is, likean outbound delivery that was created with reference to a sales order.To do this, you include the replenishment deliveries, if you use a specialnumber range for these, in the selection.

You also post the goods issue in the application LE shipping. When doingso, you refer to the replenishment delivery.

For the procedures, which do not use shipping processing, you post thegoods issue in MM inventory management.

Effects of the Goods Issue Posting (One-Step Procedure)The system creates a material document during the goods issue postingin MM inventory management. The result is that the quantity of stock isbooked out in the supplying plant. At the same time, the quantity of stockis booked in in the relevant stock type of the receiving plant if you use theone-step procedure.

The putaway also reduces the on-order stock.

Figure 48: Effects of the goods issue posting (one-step procedure)

If, however, you use the two-step procedure, stock in transit is createdin the receiving plant. This is then reduced or cancelled out when thegoods are received.



For technical reasons, the structure and, in this case, simultaneousreduction of the stock in transit also appears in the material documentfor the one-step procedure.

If the plants belong to different valuation areas, an accounting documentis created in parallel to the material document. The transfer postingwith the valuation price of the material is valuated in the issuing plant.Consequently, a price change can result in the receiving plant.

A purchase order history record is automatically created in purchasingfor the replenishment delivery and, in this case, for the final goods issueposting. In this way, it is possible for both the point of receipt and the pointof issue to follow the stock transport procedure.

In the two-step procedure, the process is completed by the goods receiptposting. A purchase order history record is also created automatically here.

Movement Types for Stock Transfer with LE Outbound DeliveryThe movement types for the goods issue for the delivery are taken fromthe schedule line category.

In the stock transport process, the system determines the schedule linecategory with help of the item category NLN in the replenishment deliveryand the MRP type from the material master record. In SAP R/3, theschedule line category NN is provided for intra-company-code stocktransfer.

The following overview shows which movement types are used in thedefault for the individual stock transfer procedures with LE outbounddelivery.



Figure 49: Movement types for stock transfer with LE outbound delivery

The corresponding movement types for one-step and two-step proceduresare assigned to schedule line category NN (for intra-company-code stocktransfer), and to schedule line category NC (for cross-company-code stocktransfer) so that you can post the goods issue from the outbound delivery.



Figure 50: Schedule line category NN (for intra-company-code stock transfer)





Exercise 15: Creating a ReplenishmentDelivery

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the significance of a goods recipient master data record

assigned to the plant� Explain how the system determines important outbound delivery

parameters

Business ExampleThe replenishment delivery is prepared at a shipping point assigned to thecentral warehouse in Dresden. The goods recipient address corresponds toan unloading point at the receiving plant.

The fact that the delivery is not intended for an external business partnershould not make a great difference to the creation of a replenishmentdelivery and further shipping processing.

TaskTo execute the shipping activities, you are an employee of shipping pointX0## that operates for plant 12##. To create the replenishment delivery,you use the collective processing function.

1. Deliver the stock transport order created in the previous exerciseby processing the pool of sales orders due for shipment, and thepurchase orders for shipping point X0##.


Delivery Creation Date to: Current date + 2 weeks

Make a note of the outbound delivery number:


Who is the goods recipient in the outbound delivery document?

_____________________________________________________________

To which address is the replenishment delivery sent?

_____________________________________________________________




2. Based on which assignment in the system does the system determinethe goods recipient in the replenishment delivery?

3. Take the delivery type and the item category from the replenishmentdelivery.

Delivery type: ___________________________________Item category: ___________________________________

In your case, what does the delivery type depend on?

1. __________________________________________________________

2. __________________________________________________________

Look for the setting in the system.

Menu path:

_____________________________________________________________

What settings would you have had to make in the system preparationsfor this topic, if you did not want to use LE outbound delivery whentransferring stock?

_____________________________________________________________

_____________________________________________________________



Solution 15: Creating a ReplenishmentDeliveryTaskTo execute the shipping activities, you are an employee of shipping pointX0## that operates for plant 12##. To create the replenishment delivery,you use the collective processing function.



Delivery Creation Date to: Current date + 2 weeks




_____________________________________________________________

To which address is the replenishment delivery sent?




_____________________________________________________________


Enter the shipping point X0## and the Delivery Creation Date.Choose Execute.

In the list, select the row that refers to the purchase order youcreated in the previous exercise. Choose Create Delivery inBackground.


c) Choose Display Document or

From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Shipping and Transportation→ Outbound Delivery→ Display.

Goods recipient: 140##

The shipping address for the replenishment delivery is takenfrom the goods recipient�s customer master record:

Plant 1420 Stuttgart / Haeberleweg 2 / D-70000 Stuttgart

Choose Address alongside the field Goods Recipient to displayfurther data.

2. Based on which assignment in the system does the system determinethe goods recipient in the replenishment delivery?

a) At the start of the exercises for this unit, you made the followingsetting:

Choose: IMG→ Materials Management→ Purchasing→Purchase Order→ Set Up Stock Transport Order→ DefineShipping Data for Plants.


Customer number 140## is assigned to plant 14##.

3. Take the delivery type and the item category from the replenishmentdelivery.






1. __________________________________________________________

2. __________________________________________________________

Look for the setting in the system.

Menu path:

_____________________________________________________________

What settings would you have had to make in the system preparationsfor this topic, if you did not want to use LE outbound delivery whentransferring stock?

_____________________________________________________________

_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Shipping and Transportation→ Outbound Delivery→ Display.

Choose Header Details and then the tab page Org. Data.

Delivery type: NL

Choose the item overview.

Item category: NLN

b) The delivery type used in your example for intra-company-codestock transfer depends on:

1. Purchasing document type UB

2. Delivering plant 12##

Choose: IMG→ Materials Management → Purchasing→Purchase Order→ Set Up Stock Transport Order→ AssignDelivery Type and Checking Rule.

Delivery type NL is assigned to the combination of sales documenttype UB and Supplying plant 12##.

c) If you do not want to make use of LE outbound delivery whenyou transfer stock, you should not assign a delivery type to thecombination of sales document type UB and supplying plant 12##.





Exercise 16: Executing Picking andPosting a Goods Issue

Exercise ObjectivesAfter completing this exercise, you will be able to:� Complete the one-step stock transfer by posting the goods issue� Explain which movement type is used� Read the status of the stock transfer operation

Business ExampleThe shipping activities pick, pack, print delivery note, and so on should beexecuted on the basis of the outbound delivery.

Since you are workingwith the one-step procedure, the goods issue postingshould automatically trigger a goods receipt posting in the receiving plant.

TaskYou are an employee in the supplying plant and responsible for pickingand goods issue postings.

1. Trigger picking by creating a transfer order for the replenishmentdelivery that you created.

Hint: Depending on the menu path that you use to createthe transfer order, you need to enter the warehouse number(012) if necessary.

2. Post the goods issue for your replenishment delivery in the one-stepprocedure or in collective processing.

3. Branch again to the stock overview for material T-AUE##. Whatquantities now exist in the unrestricted-use stock in the two plants?

Plant 12##: ___________________________________Plant 14##: ___________________________________

Describe what the current situation would be had you used thetwo-step procedure. Which stock type in which plant would have anentry?

_____________________________________________________________




_____________________________________________________________

4. Call the document flow for your replenishment delivery. Branch fromthe document flow to the material document display.

Which movement types did the system use?

M. type of goods issue: ___________________________________M. type of goods receipt: ___________________________________

5. In purchasing of the receiving plant, an enquiry about the progress ofthe stock transfer process is made. Display the purchase order history.



Solution 16: Executing Picking andPosting a Goods IssueTaskYou are an employee in the supplying plant and responsible for pickingand goods issue postings.

1. Trigger picking by creating a transfer order for the replenishmentdelivery that you created.




Shipping Point/ReceivingPoint:

X0##

Picking Date to: Current date +2 weeks

Choose Execute.










X0##

Planned goods movementdate:

Current date + 2 weeks

Choose Execute.



3. Branch again to the stock overview for material T-AUE##. Whatquantities now exist in the unrestricted-use stock in the two plants?

Plant 12##: ___________________________________Plant 14##: ___________________________________

Describe what the current situation would be had you used thetwo-step procedure. Which stock type in which plant would have anentry?

_____________________________________________________________




_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→ Environment→ Stock→ Stock Overview.

In the initial screen, enter the material number T-AUE## andplants 12## and 14##. (Alternatively, delete the entries in thefields Plant and Storage location

Choose Execute.

Plant 12##: 1700 mPlant 14##: 350 m

b) Had you used the two-step procedure, the following quantitieswould be in the unrestricted-use stock of the two plants:

Plant 12##: 1700 mPlant 14##: 50 m

In addition, the stock type stock in transit in plant 14##wouldhave an entry, since a receipt posting to the stock in transit of thereceiving plant would occur.



M. type of goods issue: ___________________________________M. type of goods receipt: ___________________________________


Choose Environment→ Document Flow or the symbol

In the document flow, place the cursor on the material documentStock transfer to stock in transit and choose Display Document.

M. type of goods issue: 647M. type of goods receipt: 101




5. In purchasing of the receiving plant, an enquiry about the progress ofthe stock transfer process is made. Display the purchase order history.


Choose the tab page purchase order history in the item details.

In addition to the material document of the goods receipt, thedelivery and the material document of the goods issue are alsolisted in the purchase order history for the stock transport order.



Lesson Summary

You should now be able to:� Explain the significance of a goods recipient master data record



Unit Summary SCM680

Unit SummaryYou should now be able to:� Trigger the intra-company-code stock transfer process using a stock

transport order� Explain which settings in SD and MM are necessary for and possible

for stock transfer processing within a company code� Set up the procedure for certain plants using stock transport orders

with SD deliveries� Decide between one-step and two-step procedures� Explain the significance of a goods recipient master data record



Unit 4The Cross-Company-Code Stock

Transfer Process

Unit OverviewIn this unit, you will learn how to transfer materials between two plantsthat belong to differing company codes, by means of a purchase order.You will get to know this stock transfer process with delivery and billingdocument/invoice from the point of view of materials management andsales and distribution.



� Explain the reasons for the choice of the delivery type� List the effects of goods issue posting in Inventory Management� Determine the company code to which the internal invoice is assigned� Explain the origin of the sales area� Explain how the system determines the payer� Post the goods issue for a replenishment delivery� Post the invoice receipt in the invoice verification

Unit ContentsLesson: Stock Transport Order for Cross-Company-Code StockTransfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177

Exercise 17: Preparations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183Exercise 18: Creating a Stock Transport Order .. . . . . . . . . . . . . . . . . . . . . . .191

Lesson: Transactions/Events in the Issuing Company Code... . . . . . . . . . . .197Exercise 19: Creating a Replenishment Delivery .. . . . . . . . . . . . . . . . . . . . .205Exercise 20: Executing Picking and Posting a Goods Issue... . . . . . . .211Exercise 21: Creating an Internal Invoice .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219

Lesson: Transactions/Events in the Receiving Company Code ... . . . . . . .225


Unit 4: The Cross-Company-Code Stock Transfer Process SCM680

Exercise 22: Posting a Goods Receipt .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229Exercise 23: Posting an Invoice Receipt for the Purchase Order .. .233


SCM680 Lesson: Stock Transport Order for Cross-Company-Code Stock Transfer

Lesson: Stock Transport Order for Cross-Company-CodeStock Transfer

Lesson OverviewIn this lesson, you will familiarize yourself with stock transport orders fortransferring material between two company codes.



� Explain the reasons for the choice of the delivery type

Business ExampleThe enterprise procures some materials by transferring stock from anothercompany belonging to the same group.

It should be possible to post the goods issue and goods receipt in separatework steps if the two branches are too far apart. Immediate goods receiptposting does not thus make sense.

Your task is to analyze the creation of stock transport orders.

Stock Transport Order for Cross-Company-Code StockTransferA stock transport order that includes delivery and a billing document is ahybrid of a standard purchase order and a stock transport order:

� As in the case of a stock transport order, the transfer of stock fromone place to another is monitored

� As in the case of standard purchase orders, when items are created(items with item category standard), price determination is executed,and shipping data is determined.

The characteristics of a stock transport order for cross-company-code stocktransfer differ from those of the previous unit.

� The quantity of stock booked out is (in the case of the two-stepprocedure) neither stocked in the issuing or the receiving plant.



Only during the goods receipt posting is the quantity posted to theunrestricted-use stock of the receiving plant (or to the stock in qualityinspection or to the blocked stock, if, for example, this was defined inthe purchase order item).

� In the stock overview, the quantity transferred is designated ascross-company-code stock in transit after the goods issue.

In the stock display, this stock is dynamically determined.

� During the transfer posting, price determination is executed in bothsales and distribution (SD), and in purchasing:

� In purchasing, the price for the material is determined in theusual way, from the info record, for example.

� In sales and distribution, the price is determined in the usualway, that is, in the billing document.

� The goods movements are valuated at the price determined in therelevant price determination.

Accounting documents are created in the following operations:

� Goods issue� Goods receipt� Billing� Invoice receipt

OverviewIn contrast to intra-company-code stock transfer, the two plants describedin the process in this unit belong to two different company codes.The stock transfer procedure described as �intra-company-code stocktransfer� at the beginning of this unit will be described in this unit usingLE outbound delivery and the SD billing document. This is to be used forcross-company-code stock transfers as long as SAP R/3 functions forshipping processing and billing are to be used in the process flow.



Figure 51: The cross-company-code stock transfer process

First of all, a stock transport order is created in the receiving plant (plant2200).

As soon as the stock transport order is due for shipping, an outbounddelivery is created. Once the shipping activities have been executed, thegoods issue is posted in the supplying plant (plant 1200).

The goods are then transported between plants1200 and 2200.

Finally, an internal invoice is created in sales organization 1000, that is, inthe supplying company code. In this way, intercompany billing can takeplace between the company codes involved.

Since the two-step procedure is used, the goods receipt is posted in thereceiving plant once the goods have been received.

Once the the invoice arrives, it can be entered in the Logistics InvoiceVerification of the receiving company code.

Creating a Stock Transport OrderThe stock transfer process begins when you enter a stock transport orderin purchasing of the receiving plant. If necessary, this takes place withreference to a purchase requisition. You can also work with a schedulingagreement here.

You use the order type NB (standard purchase order) as the default.



In the Customizing of purchasing, you can control whether a warningmessage or an error message occurs if you enter an unsuitable order type(UB, for example).

The stock transport order is taken into account in material requirementsplanning of the supplying plant and the receiving plant.

Depending on the settings in the system, it is possible, with the help ofan availability check in the supplying plant, to determine whether therequested goods will be available on time or not.

Order TypesIn contrast to intra-company-code stock transfer, the order type UB is notused for the stock transport order for cross-company-code stock transferwith outbound delivery and billing document.

Figure 52: Order types for the stock transfer procedure

You create a standard purchase order (order type NB) with item categorynormal (� �/blank). In the case of intra-company-code stock transfer, youuse the item category stock transfer (U).

You specify a vendor when creating a stock transport order with ordertype NB. The supplying plant is assigned to this vendor in the vendormaster record.



If a vendor is specified when a stock transport order is created, the plant isautomatically copied from the vendor master record to the stock transportorder.

However, if you created a stock transport order with order type UB, youcan directly specify the supplying plant.

In the order item itself, you always specify the receiving plant.

For this type of stock transport order, the stock transfer is not posted atthe valuation price of the material in the issuing plant. Instead, the priceof the stock transfer is determined by conditions in both the issuing andthe receiving plant.

To do this, you can use a purchasing info record to maintain the purchaseorder price for the material and for the supplying company code from thepoint of view of the receiving company code. Once again, you use thevendor number of the supplying plant to do this.






Exercise ObjectivesAfter completing this exercise, you will be able to:� Set up the procedure for certain plants in different company codes

using stock transport orders with LE outbound deliveries and SDinvoices

Business ExampleSome materials are procured by the Paris location of the French branchof your enterprise via a stock transfer from the central warehouse of theGerman branch in Dresden. Shipping for this kind of replenishmentdelivery should proceed exactly in the sameway as for customer deliveries.

As the two locations are too far away from each other, the goods receiptis not posted in the receiving plant at the same time as the good issue isposted.

Task 1Your enterprise has decided to implement cross-company-code stocktransfers with the help of stock transport orders, and to use LE outbounddelivery to execute the shipping process. Intercompany billing then occursusing the SD billing document.

1. Make an entry that determines a used delivery type for replenishmentdeliveries in cross-company-code stock transfers in the supplyingplant 12##. To do this, use the following data:

Purchasing document type: NB


Delivery type: NLCC

Checking rule: RP


2. Ensure that the two-step procedure is used for stock transfers withsupplying plant 12##and receiving plant 22##. Make a correspondingentry.


Plant: 22##





Task 2In your scenario, plant 22## represents the goods recipient and the payer.A customer master record is necessary for this. In the stock transferprocess, different shipping and billing data such as the goods recipientaddress and terms of payment is taken from this customer master record.

1. Create a customer master record, that is to represent plant 22## fromthe accounting and the sales view (that is, Total).

Create a debtor with the following details. Use the copy function(use a reference debtor).


Debtor: 220##

Company code: 1000



Division: 00


Company code: 1000



Division: 00

Address:Name: Division 22## Paris


Street/house number: rue des Erables 32

Post code/place: 75015 Paris

Region: 75

Transportation zone: F000010000


VAT registration number: FR93341612695




Sales area data/billing document:Tax classification: 0


3. Supplying plant 12## is to be represented by vendor master recordT-S100##. Store the relevant entry in the vendor master record.


4. OptionalMust you enter a sales area for receiving plant 22## for the purposesof intercompany billing, for your cross-company-code stock transferprocess to function correctly? Give reasons for your answer.



Solution 17: PreparationsTask 1Your enterprise has decided to implement cross-company-code stocktransfers with the help of stock transport orders, and to use LE outbounddelivery to execute the shipping process. Intercompany billing then occursusing the SD billing document.

1. Make an entry that determines a used delivery type for replenishmentdeliveries in cross-company-code stock transfers in the supplyingplant 12##. To do this, use the following data:



Delivery type: NLCC

Checking rule: RP


a) Choose: IMG→ Materials Management→ Purchasing→Purchase Order→ Set Up Stock Transport Order→ AssignDelivery Type and Checking Rule.

Place your cursor on the entry that has the purchasing documenttype NB and the supplying plant 12##.

Enter delivery type NLCC and checking rule RP.

Select the field Shipping date.

Choose Save.

2. Ensure that the two-step procedure is used for stock transfers withsupplying plant 12##and receiving plant 22##. Make a correspondingentry.





Plant: 22##


a) Choose: IMG→ Materials Management → Purchasing→Purchase Order→ Set Up Stock Transport Order→ AssignDocument Type, One-Step Procedure, Underdelivery Tolerance.

Choose New Entries.

Create an entry using the above data.

Do not select the field One-step.

Choose Save.

Task 2In your scenario, plant 22## represents the goods recipient and the payer.A customer master record is necessary for this. In the stock transferprocess, different shipping and billing data such as the goods recipientaddress and terms of payment is taken from this customer master record.

1. Create a customer master record, that is to represent plant 22## fromthe accounting and the sales view (that is, Total).

Create a debtor with the following details. Use the copy function(use a reference debtor).


Debtor: 220##

Company code: 1000



Division: 00


Company code: 1000



Division: 00




Address:Name: Division 22## Paris


Street/house number: rue des Erables 32

Post code/place: 75015 Paris

Region: 75

Transportation zone: F000010000


VAT registration number: FR93341612695

Sales area data/billing document:Tax classification: 0

a) From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→Master Data→ Business Partner→ Customer→Create→ Complete.

Create a customer master record using the above data and copytemplate. Copy all remaining default values.

Choose Save.


a) Choose: IMG→ Materials Management→ Purchasing→Purchase Order→ Set Up Stock Transport Order→ DefineShipping Data for Plants.


Assign customer number 220## to receiving plant 22##.

Choose Save.

3. Supplying plant 12## is to be represented by vendor master recordT-S100##. Store the relevant entry in the vendor master record.





a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→Master Data→ Vendor→ Purchasing→ Change (Current).

In the initial screen, enter the creditor number and the salesorganization named above.

Select the view Purchasing Data and choose Enter.

Choose Extras→ Add.purchasing data and enter 12## in the fieldPlant.

Choose Save.

4. Optional

Must you enter a sales area for receiving plant 22## for the purposesof intercompany billing, for your cross-company-code stock transferprocess to function correctly? Give reasons for your answer.

Answer:For a stock transfer process using LE outbound delivery andSD billing document to function correctly, a sales organization,distribution channel and division for intercompany billing need to beassigned merely to the supplying plant. These organizational unitsdo not need to be assigned for the receiving plant, since its role is likethat of a customer in the process. Rather, the related customer masterrecord must exist in the corresponding sales area.





Exercise 18: Creating a Stock TransportOrder

Exercise ObjectivesAfter completing this exercise, you will be able to:� Trigger the cross-company-code stock transfer process using a stock

transport order

Business ExampleA certain material is required in a department in the French branch.It should now be procured by means of a stock transfer by the centralwarehouse of the German branch of the group.

TaskCreate stock transport order and check stock

1. Create a purchase order for the stock transfer of your materialT-AUD##using the following data:

Vendor: T-S100##




Company code: 2200

Material number: T-AUD##

Quantity: 30 pc.


Plant: 22##


Is the plant that you specified in the purchase order the supplyingor receiving plant?

Plant 22##: ___________________________________

Which shipping point will process the outbound delivery?




Shipping point: ___________________________________

Make a note of the purchase order number.


2. Branch to the stock overview for material T-AUD##.


Plant 12##: ___________________________________Plant 22##: ___________________________________


_____________________________________________________________



Solution 18: Creating a Stock TransportOrderTaskCreate stock transport order and check stock

1. Create a purchase order for the stock transfer of your materialT-AUD##using the following data:

Vendor: T-S100##




Company code: 2200

Material number: T-AUD##

Quantity: 30 pc.


Plant: 22##


Is the plant that you specified in the purchase order the supplyingor receiving plant?

Plant 22##: ___________________________________

Which shipping point will process the outbound delivery?

Shipping point: ___________________________________

Make a note of the purchase order number.






Choose the document type Standard PO and enter the vendornumber.

Create a purchase order using the data specified above.

To enter the organizational data, if necessary, choose ExpandHeader and the tab page Org. data.

Enter the item data in the item overview, which, if necessary,you show using Expand Items.

b) The plant which you explicitly specified in the purchase orderis the receiving plant.

c) Choose Item Details and the tab page Shipping.

Shipping point: X0##

Save the purchase order.

2. Branch to the stock overview for material T-AUD##.


Plant 12##: ___________________________________Plant 22##: ___________________________________





_____________________________________________________________


Double-click on Display material data. Choose Environment→Stock overview.

or:

From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→ Environment→ Stock→ Stock Overview.

In the initial screen, enter the material number and plants 12##and 9.98kg#. (Alternatively, delete the entries in the fields Plantand Storage location

Choose Execute.

Plant 12##: 10,000 pc.Plant 22##: 5 pc.

Select the stock of plant 12## (by double-clicking in the row ofplant 12##, for example). The quantity released in plant 12## islisted under stock type Release stock transport order: 30 pc.



Lesson Summary

You should now be able to:� Trigger the intra-company-code stock transfer process using a stock

transport order� Explain the reasons for the choice of the delivery type


SCM680 Lesson: Transactions/Events in the Issuing Company Code

Lesson: Transactions/Events in the Issuing CompanyCode

Lesson OverviewIn this lesson, you will get to know the shipping activities andintercompany billing in the issuing company code.


� List the effects of goods issue posting in Inventory Management� Determine the company code to which the internal invoice is assigned� Explain the origin of the sales area� Explain how the system determines the payer



It is your task to analyze the delivery and intercompany billing for thestock transport order.

Goods Issue for Cross-Company-Code StockTransportThe goods issue process for cross-company-code stock transfer is executedin the same way as in the case of intra-company-code stock transfers.

Replenishment DeliveryAt the start of shipping activities, a replenishment delivery is created.The replenishment delivery is created in the appropriate shipping pointexclusively in collective delivery processing, where purchase orders areused to make selections.

Determination of the goods recipient and the remaining outbound deliveryparameters takes place in exactly the same way as intra-company-codestock transfer: A customer number is assigned to the receiving plant inCustomizing.

The same setting as in intra-company-code stock transfer is used.



The combination of delivery type NB and supplying plant refers to adelivery type. Use the delivery type NLCC to do this (Cross-companyreplenishment).

Figure 53: Delivery type Cross-company replenishment

Picking and Goods IssueAs in the case of cross-company-code stock transfer, the replenishmentdelivery is processed in shipping.

If, however, differences occur in processing in comparison to outbounddeliveries for sales orders or for replenishment deliveries in the caseof intra-company-code stock transfers, these can be determined in theCustomizing of the delivery type and of the item category.

If necessary, the replenishment delivery can be packed or planned for anoutbound shipment. Once shipping activities have been completed, thegoods issue is posted in LE shipping for the replenishment delivery.



Movement Type Determination

Figure 54: Movement type determination

When posting the goods issue for the replenishment delivery, the systemneeds to know which movement type to use. This results from theschedule line category, which itself is determined in a three step event.

In Customizing, you assign the delivery type NLCC to the combination ofdelivery type NB and supplying plant.

Using the delivery type and the item category group of the material, itemcategory determination of the delivery ensures that the item categoryNLC is found for standard items, that is, for materials that have the itemcategory group NORM.

The schedule line category NC is usually determined for the item categoryNLC and for materials with any MRP type. For deviant settings, maintainschedule line category determination accordingly.

In the standard setting for the schedule line category NC, settings havebeen made for movement type 643 to be used for the two-step procedure,and for movement type 645 to be used for the one-step procedure.



Figure 55: Settings for the schedule line category NC

The movement types for one and two-step procedures inintra-company-code stock transfer are determined in the same way withthe help of the assignment of the delivery type, and item and scheduleline category determination.

Changes to Stock after Goods Issue (Two-Step Procedure)The goods issue posting causes the stocks in the stock typesUnrestricted-usestock and Delivery to customer to change in the stock overview of thesupplying plant, since the goods have left the plant due to an outbounddelivery (in this case, a replenishment delivery).

In the same way, the stock accounts and material usage accounts wereupdated accordingly in the financial accounting of the supplying companycode, whereupon the valuation price of the material enters the supplyingplant.



Figure 56: Changes to stock after goods issue (two-step procedure)

In the two-step procedure for cross-company-code stock transfer, the goodshave not yet been booked in in the receiving plant. In terms of accounting,the goods do not yet belong to the company code of the receiving plant.

Both unrestricted-use stock and on-order stock remain unchanged. Thequantity that is currently being shipped is assigned as cross-company-codestock in transit. The value of the cross-company-code stock in transit can bedisplayed cumulatively for a plant or a company code.

Internal Invoice for Cross-Company-Code StockTransferCreating an Internal InvoiceFor the purposes of intercompany billing, the supplying company code(company code 1000) creates an invoice for the goods delivered to thereceiving plant.

The internal invoice is created by sales organization 1000. This is thesales organization responsible for intercompany billing assigned to thesupplying plant in Customizing. The same setting is also relevant forintercompany billing in the case of cross-company-code sales.

The internal invoice is created with explicit reference to the replenishmentdelivery, or in collective processing. When processing the billing due list,you need to set the intercompany billing indicator.



In the case of a corresponding agreement between the enterprises involved,the system can be set in such a way that invoice receipt is automaticallytriggered in the Logistics Invoice Verification of company code 2200 oncean internal invoice has been created.

Automatic invoice receipt takes place in the same way ascross-company-code sales based on the message control of the invoice inconnection with EDI techniques. In this case, the EDI message categoryINVOIC is used in the MM variant.

Elements of an Internal InvoiceThe proposal for the billing type of the internal invoice is taken from theorder type DL, which, in Customizing, is assigned to the delivery typeNLCC as the default order type for deliveries without reference to orders.


The payer is a result of the assignment of a customer number to thereceiving plant. This setting is also used to determine the goods recipientin the case of replenishment deliveries.

The company code in the internal invoice is the supplying company code,that is the company code of the supplying plant.



The sales area is assigned to the supplying plant in Customizing.The sales area also applies for intra-company-code stock transfer andcross-company-code sales.





Exercise 19: Creating a ReplenishmentDelivery

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the reasons for the choice of the delivery type

Business ExampleTo process shipping, the replenishment delivery is created in a shippingpoint assigned to the central warehouse in Dresden.

TaskTo execute the shipping activities, you are an employee of shipping pointX0## that operates for plant 12##. To create the replenishment delivery,you use the collective processing function.



Delivery creation date to: Current date + 2 weeks




_____________________________________________________________

2. Determine the delivery type and the item category in thereplenishment delivery.



1. __________________________________________________________

2. __________________________________________________________Continued on next page



3. Optional

In which basic setting do the two delivery types for stock transferdiffer from a delivery type that is used for outbound deliveries withreference to sales orders?

Field name: ___________________________________

Look for the corresponding setting for delivery type NLCC.

Menu path:

_____________________________________________________________



Solution 19: Creating a ReplenishmentDeliveryTaskTo execute the shipping activities, you are an employee of shipping pointX0## that operates for plant 12##. To create the replenishment delivery,you use the collective processing function.



Delivery creation date to: Current date + 2 weeks







_____________________________________________________________


Enter the shipping point X0## and the Delivery creation date.Choose Execute.

In the list, select the row that refers to the purchase order youcreated in the previous exercise. Choose Create Delivery inBackground.


c) Choose Display Document or

From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→ Shipping and Transportation→ Outbound Delivery→ Display.

Goods recipient: 220##

The shipping address for the replenishment delivery is takenfrom the goods recipient�s customer master record:

IDES France SA / 31, rue des Erables / F-75015 Paris

Choose Address alongside the field Goods Recipient to displayfurther data.

2. Determine the delivery type and the item category in thereplenishment delivery.



1. __________________________________________________________




2. __________________________________________________________


Choose Header Details and then the tab page Org. Data.

Delivery type: NLCC

Choose the item overview.

Item category: NLC

b) The delivery type used in your example for cross-company-codestock transfer depends on:

1. Purchasing document type NB

2. Delivering plant 12##

3. Optional

In which basic setting do the two delivery types for stock transferdiffer from a delivery type that is used for outbound deliveries withreference to sales orders?

Field name: ___________________________________

Look for the corresponding setting for delivery type NLCC.

Menu path:

_____________________________________________________________

a) In the field �order required�, the system defines which typeof preceding document is needed for a delivery with thecorresponding delivery type.

Choose IMG→ Logistics Execution→ Shipping→ Deliveries→Define Delivery Types.

Position on the item with the delivery type NLCC and chooseDetails.

The field Order required contains the entry Purchase order required.





Exercise 20: Executing Picking andPosting a Goods Issue

Exercise ObjectivesAfter completing this exercise, you will be able to:� List the effects of goods issue posting in Inventory Management� Explain how the movement type is determined

Business ExampleOn completion of shipping activities, and once the goods have been issued,the issue should be entered in the inventory management of the supplyingplant. The receipt posting in the receiving plant should take place oncethe material is received in the receiving plant.

TaskYou are an employee in the supplying plant and responsible for pickingand goods issue postings.

1. Start with packing by creating a transfer order for the replenishmentdelivery that you created.



3. Branch to the stock overview for material T-AUD## again. Whatquantities now exist in the unrestricted-use stock in the two plants?

Plant 12##: ___________________________________Plant 22##: ___________________________________

How high is the on-order stock in plant 22##?

On-order stock: ___________________________________

Under which stock type and under which plant is the quantity that iscurrently being shipped listed?




Plant: ___________________________________Stock type: ___________________________________



M. type of goods issue: ___________________________________

Which Customizing object is the movement type attached to?

1. __________________________________________________________

5. Optional

You want to check why, in the above exercise, the system used themovement type that you determined.

Which parameters help the system to determine the schedule linecategory?

1. __________________________________________________________

2. __________________________________________________________

From the schedule line category assignment, pick out the relevantentry for this example:



___________________________________

Display the definition of the schedule line category that you havejust picked out. Which movement type has been stored there for thetwo-step procedure?

Movement type: ___________________________________



Solution 20: Executing Picking andPosting a Goods IssueTaskYou are an employee in the supplying plant and responsible for pickingand goods issue postings.

1. Start with packing by creating a transfer order for the replenishmentdelivery that you created.





X0##

Picking Date to: Current date + 2 weeks

Choose Execute.










X0##

Planned goods movementdate:

Current date + 2 weeks

Choose Execute.



3. Branch to the stock overview for material T-AUD## again. Whatquantities now exist in the unrestricted-use stock in the two plants?

Plant 12##: ___________________________________Plant 22##: ___________________________________

How high is the on-order stock in plant 22##?

On-order stock: ___________________________________

Under which stock type and under which plant is the quantity that iscurrently being shipped listed?




Plant: ___________________________________Stock type: ___________________________________


In the initial screen, enter the material number T-AUD##andplants 12## and 22##. (Alternatively, delete the entries in thefields Plant and Storage location

Choose Execute.

Plant 12##: 9,970 pc.Plant 12##: 5 pc.

b) Select the stock of plant 22## (by double-clicking in the row ofplant 22##, for example).

On-order stock: 30 pc.

The quantity currently being shipped is listed in a special stockin transit.

Plant: 22##Stock type: Cross-company-code stock in

transit



M. type of goods issue: ___________________________________

Which Customizing object is the movement type attached to?




1. __________________________________________________________


Choose Environment→ Document Flow or the symbol

In the document flow, place the cursor on the material documentUL An Cross Company and choose Display Document .

M. type of goods issue: 643

b) The movement type is defined by the schedule line category.

5. Optional

You want to check why, in the above exercise, the system used themovement type that you determined.

Which parameters help the system to determine the schedule linecategory?

1. __________________________________________________________

2. __________________________________________________________

From the schedule line category assignment, pick out the relevantentry for this example:



___________________________________

Display the definition of the schedule line category that you havejust picked out. Which movement type has been stored there for thetwo-step procedure?




Movement type: ___________________________________

a) The assignment of the schedule line category depends on:

1. The item category

2. The MRP type from the material master record

b) Choose: IMG → Sales and Distribution → Sales → SalesDocuments→ Schedule Lines→ Assign Schedule Line Categories.


Item category: NLCMRP type: � � (blank)

Schedule line category NC has been assigned as the defaultvalue for item category NLC (Field SchLC).

Hint: Since the MRP type has not been specified in theschedule line category assignment for item categoryNLC, you do not need to determine the MRP type fromthe material master record of material T-AUD##.

c) Choose: IMG → Sales and Distribution → Sales → SalesDocuments→ Schedule Lines→ Define Schedule Line Categories.

Position on the item with the schedule line category NC andchoose Details.

Movement type: 643

The fieldMovement type 1-step contains the movement type thatthe system would use in the one-step procedure.





Exercise 21: Creating an Internal Invoice

Exercise ObjectivesAfter completing this exercise, you will be able to:� Determine the company code to which the internal invoice is assigned� Explain the origin of the sales area� Explain how the system determines the payer

Business ExampleFor the purposes of intercompany billing for the goods delivered by thesupplying German company code to the French branch, the Germanbranch now creates an internal invoice.

This work step should not differ substantially from the billing of acustomer. The SD billing document is thus used to do this.

The invoice is to be sent by post to the French company code. The twocompanies have made an agreement that automatic invoice receipt doesnot take place when the internal invoice is created.

TaskCreate the internal billing document as an exception in the one-stepprocedure, with explicit reference to the replenishment delivery youcreated in the previous exercise.

1. Create the billing document in the one-step procedure.

Find out the company code and the sales area to which the internalinvoice is assigned.


Who is the payer, and what are the terms of payment?

Payer: ___________________________________Terms of payment: ___________________________________




Save the internal billing document and make a note of the documentnumber.


2. You want to clarify the origin of several entries in the internal invoice:

Where does the system draw the terms of payment from?

_____________________________________________________________


_____________________________________________________________

What sales area does the system use to access the master record todetermine the terms of payment?


How does the system determine these organizational units?

Menu path:

_____________________________________________________________

_____________________________________________________________



Solution 21: Creating an Internal InvoiceTaskCreate the internal billing document as an exception in the one-stepprocedure, with explicit reference to the replenishment delivery youcreated in the previous exercise.

1. Create the billing document in the one-step procedure.

Find out the company code and the sales area to which the internalinvoice is assigned.


Who is the payer, and what are the terms of payment?

Payer: ___________________________________Terms of payment: ___________________________________

Save the internal billing document and make a note of the documentnumber.






If necessary, enter the document number of the replenishmentdelivery that you noted in the previous exercise.

Choose Execute.

b) Choose Display details for document header.

Company code: 1000Sales organization: 1000Distribution channel: 12Division: 00

The company code refers to the supplying company code.

Payer: 220##Terms of payment: ZB01

Choose Save.

2. You want to clarify the origin of several entries in the internal invoice:

Where does the system draw the terms of payment from?

_____________________________________________________________


_____________________________________________________________

What sales area does the system use to access the master record todetermine the terms of payment?


How does the system determine these organizational units?

Menu path:

_____________________________________________________________




_____________________________________________________________

a) The term of payment is taken from the payer�s customer masterrecord.

b) The payer is determined via the partner roles from the customermaster record that was assigned to the receiving plant.

From the SAP Easy Access screen, choose Logistics→ Sales andDistribution→Master Data→ Business Partner→ Customer→Display→ Sales and Distribution.

In the initial screen, enter debtor 220##and the sales area:



Division: 00

Choose Enter.

You can find the payer on the tab page Partner roles.

To assign the customer number to the receiving plant, choose:IMG→ Materials Management→ Purchasing→ PurchaseOrder→ Set Up Stock Transport Order→ Define Shipping Datafor Plants.

Position on the item with plant 22##and choose Details.

You made the relevant assignments to plant 22## in a previousexercise.

c) Choose: IMG→ Materials Management → Purchasing→Purchase Order→ Set Up Stock Transport Order→ DefineShipping Data for Plants.

Position on the item with plant 12##and choose Details.

Sales organization: 1000Distribution channel: 12Division: 00

The sales area that is assigned to the supplying plant inCustomizing for the purposes of intercompany billing isconcerned here.

You made the entries in the Customizing of intercompany billingin connection with cross-company-code sales processing.



Lesson Summary

You should now be able to:� List the effects of goods issue posting in Inventory Management� Determine the company code to which the internal invoice is assigned� Explain the origin of the sales area� Explain how the system determines the payer


SCM680 Lesson: Transactions/Events in the Receiving Company Code

Lesson: Transactions/Events in the Receiving CompanyCode

Lesson OverviewIn this lesson, you will get to know the transactions/events goods receiptand invoice receipt for cross-company-code stock transfer in the receivingcompany code.


� Post the goods issue for a replenishment delivery� Post the invoice receipt in the invoice verification



It is your task to analyze the goods receipt and invoice receipt for the stocktransport order.

Goods Receipt for Cross-Company-Code StockTransferPosting a Goods ReceiptWhen the goods enter the receiving plant, the number of the replenishmentdelivery is specified and a goods receipt is posted for the purchase orderwith movement type 101. Only if you enter the goods receipt and areference to the replenishment delivery will an entry be created in thedocument flow for the replenishment delivery.

If you know the order number, you can enter it directly.

You can define the category of the system message Document flow fordelivery cannot be updated (message no. M7 352) in the Customizingof inventory management. For more information, read SAP R/3 Notenumber 361014.

If the stock transfer occurs as a one-step procedure, the goods receipt isnot posted.



A purchase order history record is automatically created when the goodsreceipt is posted.

Changes in StockThe unrestricted-use stock (or the stock in quality inspection or the blockedstock) in the receiving plant increases once the goods receipt has beenposted. The on-order stock is partially cancelled out accordingly, since thedelivery for the stock transport order has arrived.

Figure 58: Changes in stock

The apparent cross-company-code stock in transit that can be seen in the stockoverview of the receiving plant is partially cancelled out.

In terms of accounting, the goods are now assigned to the company codeof the receiving plant. A corresponding accounting document was createdwhere the purchase order price was entered as the price of the material.

The stock situation in the supplying plant is not influenced by the goodsreceipt.



Invoice Receipt for Cross-Company-Code StockTransferInvoice ReceiptOnce the invoice of the supplying company code has arrived, the invoicereceipt is posted to the logistics invoice verification of the receivingcompany code. Invoice receipt can also be seen in the purchase orderhistory.

If the invoice receipt has already been executed in the course of internalbilling, the invoice is given a payment block (see �cross-company-codesales� also).

Once the quantity, and, if necessary, the quality of the goods received havebeen checked, the invoice can be released for payment. The payment blockin the accounting document is thus removed.





Exercise 22: Posting a Goods Receipt

Exercise ObjectivesAfter completing this exercise, you will be able to:� Post a goods issue for a replenishment delivery

Business ExampleThe replenishment delivery enters at the point of receipt. The goodsreceipt is now to be posted with reference to the attached delivery note.

TaskYou are an employee in the goods receiving department of the receivingplant.

1. Post the goods issue with reference to the above replenishmentdelivery.

Purchase order: Doc. no. of the replenish-ment delivery noted in theprevious exerciseDocument date: Current date




2. Display the stock overview for material T-AUD##in plant 22##. Whatquantity now exists in the unrestricted-use stock of the receivingplant?

How high is the cross-company-code stock in transit in this plant?

Unrestricted-use stock: ___________________________________Cross-company-code stockin transit:

___________________________________



Solution 22: Posting a Goods ReceiptTaskYou are an employee in the goods receiving department of the receivingplant.

1. Post the goods issue with reference to the above replenishmentdelivery.

Purchase order: Doc. no. of the replenish-ment delivery noted in theprevious exerciseDocument date: Current date





Choose the function Goods receipt for outbound delivery. Enter thedocument number of your replenishment delivery and chooseEnter or Execute.


2. Display the stock overview for material T-AUD##in plant 22##. Whatquantity now exists in the unrestricted-use stock of the receivingplant?

How high is the cross-company-code stock in transit in this plant?




Unrestricted-use stock: ___________________________________Cross-company-code stockin transit:

___________________________________


In the initial screen, enter the material number T-AUD##andthe plant 22##.

Choose Execute.

Unrestricted-use stock: 35 pc.Cross-company-code stockin transit:

0 pc.





Exercise 23: Posting an Invoice Receiptfor the Purchase Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Post the invoice receipt in invoice verification

Business ExampleThe two company codes concerned have made an agreement that, in thecase of stock transfer processes, the German branch send an invoice by postto the French branch. As such, a posting to a vendor account does not takeplace automatically in the French company code when the internal invoiceis created. The invoice receipt therefore needs to be posted manually.

TaskYou are an employee in invoice verification in company code 2200 in Paris.

The following invoice was issued by the German branch.

INVOICE

IDES AG (vendor T-S100##)Invoice date:



T-AUD## 30 pc. 625.00 EUR 18,750.00 EURSunny 01 monitors

Invoice amount: 18,750.00 EUR

1. Enter the invoice in company code 2200. Use tax code E4. Make anote of the document number.

Invoice document number: ___________________________________

2. Optional





Account no. Description Value______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________



Solution 23: Posting an Invoice Receiptfor the Purchase OrderTaskYou are an employee in invoice verification in company code 2200 in Paris.

The following invoice was issued by the German branch.

INVOICE

IDES AG (vendor T-S100##)Invoice date:



T-AUD## 30 pc. 625.00 EUR 18,750.00 EURSunny 01 monitors

Invoice amount: 18,750.00 EUR

1. Enter the invoice in company code 2200. Use tax code E4. Make anote of the document number.




Invoice document number: ___________________________________



Enter the invoice in company code 2200 using the following data.

Hint: If the system does not offer company code 2200 asa proposal straight away when you enter the incominginvoice, first choose Edit→ Switch company code. Thenenter company code 2200.



Reference: 590013##


Tax amount: ’ ’ (blank)

Tax code: E4 (that is, 20,6% inputtax)


Document number of thereplenishment deliverynoted above

Select the indicator Calculate tax.

Choose Enter.

Check the difference.

Choose Post.

2. Optional





Account no. Description Value______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________


Accept the default values for the fields Invoice doc. number andFiscal year and choose Enter or Display doc..


Account no. Description Value

T-S10020 Creditor number of thesupplying plant (IDES AG)

18,750.00 EUR

408120 GR/IR clearing account 18,750.00 EUR445712 EC input tax (20.6%) 3,675.00 EUR445660 EC output tax (20.6%) 3,675.00 EUR



Lesson Summary

You should now be able to:� Post the goods issue for a replenishment delivery� Post the invoice receipt in the invoice verification


SCM680 Unit Summary

Unit SummaryYou should now be able to:� Trigger the intra-company-code stock transfer process using a stock

transport order� Explain the reasons for the choice of the delivery type� List the effects of goods issue posting in Inventory Management� Determine the company code to which the internal invoice is assigned� Explain the origin of the sales area� Explain how the system determines the payer� Post the goods issue for a replenishment delivery� Post the invoice receipt in the invoice verification


Unit Summary SCM680


Unit 5Subcontracting

Unit OverviewIn this unit, you will learn how to procure materials in subcontractingusing the subcontract order. You will get to know subcontract procurementprocessing from the point of view of sales and distribution, inventorymanagement, shipping and invoice verification.


� Flag a certain material for subcontracting by means of a specialprocurement key in the MRP data of the material master.

� Check the bill of material (BOM) for the material� Determine the requirements for the material using single-item

planning� Check the planning elements for the BOM material and the

components� Convert the automatically created purchase requisition into a

purchase order� Explain the possibility of subcontractor procurement using a

scheduling agreement� Monitor the subcontractor�s stock� Create a delivery in order to send the required component quantity to

the subcontractor� Explain the prerequisites and settings required for this operation� Transfer additional quantities to the subcontractor using MM� Explain which settings in SD and MM are necessary and possible

for subcontracting� Post the goods receipt for the subcontract order� Explain which amounts are posted to which accounts as a result of

the goods receipt


Unit 5: Subcontracting SCM680

� Enter the subsequent adjustment resulting from excess consumptionand explain how the accounts are updated

� Enter the invoice receipt for the subcontract order� Explain the possibility of subcontractor procurement using a

scheduling agreement

Unit ContentsLesson: Procurement via Subcontracting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243

Procedure: Scheduling Agreement Schedule Line .. . . . . . . . . . . . . . . . . . .252Exercise 24: Subcontract Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253

Lesson: Goods Movements for Subcontracting... . . . . . . . . . . . . . . . . . . . . . . . . . .263Exercise 25: Monitoring the Stock of Material Provided byCustomer/Triggering the Transfer Posting of Components .. . . . . . . . . . .273Exercise 26: Executing Shipping Activities and Posting a GoodsIssue.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .279Exercise 27: Making a Transfer Posting to the Stock of MaterialProvided to Vendor ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .285

Lesson: Goods Receipt and Invoice Receipt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291Exercise 28: Goods Issue for a Subcontract Order .. . . . . . . . . . . . . . . . . . .295Exercise 29: Invoice Receipt for a Subcontract Order .. . . . . . . . . . . . . . . .301


SCM680 Lesson: Procurement via Subcontracting

Lesson: Procurement via Subcontracting

Lesson OverviewIn this lesson, you will look at subcontracting from the point of view ofpurchasing.


� Flag a certain material for subcontracting by means of a specialprocurement key in the MRP data of the material master.

� Check the bill of material (BOM) for the material� Determine the requirements for the material using single-item





Business ExampleFor subcontracting, the vendor (that is, the subcontractor) receivescomponents, which s/he uses to manufacture a product. The completedproduct is requested by your company in a purchase order. Componentsthat the vendor requires to make the ordered product are listed in thepurchase order and provided to the subcontractor. You can stage thecomponents using the LE outbound delivery. The system can determinethe components using a BOM.

Your task is to analyze the creation of subcontract orders.

Procurement via SubcontractingIn subcontracting, your enterprise orders material from an external vendor.In contrast to a normal external procurement process, your enterprisepartially or fully makes the components needed for the production of thematerial available to the vendor (that is, to the subcontractor). This incursthe following steps:



Figure 59: Overview of subcontracting

� You order the end product via a subcontract order.

The components that the vendor receives to produce the finishedproduct are named in the purchase order. To do this, you can usea bill of material, which can contain further components that thevendor receives.

� The components are then delivered to the vendor and stocked asvendor-related special stock O (= stock of material provided tovendor). The vendor can obtain these components from you or from afurther business partner.

If you send the components to the subcontractor from your enterprise,you can use the shipping activities.

� The vendor executes the service and delivers the material ordered(the finished product). The consumption of the components isautomatically booked with the goods receipt posting.

� If, once the goods receipt has been posted, the vendor informs youthat more or less components were consumed than planned, youmust adjust the stock (subsequent adjustment).

� The vendor issues an invoice for the service rendered. This is thenchecked in invoice verification.



You indicate the subcontracting items (SC item) in purchasing documentsusing the item category subcontracting. This means that you have to enterone or several subitems for each SC item for the components that are to beprovided. If a bill of material exists for the material that is to be procured,then the components are copied from this bill of material to the SC item.You can also enter the components manually, or add further componentsto the components in the bill of material.

Subcontracting and Material Requirements PlanningIf you always procure certain materials for a plant via subcontracting,then you can control this using a special procurement key in the materialmaster. If purchase requisitions are then created for these materialsin material requirements planning, these are then designated with anindicator for subcontracting.

You can place all components that are used to produce a material insubcontracting together in a bill of material. In this way, components,which the subcontractor procures and uses him/herself are given anindicator to show that they are parts provided to the vendor.

If you enter an SC item with components in the purchase requisition,or create an SC item by exploding a BOM, a dependent requirement isautomatically created for each component. This requirement is onlyrelevant for material requirements planning.

In material requirements planning, you can work with MRP areas withthe category subcontractor. The advantage of this is that the stock ofmaterial provided to vendor can be planned separately for each individualsubcontractor. The material quantities provided do not flow into theavailable stock of the plant, but into material requirements planning atplant level.



Figure 60: Purchase requisition for subcontracting

If a requirement, which is marked with the special procurement keysubcontracting, exists for the finished product, the planning run generates apurchase requisition with item category L (subcontracting), or a plannedorder with item category L. This planned order is converted into apurchase requisition with item category L. You can see item category L,that is, the special procurement key L, if you display the MRP element inthe stock/requirements list or the MRP list.

At the same time, the BOM for the finished product is exploded.Dependent requirements are created for the components for the plannedstart date of the planned order or the release date of the purchaserequisition at finished product level.

You can

� Manually enter or change the individual component items� Create individual component items if the material ordered has a BOM

If you enter the components, which the vendor needs to complete theordered material (finished product) manually, you do not need to enterthe requirement date of the components. If you press Continue, the systemproposes this date. It is made up of the following:

Delivery date of the item minus planned delivery time



If the quantity of the components is not to be changed when the purchaseorder quantity of the finished product is changed, then you can set theindicator Fix quantity.

If your components are to be handled in batches, you can specify thedesired batch of the component which you would like to assign to thevendor for the production of the ordered material.

Subcontract OrderDifferent document types are stored for each purchasing documentcategory. Follow-on relationships between document types of differentpurchasing document categories can be stored in document typeassignment. Permitted item categories are assigned to the individualdocument types in Customizing. In this way, item category L is definedper default as the permitted item category for subcontracting for documenttype NB.

You can create subcontract order items for both purchase requisitionswith the item category normal (� �), and items with the item categorysubcontracting in the SAP R/3 standard.

Figure 61: Subcontract order

Each SC item in the purchase order has component items. They aretransferred from the purchase requisition, entered manually, or createdvia BOM explosion.



The material that the vendor is to produce can be ordered by means ofa purchase order or a scheduling agreement with subcontracting items(SC items). Whereas each SC order item has one or several subitemswith individual components that are made available to the vendor forsubcontracting, the components of SC scheduling agreement items arefirst assigned with the schedule line of this item (see �subcontractingscheduling agreement�)

You can check the availability of the components for the requirementdate from the component view by selecting component list→ componentavailability.

If you have entered a BOM as ordered material, the components arecreated automatically. If you would like to determine the componentsfrom the BOM at a later stage (for example, if the BOM was subsequentlychanged ), you can explode the BOM again. The existing componentsin the order item are deleted if you do this and the current componentsare copied from the BOM.

The components are listed per order item when the order is output.

The purchase order price is the price of the vendor�s subcontracting servicefor the production of the ordered material and, if necessary, the materialsthe vendor provided. To enter the purchasing conditions and other data,you can use use the purchasing info record category subcontracting.

You can also use the special procurement type L (subcontracting) in thequota arrangement.

As of Release 4.0, it is possible to add specification services tosubcontracting items. In this way, you can provide your vendor, in a clear,concise way, with detailed specifications for the desired services that are tobe rendered. The specification service is of an informative nature. It hasno effect on the value of the item.

In subcontract procurement processing in purchasing, you need to notethe following:

� If you change the purchase order quantity or the schedule linequantity, the quantities of the components provided to the vendorare changed proportionally, provided the indicator Fix quantity hasnot been set.

� If you change the delivery date/time, only the requirement date iscalculated again; the components are not redetermined from the billof material.



This means that in this case, you need to explode the bill of materialagain.

Item Type SubcontractingItem categories control how a material is procured. The item categorysubcontracting determines that components are provided to vendor for amaterial that is ordered from the vendor.

You can use the item category subcontracting to procure stock material andconsumable material. You can also use it for services. Subcontracting itemscan also be assigned to a cost center or to a sales order, for example.

Hint: You can work with the item category individual purchaseorder (TAB) in a sales order item. If the special procurement keysubcontracting has been designated for the material of this item,an SC purchase requisition item is created when you save thesales order. This purchase requisition item does not contain anycomponents, however. The components are first determined whenyou convert this purchase requisition item into an order item.

The following excerpt from SAP R/3 Customizing shows you the settingsfor the item category subcontracting.

Figure 62: Item category subcontracting



The goods receipt indicator is set for the item category subcontracting andcannot be changed, since the stock of material provided to vendor for theindividual components is only reduced or cancelled out when the goodsreceipt is posted.

Subcontracting Scheduling AgreementYou can also use a scheduling agreement for the procurement ofmaterials via subcontracting. You enter the material to be produced in asubcontracting item in the scheduling agreement.

The components themselves are first determined in the schedulingagreement schedule line of the current bill of material, or have to beentered manually in the schedule line.

You enter the components, which are to provided to the vendor, in eachschedule line, or you explode the bill of material. This means that thecomponents and their reservation items are arranged below the schedulelines. This is valid for scheduling agreement schedule lines as well as forschedule lines in purchase requisitions and purchase orders.

Figure 63: Subcontracting scheduling agreement

You enter the material to be produced as a SC item in the schedulingagreement item.



You enter the components that are needed to produce the groupedquantities in the schedule lines. Reservation items are created for thesecomponent quantities.

The grouping of scheduling agreements can occur via the MRP run ofmaterial requirements planning.



Scheduling Agreement Schedule Line

1. Proceed as follows if you enter more than one delivery date/timefor a SC order item.

Call the scheduling screen of the item.

2. Enter the quantities and the delivery dates/times.

If the material ordered has a bill of material, the components aredetermined when you explode the BOM.

If you do not work with bills of material, you must either enter thecomponents manually, or refer to an existing purchase requisition.

3. You must enter the components for each schedule line.

You reach the screen necessary to process the components if you placethe cursor on a schedule line item and choose Item→ Component→Overview. You can enter or change the individual components in thesame way as for an order item.

To make this easier, you can make settings for the system to memorizethe components for further schedule line items. To do this, chooseEdit→ Repeat components→ Switch on.

When you enter the next schedule line for the material, thecomponents from the memorized schedule line are copied, and thequantity and the requirement date are determined again.

4. Save the schedule line.

When you print, the quantity needed per component, and therequirement date are output again.



Exercise 24: Subcontract Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the special features of a subcontract order� Point out components, their origin and, if necessary, their availability

Business ExampleIn subcontracting, the vendor (that is, the subcontractor) receivescomponents, which s/he uses to manufacture a product. The product to bemanufactured is requested by your company in a purchase order.

Task 1Create a purchase requisition for your material, which you procure fromone of your vendors via subcontracting. First check the componentsprovided.

1. Your vendor T-L10A##manufactures material T-F1##withinsubcontracting. You provide the necessary components, that are listedin the BOM for this material, for the vendor.

Display the BOM for material T-F1## in plant 1000, BOM usage 1.What components and quantities do you need to provide for materialT-F1##?

Component Quantity______________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ___________________________________

2. Display the stock overview for the components in plant 1000. Whichquantities of these materials can be used unrestrictedly in storagelocation 0001? What quantity does subcontractor T-L10A##alreadyhave? Answer these questions by noting the current stock situation.




Plant 1000, material: Unrestricted-use Stock of matlprovided to vendor

T-B1## ________________ ________________T-B2## ________________ ________________T-B3## ________________ ________________T-B4## ________________ ________________

3. How is the stock at subcontractor displayed in the currentstock/requirements list?

4. Since you have, in the past, often arranged for material T-F1## to beproduced by subcontractor T-L10A, you have stored the conditions ina purchasing info record for subcontracting. Display the purchasinginfo record for plant 1000 and sales organization 1000, and find outthe information detailed below.

Planned delivery time: ___________________________________Net price: ___________________________________

5. 100 pieces of material T-F1## are to be procured for plant 1000(Hamburg). Communicate this to purchasing in a subcontracting itemin a purchase requisition. The delivery date is today in 4 weeks.

What item category are you using?

How is the requirements date of the components calculated?


6. Display the current stock/requirements list for your components.Has the available quantity changed?




7. In Customizing, check whether the item category for subcontractingis allowed for sales document type NB (standard purchase order).

Task 2As buyer, convert your purchase requisition into a purchase order.

1. Create a purchase order at your subcontractor T-L10##; use salesorganization 1000. Refer to your subcontracting purchase requisitionitem for material T-F1##.

What price per piece is suggested for the subcontracting costs? Wheredoes this price come from?

_____________________________________________________________

What components exist for your order item?

Check the availability of the individual components.

Material: Requirementquantity:

Confirmedquantity:

______________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ________________

Save your purchase order.


2. Are there any effects on the available quantity of the components inthe current stock/requirements list?



Solution 24: Subcontract OrderTask 1Create a purchase requisition for your material, which you procure fromone of your vendors via subcontracting. First check the componentsprovided.

1. Your vendor T-L10A##manufactures material T-F1##withinsubcontracting. You provide the necessary components, that are listedin the BOM for this material, for the vendor.

Display the BOM for material T-F1## in plant 1000, BOM usage 1.What components and quantities do you need to provide for materialT-F1##?

Component Quantity______________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ___________________________________

a) From the SAP Easy Access screen, choose Logistics→ Production→Master Data→ Bills of Material→ Bill of Material→MaterialBOM→ Display.


Material: T-F1##

Plant: 1000

BOM Usage: 1

The following components are displayed:

Component QuantityT-B1## 1T-B2## 1T-B3## 1T-B4## 1




2. Display the stock overview for the components in plant 1000. Whichquantities of these materials can be used unrestrictedly in storagelocation 0001? What quantity does subcontractor T-L10A##alreadyhave? Answer these questions by noting the current stock situation.

Plant 1000, material: Unrestricted-use Stock of matlprovided to vendor

T-B1## ________________ ________________T-B2## ________________ ________________T-B3## ________________ ________________T-B4## ________________ ________________


In the initial screen, enter the first material number and plant1000.

Choose Execute.

To display the stock of other materials, you enter the nextmaterial number within the stock overview and choose NewSelection.

Plant 1000, material: Unrestricted-use Stock of matlprovided tovendorT-B1## 820 0

T-B2## 810 0T-B3## 800 20T-B4## 820 0

3. How is the stock at subcontractor displayed in the currentstock/requirements list?

Answer: From the SAP Easy Access screen, choose Logistics →Materials Management→ Inventory Management→ Environment→Stock→ Stock/Requirements List.The stock at the subcontractor is displayed in an individual planningsegment and not included in the available quantity of the plant.




4. Since you have, in the past, often arranged for material T-F1## to beproduced by subcontractor T-L10A, you have stored the conditions ina purchasing info record for subcontracting. Display the purchasinginfo record for plant 1000 and sales organization 1000, and find outthe information detailed below.

Planned delivery time: ___________________________________Net price: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Master Data→ Info Record→Display.


Vendor: T-L10A##

Material: T-F1##


Plant: 1000

Choose the info category Subcontracting, and choose Enter.

In the info record, choose the view PurchOrgData 1.

Planned delivery time: 10 daysNet price: 100 EUR

5. 100 pieces of material T-F1## are to be procured for plant 1000(Hamburg). Communicate this to purchasing in a subcontracting itemin a purchase requisition. The delivery date is today in 4 weeks.

What item category are you using?

How is the requirements date of the components calculated?





a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Requisition→ Create.

Enter a purchase requisition using the following data:

Item category: L (subcontracting)

Material: T-F1##

Requested quantity: 100 pc.


Plant: 1000 (Hamburg)

In the lower part of the screen (item details), choose the tab pageMaterial Data and then Components. The requirements date of thecomponents is the result of the delivery date minus the planneddelivery time of the finished product from the material master.

Choose Save.

6. Display the current stock/requirements list for your components.Has the available quantity changed?

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→ Environment→ Stock→Stock/Requirements List.

The available quantity is reduced by the subcontractingrequirement for the requirement date of the components.

7. In Customizing, check whether the item category for subcontractingis allowed for sales document type NB (standard purchase order).

Answer: Choose IMG→Materials Management→ Purchasing→Purchase Order→ Define Document Types.Select the row NB - Standard PO. Double-click on Allowed itemcategories. Item category L is allowed for the standard purchase orderNB.

Task 2As buyer, convert your purchase requisition into a purchase order.

1. Create a purchase order at your subcontractor T-L10##; use salesorganization 1000. Refer to your subcontracting purchase requisitionitem for material T-F1##.




What price per piece is suggested for the subcontracting costs? Wheredoes this price come from?

_____________________________________________________________

What components exist for your order item?

Check the availability of the individual components.


Confirmedquantity:

______________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ________________

Save your purchase order.



Turn the document overview on. In the document overview,choose the selection variant My purchase requisitions. In thedocument overview, select the purchase requisition that youcreated and copy it to the current purchase order on theright-hand side of the screen using the pushbutton Copy.Alternatively, you can use the left mouse button to transfer thepurchase requisition to the shopping basket.

Vendor: T-L10A##

Choose Enter.

b) A price of 100 EUR is suggested. The price is taken from thesubcontracting info record.

Choose Environment→ Info Record.

c) In the lower part of the screen (item details), choose the tab pageMaterial Data and then Components.




This takes you to an overview of the components. When apurchase order with item category L is created, the BOM formaterial T-F1## is exploded in the background, and the itemsfrom the BOM are proposed as components in the purchaseorder.

The materials are as follows:

T-B1##T-B2##T-B3##T-B4##

d) From the menu list in the overview screen of the components,choose Component list and component availability.


Confirmedquantity:

T-B1## 100 100T-B2## 100 100T-B3## 100 100T-B4## 100 100

2. Are there any effects on the available quantity of the components inthe current stock/requirements list?

Answer: From the SAP Easy Access screen, choose Logistics →Materials Management→ Inventory Management→ Environment→Stock→ Stock/Requirements List.An individual area for the subcontractor is created in the currentstock/requirements list. The system checks whether the subcontractoralready has available quantities of the components. The shortfallquantity is then planned in the anonymous area as remainingrequirements for subcontracting. The quantity currently availablehas not changed.



Lesson Summary

You should now be able to:� Flag a certain material for subcontracting by means of a special

procurement key in the MRP data of the material master.� Check the bill of material (BOM) for the material� Determine the requirements for the material using single-item






SCM680 Lesson: Goods Movements for Subcontracting

Lesson: Goods Movements for Subcontracting

Lesson OverviewIn this lesson, you will look at the various ways you can trigger the transferof components to the subcontractor in SAP R/3.


� Monitor the subcontractor�s stock� Create a delivery in order to send the required component quantity to


for subcontracting

Business ExampleIn subcontracting, the vendor (that is, the subcontractor) receivescomponents, which s/he uses to manufacture a product. The completedproduct is requested by your company in a purchase order. Componentsthat the vendor requires to make the ordered product are listed in thepurchase order and provided to the subcontractor. You can stage thecomponents using the LE outbound delivery. The system can determinethe components using a BOM.

Your task is to analyze the goods movements of material or componentsprovided for subcontract orders.

Staging ComponentsStock of Material Provided to VendorThe stocks of the components that are to be made available for the vendorare entered in the stock of material provided to vendor. This stock hasthe following characteristics:

� It is administered as a part of the total valuated stock and is availablefor material requirements planning.

� It is only administered at plant level, since it is not stored in yourenterprise, but with the vendor.

� Two stock types are possible:

� Unrestricted-use stock



� Stock in quality inspection

Stock can be transferred between the two stock types. However,material withdrawals can only be posted from the unrestricted-usestock.

� You can carry out a physical inventory of the stock of materialprovided to vendor.

An SC requirement for the components emerges at the vendor with asubcontracting order item.

The net requirements calculation for the subcontracting components insubcontracting takes into account that the stock of material providedby customer can only be used to cover the corresponding requirementof material provided. The stock of material provided by customer thatalready exists with a vendor (subcontractor) can thus only be used tocover the corresponding stocks of material provided by customer at thissubcontractor.

Only the stock that is not assigned to a subcontractor can be used asunrestricted-use stock to cover all requirements.

Figure 64: SC requirement and SC stock



The components at vendor are stocked in a vendor-related special stock.This is valuated and is available for material requirements planning. Ifyou make use of MRP areas, you can separately plan the stock of materialprovided by customer according to vendor.

Consumption of the components can only occur from the stock of materialprovided by customer of the corresponding vendor. You can monitor thestock of material provided by customer by means of a valuation.

Figure 65: Stock of material provided by customer: Receipts

The vendor can obtain the necessary provision of material or componentsfrom your plant or from another vendor. In the procurement items(purchase order, scheduling agreement, contract) for the provision ofmaterial or components from another vendor, you use the indicator SCDeliv. in this case, and enter the vendor number of the subcontractor. Inthis way, you ensure that the receipt for these items takes place directly inthe stock of material provided by customer of the specified vendor.

Providing Components for Existing Purchase OrdersYou can provide components for purchase orders that already exist in thefollowing way:

� Starting from subcontracting stock monitoring for the vendor as agoods movement via inventory management



� Starting from subcontracting stock monitoring for the vendor with adelivery via shipping

� Starting from the inventory management menu

Once you have called the report SC stock monitoring for vendor and once youhave pressed Execute, you obtain a list of the components that belong tothe selected subcontract orders. Highlight the components that you wouldlike to provide. You can choose between Post Goods Issue (MM transferposting) and Create Delivery (delivery via shipping).

Monitoring of Subcontracting StockBy valuating the stocks of material provided by customer, you candetermine whether the components essential for subcontracting orders areavailable in the warehouse at the vendor.

The function subcontracting stock monitoring for the vendor creates a list ofstocks of material provided by customer with the current stock situation,planned issues and receipts.

Issue elements are:

� Dependent requirements from subcontracting purchase requisitions� Dependent requirements from subcontracting orders

Receipt elements are:

� Stock transfer reservations (when using MRP areas)� Purchase requisitions to an external vendor, who replenishes the SC

stock� Purchase orders to an external vendor� Deliveries (from one�s own plant to the subcontractor)

The list is firstly shown as an aggregated list, that is, the requirementand receipt elements are shown as totals lines. You can also display theindividual purchase orders, deliveries and so on.

All issue and receipt elements are only shown with their open quantities.The total of the SC stock and the receipts less the dependent requirementsresults in the available SC stock, which is displayed in green (if 0 orpositive) or red (if negative).



Figure 66: LE outbound delivery for components

As of Release 4.0, you can create both an MM transfer posting withmovement type 541 and an LE outbound delivery for a subcontractor.You do this from SC stock monitoring. In this way, you can delivermaterial provided by customer to the subcontractor in connection with asubcontracting order.

The advantage of this procedure is that shipping documents anddelivery notes are available when you ship the material provided bycustomer. Likewise, you can use the standard functions of shipment andtransportation processing such as picking, packing and dispatching inshipments.

You can also provide the subcontractor with components even if asubcontract order does not exist as a reference. You thus execute a transferposting with movement type 541. To help you with your entries, you canalso refer to a bill of material, for example.

MM Transfer PostingWithin inventory management, you can transfer the components neededfrom your own storage location stock to the stock of material provided bycustomer. Use movement type 541 for this procedure.

To enter the components for this transfer posting, you can refer to thefollowing:

� The bill of material of the material ordered� A subcontracting order item (only transactions MB1*)� Reservations

If you post the components via inventory management, you can (only)print goods receipt/issue slips. The following messages types are providedfor this:

� WLB1: Goods issue slip for subcontracting - version 1� WLB2: Goods issue slip for subcontracting version 2



� WLB3: Goods issue slip for subcontracting - version 3

DeliveryYou can create a delivery via shipping from the subcontracting stockmonitoring for the vendor list. The advantage of this procedure is thatshipping documents and delivery notes are available when you ship thematerial provided by customer.

The following data needs to be maintained in the system to create adelivery:

� A sales organization, a distribution channel and a division need to beassigned to a plant. You can make these settings in the Customizingof purchasing via Set stock transport order.

� A delivery type needs to be defined for the plant from which youdeliver. You can define the delivery type in the Customizing ofpurchasing via Set subcontract order.

� If you would like to refer to a reservation when creating a delivery,then you must set the indicator Predecessor essential to L (provisionof materials for subcontract order essential) when defining therespective delivery type.

In this way, the requirements created by the reservations can becorrectly offset against the orders created. You can make thesesettings in the Customizing of shipping via Define delivery types.

� The delivery type for the SC stock must be created as customer forthe organizational units sales organization, distribution channel, anddivision of the supplying plant.

� The material provided by customer must be created for theorganizational units sales organization, distribution channel, anddivision of the supplying plant.

� A shipping point must be assigned to the combination of shippingcondition (from the subcontractor�s customer master), loading group(from the material master record of the subcontracting component),and plant.

You can make these settings in the Customizing of shipping viaAssign shipping points.



Figure 67: Prerequisites for Shipping (1)

A sales organization, a distribution channel and a division must beassigned to the plant from which components are delivered.

A delivery type must be entered for the purchase order. The delivery typeis delivered per default. In the Customizing of shipping, the indicatorPredecessor essential must be set to L for this delivery type. Moreover, apartner schema should be assigned to the delivery type. This partnerschema should contain the partner role vendor.



Figure 68: Master data required

In the supplying plant, shipping data (Sales view: gen./plant data in thematerial master) must be entered for the component materials.

A debtor must be assigned to the SC vendor in the master record; thedebtor must be created for the sales organization, distribution channeland division of the supplying plant.

A shipping point must be assigned to the combination of shippingcondition (from the debtor�s master record, which is assigned to the SCvendor), loading group (from the material master of the component), andplant.



Figure 69: Determination of outbound delivery parameters and movementtype

Since the outbound delivery does not refer to a sales order, the systemmust, in part, determine important outbound delivery parameters ina different way.

The delivery type to be used results from the Customizing of thesubcontract order. If no further settings are made here, the delivery typeLB is used as the default.

The item category is a result of the item category determination of thedelivery, where the criteria delivery type and the item category group ofthe material play a role. In the default Customizing, the item categoryLBN is assigned.

When posting the goods issue to the SC vendor for the outbound delivery,the system needs to know which movement type to use. This results fromthe schedule line category, which is determined via the item category.Schedule line category LB is determined as the default for the item categoryLBN and for materials with any MRP type. The standard setting for theschedule line category LB determines that movement type 541 is used.

Components from Another VendorIf the components are not provided by you, but by another vendor, youcan order them at the vendor and specify the subcontractor�s deliveryaddress in the purchase order. The components are directly posted to thestock of material provided to vendor when the goods are received.



To order subcontracting components at a vendor, which are to be deliveredto a subcontractor, you create a standard purchase order and specify adifferent delivery address to the ordering plant. In the item detail, choosethe tab page Delivery address. In the vendor field, enter the number of thesubcontractor, and select the indicator SC Deliv. This indicator ensures thatthe components are posted directly to the stock of material provided tovendor when the goods are received.



Exercise 25: Monitoring the Stock ofMaterial Provided by Customer/Triggeringthe Transfer Posting of Components

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain valuation for the monitoring of stock with the subcontractor� Explain the special features of outbound delivery to provide material

or components for subcontractor stocks

Business ExampleThe components that the vendor needs to produce the ordered product areprovided to the vendor. The system can determine the components using aBOM. You can stage the components using the LE outbound delivery.

TaskCheck the stock of material provided to vendor for your subcontract order.Carry out a transfer posting for the components.

1. Display the stocks of material provided to vendor for yoursubcontracting vendor T-L10A##. Which materials and whichquantities must you still send to the vendor for your purchase orderto be executed?


Still to bedelivered:

______________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ________________

2. Check whether the necessary settings exist to create an outbounddelivery to make a transfer posting to the stock of material providedto vendor in subcontracting.

Display the material master records of the BOM components andcheck whether material master records have been created for salesorganization 1000 and distribution channel 12.




What transportation group and loading group have been entered?

Material: Transportationgroup:

Loading group:

______________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ________________

What debtor has been entered for your subcontracting vendorT-L10A##?

Debtor: ___________________________________

3. You must make the components that are needed to manufacturematerial T-F1## available to subcontractor T-L10A##. Initiateshipping of the components to the vendor by entering an outbounddelivery for the open quantities. To do this, use SC stock monitoringfor the vendor.

Confirm the default quantities for the individual items.

How many outbound deliveries have been created?

Outbound deliverynumber(s):

___________________________________

What quantities are delivered to the subcontractor?

_____________________________________________________________

_____________________________________________________________

4. In shipping, check the outbound delivery created for the componentsand corresponding quantities.



Solution 25: Monitoring the Stock ofMaterial Provided by Customer/Triggeringthe Transfer Posting of ComponentsTaskCheck the stock of material provided to vendor for your subcontract order.Carry out a transfer posting for the components.

1. Display the stocks of material provided to vendor for yoursubcontracting vendor T-L10A##. Which materials and whichquantities must you still send to the vendor for your purchase orderto be executed?



______________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Order→ Reporting→ SCstocks per vendor.

Vendor: T-L10A##



T-B1## 100 100T-B2## 100 100T-B3## 100 80T-B4## 100 100

2. Check whether the necessary settings exist to create an outbounddelivery to make a transfer posting to the stock of material providedto vendor in subcontracting.

Display the material master records of the BOM components andcheck whether material master records have been created for salesorganization 1000 and distribution channel 12.




What transportation group and loading group have been entered?


Loading group:

______________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ______________________________________ ________________ ________________

What debtor has been entered for your subcontracting vendorT-L10A##?

Debtor: ___________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→Material Master→Material→ Display→ DisplayCurrent.

Choose the views Sales: Sales Org. data 1 and Sales: Sales Org.Data 2. Enter the following data in the dialog box OrganizationalLevels.



The material master records have been created in salesorganization 1000 and distribution channel 12.

b) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→Material Master→Material→ Display→ DisplayCurrent.

Choose the view Sales: General/Plant Data.

Plant: 1000





Loading group:

T-B1## 0001 0003T-B2## 0001 0003T-B3## 0001 0001T-B4## 0001 0003

c) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→Master Data→ Vendor→ Purchasing→ Display (Current).

Creditor: T-L10A##


Select the view Control.

Debtor: T-L10A##

The subcontracting vendor has been assigned the same debtornumber in this system, so that you can identify them more easily.

3. You must make the components that are needed to manufacturematerial T-F1## available to subcontractor T-L10A##. Initiateshipping of the components to the vendor by entering an outbounddelivery for the open quantities. To do this, use SC stock monitoringfor the vendor.

Confirm the default quantities for the individual items.

How many outbound deliveries have been created?

Outbound deliverynumber(s):

___________________________________

What quantities are delivered to the subcontractor?

_____________________________________________________________




_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Order→ Reporting→ SCstocks per vendor .

Vendor: T-L10A##


Choose Select All. Choose Create Delivery. Confirm the dialogbox Create Delivery four times using Enter (no further entries)for each material.

b) One outbound delivery is created.

c) 80 pieces of components T-B1##, T-B2##and T-B4##were sent tothe vendor. In the case of component T-B3##, 80 pieces.

The deliveries correspond to the quantities �still to be delivered�from the previous exercise.

4. In shipping, check the outbound delivery created for the componentsand corresponding quantities.

Answer: From the SAP Easy Accessmenu, choose Logistics→ LogisticsExecution→ Outbound Process→ Goods Issue for Outbound Delivery→Outbound Delivery→ Display or Logistics→ Sales and Distribution→Shipping and Transportation→ Outbound Delivery→ Display.



Exercise 26: Executing Shipping Activitiesand Posting a Goods Issue

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain shipping processing� Explain the characteristics of the stock of material provided to vendor

Business ExampleShipping processing is triggered for outbound deliveries created from thevaluation of stocks of material provided to the vendor; the goods issueof the components is posted. In this way, the components are transferposted from the unrestricted-use stock to the stock of material providedto the subcontractor.

Task1. Start with packing by creating a transfer order for the outbound

delivery that you created in the previous exercise.


2. Post the goods issue for your outbound delivery in the one-stepprocedure or in collective processing.

3. Check the document flow for your outbound delivery and make anote of the document number that was used to post the goods issue tothe subcontractor.

Document number: ___________________________________

What is the movement type?

Movement type: ___________________________________

What items does the material document contain?

_____________________________________________________________

_____________________________________________________________




Why is each material listed twice?

Is there an accounting document for this operation?

4. Display the stock overview for the component materials and make anote of the stock situation.

Compared with the initial stock situation, what changes haveoccurred?

Plant 1000, material: Unrestricted-use Provision ofmaterial to a vendor

T-B1## ________________ ________________T-B2## ________________ ________________T-B3## ________________ ________________T-B4## ________________ ________________

_____________________________________________________________

_____________________________________________________________

5. Execute a valuation of the stock of material provided to your vendorT-L10A##again. What change has occurred?

_____________________________________________________________

_____________________________________________________________



Solution 26: Executing Shipping Activitiesand Posting a Goods IssueTask1. Start with packing by creating a transfer order for the outbound

delivery that you created in the previous exercise.


a) From the SAP Easy Access screen, choose Logistics→ LogisticsExecution→Outbound Process→ Goods Issue for Outbound Delivery→ Picking→ Create Transfer Order → Via Outbound DeliveryMonitor or Logistics→ Sales and Distribution→ Shipping andTransportation→ Picking→ Create Transfer Order→ Via OutboundDelivery Monitor.

Shipping Point/Receiving Point: 1000

Picking Date: to current date + 4 weeks

Choose Execute.

In the picking workload list, select the outbound delivery thatyou created and choose Create TO in background. Confirm thedialog box that appears using Enter.

2. Post the goods issue for your outbound delivery in the one-stepprocedure or in collective processing.

a) From the SAP Easy Access screen, choose Logistics→ LogisticsExecution→Outbound Process→ Goods Issue for Outbound Delivery→ Outbound Delivery→ Post Goods Issue→ Collective ProcessingVia Outbound Delivery Monitor or Logistics→ Sales and Distribution→ Shipping and Transportation→ Post Goods Issue→ CollectiveProcessing Via Outbound Delivery Monitor.

Shipping Point/Receiving Point: 1000

Planned goods movement date: To current date + 4 weeks

Choose Execute.

In the list Goods Issue for Posted Outbound Deliveries, select theoutbound delivery you created and choose Post goods issue.





3. Check the document flow for your outbound delivery and make anote of the document number that was used to post the goods issue tothe subcontractor.

Document number: ___________________________________

What is the movement type?

Movement type: ___________________________________

What items does the material document contain?

_____________________________________________________________

_____________________________________________________________

Why is each material listed twice?




Is there an accounting document for this operation?

a) From the SAP Easy Access screen, choose Logistics→ LogisticsExecution→Outbound Process→ Goods Issue for Outbound Delivery→ Outbound Delivery→ Display.

or Logistics→ Sales and Distribution→ Shipping and Transportation→ Outbound Delivery→ Display.

Environment→ Document Flow

The goods issue document is displayed under GI warehouse to SCDeliv. in the document flow.

In the document flow, position your cursor on this materialdocument and choose Display Document.

Movement type: 541 (transfer posting to stock of materialprovided to contractor from unrestricted-use stock)

The material document contains all components.

b) Each material is listed twice, since the material is transfer postedfrom the unrestricted-use stock to the stock of material providedto vendor. For this stock type, O is entered in the special stockindicator field.

Issue posting from storage location

Transfer posting to special stock O = subcontracting

c) Choose FI/CO Documents....

No, there isn�t an accounting document for this operationsince the transfer posting/stock transfer to the SC stock is notvaluation-relevant.

4. Display the stock overview for the component materials and make anote of the stock situation.

Compared with the initial stock situation, what changes haveoccurred?

Plant 1000, material: Unrestricted-use Provision ofmaterial to a vendor

T-B1## ________________ ________________T-B2## ________________ ________________T-B3## ________________ ________________T-B4## ________________ ________________




_____________________________________________________________

_____________________________________________________________


Plant 1000, material: Unrestricted-use Stock of materialprovided tovendorT-B1## 720 100

T-B2## 710 100T-B3## 720 100T-B4## 720 100

The unrestricted-use stock has been reduced by the quantity thatyou have just delivered to the subcontractor.

5. Execute a valuation of the stock of material provided to your vendorT-L10A##again. What change has occurred?

_____________________________________________________________

_____________________________________________________________

a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Purchasing→ Purchase Order→ Reporting→ SCstocks per vendor.

Vendor: T-L10A##

All components at the vendor have the necessary quantity.



Exercise 27: Making a Transfer Posting tothe Stock of Material Provided to Vendor

Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute transfer posting to the stock of material provided to vendor

without an order reference, and without an outbound delivery� Explain the difference between a transfer posting to the stock

of material provided to vendor, and the outbound delivery ofcomponents to the subcontractor.

Business ExampleYou want to fill the stocks at your subcontractor without a precisepurchase order, and execute this step without LE, using a transfer postingonly. You check the result using the stock overview and the currentstock/requirements list.

TaskIt is forseeable in your enterprise that, in the near future, several orderswill be planned for your subcontractor T-L10A## to manufacture yourmaterial T-F1##. To enable the vendor to process these efficiently, you sendhim/her a certain quantity of the required components that are listed inthe bill of material for this material.

1. Make a transfer posting for 100 pieces of the component materialsfrom plant 1000, storage location 0001 to you subcontractor T-L10A##.Execute this work step with the help of a transfer posting from theinventory management system.

Enter the operation with reference to the BOM, and enter your BOMmaterial T-F1##.

Hint: In a transfer posting using transaction MIGO, it is not(yet) possible to refer to your subcontract order item.

What menu path are you using?

_____________________________________________________________

_____________________________________________________________




Movement type: ___________________________________Material document: ___________________________________

2. Display the material document. What items does it contain?

Component Movementtype

Special stock indic. Sign

____________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ____________



Solution 27: Making a Transfer Posting tothe Stock of Material Provided to VendorTaskIt is forseeable in your enterprise that, in the near future, several orderswill be planned for your subcontractor T-L10A## to manufacture yourmaterial T-F1##. To enable the vendor to process these efficiently, you sendhim/her a certain quantity of the required components that are listed inthe bill of material for this material.

1. Make a transfer posting for 100 pieces of the component materialsfrom plant 1000, storage location 0001 to you subcontractor T-L10A##.Execute this work step with the help of a transfer posting from theinventory management system.

Enter the operation with reference to the BOM, and enter your BOMmaterial T-F1##.

Hint: In a transfer posting using transaction MIGO, it is not(yet) possible to refer to your subcontract order item.

What menu path are you using?

_____________________________________________________________

_____________________________________________________________





a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→MIGO - Goods Movement.

or→ Inventory Management→ Goods Movement→ Transfer Posting

Hint: If you use the transaction Transfer Posting, you canchoose the movement type as follows: Movement Type→ Transfer Posting→ Stock with Subcontractor→ FromUnrestricted (movement type 541)

Choose the function Transfer Posting Others in the transactionTransfer Posting (MIGO) and enter the movement type 541 asthe default value for all items .

First enter all data on the tab page Transfer of the detail screen.

Transfer posting from:Material: T-F1##

Plant: 1000


Transfer posting to:Plant: 1000

Vendor: T-L10A##

Unit of entry: 100 pc.

Finally, choose (explode BOM)(below the item overview).Copy the default values in the dialog box Change Settings forBOM Explosion.







____________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ____________




T-B1## 541 � � (blank) �T-B1## 541 O +T-B2## 541 � � (blank) �T-B2## 541 O +T-B3## 541 � � (blank) �T-B3## 541 O +T-B4## 541 � � (blank) �T-B4## 541 O +



Lesson Summary

You should now be able to:� Monitor the subcontractor�s stock� Create a delivery in order to send the required component quantity to


for subcontracting


SCM680 Lesson: Goods Receipt and Invoice Receipt

Lesson: Goods Receipt and Invoice Receipt

Lesson OverviewIn this lesson, you will get to know the special features of the goods receiptfor the subcontracting item. You will find out that the valuation of theordered material is influenced by the invoice receipt and the subsequentadjustment.


� Post the goods receipt for the subcontract order� Explain which amounts are posted to which accounts as a result of

the goods receipt� Enter the subsequent adjustment resulting from excess consumption

and explain how the accounts are updated� Enter the invoice receipt for the subcontract order� Explain the possibility of subcontractor procurement using a


Business ExampleIn subcontracting, the vendor (that is, the subcontractor) receivescomponents, which s/he uses to manufacture a product. The completedproduct is requested by your company in a purchase order. Componentsthat the vendor requires to make the ordered product are listed in thepurchase order and provided to the subcontractor. You can stage thecomponents using the LE outbound delivery. The system can determinethe components using a BOM.

Your task is to analyze the goods and invoice receipt as well as theadjustment posting for material or components provided for subcontractorders.

Goods Receipt for the SC ItemIf the vendor delivers the ordered material (finished product), you post thegoods receipt for the subcontract order as for a goods receipt for a standardpurchase order. The goods receipt is thus entered with a reference to theSC order item.



In the case of a goods receipt posting, the system automatically determinesthe components and automatically creates a goods receipt item foreach component item. With the goods receipt, the consumption of thecomponents is posted retrograde. Consequently the material documentconsists of the following items:

� Goods receipt items for the materials delivered by the vendor� Goods issue items for the components

Once you have copied an order item for the goods receipt posting, you canstill change the component quantities in the goods issue items manually.This might be necessary if the SC vendor has consumed more or lesscomponent material than was planned in the purchase order.

The goods receipt is valuated with the price of the subcontracting serviceand the value of the components consumed.

If by-products have been planned in the purchase order as componentswith negative quantities, the receipt of these by-products is automaticallyposted to the stock of material provided to vendor during the goodsreceipt.

If the SC vendor does not report excess or underconsumption until afterthe goods receipt posting, the difference is to be posted as a subsequentadjustment; this takes place according to order.

The stocks of material provided by customer are reduced or cancelledout during the goods receipt.

Subsequent AdjustmentIf the vendor reports excess or underconsumption of the components afterthe goods receipt posting, you need to execute a subsequent adjustment.The subsequent adjustment is entered according to order and serves tocorrect a goods receipt posting for a subcontract order.

Once the subcontractor as vendor of the ordered material (finishedproduct) has delivered, you posted a goods receipt for the subcontractorder. The system determined the necessary components for each orderitem and created a goods issue item for each component, with the quantitythat was defined in the purchase order. If the vendor reports excess orunderconsumption of the SC components after these postings, you mustbook in or book out these variances via subsequent adjustment, to correctthe component consumption.



Figure 70: Stock and valuation adjustment in subcontracting

The specified quantities of the goods receipt that was originally posted arethus corrected to subsequently adjusted quantities by the system.

Invoice Receipt and ValuationVerification of an invoice for a subcontract order occurs in exactly thesame way as for a standard purchase order. However, in the case of pricevariances, additional account movements when the invoice is posted.

The invoice for an SC order item refers exclusively to the labor costs ofsubcontracting. The labor costs together with the value of the componentsconsumed result in the valuation price which is used to valuate the SCmaterial.

If the vendor reports excess or underconsumption of the components afterthe goods receipt posting, you need to execute a subsequent adjustment.The subsequent adjustment results in a valuation adjustment of thematerial produced (moving average price control).

Postings for goods receipts and the invoice receipts for the subcontractingorder item are shown in the following graphic.



Figure 71: Postings for SC items

The postings shown are also valid for a semifinished product with amoving average price.

For materials with standard price control, you need to determine whetheryou want to post the receipts with or without price differences. You canmake settings for this in the Customizing of inventory management.



Exercise 28: Goods Issue for aSubcontract Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Enter the goods issue of the finished product� Explain the treatment, on a stock and value basis, of components

and finished product

Business ExampleYour vendor (the subcontractor) delivers your finished product, and youenter the goods issue for your subcontract order.

TaskOnce the vendor has finished subcontracting, s/he sends you the orderedmaterial.

1. Vendor T-Ll10A##delivers the ordered material T-F1##. Enter thegoods receipt for your purchase order in plant 1000, storage location0001.

What movement type does the system use?




Material Movementtype

Special stock indicator Sign

____________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ____________

What G/L accounts were updated?




Account numberDescription Debits/credits______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________

3. Your subcontractor informs you that s/he needs an extra piece ofcomponent T-B4## to manufacture all of the pumps. Enter thesubsequent adjustment.

Hint: If you are working with the transaction MIGO, enteryour purchase order number and choose Enter. Chooseto display the components.

If you are not working with the transaction MIGO, enter yourpurchase order number and choose Enter. Choose Copy todisplay the material components.




Solution 28: Goods Issue for a SubcontractOrderTaskOnce the vendor has finished subcontracting, s/he sends you the orderedmaterial.

1. Vendor T-Ll10A##delivers the ordered material T-F1##. Enter thegoods receipt for your purchase order in plant 1000, storage location0001.

What movement type does the system use?




Choose the function Goods receipt for order. Enter the followingdata and choose Enter or Execute.

Purchase order: Document number noted inprevious exerciseDocument date: Current date





Special stock indicator Sign

____________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ________________________ ____________ ____________________ ____________

What G/L accounts were updated?




Account numberDescription Debits/credits______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________


Accept the default values for the fieldsMaterial document andMaterial document year and choose Enter.


Special stockindicator

Sign

T-F1## 101 � � (blank) +T-B1## 543 O �T-B2## 543 O �T-B3## 543 O �T-B4## 543 O �

b) In the material document display, choose the pushbutton FI/COdocuments. Select the accounting document by double-clicking.

Account numberDescription Debits/credits792000 Finished products Debit posting191100 GR/IR clearing account Credit posting893010 Cost of goods

manufactured/businessvolume

Credit posting417001 Services procured Debit posting790000 Unfinished products Credit posting893020 Change in stock - receipt Debit posting




3. Your subcontractor informs you that s/he needs an extra piece ofcomponent T-B4## to manufacture all of the pumps. Enter thesubsequent adjustment.

Hint: If you are working with the transaction MIGO, enteryour purchase order number and choose Enter. Chooseto display the components.

If you are not working with the transaction MIGO, enter yourpurchase order number and choose Enter. Choose Copy todisplay the material components.


a) From the SAP Easy Access screen, choose Logistics→MaterialsManagement→ Inventory Management→ Goods Movement→Subsequent Adjustment→ Subcontracting.

Choose Enter.

Choose Copy.

Enter quantity 1 for item 4 for excess consumption.

Choose Post.

Hint: To calculate lower consumption instead ofexcess consumption, you would enter the quantitywith a negative sign, or select the indicator forunderconsumption (transaction MIGO).





Exercise 29: Invoice Receipt for aSubcontract Order

Exercise ObjectivesAfter completing this exercise, you will be able to:� Show manual entry of the invoice in invoice verification� Explain the items in the accounting document

Business ExampleYour vendor (the subcontractor) sends you an invoice for the servicerendered, that is, the production of your desired material with thecomponents that you provided. You enter the vendor�s invoice usingLogistics Invoice Verification.

TaskYou receive the following invoice from your vendor (subcontractor):

INVOICE

Harvey Parts & Co (Vendor T-L10A##)Invoice date:



T-F1## 10 pc. 100.00 EUR 10,000.00 EURPump PRECISION 100VAT 10% (1l) 1,000.00 EURInvoice amount: 11,000.00 EUR

1. Enter the vendor�s invoice in company code 1000. Make a note of thedocument number.


___________________________________

2. Display the invoice document and the accounting document. Whataccounts are updated?




Account numberDescription Value______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________

3. Display the purchase order history for your subcontract order.



Solution 29: Invoice Receipt for aSubcontract OrderTaskYou receive the following invoice from your vendor (subcontractor):

INVOICE

Harvey Parts & Co (Vendor T-L10A##)Invoice date:



T-F1## 10 pc. 100.00 EUR 10,000.00 EURPump PRECISION 100VAT 10% (1l) 1,000.00 EURInvoice amount: 11,000.00 EUR

1. Enter the vendor�s invoice in company code 1000. Make a note of thedocument number.





___________________________________



Enter the invoice in company code 1000 using the following data.

Hint: If the system does not offer company code 1000 asa proposal straight away when you enter the incominginvoice, first choose Edit→ Switch company code. Thenenter company code 1000.



Reference: 471113##


Tax amount: 1,000.00 EUR

Tax code: 1l (that is, 10%)


Document number of thepurchase order noted above

Choose Enter.

Check the difference.

Choose Post.

2. Display the invoice document and the accounting document. Whataccounts are updated?




Account numberDescription Value______________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _______________


Accept the default values for the fields Invoice doc. number andFiscal year and choose Enter or Display doc..


Account numberDescription Value

T-L10A## Creditor number of vendor 11,000.00 EUR

191100 GR/IR clearing account 10,000.00 EUR154000 Input tax 1,000.00 EUR

3. Display the purchase order history for your subcontract order.


In the lower part of the screen (item detail), select the tab pagepurchase order history.



Lesson Summary

You should now be able to:� Post the goods receipt for the subcontract order� Explain which amounts are posted to which accounts as a result of




Related InformationYou can find further information about subcontracting in purchasing inthe SAP Library under SAP R/3 Application Components→ Logistics→Materials Management (MM)→ Inventory Management (MM-IM)→Special Stocks and Special Procurement Forms→ Subcontracting.


SCM680 Unit Summary

Unit SummaryYou should now be able to:� Flag a certain material for subcontracting by means of a special

procurement key in the MRP data of the material master.� Check the bill of material (BOM) for the material� Determine the requirements for the material using single-item




scheduling agreement� Monitor the subcontractor�s stock� Create a delivery in order to send the required component quantity to


for subcontracting� Post the goods receipt for the subcontract order� Explain which amounts are posted to which accounts as a result of





Course Summary SCM680

Course SummaryYou should now be able to:

� Map the process of third-party order processing in an enterprise� Map the process of cross-company-code sales in an enterprise� Map the intra-company-code stock transfer process in an enterprise� Map the cross-company-code stock transfer process in an enterprise� Map the process of subcontracting in an enterprise


Appendix 1Overview of G/L accounts and Postings in MM and SD

The basic principle of duplicate financial accounting is that each businessprocess is always posted to two different accounts. In the most simple ofcases, only two accounts are affected.

The fundamental posting record is thus debit to credit.

Figure 72: Duplicate financial accounting

In this way, one account is debited while the other account is debited.

Basic principle: Regardless of the number of accounts affected, the total ofdebit postings always equals the total of credit postings.


Appendix 1: Overview of G/L accounts and Postings in MM and SD SCM680

Figure 73: Account types - balance sheet accounts

Business transactions are posted to accounts (= invoices, on which valuemovements are registered, are maintained on both sides).

In this way, accounts can be assigned to different groups of basic accounts,which themselves can be separated into two categories.

Balance sheet accounts (property and capital or debt accounts) to whichstock and its changes are posted.

P&L accounts (expense accounts, cost accounts and revenue/serviceaccounts) to which successful operations are posted.

The structure of all accounts corresponds to the fundamental equation:Opening stock + acquisition - retirement = closing stock

The named accounts differ according to the account side to which theopening stock, acquisition and retirement, as well as closing stock areposted.


SCM680 Appendix 1: Overview of G/L accounts and Postings in MM and SD

Figure 74: Account types - P&L accounts

In the example of an SD business process, an accounting document iscreated at the time of goods issue as well as at the time of invoice creation.

Figure 75: Example: Postings in SD



At the time of the goods issue, the goods physically leave the warehouse.In this way, posting on both a stock basis and a value basis occurs. Thestock is thus reduced and the material usage increased. The posting isthus material usage to stock.

At the time of billing, receivables are created at the customer andacquisitions are posted for the sales of goods. (Posting record: receivablesfor sales of goods).

If the incoming payments are made in FI, the receivables are reduced andthe monetary payment is posted to a bank account (Posting record: bank toreceivables).

In this simplified example, the posting of output tax has not been takeninto consideration.

Figure 76: Example: Postings in MM

In the example of an MM process, an acquisition in the stock occurs at thetime of the goods receipt. In terms of the booking, the clearing postingtakes place against a special goods receipt/invoice receipt clearing account(stock to goods receipt/invoice receipt clearing account).

As long as standard prices are used for the evaluation, it may possibly benecessary to post the difference amount between the purchasing costs andevaluation to a price difference account.


SCM680 Appendix 1: Overview of G/L accounts and Postings in MM and SD

At the time of invoice creation, the GR/IR clearing account is creditedand payables are created for the relevant creditor (GR/IR clearing accountto creditors).

Throughout the payment run, the payables are settled and a retirement isregistered in the bank account (Payables to bank).

In this simplified example, the posting of accumulated taxes has not beentaken into consideration.




IndexAAccount assignmentcategory, 38

ALE function, 39Automatic

invoice receipt, 202purchase order, 6third-party processing,4

Automatic posting tovendor account, 108

Availabilityof the component, 248

Availability check, 180BBackward scheduling, 12Bill of material, 244�245,248, 250, 267

Billing due list, 54, 98�100Billing relevance, 54Billing type, 99

IV, 100, 108Blocked stock, 133By-product, 292CCalculation schema,104�105

Collective billing run, 98Collective deliveryprocessing, 151, 197

Company-code clearingaccount, 138

Component, 244, 247, 263,292

Condition typesPI01 and IV01, 102,104�106PI01 and PI02, 77

Copying control, 55Costs, 105Creating a third-partyorder automatically, 39

Credit-sideinvoice, 107

Cross-company-code stockin transit, 178, 201, 226

Customer billingdocument, 54

DDelivering plant, 76Delivery, 98, 268Delivery address, 12, 37,271

Delivery costs, 132Delivery due list, 91Delivery note, 92, 130Delivery proposal, 11Delivery type, 155

Cross-companyreplenishment, 198NL, 154SC, 269

Dependent requirement,245

Document flow, 38, 56, 152for replenishmentdelivery, 225

EEDI, 202EDI message categoryINVOIC, 108�109

Excess orunderconsumption,292

External procurementstorage location, 136


Index SCM680

FForward scheduling, 14GGoods issue posting, 156Goods receipt, 40, 156Goods receipt/issue slip,267

Goods recipient, 37,152�153, 197

IIncoming invoice, 53, 107Intercompany billing, 74,77, 100, 102, 201

Internalbilling document, 77,227invoice, 99, 101price, 99, 103

Internal invoice, 201INVOIC, 202Invoice receipt, 227Invoiced quantity, 55Item category, 5�6

ALES, 6, 40LBN, 271NLC, 199NLN, 155, 157stock transfer, 137subcontracting, 249TAS, 5�6, 10, 40, 55Third-party, 38�39

Item categorydetermination, 155

Item category group, 6, 155LLE outbound delivery, 130,157

LE shipping, 156Loading group, 155, 268Logistics Execution (LE)outbound delivery, 130,152

MManual

third-party processing,4

Material document, 156Material stock account, 200Message category INVOIC,108

Message determinationschema, 108

Message type RD00, 108Message type RD04, 108Monitoring ofsubcontracting stock,265

Movement typefor stock transportorder, 157, 199

Moving average price, 56,77

MRP area, 245OOne-step procedure, 131,133�134, 136, 156

Outbound delivery, 91, 151PPack, 91, 130Part provided to a vendor,245

Payer, 99�102, 202Permitted

delivering plants, 74item category, 247

Physical inventory, 264Pick, 91, 130Pick list, 91Planned delivery time,11�12

Price determination, 104,178, 181in cross-company-codesales, 76

Price for intercompanybilling, 77

Procurement type, 134Product allocation forthird-party items, 11


SCM680 Index

Profit margin, 53Profitability analysis, 106Purchase order history, 38,54, 132, 151, 157, 226

Purchase order scheduling,11�12

Purchase order text, 37Purchasing departmentprocessing time, 12

Purchasing info record, 248QQuota arrangement, 35, 248RReplenishment delivery,151�152, 154, 156�157,197, 225

Requirements planning,245, 251

Requirements/stockoverview, 136

SSales order, 249Sales revenue, 105Schedule line, 250Schedule line category, 7,199CS, 5, 8, 10NC, 158NN, 157�158SC, 271

Scheduling agreement, 179Scheduling agreementschedule line, 250

Service specifications, 248Shipping, 268Shipping condition, 152,155, 268

Shipping documents, 268Shipping point, 91, 152, 268Shipping pointdetermination, 155

Source determination, 34Source list, 35

Source of supply, 11�12, 34Special procurement key,134, 245�246

Special stock, 265Stock in quality inspection,133, 264

Stock in transit, 132�133,137, 156

Stock of material providedto vendor, 244, 263, 266,271

Stock transfer, 101, 129, 131,267

Stock transport order,130�131, 133, 136, 151,154, 177, 179

Stock transport schedulingagreement, 137

Subcontracting, 243Subcontracting schedulingagreement, 248, 250

Subsequent adjustment,244, 292

Supplying plant, 134, 180System message, 225TThe stock transferprocedure, 157

Third-party processing, 3Transfer order, 91Transfer posting, 129, 267Transportation zone, 152Two-step procedure, 132,156, 177

UUnrestricted-use stock, 133Usage, 155VVendor

for the supplying plant,180

Vendor invoice, 53


Index SCM680


FeedbackSAP AG has made every effort in the preparation of this course toensure the accuracy and completeness of the materials. If you have anycorrections or suggestions for improvement, please record them in theappropriate place in the course evaluation.
