Terp10 en Col10 Ilt Fv Inst a4

TERP10 SAP ERP Integration of Business Processes

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INSTRUCTOR HANDBOOK INSTRUCTOR-LED TRAINING . Course Version: 10 Course Duration: 10 Day(s) Material Number: 50112002

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About This Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study. Typographic Conventions American English is the standard used in this handbook. The following typographic conventions are also used.

This information is displayed in the instructor’s presentation

Demonstration

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Related or Additional Information

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Contents xiii

Course Overview

1

Unit 1:

2 6 25

Lesson: Explaining Interrelated Business Processes Lesson: Using SAP Business Suite to Automate Business Processes Unit 2:

26 39 51 63 67 71 79

Unit 3:

124 127 130 135

45 Minutes 30 Minutes 45 Minutes 15 Minutes 30 Minutes 15 Minutes

Financial Accounting Basics Lesson: Describing the Tasks in Financial Accounting at SAP Lesson: Defining Organizational Structures in Accounting Exercise 3: Organizational Levels Lesson: Defining General Ledger Master Data Exercise 4: Display a Chart of Accounts Exercise 5: Create a General Ledger Account Master Record Lesson: Using the General Ledger Exercise 6: Post a G/L Account Document Exercise 7: Query an Account

Unit 4:

45 Minutes 45 Minutes

SAP ERP Basics and Navigation Lesson: Defining System-Wide Concepts Lesson: Explaining SAP NetWeaver Business Warehouse Concepts Lesson: Navigating Within the SAP ERP System Exercise 1: Navigate Within the SAP ERP System Lesson: Personalizing the User Interface Exercise 2: Personalize the User Interface

80 88 91 94 99 101 108 111 117 123

Automation of Business Processes

45 Minutes 45 Minutes 15 Minutes 45 Minutes 10 Minutes 15 Minutes 45 Minutes 15 Minutes 10 Minutes

Management Accounting Basics Lesson: Describing the Functions of Management Accounting Lesson: Defining Organizational Levels in Management Accounting Lesson: Performing Postings to Management Accounting Exercise 8: Post an Expense to a Cost Center


45 Minutes 45 Minutes 45 Minutes 20 Minutes

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141

Purchase-to-Pay Processing in SAP ERP

143 146

Lesson: Describing the Purchase-to-Pay Business Process Lesson: Identifying Organizational Levels that Support the Purchase-to-Pay Business Process


153 158 163 171 175 184 191 195 198 205 211 215 225 233 237

Exercise 9: List the Organizational Levels Lesson: Defining Material Masters Exercise 10: Create a Material Master Lesson: Working with Vendor-Specific Master Data Exercise 11: Create a Vendor Master Record Lesson: Using Purchase Requisitions Exercise 12: Create a Purchase Requisition Exercise 13: Process a List Display of Purchase Requisitions Lesson: Using Purchase Orders Exercise 14: Create a Purchase Order Exercise 15: Process a General Analysis Lesson: Posting Goods Receipts for Purchase Orders Exercise 16: Enter a Goods Receipt Lesson: Performing Warehouse Management Tasks Exercise 17: Putaway with a Warehouse Management Transfer Order Lesson: Processing a Vendor's Invoices Exercise 18: Enter a Vendor's Invoice Exercise 19: View a Vendor's Open Items Lesson: Processing the Automatic Payment Run Exercise 20: Process an Automatic Payment Run Exercise 21: View a Vendor's Cleared Item Lesson: Identifying Purchase-to-Pay Integration Points

10 Minutes 45 Minutes 20 Minutes 45 Minutes 10 Minutes 45 Minutes 20 Minutes 10 Minutes 45 Minutes 20 Minutes 10 Minutes 45 Minutes 10 Minutes 45 Minutes 20 Minutes

241 247 253 256 259 263 266

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Unit 5:

45 Minutes 15 Minutes 10 Minutes 45 Minutes 15 Minutes 10 Minutes 30 Minutes


275

Unit 6:

Plan-to-Produce Processing in SAP ERP

278 280

Lesson: Describing the Plan-to-Produce Business Process Lesson: Defining Organizational Levels for Plan-to-Produce Business Process


282 285 291 295 298 301 307 311

Lesson: Defining Products and Bills of Materials Exercise 22: Display a Material Master Exercise 23: Display a Bill of Material Exercise 24: Display a Multi-Level BOM Report Lesson: Defining Production Processes Exercise 25: Add Components to a Routing Operation Exercise 26: Display a Work Center Lesson: Integrating Management Accounting and Production Planning Exercise 27: Display a Cost Center Exercise 28: Display an Activity Type Exercise 29: Display an Activity Type Price Lesson: Planning Product Costs Exercise 30: Create a Product Cost Estimate Lesson: Planning Product Demand Exercise 31: Create a Sales and Operations Plan Exercise 32: Transfer a Sales and Operations Plan to Demand Management Lesson: Defining the Material Requirements Planning (MRP) Process Lesson: Processing Material Requirements Planning (MRP) Exercise 33: Run MRP Lesson: Describing the Manufacturing Business Process Lesson: Planning Production Exercise 34: Convert a Planned Order to a Production Order Exercise 35: Release a Production Order Lesson: Staging Material Exercise 36: Withdraw Material for an Order Lesson: Recording Manufacturing Activities Exercise 37: Enter the Production Order Confirmation and Goods Receipt Exercise 38: Process a List of Completed Production Orders Lesson: Utilizing Transfer Postings and Stock Transfers Exercise 39: Enter a Transfer Posting from Quality Inspection to Unrestricted-Use Stock Exercise 40: Process a Stock Transport Order Lesson: Performing Period-End Activities for Production Orders Exercise 41: Calculate Manufacturing Variances Exercise 42: Perform an Order Settlement Lesson: Reviewing the Plan-to-Produce Integration Points

45 Minutes 10 Minutes 10 Minutes 5 Minutes 45 Minutes 10 Minutes 10 Minutes 45 Minutes

319 321 323 326 333 338 341 349 353 355 361 366 369 371 375 379 381 384 389 393 396 399 403 408 411 413 416


10 Minutes 10 Minutes 10 Minutes 45 Minutes 25 Minutes 45 Minutes 10 Minutes 10 Minutes 30 Minutes 45 Minutes 20 Minutes 30 Minutes 45 Minutes 15 Minutes 15 Minutes 30 Minutes 25 Minutes 45 Minutes 15 Minutes 10 Minutes 45 Minutes 10 Minutes 20 Minutes 45 Minutes 10 Minutes 10 Minutes 30 Minutes

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433

Order-to-Cash Processing in SAP ERP

436 439

Lesson: Describing the Order-to-Cash Business Process Lesson: Defining Organizational Levels for the Order-to-Cash Business Process


446

Lesson: Working with Customer-Specific Master Data in Order to Cash Exercise 43: Create a Customer Master Record Lesson: Using Material Master Records Exercise 44: Change a Material Master Lesson: Defining Pricing Conditions Exercise 45: Create a Customer Material Condition Record Lesson: Creating Sales Orders Exercise 46: Create a Sales Order Exercise 47: Display Sales Orders Lesson: Delivering Sales Orders Exercise 48: Create a Delivery Document Exercise 49: Create a Transfer Order Exercise 50: Post a Goods Issue Lesson: Creating Invoices Exercise 51: Create a Customer Invoice Exercise 52: Process a Customer's Open Item Report Exercise 53: Process a Sales Information System Report Lesson: Receiving Customer Payment Exercise 54: Receive a Customer Payment Exercise 55: Process an SAP NetWeaver Business Warehouse Sales Report Lesson: Measuring Profitability Using Profit Center Accounting Exercise 56: Process a Profit Center Report Lesson: Measuring Profitability Using Profitability Analysis Exercise 57: Process a Profitability Analysis Report Lesson: Reviewing Integration Points in Order to Cash

45 Minutes

451 458 461 465 467 470 477 481 485 489 495 501 505 509 513 515 519 521 525 530 537 540 545 549

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Unit 7:

15 Minutes 30 Minutes 10 Minutes 45 Minutes 10 Minutes 45 Minutes 15 Minutes 10 Minutes 45 Minutes 10 Minutes 10 Minutes 10 Minutes 45 Minutes 15 Minutes 5 Minutes 10 Minutes 45 Minutes 15 Minutes 10 Minutes 45 Minutes 10 Minutes 45 Minutes 15 Minutes 30 Minutes


557

Unit 8:

Internal Orders, Fixed Assets, and Enterprise Asset Management

560 562 565

Lesson: Describing the Process Lesson: Creating Fixed Assets Exercise 58: Create a Fixed Asset Master Record

30 Minutes 45 Minutes 15 Minutes

568 571 575 577 582 585 589 591 594 599 602 605 613 615

Lesson: Monitoring Costs Using Internal Orders Exercise 59: Create an Internal Order Lesson: Using Commitment Management Exercise 60: Process a Commitment for an Internal Order Lesson: Settling Internal Orders Exercise 61: Settle an Internal Order Exercise 62: Process an Internal Order Report Exercise 63: Review the Asset Explorer Lesson: Performing Period-End Activities for Fixed Assets Exercise 64: Process an Asset History Sheet Lesson: Defining Organizational Levels for EAM Lesson: Defining Technical Objects in EAM Lesson: Integrating EAM and Fixed Asset Accounting Exercise 65: Display an Asset Master Record and the Corresponding Equipment Master Record Lesson: Creating Maintenance Notifications Exercise 66: Create a Maintenance Notification Lesson: Creating Maintenance Orders Exercise 67: Create a Maintenance Order Lesson: Performing Maintenance Activities Exercise 68: Perform Material Planning Exercise 69: Perform an Overall Completion Confirmation Lesson: Completing a Maintenance Order Exercise 70: Change the Status of a Maintenance Order to Technically Complete Exercise 71: Compare Plan and Actual Costs for a Maintenance Order

45 Minutes 10 Minutes 45 Minutes 20 Minutes 45 Minutes 15 Minutes 10 Minutes 10 Minutes 30 Minutes 15 Minutes 20 Minutes 45 Minutes 45 Minutes 15 Minutes

618 623 626 631 635 641 647 651 655 661


45 Minutes 20 Minutes 45 Minutes 15 Minutes 45 Minutes 45 Minutes 20 Minutes 45 Minutes 10 Minutes 10 Minutes

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679

Project Systems in SAP ERP

681 689 697

Lesson: Defining Project Structures Exercise 72: Create a Project with WBS Elements Exercise 73: Assign a Network to a Project

45 Minutes 15 Minutes 10 Minutes

700 707 711 717 722 725 731 734 737 743 746 749 753 755 758 761 764

Lesson: Planning Project Dates Exercise 74: Plan Dates for a Project Lesson: Planning Materials and Resources for a Project Exercise 75: Assign a Resource to an Activity Lesson: Planning and Budgeting Project Costs and Revenues Exercise 76: Plan Costs for a Project Exercise 77: Assign a Budget to a Project Lesson: Recording Project Activities Exercise 78: Enter Time Using CATS Exercise 79: Process a Project Systems Query Lesson: Recording Actual Costs Exercise 80: Post a Material Transaction to a Project Exercise 81: Post an Actual Cost to a Project Exercise 82: Process an Actual Cost Report Lesson: Performing Period-End Closing Activities Exercise 83: Process a Cost Forecast Report Lesson: Reviewing Integration Points

45 Minutes 15 Minutes 45 Minutes 10 Minutes 45 Minutes 20 Minutes 10 Minutes 45 Minutes 10 Minutes 10 Minutes 45 Minutes 10 Minutes 10 Minutes 10 Minutes 45 Minutes 10 Minutes 30 Minutes

777 779 781 795 799 802 807 811 816 823 826 830

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Unit 9:

Unit 10:

Human Capital Management in SAP ERP Lesson: Describing HCM Processes Lesson: Explaining SAP ERP HCM Structures Exercise 84: Display an Organizational Unit Lesson: Hiring Employees Lesson: Managing Employee Records Exercise 85: Display an Employee Master Record Lesson: Developing Employees Lesson: Training Employees Exercise 86: Enroll an Employee into a Training Event Lesson: Describing the HCM Support Processes Lesson: Using Services Interfaces

30 Minutes 45 Minutes 10 Minutes 20 Minutes 45 Minutes 25 Minutes 30 Minutes 45 Minutes 10 Minutes 45 Minutes 45 Minutes


Course Overview TARGET AUDIENCE This course is intended for the following audiences: ●

Application Consultant

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Project Manager

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Project Stakeholder

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Business User

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Super / Key / Power User


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UNIT 1

Automation of Business Processes

Lesson 1 Explaining Interrelated Business Processes

2

Lesson 2 Using SAP Business Suite to Automate Business Processes

6

UNIT OBJECTIVES ●

Identify the primary business processes of an organization

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Outline the interrelationships between the primary business processes of an organization

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Explain how SAP ERP automates the interrelated business processes of an organization

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Explain how SAP ERP fits into SAP Business Suite


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Unit 1 Lesson 1 2

Explaining Interrelated Business Processes

LESSON OVERVIEW This lesson provides an overview of the integrated business processes in SAP ERP. Business Example As a project team member, you actively participate in discussions regarding the core business processing in your organization. For this reason, you require the following knowledge: ●

An understanding of the integration points between the primary business processes in your organization

LESSON OBJECTIVES After completing this lesson, you will be able to: ●


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Primary Business Processes – Purchase to Pay

Figure 1: Purchase to Pay

The purchase-to-pay business process contains the steps that an organization completes to buy goods or services from external vendors.

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Lesson: Explaining Interrelated Business Processes

The purchase-to-pay business process supports the following activities: 1. Request the purchase of goods or services through the use of a purchase requisition. 2. Convert the purchase requisition to a purchase order (PO). 3. Process POs and perform PO follow-up. 4. Accept goods or services by entering a goods receipt referencing the PO. 5. Record and verify the vendor’s invoice. 6. Pay the vendor. Primary Business Processes – Plan to Produce

Figure 2: Plan to Produce

The plan-to-produce business process focuses on the activities that are necessary to plan and manufacture an organization’s products. The plan-to-produce business process includes the following tasks: 1. Forecast product demand. 2. Run material requirements planning (MRP). 3. Manufacture the products.


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Unit 1: Automation of Business Processes

Primary Business Processes – Order to Cash

Figure 3: Order to Cash

The order-to-cash business process involves the activities that an organization performs to sell goods or services to its customers. The order-to-cash business process includes the following tasks: 1. Create a sales order that contains customer requirements. 2. Fill the order and ship the goods to the customer.

Note: For service orders, provide and complete the service to the customer. 3. Invoice the customer for goods or services rendered. 4. Receive the payment from the customer.

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Lesson: Explaining Interrelated Business Processes

Primary Business Processes Interrelationships

Figure 4: Primary Business Processes Interrelationships

The primary logistics business processes are tightly integrated with each other. The process steps completed in one business process can impact and influence the activities in the other business processes. In addition, integration points exist between these logistics processes and Financial Accounting and Management Accounting. LESSON SUMMARY You should now be able to: ●


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5

Unit 1 Lesson 2 6

Using SAP Business Suite to Automate Business Processes

LESSON OVERVIEW This lesson describes how SAP ERP automates the business processes of an organization. In addition, this lesson discusses SAP NetWeaver, which is part of SAP Business Suite. SAP NetWeaver offers extended functionalities to streamline and automate business processes. Business Example As a member of the IT team, you are responsible for streamlining the operations and facilitating innovation across the company. For this reason, you require the following knowledge: ●

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An understanding of the core functionality of the SAP ERP application within SAP Business Suite An understanding of the SAP NetWeaver platform Explain that SAP ERP combines SAP NetWeaver and SAP ERP Central Component. Also, point out that this course is based on enhancement package 5.

LESSON OBJECTIVES After completing this lesson, you will be able to:

6

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Lesson: Using SAP Business Suite to Automate Business Processes

Overview of SAP ERP

Figure 5: SAP ERP

Explain the core functionality of SAP ERP Central Component processes and how they are organized within various modules in SAP ERP Central Component. Accounting, human resources (HR), and logistics are the heart of every enterprise. SAP ERP encompasses all these vital business processes within a company and provides functions for both corporate headquarters and subsidiaries. Every company can benefit from SAP ERP. It is imperative to ensure that the business processes in an organization are integrated, streamlined, and transparent. SAP ERP allows companies to gain better control of their administrative and operations environments, and it increases efficiency and profitability. In addition, the application drives down the cost of integration and deployment by reducing the time to benefit from and leverage existing IT investments. SAP ERP is a combination of components that integrate people, information, and processes comprehensively and flexibly. SAP ERP is designed to allow companies to implement those business functions that they need, when they need them. This design simplifies upgrades and reduces the total cost of ownership. With SAP ERP, SAP has set a new standard for ERP systems. SAP ERP incorporates the following solutions: SAP ERP Financials

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The aim of this solution is to utilize a company’s funds effectively and, therefore, increase profitability in the long term. ●

SAP ERP Human Capital Management (SAP ERP HCM)


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Employees are important resources for every company, and SAP ERP HCM enables you to utilize them effectively toward the success of your company. This solution covers all aspects of human resources, from recruitment and training through payroll. ●

SAP ERP Operations SAP ERP Operations provides extensive solutions for automating and streamlining procurement and logistics execution, product development and manufacturing, and sales and service.

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SAP ERP Corporate Services SAP ERP Corporate Services introduces service solutions for end-to-end life cycles for travel management; environment, health and safety; and real estate management. SAP ERP Corporate Services also addresses the development of efficient incentive programs.

Evolution of SAP R/3 to SAP ERP

Figure 6: SAP R/3 to SAP ERP

Explain that SAP ERP is based on SAP R/3, along with some additional components listed in the figure. SAP ERP Central Component is the evolutionary successor of SAP R/3 and is one of the main components of the SAP ERP application. For each new release, the functions have been extended, applications have been optimized, and interfaces to other software components have been enhanced. SAP R/3 was developed using ABAP, SAP’s own programming language. Since the 1970s, there have been major technology waves from mainframe computing to client server architectures, and from client server technology to service-oriented architecture (SOA).

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In the past, such shifts in technology caused a complete replacement of the underlying IT infrastructure. Since the release of SAP R/3, however, changes and enhancements have been integrated into the system as extensions; they are now integrated as enhancement packages (EHPs). This accelerates and simplifies the upgrade process and adaptation to industry sectors. Enhancement Packages

Figure 7: Enhancement Packages

SAP enhancement packages are currently available for SAP ERP and SAP NetWeaver. These packages are also planned for other Business Suite applications. SAP enhancement packages are optional packages that enable companies to take advantage of ongoing innovations while keeping their core software stable, rather than engaging in large upgrade projects. Each SAP enhancement package provides a collection of new or improved business functions. SAP enhancement packages represent a new software delivery strategy that allows you to add innovations on top of SAP ERP 6.0, without the need to completely upgrade your current release. The enhancement packages for SAP ERP simplify the way customers manage and deploy new software functionality. Customers can electively implement these software innovations from SAP and activate the software according to business demand. As a result, customers can isolate the impact of software updates and implement the new online functionality more quickly, through shortened testing cycles. From a content perspective, each enhancement package either focuses on a dedicated set of improved business processes or adds new processes to the SAP ERP solution map. SAP has thematically grouped these improvements, which you can install with a new approach. The new capabilities included in an EHP focus on the following areas: Simplification

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New capabilities designed to simplify business processes and user interfaces ●

Generic enhancements New generic capabilities for financials, human resources, operations, and corporate services

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Industry-specific enhancements New capabilities delivered for particular industries

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Enterprise service bundles New enterprise services that illustrate the value of service-oriented architecture SOA along business scenarios and needs, extending the functionality of SAP ERP and enabling innovative composite applications to be developed on top of SAP ERP

With the enhancement package delivery technology, SAP provides customers with new developments and enhancements of applications for their existing SAP installations. Quick Facts – Enhancement Packages (EHPs)

Figure 8: Quick Facts – EHPs

SAP enhancement packages allow you to update a subset of the software components that are part of your SAP ERP 6.0 implementation. For example, you are now able to update parts of your SAP ERP Central Component server. The selection of software components is driven by the functional enhancements that you plan to implement.

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Installation of SAP EHPs

Figure 9: Installing SAP EHPs

The following key points summarize the concepts and the recommendations for installing SAP EHPs: ● SAP enhancement packages are cumulative, that is, each new enhancement package includes new innovations and innovations delivered with the previous packages. ●

SAP recommends that you install the latest available enhancement package version.

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You can install enhancement packages and Support Packages in a single step.

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SAP enhancement packages have their own Support Packages (starting with Support Package Version 01), which are equivalent to the Support Package versions for the underlying release. SAP enhancement packages have the same maintenance period as the underlying core application, SAP ERP 6.0. You can install only selected parts of the enhancement package. The selection is driven by functional needs from a business point of view. Installations of enhancement packages, as well as the activation of business functions, are irreversible. Test the installation process and activation of new functions in advance on a sandbox system. Evaluate the runtime, the system behavior, and the system dependencies and impacts. Make sure that the installation is free of errors before going live. As long as no business function has been activated, installation of an SAP enhancement package has no impact on the existing business processes or user interfaces. Activation of business functions is possible only in ABAP-based systems, not Java-based systems. Enhancement packages in Java- based systems are active after installation. Enhancement packages of SAP NetWeaver are active after installation. It is not possible to mix the installation of different enhancement package versions in your ABAP system. Only one enhancement package version is allowed.


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Overview of SAP Business Suite

Figure 10: SAP ERP is a Solution in SAP Business Suite

When a company grows, processes become more complex and the software requirements change. SAP Business Suite offers additional applications that compliment, enhance, and support the processes executed in SAP ERP. Other applications in SAP Business Suite: ●

SAP Customer Relationship Management (SAP CRM)

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SAP Product Lifecycle Management (SAP PLM)

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SAP Supplier Relationship Management (SAP SRM)

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SAP Supply Chain Management (SAP SCM)

SAP NetWeaver is the technical platform that powers SAP Business Suite.

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Overview of SAP NetWeaver

Figure 11: SAP NetWeaver – A Composite Platform

SAP NetWeaver is a web based open integration and application platform that serves as the foundation for SOA and allows the integration and alignment of people, information, and business processes across business and technology boundaries. SAP NetWeaver utilizes open standards to enable integration with information and applications from almost any source or technology. These advantages mean that the total cost of ownership can be considerably reduced not only for SAP solutions, but also for the entire IT landscape. SAP NetWeaver helps you to use existing IT investments in a way that adds value while creating a foundation for future crossenterprise processes.


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SAP NetWeaver

Figure 12: SAP NetWeaver

The figure refers to the old subareas of SAP NetWeaver (people, process, and information integration). Even if not explicitly described, you can use these terms to make the use of SAP NetWeaver clear. With the SAP NetWeaver platform, your organization can implement crucial IT practices in a flexible, step-by-step approach at a low cost. You can address your immediate IT needs first. Since the SAP NetWeaver platform components are tightly integrated, you can expand your practice projects over time within a sustainable cost structure.

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SAP NetWeaver Capabilities in the User Productivity Area

Figure 13: SAP NetWeaver Capabilities in the User Productivity Area

Besides the functions in the context of mobile business and search functions, as provided by the enterprise search application, the SAP NetWeaver Portal is the central component in the user productivity area. An enterprise portal ensures a central point of access to information, applications, and services in the company. Your SAP and non-SAP systems, data warehouse, desktop documents, web content, and web services are brought together on a single user interface. With a single sign-on, you can benefit from the simplified process of authentication and communication between different IT systems. Knowledge Management in the portal converts unstructured data into important company information. Collaboration facilitates cooperation between people within the company and beyond organizational boundaries. Personalization adapts the portal structure to suit the requirements of individual users. Integration Levels – Process Integration Company processes control all the work or procedures in a company. People exchange data within these processes. This exchange can take place manually, without any software support; however, it can also be supported by software. In this case, employees of the company exchange data from applications, which can run on different systems, according to the requirements of the running processes. The term process integration covers a range of requirements that SAP NetWeaver covers with different components. The requirements of process integration are modeling business processes, customizing an application that supports a business process, exchanging data between applications and systems in the context of a business process, and automating business processes. The components that SAP NetWeaver provides in this context range from SAP Solution Manager Customizing to SAP NetWeaver Process Integration (data exchange between applications or systems) to process automation tools such as SAP Business Workflow, ccBPM, and SAP NetWeaver Business Process Management (SAP NetWeaver BPM).


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SAP NetWeaver BPM is used internally by SAP and used externally as a focused processmodeling tool. Integration Levels – Information and Master Data SAP BusinessObjects Business Intelligence (SAP BusinessObjects BI) and SAP NetWeaver Business Warehouse (SAP NetWeaver BW) support you in collecting and evaluating key figures; they also allow you to define objectives and monitor their realization. Analyzing the processes in your company can help you to make them more efficient, thereby reducing costs and increasing customer satisfaction. SAP NetWeaver BW tools and SAP BusinessObjects BI can easily process large volumes of data, and with web reporting, users receive web-based reports quickly and conveniently. With SAP NetWeaver, you can transfer complete analyses to the SAP NetWeaver Portal, where you can execute Knowledge Management functions such as ratings, feedback, notes, and subscriptions. Master data can be stored simultaneously in multiple locations and systems within a company. This multiple-location storage can lead to redundant data and discrepancies, which may interfere with your business process. SAP NetWeaver Master Data Management (SAP NetWeaver MDM) allows you to create cross-company, unified master data and distribute it across various dependent systems. SAP NetWeaver MDM uses the technological foundation of the process infrastructure to distribute the data. However, SAP NetWeaver MDM not only distributes the data; it also checks new master data to determine whether identical master data objects already exist. In addition, it identifies all duplicates, which can be transferred to SAP NetWeaver and used in analyses. This reduces the cost of data management and eliminates data errors. As part of SAP NetWeaver Portal, Knowledge Management delivers functions that enable corporate information to be managed in a structured manner. These Knowledge Management functions support you in structuring information (knowledge) and providing this information to the relevant target groups. The functions include search, classification, and subscription. Depending on the technical conditions, you can use these functions for all aspects of the integrated data sources. Integration Levels – SAP NetWeaver Mobile and Application Foundation SAP NetWeaver Mobile is an SAP NetWeaver technology component that provides the basis for a range of solutions for mobile applications, known as SAP xApps. SAP NetWeaver Mobile represents an enhancement of an existing SAP application. For example, an enhancement to SAP ERP HCM allows you to enter mobile travel data and working times. In the same way, service employees can be directly informed about new orders using a mobile device and they can confirm data directly from the customers instead of writing down the data on sheets of paper and entering them into the back-end system later. The SAP NetWeaver Application Server is the technical basis of the SAP NetWeaver integration platform. The server supports J2EE and ABAP in a shared environment. You can create web services in a development environment that supports all the key standards, such as Simple Object Access Protocol (SOAP), Web Services Description Language (WSDL), and Universal Description, Discovery, and Integration (UDDI). You can create new applications based on Internet standards, such as HTTP, HTTPS, HTML, XML, and JavaScript. SAP NetWeaver is also fully compatible with Microsoft .NET and IBM WebSphere; this increases the potential reusability of software.

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As of SAP NetWeaver Application Server (SAP NetWeaver AS) 6.40, a web services framework is also provided, which allows customers to create and publish web services and access applications and enterprise services. IT Practices

Figure 14: IT Practices

IT practices look at the overall SAP NetWeaver platform in ways that focus on key business goals rather than isolated technology components. These include goals familiar to almost any IT organization. Some of these goals are as follows: The need to combine different integration technologies

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The need to develop composite applications leveraging the existing system investments

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The desire to build new business processes flexibly

SAP NetWeaver Capabilities in IT SAP NetWeaver enables several IT practices. For each IT practice, SAP NetWeaver supports a variety of key activities, all of which are easy to perform using the integrated components of the SAP NetWeaver platform. The following table lists some of the activities: IT Practices

Key Activities

User productivity enablement

Improve user productivity through enhanced collaboration, optimized knowledge management, and personalized access to critical applications and data.


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IT Practices

Key Activities

Data unification

Consolidate, rationalize, synchronize, and manage all master data for improved business processes.

Business information management

Increase the visibility, reach, and usefulness of structured and unstructured enterprise data.

Business event management

Ensure that business events from multiple systems are distributed to the appropriate decision makers in the context of the relevant business processes.

End-to-end process integration

Make disparate applications and systems work together to perform business processes consistently.

Custom development

Rapidly create new enterprise-scale applications that drive the company’s differential advantage.

Unified life-cycle management

Automate application management processes and optimize all facets of an application’s life cycle.

Application governance

Maintain an appropriate level of security and quality in intellectual property and information assets.

Consolidation

Deploy a consolidated technology platform with the ability to allocate computing power according to changing business needs.

Enterprise services architecture

Consolidate and standardize basic processes and leverage existing investments to compose new and distinctive business processes.



IT Scenarios

Figure 15: IT Scenarios

An IT scenario supports a process-oriented implementation approach. IT scenarios enable the following tasks: ● Develop, compose, and run applications. ●

Build, enhance, and operate an IT infrastructure.

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Integrate people, information, and processes.

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Implement a defined IT concept, such as evolving a company’s system landscape into a services-based architecture.

IT scenarios break down the IT practices, allowing an incremental approach to implementing SAP NetWeaver functionality. Each practice can be broken into one or more IT scenarios. Some IT scenarios belong to more than one IT practices and each practice can be broken into one or multiple IT scenarios. For example, the IT scenario Enterprise Search is listed under the IT Practices User Productivity Enablement as well as the Business Information Management. IT scenarios require the functionality provided by SAP NetWeaver, which is organized into installed units. The installed units are building blocks and are composed of clients (such as SAP NetWeaver Developer Studio, Business Explorer, or SAP GUI for Windows), standalone engines (such as Search and Classification, Job Scheduler, or Content Server), and usage types. Usage types are built from technical software components, which form an installable and configurable unit. Usage types are reusable, installed, and preconfigured units. They can be built upon other usage types as well. SAP NetWeaver – Components SAP NetWeaver includes the following components:


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Components

Key Activities

SAP NetWeaver Application Server

Supports platform-independent web services, business applications, and standards-based development, enabling you to leverage the existing technology assets for web-services-oriented solutions

SAP NetWeaver Business Warehouse

Enables you to integrate data from the enterprise and transform the data into practical and timely business information to drive sound decision making

SAP NetWeaver Business Process Management

Provides tools to help you model, execute, and monitor business processes based on a single, consistent process model

SAP NetWeaver Process Integration

Delivers SOA-based technology that supports process-centric integration across the extended value chain

SAP NetWeaver Master Data Management

Ensures cross-system data consistency and helps integrate business processes across the extended value chain

SAP NetWeaver Mobile

Provides a future-proof mobile runtime environment based on open and flexible technology standards, and also provides a powerful development environment for building integrated mobile solutions with native or browser-based user interfaces

SAP NetWeaver Portal

Unifies critical information and applications to give users role-based views that span the enterprise, enabling you to take full advantage of your information resources

SAP Auto-ID Infrastructure

Provides the capabilities you need to integrate all automated sensing devices including radio-frequency identification (RFID) readers and printers, Bluetooth devices, embedded systems, and bar code devices

SAP NetWeaver Identity Management

Addresses access and provisioning issues that an enterprise faces, creates a new opportunity for integrating business processes, and helps you to integrate systems in a heterogeneous IT environment

SAP NetWeaver – Tools SAP NetWeaver includes the following tools:

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Tool

Functions

Adaptive Computing Controller

Provides a central point of control to assign computing resources and optimize their usage

SAP NetWeaver Composition Environment

Provides a robust environment for the design, deployment, and running of composite applications that comply with service-oriented architecture

SAP NetWeaver Developer Studio

Offers a convenient user interface and rich functionality for developing J2EE applications

SAP NetWeaver Visual Composer

Simplifies the creation of portal content and analytics applications, enabling business analysts to build or customize applications using a visual user interface rather than manual coding

SAP Solution Manager

Facilitates technical support for distributed systems with functionality that covers all key aspects of solution deployment, operation, and continuous improvement

Advantages of SAP NetWeaver

Figure 16: Advantages of SAP NetWeaver

The advantages of SAP NetWeaver are as follows: ● Openness and extendibility


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SAP NetWeaver features complete compatibility and extendibility with the IBM WebSphere and Microsoft .NET technologies in which companies have made significant investments. SAP ensures interoperability with IBM and Microsoft solutions and assists in creating development strategies, defining sales activities, and developing competence and support centers. The integration of SAP NetWeaver with IBM and Microsoft solutions spans all levels, and therefore applies to the integration of people, information, and processes. This means that optimal benefits can be gained from existing IT investments in systems and employee qualifications. ●

Immediate integration SAP NetWeaver enables complete enterprise integration at all critical levels. SAP NetWeaver also provides valuable preconfigured business content. This ready-to-use content is available at all levels of SAP NetWeaver, drastically reducing the implementation time and therefore speeding up the return on investment. The following business content is provided with SAP NetWeaver: Preconfigured portal content and predefined roles for better integration of people

●

-

Reports and analyses for fast integration of information

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Interfaces for linking the business processes in various back-end systems

Lower total cost of ownership SAP NetWeaver leverages your existing IT investments. It integrates and includes systems that are already used in your company. SAP NetWeaver supports the entire software life cycle of business-critical applications with the lowest total cost of ownership. The technology platform is the result of SAP’s 30 years of experience with reliable enterprise solutions. This means that you gain profit from high scalability, continuous uptime, and high security standards.

FACILITATED DISCUSSION What are the advantages of the SAP NetWeaver platform?

LESSON SUMMARY You should now be able to:

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Unit 1

23

Learning Assessment

1. Which of the following are primary logistics business processes? Choose the correct answers. X

A Plan to produce

X

B Order to cash

X

C Accounting management

2. _____________ is the technical platform that powers SAP Business Suite. Choose the correct answer. X

A SAP NetWeaver

X

B SAP NetWeaver Portal

X

C SAP BusinessObjects Business Intelligence


23

Unit 1

24

Learning Assessment - Answers

1. Which of the following are primary logistics business processes? Choose the correct answers. X

A Plan to produce

X

B Order to cash

X

C Accounting management

2. _____________ is the technical platform that powers SAP Business Suite. Choose the correct answer.

24

X

A SAP NetWeaver

X

B SAP NetWeaver Portal

X

C SAP BusinessObjects Business Intelligence


UNIT 2

SAP ERP Basics and Navigation

Lesson 1 Defining System-Wide Concepts

26

Lesson 2 Explaining SAP NetWeaver Business Warehouse Concepts

39

Lesson 3 Navigating Within the SAP ERP System Exercise 1: Navigate Within the SAP ERP System

51 63

Lesson 4 Personalizing the User Interface Exercise 2: Personalize the User Interface

67 71

UNIT OBJECTIVES ●

Describe the underlying concepts that apply to all SAP ERP applications

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Map an organization to the SAP organizational levels

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Identify the master data records that support specific business processes

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Explain how transactions are used in SAP ERP

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Identify various types of reporting solutions

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Explain the basic concepts and architecture of SAP NetWeaver BW

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Identify the aspects of navigation within the SAP system

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Navigate the SAP system

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Personalize the SAP user interface


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Unit 2 Lesson 1 26

Defining System-Wide Concepts

LESSON OVERVIEW This lesson focuses on the underlying concepts of the SAP ERP system. This lesson introduces participants to basic terminology and concepts associated with the SAP ERP system. Before you discuss organizational levels in depth, introduce the basic ERP elements of organizational levels, master data, transactions, and reporting, and explain how they relate to each other. Explain that these basic elements represent a company’s enterprise structure and business processes within the SAP system. Emphasize that these elements are common threads across all SAP applications. List the organizational levels and the master data below each organizational level. As you do this, explain that you cannot create master data unless the organizational levels have been defined. List the transactions below the master data. Explain that organizational levels and master data are required to create transactions; after transactions and master data are created, you can begin reporting.

Business Example As a project team member, you will be using SAP to track and analyze data about your organization. For this reason, you require the following knowledge: ●

An understanding of the underlying concepts that apply to all SAP ERP applications

●

An understanding of the SAP ERP organizational levels and elements

●

An understanding of the master data functions in SAP ERP



●


●


●


●


System-Wide Concepts The system-wide concepts in SAP ERP are as follows: ●

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Organizational levels


Lesson: Defining System-Wide Concepts

●

Master data

●

Transactions

Organizational Levels

Figure 17: Organizational Levels – Terminology

This lesson will be the first introduction to organizational levels for some participants. Explain that organizational levels represent an enterprise’s structure within the SAP ERP Central Component system. Point out that some organizational levels, such as a client, are used by all applications, while other organizational levels, such as a plant, are used by some applications, and still other organizational levels, such as a sales organization, are used by a single application.

The enterprise structure of a company is mapped to SAP applications using organizational units. Organizational units represent the enterprise structure in terms of legal and/or businessrelated purposes. Organizational units include legal company entities, plants, storage locations, sales offices, and profit centers. Examples: ● Client is the highest-level unit of all organizational elements. It represents the enterprise or headquarters group. ●

Company code is a unit used in the balance sheet of a legally independent enterprise. It is the central organizational element of Financial Accounting (FI).


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Unit 2: SAP ERP Basics and Navigation

●

●

Sales organization is the central organizational element of Sales and Distribution that controls the terms of sale to the customer. A division is usually used to represent a product line. Plant is the central organizational unit in the context of production planning. A plant can manufacture product, distribute product, or provide a service.

Material stocks can be differentiated within one plant according to the storage location in the context of inventory management. Organizational units may be assigned to a single application or to several applications. For example, a sales organization is assigned to Sales and Distribution, while a plant is assigned to materials management, production planning, and sales. Master data is created and assigned to organizational structures at various levels. Explain how organizational units are structured to represent the enterprise structure. Define company code, controlling area, plant, and storage location. Remind participants that these organizational levels are seen in most of the business process units.

Master Data

Figure 18: Master Data Example – Customer Master

Explain the concept of master data using the customer master as an example. Explain that common data is stored at the client level while other data is stored at the company code level. Explain the relationship between the master data, organizational structure, and functional business areas. Master data is used long term in the SAP system for several business processes. Master data is created centrally and can be used by all applications and all authorized users for many business processes. Examples of master data in SAP include customers, materials, and vendors. A customer master contains key information that defines the business relationship between a company and its customer. Master data supports the execution of key business processes such as customer requests, deliveries, invoices, and payments.

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Master data also has an organizational aspect because the data is organized into views that are assigned to organizational elements. The customer master in the figure is organized into the following views, each of which is located at a different organizational level: ● General data (client) ●

FI data (company code)

●

Sales data (sales area)

All company codes can use the data on the client level. The customer account number is assigned on the company code level. This means that from a financial view, the same customer has a specific accounts receivable number in all company codes. Other types of master data are assigned to other organizational elements. Material Master – Example of Master Data

Figure 19: Material Master – Example of Master Data

This figure introduces a second important type of master data: the material master. Explain that the material master contains the information that a company needs to manage a type of material. The figure highlights how the data in the material master is grouped into views that are organized by business function. In addition, the figure shows the type of information that the material master maintains. The majority of the views in a material master are at the plant level.

The material master contains the information that a company needs to manage a type of material. The material master defines how a product is sold, manufactured, purchased, inventoried, and costed. The information in the material master is grouped into views that are organized by business function.


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Personnel Record – Example of Master Data

Figure 20: Personnel Record – Example of Master Data

SAP ERP Human Capital Management (SAP ERP HCM) enables you to quickly and efficiently map your current organizational and reporting structure with its organizational objects. The organizational objects include organizational units, jobs, positions, and tasks.

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Transactions

Figure 21: Transactions

Explain how master data is copied during transaction processing to avoid reentry of data. Explain that organizational data is also assigned during transaction processing. Explain the definition of a document. Transactions are application programs that execute business processes in the SAP ERP system. Whenever possible, master data is copied during transaction processing to avoid reentry of data. For example, when you execute the Create Sales Order transaction, you must enter the customer master number. This number is copied into all the relevant customer information. Similarly, when you enter the material master numbers for the items being ordered, the relevant material data is copied into the sales order. In addition, when performing each transaction, you must enter the applicable organizational units. For example, when you specify the sales organization information, the appropriate sales organization and sales statistics are updated. Similarly, the designation of the plant and storage location determines the location for product sourcing. When you execute a business process transaction in the system and save it, a document is created. This document is a record of the transaction, and contains all the predefined information from the master data and organizational elements. A document is generated for each business process transaction carried out in SAP ERP.


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Reporting Solutions in SAP ERP

Figure 22: Reporting and Analytics

Online Transaction Processing (OLTP) is the type of processing typically performed in the SAP ERP system. The necessary reporting in this type of system often refers to the information requirements for day-to-day work. List display enables the user to request a listing of documents or master data information. List displays are reports that access data that is generated directly from online transactions. It is also possible to have information structures to aggregate data for simple operational analytics. In an Online Analytical Processing (OLAP) environment, analytical systems must provide information about the import factors that an enterprise’s management needs for its business decisions. In a data warehouse, key figures are derived from various sources and are aggregated.

Information is created as a result of processing business transactions in SAP ERP Central Component. You can access this information in reports available in SAP ERP Central Component, or you can create your own report with information pulled from SAP NetWeaver Business Warehouse.

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SAP List Viewer and ALV Grid Control

Figure 23: SAP List Viewer and ALV Grid Control

Explain the functions of SAP List Viewer and ALV grid control.

SAP List Viewer and ALV grid control standardize and simplify the handling of lists in SAP systems. There is a uniform user interface and list format for lists that help you to avoid redundant functions. You can use ALV grid control not only in list displays (for example, the list of material documents) but also in other transactions (for example, purchase requisition). Not all lists use the full range of SAP List Viewer functions. Some lists offer special functions above the scope of SAP List Viewer. You can change the appearance and content of the lists using the layout (display variant) pushbutton. The key elements of SAP List Viewer and ALV grid control are as follows: Uniform design of all lists and tables

●

●

Cross-application and standardized function with uniform icons

●

Creation and modification of layouts

Note: For more information on SAP List Viewer and ALV grid control, refer to the SAP Library under Introduction to the SAP system → Working with the SAP GUI → Lists.


33


Logistics Information System (LIS)

Figure 24: Logistics Information System (LIS)

Explain the structure of LIS. It is important to clarify that separate tables are filled for the analyses – the information structures. Also explain that there are different info systems in SAP depending on the various application components.

The LIS offers a range of application-related (modular) information systems. All information systems have a standard interface and provide similar basic functions. At the same time, the modular structure also caters to special aspects in each information system. The type of data retention is identical in all information systems within the LIS. A number of special tools and working methods underscore the typical character of a data warehouse in the LIS. In the LIS, you can distinguish between the following information systems: Sales Information System (SIS)

●

34

●

Purchasing Information System (PURCHIS)

●

Inventory Controlling (INVCO)

●

Warehouse Management Information System (WMIS)

●

Shop Floor Information System (SFIS)

●

Quality Management Information System (QMIS)

●

Plant Maintenance Information System (PMIS)

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Retail Information System (RIS)



Reporting in LIS

Figure 25: Reporting in LIS

The key features of standard analyses are as follows: ● Standard analyses provide comprehensive data evaluation options based on the data in the standard information structures in LIS. ●

●

Standard analyses provide a multitude of functions to facilitate a detailed and targeted evaluation of data. Standard analyses define the scope of the data to be evaluated using various selection options. The selection of key figures to be evaluated can be either preset or made interactive during the analyses.

You can use the Early Warning System (EWS) to search for unusual patterns. EWS enables you to react in time to predefined exception situations and correct them. The key features of flexible analyses are as follows: Flexible analyses help you to compile and aggregate key figures on an individual basis. You can also structure the layout of your report to meet specific requirements.

●

●

●

Flexible analyses help you to define key figures whose content is derived from existing key figures by using calculation formulas for reports. Flexible analyses help you to multiply key figures or calculate the quotient of two key figures.

The data in the list is generated from advanced reports with the SAP Query tool.


35


Information Structures

Figure 26: Information Structures

The tables of the Logistics Data Warehouse are called information structures or info structures. The types of information contained in the information structures are as follows: Characteristics

●

Characteristics comprise information that is suitable for aggregation. Therefore, the analysis objects of the real business world are included in information structures as classification keys in the form of characteristics. Statistical information on characteristics, such as vendor, customer, or material, is updated in the aggregated form. Organizational elements such as purchasing group, material group, valuation area, plant, or storage location are also used as characteristics in the information structures. ●

Periodicity (time base) The time base affords another option for aggregation. The data is cumulated not only per characteristic, but also per period. Possible periods are day, week, month, and posting period.

●

Key figures Key figures are updated for each characteristic combination and periodicity. Key figures are quantitative values that provide information on measurable facts. Key figures can be derived for each classification key by cumulation (purchase or production order quantity, for example). Key figures can also be simple counters, such as the number of deliveries or the number of purchase orders.

The standard SAP system contains various information structures for different application areas. With the aid of easy-to-use tools, you can group characteristics and key figures into individual information structures to meet specific requirements. Separate update programs can be used to supply these information structures with data.

36



Standard Analysis The data basis for a standard analysis is established by specification of the object to be analyzed (for example, purchasing group, vendor, or material group) and by selection. You can then display this dataset structured in different ways. You can also store the selected data from a standard analysis for later analyses. Various functions are available when performing standard analyses. Some of these are included in the following list: ●

Drilldown function

●

Choose key figures and change their order

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Sort list

●

Create ranking sequence

●

ABC analysis

In standard analyses, a fundamental distinction is made between the basic list and a drilldown list. The basic list gives you an overview of the characteristic values for key figures in accordance with previously chosen selection criteria. With the aid of the drilldown function, you can vary the depth of information. That is, you can display the data that appears in a list in greater detail with regard to certain criteria. You can either determine the order in which the information is broken down by you or follow a predefined analysis path by using the standard drilldown. Reporting in Standard Analyses

Figure 27: Reporting in Standard Analyses

Some of the functions that you can perform for all list levels are as follows: Cumulative frequency curve

●

●

Correlation


37


●

ABC analysis

●

Classification

●

Segmentation

●

Ranking lists

You can present all results in the form of figures. You can also display the complete master record and document information using the standard transactions of the application from various breakdown levels. LESSON SUMMARY You should now be able to:

38

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Unit 2 Lesson 2 38

Explaining SAP NetWeaver Business Warehouse Concepts

LESSON OVERVIEW This lesson introduces you to the basic concepts, architecture, and functions offered by SAP NetWeaver Business Warehouse (SAP NetWeaver BW). Explain that Business Intelligence allows you to analyze data from any operational SAP system and any other business application. You can also extract and analyze data from external sources such as databases, online services, and the Internet.

Business Example As a project team member, you are required to implement SAP NetWeaver BW in your organization. You need to familiarize yourself with its terminology and functionality. For this reason, you require the following knowledge: ●

●

An understanding of the basic concepts and architecture of SAP NetWeaver BW An understanding of how SAP NetWeaver BW reporting and analysis tools support various business processes



Business Intelligence Platform

Figure 28: Business Intelligence Platform


39


A complete business intelligence solution is subdivided into various areas. SAP brings together a powerful business intelligence infrastructure, a comprehensive set of tools, planning, and simulation capabilities, and data warehousing functionality, all delivered through enterprise portal technology. The functionality of business intelligence enables strategic analysis and supports decisionmaking within a company. Authorized employees can access and evaluate historical and current data at different levels. SAP NetWeaver BW Architecture

Figure 29: SAP NetWeaver BW Architecture

The SAP NetWeaver BW architecture contains the following layers: Extraction

●

Enterprise data is collected centrally in SAP NetWeaver BW. The data is usually extracted from various sources and loaded into SAP NetWeaver BW. SAP NetWeaver BW supports all kinds of sources, both relational and multidimensional, SAP and non-SAP. You can perform technical cleanup and apply business rules to consolidate the data for evaluations. The consolidated data is stored in the enterprise data warehouse. This entire process is called extraction, transformation, and loading (ETL). ●

Data storage and data flow SAP NetWeaver BW offers a number of options for data storage. These options include the implementation of a data warehouse or an operational data store, and the creation of the data stores used for the analysis.

●

Data analysis and planning You have several options to analyze business data consolidated in the enterprise data warehouse. The information gained from an analysis of the dataset can be used as a basis for decision making in your company.

40


Lesson: Explaining SAP NetWeaver Business Warehouse Concepts

Online analytical processing (OLAP) prepares information for large amounts of operative and historical data. SAP NetWeaver BW’s OLAP processor allows multidimensional analyses from various business perspectives. Data mining helps to explore and identify relationships in your data that you might not discover at first sight. SAP NetWeaver BW Source Systems/Tools

Figure 30: SAP NetWeaver BW Source Systems/Tools

SAP NetWeaver BW enables the analysis of data from operative SAP applications and all other business applications and external data sources, such as databases, online services, and the Internet. Administrator Workbench (AWB) functions allow you to control, monitor, and maintain all data procurement processes. SAP NetWeaver BW enables OLAP for staging information from large amounts of operative and historical data. OLAP technology permits multidimensional analyses according to various business perspectives. The SAP NetWeaver BW server, which is preconfigured by business content for core areas and processes, allows you to examine the relationships in every area within your company. Business content provides targeted information to companies, organized by roles. This helps employees to perform their tasks better. Business content includes other preconfigured objects such as InfoCubes, queries, key figures, and characteristics. These objects facilitate the implementation of SAP NetWeaver BW. The SAP Business Explorer (SAP BEx) tools provide users with extensive analysis options.


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SAP NetWeaver BW Terminology – InfoSource and DataSource

Figure 31: InfoSource and DataSource

An InfoSource is a set of information that logically belongs together, summarized into a single unit. An InfoSource is located in the business intelligence system and contains a communication structure which, in turn, delivers the data that is to be sent to the InfoCube. An InfoCube contains InfoObjects, which represent data that logically belongs together for the InfoSource. The DataSource in the online transaction processing (OLTP) system contains the extraction source structure and transfer structure. The extraction program uses these structures to access and extract data from the source system. The DataSource is replicated in the SAP NetWeaver BW system. This is where a duplicate of the transfer structure is generated. The transfer structure in the business intelligence system is linked with the InfoSource using transfer rules. Transfer rules allow incoming data to be debugged and modified. InfoSources can comprise transaction data and master data that include attributes, texts, and hierarchies.

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SAP NetWeaver BW Terminology – InfoObjects

Figure 32: InfoObjects

Begin by defining characteristics as sorting keys or reporting dimensions. Provide examples such as company code, product, customer group, fiscal year, period, and region. Key figures provide the values that are reported in a query. Key figures can be quantity, amount, or number of items. Next, define an InfoObject as business evaluation objects. InfoObjects are the smallest available units of business intelligence. InfoCubes are central data containers that form the basis of reports. An InfoCube is a set of relational tables that are depicted as a star schema. A star schema shows a large fact table in the center with several dimension tables surrounding it. The facts in a fact table are key figures and the dimension tables store the links to the characteristics. You can use InfoProviders as an object to create reports in BEx. InfoCubes are a type of InfoProvider. There are two types of InfoProviders. The first type includes objects that contain physical data, such as InfoCubes, DataStore objects, and InfoObjects (characteristics with attributes or texts). The other type includes objects that are not physical data stores, such as InfoSets, VirtualProviders, and MultiProviders.

Business evaluation objects (companies, sales volumes, and so on) are called InfoObjects in SAP NetWeaver BW. InfoObjects can be divided into characteristics and key figures. Characteristics can be further divided into units, time characteristics, and technical characteristics, for example, request ID. Key figures are all data fields that are used to store values or quantities (sales volumes, net sales, and costs). Characteristics describe the affiliation of key figures.


43


SAP NetWeaver BW Terminology – InfoCubes

Figure 33: InfoCubes

The features of InfoCubes are as follows: ●

●

●

●

●

44

InfoCubes are the central data containers that form the basis of reports and analyses in SAP NetWeaver BW. InfoCubes contain key figures (sales volumes, incoming orders, and actual costs) and a link to the characteristics (master data of the SAP NetWeaver BW system such as cost centers, customers, and materials). Each InfoCube should contain a self-contained dataset, because queries primarily refer to one InfoCube. Master data in the SAP NetWeaver BW system consists of attributes of a characteristic, for example, the person responsible for a cost center, as well as hierarchies and texts of a characteristic. An InfoCube consists of several database tables that are linked according to the star schema. InfoCubes include a fact table that contains the InfoCube key figures, and several surrounding dimension tables that store the links to the characteristics. Each InfoCube has one fact table and a maximum of 16 dimension tables. Each fact table can contain a maximum of 233 key figures. A dimension can contain up to 248 freely available characteristics. InfoCubes are stored in structures in the SAP NetWeaver BW system. If you want to store an InfoCube, you create a new folder or use an existing one. This is similar to the method used to store data on a personal computer. These folders are called InfoAreas in SAP NetWeaver BW.



SAP NetWeaver BW Terminology – InfoProvider

Figure 34: InfoProvider

The features of InfoPoviders are as follows: ● InfoProvider is the superordinate term for an object that you can use to create reports in BEx. ●

●

●

InfoProviders are objects or views that are relevant to reporting. InfoProviders include various database metaobjects that deliver data for query definitions. The type of data procurement differs depending on the InfoProvider used. However, the type of data procurement has no influence on reporting. InfoProviders deliver data that can be analyzed using a query. InfoProviders include two types of data stores. Physical stores include BasicCubes, ODS objects, and InfoObjects. Logical views of physical data stores include InfoSets, RemoteCubes, virtual InfoCubes, and MultiProviders.

The figure gives an overview of SAP NetWeaver BW reportable objects, divided into data targets that contain physical data and InfoProviders that contain only logical views. From the BEx view, only InfoProviders are accessed. The way in which the data is modeled is inconsequential to the SAP BEx tools. An Operational Data Store (ODS) stores data at the basic level (document level). It is used to resolve and consolidate datasets. These datasets are derived from various data sources or source systems. Administrator Workbench (AWB) is a workplace for SAP NetWeaver BW administrators. AWB functions are used to configure, control, and administrate SAP NetWeaver BW.


45


InfoCube to Report

Figure 35: InfoCube to Report

Explain the three components of SAP NetWeaver BW. Business Content contains preconfigured and implemented InfoCubes and queries, as well as the data extractors needed to load them. BEx tools serve as the analysis and reporting interface. BEx tools also allow users to use Business Content or create custom reports and queries. AWB ensures efficient data management.

You can analyze a dataset in the SAP NetWeaver BW by defining queries using the data contained in an InfoCube. An InfoCube is described as a multidimensional cube from which sections are removed whenever characteristics and key figures are chosen in a query definition. The multidimensionality of query data allows you to generate different views of an InfoCube dataset. The OLAP processor compiles queries from the InfoCube data and provides methods that allow multidimensional navigation in the dataset. The BEx requests the data from the InfoCube and provides an updated view of the dataset. Only the data required by the query is transferred. If a new view of data is required during navigation, the OLAP processor provides it from the InfoCube. The data on the application server is always the data from the current and last drilldown.

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Business Intelligence – Reporting

Figure 36: Business Intelligence – Reporting

BEx is the SAP NetWeaver BW component that provides flexible reporting and analysis tools that you can use to conduct strategic analysis and support decision making in your company. Employees with authorization can analyze historical and current data at various levels of detail and from several perspectives. BEx allows a wide spectrum of users to access information in SAP NetWeaver BW. This can be done in the Enterprise Portal from an iView that you can call along with the applications where you extract the data, in the Internet or intranet (Web application design), or using a mobile device (for example, WAP-enabled mobile telephones and personal digital assistants). Web application design allows you to implement generic OLAP navigation in web applications and in business intelligence cockpits for both simple and highly individual scenarios. Highly individual scenarios with customer-defined user interface elements can be constructed using standard markup languages, for example, hypertext markup language (HTML). Web application design encompasses a wide spectrum of interactive web-based business intelligence scenarios that you can modify to suit your requirements using standard web technology. Portal integration includes single point of entry, role-based staging of information, personalization, publication of iViews, and integration of unstructured data. Query, reporting, and analysis include query design using the BEx Analyzer, multidimensional (OLAP) analysis, geographical analysis, ad hoc reporting, and alerts. Web application design includes interactive analytical content, information cockpits and dashboards, a basis for creating analytical applications, creation of iViews for a portal, and wizard help.


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SAP BusinessObjects

Figure 37: SAP BusinessObjects

For more information about SAP BusinessObjects offerings, go to the SAP Developer Network (SDN).

SAP BusinessObjects is the market leader in enterprise business intelligence. By making information easily accessible and consumable with simplified user interfaces, SAP BusinessObjects helps companies to bridge the information divide between business intelligence power users and everyday business users. As a result, organizations gain better business insight, which improves decision making and enterprise performance.

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New Business Intelligence Platform

Figure 38: New Business Intelligence Platform

While some products in the figure complement each other, SAP BusinessObjects Enterprise is not the same as SAP NetWeaver BW (the two lowest building blocks). BusinessObjects does not use a data warehouse in the same way that SAP does; it has direct access to the data sources. BWA stands for BW Accelerator.

Data Integration and SAP BusinessObjects Data Quality Management add the connectivity of SAP NetWeaver BW to heterogeneous sources based on rich content. Users benefit from rapid visibility of critical information and gain a single view of accurate and trusted data. The components of SAP BusinessObjects Enterprise are as follows: SAP BusinessObjects Analysis

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SAP BusinessObjects Analysis is a web-based OLAP client with an advanced and highly intuitive user interface. SAP BusinessObjects Analysis offers multiple connections to multiple OLAP servers and is designed for business analysts to analyze OLAP data and end users to review OLAP data. ●

SAP BusinessObjects Web Intelligence SAP BusinessObjects Web Intelligence is the leading end user reporting and analysis tool in the area of ad hoc reporting. SAP BusinessObjects Web Intelligence has a simple user interface for self-service reporting and analysis (autonomous from IT) and helps to combine SAP and non-SAP data in a single report.

●

SAP Crystal Reports


49


SAP Crystal Reports is the market-leading standard reporting and formatting tool. SAP Crystal Reports enables the creation and modification of highly formatted management reports on top of SAP NetWeaver BW. ●

SAP BusinessObjects Dashboards SAP BusinessObjects Dashboards is a data visualization tool that transforms business intelligence data into engaging presentations and dashboards. SAP BusinessObjects Dashboards facilitates the integration of dynamically updated data into Microsoft Office, PDF, and web documents with SAP BusinessObjects queries and reports. SAP BusinessObjects Dashboards comprises designing and viewing extensions by leveraging SAP BusinessObjects web services.

LESSON SUMMARY You should now be able to: ●

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Unit 2 Lesson 3 49

Navigating Within the SAP ERP System

LESSON OVERVIEW This lesson demonstrates how to work efficiently in the SAP system by personalizing your screens and using different navigation options. Business Example To efficiently use the SAP system, you must be able to navigate the screens and utilize the various options available. For this reason, you require the following knowledge: ●

An understanding of screen structure elements

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How to create a personal favorites list of transactions

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How to personalize screens

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How to navigate various screens

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How to find help



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SAP GUI Screen Layout

Figure 39: SAP Easy Access

The SAP Easy Access screen is the initial default screen of the SAP system. The left panel of the screen contains a tree hierarchy of available menus. The figure in the right panel is determined centrally by your system administrator. For example, the figure can be your company’s logo. Individual users cannot customize this figure.

52


Lesson: Navigating Within the SAP ERP System

SAP Screen Structure

Figure 40: SAP Screen Structure

Please note that the figure is a combination of screens and does not appear this way in the system. Two system releases have been used for this figure, a 6.0 system for the main screen and a 5.0 system for the small radio buttons. An SAP screen contains the following screen elements: Command field

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●

Menu bar

Standard toolbar

You can find the transaction code for an application in the Overview menu on the SAP Easy Access screen, on the status bar, or in the application itself under System → Status.

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The menu bar is the top line of any primary window in the SAP system.

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The menu that is displayed depends on the application you are using.

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●

●


You can start an application directly by entering a relevant transaction code into the command field.

The buttons in the standard toolbar are displayed on every SAP screen. If some buttons are not available in an application, they are deactivated (grayed out). If you place the cursor over a button, the system displays a flag with the name or function of that button.

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Title bar

Application toolbar

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The title bar displays the name of the function that you are currently using. The application toolbar displays the buttons available in the application you are currently using.

Checkboxes

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Checkboxes allow you to select several options from a group of fields.

Radio buttons

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Radio buttons allow you to select a single option from a list.

Tab pages

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Status bar

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Other elements

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Tab pages organize several screen areas to improve clarity and organize data. The status bar displays current information about the system, such as warnings and errors. You can also change the display variant to show, for example, the transaction code of the transaction you are currently using. Other elements include input fields and buttons.

Status Bar

Figure 41: Status Bar

The status bar provides current information about the SAP system and the transaction or task on which you are working. System messages are displayed on the left panel of the status bar, and system information is displayed on the right panel.

54



Discuss and demonstrate the location of the different types of information available on the status bar. Explain the difference between informational messages, warning messages, and error messages.

The following information is displayed on the status bar: ● System ●

Client

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User

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Program

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Transaction

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Response time

To hide the information status fields, choose the arrow located to the left of the fields. Multiple Sessions

Figure 42: Multiple Sessions

The SAP system tracks multiple logons. The primary reasons for tracking multiple logons are security and licensing. If the same user logs on more than once, the system displays a warning message for each subsequent logon. The following warning messages are displayed: ● Continue with this logon and end any other logons of this user in the system. ●

Continue with this logon without ending any other logons in the system (this is tracked).


55


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Terminate this logon.

You can be logged on only once per SAP system. To open several windows at the same time on the same computer, use multiple sessions. You can create a new session at any time. Creating a new session is helpful if you are in the middle of a transaction and need to verify some information to complete the transaction. You can create several sessions, each independent of the others. You do not lose any data in the sessions that are already open. In addition, closing a session does not cause the other sessions to close. Too many open sessions can result in slower system performance. Your system administrator may limit the number of sessions that the users can create. Before you end a session, save any data you want to keep.

Caution: The system does not prompt you to save your data when you end a session.

Navigate Transactions Through the Favorites Menu

Figure 43: Favorites Menu

Examples of items that you can add to a favorites list are as follows: Transactions

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Links to files

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Internet addresses

You can edit your favorites list according to your preferences on the SAP Easy Access screen by using the Favorites menu. You can also organize your favorites into folders.

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Navigation Options

Figure 44: Navigation Options

Introduce the participants to the three basic options for navigating the system. Give a brief introduction because each option is covered in more detail as we progress through this lesson. Explain how to navigate SAP systems using the SAP standard menu, the menu bar, and the command field (transaction codes). Point out that to find transaction codes, you must choose System → Status.

You can navigate in the SAP system by using one of the following options or methods: ● Enter transaction codes in the command field. ●

Choose items from the menu.

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Choose items from the favorites list.

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Choose from the role-based user menu.

Menus allow you to find a specific transaction when you do not know the transaction code. In the SAP system, the menu is organized according to the task you perform. Menus are dropdown lists. Therefore, when you choose a menu item, further options appear. Transaction Codes Participants frequently ask about transaction code lists. You may want to mention a simple method for administrators to create their own lists of transaction codes. Choose the entries required for the list from the TSTCT table and save them in Microsoft Excel. The easiest way to do this is to use the transactions System → List → Save → Local file. Users do not need to create transaction code lists in this way since they have their role-based menus and usually lack the authorizations to do so.


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Every transaction or function in the system has a transaction code. If you know the transaction code for the required transaction or function, you can enter the transaction code in the command field to initiate the transaction or function. You can find the transaction code by navigating to the transaction and then choosing System → Status. The following table provides some shortcuts that you can use while working with transactions: Entry in the Command Field

Results

/N

Cancels the current transaction

/NXXXX

Initiates the specified transaction directly from another transaction

/O

Displays an overview of sessions

/OXXXX

Initiates the specified transaction in a new session

/NEND

Ends the logon session with a confirmation dialog box

/NEX

Ends the logon session without a confirmation dialog box

/I

Deletes your current session

Role-Based User Menus

Figure 45: Role-Based User Menus

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Explain that role-based menus allow users to limit the wide range of functionality provided by SAP solutions to those required by a specific user according to the assigned role. Point out that when a user is assigned a role, the user is assigned not only the menu but also the authorizations required to access specific information. SAP currently delivers over 1,200 predefined roles. SAP offers two formats to display a menu of transactions, reports, or web-based applications to the user. Menu formats include the following: ● SAP standard menu The SAP standard menu is a complete list of all possible transactions and reports offered by the system. ●

Role-based user menu The role-based menu is a collection of activities used in business scenarios. Users can access transactions, reports, or web-based applications through their role-based menus.

Users are assigned a role menu and authorizations associated with their role. Authorizations control access to the specific activities required to perform the job function. The system administrator can tailor role-based menus to suit specific job requirements by adding or removing menu entries.

Caution: As a system administrator, you may be responsible for setting up role-based menus, which are then transferred to the front end. Therefore, it is advisable to keep roles as small as possible, since large roles take a long time to transfer to the front end.


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Getting Help

Figure 46: Getting Help

Point out that the Help menu is available on the menu bar of every screen. The SAP system provides comprehensive online help, which is available from any screen in the system. The Help menu includes the following options: ● Application Help Application Help displays comprehensive help for the application that is currently running on your screen. ●

SAP Library SAP Library contains online documentation.

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Glossary Glossary enables to you to search for definitions of terms.

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Release Notes Release Notes describe functional changes that occur between SAP system releases.

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SAP Service Marketplace A user ID and a password are required to access the SAP Service Marketplace. If problems occur in the system, SAP Service Marketplace provides fast, effective help.

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Create Support Message



With support messages, you can contact the responsible SAP Solution Manager support unit directly from your SAP system. ●

Settings You can choose settings for help. For example, you can customize how F1 and F4 help are displayed. Settings options also enable users to change their SAP screen theme and display functionalities.

Field Help – F1 Help

Figure 47: Field Help – F1 Help

You can use field help (F1 help) to get help on fields, menus, functions, and messages. F1 help also provides technical information on the selected field, for example, the parameter ID and the technical name of the field.


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Field Help – F4 Help

Figure 48: Field Help – F4 Help

You can use field help (F4 help) to find information on the possible values that you can enter in the field. You can access F4 help for a selected field by choosing the button to the right of that field or by pressing the F4 key.

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Unit 2 Exercise 1 61

Navigate Within the SAP ERP System

Business Example You are new to SAP and you need to use transaction codes to quickly perform your job tasks in the SAP system. To do this, you need to understand transaction codes and how to execute them. 1. Execute the transaction codes mentioned in the table and record each activity in the space provided. Do not return to the SAP Easy Access screen after viewing each transaction code. Hint: If you log off, log on to the system again.

Entry in the Command Field

Result

SU3 SM04 /NSM04 /NEND 2. Display a list of the users logged on to the system. 3. To display the transaction code for the SMO4 transaction, choose System → Status. 4. Return to the SAP Easy Access screen and use the transaction code to display the user overview, which provides a list of the users logged on to the system.


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Unit 2 Solution 1 62

Navigate Within the SAP ERP System

Business Example You are new to SAP and you need to use transaction codes to quickly perform your job tasks in the SAP system. To do this, you need to understand transaction codes and how to execute them. 1. Execute the transaction codes mentioned in the table and record each activity in the space provided. Do not return to the SAP Easy Access screen after viewing each transaction code. Hint: If you log off, log on to the system again.


Result

SU3 SM04 /NSM04 /NEND a) On the SAP Easy Access screen, enter the transaction code SU3 in the command field and choose

Enter.

b) Record the name of the transaction in the Result column of the table given in the exercise. c)

Select Back and similarly perform the steps to identify the names of the transaction codes listed in the table. Record the names in the Result column. The table displays the entries in the command field and their corresponding results:

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Result

SU3

Initiates the screen to maintain your own user settings.

SM04

Does not initiate a transaction. A transaction can only be started directly from the SAP Easy Access screen unless you use a prefix.




Result

/NSM04

Initiates the user overview successfully. /n first ends the active transaction and then initiates the specified transaction.

/NEND

A logoff confirmation dialog box appears. You can now exit the system.

2. Display a list of the users logged on to the system. a) On the SAP Easy Access screen, choose Tools → Administration → Monitor → System Monitoring → User Overview. 3. To display the transaction code for the SMO4 transaction, choose System → Status. a) Choose User Overview. b) Choose System → Status. c) Locate the transaction code, which is SM04. 4. Return to the SAP Easy Access screen and use the transaction code to display the user overview, which provides a list of the users logged on to the system. a) Close the System Status dialog box by choosing b)

Select

Cancel.

Back and exit User List.

c) Enter SM04 in the command field. d) e)

Choose

Enter.

Exit the screen and select


Back to return to the SAP Easy Access screen.

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Unit 2 Lesson 4 65

Personalizing the User Interface

LESSON OVERVIEW This lesson demonstrates the various options to set up and personalize the user interface according to your preferences. Business Example You want to personalize your SAP system so that you can quickly navigate through the screens. For this reason, you require the following knowledge: ●

How to personalize the user interface There are many options that are available to personalize the system and change the appearance of the front-end. You need to be aware which settings depend on the front-end and which depend on the user.



Personalization Options of SAP GUI

Figure 49: Personalization Options


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End users have several personalization options at their disposal. You can choose Extras → Settings to change the appearance of the initial screen, for example, by turning off the graphics display on the right side of the screen, or by displaying technical names (transaction codes) on the SAP Easy Access screen. Using the Customizing of local layout pushbutton in the standard toolbar gives you the following options: ● By using the Customizing of local layout pushbutton, you can, for example, manage the input history by choosing Options... → Local data. ●

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●

When the input history is active, it builds a small front-end database that contains the last n number of entries made in input fields in transactions. You can define the value of “n” yourself. These entries are then provided as input help for fields that are appropriately declared. There is a certain delay for the entries in the input history. You can minimize this delay by choosing Options... → Local Data → History → Immediately. The Options... also enable you to set the speed of quick info, and to display system messages in dialog boxes (Options... → Messages). Various other aids and settings are available, for example, you can choose a color scheme for your GUI. Demonstrate the options mentioned by using the Customizing of local layout pushbutton. For example, you can show the participants how to display system messages in dialog boxes.

Note: Under Customizing of local layout, you can also choose New Visual Design... → General to have the option of changing the font size on your SAP GUI screen. However, you will need to close the SAP Logon program, call it up and log on to the system again before your changes to the settings take effect. You can set personal standard values by choosing System → User profile → Own data. You can do this on the Address, Defaults, and Parameters tab pages.

Hint: Use parameters to fill frequently used input fields with default values. The prerequisite for this is that the input field has been assigned a parameter ID assigned. To find the parameter ID, choose the input field for which you want to define a default value and choose the F1 help, followed by the Technical Information pushbutton. A dialog box displays the corresponding parameter ID under Field data (as long as a parameter ID is assigned to the field). Enter this parameter ID (XUS, for example) in the Parameters tab page in your user data, and assign a value to it (in this case, your user name). The result of this is that all fields with XUS as their parameter ID now have the value that you entered as a default. The favorites list on the SAP Easy Access screen and the status bar display variants and provide additional personalization options.

68


Lesson: Personalizing the User Interface

Use the information displayed in the status bar on the bottom right edge of the GUI screen. For example, use it to permanently display the transaction code of the active transaction.


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70



Personalize the User Interface

Business Example You would like to personalize your front end, that is, adapt it to your requirements. Create a variety of favorite transactions that will appear in the favorites menu on your SAP Easy Access screen and personalize your user interface. Task 1: Carry out the Personalization Option of Creating Favorites 1. Create a favorite for the transaction to post an incoming payment in accounts receivable. Use the F-28 transaction code. 2. Create a favorite for the transaction to display a customer (centrally) in Sales and Distribution. Use the XD03 transaction code. 3. Create a favorite for the transaction to maintain master data in human resources. Use the PA30 transaction code.

Task 2: Carry out the Personalization Option of Personalizing Your User Interface 1. Display the system and error messages in a dialog box instead of the status bar. 2. Change the display of the date and currency format.


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Personalize the User Interface

Business Example You would like to personalize your front end, that is, adapt it to your requirements. Create a variety of favorite transactions that will appear in the favorites menu on your SAP Easy Access screen and personalize your user interface. Task 1: Carry out the Personalization Option of Creating Favorites 1. Create a favorite for the transaction to post an incoming payment in accounts receivable. Use the F-28 transaction code. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Receivable → Document Entry → Incoming Payments (F-28). Caution: Do not double-click Incoming Payments. You only want to highlight the menu item, not initiate the transaction. This menu path is at the top of your window. You can also choose the Add to Favorites pushbutton. b) Choose Favorites → Add. 2. Create a favorite for the transaction to display a customer (centrally) in Sales and Distribution. Use the XD03 transaction code. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Master Data → Business Partner → Customer → Display → Complete (XD03). Caution: Do not double-click Complete. You only want to highlight the menu item, not initiate the transaction. b) Choose Favorites → Add. 3. Create a favorite for the transaction to maintain master data in human resources. Use the PA30 transaction code. a) On the SAP Easy Access screen, choose Human Resources → Personnel Management → Administration → HR Master Data → Maintain (PA30). b) Choose Favorites → Add.

Task 2: Carry out the Personalization Option of Personalizing Your User Interface

72


Lesson: Personalizing the User Interface

1. Display the system and error messages in a dialog box instead of the status bar. a) On the SAP Easy Access screen, navigate to the standard toolbar and choose (Customize Local Layout). b) Choose Options... c) In the SAP GUI Options dialog box, choose Interaction Design → Notifications. d) Select the following checkboxes under the Messages area: ●

Show success messages in a dialog box

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Show warning messages in a dialog box

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Show error messages in a dialog box

e) Choose the Apply pushbutton. f) Choose the OK pushbutton. 2. Change the display of the date and currency format. a) On the SAP Easy Access screen, navigate to the main menu bar and choose System → User Profile → Own Data. b) On the Maintain User Profile screen, choose the Defaults tab page. c) Change the values in the Decimal Notation and Date Format fields as per your choice. d)

Save your entries.


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74



Unit 2

71

Learning Assessment

1. Client, plant, and ___________ are examples of organizational levels that play a role in the maintenance of material master records. Choose the correct answer. X

A Transaction

X

B Master data

X

C Storage location

2. Which of the following are the examples of master data? Choose the correct answers. X

A Customer

X

B Vendor

X

C Material

X

D Plant

X

E Division

3. __________ are application programs that execute business processes in the SAP ERP system. Choose the correct answer. X

A Master data

X

B Organizational units

X

C Reports

X

D Transactions


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Unit 2: Learning Assessment

4. Which of the following are features of Business Explorer? Choose the correct answers. X

A Provides users with extensive analysis options

X

B Provides an updated view of the dataset

X

C Allows a wide spectrum of users to access application in SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

X

D Requests the data from the InfoObject

5. Which of the following personalization options are available in the SAP GUI? Choose the correct answers.

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X

A You can change the font size (within limits) in the SAP GUI.

X

B You can display system messages in a dialog box.

X

C You can change the size of input fields.

X

D You can prevent the display of pictures in the SAP GUI.

X

E You can display a photo of your choice on the SAP Easy Access screen.

X

F You can use a personal input history on your front end.


Unit 2

73


1. Client, plant, and ___________ are examples of organizational levels that play a role in the maintenance of material master records. Choose the correct answer. X

A Transaction

X

B Master data

X

C Storage location

2. Which of the following are the examples of master data? Choose the correct answers. X

A Customer

X

B Vendor

X

C Material

X

D Plant

X

E Division

3. __________ are application programs that execute business processes in the SAP ERP system. Choose the correct answer. X

A Master data

X

B Organizational units

X

C Reports

X

D Transactions


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Unit 2: Learning Assessment - Answers

4. Which of the following are features of Business Explorer? Choose the correct answers. X

A Provides users with extensive analysis options

X

B Provides an updated view of the dataset

X

C Allows a wide spectrum of users to access application in SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

X

D Requests the data from the InfoObject

5. Which of the following personalization options are available in the SAP GUI? Choose the correct answers.

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X

A You can change the font size (within limits) in the SAP GUI.

X

B You can display system messages in a dialog box.

X

C You can change the size of input fields.

X

D You can prevent the display of pictures in the SAP GUI.

X

E You can display a photo of your choice on the SAP Easy Access screen.

X

F You can use a personal input history on your front end.


UNIT 3

Financial Accounting Basics

Lesson 1 Describing the Tasks in Financial Accounting at SAP

80

Lesson 2 Defining Organizational Structures in Accounting Exercise 3: Organizational Levels

88 91

Lesson 3 Defining General Ledger Master Data Exercise 4: Display a Chart of Accounts Exercise 5: Create a General Ledger Account Master Record

94 99 101

Lesson 4 Using the General Ledger Exercise 6: Post a G/L Account Document Exercise 7: Query an Account

108 111 117

UNIT OBJECTIVES ●

Describe the tasks in Financial Accounting (FI) at SAP

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Explain the organizational levels used in Financial Accounting (FI) at SAP

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Display a chart of accounts and create a general ledger (G/L) master record

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Describe the special role of reconciliation accounts

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Perform general ledger (G/L) postings

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Process an account balance query


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Unit 3 Lesson 1 76

Describing the Tasks in Financial Accounting at SAP

LESSON OVERVIEW This lesson provides an overview of the individual applications within Financial Accounting (FI). Business Example You are a project team member, who wants to gain a broad fundamental understanding of the core processes within FI. For this reason, you require the following knowledge: ●

An understanding of the tasks in FI Provide an overview of the individual applications in FI.



Financial Accounting Overview

Figure 50: Financial Accounting

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Lesson: Describing the Tasks in Financial Accounting at SAP

Begin the discussion with an introduction to the general ledger (G/L). The central task of General Ledger Accounting is to provide a comprehensive picture of external accounting and financial records. The G/L serves as a complete record of all business transactions. Accounts payable (AP) records and manages the accounting data for all vendors. It is also an integral part of the purchase-to-pay business process. Postings made in (AP) are simultaneously recorded in the G/L based on the AP transaction involved, for example, payables and down payments. Accounts receivable (AR) records and manages accounting data of all customers. It is also an integral part of the order-to-cash business process. All postings in (AR) are also recorded directly in the G/L depending on the (AR) transaction involved, for example, receivables, down payments, and bills of exchange. Asset Accounting (AA) is used for managing and supervising fixed assets. AA serves as a subsidiary ledger to the FI G/L, providing detailed information on transactions involving fixed assets. Bank Ledger (FI-BL) is used to handle accounting transactions that are processed through a bank. It includes the management of bank master data, cash balance management (check management and bill of exchange management), and the creation and processing of incoming and outgoing payments. Every posting that is made in the subledgers generates a corresponding posting to the assigned G/L accounts. This ensures that the subledgers are always reconciled with the G/L.

The important tasks of FI are the recording of monetary and value flows, and inventory evaluation. The G/L contains the records of all accounting-relevant business transactions on to G/L accounts from a business point of view. Every G/L is structured according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts. These definitions include the account number, the G/L account designation, and the categorization of the G/L account as an income statement or a balance sheet account. The G/L often contains only collective postings, a collection of all AR/AP. In such cases, the posting data represented in subledgers pass on their data in compressed form to the G/L. Reconciliation accounts connect the subledgers to the G/L in real time. This means that as soon as a posting is made to a subledger, the posting to the respective reconciliation account in the G/L takes place. Accounts payable (AP) accounting records all business transactions that have to do with the relationships to suppliers. It takes much of its data from the procure-to-pay business process. Accounts receivable (AR) records and manages accounting data of all customers. It takes much of its data from the order-to-cash business process. Asset Accounting (AA) deals with both current assets and non-current assets (fixed assets). Bank Ledger (FI-BL) supports the booking of cash flows.


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Unit 3: Financial Accounting Basics

General Ledger and Subledger

Figure 51: General Ledger and Subledger

The G/L is managed at the company code level. All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) are posted in real time to FI by means of automatic account determination. The aim of recording business transactions is to create a balance sheet and profit and loss (P&L) statement.

The G/L is managed at the company code level and used to compile the balance sheet and the profit and loss (P&L) statement. The material goods of a company are listed in the balance sheet, and are divided into assets and liabilities. The business transactions that are entered in the subledgers, materials management and the Treasury flow into the balance sheet in real time. The component ,Treasury (TR), focuses on functions such as payment means, treasury management (including financial means, foreign exchange, derivatives, and bonds), loans, and, market risk management.

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Balance Sheet and P&L Statement

Figure 52: Balance Sheet and P&L Statement

The aim of recording business transactions is to create a balance sheet and P&L statement report. This report must meet specific national requirements. You can set up different balance sheet and P&L structures to meet your country’s reporting requirements. These structures define which accounts should appear in which balance sheet items. Parallel Financial Reporting

Figure 53: Parallel Financial Reporting

New General Ledger Accounting (new G/L) has one leading ledger in each client. However, other ledgers can also exist within the G/L. In new G/L Accounting, one ledger has the role of a leading ledger. However, as in older releases, you can still manage accounts in parallel using additional accounts.


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SAP Financial Supply Chain Management

Figure 54: SAP Financial Supply Chain Management

Sometimes participants are not certain about the purpose of SAP Financial Supply Chain Management (SAP FSCM). They see that the Supply Chain Management topic is part of this lesson and do not know what to expect from it. Explain that SAP FSCM is designed to improve an organization’s cash flow mainly in the order-to-cash business process. SAP FSCM provides tools to the backend of the order-to-cash business process to speed up the invoicing process and handle any customer disputes regarding invoices. On the front-end of the order-to-cash business process, SAP FSCM ensures that an organization does not sell material and/or services to a customer with bad credit.

SAP Financial Supply Chain Management (SAP FSCM) helps to optimize a company's income and expenditures. Over the last several decades there has been little improvement in the areas of billing, accounts receivable, collections, dispute resolution, credit scoring, and cash management. Today, many businesses see these functions as a prime area for process improvement and a source of greater cost savings. SAP FSCM represents a major area of process innovation and improvement for companies in a broad range of industries. Potential for financial improvement is often found in the areas of invoicing and reconciliation. Companies can save time by preventing arrears and process-related delays in payment, such as, the printing and sending of invoices. Functions of SAP Financial Supply Chain Management The functions of SAP FSCM are as follows:

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●

Electronic Bill Presentment and Payment (EBPP) allows the automatic transmission of invoices to customers making invoicing more efficient. In addition, customers may access account information through the Internet. SAP Biller Direct not only reduces the increasing difficulty in reaching vendors., but also allows vendors to interact with their customers, SAP Biller Direct reduces costs and boosts customer retention, giving companies a competitive edge by providing up-selling and cross-selling options.

●

SAP Collections and Dispute Management offers system support for processing the payment deductions used to recover payments and collect debts from customers SAP Collections and Dispute Management enables cross-departmental resolution of dispute cases, including workflow support and escalation procedures. Collaboration with customers is supported by correspondence with customers and self-service through the Internet using SAP Biller Direct. This improves receivables management and speeds up invoice settlement. SAP Collections and Dispute Management allows companies to structure, classify, and minimize outstanding receivables. A company can make receivables management more efficient and process an ever-increasing receivables balance in a short period of time.

●

●

●

●

SAP Credit Management provides companies having a large customer base with the opportunity to reduce customers’ total liability using appropriate credit lines. One advantage of SAP Credit Management is the ability to centralize, and provide companywide management of credit lines. This means that different distribution channels use the same data to check credit worthiness and utilization. This eliminates the risk of customers without the credit department recognizing that the customers have exceeded their credit limit granted to them by using different distribution channels. SAP Cash and Liquidity Management supports the cash manager in efficiently managing liquidity and currency risk. Redundant data entry is entirely eliminated. All corporate sectors operate on a unique and consistent database, which is used for various purposes. For example, the AR accounts manager might use the database to control incoming payments. The AP accounts manager might use the database to control cashed checks or cash reports across countries, currencies, or subsidiaries, or even across the whole group. The SAP In-House Cash application allows diversified companies to optimize their intragroup payment transactions by opening an in-house bank. An In-House Cash Center is a virtual bank within the corporate group. Each associated company has one or more accounts. The In-House Cash Center is used to process all payments between company units. This keeps cash resources within the group and optimizing how they are applied. SAP Treasury and Risk Management offers a comprehensive set of functions for managing financial transactions and risk. It also helps to enable straightforward processing for all conventional types of instruments within investment, debt, and foreign exchange management.


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Financial Accounting Versus Management Accounting

Figure 55: Financial Accounting Versus Management Accounting

Use this example to introduce the participants to Management Accounting (Controlling). During the current period, management asks you for the balance in the travel expense account of Company X. You query the G/L account and report that the travel expense of Company X in the current period is $XXXX. After you provide this figure, management then wants to know who incurred that travel expense or where it was incurred. Management Accounting allows just this type of identification of detail. The figure provides examples of different Controlling (CO) objects that can accumulate expenses.

FI is intended for legal reporting. It can be used to draw up a balance sheet and income statement at the level of legal units. The purpose of Management Accounting is for the internal management of information regarding cost and revenues. The level at which FI is needed is determined by law. Legal reporting will be different for each country. Management Accounting analyzes costs and revenues at high levels across country boundaries. For example, it can analyze costs for all production departments worldwide. Costs and revenues from FI are used in Management Accounting. In Management Accounting, financial data can be allocated across several (FI) boundaries. The results in Management Accounting can be compared with the result in FI (reconciliation). Management Accounting provides Controlling (CO) objects allowing an organization to track both costs and revenues internally.

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87

Unit 3 Lesson 2 82

Defining Organizational Structures in Accounting

LESSON OVERVIEW This lesson provides an overview of Financial Accounting (FI) organizational levels. Explain the organizational levels defined in FI.

Business Example Your organization is implementing FI. You need to explain the FI organizational levels and their functions. For this reason, you require the following knowledge: ●

An understanding of the organizational levels used in FI



FI Organizational Levels

Figure 56: Company Code

State that a company code is a financial accounting unit representing the smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. Data for the company code includes the entry of all transactions that must be posted, and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss (P&L) statement. This definition of the company code organizational unit is required information. A controlling area represents a closed system used for Cost Accounting purposes. A controlling area may contain one or more company codes that can operate in different currencies if required. The company codes within a controlling area must use the same operational chart of accounts.

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Lesson: Defining Organizational Structures in Accounting

The characteristics of a company code are as follows: ●

●

●

●

A company code does not usually extend national boundaries. You can create a company code according to tax law, commercial law, and other FI criteria. Company codes are usually created based on geographic considerations. A company code is the smallest SAP entity that supports a full legal set of books. There must be at least one company code in the production environment for a business to be live. A company code key is a four-character alphanumeric field.

Segment

Figure 57: Segment

A segment is an organizational unit. In new General Ledger Accounting, segments are used as a dimension for reporting purposes. The aims of segment reporting: Provide an insight into different business activities of a diversified company.

●

●

Provide information about the general environment.

The purposes of segment reporting: ● Provide a clear review of a company’s economic performance. ●

Improve forecasting of the potential sales and financial reserves of a company.

●

Anticipate risks and opportunities of a company.

International Accounting Standards (IAS) distinguishes between business and geographical segments as follows: ● A business segment represents a subactivity of a company that involves the manufacture of a product or provision of a service, with risks and revenues that differ from those of other business segments.


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●

A geographical segment provides information about risks and revenues that differ from other geographical segments in terms of economic or political factors.

According to the United States Generally Accepted Accounting Principles (US GAAP), a segment is a part of the company that incurs costs, generates revenue, and has its own financial data with respect to profit and resource consumption. SAP recommends using segments only in combination with profit centers. In FI, postings for which profit center information is not relevant, a Business Application Programming Interface (BAdI) can determine a segment or you can enter it manually.

Controlling Area

Figure 58: Controlling Area

A controlling area represents a separate unit of Cost Accounting. The controlling area identifies a self-contained organizational structure for which costs and revenues can be managed and allocated. You can assign one or more company codes to a controlling area. This enables you to carry out cross-company-code Cost Accounting between the assigned company codes; however, this is only possible if the assigned company codes and the controlling area use the same operating chart of accounts and fiscal calendar year.

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Business Example You need to assign company codes to a controlling area to use Management Accounting. For this reason, you must know how to assign company codes to a controlling area. Determine which controlling area company code 1000 is assigned to. 1. Determine the controlling area to which company code 1000 is assigned by checking the Information tab page in the G/L account master record of account number 113100.


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Business Example You need to assign company codes to a controlling area to use Management Accounting. For this reason, you must know how to assign company codes to a controlling area. Determine which controlling area company code 1000 is assigned to. 1. Determine the controlling area to which company code 1000 is assigned by checking the Information tab page in the G/L account master record of account number 113100. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Company Code (FSS0). b) On the Edit G/L Account Company code data screen, enter the following data: Field

Value

G/L Account

113100

Company Code

1000

c) Choose the

(Display) pushbutton.

d) On the Display G/L Account Company code data screen, choose the Information tab page. Note: Company code 1000 is assigned to controlling area 1000, CO Europe. e)

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Exit the transaction and return to the SAP Easy Access screen.


Lesson: Defining Organizational Structures in Accounting




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Unit 3 Lesson 3 88

Defining General Ledger Master Data

LESSON OVERVIEW This lesson introduces general ledger (G/L) accounting. The lesson covers creating and displaying Financial Accounting (FI) master data at SAP. Business Example The G/L represents a company’s set of books. You need to understand the master data that supports the G/L. For this reason, you require the following knowledge: ●

How to display the chart of accounts

●

How to create a G/L master record In this lesson, you will discuss the master data and business processes of the G/L.



●


Chart of Accounts

Figure 59: Charts of Accounts

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Lesson: Defining General Ledger Master Data

Explain that the chart of accounts is a list of all G/L account master records that are used in one or more company codes. You can use as many chart of accounts as you require within a client. You can therefore meet the varying needs of the individual company codes within the chart of accounts structure.

Each G/L is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts in ordered form. The definitions consist of the account number, the account name, and the type of G/L account (profit and loss (P&L) account or a balance sheet account). You can define an unlimited number of the charts of accounts in the system. Many countryspecific charts of accounts are included in the standard system. Chart of Accounts Assignment

Figure 60: Chart of Accounts Assignment

You have to assign an operating chart of accounts to each company code. The operating chart of accounts is used for the daily postings in the assigned company code. Multiple companies can use the same operating chart of accounts. You have the following options when using multiple company codes: ● You can use the same chart of accounts for all company codes. If all company codes have the same requirements for the chart of accounts set up, assign all the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country. ●

In addition to the operating chart of accounts, you can use two additional charts of accounts. If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes are in multiple countries.


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For each company code, specify one chart of accounts for the G/L. This chart of accounts is assigned to the company code. A chart of accounts can be used by multiple company codes so that the general ledgers of these company codes have an identical structure.

General Ledger Account Master Records

Figure 61: G/L Account Master Record

Discuss the two segments of the G/L master record, the chart of accounts segment and the company code segment. To make certain that company codes using the same chart of accounts can also use the same G/L accounts, a master record is created for the G/L account in the chart of accounts and in company-code-specific areas. The G/L account master data in the chart of accounts area contains information about the G/L account that is valid for all company codes. The chart of accounts area also contains data that controls how a G/L account is created in the company-code-specific area. The company-code-specific area of a G/L account contains data that is valid only for one company code, such as the currency in which the account may be posted. Before posting to a G/L account, create a master record in your company code for the account. The G/L account must already exist in the chart of accounts.

The two segments of the G/L master record are as follows: Chart of accounts segment

●

The chart of accounts segment contains a description of the account, an indication as to whether the account is a balance sheet account or a P&L account, the account group that controls the company code segment fields, and the consolidation account number. ●

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Company code segment



The company code segment details how the company code that uses that specific account manages the account. The following controls are found in the company code segment: ● Account control ●

Account management

●

Bank or financial details

●

Joint ventures

●

Interest calculation

●

Document control

Account Groups for G/L Accounts

Figure 62: Account Groups for G/L Accounts

An account group is a summary of characteristics that control the creation of master records. You can use an account group to determine the fields to fill when creating the master record. In addition, you can use an account group to predefine the numeric intervals from which the numbers for the master records are chosen. Accounts that require the same master record fields and use the same number interval are created with the same account group.

Account groups classify G/L accounts into user-defined segments and also determine the number range of the accounts that will fall into these user-defined segments. You determine the field status of the company code segment of the master record when you create, change, or display the company code segment. The field status options are Suppress, Required, Display, and Optional.


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98



Display a Chart of Accounts

Business Example As a result of your company’s increased research and development activities, you need to track the expenses of these activities in a separate G/L account. Before you create a new G/L account, you need to verify whether or not there is an existing account. For this reason, you must know how to display a chart of accounts and search for an existing account. Display a chart of accounts. 1. Before you create a new G/L account for research and development expenses, you need to verify whether or not such an account exists. Display chart of accounts INT and search for an R&D expense account. Does a research expense account exist for your group number ##?


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Display a Chart of Accounts

Business Example As a result of your company’s increased research and development activities, you need to track the expenses of these activities in a separate G/L account. Before you create a new G/L account, you need to verify whether or not there is an existing account. For this reason, you must know how to display a chart of accounts and search for an existing account. Display a chart of accounts. 1. Before you create a new G/L account for research and development expenses, you need to verify whether or not such an account exists. Display chart of accounts INT and search for an R&D expense account. Does a research expense account exist for your group number ##?

a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Information System → General Ledger Reports (New) → Master Data → Chart of Accounts (S_ALR_87012326). b) Enter INT in the Chart of Accounts field. c)

Choose

(Execute).

d) Choose Edit → Find. e) Enter R&D in the Find dialog box. f) Choose the

Find pushbutton.

Does a research expense account exist with your user##? No. (However, a research expense account can exist if other class participants have already completed the task). g)

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Exit the function and return to the SAP Easy Access screen.



Create a General Ledger Account Master Record

Business Example As a result of your company’s increased research and development (R&D) activities, you need to track these expenses in a separate G/L account. After verifying that the account exists, you need to create a new G/L account for research and development expenses. For this reason, you must know how to create a G/L account. 1. Create a new G/L account for R&D expenses in chart of accounts INT. Use 4043## as the new account number (## = your group number), and enter R & D - Group ## as short text and G/L account long text. The new account is a P&L statement account that uses the retained earnings account 900000 (for income statement account ([ISA] type = X). For organizational purposes, assign this account to the account group General G/L accounts. It will be mapped to the CONS chart of accounts group using the group account number 312600 (Other General Expenses), and will also be mapped to functional area 0400. 2. Make the new research and development G/L account available for use in company code 1000. The account currency is euro (EUR) and a line item display for the new account is required. The sort criteria when displaying the line items should be by document number and fiscal year sort key 002. The tax category is "-" (only input tax allowed) and postings without tax should be possible. Assign the account to field status group G033. For cash management purposes, assign the account to commitment item 1423. 3. What steps do you perform in order to use the new account in company code 3000? Company code 3000 uses chart of accounts CAUS.


101


Create a General Ledger Account Master Record

Business Example As a result of your company’s increased research and development (R&D) activities, you need to track these expenses in a separate G/L account. After verifying that the account exists, you need to create a new G/L account for research and development expenses. For this reason, you must know how to create a G/L account. 1. Create a new G/L account for R&D expenses in chart of accounts INT. Use 4043## as the new account number (## = your group number), and enter R & D - Group ## as short text and G/L account long text. The new account is a P&L statement account that uses the retained earnings account 900000 (for income statement account ([ISA] type = X). For organizational purposes, assign this account to the account group General G/L accounts. It will be mapped to the CONS chart of accounts group using the group account number 312600 (Other General Expenses), and will also be mapped to functional area 0400. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Chart of Accounts (FSP0). b) On the Edit G/L Account Chart of accts data screen, enter the following data: Field

Value

G/L Account

4043##

Chart of Accts

INT

c) Choose

(Create).

d) On the Type/Description tab page, enter the following data:

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Field

Value

Account Group

Select the first entry of “General G/L accounts” from the dropdown list

P&L statement acct

Selected

P&L Statement Acct type

X (INT 900000 Unap.ret.earnings py)

Functional Area

0400

Short Text

R & D - Group ##



e) f)

Field

Value

G/L Acct Long Text

R & D - Group ##

Group account number

312600

Save your entries. Exit the function and return to the SAP Easy Access screen.

2. Make the new research and development G/L account available for use in company code 1000. The account currency is euro (EUR) and a line item display for the new account is required. The sort criteria when displaying the line items should be by document number and fiscal year sort key 002. The tax category is "-" (only input tax allowed) and postings without tax should be possible. Assign the account to field status group G033. For cash management purposes, assign the account to commitment item 1423. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Company Code (FSS0). b) On the Edit G/L Account Company code data screen, enter the following data: Field

Value

G/L Account

4043##

Company Code

1000

c) Choose

(Create).

d) On the Control Data tab page, enter the following data: Field

Value

Tax category

- (Only input tax allowed)

Posting without tax allowed

Selected

Line item display

Selected

Sort key

002 (Doc.no., fiscal year)

e) On the Create/bank/interest tab page, enter the following data:

f) g)

Field

Value

Field status group

G033 (Cost accounts for external Services)

Commitment item

1423

Save your entries. Exit the function and return to the SAP Easy Access screen.


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3. What steps do you perform in order to use the new account in company code 3000? Company code 3000 uses chart of accounts CAUS. a) Because company code 3000 uses chart of accounts CAUS, you need to create the account in chart of accounts CAUS as well as in company code 3000.

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Reconciliation Accounts

Figure 63: Reconciliation Accounts and Subledgers

Explain that the subledgers within the system are represented by customers, vendors, and assets. For each subledger account, you must keep at least one reconciliation account in the general ledger. When you post to an account in the subledger, the system automatically posts to the corresponding reconciliation account in the G/L. Using the reconciliation account procedure, it is possible to create a balance sheet and a P&L statement at any time, since the amounts posted to subledger accounts are also posted automatically to the G/L. Stress the fact that you cannot manually post to reconciliation accounts directly.

A reconciliation account ensures real-time integration of a subledger account with the G/L. The reconciliation between subledger and G/L is always guaranteed because the G/L reconciliation account is not enabled for direct posting. In the G/L, postings are limited to reconciliation account types only. To Determine if a G/L Account is a Reconciliation Account 1. Access transaction code FS00: Display the G/L account master record of reconciliation account 140000 (Trade Receivables) for company code 1000. 2. Display the Control Data tab page. Point out the reconciliation account type.


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To Display the Reconciliation Account of a Customer Master Record 1. Call transaction code FD03: Display customer master record 1000 in company code 1000. 2. Display the Account Management tab page within the Company Code data section to show the assignment of the reconciliation account.

How to Determine If a G/L Account is a Reconciliation Account 1. Call transaction code FS00: Display the G/L account master record of reconciliation account 140000 (Trade Receivables) for company code 1000. 2. Display the Control Data tab page. Point out the reconciliation account for account type.

How to Display the Reconciliation Account of a Customer Master Record 1. Call transaction code FD03: Display customer master record 1000 in company code 1000. 2. Display the Account Management tab page within the Company Code data section to show the assignment of the reconciliation account.

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107

Unit 3 Lesson 4 99

Using the General Ledger

LESSON OVERVIEW This lesson describes the general ledger (G/L) account posting, account information, and the posting key. Business Example You need to manually create G/L account postings. For this reason, you require the following knowledge: ●

An understanding of how to perform G/L account postings

●

An understanding of the posting key

●

An understanding of how to process an account balance query



●


G/L Account Posting

Figure 64: G/L Account Posting

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Lesson: Using the General Ledger

Show participants how to post a G/L account document by using the data and steps from the exercise.

The posting screen is divided into the following areas: ● Work templates Work templates allow you to select screen variants, account assignment templates, or held documents as references. A held document is a document that a user saves without posting, with the intention to complete and post it later. To return to the original line layout of the G/L document entry table, right-click the screen and choose Reset screen variant. ●

Header data Header data applies to the entire document, and includes the posting date and document type. Some of the header data may be for display only, or hidden from the user using editing options.

●

Line item information Users enter line items for the document in this area.

●

Information area This area displays the debit and credit totals of the document.

The Posting Key

Figure 65: The Posting Key

The posting key is a two-character numerical key that controls the entry of line items. The posting key determines the account type, debit or credit posting, and the layout of entry screens. Explain that in the newer user interfaces for G/L transactions, you do not need to enter the posting key. You only need to enter a debit or credit indicator and the system will automatically determine the posting key.

Each document line item contains one posting key. The posting key has a controlling function for the document items and is also used during complex postings to specify the following information in the system:


109


110

●

Account type to be posted

●

Type of posting (debit or credit)

●

Fields of the line item may have or require an entry



Post a G/L Account Document

Business Example In your company, research and development (R&D) expenses have already been incurred but not yet posted to the G/L. You therefore need to post a manual journal entry for these expenses. For this reason, you must know how to create a G/L posting to record the expenses. Post a G/L account document. 1. R&D expenses of EUR 5,000 have already been incurred in company code 1000 and now need to be recorded in the G/L. You must create a G/L posting to record these expenses. Use account 113100 for the offsetting line item. Use the following data: Field

Value

Document Date

Today’s date

Currency

EUR

G/L acct (first row)

4043##

D/C

Debit

Amount in doc.curr.

5,000

Tax code

V0 (0% domestic input tax)

G/L acct (second row)

113100

D/C

Credit

Amount in doc.curr.

5,000

Finally, save your data and note down the FI document number: ______________.


111


Post a G/L Account Document

Business Example In your company, research and development (R&D) expenses have already been incurred but not yet posted to the G/L. You therefore need to post a manual journal entry for these expenses. For this reason, you must know how to create a G/L posting to record the expenses. Post a G/L account document. 1. R&D expenses of EUR 5,000 have already been incurred in company code 1000 and now need to be recorded in the G/L. You must create a G/L posting to record these expenses. Use account 113100 for the offsetting line item. Use the following data: Field

Value

Document Date

Today’s date

Currency

EUR


4043##

D/C

Debit

Amount in doc.curr.

5,000

Tax code



113100

D/C

Credit

Amount in doc.curr.

5,000

Finally, save your data and note down the FI document number: ______________. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Document Entry → Enter G/L Account Document (FB50). b) If prompted, enter company code 1000. c) On the Enter G/L Account Document screen, enter the following data:

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Field

Value

Document Date

Today’s date

Currency

EUR


4043##



d) e)

Field

Value

D/C

Debit

Amount in doc.curr.

5,000

Tax code



113100

D/C

Credit

Amount in doc.curr.

5,000

Save your entries and record the FI document number: _______________. Exit the transaction. If prompted, choose the Yes pushbutton.


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Account Information

Figure 66: Account Information

When you post documents to an account, the system automatically updates the account balance. In addition, for G/L accounts that are managed with line item display, the system notes the items from the document that were posted to the account. Therefore, it is possible to view the account balances and (depending on the specifications in the master record) the line items for every G/L account. The account balance display shows the opening balance (the balance carried forward from the previous year) and the total of all transactions for each posting period, broken down into debit and credit postings (transaction figures). From these figures, the system also calculates the balance per posting period and the accumulated account balance. For accounts with line item display, you can display the line items that compose the account balance directly from the account balance display. In order to go to the line item display from the G/L account balance display, the line item display setting has to be set for the G/L account. You double-click the line item to drill down to the original document.

The balance display is an overview of the saved transaction figures of an account. You can drill down from the balance to a list of line items that make up the balance. The purpose of the balance display and the line item display is to display account data. The line item display is only possible for G/L accounts for which the line item display has been activated in the master record. From this line item list, you can drill down from the line item to the document containing this line item. To see the complete FI document, choose Document Overview. If there is a real document for this SAP ERP document and even if it was archived, you can still display the same.

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Show participants how to query an account by using the data and steps from the exercise.


115


116



Query an Account

Business Example As part of weekly analysis of expenses, you routinely check the balances and the related line items of certain G/L accounts. Query an account. 1. To confirm that the G/L account posting was successful, check the balance of account 4043## in company code 1000. Does the document number match the one from the previous exercise?


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Query an Account

Business Example As part of weekly analysis of expenses, you routinely check the balances and the related line items of certain G/L accounts. Query an account. 1. To confirm that the G/L account posting was successful, check the balance of account 4043## in company code 1000. Does the document number match the one from the previous exercise? a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Account → Display Balances (FS10N). b) On the G/L Account Balance Display screen, enter the following data:

c)

Field

Value

G/L account

4043##

Company code

1000

Fiscal year

Current year

Business area

Leave blank

Choose (Execute). Note that the account has a balance of EUR 5,000 for the current period.

d) Double-click the debit balance for the current period to display the line item(s) of account 4043##. The FI document number is already displayed. Does it match? e) To display the line item, double-click the displayed line. f) To display the FI document, choose Goto → Document Overview. g)

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●



119


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Unit 3

109

Learning Assessment

1. Which of the following identifies a self-contained organizational structure for which costs and revenues can be managed and allocated? Choose the correct answer. X

A A company code

X

B A controlling area

X

C A segment

2. Which of the following statements hold true for a chart of accounts? Choose the correct answers. X

A A chart of accounts is assigned to the company code.

X

B Each general ledger is set up according to a chart of accounts.

X

C A chart of accounts cannot be used by multiple company codes.

3. Reconciliation accounts are designed for direct posting. Determine whether this statement is true or false. X

True

X

False

4. Which of the following statements are true for a posting key? Choose the correct answers. X

A It applies to the whole Financial Accounting (FI) document.

X

B It defines the account type to be posted.

X

C It defines the type of posting (debit or credit).

X

D It specifies the debit and credit totals of the document.


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Unit 3

110


1. Which of the following identifies a self-contained organizational structure for which costs and revenues can be managed and allocated? Choose the correct answer. X

A A company code

X

B A controlling area

X

C A segment

2. Which of the following statements hold true for a chart of accounts? Choose the correct answers. X

A A chart of accounts is assigned to the company code.

X

B Each general ledger is set up according to a chart of accounts.

X

C A chart of accounts cannot be used by multiple company codes.

3. Reconciliation accounts are designed for direct posting. Determine whether this statement is true or false. X

True

X

False

4. Which of the following statements are true for a posting key? Choose the correct answers.

122

X

A It applies to the whole Financial Accounting (FI) document.

X

B It defines the account type to be posted.

X

C It defines the type of posting (debit or credit).

X

D It specifies the debit and credit totals of the document.


UNIT 4

Management Accounting Basics

Lesson 1 Describing the Functions of Management Accounting

124

Lesson 2 Defining Organizational Levels in Management Accounting

127

Lesson 3 Performing Postings to Management Accounting Exercise 8: Post an Expense to a Cost Center

130 135

UNIT OBJECTIVES ●

List the functions of Management Accounting

●

Identify the organizational levels that are relevant to Management Accounting

●

Explain the posting logic between Financial Accounting (FI) and Management Accounting

●

Perform actual postings to Management Accounting


123

Unit 4 Lesson 1 112

Describing the Functions of Management Accounting

LESSON OVERVIEW This lesson explains the purpose of Management Accounting. Business Example As a Controller, you work both with external financial reporting as well as internal management reports. You have already learned about SAP Financial Accounting, now you require the following knowledge: ●

An understanding of the main components of Management Accounting



Management Accounting Architecture

Figure 67: Comparison of Financial Accounting and Management Accounting

Review the difference between Financial Accounting (Fl) and Management Accounting. Explain that Management Accounting provides information that is used for making

124


Lesson: Describing the Functions of Management Accounting

management decisions. It facilitates coordination, monitoring, and optimization of all processes in an organization. Fl satisfies the external reporting requirements.

Management Accounting contains all the functions necessary for controlling cost and revenue effectively. It covers all aspects of management controlling and includes many tools for compiling information for company management. Financial reports that are used for external reporting purposes, such as balance sheets and profit and loss (P&L) statements, are created in Financial Accounting (Fl). Similar to the various legal requirements set by relevant financial authorities, these external reporting requirements are prescribed through general accounting standards, such as generally accepted accounting principles (GAAP) or International Accounting Standard (IAS). Components of Management Accounting

Figure 68: Architecture of Management Accounting

Cost-relevant data flows automatically to Management Accounting from FI and other applications. For example, vendor invoices that are processed in accounts payable accounting (A/P) update costs in a cost center. Asset management may calculate interest or depreciation while a posting can be made to a cost center. Revenue may be posted directly to FI and then a profitability segment can be updated in CO-PA. EC-PCA receives a statistical posting for every transaction that affects Controlling (CO). Human resources (HR) may provide payroll expenses and time sheet data, which in turn can be posted to a cost center or an internal order. Materials management (MM) is closely integrated with production orders (material consumption), but emphasize that you can also issue materials to cost centers and internal orders.


125

Unit 4: Management Accounting Basics

Revenue-related postings are generally produced in a Sales and Distribution (SD) module. Each time an SD posting occurs, the system normally updates profitability analysis and profit center accounting with revenue and sales discounts. In addition, a cost of goods sold posting also occurs. Production planning (PP) provides CO with bills of material (BOMs) and routings information, which is required in product costing. At the same time, the system assigns costs and revenues to different CO account assignment objects, such as cost centers, business processes, projects, or orders. Point out that the black arrows on the slide display the flow of costs and activities between different components of Management Accounting.

Management Accounting consists of several components, as shown in the figure. Similarly, costs from Overhead Cost Controlling (CO-OM) and Product Cost Controlling (COPC) can flow into Profitability Analysis (CO-PA) where, together with revenue data, the system can use these costs to calculate operating results, making it possible to establish how profitable the various areas are. Other SAP ERP applications can post costs or revenues to Management Accounting. Postings to an expense account in Fl, for example, can cause cost postings in CO-OM. In the same way, FI can post revenues directly to CO-PA. Cost flows also occur between Fl and CO-PC, where the system enters raw material costs that are incurred in the production process. In addition, there is a flow back into Fl if the system activates the production costs as a finished product or work in process (WIP). Other SAP ERP components, such as Human Capital Management (HCM) and Logistics (materials management, Sales and Distribution, and production planning), are also integrated with Management Accounting. LESSON SUMMARY You should now be able to: ●

126



Unit 4 Lesson 2 114

Defining Organizational Levels in Management Accounting

LESSON OVERVIEW This lesson provides an overview of the organizational levels in Management Accounting and how they are related to one another. Business Example You will be responsible for defining and for assigning the organizational structures for both SAP Financial Accounting and SAP Management Accounting. For this reason, you require the following knowledge: ●

An understanding of the organizational levels in Management Accounting

●

An understanding of the relationship between company codes and a controlling area



Organizational Levels in Management Accounting

Figure 69: Organizational Levels in Management Accounting


127


A controlling (CO) area represents a closed system that is used for cost accounting purposes. It represents the highest reporting level in an organization from a costing standpoint (roll-up reporting). An operating concern allows several CO areas to be combined and is only for required Profitability Analysis (CO-PA). Most customers strive to have only one CO area; this makes good business sense because there is no tool to allocate costs between CO areas.

A controlling (CO) area is the basic organizational unit in Management Accounting. It is a closed entity that is used for cost accounting. You can allocate costs only within a CO area. These allocations do not affect objects in other CO areas. An operating concern is the central organizational unit in Profitability Analysis (CO-PA). It represents the structure of external market segments for the enterprise. You can assign several CO areas to each operating concern so you can analyze them together. A company code is an independent accounting unit. You prepare financial and profit and loss (P&L) statements at the company code level to meet legal reporting requirements. You can use business areas (BAs) to group strategic business units for reporting financial and P&L statements. BAs are not suitable for auditing; they are only suitable for reporting purposes. BAs can also group business units that are associated with different company codes. A plant represents a production unit and is the central organizational unit in materials management (MM) and production planning (PP). A plant is assigned to a company code. A purchasing organization is an organizational unit used in MM – purchasing. A sales organization is an organizational unit that is used in sales order management. Multiple Assignments of Company Codes

Figure 70: Multiple Assignments of Company Codes

Explain that one or more company codes are assigned to a CO area. If you assign more than one company code to a single CO area, then all companies in the CO area must use the same

128


Lesson: Defining Organizational Levels in Management Accounting

operating chart of accounts. Also, the operative fiscal year variants in the company codes must match the fiscal year variants in the CO area.

By assigning more than one company code to a CO area, you can perform cost accounting for all company codes. You can allocate values in Management Accounting that affect more than one company code. In cross-company-code cost accounting, a CO area and its company codes can have different currencies. The currency of a CO area can be same as that of a company code. You can use the following currencies in Management Accounting: CO area currency

●

●

Company code currency or object currency

●

Transaction currency (used for posting a document to Management Accounting)

By default, cross-company-code cost accounting displays the company code currency as the object currency. You cannot change this default value. If you have assigned only one company code to a CO area, you can also assign the object currency for each CO object, such as a cost center, as required. You can assign more than one company code to a CO area. This assignment enables controlling across company codes. A CO area and its company codes must use the same operating chart of accounts and the same fiscal year variant; only the number of special periods may vary. However, you can link these accounts to country-specific accounts by using an alternative account number that is stored in the master data record for accounts. LESSON SUMMARY You should now be able to: ●



129

Unit 4 Lesson 3 117

Performing Postings to Management Accounting

LESSON OVERVIEW This lesson explains the integration process between Management Accounting and other SAP ERP packages. Business Example You want to post an expense to a cost center. For this reason, you require the following knowledge: ●

An understanding of the how values flow within Management Accounting

●

An understanding of the posting logic



●


Integration Between Financial Accounting and Management Accounting

Figure 71: Flow of Values Within Management Accounting

The black arrows, between the different Management Accounting components, display the typical flow of cost and activity quantities (such as working hours) between these components. These costs can be transferred as an overhead allocation to a production order.

130


Lesson: Performing Postings to Management Accounting

The costs could also be charged as overhead to the same production order as working hours, meaning the labor costs could be calculated by multiplying the number of hours by a specific hourly rate. You can pass costs incurred in one part of the enterprise to another part of the enterprise. For example, you can allocate overhead costs from administrative cost centers to production cost centers. Production cost centers then allocate these costs to production processes. Within the Overhead Cost Controlling (CO-OM) area, you can post costs to cost centers, internal orders, and processes from other SAP ERP applications (external costs). Cost centers can then allocate these costs to other cost centers, internal orders, and processes in Activity-Based Costing (ABC). ABC, in turn, can pass costs to cost centers and internal orders. Internal orders can settle costs to cost centers, processes in ABC, and other internal orders. Central cost flows can exist between CO-OM and Product Cost Controlling (CO-PC). Cost objects, such as production orders, can receive direct cost postings from FI, costs from cost centers, costs settled from internal orders, and costs allocated from ABC processes. The components of profitability accounting are also tightly integrated with CO-OM and COPC. Profit Center Accounting (EC-PCA) receives statistical cost postings from all the other components of Management Accounting. In addition to direct postings from FI, Profitability Analysis (CO-PA) can receive cost assessments from cost centers and ABC processes, settlements of costs from internal orders, and settlements of production variances from cost objects. Integration with Other SAP ERP Applications

Figure 72: Integration with Other SAP ERP Applications

Explain how Management Accounting is integrated with other SAP ERP applications. Data that the system creates in other SAP ERP applications can have a direct influence on Management Accounting. For example, if you purchase a non-stock item, the system posts an expense to the general ledger (G/L). The system also posts this expense as costs to the cost


131


center for which the item was purchased. This cost center can then pass these costs as overhead to a production cost center. FI, in the SAP ERP application, is a primary source of data for Management Accounting. In fact, most expense postings in the G/L result in a cost posting in Management Accounting. These expense postings to the G/L can be journal postings, vendor invoices, or depreciation postings from Asset Management. Sales order management is a primary source for revenue postings from billing documents to revenue postings in CO-PA and EC-PCA. Human Capital Management (HCM) can generate cost postings in Management Accounting. HCM gives you the opportunity to allocate labor costs to various controlling objects. In addition, you can transfer and use planned personnel costs for planning in Management Accounting. In materials management (MM), a goods issue transaction can create a cost posting in Management Accounting to the specified cost object. The system creates product cost estimates in Management Accounting that can update price fields in material master records. Finally, purchase orders in MM can generate commitment postings within Management Accounting. The manufacturing area of Logistics also works closely with Management Accounting. Bills of material (BOMs) and routings can be used in CO-PC.

Postings to Management Accounting

Figure 73: Posting Logic

Explain that when you post an entry in FI to a G/L account, which is an expense or a revenue account, and a corresponding primary cost element exists in Management Accounting, then the system posts a corresponding entry in Management Accounting. This entry is one-sided because you are only transferring the expense or revenue amount to Management Accounting. Also, explain that a Controlling (CO) object must be specified in a FI document to define where to post the costs in Management Accounting. Show participants how to post an expense to a cost center by using the steps from the Post an Expense to a Cost Center exercise.

132



When the system creates an FI document that posts to an expense or a revenue account using a corresponding cost element, the system also creates a Controlling (CO) document. Each CO document has a unique number and contains the following details: ● The CO object that you posted to ●

The cost element that you used

●

The amount that you posted

In the example shown in the figure, the FI document debits the P&L account and credits the balance sheet account. The CO document debits the CO object by using the corresponding primary cost element of the same CO document number. There is no corresponding credit entry in the CO document. When a primary cost is initially posted in Management Accounting, it is treated as a one-sided journal entry, unlike a conventional, balanced FI journal entry.

Note: Any transactions that create cost movements in Management Accounting are balanced entries. When the system moves a cost from one CO object to another, such as from one cost center to another, the system credits the sending object and debits the receiving object for the same amount.

True and Statistical Objects in Management Accounting

Figure 74: True and Statistical Objects in Management Accounting

Explain the difference between true (or real) objects and statistical objects.

Cost and revenue postings to Management Accounting can result in true (or real) and statistical postings. You can settle true postings with other CO objects. Statistical postings are for information purposes only.


133


True objects can act as sending or receiving objects during cost allocation. Examples of true objects include cost centers, real internal orders, real projects, networks, make-to-order production orders, cost objects, and profitability segments. Statistical objects cannot allocate costs to other objects, but you can make a statistical account assignment to any number of cost accounting objects. Statistical objects include statistical orders, statistical projects, and profit centers.

134



Post an Expense to a Cost Center

Business Example You want to post an expense to a cost center. For this reason, you must know the posting logic between FI and Management Accounting. Create a G/L accounting transaction that posts an expense to a cost center. 1. Create a G/L posting with today’s date for the purchase of operating supplies for company code 1000 and in currency EUR. Enter a debit amount of 10,000 and the tax code V0 to the G/L account 403000. Specify that the offsetting credit amount of 10,000 is to the G/L account 113100. 2. What error message does the system display? 3. Enter cost center CC## in the row with account 403000. Record the document number. 4. Process the Cost Centers: Actual/Plan/Variance report for cost center CC## to view the posting. Use the current period and plan version 0. 5. Drill down to the original document.


135


Post an Expense to a Cost Center

Business Example You want to post an expense to a cost center. For this reason, you must know the posting logic between FI and Management Accounting. Create a G/L accounting transaction that posts an expense to a cost center. 1. Create a G/L posting with today’s date for the purchase of operating supplies for company code 1000 and in currency EUR. Enter a debit amount of 10,000 and the tax code V0 to the G/L account 403000. Specify that the offsetting credit amount of 10,000 is to the G/L account 113100. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Document Entry → Enter G/L Account Document (FB50). b) If prompted, in the Enter Company Code dialog box, enter 1000 in the Company Code field. c) Choose

(Continue).

d) On the Enter G/L Account Document: Company Code screen, enter the following data:

e)

Field Name

Value

Document Date

Today's date

Currency

EUR


403000

D/C

Debit

Amount in doc. curr.

10,000

Tax code

V0


113100

D/C

Credit

Amount in doc. curr.

10,000

Choose

(Enter).

2. What error message does the system display? a) The system displays the error message, “Account 403000 requires an assignment to a CO object." 3. Enter cost center CC## in the row with account 403000. Record the document number.

136



a) In the Cost center field, enter CC## in row with the account 403000. b) c)

Save your entries. Note the document number. Exit the transaction and return to the SAP Easy Access screen.

4. Process the Cost Centers: Actual/Plan/Variance report for cost center CC## to view the posting. Use the current period and plan version 0. a) On the SAP Easy Access screen, choose Accounting → Controlling → Cost Center Accounting → Information System → Reports for Cost Center Accounting → Plan/ Actual Comparisons → Cost Centers: Actual/Plan/Variance (S_ALR_87013611). b) On the Cost Centers: Actual/Plan/Variance: Selection screen, enter the following data:

c)

Field Name

Value

Controlling Area

1000

Fiscal Year

Current fiscal year

From Period

Current period

To Period

Current period

Plan Version

0

Or value(s)

CC##

Choose 10,000.

(Execute). The report displays. Cost element 403000 has a value of

5. Drill down to the original document. a) On the Cost Centers: Actual/Plan/Variance screen, double-click the row with the cost element 403000. b) In the Select Report dialog box, double-click the Cost Centers: Actual Line Items report. c) On the Display Actual Cost Line Items for Cost Centers screen, double-click the row with the value 10,000. The Display Document: Data Entry View screen displays. d)



137



138

●


●



Unit 4

125

Learning Assessment

1. Which of the following are components of Management Accounting? Choose the correct answers. X

A Cost Element Accounting

X

B Financial Accounting (FI)

X

C Cost Center Accounting

X

D Profitability Analysis

2. Sales order management is a primary source for ________ in Profitability Analysis (CO-PA) and Profit Center Accounting (EC-PCA). Choose the correct answer. X

A Journal postings

X

B Revenue postings

X

C Vendor invoices

3. Which of the following is a statistical Controlling object? Choose the correct answer. X

A Profit center

X

B Cost center

X

C Profitability segment

X

D Primary cost element


139

Unit 4

126


1. Which of the following are components of Management Accounting? Choose the correct answers. X

A Cost Element Accounting

X

B Financial Accounting (FI)

X

C Cost Center Accounting

X

D Profitability Analysis

2. Sales order management is a primary source for ________ in Profitability Analysis (CO-PA) and Profit Center Accounting (EC-PCA). Choose the correct answer. X

A Journal postings

X

B Revenue postings

X

C Vendor invoices

3. Which of the following is a statistical Controlling object? Choose the correct answer.

140

X

A Profit center

X

B Cost center

X

C Profitability segment

X

D Primary cost element


UNIT 5

Purchase-to-Pay Processing in SAP ERP

Lesson 1 Describing the Purchase-to-Pay Business Process

143

Lesson 2 Identifying Organizational Levels that Support the Purchase-to-Pay Business Process Exercise 9: List the Organizational Levels

146 153

Lesson 3 Defining Material Masters Exercise 10: Create a Material Master

158 163

Lesson 4 Working with Vendor-Specific Master Data Exercise 11: Create a Vendor Master Record

171 175

Lesson 5 Using Purchase Requisitions Exercise 12: Create a Purchase Requisition Exercise 13: Process a List Display of Purchase Requisitions

184 191 195

Lesson 6 Using Purchase Orders Exercise 14: Create a Purchase Order Exercise 15: Process a General Analysis

198 205 211

Lesson 7 Posting Goods Receipts for Purchase Orders Exercise 16: Enter a Goods Receipt

215 225

Lesson 8 Performing Warehouse Management Tasks Exercise 17: Putaway with a Warehouse Management Transfer Order

233 237

Lesson 9


141

Unit 5: Purchase-to-Pay Processing in SAP ERP

Processing a Vendor's Invoices Exercise 18: Enter a Vendor's Invoice Exercise 19: View a Vendor's Open Items

241 247 253

Lesson 10 Processing the Automatic Payment Run Exercise 20: Process an Automatic Payment Run Exercise 21: View a Vendor's Cleared Item

256 259 263

Lesson 11 Identifying Purchase-to-Pay Integration Points

266

UNIT OBJECTIVES

142

●

Describe the purchase-to-pay business process

●

Identify the organizational levels that support the purchase-to-pay business process

●

Create a material master record

●

Create a vendor master record

●

List other vendor-specific master data

●

Create a purchase requisition for stock and consumable materials

●

Create a purchase order by referencing a purchase requisition

●

Post a goods receipt for a purchase order

●

Explain the warehouse structure in Warehouse Management (WM)

●

Perform a putaway in WM using a transfer order (TO)

●

Enter a vendor's invoice

●

Process the automatic payment run

●

Explain the integration points of the purchase-to-pay business process


Unit 5 Lesson 1 129

Describing the Purchase-to-Pay Business Process

LESSON OVERVIEW This lesson provides an overview of the purchase-to-pay business process. The lesson describes the process for creating a purchase requisition for stock and consumable material, and then converting that purchase requisition into a purchase order. Discuss the steps in the purchase-to-pay business process. Mention that purchase requisitions, purchase orders, goods receipts, invoice receipts, and vendor payments are the focus of subsequent lessons. Business Example Your organization is implementing the purchase-to-pay business process. You need to understand how companies manage their procurement activities. For this reason, you require the following knowledge: ●

An understanding of the purchase-to-pay business process



Purchase-to-Pay Overview


143


Figure 75: Purchase-to-Pay Business Process

The figure shows the various steps of the purchase-to-pay business process. The Steps of the Purchase-to-Pay Business Process Steps of the purchase-to-pay business process: 1. Determine requirements. The responsible department manually creates a purchase requisition to inform purchasing of its material requirements. If you set a material requirements planning (MRP) procedure for a material in the material master, the SAP ERP application automatically generates a purchase requisition. 2. Determine the source of supply. As a buyer, you are supported in the determination of possible supply sources. You can use the source of supply determination to create requests for quotation (RFQs) and then enter the quotations. You can also refer to purchase orders, contracts, and conditions that already exist in the system. 3. Select the vendor. Price comparisons between various quotations make it easier for you to select vendors. The system can send rejection letters automatically. 4. Handle purchase orders. You can create purchase orders manually or let the system create them automatically. This process is similar to purchase requisitions. When you create purchase orders, you can copy data from other documents (such as purchase requisitions or quotations) to reduce the number of entries you have to make. You also have the option to work with outline agreements. 5. Monitor purchase orders.

144


Lesson: Describing the Purchase-to-Pay Business Process

You can monitor the processing status of purchase orders in the system. For example, you can determine whether a delivery or an invoice has already been received for a purchase order item. You can remind vendors about outstanding deliveries. 6. Receive goods. When you enter inbound deliveries in the system, you refer to the associated purchase order. This reduces the number of entries you have to make and allows you to check whether the type of goods and the quantities delivered match the purchase order. The system also updates the purchase order history. 7. Verify the invoice. When you enter invoices, you refer to the previous purchase order or delivery to check the calculations and the general accuracy of the invoice. The availability of the purchase order and goods receipt data means you stay informed of quantity and price variances. 8. Handle payments. You can pay vendor debts using the payment program. The accounting department is responsible for running the payment program on a regular basis.




145

Unit 5 Lesson 2 131

Identifying Organizational Levels that Support the Purchase-to-Pay Business Process

LESSON OVERVIEW This lesson provides an overview of the organizational levels and master data necessary to complete the procurement process. Introduce the participants to the organizational levels necessary to complete the procurement process. Also discuss organizational elements to identify master data. Business Example Your organization is implementing the purchase-to-pay business process. You need to understand both the organizational levels and the master data necessary to complete this business process. For this reason, you require the following knowledge: ●

How to identify the organizational levels that support the purchase-to-pay business process


146



Lesson: Identifying Organizational Levels that Support the Purchase-to-Pay Business Process

Organizational Levels for the Purchase-to-Pay Business Process

Figure 76: Organizational Levels of the Purchase-to-Pay Business Process

Provide an overview of the relevant organizational levels for the procurement process. Discuss how the organizational levels are assigned. In the SAP ERP application, organizational levels represent the legal or organizational structures of a company. Determining the organizational levels is an important procedure in your project. In fact, it is an essential prerequisite for all subsequent activities, such as configuration of master data, vendor master, material master, and FI-GL accounts. Analyze the structural and procedural organizations in your enterprise and then reconcile them with the SAP structures. Once you decide on an organizational structure, it takes considerable effort to change it. Client The client is an organizational unit in the SAP ERP application. The client is self-contained in both legal and organizational terms. It is also self-contained in terms of data because it uses separate master records and an independent set of tables. For example, from a business point of view, the client can represent a corporate group. The client is the highest hierarchical level in the SAP ERP application. Specifications or data that you create and enter at the client level applies to all company codes and all other organizational units. Therefore, you do not have to enter the specifications and data more than once in the system at the client level. This ensures a uniform data status. The system assigns access authorization on a client-specific basis. You need to create a user master record for every user for the client to work. If the Client field is not prepopulated, each user must specify a client key when logging on to the SAP ERP application. This is how you specify which client you want to work with. The client separates and stores all the user input. Similarly, the processing and evaluation of data are carried out on a client-specific basis. The system defines each client uniquely using a three-digit numeric key.


147


Company Code The company code is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated. This includes entering all the events that need to be posted to the accounts and creating a complete audit trail for the balance sheets and profit and loss statements. A company code represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client). You can set up several company codes in a single client to maintain separate sets of accounting books. The system defines a company code uniquely in the client using a four-character alphanumeric key. Plant The plant is an organizational unit within logistics that subdivides an enterprise into production, procurement, and materials planning. The system defines a plant in the client using a four-character alphanumeric key. A plant may represent a variety of entities within a single firm. Some of the entities a plant can represent within a firm are as follows: The production facility

●

●

The central issuing storage location

●

The regional sales office

●

The corporate headquarters

●

The maintenance location

Storage Location The storage location is an organizational unit that facilitates the differentiation of stocks of materials in a plant. Inventory management and the physical inventory are carried out on a quality basis in the plant at the storage location level. The system defines a storage location using a four-character alphanumeric key. Each storage location has a unique key. Purchasing Organization The purchasing organization is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements. The purchasing organization is responsible for procuring materials or services and negotiating the conditions of purchase with vendors, and assumes responsibility for the purchasing activities. Purchasing Group The purchasing group is a key for a buyer or a group of buyers who are responsible for certain purchasing activities. The purchasing group is internally responsible for procuring a material or a class of materials, and externally supplies the contact person for vendors. The purchasing group is not aligned with other units in the company structure.

148



Organizational Levels in Inventory Management

Figure 77: Organizational Levels in Inventory Management

You can create the enterprise structure by assigning organizational levels to each other. Therefore, a single client may contain several company codes. In turn, a company code may contain several plants. However, a plant can only belong to one company code.

Hint: Since each plant’s key is unique in a client, and a plant can only belong to one company code, by specifying the plant, you can specify the plant and the company code simultaneously. You can assign several storage locations to one plant, but a specific storage location can only belong to one plant. Storage locations are uniquely defined for a single plant. The key of a storage location needs to be unique within a plant. Within a client, you can use the same key for different storage locations because when you specify a storage location, you always have to specify the plant. Purchasing Organization and Purchasing Group The key features of a purchasing organization and purchasing group are as follows: ●

Purchasing organization A purchasing organization is an organizational level that negotiates purchase conditions with vendors for one or more plants or companies. A purchasing organization is legally responsible for completing purchasing contracts and meeting the enterprise’s purchasing requirements.

●

Purchasing group A purchasing group is the key for a buyer or group of buyers responsible for certain purchasing activities.


149


You can incorporate purchasing into the company structure by assigning the purchasing organization to a company code and to plants. This means you have to take into account whether your company organizes purchasing on a centralized or decentralized basis. You can combine these two organizational forms. You can assign several purchasing organizations to one company code. However, a purchasing organization can only belong to one company code. You can also decide not to assign the purchasing organization to a company code (cross-company-code purchasing). There is an m:n relationship between purchasing organizations and plants. In other words, you can assign several plants to one purchasing organization, and one plant to several purchasing organizations. You can distinguish between plant-specific, cross-plant, and crosscompany-code purchasing that occur in one enterprise. Once the basic framework of the enterprise structure exists, you have to introduce and incorporate the purchasing-specific organizational levels. Plant-Specific Purchasing Organization

Figure 78: Plant-Specific Purchasing Organization

In plant-specific procurement, the purchasing organization is responsible for procuring the materials for one plant. The purchasing organization is assigned to one company code and one plant of the company code.

150



Cross-Plant Purchasing Organization

Figure 79: Cross-Plant Purchasing Organization

If a purchasing organization procures materials and services for several plants that belong to a company code, you can set up a cross-plant purchasing organization within the company code. To do so, assign the purchasing organization to the required company code and then assign the plants to the company code for which the purchasing organization is responsible. Cross-Company-Code Purchasing Organization

Figure 80: Cross-Company-Code Purchasing Organization

If you need to set up a cross-company-code purchasing organization, you must not assign the purchasing organization to any company code. When you create a purchase order, the system asks you to enter the company code you want to procure the material. The data maintained in a view may be valid for more than one organizational level. This means that in the material master, you need to maintain the organization-level data wherever required, such as in the company code, plant, and storage location.


151


152



List the Organizational Levels

Business Example In an enterprise, the responsibilities of the purchasing, warehouse, and invoice verification departments are organized by regional and functional considerations. The project team tests how it can map this enterprise structure using the relevant organizational levels. For this reason, you have to understand the organizational levels. List the organizational levels that are relevant to the procurement process and explain the relationship between these organizational levels. Task 1 Answer the following questions about how organizational levels function in the procurement process. 1. List the organizational levels that are relevant to the procurement process.

2. Can a plant belong to more than one company code?

3. Can you use the same storage location number in more than one plant?

Task 2 Answer the following questions about the purchasing organization and the purchasing group. 1. A purchasing organization can procure material or services for only one plant. Determine whether this statement is true or false. X

True

X

False


153


2. A purchasing organization is always assigned to one plant. Determine whether this statement is true or false. X

True

X

False

3. A purchasing group is always responsible for only one purchasing organization. Determine whether this statement is true or false.

154

X

True

X

False



List the Organizational Levels

Business Example In an enterprise, the responsibilities of the purchasing, warehouse, and invoice verification departments are organized by regional and functional considerations. The project team tests how it can map this enterprise structure using the relevant organizational levels. For this reason, you have to understand the organizational levels. List the organizational levels that are relevant to the procurement process and explain the relationship between these organizational levels. Task 1 Answer the following questions about how organizational levels function in the procurement process. 1. List the organizational levels that are relevant to the procurement process. Client, company code, plant, storage location, purchasing organization, and purchasing group 2. Can a plant belong to more than one company code? No, a plant is always assigned to only one company code. 3. Can you use the same storage location number in more than one plant? Yes, even if storage locations have the identical storage location number or name in the concerned plants, storage locations are completely independent organizational units within a plant.

Task 2 Answer the following questions about the purchasing organization and the purchasing group. 1. A purchasing organization can procure material or services for only one plant. Determine whether this statement is true or false. X

True

X

False


155


2. A purchasing organization is always assigned to one plant. Determine whether this statement is true or false. X

True

X

False

3. A purchasing group is always responsible for only one purchasing organization. Determine whether this statement is true or false.

156

X

True

X

False






157

Unit 5 Lesson 3 142

Defining Material Masters

LESSON OVERVIEW This lesson covers how to create and maintain a material master record when a material is procured externally. Business Example As a result of redesigning, one of your company’s new finished products, a new component has been added and will be procured externally. After consulting the other departments involved, you create a material master record for the new component. For this reason, you require the following knowledge: An understanding of a material master record

●

LESSON OBJECTIVES After completing this lesson, you will be able to: Create a material master record

●

Material Master Record

Figure 81: Material Master

Emphasize the following points: All the data about a material that is independent of specific vendors, customers, or production routings need to be stored in a central master record. Each user department

●

158


Lesson: Defining Material Masters

does not have to create its own material master record, as this would result in unnecessary data redundancy. ●

To help individual departments in access the data they need, group the data according to a user department. This may also mean that information (data fields) is displayed in different views.

In addition, you need to enter data depending on the organizational level. This is due to different requirements in the enterprise. For example, imagine that plant A requires a material for production, and plant B will only use it for a spare part. In this case, you need to use different MRP procedures, depending on the plant.

The material master record is a company’s central source of material-specific data. You use the material master record in all areas of logistics. Integrating all the material data in a single database object eliminates the problem of data redundancy. All areas, such as purchasing, inventory management, materials planning, and invoice verification, can use the stored data at the same time. Material Master Data You need the data stored in the material master for many activities, including the following: ● Purchasing data for ordering purposes ●

Inventory Management data for posting goods movement and physical inventory management

●

Accounting data for material valuation

●

Materials planning data to plan your material requirements

Several user departments within a company work with one material, and each department stores different information. Therefore, the system subdivides the data in a material master record according to each specific user department. Each user department has its own view of a material master record and is responsible for maintaining this data.


159


Material Master – Organization Levels

Figure 82: Material Master – Organization Levels

Some material data is valid for all organizational levels, while some is valid only for certain levels. The system organizes the material data so that it reflects the structure of a company. This ensures you can administer the material data centrally, without putting an unnecessary load on the database due to redundant information. Examples of organizational level data: ● Data at the client level Data stored at the client level refers to material data valid for your entire organization. ●

Data at the plant level Data stored at the plant level refers to all data that is valid within a plant for all storage locations belonging to that plant.

●

Data at the storage location level Data stored at the storage location level refers to all data valid for a particular storage location.

Client, plant, and storage location organizational levels are relevant for the external procurement process. These levels play a role when you enter data for purchasing, inventory management, and accounting. Other organizational levels can be relevant for other departments. For example, you enter the sales and distribution data depending on the sales organization and the distribution channel. Therefore, you must specify a warehouse number and storage type for the Warehouse Management (WM) data.

160



Data Screens in the Material Master Record Maintenance Process

Figure 83: Data Screens in the Material Master Record Maintenance Process

The data screens that process material master records can be subdivided into the following categories: ● Main data The main data includes the screens for the individual user departments, such as basic data, and materials planning. ●

Additional data The additional data includes the screens where you can find additional information, such as alternative units of measure, material short descriptions, and consumption values.

The data maintained in a view may be valid for various organizational levels. Show participants how to create a material master record by using the data and steps from the exercise.


161


162



Create a Material Master

Business Example Your company needs a new pump gasket to manufacture one of your organization’s pumps. Your company procures this gasket externally. After you consult the other departments involved, create a material master record for the material type “raw material” for the gasket. Initially, plant 1000 will use the material. Create several views using the data from the individual user departments. 1. Create a new material master record with the number R-RA1##. Choose the industry sector Mechanical Engineering and the material type Raw material. Create the Basic Data 1, Purchasing, Purchase Order Text, General Plant Data/Storage 1, Warehouse Data Management 1, Warehouse Data Management 2, and Accounting 1 views for plant 1000, storage location 0088, and warehouse number 001. Enter the following data on the specified views: ● Basic Data The short description of the material is Pump Gasket-##. The base unit of measure used for the gasket is pc (piece). The gasket is assigned to material group 00104 (Mechanics). The gross weight of the gasket is 1 KG. ●

Purchasing Purchasing group 0## is responsible for procuring the gasket. The goods receipt processing time for this material is one day. Reminder letters (expediters) regarding undelivered goods must be sent 10, 20, and 30 days after the date when delivery is due. Under- or over-delivery of the material is not acceptable. Choose the suitable purchasing value key.

●

Purchase Order Text The purchase order (PO) text must read as follows: The material supplied must be in accordance with our technical specification no. 65432.

Hint: When you create a PO, the system uses the language from the vendor master record as the default PO language. The system adopts the material short text and the PO text from the material master record and issues the PO document in the PO language.

●

General Plant Data / Storage 1


163


The gasket will be stored in storage bin BL-01 at storage location 0088. ●

Warehouse Data Management 1 On the Warehouse Mgmt 1 tab page, enter the following values:

●

Field

Value

Base Unit of Measure

PC

Warehouse Data Management 2 On the Warehouse Mgmt 2 tab page, enter the following values in Palletization data line 1: Field

Value

LE Quantity

100

Un

PC

SUT

IP

On the Warehouse Mgmt 2 tab page, enter the following values in Palletization data line 2:

●

Field

Value

LE Quantity

50

Un

PC

SUT

E1

Accounting 1 The system assigns the gasket to valuation class 3000 Raw Materials 1. The gasket is valuated using the moving average price of EUR 20. The currency automatically populates based on the company code’s currency. After you enter the data, save your new material master record.

●

2. Enter the data on the specified views.

164



Create a Material Master

Business Example Your company needs a new pump gasket to manufacture one of your organization’s pumps. Your company procures this gasket externally. After you consult the other departments involved, create a material master record for the material type “raw material” for the gasket. Initially, plant 1000 will use the material. Create several views using the data from the individual user departments. 1. Create a new material master record with the number R-RA1##. Choose the industry sector Mechanical Engineering and the material type Raw material. Create the Basic Data 1, Purchasing, Purchase Order Text, General Plant Data/Storage 1, Warehouse Data Management 1, Warehouse Data Management 2, and Accounting 1 views for plant 1000, storage location 0088, and warehouse number 001. Enter the following data on the specified views: ● Basic Data The short description of the material is Pump Gasket-##. The base unit of measure used for the gasket is pc (piece). The gasket is assigned to material group 00104 (Mechanics). The gross weight of the gasket is 1 KG. ●

Purchasing Purchasing group 0## is responsible for procuring the gasket. The goods receipt processing time for this material is one day. Reminder letters (expediters) regarding undelivered goods must be sent 10, 20, and 30 days after the date when delivery is due. Under- or over-delivery of the material is not acceptable. Choose the suitable purchasing value key.

●

Purchase Order Text The purchase order (PO) text must read as follows: The material supplied must be in accordance with our technical specification no. 65432.

Hint: When you create a PO, the system uses the language from the vendor master record as the default PO language. The system adopts the material short text and the PO text from the material master record and issues the PO document in the PO language.

●

General Plant Data / Storage 1


165


The gasket will be stored in storage bin BL-01 at storage location 0088. ●

Warehouse Data Management 1 On the Warehouse Mgmt 1 tab page, enter the following values:

●

Field

Value


PC

Warehouse Data Management 2 On the Warehouse Mgmt 2 tab page, enter the following values in Palletization data line 1: Field

Value

LE Quantity

100

Un

PC

SUT

IP

On the Warehouse Mgmt 2 tab page, enter the following values in Palletization data line 2:

●

Field

Value

LE Quantity

50

Un

PC

SUT

E1

Accounting 1 The system assigns the gasket to valuation class 3000 Raw Materials 1. The gasket is valuated using the moving average price of EUR 20. The currency automatically populates based on the company code’s currency. After you enter the data, save your new material master record.

●

a) On the SAP Easy Access screen, choose Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). b) On the Create Material (Initial Screen), enter the following data: Field

Value

Material

R-RA1##

Industry sector

Mechanical Engineering

Material Type

Raw material

c) Choose

Continue.

d) Choose the following views on the Select Views screen:

166



●

Basic Data 1

●

Purchasing

●

Purchase Order Text

●

General Plant Data/Storage 1

●

Warehouse Management 1

●

Warehouse Management 2

●

Accounting 1

e) Choose

Continue.

f) In the Organizational Levels dialog box, enter the following data: Field

Value

Plant

1000

Stor. Location

0088

Warehouse No.

001

g) Choose

Continue.

2. Enter the data on the specified views. a) On the Create Material R-RA1## (Raw Material) screen, enter the following data on the Basic data 1 tab page: Field

Value

Material Short Text

Pump Gasket - ##


PC

Material Group

00104

Gross Weight

1

Weight unit

KG

b) Enter the following data in the remaining views selected. To get to the next view in each case, choose

Enter.

Field

Value

Purchasing Group

001

Purchasing value key

1

GR Processing Time

1

Review any warning messages and choose proceed to the next select screen for entry.

Enter to clear the messages and

c) On the Purchase order text tab page, enter the following data:


167


Field

Value

Language

English

Long Text

The material supplied must be in accordance with our technical specification no. 65432

Choose the item description field and then choose selected screen for entry.

Enter to proceed to the next

Note: If your cursor is not in the description field, you will not automatically proceed to the next view. d) On the Plant data/stor. 1 tab page, enter the following data: Field

Value

Storage Bin

BL-01

e) On the Warehouse Mgmt 1 tab page, verify the following values: Field

Value

Material

R-RA1##

Material Short Text

Pump Gasket - ##

Plant

1000

Whse No.

001

f) On the Warehouse Mgmt 2 tab page, verify the following values: Field

Value

Material

R-RA1##

Material Short Text

Pump Gasket - ##

Plant

1000

Whse No.

001

g) On the Accounting 1 tab page, enter the following data:

168

Field

Value

Valuation Class

3000

Price Control

V



h)

Field

Value

Moving price

20

Save your entries and select



169



170

Create a material master record


Unit 5 Lesson 4 153

Working with Vendor-Specific Master Data

LESSON OVERVIEW This lesson explains the concept of vendor master data and describes how to create, display, and modify vendor master data. Business Example As an employee in the purchasing department, you need to maintain vendor information. For this reason, you require the following knowledge: ●

An understanding of how to maintain a vendor master record

●

An understanding of vendor-specific master data



●


Vendor Master Record

Figure 84: Vendor Master Data

After navigating to the vendor master record, choose Goto. You can explain the structure of the vendor master record using the menu options such as General data, Company code


171


data, and Purchasing organization data. Explain the three data areas and the associated data in detail. The vendor master record contains information about a company’s vendors. The system stores this information in the individual vendor master records. You can use the master record not only in materials management but also in Financial Accounting (FI). You only need to enter data once, because you store vendor master data centrally and share it throughout your organization. You can prevent inconsistencies in the master data by maintaining it centrally. If one of your vendors changes their address, you only have to enter this change once. After you enter the change, the system will update your accounting and purchasing departments. Stress the different data categories and give examples of data at each organizational level. In addition to the vendor’s name and address, a vendor master record contains the following data: ● The currency used for transactions with the vendor ●

The terms of payment

●

The names of important contacts related to the vendor (for example, salespeople)

Because the vendor is a creditor of the company for accounting purposes, the vendor master record also contains accounting data, such as the reconciliation account from the general ledger (G/L). Both purchasing and accounting maintain the vendor master record. This is why the system subdivides the data in the vendor master record into various categories. Data in the vendor master record is subdivided into the following categories: General data

●

General data is maintained for a single client and includes the vendor’s address and bank details. ●

Accounting data Accounting data is maintained at the company code level and includes the reconciliation account number and the payment methods for automatic payment transactions.

●

Purchasing data Purchasing data is maintained for each purchasing organization and includes the purchase order currency, incoterms, and various control data associated with the vendor. You can also maintain data for specific plants or vendor subranges in this category.

You can decide whether to maintain vendor master records centrally (all the data is maintained together), or on a decentralized basis (the relevant departments maintain their own data).

172


Lesson: Working with Vendor-Specific Master Data

Vendor Master Record – Organizational Levels

Figure 85: Vendor Master Record – Organizational Levels

If you only authorize your purchasing staff for transactions MK01, MK02, and MK03 (Logistics → Materials Management → Purchasing → Master Data → Vendor → Purchasing → Create/Change/Display), then the staff will be able to maintain the general address and control data, and the purchasing-specific data. Accounting personnel must enter the payment transaction data and the company-code-specific data. You can also authorize your staff to maintain the vendor master data by choosing Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Create/Change/Display (transactions XK01, XK02, and XK03). In this case, the staff can edit all the data in the vendor master record.

Hint: Before you can order anything from a vendor, you must maintain the purchasing data. To enter invoices, you need to create the accounting data and maintain the master data for vendor with accounting details.

Show participants how to create a vendor master record by using the data and steps from the exercise.


173


174



Create a Vendor Master Record

Business Example Your company recently redesigned a new pump gasket. Your company started a business relationship with a new vendor, which will supply the gasket. To order from this vendor, approve invoices for payment, and carry out other processes, you must create a new vendor master record. 1. The organizational levels in the vendor master record You already know that the system maintains the vendor master data using various organizational levels. What organizational levels do you enter data for in the vendor master record?

2. Create vendor master record Create vendor master record T-L05B## centrally for the organizational levels company code 1000 and purchasing organization 1000. Create this vendor master record with account group ZTMM. Enter the following data in the master record: Address Field

Value

Title

company

Name

Highspeed Gr.##

Search term 1/2

TERP10-##

Street/House number

Lincolnstraße 99

Postal code/City

81549 Munich

Country

DE (Germany)

Region

09 (Bavaria)

Language

English


175


Hint: Do not enter anything in the following views: ●

General date: Control, Payment transactions

●

Company code data: Correspondence, Withholding tax

●

Purchasing organization data: Partner functions

Accounting Information The reconciliation account in G/L accounting has the description trade payablesDomestic. Press F4 input help to determine the reconciliation account number. Reconciliation account number: ______________________________ Payment transactions accounting The following terms of payment apply to pure accounting transactions: ●

The payment methods for this vendor are C and S.

●

If the invoice is paid within 14 days of receipt, the vendor grants a 3% cash discount.

●

If the invoice is paid between 14 and 30 days, the cash discount is 2%.

●

If no cash discount is claimed, the invoice has to be paid within 45 days.

Press F4 input help to determine the relevant key for the payment terms. Terms of payment: _________________ Purchasing data The currency for the purchase orders placed with the vendor is EUR. The terms of payment for the purchasing department also apply to the accounts department. Enter the complete data and save your new vendor master record.

176



Create a Vendor Master Record

Business Example Your company recently redesigned a new pump gasket. Your company started a business relationship with a new vendor, which will supply the gasket. To order from this vendor, approve invoices for payment, and carry out other processes, you must create a new vendor master record. 1. The organizational levels in the vendor master record You already know that the system maintains the vendor master data using various organizational levels. What organizational levels do you enter data for in the vendor master record? You enter the data for the following organizational levels in the vendor master record: client, company code, and purchasing organization. 2. Create vendor master record Create vendor master record T-L05B## centrally for the organizational levels company code 1000 and purchasing organization 1000. Create this vendor master record with account group ZTMM. Enter the following data in the master record: Address Field

Value

Title

company

Name

Highspeed Gr.##

Search term 1/2

TERP10-##

Street/House number

Lincolnstraße 99

Postal code/City

81549 Munich

Country

DE (Germany)

Region

09 (Bavaria)

Language

English


177


Hint: Do not enter anything in the following views: ●

General date: Control, Payment transactions

●

Company code data: Correspondence, Withholding tax

●

Purchasing organization data: Partner functions

Accounting Information The reconciliation account in G/L accounting has the description trade payablesDomestic. Press F4 input help to determine the reconciliation account number. Reconciliation account number: ______________________________ Payment transactions accounting The following terms of payment apply to pure accounting transactions: ●

The payment methods for this vendor are C and S.

●

If the invoice is paid within 14 days of receipt, the vendor grants a 3% cash discount.

●

If the invoice is paid between 14 and 30 days, the cash discount is 2%.

●

If no cash discount is claimed, the invoice has to be paid within 45 days.

Press F4 input help to determine the relevant key for the payment terms. Terms of payment: _________________ Purchasing data The currency for the purchase orders placed with the vendor is EUR. The terms of payment for the purchasing department also apply to the accounts department. Enter the complete data and save your new vendor master record. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Create (XK01). b) On Create Vendor: Initial Screen, enter the following data:

c)

Field

Value

Vendor

T-L05B##

Company Code

1000

Purchasing Organization

1000

Account group

ZTMM

Choose

Enter.

d) On the Create Vendor: Address screen, enter the following data:

178

Field

Value

Title

company



e) f) g)

Field

Value

Name

Highspeed Gr.##

Search term 1/2

TERP10-##

Street/House number

Lincolnstraße 99

Postal code/City

81549 Munich

Country

DE (Germany)

Region

09 (Bavaria)

Language

English

Choose

Enter.

On the Create Vendor: Control screen, choose

Enter.

On the Create Vendor: Payment transactions screen, choose

Enter.

h) On the Create Vendor: Accounting information Accounting screen, enter 160000 in the Recon. account field. Choose

Enter.

i) On the Create Vendor: Payment transactions Accounting screen, enter 0002 in the Payt Terms field. Enter the values of C and S in the Payment methods field. Choose Enter. j)

On the Create Vendor: Correspondence Accounting screen, choose

Enter.

k) On the Create Vendor: Purchasing Data screen, enter the following data:

l) m) n)

Field

Value

Order currency

EUR

Terms of paymnt

0002

Choose

Enter.

On the Create Vendor: Partner functions screen, choose Save the entries and choose


Enter.


179


Info Records

Figure 86: Purchasing Info Records

Explain to the participants that a purchasing info record contains information about a specific vendor and the material that a vendor provides. Explain why the relationship between the material and the vendor is an important source of information in purchasing. Provide detailed information about the vendors who can offer a particular material and information on the materials that you can procure from a particular vendor. Given that conditions maintained in an info record are automatically proposed in the related PO, they are very important elements of a purchasing info record.

The purchasing info record or the info record gives the option to store information about a vendor and a material as the master data at the purchasing organization level and the plant level. You can define the following information in info records: ● The current and future prices and conditions (for example, freight and discounts) ●

●

The delivery data (for example, the planned delivery time and the overdelivery and underdelivery tolerances) The vendor data (for example, the contact person at a given vendor) and vendor-specific data about the material (for example, which vendor subrange the material belongs to and the description of the material for the vendor)

●

The last purchase order number

●

The texts

Purchasing Info Records – Text Types The system stores following text types in the purchasing info record:

180



●

The internal info record memo The internal info record memo is an internal comment you transfer to the PO item. This text is not printed.

●

The PO text in the purchasing info record The PO text is used to describe the PO item. You transfer this text to the PO item and print it.

The purchasing info record is an important source of information for the buyer. When you create the purchasing documents, the system transfers the data from the info record to the document as default values. You can also use the list displays for the info records to determine the vendors that offer a particular material or the materials your company can procure from a particular vendor. You can divide the data for a purchasing info record into the following categories: ●

The generally applicable data (valid for a single client)

●

The purchasing organization-specific data

●

The purchasing organization-specific and plant-specific data

Additionally, the selected info category determines the procurement process the data is used for. You can differentiate between a standard process and the special procurement categories of subcontracting, pipeline, and consignment.

Conditions

Figure 87: Conditions

Conditions are agreements with vendors about prices, surcharges, and discounts. You can maintain conditions while entering quotations, info records, outline agreements (contracts, scheduling, and agreements), and POs. The system determines the net and effective prices in a purchasing document based on these conditions. You can also store general conditions at the vendor level. The system uses these conditions for price determination.


181


Explain that the conditions determine the net order price. The figure lists the purchasing documents conditions are maintained in. Discuss how the conditions maintained in an info record apply to all PO items that contain the material and the vendor details, whereas conditions maintained in a purchase order are only specific to that order. You can use the following types of conditions in purchasing: ● Conditions in a contract apply to all contract release orders created with reference to the contract. ●

●

182

Conditions in a purchasing info record apply to all the PO items containing the material and the vendor in the purchasing info record. With general conditions, you can also display price agreements that do not apply to individual quotations, outline agreements, POs, or info records. An example would be if a vendor institutes a price reduction on all the company’s POs as a two-month special offer. You can enter general conditions in Purchasing under Master Data → Conditions.





●



183

Unit 5 Lesson 5 166

Using Purchase Requisitions

LESSON OVERVIEW This lesson describes how to create a purchase requisition for stock and consumable material and how to convert a purchase requisition into a purchase order (PO). Business Example As an employee of the purchasing department, you need to create a purchase requisition to determine what item and how much of that item to order, and the delivery date. For this reason, you require the following knowledge: ●

An understanding of how to create a purchase requisition for stock and consumable materials

●

An understanding of how to convert a purchase requisition into a purchase order

●

An understanding of how to change and display a purchase order Explain the significance of purchase requisitions and emphasize that a purchase requisition is an internal request from a user department for materials or services. Point out the different methods you can use to create a purchase requisition. Data from the material master is copied to a purchase requisition. Stress that a material master record is not required to create a purchase requisition. By using the short text field, materials without a master record can be ordered. Lastly, explain the documents that can be created by converting a purchase requisition.


184



Lesson: Using Purchase Requisitions

Purchase Requisitions

Figure 88: Purchase Requisitions

A purchase requisition is an internal document that the purchasing department uses to procure a particular quantity of a material or a service for a particular date. You can create requisitions directly or indirectly. Creating a requisition directly means that someone from the requesting department enters a purchase requisition manually. The person who creates the requisition determines what and how much to order, and the delivery date. Creating a requisition indirectly means another SAP component initiates the purchase requisition automatically. You can use the following to create requisitions indirectly: ● Material requirement planning (MRP) ●

Maintenance orders

●

Production orders

●

Networks

You can also initiate purchase requisitions from SAP Supply Chain Management (SAP SCM) or SAP Supplier Relationship Management (SAP SRM). When you create a purchase requisition for materials that have a material master record, the system transfers the data in the material master record to the purchase requisition. As of SAP ERP 6.0, you also have the option to select items from a web-based catalog.

Hint: For more information about how catalogs are integrated in purchasing, see the SAP documentation by choosing SAP ERP Central Component → Logistics → Materials Management (MM) → Purchasing (MMPUR) → Further Functions → Integration of Web-Based Catalogs in Purchasing. You can convert purchase requisitions into requests for quotations (RFQs), POs, or outline agreements.


185


Purchase Requisitions Processing

Figure 89: Purchase Requisitions Processing

You can create a purchase requisition manually by going through the requesting department, or you can do it automatically using materials planning. You can use the creation indicator in the statistics data of the purchase requisition item to see which procedure was used to create the purchase requisition. When you create a purchase requisition, you can enter a source of supply for the relevant item or specify a desired vendor. In the end, the purchasing department is responsible for determining the source of supply and for converting the purchase requisition into a PO or RFQ. First, the purchaser assigns the purchase requisition by selecting a valid source of supply. Then, the purchaser converts the purchase requisition into a purchase order or an RFQ. The source of supply determination process can be automated. You can define release procedures for purchase requisitions so you can check that the content of a purchase requisition, the account assignment, and the source of supply are correct. For example, you can define the release procedures flexibly according to the item value, requester, or account assignment. The buyer who is responsible for the purchase requisition converts it into a PO manually, or the system converts it automatically. Consumable Materials Consumable materials are materials or services procured directly for account assignment objects. Examples of consumable materials: ●

Office supplies assigned to a cost center

●

Computer systems assigned to an asset

●

Consumable materials without a material master record

●

●

186

Consumable materials with a material master record that is not subject to inventory management on either a quantity or a value basis Consumable materials with a material master record that is subject to inventory management on a quantity basis, but not on a value basis



Consumable Materials with a Master Record When you procure a material directly for consumption, no material master record is necessary. For consumable materials with a master record: ● There is no value-based inventory management. ●

The system automatically updates consumption in the material master record.

In the SAP ERP application, the term “consumable material” is any material subject to procurement whose value is settled using cost element accounts or asset accounts. Therefore, a consumable material is procured directly for an account assignment object. Examples of consumable materials: ● Office supplies ●

Computers

When procuring a consumable material without a material master record, you have to manually enter a short description, a material group, and a purchase order unit in the document. You have to do this because you cannot fetch this data from a master record. This is not true for a material with a master record. For these materials, the material type controls whether inventory management takes place on a value basis. Material Types Exist by Default for Consumable Materials The following material types exist by default for consumable materials: ● Non-valuated material (material type UNBW) This type of material is subject to inventory management on a quantity basis, not on a value basis. This makes sense for low-value materials that have stocks you still need to monitor (for example, operating manuals). ●

Nonstock material (material type NLAG) Inventory management is not possible for these materials either on a quantity or on a value basis. For frequently required consumables, the use of this material type enables you to store the information required to create purchasing documents, such as texts and units of measure.

You can procure stock material not only for stock, but also directly for consumption. You may purchase trading goods, for example, for a particular customer (sales order). Therefore, if the trading goods are intended for direct consumption, you can enter an account assignment for each item in a purchasing document or a purchase requisition. However, in certain cases, the account assignment is mandatory. Account Assignment for an Item You need to enter an account assignment for an item under the following circumstances: If you order a material that is not subject to value-based inventory management and post its value directly to consumption (pure consumable material)

●

●

If you order an article that does not have a material master record

●

If you order a service


187


List some account assignment categories and name the account assignment object that must be specified depending on the account assignment category. Also, discuss the account assignment category U (unknown).

Account Assignment Objects

Figure 90: Account Assignment Objects

If you want to procure a material as a consumable, you must specify an account assignment category and other account assignment data in the document item of the purchase requisition or purchasing document. The account assignment category determines the account assignment object category that is to be charged. You must provide the account assignment data. The accounts are debited when the goods receipt or invoice is posted. The following are the examples of account assignment objects: The account assignment object cost center (account assignment category K)

●

When you make an account assignment to a cost center, you must enter the general ledger (G/L) account number of the consumption account. You must also enter the cost center for which the material will be procured on the account assignment data screen. You can specify that the system automatically proposes the number of the G/L account to be charged in Customizing. ●

The account assignment object asset (account assignment category A) If you use account assignment category A, you have to enter the asset number on the account assignment data screen. The system automatically determines the G/L account to charge based on the asset number you cannot enter manually.

188



Procurement for Consumption

Figure 91: Procurement for Consumption

The figure contrasts the procurement process for stock material with the procurement process for consumable material. The differences center on the purchasing view and the relevant accounts. You need to start by reviewing the procurement process for stock material. Take a detailed look at the following individual variants of consumable material procurement: ●

The stock material that is procured on an account assignment basis

●

The consumable material without a material master record

●

The consumable material with a material master record

In the above figure, the procurement processes for stock and consumable materials are shown with regard to account assignment. Stock material needs a material master record. You do not specify an account assignment category in the purchase order. The material master record determines the account assignment based on valuation class. The system posts the stock value to a stock account during goods receipt. This updates the stock value and the stock quantity in the material master record. Procurement for Consumable Materials When you procure a consumable material, the material may be a special consumable material with a master record or a special consumable material without a master record. However, you can also procure stock material for consumption. In all cases, you must specify an account assignment category and other dependent account assignment data, such as an account assignment object and a G/L account (consumption account). At the time of goods receipt or invoice receipt, the system debits the consumption account the purchase order


189


specifies with the procurement value. Additionally, the system updates the data for the account assignment object. Stock Material and Consumable Material – A Comparison

Figure 92: Stock Material and Consumable Material – A Comparison

Summarize the important differences between stock materials and consumable materials.

The figure shows the important differences between the procurement process for stock material and procurement process for consumable material. Show participants how to create a purchase requisition and process a list display of purchase requisitions by using the data and steps from the exercise.

190



Create a Purchase Requisition

Business Example Your company needs to procure the pump gaskets because it redesigned one of its pumps. The engineering department will use some of the gaskets. The rest of the gaskets will be received into inventory for use in production. Currently, only one vendor can supply the gaskets. You have to create a purchase requisition for the gaskets, separating the stock portion from the consumable portion. Create a purchase requisition. You need to order pump gaskets. Use a purchase requisition to document your requirements. 1. Create a purchase requisition for a total of 110 pieces of material R-RA1##. The gaskets need to be delivered to Plant 1000 one week from today. Your company will receive the 110 pieces as follows: ●

100 pieces will be placed into stock in Plant 1000

●

10 pieces will be expensed to the engineering department using Cost Center 4298

Enter the cost center on the Account Assignment tab page in the Item Details section of the second line. 2. Review both lines of your purchase requisition. Other than the quantity field, which other field is different between the two line items?

3. Save your purchase requisition and record the purchase requisition number. Purchase requisition number: ____________________________________ 4. Exit the create purchase requisition transactions.


191


Create a Purchase Requisition

Business Example Your company needs to procure the pump gaskets because it redesigned one of its pumps. The engineering department will use some of the gaskets. The rest of the gaskets will be received into inventory for use in production. Currently, only one vendor can supply the gaskets. You have to create a purchase requisition for the gaskets, separating the stock portion from the consumable portion. Create a purchase requisition. You need to order pump gaskets. Use a purchase requisition to document your requirements. 1. Create a purchase requisition for a total of 110 pieces of material R-RA1##. The gaskets need to be delivered to Plant 1000 one week from today. Your company will receive the 110 pieces as follows: ●

100 pieces will be placed into stock in Plant 1000

●

10 pieces will be expensed to the engineering department using Cost Center 4298

Enter the cost center on the Account Assignment tab page in the Item Details section of the second line. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Requisition → Create (ME51N). b) On the Create Purchase Requisition screen, enter the following data for the first item in the Item Overview section of the purchase requisition: Note: To enter data in the Item Overview section, you may have to choose (Expand Items) to the left of the Item Overview screen area.

192

Field

Value

Item

10

A

Leave blank

Material

R-RA1##

Quantity

100

Delivery date

Current date + 1 week



Field

Value

Plant

1000

c) In the Item Overview screen area, enter the following data for the second item:

d)

Field

Value

Item

20

A

K

Material

R-RA1##

Quantity

10

Delivery date

Current date + 1 week

Plant

1000

Choose

Enter.

e) On the Account Assignment tab page, enter the following data: Field

Value

AccAsscat

Cost center

G/L Account

400000 (default, do not change)

Cost Center

4298

2. Review both lines of your purchase requisition. Other than the quantity field, which other field is different between the two line items? The account assignment category field is different. For the first line item, the field is blank, which means this material is used for inventory. The second line item’s account assignment category is K, which means it is a consumable material destined to be charged to a cost center. 3. Save your purchase requisition and record the purchase requisition number. Purchase requisition number: ____________________________________ a)

Save your entries and note the purchase requisition number.

4. Exit the create purchase requisition transactions. a) Choose


(Exit) to return to SAP Easy Access screen.

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Process a List Display of Purchase Requisitions

Business Example On a daily basis, one of your responsibilities is to review open purchase requisitions for inventory items. You will use one of the many list displays. Process a list display of purchase requisitions. 1. Process a list display of purchase requisition for materials R-RA100 to R-RA130.


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Process a List Display of Purchase Requisitions

Business Example On a daily basis, one of your responsibilities is to review open purchase requisitions for inventory items. You will use one of the many list displays. Process a list display of purchase requisitions. 1. Process a list display of purchase requisition for materials R-RA100 to R-RA130. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Requisition → List Displays → General (ME5A). b) On the List Display of Purchase Requisition screen, enter the following data in the Material field:

c)

Field

Value

Material (from)

R-RA100

Material (to)

R-RA130

Choose

(Execute).

d) Double-click to drill down to the purchase requisition that you created for material RRA1##. e) Choose the status tab page and record the processing status of the purchase requisition for line 10. f) Choose

196

(Exit) two times to exit the purchase requisition and then the list display.






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Unit 5 Lesson 6 180

Using Purchase Orders

LESSON OVERVIEW This lesson explains how to create a purchase order (PO) by converting a purchase requisition. Business Example As a purchasing manager, you need to place a formal request to a vendor to supply you with goods or services as per the conditions of the PO. You also need to specify whether the material will be delivered for stock or for direct consumption. For this reason, you require the following knowledge: ●

An understanding of how to create a PO Point out that you can create a PO for a quotation, a purchase requisition, or a reference document. Explain that you can assign a PO to a vendor, or the PO can be a stock transport order for another plant. List the master data and organizational levels needed to create a PO.



Purchase Orders

Figure 93: Purchase Orders

198


Lesson: Using Purchase Orders

A PO is a formal request to a vendor to supply goods or services based on the conditions of the PO. In the PO, you also need to specify whether the material will be delivered for stock or for direct consumption (for example, a cost center, an asset, or a project). The goods receipt (GR) and invoice verification are usually based on the PO. You can minimize data entry time by creating PO items with reference to an existing PO, purchase requisition, quotation, or contract. You can also enter a PO without reference to preceding documents in the system. When you enter PO data, the system suggests default values. For example, it suggests the ordering address, the terms of payment, and freight incoterms based on the vendor master record. If a material master record exists, the system transfers the material short text and the material group automatically. If a purchasing information record already exists in the system, the system proposes the price for the PO. You can either send a PO to the vendor, or you can send a stock transport order to another plant. Purchase Order Format

Figure 94: Purchase Order Format

Like other purchasing documents in the SAP system, a PO consists of a document header and one or more items. The document header contains information that refers to the entire PO, like the document currency, the document date, and the terms of payment. The item portion of the document contains data that describes the materials or services ordered. You can also maintain additional information for each item (for example, delivery schedules or item-based text). You can procure materials or services for all the plants attached to your purchasing organization in a PO.


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Purchase Order Transactions – ME21N, ME22N, and ME23N

Figure 95: Purchase Order Transactions – ME21N, ME22N, and ME23N

The figure shows the PO transaction interface and explains how you can create individual screen areas. After discussing the figure, introduce the Purchasing menu and the transaction ME21N. You can access the Purchasing menu as follows: 1. On the SAP Easy Access screen, open the Purchasing menu and briefly explain the individual nodes. 2. Open the Purchase Order node and explain its structure. 3. Choose Purchase Order → Create Vendor/Supplying Plant Known. 4. Show the individual screen areas and explain how to open and close them. Introduce the following functions in ‘PO transactions – ME21N/ME22N/ME23N‘: ●

Create

●

Display/Change

●

Other purchasing order

●

Help

The PO transaction (ME21N) is a single-screen transaction you can use to maintain all the relevant data on a central screen. Single-Screen Transaction The single-screen transaction is divided into the following screen areas:

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●

Header In the Header, enter all the data relevant for the entire order (for example, the vendor address or the organizational levels).

●

Item overview In the Item overview list, enter the items with the most important data, such as the material, quantity, delivery date, price, and plant.

Hint: Using SAP ERP 6.0, it is also possible to integrate web-based catalogs in purchasing. This means you can copy the item data from a catalog. Before connecting a catalog, make sure the catalog complies with the Open Catalog Interface (OCI) standard. You can only integrate one catalog (see SAP notes 1092922 and 1092923). For more information about catalog connections, refer to the SAP documentation by choosing SAP ERP Central Component → Logistics → Materials Management (MM) → Purchasing (MMPUR) → Further Functions → Integration of Web-Based Catalogs in Purchasing.

●

Item detail In the Item detail section, enter additional data you may need for a particular item, such as additional text, the account assignment specifications, or confirmations.

●

Document overview In Document overview, you can display various purchasing documents, such as purchase orders, requests for quotations, and purchase requisitions. You can define your own user-specific requirements by using (Personal settings). These settings enable users to set their own default settings and specify that the system sets the document overview automatically when the transaction starts. Additionally, you can display a help function similar to the document overview. You can display or hide this help area by choosing while the help area is open.


Help. You can still work in the transaction

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Purchase Order Transaction – Navigation

Figure 96: Purchase Order Transaction – Navigation

You can open and close all the screen areas individually in the ordering transaction. This allows you to influence the size of the screen areas. If you close the header and item detail, for example, the size of the item overview increases. The same applies to the PO header, item overview and item details, document overview, and the help function. If you close and then re-enter the PO transaction, the screen remains in the format it was when you left it. For example, if the document overview and the header were closed and the item overview and item detail were open, the system displays the same screen format. It does not matter which function you use to access the PO (create, change, display). You can switch between functions by choosing

Create or

Display/Change. You can choose the

Other Purchase Order icon to branch directly to another PO or purchase requisition. You can use both names and keys for some fields in the PO. Use this method for the Vendor, Material group, Plant, and Storage location fields. If you enter part of the name, the system will propose the corresponding data. If the system cannot find a single entry for the data, it will provide you with a list of possible entries to choose from. For example, if, you enter son in the Vendor field, the system proposes the vendors Johnson, Peterson, Jackson, and so on.

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Issue Messages

Figure 97: Issue Messages

Introduce the participants to the concept of “messages”. Explain that the system generates a message for each document when you transmit purchasing documents created in the SAP system to a vendor. A message is a document in output format used for communicating with vendors. Do not confuse these messages with system messages. The generation of messages is based on the condition technique. You can issue all purchasing documents as messages. Each time you create a request for a quotation (RFQ), a PO, a contract, or a scheduling agreement, the system creates a message for the affected document. The system places the message in the message queue. The message queue contains all the messages that have not been transferred to the vendors yet. To issue the message (by print, e-mail, fax, or electronic data interchange [EDI]) from the message queue, you have the following options: ● Issue immediately The system issues the message directly from the queue as soon as you save the document. ●

Issue later You can either schedule a background job (for program RSNAST00) that processes the message queue in predetermined intervals, or you can issue the message directly from the purchasing menu. As a rule, issue the messages using the background job and only issue the messages manually as an exception (such as for rush orders). When you issue the message "For message issue", you can specify which header texts and item-based texts the system uses. The header text is printed at the top of the PO and contains general information. Item texts describe a PO item in detail. You can also include and issue standard texts. In the ordering transaction ME21N, you can use the preview pushbutton to preview a document on your screen before printing it.


Print

203


Note: For more information about issuing purchasing documents, refer to the SAP documentation by choosing SAP ERP Central Component → Logistics → Materials Management (MM) → Purchasing (MM-PUR) → Entering Text, Printing, and Transmitting Documents.

Show participants how to create a PO and process the general analysis by using the data and steps from the exercise, Create a Purchase Order.

204



Create a Purchase Order

Business Example Convert the purchase requisition into a PO and display it. Create and process a PO. Task 1 1. Create a PO for your purchase requisition. Your company orders the pump gaskets from vendor T-L05B##. Currently, this is the only vendor who can supply them. The vendor’s price is EUR 30.00 for each pump gasket. 2. Use Document Overview to retrieve your purchase requisition. 3. In the Purchase Order Header, enter Vendor T-L05B## and Purchasing Organization 1000. 4. Enter a net price of EUR 30 for each line item. 5. Save the PO and note the PO number. PO number: ___________________________________ 6. Exit the transaction. Task 2 1. Display the PO you just created. 2. Where in the PO can you view the reference purchase requisition?

Task 3 Display your PO in print preview. When you are satisfied that the data is correct, print the purchasing document. 1. Display a printout (message) of the PO on your screen. 2. View your PO and look at the predefined text under each PO line item. Which master record did you define this text into?

3. Print your PO.


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Task 4 Determine if the system updated your purchase requisition to reflect the processing status for both items. 1. Display the purchase requisition you just created. Hint: If the system does not display your purchase requisition, perform the following steps: a) Choose the Document Overview On pushbutton. b) Choose

(Selection Variant) followed by My purchase requisitions.

c) Double-click on your purchase requisition. d) Choose the Document Overview Off pushbutton.

2. Determine the processing status for each of the purchase requisition’s line items. 3. What is the processing status of the two purchase requisition line items?

206



Create a Purchase Order

Business Example Convert the purchase requisition into a PO and display it. Create and process a PO. Task 1 1. Create a PO for your purchase requisition. Your company orders the pump gaskets from vendor T-L05B##. Currently, this is the only vendor who can supply them. The vendor’s price is EUR 30.00 for each pump gasket. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known (ME21N). 2. Use Document Overview to retrieve your purchase requisition. a) On the Create Purchase Order screen, choose the Document Overview On pushbutton. b) In the Document Overview screen area, choose dropdown list, choose My purchase requisitions.

Selection Variant and then, in the

The system displays your purchase requisition in the Document Overview. c) Select your purchase requisition and choose

(Adopt).

Caution: Do not double-click your purchase requisition as this will take you to Display Purchase Requisition. If it does, you will need to exit from the Display Purchase Requisition transaction and repeat step 2. 3. In the Purchase Order Header, enter Vendor T-L05B## and Purchasing Organization 1000. a) In the Vendor field, enter T-L05B##. If the Header section is collasped, choose the Expand Header icon. b) On the Org. Data tab page, enter 1000 in the Purch. Org field. 4. Enter a net price of EUR 30 for each line item. a) In the Net Price field, enter 30. 5. Save the PO and note the PO number. PO number: ___________________________________ a)

Save your entries and note the PO number.

6. Exit the transaction.


207


a) Choose

Exit to exit the transaction and return to the SAP Easy Access screen.

Task 2 1. Display the PO you just created. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order→ Display (ME23N). Hint: If the system does not display your PO, perform the following steps: a) Choose the Document Overview On pushbutton. b) Choose

(Selection Variant) followed by My purchase orders.

c) Double-click the PO number. d) Choose the Document Overview Off pushbutton.

2. Where in the PO can you view the reference purchase requisition? You can find the reference purchase requisition(s) for each PO line item in the item overview section. You will need to scroll to the right until you see Purchase Req. and Requisn. Item. Task 3 Display your PO in print preview. When you are satisfied that the data is correct, print the purchasing document. 1. Display a printout (message) of the PO on your screen. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Messages → Print/Transmit (ME9F). b) On the Message Output screen, adopt the selection criteria the system proposes and choose

Execute.

c) In the overview, select your document and choose the Display Message pushbutton. d) Remain in Print Preview for the next step. 2. View your PO and look at the predefined text under each PO line item. Which master record did you define this text into? You defined this text in the material master record of the pump gasket. 3. Print your PO. a)

Choose

Back to display the list of messages you need to issue.

b) Select your document again and choose Output Message.

208



c) Choose screen.

Exit two times to exit the transaction and to return to the SAP Easy Access

Task 4 Determine if the system updated your purchase requisition to reflect the processing status for both items. 1. Display the purchase requisition you just created. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Requisition → Display (ME53N).

Hint: If the system does not display your purchase requisition, perform the following steps: a) Choose the Document Overview On pushbutton. b) Choose

(Selection Variant) followed by My purchase requisitions.

c) Double-click on your purchase requisition. d) Choose the Document Overview Off pushbutton.

2. Determine the processing status for each of the purchase requisition’s line items. a) If the Item Detail screen area does not expand, choose

(Expand Item Details).

b) Choose the Status tab page for each line. 3. What is the processing status of the two purchase requisition line items? PO created.


209


210



Process a General Analysis

Business Example You created purchase orders to request goods and services from vendors. Now, you want a comprehensive report detailing the quantity and value of the orders you placed with each vendor. For this reason, you need to know how to generate a general analysis. Process a general analysis. 1. Run a general analysis report for all the vendors you created. 2. Modify the report layout.


211


Process a General Analysis

Business Example You created purchase orders to request goods and services from vendors. Now, you want a comprehensive report detailing the quantity and value of the orders you placed with each vendor. For this reason, you need to know how to generate a general analysis. Process a general analysis. 1. Run a general analysis report for all the vendors you created. a) On the SAP Easy Access screen, choose Logistics → Material Management → Purchasing → Purchase order → Reporting → General Analysis (ME80FN). b) On the Selection screen, enter the following data:

c)

Field

Value

Vendor (from)

T-L05B00

Vendor (to)

T-l05b30

Choose

Execute.

d) To change the layout of this report, you need a subtotal of Order Quantity and Net order value for the vendor. To obtain this data, you have to first generate the grand totals or have the system calculate them. e) Choose the Order quantity column. f) Choose the total pushbutton. g) Choose the Net order value and then choose the total pushbutton. h) Choose the Net order value column followed by the Grand total. i) To get the subtotal for each vendor, choose the vendor column and then choose the subtotals pushbutton. This gives you one total and one subtotal by vendor. 2. Modify the report layout. a) Choose Choose Layout → Change Layout. b) Select the Supplying Plant in the Column Name field. c) Choose

Continue.

d) To place the material Short Text next to the Material field, choose the Short Text column. Now, hold the mouse and drag the Short Text column to the right of the

212



Material column. Release the mouse button. The Short Text column will now appear next to the Material field. e) Choose Choose Layout → Save Layout. f) In the Save as dialog box, enter the following data: Field

Value

Layout

z-GR00

Name

Class layout

g) Select the User-Specific checkbox and then choose


Continue.

213



214



Unit 5 Lesson 7 197

Posting Goods Receipts for Purchase Orders

LESSON OVERVIEW This lesson explains how to post a goods receipt (GR) for a purchase order (PO). Business Example Some of the materials delivered to your organization may require a quality inspection. In this case, the system posts the GR to the quality inspection stock type. In order to issue that material, you have to complete a transfer posting. You want to test this procedure and understand the integration points of entering a GR. For this reason, you require the following knowledge: ●

An understanding of how to post a GR into unrestricted use and quality inspection

●

An understanding of the different stock types list

●

An understanding of how to enter a transfer posting This lesson covers posting a GR into quality inspection and then performing the subsequent transfer posting. It also discusses the stock overview report and the integration effects of a GR.



Goods Receipt Processing

Figure 98: Goods Receipt Processing


215


Emphasize the significance of the link to the PO when your company receives the goods. Describe the effects (background activity of the PO like material document and accounting document) on the PO history and invoice verification. Briefly explain that the system usually generates two documents when it posts the GR (the material document and the accounting document). Also explain which updates are evidenced by these documents (the stock quantity update and the stock value update).

The GR is part of a simple external procurement process. It happens after the system issues a PO for the goods to a vendor. Like the PO process, a document maps the GR process in the SAP system. When goods are delivered against a PO, it is important that you enter the GR for the PO for all concerned departments. When you record that you received the goods, the system checks all open items from the PO. This facilitates both the entry and checking of incoming goods. When a GR is recorded against a PO, the following need to be checked: The right material has been delivered

●

●

●

The right quantity of material has been delivered or whether there has been over- or underdelivery Perishable goods meet the minimum shelf life criteria (the shelf life expiration date check must be active in this case)

Effect of Goods Receipt (GR) When you post the receipt of goods to the warehouse or stores, the system generates a material document. This document contains information about the material delivered and the relevant quantity of the material. The system records the relevant plant storage location where the material is stored. If the GR is valuated, the system also generates an accounting document. This contains details about the accounting effects of the material movement. You can enter several GR items against a PO item in one operation. You want to do this if the material is delivered in several batches or if it is distributed to several storage locations. When you post a GR for a PO, the system automatically updates the PO histories attached to the relevant purchasing document items. This allows the buyer to identify outstanding deliveries and speed up the process, if necessary.

216


Lesson: Posting Goods Receipts for Purchase Orders

Valuated GR

Figure 99: Valuated GR

For GRs, you can decide which stock type to post a quantity to. The stock type is relevant for determining the stock available in materials planning and is also used for withdrawals in inventory management (IM). The stock types you can post a goods receipt for the warehouse into are as follows: ● An unrestricted-use stock (this type has no usage restrictions) ●

●

A quality inspection stock (this type is available from the Materials Requirement Planning (MRP) perspective, but no withdrawals are possible for consumption) A blocked stock (this type is not available from an MRP perspective and no withdrawals are possible for consumption)

You can store a default value for the stock type during the GR in the PO. You can change this default value when you post the GR as long as you are not using the Quality Management (QM) component. You always use movement type 101 to post GRs for a PO to valuated stock. You can enter a stock indicator, such as the movement type, at the item level for the GR. This enables you to differentiate between different stock types. You can only post withdrawals for consumption from unrestricted-use stock. You can withdraw one sample, scrap a quantity, or post an inventory difference from quality inspection stock and blocked stock.

Hint: You will find the stock type for the PO item in the item details on the Delivery tab page. You will find the stock type on the Goods Receipt tab page in the production order. When you post a receipt into the warehouse, the quantity and value of the stock increases regardless of the stock type (except for material types without value updating).


217


Introduce the stock overview and give a short demo to show how the transaction is used. 1. Choose Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview (MMBE). 2. Enter material M-01 and plant 1000 to 3000 and execute the selection. 3. Discuss the stock overview displayed and the navigation as follows: ●

Which stocks are listed with different display versions?

Caution: If necessary, point out to the participants that only three stock columns were displayed on the monitor until SAP R/3 Enterprise. Explain that you have to scroll with Right Columns or Left Columns to enable further columns to be displayed.

●

Double-click on an organization level to display all stocks in one dialog box.

●

Choose Extras → Display Material.

●

Change the material without having to return to the selection screen.

Stock Overview

Figure 100: Stock Overview

To simplify daily work in IM, several functions and reports contain detailed information about all the materials and their stock data. The stock overview is an analysis that delivers information about the stock situation of an individual material. It displays material stocks for each individual organizational level. The system totals the quantities posted for a particular stock type for each organizational unit.

218



You can display the stock overview for batches or valuation types and special stocks (for example, consignment material), as well as for organizational units such as the client, company code, plant, and storage location. Among other things, the movement type controls the way goods are moved (goods issue (GI), GR, or transfer) and is an important tool used for account determination. The SAP system comes with a variety of movement types for the most frequently-used goods movements. You can customize other movement types, if necessary. Each movement type has its own cancellation movement type which corresponds to the number of its movement type + 1.

Movement Types – Examples

Figure 101: Movement Types – Examples

When you enter a goods movement, you have to choose a movement type. A movement type is a three-character key used to differentiate between goods movements. Examples of goods movements are GR, GI, or transfer postings. The movement type assumes important control functions in IM. It plays a central role in automatic account determination in the SAP system. Together with other influencing factors, the movement type determines which stock or consumption accounts the system updates in Financial Accounting (FI). The movement type also determines the screen layout for entering documents or updating quantity fields.


219


The Documents for the Goods Movement

Figure 102: The Documents for Goods Movement

As soon as the system posts the goods movement, you cannot change the quantities, material, movement type, and organization level. If you want to correct errors, you must create a new document. To reverse the incorrect document postings, you must first cancel the incorrect document. The document principle also applies to IT-based IM. A document is proof that a transaction involving stock changes took place. All the documents are stored in the system. The system generates a material document as proof that a process caused a change in stock. If the goods movement is relevant to valuation, the system creates at least one accounting document in addition to the material document. Goods movements (GR, GI, or transfer postings) are relevant to valuation when they affect the accounting department of the company. For example, a GR posting for a raw material results in an increase in the stock value of your current assets. If the raw material is only transferred within one plant, the system will not make any postings in FI. Material and Accounting Documents

Figure 103: Material and Accounting Documents

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The material and accounting documents for goods movement are created simultaneously. The material document consists of a document header and at least one item. The header information includes the posting date and the name of the creator. The system records the quantity of the material posted to the storage location of a plant at item level. The accounting document records the effects of material movements on the accounts. The document header contains applicable data, such as the document date, posting date, posting period, and document currency. The system records the G/L account numbers and the associated amounts posted at the item level. The material and accounting documents are independent documents. You can identify the material document by the material document number and the material document year. You can identify the accounting document uniquely using a combination of the following: ● The company code ●

The accounting document number

●

The fiscal year

The company code in the system posts the accounting document in is taken from the plant where the goods movement takes place. Summarize the main effects of a GR: ●

A material document is created to record the goods movement quantity.

●

An accounting document is created for valuated goods movements.

●

Stock quantities and values are updated.

●

●

●

The price is updated in the material master record for materials with moving average price control. G/L accounts are updated (debit to stock or consumption, credit to GR/IR clearing account). The PO history is updated.


221


Effects of GR

Figure 104: Effects of GR

In addition to generating the Material (quantity) and Accounting (value) documents, GR also affects some other areas. The areas a GR affects are as follows: ● Purchasing – updates the PO history ●

●

●

QM (if active) – creates an inspection lot Warehouse Management (if active) – creates a transfer requirement along with placing the goods into the warehouse Generating output (for example, the GR slip or a pallet label) Show participants how to enter a GR by using data and steps from the exercise.

Quality Management Integration

Figure 105: QM in Procurement

222



The QM considers the following points: ● GR inspection ●

Source inspections

●

Control of the procurement processes

●

Complaints processing

●

Certificate and QM system

●

Vendor evaluation

You require externally supplied materials to produce certain goods. If QM is active in procurement, you can use quality-related vendor and material information to control the supply relationships. Examples of the combinations of vendor and material information are as follows: Vendor evaluation and invoice block

●

●

●

Vendor release Certification monitoring (QM system is valid until the last date of the validity of QM system)

The QM data recorded in procurement for a GR provides the purchasing department with the information required to evaluate vendors. This information includes the results of the GR inspection, complaints about the goods, and the audit results. You can block the delivery of goods from a vendor based on the GR results. The quality information record for procurement controls whether a source inspection or a goods issue inspection takes place for the goods from the vendor. If a source inspection takes place, there is no GR inspection. The vendor master record (in the control screen) stores whether the vendor has a QM system. As a customer, you can define your requirements for the QM system of the vendor in the material master. If a certificate is to be sent with the delivery, the material master stores the information. Complaints (against a vendor) are processed using quality notifications. The settings are to be done if source inspection is active for the vendor-material combination. As a pre-requisite, quality info record for procurement is required to be present. On the SAP Easy Access screen, choose Logistics → Quality Management → Quality Planning → Logistics Master Data → Quality Info Record Procurement. You can define the inspection type for the source inspection on the Insp. control tab page. The Source insp. - no GR. checkbox prevents the system from creating inspection lots for goods receipts, if a source inspection lot exists for PO items. On the Release tab page, you can define a block for a certain vendor with block duration and reason for the block. You can also define the release of a certain vendor for the delivery of a specific PO quantity, or a release that is restricted to a certain period of time. How to control the procurement process:


223


You must select the QM procurement active checkbox on the Quality Management tab page of the material master if the QM in procurement is planned at client level. You can predefine additional data for the QM in procurement using the QM control key, Certificate type, and Target QM system. How to process complaints: On the SAP Easy Access screen, choose Logistics → Quality Management -> Quality Notifications (Notification type Q2). The system includes this complaint against a vendor in the vendor evaluation. For more information, see the SAP Help Portal: http://help.sap.com.

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Enter a Goods Receipt

Business Example The vendor that supplies the gaskets delivered the material to your plant. You want to inspect the material because this is a new vendor. You need to post the GR for the stock material to the quality inspection stock. After you inspect the material, enter a transfer posting to move the inventory from the quality inspection stock to the unrestricted stock. The gaskets the engineering department ordered will not be posted to inventory, but they will be consumed or expensed to their cost center. Display the stock overview and the material document. Task 1: Display the Stock Overview Before you post the GR for R-RA1##, you want to view the current stock situation. 1. Open another session with System → Create Session. Display the stock overview for the material R-RA1## in the plant 1000. 2. Record the on-hand quantity for: Unrestricted – use: ________________________ Qual. Inspection: __________________________ 3. Do not end this session. Task 2: GR Processing The material you ordered was delivered. Enter the GR for the PO. This is a receipt from a new vendor, so post the stock material into the quality inspection. The system expenses consumable material to the cost center upon receipt. 1. Go to a different session from the Stock Overview session, or create another session. Enter a GR at the plant 1000 for your PO. Post the receipt for the stock material into the quality inspection in the storage location 0088. Record the vendor’s Delivery Note 471100-##. 2. Record the material document number. Note: Stay in the MIGO transaction for the next task.

Task 3: Display the Material Document Verify that the system posted the GR correctly and updated the general ledger (G/L).


225


1. Display the material document and navigate to the GR accounting document. 2. Review the two line items on the material document. Why is there no value on the second line item for Storage Location?

3. Next, navigate to the accounting document to view the financial transaction. 4. What general ledger (G/L) accounts did the system update?

5. Exit the accounting document. 6. Return to your Stock Overview session. What is the quantity in the Quality Inspection field? Do not end this session.

Task 4: Display the PO History and PO Status You verified the inventory results for the GR and transferred the posting goods movements. Now view the PO history to determine whether the system updated both line items according to the GR. Check the status of the entire PO. 1. Display the PO history for each of the line items. 2. Navigate to the Purchase Order History tab page located in the item details section of the PO item. 3. Which document is listed there?

4. Next, you view the status for the entire PO. Hint: You may have to choose

(Expand Header) to open the header section.

5. Is your PO fully delivered?

226



Enter a Goods Receipt

Business Example The vendor that supplies the gaskets delivered the material to your plant. You want to inspect the material because this is a new vendor. You need to post the GR for the stock material to the quality inspection stock. After you inspect the material, enter a transfer posting to move the inventory from the quality inspection stock to the unrestricted stock. The gaskets the engineering department ordered will not be posted to inventory, but they will be consumed or expensed to their cost center. Display the stock overview and the material document. Task 1: Display the Stock Overview Before you post the GR for R-RA1##, you want to view the current stock situation. 1. Open another session with System → Create Session. Display the stock overview for the material R-RA1## in the plant 1000. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview (MMBE). b) On the Stock Overview: Company Code/Plant/Storage Location/Batch screen, enter the following data:

c)

Field

Value

Material

R-RA1##

Plant

1000

Choose

(Execute).

d) Scroll to the right in the list or double-click the plant row to see other stock types in the stock overview. 2. Record the on-hand quantity for: Unrestricted – use: ________________________ Qual. Inspection: __________________________ a) Both stock types should have zero on-hand quantity. 3. Do not end this session. a) Go back to this session later in the exercise. Task 2: GR Processing


227


The material you ordered was delivered. Enter the GR for the PO. This is a receipt from a new vendor, so post the stock material into the quality inspection. The system expenses consumable material to the cost center upon receipt. 1. Go to a different session from the Stock Overview session, or create another session. Enter a GR at the plant 1000 for your PO. Post the receipt for the stock material into the quality inspection in the storage location 0088. Record the vendor’s Delivery Note 471100-##. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Known (MIGO). b) On the Display Material Document screen, enter Goods Receipt in the Transaction field and Purchase Order in the Reference field. c) On the Goods Receipt Purchase Order screen, enter the PO number 4500017###. d)

Choose screen.

(Execute). The system will copy the two line items from your PO to the

Hint: You can also search for the PO item. In the Goods Receipt Purchase Order, enter the following data: Field

Value

Vendor

T-L05B##

Material

R-RA1##

Plant

1000

Choose

(Find).

A separate screen appears with the same search results. Choose your PO and then choose

(Copy). Choose

(Close Search Result).

e) Choose the Header pushbutton. f) On the General tab page, enter 471100-## in the Delivery Note field. g) Choose the Detail data pushbutton. h) On the Where tab page, enter the following data:

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Field

Value

Stock type

Quality inspection

Storage Location

0088



Hint: You may have to open the Detail Data section by choosing the Detail data pushbutton. i) Select the Item Ok checkbox. Hint: The Item OK checkbox is under the Detail Data section.

j) Choose the Next Item pushbutton, select the Item OK checkbox for line 1 and line 2 and then choose the Post pushbutton. 2. Record the material document number. Note: Stay in the MIGO transaction for the next task. a) Material document number: ____________________________. Task 3: Display the Material Document Verify that the system posted the GR correctly and updated the general ledger (G/L). 1. Display the material document and navigate to the GR accounting document. a) Choose Display as the transaction and Material Document as the reference. The default proposal is the material document number you edited last. b)

Choose

(Execute).

2. Review the two line items on the material document. Why is there no value on the second line item for Storage Location? The second line item is for the consumable material. 3. Next, navigate to the accounting document to view the financial transaction. a) In the header data, choose the Doc.info tab page. b) Choose

(FI Documents) to branch to the accounting documents.

c) In the List of Documents in Accounting dialog box, double-click the Accounting document. 4. What general ledger (G/L) accounts did the system update? The Inventory Raw Materials, Consumption, and Goods Received/Invoice Received accounts. 5. Exit the accounting document.


229


a) Choose

(Back) and then choose

(Cancel) to return to the material document.

6. Return to your Stock Overview session. What is the quantity in the Quality Inspection field? Do not end this session. 100 units. Task 4: Display the PO History and PO Status You verified the inventory results for the GR and transferred the posting goods movements. Now view the PO history to determine whether the system updated both line items according to the GR. Check the status of the entire PO. 1. Display the PO history for each of the line items. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Display (ME23N). Hint: If your PO does not appear, perform the following steps: a) Choose the Document Overview On pushbutton. b) Choose

(Selection Variant).

c) Choose the My purchase orders option from the dropdown list. d) Double-click the Purchase Order number. e) Choose the Document Overview Off pushbutton.

2. Navigate to the Purchase Order History tab page located in the item details section of the PO item. a) Choose the Purchase Order History tab page in the item details section of the PO item. 3. Which document is listed there? The goods receipt document 4. Next, you view the status for the entire PO. Hint: You may have to choose

(Expand Header) to open the header section.

a) Choose the Header pushbutton. b) Choose the Status tab page.

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5. Is your PO fully delivered? Yes, your PO is fully delivered. On the Status tab page, the PO status is fully delivered. The quantity to be delivered equals zero and the delivered quantity equals the total of the two line items.


231



232



Unit 5 Lesson 8 213

Performing Warehouse Management Tasks

LESSON OVERVIEW This lesson explains the Warehouse Management (WM) functionality used to post a goods receipt for a purchase order (PO). Business Example You need to perform a putaway in the WM using a transfer order (TO). For this reason, you require the following knowledge: ●

An understanding of the warehouse structure Provide an overview of the WM functionality.



●


Warehouse Structure

Figure 106: Logistics Execution – Process Overview


233


Explain the two ways to process goods received and goods issued.

The Logistics Execution (LE) links procurement and distribution regardless of whether they use internal processes or third parties (vendors, customers, or service providers). For the goods receipt (GR) and the goods issue, there are two ways to display the process in LE. You can start the process by creating a delivery or creating an inventory management (IM) posting. Each have to reference a preceding document. If you are working with vendors, complete WM activities (create and confirm a TO) before IM posting.

Note: A TO is the document that executes all the material movements in a warehouse. An IM posting can also start the process. The posting creates a transfer requirement, which is the basis of the planning and posting for the WM activities. A putaway or a stock removal with a TO completes the process.

Note: The figure display is based on the relevant user menu. The cause of a putaway or a stock removal often determines how the system displays the process. Only the GR posting for a production order with a linked putaway is available in the standard system. During sales order processing, stock removal refers to the outbound delivery. Substructure of a Warehouse Number

Figure 107: Substructure of a Warehouse Number

234


Lesson: Performing Warehouse Management Tasks

The WM has a hierarchical warehouse structure. In WM, you can define an entire physical warehouse using a single warehouse number. You can define each of the warehouse facilities in the warehouse complex as storage areas or storage types on the basis of their spatial, technical, and organizational characteristics. Each storage type is divided into storage sections. Storage section bins that have certain common characteristics, like fast-moving items near a goods issue area. Each storage type and storage section consists of a row of storage spaces referred to in WMS as storage bins. The coordinates of the bins indicate their exact position in the warehouse.

Interim storage areas play a special role. These storage types form a link to IM. Examples of interim storage areas are the GR and goods issue areas. Each goods movement that affects both IM and WM is processed by an interim storage area. You can create storage areas within storage types for additional separation. There are different criteria for selecting storage areas. The material in a storage type plays a decisive role. For example, fast-moving items need to be stored inaccessible front storage sections. Easily-perishable goods need to be stored in a refrigerated area. The picking area is on the same hierarchy level as the storage section. You can use a picking area to divide the storage type area for technical stock removal purposes. Unlike the storage section, the picking area is optional. Storage bins are the master data you create within a storage section.

Warehouse Management Tasks

Figure 108: Processing of a GR with a TO

When you enter a GR in materials management (MM),the system checks whether the plant storage location combination specified in the GR posting is subject to WM. Then, the system


235


generates a transfer requirement. The transfer requirement is the basis for the putaway. The sytem creates a TO, and the employee reports confirms the TO to complete the putaway.

When you post a GR, the system checks whether a warehouse number has been assigned to the GR in Customizing. Then, an additional WM tab page appears at the item level. If the GR is booked into a storage location subject to WM, the system recognizes the warehouse number and generates a transfer requirement. The transfer requirement is the basis for the putaway (placement in storage).

Note: The system creates the TO required to put away the materials using this transfer requirement. The system also books the incoming materials into the goods-receiving zone for external receipts. This zone is an interim storage area in the receiving warehouse number. The system represents the material as a quant in the interim storage area. The system moves the quantity booked into the goods-receiving area to the interior of the warehouse using a TO. The TO, which can be a handling instruction for the store person, relates to the transfer requirement and takes key information from goods receipt. The store person completes the process by confirming the TO. The destination storage type is determined in the putaway process along with the storage section. Finally, the system determines a suitable storage bin. After the system creates the TO, the stock in the goods-receiving area is no longer available because it is being moved. The WM stock overview shows it as both stock to be removed from storage at the goods-receiving area, and stock to be placed in storage (putaway stock) at the receiving storage type. Notice that the putaway process is not complete yet.

236



Putaway with a Warehouse Management Transfer Order

Business Example Your organization uses SAP ERP Warehouse Management. Material received during a goods receipt will need to be put away in the warehouse. You need to understand the putaway process in Warehouse Management.

Task 1 Warehouse personnel processed the goods receipt. The material now needs to be stored in the warehouse. 1. Create a transfer order (TO) by referencing the transfer requirement (TR). You will search for the TR using the material number.

Task 2 You put the material away. Confirm the TO to record the putaway. 1. Confirm the TO to record the putaway quantity of three for the material R-RA1##.

Task 3 Process the Total Stock per Material report. 1. Process the Total Stock per Material report for the material R-RA1## in the warehouse number 0##.


237


Putaway with a Warehouse Management Transfer Order

Business Example Your organization uses SAP ERP Warehouse Management. Material received during a goods receipt will need to be put away in the warehouse. You need to understand the putaway process in Warehouse Management.

Task 1 Warehouse personnel processed the goods receipt. The material now needs to be stored in the warehouse. 1. Create a transfer order (TO) by referencing the transfer requirement (TR). You will search for the TR using the material number. a) On the SAP Easy Access screen, choose Logistics → Logistics Execution → Inbound Process → Goods Receipt for Purchase Order, Order, Other Transactions → Putaway → Create Transfer Order → For Material (LB11). b) On the Display Transfer Requirement: List for Material screen, enter the following data:

c)

Field

Value

Warehouse Number

0##

Material

R-RA1##

Choose

Enter.

d) On the Transfer Requirements for Material screen, choose the TR number by selecting the checkbox in the S column. e) Choose the TO in Foreground pushbutton. f) On the Create TO for TR: Prepare for Putaway screen, choose Edit → Put Away → Background. g)

Save your entries.

h) Record the TO number. i)


Task 2 You put the material away. Confirm the TO to record the putaway.

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Lesson: Performing Warehouse Management Tasks

1. Confirm the TO to record the putaway quantity of three for the material R-RA1##. a) On the SAP Easy Access screen, choose Logistics → Logistics Execution → Inbound Process → Good Receipt for Purchase Order, Order, Other Transactions → Putaway → Confirm Transfer Order → Single Document → In One Step (LT12). b) On Confirm Transfer Order: Initial Screen, enter the following data: Field

Value

TO Number

313

Warehouse Number

0##

c) Choose d) e)

Continue.

Save your entries to confirm the TO. Exit the transaction and return to the SAP Easy Access screen.

Task 3 Process the Total Stock per Material report. 1. Process the Total Stock per Material report for the material R-RA1## in the warehouse number 0##. a) On the SAP Easy Access screen, choose Logistics → Logistics Execution → Internal Whse Processes → Bins and Stock → Display → Total Stock per Material (Warehouse Management) (LS26). b) On the Stock Overview screen, enter the following data: Field

Value

Warehouse Number

001

Material

R-RA1##

c) Choose

Continue.

d) The material is now listed in the storage type 001 as available stock. e)



239



240

●


●



Unit 5 Lesson 9 221

Processing a Vendor's Invoices

LESSON OVERVIEW This lesson explains how to check and verify a vendor’s invoice for goods supplied for a purchase order (PO). This lesson also describes how to make manual payments to clear open items once the system records a vendor’s invoice. Business Example Your company wants to implement use the vendor receipt and vendor payment steps in the purchase-to-pay business process. For this reason, you require the following knowledge: ●

An understanding of how to enter a vendor’s invoice

●

An understanding of how to post a manual outgoing vendor payment This topic covers entering a vendor’s invoice and posting a manual outgoing vendor payment.



Logistics Invoice Verification (LIV) Process

Figure 109: Invoice Verification Process


241


Logistics Invoice Verification (LIV) is a part of material management (MM) developed to enter invoices from previous procurement processes. You can enter individual invoice items or complete invoices without using a PO, but it is the industry standard to do so for a PO. Check the invoice and make sure you received the correct material or service. Check to see if the price and quantity of the material is correct when the link to the PO is established. The system can only detect differences from the expected values if there is a link to the PO.

Invoice verification completes the procurement process in Material Management (MM). The system enters invoices and credit memos and checks for accuracy. Invoice verification excludes payment or invoice evaluation. The system sends this information to other departments. Invoice verification creates the connection between MM and external or internal accounting. When the system creates an invoice with a PO reference, the system uses data from the PO and the goods receipts (GRs). For example, the data includes the vendor, the material, the quantity yet to be invoiced, and the terms of payment. If there are differences between the PO or GR and the invoice, the system warns the user and blocks the invoice payment. Posting the invoice completes the invoice verification process. The system updates the PO history. Financial accounting (FI) pays the open invoice items. The Invoice Verification with Reference to PO

Figure 110: Invoice Verification with Reference to PO

You can also assign the invoice items to a PO using the delivery note number or the bill of lading as long as these numbers are on the goods receipt. If you enter an invoice for a PO, the system suggests the items from the PO that have not been fully invoiced. For example, if 100 pieces have been delivered and 60 pieces are invoiced, 40 pieces still have to be invoiced. The system also suggests the expected value of the items. The expected value is the quantity that still needs to be invoiced multiplied by the order price. If the vendor invoice values are different from the suggested values, the person entering the data must overwrite the suggested values with the figures from the original invoice. If the discrepancy between the invoice value and the expected value exceeds tolerances, the system blocks the invoice for payment (for example, if the invoice price varies from the PO price).

242


Lesson: Processing a Vendor's Invoices

Documents in Invoice Verification

Figure 111: Documents in Invoice Verification

The invoice document consists of a document header and at least one item. The header data includes the vendor (invoicing party), the posting date, and the name of the person who created the document. The item data indicates the amount charged for a certain quantity of a material. The accounting document shows the bookkeeping effects of the entry of the invoice. The document header contains the document date, the posting date, the posting period, and the document currency. The system records the general ledger (G/L) account numbers and amounts posted at the item level. Posting an Invoice

Figure 112: Posting an Invoice


243


The effects of posting an invoice are as follows: The system creates an accounting document. Individual items post to their accounts.

●

●

The system reverses the provisions in the GR/IR clearing account.

●

The system enters the invoice document in the PO history.

●

If the invoice price is different than the PO price, the system recalculates and updates the stock value and the current moving average price in the material master. Show the participants how to enter a vendor invoice using the data and the steps from this exercise.

Document Splitting

Figure 113: Entry View (Document Splitting)

Explain that document splitting is a new General Ledger functionality. Document splitting allows organizations to create real-time balance sheets for segments and profit centers. There is a vendor invoice for EUR 11,600. Two segments (cost centers, profit centers, or business areas) will split the two segments. The figure displays the entry view. Currently, you have to derivate the segment from the profit center. You can derive the profit center from a cost center, a controlling (CO) internal order, or a project. Corporate groups have to create balance sheets at the segment level. Segment entries cannot exist in two line items (this would mean the balance sheet is incomplete). The segments’ balance is not zero, which means the balance sheet is not balanced. This is why SAP uses document splitting.

244



General Ledger View (Document Splitting)

Figure 114: General Ledger View (Document Splitting)

Note: The layout or display variant of the document sorts segments with subtotals in ascending order in the Segment column. You can specify in Customizing that the system needs to complete the missing entries automatically. The correct amount is shown in the figure. Activate document splitting to ensure the segment characteristic splits uniformly Systematic segmentation means that each document has a zero balance for the entity in question. There are six lines in the document now. The vendor line item and the tax item are split across the two (segments A and B). The balance for each segment is zero. You can create the balance sheet and profit and loss (P&L) statement in full, and the system balances the balance sheet in the background. The figure also shows how the accounts payable and the tax items inherit the segment entity in the document. Document splitting reduces the time and effort the user spends entering documents. Entering six account assignment items would be time consuming. Document splitting is only possible in the new General Ledger. There are two views of the posted documents - the Entry view and the General Ledger view. You can decide which view to use. If you do not need document splitting or it is inactive (for example, the customer only needs to create balance sheets at the company code level), then both views are identical. If there is only one document in the database, the views differ. Customer invoices that distribute revenues among various entities are handled in the same way. The figure also shows how the accounts payable and tax items inherit the segment entity in the document.


245


The online split (and inheritance) eliminates the need for the period-end closing activities “balance sheet adjustment” (=> SAPF180) and “P&L adjustment” (=> SAPF181).

Caution: Document splitting also works with post-processing processes, such as payments. Cash discounts paid or received are distributed among the entities based on the amount of the original expense postings (in the case of an original vendor invoice).

246



Enter a Vendor's Invoice

Business Example You received the vendor’s invoice for the gaskets. Enter the data using logistic invoice verification (LIV). Check the invoice items against the PO and the GR. You want to establish a good working relationship with the new vendor, so do not wait for the weekly payment run to make a payment. Issue a manual payment instead. Use LIV to post a vendor invoice, explain the effects (vendor account document will be generated in the background) on the PO, and create a manual check to pay the vendor’s open invoice. Task 1: The Invoice Receipt Vendor T-L05B## invoices you for delivering the pump gaskets. Enter the invoice using LIV. 1. The vendor T-L05B## sent you the following invoice for delivering 110 pump gaskets. Enter the invoice against your PO. Use the following data from the vendor’s invoice. Invoice

Highspeed GR## Lincolnstrabe 99 81549 Munich Invoice number: 100350-##

IDES Hamburg Plant

Invoice Date: [current date]

Altersdorfestr. 13 22299 Hamburg

With reference to your PO no. 45000#####, we are invoicing you for the following items: Item

Qty.

Material Number

Description

Price Per Unit Total Value

10

110 PCs

R-RA1##

Pump gaskets

EUR 30.00

EUR 3,300.00

plus a 16% tax

EUR 528.00 EUR 3,828.00

2. Post the document and record the invoice document number.


247


Skip through any tax warnings. Note: After you post the invoice document, stay in the Enter Incoming Invoice transaction for the next task.

Task 2: Display the Invoice Document View the invoice document and the accounting document the system created after the invoice posted. 1. Display the invoice document. You can display the invoice document directly from the Enter Incoming Invoice transaction. 2. View the accounting document associated with the invoice document. 3. Which account are the vendor’s liabilities posted to? 4. Which G/L account does the system use to offset the vendor liability line item? 5. Exit the accounting document and the invoice document.

Task 3: Display the Purchase Order History and the Purchase Order Status You verified the results for the invoice receipt. View the purchase order history to determine whether the system updated both line items based on the invoice receipt. 1. Display the PO history for each line item. 2. Navigate to the Purchase Order History tab page in the Item header of the PO item. 3. What new document is listed? 4. Exit the PO.

248



Enter a Vendor's Invoice

Business Example You received the vendor’s invoice for the gaskets. Enter the data using logistic invoice verification (LIV). Check the invoice items against the PO and the GR. You want to establish a good working relationship with the new vendor, so do not wait for the weekly payment run to make a payment. Issue a manual payment instead. Use LIV to post a vendor invoice, explain the effects (vendor account document will be generated in the background) on the PO, and create a manual check to pay the vendor’s open invoice. Task 1: The Invoice Receipt Vendor T-L05B## invoices you for delivering the pump gaskets. Enter the invoice using LIV. 1. The vendor T-L05B## sent you the following invoice for delivering 110 pump gaskets. Enter the invoice against your PO. Use the following data from the vendor’s invoice. Invoice

Highspeed GR## Lincolnstrabe 99 81549 Munich Invoice number: 100350-##

IDES Hamburg Plant

Invoice Date: [current date]

Altersdorfestr. 13 22299 Hamburg

With reference to your PO no. 45000#####, we are invoicing you for the following items: Item

Qty.

Material Number

Description

Price Per Unit Total Value

10

110 PCs

R-RA1##

Pump gaskets

EUR 30.00

EUR 3,300.00

plus a 16% tax

EUR 528.00 EUR 3,828.00


249


a) On the SAP Easy Access screen, choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice (MIRO). Note: If the Enter Company Code dialog box appears, enter 1000 in the Company Code field and choose

Continue.

b) Enter the following data on the Basic data tab page: Field

Value

Invoice date

Current date

Reference

100350-##

Amount

3,828

Tax amount

528

Tax code (field to the right of tax amount) VN – 16% Domestic input tax c) On the PO reference tab page, choose Purchase Order/Scheduling Agreement as the reference document category and enter the PO number in the PO Number field. Hint: If you want to search the PO, press F4 and enter the following data: a) On the Possible Entries for Purchasing Document screen, enter the following data:

b)

Field

Value

Vendor

T-L05B##

Plant

1000

Material

R-RA1##

Choose

(Execute).

c) Choose the PO in the results list and choose

d)

Choose

(Copy).

Enter so the system uses the data in the PO.

The system verifies the default data agrees with the vendor’s invoice. The document balance is zero. The screen shows that the system performed the accounting match and the PO price, the goods receipt quality, and the vendor’s invoice amount are correct. 2. Post the document and record the invoice document number. Skip through any tax warnings.

250



Note: After you post the invoice document, stay in the Enter Incoming Invoice transaction for the next task. a)

Save your entries and note the invoice document number.

b) Stay on the Enter Incoming Invoice screen for the next task.

Task 2: Display the Invoice Document View the invoice document and the accounting document the system created after the invoice posted. 1. Display the invoice document. You can display the invoice document directly from the Enter Incoming Invoice transaction. a) On the Enter Incoming Invoice screen, choose Invoice Document → Display. Hint: You can also choose (Other invoice document). In the Choose Invoice Document dialog box, the system defaults to the last invoice you posted. Choose Continue to display the invoice. 2. View the accounting document associated with the invoice document. a) Choose the Follow-On Documents pushbutton. b) In the List of Documents in the Accounting dialog box, double-click Accounting document. 3. Which account are the vendor’s liabilities posted to? a) On the Display Document: Data Entry View screen, the vendor’s liabilities are posted on the vendor account T-L05B##. 4. Which G/L account does the system use to offset the vendor liability line item? a) The GR/IR account. 5. Exit the accounting document and the invoice document. a) b)

Go back and cancel to return to the invoice document. Exit the transaction and go back to the SAP Easy Access screen.

Task 3: Display the Purchase Order History and the Purchase Order Status You verified the results for the invoice receipt. View the purchase order history to determine whether the system updated both line items based on the invoice receipt. 1. Display the PO history for each line item.


251


a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Display (ME23N). Hint: If your PO does not appear, perform the following steps: a) Choose the Document Overview On pushbutton. b) Choose Selection Variant → My purchase orders. c) Double-click the Purchase Order number. d) Choose the Document Overview Off pushbutton.

2. Navigate to the Purchase Order History tab page in the Item header of the PO item. a) On the Stock transport Ord. screen, choose the Purchase Order History tab page in the Item header of the PO item. 3. What new document is listed? a) The invoice receipt document. 4. Exit the PO. a)

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View a Vendor's Open Items

Business Example To work in the SAP system, you need to verify that your vendor has an open item and then view that item. Search for and verify that your vendor has an open item. 1. In the previous exercise, you entered an invoice for your vendor, T-L05B##. Verify that your vendor has an open item. Use the Display/Change Line Items report. 2. Does an open item exist for your vendor?


253


View a Vendor's Open Items

Business Example To work in the SAP system, you need to verify that your vendor has an open item and then view that item. Search for and verify that your vendor has an open item. 1. In the previous exercise, you entered an invoice for your vendor, T-L05B##. Verify that your vendor has an open item. Use the Display/Change Line Items report. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Account → Display/Change Line Items (FBL1N). b) On the Vendor Line Item Display screen, enter the following data:

c)

Field

Value

Vendor account

T-L05B##

Company code

1000

Open items

Selected

Open at key date

Today’s date

Choose

(Execute).

2. Does an open item exist for your vendor? Yes

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255

Unit 5 Lesson 10 236

Processing the Automatic Payment Run

LESSON OVERVIEW This lesson reviews the Automatic Payment Program (APP) process vendors and customers use to process payments and receivable requests. Business Example As a project team member of the Accounts Payable department, you need to record the invoices of a vendor for purchase orders or invoicesbooked directly in Financial Accounting (FI). For this reason, you require the following knowledge: ●

An understanding of how to run the automatic payment program



Payment Process

Figure 115: Elements of the Payment Process

You can pay an organization’s vendors manually or by using the automatic payment program. The standard system contains common payment methods and corresponding forms defined by country.

256


Lesson: Processing the Automatic Payment Run

Overview of the Automatic Payment Program

Figure 116: Overview of the Automatic Payment Program

The system performs the following actions during the payment run: ● Posts payment documents ●

Clears open items

●

Prepares data for printing the payment media Show participants how to process an automatic payment run by using data and steps from the exercise.


257


258



Process an Automatic Payment Run

Business Example You need to make payment to the vendors. You need to create an automatic payment run. Create an automatic payment run to pay your vendor. 1. Execute a payment selection run to pay the vendor T-L05B##. Enter today as the run date and GR## as the identification. 2. Maintain the payment run parameters. The payment run selects all the documents entered up until today for the vendor T-L05B## in the company code 1000. Any payments in this run should be made by check (payment method S). Enter the posting date for the next payment run. The system decides whether to make the payment in this payment run or the next payment run. The next payment run is a month from today. 3. Run your proposal by choosing the Schedule Proposal pushbutton. Select the Start Immediately checkbox. 4. Display the payment proposal. 5. Start the payment run immediately. This posts the document. At this point, the system creates a document to record your payment transaction. Refresh the Status pushbutton in the toolbar until you see the message that posting orders are generated and completed.


259


Process an Automatic Payment Run

Business Example You need to make payment to the vendors. You need to create an automatic payment run. Create an automatic payment run to pay your vendor. 1. Execute a payment selection run to pay the vendor T-L05B##. Enter today as the run date and GR## as the identification. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Periodic Processing → Payments (F110). b) On the Automatic Payment Transactions: Status screen, enter the following data: Field

Value

Run Date

Today’s date

Identification

GR##

c) On the Status tab page, the status of the new payment run is – No parameter entered as yet. d)

Choose

Enter.

e) Choose the Parameter tab page. 2. Maintain the payment run parameters. The payment run selects all the documents entered up until today for the vendor T-L05B## in the company code 1000. Any payments in this run should be made by check (payment method S). Enter the posting date for the next payment run. The system decides whether to make the payment in this payment run or the next payment run. The next payment run is a month from today. a) On the Automatic Payment Transactions: Parameters screen, enter the following data:

260

Field

Value

Posting Date

Today’s date

Docs entered up to

Today’s date

Company codes

1000

Pmt meths

S

Next p/date

Today’s date plus one month

Vendor

T-L05B##



b)

Save your entries.

c) Choose the Status tab page. d) The status of your payment run is – Parameters have been entered. 3. Run your proposal by choosing the Schedule Proposal pushbutton. Select the Start Immediately checkbox. a) On the Automatic Payment Transactions: Status screen, choose the Schedule Proposal pushbutton. b) In the Schedule Proposal dialog box, select the Start Immediately checkbox. c)

Choose

Enter.

d) To update the status, choose Enter until you see a message that says the payment proposal has been created. Hint: Choose the Status pushbutton to display the payment proposal status.

4. Display the payment proposal. a) Choose the Display Proposal pushbutton. The screen shows a line for your vendor. Hint: If the screen does not show any payments or only shows the exception list, you made an error somewhere. Choose Display Proposal to look at the proposal log from the initial screen. Logon and see if you can find the error. Delete the payment proposal (Edit → Proposal → Delete) and remove the error. Then restart the payment proposal. Repeat this process until the proposal shows the payments. b)

Go back to the Status tab page.

5. Start the payment run immediately. This posts the document. At this point, the system creates a document to record your payment transaction. Refresh the Status pushbutton in the toolbar until you see the message that posting orders are generated and completed. a) Choose the Schedule payment run pushbutton. b) In the Schedule payment run dialog box, choose the Start Immediately checkbox. c)

Choose

Enter.

d) To update the status, choose Enter until a message appears that says the system completed the payment run and created posting orders.


261


262



View a Vendor's Cleared Item

Business Example You made a payment using the automatic payment run and you want to see the invoices the payment run cleared. Look up a vendor’s cleared item and verify that the automatic payment program cleared the item. 1. You have paid your vendor, T-L05B##. Verify that the automatic payment program cleared the open item. Use the display/change line items report. 2. What changes do you see?


263


View a Vendor's Cleared Item

Business Example You made a payment using the automatic payment run and you want to see the invoices the payment run cleared. Look up a vendor’s cleared item and verify that the automatic payment program cleared the item. 1. You have paid your vendor, T-L05B##. Verify that the automatic payment program cleared the open item. Use the display/change line items report. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Account → Display/Change Line Items (FBL1N). b) On the Vendor Line Item Display screen, enter the following data:

c)

Field

Value

Vendor account

T-L05B##

Company code

1000

All items

Selected

Posting date

Document date

Choose

(Execute).

2. What changes do you see? The system cleared the original open item and created a payment item (document type ZP).

264






265


Identifying Purchase-to-Pay Integration Points

LESSON OVERVIEW This lesson describes the integration points of the purchase-to-pay business process. Business Example As a project team member, you need to design the purchase-to-pay business process in your organization. While you focus on the requirements and design along the entire process, it is necessary to ensure that the integration points of the purchase-to-pay business process are taken into consideration and included. For this reason, you require the following knowledge: ●

An understanding of how to create a purchase requisition and a purchase order (PO)

●

An understanding of how to post a goods receipt and an invoice receipt



Integration Points of Purchase to Pay

Figure 117: Integration Points of Purchase to Pay

Provide an overview of the integration points from a SAP application point of view.

266


Lesson: Identifying Purchase-to-Pay Integration Points

The purchase-to-pay business process integrates with different SAP application modules. The integration points of the purchase-to-pay business process are as follows: ● Create a purchase requisition You can create a purchase requisition using a material requirements planning (MRP) run. If a purchase requisition line item is consumable for a cost object, then the system creates a commitment in Management Accounting when you save the purchase requisition.

Note: Commitment management within Management Accounting needs to be activated.

●

Create a PO If a PO line item is consumable for a cost object, then the system creates a commitment in Management Accounting when you save the PO.

●

Post a goods receipt When you save a goods receipt for stock materials, it increases your on-hand inventory. If the material valuation changes, the system creates an accounting document in Financial Accounting (FI). If the PO is for consumable materials, the system creates an accounting document in FI, and then creates a controlling document in Management Accounting. If the organization uses Warehouse Management, the system creates a transfer requirement. Finally, the system updates the PO history.

●

Post an invoice receipt When you post an invoice, the system creates an accounting document in FI to record the liability owed to the vendor. The system also creates an open item in the vendor’s account. If the PO is for consumable materials and the invoice amount is different than the PO amount, the system creates a controlling document in Management Accounting.




267


268


Unit 5

249

Learning Assessment

1. The availability of purchase order and _______ data means that you can be informed of quantity and price variances. Choose the correct answer. X

A Purchase requisition

X

B Goods receipt

X

C Invoice receipt

2. Which of the following is the smallest organizational unit of external accounting? Choose the correct answer. X

A Company code

X

B Plant

X

C Storage location

3. Which of the following organizational levels help maintain material master records? Choose the correct answers. X

A Plant level

X

B Storage location level

X

C Client

X

D Main work level

4. Which type of data is the purchase order currency? Choose the correct answer. X

A General data

X

B Accounting data

X

C Purchasing data


269


5. Which pieces of information can you define in the info records? Choose the correct answers. X

A Number of the last purchase order

X

B Texts

X

C Internal info record memo

X

D Purchase order text in the purchasing info record

6. The purchase requisition is “direct” if the system creates it automatically from another SAP component. Determine whether this statement is true or false. X

True

X

False

7. Which of the following screen areas show the single-screen transaction divided? Choose the correct answers. X

A Header

X

B Document overview off

X

C Item detail

8. Which of the following documents does the system generate when you post the goods receipt? Choose the correct answers. X

A Material document

X

B Accounting document

X

C Purchasing document

9. Interim storage areas form a link to _____________. Choose the correct answer.

270

X

A Inventory management

X

B Material management

X

C Storage management



10. The ____________ is the basis for the subsequent putaway. Choose the correct answer. X

A Transfer requirement

X

B Transfer order

X

C Purchase order

11. Which of the following statements about the logistics invoice verification process is true? Choose the correct answer. X

A Posting the invoice is the second phase of the invoice verification process.

X

B Logistics invoice verification creates a connection between materials management and inventory management.

X

C When you post an invoice, the system creates an accounting document.

12. Which of the following tasks does the system perform during the payment run? Choose the correct answer. X

A The system posts payment documents.

X

B The system creates open items.

X

C The system modifies data for printing the payment media.

13. Which document does the system create after you post an invoice? Choose the correct answer. X

A Accounting document

X

B Controlling document

X

C Material document


271

Unit 5

252


1. The availability of purchase order and _______ data means that you can be informed of quantity and price variances. Choose the correct answer. X

A Purchase requisition

X

B Goods receipt

X

C Invoice receipt

2. Which of the following is the smallest organizational unit of external accounting? Choose the correct answer. X

A Company code

X

B Plant

X

C Storage location

3. Which of the following organizational levels help maintain material master records? Choose the correct answers. X

A Plant level

X

B Storage location level

X

C Client

X

D Main work level

4. Which type of data is the purchase order currency? Choose the correct answer.

272

X

A General data

X

B Accounting data

X

C Purchasing data



5. Which pieces of information can you define in the info records? Choose the correct answers. X

A Number of the last purchase order

X

B Texts

X

C Internal info record memo

X

D Purchase order text in the purchasing info record

6. The purchase requisition is “direct” if the system creates it automatically from another SAP component. Determine whether this statement is true or false. X

True

X

False

7. Which of the following screen areas show the single-screen transaction divided? Choose the correct answers. X

A Header

X

B Document overview off

X

C Item detail

8. Which of the following documents does the system generate when you post the goods receipt? Choose the correct answers. X

A Material document

X


X

C Purchasing document

9. Interim storage areas form a link to _____________. Choose the correct answer. X

A Inventory management

X

B Material management

X

C Storage management


273


10. The ____________ is the basis for the subsequent putaway. Choose the correct answer. X

A Transfer requirement

X

B Transfer order

X

C Purchase order

11. Which of the following statements about the logistics invoice verification process is true? Choose the correct answer. X

A Posting the invoice is the second phase of the invoice verification process.

X

B Logistics invoice verification creates a connection between materials management and inventory management.

X

C When you post an invoice, the system creates an accounting document.

12. Which of the following tasks does the system perform during the payment run? Choose the correct answer. X

A The system posts payment documents.

X

B The system creates open items.

X

C The system modifies data for printing the payment media.

13. Which document does the system create after you post an invoice? Choose the correct answer.

274

X

A Accounting document

X

B Controlling document

X

C Material document


UNIT 6

Plan-to-Produce Processing in SAP ERP

Lesson 1 Describing the Plan-to-Produce Business Process

278

Lesson 2 Defining Organizational Levels for Plan-to-Produce Business Process

280

Lesson 3 Defining Products and Bills of Materials Exercise 22: Display a Material Master Exercise 23: Display a Bill of Material Exercise 24: Display a Multi-Level BOM Report

282 285 291 295

Lesson 4 Defining Production Processes Exercise 25: Add Components to a Routing Operation Exercise 26: Display a Work Center

298 301 307

Lesson 5 Integrating Management Accounting and Production Planning Exercise 27: Display a Cost Center Exercise 28: Display an Activity Type Exercise 29: Display an Activity Type Price

311 319 321 323

Lesson 6 Planning Product Costs Exercise 30: Create a Product Cost Estimate

326 333

Lesson 7 Planning Product Demand Exercise 31: Create a Sales and Operations Plan Exercise 32: Transfer a Sales and Operations Plan to Demand Management

338 341 349

Lesson 8 Defining the Material Requirements Planning (MRP) Process


353

275

Unit 6: Plan-to-Produce Processing in SAP ERP

Lesson 9 Processing Material Requirements Planning (MRP) Exercise 33: Run MRP

355 361

Lesson 10 Describing the Manufacturing Business Process

366

Lesson 11 Planning Production Exercise 34: Convert a Planned Order to a Production Order Exercise 35: Release a Production Order

369 371 375

Lesson 12 Staging Material Exercise 36: Withdraw Material for an Order

379 381

Lesson 13 Recording Manufacturing Activities Exercise 37: Enter the Production Order Confirmation and Goods Receipt Exercise 38: Process a List of Completed Production Orders

384 389 393

Lesson 14 Utilizing Transfer Postings and Stock Transfers Exercise 39: Enter a Transfer Posting from Quality Inspection to Unrestricted-Use Stock Exercise 40: Process a Stock Transport Order

396 399 403

Lesson 15 Performing Period-End Activities for Production Orders Exercise 41: Calculate Manufacturing Variances Exercise 42: Perform an Order Settlement

408 411 413

Lesson 16 Reviewing the Plan-to-Produce Integration Points

416

UNIT OBJECTIVES

276

●

Describe the plan-to-produce business process

●

Identify the organizational levels that support the plan-to-produce business process


●

Display a material master

●

Display a bill of material

●

Display a routing

●

Display a work center

●

Explain cost center accounting master data

●

Create a product cost estimate

●

Create a sales and operations plan

●

Transfer a sales and operations plan to demand management

●

Explain the Material Requirements Planning Process (MRP)

●

Process MRP

●

Describe the steps involved in processing production orders

●

Perform the steps to plan production

●

Explain the purpose of releasing a production order

●

Perform a material withdrawal for a production order

●

Perform an order confirmation and enter a goods receipt

●

Enter a transfer posting

●

Create a stock transfer order

●

Perform period-end activities for production orders

●

List the integration points of the plan-to-produce business process


277

Unit 6 Lesson 1 258

Describing the Plan-to-Produce Business Process

LESSON OVERVIEW This lesson provides an overview of the steps for the plan-to-produce business process. Business Example Your company wants to implement the plan-to-produce business process. For this reason, you require the following knowledge: ●

An understanding of the plan-to-produce business process



Plan-to-Produce Business Process Overview

Figure 118: Plan-to-Produce Business Process

Steps in the plan-to-produce business process are as follows: 1. Perform planning 2. Determine requirements 3. Plan production 4. Produce material

278


Lesson: Describing the Plan-to-Produce Business Process

5. Perform periodic processing




279

Unit 6 Lesson 2 260

Defining Organizational Levels for Plan-toProduce Business Process

LESSON OVERVIEW This lesson explains the organizational levels necessary to support the plan-to-produce business process. Inform participants about the organizational levels required for the plan-to-produce business process.

Business Example Your company wants you to design the manufacturing planning and execution process. For this reason, you require the following knowledge: ●

An understanding of the organizational levels used in the plan-to-produce business process



Organizational Levels for Plan to Produce

Figure 119: Organizational Levels in Material Planning

280


Lesson: Defining Organizational Levels for Plan-to-Produce Business Process

Organizational levels, or units, are structures that represent the legal and organizational views of an enterprise. You can design your company structure on the basis of your business processes. The manufacturing planning and execution process uses the following organizational levels: ● Client The client comprises all manufacturing organizational elements. ●

Company Code The company code represents an independent accounting unit. Legally-required documents such as balance sheets and profit and loss statements are created at the company-code level.

●

Plant The plant is an organizational level within a company. A plant produces goods, renders services, or makes goods available for distribution. A plant can be a manufacturing facility or a warehouse distribution center.

●

Storage location The storage location is an organizational level within a plant. A storage location identifies the general area in the plant where material is stored. Plants can have multiple storage locations.




281

Unit 6 Lesson 3 262

Defining Products and Bills of Materials

LESSON OVERVIEW This lesson provides an understanding of the master data necessary to support the plan to produce business process. Inform students about the master data relevant for the plan to produce business process.

Business Example You need to understand the master data used in the plan to produce business process. For this reason, you require the following knowledge: ●

An understanding of the master data used by the plan to produce business process



●


Material Master

Figure 120: Material Master Record – Data Views

The material master data is subdivided into views. The basic-data view displays data defined at the client level, and all other views are defined at plant level. A material master contains global data and location-specific data. Global data is valid across all locations. An example of global data is data that is the same for a material in all production

282


Lesson: Defining Products and Bills of Materials

plants. Location-specific data contains settings for the relevant location, such as a specific production plant. General data, such as the measurements and weight of a material, is set globally, whereas settings for planning are predefined locally. This data may differ depending on the location. The material master is the data object that contains all information necessary for the business use of a material. This information includes settings for procurement, production, storage, and sales. However, not all settings in the material master are relevant for material planning, but are more applicable to the functions of evaluation and sales management. Settings for Supply Chain Planning


The most important settings for material planning are contained in material requirements planning (MRP) views 1 to 4 of the material master. The MRP type specifies how a material should be planned for processing (MRP, consumptionbased planning, no planning). The lot-sizing procedure determines the lot size of the respective procurement proposals. You can use the procurement type to determine whether a material is to be produced inhouse or procured externally. In-house production times and planned-delivery times specify the time taken for procurement. A level of safety stock can be set. The strategy group controls how the independent requirements behave, while control of the Available-to-Promise (ATP) check takes place on the basis of the availability check group. You can use material prod version in MRP4 to define a manufacturing process and, more specifically, to select a task list and bill of material (BOM). Point out the material master fields listed on the slide and answer the questions. These are typical questions that need to be answered when defining material master records for material planning.


283


Show participants how to display a material master record by using the data and steps from the exercise Display a Material Master.

284



Display a Material Master

Business Example Pumps with material number R-F1## are produced in plant 1000. You want to view the material master record to familiarize yourself with the master data used in the the plan to produce business process. For this reason, you must know how to display a material master record.

Note: ## is your group number. To become more familiar with master data used in the plan to produce business process, you need to understand the structure and data of a material master record. 1. Display the material master R-F1##, for one of the pumps that your organization sells. Display the Basic Data 1, MRP 1, MRP 2, and Work Scheduling views defined for plant 1000. 2. Look at the Basic Data 1 view. What is the exact name of the material?

3. To which material type does the material belong? Choose

(information on material).

4. Exit the dialog box and proceed to the MRP 1 view. 5. Is the material planned using consumption-based planning or MRP?

6. Proceed to the MRP 2 view. 7. Will the material be produced in-house or procured externally?

8. Proceed to the Work Scheduling view to determine the in-house production time.


285


9. What is the in-house production time for this material?

10. Exit the material master.

286



Display a Material Master

Business Example Pumps with material number R-F1## are produced in plant 1000. You want to view the material master record to familiarize yourself with the master data used in the the plan to produce business process. For this reason, you must know how to display a material master record.

Note: ## is your group number. To become more familiar with master data used in the plan to produce business process, you need to understand the structure and data of a material master record. 1. Display the material master R-F1##, for one of the pumps that your organization sells. Display the Basic Data 1, MRP 1, MRP 2, and Work Scheduling views defined for plant 1000. a) On the SAP Easy Access screen, choose Logistics → Production → Master Data → Material Master → Material → Display → Display Current (MM03). b) On Display Material (Initial Screen), enter R-F1## in the Material field, and choose the Select View(s) pushbutton. Choose the following views: ●

Basic Data 1

●

MRP 1

●

MRP 2

●

Work Scheduling

c) Choose the Org. Levels pushbutton. d) In the Organizational Levels dialog box, enter 1000 in the Plant field, and choose (Continue). 2. Look at the Basic Data 1 view. What is the exact name of the material? Pump 3. To which material type does the material belong? Choose

(information on material).

The material belongs to FERT (Finished good). 4. Exit the dialog box and proceed to the MRP 1 view.


287


a) Choose b)

Choose

(Cancel) to close the dialog box. (Enter) to go to the next selected view, which is the MRP 1 view.

5. Is the material planned using consumption-based planning or MRP? The value PD in the MRP Type field indicates that MRP must be used for planning the material 6. Proceed to the MRP 2 view. a)

Choose

(Enter).

7. Will the material be produced in-house or procured externally? The material is produced in-house (procurement type E). 8. Proceed to the Work Scheduling view to determine the in-house production time. a)

Choose

(Enter).

9. What is the in-house production time for this material? A setup time of 0.09 days, a queue time of 4.08 days, and a processing time of 19.94 days per 100 pieces has been entered. 10. Exit the material master. a) Choose

288

(Exit) to return to the SAP Easy Access screen.



Bills of Material

Figure 122: Bills of Material

Explain that a BOM is the formal organization of a material. A BOM contains the components or assemblies that you need to produce the material. Begin to introduce to the participants that all BOMs are created as single level.

The BOM contains the assemblies, or components, that are to be included in the production of a material. BOMs are used in MRP, production, procurement, and for product costing. A BOM consists of a BOM header and BOM items. The base quantity in the BOM header specifies to which amount of the finished product the item quantities refer. BOMs are single-level. An item of a BOM can contain components. In this way, multi-level production is described using the single-level BOMs of the finished product, the assemblies, and, where required, using the BOMs of the assemblies of the assemblies. In addition to stock items required for the finished product, a BOM can contain documents and text items.


289


Bills of Material Structure

Figure 123: Bills of Material Structure

Discuss the structure of a BOM. Use this slide as a lead-in to the demonstration of a BOM.

The settings in the BOM header apply to the entire BOM. BOM usage determines the business applications for which a BOM can be used. The status of the BOM controls whether the BOM is active for particular applications (for example, MRP). Multiple BOMs, which consist of multiple alternative BOMs, can exist in addition to simple BOMs. The various alternative BOMs can then be valid for each of the lot-size areas. The components necessary for the production of the finished product are entered as items of the BOM. The item category specifies the kind of item you are using. The various types of item categories are as follows: ● Stock item The stock items are executed in the warehouse and used in production. ●

Non-stock item The system directly assigns non-stock items to a manufacturing order (not through the warehouse).

●

Variable-size item Variable-size items contain variable-size data (for example, the surface area of a steel sheet).

●

Document item Document items contain a supplementary document that describes production using a design and construction diagram. Show participants how to display a BOM and a multi-level BOM report by using the data and the steps from the exercises Display a Bill of Material and Display a Multi-Level BOM Report.

290



Display a Bill of Material

Business Example Pumps with material number R-F1## are produced in plant 1000. You want to view the BOM to familiarize yourself with the master data used in the plan to produce business process. For this reason, you must know how to display a BOM.

Note: ## is your group number. To determine which assemblies and components are required to produce the R-F1## pump, display the BOM. 1. Display the BOM for material R-F1##. When you call the transaction, enter the material, the Plant 1000, and BOM usage 1. 2. Which components are required for production of the pump?

3. Which components are composed of other components (look at the Assembly indicator ASM)?

4. You can go to the BOM for the assembly by double-clicking on the assembly indicator in the BOM item. Choose Continue. List the components of R-B1## assembly.

5. Exit the BOM.


291


Display a Bill of Material

Business Example Pumps with material number R-F1## are produced in plant 1000. You want to view the BOM to familiarize yourself with the master data used in the plan to produce business process. For this reason, you must know how to display a BOM.

Note: ## is your group number. To determine which assemblies and components are required to produce the R-F1## pump, display the BOM. 1. Display the BOM for material R-F1##. When you call the transaction, enter the material, the Plant 1000, and BOM usage 1. a) On the SAP Easy Access screen, choose Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Display (CS03). b) On the Display material BOM: Initial screen, enter the following data:

c)

Field

Value

Material

R-F1##

Plant

1000

BOM Usage

1

Choose

(Enter).

2. Which components are required for production of the pump? The materials R-B1##, R-B2##, R-B3##, andR-B4##, and the Assembly drawing for pump document are required for production of the pump. 3. Which components are composed of other components (look at the Assembly indicator ASM)? The components R-B1##, R-B2##, R-B3##, and R-B4## are assemblies, and are composed of other components.

292



4. You can go to the BOM for the assembly by double-clicking on the assembly indicator in the BOM item. Choose Continue. List the components of R-B1## assembly. The materials R-T1##, R-T2##, and R-T3## are components of R-B1## assembly. 5. Exit the BOM. a) Choose



293


294



Display a Multi-Level BOM Report

Business Example Pumps with material number R-F1## are produced in plant 1000. You want to view the multilevel BOM to familiarize yourself with the master data used in the plan to produce business process.

Note: ## is your group number. 1. Process a multi-level BOM explosion report for Pump R-F1## in Plant 1000. 2. How many single-level BOMs are in this structure?

3. Exit the report.


295


Display a Multi-Level BOM Report

Business Example Pumps with material number R-F1## are produced in plant 1000. You want to view the multilevel BOM to familiarize yourself with the master data used in the plan to produce business process.

Note: ## is your group number. 1. Process a multi-level BOM explosion report for Pump R-F1## in Plant 1000. a) On the SAP Easy Access screen, choose Logistics → Production → Master Data → Bills of Material → Reporting → BOM Explosion → Material BOM → Multilevel BOM (CS12). b) On the Explode BOM: Multi-Level BOM: Initial screen, enter the following data: Field

Value

Material

R-F1##

Plant

1000

BOM Application

PI01

c) Choose

Execute.

2. How many single-level BOMs are in this structure? Four 3. Exit the report. a) Choose

296






●



297

Unit 6 Lesson 4 278

Defining Production Processes

LESSON OVERVIEW This lesson explains how to display routings and work centers. Business Example You need to understand routings and work centers for the production of materials. For this reason, you require the following knowledge: ●

An understanding of routings and work centers

●

How to add components to a routing operation

●

How to display a work center


Display a routing

●


Routings

Figure 124: Routings

298


Lesson: Defining Production Processes

Explain that a material can have multiple routings based upon lot size and production equipment. Each operation on a routing is assigned to a work center. Standard values and times are assigned to each operation of a routing. Routings contain the steps that are necessary for production. Routings include the relevant operations, sequence in which the routings occur, and work centers at which the operations are to be executed. A routing can be defined using the routing group and group counter. Moreover, the routing contains reference to the material whose production it describes, and, in addition to the standard sequence, can contain parallel or alternative sequences. Alongside the standard values, the routing also contains the time elements that are relevant for scheduling operations. Each operation in the routing may contain its own base quantity, to which these time elements may refer. Routing and Bill of Material

Figure 125: Routing and Bill of Material

A routing and bill of material (BOM) describe production. In this case, you can assign the BOM components to a specific operation. Procurement of the BOM components is then planned at the beginning of the particular operation. The component assignment is performed in the routing. BOM components that are not explicitly assigned are regarded as being assigned to the first operation. Along with the BOM components, you can also assign production resources and tools in the routing. Production resources and tools, such as a measuring instrument or support, are operating facilities that are not location-bound, but are necessary for production. Show participants how to add components to a routing operation by using the data and steps from the exercise Add Components to a Routing Operation.


299


300



Add Components to a Routing Operation

Business Example You need to view the operations within a routing. Because components are required to be assembled at a specific operation during the manufacturing process, you need to assign that component to that operation. Display routing and assign a material component to an operation within the routing. Task 1 Your organization needs to use routings in the manufacturing process. Review the operations of a routing and then assign a BOM component to an operation. 1. Change the routing for material R-F1##, plant 1000. 2. Identify the work centers at which the following operations are executed (note the description of each operation): Operation No.

Work Center

Description

0010 0020 0030 0040 0050 0060 0070

Task 2 Add BOM component R-B1## to the second operation of the routing. 1. Choose the second operation and assign material R-B1## to it.


301


Add Components to a Routing Operation

Business Example You need to view the operations within a routing. Because components are required to be assembled at a specific operation during the manufacturing process, you need to assign that component to that operation. Display routing and assign a material component to an operation within the routing. Task 1 Your organization needs to use routings in the manufacturing process. Review the operations of a routing and then assign a BOM component to an operation. 1. Change the routing for material R-F1##, plant 1000. a) On the SAP Easy Access screen, choose Logistics → Production → Master Data → Routings → Routings → Standard Routings → Change (CA02). b) On the Change Routing: Initial, screen enter the following data:

c)

Field

Value

Material

R-F1##

Plant

1000

Choose

(Enter).

2. Identify the work centers at which the following operations are executed (note the description of each operation): Operation No.

Work Center

Description

0010

R-M##

Material staging

0020

R-V##

Press flywheel in casing

0030

R-L##

Paint casing

0040

R-E##

Insert hollow shaft in casing

0050

R-E##

Install control electronics

0060

R-F##

Final assembly of pump

0070

R-P##

Deliver to stock

Task 2 Add BOM component R-B1## to the second operation of the routing.

302



1. Choose the second operation and assign material R-B1## to it. a) On the Change Routing: Operation Overview screen, choose the row with 0020 in the Op field under the Operation Overv. area. b) Choose the CompAlloc pushbutton. c) On the Routing Change: Material Component Overview screen, choose the row with RB1## in the Component field. d) Choose the New Assignment pushbutton. e) In the New Assignment dialog box, enter 20 in the Oper./Act field. f) Choose g)

(Continue). Notice that operation 20 is displayed in the Oper.Act field.

Save your entries


(Save).

303


Work Centers

Figure 126: Work Centers

Machines, machine groups, production lines, and employees are examples of work centers. Together with BOM and routings, work centers belong to the most important master data in production planning. Data in work centers is used for scheduling, costing, capacity planning, and simplifying operation maintenance. In a plant, operations, or activities, are carried out at a work center. Therefore, a work center specifies where production ultimately takes place. Work centers can be used in routings, networks, inspection plans (Quality Management), and in maintenance routings. A work center is a specific geographical location in the plant. For example, a work center may refer to a specific machine or department in a plant. Work Center Data The data of the work center is assigned according to thematic views. The work center stores the available capacity of that particular work center and the data needed to calculate the costing of work completed. The default values define the data that has to be transferred into the operation of the routing or used as a reference. By entering a standard value key, a resource is assigned standard values for operations in routings, rate routings, master recipes, and production or process orders to be executed at this resource. A standard value is a planned value used to carry out an operation, such as execution time. Standard values are used in costing, scheduling, and capacity requirements planning to calculate costs, execution times, and capacity requirements. You can enter default values for the operation to be executed at a resource. When you maintain the operations in the routing, rate routing, master recipe, and production or process order, the system copies and refers this information.

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By assigning a cost center to a resource, you link the resource to cost accounting, and can then carry out product and order costing. You can define the specific output of a resource by assigning activity types assigned to this cost center to the resource. Available capacities of resources are the basis for scheduling process orders, and are required for capacity-requirements planning and shop floor control. To calculate the execution of an operation during process-order scheduling, the available capacity of exactly one of several possible resource capacities is defined as the basis for scheduling. To calculate costs, execution times, and capacity requirements of phases carried out at a resource, you need to enter a suitable formula key on the corresponding screens.


305


306



Display a Work Center

Business Example Each operation in a routing is assigned to a work center. The work center controls scheduling, costing, and processing of the operation. For this reason, you must know how to display a work center. Task 1 You want to understand the functionality of a work center. 1. Display the basic data view of work center R-M## in plant 1000. 2. Review the information on the Basic Data tab page. What is the work center category?

3. Determine the capacity category assigned to this work center. 4. As a labor capacity is assigned to this work center, determine the number of individual capacities assigned. 5. Determine the cost center assigned to this work center.

6. Exit the work center.


307


Display a Work Center

Business Example Each operation in a routing is assigned to a work center. The work center controls scheduling, costing, and processing of the operation. For this reason, you must know how to display a work center. Task 1 You want to understand the functionality of a work center. 1. Display the basic data view of work center R-M## in plant 1000. a) On the SAP Easy Access screen, choose Logistics → Production → Master Data → Work Centers → Work Center → Display (CR03). b) On the Display Work Center: Initial screen, enter the following data:

c)

Field

Value

Plant

1000

Work center

R-M##

Choose

(Enter).

2. Review the information on the Basic Data tab page. What is the work center category? On the Display Work Center: Basic Data screen, on the Basic Data tab page, 0003 labor appears in the Work Center Category field. 3. Determine the capacity category assigned to this work center. a) Choose the Capacities tab page. Notice that 002 Labor appears in the Capacity Category field. Note: More than one capacity category can be assigned to a work center. 4. As a labor capacity is assigned to this work center, determine the number of individual capacities assigned. a) Choose the Capacity Category field. Notice that 2 displays in the Number of Individual Capacity field. b)

308

Choose

(Back).



5. Determine the cost center assigned to this work center. Choose the Costing tab page 4230 (assembly pumps) is displayed. 6. Exit the work center. a) Choose


(Exit).

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310

●

Display a routing

●



Unit 6 Lesson 5 291

Integrating Management Accounting and Production Planning

LESSON OVERVIEW This lesson explains the integration between Management Accounting and Production Planning (PP). Business Example As a project team member, you must understand how Management Accounting integrates with PP. To do this, you must first understand Cost Center Accounting master data.For this reason, you require the following knowledge: ●

An understanding of the integration between Management Accounting and PP

●

An understanding of Cost Center Accounting master data



Cost Center Master Data

Figure 127: General Ledger (G/L) Accounts and Cost Elements


311


Explain the difference between primary and secondary cost elements. Make sure students understand that secondary cost elements exist only in Controlling (CO) and not in the Financial Accounting (FI) chart of accounts. Primary cost elements have to exist in the FI chart of accounts before you create them as primary cost elements in CO. Explain that primary cost elements create the link to FI. Secondary cost elements are with the various allocation techniques in CO. The cost element category determines the cost element’s function once it is created. The chart of accounts is created in Financial Accounting (FI). You can group all expense accounts in one class (class 4) and all revenue accounts in class (class 8). Expense accounts to which the system posts the costs for cost accounting purposes must be created using cost element transaction as cost elements in Management Accounting. This ensures that all postings to this type of expense account always arrive in Controlling (CO) at the same time. Secondary cost elements are defined only in CO and are used for internal CO allocations (such as assessments or settlements). Secondary cost elements do not have any corresponding general ledger (G/L) accounts in FI. Standard Hierarchy of Cost Centers in a CO Area

Figure 128: Standard Hierarchy of Cost Centers in a CO Area

Explain that cost centers require a formal structure called a hierarchy. The standard hierarchy is a tree structure that represents all cost centers belonging to a CO area from a CO perspective. It comprises all cost centers for a given period. Therefore, the hierarchy represents the whole enterprise. You can combine cost centers into cost center groups. You can then create cost center hierarchies from these groups by combining the groups according to the decision-making area, area of responsibility, or management area. The figure shows the standard hierarchy for the cost centers used in Internet Demonstration and Evaluation System (IDES).

312


Lesson: Integrating Management Accounting and Production Planning

The cost center is an Organizational Level in a CO area that represents a delimited location where costs occur. You can make organizational divisions based on functional, settlementrelated, activity-related, spatial, and/or responsibility-related standpoints. You can use cost centers for differentiated assignment of overhead costs to organizational activities based on utilization of the relevant areas (cost determination function), and for differentiated controlling of costs arising in an organization (cost controlling function). The CO-OM-CCA component tracks where costs occur in your organization. Organizational Level Cost centers can be defined according to several design approaches, such as functional requirements, allocation criteria, activities, and services provided geographic location and/or area of responsibility. The approach should be consistent throughout the enterprise. As a typical approach, an enterprise can define a cost center for each low-level Organizational Level that has responsibility for managing costs. As costs are incurred, they are assigned or posted to the appropriate cost center. These costs can include payroll costs, rent and utility costs, or any other costs relevant to a cost center. The posting and assignment of costs to cost centers makes managerial accounting possible, which is a vital step for utilizing other CO components. Cost Center Data

Figure 129: Cost Center Data

The Basic Data section contains basic information of a cost center, such as the cost center’s name and description, the name of the center manager, the department to which you can assign the cost center, and the profit center. The Cost Center Hierarchy field displays the standard hierarchy node to which the cost center is assigned. This field must be filled so it can be used as a control feature in CO-OM-CCA. Each CO area must have a unique standard hierarchy that includes every cost center created in that CO area. The Profit Center field identifies the purpose of the cost center, such as production, service, sales, and administration. The Company Code and Business Area fields represent the close ties between Management Accounting and FI. If a CO area has more than one company code, you must specify the company code that the user links to each cost center. If a business area is used for that


313


company code (as defined in FI), the user must specify the business area in the cost center master record. Activity Types

Figure 130: Activity Types

Activity types are the productive output of cost centers, which are usually measured in a time or unit increment. Provide some examples, such as labor hours, machine time (measured in terms of output quantity), and engineering hours. Explain that activity types are used to allocate costs only from cost centers. These costs can flow to other cost objects such as internal orders, production orders, and Activity-Based Costing (ABC) processes. The activity type classifies the activities performed within a company by one or several cost centers. If a cost center provides activities for other cost centers, orders, and processes, this means that the resources of the cost center are used. The costs of these resources need to be allocated to the receivers of the activity. Activity types serve as tracing factors for this cost allocation. In an internal activity allocation, the quantity of the activity, such as the number of consulting hours, is entered either manually or automatically into the SAP ERP system. The system calculates the associated cost based on the activity price, and generates a debit to the receiver and a credit to the sender for quantity and costs. The system allocates internal activity that uses secondary cost elements that are stored in the master data of the activity types as default values. You can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the activity type master record. You can enter up to eight allowed cost center categories, or leave the assignments unrestricted by entering an asterisk (*).

314



Cost Center and Activity Type

Figure 131: Cost Center and Activity Type

To use an activity type to allocate costs, you must assign it to the cost center responsible for providing the activity. You can assign activity types in cost center planning by defining a planned activity output price for the cost center. The system can calculate prices using either plan costs or actual costs. To enable internal activity allocations, you need to specify activity types of a cost center and their respective prices. You specify this in the SAP ERP system by planning the activity output or prices for a cost center. To enable this, the SAP system provides a wide range of options. For direct activity allocation, enter the quantity of the activity that you need to allocate. For a cost allocation and an activity allocation to occur for the activity, the SAP ERP system has to valuate the allocated activity amount by using the sender’s price for the activity type. For a direct activity allocation, the system uses the plan price for the combination cost center and activity type for this calculation. You can enter the planned price manually or have it calculated by the system within planning. If your price calculation is not complex, you can use this procedure. Examples of scenarios where you can use this procedure include: 1. Where prices required for your rates are determined within your organization and do not depend on internally produced activities 2. Where the rate depends on the prices of external suppliers and not on the costs of the cost center Show participants how to display a cost center, activity type, and activity type price by using the data and steps from the exercise.


315


Work Centers and Cost Center Master Data

Figure 132: Work Centers and Cost Center Master Data

The figure explains the integration-point between the work center master record and the cost center or activity type, and how integration results in incurred cost calculation. Within work center for production, under the costing tab page, the relevant cost center for the work center and associated activity type is maintained. This helps in executing the cost when the work center is used.

How to Display the Standard Hierarchy Display the standard hierarchy that represents the cost centers. 1. On the SAP Easy Access screen, choose Accounting → Controlling → Cost Center Accounting → Master Data → Standard Hierarchy → Change (OKEON). 2. In the Set Controlling Area dialog box, enter 1000 in the Controlling Area field. 3. Choose Continue. 4. The Standard Hierarchy data is displayed.

To Display the Standard Hierarchy You need to perform the following tasks to display the standard hierarchy: 1. On the SAP Easy Access screen, choose Accounting → Controlling → Cost Center Accounting → Master Data → Standard Hierarchy → Change (OKEON). 2. In the Set Controlling Area dialog box, enter 1000 in the Controlling Area field. 3. Choose Continue.

316



4. The Standard Hierarchy data is displayed.


317


318



Display a Cost Center

Business Example In the previous exercise, you viewed a work center. Management Accounting and PP have several integration points. One of those integration points is between a production work center and a cost center. You need to understand the data maintained in a cost center. Therefore, you will display a cost center to review the master record. 1. Display the data of cost center 4230.


319


Display a Cost Center

Business Example In the previous exercise, you viewed a work center. Management Accounting and PP have several integration points. One of those integration points is between a production work center and a cost center. You need to understand the data maintained in a cost center. Therefore, you will display a cost center to review the master record. 1. Display the data of cost center 4230. a) On the SAP Easy Access screen, choose Accounting → Controlling → Cost Center Accounting → Master Data → Cost Center → Individual Processing → Display (KS03). b) On the Display Cost Center: Initial screen, enter 4230 in the Cost Center field. c)

Choose

(Enter).

d) The Basic Data tab page displays the following data:

320

Field Name or Data Type

Value

Name

Pump Assembly

Description

Pump Assembly

Cost Center Category

1

Hierarchy area

Hl420

Company code

1000

Business Area

1000

Functional Area

0100

Currency Area

EUR

Profit Center

1010



Display an Activity Type

Business Example When a cost center is assigned to a work center, the activity type(s) assigned to that cost center are also assigned to the work center. To continue your understanding of Cost Center Accounting master data, you need to display an activity type. 1. Display activity type 1420.


321


Display an Activity Type

Business Example When a cost center is assigned to a work center, the activity type(s) assigned to that cost center are also assigned to the work center. To continue your understanding of Cost Center Accounting master data, you need to display an activity type. 1. Display activity type 1420. a) On the SAP Easy Access screen, choose Accounting → Controlling → Cost Center Accounting → Master Data → Activity Type → Individual Processing → Display (KL03). b) In the Set Controlling Area dialog box, enter 1000. Note: This step only needs to be performed if a dialog box appears. c) On the Display Activity Type: Initial screen, enter 1420 in the Activity Type field. d)

Choose

(Enter).

e) The Basic Data tab page displays the following data:

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Field Name or Data Type

Value

Name

Machine Hours

Description

Machine Hours

Activity unit

H

CCtr categories

*

ATyp category

1

Allocation cost elem

620000



Display an Activity Type Price

Business Example To cost each of the individual operations of a routing, a standard rate is calculated for each manufacturing activity performed during the operation. The rate is calculated for each cost center activity type combination. You would like to learn how to display this rate. 1. Display the standard activity rate calculated for cost center 4230 and activity type 1420.


323


Display an Activity Type Price

Business Example To cost each of the individual operations of a routing, a standard rate is calculated for each manufacturing activity performed during the operation. The rate is calculated for each cost center activity type combination. You would like to learn how to display this rate. 1. Display the standard activity rate calculated for cost center 4230 and activity type 1420. a) On the SAP Easy Access screen, choose Accounting → Controlling → Cost Center Accounting → Planning → Activity Output/Prices → Display (KP27). b) On the Display Activity Type/Price Planning: Initial screen, enter the following data: Field Name or Data Type

Value

Version

0

From Period

1

To Period

12

Fiscal Year

Current Year

Cost Center

4230

Activity Type

1420

c) Choose the Overview Screen pushbutton. The Display Activity Type/Price Planning: Overview screen is displayed. d) Record the activity type price. e) Choose

324







325

Unit 6 Lesson 6 304

Planning Product Costs

LESSON OVERVIEW This lesson explains the main components of Product Cost Accounting (CO-PC). Business Example As part of your job responsibilities, you need to create cost estimates for products manufactured and sold by your organization. For this reason, you require the following knowledge: ●

An understanding of the components of CO-PC

●

An understanding of product cost planning

●

An understanding of how to update the standard cost estimate on a material master



Components of CO-PC

Figure 133: Product Cost Accounting – CO-PC

CO-PC consists of all aspects of planning the cost of production or services, as well as tracking and analyzing the actual costs. CO-PC consists of the following components: Product Cost Planning (PCP)

●

Estimates the costs to produce goods or services ●

326

Cost Object Controlling (COC)


Lesson: Planning Product Costs

Collects costs incurred (by using cost objects, such as production orders) during the production of a product or a service ●

Actual costing and Material Ledger (ML) Provides the actual cost of each material at the end of the period

CO-PC – An Overview

Figure 134: CO-PC – An Overview

PCP estimates the costs of produced goods and services. If a quantity structure (bill of material (BOM) and routing) is available in Manufacturing Planning, the system can automatically create a cost estimate based on this data. If no quantity structure is available in the SAP system, you can either enter the cost of items manually with the unit costing tool or transfer them automatically from a non-SAP system by using batch input. In COC, the costs incurred during the production of a product or service are collected on cost objects, such as production orders. Several types of cost objects are available, depending on your requirements. These cost objects include sales orders, production orders, process orders, and production cost collectors. COC focuses on simultaneous costing and period-end closing. Actual production costs are cumulated alongside raw material consumption when completing the work. This information allows you to compare planned and actual costs for any phase of the production process. Period-end closing calculates the value of goods in production (work in process) and variances between the cost estimate and the actual costs, and settles them to other components such as profitability analysis and Financial Accounting (FI). Actual costing with the material ledger provides actual costs for each material at the end of the period. Materials and their movements are valuated with a standard price during the period. You can collect any variances with respect to this standard in the material ledger when you receive invoices or settle orders. During period-end closing, these variances are used to calculate an actual price for the material in the closed period.


327


Product Cost Planning (PCP) – An Overview

Figure 135: PCP – An Overview

When you create a cost estimate with a quantity structure, you must enter the costing variant, material, plant, and lot size. The dates proposed from the costing variant specify the following details: ● The period of validity of the cost estimate (costing date from or to) ●

The selection date for the BOM and routing (quantity structure dates)

●

The pricing data for the material components and activities (valuation date)

Itemizations, Cost Element Itemizations, and Cost Component Splits The costing results can be saved and displayed as itemizations, cost-element itemizations, or cost-component splits. The itemization shows detailed information about the origin of the costs, such as the quantities and prices of the materials and internal activities used. The cost-element itemization groups the individual costing items into cost elements. The cost elements group the costs in order of appearance. Cost elements are determined in the following ways: Through account determination for materials

●

●

Through activity type master record, or through activity type planning for activities

●

Through the process master record for processes

The cost-component split groups the cost elements into cost components. When a multilevel structure is valued, the cost component split rolls up so that the original identity of the costs is retained for analysis.

328



Price Update

Figure 136: Price Update

After you carry out a cost estimate for a material, you can transfer the costing results to the material master as prices. This process is called price update. When you mark a standard cost estimate, the system writes the results of the cost estimate into the costing view of the material master record as future standard price. You can use this price to valuate a material component in the cost estimate. When you release the standard cost estimate, the system transfers the result of the standard cost estimate into the master record of the material as the standard price. This price is then active for FI and is used for valuation of the material until the next time a standard cost estimate is released. From this period on, all transactions involving products produced in-house are valuated in the Logistics module by using the standard price (that is, the results of the standard cost estimate). For example, if a material with standard price control is delivered to stock, inventories of this material are valuated with the standard price as determined by the standard cost estimate. This provisional valuation can be corrected at a later date following the settlement of the actual costs that occurred in the period.

The standard price for the material in the material master record is updated when a standard cost estimate is marked and released. This results in the revaluation of inventory. Prerequisites for marking or releasing a standard cost estimate include: The standard cost estimate must be free of errors (status KA, valued without errors).

●

●

The marking and release of a standard cost estimate must be allowed. The company code and period in which the standard cost estimate can be marked with a set costing variant are entered in the authorization for marking. The employee responsible for setting up authorization does so once per period. If you mark a standard cost estimate, the results are updated in the material master records as the future standard price.


329


When you release the standard cost estimate, the future prices are updated as the current standard price. You can release a standard cost estimate only once per period, unless you delete the previously released standard cost estimate (by using a special program) from the database. Before you release the standard cost estimate for a product, you must check the standard cost estimate to ensure that it is correct. Specialized reports in the information system allow you to do this. Integration – Standard Price and Standard Cost Estimate

Figure 137: Integration – Standard Price and Standard Cost Estimate

Explain the different material prices that can be maintained in the material master record. The price control field indicator in the material master defines which price is used to valuate the material. If you update the standard price by a standard cost estimate, you can use the standard price in COC. In Profitability Analysis (CO-PA), you can use standard cost estimates (or other material cost estimates) to compare the revenues of the billed quantity with the cost component split of the product.

Price control plays a crucial role in material valuation. When the price control indicator field is set to S, the inventory is valuated at the standard price. In addition, goods movement is valuated directly in the system using a price selected in accordance with the price control indicator. If the standard price was updated by a standard cost estimate, it can be used in COC. The system can use the itemization of standard cost estimates to determine the target costs for manufacturing orders. You can analyze the difference between the target cost and actual cost at the level of variance categories, such as quantity and price variances. The saved itemization provides the basis for variance calculation. In profitability analysis, you can use standard cost estimates (or other material cost estimates) to compare the revenues of the billed quantity with the cost component split of the product.

330



A standard price is also required in the material ledger to determine the actual price. Show participants how to create a standard cost estimate by using the data and steps from the exercise Create a Product Cost Estimate.


331


332



Create a Product Cost Estimate

Business Example Your company has redesigned its most popular product. As a result of the changes to the BOM, you need to update the standard price in the material master. Create a standard cost estimate using the quantity structure. Mark and release the cost estimate to the material master. Task 1: Create a Standard Cost Estimate 1. Create a standard cost estimate for material R-F1## in plant 1000 with a costing variant PPC1. Change the default for Costing Date From to today’s date. Leave the other default data for Costing Date To, Qty Structure Date, and Valuation Date as is. 2. Review the cost calculation results displayed on the Create Material Cost Estimate with Quantity Structure screen. Expand the Costing Structure panel. Choose the pump line and expand the subtree to display all the material components in the product hierarchy. 3. Review the cost of the pump. 4. Save the cost estimate, including the itemization and log. Task 2: Mark and Release the Cost Estimate 1. To update the material master, mark the cost estimate. Then, drill down to the Costing 2 view of the material master from within the marking results list. 2. Release the cost estimate for material R-F1## so that it becomes the current standard price. Verify that the future cost is now the current cost in the Costing 2 view of the material master record.


333


Create a Product Cost Estimate

Business Example Your company has redesigned its most popular product. As a result of the changes to the BOM, you need to update the standard price in the material master. Create a standard cost estimate using the quantity structure. Mark and release the cost estimate to the material master. Task 1: Create a Standard Cost Estimate 1. Create a standard cost estimate for material R-F1## in plant 1000 with a costing variant PPC1. Change the default for Costing Date From to today’s date. Leave the other default data for Costing Date To, Qty Structure Date, and Valuation Date as is. a) On the SAP Easy Access screen, choose Accounting → Controlling → Product Cost Controlling → Product Cost Planning → Material Costing → Cost Estimate with Quantity Structure → Create (CK11N). b) On the Create Material Cost Estimate with Quantity Structure screen, enter R-F1## in the Material field and 1000 in the Plant field. c) On the Costing Data tab page, enter the following data:

d)

Field

Value

Material

R-F1##

Plant

1000

Costing Variant

PPC1

Costing Version

1

Costing Lot Size

1

Choose

(Enter).

e) On the Dates tab page, change the date in the Costing Date From field to today’s date. Leave all the other fields unchanged f)

Choose

(Enter).

2. Review the cost calculation results displayed on the Create Material Cost Estimate with Quantity Structure screen. Expand the Costing Structure panel. Choose the pump line and expand the subtree to display all the material components in the product hierarchy. a) Expand the panel on the left side of the screen. Select the pump and choose the Expand subtree pushbutton to display all the material components in the product hierarchy.

334



3. Review the cost of the pump. a) Choose the Costs tab page. Select the dropdown in the Cost Based on field and select the value User Entry. This will display the cost for the pump based upon a quantity of one piece. Record the value listed in the Cost of Goods Manufactured. 4. Save the cost estimate, including the itemization and log. a)

Save your entries.

b) In the Update Parameters dialog box, select the Itemization and Log checkboxes. c)

Choose

d) Choose

(Continue). (Exit) to go back to the SAP Easy Access screen.

Task 2: Mark and Release the Cost Estimate 1. To update the material master, mark the cost estimate. Then, drill down to the Costing 2 view of the material master from within the marking results list. a) On the SAP Easy Access screen, choose Accounting → Controlling → Product Cost Controlling → Product Cost Planning → Material Costing → Price Update (CK24). b) On the Price Update: Mark Standard Price screen, enter the following data: Field

Value

Posting Period

Current period

Fiscal Year

Current year

Company Code

1000

Plant

1000

Material

R-F1##

c) Deselect the Test Run checkbox. d)

Choose

Execute and confirm the Information box.

e) On the Price Update screen, a log is displayed. Choose

(Back).

f) On the Price Update: Mark Standard Price screen, material number R-F1## is displayed. g) Click on the material number to drill down to the material master. h) On the Display Material R-F1## (Finished Product) screen, select the Costing 2 tab page. i) On the Standard Cost Estimate screen area, note the value of the Planned price in the Future column. j) Choose (Back) to go back to the Price Update: Mark Standard Price screen. Do not exit the transaction.


335


2. Release the cost estimate for material R-F1## so that it becomes the current standard price. Verify that the future cost is now the current cost in the Costing 2 view of the material master record. a) On the Price Update: Mark Standard Price screen, choose the Release pushbutton. b) Deselect the Test Run checkbox. c)

Choose

Execute and confirm the Information box.

d) On the Price Update screen, a log is displayed. Choose

(Back).

e) On the Price Update: Release Standard Price screen, material number R-F1## is displayed. f) Choose the material number to drill down to the material master. g) On the Display Material R-F1## (Finished Product) screen, choose the Costing 2 tab page. h) On the Standard Cost Estimate screen area, note the value of the Standard price in the Current colunn. i) Choose

336

(Exit) three times.






337

Unit 6 Lesson 7 314

Planning Product Demand

LESSON OVERVIEW This lesson shows you how to use sales and operations planning (S&OP) to create a demand plan. Business Example In your organization, the sales teams creates a sales forecast based upon projected market demand and market intelligence. As a Material Planner, you will use that sales forecast to help determine the manufacturing plan. For this reason, you require the following knowledge: ●

How to create a sales and operations plan

●

How to transfer a sales and operations plan to demand management



●


Demand Planning in SAP ERP Application

Figure 138: Flexible Planning and Standard SOP

The purpose of demand planning is to forecast demand. It acts as the starting point of the entire production planning process. In the context of demand planning, you can create production plans and transfer them to operative planning as planned independent requirements. Flexible planning and standard SOP are the core element of demand planning in SAP ERP.

338


Lesson: Planning Product Demand

You must use the relevant information structures and planning types to create settings for flexible planning. Standard SOP, on the other hand, is designed as a standard process that comes preconfigured with the system. Standard SOP is based on information structure S076, which uses level-by-level planning where the planning hierarchy levels are independent of each other. This means that plans at different levels need not be consistent. Standard SOP is a simplified variant of flexible planning, in which a specific planning process is already defined. Therefore, the use of this function does not require detailed knowledge of the settings of the Logistics Information System (LIS), on which standard SOP is based. Planning Levels in Standard SOP

Figure 139: Planning Levels in Standard SOP

You can execute planning in SOP for product groups and materials. Planning at higher product group levels can be disaggregated to the members of the product group. Product groups are created in SOP. You can define product groups by specifying their members and the associated proportional factors that determine how the planning data is divided among the members. The proportional factors can be defined manually or are automatically calculated based on historical consumption values. Proportional factors range from 0–100%. The sum of all the proportional factors of a planning level is 100%. Product groups can contain materials and other product groups. However, the lowest product group in the hierarchy must consist of materials. For each product group, the system creates a material master with material type PROD. Cross-plant planning is possible. Explain that in SOP, you can plan at the product-group level. A product group contains products with similar planning characteristics. You can create a hierarchy of product groups. When you plan at product-group level, you enter a proportion factor. This factor is used to disaggregate the sales and operations plan through all the levels in a product group.


339


Planning Using the Standard Planning Table

Figure 140: Planning Using the Standard Planning Table

The demand and production plans are developed in the planning table in SOP. A planning table exists for all members of a production group hierarchy. You can execute planning in parallel in multiple independent versions. In this case, planning in active version A00 always occurs in change mode. However, the planning in inactive versions must be created before it can be changed during a subsequent revision. The standard planning table for SOP consists of separate lines for the demand plan, production plan, warehouse stock level (determined by the system), target stock level, day’s supply (determined by the system), and the target day’s supply. You can create demand plans by transferring data from the Sales Information System (SIS), Controlling (CO), or profitability analysis (CO-PA); by using the sales history to forecast sales targets; by transferring data from another product group; or by creating entries manually. You can create production plans synchronous to sales according to the target stock level and the target day’s supply. You can manually create and correct the plans at any stage. The distribution function provides a simple method of entering data for the various key figures and periods. Show participants how to create a sales and operations plan by using the data and steps from the exercise Create a Sales and Operations Plan.

340



Create a Sales and Operations Plan

Business Example Marketing has supplied you with its updated six-month sales forecast for the redesigned pump. You will create a sales and operation plan for that pump. Task and Step List Create a sales and operations plan at material level for material R-F1## in plant 1000. As you are working in active version A00, access the Change Planning For Material transaction from the SOP menu. 1. Enter a sales plan for material R-F1## at plant 1000 for active version A00 starting two months from today. Period

Sales (Qty)

Current month +2

100 PC

Current month +3

110 PC

Current month +4

110 PC

Current month +5

120 PC

Current month +6

140 PC

Current month +7

150 PC

2. What is the stock level displayed for the last date of the planning figures you entered?

3. What does the stock level row indicate?

4. As the sales forecast for the Current month +4 and Current month +5 fields are uncertain, you want to cover this with a static safety stock of 20 PC. 5. Now, generate a production plan to see the total production required to support the sales plan. Create the production plan in accordance with the target stock level. 6. Note the following production figures:


341


Period

Production (Qty)

Current month +2 Current month +3 Current month +4 Current month +5 Current month +6 Current month +7 7. What is the stock level resulting from this production plan? Why?

8. Save your sales and operation plan.

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Create a Sales and Operations Plan

Business Example Marketing has supplied you with its updated six-month sales forecast for the redesigned pump. You will create a sales and operation plan for that pump. Task and Step List Create a sales and operations plan at material level for material R-F1## in plant 1000. As you are working in active version A00, access the Change Planning For Material transaction from the SOP menu. 1. Enter a sales plan for material R-F1## at plant 1000 for active version A00 starting two months from today. Period

Sales (Qty)

Current month +2

100 PC

Current month +3

110 PC

Current month +4

110 PC

Current month +5

120 PC

Current month +6

140 PC

Current month +7

150 PC

a) On the SAP Easy Access screen, choose Logistics → Production → SOP → Planning → For Material → Change (MC88). b) On the Change Plan: Initial screen, enter the following data: Field

Value

Material

R-F1##

Plant

1000

c) Choose the Active version pushbutton. d) On the Change Rough-Cut Plan screen, enter the following in the Sales row: Period

Sales (Qty)

Current month +2

100 PC

Current month +3

110 PC

Current month +4

110 PC


343


e)

Period

Sales (Qty)

Current month +5

120 PC

Current month +6

140 PC

Current month +7

150 PC

Choose

(Enter).

2. What is the stock level displayed for the last date of the planning figures you entered? A stock level of -730 PC is displayed. 3. What does the stock level row indicate? In the planning table, the stock level is an evaluation for comparison with the expected sales and production. The stock level only consists of the total sales figures because no production figures exist at this point. 4. As the sales forecast for the Current month +4 and Current month +5 fields are uncertain, you want to cover this with a static safety stock of 20 PC. a) On the Change Rough-Cut Plan screen, enter the following in the Target stock level row: Period

Target Stock Level

Current month +4

20 PC

Current month +5

20 PC

5. Now, generate a production plan to see the total production required to support the sales plan. Create the production plan in accordance with the target stock level. a) Choose Edit → Create productn plan → Target stock level. 6. Note the following production figures: Period

Production (Qty)

Current month +2

100 PC

Current month +3

110 PC

Current month +4

130 PC

Current month +5

120 PC

Current month +6

120 PC

Current month +7

150 PC

7. What is the stock level resulting from this production plan? Why? The product plan matches the target stock level. Planning was executed by using the value you defined. 8. Save your sales and operation plan.

344



a)

Choose


(Save).

345


Disaggregation to Demand Management

Figure 141: Disaggregation and Transfer to Demand Management

The creation of a demand or production plan at one level in the product hierarchy does not automatically create plans at lower levels. Therefore, you must carry out a disaggregation into the product group members. You have various options to perform disaggregation. For example, you can disaggregate the production plan of a product group into individual materials. The transfer of the planning figures to demand management is also known as disaggregation. You can also combine demand planning data and operative planning data. Therefore, product group data can be transferred directly as planned independent requirements at material and plant level. This procedure does not generate any disaggregated planning data at material level. You can transfer either the demand data or the production data to demand management. In addition, you can define the target version and the characteristics of the planned independent requirements. The plan sent to demand management is used in planning the material requirements. Show participants how to transfer an SOP to demand management by using the data and steps from the exercise Transfer an SOP to Demand Management.

346



Demand Management

Figure 142: The Demand Planning Cycle

Explain that demand management pertains to the administration of independent requirements. Depending on the planning strategy, the consumption of planned independent requirements by sales order takes place in demand management. The output of demand management is the demand program, which is used by material requirements planning (MRP). The system does not recognize the sales and operation plan, until it is transferred to demand management.

You can use the past sales order quantities as a basis for forecasting requirements. You can manage this historical data in an information structure in the LIS. You can use special extraction structures to transfer data from the operational ERP central component (ECC) system to the information structure. In addition, you can include market intelligence or one-off events, such as trade fairs, in the forecast. The system releases the demand plan (or any other key figure) as a result of the forecast as a planned independent requirement. Planned independent requirements provide the basis for procurement and production planning. You may consume planned independent requirements by the current sales orders.


347


Demand Program in Material Planning

Figure 143: Demand Program in Material Planning

Planned independent requirements are stock requirements derived from a forecast of the future requirement situation. In make-to-stock production, you procure the affected materials without waiting for specific sales orders. Sales orders (customer-independent requirements) are entered from Sales and Distribution. Customer requirements can go directly into requirements planning. This is particularly desirable if you want to plan for specific customers. You can include the stock transfer requirements, that is, requirements from other locations in the supply chain (such as distribution centers) in the demand program along with the independent requirements that you enter in the production plant. The forecast defines which requirements types are planned and which planning demands are settled with customer demands. A number of options are available for material planning. The various effects of planned independent requirements are controlled by strategy. If you use make-to-stock production strategies, production usually takes place without sales orders for respective materials. If you receive sales orders, you can fulfil them from the stock at the warehouse and ensure shorter delivery times. With make-to-stock production, it is also possible to implement a steady production process, independent of the current demand.

348



Transfer a Sales and Operations Plan to Demand Management

Business Example The sales and operations plan has been approved by management. You now need to transfer the plan to demand management. Transfer a sales and operations plan to demand management. To use the results of the sales and operations plan, you must disaggregate the production plan to Demand Management in the form of planned independent requirements. 1. Transfer the sales and operations plan for material R-F1## at plant 1000 using version A00 (active version). Use requirements type VSF. Choose the Transfer Now pushbutton. 2. Create another session and examine the results of the transfer by using the stock requirements list for material R-F1## and plant 1000. 3. Are there planned independent requirements listed in the Stock/Requirements List?

4. Exit the Stock/Requirements List.


349


Transfer a Sales and Operations Plan to Demand Management

Business Example The sales and operations plan has been approved by management. You now need to transfer the plan to demand management. Transfer a sales and operations plan to demand management. To use the results of the sales and operations plan, you must disaggregate the production plan to Demand Management in the form of planned independent requirements. 1. Transfer the sales and operations plan for material R-F1## at plant 1000 using version A00 (active version). Use requirements type VSF. Choose the Transfer Now pushbutton. a) On the SAP Easy Access screen, choose Logistics → Production → SOP → Disaggregation → Transfer Material to Demand Management (MC74). b) On the Transfer Planning Data to Demand Management screen, enter the following data: Field

Value

Material

R-F1##

Plant

1000

Version

A00

c) Select the Production plan for material or PG members radio button. d) Enter VSF in the Requirements type field. e) Choose the Transfer now pushbutton. f) Enter through any system messages. Note: The system does not issue a message that indicates successful transfer of the plan. You need to verify the results of the transfer in the next step. g)

Exit the transaction and go back to the SAP Easy Access screen.

2. Create another session and examine the results of the transfer by using the stock requirements list for material R-F1## and plant 1000.

350



a) On the SAP Easy Access screen, choose Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04). b) On the Stock/Requirements List: Initial screen, enter the following data:

c)

Field

Value

Material

R-F1##

Plant

1000

Choose

(Enter).

3. Are there planned independent requirements listed in the Stock/Requirements List? Yes. The disaggregation was successful. 4. Exit the Stock/Requirements List. a) Choose


(Exit).

351



352

●


●



Unit 6 Lesson 8 329

Defining the Material Requirements Planning (MRP) Process

LESSON OVERVIEW This lesson introduces the material requirements planning (MRP) process. Business Example You are responsible for monitoring stocks. You must ensure material availability so that material is procured or produced as per the requirement quantities. For this reason, you require the following knowledge: ●

An understanding of how to perform the MRP process



MRP Concepts MRP can be executed as total planning for all materials or as single-item planning. The objective of single-item planning is to plan each material independently. Single-item, multilevel planning takes place across all bill of material (BOM) levels of this material, whereas in single-item, single-level planning, only the header material is planned. Therefore, in multilevel planning, dependent requirements are also planned. The secondary requirements that result from the planning of a finished product’s BOM components are set using the secondary requirements that result from the explosion of the material’s BOM. The materials (assemblies) are required to realize planned orders, and the secondary requirements depend on these planned orders. If a planned order is converted into a production order, the dependent requirements are transferred to order reservations.


353


Net Requirements Calculation

Figure 144: Net Requirements Calculation

MRP executes a net requirements calculation to determine whether a material shortage exists. It compares demand to supply. This slide defines the MRP elements used in the calculation. In MRP, a net requirements calculation is executed in the planning run to determine whether a material shortage exists for a certain material. In addition, stock and fixed receipts that currently exist (for example, purchase orders, production orders, fixed purchase requisitions, and planned orders) are compared with the safety stock and requirements. The result of this comparison is the quantity available for planning. If the quantity available for planning is lower than zero, a material shortage exists. MRP reacts to material shortages by creating new procurement proposals (purchase requisitions and planned orders), independently of their procurement type. The suggested procurement quantity results from the lot-sizing procedure that is set in the material master. LESSON SUMMARY You should now be able to: ●

354



Unit 6 Lesson 9 331

Processing Material Requirements Planning (MRP)

LESSON OVERVIEW This lesson shows how to process material requirements planning (MRP). Business Example To carry out an MRP process, you need to familiarize yourself with the MRP control parameters, scope of the MRP planning run, and functions of the stock requirements list and the MRP list. For this reason, you require following knowledge: ●

An understanding of the MRP process


Process MRP

MRP Process

Figure 145: Running Material Requirements Planning

You can execute the planning run at the following levels: Total planning for a plant

●

You can execute a total planning run for several plants and MRP areas. Total planning for a plant encompasses all MRP-relevant materials for this plant, and includes the BOM explosion for materials with BOMs. ●

Planning for an individual material


355


You can execute a single-item planning run for a specific material (single-level) or for all BOM levels (multilevel). Interactive planning of a material is also possible. From the MRP menu, you can execute total planning online or as a background job. To execute the total planning run as a background job, select a report variant to restrict it to the relevant plant and schedule the job. You can use a user exit to restrict the total planning run to materials that fulfil certain freely-definable criteria. For example, you can select all materials for which a particular MRP controller is responsible. MRP Control Parameters

Figure 146: MRP Control Parameters

The following control parameters for MRP are required when you start a planning run: ● Processing Key You can define the planning type as regenerative planning or net change planning within the total horizon or within the planning horizon only. ●

Create Purchase Requisition and Scheduling Agreement Schedule Lines You can determine whether or in which period purchase requisitions and schedule lines are required as a result of the planning run. These indicators are only relevant for externally procured materials.

●

Create MRP List You determine whether the planning run is to create MRP lists. It is possible to have the system create MRP lists only when certain exception messages are issued. You define the exception messages that are to trigger the generation of an MRP list in the Define and Group Exception Messages activity in Customizing.

●

Planning mode You determine whether the existing planning data is adjusted and the BOMs and task lists re-exploded or whether planning is started again from scratch.

356


Lesson: Processing Material Requirements Planning (MRP)

You can set the creation checkbox in the MRP group for purchase requisitions, scheduling agreement, schedule lines, and MRP lists. The materials assigned to this MRP group are then planned accordingly in the total planning run. Scope of Planning Run

Figure 147: Scope of Planning Run

With regenerative planning, the system plans all materials in a plant. This is useful for the first planning run and during day-to-day plant operations when data consistency cannot be guaranteed due to technical errors. Due to certain circumstances, such as goods issues, new sales orders, and changes to the BOM structure, it is recommended (particularly with a large number of materials) to execute MRP for only those materials to which MRP-relevant changes have been made. Because of its short runtime, net change planning, which is used to plan only these materials, allows you to execute the planning run at short intervals, yielding the most current planning result. With net change planning in the planning horizon, the system only takes into account changes that are within the planning horizon, and only plans materials to which MRP-relevant changes have been made within the planning horizon. In addition, the materials are only planned within this horizon. You can set the planning horizon as a plant or MRP group parameter in MRP Customizing. The planning horizon must at least include the time period in which sales orders are received, the delivery times, and total lead times for the material. You specify the type of planning to be used in the Processing Key field on the initial screen. With single-item planning, you can decide between net change planning (NETCH) and net change planning in the planning horizon (NETPL). With total planning, in addition to NETCH and NETPL, you can select the NEUPL key to determine that all materials in the planning file are to be planned.


357


Stock/Requirements List and MRP List

Figure 148: Stock/Requirements List and MRP List

The current stock/requirements list is a dynamic list that shows the current levels of stock, requirements, and receipts. Changes are visible immediately when the current stock/ requirements list is called, or when the elements in the list display are read from the database using the Refresh function. The MRP list displays the result of the last planning run and is, therefore, static. Changes made after the planning run do not display. You can determine whether an MRP list is to be created during the planning run. The current stock/requirements and MRP list have the same basic structure. Additional similarities between the current stock/requirements and MRP list are as follows: ● The worklist of the MRP controller is in the form of a tree, on the left (optional). ●

●

358

The header with the material number is above the list. More information displays above the header details. The list contains the individual MRP elements and the corresponding available quantities.



Functions of the Current Stock/Requirements List

Figure 149: Functions of the Current Stock/Requirements List

You can define the display of the current stock/requirements list in your personal settings. The current stock/requirements list offers several display options, including the ability to display various dates (for example, the availability and goods receipt date) and use display filters and selection rules. Period Totals is a display function in the MRP and current stock/requirements list evaluations that groups planning results into periodic buckets (for example, weekly and monthly buckets). In the Define Period Display for Period Totals activity in Customizing, you define the periods to be shown in the Period Totals display. The periods you select are shown on various tab pages in the Period Totals display. You can analyze the capacity situation from the current stock/requirements list. The system displays the available capacity, total capacity requirements, and capacity requirements of the current material for each work center and capacity category. Overload situations are highlighted in color. Note that planned orders do not generate capacity requirement when detailed scheduling is absent. Show participants how to run MRP by using the data and steps from the exercise Run an MRP.


359


360



Run MRP

Business Example After you transfer the planned independent requirements to demand management, you need to run the MRP to create the manufacturing plan. Run MRP and display the MRP list and the stock/requirements list for a component. Task 1 Run MRP. To cover the planned independent requirements that you transferred, you need to process MRP. 1. Execute a single-item, multilevel planning run for material R-F1## at plant 1000. Use the default settings. The statistics are displayed when planning is completed. Note: A warning message will appear, reminding you to check your settings. Choose Enter to confirm the settings.

Task 2 Display the MRP List. Displaying the MRP list is one way to view the results of an MRP run. The MRP list is updated only after MRP is run. Display the MRP list for material R-F1## at plant 1000. Examine the results. 1. Display the MRP list for material R-F1## at plant 1000. Examine the results. 2. Are all the planned independent requirements covered by planned orders?

3. Exit the MRP list.

Task 3 Display the Stock/Requirements List for a Component of the Pump. You want to identify how MRP planned a component of the pump. Use the stock/ requirements list to view the results.


361


1. Material R-B1## is a component of R-F1##. Review the MRP results for material R-B1## at plant 1000 using the stock/requirements list. 2. Which MRP elements are created for material R-B1##?

362



Run MRP

Business Example After you transfer the planned independent requirements to demand management, you need to run the MRP to create the manufacturing plan. Run MRP and display the MRP list and the stock/requirements list for a component. Task 1 Run MRP. To cover the planned independent requirements that you transferred, you need to process MRP. 1. Execute a single-item, multilevel planning run for material R-F1## at plant 1000. Use the default settings. The statistics are displayed when planning is completed. Note: A warning message will appear, reminding you to check your settings. Choose Enter to confirm the settings. a) On the SAP Easy Access screen, choose Logistics → Production → MRP → Planning → Multilevel Single-Item Planning (MD02). b) On the Single-Item, Multi-Level screen, choose Enter twice. When MRP is completed, a results screen appears. c) Exit by choosing the

(Exit) icon.

Task 2 Display the MRP List. Displaying the MRP list is one way to view the results of an MRP run. The MRP list is updated only after MRP is run. Display the MRP list for material R-F1## at plant 1000. Examine the results. 1. Display the MRP list for material R-F1## at plant 1000. Examine the results. a) On the SAP Easy Access screen, choose Logistics → Production → MRP → Evaluations → MRP List (MD05). b) On the MRP List: Initial screen, enter the following data:


363


c)

Field

Value

Material

R-F1##

Plant

1000

Choose

(Enter).

2. Are all the planned independent requirements covered by planned orders? Yes. MRP has created planned orders to cover the demand. 3. Exit the MRP list. a) Exit the function by choosing

(Exit) twice.

Task 3 Display the Stock/Requirements List for a Component of the Pump. You want to identify how MRP planned a component of the pump. Use the stock/ requirements list to view the results. 1. Material R-B1## is a component of R-F1##. Review the MRP results for material R-B1## at plant 1000 using the stock/requirements list. a) On the SAP Easy Access screen, choose Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04). b) On Stock/Requirements List: Initial screen, enter the following data:

c)

Field

Value

Material

R-B1##

Plant

1000

Choose

(Enter).

2. Which MRP elements are created for material R-B1##? MRP created dependent requirements.

364




Process MRP


365


Describing the Manufacturing Business Process

LESSON OVERVIEW This lesson introduces the important elements and functions of a production order and explains how a production order is processed. This lesson discusses all the production order processing steps. This unit is an integration class; therefore, this lesson also covers Controlling (CO) integration. Business Example To work in an SAP system, you need to know the important steps for order-related production. These steps can be integrated with other areas in your company, such as controlling and warehouse management. For this reason, you require the following knowledge: ●

●

An understanding of the basic steps used in producing a product with production orders An understanding of how to create a production order, process inventory transactions, and report production confirmations

●

An understanding of the order settlement process

●

An understanding of integration points of business process

●

An understanding of how to review production performance using information systems and cost management reports


366



Lesson: Describing the Manufacturing Business Process

Order Processing – An overview

Figure 150: Production Order Process

The production order goes through many individual activities. Many of these activities can run automatically or in the background so that manual processing of orders is minimized. A number of settings available in Customizing allow you to successfully perform each step in order processing. (1) These functions can be automated via Customizing. (2) These functions can be executed via background processing. WIP determination, variance calculation, and settlement are generally periodic work for Cost Object Controlling ("COC"), and are usually processed in the background. You can use the quality management (QM) tools during the production process and for the goods receipt. Various interfaces for process integration are available for downloading orders and uploading process messages.


367


Elements of a Production Order

Figure 151: Elements of a Production Order

A production order in SAP ERP has the mapped order structure. A standard sequence of operations may have other (parallel or alternative) operation sequences. You can select from several alternative sequences. The standard sequence must have at least one operation. If routing is already assigned to that FERT material, the system creates an operation automatically. You can choose whether to assign material components, production resources, or tools and trigger points to the operation. Sub-operations are permitted within an operation. You can link documents of the document management system (DMS), such as drawings, text files, and images to the production order (as of release 4.6). Costs are determined at operation level and are managed at order header level. A settlement rule is created for the orders. LESSON SUMMARY You should now be able to: ●

368




Planning Production

LESSON OVERVIEW This lesson shows how to create and release production orders. Business Example MRP generated planned orders to cover planned product demand and/or actual product demand. You must now have the shop floor begin producing the material. For this reason, you require the following knowledge: ●

An understanding of how to plan production

●

An understanding of how to release a production order



●


Planned Order to Production Order

Figure 152: Planned Orders and Production Orders

Planned orders are used to plan in-house production of a material. Planned orders contain the basic dates within which production is to take place, as well as basic requirements for the components for production in the form of dependent requirements. Capacity can be planned based on planned orders.


369


For final production execution, the planned order is converted into a manufacturing order Examples of manufacturing orders include production orders(PPs) and process orders(PPPIs). Show the participants how to convert a planned order to a production order by using the data and steps from the exercise.

370



Convert a Planned Order to a Production Order

Business Example Based upon the plan created by material requirements planning (MRP), you need to convert a planned order into a production order and understand the order structure. The shop floor needs to start producing the pumps. To do so, they need a production order. Convert a planned order to a production order. 1. Within the stock/requirements list, convert the planned order with a quantity of 90 to a production order for material R-F1## at plant 1000. 2. Save your order and record the production order number. 3. Refresh the stock/requirements list. 4. What change occurred on the stock/requirements list for material R-F1##?

5. View the stock /requirements list for one of the components of material R-F1## to determine the effect of the planned order conversion. Hint: The components for R-F1## are R-B1##, R-B2##, R-B3##, and R-B4##.

6. For the component, is there a difference between the MRP elements?

7. Exit the stock/requirements list.


371


Convert a Planned Order to a Production Order

Business Example Based upon the plan created by material requirements planning (MRP), you need to convert a planned order into a production order and understand the order structure. The shop floor needs to start producing the pumps. To do so, they need a production order. Convert a planned order to a production order. 1. Within the stock/requirements list, convert the planned order with a quantity of 90 to a production order for material R-F1## at plant 1000. a) On the SAP Easy Access screen, choose Logistics → Production → Shop Floor Control → Control → Stock/Requirements List (MD04). b) On the Stock/Requirements List: Initial screen, enter the following data:

c)

Field

Value

Material

R-F1##

Plant

1000

Choose

(Enter).

d) Double-click the order number with a quantity of 90 to call the planned order details. Note: You can also choose details.

(Details of Element) to call the planned order

e) In the Additional Data for MRP Element dialog box, choose the ->PartConvProdOrder pushbutton. 2. Save your order and record the production order number. a)

Save your order. The production number displays.

3. Refresh the stock/requirements list. a) Choose

(Refresh).

4. What change occurred on the stock/requirements list for material R-F1##? The planned order has been replaced by the production order.

372


Lesson: Planning Production

5. View the stock /requirements list for one of the components of material R-F1## to determine the effect of the planned order conversion. Hint: The components for R-F1## are R-B1##, R-B2##, R-B3##, and R-B4##.

a) Enter one of the components listed above in the Material field. b)

Choose

(Enter).

6. For the component, is there a difference between the MRP elements? Yes, the dependent requirement of 90 created by MRP is now a reservation. 7. Exit the stock/requirements list. a) Choose


(Exit).

373


Release of a Production Order

Figure 153: Order Release Functions

Order release is the basis for further processing of the production order (for example, printing order documents and withdrawing materials). The system manages the production orders by using statuses. The corresponding status is set when the order is released. An availability check can be performed automatically. It is possible to release single operations, entire orders, and multiple orders simultaneously. Show the participants how to release a production order by using the data and steps from the exercise Release a Production Order.

374



Release a Production Order

Business Example Before any actual data can be posted to a production order and to enable the output of any shop floor papers, the production order must be released. Review and release a production order. 1. Review the details of the production order for material R-F1## and then release it . 2. What is the status of your order? Look at the top left corner of your order. Choose (Status).

3. Return to the order information. 4. Display the settlement rule of the order. 5. To what receiver is the order being settled?

6. Display the operation overview. 7. What is the status of operation 0010?

8. Display the material components overview. 9. Display the costs. 10. Release and save your production order.


375


Release a Production Order

Business Example Before any actual data can be posted to a production order and to enable the output of any shop floor papers, the production order must be released. Review and release a production order. 1. Review the details of the production order for material R-F1## and then release it . a) On the SAP Easy Access screen, choose Logistics → Production → Shop Floor Control → Order → Change (CO02). b) On the Production Order Change: Initial screen, enter the production order from the "Convert a Planned Order to a Production Order" exercise. c)

Choose

(Enter).

2. What is the status of your order? Look at the top left corner of your order. Choose (Status). Your order must have the statuses PRC (Pre-Costed), CRTD (Created), MANC (Material Availability Not Checked), SETC (Settlement Ruled Created). 3. Return to the order information. a)

Go back to the Order Header by choosing

(Back).

4. Display the settlement rule of the order. a) To call the settlement rule, choose Header → Settlement Rule. 5. To what receiver is the order being settled? The order is being settled against material (MAT) R-F1## at 100%. Full settlement is required for order type PP01. a)


(Back).

6. Display the operation overview. a) Choose

376

(Operation Overview).


Lesson: Planning Production

Hint: To display operation overview, you can also choose Goto → Overviews → Operations. 7. What is the status of operation 0010? Each operation currently has the status of CRTD (Created). 8. Display the material components overview. a) Choose

(Component Overview). Hint: To display the material components overview, you can also choose Goto → Overviews → Components from the menu bar.

9. Display the costs. a) From the menu bar or header of the production order, choose Goto → Costs → Analysis. b)


(Back).

10. Release and save your production order. a) Choose b)

(Release).

Save your order.


377



378

●


●




Staging Material

LESSON OVERVIEW This lesson describes how to perform a material withdrawal for a production order. Business Example Since the production order is released, production can begin manufacturing the product. To do this they must first stage the components and enter a goods issue transaction against the production order. For this reason, you require the following knowledge: ●

How to perform a material withdrawal for a production order



Material Withdrawal

Figure 154: Production Order – Goods Issue Posting

GI posting for the required components is another milestone in the production order process. The following functions are performed when a GI for the components of the production order is posted: ● Storage-location-specific update of the stock and consumption fields ●

Reduction of the reservation (for planned withdrawal)


379


●

Update of costs for unplanned withdrawals

●

Determination of actual costs (valuation) and order update

●

Consumption update In Customizing, you use a plant-specific or company-code-specific valuation variant to define the valuation of material consumption.

●

●

Generation of material and accounting documents (accounting and Controlling (CO) documents) Creation of material document The material document describes the goods movement from the materials management (warehouse) point of view. You can branch from the display of a material document to the display of other documents.

●

Creation of accounting document The accounting document describes the goods movement from the financial accounting point of view. An accounting document always refers to a company code. There may be no accounting documents, one accounting document, or several accounting documents for a goods movement.

●

Creation of controlling document The controlling document represents the actual costs posted to the production order.

●

Printing of GI document You can print a GI document.

The GI posting is controlled through a movement type (261), to which each posting refers. This can take place manually or automatically. Use the exercise as demo.

380



Withdraw Material for an Order

Business Example To produce the pumps, you need to issue the components. Issue a component against a production order. Your production order has been released. You can issue the components to the shop floor. 1. Issue components to the production order by entering a GI inventory transaction. Production used an additional piece of R-B1##. Therefore, you need to over-issue the first component, R-B1##, by one piece. Note: ## is your group number.


381


Withdraw Material for an Order

Business Example To produce the pumps, you need to issue the components. Issue a component against a production order. Your production order has been released. You can issue the components to the shop floor. 1. Issue components to the production order by entering a GI inventory transaction. Production used an additional piece of R-B1##. Therefore, you need to over-issue the first component, R-B1##, by one piece. Note: ## is your group number. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement (MIGO). b) In the Transaction field, select Goods Issue from the dropdown list. c) Tab to the next field and select Order from the dropdown list. d) Tab to the next field and enter your production order number. e) Choose

(Execute).

f) On the bottom left of the screen, choose section collapses.

(Close Detail data) so the detail data

g) Change the quantity of the first component, R-B1##, Casing to 91. h) Select the OK checkbox for all components. i) Choose

382

(Post).


Lesson: Staging Material




383


Recording Manufacturing Activities

LESSON OVERVIEW This lesson describes how to perform an order confirmation and enter a goods receipt (GR). Business Example You need to understand production order confirmation and its effect. For this reason, you require the following knowledge: ●

An understanding of how to perform an order confirmation



Production Order Confirmations

Figure 155: Order Confirmation – Process Chain

An order confirmation is used for the consumption of internal activities. Confirmations are an important basis for entering internal activities performed for an order, progress check, and subsequent capacity requirements planning. For this reason, exact real-time confirmations are important.

384


Lesson: Recording Manufacturing Activities

The figure shows that a confirmation causes various additional functions to be executed. Confirmations from plant data collection (PDC) systems are possible using the production planning PDC (PP-PDC) interface. Effects of an Order Confirmation

Figure 156: Effects of an Order Confirmation

After an order has been confirmed, the subsequent functions are performed. The confirmed quantity, the CNF (Finally Confirmed) status, and the actual costs are written in the production order. When an operation is confirmed, an automatic goods issue is posted on the basis of the quantity assigned to the material components (backflush). The material components must be prepared for backflush posting and provided for use at the work center. When you confirm the last operation (or confirm the operation where this posting is defined in the control key), an automatic GR is posted. Depending on the request, the GR posting for the materials produced can be attached to the order confirmation or carried out separately. Capacity reduction is carried out in proportion to the quantity or activity. If a scrap or rework quantity is confirmed, the system automatically generates a quality notification (as of ECC 6.0 EhP3). Point out that a confirmation can trigger a goods receipt. Show participants how to enter a production order confirmation and goods receipt by using the data and steps from the exercise Enter Production Order Confirmation and Goods Receipt.


385


GR Posting

Figure 157: Production Order – GR Posting

The GR posting represents the stock receipt of a product produced using a production order. The following functions are executed when a GR is posted: ● The system generates material documents, accounting documents, and controlling documents. ●

●

The material document describes the goods movement from a materials management (warehouse) perspective. The accounting document describes the goods movement from a Financial Accounting (FI) perspective.

●

The system updates the delivered quantity in the order.

●

As a result of the goods receipt, the system credits the production order.

After the GR is posted, you can do the following: ● You can use the Controlling document for various cost analysis purposes. ●

●

You can branch from the display of a material document to the display of other documents, You can print a goods receipt document.

The GR posting is controlled using a movement type (101), to which each posting refers. This can take place manually or automatically. Show participants how to enter a production order confirmation and GR by using the "Enter the Production Order Confirmation and Goods Receipt" exercise. In this demo, you will be posting the GR into Quality Inspection.

386



Show participants how to process a list of completed production orders by using the data and steps from the "Process a List of Completed Production Orders" exercise.

Quality Management (QM) Integration

Figure 158: QM in Production

By integrating the quality management (QM) component in the production process, you can monitor and document the quality of goods as they are produced. When a production or process order is released, an inspection lot is created automatically for an inspection during production. The QM component provides the following statistical and graphical procedures for statistical process control (SPC): ● Control charts ●

Histograms

●

Key figures for process capability

The quality notification allows you to document and process any problems that occur. For example, if, during an inspection, you identify that the specification limit has been exceeded, the system creates quality notifications automatically. The posting of a yield from a GR to the warehouse can be automated (control key in the operation, automatic milestone confirmation, and backflushing). In addition, when goods are received in the warehouse, stock-relevant inspection lots can be created. During quality inspections, you can split materials into batches and partial lots, and can also define inspection points. Inspection During Production Inspection lot origin 03 (discrete manufacturing) and inspection lot origin 13 (repetitive manufacturing) are not relevant to stock.


387


For an inspection during production, you can define whether a characteristic (characteristicbased inspection processing) is to be inspected once or several times (inspection processing based on inspection points) during production. Inspection operations are directly integrated in the routing, rate routing, or master recipe and the quality inspection then takes place during production. Inspection characteristics can be monitored using control charts. If the action limits are violated, the characteristic is automatically rejected and a quality notification is created that is sent to the person responsible for processing using the workflow. Complaints processing (internal problem notification) Choose SAP Menu → Logistics → Quality Management → Quality Notifications (Notification type Q3). GR from Production Order When goods are received in the warehouse, an inspection lot with origin 04 (GR from production) can be created. These inspection lots are stock relevant when they enter the warehouse. Partial Lot Assignment To divide a material into partial lots in a quality inspection, you must plan the inspection points in the routing and define partial lot assignment. Partial lots are useful, for example, if material is produced with various quality levels and the goods are then sent to customers with different quality requirements (for example, in the electronics industry where aerospace and defense require strictly controlled tolerances in comparison to those used for the hobby market)

388



Enter the Production Order Confirmation and Goods Receipt

Business Example The production of the pumps is complete and the goods are delivered to the warehouse. Therefore, you now need to report all manufacturing activities performed. When you enter the confirmation, you will also post the goods receipt of the finished product. Because the pumps need to be inspected before putaway the goods receipt will be entered into quality inspection stock. This stock type is determined automatically due to a setting in the material master. Task 1: Production Order Confirmations The operators have produced the pumps. Manufacturing activities, such as labor, packaging, and machine times need to be posted to the production order. 1. Perform a final order confirmation for your production order. Task 2: Display the Production Order Review the updates to the production order. 1. Display the production order. 2. What is the new order status?

3. What is the delivered quantity?

4. Was component R-B1## completely issued? 5. Display the actual costs allocated to the production order. 6. List the different types of actual costs that were posted to the production order.

7. Exit the report and the production order.


389


Enter the Production Order Confirmation and Goods Receipt

Business Example The production of the pumps is complete and the goods are delivered to the warehouse. Therefore, you now need to report all manufacturing activities performed. When you enter the confirmation, you will also post the goods receipt of the finished product. Because the pumps need to be inspected before putaway the goods receipt will be entered into quality inspection stock. This stock type is determined automatically due to a setting in the material master. Task 1: Production Order Confirmations The operators have produced the pumps. Manufacturing activities, such as labor, packaging, and machine times need to be posted to the production order. 1. Perform a final order confirmation for your production order. a) On the SAP Easy Access screen, choose Logistics → Production → Shop Floor Control → Confirmation → Enter → For Order (CO15). b) On the Enter Production Order Confirmation: Initial screen, enter the production order number. c) Choose Enter. d) Select the Final Confirm. radio button. e) Verify that Yield to Confirm equals 90. f) Save your entries. Note: The system displays the message at the bottom of the screen. A goods movement transaction occurs. This is the GR of the finished pump into quality inspection stock. The GR takes place because this action is specified in the routing. g) Exit the transaction and return to the SAP Easy Access screen. Task 2: Display the Production Order Review the updates to the production order. 1. Display the production order. a) On the SAP Easy Access screen, choose Logistics → Production → Shop Floor Control → Order → Display (CO03).

390



b) On the Enter Production Order Display: Initial screen, enter the production order number and choose Enter. 2. What is the new order status? DLV (delivered) 3. What is the delivered quantity? 90 Pieces 4. Was component R-B1## completely issued? a) Choose

(Component Overview). Hint: For component overview, you can also choose Goto → Overviews → Components.

b) On the Production Order Display: Component overview screen, choose component RB1##, then choose

(Component detail).

c) Note that the component was completely issued (withdrawal quantity is 91 pieces). d) Return to the order header by choosing

(Order Header).

5. Display the actual costs allocated to the production order. a) On the Production order Display: Header screen, choose Goto → Costs → Analysis. 6. List the different types of actual costs that were posted to the production order. Goods issues (GI), confirmations, miscellaneous, and goods receipt (GR). 7. Exit the report and the production order. a) Choose


(Exit).

391


392



Process a List of Completed Production Orders

Business Example You want to view a report that lists all the production orders for certain materials. Use the order information system. 1. Use the order information systems to run a report that lists all the production orders for materials R-F100 to R-F125 in plant 1000. 2. After viewing the orders, exit the report.


393


Process a List of Completed Production Orders

Business Example You want to view a report that lists all the production orders for certain materials. Use the order information system. 1. Use the order information systems to run a report that lists all the production orders for materials R-F100 to R-F125 in plant 1000. a) On the SAP Easy Access screen, choose Logistics → Production → Shop Floor Control → Information System → Order Information System (COOIS). b) On the Production Order Information System screen, enter the following data:

c)

Field

Data entry

List

Order Headers

Layout

/SCM310_001

Material From

R-F100

Material To

R-F125

Production Plant

1000

Choose

(Execute).

2. After viewing the orders, exit the report. a) Choose

394

(Exit).






395


Utilizing Transfer Postings and Stock Transfers

LESSON OVERVIEW This lesson shows how to enter stock transfers and transfer postings. Business Example As a member of the warehouse management team of your enterprise, you transfer material between storage locations within a plant, as well as between two plants. You may also reclassify the inventory by using different stock types. For this reason, you need the following knowledge: ●

An understanding of different inventory movements



●


Transfer Postings

Figure 159: Transfer Posting or Physical Stock Transfer

Unlike transfer postings, stock transfers always involve physical goods movement.

396


Lesson: Utilizing Transfer Postings and Stock Transfers

In transfer postings, the key aspect is a change in the stock ID number or stock category of a material. Transfer postings need not involve a physical goods movement; however, in stock transfers, there is always a physical movement of goods. Examples of transfer postings are as follows: Stock to stock (for example, in quality inspection to unrestricted-use)

●

●

Material to material

Examples of (physical) stock transfers are as follows: Storage location to storage location

●

●

Plant to plant

The figure shows examples of transfer postings and physical stock transfers. Note that transfer postings and physical stock transfers can take place at different organizational levels. Stock transfers can take place at the following organizational levels: Storage-location-to-storage-location transfer

●

Stock is transferred between two storage locations within a plant. ●

Plant-to-plant transfer Stock is transferred between two plants belonging to the same company code.

●

Company-code-to-company-code transfer Stock is transferred between two plants assigned to different company codes.

Transfer Postings

Figure 160: Transfer Postings

If you want to withdraw goods from a blocked or quality inspection stock for consumption, you first have to carry out a transfer posting to the unrestricted-use stock. The movement type controls between which stock types a transfer posting occurs. A physical transfer posting between two storage locations can be linked with a stock-to-stock transfer posting. Similar to all goods movements, the system also creates a material document during transfer postings to show a transaction in the system. If the transfer posting is relevant for valuation,


397


an accounting document is generated. The stock-to-stock postings are not relevant for valuation. In contrast, a material-to-material transfer posting (movement type 309) is generally linked with a stock value change. Therefore, such posting is relevant for the update in Financial Accounting (FI).

398



Enter a Transfer Posting from Quality Inspection to Unrestricted-Use Stock

Business Example The quality assurance department determined that material R-F1## (## is your group number) is now usable. Transfer the material from the quality inspection stock to unrestricted-use stock. Task 1: Enter a Transfer Posting Transfer the material from the quality inspection stock to unrestricted-use stock and record the material document number. 1. Enter a transfer posting to move 90 pieces of material R-F1## from quality inspection stock to unrestricted-use stock. The material remains in storage location 0002. Use movement type 321 and plant 1000. 2. Save the transfer posting and record the material document number. Material document number: _____________________________


399


Enter a Transfer Posting from Quality Inspection to Unrestricted-Use Stock

Business Example The quality assurance department determined that material R-F1## (## is your group number) is now usable. Transfer the material from the quality inspection stock to unrestricted-use stock. Task 1: Enter a Transfer Posting Transfer the material from the quality inspection stock to unrestricted-use stock and record the material document number. 1. Enter a transfer posting to move 90 pieces of material R-F1## from quality inspection stock to unrestricted-use stock. The material remains in storage location 0002. Use movement type 321 and plant 1000. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management → Good Movement → Goods Movement (MIGO) (MIGO). b) In the first field, select Transfer Posting from the dropdown list. c) Tab to the next field and select Other from the dropdown list. d) In the field on the far right, enter 321. e)

Choose

(Enter). Enter through the Changing Default Values dialog box.

f) On the Transfer Posting tab page, enter the following data in the From section:

g)

Field

Value

Material

R-F1##

Plnt

1000

SLoc

0002

Qty in UnE

90

Choose

(Enter).

2. Save the transfer posting and record the material document number. Material document number: _____________________________ a)

Choose

(Post).

b) Note the displayed material document number.

400



Stock Transfers

Figure 161: Cross-Plant Stock Transfer

The procedures of a cross-plant stock transfer are as follows: ● One-step procedure ●

Two-step procedure

●

Stock transport order (with or without delivery)

In a plant-to-plant stock transfer, the plants between which the material is transferred can belong to the same company code or different company codes. The cross-plant stock transfers can only be booked out of the unrestricted-use stock. In contrast to a storage-location-to-storage-location stock transfer, a plant-to-plant transfer affects FI and material requirements planning (MRP). In a stock transfer between two plants assigned to different valuation areas, the following scenarios affect FI: ● A cross-plant stock transfer leads to a value update in the stock accounts. An accounting document is generated parallel to the material document for the stock transfer. The stock transfer is valuated at the valuation price of the material in the issuing plant. ●

●

In a cross-company-code stock transfer, two accounting documents are created at the time of posting, one for each company code. The offsetting entry to the stock posting is made to a company-code clearing account.

Hint: If you enter the stock transfer in two separate steps, the valuation always takes place at the first step.


401


Stock Transport Order

Figure 162: Stock Transport Order

Material transfers can be posted using a stock transport purchase order (PO). You can use stock transport orders in Materials Management (MM) and with the Sales and Distribution (SD) functionality. Using SD, we can create the delivery and the billing documents. With stock transport orders, we can use pricing conditions like you would on a regular purchase order. You can also see the effect on the stock requirements list. It can be done with one-step or two-step procedure. With two-step procedure, we do the goods issue from the first plant, then the stock is placed in-transfer to the second plant. The second step is to receive the stock transport PO into the second plant.

A stock transfer that uses a stock transport order has certain advantages over a stock transfer without a stock transport order. The following are the advantages of a stock transfer that uses a stock transport order: ●

●

The receipt can be planned at the receiving plant.

●

The delivery costs and a forwarder or carrier can be entered in the stock transport order.

●

The goods receipt can be posted directly to consumption.

●

●

402

The stock transport order is integrated within MRP. The purchase requisitions generated by MRP can be converted into stock transport orders.

In a goods receipt into the warehouse, the material to stock in quality inspection or blocked stock can be posted. The entire process (goods issue and goods receipt) can be monitored using the PO history.



Process a Stock Transport Order

Business Example As a material planner, you order materials from internal sources, such as other plants. The materials are issued and received against a single document. Create a stock transport order. Task 1 Plant 1200 requires three pieces of material R-F1##. The material is to be transferred from plant 1000. Plant 1200 is using a stock transport order to request the goods. Plant 1000 is responsible for issuing the goods from their inventory. Plant 1200 receives the goods. 1. Create a stock transport order to transfer three pieces of material R-F1## from supplying plant 1000 to receiving plant 1200. 2. Save the stock transport order and record the stock transport order number. Stock transport order __________________________. 3. Exit the transaction.

Task 2 Post the goods issue and record the quantity of the stock in transit. 1. Send material R-F1## to plant 1200 by posting a goods issue from storage location 0002 of plant 1000. After posting the goods issue, remain in the transaction for the next exercise step. 2. Save the goods issue. Remain in the transaction for the next exercise step. 3. Record the stock in transit quantity for R-F1## at plant 1200.

Task 3 The total quantity of the material you ordered has been delivered. Enter the goods receipt with reference to the purchase order. 1. The goods have arrived at plant 1200. Post the goods receipt referencing your stock transport order at plant 1200. After posting the goods receipt, remain in the transaction for the next exercise step.


403


Process a Stock Transport Order

Business Example As a material planner, you order materials from internal sources, such as other plants. The materials are issued and received against a single document. Create a stock transport order. Task 1 Plant 1200 requires three pieces of material R-F1##. The material is to be transferred from plant 1000. Plant 1200 is using a stock transport order to request the goods. Plant 1000 is responsible for issuing the goods from their inventory. Plant 1200 receives the goods. 1. Create a stock transport order to transfer three pieces of material R-F1## from supplying plant 1000 to receiving plant 1200. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known (ME21N). b) On the Create Purchase Order screen, enter the following data: Field

Value

Order type

Stock transport ord.

Supplying Plant

1000

c) On the Org. Data tab page, enter the following data: Field

Value

Purch. Org

1000

Purch. Group

0##

Company Code

1000

d) If required, expand the Item Overview screen area of the purchase order and enter the following data:

404

Field

Value

Material

R-F1##

PO Quantity

3

Plnt

1200



Field

Value

Stor. Location

0002

2. Save the stock transport order and record the stock transport order number. Stock transport order __________________________. a)

Save your data and note the stock transport order number.

3. Exit the transaction. a) Choose

(Exit).

Task 2 Post the goods issue and record the quantity of the stock in transit. 1. Send material R-F1## to plant 1200 by posting a goods issue from storage location 0002 of plant 1000. After posting the goods issue, remain in the transaction for the next exercise step. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management ->Goods Movement → Goods Movement (MIGO). b) In the first field, select Goods Issue from the dropdown list. c) Tab to the next field and select Purchase Order from the dropdown list. d) Tab to the next field and enter your stock transport order number.

Note: Ensure that the Plant field is empty. e)

Choose

(Execute).

f) On the Where tab page, enter 0002 in the Storage Location field. If you cannot see the Where tab, choose

(Detail data) to expand the item detail screen area.

g) Verify that the Item OK checkbox is selected. 2. Save the goods issue. Remain in the transaction for the next exercise step. a) Save your data by selecting the

(Post) icon.

3. Record the stock in transit quantity for R-F1## at plant 1200. a) On the Goods Issue Purchase Order screen, select Display in the first dropdown list. Material Document will automatically appear in the next field. The material document number will appear in the third field. b)

Choose


(Execute).

405


c) On the Transfer Posting tab page, in the Destination screen area, choose Overview).

(Stock

d) On the Stock Overview: Basic List screen, in the Stock Overview screen area, position your cursor on the Plant 1200 item line. e) Choose the Detailed Display pushbutton. The Stock Overview dialog box displays. f) Note the value of Stock in transit. g) Choose

(Continue).

h) Choose

(Exit).

Task 3 The total quantity of the material you ordered has been delivered. Enter the goods receipt with reference to the purchase order. 1. The goods have arrived at plant 1200. Post the goods receipt referencing your stock transport order at plant 1200. After posting the goods receipt, remain in the transaction for the next exercise step. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement (MIGO). b) In the first field, select Goods Receipt from the dropdown list. c) Tab to the next field and select Purchase Order from the dropdown list. d) Tab to the next field and enter your stock transport order number. e)

Choose

(Execute).

f) In the Item detail screen area, confirm the following data on the Material, Quantity, and Where tab pages: Field

Value

Material

R-F1##

PO Qty

3

Plnt

1200

Stor. Location

0002

g) Verify that the Item OK checkbox is selected. h)

406

Save your data by choosing

(Post).





●



407


Performing Period-End Activities for Production Orders

LESSON OVERVIEW This lesson provides an overview of the period-end closing activities for production orders, such as variance calculation and order settlement. Business Example As a member of the project team, you must review cost variances that were incurred during the manufacturing process. You also will perform order settlement. For this reason, you need to have the following knowledge: ●

An understanding of the variance calculation process

●

An understanding of the order settlement process



Manufacturing Variance Calculation

Figure 163: Manufacturing Processing with Management Accounting

After the preliminary costing data is created and the order released, individual and direct costs are initially incurred by material withdrawals. The raw materials inventory is reduced and expenses, in the form of cost elements, flow through the respective consumption

408


Lesson: Performing Period-End Activities for Production Orders

accounts to the accounting object (production order). Similarly, external services through invoices are posted directly on the order using account assignments from Financial Accounting (FI). Confirmations constitute a further debit to the production order. A confirmation relates to one or more internal activities performed by a cost center. Because cost center costs are not fully known when a confirmation is made, a plan price is allocated. These costs are either make-to-order production costs or production overheads. As a result, the cost center is credited in production. If there is a deficit or surplus at the end of the month, these variances can be allocated through several functions. The period-end closing of the cost object provides the cause of cost fluctuations under the variance analysis. Similarly, you can calculate scrap costs that can be used for the operational production control. Work in process (WIP) enables the monthly deferral of costs that may already posted in FI as expenses, but not yet on a finished product. This WIP is calculated in Controlling (CO) and included in the cost object reports, as well as in the reports for FI where the WIP is transferred from CO to FI. The delivery or settlement of the production order affects an increase in the inventories of finished products, where by unusual internal cost fluctuations can be posted to price difference accounts in the profit and loss (P/L), depending on the detail of the price control in the material master and on the account determination.

Production Order Settlement Process

Figure 164: Cost Debit or Credit (Order-Related COC)

The manner in which a production order is credited and debited depends on the variant of cost object controlling (COC) selected in CO. You can settle orders on the basis of the order or the product. Order settlement credits the order. In most cases, a settlement is done periodically. You can use a settlement profile to control settlement parameters.


409


410



Calculate Manufacturing Variances

Business Example You have to calculate production variances that have occurred for an order. Based on the review of the costs, you want detailed information about the production variances that occurred for this order. You want to understand the reasons for the variances with respect to the target values for the debits and credits of the order by classifying the variances into variance categories. These variance categories are saved for the order as statistical information so that they are available later for evaluations and summarizations. 1. Perform a variance calculation for your production order for the current period. Execute the calculation for target cost version 0. Deselect the Test Run checkbox. Verify that the Detail Lists checkbox selected. Note: If prompted for Controlling Area, enter 1000 and choose

(Continue).

2. What is the total variance for your production order?

3. Exit the report and the production order.


411


Calculate Manufacturing Variances

Business Example You have to calculate production variances that have occurred for an order. Based on the review of the costs, you want detailed information about the production variances that occurred for this order. You want to understand the reasons for the variances with respect to the target values for the debits and credits of the order by classifying the variances into variance categories. These variance categories are saved for the order as statistical information so that they are available later for evaluations and summarizations. 1. Perform a variance calculation for your production order for the current period. Execute the calculation for target cost version 0. Deselect the Test Run checkbox. Verify that the Detail Lists checkbox selected. Note: If prompted for Controlling Area, enter 1000 and choose

(Continue).

a) On the SAP Easy Access screen, choose Logistics → Production → Shop Floor Control → Period-End Closing → Variances → Individual Processing (KKS2). b) On the Variance Calculation: Initial screen, enter the production order number. c) In the Period field, enter the following data: Field

Value

From period

Fiscal Year

d) Select the Selected Target Cost Vsns 000 radio button. e) In the Processing Options field, deselect the Test Run checkbox. Verify that the Detail Lists checkbox is selected. f)

Choose

(Execute).

g) The Variance Calculation: Initial screen displays the result. 2. What is the total variance for your production order? The total variance is listed in the Variance column. The amount varies for each participant. 3. Exit the report and the production order. a) Choose

412

(Exit).



Perform an Order Settlement

Business Example You have calculated the order variances and need to transfer them to the general ledger (G/L) account. In SAP ERP, this process is called settlement. When a production order is settled, the variance is posted either to an inventory or manufacturing variance account, depending on the price control field in the material master of the produced product. Settle a production order. 1. Settle your production order for the current period with processing type Automatic. 2. Is the amount settled the same as the total variance?

3. Exit settlement.


413


Perform an Order Settlement

Business Example You have calculated the order variances and need to transfer them to the general ledger (G/L) account. In SAP ERP, this process is called settlement. When a production order is settled, the variance is posted either to an inventory or manufacturing variance account, depending on the price control field in the material master of the produced product. Settle a production order. 1. Settle your production order for the current period with processing type Automatic. a) On the SAP Easy Access screen, choose the Logistics → Production → Shop Floor Control → Period-End Closing → Settlement → Individual Processing (KO88). b) On the Actual Settlement: Order screen, enter the following data: Field

Value

Production order number

Your production order number

Period

Current period

Fiscal Year

Current year

Processing type

Automatic

c) In the Processing Options screen area, deselect the Test Run checkbox. d)

Choose

e) Choose

(Execute). (Detail lists).

2. Is the amount settled the same as the total variance? Yes. The amount settled equals the variance of the production order. 3. Exit settlement. a) Choose

414

(Exit).


Lesson: Performing Period-End Activities for Production Orders




415


Reviewing the Plan-to-Produce Integration Points

LESSON OVERVIEW This lesson lists the integration points of the plan-to-produce business process. Business Example Your company wants to optimize the business processes. For this reason, you require the following knowledge: ●

Understand the plan-to-produce integration points



Plan-to-Produce Business Process – Integration Points

Figure 165: Plan-to-Produce Business Process – Integration Points

416


Lesson: Reviewing the Plan-to-Produce Integration Points

The figure provides an overview of the integration points from SAP application point of view. Use this as a review of the process.

The plan-to-produce business process integrates with many different SAP applications. Plan-to-Produce Business Process The plan-to-produce business process integrates the following phases: ●

Prepare a plan by using Sales & Operation Planning (SOP) You can use prior sales data as input to create a sales operation plan.

●

Transfer the sales and operations plan to demand management After you create a sales operation plan, it can be transferred to demand management. The system creates planned independent requirements as an output. You can use the stock requirements list to view the output.

●

Perform material requirements planning (MRP) MRP performs the net requirements calculation, comparing supply to demand. MRP also updates the MRP list. The supply elements are as follows: On-hand inventory

-

-

Purchase requisitions

-

Purchase orders

-

Planned orders

-

Production orders

The demand elements are as follows: Sales orders

-

-

Planned independent requisitions

-

Dependent requirements

-

Reservations

-

Safety stock

MRP can have the following output: Purchase requisitions

-

●

-

Planned orders

-

Dependent requirements

Create production order You can create a production order with or without a planned order.

●

Perform goods issue


417


After you save a goods issue, the system creates a material document, accounting document, and controlling document. The material document represents a decrease in the component inventory quantity. ●

Perform confirmation A confirmation records all the manufacturing activities, such as labor, setup, and packaging time. The confirmation represents a transfer of costs from the cost center that performed the work on the production order.


418



Unit 6

395

Learning Assessment

1. Which of the following tasks are performed in the produce material step? Choose the correct answers. X

A Stage material.

X

B Convert planned order to production order.

X

C Enter goods receipt.

X

D Release production order.

2. All manufacturing organizational elements exist within a __________. Choose the correct answer. X

A Client

X

B Storage location

X

C Plant

3. The Lot Size field in the material master record controls the quantity to be produced. Determine whether this statement is true or false. X

True

X

False

4. In the bill of material header, which field determines to which amount of the finished product the item categories refer? Choose the correct answer. X

A Usage

X

B Base quantity

X

C Item category


419


5. Which of the following activity is performed in a routing? Choose the correct answer. X

A Component assignment

X

B Capacity category definition

X

C Material withdrawal

6. What data is maintained in a work center? Choose the correct answers. X

A Capacity formulas

X

B Material components

X

C People assignments

X

D Labor rates

7. Which of the following master data is assigned to a work center? Choose the correct answer. X

A Material master

X

B Cost center

X

C Bill of material

8. Which of the following statements correctly describe the relationships between the master data used in the plan-to-produce business process? Choose the correct answers.

420

X

A Bill of material components are assigned to a routing operation.

X

B A work center is assigned to a routing operation.

X

C A material master is assigned to a work center.

X

D A bill of material is assigned to a work center.



9. What is the purpose of an activity type? Choose the correct answer. X

A To collect the costs incurred by the cost center

X

B To allocate the costs of work performed by the cost center

X

C To schedule operations assigned to the work center

X

D To settle a production order

10. Marking a standard cost estimate revaluates on-hand inventory. Determine whether this statement is true or false. X

True

X

False

11. Saving a cost estimate automatically updates the standard price in the material master. Determine whether this statement is true or false. X

True

X

False

12. In SOP, the two levels in which you can plan are material level and ________ level. Choose the correct answer. X

A Product group

X

B Customer group

X

C Material group

13. Transferring the sales and operations plan to demand management creates which of the following? Choose the correct answer. X

A Planned orders

X

B Dependent requirements

X

C Planned independent requirements


421


14. Planned independent requirements directly lead to __________ when material requirements planning (MRP) is carried out. Choose the correct answers. X

A Planned orders for in-house production

X

B Production orders for in-house production

X

C Dependent requirements for in-house production

15. Which of the following can be created by processing MRP? Choose the correct answers. X

A Purchase order

X


X

C Planned orders

X

D Planned independent requirements

16. Which of the following control parameters for material requirements planning (MRP) are required when you start the planning run? Choose the correct answers. X

A Processing Key

X

B Planning Mode

X

C Requirements Grouping

17. The MRP list represents the most up-to-date version of the planning situation. Determine whether this statement is true or false. X

True

X

False

18. Which of the following steps occur in production order processing? Choose the correct answers.

422

X

A Order release

X

B Variance calculation

X

C Material staging

X

D Invoice generation



19. Which of the following are elements of a production order? Choose the correct answers. X

A Components list

X

B Operations

X

C Cost center

X


20. For final production execution, the planned order is converted into a __________________. Choose the correct answer. X

A Manufacturing order

X

B Purchase order

X

C Sales order

21. A production order has the status Created. Which action can be performed for that order? Choose the correct answer. X

A Print shop floor papers

X

B Post a goods issue

X

C Check material availability

22. Which of the following steps are performed after releasing an order? Choose the correct answers. X

A Order creation

X

B Material withdrawal

X

C Printing the documents

23. A goods issue for a production order is posted in the system. What are the effects of the goods issue? Choose the correct answers. X

A A controlling document is created.

X

B On-hand inventory is increased

X

C Inventory reservations are decreased


423


24. A goods receipt is posted in the system. Which of the following documents are created? Choose the correct answers. X

A Material Document

X

B Transfer Posting Document

X

C Accounting Document

X

D Outbound Delivery Document

25. Which of the following are examples of transfer postings? Choose the correct answers. X

A Material-to-material

X

B Storage-location-to-storage-location

X

C Stock-to-stock

X

D Plant-to-plant

26. A physical movement of stock is a characteristic of a stock transfer posting. Determine whether this statement is true or false. X

True

X

False

27. Which of the following are period-end closing activities for production orders? Choose the correct answers. X

A Order settlement

X

B confirmations

X

C Variance calculation

X

D Goods issue

28. Variance calculation is a period-end activity. Determine whether this statement is true or false.

424

X

True

X

False



29. In material requirements planning (MRP), what kind of element is a sales order? Choose the correct answer. X

A Supply element

X

B Demand element

30. How does Controlling integrate with production? Choose the correct answers. X

A A production order collects actual costs.

X

B A cost center is assigned to a work center.

X

C Cost center overhead represents a direct cost to a production order.

X

D Standard cost estimates determine actual costs for a manufacturing order.


425

Unit 6

402


1. Which of the following tasks are performed in the produce material step? Choose the correct answers. X

A Stage material.

X

B Convert planned order to production order.

X

C Enter goods receipt.

X

D Release production order.

2. All manufacturing organizational elements exist within a __________. Choose the correct answer. X

A Client

X

B Storage location

X

C Plant

3. The Lot Size field in the material master record controls the quantity to be produced. Determine whether this statement is true or false. X

True

X

False

4. In the bill of material header, which field determines to which amount of the finished product the item categories refer? Choose the correct answer.

426

X

A Usage

X

B Base quantity

X

C Item category



5. Which of the following activity is performed in a routing? Choose the correct answer. X

A Component assignment

X

B Capacity category definition

X

C Material withdrawal

6. What data is maintained in a work center? Choose the correct answers. X

A Capacity formulas

X

B Material components

X

C People assignments

X

D Labor rates

7. Which of the following master data is assigned to a work center? Choose the correct answer. X

A Material master

X

B Cost center

X

C Bill of material

8. Which of the following statements correctly describe the relationships between the master data used in the plan-to-produce business process? Choose the correct answers. X

A Bill of material components are assigned to a routing operation.

X

B A work center is assigned to a routing operation.

X

C A material master is assigned to a work center.

X

D A bill of material is assigned to a work center.


427


9. What is the purpose of an activity type? Choose the correct answer. X

A To collect the costs incurred by the cost center

X

B To allocate the costs of work performed by the cost center

X

C To schedule operations assigned to the work center

X

D To settle a production order

10. Marking a standard cost estimate revaluates on-hand inventory. Determine whether this statement is true or false. X

True

X

False

11. Saving a cost estimate automatically updates the standard price in the material master. Determine whether this statement is true or false. X

True

X

False

12. In SOP, the two levels in which you can plan are material level and ________ level. Choose the correct answer. X

A Product group

X

B Customer group

X

C Material group

13. Transferring the sales and operations plan to demand management creates which of the following? Choose the correct answer.

428

X

A Planned orders

X


X

C Planned independent requirements



14. Planned independent requirements directly lead to __________ when material requirements planning (MRP) is carried out. Choose the correct answers. X

A Planned orders for in-house production

X

B Production orders for in-house production

X

C Dependent requirements for in-house production

15. Which of the following can be created by processing MRP? Choose the correct answers. X

A Purchase order

X


X

C Planned orders

X


16. Which of the following control parameters for material requirements planning (MRP) are required when you start the planning run? Choose the correct answers. X

A Processing Key

X

B Planning Mode

X

C Requirements Grouping

17. The MRP list represents the most up-to-date version of the planning situation. Determine whether this statement is true or false. X

True

X

False


429


18. Which of the following steps occur in production order processing? Choose the correct answers. X

A Order release

X

B Variance calculation

X

C Material staging

X

D Invoice generation

19. Which of the following are elements of a production order? Choose the correct answers. X

A Components list

X

B Operations

X

C Cost center

X


20. For final production execution, the planned order is converted into a __________________. Choose the correct answer. X

A Manufacturing order

X

B Purchase order

X

C Sales order

21. A production order has the status Created. Which action can be performed for that order? Choose the correct answer.

430

X

A Print shop floor papers

X

B Post a goods issue

X

C Check material availability



22. Which of the following steps are performed after releasing an order? Choose the correct answers. X

A Order creation

X

B Material withdrawal

X

C Printing the documents

23. A goods issue for a production order is posted in the system. What are the effects of the goods issue? Choose the correct answers. X

A A controlling document is created.

X

B On-hand inventory is increased

X

C Inventory reservations are decreased

24. A goods receipt is posted in the system. Which of the following documents are created? Choose the correct answers. X

A Material Document

X

B Transfer Posting Document

X

C Accounting Document

X

D Outbound Delivery Document

25. Which of the following are examples of transfer postings? Choose the correct answers. X

A Material-to-material

X

B Storage-location-to-storage-location

X

C Stock-to-stock

X

D Plant-to-plant


431


26. A physical movement of stock is a characteristic of a stock transfer posting. Determine whether this statement is true or false. X

True

X

False

27. Which of the following are period-end closing activities for production orders? Choose the correct answers. X

A Order settlement

X

B confirmations

X

C Variance calculation

X

D Goods issue

28. Variance calculation is a period-end activity. Determine whether this statement is true or false. X

True

X

False

29. In material requirements planning (MRP), what kind of element is a sales order? Choose the correct answer. X

A Supply element

X

B Demand element

30. How does Controlling integrate with production? Choose the correct answers.

432

X

A A production order collects actual costs.

X

B A cost center is assigned to a work center.

X

C Cost center overhead represents a direct cost to a production order.

X

D Standard cost estimates determine actual costs for a manufacturing order.


UNIT 7

Order-to-Cash Processing in SAP ERP

Lesson 1 Describing the Order-to-Cash Business Process

436

Lesson 2 Defining Organizational Levels for the Order-to-Cash Business Process

439

Lesson 3 Working with Customer-Specific Master Data in Order to Cash Exercise 43: Create a Customer Master Record

446 451

Lesson 4 Using Material Master Records Exercise 44: Change a Material Master

458 461

Lesson 5 Defining Pricing Conditions Exercise 45: Create a Customer Material Condition Record

465 467

Lesson 6 Creating Sales Orders Exercise 46: Create a Sales Order Exercise 47: Display Sales Orders

470 477 481

Lesson 7 Delivering Sales Orders Exercise 48: Create a Delivery Document Exercise 49: Create a Transfer Order Exercise 50: Post a Goods Issue

485 489 495 501

Lesson 8 Creating Invoices Exercise 51: Create a Customer Invoice Exercise 52: Process a Customer's Open Item Report Exercise 53: Process a Sales Information System Report


505 509 513 515

433

Unit 7: Order-to-Cash Processing in SAP ERP

Lesson 9 Receiving Customer Payment Exercise 54: Receive a Customer Payment Exercise 55: Process an SAP NetWeaver Business Warehouse Sales Report

519 521 525

Lesson 10 Measuring Profitability Using Profit Center Accounting Exercise 56: Process a Profit Center Report

530 537

Lesson 11 Measuring Profitability Using Profitability Analysis Exercise 57: Process a Profitability Analysis Report

540 545

Lesson 12 Reviewing Integration Points in Order to Cash

549

UNIT OBJECTIVES ●

Describe the steps in the order-to-cash business process

●

List the organizational levels required for the order-to-cash business process

●

434

Explain the relationships between the organizational levels used for the order-to-cash business process

●

Create a customer master record

●

Explain the purpose of a customer-material info record

●

Explain the material master views relevant to the order-to-cash business process

●

Explain the purpose of condition master records

●

Explain sales order processing

●

Explain availability control

●

Create a delivery document

●

Explain the picking and packing process

●

Post a goods issue

●

Create customer invoices

●

Enter a customer payment

●

Use Profit Center Accounting

●

Use Profitability Analysis


●

Discuss the integration points in order to cash


435

Unit 7 Lesson 1 412

Describing the Order-to-Cash Business Process

LESSON OVERVIEW This lesson introduces the order-to-cash business process. Discuss the role of organizational levels and master data in the order-to-cash business process. Additionally, discuss the integration points of the order-to-cash business with other application modules.

Business Example As a member of the order-to-cash team, you will participate in multiple discussions regarding this process. For this reason, you require the following knowledge: ●

An understanding of the order-to-cash business process and how it integrates with other applications within SAP ERP


436



Lesson: Describing the Order-to-Cash Business Process

Order-to-Cash Process Overview

Figure 166: The Order-to-Cash Business Process – Overview

Provide an overview of the structure of the order-to-cash process.

To make order-to-cash processing effective, you must connect all related activities to customer demand by using a series of integrated processes. The Sales and Distribution application component in the SAP system helps you achieve effective processing. The steps in the order-to-cash process are then reproduced by electronic documents that are linked to each other. The order-to-cash process begins by establishing and maintaining customer relationships. The process ends by completing invoices for the delivery of goods or services to the customer. Posting incoming payments from the customer is part of the Financial Accounting application component. The customer order management cycle begins with presales activities. For example, you create and send a quotation in response to a customer inquiry. As part of order-to-cash processing, you create a sales order, for example, with reference to the quotation. During procurement, the system identifies a supplier of the goods, based on data you stored in the system. The system checks whether the supplier is from one of your delivering plants or whether the supplier is a third-party vendor. You organize and deliver the goods as part of shipping processing. In the billing process, you create the invoice and transfer all the necessary data into accounting. You check open items and post incoming payments as part of handling payments.


437



438



Unit 7 Lesson 2 414

Defining Organizational Levels for the Orderto-Cash Business Process

LESSON OVERVIEW This lesson introduces the organizational levels used for the order-to-cash business process. Business Example To use the order-to-cash business process in SAP ERP, you need to define organizational levels for Sales and Distribution. For this reason, you require the following knowledge: ●

An understanding of the organizational levels for the order-to-cash business process


●

List the organizational levels required for the order-to-cash business process Explain the relationships between the organizational levels used for the order-to-cash business process

Organizational Levels That Support the Order-to-Cash Process

Figure 167: Organizational Levels

Provide an overview of the relevant organizational levels for Sales and Distribution. Explain the organizational elements and how they are linked to the sales area. State that a sales organization is the highest-level organizational element in Sales and Distribution. The sales organization is linked to the company code so that sales transactions can be sent to Financial Accounting (FI) at the correct time. Provide an example of a sales organization.


439


Explain that a distribution channel is your business area. At a basic level, you can think of a distribution channel as a way to classify customers. Provide an example and explain why you need distribution channels. Explain that a division represents a product line. Explain that a sales area is uniquely identified by a sales organization, a distribution channel, and a division. Define the purpose of the sales area and the value it provides.

Organizational levels represent the structure of an enterprise organization. They also represent the legal and organizational views of an enterprise. The order-to-cash process is part of the Sales and Distribution (SD) application component. A sales and distribution component module includes organizational levels that are unique to the sales and distribution processes, such as sales organization, distribution channel, division, and shipping point. It also includes organizational levels, such as company code or plant, which are used in SD and in other modules. You can represent your enterprise structure using organizational levels based on your business processes. Organizational Level – Sales Organization

Figure 168: Organizational Level – Sales Organization

A sales organization is responsible for distributing goods and services. It is also liable for the sold products and for the customers’ rights of recourse. The sales organization is an organizational level in logistics. The sales organization groups the enterprise according to its sales and distribution requirements. The sales organization considers the regional, national, or international subdivision of the market. Each sales organization has a unique company code, but more than one sales organization can be assigned to a company code. If you use order to cash, you need at least one sales organization. You need to maintain your own master data for a sales organization. In the sales statistics, the sales organization is the highest summation level. All items in a document created during the

440


Lesson: Defining Organizational Levels for the Order-to-Cash Business Process

order-to-cash business process (all items of an order, an outbound delivery, or a billing document) belong to a sales organization. Organizational Level – Distribution Channel

Figure 169: Organizational Level – Distribution Channel

A distribution channel is a means by which customers procure goods or services. Examples of distribution channels are wholesale trade, retail trade, and Internet trade. Several distribution channels can be assigned to a sales organization. If you use a sales and distribution module, you need at least one distribution channel. A distribution channel performs the following tasks: ● Defines responsibilities ●

Achieves flexible pricing

●

Differentiates sales statistics

Organizational Level – Division

Figure 170: Organizational Level – Division

A division is used to group materials or services. Motorcycles , spare parts and services are examples of possible divisions in a sales organization that sells motorcycles. One sales organization can be responsible for several divisions. Every sales and distribution module must have at least one division.


441


The system uses a division to determine the sales areas assigned to a material or a service. For example, a division can represent a product group. Therefore, you can restrict price agreements with a customer to a certain division. You can also conduct statistical analysis by division. Organizational Level – Sales Area

Figure 171: Organizational Level – Sales Area

A sales area is a combination of a sales organization, a distribution channel, and a division. A sales area defines the distribution channel that a sales organization uses to sell products from a certain division. Each sales and distribution document is assigned to exactly one sales area. This assignment cannot be changed. A sales area can belong to only one company code, and this relationship is created by assigning the sales organization to the organizational level. During the processing of the sales and distribution documents, the system accesses master data according to the sales area. Some examples of sales area master data information are customer master data, material master data, prices, and discounts. In addition, the system checks to make sure certain entries are valid according to the sales area.

Note: A simple organizational structure streamlines the process of updating master data and, therefore, can be more efficient than a complex organizational structure. Do not give complex organizational structures detailed reporting options. Use the fields on the master data screen.

442



Organizational Levels – Plant and Storage Location

Figure 172: Organizational Levels – Plant and Storage Location

Plants and storage locations are organizational levels for inventory management in Materials Management. If a plant is being used as a delivering plant, it must be assigned to at least one combination of a sales organization and a distribution channel. A plant can represent, for example, a production facility or a group of locations (storage locations) near to each other. Plant and storage location are organizational levels that can be used by all logistic areas. A plant represents the following entities: ● A location where material stock is kept. ●

A manufacturing facility, in production.

●

The location from which materials and services are distributed, in sales and distribution

●

A distribution center, where the relevant stocks are kept

●

The location from which services are rendered, such as an office

In SD, the plant has the following central functions: ● At least one plant has to be created to be able to use the sales and distribution module. ●

●

●

A plant must be uniquely assigned to a company code The assignment between sales organizations/distribution channels and plants does not have to be unique. A plant is essential for determining the shipping point.


443


Organizational Level – Shipping Point

Figure 173: Organizational Level – Shipping Point

A shipping point is responsible for organizing and executing the shipping processing. It is assigned to a plant (n:n relationship). Provide examples of how you can define a shipping point.

Shipping is an integrated module of sales and distribution processing. The shipping point is the highest-level organizational level of shipping. The shipping point controls your shipping activities. Each outbound delivery is processed by one shipping point. The shipping point can be a loading ramp, a mail depot, or a rail depot. It could also be a group of employees responsible only for organizing urgent deliveries. You assign a shipping point at the plant level. A shipping point is a physical place and is near the delivering plant. A plant can have multiple shipping points. This is appropriate for plants in physical proximity to each other.

444



Organizational Levels – Relationships

Figure 174: Organizational Levels – Relationships

The following relationships exist between the organizational levels of the order-to-cash business process: ● You can assign a single distribution channel to one or more sales organizations. ●

You can assign multiple distribution channels to a sales organization.

●

You can assign a single division to one or more sales organizations.

●

You can assign several divisions to a single sales organization.

●

Each sales organization and every plant has to be assigned to a company code.

●

●

A plant can be assigned to different combinations of sales organizations and distribution channels. You can assign several sales organizations to a company code.


●

List the organizational levels required for the order-to-cash business process Explain the relationships between the organizational levels used for the order-to-cash business process


445

Unit 7 Lesson 3 421

Working with Customer-Specific Master Data in Order to Cash

LESSON OVERVIEW This lesson introduces the customer master record and its functions. Business Example To use the order-to-cash business process in SAP ERP, you need to maintain customer specific master records. For this reason, you require the following knowledge: ●

How to create a customer master record

●

An understanding of the purpose of a customer information record



●


Customer Master Records

Figure 175: Origin of Data in Sales Documents

The figure shows the master data summary. Data from various sources is copied to documents during document processing.

446


Lesson: Working with Customer-Specific Master Data in Order to Cash

You can copy data from several sources into a sales order or into another sales and distribution document. Most of the data from various sources are default values you can overwrite in the sales and distribution document if necessary. Some of the data sources are as follows: Customer master data

●

●

Material master data

●

Condition master data

●

Output master data

You can create and maintain conditional master data in the sales and distribution master data for automatic pricing. For example, this could be a material price or customer discount. The customer receives output master data by means of media, such as mail, electronic data interchange (EDI), or fax. Examples include the printout of a quotation or an order confirmation, an order confirmation using EDI, or invoices by fax. You can create and maintain control tables in Customizing. You can control the default values of several data in the sales and distribution documents, depending on the table settings.

Note: A sales document can serve as a source of data for another sales document. For example, a quotation can serve as a data source for a sales order. Structure of Customer Master

Figure 176: Customer Master


447


Explain the structure of the customer master. Link back to the organizational elements when discussing each data category to reinforce the understanding of the participants of the impact of these elements on the customer master.

The customer master groups data into the following categories: ●

General data The general data is relevant to sales and distribution and accounting. It is stored centrally (client-specifically) to avoid data redundancy. It is valid for all organizational levels within a client. Examples of general data include, the customer’s name, address, language, and telephone number.

●

Sales area data The sales area data is relevant to sales and distribution. It is valid for the respective sales area (sales organization, distribution channel, and division). For example, some data that is stored in a sales area pertains to order processing, shipping, and billing.

●

Company code data The company code data is relevant to accounting. It is valid for the respective company code. Examples of company code data include, the reconciliation account number, payment terms, and dunning procedure.

Partner Functions for the Customer Master

Figure 177: Partner Functions for the Customer Master

Use partner functions to define the rights and responsibilities of each business partner in a business transaction. You assign partner functions when you create a master record for a business partner.

448



Some of the partner functions defined in the standard system are as follows: ●

Sold-to party The sold-to party contains sales data, such as, the assignment to a sales office or valid price list.

●

Ship-to party The ship-to party contains shipping data, such as, the unloading point and goods receiving hours.

●

Bill-to party The bill-to party contains the bill-to address and document printing and electronic communication data.

●

Payer The payer contains billing schedules and bank details data.

You store the partner functions for the customer master in the customer master sales area data (Partner functions tab page). During sales order processing, the system copies the partner functions the documents as default values. For sales order processing, the mandatory partner functions are sold-to party, ship-to party, payer, and bill-to party. While processing a sales order, these partner functions can differ from one another or they can be identical. The following table lists the purposes of mandatory partner functions: Function

Purpose

Sold-to party

Places the order.

Ship-to party

Receives goods or services.

Bill-to party

Receives the invoice for goods or services.

Payer

Pays the invoice.

Other partner functions, such as contact persons or forwarding agent, are not necessary for sales order processing. Show participants how to create a customer master record by using the data and the steps from the exercise, Create a Customer Master Record.


449


450



Create a Customer Master Record

Business Example As your business acquires new customers, you need to enter information about them into the system. The customer master record stores all the customer information necessary to complete an order cycle. A new international customer contacts your customer service department to place an order. Create a new sold-to customer master record using the specified data. To create a new sold-to customer master record using the specified data, perform the following steps: 1. Create a customer master record for your new customer, 123##, by using company code 1000, sales organization 1000, distribution channel 10, and division 00. Populate the fields based on the customer data sheet. You may choose the value for any required fields that are not specified on the sheet. Hint: The system will display many screens associated with the creation of a soldto customer record. Enter only critical data. Review each screen and enter the data as needed. Proceed to the next screen by choosing the Enter pushbutton. When prompted, save.

Note: ## is your group number. The customer data sheet includes the following sections: ● Address Field

Value

Title

At your discretion

Name

At your discretion

Search term ½

TERP-##

Street/House number

At your discretion

Postal Code/City

70563, STUTTGART

Country

DE


451


●

●

●

●

Field

Value

Transportation zone

0000000001

Accounting Management Field

Value

Recon. Account (Reconciliation account)

140000

Sales Field

Value

Customer group

02

Shipping Field

Value

Shipping Conditions

## + 50 (## is your screen number)

Delivering Plant

1000

Billing Document Field

Value

Incoterms

EXW

Terms of payment

0001

Tax

1

2. Save the customer master record.

452



Create a Customer Master Record

Business Example As your business acquires new customers, you need to enter information about them into the system. The customer master record stores all the customer information necessary to complete an order cycle. A new international customer contacts your customer service department to place an order. Create a new sold-to customer master record using the specified data. To create a new sold-to customer master record using the specified data, perform the following steps: 1. Create a customer master record for your new customer, 123##, by using company code 1000, sales organization 1000, distribution channel 10, and division 00. Populate the fields based on the customer data sheet. You may choose the value for any required fields that are not specified on the sheet. Hint: The system will display many screens associated with the creation of a soldto customer record. Enter only critical data. Review each screen and enter the data as needed. Proceed to the next screen by choosing the Enter pushbutton. When prompted, save.

Note: ## is your group number. The customer data sheet includes the following sections: ● Address Field

Value

Title

At your discretion

Name

At your discretion

Search term ½

TERP-##

Street/House number

At your discretion

Postal Code/City

70563, STUTTGART

Country

DE


453


●

●

●

●

Field

Value

Transportation zone

0000000001

Accounting Management Field

Value

Recon. Account (Reconciliation account)

140000

Sales Field

Value

Customer group

02

Shipping Field

Value

Shipping Conditions

## + 50 (## is your screen number)

Delivering Plant

1000

Billing Document Field

Value

Incoterms

EXW

Terms of payment

0001

Tax

1

a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Master Data → Business Partner → Customer → Create → Complete (XD01). b) On Customer Create: Initial Screen, in the Customer Care: Initial Screen dialog box, enter the following data: Field

Value

Account group

Sold-To Party - 0001

Customer

123##

Company code

1000

Sales Organization

1000

Distribution Channel

10

Division

00

c) Choose

454

Continue.



d) On the Create Customer: General Data screen, on the Address tab page, enter the following data: Field

Value

Title

At your discretion

Name

At your discretion

Search term ½

TERP-##

Street/House number

At your discretion

Postal Code/City

70563, STUTTGART

Country

DE

Transportation zone

0000000001

e) Choose

Continue and then choose the Company Code Data pushbutton.

f) On the Create Customer: Company Code Data screen, on the Account Management tab page, enter 140000 in the Recon. Account field. g) Choose

Continue and then choose the Sales Area Data pushbutton.

h) On the Create Customer: Sales Area Data screen, on the Shipping tab page, enter the following data: Field

Value

Shipping Conditions

## + 50

Delivering Plant

1000

i) Choose the Billing Documents tab page and enter the following data: Field

Value

Incoterms

EXW

Terms of payment

0001

Tax

1

2. Save the customer master record. a)

Save your data.


455


Customer-Material Info Record

Figure 178: Master Data – Customer-Material Information

Explain the following contents of customer-material information: Customer material number and description

●

●

Proposal delivery plant

●

Delivery arrangements

Explain the benefits of creating customer-material info records and how they are used during order entry.

You can use customer-material information to record data for a combination of specific customers and materials. When processing a document, if the customer-material information for a customer and material exists, the default values are preferred to the values from the customer or material master. You can use the customer-material info record to maintain the following data: The cross-reference of your customer’s material number to your material number and the customer’s material description.

●

●

456

The specific shipping information for the customer and material (such as delivery tolerances, whether the customer accepts partial deliveries, or the default delivering plant).





●



457

Unit 7 Lesson 4 432

Using Material Master Records

LESSON OVERVIEW This lesson describes the material master record used in the order-to-cash business process. Business Example You need to manage material master records for use in the order-to-cash business process in SAP ERP. For this reason, you require the following knowledge: ●

An understanding of the material master record



Material Master


458


Lesson: Using Material Master Records

Explain the structure of the material master. Explain that the tabs and fields visible on each tab are optional or mandatory, depending on the material type you selected when you created the record.

The basic data is relevant to all areas. It is valid for all organizational levels within a client. The sales organization data is relevant to sales and distribution. It is valid for the respective sales organization and distribution channel. The sales plant data is also relevant to sales and distribution. It is valid for the respective delivery plant. Additional data relevant to different organizational levels is available for various other areas. Show participants how to change a material master by using the data and steps from the exercise, Change a Material Master.


459


460



Change a Material Master

Business Example You need to make changes to an existing material master record so that your enterprise can sell the products. Make changes to material master record R-F1##.

Note: ## is your group number. 1. Change material master record R-F1##. Choose the Sales: Org. Data 1 and Sales: Org. Data 2 views for the plant 1000, sales organization 1000, and distribution channel 10. Enter a material price of EUR 2,600 on the Sales: Org. Data 1 view and delete the value in Pricing Ref. Matl field on the Sales: Org. Data 2 view. 2. Save the changes you made to the material master record. 3. Exit the material master.


461


Change a Material Master

Business Example You need to make changes to an existing material master record so that your enterprise can sell the products. Make changes to material master record R-F1##.

Note: ## is your group number. 1. Change material master record R-F1##. Choose the Sales: Org. Data 1 and Sales: Org. Data 2 views for the plant 1000, sales organization 1000, and distribution channel 10. Enter a material price of EUR 2,600 on the Sales: Org. Data 1 view and delete the value in Pricing Ref. Matl field on the Sales: Org. Data 2 view. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Master Data → Products → Material → Trading Goods → Change (MM02). b) On the Change Material (Initial Screen), enter the material number R-F1## and choose the Select view(s) pushbutton. c) In the Select view(s) dialog box, choose Sales: Org. Data 1 and Sales: Org. Data 2 views and then choose

Continue.

d) In the Organizational Levels dialog box, enter the following data: Field

Value

Plant

1000

Sales Org.

1000

Distr. Channel

10

e) Choose

Continue.

f) On the Change Material R-F1## (Finished product) screen, choose the Sales: sales org. 1 tab page and choose the Conditions pushbutton. g) On the Create Price Condition (PR00): Scales screen, enter EUR 2,600 in the Amount field and choose

Continue.

h) On the Change Material R-F1## (Finished product) screen, choose the Sales: sales org. 2 tab page and delete the entry P-100 from the Pricing Ref. Matl field. 2. Save the changes you made to the material master record.

462


Lesson: Using Material Master Records

a)

Save the material master record.

3. Exit the material master. a)

Exit the function.


463



464



Unit 7 Lesson 5 439

Defining Pricing Conditions

LESSON OVERVIEW This lesson describes the use of conditions in the order-to-cash business process. Business Example You need to provide special pricing or discounts to customers. For this reason, you require the following knowledge: ●

How to create condition master records



Conditions

Figure 180: Condition Master

The term 'pricing' is used broadly to describe the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting).


465


Conditions represent a set of circumstances that apply when a price is calculated. For example, a particular customer orders a certain quantity of a particular product on a certain day. The variable factors here, the customer, the product, the order quantity, and the date, are conditions that determine the final price the customer receives. You can store the information about each of these factors as master data in the system. The system stores the master data in the form of condition records.

The condition master data includes prices, surcharges, discounts, freights, and taxes. You can define condition master data (condition records) so that it is dependent on various data. For example, you can establish a customer-specific material price or make a discount dependent on the customer and the material pricing group.

466



Create a Customer Material Condition Record

Business Example Your customer has negotiated special pricing or discounts with you. The system maintains these special deals as conditions. Create a condition master record by defining a customer-material-specific price. Create a customer material-specific price for your new customer 123## and the Pump RF1##. The price is valid for the rest of the year. Populate the fields based on the given data.

Note: ## is your group number. 1. Use condition type PR00 and use the customer-material specific condition. Field

Value

Sales organization

1000


10

Customer

123##

Material

R-F1##

Amount

EUR 2,500 per piece

2. Save your work and then exit the condition record.


467


Create a Customer Material Condition Record

Business Example Your customer has negotiated special pricing or discounts with you. The system maintains these special deals as conditions. Create a condition master record by defining a customer-material-specific price. Create a customer material-specific price for your new customer 123## and the Pump RF1##. The price is valid for the rest of the year. Populate the fields based on the given data.

Note: ## is your group number. 1. Use condition type PR00 and use the customer-material specific condition. Field

Value

Sales organization

1000


10

Customer

123##

Material

R-F1##

Amount

EUR 2,500 per piece

a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Master Data → Conditions → Select using Condition Type → Create (VK11). b) On the Create Condition Records screen, enter PR00 in the Condition type field and choose

Enter.

c) In the Key Combination dialog box, select the Customer/material with release status radio button and choose

Continue.

d) On the Create Pricing Condition (PR00): Fast Entry screen, enter the given data. 2. Save your work and then exit the condition record. a) b)

468

Save the condition record. Exit the function.


Lesson: Defining Pricing Conditions




469

Unit 7 Lesson 6 444

Creating Sales Orders

LESSON OVERVIEW This lesson describes how to create a sales order. Business Example The first step in the order-to-cash business process could be to perform presales activities. After successfully establishing a relationship, with your customers, the next step is sales order management. Since you are part of the order-to-cash team, you require the following knowledge: ●

An understanding of presales activities

●

An understanding of a sales order and its structure

●

An understanding of the incompletion log

●

An understanding of document flow in the order-to-cash business process

●

An understanding of availability check



●


Sales Order Processing

Figure 181: Presales

470


Lesson: Creating Sales Orders

Presales involve sales activities or mailing campaigns from sales support or presales documents (such as an inquiry or a quotation). A sales order is the beginning of the sales process. The presales document collects all the information needed to process a sales order. Specific marketing activities, such as direct mailing campaigns, internet campaigns, trade fair sales activities, and telephone campaigns can trigger sales processes. The possible results of a sales campaign could be a nonbinding customer inquiry or a request for a quotation. Inquiries and quotations contain important sales-related data and can be saved as documents. If the customer places an order later on, you can refer to this data. Use this presales information to plan and evaluate your marketing and sales strategies as a basis for establishing long-term business relationships with your customers. Some of the instances in which you can use presales information are as follows: To track lost sales, or customers.

●

●

●

To help negotiate large contracts. To sell goods and services to large organizations that require documentation of the entire sales process.

Sales Order

Figure 182: Sales Order

Discuss the different ways you can create a sales order. For example, you can create a sales order manually or through electronic data interchange (EDI). A sales order is an electronic document that contains your customer’s request for goods or services. The sales order contains all the information required to process the customer’s request during sales order processing.


471


During order creation, SAP ERP automatically proposes data from previously-stored master records and control tables. This avoids the entry of redundant data, as well as any possible input errors that occur during sales order processing. You can enter a sales order with many items on a single screen. Sales orders can also be created on the Internet or through messages received from business partners. Explain that a sales order can be entered on the basis of quotations or without any preceding quotations. Mention that each order requires a sales area. Roles of the Sales Document

Figure 183: Roles of the Sales Document

Specific functions are automatically executed depending on the type of business transaction. These functions are activated or deactivated directly or indirectly depending on the type of sales document. Examples of such specific functions are as follows: For the normal sales process, you want the system to automatically determine the date and time that your customer will receive the goods they ordered. For that reason, activate the shipment scheduling and availability check functions. These functions are not necessary for credit memo requests.

●

●

●

You do not want freight pricing for deliveries that are free of charge. You want to define a group of messages (output) relevant to sales order processing and an additional group of messages for contracts.

Hint: Output is information exchanged between business partners. An order confirmation, a billing form, or an electronic message to one of your colleagues is an example of output.

472



Explain that a sales document contains a header, line items, and schedule lines. Discuss why an order line item would have multiple schedule lines.

Sales Document Structure

Figure 184: Sales Document Structure

A sales document is grouped into the following levels: Sales document header

●

The data in the document header is valid for the entire document. For example, this includes customer-related data. ●

Sales document items Each item in the sales document contains its own data. For example, this includes data about the material and quantity of material ordered. Each sales document can have several items. Individual items can be controlled differently. Examples include material items, service items, free-of-charge items, and text items.

●

Item schedule lines Schedule lines contain delivery quantities and delivery dates. Schedule lines belong uniquely to an item. Every item that has a subsequent outbound delivery in the sales and distribution process must have at least one schedule line. For example, an item can have several schedule lines when the quantity ordered must be scheduled as several partial deliveries to be shipped at different times.

To process the sales documents efficiently, display and process the data by using different views. The views are grouped into overview, header, and item screens. You can enter a new sales document on an overview screen. All production activities that must be carried out before the goods can be delivered to the customer are taken into account during delivery scheduling. This includes loading, picking, and packing.


473


The delivery scheduling determines the material availability deadline and the loading deadline. The system first carries out backward scheduling from the requested delivery deadline. In the following scenarios, the system automatically carries out forward scheduling to determine the earliest possible shipping deadline: ●

●

If backward scheduling generates a date in the past as the date when a schedule line becomes due for shipping. If backward scheduling determines that the material will not be available on the date the system calculated.

The goal of shipment and transportation scheduling is to confirm a delivery date for the material a customer requested. For backward scheduling, the system uses customer’s requested delivery date to calculate the pick/pack time and the transportation lead time. The delivery must be created on the earlier of the two dates (selection date for outbound delivery). Incompletion Log

Figure 185: Incompletion Log

Discuss the possible reasons that an order can be determined incomplete. Explain the incompletion log functions and how missing the required information can stop the sales process. Mention how to view the incompletion log within the sales order document. You can mention that the incompletion log function is available in sales as well as in delivery processing. Each sales and distribution document contains the data required for the document and for further processing. The system determines which fields are displayed in the incompletion log when the user does not fill them during sales order processing.

474



The incompletion log is displayed automatically when you save your entries. You can also call it by choosing Edit → Incompletion log. In Customizing, you can decide which fields must be part of the incompletion log. The incompletion log functions are available in the sales order and in the delivery. The procurement department must ensure that the production and purchasing departments are advised of inadequate stock quantities so that goods can be punctually ordered and produced. The sales department transfers information on ordered materials to the production department and information on material requirements planning to the purchasing department. Requirements are planned outward movements of stock. The transfer of requirements informs the production department that goods must be produced or advises the purchasing department that purchase requisitions have been created for which purchase orders must be created and sent to the suppliers.

Document Flow in Order to Cash

Figure 186: Document Flow in Order to Cash

The document flow shows how far the sales document has been processed and creates a business transaction out of consecutive documents in the system. The document flow can be viewed with preceding and subsequent documents from each document in the sales process (for example, sales order, outbound delivery, and billing document). From the list, you can display each document or the status of each document. Explain that document flow exists at the header and item levels.

The documents in a sales process are linked to each other using the document flow. This enables you to access the history and current status of your sales processes at any time.


475


You can display the document flow as a list of linked documents. All preceding and succeeding documents are displayed depending on the document you call the list from. From this list, you can display the relevant documents or call up status overviews for the documents. This process provides an overview of the development of your sales processes at any time, and you can answer customer questions quickly and reliably. The document flow is updated at the document-header and document-item levels. Delivery documents and billing documents do not need schedule lines; but, sales documents will contain schedule lines. As each schedule line contains its own delivery date, each deliverable schedule line becomes an item in a delivery document. Show participants how to create and display a sales order using the data and steps from the exercise, Create a Sales Order.

Availability Control

Figure 187: Types of Availability Check

When you create an order, the system determines the required material availability date on the basis of the customer’s requested delivery date. On the required material availability date, you must begin picking, packing, labeling, and loading the goods. Therefore, the required material availability date is significant for requirements planning and you need to check availability on this date. In the material master, you can enter which or what type of availability check that needs to be carried out for a material during sales order processing. The availability check also depends on various tables in Customizing. From the Availability Control screen, you can access the Available-to-Promise (ATP) quantity, the scope of check for determining the available quantity, and the other plants where the material is available.

476



Create a Sales Order

Business Example A customer places an order for materials. Sales orders contain customer and product information and delivery schedules. Your new customer calls to place an order for a pump. Create a standard sales order. 1. Create a standard order (OR) using Sales Organization 1000, Distribution Channel 10, and Division 00 for customer 123## based on the following purchase order details: Field

Value

Customer

123##

Purchase Order Number

##-1

Requested Delivery Date

Material

R-F1##

Quantity

10

2. Save the order and record the order number. Order number: ____________________


477


Create a Sales Order

Business Example A customer places an order for materials. Sales orders contain customer and product information and delivery schedules. Your new customer calls to place an order for a pump. Create a standard sales order. 1. Create a standard order (OR) using Sales Organization 1000, Distribution Channel 10, and Division 00 for customer 123## based on the following purchase order details: Field

Value

Customer

123##

Purchase Order Number

##-1

Requested Delivery Date

Material

R-F1##

Quantity

10

a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Sales → Order → Create (VA01). b) On the Create Sales Order: Initial screen, enter the following data:

c)

Field

Value

Order Type

OR

Sales Organization

1000


10

Division

00

Choose

Enter.

d) On the Create Standard Order: Overview screen, enter the following data:

478

Field

Value

Sold-To Party

123##

Ship-To Party

123##

PO Number

##-1

PO date

Today



Field

Value

Req.deliv. date

e) In the All items area, enter the following data:

f)

Field

Value

Material

R-F1##

Order Quantity

10

Choose

Enter and confirm the warning message.

2. Save the order and record the order number. Order number: ____________________ a)

Choose


Save and record the order number.

479


480



Display Sales Orders

Business Example To ensure that all phases of customer order management are efficient and effective, you require instant access to lists and online reporting for customer service, shipping, and accounting activities. You can also use lists to answer basic customer questions. To be able to track customer orders, sales organizations frequently require a list of sales orders. To satisfy this requirement, process an order list. 1. Process a report listing all of the orders in sales organization 1000. 2. Choose the Order item display variant. 3. Sort the list in ascending order based on material numbers. 4. Include additional fields Order quantity, Plant, and Shipping point/Receiving Pt. 5. Total the net value. 6. Optimize the column width. 7. Exit the report.


481


Display Sales Orders

Business Example To ensure that all phases of customer order management are efficient and effective, you require instant access to lists and online reporting for customer service, shipping, and accounting activities. You can also use lists to answer basic customer questions. To be able to track customer orders, sales organizations frequently require a list of sales orders. To satisfy this requirement, process an order list. 1. Process a report listing all of the orders in sales organization 1000. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Sales → Information System → Orders → List of Sales Orders (VA05). b) On the List of Sales Orders screen, remove the default value from the Sold-to party field. c) Select the Organizational data pushbutton and enter 1000 in the Sales Organization field. Remove any values in other fields. d)

Choose

Enter.

2. Choose the Order item display variant. a) Choose Settings → Layouts → Choose. b) In the Choose layout dialog box, choose 1SAP in the Layout column. c)

Choose

Enter.

3. Sort the list in ascending order based on material numbers. a) On the List of Sales Order By partner - Items screen, choose the Material column and choose

(Sort in ascending order).

4. Include additional fields Order quantity, Plant, and Shipping point/Receiving Pt. a) On the List of Sales Order By partner- Items screen, choose

(Current).

b) In the Change Layout dialog box, choose the Order quantity, Plant, and Shipping point/ Receiving Pt. fields in the Column Set list. c) Choose

(Add sort criterion) to show the selected fields in the Sort criteria list.

d) Choose

Continue.

5. Total the net value. a) Choose the Net Value column. b) On the List of Sales Order By partner- Items screen, choose

482

(Add up values).



6. Optimize the column width. a) Choose Settings → Columns → Optimize width. 7. Exit the report. a)

Exit the report.


483



484

●


●



Unit 7 Lesson 7 459

Delivering Sales Orders

LESSON OVERVIEW This lesson shows how to perform delivery tasks for sales orders. Business Example After sales orders are created, the next step in the order-to-cash business process is to create deliveries. For this reason, you require the following knowledge: ●

An understanding of shipping processing

●

An understanding of the picking and packing processes

●

How to post a goods issue



●


●

Post a goods issue

Delivery Documents

Figure 188: Shipping

The shipping process in Sales and Distribution (SD) begins when you create the delivery document.


485


The delivery document controls, supports, and monitors the subprocesses for shipping processing. Creating a delivery document includes copying information from the sales order, such as the materials and quantities, onto the delivery document. Creating a transfer order (TO) includes copying data from the delivery document to the TO for processing within the warehouse. The TO is essential for controlling the movement of goods within the warehouse. There is a source location and a destination location for every TO. The posting of the goods issue can bring about a change of stock based on quantity as well as value (price of material). Changes based on quantity are made on the relevant balance sheet accounts and stock change accounts in Financial Accounting (FI). Creation of an Outbound Delivery

Figure 189: Creating an Outbound Delivery

You can create a delivery for a single order or you can group several sales orders together for an outbound delivery. In this process, an outbound delivery is created for a sales order in a single-step procedure. Mention that a shipping point is the organizational level needed for the delivery process. You can create an outbound delivery for a shipping point for orders that are due for delivery. The SAP system copies the relevant data from the order to the outbound delivery. You can create one or several outbound deliveries from the order. You can also combine items from several orders into one outbound delivery. To combine items successfully, all the orders must have the same characteristics that are essential for the shipping process. The following characteristics are essential for the shipping process: Shipping point

●

●

Due date

●

Ship-to address

The SAP system can create deliveries either online or as a background job to be executed during off-peak hours.

486


Lesson: Delivering Sales Orders

Outbound Delivery

Figure 190: Roles of Outbound Delivery

The outbound delivery document monitors specific activities within the shipping process. The document is used to store and update the individual statuses. You can post the goods issue for the outbound delivery when all activities, such as picking and, possibly, packing the goods have been completed. Therefore, the outbound delivery does not represent a delivery note that is created. Show the participants how to create a delivery document using the data and steps from the exercise, Create a Delivery Document.


487


488



Create a Delivery Document

Business Example The next step of the order-to-cash business process is to begin the delivery process. Create a delivery document for the sales order and view the document flow. Task 1 The sales order has been completed and the delivery date is near. Therefore, the delivery process can begin. Create a delivery document to initiate shipping activities. 1. Create a delivery in shipping point Z0## for your sales order created in the previous exercise. Specify a selection date one week from today. The storage location 0002 is maintained. Note: ## is your group number. 2. Save the document and record the delivery number. Delivery number: ____________________

Task 2 Access the delivery you created in change mode and answer the following questions. 1. What is the delivery quantity for the first line item? Delivery quantity: ____________________ 2. What is the pick quantity for the first line item? Can this value be edited?

Task 3 View document flow for the delivery and record the overall processing status of the order and the delivery. 1. Order overall processing status: ____________________ Delivery overall processing status: ____________________


489


Create a Delivery Document

Business Example The next step of the order-to-cash business process is to begin the delivery process. Create a delivery document for the sales order and view the document flow. Task 1 The sales order has been completed and the delivery date is near. Therefore, the delivery process can begin. Create a delivery document to initiate shipping activities. 1. Create a delivery in shipping point Z0## for your sales order created in the previous exercise. Specify a selection date one week from today. The storage location 0002 is maintained. Note: ## is your group number. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Single Document → With Reference to Sales Order (VL01N). b) On the Create Outbound Delivery with Order Reference screen, enter the following data:

c)

Field

Value

Shipping point

Z0##

Selection date

One week from today

Order

Order number created in previous exercise, Create a Sales Order

Choose

Enter.

d) On the Picking tab page, enter 0002 in the SLoc field. 2. Save the document and record the delivery number. Delivery number: ____________________ a) b)

490

Save the document and record the delivery number. Choose

Back.



Task 2 Access the delivery you created in change mode and answer the following questions. 1. What is the delivery quantity for the first line item? Delivery quantity: ____________________ a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Change → Single Document (VL02N). b) Note that your delivery document number appears by default in the Outbound Delivery field. c)

Choose

Enter.

d) To view the delivery quantity, choose the Picking tab page. The delivery quantity is 10 (value copied from the order). 2. What is the pick quantity for the first line item? Can this value be edited? The pick quantity is 0. The field cannot be edited.

Task 3 View document flow for the delivery and record the overall processing status of the order and the delivery. 1. Order overall processing status: ____________________ Delivery overall processing status: ____________________ a) Choose Environment → Document Flow. b) On the Document Flow screen, notice that Completed and Open are displayed as the overall processing status of the order and the delivery. c)

Exit the delivery document.


491


Picking and Packing Process Steps

Figure 191: Picking

Picking using the Warehouse Management system (full WM or lean WM) takes place through creation of a TO. The TO is a document used to initiate and monitor material movements within a warehouse. TOs are created based on the items listed in an outbound delivery to be picked by using the Warehouse Management system. Depending on storage relationships, one or more TO are created. The following tasks can be performed during picking: TO is created.

●

●

●

●

●

492

The system can print the TO. As an alternative to printing the TO as a picking list, you can display the TO data using the SAP radio frequency application on a mobile data-entry device or transfer the data to a warehouse control unit (WCU). When you confirm the TO, you are confirming the quantities withdrawn from the warehouse. The confirmation process can be automatic or manual.



Picking in Shipping Processing

Figure 192: Picking in Shipping Processing

Picking is carried out using TO with Lean WM. Customers do not need to use the complete WM for picking. TOs can be created individually or by using collective processing. Explain that although picking occurs in most situations, it is an optional step. You can control an item in an outbound delivery so that picking is required. Picking is carried out by creating transfer orders. Transfer orders trigger and monitor warehouse movements. The items in the transfer orders contain the materials and the quantities to be picked. At the same time, the corresponding delivery quantities are transferred into the outbound delivery as picking quantities. You can print the pick list for use in the warehouse from the transfer order. Picking confirmation can be automatic or can be carried out in a separate processing step. Show the participants how to create a TO by using the data and steps from the exercise, Create a Transfer Order.


493


Mobile Devices in the Warehouse

Figure 193: Using Mobile Devices

The RF framework supports GUI and character-based devices, as well as browser-based devices. GUI (MS Windows-based) devices are connected to the SAP system just like any other client-dependent PC. The screens can be touch screens, predefined pushbuttons, or can be operated using a keyboard. Devices and customer-specific adjustments can be performed with different profiles. These profiles make the radio frequency (RF) framework flexible regarding the device sizes, device types, and user-dependent requirements. The RF framework enables personalized menus and screens. According to the input (such as verification input data, keystroke, or logon request), an appropriate service is called.

494



Create a Transfer Order

Business Example Within the delivery process, we need to pick the material in SAP ERP. You will create a TO for the outbound delivery. In Lean WM, a TO is processed to facilitate the picking process. 1. Create a TO for warehouse 010, plant 1000 and the delivery created in the previous exercise. Process it in the Foreground and have the system transfer the pick quantity back to the delivery document (Adopt Pick Quantity is 1).


495


Create a Transfer Order

Business Example Within the delivery process, we need to pick the material in SAP ERP. You will create a TO for the outbound delivery. In Lean WM, a TO is processed to facilitate the picking process. 1. Create a TO for warehouse 010, plant 1000 and the delivery created in the previous exercise. Process it in the Foreground and have the system transfer the pick quantity back to the delivery document (Adopt Pick Quantity is 1). a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Single Document (LT03). b) On Create Transfer Order for Delivery Note: Initial Screen, enter the following data: Field

Value

Warehouse Number

010

Foreground/Backgrnd

Foreground

Adopt Pick Quantity

1

c) Confirm the delivery number. d) e)

496

Choose

Enter.

Save your entries.



Goods Issue Posting

Figure 194: Goods Issue Posting

All shipping activities are completed with the goods issue, and then the outbound delivery can finally be billed. Discuss the effects of posting a goods issue. State that similar to all processes in shipping, the post goods issue process can take place manually or by using collective processing. After the goods issue is completed, no further activities can be performed in the delivery. When the goods issue is posted, the system performs the following tasks: It updates the quantities in inventory management (IM) and the delivery requirements in materials planning

●

●

It updates the value change in the stock account of inventory accounting (the postings in the associated accounting document are based on the cost of the material)

●

It creates additional accounting documents for Controlling (CO)

●

It updates the billing due list

●

It updates the statuses in all associated sales documents

The delivery process is completed with the posting of the goods issue. Show the participants how to post a goods issue using the data and steps from the exercise, Post a Goods Issue.


497


Quality Management Integration

Figure 195: Quality Management in Shipping

When goods are delivered, the characteristics of the product are inspected. Specific instructions can be defined in the inspection depending on the material or on a combination of material and customer. If required, you can create quality certificates that contain data for the finished product or for materials in the production chain. Customer complaints can be recorded and processed using quality notifications. Inspection for Delivery Choose SAP Menu → Logistics → Quality Management → Quality Planning → Logistics Master Data → Quality Info Record Sales. For quality inspections for the outbound delivery and for the delivery category, the following entries for the time of the goods issue inspection are possible: ●

●

Before outbound delivery, the goods issue can only be posted after the inspection has been completed successfully. After outbound delivery, the goods issue posting can be performed before the inspection has been completed.

You can also define that no inspection lot is to be generated when the outbound delivery is created, as the customer will inspect the goods. Inspections at Goods Issue The controls for the inspection lot origin are predefined in the Customizing application. In addition, the corresponding inspection types are also assigned to the inspection lot origin in the Customizing application. The following inspection lot origins are predefined:

498



02 Goods issue 10 Delivery to customer with reference to sales order. 11 Delivery to customer without reference to sales order. 12 General delivery Quality Certificates The condition technique in sales and distribution controls the creation of quality certificates. You can also control the type of certificate that accompanies the delivery and the customerspecific or material-specific information that is printed on this certificate. Information from inspections is printed on the certificate. As of Release 4.6, certificates can be sent electronically. Create Customer complaint notification with notification type Q1.


499


500



Post a Goods Issue

Business Example To complete the delivery process in SAP ERP, you need to post a goods issue. Task 1 Post a goods issue after picking and packing is complete and the product has left the plant. 1. Post the goods issue within the delivery document.

Task 2 View document flow for the delivery and answer the following questions. 1. What is the overall processing status of the delivery document? Delivery overall processing status: ____________________ 2. Why is the status of the delivery not completed?

3. Exit document flow.


501


Post a Goods Issue

Business Example To complete the delivery process in SAP ERP, you need to post a goods issue. Task 1 Post a goods issue after picking and packing is complete and the product has left the plant. 1. Post the goods issue within the delivery document. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Change → Single Document (VL02N). b) Confirm that the delivery number created previously is displayed in the Outbound Delivery field. c)

Choose

Enter.

d) Note that the pick quantity and the delivery quantity on the Picking tab page are now equal. e) Choose the Post Goods Issue pushbutton. f)

Choose

Back.

Task 2 View document flow for the delivery and answer the following questions. 1. What is the overall processing status of the delivery document? Delivery overall processing status: ____________________ a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display (VL03N). b) Choose Environment → Document Flow. c) On the Document Flow screen, note that the overall processing status is Being processed. 2. Why is the status of the delivery not completed? The invoice has not been created yet. The status of the delivery will not be completed until invoiced. 3. Exit document flow.

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a)

Exit document flow.


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504

●


●


●

Post a goods issue


Unit 7 Lesson 8 477

Creating Invoices

LESSON OVERVIEW This lesson shows how to create customer invoices. Business Example In the order-to-cash business process, after the post goods issue is entered, the billing process can start in SAP ERP. Because you play a role in this process, you require the following knowledge: ●

An understanding of the billing process

●

How to create a billing document



Billing Process

Figure 196: Billing

Billing represents the final processing stage for a business transaction in Sales and Distribution (SD). Information on billing is available at every stage of order processing and delivery processing.


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When you create a billing document, data is copied from the sales order and the delivery document to the billing document. Delivery items as well as order items (for example, services) can be used as references for the billing document. Billing Document Creation

Figure 197: Creating a Billing Document

An invoice can be created manually for one delivery. If there are several outbound deliveries, they can be combined into one invoice by using collective processing. The billing document serves the following important functions: ● The billing document is a sales and distribution document that helps to generate invoices. ●

The billing document serves as a data source for Financial Accounting (FI) to help monitor and process customer payments.

When you create a billing document, the system updates the general ledger (G/L) accounts automatically. The system carries out following tasks during the billing process: ● A debit posting on the customer receivables account ●

A credit posting on the revenue account

You can create one invoice for a delivery or sales order depending on the Customizing settings. You can also group multiple invoices using selection criteria such as customer, billing date, and destination country. The SAP system can combine several deliveries into a billing document, provided these deliveries share some essential billing characteristics. The following are examples of billing characteristics shared by deliveries:

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Lesson: Creating Invoices

●

Payer

●

Billing date

●

Destination country

The SAP system can create invoices either online or as a background job to be executed during off-peak hours. Explain the header and item structure with the corresponding data. Explain that data is copied from the sales order and the delivery. The billing document includes data at the following levels: Billing document header

●

The data for the billing document header is valid for the entire document. The data can be related to the payer and billing date. ●

Billing document items Each billing document item in the sales document contains its own data. The data includes details of the material, billing quantities, and net values for the items. Each billing document can have several items.

To process billing documents efficiently, the data can be read and processed in different views. The views are grouped into overview, header, and item screens. Consequences of Creating a Billing Document

Figure 198: Consequences of Creating a Billing Document

Discuss the effects of billing. When you save the billing document, the system automatically generates all the required accounting documents. The accounting document contains all the completed postings in FI that refer to pricing in SD, for example, the receivable on the customer account or the obtained net sales and taxes on the relevant G/L accounts.


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When you save the billing document, further documents for accounting can be automatically generated by the system, for example, for the components Controlling (CO), Profitability Analysis, market segment analysis (CO-PA), or consolidation (FI-LC). When you post the billing document, the system updates the following data elements: All related sales, delivery, and billing documents

●

●

Sales statistics in the Sales Information System (SIS)

●

Customer credit account

Worklists

Figure 199: Worklists

A worklist is a summary of objects that meet certain criteria and require further processing. You can use worklists to list all the documents that need processing with a certain subsequent function. The worklists can be used for information purposes or to process documents more efficiently. The figure gives an overview of the collective processing options available to support the sales and distribution process. The delivery list is used to process many sales documents for outbound deliveries. The picking worklist can be used to create transfer orders for picking. The goods issue posting worklist for outbound deliveries can be used to post goods issue for the transactions that have been successfully picked. The billing worklist is used to create invoices for outbound deliveries and orders. Show the participants how to create a customer invoice by using the data and steps from the exercise, Create a Customer Invoice.

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Create a Customer Invoice

Business Example After the products are shipped to the customer, an invoice must be generated and the transaction posted to the G/L. Task 1 Products that are physically shipped to customers become eligible for billing after the goods issue has been posted. Create a billing document for your delivery and record the net value of the invoice. 1. Create a billing document for your delivery document. 2. Record the net value of the invoice. Net value: ____________________ 3. Save the invoice and record the document number. Billing document: ____________________

Task 2 View the document flow and answer the questions. 1. What is the overall processing status of the delivery, billing, and accounting documents? Delivery overall processing status: ____________________ Invoice overall processing status: ____________________ Accounting document overall processing status: ____________________


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Create a Customer Invoice

Business Example After the products are shipped to the customer, an invoice must be generated and the transaction posted to the G/L. Task 1 Products that are physically shipped to customers become eligible for billing after the goods issue has been posted. Create a billing document for your delivery and record the net value of the invoice. 1. Create a billing document for your delivery document. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Billing → Billing Document → Create (VF01). b) Note that your delivery document number appears by default. c)

Choose

(Execute).

2. Record the net value of the invoice. Net value: ____________________ a) Choose Goto → Header → Pricing conditions header. b) Note the following values: Net value – EUR 25,000 Total value – EUR 27,500 Hint: Navigate to the header pricing screen and view the total line within the conditions list. This will include the value of the line items and any taxes. 3. Save the invoice and record the document number. Billing document: ____________________ a)

Save the invoice and record the billing document number.

Task 2 View the document flow and answer the questions. 1. What is the overall processing status of the delivery, billing, and accounting documents? Delivery overall processing status: ____________________

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Invoice overall processing status: ____________________ Accounting document overall processing status: ____________________ a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Billing → Billing document → Change (VF02). b) Note that your billing document number appears by default. c) Choose Environment → Display document flow. d) Note that Completed is displayed as the overall processing status of delivery and invoice. The overall processing status of the accounting document is Not cleared. e)

Exit document flow.


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512



Process a Customer's Open Item Report

Business Example Sales persons, customer service representatives, and cash management analysts routinely require a list of a customer's unpaid or open invoices. 1. Process customer 123##'s open item report and review the open invoices.


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Process a Customer's Open Item Report

Business Example Sales persons, customer service representatives, and cash management analysts routinely require a list of a customer's unpaid or open invoices. 1. Process customer 123##'s open item report and review the open invoices. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Account Receivable → Account → Display/Change Line Items (transaction code FBL5N). b) On the Customer Line Item Display screen, enter 123## in the Customer account field on the Customer selection tab page. c)

Choose

(Execute).

d) On the Customer Line Item Display screen, review the list of your customer's open item(s). e) After you have reviewed the open items, choose

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(Exit) to exit the report.



Process a Sales Information System Report

Business Example You are responsible for reviewing sales history for your sales organization. You will process a customer analysis report using Sales Information System (SIS). Create a list of your top 10 customers according to invoiced sales. Display this information graphically for the top customer. You will routinely run this report; so to save time, create a report variant. 1. Execute a customer analysis within SIS for sales organization 1000. The period you are interested in is the month of January of the previous year to the current month and year. 2. Create a report variant TERP10-## with a description Group## Report Variant. 3. Execute the report. 4. Display the top 10 customers based on sales. 5. Change how the characteristic is displayed to show both the customer name and number. 6. Change the characteristic column width to 35. 7. Add the key figure Open orders to your report, and remove the Credit Memo key figure. 8. Drill down into more detail for your top customer. Drill down until the statistics are displayed by period. 9. Display the sales key figure graphically for this customer, and then exit the graph and the report.


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Process a Sales Information System Report

Business Example You are responsible for reviewing sales history for your sales organization. You will process a customer analysis report using Sales Information System (SIS). Create a list of your top 10 customers according to invoiced sales. Display this information graphically for the top customer. You will routinely run this report; so to save time, create a report variant. 1. Execute a customer analysis within SIS for sales organization 1000. The period you are interested in is the month of January of the previous year to the current month and year. a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Sales Information System → Standard Analyses → Customer (MCTA). b) On the Customer Analysis: Selection screen, enter the following data: Field

Value

Sales Organization

1000

Month From

January of previous year

Month To

Current month and year

Note: Delete any values in the other fields. Do not process the report. Remain on the Customer Analysis: Selection screen. c)

Save your entries.

2. Create a report variant TERP10-## with a description Group## Report Variant. a) On the Variant Attributes screen, enter the following data:

b)

Field

Value

Variant Name

TERP10-##

Description

Group## Report Variant

Save your entries.

3. Execute the report. a)

On the Customer Analysis: Selection screen, choose

(Execute).

4. Display the top 10 customers based on sales.

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a) On the Customer Analysis: Basic List screen, choose the Sales column. b) Choose the Top N pushbutton. c) Choose

Continue.

5. Change how the characteristic is displayed to show both the customer name and number. a) Choose Settings → Characteristic display → Key and description. 6. Change the characteristic column width to 35. a) Choose Settings → Column width → Characteristic. b) In the Column Width - Characteristic dialog box, enter 35 in the Column width field. c) Choose

Continue.

7. Add the key figure Open orders to your report, and remove the Credit Memo key figure. a) Choose Edit → Choose key figures. b) In the Choose Key figures dialog box, choose Credit Memo key figure from the Selection criteria list. c) Choose

(Do not choose).

d) Choose the Open orders key figure from the Pool list. e) Choose

(Choose).

f) Choose

Continue.

8. Drill down into more detail for your top customer. Drill down until the statistics are displayed by period. a) On the Customer Analysis: Ranking list screen, double-click on the top customer and then on the subsequent levels, until the Sales column displays by period. 9. Display the sales key figure graphically for this customer, and then exit the graph and the report. a) Choose the Graphics pushbutton. b)

Exit the graph and then exit the report. When prompted, do not save the report.


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Unit 7 Lesson 9 491

Receiving Customer Payment

LESSON OVERVIEW This lesson discusses how to apply a customer payment against an open invoice. Business Example To use order-to-cash functions in SAP ERP, you need to know about the customer payment process. For this reason, you require the following knowledge: ●

How to enter the customer payment



Customer Payment Payment is the last step in the order-to-cash business process. Mention the integration between Financial Accounting (FI) and Sales and Distribution (SD). The payment process is part of the Financial Accounting (FI) application module. Payment supports the following tasks: Posting payments against invoices

●

●

Reconciling differences

When you post an incoming payment, the system automatically updates the relevant general ledger (G/L) accounts. The system carries out the following tasks when updating G/L accounts: ●

A debit posting to the cash account

●

A credit memo to the customer receivables account Show the participants how to receive a customer payment by using the data and steps from the exercise, Receive a Customer Payment.


519


520



Receive a Customer Payment

Business Example The accounting department periodically reviews the customer’s open items and posts the incoming payments when received. Post the payment to the customer’s account and view the document flow for the sales order. Task 1 Process the customer's payment transaction and record the accounting document number. 1. Post the net value of the invoice to company code 1000 and to bank account 113100. Today is the document date. Specify the customer number 123## in the open item selection – Account field. 2. Save the payment transaction and record the accounting document number. Accounting document: ____________________

Task 2 View the document flow for the sales order and answer the following questions. 1. What is the overall processing status of the accounting document? Accounting document status: ____________________


521


Receive a Customer Payment

Business Example The accounting department periodically reviews the customer’s open items and posts the incoming payments when received. Post the payment to the customer’s account and view the document flow for the sales order. Task 1 Process the customer's payment transaction and record the accounting document number. 1. Post the net value of the invoice to company code 1000 and to bank account 113100. Today is the document date. Specify the customer number 123## in the open item selection – Account field. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Receivable → Document entry → Incoming Payments (F-28). b) On the Post Incoming Payments: Header Data screen, enter the following data:

c)

Field

Value

Document Date

Today

Company Code

1000

Bank data – Account

113100

Bank data – Amount

Total value of the billing document created in an earlier exercise (Create a Customer Invoice)

Open item selection – Account

123##

Choose Enter. In the lower right section of the screen, the Not assigned field equals zero.

2. Save the payment transaction and record the accounting document number. Accounting document: ____________________ a)

Save the payment and record the accounting document number.

Task 2 View the document flow for the sales order and answer the following questions. 1. What is the overall processing status of the accounting document? Accounting document status: ____________________

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Lesson: Receiving Customer Payment

a) On the SAP Easy Access screen, choose Logistics → Sales and Distribution → Sales → Order → Display (VA03). b) Note that your sales order appears by default. c) Choose Environment → Display document flow. d) Note that the overall processing status of the accounting document is Cleared.


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Process an SAP NetWeaver Business Warehouse Sales Report

Business Example You want to reduce the information in an existing query so that you can see the information that is relevant to you. Your company has customers globally, but you need to find your top 10 customers in Germany. Process the SAP NetWeaver Business Warehouse sales report. Find the top 10 customers in Germany according to their sales volumes. Open a query and modify it to suit your needs. Set a filter and sort the results. 1. Open the query T SAP01 CUSTOMER ANALYSIS. Start the BEx Analyzer, log on to the training system, and search in the InfoAreas for BW Training → BW Customer Training → BW305 Reporting → Customer Cube T_SDDEMO2 → T SAP01 CUSTOMER ANALYSIS. 2. Filter according to countries instead of sold-to parties. Hint: If you want to correct anything in the query, right-click on any field and choose Back One Navigation Step. You can also choose the Back to Start pushbutton to start all over again. 3. Filter for the country DE – Germany. 4. Go back to see the sold-to party. 5. Sort according to sales volume (the highest sales volume should be on top). 6. Filter for the top 10 customers according to sales volume. 7. Create graphics for these 10 customers. First, remove the Result Rows. Hint: This has to be done on the Sold-to Party characteristic.

Display the table as Chart, which shows the top 10 customers with the Sales Volume and Incoming Orders. 8. Close the analyzer. Do not save the query.


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Process an SAP NetWeaver Business Warehouse Sales Report

Business Example You want to reduce the information in an existing query so that you can see the information that is relevant to you. Your company has customers globally, but you need to find your top 10 customers in Germany. Process the SAP NetWeaver Business Warehouse sales report. Find the top 10 customers in Germany according to their sales volumes. Open a query and modify it to suit your needs. Set a filter and sort the results. 1. Open the query T SAP01 CUSTOMER ANALYSIS. Start the BEx Analyzer, log on to the training system, and search in the InfoAreas for BW Training → BW Customer Training → BW305 Reporting → Customer Cube T_SDDEMO2 → T SAP01 CUSTOMER ANALYSIS. a) To open the BEx Analyzer on your desktop, choose Start → Programs → Business Explorer → Analyzer. b) On Microsoft Excel screen, choose

(Open) →

(Open Query).

c) In the SAP Logon dialog box, choose the training system you are using and choose the OK pushbutton. d) Enter the required user data (Client, User, Password, and Language) and choose the OK pushbutton. e) If the SAP Logon Control dialog box appears, choose the OK pushbutton. f) Choose the InfoAreas pushbutton. g) Choose BW Training → BW Customer Training → BW305 Reporting → Customer Cube T_SDDEMO2 → T SAP01 CUSTOMER ANALYSIS. Hint: You can either double-click or select the entry and choose the Open pushbutton. h) Choose

(T SAP01 CUSTOMER ANALYSIS).

2. Filter according to countries instead of sold-to parties.

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Hint: If you want to correct anything in the query, right-click on any field and choose Back One Navigation Step. You can also choose the Back to Start pushbutton to start all over again. a) Right-click on any line in the Sold-to party column. Hint: You can also choose the header line (where it says Sold-to party).

b) Choose Swap Sold-to party With → Sold-to Party Country. 3. Filter for the country DE – Germany. a) Right-click on the DE or Germany field. b) Choose Keep Filter Value on Axis. 4. Go back to see the sold-to party. a) Right-click on the DE or Germany fields. b) Choose Swap Sold-to Party Country With → Sold-to party. 5. Sort according to sales volume (the highest sales volume should be on top). a) Choose the arrow pushbutton

in the Sales Volume EUR field.

6. Filter for the top 10 customers according to sales volume. a) Right-click on any value field in the Sales Volume EUR column. b) Choose Create Condition → Sales Volume EUR Top 10. 7. Create graphics for these 10 customers. First, remove the Result Rows. Hint: This has to be done on the Sold-to Party characteristic.

Display the table as Chart, which shows the top 10 customers with the Sales Volume and Incoming Orders. a) Right-click on any Sold-to party column. Hint: You can also choose the header line (where it says Sold-to party).

b) Choose Properties. c) In the Results Rows field, enter Always Suppress. d) Choose the OK pushbutton. The Overall Result line vanishes.


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e) Choose the Chart pushbutton. 8. Close the analyzer. Do not save the query. a) Choose File → Exit. b) If the system displays the message Do you want to save the changes you made to ’T_SAP01_Customer.xls’?, choose the No pushbutton.

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Measuring Profitability Using Profit Center Accounting

LESSON OVERVIEW This lesson introduces Profit Center Accounting (EC-PCA). This lesson reviews the tools in Management Accounting that allow you to focus on company profitability. Business Example To work in an SAP system, you need to know about EC-PCA. For this reason, you require the following knowledge: ●

How to display a profit center

●

An understanding of profit center assignments

●

An understanding of how profit centers are a part of integrated planning

●

An understanding of the flow of data to EC-PCA



Profit Center Accounting

Figure 200: Profit Center

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Lesson: Measuring Profitability Using Profit Center Accounting

The main aim of EC-PCA is to determine profit for internal areas of responsibility. The ECPCA enables you to determine profits and losses using either period accounting or the costof-sales approach. A profit center is an organizational level in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. By assigning balance sheet items (asset portfolio, payables and receivables, material stocks, and work in process) to profit centers, you can analyze your company’s fixed assets by profit center, and use them as investment centers. Assigning the balance sheet items to profit centers also makes it possible for you to analyze a number of key figures by profit center, including return on investment (ROI), working capital, and cash flow.

In new General Ledger Accounting, profit centers are part of Financial Accounting (FI). Similar to company codes, profit centers function as a dimension for reporting. This means that standard financial statements can be created for profit centers. In earlier releases, EC-PCA was part of Controlling (CO). A profit center represents the following aspects: ●

An organizational level within the company, such as a plant

●

A line of business

●

A geographical location

Profit Center Accounting – An Internal View

Figure 201: Profit Center Accounting – An Internal View

EC-PCA is a statistical accounting component. This means that EC-PCA takes transaction data posted in other components and represents the data from a profit center-oriented point of view. The postings in EC-PCA are statistical postings as the profit center is not an account assignment object in CO. You divide your company into profit centers by assigning all the objects that contain profit-related data to your profit centers. The following data is transferred to EC-PCA:


531


●

Revenues and sales input through assignment of sales document items

●

Direct costs through assignment of production orders and cost objects

●

Overhead costs through assignment of account assignment objects from Overhead Cost Controlling (cost centers and orders)

The assignment monitor provides an overview of all the assignments you have made for various object, and supports you when you make or change assignments.

The goal of EC-PCA is to measure the profitability of areas of responsibility within the organization. A profit center is a management-oriented organizational level used for internal controlling purposes. Additional account assignment in CO is done as follows: When CO is active, each posting to a CO cost element revenue or expense account requires an account assignment object. This assignment specifies where the revenue or cost will reside in CO. Examples of account assignment objects are cost centers, internal orders, production orders, and profitability segments. Profit centers are not real account assignment objects.

●

●

The master records of CO objects contain a profit center field. When EC-PCA is active, the various CO objects are linked or assigned to the profit center identified in that field. This assignment causes the system to generate a statistical posting (additional posting) in ECPCA to that profit center whenever there is a debit or credit posting to the object.

Typical Questions in Profit Center Accounting

Figure 202: Typical Questions in Profit Center Accounting

As mentioned in the previous figure, cost objects can be assigned to profit centers. If these cost objects are planned, it is possible to automatically plan the profit centers, as any planning data posted elsewhere will be statistically posted to the profit centers.

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A profit center is a management-oriented organizational level used for internal controlling purposes. Dividing your company into profit centers allows you to analyze areas of responsibility and to delegate responsibility to decentralized units, essentially treating the profit centers as companies within the company. EC-PCA lets you set up your profit centers according to products (product lines or divisions), geographical factors (regions, offices, or production sites) or functions (production or sales). Data Flows to Profit Center Accounting

Figure 203: Data Flows to Profit Center Accounting

Before you can analyze your profits by profit center, the system must summarize all the profit-related postings in EC-PCA. The following data is transferred to EC-PCA: ● All postings for revenue and cost elements (assignment to the profit center using the Management Accounting account assignment object) ●

Expense and revenue accounts for which logistics transactions are used to make postings.

●

Balance sheet accounts and other expense and revenue accounts (optional).


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Profit Center Accounting Management

Figure 204: Profit Center Accounting

EC-PCA enables you to draw conclusions on the internal aspects of profitability. This internal view of profitability reflects how successful a given profit center will be at meeting the profitability goal for which it was given responsibility. The information system is used for evaluating plan and actual data. Numerous standard reports are provided, and you can create your own custom reports as well. You can execute reports for profit centers or profit center groups. Show participants how to process a profit center report by using the data and steps from the exercise, Process a Profit Center Report.

How to Display a Profit Center 1. Display the data for your profit center 1010. a) On the SAP Easy Access screen, choose Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Display. b) On the Display Profit Center screen, enter 1010 in the Profit Center field and choose Enter. c) Verify the data displayed on the Display Profit Center screen. d) Exit the function.

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To Display a Profit Center 1. Display the data for your profit center 1010. a) On the SAP Easy Access screen, choose Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Display. b) On the Display Profit Center screen, enter 1010 in the Profit Center field and choose Enter. c) Verify the data displayed on the Display Profit Center screen. d) Exit the function.

How to Use the Profit Center Monitor Explain the function of the EC-PCA assignment monitor. 1. Verify that all production cost centers are assigned to profit centers. Run the assignment monitor for cost center category 1 production. a) On the SAP Easy Access screen, choose Accounting → Controlling → Profit Center Accounting → Master Data → Assignment Monitor (1KE4). b) On the Profit Center Accounting: Assignment Monitor screen, select the Cost Centers radio button from the Objects to Be Checked area and select the Display Objects Without Profit Centers radio button from the Report Variant area. c) Choose

(Execute).

d) In the Set Controlling Area dialog box, enter 1000 in the Controlling Area field. Choose Continue. e) On the Cost centers that Have Not been Assigned to Profit Centers screen, enter 1 in the Cost Center Category field and choose

(Execute).

2. Are there any production cost centers that are not assigned to a profit center? a) Yes, the number of non-assigned cost centers is listed in the report header. Alternatively, you could count the number of red lights appearing on the leftmost corner of the screen. 3. Exit the report. a) Exit the function. b) Return to the SAP Easy Access screen.

To Use the Profit Center Monitor 1. Verify that all production cost centers are assigned to profit centers. Run the assignment monitor for a cost center category 1 production. a) On the SAP Easy Access screen, choose Accounting → Controlling → Profit Center Accounting → Master Data → Assignment Monitor (1KE4).


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b) On the Profit Center Accounting: Assignment Monitor screen, select the Cost Centers radio button from the Objects to Be Checked area and select the Display Objects Without Profit Centers radio button from the Report Variant area. c) Choose

(Execute).

d) In the Set Controlling Area dialog box, enter 1000 in the Controlling Area field. Choose Continue. e) On the Cost centers that Have Not been Assigned to Profit Centers screen, enter 1 in the Cost Center Category field and choose

(Execute).

2. Are there any production cost centers that are not assigned to a profit center? a) Yes, the number of non-assigned cost centers is listed in the report header. Alternatively, you could count the number of red lights appearing on the leftmost corner of the screen. 3. Exit the report. a) Exit the function. b) Return to the SAP Easy Access screen.

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Process a Profit Center Report

Business Example You are satisfied that the costs of your company are being properly recorded in CO. You now want to verify that the costs are also being posted correctly in EC-PCA. You want to review the costs posted to a profit center. Process an EC-PCA report. 1. You need to review the plan and actual costs posted to your company’s profit centers. You would also like to see this data summarized by quarter for profit center 1400. Process the Profit Center List: Plan/Actual report for the current period and plan version 0. Execute the report for the profit cost group 8A-ALL-PRCTR.GLPCT. 2. View the results for profit center 1400. 3. Exit the report.


537


Process a Profit Center Report

Business Example You are satisfied that the costs of your company are being properly recorded in CO. You now want to verify that the costs are also being posted correctly in EC-PCA. You want to review the costs posted to a profit center. Process an EC-PCA report. 1. You need to review the plan and actual costs posted to your company’s profit centers. You would also like to see this data summarized by quarter for profit center 1400. Process the Profit Center List: Plan/Actual report for the current period and plan version 0. Execute the report for the profit cost group 8A-ALL-PRCTR.GLPCT. a) On the SAP Easy Access screen, choose Accounting → Controlling → Profit Center Accounting → Information System → Reports for Profit Center Accounting → ListOriented Reports → Profit Center List: Plan/Actual (S_ALR_87009712). b) On the Profit center: Area List Plan/ Act: Selection screen, enter the following data: Field

Value

Controlling Area

1000

Fiscal year

Current fiscal year

From Period

Current Period

To Period

Current Period

Plan Version

0

Profit Center Group

8A-ALL-PRCTR.GLPCT

c) Choose

(Execute).

2. View the results for profit center 1400. a) On the PrCtr list w/o elim.int.bus.vol. screen, double-click on 1400 in the Profit Center column. b) In the Select Report dialog box, select the PrCtr Group: Quarter Comp, actual row. 3. Exit the report. a) In the Command Field, enter /N. b)

538

Choose

Enter.






539


Measuring Profitability Using Profitability Analysis

LESSON OVERVIEW This lesson introduces Profitability Analysis (CO-PA) in Management Accounting. Business Example To work in the SAP system, you need to know about CO-PA. For this reason, you require the following knowledge: ●

An understanding of the purpose of CO-PA

●

An understanding of the flow of data in CO-PA



Profitability Analysis

Figure 205: Basic Terms in Profitability Analysis

CO-PA enables you to evaluate external market segments. External market segments can be classified according to products, customers, orders, or any combination of these. External market segments can also be classified according to or strategic business units, such as

540


Lesson: Measuring Profitability Using Profitability Analysis

sales organizations or business areas, with respect to your company’s profit or contribution margin. The aim of the system is to provide your sales, marketing, product management, and corporate planning departments with information to support internal accounting and decision making. CO-PA is an application in Management Accounting. The versions available for profitability reporting are costing-based CO-PA and account-based CO-PA. Costing-based CO-PA has the following features: ● Reports that display values by value field (key figures defined flexibly) ●

Special database tables

●

Can be expanded with other anticipated values, such as accrued freight costs

●

Produces revenues and cost of sales simultaneously when the billing document is calculated

Account-based CO-PA has the following features: ● Reports that display values by cost element and revenue element ●

●

●

Direct reconciliation with Financial Accounting (FI) at account level Shares data tables with other Management Accounting applications, such as Cost Center Accounting Posts revenues when the billing document is created but updates cost of sales at the point of goods issue

Typical Questions in Profitability Analysis

Figure 206: Typical Questions in Profitability Analysis

You can use CO-PA to analyze the profitability of segments in your external market. These segments can be defined by product, customer, geographical area, or other characteristics, and, by your internal organizational levels, for example, company code or business area.


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The aim of CO-PA is to provide the board of directors, sales and distribution, marketing, planning, and other groups in your organization with market-oriented decision support. Data Flows in Profitability Analysis

Figure 207: Data Flows in Profitability Analysis

The data from sales order management is one of the key sources of information for CO-PA. In costing-based CO-PA, information can be taken at the following points in the sales order cycle: ● When an order is created or changed (optional) ●

When an invoice is generated for an order

In account-based CO-PA, information can be taken at the following points in the sales order cycle: ● When a goods issue is posted ●

When an invoice is generated for the goods issue

Costs from other areas of Management Accounting can be transferred periodically to CO-PA using activity and template allocations, settlements, and assessments. Direct assignments can also be made manually from Financial Accounting to CO-PA. To display all overhead costs in CO-PA, you allocate the overhead costs that were not allocated to Product Cost Controlling to CO-PA. The options to display all overhead costs in CO-PA are as follows: Allocation of internal activities

●

542

●

Assessment

●

Order settlement

●

Project settlement



The CO-PA information system uses an online reporting tool called drilldown reporting, which enables you to evaluate the data collected in CO-PA. With this tool, you can select the desired dataset according to any of the characteristics in your CO-PA system. When you use the interactive drilldown reporting tool, you can draw any important business indicators (key figures). You can also perform variance analyses (plan/actual comparisons, fiscal year comparisons, comparisons of profitability segments, and so on). You can display several profitability segments for any key figure, or several key figures for any profitability segment.

Profitability Analysis per Market Segment

Figure 208: Profitability Analysis per Market Segment

Analyze the profitability of a particular product group that you are selling to a certain customer by setting- up CO-PA so it uses characteristics that are relevant for defining the market segments of your enterprise. Each unique combination of characteristic values, for example, sale of product A to customer Y, defines a profitability segment. Also, specify which of the values that affect profitability are to be analyzed for a particular object. These values are key figures. You can, for example, define which revenue types and cost categories are to be used for determining a value for the trade margin according to the requirements of your enterprise. CO-PA also gives you the option of choosing relevant values for the different users of your enterprise. If different types of users define the trade margin differently, you can define different key figures for each trade margin according to the specific requirement. CO-PA includes a multidimensional reporting tool for creating reports that analyze data for any market segment and any profitability measure.


543


Show participants how to process a CO-PA report by using the data and steps from the exercise, Process a Profitability Analysis Report.

544



Process a Profitability Analysis Report

Business Example Business transactions have been entered in Production and Sales and Distribution (SD). You now want to examine the results from various market segments. You want to know where your profits rose and where they fell, and analyze the causes of these changes. Use drilldown reporting to analyze the data for different profitability segments. Process a Contribution Margin Report. 1. Examine the results for your company. Run a report in CO-PA for the operating concern IDEA. Process the contribution margin report AC040 for the current fiscal year and plan version 110 to view the results for different market views. 2. Drill down to view the results for the Hamburg plant 1000. What is the gross revenue for this view? 3. Drill down from Plant 1000 to view sales and revenue data by division. Which division has the highest gross revenue? 4. Exit the report.


545


Process a Profitability Analysis Report

Business Example Business transactions have been entered in Production and Sales and Distribution (SD). You now want to examine the results from various market segments. You want to know where your profits rose and where they fell, and analyze the causes of these changes. Use drilldown reporting to analyze the data for different profitability segments. Process a Contribution Margin Report. 1. Examine the results for your company. Run a report in CO-PA for the operating concern IDEA. Process the contribution margin report AC040 for the current fiscal year and plan version 110 to view the results for different market views. a) On the SAP Easy Access screen, choose Accounting → Controlling → Profitability Analysis → Information System → Execute Report (KE30). b) In the Set Operating Concern dialog box, enter IDEA in the Operating concern field, select the costing-based radio button, and choose

Continue.

c) On Run Profitability Report: Initial Screen, select Report AC040. d) On the Selection: AC040 screen, enter the following data:

e)

Field

Value

From Fiscal year

Current fiscal year

From Period

Current period

To Period

Current period

Version

110

Select the Classic drilldown report radio button and choose

(Execute).

2. Drill down to view the results for the Hamburg plant 1000. What is the gross revenue for this view? a) On the Execute Drilldown Report AC040: Detail List screen, choose Plant in the Navigation screen area. b) If the Drill-down: Call up for documentation for hotspots screen is displayed, choose Continue. c) Verify that Plant 1000, Plant Hamburg is displayed on the Execute Drilldown Report AC040: Detail List screen. If necessary, you can scroll using the arrows or select the magnifying glass to see the available plants.

546



3. Drill down from Plant 1000 to view sales and revenue data by division. Which division has the highest gross revenue? a) On the Execute Drilldown Report AC040: Detail List screen, choose Division in the Navigation screen area and then choose the magnifying glass pushbutton to the right of the displayed division. Scroll through the listed divisions to view the results. 4. Exit the report. a)

Exit the report.


547



548




Reviewing Integration Points in Order to Cash

LESSON OVERVIEW This lesson introduces the integration points of the order-to-cash business process. Business Example Your company wants to implement the order-to-cash business process. For this reason, you require the following knowledge: ●

An understanding of how the order-to-cash business process integrates with other SAP ERP applications



Order-to-Cash Integration Points

Figure 209: Order-to-Cash Integration Points

The intent of the figure is to provide an overview of the integration points from an SAP application point of view. Use this as a review of the process.

The order-to-cash business process integrates with many different SAP application modules. The integration points of the order-to-cash business process are as follows:


549


●

Creating a sales order When a sales order is created, the system uses the inventory on hand for the availability check of material. Once the sales order is saved, the actual demand is recorded in Demand Management.

●

Creating a delivery document After the delivery document is created, the Warehouse Management process can be initiated in order to complete the picking tasks. Completing of the posting of goods issue will lead to the following tasks: -

Decrease inventory on hand.

-

Create a material document that records the change in the inventory quantity on hand.

-

-

●

Create an accounting document that records the change in the inventory valuation and also records the cost of goods sold. Create the documents in Management Accounting if an organization has implemented Profitability Analysis (CO-PA) and/or Profit Center Accounting (EC-PCA).

Creating an invoice When a customer’s invoice is created, the system creates an accounting document in Financial Accounting (FI) to record the revenue and update the accounts receivable. The system also creates an open item against the customer’s account.

●

Receiving payment When a customer’s payment is received, an accounting document is created to record the increase in cash and the decrease in accounts receivable. The customer’s open item is also cleared.


550



Unit 7

521

Learning Assessment

1. Which of the following documents does the order-to-cash business process include? Choose the correct answers. X

A Sales order

X

B Inbound delivery

X

C Service order

X

D Billing

2. For which of the following is a sales organization responsible? Choose the correct answers. X

A Distributing goods and services

X

B Negotiating sales conditions

X

C Structuring an enterprise organization

X

D Customers’ rights of recourse

X

E Product liability

3. A shipping point is a physical place and is near the ___________________. Choose the correct answer. X

A Delivering plant

X

B Manufacturing facility

X

C Storage location

4. One or more distribution channels can be assigned to a sales organization. Determine whether this statement is true or false. X

True

X

False


551


5. A customer master record is structure using which of the following categories? Choose the correct answers. X

A General data

X

B Sales area data

X

C Shipping data

X

D Company code data

X

E Billing data

6. Which of the following are included in condition master data? Choose the correct answers. X

A Prices

X

B Taxes

X

C Moving prices

X

D Discounts

X

E Surcharges

7. Which of the following steps are parts of the shipping process? Choose the correct answers. X

A Monitoring of transport shipping document

X

B Packing of goods

X

C Order confirmation

X

D Posting goods issue

8. The transfer order is a document used to initiate and monitor movements within a warehouse complex. Determine whether this statement is true or false.

552

X

True

X

False



9. The delivery process is completed with _____________________________. Choose the correct answer. X

A Posting of the goods issue

X

B Creating an outbound delivery

X

C Monitoring of transport

X

D Receiving payment of sales order

10. Which of the following elements are represented by profit center within a company? Choose the correct answers. X

A Organizational level

X

B Geographical location

X

C Line of business

X

D Accounting center

11. Which document is created when a customer’s payment is received? Choose the correct answer. X

A Material document

X


X

C Sales document


553

Unit 7

524


1. Which of the following documents does the order-to-cash business process include? Choose the correct answers. X

A Sales order

X

B Inbound delivery

X

C Service order

X

D Billing

2. For which of the following is a sales organization responsible? Choose the correct answers. X

A Distributing goods and services

X

B Negotiating sales conditions

X

C Structuring an enterprise organization

X

D Customers’ rights of recourse

X

E Product liability

3. A shipping point is a physical place and is near the ___________________. Choose the correct answer.

554

X

A Delivering plant

X

B Manufacturing facility

X

C Storage location



4. One or more distribution channels can be assigned to a sales organization. Determine whether this statement is true or false. X

True

X

False

5. A customer master record is structure using which of the following categories? Choose the correct answers. X

A General data

X

B Sales area data

X

C Shipping data

X

D Company code data

X

E Billing data

6. Which of the following are included in condition master data? Choose the correct answers. X

A Prices

X

B Taxes

X

C Moving prices

X

D Discounts

X

E Surcharges

7. Which of the following steps are parts of the shipping process? Choose the correct answers. X

A Monitoring of transport shipping document

X

B Packing of goods

X

C Order confirmation

X

D Posting goods issue


555


8. The transfer order is a document used to initiate and monitor movements within a warehouse complex. Determine whether this statement is true or false. X

True

X

False

9. The delivery process is completed with _____________________________. Choose the correct answer. X

A Posting of the goods issue

X

B Creating an outbound delivery

X

C Monitoring of transport

X

D Receiving payment of sales order

10. Which of the following elements are represented by profit center within a company? Choose the correct answers. X

A Organizational level

X

B Geographical location

X

C Line of business

X

D Accounting center

11. Which document is created when a customer’s payment is received? Choose the correct answer.

556

X

A Material document

X


X

C Sales document


UNIT 8


Lesson 1 Describing the Process

560

Lesson 2 Creating Fixed Assets Exercise 58: Create a Fixed Asset Master Record

562 565

Lesson 3 Monitoring Costs Using Internal Orders Exercise 59: Create an Internal Order

568 571

Lesson 4 Using Commitment Management Exercise 60: Process a Commitment for an Internal Order

575 577

Lesson 5 Settling Internal Orders Exercise 61: Settle an Internal Order Exercise 62: Process an Internal Order Report Exercise 63: Review the Asset Explorer

582 585 589 591

Lesson 6 Performing Period-End Activities for Fixed Assets Exercise 64: Process an Asset History Sheet

594 599

Lesson 7 Defining Organizational Levels for EAM

602

Lesson 8 Defining Technical Objects in EAM

605

Lesson 9 Integrating EAM and Fixed Asset Accounting


613

557

Unit 8: Internal Orders, Fixed Assets, and Enterprise Asset Management

Exercise 65: Display an Asset Master Record and the Corresponding Equipment Master Record

615

Lesson 10 Creating Maintenance Notifications Exercise 66: Create a Maintenance Notification

618 623

Lesson 11 Creating Maintenance Orders Exercise 67: Create a Maintenance Order

626 631

Lesson 12 Performing Maintenance Activities Exercise 68: Perform Material Planning Exercise 69: Perform an Overall Completion Confirmation

635 641 647

Lesson 13 Completing a Maintenance Order Exercise 70: Change the Status of a Maintenance Order to Technically Complete Exercise 71: Compare Plan and Actual Costs for a Maintenance Order

651 655 661

UNIT OBJECTIVES ●

558

Describe the relationship among internal orders, fixed assets, and enterprise asset management

●

Create a fixed asset master record

●

Describe the functionality of internal orders

●

Explain commitment management

●

Perform an order settlement

●

Analyze the results of the order settlement

●

Process a depreciation run

●

List the various fixed asset analytics

●

List the organizational levels used in EAM

●

Explain how functional locations are used in EAM

●

Define equipment master records

●

Describe the role of bills of material in SAP Enterprise Asset Management (EAM)

●

Discuss the connection between asset master records and equipment master records


●

Create a maintenance notification

●

Create a maintenance order

●

Explain the material process flow for maintenance orders

●

Enter confirmations for a maintenance order

●

Complete a maintenance order

●

Display an order's document flow and action log

●

Perform costs analyses for maintenance orders

●

Discuss maintenance order settlement


559

Unit 8 Lesson 1 530

Describing the Process

LESSON OVERVIEW This lesson provides an overview of the order settlement process. Business Example As a member of the project team, you need to understand the process of order settlement. For this reason, you require the following knowledge: ●

An understanding of the relationship among the components in the order settlement process




Figure 210: Internal Orders, Fixed Assets, and Enterprise Asset Management

560


Lesson: Describing the Process

An internal order can be used to collect costs for different classes of assets. During internal order settlement, the system transfers the costs from the internal order to the asset master record. At final settlement, these costs represent the acquisition value of the assets. Based on configuration settings, when a user creates and saves a fixed asset record, an equipment record can be created in SAP Enterprise Asset Management (SAP EAM). Any subsequent changes to either master record can be synchronized between the two records. LESSON SUMMARY You should now be able to: ●



561

Unit 8 Lesson 2 532

Creating Fixed Assets

LESSON OVERVIEW This lesson provides an overview of fixed asset master records. Business Example As a member of the project team, you need to create a fixed asset master record. For this reason, you require the following knowledge: ●

An understanding of maintaining fixed asset master records



Fixed Asset Master Record

Figure 211: Assets in Financial Accounting (FI) Organizational Units

The asset master record contains general data information about the asset, such as when the asset was acquired, when it was capitalized, account determination information, and asset values. Show participants how to create a fixed asset master record by using the data and steps from the Create a Fixed Asset Master Record exercise.

562


Lesson: Creating Fixed Assets

Each asset belongs to a company code and business area. All postings made for the asset (acquisitions, retirements, depreciation, and so on) are applied in the assigned company code and business area. Additionally, you can assign the asset to various Controlling (CO) objects (cost center, internal order, activity type, and so on) and logistic organizational units (for selection purposes only). Asset Class

Figure 212: Asset Class

Asset classes are the most important means of structuring fixed assets, And you can define an unlimited number of asset classes in the system. Use asset classes to structure your assets according to the requirements of your enterprise. Asset classes apply to all company codes. An asset class provides default values to all asset master records in that class. In this way, the asset class functions as a sample master record and enables creation of new asset master records without errors. The screen layout, tab layout, and field characteristics (required, optional, or suppressed) of the asset master record can be set for each asset class. The assignment of asset numbers can be controlled by the asset class. An asset class is a selection criterion in all standard reports in Asset Accounting. You can also request sorting and totaling by class-specific characteristics. The account determination key assigned to an asset class points to accounts in configuration with various postings to a particular asset (such as an asset for acquisition, or one for retirement). If you drill down on the account determination key in the asset master record, you will see the general ledger (G/L) account for acquisition and production costs (APC).

An asset class is the main criterion for defining an asset. Each asset has to be assigned to an asset class. In an asset class, you can define certain control parameters and default values for depreciation and other master data.


563


Assets that do not appear in the same line item of the balance sheet (such as buildings and equipment) must be assigned to different asset classes. Additionally, there is at least one special asset class for assets under construction and one asset class for low-value assets. To assign such assets, Internet Demo and Evaluation System (IDES) uses the following asset classes: ●

4000 – Assets under construction

●

5000 – Low-value assets

Note: You can also create asset classes for intangible assets and leased assets. Functions are available for processing leases. The Plant Maintenance application component is used for the technical management of assets. The Treasury application component is used for managing financial assets.

564



Create a Fixed Asset Master Record

Business Example As a result of increased warehouse operations, your company is purchasing a new forklift. Therefore, you need to create an asset master record. 1. Create an asset master record in asset class 3100 with the description Forklift##. Use 1000 as your company code. Assign the forklift to cost center 4130. Write down the asset number. Note: ## is your group number.


565


Create a Fixed Asset Master Record

Business Example As a result of increased warehouse operations, your company is purchasing a new forklift. Therefore, you need to create an asset master record. 1. Create an asset master record in asset class 3100 with the description Forklift##. Use 1000 as your company code. Assign the forklift to cost center 4130. Write down the asset number. Note: ## is your group number. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Fixed Assets → Asset → Create → Asset ( AS01). b) On Create Asset: Initial screen, enter the following data:

c)

Field

Value

Asset Class

3100

Company Code

1000

Number of similar assets

1

Choose

(Enter).

d) On the General tab page, enter the following data: Field

Value

Description

Forklift##

e) On the Time-dependent tab page, enter the following data:

f) g)

Field

Value

Cost Center

4130

Choose

(Enter).

Choose (Save). Record the first four numbers of the asset number (you do not need to record the zero at the end).

h) To return to the SAP Easy Access screen, choose

566

(Exit).


Lesson: Creating Fixed Assets




567

Unit 8 Lesson 3 538

Monitoring Costs Using Internal Orders

LESSON OVERVIEW This lesson provides an overview of the concept of internal orders and explains how they can be used to monitor costs below the cost center level. Business Example You are going to purchase some fixed assets. To collect the acquisition costs, of the fixed assets, your organization uses internal orders. For this reason, you require the following knowledge: ●

An understanding of the functionality of internal orders



Functions of Internal Orders

Figure 213: Internal Orders

An internal order is a flexible Controlling (CO) tool that can be used for a variety of purposes (to track costs and revenues within a controlling area, for example). Internal orders provide capabilities for planning, monitoring, and allocating costs. Internal orders can be grouped into the following general categories: ● Overhead orders

568


Lesson: Monitoring Costs Using Internal Orders

Overhead orders are used to monitor overhead costs incurred for a particular purpose, such as conducting a trade fair or tracking costs for maintenance and repair work. ●

Investment orders Investment orders are used to monitor costs incurred in the production of a fixed asset, such as building a storage facility.

●

Accrual orders Accrual orders are used to offset postings of accrued costs (costs calculated in CO) to cost centers.

●

Orders with revenue Orders with revenue are used to replace the cost accounting parts of Sales and Distribution (SD) sales orders if SD is not being used. This category is used to track both costs and revenues. If billing is not automated, these orders are also used to monitor revenues that do not affect the core business of an organization, such as miscellaneous revenues. Show participants how to create an internal order by using the data and steps from the Create an Internal Order exercise.

Internal Order Data

Figure 214: Internal Order Data

The internal order master record consists of different sections. Each section is represented by a tab page with predefined field groups. You can change the tab page title in Customizing and assign different fields to the tab pages. The Order type field is the most important field in the internal order master data. This field allows you to specify the default values for the different master data fields. It also allows you to define certain order characteristics, such as the settings for settlement, planning, and budgeting, depending on what the order is used for. You can use internal orders for planning, collecting, monitoring, and settling costs of certain operations and tasks in an enterprise. You can use the SAP system to control your internal


569


orders throughout the life cycle of an internal order (from creation to final settlement, including planning and posting actual costs).

Fixed Asset Integration

Figure 215: Fixed Asset Integration

An internal order can be a temporary cost collector for costs pertaining to either the purchase of a fixed asset or the construction of a fixed asset. All these costs, or in some cases, a percentage of these costs, represent the acquisition value of the fixed asset. Order settlement transfers these costs from the internal order to the asset master record.

570



Create an Internal Order

Business Example Your company is expanding its product development activities. To collect the purchase cost of the forklift, you need to create a settlement rule for an internal order. 1. Create an internal order for the purchase of Forklift Group ##. Use order type 0600. Create a periodic settlement rule for category FXA to settle 100% of the actual costs to the fixed asset that you created in the exercise Create a Fixed Asset Master Record.


571


Create an Internal Order

Business Example Your company is expanding its product development activities. To collect the purchase cost of the forklift, you need to create a settlement rule for an internal order. 1. Create an internal order for the purchase of Forklift Group ##. Use order type 0600. Create a periodic settlement rule for category FXA to settle 100% of the actual costs to the fixed asset that you created in the exercise Create a Fixed Asset Master Record. a) On the SAP Easy Access screen, choose Accounting → Controlling → Internal Orders → Master Data → Order Manager (KO04). b) In the Set Controlling Area dialog box, enter 1000 in the Controlling Area field. Note: This step needs to be performed only if the Set Controlling Area dialog box appears. c) Choose box:

(Create) and enter the following data in the Create Internal Order dialog

Field

Value

Order Type

0600

d) Choose (Continue). On the Create Internal Order: Master data screen, enter the following data: Field

Value

Description

Purchase of Forklift Group ##

Note: ## is your group number. e) Choose the Settlement Rule pushbutton. f) On the Maintain Settlement Rule: Overview screen, in the Distribution rules screen area, select the category row and choose

(Delete) to remove any existing rule.

g) In the Distribution rules screen area, enter the following data:

572


Lesson: Monitoring Costs Using Internal Orders

h)

Field

Value

Category

FXA

Settlement Receiver

Your fixed asset number from the "Create a Fixed Asset Master Record" exercise

%

100

Choose

(Back).

i) On the Control Data tab page of the Create Internal Order: Master data screen, choose the Release pushbutton and then choose the order number.


(Save) to save your internal order. Note

573



574



Unit 8 Lesson 4 545

Using Commitment Management

LESSON OVERVIEW This lesson describes commitment management. Business Example As a member of the project team, you need to analyze the costs incurred on an internal order and the availability of funds for future purchases. For this reason, you require the following knowledge: ●

An understanding of the uses of commitment management



Commitment Management

Figure 216: Commitments

Explain that a commitment represents a future expenditure. Commitments can be created manually or automatically when you assign the internal order to a purchase requisition or to a purchase order. These types of commitments are reduced by posting a goods receipt against a purchase order.


575


Show participants how to create a purchase order, process a commitment for an internal order, post a goods receipt, and review the results of this posting using the data and steps from the Process a Commitment for an Internal Order exercise.

A commitment identifies costs that are incurred in the future for materials and services requested or ordered. By recording commitments and actual costs, you can compare the funds you have allocated to your planned or budgeted costs to determine funds availability. The features of a commitment are as follows: ● A commitment for future costs is created in the Purchasing function of the materials management (MM) component. A commitment is automatically recorded when you assign an overhead order to a purchase requisition or a purchase order line item. ●

●

576

A commitment can be reduced by posting a goods receipt against a purchase order. Actual costs are posted to the internal order. This process continues until the purchase order is closed and the commitment is reduced to zero. Commitment management needs to be activated in Management Accounting for each controlling area.



Process a Commitment for an Internal Order

Business Example You have received approval to buy a forklift. Create a purchase order and charge the forklift costs to your internal order. 1. Create a purchase order for vendor 1000, purchasing organization 1000, purchasing group 0##, to order 1 piece of Forklift, at a cost of EUR 45000 per piece. Specify that the purchase order line item is to be charged to your internal order. Use account assignment category F. 2. Verify that the commitment has been recorded for your internal order. Process the internal order report for the current period and plan version 0. Execute the report for your internal order to view the results of the settlement. 3. Post a goods receipt for the purchase order. 4. Review the results of the goods receipt posting.


577


Process a Commitment for an Internal Order

Business Example You have received approval to buy a forklift. Create a purchase order and charge the forklift costs to your internal order. 1. Create a purchase order for vendor 1000, purchasing organization 1000, purchasing group 0##, to order 1 piece of Forklift, at a cost of EUR 45000 per piece. Specify that the purchase order line item is to be charged to your internal order. Use account assignment category F. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant known (ME21N). b) On the Create Purchase Order screen, enter 1000 in the Vendor field. c) Choose

(Expand Header) to expand the section.

d) On the Org. Data tab page, enter the following data: Field

Value

Purch. Org.

1000

Purch. Group

000

e) Enter the following data in the Item section.

f)

578

Field

Value

Acct Ass. Cat.

F

Short Text

Forklift

Order Quantity

1

Ordering unit measure

pc

Net Price

45000

Matl. Group

020

Plant

1000

Currency

EUR

Choose

(Enter).


Lesson: Using Commitment Management

g) On the Account Assignment tab page, enter the internal order number created in the Create an Internal Order exercise. Note: Leave the Cost Center field empty. h) i)

Choose

(Enter).

Choose

(Save) and note the purchase order number.

j) Choose

(Exit) and return to the SAP Easy Access screen.

2. Verify that the commitment has been recorded for your internal order. Process the internal order report for the current period and plan version 0. Execute the report for your internal order to view the results of the settlement. a) On the SAP Easy Access screen, choose Accounting → Controlling → Internal Orders → Information System → Reports for Internal Orders → Plan/Actual Comparisons → Additional Key Figures → Orders: Actual/Plan/Commitments (S_ALR_87012999). b) On the Orders: Actual/Plan/Commitments: Selection screen, enter the following data: Field

Value

Controlling Area

1000

Fiscal Year

From Period

1

To Period

12

Plan Version

0

c) In the Selection groups screen area, enter your internal order number from the Create an Internal Order exercise in the Or value(s) field. d)

Choose

(Execute).

e) Notice that the value in Commitment is 45000 (same as the purchase order price). Double-click on the Cost Elements row. In the Select Report dialog box, choose Orders: Commitment Line Items. f)

Choose

(Continue).

g) On the Display Commitment Line Items for Orders screen, verify that the value in the RefDocNo field is the same as the purchase order number created earlier. h) To exit the list, choose

(Exit).

3. Post a goods receipt for the purchase order. a) On the Orders: Actual/Plan/Commitments screen, choose System → Create Session. b) In the Command field, enter the transaction code MIGO.


579


c) On the Goods Receipt Purchase Order screen, verify that fields have the following values: Field

Value

Trans./Event

A01 Goods Receipt

Reference Document

R01 Purchase Order

d) Enter your purchase order number. e)

Choose

(Execute).

f) In the row containing the item Forklift, select the OK checkbox. g) Choose the Post pushbutton. If information message displays, choose the YES pushbutton. 4. Review the results of the goods receipt posting. a) Go back to the report on the Orders: Actual/Plan/Commitments screen. Hint: To view the updated information, you do not need to reprocess the report. You can activate the Expert mode. b) To activate the expert mode, choose Settings → Options. c) Select the Expert mode checkbox and choose

Continue.

d) To refresh the report, choose Report → Refresh. Notice that the price in the Commitment field now appears in the Actual field. e) To exit the report, choose OK pushbutton.

(Exit). If the Exit Report dialog box displays, choose the

f) Return to the SAP Easy Access screen by choosing

580

(Exit).


Lesson: Using Commitment Management




581

Unit 8 Lesson 5 552

Settling Internal Orders

LESSON OVERVIEW This lesson provides an overview of the internal order settlement process. Business Example You need to monitor the accounting activities and ensure that all internal orders are settled. For this reason, you require the following knowledge: ●

An understanding of order settlement



●


Internal Order Settlement

Figure 217: Order Settlement

The allocation technique used in conjunction with internal orders is called settlement. The order is periodically credited and a receiver is debited with the cost. Internal orders are more flexible than cost centers as far as settlement receivers... Further settlement can be used on balance sheets and P&L accounts. A settlement rule establishes the sender and receiver relationships and states how much each receiver will receive during a settlement (analog to tracing factors).

582


Lesson: Settling Internal Orders

Internal orders are usually used as an interim collector of costs and aid the planning, monitoring, and reporting processes. When a task is complete, the costs have to be passed on to their final destination, such as cost center, fixed asset, and profitability segment. This process is called settlement. It is another form of periodic cost allocation. Depending on the type of internal order and its business purpose, a settlement will occur at the end of each period or at the end of the life of an order. An order settlement can be made to different types of receivers as long as the receivers are defined as valid in Customizing and no impending system restrictions (such as locks) prevent settlement. The figure shows examples of possible settlement receivers. A settlement rule must be defined for each order. This rule is defined in the order master record. The settlement rule may specify that all of the costs on the order are settled to a single receiver or may be split to multiple receivers. Settlement can be structured flexibly by using one of the many available settlement options. Show the participants how to settle an internal order by using the data and steps from the Settle an Internal Order exercise.


583


584



Settle an Internal Order

Business Example You have completed the actual postings on your internal order. You need to transfer the costs accumulated on the internal order to the fixed asset. You will now perform order settlement. 1. You have completed the actual postings on your internal order. Now, you need to settle the order. The processing type is Automatic. Use the current period. Note: ## is your group number.


585


Settle an Internal Order

Business Example You have completed the actual postings on your internal order. You need to transfer the costs accumulated on the internal order to the fixed asset. You will now perform order settlement. 1. You have completed the actual postings on your internal order. Now, you need to settle the order. The processing type is Automatic. Use the current period. Note: ## is your group number. a) On the SAP Easy Access screen, choose Accounting → Controlling → Internal Orders → Period-End Closing → Single Functions → Settlement → Individual Processing (KO88). b) On the Actual Settlement: Order screen, enter the following data: Field

Value

Order

Your internal order number from the exercise Create an Internal Order

Settlement period

Fiscal Year

Processing Type

Automatic

Test Run

c) Choose

(Execute).

d) On the Actual Settlement: Order Basic list screen, choose

(Detail lists).

e) In the Detail list – Settled values screen area, verify the following data: Field

Value

Senders

Your internal order number created from the exercise Create an Internal Order

Receivers

Your fixed asset

ValCorArCur

Total Actual Costs of the Internal Order

f) To return to the SAP Easy Access screen, choose

586

(Exit).



Results of Settlement from Internal Order Perspective

Figure 218: Results of Settlement

During a settlement, the actual costs incurred on an internal order are allocated to one or more receivers. The system automatically generates offsetting entries to credit the internal order. After settlement, the balance of the internal order should be zero. The costs settled are updated on the corresponding receiver object and displayed in reporting. Show participants how to process an internal order report by using the data and the steps from the Process an Internal Order Report exercise.

Results of Settlement from Fixed Asset Perspective

Figure 219: Asset Explorer


587


The Asset Explorer shows all the values of a fixed asset, including acquisition and production costs (APC) values and depreciation, in various forms and summarization levels. The plan and the posted values are displayed. Use the Asset Explorer to display and analyze asset values. The Asset Explorer consists of the following elements: ●

Header, where you enter the company code and asset number

●

Overview tree, where you can navigate between different depreciation areas

●

Overview tree that displays objects related to the asset

●

Tab, where you analyze the plan values and posted values using different parameters and compare fiscal years and depreciation areas

The Asset Explorer offers an overview of the activity for an asset. You can see transactions that have been posted to the asset. You can also see planned and posted depreciation per depreciation area, per period, for each fiscal year. You can drill down to the details of the Financial Accounting (FI) transactions. You can branch to master data and other cost objects, and perform simulations. Show participants how to review the Asset Explorer by using the data and the steps from the Review the Asset Explorer exercise.

588



Process an Internal Order Report

Business Example You need to process a report that displays the planned and actual costs of an internal order. You also need to review the results and actual costs of the settlement. Process an internal order report for the current period and plan version 0 to view the results of the settlement. 1. Process an internal order report to view the results of the settlement.


589


Process an Internal Order Report

Business Example You need to process a report that displays the planned and actual costs of an internal order. You also need to review the results and actual costs of the settlement. Process an internal order report for the current period and plan version 0 to view the results of the settlement. 1. Process an internal order report to view the results of the settlement. a) On the SAP Easy Access screen, choose Accounting → Controlling → Internal Orders → Information System → Reports for Internal Orders → Plan/Actual Comparisons → Orders: Actual/Planned/Variance (S_ALR_87012993). b) On the Orders: Actual/Planned/Variance: Selection screen, enter the following data:

c)

Field

Value

Controlling Area

1000

Fiscal Year

From Period

To Period

Plan Version

0

Or values

Your internal order created from the exercise Create an Internal Order

Choose

(Execute).

d) On the Orders: Actual/Plan/Variance screen, verify the posting of the actual cost from the goods receipt of the commitment and credit of the settlement. Notice that the balance is zero. e) To return to the SAP Easy Access screen, choose

590

(Exit).



Review the Asset Explorer

Business Example You need to use Asset Explorer to review the cost postings made to the forklift. 1. Use Asset Explorer to check the values of the forklift. Use the current fiscal year.


591


Review the Asset Explorer

Business Example You need to use Asset Explorer to review the cost postings made to the forklift. 1. Use Asset Explorer to check the values of the forklift. Use the current fiscal year. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Fixed Assets → Asset → Asset Explorer (AW01N). b) On the Asset Explorer screen, enter the following data: Field

Value

Company Code

1000

Asset

Your asset number created from the exercise Create a Fixed Asset Master Record

Fiscal Year

c) Choose

(Enter) to view the values.

d) Choose the Acquisition value field on the Posted values tab page. e) After reviewing the values, choose

592

(Exit).





●



593

Unit 8 Lesson 6 564

Performing Period-End Activities for Fixed Assets

LESSON OVERVIEW This lesson provides an overview of the depreciation areas of an asset. Business Example As a member of the project team, you need to understand the financial impact of all logistical transactions that you made for the forklift. You need to record the depreciation expense as an allocation of transaction costs for financial reporting. For this reason, you require the following knowledge: ●

An understanding of the depreciation run process



●


Depreciation Areas

Figure 220: Depreciation Areas

You use depreciation areas to calculate different values in parallel for each fixed asset for different purposes. For example, you may require different types of values for the balance

594


Lesson: Performing Period-End Activities for Fixed Assets

sheet than for cost accounting or tax purposes. You manage the depreciation terms and values necessary for this valuation in the depreciation areas of each asset. Asset balances and transactions often need to be valuated differently for various purposes. To have more than one valuation basis, depreciation areas are kept in the SAP system. Separate transaction figures are kept in each area per asset and depreciation area, as well as for individual value components (such as balances, depreciation, and the remaining book value) the asset master record, different data for valuation areas is stored. The data controls the calculation of normal and special depreciation for the respective valuation areas. Therefore, you can use a different depreciation method for general business procedures as compared to the depreciation method that the tax authorities require. Control Data in Depreciation Areas

Figure 221: Control Data in Depreciation Areas

In the asset master record, different data for valuation areas is stored. The data controls the calculation of normal and special depreciation for the respective valuation areas. You can thus use a different depreciation method for general business procedures compared to the depreciation method that the tax authorities require. In account determination, the asset is attached to the general ledger (G/L) using a reconciliation account. However, contrary to customers and vendors, the reconciliation account is not maintained directly in the master record of the asset. This is because the asset class is tied to an account determination key. The account determination key points to the various accounts to which various transactions are posted. Only the acquisition and production costs (APC) account and accumulated depreciation are reconciliation accounts. Other accounts that the account determination key may point to are not reconciliation accounts. You can see the account determination key on the General tab page of an asset master record. On the General tab page of asset 3237, you can see the account determination key 30000. In the newly created building, the account determination key is 10000. Select this key. The master record for clearing account 1000 is then displayed. This account is posted when the building is purchased.


595


Every asset transaction in Asset Accounting (AA) immediately causes a change in the forecasted depreciation. However, it does not immediately cause an update of the depreciation and value adjustment accounts for the balance sheet and profit and loss statements. The planned depreciation is posted to the G/L when you run the periodic depreciation posting run. This posting run uses a batch input session to post the planned depreciation for each posting level. It posts each individual asset as a lump-sum amount.

Periodic Depreciation

Figure 222: Depreciation Run

The depreciation is actually posted in Asset Accounting (FI-AA) and the general ledger (G/L) only after the depreciation posting run is completed. The depreciation is posted to the corresponding depreciation accounts in the G/L and to the Controlling (CO) cost object assigned to the asset master record. The depreciation run can be in the direct or batch mode.

596



Fixed Asset Analytics

Figure 223: Transaction Type

The asset transaction types within AA identify individual business transactions. A transaction type has to be entered for each transaction that affects assets. Based on the specifications made in FI-AA Customizing, the entry is either automatic or manual (meaning you make the entry in the posting transaction). The transaction type is an addition to the asset posting keys 70 (debit) and 75 (credit). It must be included when posting to an asset account. The transaction type is necessary for AA because it specifies exactly where the asset posting is listed on the asset history sheet. The transaction type is the distinguishing characteristic of the various asset postings. Some asset postings are as follows: Buying and selling

●

●

Credit memos

●

Acquisitions from internal production

●

Adjustment postings

●

Retirements without revenue

●

Depreciation and appreciation

Show participants how to process an asset history sheet by using the data and steps from the Process an Asset History Sheet exercise.


597


598



Process an Asset History Sheet

Business Example As a project manager, you need to track all transactions made for assets in the current month. 1. Process the asset history sheet for an asset you created earlier and verify the acquisition value.


599


Process an Asset History Sheet

Business Example As a project manager, you need to track all transactions made for assets in the current month. 1. Process the asset history sheet for an asset you created earlier and verify the acquisition value. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Fixed Assets → Information System → Reports on Asset Accounting → Notes to Financial Statements → International → Asset History Sheet (S_ALR_87011990). b) On the Asset History Sheet screen, enter your asset number in the Asset number field. c) In the Settings screen area, select the List assets checkbox. d) In the Display options screen area, select the Use ALV grid checkbox. e) In the Further settings screen area, enter 0004 (acquisition value) in the History sheet version field. f)

Choose

(Execute). Skip through any error message to continue.

g) On the Asset History Sheet screen, note that for your asset, the acquisition value listed is 45000 (the same amount settled). Note: To see what these subtotals mean, expand the Asset column. You can see Class, Account, Balance Sheet Item, Business Area, and Company Code. h) To return to the SAP Easy Access screen, choose

600

(Exit).





●



601

Unit 8 Lesson 7 570

Defining Organizational Levels for EAM

LESSON OVERVIEW This lesson provides an overview of the organizational levels used in enterprise asset management (EAM). Business Example Your organization is considering using EAM. For this reason, you require the following knowledge: ●

An understanding of the organization levels used in EAM



Organizational Levels in EAM

Figure 224: Plant Structure

A maintenance plant is a plant in which the technical objects of a company are installed. The planning responsibility for a maintenance plant is defined using a planning plant. Maintenance plants are assigned to maintenance planning plants.

602


Lesson: Defining Organizational Levels for EAM

Maintenance tasks are planned and prepared in a maintenance planning plant. These tasks are commonly used for technical objects in your plant or in other plants. Maintenance planning plants are standard plants that are indicated as maintenance planning plants in Customizing.

A client is the highest-level element of all the organizational units. It corresponds to a corporate group with several subsidiaries.The system always accesses the same database within a client. Subsidiaries with their own financial statements and balance sheets are defined as company codes. A plant is one of the most important organizational units within Logistics. It usually represents a production unit of a company. A plant at which the operational systems of a company are installed is called a maintenance plant. If maintenance work is planned at this plant, the maintenance plant is also the maintenance planning plant (this is also referred to as the planning plant). Maintenance plants that do not plan their maintenance tasks are assigned to planning plants. Planning is performed for the maintenance plants in the planning plants you enter. Maintenance plants are subdivided according to location-based criteria such as site, building, and coordinates. A maintenance plant can also be subdivided into plant sections based on responsibility for production. The person responsible for a plant section is called the plant engineer, and they are the contact persons who coordinate production and maintenance. The units of capacity in plant maintenance are managed as maintenance work centers. Maintenance work centers are assigned to the respective maintenance plants as workshops. A maintenance planning plant is the organizational unit in which maintenance requirements are planned. These requirements either come from your own plant or from another maintenance plant assigned to this maintenance planning plant. The planners within a maintenance planning plant are defined by maintenance planner groups. Cross-Plant Maintenance

Figure 225: Cross-Plant Maintenance

Maintenance planning and execution may occur in the same plant or in different plants in the following ways:


603


●

Plant-specific planning One maintenance plant is assigned to a planning plant. In most organizational structures, maintenance measures are planned in the same plant where the maintenance requirement occurs. The maintenance orders are executed by workshops from the same plant, and the spare parts are stored in the same plant (plant 1000, for example).

●

Cross-plant planning Multiple maintenance plants are assigned to a planning plant. In one plant (plant 1200, for example), there is a need for maintenance, as a technical system requires maintenance (maintenance plant). All further functions such as maintenance planning, order execution, and spare parts storage are, however, the responsibility of another plant.

●

Other constellations The planning of maintenance measures and the spare parts procurement take for one plant (plant 1300, for example) place in another plant (plant 1000). However, the tasks are performed by locally available workshops.


604



Unit 8 Lesson 8 573

Defining Technical Objects in EAM

LESSON OVERVIEW This lesson provides an overview of the technical objects used in enterprise asset management (EAM). It describes functional locations, equipment, and bills of material (BOMs). Business Example In your organization, you need to decide which technical systems and buildings are relevant to maintenance and need mapping in the system. You will use functional locations to map complex technical systems, equipment to map individual objects, and maintenance BOMs to map spare parts. For this reason, you require the following knowledge: ●

An understanding of the concept of functional locations

●

How to identify functional locations using the structure indicator

●

An understanding of the concept of equipment master records

●

How to identify the application of BOMs in SAP EAM



●


●



605


Functional Locations

Figure 226: Functional Location

Functional locations are elements of a technical structure (for example, functional units within a system). You create functional locations hierarchically and they can be structured based on functional, process-related, or spatial criteria. When you give learners an example of when when you would create a functional location master record, use the criteria for equipment master record.

Functional locations are hierarchically ordered structures that represent a technical system, building, or part thereof. You can structure a functional location according to the following criteria: ● Spatial (such as building 1 and building 2) ●

Technical (such as press frame and press hydraulics)

●

Functional or process-oriented (such as polymerization and condensation)

The aim of creating a functional location is to structure a technical system or building into units that are relevant to plant maintenance. In creating a functional location, the functional location often takes on the function of the location where individual objects (engines, gearboxes, pumps, and so on) can be installed. In such cases, it is possible to view removal and installation locations from the point of view of the installation location and also from the point of view of the individual installation or removal object. Criteria for Functional Locations You should use functional locations to structure your systems in the following conditions:

606


Lesson: Defining Technical Objects in EAM

●

●

●

●

●

You want to represent the structures of the technical systems in your company according to functional criteria. You need to perform and record maintenance tasks for certain parts of your technical system. You need to store technical data for certain parts of your technical system and evaluate this data over a long period of time. You want to monitor the cost of maintenance tasks for certain parts of your technical system. You want to analyze the effects of the usage conditions on the likelihood of damage to the installed equipment.

Master Record for Functional Location

Figure 227: Master Record for Functional Location

The master record for the functional location uses the following views: ● General (such as classification, object type, reference data, or manufacturer data) ●

●

●

Location (such as location data, or address) Organization (for example, account assignment such as company code and cost center, or organizational responsibility such as maintenance planning plant) Structure (such as structure indicator, higher-level functional location, or equipment)


607


Example of Functional Location Structure

Figure 228: Example of Functional Location Structure

The identification for functional locations is created using the structure indicator. The structure indicator consists of the following input fields: ● Coding template A coding template is used to control the characters that may be used for identification (letters, numbers, or both) and how these characters are grouped or split. ●

Hierarchy levels The hierarchy levels are used to define which level ends at which character, as well as the number of hierarchy levels the structure may contain.

A functional location can be identified using a maximum of 40 characters, which is the maximum length of the coding template.

Equipment Master Records

Figure 229: Equipment

608



As with functional locations, use the criteria for equipment master record to discuss further when you would create an equipment master record.

A piece of equipment is an individual physical object that is to be maintained as an autonomous unit. Pieces of equipment usually represent single objects, such as pumps, motors, and vehicles, for which you need to perform and record maintenance tasks. Examples of single objects are as follows: Means of production

●

●

Means of transport

●

Test equipment

●

Production resources or tools

●

Customer devices

●

Building or property

●

Systems or system parts

●

Vehicles

You can install equipment at functional locations. You can link a piece of equipment with a material (if you want to create a equipment using MM, you can create a material with serial number. So inventory will be in place. Criteria for Equipment Master Record You should always create an equipment master record for a technical object in the following situations: ● You need to manage individual data for an object. ●

You require breakdown, planned, or preventive maintenance tasks for an object and need to record them.

●

You need to collect and evaluate technical data for an object over a long period of time.

●

You need to monitor the costs of maintenance tasks for an object.

●

You need to record the usage time of an object at functional locations.


609


Views of Equipment Master Record

Figure 230: Equipment Master Record

An equipment master record uses the following views in the standard system: General (for example, class, object type, reference data, manufacturer data, and so on)

●

●

●

●

Location (for example, location data, address, and so on) Organization (for example, account assignment such as company code and cost center, responsibilities such as maintenance planning plant, and so on) Structure (for example, structure indicator, higher-level functional location, equipment, and so on)

Additional data or links in the master record for the equipment can also be activated as tab pages or called up using a pushbutton. You can use the time-based data to dynamically monitor a piece of equipment tracking changes to that equipment over a specific period of time. If your system is customized accordingly, it automatically creates a new time segment whenever certain changes are made in the master record. The time segment describes the equipment usage.

610



Bills of Material

Figure 231: Bills of Material in Plant Maintenance

A maintenance BOM is a complete, formally structured list of the components that makes up a technical object or an assembly. The list contains the object numbers of the individual components together with their quantity and unit of measure. The components can be stock or non-stock spares or assemblies, which in turn can be described using maintenance BOMs. Using maintenance BOMs allows you to describe the structure of a technical object, to specify exactly where maintenance tasks are performed, and to assign spare parts to a technical object. Explain how one BOM can be assigned to one of more technical objects through the Construction type field.

The maintenance BOM differs from other BOMs. The maintenance BOMs only contain items relevant to plant maintenance. The maintenance BOM has the following important functions: Structuring of the object

●

The structure of an object should be displayed as clearly as possible from a maintenance viewpoint. ●

Spare parts planning in the order If a technical object uses a BOM, you can use this BOM for planning or creating a maintenance order to plan spare parts.

●

Spare parts planning in the task list Spare parts can be planned in the task list based on a BOM.

The categories of maintenance BOMs are as follows: ● Material BOM


611


●

Equipment BOM

●

BOM for functional location

Using a Material BOM as a Maintenance BOM

Figure 232: Using a Material BOM as a Maintenance BOM

Material BOMs are always used in plant maintenance when a number of similarly constructed objects have to be maintained. The aim of using a material BOM is to create one BOM and then assign this BOM to the technical objects, instead of creating a BOM for each technical object. This avoids the use of redundant BOMs. A material BOM is a BOM that is first created for a material independent of a technical object. To create a material BOM, you must perform the following tasks in this sequence: 1. Create a material. 2. Create a material BOM for the material. 3. Assign a BOM to one or more technical objects (equipment or functional location). You can make the assignment(s) in the respective master record using the Structure view. The number of the corresponding material is entered in the Construction type field. LESSON SUMMARY You should now be able to:

612

●


●


●



Unit 8 Lesson 9 581

Integrating EAM and Fixed Asset Accounting

LESSON OVERVIEW This lesson provides an overview of the EAM integration between asset master records and equipment master records. Business Example Your company has received some correction in the configuration data for equipment. You need to create a record of all such equipment. For this reason, you require the following knowledge: ●

An understanding of how master records can be used to update equipment records



Assets and Equipment

Figure 233: Asset and Equipment Master Records

The previous method for assigning equipment to an asset was to enter the asset number in the relevant master record. This functionality still exists. Several pieces of equipment can be assigned to an asset, but a piece of equipment can belong only to one asset. As of Release 4.6C, you can ensure integration between Asset Accounting (FI-AA) and Plant Maintenance (PM) by synchronously creating and /or changing equipment and asset.


613


You can set up the system to automatically create an equipment master record whenever you create an asset master record. In this case, the system copies the values of certain master data fields, such as the Company Code and the Inventory Number. If you change master data in the asset at a later point in time, the system then automatically updates the fields in the equipment master record and the other way around. You can also set up a workflow that informs someone (the person responsible in PM, for example) when assets are created or changed. Create automatic equipment master records in Customizing for Controlling under Financial Accounting (new) → Asset Accounting → Master Data → Automatic Creation of Equipment Master Records. Tell the participants to see SAP Notes 370884 and 549929 for more information.

614



Display an Asset Master Record and the Corresponding Equipment Master Record

Business Example You need to view the asset master record and the equipment master record. 1. Display the asset master record for the asset created earlier. 2. Display the equipment master record.


615


Display an Asset Master Record and the Corresponding Equipment Master Record

Business Example You need to view the asset master record and the equipment master record. 1. Display the asset master record for the asset created earlier. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → Fixed Asset → Asset → Change → Asset (AS02). b) On Change Asset: Initial screen, enter the following data: Field

Value

Asset

Your asset number

Subnumber

0

Company Code

1000

2. Display the equipment master record. a) Choose Environment → Equipment. b) On the Display Equipment: General Data screen, the equipment master record is displayed. Note the equipment number. c) To return to the SAP Easy Access screen, choose

616

(Exit).


Lesson: Integrating EAM and Fixed Asset Accounting




617


Creating Maintenance Notifications

LESSON OVERVIEW This lesson provides an overview of the phases of corrective maintenance and describes the notification structure. Business Example Your company needs to follow a process where the maintenance requirements are first recorded in the system, then viewed and valuated, and finally converted to orders. For this reason, you require the following knowledge: ●

An understanding of the phases of corrective maintenance process

●

An understanding of the integrations points with other SAP ERP modules This lesson introduces the phases of corrective maintenance. Briefly mention that the various phases of corrective maintenance can be enhanced by the functions of SAP Business Workflow, thereby enabling control of the process flow.


618



Lesson: Creating Maintenance Notifications

Maintenance Notifications

Figure 234: Corrective Maintenance Process

The corrective maintenance process is divided into the following phases: 1. Notification In the notification phase, malfunctions and other requirements are recorded in a notification. Notifications can be accessed and processed through a list. 2. Planning In the planning phase, orders are created and planned based on the reported requirements. Planning encompasses the steps to be performed, the material required, and any utilities that may be necessary, such as measurement devices and cranes. 3. Control In the control phase, the order runs through checks, such as material availability checks and capacity planning, which are important for the release of the order. If no problems arise during these checks, the order is put in process. The shop papers are printed at this point. 4. Execution In the execution phase, the order is executed. The required material for the order is withdrawn. Even material that has not been planned and, therefore, not reserved by the order can be withdrawn for the order. 5. Completion In the completion phase, partial steps are executed. Examples of partial steps include time confirmation, technical confirmation, and technical completion. The settlement of the order by Controlling (CO) can be performed before or after the technical completion. With SAP workflows, you can control this five-phase business procedure and partly automate it.


619


Control and Automation of Corrective Maintenance Process You can use SAP Business Workflow to represent business processes in the SAP system and process them repeatedly using the workflow system. The following statements describe structured processes that can be controlled and processed by a workflow management system: ●

Structured processes comprise a series of activities.

●

Structured processes recur in the same or similar forms.

●

Structured processes involve several people or groups of people.

●

Structured processes require a high level of coordination.

In the SAP standard, various standard workflows (workflow models and tasks) are provided for enterprise asset management (EAM), which is the PM component. You can activate, configure, or use the workflows in their standard version. However, they can also be adapted and expanded according to customer requirements. You can use a notification in maintenance processing in the event of a malfunction or an exceptional situation. You can also use a notification to describe the exceptional technical condition for an object, request the maintenance department to perform the necessary task, and document the work done. Maintenance notifications document maintenance tasks completely and make them available for analysis in the future. You can use them for preliminary planning and execution of tasks. Differentiate between a task and an activity. A task is work that is planned within the framework of a notification. An activity is work that is performed within the framework of a notification. In contrast to the task, the activity describes what has already been performed within the framework of solving the problem.

Maintenance Notification – Structure

Figure 235: Maintenance Notification – Structure

620



Each maintenance notification contains header data, which is the information used to identify and manage the notification. The header data is valid for the complete maintenance notification. You enter and maintain data in a notification item to determine a problem, find any damage, or view maintenance activity executed in greater detail. A notification can contain several items. Activities document the work performed for a notification. They are particularly important for inspections because they prove that certain tasks have been performed. Tasks describe the activities that are pending and which may have arisen only after the maintenance task was executed, such as creating a report. You can also use tasks for planning purposes in certain cases (for example, if order processing is not active). When the process is not active, you can plan to assign different people to process the notification and monitor the execution of activities for specific time periods. Note, however, that no cost monitoring, material planning, or capacity requirements planning is possible for this type of processing. The notification interface is configurable. You can adjust the number of registers and their values according to your requirement, in Customizing. Show participants how to create a maintenance notification by using the data and steps from the Create a Maintenance Notification exercise. Reference Objects in Maintenance Notifications

Figure 236: Reference Objects in Maintenance Notifications

You can create all the maintenance notification types for the following reference objects: ●

A functional location (with or without an assembly)

●

A piece of equipment (with or without an assembly)

●

A material with a serial number


621


The hierarchy of this object corresponds to the specified sequence. When you enter a maintenance notification for an assembly on a piece of equipment (which is assigned to a functional location), the system transfers all relevant data for the piece of equipment and functional location. However, you can also enter a maintenance notification without specifying an object number. Examples of maintenance notification without an object number are as follows: When a malfunction report refers to an object that is not managed under a number in the system

●

●

When a maintenance request refers to a new object to be provided for an investment program

The view for the reference object can be selected for an individual notification or notification type in the following ways: ● Functional location + Equipment + Assembly (former standard setting) ●

622

Functional location + Equipment + Assembly, whereby if a functional location has only one piece of equipment, this piece is automatically set for the functional location

●

Functional location

●

Equipment (with and without assembly)

●

Material number + Serial number (with and without the equipment number)

●

Without a reference object



Create a Maintenance Notification

Business Example The first step in the corrective maintenance cycle is to create a notification. The notification contains information about the equipment or functional location and the reason for the notification. Inspect the new forklift and check the fluid levels. You also need to install the headlights on this forklift. 1. Create a maintenance request for your forklift. Use the equipment number. Enter a description of the equipment. 2. Save the maintenance request.


623


Create a Maintenance Notification

Business Example The first step in the corrective maintenance cycle is to create a notification. The notification contains information about the equipment or functional location and the reason for the notification. Inspect the new forklift and check the fluid levels. You also need to install the headlights on this forklift. 1. Create a maintenance request for your forklift. Use the equipment number. Enter a description of the equipment. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Notification → Create (Special) → Maintenance Request (IW26). b) On the Create PM Notification: Maintenance request screen, enter Forklift inspections – Group ## in the description field. Note: ## is your group number. c) In the Reference Object screen area of the Notification tab page, enter your equipment number in the Equipment field. d) Choose

(Continue).

2. Save the maintenance request. a)

624

Choose

Save.






625


Creating Maintenance Orders

LESSON OVERVIEW This lesson describes the creation of maintenance orders. Business Example As a member of the project team, you are responsible for creating maintenance orders. For this reason, you require the following knowledge: ●

An understanding of the options for creating maintenance orders



Maintenance Orders

Figure 237: Creation of Maintenance Orders

Discuss the options for creating maintenance orders. A maintenance order can be created for the following cases: ● The maintenance order is created directly (a breakdown order).

626


Lesson: Creating Maintenance Orders

●

●

●

●

The maintenance notification is not entered centrally. The maintenance order is created for the maintenance notification by the person responsible. In a maintenance order, several maintenance notifications are combined into one or more objects. An activity report for an existing maintenance order is entered subsequently as a technical confirmation. A maintenance order is automatically generated from a maintenance item by the maintenance plan. Show participants how to create a maintenance order by using the data and steps from the , Create a Maintenance Order exercise.

Elements of Maintenance Order

Figure 238: Elements of Maintenance Order

The following elements are included in a maintenance order: Header data:

The header data contains information that serves to identify and manage the maintenance order. It is valid for the whole maintenance order, such as the number, description and type of order, scheduled dates for order execution, priority of tasks, creator, last person who changed the order, and so on.

Object list:

The object list contains the objects to be processed (such as functional locations, equipment, assemblies, and serial numbers) and is implemented if the same activity must be performed at multiple objects of the same type.

Order operation:

The order operation describes the tasks that are necessary for the maintenance order, who performs the tasks, and the task guidelines.


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Material list The material list contains spare parts that are required and used when (component list): the maintenance order is executed. Production resources and tools:

The production resources and tools are required to execute the maintenance order, but are not used up (such as tools, protective clothing, and trucks).

Settlement rule:

The data in the settlement rule provides information on who should bear the costs. It is proposed from the master record for the reference object and can be changed when the first settlement rule is maintained for the order.

Costs:

The costs view details out how much the estimated, plan, and actual costs are in the value categories for this order. A technical view and a controlling view are also available.

Maintenance Order – Object List

Figure 239: Maintenance Order – Object List

Explain that a maintenance order can contain more than one object. Many notifications can be converted into one order. The multiple objects from these notifications are listed on the object list. The object list is an integral part of the maintenance order. The object list is used to compile multiple notifications and also to assign several technical objects to the order. Even if no reference object has been specified for the maintenance order on the header data screen, you can assign technical objects and maintenance notifications, respectively to the maintenance order in the object list. You can also assign both in the object list. If notifications are assigned to the order using the object list, the first notification in the order header appears in the Notification field. The first notification is indicated as the header notification. The header notification and the other notifications in the object list can be separated from the order again.

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The object list does not control the order, no adjustment of work is to be performed, update of history, or cost distribution takes place. You can use customer exit IWO10027 to distribute the order costs proportionately to the objects in the object list.


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630



Create a Maintenance Order

Business Example In the corrective maintenance cycle, after you have created a notification, you need to convert it into a maintenance order. The order is the most important component in planning maintenance tasks. Operations and spare parts are planned in the order. The order also serves as a cost collector. 1. Create a maintenance order by converting the maintenance request. Use order type PM01. Assign the order to work center T-ME## and to business area 1000. 2. Add an operation to check the fluid levels of the forklift. Assign 3 hours to this operation. 3. Add another operation to install the headlights. Assign 6 hours to this operation. 4. Save your maintenance order and record the number. 5. Exit the order.


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Create a Maintenance Order

Business Example In the corrective maintenance cycle, after you have created a notification, you need to convert it into a maintenance order. The order is the most important component in planning maintenance tasks. Operations and spare parts are planned in the order. The order also serves as a cost collector. 1. Create a maintenance order by converting the maintenance request. Use order type PM01. Assign the order to work center T-ME## and to business area 1000. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Notification → Change (IW22). b) On Change PM Notification: Initial Screen, your notification number defaults. Choose (Enter). c) On the Change PM Notification: Maintenance Request screen, choose

(Create).

d) In the Create Order dialog box, enter the following data: Field

Value

Order Type

PM01

Planning Plant

1000

Business Area

1000

Main Work Center

T-ME#/1000

e) Choose

(Continue).

2. Add an operation to check the fluid levels of the forklift. Assign 3 hours to this operation. a) On the Create Maintenance Order: Central Header screen, choose the Operations tab page. b) Choose the Operation field with row value 0010, and enter the following data:

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Field

Value

Operation short text

CHECK FLUID LEVELS

Work

3



Note: Remain on the same tab page for the next step. 3. Add another operation to install the headlights. Assign 6 hours to this operation. a) On the Operations tab page, enter the following data in the Operation field with row value 0020: Field

Value

Operation short text

Install Headlights

Work

6

4. Save your maintenance order and record the number. a)

To save your data, choose

(Save).

5. Exit the order. a) Choose


(Exit).

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634




Performing Maintenance Activities

LESSON OVERVIEW This lesson provides an overview of the material procurement and order completion processes. Business Example As a member of the project team, you need to ensure successful completion of a maintenance order. For this reason, you require the following knowledge: ●

An understanding of the material flow process

●

An understanding of the order confirmation process

●

An understanding of order completion You can assign any number of material components to an operation. A component can be a spare part or repairable spare, or can describe an activity. The material that you schedule for an order is reserved for the order in the warehouse. As soon as the order is released, the materials can be withdrawn from the warehouse and delivered to the customer. The following conditions apply for planned material: ●

●

For stock material, the system generates a reservation. For nonstock material or where external services are involved, the system generates a purchase requisition for external procurement.



●



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Material Process Flow

Figure 240: Process Flow – Stock Material

If the materials that you plan for the maintenance order are kept in stock, they are reserved in the warehouse. You can set the reservation time in your system using the Customizing function. In Customizing, whether the system should make the material reservation effective, generate the purchase requisition immediately, or only generate when the order is released is decided for each order type. An availability check can be called when components are assigned in the order. An automatic availability check is performed when the order is released. The order can also be released if there is no availability. You can print a material provision list and material withdrawal slips together with the order papers. Planned goods issues are entered with reference to the reservation (reservation number), unplanned goods issues with reference to the order number. The goods issues entered appear in the document flow of the order. If your company does not keep stock of the required spare parts, Purchasing has to procure the material from a vendor. From the Plant Maintenance (PM) perspective, material procurement is a support process that integrates PM with Purchasing (materials management).

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Lesson: Performing Maintenance Activities

Process Flow – Nonstock Material Procurement

Figure 241: Process Flow – Nonstock Material Procurement

When components are assigned in the order, additional purchase information can be entered. Depending on the order type, the system generates purchase requisitions either when the order is saved or released. In Purchasing, purchase orders are generated from purchase requisitions. The purchase order items are assigned to the maintenance order. You enter goods receipts with reference to the purchase order after the order has been put in process. The account assignment of the purchase order instigate the posting to the order. When you have entered the goods receipts, the maintenance order is debited with the purchase order value. When the invoice is received, any invoice differences are automatically credited to, or debited from the maintenance order. The goods receipts entered appear in the document flow of the order.


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Material Through Internet Catalog

Figure 242: Material Through Internet Catalog

You can base the material planning in the maintenance order on Internet catalogs, direct material assignment, and the use of bills of material (BOMs). For material planning, you access an external catalog directly from the components screen of an order. To access the components screen of an order, you use the Open Catalog Interface (OCI), which can be set up for the order type and planning plant in Customizing. If a company is using SAP Enterprise Buyer [previously known as Enterprise Buyer Professional (EBP)], catalog access and, in some cases, also the entire purchasing procedure can be processed using Enterprise Buyer. Order Release

Figure 243: Order Release

The release of maintenance order has the following effects:

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●

Reservation is effective and can be withdrawn.

●

Papers can be printed.

●

Confirmation is possible.

●

Goods movement is possible.

When you release a maintenance order, the system checks the availability of materials and production resources or tools. At the time of release (at the latest), material reservations become relevant to materials planning, materials withdrawn, and purchase requisitions are generated. The following activities can only be performed after you have released the order: Print shop papers.

●

●

Withdraw material.

●

Book goods receipts.

●

Enter time confirmations.

●

Complete task.

Material Withdrawal

Figure 244: Material Withdrawal

The execution phase involves the withdrawal of spare parts from the warehouse and the actual execution of the order. Workers withdraw materials from the warehouse to perform maintenance tasks. Workers can make the following types of withdrawal of stock material: ● Planned withdrawal ●

Unplanned withdrawal

Materials can also be procured externally.


639


The goods movements for a maintenance order are displayed in the document flow of the order. The Material Where-Used List (IW13) lets you check which withdrawals for a material were planned and which were unplanned. Show participants how to perform material planning, view planned order costs and finally release an order by using the data and steps from the Perform Material Planning exercise.

640



Perform Material Planning

Business Example A maintenance order has been created. Because the work is done on the order, material needs to be withdrawn from inventory. Material withdrawals can either be planned or unplanned. A planned material withdrawal is when the material is listed on the order. Perform material planning and view planned order costs. After reviewing the costs, release the order. Task 1 Perform material planning. 1. After converting the maintenance request to a maintenance order, perform material planning. Assign 2 deluxe headlights and material T-AS1## to the maintenance order. Allocate the components to operation 0020. Select L as the item category. 2. Perform an availability check to verify that the components have sufficient on hand inventory to cover the required quantity. 3. Save your maintenance order.

Task 2 Display planned order costs. You need to view the planned costs calculated for the maintenance order. 1. Display the planned/actual comparison for your order. 2. What are the total planned costs?

Task 3 Release the maintenance order. You have completed material planning and reviewed the planned costs. You can now release this maintenance order. 1. Release the maintenance order. 2. Save the maintenance order.


641


Perform Material Planning

Business Example A maintenance order has been created. Because the work is done on the order, material needs to be withdrawn from inventory. Material withdrawals can either be planned or unplanned. A planned material withdrawal is when the material is listed on the order. Perform material planning and view planned order costs. After reviewing the costs, release the order. Task 1 Perform material planning. 1. After converting the maintenance request to a maintenance order, perform material planning. Assign 2 deluxe headlights and material T-AS1## to the maintenance order. Allocate the components to operation 0020. Select L as the item category. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Order → Change (IW32). b) On Change Order: Initial Screen, enter your maintenance order created earlier, if it does not appear by default, and choose

(Enter).

c) On the Change Maintenance Order ####: Central Header screen, choose the Components tab page and enter the following data: Field

Value

Component

T-AS1##

Reqmt Qty

2

IC

L

Note: #### in the screen name is your order number. ## in the component name is your group number. d) In the Allocation Operation dialog box, enter 0020 in the Operation field. Choose

(Continue).

2. Perform an availability check to verify that the components have sufficient on hand inventory to cover the required quantity.

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a) Choose the row item with your component and choose A confirmation message appears in the status bar. b)

Choose

(Check material availability).

(Enter).

3. Save your maintenance order. a)

Choose

(Save) to save your data.

Task 2 Display planned order costs. You need to view the planned costs calculated for the maintenance order. 1. Display the planned/actual comparison for your order. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Order → Change (IW32). b) On Change Order: Initial Screen, notice that your maintenance order appears by default. Choose

(Enter).

c) On the Change Maintenance Order ####: Central Header screen, choose Extras → Cost reports → Planned/actual comparison. Note the plan and actual costs of your order. Hint: Within the order, you can also choose the Costs tab page and then choose the Report Planned/actual pushbutton. 2. What are the total planned costs? a) Answers may vary depending on the planning data. b)

Choose

(Back).

Task 3 Release the maintenance order. You have completed material planning and reviewed the planned costs. You can now release this maintenance order. 1. Release the maintenance order. a) On the Change Maintenance Order ####: Central Header screen, choose

(Release).

b) The Complete dialog box displays the details of the maintenance order. Verify the details and choose

(Enter).

2. Save the maintenance order. a)

Choose


(Save).

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Overall Completion Confirmations

Figure 245: Order Confirmation – Times and Activities

A completion confirmation documents the status of the processing of operations and suboperations for a maintenance or service order. It is a part of order monitoring. In addition to recording working times, you can also enter the activities performed in the notification, and enter measurement readings for the reference object. You can confirm the time required for work on a maintenance order in the following ways: Individual entry of time for each order operation

●

●

●

●

Collective entry by direct entry or using an operation list Overall completion confirmation (such as time, activities, measurement values, and so on) on a collective screen Entry using the Cross-Application Time Sheet (CATS)

You can enter the maintenance activities performed in the following ways: ● As maintenance notifications with notification type Activity report and assigned to the corresponding order ●

As confirmation texts that can be entered with confirmations of time (these texts are not as easy to structure and analyze as activity reports)

You can enter measurement readings as measurement documents for the reference object. Order Completion Process After you enter the completion confirmations for operations or suboperations in a maintenance order, the system automatically assigns the status PCNF (partially confirmed) to these operations or suboperations. If you have not made any setting in Customizing that a final completion confirmation should be proposed automatically, the system assigns the status.

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As soon as all the operations or suboperations in a maintenance order have been completely confirmed, the order itself is assigned the status CNF (finally confirmed). There is always a risk of completion confirmations being assigned to the wrong operations or suboperations or entered with the wrong data. The system, therefore, allows you to reverse completion confirmations if required. An internal maintenance operation is performed by a maintenance work center, which is assigned to a cost center. Therefore, the completion confirmation triggers an internal activity allocation between this cost center and the plant maintenance order, debiting the order with the costs. These costs are calculated by multiplying the recorded work time with the activity price. Overall Completion Confirmation

Figure 246: Overall Completion Confirmation

You use the overall completion confirmation if, in addition to the work time required, you also regularly confirm other data, such as materials used, information about damage, the work and services performed (such as tasks, activities, and so on), or measurement and counter readings. The overall completion confirmation enables you to confirm not only working times, but all the relevant details for an order on a single screen, configured to suit your individual requirements. Time confirmations and technical confirmations can therefore be processed in the same way. You also have the option of confirming an inspection round within the overall completion confirmation. If an activity is assigned a technical object and the corresponding counter (as production resource or tool), you can also record the counter readings or measurement values for the activity along with the actual times.


645


Show participants how to enter a planned withdrawal, record the progress of a maintenance order, and technically complete an order by using the data and steps from the Perform an Overall Completion Confirmation exercise.

646



Perform an Overall Completion Confirmation

Business Example The work of the order is complete. Now, complete the order and record the actual labor hours worked for the order. Maintenance personnel have started to work on the repair. They need the component TAS1##. Therefore, issue the material to the maintenance order. To record the progress of the maintenance order, enter a confirmation to record the number of labor repair hours. 1. Enter a planned material withdrawal. Use the movement type 261 goods issue to order. The material is issued from the plant 1000, storage location 0001. 2. Perform a completion confirmation. It took two hours to fix the pump. This activity is the final confirmation. There are no open reservations and no remaining work. 3. Save the confirmation.


647


Perform an Overall Completion Confirmation

Business Example The work of the order is complete. Now, complete the order and record the actual labor hours worked for the order. Maintenance personnel have started to work on the repair. They need the component TAS1##. Therefore, issue the material to the maintenance order. To record the progress of the maintenance order, enter a confirmation to record the number of labor repair hours. 1. Enter a planned material withdrawal. Use the movement type 261 goods issue to order. The material is issued from the plant 1000, storage location 0001. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Completion Confirmation → Goods Movement → Goods Movement (MB11). b) On Enter Goods Movement: Initial Screen, enter the following data: Field

Value

Movement Type

261

Plant

1000

Storage Location

0001

c) Choose the To Order pushbutton. d) In the Reference Order dialog box, enter your maintenance order number created earlier and choose e)

Choose

(Continue).

(Save) to save your entries.

f) To return to the SAP Easy Access screen, choose

(Exit).

2. Perform a completion confirmation. It took two hours to fix the pump. This activity is the final confirmation. There are no open reservations and no remaining work. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Completion Confirmation → Entry → Overall Completion Confirmation (IW42). b) Choose Extras → Settings. In the Settings dialog box, select PM0002. c) Save the selected profile. This activity restarts the transaction. Verify the message displayed in the status bar.

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Note: The profile determines the layout of the confirmation screen. d) On the Overall Completion Confirmation screen, enter the maintenance order number, if it does not appear by default. e)

Choose

(Enter).

f) Notice that your order number is now in the Time Confirmation tab page. For both operations, accept the default actual work hours. g) In the line items with your order number, select the checkboxes in the F and N columns. Note: F is final confirmation, C is clear open reservations, and N is no remaining work. 3. Save the confirmation. a)

Choose


(Save).

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650

●


●




Completing a Maintenance Order

LESSON OVERVIEW This lesson shows how to complete a maintenance order. Business Example Once all of the maintenance activities have been recorded, you need to complete the maintenance order. For this reason, you need the following knowledge: ●

An understanding of the order completion process



●


●


●


Maintenance Order Completion

Figure 247: Maintenance Order – Technical Completion Options

You have the following options to complete the maintenance order: ● Complete the maintenance order and notification separately ●

Complete the maintenance order together with assigned notifications


651


To complete the order and notification together, the notification must not contain any outstanding tasks. If there are any outstanding tasks (status OSTS) in a notification, you cannot complete the notification. You must first mark the tasks as finished. You can, however, complete the order belonging to the notification as the outstanding tasks may not necessarily belong to the order performed (in certain circumstances, a new order may be required for this). All notifications with outstanding tasks can be identified easily from their status (OSTS) and then processed. Maintenance Order – Technical Completion

Figure 248: Maintenance Order – Technical Completion

The maintenance order obtains the status TECO (technically completed). In other words, the maintenance work required for this order has been completed. A completed maintenance order can only be changed online in the following ways: Lock or unlock the maintenance order.

●

●

Set the deletion flag.

●

Enter goods movements that are still outstanding, and confirmations and invoice receipts.

●

Change the settlement rule.

If you have not maintained a settlement rule for the maintenance order, it is created automatically by the system. If this is not possible because of missing data, the system directs you to where the settlement rule can be maintained. All the purchase requisitions without purchase orders that still exist for the maintenance order are marked with a deletion flag. All open reservations and capacities that exist for the maintenance order are closed. Technical Completion – Reference date A reference date and time must be entered during the technical completion. This depends on what periods are assigned to the order in the Plant Maintenance Information System (PMIS).

652


Lesson: Completing a Maintenance Order

However, the reference date has no influence on the determination of the location and account assignment data. This date is determined and set to the date when the order is created. If, for example, the cost center of the equipment changes during the order processing, you can, if necessary, use the context menu (Update Reference Object Data) to update the order. You can find the following data in the maintenance history: ● Order data ●

Data from maintenance notifications

●

Usage histories

You can use this data for the evaluation of past work and the planning of new work. Reverse Technical Completion

Figure 249: Reverse Technical Completion

If required, you can reverse the status TECO. The order is given the status that it had before the technical completion. In other words, capacity requirements and reservations are restructured and the deletion indicator is reset for unconverted purchase requisitions.


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Maintenance Notification – Completion

Figure 250: Maintenance Notification – Completion

Before you complete a maintenance notification, check the following conditions: All data, which refers to the reference object for the maintenance notification, is available and correct.

●

●

All the relevant item data is available and correct.

●

All the relevant task data is available and correct.

●

All tasks have been completed or released. There are no more outstanding tasks.

●

All technical data related to the breakdown and availability of the technical system is available and correct.

The consequences of maintenance notification completion are as follows: ● The reference date and time determine the periods assigned to the notification in the PMIS. ●

●

The maintenance notification is locked for changes, which means that you can no longer change notification data. The notification is assigned the status NOCO (notification completed). Show participants the process of technically completing a maintenance order by using the data and steps from the Change the Status of a Maintenance Order to Technically Complete exercise.

654



Change the Status of a Maintenance Order to Technically Complete

Business Example The work on a maintenance order is complete. You need to close the order in the system. 1. Technically complete an order. 2. What are the consequences of technically completing an order?


655


Change the Status of a Maintenance Order to Technically Complete

Business Example The work on a maintenance order is complete. You need to close the order in the system. 1. Technically complete an order. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Order → Change (IW32). b) Enter the maintenance order number, if it does not appear by default. c)

Choose

(Enter).

d) On the Order screen, choose Order → Functions → Complete → Complete (technically). e) In the Complete dialog box, verify that the Complete notifctns checkbox is selected. By selecting this checkbox, you are also technically completing the notification. f) Choose

(Continue).

2. What are the consequences of technically completing an order? The order can no longer be changed. The order status equals TECO. The outstanding reservations are cleared. The outstanding capacity loads are removed. The outstanding purchase requisitions are assigned a deletion flag.

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Document Flow

Figure 251: Document Flow

All the document types created for a maintenance order can be displayed. Examples of document types are as follows: Notification

●

●

Completion confirmation

●

Goods movement

●

Purchase requisition

●

Purchase order

Action Log

Figure 252: Action Log


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An action log displays the changes to notifications, orders, equipment, and functional locations in chronological order. This enables you to track who has changed the data or status of which fields and when. To use this function, you must activate the creation of change documents for the respective objects.

Corrective Maintenance and Management Accounting

Figure 253: Support Process – Controlling

As your company wants to calculate the costs for personnel and materials at any phase in a maintenance order, subprocesses of the internal accounting system, such as Costing and Settlement, have to be integrated with order planning. From the perspective of Plant Maintenance, they are also support processes. You can run a cost analysis based on the costs calculated automatically in the maintenance order.

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Cost Analysis in the Maintenance Order

Figure 254: Cost Analysis in the Maintenance Order

You can display the expected costs in the following ways: ● At cost element level (Controlling view) ●

At value category level (Maintenance view)

In Customizing, you can assign cost elements to value categories. Show participants how to perform a cost analysis for a maintenance order by using the data and steps from the Compare Plan and Actual Costs for a Maintenance Order exercise.


659


660



Compare Plan and Actual Costs for a Maintenance Order

Business Example You need to perform cost analysis for a maintenance order. With the work already completed on a maintenance order, compare planned and actual costs for the order. 1. View the actual costs of your order for each value category. 2. Which value categories have actual costs?


661


Compare Plan and Actual Costs for a Maintenance Order

Business Example You need to perform cost analysis for a maintenance order. With the work already completed on a maintenance order, compare planned and actual costs for the order. 1. View the actual costs of your order for each value category. a) On the SAP Easy Access screen, choose Logistics → Plant Maintenance → Maintenance Processing → Order → Display (IW33). b) On the Display Order: Initial Screen, the order number created earlier appears by default. If your order number does not default, enter it now. c)

Choose

(Enter).

d) On the Display Maintenance Order ####: Central Header screen, choose the Costs tab page. Note: #### in the screen name is your order number. e) On the Display Maintenance Order ####: Cost Overview screen, verify the plan and actual costs of your order. 2. Which value categories have actual costs? Internal labor and internal materials/spares

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Maintenance Order Settlement

Figure 255: Maintenance Order Settlement

You can use the maintenance order to plan and execute maintenance work. This means that the order initially bears all the costs that result from the planning and consumption of resources. The costs generated by consuming the resources required appear on the debit side of the order as actual costs. You should answer the following questions to ensure that cost allocation and tracking adhere to the allocation-by-cause principle: ●

Is the order really the originator of the costs?

●

What is the role of the maintenance object or maintenance requester?

This is the basis of order settlement. Depending on the type of task, the order is settled to its actual originator and credited with the costs of resources consumed. Order costs are borne by another receiver which is also a cost accounting object. This can, for example, be the cost center of the maintenance object or the organizational unit that requested this work to be executed. Therefore, the order is merely a collector of all costs incurred during the planning and execution phases with the purpose of tracking them from a cost-related perspective. The routine maintenance tasks that arise through the technical administration of a specific maintenance object are generally settled to the cost center of this object. To perform technical administration of the maintenance object, the corresponding cost center must be specified as the receiver in the settlement rule for the order. The actual costs for the order are passed on to the cost center, which is debited. At the same time, these costs are credited to the order. The balance of actual costs for the order after complete settlement equals zero while the actual cost on the cost center is greater than zero.


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664

●


●


●


●



Unit 8

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Learning Assessment

1. During an internal order settlement, the system transfers the costs from the internal order to the equipment record. Determine whether this statement is true or false. X

True

X

False

2. After a user creates and saves a fixed asset record, an _____________ record can be created in SAP Enterprise Asset Management. Choose the correct answer. X

A equipment

X

B internal

X

C order settlement

X

D asset

3. An asset master record is always assigned to one company code for a given time period. Determine whether this statement is true or false. X

True

X

False

4. Which of the following options are the purposes of creating an internal order? Choose the correct answers. X

A Monitor overhead costs incurred for a particular purpose.

X

B Offset postings of accrued costs to cost centers.

X

C Monitor costs incurred in the production of a fixed asset.

X

D Replace the managerial accounting parts of Sales and Distribution (SD).


665


5. An internal order is created to collect costs for a fixed asset. Which of the following processes transfers these costs to the fixed asset? Choose the correct answer. X

A Order Settlement

X

B Order Release

X

C Order Creation

6. In the Purchasing function of which component are commitments for future costs are created? Choose the correct answer. X

A Materials Management (MM)

X

B Management Accounting

X

C Profitability

X

D Material Planning

7. Internal order settlement can occur periodically or at the end of the life of the order. Determine whether this statement is true or false. X

True

X

False

8. Which of the following elements are examples of possible receivers of a settlement? Choose the correct answers.

666

X

A Order

X

B Cost element

X

C Asset

X

D Sales order with cost collector



9. Which of the following are true statements regarding internal orders? Choose the correct answers. X

A Internal orders can settle costs to Financial Accounting (FI).

X

B An internal order can be true or statistical.

X

C A statistical order requires a settlement rule.

X

D Internal orders collect costs.

10. For which of the following elements does the Asset Explorer give a clear overview of the activity for an asset? Choose the correct answers. X

A Planned value

X

B Posted and planned depreciation

X

C Depreciation parameters

X

D Settled value

11. Depreciation is posted in Asset Accounting (AA) and general ledger (G/L) before the depreciation posting run is completed. Determine whether this statement is true or false. X

True

X

False

12. Depreciation areas in a fixed asset master record allow multiple valuation bases. Determine whether this statement is true or false. X

True

X

False

13. In addition to the posting key, what other value is necessary when posting to an asset account? Choose the correct answer. X

A Order type

X

B Transaction type

X

C Account type


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14. Which is the highest organizational level in SAP Enterprise Asset Management (SAP EAM)? Choose the correct answer. X

A Maintenance plant

X

B Client

X

C Maintenance planning plant

15. A maintenance planning plant is the organizational unit in which maintenance requirements are planned. Determine whether this statement is true or false. X

True

X

False

16. Functional locations are hierarchically ordered structures and could be used to represent a technical system, for example. Determine whether this statement is true or false. X

True

X

False

17. A piece of equipment must be assigned to a functional location. Determine whether this statement is true or false. X

True

X

False

18. Which of the following are technical objects? Choose the correct answers.

668

X

A Functional location

X

B Work center

X

C Bill of material

X

D Cost center



19. You create a material bill of material for similar pieces of equipment. In the equipment master record, which field do you use to assign the bill of material to that piece of equipment? Choose the correct answer. X

A Construction type

X

B Evaluations

X

C Usage

X

D Counter

20. In the corrective management process, which is the phase after the control phase? Choose the correct answer. X

A Planning

X

B Execution

X

C Completion

21. What are the reference objects for which you can create a maintenance notification? Choose the correct answers. X

A Functional location (with or without an assembly)

X

B Equipment (with or without an assembly)

X

C Material without a serial number

22. Which of the following elements are included in a maintenance order? Choose the correct answers. X

A Order operation

X

B Settlement rule

X

C Object list

X

D Activity report


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23. A non-stock item is assigned to a maintenance order. The order is released. Which of the following is created? Choose the correct answer. X

A An inventory reservation

X

B A purchase requisition

X

C A purchase order

X

D A material document

24. Which step comes after creating the purchase order in nonstock material procurement process flow? Choose the correct answer. X

A Technical completion

X

B Goods receipt

X

C Invoice

25. Which of the following activities can be performed after you release a maintenance order? Choose the correct answers. X

A Print shop papers.

X

B Post goods issue.

X

C Release payment for goods.

X

D Enter time confirmations.

26. Which of the following ways are used to confirm the time required for work on a maintenance order? Choose the correct answers.

670

X

A Individual entry

X

B Book entry

X

C Partial completion confirmation

X

D Overall completion confirmation



27. In which of the following ways you can complete a maintenance order? Choose the correct answers. X

A Complete the maintenance order and notification separately.

X

B Complete the maintenance order together with assigned notifications.

X

C Complete the maintenance order with outstanding tasks.

28. An action log displays the changes to _______________, _______________, _______________, and _______________________ in chronological order. Choose the correct answers. X

A notifications

X

B orders

X

C functional locations

X

D value category

X

E equipment

29. Which of the following data can be found in the maintenance history of equipment? Choose the correct answers. X

A Order data

X

B Data from maintenance notifications

X

C Depreciation data

X

D System data


671

Unit 8

638


1. During an internal order settlement, the system transfers the costs from the internal order to the equipment record. Determine whether this statement is true or false. X

True

X

False

2. After a user creates and saves a fixed asset record, an _____________ record can be created in SAP Enterprise Asset Management. Choose the correct answer. X

A equipment

X

B internal

X

C order settlement

X

D asset

3. An asset master record is always assigned to one company code for a given time period. Determine whether this statement is true or false. X

True

X

False

4. Which of the following options are the purposes of creating an internal order? Choose the correct answers.

672

X

A Monitor overhead costs incurred for a particular purpose.

X

B Offset postings of accrued costs to cost centers.

X

C Monitor costs incurred in the production of a fixed asset.

X

D Replace the managerial accounting parts of Sales and Distribution (SD).



5. An internal order is created to collect costs for a fixed asset. Which of the following processes transfers these costs to the fixed asset? Choose the correct answer. X

A Order Settlement

X

B Order Release

X

C Order Creation

6. In the Purchasing function of which component are commitments for future costs are created? Choose the correct answer. X

A Materials Management (MM)

X

B Management Accounting

X

C Profitability

X

D Material Planning

7. Internal order settlement can occur periodically or at the end of the life of the order. Determine whether this statement is true or false. X

True

X

False

8. Which of the following elements are examples of possible receivers of a settlement? Choose the correct answers. X

A Order

X

B Cost element

X

C Asset

X

D Sales order with cost collector


673


9. Which of the following are true statements regarding internal orders? Choose the correct answers. X

A Internal orders can settle costs to Financial Accounting (FI).

X

B An internal order can be true or statistical.

X

C A statistical order requires a settlement rule.

X

D Internal orders collect costs.

10. For which of the following elements does the Asset Explorer give a clear overview of the activity for an asset? Choose the correct answers. X

A Planned value

X

B Posted and planned depreciation

X

C Depreciation parameters

X

D Settled value

11. Depreciation is posted in Asset Accounting (AA) and general ledger (G/L) before the depreciation posting run is completed. Determine whether this statement is true or false. X

True

X

False

12. Depreciation areas in a fixed asset master record allow multiple valuation bases. Determine whether this statement is true or false.

674

X

True

X

False



13. In addition to the posting key, what other value is necessary when posting to an asset account? Choose the correct answer. X

A Order type

X

B Transaction type

X

C Account type

14. Which is the highest organizational level in SAP Enterprise Asset Management (SAP EAM)? Choose the correct answer. X

A Maintenance plant

X

B Client

X

C Maintenance planning plant

15. A maintenance planning plant is the organizational unit in which maintenance requirements are planned. Determine whether this statement is true or false. X

True

X

False

16. Functional locations are hierarchically ordered structures and could be used to represent a technical system, for example. Determine whether this statement is true or false. X

True

X

False

17. A piece of equipment must be assigned to a functional location. Determine whether this statement is true or false. X

True

X

False


675


18. Which of the following are technical objects? Choose the correct answers. X

A Functional location

X

B Work center

X

C Bill of material

X

D Cost center

19. You create a material bill of material for similar pieces of equipment. In the equipment master record, which field do you use to assign the bill of material to that piece of equipment? Choose the correct answer. X

A Construction type

X

B Evaluations

X

C Usage

X

D Counter

20. In the corrective management process, which is the phase after the control phase? Choose the correct answer. X

A Planning

X

B Execution

X

C Completion

21. What are the reference objects for which you can create a maintenance notification? Choose the correct answers.

676

X

A Functional location (with or without an assembly)

X

B Equipment (with or without an assembly)

X

C Material without a serial number



22. Which of the following elements are included in a maintenance order? Choose the correct answers. X

A Order operation

X

B Settlement rule

X

C Object list

X

D Activity report

23. A non-stock item is assigned to a maintenance order. The order is released. Which of the following is created? Choose the correct answer. X

A An inventory reservation

X

B A purchase requisition

X

C A purchase order

X

D A material document

24. Which step comes after creating the purchase order in nonstock material procurement process flow? Choose the correct answer. X

A Technical completion

X

B Goods receipt

X

C Invoice

25. Which of the following activities can be performed after you release a maintenance order? Choose the correct answers. X

A Print shop papers.

X

B Post goods issue.

X

C Release payment for goods.

X

D Enter time confirmations.


677


26. Which of the following ways are used to confirm the time required for work on a maintenance order? Choose the correct answers. X

A Individual entry

X

B Book entry

X

C Partial completion confirmation

X

D Overall completion confirmation

27. In which of the following ways you can complete a maintenance order? Choose the correct answers. X

A Complete the maintenance order and notification separately.

X

B Complete the maintenance order together with assigned notifications.

X

C Complete the maintenance order with outstanding tasks.

28. An action log displays the changes to _______________, _______________, _______________, and _______________________ in chronological order. Choose the correct answers. X

A notifications

X

B orders

X

C functional locations

X

D value category

X

E equipment

29. Which of the following data can be found in the maintenance history of equipment? Choose the correct answers.

678

X

A Order data

X

B Data from maintenance notifications

X

C Depreciation data

X

D System data


UNIT 9

Project Systems in SAP ERP

Lesson 1 Defining Project Structures Exercise 72: Create a Project with WBS Elements Exercise 73: Assign a Network to a Project

681 689 697

Lesson 2 Planning Project Dates Exercise 74: Plan Dates for a Project

700 707

Lesson 3 Planning Materials and Resources for a Project Exercise 75: Assign a Resource to an Activity

711 717

Lesson 4 Planning and Budgeting Project Costs and Revenues Exercise 76: Plan Costs for a Project Exercise 77: Assign a Budget to a Project

722 725 731

Lesson 5 Recording Project Activities Exercise 78: Enter Time Using CATS Exercise 79: Process a Project Systems Query

734 737 743

Lesson 6 Recording Actual Costs Exercise 80: Post a Material Transaction to a Project Exercise 81: Post an Actual Cost to a Project Exercise 82: Process an Actual Cost Report

746 749 753 755

Lesson 7 Performing Period-End Closing Activities Exercise 83: Process a Cost Forecast Report

758 761

Lesson 8


679

Unit 9: Project Systems in SAP ERP

Reviewing Integration Points

764

UNIT OBJECTIVES ●

Explain the purpose of work breakdown structures

●

Assign a network to a project

●

Use the project planning board

●

Plan dates for WBS elements

●

Assign materials to a project

●

Assign a resource to an activity

●

Plan project costs and revenues

●

Assign a budget to a project

●

Record the progress of a project

●

Analyze the progress of a project

●

Create Materials Management transactions that post costs to a project

●

680

Create Financial Accounting and Management Accounting transactions that record actual costs to a project

●

Perform period-end closing activities for a project

●

Discuss the integration points of project systems


Unit 9 Lesson 1 647

Defining Project Structures

LESSON OVERVIEW This lesson explains how to create a project. In this lesson, participants learn about different elements of a project structure. Business Example As a manager, you need to familiarize yourself with the master data required for a Project System (PS). For this reason, you require the following knowledge: ●

An understanding of the basic data used in a project

●

An understanding of the purpose of networks and activities



●


Project Structures

Figure 256: Project Characteristics


681


As an introduction to project management, discuss the characteristics of a project. Projects are tasks that have the following characteristics: ● Projects are usually complex and unique and involve a high degree of risk. ●

Projects have precise targets that are agreed on between the contractor and the sold-to party.

●

Projects are limited in duration and are cost and capacity intensive.

●

Projects involve several departments.

●

Projects are subject to specific quality requirements.

●

Projects are of strategic significance for the business carrying them out.

Projects are an integral part of the commercial processes of a business. Before you can control all the tasks that occur as part of project execution, you need a project-specific organizational form that should be in a position central to the user departments involved. The PS has no organizational structure of its own. You need to incorporate it into the existing structure by making assignments to the organizational units in Accounting and Logistics, thereby enabling the PS to present data in clear and differentiated ways. A project is assigned to only one controlling area, but each element of the work breakdown structure (WBS) can be assigned to different company codes. Project System Structuring Objects

Figure 257: Project System Master Data

A work breakdown structure (WBS) is a model of a project and shows the required project activities in a hierarchical form. It forms the control basis for planning costs, revenues, payments, scheduling, and budgeting. Activities show the flow of a project as well as the specific tasks involved in a project.

682


Lesson: Defining Project Structures

Individual tasks are linked to each other by relationships and can be further grouped together to form networks. Activities form the operative basis for planning and controlling dates, costs, and resources (personnel, machinery, production resources/tools (PRTs), and materials). When activities are assigned to WBS elements, the dates and costs defined in the individual activities are aggregated at the WBS level and can be evaluated. Activity funds already assigned are checked against the budgets of the WBS elements. Phases in a Project

Figure 258: Phases in a Project

Discuss the phases of a project. A project comprises several phases. Planning and coordinating large and complex projects require a high degree of precision. When planning the flow of a project, you can schedule deadlines and dates, make resources available, and assign budgets. The PS provides the support you need during all project phases.


683


Work Breakdown Structure

Figure 259: WBS – Functions

The WBS is the functional basis for the detailed planning of steps involved in controlling a project, for example, for process planning, cost planning, scheduling, and costing. The WBS gives a clear picture of the project and facilitates the coordination and implementation of the project from a management standpoint. The WBS shows the work involved in a project.

The WBS forms the basis for all subsequent planning tasks in the project. Emphasis is placed on planning, analysis, description, control, monitoring of costs, basic dates, and the budget. Costs, dates, resources, and payments are planned using the activities extrapolated to specific WBS elements.

684



Project Builder

Figure 260: Project Builder

The Project Builder is a user-friendly method of accessing the PS that enables you to edit your projects quickly and efficiently. The straightforward screen structure of the Project Builder is split into three areas to provide a comfortable working environment. The Project Builder also provides an overview of all the projects that interest you. Contextsensitive menus, drag-and-drop features, and the capability to define your own worklist and template pool facilitate your work with projects. Use the Project Builder or the project planning board to create and change the WBS. You can edit projects in either tabular or graphical mode.

Use the Project Builder to maintain any object in the PS except for the assignment of PRTs.


685


Operative Indicators of a Sample Cost Project and Account Assignment Objects

Figure 261: Cost Project Operative Indicators

You use operative indicators to define the characteristics of a WBS element and to specify which tasks are performed by the WBS element when the project is being executed. The operative indicators to define the characteristics of a WBS element are as follows: WBS elements for which you want to plan costs manually are flagged as planning elements.

●

●

●

WBS elements to which you want to post actual costs are flagged as account assignment elements. WBS elements to which you want to post revenues are flagged as billing elements.

The Statistic indicator specifies whether a WBS element is used only for statistical purposes or whether it works with real costs. In the example in this figure, you want to carry out planning as far as level 2 in the project hierarchy. WBS elements of level 3 and below are not planning elements.

686



Editing the Project Using the Project Builder

Figure 262: Editing the Project Using the Project Builder

Explain the different methods of creating WBS elements. Use the Project Builder to create or change objects in your project (project definition, WBS elements, activities, activity elements, PS texts, documents, milestones, and material components). Use detail screens, lists, and graphics (hierarchy graphics and network graphics) for this purpose. In addition to creating project structures manually, you can use any operative project structures (WBSs and networks) and standard structures (standard WBSs and standard networks) as templates. You can also include WBSs, standard WBSs, and standard networks in an existing project structure. When you create projects, you can copy and position both operative projects and standard projects with all the lower-level objects (WBS elements, activities, PS texts, documents, milestones, and components). Show participants how to create a project with WBS elements using the data and the steps from the exercise Create a Project with WBS Elements.


687


688



Create a Project with WBS Elements

Business Example As a part of your job, you need to create a project to build a turbine. Use Project Builder to create the project. 1. Create a project that has WBS elements.


689


Create a Project with WBS Elements

Business Example As a part of your job, you need to create a project to build a turbine. Use Project Builder to create the project. 1. Create a project that has WBS elements. a) On the SAP Easy Access screen, choose Logistics → Project System → Project → Project Builder (CJ20N). Hint: The first time that you enter Project Builder, the Project Builder: Options dialog box appears. It provides information on how you can set up user settings. Select the Skip this in future checkbox and choose

Enter.

In the Project Builder: User-specific options dialog box, enter 10 in the Hierarchy levels field so that you are able to see 10 levels of a project when it initally displays in Project Builder. Let the other fields remain as they are on the screen. Choose b) On the Project Builder screen, choose the Create project.

Continue.

pushbutton and then choose Copy

c) In the Create Project dialog box, enter the following details: Field

Value

Project Def.

T-200##

Description

Turbine Project Group ##

Start

Current date

Finish date

Current date + 1 year

d) In the Template screen area, enter T-20001 in the Std proj. Def field and deselect the With activities field. Choose

(Create project).

Note: On the Project Builder screen, flip the order of the values by right-clicking on the column heading Project Structure:Description (project object) and then choosing Display sequence → Identification – name.

690



e)

Save your project. An information message displays that your project is being created. Choose the OK pushbutton.


691


Network and Activities

Figure 263: Networks and Activities – Structures

The activities in a project describe the various steps and the work involved in them. In the Project Builder, you can create activities for WBS elements, meaning that the activities are assigned to the WBS elements and that the planned and actual data for the activities (dates, costs, and payment data) can be aggregated at the WBS element level. Activities are linked to each other by means of relationships, and this linking results in a chronological activity sequence. Activities also form the basis for planning the following quantity structures: Dates (occurring automatically through scheduling)

●

●

Costs (occurring automatically through costing)

●

Resources (including internal activities and external activities)

●

Material requirements (using the assigned components)

The PS has the following activity categories: ● Internal processing for capacities staged in your own company

692

●

External processing for tasks assigned externally

●

Services for procuring external services

●

Cost activities for planning additional primary costs



Activities and Networks – Functions

Figure 264: Activities and Networks – Functions

Use the activities in the network to plan resources, including labor, capacities, materials, tools, and services, that you require for your project. Network Structure Graphic

Figure 265: Network Structure Graphic

Explain that within the network graphic, all of the functions that you need to create a network are available. Explain the functions of relationships. All of the functions you need to create a network are available in the network graphic (for example, the functions for inserting activities or relationships). You can access the network


693


graphic from various functions in the PS (for example, the Project Builder, project planning board, or the information system). Cycle analysis is a function that you can only perform in the network graphic. A cycle is a closed sequence of relationships and activities. A closed cycle is a set of relationships wherein you start with one activity and ultimately end up back at the same activity by way of the defined relationships. If the activity-relationshipactivity path is cyclical, you will not be able to schedule the network. Cycle analysis is a tool that enables you to detect any cyclical relationships and correct them. PS Texts, Documents, and Milestones – Assignments

Figure 266: PS Texts, Documents, and Milestones – Assignments

PS texts, documents, and milestones are objects that can be assigned to WBS elements or activities. PS texts and documents are used for information purposes and for reporting. Milestones are used for information purposes, but they can also trigger functions in the project (for example, the billing of a sales order or the release of subsequent activities). PS texts are user-definable texts that are managed in a PS text catalog. The texts are classified into different text types. You can assign PS texts to one or more WBS elements or activities. Enter PS texts in SAP ERP, SAPscript, or Microsoft Word. The SAP ERP database stores the files in question. Use the SAP Document Management System (SAP DMS) in the PS to assign document info records to WBS elements and activities. In the DMS, assign original (external) documents in various formats (Excel, Word, PPT, BMP, TIFF, and CAD formats) to an (internal SAP ERP) document info record. In the project information system, you can display the document info records and the corresponding original documents online. You can also display the original documents using the Internet.

694



You can assign milestones to activities and WBS elements. Milestones have a range of applications. They can be used for milestone billing in Sales and Distribution, for example, and to start the automatic workflow of tasks. Show participants how to assign a network to a project using the data and steps from the exercise Assign a Network to a Project.


695


696



Assign a Network to a Project

Business Example In the previous exercise, you created the work breakdown structure of your project. You now want to provide additional steps to each of the WBS elements. Therefore, you will assign a network to your project. 1. Open the project last processed in Project Builder. 2. Create a network and assign it to the highest WBS element, T-200##. 3. Determine whether 1100 Engineering of running gear is an internal activity or an external activity.


697


Assign a Network to a Project

Business Example In the previous exercise, you created the work breakdown structure of your project. You now want to provide additional steps to each of the WBS elements. Therefore, you will assign a network to your project. 1. Open the project last processed in Project Builder. a) On the SAP Easy Access screen, choose Logistics → Project System → Project → Project Builder (CJ20N). b) On the Project Builder screen, in the Worklist: Project Object screen area, open Last Projects Processed and double-click your project T-200## (Turbine Project Group ##) to open it. 2. Create a network and assign it to the highest WBS element, T-200##. a) Choose the highest WBS element, T-200##, by clicking on it once. Choose the Create pushbutton, and then choose Copy network. In the Copy from... dialog box, on the Copy fr tab page, enter T-20001 in the Std network field. Choose b)

Enter Network Group ## in the description for Network. Choose

Continue. Enter.

c) In the Include standard network dialog box, choose the Adopt Assignment pushbutton. The information that scheduling has been carried out is displayed. Choose the OK pushbutton. d) As a result of the previous step, a network is created with a temporary number. Save your project. e) The information that the project has been changed is displayed. Choose the OK pushbutton. 3. Determine whether 1100 Engineering of running gear is an internal activity or an external activity. a) Go back to your project by choosing T-200## (Turbine Project Group ##) and note that the networks as well as the activities now have real numbers. b) Choose activity 1100 (Engineering of running gear). c) Compare the Internal and External tabs of activity 1100. How can you determine if this activity is an internal activity or an external activity? On the Internal tab page, the Work field contains the number of hours and the Control key is PS01. This defines the activity as internal. d) Exit the transaction.

698





●



699

Unit 9 Lesson 2 662

Planning Project Dates

LESSON OVERVIEW This lesson introduces the project planning board, which enables you to plan dates, resource assignments, costs, and materials. You can also use the project planning board as a tool to perform project structure maintenance. Business Example Your project contains scheduled network activities. You want to analyze the project schedule as well as the relationships between the activities. For this reason, you require the following knowledge: ●

An understanding of the project planning board



●


Project Planning Board

Figure 267: Aspects of Planning

700


Lesson: Planning Project Dates

The project planning board is a tool that enables you to process the entire project structure, work breakdown structure (WBS) elements, activities, and the objects assigned to the projects in an integrated environment. You can simulate projects at various stages and use this information for the following purposes: ●

To estimate costs, deadlines, and capacities during the quotation phase

●

To compare various options during the course of the project

You can then use the best option in your operative project.

Project systems allow you to plan in many different ways. You can plan the following facets: ● Resources ●

Dates

●

Materials

●

Revenue

●

Costs

●

Payments

●

Project Structures (PS)

Project Planning Board – Objects

Figure 268: Project Planning Board – Objects


701


The project planning board is a graphical interface that you use to create and edit data for a project. The data can be of the following types: ● Project definition, work breakdown structure (WBS) elements, activities, relationships, milestones, documents, and PS texts ●

Planning dates and resources (labor and external processing)

●

Cost planning, using activities

The project planning board is based on an interactive SAP GANTT chart. The project planning board provides important navigation options as follows: ● When you double-click certain points in the project planning board, you go directly to detail screens where you can change the field selection or the time settings. ●

●

When you right-click, all the functions available to you at this point are displayed. The options available will depend on exactly where on the screen you position your cursor. When you choose Select all and Show all dependent objects, all the objects in the project planning board are displayed.

Graphical Displays of a Project Planning Board

Figure 269: Graphical Displays of a Project Planning Board

Explain that for projects without networks, dates for WBS elements can be scheduled manually (as basic dates). You can use the project planning board to perform the following tasks:

702



●

●

●

Schedule dates manually by using your mouse Extrapolate basic dates from lower-level to higher-level WBS elements or pass on basic dates from higher-level to lower-level WBS elements Check the consistency of your scheduling data within the WBS structure

For projects with networks, activities can be used to schedule dates automatically. Scheduled dates (or earliest and latest dates for activities) are determined automatically when network activities are scheduled. Scheduled dates are determined for WBS elements by summarizing the scheduling data of the corresponding activities.

Using the project planning board, you can create data required for your project (first and foremost, the dates) and process and evaluate it. The combination of data in a table format and a graphical display provides you with a comprehensive overview of the project at any time. With the project planning board, you can perform the following tasks: Plan, check, and change dates

●

●

Plan, schedule, and check resources

●

Determine and distribute work

●

Compare capacity

●

Calculate costs

In addition to the project planning board, you can use other interfaces, for example, the Project Builder (PB), for planning and scheduling. You can use other reports for evaluation also. In the structure overview, you can view and compare the planned and realized dates. The central element of the project planning board is the Gantt chart. It consists of a table area and a diagram area that show the hierarchical setup of the project and the corresponding scheduling situation. You process the project in the Gantt chart. In addition to WBS elements and activities, you can show or hide other overviews, such as the capacity overview, in the lower area of the Gantt chart if necessary.


703


Basic Dates for WBS Elements

Figure 270: Basic Dates for WBS Elements

Using the project planning board, you can perform certain tasks. For example, you can select WBS elements and schedule the activities assigned to them. The dates of the assigned activities are summarized to determine the scheduled dates of the WBS elements (thin time bars in the project planning board) and can be copied as planned basic dates. The dates scheduled in the WBS can then be extrapolated within the project structure. In Customizing, you can configure the appropriate scheduling parameters or use predefined scheduling scenarios. You can use the project planning board to change these settings for a particular project. You can plan dates for individual WBS elements and also enter outline dates for your project in the project definition. In rough-cut planning, you specify dates for WBS elements that are binding for more detailed planning. You then use this rough-cut plan as the basis for more detailed planning or scheduling using networks. You can use several functions in date planning to compare, reconcile, and calculate dates at a later point in time.

704



Scheduling

Figure 271: Scheduling

In projects with networks, you can carry out scheduling to automatically derive the activity dates and WBS element dates. The scheduling parameters determine how scheduling is carried out. Networks are always scheduled forward and backward. In the scheduling parameters, the scheduling type specifies the direction in which you begin scheduling. The system determines the earliest dates of the activities by using forward scheduling and the latest dates of activities by using backward scheduling. The difference between the earliest and the latest dates of an activity is referred to as a float. A float can be zero or negative. If the float is negative, the activity is critical.

Hint: For processing dates that are directly assigned to activities, create time events and assign them to activities. For example, you can create, draft, review, and specify events and assign them to the first activity. You can add dates and texts for these events. The traffic lights indicate whether these events comply with the planned dates. For example, Progress Tracking for Networks is included in SAP ERP 6.0 Enhancement Package 3.

Use the exercise for the demonstration.


705


706



Plan Dates for a Project

Business Example As a manager, you need to familiarize yourself with the scheduling function so that you can plan dates for a project. Use the scheduling function to plan dates for the activities and WBS elements of a project in the project planning board. 1. To plan dates for project T-200##, open the project in the project planning board and display all the dependent objects. Extend the duration of activity 1000 (Engineering of Drawing/Calculation/Design) to 25 days. Look at the fields relevant to scheduling in the detailed screen for the activity. Determine the dates of all the objects using the Schedule function. The scheduling parameters are set in such a way that the basic dates for WBS elements assigned to activities are also determined automatically. To determine the basic dates for the level-1 WBS element also, extrapolate the dates in the project structure afterward. Save your date planning data and return to the SAP menu.


707


Plan Dates for a Project

Business Example As a manager, you need to familiarize yourself with the scheduling function so that you can plan dates for a project. Use the scheduling function to plan dates for the activities and WBS elements of a project in the project planning board. 1. To plan dates for project T-200##, open the project in the project planning board and display all the dependent objects. Extend the duration of activity 1000 (Engineering of Drawing/Calculation/Design) to 25 days. Look at the fields relevant to scheduling in the detailed screen for the activity. Determine the dates of all the objects using the Schedule function. The scheduling parameters are set in such a way that the basic dates for WBS elements assigned to activities are also determined automatically. To determine the basic dates for the level-1 WBS element also, extrapolate the dates in the project structure afterward. Save your date planning data and return to the SAP menu. a) Open project T-200## on the project planning board. To do so, on the SAP Easy Access screen, choose Logistics → Project System → Project->Project Planning Board → Change Project (CJ2B). Open your project by double clicking on Project Group ##). b)

If your project is collapsed, choose

(Turbine

(Show All Dependent Objects).

c) Double-click the Engineering of Drawing/Calculation/Design activity. Enter 25 in the Normal Duration field and choose

Continue.

d) Choose

(Turbine Project Group ##).

e) Choose

(Open/Close Bottom Window) and choose the Project Planning Board

pushbutton. Next, choose

(Select All) and then choose

(Schedule).

Hint: Depending on the scheduling parameters used and the start date originally planned for your project, the system displays a window at the bottom of the screen containing warning messages about scheduling. The warning message Start Date is in the Past: Today Scheduling means that the system used current date for scheduling instead of the original start date. Close the window by choosing

708

(Open/Close Bottom Window).



When you perform this step, the dates for all activities are redefined. The system also extrapolates activity dates for the assigned WBS elements. f) The changes that you made will also affect the dates defined for subsequent activities. To determine the new dates of these activities, choose choose Edit → Reconcile Dates → Extrapolate Dates.

(Deselect All), and then

Hint: You can configure the system in such a way that the dates are scheduled and extrapolated automatically when you save your data. g)

To save your changes, choose (Back).


(Save). To return to the SAP menu, choose

709



710

●


●



Unit 9 Lesson 3 671

Planning Materials and Resources for a Project

LESSON OVERVIEW This lesson explains how to plan materials and resources for a project. Business Example After you plan the dates of the project, you may also need to plan for materials and resources. For this reason, you require the following knowledge: ●

How to plan both stock and nonstock materials for a project

●

How to plan resources for a project



●


Stock Items

Figure 272: Materials in Projects

You plan material requirements by assigning material components to activities. Material requirements form the basis for procurement (whether the material is to be produced inhouse (production) or procured externally (purchasing)). You can manually assign material


711


components to activities. Alternatively, you can use the BOM-PS interface to assign bill of material (BOM) components automatically to activities. Materials establish the link between the Project System (PS) and Sales and Distribution (SD), Materials Management (MM), and Production Planning and Control (PP). By assigning materials to activities, you can plan the necessary material requirements for a project. A distinction is made between stock and nonstock items. Integration with MM and PP

Figure 273: Integration with MM and PP

The item category stock item is used for materials that are kept in stock (warehouse, project, or sales order stock). You create reservations for stock items. Independent requirements (requirements for finished products, saleable assemblies, trading goods, and spare parts) trigger requirements planning. To cover the requirements, you determine order quantities and dates and schedule the corresponding procurement elements. The procurement element for requirements planning is a planned order and, for external procurement, a purchase requisition. In addition, you determine the dependent requirements for materials produced in-house (in other words, the quantity of components required to manufacture a finished product or assembly) by exploding the bill of material (BOM). You can create planned orders at each BOM level to cover requirements when a material shortage occurs. After the quantities and dates are planned in requirements planning, you convert these planned procurement elements to exact procurement elements. For production, this element is the production order, and for external procurement, this element is the purchase order.

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Lesson: Planning Materials and Resources for a Project

Nonstock Items

Figure 274: Direct Procurement of Nonstock Items

The item category N (nonstock item) is used for components that are not procured by way of warehouse stock, project stock, or sales order stock but are procured directly by the network activity. Purchase requisitions are created for these components. These requisitions are passed directly to Purchasing. When the goods are received, they are not placed into stock but posted to the activity. Nonstock items cannot be managed as project stock or sales order stock.

Resource Planning

Figure 275: Resource Planning

Explain resource planning. Resource planning refers to the following points:


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●

●

Internal processes can be planned by means of internal processing activities. You can evaluate capacity requirements for work centers and use the project planning board to level capacities. At the same time, you can also use the project planning board to distribute the work among employees (workforce planning). External services can be planned by means of external processing or service activities. In this case, purchase requisitions are generated in Purchasing (at the latest when the activity is released). The purchasing department then procures the services in question externally.

You use the activities on a network to plan the resources required for a project. The PS draws a distinction between the following resources: ● Use an internally processed activity to determine the output to be provided by machines or personnel to complete the activity. Evaluate the capacities of the various work centers involved, reschedule these capacities as necessary, and distribute the work among employees. ●

Use an externally processed activity to specify the necessary services to be provided by other companies to complete the activity.

Carry out external processing through the purchasing department. Service activities are also used to procure services externally. There is a difference between service activities and externally processed activities. If you use service activities, you can draw up service specifications and set value limits for any unplanned services. The purchasing department carries out service processing (including the entry and acceptance of the services performed). Internal Processing

Figure 276: Internal Processing

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Explain the process for planning both internal processes and external processes. Enter work data for an activity so that the system can plan capacities for a project and calculate costs for activities. You need to specify the amount of work involved and the work center that will perform the work. Work is the output to be provided by machines or personnel to complete an activity. A work center is the place where an activity is carried out or work output is produced. Work centers contain data for costing activities. Work centers also contain the scheduling and capacity data necessary for scheduling and capacity planning. You can determine work center capacities for activities. If necessary, you can use the project planning board or the capacity planning tables to level capacities. You can also distribute the work among employees (workforce planning). Generally, when you confirm activities, you consume (reduce) capacity requirements and enter the actual dates and costs. External Processing

Figure 277: External Processing

You can create activities and activity elements as externally processed activities or external elements on a network (for example, you commission an engineering office to design a machine). When you create such an activity, a purchase requisition is also created and processed further in Purchasing. You can access data from Purchasing for external processing (a purchasing info record, for example, that contains prices and delivery times for external processing). You use the control key to determine whether an activity is externally processed. Show participants how to assign a resource to an activity using the data and the steps from the exercise Assign a Resource to an Activity.


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716



Assign a Resource to an Activity

Business Example Your project requires employees within your organization to work on some of the activities. Therefore, you need to perform a capacity check and assign the employees to the activities. For the internally processed activities in project T-200##, check the capacity load utilization for the assigned work centers. Distribute the planned work for an activity to different employees. This distribution can be used when you record the activities carried out by the employees as a default value for a Cross-Application Time Sheet. 1. Change activity 1200 Engineering of Case in project T-200## on the project planning board. The activity is now to be processed by the employees assigned to work center 2700. Activate the capacity requirements for your project for the assigned work centers and carry out scheduling again. Use the Capacity Overview on the project planning board to check the situation with regard to capacity for the assigned work centers. Display the capacity load utilization in this overview in a histogram and then call up an explanatory legend. Save the project. 2. Use the project view for the distribution of work to employees and profile 1302 to assign persons for activity 1200 Engineering of Case in project T-200##. To do this, choose person 1920+## from the list of proposed persons (for exercise group 01: 1921; for ##=02: the person with personnel number 1922, and so on). Display the availability of the person you have assigned. Schedule a total of 60 hours for the activity in the planned period (you may have to scroll the table to the right). Save the work distribution data and return to the SAP Easy Access screen.


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Assign a Resource to an Activity

Business Example Your project requires employees within your organization to work on some of the activities. Therefore, you need to perform a capacity check and assign the employees to the activities. For the internally processed activities in project T-200##, check the capacity load utilization for the assigned work centers. Distribute the planned work for an activity to different employees. This distribution can be used when you record the activities carried out by the employees as a default value for a Cross-Application Time Sheet. 1. Change activity 1200 Engineering of Case in project T-200## on the project planning board. The activity is now to be processed by the employees assigned to work center 2700. Activate the capacity requirements for your project for the assigned work centers and carry out scheduling again. Use the Capacity Overview on the project planning board to check the situation with regard to capacity for the assigned work centers. Display the capacity load utilization in this overview in a histogram and then call up an explanatory legend. Save the project. a) On the SAP Easy Access screen, choose Logistics → Project System → Project → Project Planning Board → Change Project (CJ2B). b) Choose

(Turbine Project Group ##) in the worklist (under Last Projects Processed).

c) To call up the detail screen for activity 1200 (Engineering of Case), double-click the activity. Enter the new value, 2700, in the Work Center field and then choose Continue. d) To activate the capacity requirements for your project for the assigned work centers, choose

(Select All) and then choose Edit → Functions → Activate Capacities. Then

reschedule your project by choosing

(Schedule).

e) Call up the capacity overview on the project planning board to analyze the situation with regard to capacities at the work centers. To do so, choose (Capacity Overview). An overview window appears in the lower part of the screen. Hint: The capacity overview shows the situation with regard to the capacities available in the work centers assigned to the project. Green bars show that the capacity of the work center is not used up, whereas red bars show that the capacity of the work center has been exceeded. You can also display a histogram showing the capacity requirements and the available capacity of individual work centers.

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To display the capacity load utilization as a histogram, select a work center (if possible, one with a red bar) on the left of the capacity overview and choose Load as Histogram from the context menu (right-click). To display a legend for the capacity overview, choose Display Legend from the context menu. f)

Close the legend and save your changes by choosing board by choosing

Save. Exit the project planning

Back.

2. Use the project view for the distribution of work to employees and profile 1302 to assign persons for activity 1200 Engineering of Case in project T-200##. To do this, choose person 1920+## from the list of proposed persons (for exercise group 01: 1921; for ##=02: the person with personnel number 1922, and so on). Display the availability of the person you have assigned. Schedule a total of 60 hours for the activity in the planned period (you may have to scroll the table to the right). Save the work distribution data and return to the SAP Easy Access screen. a) On the SAP Easy Access screen, choose Project System → Resources → Workforce Planning → Project View (CMP2). Enter the following data on the selection screen:

b)

Field

Value

Project

T-200##

Profile

1302

Choose

(Execute).

c) On the Workforce Planning: Project View screen, choose the row 1200 Engineering of Case and then choose

(Create Assignment).

d) Again, choose the row with personnel number 1920 + ## and then choose

(Assign).

e) On the Workforce Planning: Project View screen, choose (Availability pers. resource), then choose the row with the assigned person under the activity, and then choose (Availability pers. resource) again. To distribute the planned work, scroll the table to the right until you can enter hours for the periods and confirm your entries by choosing

Enter.

f) Schedule a total of 60 hours for the person so that the remaining work to be distributed for the activity (To Be Distributed column) is reduced to 170 hours. Enter 15 hours in the first four available columns. You may have to scroll to the right. g) Choose now 170.

(Enter) and save your entry. Note that the number of working hours are

Hint: In this example, one person is not enough to perform all of the work. You would normally have to schedule more persons (either persons belonging to or not belonging to the work center in question).


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h)

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Save your work distribution data, exit the transaction, and return to the SAP Easy Access screen.





●



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Unit 9 Lesson 4 682

Planning and Budgeting Project Costs and Revenues

LESSON OVERVIEW This lesson demonstrates how to plan project costs and revenues and how to assign a budget to a project. Business Example As a project manager, you first need to plan costs and any revenues if applicable. Based upon the planned values, you can then request budgeted funds. Once the budget is approved, you can assign the budget to your project. For this reason, you require the following knowledge: ●

An understanding of project cost and revenue planning

●

An understanding of assigning a budget

LESSON OBJECTIVES After completing this lesson, you will be able to:

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●


●



Lesson: Planning and Budgeting Project Costs and Revenues

Planned Costs and Revenues

Figure 278: Cost Planning in Projects

Explain the following methods for planning costs: ● Manual cost planning for work breakdown structure (WBS) elements by using structureoriented planning, cost-element-based detailed planning, or unit costing ●

●

Automatic cost planning by using the costing data of assigned activities Easy Cost Planning, enabling costs to be planned quickly and easily for WBS elements (If you use Easy Cost Planning to plan costs for WBS elements, you can then use Execution Services to enter the commitment and actual cost data.)

The types of cost planning in the work breakdown structure (WBS) elements are as follows: ● Structure-oriented planning In structure-oriented planning, you enter costs for each WBS element and break down your figures by fiscal year. ●

Detailed planning of primary costs and activity inputs Detailed planning of primary costs and activity inputs is cost element based and period based.

●

Unit costing Unit costing is cost element based. You use a profile to enter quantities (material, internal activities, external services, variable items, and so on) for each WBS element.

●

Easy Cost Planning


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Easy Cost Planning offers you an easy-to-use tool for planning costs by cost element in a quantity structure. You then use Execution Services to enter the commitment and actual data for the planned costs. In addition to manual planning in the WBS, you have the option of creating activities for WBS elements and using these activities to plan costs. This method has the following advantages: ● The resulting plan can be copied to new projects. ●

If parts of the project are shifted, cost planning is shifted automatically with the activities.

●

Planning using network activities is done by cost element and period.

Network Costing

Figure 279: Network Costing

When you plan dates and resources in network activities, the system automatically determines the corresponding planned costs as part of network costing. Planned costs are determined for the following objects: ● Activity inputs for internally processed activities (an internal activity) ●

Primary costs for externally processed activities and service activities (an external service)

●

Primary costs for general costs activities

●

Primary costs for material components

Activity elements are costed as if they were activities. Show participants how to plan costs for a project using the data and steps from the exercise Plan Costs for a Project.

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Plan Costs for a Project

Business Example Costs for customer project T-200## are planned by means of the quantity structure for the project activities. In addition to costs for internal activities, external activities, and materials, you now want to plan additional primary costs using further general costs activity and analyze the calculated costs in the project planning board. Create, calculate and, analyze costs. 1. Open project T-200## on the project planning board. Create a costs activity with activity number 1050 and description Additional Costs for WBS element T-200##.1 Engineering and Design. Use this activity to plan costs amounting to EUR 4,000 for the proposed cost element (466000). Redetermine the costs for the entire project (with new dates). Analyze the aggregate costs for the level-1 WBS element (T-200## Turbine) using the graphical cost overview on the project planning board. Save the changes you have made to your project and return to the SAP Easy Access screen.


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Plan Costs for a Project

Business Example Costs for customer project T-200## are planned by means of the quantity structure for the project activities. In addition to costs for internal activities, external activities, and materials, you now want to plan additional primary costs using further general costs activity and analyze the calculated costs in the project planning board. Create, calculate and, analyze costs. 1. Open project T-200## on the project planning board. Create a costs activity with activity number 1050 and description Additional Costs for WBS element T-200##.1 Engineering and Design. Use this activity to plan costs amounting to EUR 4,000 for the proposed cost element (466000). Redetermine the costs for the entire project (with new dates). Analyze the aggregate costs for the level-1 WBS element (T-200## Turbine) using the graphical cost overview on the project planning board. Save the changes you have made to your project and return to the SAP Easy Access screen. a) Open project T-200## on the project planning board. To do so, on the SAP Easy Access screen, choose Logistics → Project System → Project → Project Planning Board → Change Project (CJ2B). b) To create a new activity for WBS element T-200##.1, select WBS element T-200##.1 Engineering and Design on the left in the table area of the project planning board. Then choose

(Create).

c) The system displays a window on the left, containing different templates. Choose Individual Objects -> Activity and then double-click (Costs). In the project planning board overview, a new activity has been created under WBS element T-200##.1 Engineering and Design. Close the template area by choosing Window.

Open/Close Left-Hand

d) To call up the detail screen, choose the new activity in the table area. Change the costs activity data as follows: Field Name

Values

Activity

1050

Text (without caption)

Additional Costs

Amount

4,000 Leave the other fields as they are.

e) To return to the overview in the project planning board, choose

726

(Back).



f) Calculate the project costs again. To do so, select all the WBS elements and activities by choosing (Select All). Next, choose (Calculate Costs). If a dialog box appears stating that the dates have not been updated, update the project dates by choosing Yes in the dialog box for cost calculation. Hint: In the table area of the project planning board, you can see the calculated costs for the activities in the Project Cost Plan column. When activities are assigned to the WBS elements, the planned costs for the WBS elements are displayed in the aggregated form, meaning that the level-1 WBS element shows the planned costs for the entire project. From the detail screen for activities, you can call up both a planned and an actual comparison for the activities. You can run a cost report for selected WBS elements using the Extras menu. You can also use Cost Overview on the project planning board to carry out a graphical analysis of the distribution of the planned costs with regard to time. g) To analyze the aggregated planned costs of the top WBS element graphically, select only WBS element T-200## Turbine on the left in the table area and choose (Cost Overview). In the lower part of the project planning board, the planned costs are displayed in Cost/Revenue Overview, aggregated for the individual periods. h) i)

Save your changes. Exit the project planning board.


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Budgets

Figure 280: Cost Planning and Budgeting

The budget is the approved cost structure for a project. Having estimated the costs as accurately as possible, using the different tools during the planning phase, you then prescribe the funds available for your order in the form of a budget. While you must estimate your project costs as accurately as possible during cost planning, funds are assigned in the form of a budget in the approval phase. The budget differs from the project cost plan in that it is binding. The budget is the device by which the management approves the anticipated development of the project costs over a given period of time.

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Budgeting Overview

Figure 281: Budgeting Overview

Discuss the following points: Original budget

●

The original budget is the originally allocated budget. After a specified time, this budget can only be corrected by using budget updates. ●

Budget Updates Budget updates can be unforeseen events; additional requirements, for example, price increases for external activities; and so on. This may mean you need to update the original budget in the form of supplements, returns, or transfers.

●

Current budget The current budget is derived from the value Original budget + Supplements - Returns +/Transfers.

You need to use the maintain original budget transaction to assign funds to a project and its components. In the budget profile, you can specify whether funds are assigned as lump values or are distributed by year. You can prevent users from maintaining the overall project budget for a project by assigning appropriate user statuses. If you lock (freeze) the original budget in this manner, you can change it only by defining supplements, returns, and transfers. You can use the budget release function to make funds available at various points within a fiscal year. You can use the budget carry forward function to transfer any funds not used in the previous year to the budget of the new fiscal year.


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Assigned Funds and Availability Control

Figure 282: Assigned Funds and Availability Control

Discuss the process of availability control and its outcome. When a project is being executed, the available funds are committed to its various components. These commitments are created, and the actual costs are incurred. Together with the costs of apportioned orders, both these forms of fund commitments result in assigned funds. The funds overview can be regarded as passive availability control. However, the Project System (PS) also supports active availability control. The corresponding assigned funds are calculated and checked against the budget. The assigned funds can be found in the budgetbearing WBS element and in the lower-level assignable WBS elements. If certain tolerance limits are violated (a shortfall in the budget or a cost overrun in the budget), these limits can trigger various system responses. In Customizing for the tolerance limits, you can specify which response is to be triggered and when. Show participants how to assign a budget to a project using the data and steps from the exercise Assign a Budget to a Project.

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Assign a Budget to a Project

Business Example As a manager, you need to assign a budget to a project to be able to monitor the funds available for your project. A budget forms the cost structure for your project, enabling you to approve costs over a given time frame. 1. Assign a budget to project T-200 ## by using the following data: WBS element

Budget

T-200##.1

15000

T-200##.2

100000

T-200##.3

50000

T-200##.4

40000

T-200##.5

12000


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Assign a Budget to a Project

Business Example As a manager, you need to assign a budget to a project to be able to monitor the funds available for your project. A budget forms the cost structure for your project, enabling you to approve costs over a given time frame. 1. Assign a budget to project T-200 ## by using the following data: WBS element

Budget

T-200##.1

15000

T-200##.2

100000

T-200##.3

50000

T-200##.4

40000

T-200##.5

12000

a) On the SAP Easy Access screen, choose Logistics → Project System → Financials → Budgeting → Original Budget → Change (CJ30). b) On Change Original Budget: Initial Screen, enter T-200## in the Project Def. field and choose the Original Budget pushbutton. c) In the Change Original Budget: WBS Element Overview screen, enter the following data: WBS element

Budget

T-200##.1

15000

T-200##.2

100000

T-200##.3

50000

T-200##.4

40000

T-200##.5

12000

d) To total the budget, choose Edit → Total Up. e)

Save the budget.

f) If you receive any messages, choose the Yes pushbutton to save your entries. g)

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Exit the function.





●



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Unit 9 Lesson 5 694

Recording Project Activities

LESSON OVERVIEW This lesson introduces the transactions that allow employees to record the progress of a project. Explain that before you can post any actual costs to a project, you must release the project. Discuss that you can post actual data in Project Systems from the different applications in SAP ERP.

Business Example Because people start working on the various activities within a project, their progress needs to be recorded. You need to familiarize yourself with the different transactions that can be used to record the actual progress of a project. For this reason, you require the following knowledge: ●

An understanding of recording actual dates and actual work against a project



●


Actual Dates

Figure 283: Actual Dates for WBS Element

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Lesson: Recording Project Activities

Discuss that confirmations record the progress of activities. Explain the results of confirmations, including posting the actual costs, dates, and labor (work) and, if applicable, changing the activity status. Also, discuss the different options for entering confirmations. During the planning phase, you enter basic dates for the work breakdown structure (WBS) elements either by creating graphical time bars in the project planning board or by posting direct entries in the master data. In the execution phase, you can set actual dates in the same way as in the project planning board. The Partially Released or Released status must be set before you can enter the actual start and end dates for WBS elements. To monitor dates in the project, compare the basic dates with the actual dates, that is, compare the planned dates with the actual dates or forecasted completion dates. You can use the project planning board or structure information system for analysis purposes.

Employee Time Recording

Figure 284: Cross-Application Time Sheet

Explain that once time is entered on a time sheet, it can be approved and then transferred to different applications. Cross-Application Time Sheet (SAP CATS) is an integrated function for entering actual time data important in Human Resources (HR), Project System (PS), Plant Maintenance (PM), Customer Service (CS), and Controlling (CO). You can determine the layouts by using data entry profiles.


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Enter Time Using CATS

Business Example You need to familiarize yourself with the CATS function, which is used for entering actual time. You need to know about this function to be able to approve the time entries and then transfer these to different applications. In this example, use CATS to record time against a network activity. Enter time using CATS, approve it, and then transfer it to different applications. 1. Release the project T-200## using the project builder. 2. Record time using CATS. Enter your personnel number 1920 + ## and Data Entry Profile 1301. 3. Transfer the time recorded.


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Enter Time Using CATS

Business Example You need to familiarize yourself with the CATS function, which is used for entering actual time. You need to know about this function to be able to approve the time entries and then transfer these to different applications. In this example, use CATS to record time against a network activity. Enter time using CATS, approve it, and then transfer it to different applications. 1. Release the project T-200## using the project builder. a) On the SAP Easy Access screen, choose Logistics → Project Systems → Project → Project Builder (CJ20N). b) Under Last Projects Processed, choose projectT-200##. Verify that the project definition is highlighted. On the Project Builder: Project T-200## screen, choose Edit → Status → Release. The system indicates that the status is set. Choose the OK pushbutton. Verify that on the Basic Data tab page, the System Status field displays REL. c)

Save your project. The information that project T-200## is being changed is displayed. Choose the OK pushbutton.

d) Choose

Exit to exit the function.

2. Record time using CATS. Enter your personnel number 1920 + ## and Data Entry Profile 1301. a) On the SAP Easy Access screen, choose Logistics → Project Systems → Progress → Confirmation → Time Sheet → CATS Classic → Record Working Times (CAT2). b) On the Time Sheet: Initial Screen, enter the following data: Field

Value

Data Entry Profile

1301

Key date

Today’s date + 1 month

Personnel Number

1920 + ##

c) Choose

(Enter Times).

d) On the Time Sheet: Data Entry View screen, choose the first line of the Activity and choose

(Copy Row). This action copies the selection down to the Data Entry area.

e) In the Data Entry area, enter the values representing the number of hours worked. Enter 2 hours for the first, second, and third days.

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f)

Save your entries. The information that your data has been saved displays. Choose the OK pushbutton. Exit the function.

3. Transfer the time recorded. a) On the SAP Easy Access screen, choose Logistics → Project Systems → Progress → Confirmation → Time Sheet → Transfer → All Components (CATA). b) On the Time Sheet: Transfer To Target Components screen, under Target Components, enter 1920 + ## in the Personnel Number field. c) In the Target Components screen area, choose the Project System field. d) Deselect the Test Run checkbox under Control Parameters. e)

Choose

(Execute).

f) A message is displayed that the confirmation of the network has been saved. Choose the OK pushbutton. Note that there are three time entries that are transferred. g)

Exit the function.


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Project System Analytics

Figure 285: Information Systems – An Overview

You can use the following information systems to evaluate key figures for your project: The structure information system

●

●

●

●

The cost, revenue, and payment (Controlling) information system with hierarchy reports, cost element reports, and SAP List Viewer for line items Capacity analysis The order report, lists of reservations, purchase requisitions, purchase orders pertaining to the project, and ProMan

●

The stock or requirements overview

●

Progress analysis and progress tracking

●

SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

The following reports and systems are available for cross-project evaluations: ● Project summarization

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●

Executive Information System

●

Profit Center Accounting reports

●

Profitability Analysis reports



Structure Information System – Functions

Figure 286: Structure Information System – Functions

The structure information system is not merely a tool for displaying information, but you can also edit project structures from the reports. If you have a multilevel product structure with production and planned orders (assigned to work breakdown structure (WBS) elements), the entire structure is displayed in the structure overview and can be edited. You can also call up other assigned orders to change or display objects. From the information system, you can confirm activities and initiate pools of confirmation or confirmation workflows.

Show participants how to process a project systems query using the data and the steps from the exercise Process a Project Systems Query.


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Process a Project Systems Query

Business Example You need to analyze the progress of a project, for example, checking its details. For this reason, you need to know how to process a Project Systems Query. 1. Process a project systems report for project T-200##.


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Process a Project Systems Query

Business Example You need to analyze the progress of a project, for example, checking its details. For this reason, you need to know how to process a Project Systems Query. 1. Process a project systems report for project T-200##. a) On the SAP Easy Access screen, choose Logistics → Project System → Information System → Structures → Structure Overview (CN41). Note: The first time Project Info System: Structure Initial Screen displays, the Enter Profile dialog box pops up automatically. If it does not appear, choose the PS Info profile pushbutton. Enter YIDES_130000 in the PS Info profile field and choose

Continue.

The information that the profiles are copied displays. Choose the OK pushbutton. b) Enter T-200## in the Project field. c)

Choose

(Execute).

d) The Project Info System: Structure Overview screen displays. Verify that for activity 1200, there are values in the Actl. Start and Finish fields as a result of recording times using CATS. Verify that there are actual costs in the Actual Costs field. e)

Exit the report.

f) The Exit Info System message appears. Choose the No pushbutton and exit to the SAP Easy Access screen.

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●



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Unit 9 Lesson 6 706

Recording Actual Costs

LESSON OVERVIEW This lesson shows how costs are incurred from Materials Management, Financial Accounting, and Controlling transactions post actual costs to a project. Business Example One of your job responsibilities is to record actual costs against a project. For this reason, you require the following knowledge: ●

An understanding of Materials Management (MM), Financial Accounting (FI), and Management Accounting transactions


●

Create Materials Management transactions that post costs to a project Create Financial Accounting and Management Accounting transactions that record actual costs to a project

Materials Management Postings

Figure 287: Integration – Purchasing Process

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Lesson: Recording Actual Costs

Using the steps listed on the slide, explain the purchasing process. The network generates purchase requisitions for external processing activities, service activities, and materials that are procured directly. These purchase requisitions are passed on to the purchasing department for further processing. The purchasing process involves issuing a request for quotations to vendors (if applicable), entering these quotations in the system, selecting vendors, converting the purchase requisitions into purchase orders, and monitoring the orders until the goods and invoices are received. A service activity triggers a similar purchasing process but can also contain a hierarchy of planned services to be purchased and value limits for unplanned services. The goods receipt for services involves the following steps: 1. Entering the services performed 2. Accepting the services performed


747


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Post a Material Transaction to a Project

Business Example As part of your job, you need to issue the turbine casing material to a project. 1. Issue material T-20101##, which is a turbine casing, to the Production WBS element T-200##.4.


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Post a Material Transaction to a Project

Business Example As part of your job, you need to issue the turbine casing material to a project. 1. Issue material T-20101##, which is a turbine casing, to the Production WBS element T-200##.4. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement (MIGO). b) On the Initial screen, ensure that Goods Issue displays in the transaction field and Other in the reference field. Enter 221 in the GI for project field. Choose Enter. Note: You may receive a dialog box mentioning that you are changing the default values. Choose Enter to continue. c) If the Detail data section is not expanded, choose the Detail data pushbutton to expand it. d) On the Material tab page, enter T-20101## in the Material field. e) On the Quantity tab page, enter 1 in the Qty in Unit of Entry field. f) On the Where tab page, enter the following data: Field

Value

Movement Type

221

Plant

1300

Storage Location

0001

g) Choose Enter. The Account Assignment tab appears. h) On the Account Assignment tab page, enter T-200##.4 in the WBS Element field. Choose the Check pushbutton to check the transaction. Choose the OK pushbutton in the Information dialog box. i) Choose

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(Post). The information that the material document has posted displays.

Choose

(OK).

j) Choose

(Exit)



Financial Postings

Figure 288: Assignment of Documents

A purchase requisition that is generated through the Project System (PS) integration process results in purchase requisition posting in commitments for the account assignment object (activity or work breakdown structure (WBS) element). When the purchase requisition is converted into a purchase order, this results in purchase order commitments for the account assignment object. (This object is a different value type than purchase requisition commitments.) Depending on the account assignment category of the purchase order, you can post the actual costs upon the receipt of the goods or their invoice (valuated or nonvaluated goods receipt). Based on the account assignment, the system passes the relevant documents concerning goods movement on to the network activity or WBS elements. As an alternative to having the network generate the purchase requisitions automatically, you can also manually create purchase requisitions and purchase orders and assign them to WBS elements. The figure shows business transactions that establish a connection to WBS elements or activities by using an assignment. By assigning the appropriate documents, the resulting commitment or actual costs are posted directly to a WBS element or the network or activity. During the project planning phase, these costs were planned accordingly. Examples of costs that you can plan are as follows: ● Costs for purchase requisitions, purchase orders, and goods receipts at the network or activity level, using externally processed activities, service activities, or material components that are procured directly ●

Stock withdrawn from the warehouse using the appropriate stock items


751


●

Invoices posted by using cost activities and costs arising as a result of confirmations by using internally processed activities

Actual costs and revenues arising from purchase requisitions, purchase orders, goods receipts, activity allocations, and invoices for WBS elements match the values of the primary costs, activity input, and revenue planning data for the WBS. Show participants how to post actual costs to a project and how to process actual cost reports by using the data and steps from the exercises Post an Actual Cost to a Project and Process an Actual Cost Report.

752



Post an Actual Cost to a Project

Business Example As a part of your job, you post actual costs to a project. The engineering and design team has incurred some expenses that need to be posted to the Engineering and Design T-200##.1 WBS element. 1. Post a document with company code 1000. Enter currency EUR. Enter 476900 and 113100 as G/L accounts. Enter 1200 as the amount. Use T-200##.1 as the WBS element and 0I as the tax code.


753


Post an Actual Cost to a Project

Business Example As a part of your job, you post actual costs to a project. The engineering and design team has incurred some expenses that need to be posted to the Engineering and Design T-200##.1 WBS element. 1. Post a document with company code 1000. Enter currency EUR. Enter 476900 and 113100 as G/L accounts. Enter 1200 as the amount. Use T-200##.1 as the WBS element and 0I as the tax code. a) On the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Document Entry → Enter G/L Account Document (FB50). If you receive a dialog box requesting the company code, enter 1000 in the Company Code field and choose Enter. b) On the Enter G/L Account Document screen, enter the following data: Field

Value

Document Date

Posting Date

Currency

EUR

c) In the Items section, enter the following data: Field

Value

G/L acct (1st row)

476900

D/C

Debit

Amount in doc.curr.

1200

WBS Element

T-200##.1

Tax Code

0I

G/L acct (2nd row)

113100

D/C

Credit

Amount in doc.curr.

1200

d) Choose Enter. Verify that the debits and credits are the same and that a green light appears under the Amount Information area. e)

754

Save your data. If there are any messages about the budget, confirm them.



Process an Actual Cost Report

Business Example As a manager, you are responsible for reviewing and analyzing actual project costs. For this reason, you need to be able to process an actual cost report for one or more projects. Process an actual cost report. 1. Process a cost record for project T-200##. Enter 1000 as the Controlling Area. Use T-200##.1 Engineering and Design as the WBS element.


755


Process an Actual Cost Report

Business Example As a manager, you are responsible for reviewing and analyzing actual project costs. For this reason, you need to be able to process an actual cost report for one or more projects. Process an actual cost report. 1. Process a cost record for project T-200##. Enter 1000 as the Controlling Area. Use T-200##.1 Engineering and Design as the WBS element. a) On the SAP Easy Access screen, choose Logistics → Materials Management → Project System → Information System → Financials → Costs → Plan-Based → By Cost Element → Actual/Plan/Variance Absolute/Variance % (S_ALR_87013543). Hint: In the Database Profile field, choose the 000000000001 Standard Selection Structure database profile and choose

Continue.

b) On the Act/Plan/Variance Abs./ % Var.: Selection screen, enter the following data: Field

Value

Project

T-200##

Controlling Area

1000

From Fiscal Year

2012

To Fiscal Year

2012

From Period

1

To Period

12

c) Choose

(Execute)

d) On the Actual/Plan/Variance screen, the project structure is displayed with actual costs recorded as well as the planned costs. Go to the structure and choose WBS element T-200##.1 Engineering and Design and then choose the Cost Elements line. e) In the dialog box, choose Project actual cost line items to see the actual cost line item. Choose the Object and then choose the Val/ COArea Crcy 156,75 field. f) On the Display Document: Data Entry View screen, choose the Header pushbutton and in the dialog box, verify that the Entered by has your user ID. Choose g)

756

Back.

Exit the report and return to the SAP Easy Access screen.




●

Create Materials Management transactions that post costs to a project Create Financial Accounting and Management Accounting transactions that record actual costs to a project


757

Unit 9 Lesson 7 718

Performing Period-End Closing Activities

LESSON OVERVIEW This lesson explains period-end closing activities for a project. Business Example Many different types of period-end closing activities can be scheduled for a project. Some of these activities can post indirect costs to a project. Other activities involve analyzing the projected costs or revenues of a project. For this reason, you require the following knowledge: ●

An understanding of the functions of each of the period-end closing activities of a project

●

An understanding of settling projects



Period-End Activities

Figure 289: Period-End Closing – Processes

Period-end closing is the framework for carrying out period-related commercial transactions. You use it to ensure that you have determined all the data belonging to a period and that the data is available for enterprise control purposes.

758


Lesson: Performing Period-End Closing Activities

You perform period-end closing procedures periodically in the background, usually once every period. You generally carry out the procedures for the previous month at the start of the next month. You can use the Schedule Manager to help you carry out period-end closing. The Schedule Manager supports automatic workflows for Financial Accounting (FI), Controlling (CO), and Project System (PS). Settlement – Debit and Credit

Figure 290: Settlement – Debit and Credit

You collect costs and revenues in projects only temporarily and settle them for one or more receivers as a part of period-end processing. Settlement is the process in which the actual costs incurred for WBS elements, networks, and activities are allocated, in whole or in part, to one or more receivers. In the process, the system generates offset entries crediting the project. The debit postings remain in the receivers after settlement. You can display the debit postings in the information system. You can record the settled costs in the relevant receiver and evaluate them in reporting. Actual costs and actual revenues arise in a project or order as a result of the following situations: ● Material withdrawals and goods receipts ●

Vendor invoices

●

Customer billing

●

Internal activity allocations, transfers, cost distribution, process costs, and overheads

●

Confirmation of network activities

In settlement, costs or revenues are transferred to the following departments: ● FI (G/L account)


759


●

Asset Accounting (fixed assets)

●

Cost Accounting 00 or Profitability Analysis (order, cost center, and profitability segment)

●

Project System (WBS elements, networks, and activities)

You need settlement rules to carry out settlements. You can define a settlement rule in the sender object. The settlement rule contains distribution rules and settlement parameters for a sender object. Show participants how to process a cost forecast report by using the data and steps from the exercise Process a Cost Forecast Report.

760



Process a Cost Forecast Report

Business Example As a project manager, you are responsible for not only reviewing current actual costs, but also analyzing the projected costs for your project. 1. Process a cost forecast report for the project definition T-200##.


761


Process a Cost Forecast Report

Business Example As a project manager, you are responsible for not only reviewing current actual costs, but also analyzing the projected costs for your project. 1. Process a cost forecast report for the project definition T-200##. a) On the SAP Easy Access screen, choose Logistics → Project System → Financials → Period-End Closing → Single Functions → Cost Forecast → Individual Processing (CJ9L). b) On the Cost Forecast screen, enter T-200## in the Project Definition field. c) Enter PS: Cost Forecast in the Version field. d) Deselect the Test Run checkbox and select the Details Lists checkbox. e)

Choose

(Execute). The Cost Forecast: Basic List report appears.

f) Verify that the report is processed without any errors and choose the Detail list pushbutton. g) On the Cost Forecast: Value List screen, under Detail list, review the updated residual costs and the updated overall costs for the first activity 0200 of your network. h)

762

Exit the report.


Lesson: Performing Period-End Closing Activities




763

Unit 9 Lesson 8 724

Reviewing Integration Points

LESSON OVERVIEW This lesson provides an overview of the integration between the Project System (PS) and other application components. Business Example You need to familiarize yourself with the integration points between PS and the other SAP applications. For this reason, you require the following knowledge: ●

How daily transactions integrate with PS



Integration Points

Figure 291: Integration Points of Project Systems

A high degree of integration between the PS and other application components means that one can plan, execute, and account for projects as part of normal commercial processes. This integration indicates that the PS has constant access to data in all the departments involved in the project.

764


Lesson: Reviewing Integration Points

The PS integrates with the following SAP applications: Financial Accounting (FI)

●

You can post the expense postings from either work breakdown structure (WBS) elements or network activities in the General Ledger (G/L). Revenue postings from WBS elements, triggered by billing activities, are also posted first in the G/L. The WBS elements and network activities are also posted on the G/L document line item. These postings are then passed to the respective receivers. ●

Management Accounting A project can be a real Controlling (CO) object in which case it is a receiver and sender of costs. Objects of PS, if assigned to an account, participate in both financial and cost account activities.

●

Enterprise Asset Management You can create a project to monitor and plan large complex maintenance activities within an organization.

●

Sales and Distribution (SD) Revenue-bearing projects integrate with SD. A sales quote can start the PS process based on a customer’s inquiry. You can then convert that quote to a sales order. The sales order is assigned to a revenue WBS element. At the time of customer billing, you can post the revenue to the project.

●

Production Planning (PP) In cases in which you require manufacturing activities during the project, you can assign production orders to the project structures.

●

Human Capital Management (HCM) You can assign human resources to the project and record their production time against the project using Cross-Application Time Sheets (CATS).

●

Materials Management (MM) You can create reservations in inventory management for stock items for the project. If you need external services or nonstock items for the project, you can create purchase requisitions either when you save the project or when you release the project. Purchasing can then convert these purchase requisitions to purchase orders. You can also enter goods receipts for nonstock items, service receipts service acceptances for external services, and goods issue transactions for stock items.




765


766


Unit 9

727

Learning Assessment

1. The purpose of a work breakdown structure (WBS) is ____________________. Choose the correct answers. X

A to show the project activities to be fulfilled

X

B to schedule deadlines and dates

X

C to give a clear picture of the project

X

D to detect cyclical relationships and correct them

2. A project definition represents the hierarchical structure of a project. Determine whether this statement is true or false. X

True

X

False

3. Which of the following describes the various steps and work involved in the project? Choose the correct answer. X

A Project definition

X

B WBS element

X

C Network activity

X

D Activity element

4. Which of the following are types of network activities? Choose the correct answers. X

A Internal

X

B Settlement

X

C External

X

D Purchasing


767


5. Within the Project Planning Board, you can plan, check, or change dates. Determine whether this statement is true or false. X

True

X

False

6. While planning work breakdown structure (WBS) dates, the system determines the earliest dates of the activities with backward scheduling and the latest dates with forward scheduling. Determine whether this statement is true or false. X

True

X

False

7. Both stock and nonstock items can be planned in a project. Which field determines if the material is a stock or nonstock item? Choose the correct answer. X

A Item Category

X

B Project Type

X

C Activity Element

8. While assigning resources to an activity, a work center is used to carry out which of the following tasks? Choose the correct answers. X

A Produce work output.

X

B Perform scheduling.

X

C Enter services performed.

X

D Perform capacity planning.

9. When you plan dates and resources in network activities, the system automatically determines the corresponding planned costs as part of network costing. Determine whether this statement is true or false.

768

X

True

X

False



10. You have assigned a budget to a WBS element. Which of the following checks assign funds against the budget? Choose the correct answer. X

A Settlement

X

B Availability Control

X

C Results Analysis

X

D Cost Forecast

11. A Cross-Application Time Sheet (CATS) is an integrated function for entering the actual time when recording the progress of a report. Determine whether this statement is true or false. X

True

X

False

12. Which of the following reports and systems are available for cross-project evaluations to analyze the progress of the project? Choose the correct answers. X

A Project summarization

X

B Executive Information System

X

C Profit Center Accounting reports

X

D Structure information system

13. Which of the following post actual costs to a project? Choose the correct answers. X

A Posting a good receipt

X

B Creating a purchase requisition

X

C Processing a cost forecast

X

D Entering a confirmation


769


14. While creating materials management transactions, the network generates a __________________ for external processing activities, and it is then passed on to the purchasing department for further processing. Choose the correct answer. X

A material document

X

B purchase requisition

X

C purchase order

X

D goods receipt

15. Which of the following can be assigned to a network activity? Choose the correct answers. X

A A purchase requisition

X

B A budget

X

C A material component

X

D A sales order

16. Actual and plan revenues can be posted to a network activity Determine whether this statement is true or false. X

True

X

False

17. Which of the following are period-end closing activities for a project? Choose the correct answers.

770

X

A Settlement

X

B Indirect Activity Allocation

X

C Availability Control

X

D Results Analysis



18. In which of the following SAP applications with which your Project System integrates, you create a project to monitor and plan maintenance activities within an organization? Choose the correct answers. X

A Sales and Distribution

X

B Production Planning

X

C Enterprise Asset Management

X

D Financial Accounting


771

Unit 9

732


1. The purpose of a work breakdown structure (WBS) is ____________________. Choose the correct answers. X

A to show the project activities to be fulfilled

X

B to schedule deadlines and dates

X

C to give a clear picture of the project

X

D to detect cyclical relationships and correct them

2. A project definition represents the hierarchical structure of a project. Determine whether this statement is true or false. X

True

X

False

3. Which of the following describes the various steps and work involved in the project? Choose the correct answer.

772

X

A Project definition

X

B WBS element

X

C Network activity

X

D Activity element



4. Which of the following are types of network activities? Choose the correct answers. X

A Internal

X

B Settlement

X

C External

X

D Purchasing

5. Within the Project Planning Board, you can plan, check, or change dates. Determine whether this statement is true or false. X

True

X

False

6. While planning work breakdown structure (WBS) dates, the system determines the earliest dates of the activities with backward scheduling and the latest dates with forward scheduling. Determine whether this statement is true or false. X

True

X

False

7. Both stock and nonstock items can be planned in a project. Which field determines if the material is a stock or nonstock item? Choose the correct answer. X

A Item Category

X

B Project Type

X

C Activity Element


773


8. While assigning resources to an activity, a work center is used to carry out which of the following tasks? Choose the correct answers. X

A Produce work output.

X

B Perform scheduling.

X

C Enter services performed.

X

D Perform capacity planning.

9. When you plan dates and resources in network activities, the system automatically determines the corresponding planned costs as part of network costing. Determine whether this statement is true or false. X

True

X

False

10. You have assigned a budget to a WBS element. Which of the following checks assign funds against the budget? Choose the correct answer. X

A Settlement

X

B Availability Control

X

C Results Analysis

X

D Cost Forecast

11. A Cross-Application Time Sheet (CATS) is an integrated function for entering the actual time when recording the progress of a report. Determine whether this statement is true or false.

774

X

True

X

False



12. Which of the following reports and systems are available for cross-project evaluations to analyze the progress of the project? Choose the correct answers. X

A Project summarization

X

B Executive Information System

X

C Profit Center Accounting reports

X

D Structure information system

13. Which of the following post actual costs to a project? Choose the correct answers. X

A Posting a good receipt

X

B Creating a purchase requisition

X

C Processing a cost forecast

X

D Entering a confirmation

14. While creating materials management transactions, the network generates a __________________ for external processing activities, and it is then passed on to the purchasing department for further processing. Choose the correct answer. X

A material document

X

B purchase requisition

X

C purchase order

X

D goods receipt

15. Which of the following can be assigned to a network activity? Choose the correct answers. X

A A purchase requisition

X

B A budget

X

C A material component

X

D A sales order


775


16. Actual and plan revenues can be posted to a network activity Determine whether this statement is true or false. X

True

X

False

17. Which of the following are period-end closing activities for a project? Choose the correct answers. X

A Settlement

X

B Indirect Activity Allocation

X

C Availability Control

X

D Results Analysis

18. In which of the following SAP applications with which your Project System integrates, you create a project to monitor and plan maintenance activities within an organization? Choose the correct answers.

776

X

A Sales and Distribution

X

B Production Planning

X

C Enterprise Asset Management

X

D Financial Accounting


UNIT 10

Human Capital Management in SAP ERP

Lesson 1 Describing HCM Processes

779

Lesson 2 Explaining SAP ERP HCM Structures Exercise 84: Display an Organizational Unit

781 795

Lesson 3 Hiring Employees

799

Lesson 4 Managing Employee Records Exercise 85: Display an Employee Master Record

802 807

Lesson 5 Developing Employees

811

Lesson 6 Training Employees Exercise 86: Enroll an Employee into a Training Event

816 823

Lesson 7 Describing the HCM Support Processes

826

Lesson 8 Using Services Interfaces

830

UNIT OBJECTIVES ●

Explain SAP ERP HCM processes

●

Define an enterprise structure


777

Unit 10: Human Capital Management in SAP ERP

778

●

Define a personnel structure

●

Define an organizational structure

●

Explain the employee hiring process

●

Describe the structure of an employee master record

●

List the methods to maintain employee master records

●

Describe qualifications and requirements

●

List the procedures to define training events

●

Perform training event enrollment

●

Explain compensation and benefits

●

Describe the payroll process

●

Discuss employee performance management

●

List the activities that can be performed using employee self-service

●

List the activities that can be performed using manager self-services



Describing HCM Processes

LESSON OVERVIEW This lesson introduces the various processes within SAP ERP Human Capital Management (SAP ERP HCM). Business Example As a project manager, you need to familiarize yourself with, and implement, the elements of SAP ERP Human Capital Management (SAP ERP HCM). For this reason, you require the following knowledge: ●

An understanding of the elements of SAP ERP HCM



HCM Processes

Figure 292: SAP ERP HCM

Provide an overview of each process.

The elements of SAP ERP HCM are as follows:


779


●

Organizational Management

●

SAP E-Recruiting

●

Personnel Management

●

Personnel Development

●

Training and Event Management

●

Time Management

●

Performance Management

●

Payroll

●

Personnel Cost Planning


780




Explaining SAP ERP HCM Structures

LESSON OVERVIEW This lesson explains the enterprise, personnel, and organizational structures of SAP ERP Human Capital Management (SAP ERP HCM). Explain that all employees are assigned to various structures within the enterprise. The assigned structure defines where employees work, and employee status and function. Structure assignment data is used by payroll, time management, personnel planning, and reporting functions. Business Example In SAP ERP HCM, it is a requirement that you must assign employees to structures within your enterprise. For this reason, you require the following knowledge: ●

An understanding of the enterprise, personnel, and organizational structures of SAP ERP HCM



●


●



781


Enterprise Structure

Figure 293: Organizational, Enterprise, and Personnel Structures

Discuss the three blocks that represent the person’s place in each of the three structures. Stress that this infotype is critical to how the system treats the employee in Human Resource (HR) decisions. This subject is explored in detail later, but some initial discussion here is helpful. The organizational, enterprise, and personnel structures perform the following functions: ●

●

They determine how to report on employees They control how work rules are applied, for example, how eligibility for wage types are controlled and used to default field data such as the appropriate payroll area

Allocating employees to structures within the enterprise is the first step in creating an organizational structure of human capital management (HCM). You assign employees in Organizational Assignment infotype (0001). By assigning employees, you include them in the enterprise, personnel, and organizational structures. Information about the organizational assignment of employees is necessary for authorization checks, entry of additional data, and time management and payroll accounting. When you enter data for an employee in Organizational Assignment infotype (0001), the employee is assigned a company code, personnel area, and payroll area. You also assign employees to positions. The system then assigns employees to an organizational unit, a job, and a cost center.

782


Lesson: Explaining SAP ERP HCM Structures

Enterprise Structure – Levels

Figure 294: Enterprise Structure – Example

Explain that the organizational structure includes the complete reporting and hierarchical structures in a company. Explain that to run a payroll or time management, you will need some information, such as regional and legal. The enterprise structure always comprises four levels: client, company code, personnel area, and personnel subarea. No level can be skipped and more levels cannot be added. Briefly describe each level.

The figure shows the enterprise structure levels. Elements of the Enterprise Structure

Figure 295: Elements of the Enterprise Structure


783


The figure shows the following levels of the enterprise structure: Client

●

The client is the highest level of the enterprise structure. A client can contain one or more company codes. ●

Company code The company code is defined in Financial Accounting (FI). Legally required financial statements, such as balance sheets and profit and loss statements, are created at the company code level.

●

Personnel area The personnel area is unique for each client. Each personnel area must be assigned to a company code. The individual personnel areas in a company code have four-digit alphanumeric identifiers.

●

Personnel subarea The principal organizational aspects of human resources are controlled at this level, mainly Time Management and Payroll. Explain that you store personnel data within a client. A client represents a data pool. Mention that there is client-dependent data (for example, personnel data) and client-independent data (for example, holiday calendar). There is no interaction between clients. The company code is the next level below the client level. A client can include more than one company code. Company codes are created by Financial Accounting (FI), but are also used in HR within the enterprise structure. The currency is stored in the company code and is relevant to HR. The personnel area is an HR-specific element. A company code can include one or more personnel areas. Personnel areas are necessary for selecting data within reporting, distinguishing authorizations, and creating defaults in infotypes. The acronym for Reporting, Authorization, and Defaults is RAD. The personnel subarea is the lowest level within the enterprise structure. Personnel subareas are used for selecting data within reporting and for creating defaults. However, more important are the keys stored in the personnel subarea that control pay and working time, for example, if you have two subareas (sales and production), you might have work schedules or bonus payments that are valid in one subarea but not in the other.

Consider the following points before you decide to set up a client: There is no exchange of data between clients.

●

●

784

If an employee changes clients, the personnel number is created again.



Personnel Structure

Figure 296: Personnel Structure

Explain that distinctions between employees must be made to account for differences in working time salary, and status among employees company. Explain that the employee group is divided into a detailed level, which is known as the employee subgroup. For example, the group of active employees is divided into hourly wage earners, trainees, and salaried employees. This information is relevant to RAD. However, more relevant is the control of working times and remuneration according to the employee subgroup. Similar to personnel subareas, employee subgroups store keys that allow employees to be grouped by work schedule and payroll, for example.

For administrative purposes, employee information in the Personnel Structure is separated into two levels. The top level is called an employee group. The second level is called an employee subgroup. These levels are subject to authorization checks to define remuneration levels or different work schedules, for example.


785


Personnel Structure – Employee Group

Figure 297: Personnel Structure – Employee Group

Mention that the employee group is relevant within reporting, when creating defaults in infotypes and to control infotype authorizations. Employee subgroup would help in controlling the individual levels of employees. For example, hourly wage earners have different work schedules and pay rates than salaried employees. The employee group is a general division of employees. It defines the relationship between an employee and a company in that the employee makes a certain contribution to the company in terms of work. Active employees, pensioners, and early retirees are examples of employee groups in Personnel Administration. The principal functions of an employee group are as follows: Generates default values for payroll area and basic pay

●

●

Provides selection criterion for reporting

●

Provides one level of authorization check when you excecute the transaction

You can use the standard catalog to set up employee groups. The employee group can, however, also be added to suit individual customer requirements.

786



Personnel Structure – Employee Subgroup

Figure 298: Personnel Structure – Employee Subgroup

In an employee group, employees are further divided into employee subgroups according to the employees' positions. Wage earners, salaried employees, and non pay-scale employees are all examples of subgroups within the employee group "active". All control features of the personnel structure are defined at the employee subgroup level. The following are the most important features of the employee subgroup: The employee subgroup grouping for the personnel calculation rule allows you to define payroll procedures for various employee subgroups. For example, you can specify whether employee pay is accounted on an hourly or monthly basis.

●

●

●

The employee subgroup grouping for wage types controls the validity of wage types at the subgroup level. However, the grouping for collective agreement provisions restricts the validity of pay scale groups to certain employee groups. Default values can be assigned to the employee subgroup to expedite the data entry process.


787


Personnel Structure – Payroll Areas

Figure 299: Personnel Structure – Payroll Areas

A payroll area is an organizational subdivision of employees that is defined by the date on which the payroll runs for a group of employees. The payroll area is an organizational unit that is used for running payroll. All employees who have payroll run for them at the same time and for the same period are assigned to the same payroll area. Payroll is performed for each payroll area. The payroll area provides the payroll driver with the following pieces of information: The number of employees for whom payroll is to be run

●

●

The dates of the payroll period

Note: An employee may only change payroll areas at the end of a month. If the status of an employee changes from wage earner to salaried employee in the middle of the month, and the payroll area is different for both, you should not enter the new payroll area until the start of the following month.

788



Organizational Structure

Figure 300: Organizational Structure

The organizational structure represents the task-related, functional structure of your enterprise. The organizational structure differs from the administrative enterprise or personnel structure, whose elements are relevant to Payroll or Accounting. You can view your organizational structure with objects and reporting relationships to see various views of the organization. You create your organizational plan using organizational objects and positions. An organizational plan is a comprehensive and dynamic model of the structural and personnel environment in your enterprise. Map hierarchies within your organizational plan as follows: The organizational structure of your enterprise

●

The organizational structure shows the hierarchy that exists between the various organizational units in your enterprise. You create the organizational structure by creating and maintaining organizational units and relating them with one another. ●

The individual positions and reporting structure (chain of command) A reporting structure depicts the line structure that exists in your enterprise. You create a reporting structure by creating and maintaining positions and relating these with one another.


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Object Types – Organizational Units

Figure 301: Object Types – Organizational Units

Organizational units describe the business units in your enterprise. Multiple organizational units and the relationships between them form the organizational structure. Organizational units can be classified generally (for example, by function or region) or specifically (for example, by project group). The way in which organizational units are classified depends on the company. Explain that organizational units are connected to one another through relationships. They form a network that illustrates the hierarchical structure of the enterprise. If you assign a cost center to one organizational unit at the top of others, this cost center can be valid for all the organizational units below.

You must relate organizational units with one another in an organizational plan. The hierarchical interrelationships that exist among the organizational units represent the organizational structure of your enterprise. Organizational units can be linked to cost centers from accounting. The figure illustrates the executive board organizational unit as the superior object over two subordinate objects, HR and Finance. Organizational Structure – Jobs

Figure 302: Organizational Structure – Jobs

790



Each job represents a unique classification of responsibilities in your organization. When you create a job, consider the specific tasks and requirements associated with it. Jobs are used in the following application components: Shift planning

●

●

Personnel Cost Planning

●


Hint: Make your job descriptions as general as possible and as specific as necessary.

Organizational Structure – Positions

Figure 303: Organizational Structure – Positions

Explain that positions are specifications for jobs. You can use one job to create several positions. Positions are related to organizational units, whereas, jobs are not. All the information stored about a job, such as tasks and requirements, is inherited by all positions created from that job. After you create a job, you must specify the number of corresponding positions required in the organization. A position inherits a job’s tasks. However, you can define additional tasks that must be performed only by this position. Positions can be 100 percent filled, partially filled, or vacant.


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Positions, rather than jobs, are held by employees. One position may also be shared by a number of employees, each working less than full time. For example, two employees can hold 60 percent and 40 percent of a full-time position. Object Types – Cost Centers

Figure 304: Object Types – Cost Centers

Cost centers can be linked to organizational units, and all subordinate organizational units can inherit the cost center assignment. Organizational units can have multiple cost center assignments or percentages. Additionally, you can change the cost center assignment at a lower level, such as position or person. Cost centers are maintained in Controlling and can be linked to either organizational units or positions. Cost center assignments are inherited along with the organizational unit structure.

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Organizational Structure – Persons

Figure 305: Organizational Structure – Persons

The term for an individual listed as an employee in Personnel Administration is person. Persons represent employees in your company. Persons hold positions in the organizational structure that is governed by Organizational Management. Infotypes for persons are maintained in Personnel Administration and linked to an organizational plan through their position assignment. Other defaults in Personnel Administration can be derived from Organizational Management data, such as the Employee Group/Subgroup infotype (1013).


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Personnel Administration and Planning

Figure 306: Personnel Administration and Planning

The figure is a summary of the relationships between a person and the other organizational objects. If Personnel Administration and Personnel Planning are integrated, you can enter the position in the Actions infotype (0000). This infotype must be added first. You cannot overwrite the job, organizational unit, or cost center fields. These fields define the relationships to the position. Default values can be configured for the personnel area, personnel subarea, business area, employee group, and employee subgroup fields.

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Display an Organizational Unit

Business Example As a manager, you need to understand how to display an organizational unit. 1. Display the Production organizational unit. 2. In the Find by area, choose Organizational unit. 3. Search for the organizational unit by using the organizational unit search functionality. In the Find Organizational unit dialog box, enter PRODUCTION in the With name field and choose the Find button. On the Staff Assignments (Structure) tab page, choose Production (D). Also, assign the position of Plant Manager Hamburg to the person named Werner Lachemann. 4. What organizational units are assigned to Production (D)? 5. Who is the plant manager of the Hamburg production site? 6. Review the details about Werner Lachemann and fill in the table. Field

Value

Position Job Pers. No. EE group Pers. Area 7. Select the Plant Manager Hamburg position to find which cost center this position is assigned to. 8. Review the Proficiency for the Core Management Practices qualification group. 9. Exit the Organization and Staffing display.


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Display an Organizational Unit

Business Example As a manager, you need to understand how to display an organizational unit. 1. Display the Production organizational unit. a) On the SAP Easy Access screen, choose Human Resources → Organizational Management → Organizational Plan ->Organization and Staffing → Display (PPOSE). 2. In the Find by area, choose Organizational unit. 3. Search for the organizational unit by using the organizational unit search functionality. In the Find Organizational unit dialog box, enter PRODUCTION in the With name field and choose the Find button. On the Staff Assignments (Structure) tab page, choose Production (D). Also, assign the position of Plant Manager Hamburg to the person named Werner Lachemann. a) Enter PRODUCTION in the With name field. Next, choose the Find button. b) In the Hit list, choose Production (D). This adds Production (D) to the Staff Assignments (Structure) screen area. 4. What organizational units are assigned to Production (D)? a) Expand Production (D). The organizational units that are assigned to Production (D) are Hamburg Production Site, Belin Production Site, Dresdel Production Site, and Frankfurt Project Center. 5. Who is the plant manager of the Hamburg production site? a) Expand Hamburg Production Site, expand Plant Manager Hamburg, and double-click Werner Lachemann. 6. Review the details about Werner Lachemann and fill in the table. Field

Value

Position

Plant Manager Hamburg

Job

Head of department

Pers. No.

1207

EE group

1 Active

Pers. Area

1000 Hamburg

7. Select the Plant Manager Hamburg position to find which cost center this position is assigned to. a) Choose Plant Manager Hamburg on the Staff Assignments (Structure) tab page.

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b) On the Account Assignment tab page, view the Master cost center field to find the cost center. 8. Review the Proficiency for the Core Management Practices qualification group. a) Select the Qualification tab and view the proficiency. 9. Exit the Organization and Staffing display. a) Choose


(Exit).

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798

●


●


●




Hiring Employees

LESSON OVERVIEW This lesson discusses the processes of recruiting and hiring an employee. Business Example As a manager, you need to be familiar with the process of hiring the right candidate for your enterprise. For this reason, you require the following knowledge: ●

An understanding of the employee hiring process



Vacancy to Hire

Figure 307: From Vacancy to Hiring

The recruitment component contains a range of powerful, flexible functions that you can use to implement an effective and largely automated recruitment strategy. You can use the recruitment component to recruit human resources at any time.


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You can increase the number of available candidates, and include them in the selection procedure for vacancies, by advertising for personnel (for example, by using job advertisements) or by receiving unsolicited applications. You can store information about candidates who are not suitable for a particular vacancy in the candidate pool for consideration for other or future vacancies.

You can use the Recruitment component to complete the entire recruitment process, from initial entry of applicant data to filling vacant positions. The SAP system supports you in identifying workforce requirements, creating job advertisements, screening applicants, and managing applicant correspondence. When you hire a candidate, you can transfer the candidate data recorded in Recruitment to Personnel Administration as employee data. Line managers can use the Manager's Desktop to map their decisions on candidates and trigger further administration in the human resources (HR) department, efficiently and cost-effectively. External applicants can use the Employment Opportunities Web application, and employees can use Job Advertisements in Employee Self-Service (ESS) to attach electronic application documents to online applications. Applying Through the Internet

Figure 308: Applying Through the Internet

Recruitment web applications support company recruitment strategies. They also allow external candidates to view employment opportunities and apply for positions over the Internet. Your company and the external candidates benefit because the Internetis a fast and cost-effective medium. The following Web applications are available for job advertisement: Employment Opportunities Web Application

●

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Lesson: Hiring Employees

The Employment Opportunities Web Application allows external candidates to view advertisements for jobs at your company, apply for vacant positions, or change their application data. ●

Application Status Web Application The Application Status Web Application supports a cost-effective and efficient recruitment procedure by allowing candidates to check the status of their job applications over the Internet.

The Employment Opportunities application is an Internet Application Component that assists candidates in the following ways: ● It displays job vacancies ●

It helps candidates to apply for positions in the company

Candidates can choose to view job advertisements for specific regions, or view all advertisements. Each advertisement includes a brief description of the position and the position requirements. The system refers to the advertisements stored in recruitment for information on the position. Candidates can either apply in response to an advertisement or submit an unsolicited application. When applying through the Internet, candidates enter information, such as personal data, experience, qualifications, and education and training. The system automatically transfers the data to the SAP ERP application.

Note: SAP R/3 Enterprise allows candidates to add and change any data they have entered. Candidates can use this Internet Application Component to send their application documents as electronic attachments. LESSON SUMMARY You should now be able to: ●



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Managing Employee Records

LESSON OVERVIEW This lesson discusses employee master records and the use of infotypes. Business Example Your company is using SAP ERP HCM to maintain employee master records. For this reason, you require the following knowledge: ●

An understanding of the employee master record

●

An understanding of the methods to maintain employee master record



●


Infotypes

Figure 309: Infotypes

Infotypes are logical groupings of data fields. All master data is stored on infotypes. Provide examples of infotypes and fields found.

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Lesson: Managing Employee Records

Personal information, such as last name, first name, and date of birth, is defined in data fields. Data fields are grouped into data groups or information units according to their content. In Human Resources (HR), these information units are called information types or infotypes for short. HR data is stored in groups that logically belong together according to content. For example, place of residence, street, and house number make up the address of an employee and are so stored (together with additional data) in the Addresses infotype. Infotypes have names and four-digit keys, For example, the Addresses infotype has the key 0006.

Maintain Employee Master Records

Figure 310: Maintaining Infotypes – Overview

Discuss the ways of processing infotype records. Employee data must be kept current. Data can be displayed, corrected, and supplemented. Human Capital Management (HCM) stores the data of an employee in infotype records. Each infotype record has validity, which is a validity interval or a key date. Infotype records can be processed in the following ways: ● Single screen maintenance (individual infotype maintenance) You can call individual infotypes to maintain data for a particular subject or situation. You maintain one infotype at a time for a personnel number. ●

Personnel actions You can use personnel actions if the subject or situation is more complex and you need to maintain more than one infotype. When you perform a personnel action, the system displays all the relevant infotypes for you to maintain, one after the other.

●

Fast entry


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You can use fast entry to maintain an infotype for more than one personnel number simultaneously. Initial Entry Screen for Infotype Maintenance

Figure 311: Initial Entry Screen for Infotype Maintenance

Infotypes that are most frequently used are grouped together by subject matter and assigned to static menus. One infotype can be included in more than one menu. However, infotypes that are rarely used might not be included in any menus. To access a particular menu, choose the tab page on the Maintain HR Master Data screen. The green ticks next to the menu list of infotypes indicate that these records already exist for the selected personnel number.

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Personnel File

Figure 312: Personnel File

The personnel file lists all the infotypes for which records have been created for a personnel number. The infotypes are displayed in ascending numerical order. If more than one record exists for an infotype, the records are displayed one after the other. The system then goes to the next infotype, after which it returns to the initial screen. You can scroll forward and backward within the personnel file. Show participants how to display an Employee Master Record by using the data and steps from the exercise, Display an Employee Master Record.


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806



Display an Employee Master Record

Business Example The HR department regularly reviews data on current employees. HR needs to hire new employees to fill the additional positions. Task 1 1. Display the personnel data for employee Dave Demmerle, personnel number 100002. In which company structures does Dave Demmerle belong? Company Code: _____________________ Personnel Area: ____________________ Personnel Subarea: __________________ Employee Group: ___________________ Employee Sub-group: ________________ Payroll Accounting Area: ______________ Position: _________________ 2. Display the number of hours Dave Demmerle works per week. Weekly Working Hours ____________________

3. Display the leave details of Dave Demmerle. Hint: You can always find an infotype by entering an employee name or a part of an employee name in the Direct Selection-Infotype screen area at the bottom of the screen. The system then creates a dynamic list of all infotypes that include this search string in their title. If only one infotype matches the search string, the infotype is immediately displayed. You can also enter the exact number of the infotype, if known, in the infotype field. 4. Exit the employee record.


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Display an Employee Master Record

Business Example The HR department regularly reviews data on current employees. HR needs to hire new employees to fill the additional positions. Task 1 1. Display the personnel data for employee Dave Demmerle, personnel number 100002. In which company structures does Dave Demmerle belong? Company Code: _____________________ Personnel Area: ____________________ Personnel Subarea: __________________ Employee Group: ___________________ Employee Sub-group: ________________ Payroll Accounting Area: ______________ Position: _________________ a) Choose Human Resources → Personnel Management → Administration → HR Master Data → Display (PA20). Hint: You can display all available fields at any time by selecting the Other menu button located to the right of the field. When you choose this button, a dropdown menu appears listing all available fields. You can also press F4 from the keyboard to view available fields. b)

Enter 100002 in the field Personnel number and choose

Enter.

c) Choose the Core Employee Info. tabpage. d) In the Infotype text section, choose the gray box in front of the Organizational Assignment infotype and choose

(Display).

The system displays the following fields:

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Field

Value

Company Code

3000 IDES USINC

Personnel Area

3500 Philadelphia

Subarea

0001 Philadelphia

EE Group

1 (Active)



Field

Value

EE Subgroup

U1 Hourly rate/labor

Payr. Area

UW US:Weekly-UW

Position

50011134 Admin

e) Go

back.

2. Display the number of hours Dave Demmerle works per week. Weekly Working Hours ____________________

a) Select the Empl. Contract data tab. Then choose the gray box in front of the Planned Working Time infotype. b) Choose

(Display).

40 hours are displayed in the Weekly Working Hours field. c) Go

back to the Display Master Data screen.

3. Display the leave details of Dave Demmerle. Hint: You can always find an infotype by entering an employee name or a part of an employee name in the Direct Selection-Infotype screen area at the bottom of the screen. The system then creates a dynamic list of all infotypes that include this search string in their title. If only one infotype matches the search string, the infotype is immediately displayed. You can also enter the exact number of the infotype, if known, in the infotype field. a) Enter Leave in the Infotype field in the direct selection area of the screen. Press Enter. b) Select the gray box in front of the Leave Entitlement infotype. c) Choose

(Display).

d) After reviewing the leave details, go

back to the Display Leave Entitlement screen.

4. Exit the employee record. a)

Exit the employee record.


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810

●


●




Developing Employees

LESSON OVERVIEW This lesson provides an overview of employee development, based on their qualifications and the job requirements. Explain the role of employee development in a company. Mention that employees have certain qualifications, and the positions they occupy or want to occupy have certain requirements. You can use the SAP system to compare the qualifications of an employee with the requirement of a position. If deficits appear, employees can be sent to a course to make up the missing qualification.

Business Example As a manager, you need to understand the role of Personnel Development in your organization. Also, you need to compare the qualifications of employees with the requirements of positions. For this reason, you require the following knowledge: ●

An understanding of qualifications and requirements of employees




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Figure 313: Personnel Development

Personnel Development requirements result from a comparison of the job requirements to the existing qualifications of an employee. The information required for the comparison is stored in profiles. Employee performance and behavior is also appraised. The results of the appraisal provide information for employee development planning. Development plans are used to assign qualifying actions (such as trainee programs or participation in a sequence of courses) to employees.

812


Lesson: Developing Employees

Points of Integration in Personnel Development

Figure 314: Points of Integration in Personnel Development

Integration with Organizational Management allows you to access objects within the organizational structure. To use Personnel Development effectively, you must also implement Organizational Management. Integration with Training and Event Management and Learning Solutions means that the system can generate training proposals. You can also make direct bookings for business events and create prebookings for business event types. Integration with Personnel Administration means that you can use SAP ERP Human Capital Management (SAP ERP HCM) master data for personnel development planning. If so, you manage qualifications and appraisals in Personnel Development. Special integration switches are available for integrating qualifications and appraisals. If Personnel Development is integrated with Recruitment, then you manage candidate qualifications only in Personnel Development. This action allows you to perform standardized appraisals for candidates and employees alike. It is possible to make the results of personnel appraisals available to Enterprise Compensation Management. Integration with Shift Planning means that you can take qualifications into account when you schedule shifts. For example, you can specify that the employees working on a particular shift should have specific qualifications. In Logistics (for example, Service Management, production planning (PP), and so on), you can store work center requirements or requirements for orders. This means that you can find suitable employees during the shift planning process by matching requirements with qualifications.


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Qualifications and Requirements

Figure 315: Qualifications and Requirements

You use the Qualifications and Requirements component to define, structure, and manage your qualifications catalog. On the basis of this qualifications catalog, you can create profiles. You can then use these profiles to manage, evaluate, and compare object characteristics. The profiles can be used to show both the requirements of a position and the qualifications and career goals (preferences) of a person. For example, you can run profile match-ups to find out how suitable certain persons are for a certain position in your organization. If any qualification deficits arise, you can plan further training measures. Qualifications is a list of skills, knowledge, or ability that is of interest to an employer. Qualifications are used to define both qualifications profiles and requirements profiles. This means that it is possible to compare the qualifications of an employee at a specific point in time with the requirements of his or her present or future occupation. Requirements is a list of skills, knowledge, or ability required for a job or position. You can compare the requirements and qualifications of objects each other and establish whether objects are suitable (for example, persons for positions) or qualification deficits exist.

You can assign qualifications to employees and positions. When related to employees, the qualifications are referred to as qualifications. When related to positions, qualifications are referred to as requirements. All qualifications and requirements are stored centrally in a catalog. Both refer to the same object but from a different perspective. This means that you can compare the qualifications of a person with the requirements defined for a position. You edit the qualifications catalog in Customizing for Personnel Development. You can also make changes by choosing the Current settings menu option.

814


Lesson: Developing Employees

Intranet Solution for Qualifications Profiles

Figure 316: Intranet Solution for Qualifications Profiles

Employee self-service (ESS) lets employees view and edit their skills (qualifications) profiles. Employees can select the qualifications they currently possess from list of qualifications in the skills catalog and save them, along with their proficiency levels, in a personal qualifications profile. The system displays qualifications with the respective proficiency and validity data. Employees and managers can immediately identify deficit areas and training needs. By allowing employees to enter and maintain their own qualification profiles, ESS reduces the administrative workload of supervisors and HR personnel. LESSON SUMMARY You should now be able to: ●



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Training Employees

LESSON OVERVIEW This lesson gives an overview Training and Event Management. Business Example As the administrator of training events of your organization, you need to plan and define training events to ensure that employees deliver the required skills. For this reason, you require the following knowledge: ●

An understanding of the procedures used to define training events

●

How to perform training event enrollment



●



Figure 317: Training Proposals for Training Deficits

Explain that if an employee does not have a required skill, the employee can be enrolled directly into a training event through Training and Event Management. Training and Event

816


Lesson: Training Employees

Management allows you to manage business events from creation to follow-up to reporting. It is possible to manage internal events and external events. Internal events are those offered by the company or department, and external events are those offered by an external organizer. If Personnel Development is integrated with Training and Event Management, you can use the Generate training proposals function. In this case, the system proposes training courses (business events) that can provide an employee with any missing qualifications. You can register employees for courses directly or, alternatively, preregister them for various types of business events. The system can also propose development plans for employees who want to acquire any necessary qualifications. You can assign a general employee development plan directly in the system and then copy items from that general employee development plan to an individual employee development plan. The system proposes only business events and development plans that result in a level of proficiency that is the same or a higher as the qualification (compared to the current proficiency level in the Qualifications subprofile of the person in question). For example, a mechanical engineer is required in Japan for some time. However, a comparison of the candidate profile to the new position requirements shows that the candidate does not have adequate language skills. As Personnel Development is integrated with Training and Event Management, the system proposes a Japanese language course to provide the employee with the required skills. The administrator registers the candidate for the course directly from the system. Discuss the integration of Human Capital Management (HCM) components with the other system components. SAP Knowledge Warehouse Display of information material from the Knowledge Warehouse (training materials, documentation, videos, and so on) in Training and Event Management and its self-service applications Cost Accounting Internal activity allocation of attendance fees, instructor costs, and cost transfer posting for business event costs


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Processes in Training and Event Management

Figure 318: Processes in Training and Event Management

Explain the processes in Training and Event Management. The main processes in Training and Event Management are as follows: 1. Business event preparation The business event preparation encompasses all the data you require when creating the business event catalog, such as the locations where training courses are held. The business event catalog is represented using a hierarchy that consists of business event groups (which are used to structure the catalog) and business event types. 2. Business event catalog Dates for the events are planned and created. 3. Day-to-day activities The day-to-day activities of booking, rebooking, or canceling business events for internal and external participants can take place once the dates are available. For each process, you can send an appropriate notification to participants. SAP provides templates that you can change depending on your requirements. 4. Recurring tasks Recurring tasks are closely linked to day-to-day activities. After a course has completed, participants can write appraisals for it. For internal participants, the newly acquired qualifications can be transferred to subprofiles in Personnel Development. Integration of Training and Event Management with Other SAP Components A high level of integration with other SAP components means that Training and Event Management is an ideal tool for constantly extending and updating the knowledge of your employees. For example, the link with Personnel Development enables you to identify

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qualification deficits and react with targeted training programs in Training and Event Management. The link to the SAP Learning Solution enables you to combine traditional classroom training in Training and Event Management with Web-based learning methods that can be realized regardless of time and location. The SAP Learning Solution is a separate SAP software product. You can integrate it with Training and Event Management. The broad palette of Training and Event Management functions is user friendly. The use of dynamic menus ensures that all Training and Event Managementfunctions are as intuitive as possible. These menus enable you to access the individual functions of the application directly through the objects in the business event catalog. You can right-click to access the most frequently used functions, such as the day-to-day activities in the dynamic attendance menu.

Training Event Enrollment

Figure 319: Book Attendance – Overview

You can make bookings for individual attendees such as person, user, external person, applicant, or contact person. You can also make bookings for group attendees such as company, organizational unit, customer, or interested party. You can assign various booking priorities to the attendees. You use the priority feature to specify whether a booking is essential, normal, or on a waiting list. Once the optimum number of bookings for an event has been accepted, only bookings with essential priority are accepted. Once the maximum number of bookings has been reached, you can only make bookings on the waiting list. The following checks are performed for both individual and group attendees: ● Existence check ●

Availability check


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●

Capacity check

A number of additional checks are carried out for individual attendees, such as checks for event prerequisites (qualifications and events attended) or checks for bookings for the same event type. When bookings are made, the relevant billing and allocation data is stored or checked in Training and Event Management. Billing and Activity Allocation – Overview

Figure 320: Billing and Activity Allocation – Overview

Training and Event Management has several billing and allocation options. You determine business event costs based on cost items and post cost transfer data to Cost Accounting. You issue invoices in Sales and Distribution (SD) for external attendees. You can specify various partner functions such as payer. You can issue credit memos for whole or part business event fees. If you make the necessary system settings in SD, you can allow payment by credit card. When employees from your company attend training events, you can settle costs internally using internal activity allocation functions. You can distribute costs on a percentage basis to multiple account assignment objects such as cost centers or internal orders. For internal instructors, you settle instructor fees using activity allocation functions.

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Integration with Other Application Components

Figure 321: Integration with Other Application Components

Integration with other application components facilitates direct and efficient data exchange. This data can be further processed in Training and Event Management. When integrated with Training and Event Management, the features of various application components are as follows: ● Cost Accounting Internal activity allocation of attendance fees and instructor costs; cost transfer posting for business event costs ●

SD Billing of attendance fees; use of attendee types customer and contact person

●

Materials Management (MM) Use of materials from the material master as resources for business events, generation of purchase requisitions, and material reservations

●

Personnel Development Check for and transfer of qualifications and use of appraisal systems from Personnel Development

●

Time Management Recording and checking of attendance (for internal event attendees and instructors)

●

Organizational Management Use of organizational units as attendees and organizers of business events

●

Personnel Administration


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Use of people from the Human Capital Management(HCM) master data as attendees and instructors ●

Learning Solution Use in booking classroom training sessions online Show participants how to enroll an employee in a training event by using the data and steps from the exercise, Enroll an Employee into a Training Event.

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Enroll an Employee into a Training Event

Business Example To be competitive and gain knowledge, employees within your company can attend training classes. As a project team member, you need to understand the automatic training course registration process. You want to enroll employee 1920 + ## to a business ethics class. This course is scheduled throughout the current year. 1. Enroll employee 1920 + ##.


823


Enroll an Employee into a Training Event

Business Example To be competitive and gain knowledge, employees within your company can attend training classes. As a project team member, you need to understand the automatic training course registration process. You want to enroll employee 1920 + ## to a business ethics class. This course is scheduled throughout the current year. 1. Enroll employee 1920 + ##. a) On the SAP Easy Access screen, choose Human Resources → Training and Event Management → Attendance → Attendance Menu (PSV1). b) On the Dynamic Attendance Menu screen, choose Core Employee Development → New Hire Training. c) Select the arrow to the left of Company Orientation Program. A list of the available classes displays. d) Right-click on one of the Company Orientation Program classes and choose theBook button. e) Enter 1920 + ## in the Person field and choose the Book/Payment Info button. f)

Save your entries. A message is displayed confirming that the attendance is booked.

g) Exit the screen by choosing

824

(Cancel).





●



825


Describing the HCM Support Processes

LESSON OVERVIEW This lesson explains the support processes of Human Capital Management (HCM), such as compensation and benefits, payroll process, and employee performance management. Business Example As a manager in your organization, you need to know the various HCM support processes. For this reason, you require the following knowledge: ●

An understanding of various HCM support processes



●


●


Compensation and Benefits

Figure 322: Areas of Enterprise Compensation Management

The Enterprise Compensation Management component controls and manages remuneration policy at an enterprise. The Enterprise Compensation Management provides an overview of remuneration policy and a control mechanism for implementing this policy. It also facilitates compensation planning and budgeting, and decentralized compensation administration.

826


Lesson: Describing the HCM Support Processes

Enterprise Compensation Management comprises the following areas: ● Job pricing You can perform job pricing within Enterprise Compensation Management. You can save the results of external job evaluation systems and salary surveys. Using these results, you can generate salary structures to which you can assign jobs and positions at your enterprise. In this way, you can determine the internal value of jobs and positions at your enterprise to ensure that you remain competitive. ●

Budgeting You can use budgeting to plan and control expenses for compensation adjustments. You can assign budgets to organizational units. You can also create centralized and decentralized budgets. You can also gather the budgets based on organizational units.

●

Compensation administration You can use compensation administration to distribute salary increases, shares, and so on to employees, in accordance with remuneration policy at your enterprise.

●

Long-term incentives You can manage long-term incentives (awards).

Payroll Process

Figure 323: Payroll

Explain that various types of data flow into payroll. Master and time data flow into payroll accounting. A remuneration statement can be printed out for the employees. After payroll processing , the transfer to accounting and the payment to payees is performed. The remuneration of an employee is calculated by performing the following tasks:


827


●

Grouping the remuneration elements; that is, the gross payroll

●

Legal and voluntary deductions; that is, the country-specific net payroll

Employee remuneration comprises all payments and deductions allocated to an employee during one payroll period. The payment and deductions are included in the remuneration calculation by means of various wage types. Payment is then made by bank transfer or check. The employee is sent notification in the form of the remuneration statement, or the employee can view the information online using an employee self-service (ESS) application.

Employee Performance Management

Figure 324: Appraisals

The Appraisal Systems component can be used as a personnel development instrument to evaluate members of your organization in a planned, formalized, and standardized manner. The evaluations are performed by trained persons commissioned especially for this purpose by your organization. Personnel appraisals are used to obtain information about the characteristics, behavioral traits, and performance of members of your organization. These appraisals form the basis of planning and decision making that apply both to individuals and organizational members. Personnel appraisals can also be used to monitor the success of human resource measures that have already been implemented. As a personnel development instrument, these appraisals can be used to evaluate the past and plan for the future.

The phases of an appraisal can encompass all steps in the appraisal process, including planning, review, execution, and evaluation of the appraisals submitted. In the appraisals catalog, you create reusable appraisal templates, which can be used to create employee-related appraisal documents. In the appraisal documents, you can incorporate objective-setting agreements as planned specifications, to which you can add

828


Lesson: Describing the HCM Support Processes

information either manually or automatically by integrating the Appraisal Systems component with other SAP components. You can add information to objective-setting agreements in the following ways: ● Integrating the Appraisal Systems component with Personnel Development in SAP ERP Human Capital Management (SAP ERP HCM) enables you to transfer requirements profiles from positions or from the qualifications catalog directly to individual employee objective-setting agreements. ●

●

●

Using integrated, automated follow-up processes, such as updating the qualification profile of an employee in Personnel Development and adjusting remuneration. Integrating the Appraisal Systems component with Compensation Management enables you to automatically adopt default compensation adjustments. Integrating the Appraisal Systems component with SAP NetWeaver Business Warehouse (SAP NetWeaver BW) enables you to compile special analyses of appraisal results.



●


●



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Using Services Interfaces

LESSON OVERVIEW This lesson provides an overview of the activities that can be performed by using employee self-service (ESS) and manager self-service (MSS) in the SAP ERP application. Business Example Your employees have been made responsible for entering and maintaining their own data files through ESS. For this reason, you require the following knowledge: ●

An understanding of activities that can be performed using ESS

●

An understanding of activities that can be performed using MSS



●


Employee Self-Services

Figure 325: Employee Self-Service

ESS uses an intuitive interface based on the SAP Enterprise Portal (SAP EP). Provide examples of activities such as entering leave requests, viewing remuneration statements, and changing personal information that can be performed using ESS.

ESS has more than 70 services that can be used immediately.

830


Lesson: Using Services Interfaces

Employees can use ESS to perform the following functions: Search the Who’s Who

●

●

View the calendar

●

Check workflow work items

●

Submit travel expenses

●

Enter work times

●

Enroll for benefits

The following employee information is available using ESS: ● Personal data such as payroll, time management, travel expenses, and qualifications ●

Public information such as Who’s Who, calendar, education and training offers, and internal vacancies

Benefits of ESS include the following: Well-informed employee decisions

●

●

Reduced administrative costs

●

Shorter process cycle times

●

Accurate employee records

●

Reduced HR department workload

ESS – Components and Web Applications Explain that the purpose of self-service is to reduce the work load of the HR department so that they can focus on strategic functions. Explain that many HR departments are currently overburdened with paperwork, and that redundant entries can occur. Review the benefits of ESS. Enabling employees to maintain their own data and giving them access to their own information increases employee satisfaction and data accuracy. The HR departments are freed from many data entry activities.

ESS is a set of powerful, yet easy-to-use applications that empower employees to view, create, and maintain personal and career data in the SAP system through the company intranet. ESS consists of the following components: ● Office ●

Time Management

●

Payment

●

Benefits

●

Personal information

●


●

Qualifications

●

Appraisals


831


ESS has an intuitive, web-based user interface. ESS allows employees view and edit their skills (qualifications) profiles. Employees can select the qualifications they currently possess from list of qualifications in the skills catalog and save them, along with their proficiency levels, in a personal qualifications profile. The system displays qualifications with the respective proficiency and validity data. Employees and managers can immediately identify deficit areas and training needs. By allowing employees to enter and maintain their own qualification profiles, ESS reduces the administrative workload of supervisors and HR personnel.

Manager Self-Service (MSS)

Figure 326: Manager Self-Service

MSS is an intuitive, easy-to-use, portal-based application that supports managers in their daily work. MSS comprises multiple intuitive web applications that enable managers to display, create, and edit data in the SAP system using a browser. MSS supports the following functions: Employee reviews

●

●

Change requests from employees

●

Monitoring

●

Reporting

●

Recruitment

●

Compensation planning

●

Quota planning

MSS provides managers with tools that help them perform a wide variety of administrative tasks quickly and easily. These tools enable managers to run their departments in line with your enterprise's objectives. Central departments, such as accounting and human resources, can make personalized information available in the team member's portal so that managers find that information on their own portal.

832


Lesson: Using Services Interfaces



●



833


834


Unit 10

787

Learning Assessment

1. Which of the following elements belong to SAP ERP Human Capital Management (SAP ERP HCM)? Choose the correct answers. X

A Personnel Management

X

B Task Allotment

X

C Payroll

X

D Time Management

2. Which of the following SAP ERP Human Capital Management business processes integrate with Financial Accounting and Controlling? Choose the correct answers. X

A Payroll

X

B Personnel Management

X

C Training and Event Management

X

D Performance Management

3. Personnel subarea is an element of the personnel structure. Determine whether this statement is true or false. X

True

X

False

4. Which of the following elements is found in the personnel structure? Choose the correct answer. X

A Employee subgroup

X

B Organizational unit

X

C Company code


835


5. Which of the following elements are part of the organizational structure? Choose the correct answers. X

A Payroll area

X

B Jobs

X

C Employee group

X

D Persons

6. ____________________ is assigned to a company code. Choose the correct answer. X

A An employee group

X

B A personnel subarea

X

C A payroll area

X

D A personnel area

7. An employe wants to apply for an internal position. He or she can use employee selfservice to apply. Determine whether this statement is true or false. X

True

X

False

8. Infotypes can be processed using different methods. Which method provides a sequence of infotypes for one personnel number? Choose the correct answer.

836

X

A Single entry

X

B Personnel actions

X

C Fast entry



9. Human Capital Management stores employee data in ____________________. Choose the correct answer. X

A Data records

X

B Data fields

X

C Data groups

X

D Infotype records

10. You want to maintain data for the same infotype, but for three different employees. Which method would you use to maintain this data? Choose the correct answer. X

A Single screen

X

B Personnel file

X

C Fast entry

X

D Personnel actions

11. Which term denotes "skills" when it is used for employees? Choose the correct answer. X

A Requirements

X

B Qualifications

X

C Talent

X

D None of these

12. An employee enrolls in a class using Training and Event Management. There is an internal charge to that employee's cost center. Which SAP ERP component is used to transfer the cost? Choose the correct answer. X

A Financial Accounting

X

B Materials Management

X

C Controlling

X

D Production Planning


837


13. A customer attends your organization's internal training class. You need to invoice the customer for the costs of that class. Which SAP ERP component would you use to perform billing? Choose the correct answer. X

A Management Accounting

X

B Sales and Distribution

X

C Materials Management

X

D Human Capital Management

14. Which function is triggered by specific activities in Training and Event Management that you define as correspondence relevant? Choose the correct answer. X

A Correspondence history

X

B Automatic correspondence

X

C Error handling correspondence workflow

15. Enterprise Compensation Management allows you to perform job pricing. Determine whether this statement is true or false. X

True

X

False

16. The remuneration statement of an employee comprises all payments and deductions that were determined for that employee during one ___________________. Choose the correct answer.

838

X

A Calendar year

X

B Payroll period

X

C Fiscal year

X

D None of the above



17. Which of the following steps are included in the phases of an appraisal? Choose the correct answers. X

A Planning and Review

X

B Execution

X

C Evaluation

X

D Release

18. Which of the following functions can an employee perform by using employee self-service (ESS)? Choose the correct answers. X

A Search the Who’s Who

X

B View the calendar

X

C Check workflow work items

X

D Employee reviews

19. Which of the following areas are covered in manager self-service (MSS)? Choose the correct answers. X

A Employee reviews

X

B Change requests of an employee

X

C Monitoring

X

D Execution


839

Unit 10

792


1. Which of the following elements belong to SAP ERP Human Capital Management (SAP ERP HCM)? Choose the correct answers. X

A Personnel Management

X

B Task Allotment

X

C Payroll

X

D Time Management

2. Which of the following SAP ERP Human Capital Management business processes integrate with Financial Accounting and Controlling? Choose the correct answers. X

A Payroll

X

B Personnel Management

X

C Training and Event Management

X

D Performance Management

3. Personnel subarea is an element of the personnel structure. Determine whether this statement is true or false.

840

X

True

X

False



4. Which of the following elements is found in the personnel structure? Choose the correct answer. X

A Employee subgroup

X

B Organizational unit

X

C Company code

5. Which of the following elements are part of the organizational structure? Choose the correct answers. X

A Payroll area

X

B Jobs

X

C Employee group

X

D Persons

6. ____________________ is assigned to a company code. Choose the correct answer. X

A An employee group

X

B A personnel subarea

X

C A payroll area

X

D A personnel area

7. An employe wants to apply for an internal position. He or she can use employee selfservice to apply. Determine whether this statement is true or false. X

True

X

False


841


8. Infotypes can be processed using different methods. Which method provides a sequence of infotypes for one personnel number? Choose the correct answer. X

A Single entry

X

B Personnel actions

X

C Fast entry

9. Human Capital Management stores employee data in ____________________. Choose the correct answer. X

A Data records

X

B Data fields

X

C Data groups

X

D Infotype records

10. You want to maintain data for the same infotype, but for three different employees. Which method would you use to maintain this data? Choose the correct answer. X

A Single screen

X

B Personnel file

X

C Fast entry

X

D Personnel actions

11. Which term denotes "skills" when it is used for employees? Choose the correct answer.

842

X

A Requirements

X

B Qualifications

X

C Talent

X

D None of these



12. An employee enrolls in a class using Training and Event Management. There is an internal charge to that employee's cost center. Which SAP ERP component is used to transfer the cost? Choose the correct answer. X

A Financial Accounting

X

B Materials Management

X

C Controlling

X

D Production Planning

13. A customer attends your organization's internal training class. You need to invoice the customer for the costs of that class. Which SAP ERP component would you use to perform billing? Choose the correct answer. X

A Management Accounting

X

B Sales and Distribution

X

C Materials Management

X

D Human Capital Management

14. Which function is triggered by specific activities in Training and Event Management that you define as correspondence relevant? Choose the correct answer. X

A Correspondence history

X

B Automatic correspondence

X

C Error handling correspondence workflow

15. Enterprise Compensation Management allows you to perform job pricing. Determine whether this statement is true or false. X

True

X

False


843


16. The remuneration statement of an employee comprises all payments and deductions that were determined for that employee during one ___________________. Choose the correct answer. X

A Calendar year

X

B Payroll period

X

C Fiscal year

X

D None of the above

17. Which of the following steps are included in the phases of an appraisal? Choose the correct answers. X

A Planning and Review

X

B Execution

X

C Evaluation

X

D Release

18. Which of the following functions can an employee perform by using employee self-service (ESS)? Choose the correct answers. X

A Search the Who’s Who

X

B View the calendar

X

C Check workflow work items

X

D Employee reviews

19. Which of the following areas are covered in manager self-service (MSS)? Choose the correct answers.

844

X

A Employee reviews

X

B Change requests of an employee

X

C Monitoring

X

D Execution


Terp10 en Col10 Ilt Fv Inst a4

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