H80_BPP_EN_DE

SAP ECC 6.00

August 2006

English

H80: Make-to-Order (MTO) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Procedure

SAP Best Practices H80 MTO w. Repetitive Manufacturing, Third-Party Order Proc. & Subcontracting

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ContentsH80: Make-to-Order (MTO) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting......................................................................................................6

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

Process Flow................................................................................................................................. 6

Organizational and Master Data....................................................................................................8

Preliminary Steps............................................................................................................................ 11

Uploading the Evaluation Role....................................................................................................11

Business Process Procedure..........................................................................................................12

Creating Standard Cost Estimate for Material.............................................................................12

Marking and Releasing Material Price.........................................................................................13

Creating Product Cost Collector..................................................................................................15

Processing Forecast Delivery Schedule for Scheduling Agreement............................................16

Material Requirements Processing at Plant Level.......................................................................16

Evaluation of the Stock/Requirements List..................................................................................19

Creating Forecast Delivery Schedule for Subcontractor H8000..................................................20

Material Requirements Planning at MRP Area Level (Subcontractor H8000).............................21

Evaluating the Stock/Requirements List at MRP Area Level H8000...........................................22

Stock/Requirements List for Material H80-1110..........................................................................22

Stock/Requirements List for Provided Material H80-1120...........................................................23

Creating Forecast Delivery Schedule for Third-Party Order Vendor H8001................................24

Checking Delivery Address for Third-Party Procurement............................................................26

Posting a Goods Receipt.............................................................................................................26

Creating Initial Stock for Raw Materials.......................................................................................27

Creating Stock By Backflushing from Production - H80-1120.....................................................28

Generating the Delivery of Material Provided..............................................................................29

Picking and Goods Issue Posting for the Material Provided........................................................30

Posting a Goods Receipt for a Subcontracted Material...............................................................31

Displaying the Material Document...............................................................................................32

Optional: Displaying the Subcontracting Costs in Cost Center Accounting.................................33

Creating Stock by Backflushing from Production - H80-1200......................................................34

Creating Forecast Delivery Schedule for Component Supplier H8002........................................35

Posting Goods Receipt of Purchased Material............................................................................36

Backflushing in Production..........................................................................................................37

Generating Delivery.....................................................................................................................38

Displaying Delivery with Shipping Notification.............................................................................39

Processing and Issuing Billing Due List.......................................................................................39

Creating an Invoice.....................................................................................................................40



Overhead Calculation..................................................................................................................41

Running Variance Calculation.....................................................................................................42

Running Settlement..................................................................................................................... 43

Displaying Report for Product Cost Collector..............................................................................44



H80: Make-to-Order (MTO) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting

PurposeThe scenario H80 – Make-to-Order (MTO) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting, describes the business process collaboration between a high tech customer and a high tech supplier (manufacturer). Both parties collaborate using an outline agreement and communicate through EDI. The manufacturer produces components through repetitive manufacturing. A make-to-order planning strategy is used. In the procurement process, the supplier (manufacturer) has three kinds of processes: Standard purchase process to 2nd tier component supplier; third party procurement, and subcontracting using scheduling agreements.

Process Flow

SAP AG 2004

High Tech Value Chain 8

SubcontractorH8000

CustomerDelivery H80 - 1000

Forecast/JIT delivery scheduleMobile phone (EXT-H80-1000)

simulated only

Delivery of SMD – kitComponent: H80 -1110

Third-party order vendor H8001

FDS

SMD

-ki

t (H

80-1

110)

FDS

subcontracting scheduling

agreement

for assembly:

H80 - 1100

Prov. of m

atls or comps:

H80 -1120

Delivery: H

80 -1100

FDS

VendorH8002

Delivery of assembly H80-1300 Manufacturer

L2001

MTO-Production w. Rep. Manuf., Third-Party Order Procurement and Subcontracting: Overview

This business process procedure focuses on:

SD/MM Scheduling agreement processing with forecast delivery schedules

Third-party procurement as provision of materials for the subcontractor

Subcontracting process with scheduling agreements and provision of material



Material requirements planning at the plant level (MRP area: plant) and separate material requirements planning for subcontracting at the vendor's subcontractor level (MRP area: subcontractor)

Repetitive manufacturing

EDI communication between business parties

The mobile phone manufacturer is called L2001. They supply and mount their products in accordance with the delivery schedule from the customer (H8001). The delivery is made free of charge to the customer's plant. The assemblies, modules, or components required from other vendors are ordered and planned by the manufacturer and delivered to him for system assembly (modular outsourcing).

At the customer’s plant, planned independent requirements for the material “Mobile phone HT” (material number at customer: EXT-H80-1000) exist for a particular point in time or over a particular period of time. Since the source list contains a specific vendor (fixed vendor) for the material, together with the appropriate outline agreement, requirements planning generates scheduling agreement schedule lines. Once these schedule lines have been maintained, forecast delivery schedules are created. These are then sent to the vendor (in this case, the manufacturer of the mobile phone) via EDI, whereby an appropriate JIT call profile is assigned to the scheduling agreement.

The customer view is not part of the scenario. These preliminary processes are only described and simulated by using an eCATT to create a scheduling agreement, which contains the relevant delivery schedules for the manufacturer.

A requirement now exists for the finished product Mobile phone HT (material number H80-1000). The downstream requirements planning phase (MRP area at plant level) generates scheduling agreement schedule lines for the components (modules) that have to be procured externally or subcontracted, in addition to planned orders for final assembly.

Scheduling agreement schedule lines are created for:

Electronics unit modules (material H80-1110) for subcontractor H8000,

Housing modules (material H80-1300) for vendor H8002,

The schedules are sent via EDI.

An MRP run is first carried out at the MRP area level (H8000) for the components of assembly H80-1100 that are manufactured by subcontractor H8000.

The MRP run at the MRP area level thus generates:

Scheduling agreement schedule lines for: SMD-kit (material H80-1110) and third-party order vendor H8001. This material is delivered directly by third-party order vendor H8001 to subcontractor H8000.

Stock transfer reservations and material reservations at the plant level for:Board, individual material (material H80-1120). Subcontractor H8000 is provided with this material by manufacturer.

Planned order for in-house production of material H80-1120.

The SMD-kit H80-1110 is delivered directly by third-party order vendor H8001 to subcontractor H8000. When the goods are received for the procurement scheduling agreement for the SMD kit, the quantity received is posted to the stock provided to the subcontractor. This is ensured by an indicator in the procurement scheduling agreement. A delivery is generated by manufacturer for a further material (H80-1120), which is delivered to subcontractor H8000 as material provided. The goods are posted to special stock when the goods issue is posted.

The subcontracted materials (electronics unit, assembled printed circuit board) are then returned to the manufacturer. When the goods receipt is posted, the goods issue for the materials provided is



posted from the special stock. The electronics unit and further components are now processed further in production.

The finished product Mobile phone is then produced for the customer in final assembly. When the mobile phone is backflushed in repetitive manufacturing (final assembly), the material is posted to the make-to-order stock for the customer (H8001). Finally, a delivery to the customer/dealer is generated for the mobile phone. When the delivery is created, a shipping advice note is sent to the forwarding agent. The shipping notification is sent to the customer/dealer after the goods issue has been posted.

The customer receives the shipping notification via EDI. When the customer/dealer receives the delivery, a goods receipt is posted with reference to the shipping notification.

The manufacturer creates an invoice for the customer/dealer. The invoice is then sent via EDI when it is passed on to FI.

The customer receives the invoice and carries out invoice verification.

The customer view is not part of the scenario. These downstream processes are only described. The EDI exchange is only implemented on the manufacturer side.

Organizational and Master DataThe following organizational and master data is required in the scenario:

Manufac-turer

Customer Vendor Subcontractor Third-party ord. vendor

Controlling area BP01

Company code BP01

Plant BP01

Shipping point BP01

Sales organization BP01

Distribution channel 01

Division 01

Sales area BP01

Sales office BP01

Number which the customer has assigned to the vendor

L2001 H8001 H8002 H8000 H8001

Sold-to party H8001

Bill-to party H8001

Payer H8001

Ship-to party H8001

Employee responsible 5

Unloading point

Receiving point



Manufac-turer

Customer Vendor Subcontractor Third-party ord. vendor

Forwarding agent H8003

MRP area H8000 H8001

Outline agreement & material number at vendor

5600000055

H80-1300


5600000067

H80-1100


5600000050

H80-1110

Scheduling agreement number & customer material number

35000007

H80-1000



The diagram below outlines the material BOM structure in this scenario:

SAP AG 2004

MTO-Production w. Rep. Manuf., Third-Party Order Procurement and Subcontracting: Product Structure

H80-1000Mobile Phone

FERT

PD

H80 -1100Electronics unit

HALBPD

H80 -1200

Display

HALB

PD

H80 -1300

Casing

HALB

PD

SC

TP

Subcontracting

Third-party Order Procurement

H80 -1210Window

ROH

PD

H80 -1220Display Unit

ROH

PD

H80 -1310Front cover

ROH

PD

H80 -1320Back cover

ROH

PD

H80 -1110SMD - kit

ROH

PD

H80 -1120Board, individualt

HALB

PD

H80 -1121Panel (board)

ROH

PD

SC

TP

H8000

MRP Area



Preliminary Steps

Uploading the Evaluation Role

UseBefore you can begin performing the steps described in the Business Process Procedure, you need to upload the evaluation role for this scenario and assign it to your user. An evaluation role enables you to comfortably access all transactions required for the business application testing.

You have to install an evaluation role for each scenario. The following role is available:

Technical name Description File name for upload

/SMB50/H80_05U H80: Make-to-Order (MTO) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting

_SMB50_H80_05U.SAP

ProcedureFor more information about uploading the evaluation role to the system and working with roles, see to the Essential Information building block.



Business Process Procedure

Creating Standard Cost Estimate for Material

Prerequisites Materials, BOM, routing, work centers, costing variant must have been created.

Use The purpose of this activity is to compute a price for the material that will then be updated in the material master as the standard price. The standard price is used to valuate goods movements within the company.

Procedure

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

SAP role menu Create Material Cost Estimate

Transaction code CK11N

2. On the Create Material Cost Estimate with Quantity Structure screen, make the following entries:

Field name Description User action and values Comment

Material H80-1000

Plant BP01

3. On the Costing Data tab page, make the following entries and choose Enter:


Costing Variant

YPC1

Costing Version

01

4. Select the Dates tab page, choose Default Values and make the following entries:


Costing Date from

(today’s date)

5. Choose Enter. The costs are calculated for the material and the result is displayed.

6. Choose Save.

Result The standard cost estimate has now been created.

Marking and Releasing Material Price



Prerequisites Material costing must have been performed.

Use Price update means updating the results of material costing in the material master record. It consists of two steps, marking the price computed and then releasing it. Marking the price means setting it as the future price for the material, releasing it means making it the current standard price. Before you can do the marking, you have to allow it for the company code involved.

If you already issued the marking allowance in company code BP01 for the current period and costing variant YPC1, for example while processing scenarios J64 or J65, skip steps 2 to 7 and proceed with step 8.

Procedure


SAP role menu Price Update with Cost Estimate

Transaction code CK24

2. On the Price Update: Mark Standard Price screen, make the following entries:


Posting Period (current period)

Fiscal Year (current fiscal year)

3. Choose Marking Allowance.

4. On the Price Update: Organizational Measure screen select the line for company code BP01 then choose Issue marking allowance.

5. In the Permitted std cost est variance dialog box, make the following entries:


Costing variant YPC1

Costing Version 01

6. Choose Issue allowance for marking (Enter).

7. Choose Back.

8. On the Price Update: Mark Standard Price screen, make the following entries:


Company Code BP01

Plant BP01

Material H80-1000

Test Run Do not set indicator

Background processing

Do not set indicator

9. Choose Execute.

10. Choose Back.



11. Choose Release.

12. On the Price Update: Release Standard Price screen, make the following entries:


Posting Period (current period)


Company Code BP01

Plant BP01

Material H80-1000

No. of materials in document

128




13. Choose Execute, then choose Back.

14. Repeat step 1-13 for material H80-1200 and H80-1120.

Result The cost estimate computed in the previous step is now set as the current standard price for the material. Future movements of material H80-1000 will now be valuated at this price.



Creating Product Cost Collector

Use The product cost collector is a CO order that is not limited in lifespan. Unlike make-to-stock-manufacturing, repetitive manufacturing quantities and values are not tracked on the same order. There is a logistic order to record quantities and a CO order to record values. The CO order is actually the product cost collector.

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

SAP role menu Maintain Product Cost Collector

Transaction code KKF6N

2. On the Display Product Cost Collector screen, enter the following data:


Material H80-1000

Plant BP01

3. Choose Create Product Cost Collector.

4. On the Create Product Cost Collector dialog box, make the following entries:


Material H80-1000

Order Type YREM

Controlling level

Production Version

Planning Plant BP01

Production Version

0001

5. Choose Confirm and Save. Confirm the dialog box concerning the preliminary cost estimate.

6. Choose Yes.

7. Enter through dialog box.

8. The preliminary cost estimate is displayed. Analyze the costs.

9. Repeat step 1-7 for material H80-1200 and H80-1120 and choose Exit.

ResultA product cost collector has been created



Processing Forecast Delivery Schedule for Scheduling Agreement

UseThe delivery schedule is created in the sales scheduling agreement accordingly. The purpose of this activity is to display the forecast delivery schedule created.

Procedure

1. Access the activity using one of the following navigation options:

SAP role menu Display Scheduling Agreement

Transaction code VA33

2. On the Display Scheduling Agreement: Initial Screen, make the following entries:


Scheduling Agreement

35000007

3. Confirm your entries with Enter.

4. The Display Scheduling Agreement 35000007: Overview screen then displays the scheduling agreement header and item data.

5. From the scheduling agreement, you can call up the forecast delivery schedule. To do so, select the item and, from the menu, choose Goto Item Forecast dlv. sched.

You can display the document flow from the scheduling agreement: Choose Environment Display document flow.

In Customizing (Sales and Distribution Sales Sales Documents Sales Document Header Define Sales Document Types), you can specify whether forecast delivery schedules or JIT delivery schedules are relevant for deliveries or materials planning. At the same time, you also specify the item category used (in Customizing: Sales and Distribution Sales Sales Documents Schedule Lines Assign Item Categories).

6. Go back to the overview screen.

7. Choose Back to return to the SAP Easy Access screen.

ResultYou have checked the sales delivery schedule in the sales scheduling agreement.



Material Requirements Processing at Plant Level

UseThe finished product H80-1000 Mobile phone and the three assemblies H80-1100 Electronics unit, H80-1200 Display, and H80-1300 Casing are planned at plant level. A requirement now exists for material H80-1000 in plant BP01. Requirement planning is carried out for MRP area BP01 (MRP area at plant level).

Requirements planning results in scheduling agreement delivery schedule lines for the subcontracted materials H80-1100 and external purchased material H80-1300. The subordinate components of H80-1100 are planned later in a subsequent MRP area planning run.

For in-house production of the display, planned orders are generated by the MRP run for material H80-1200.

Run schedule quantities are also created for the finished product H80-1000, which is to be delivered to the customer.

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

SAP role menu MRP - Single-Item, Multi-Level

Transaction code MD02

2. On the Single-Item, Multi-Level screen, make the following entries:

Field name Description User Action and Values Comment

Material H80-1000

MRP area BP01

Plant BP01

Scope of planning

Product group

MRP control parameters

Processing key NETCH

Create purchase req.

2 Purchase requisitions in opening period

Delivery schedules

3 Schedule lines

Create MRP list

1 MRP list

Planning mode 3 Delete and recreate planning data

Scheduling 1 Basic dates will be determined for planned orders




Process control parameters

Also plan unchanged components

(remove indicator)

Display results before they are saved

(remove indicator)

Display material list

(remove indicator)

Simulation mode

(remove indicator)


4. Confirm system information with Enter.

5. Go back to the SAP Easy Access screen.

Result

MRP planning has been executed and the production plan or procurement proposal for components created.



Evaluation of the Stock/Requirements List

UseThe current stock/requirements list is evaluated for material H80-1000 (MRP area BP01).

This purpose of this activity is to check the MRP planning results. The MRP planner can evaluate the stock/requirement list, carry out a feasibility analysis and make any possible improvements.


SAP role menu Display Stock/Requirements Situation


2. On the Stock/Requirements List: Initial Screen, enter the following values for the materials:


Material H80-1000

MRP area BP01

Plant BP01


4. The quantity change for the scheduled material should be visible in the Rec./reqd. qty field.

5. This list shows the requirements from customer scheduling agreement 35000007; the procurement elements are the planned orders for final assembly and the MRP element is the sales order stock. This means that this customer stock can only be delivered to these customers.

6. Display the Current Stock/Requirements List again for materials H80-1100, H80-1200 and H80-1300. To do so, enter the following values:


Material H80-1100 Enter H80-1200 and H80-1300 separately.

MRP area BP01

Plant BP01

The BOM explosion during the MRP run has generated dependent requirements for the components. Dependent requirements have also been generated at plant level (MRP area BP01) for subcontracted material H80-1100 Electronic units and external purchased material H80-1300. These dependent requirements are covered by means of schedule lines in a procurement scheduling agreement for subcontractor H8000 and vendor H8002. Planned orders are generated by the MRP run for in-house production of material H80-1200.




Creating Forecast Delivery Schedule for Subcontractor H8000

UseThe purpose of this activity is to create a forecast for subcontractor H8000 for the (subcontracted) quantity they have to deliver over the next 6 months.


SAP role menu Maintain Scheduling Agreements Delivery Schedule Lines

Transaction code ME38

2. On the Maintain Sch. Agmt. Schedule: Initial Screen, position your cursor in the Agreement field and call up input help (F4). Choose the Purchasing Documents for Material tab page.

3. Enter the following values in the Restrict value range dialog box:


Material H80-1100

Plant BP01

4. Confirm your entries.

5. In the results list, choose purchasing document 5600000067 by double-clicking it.

You can also find out the purchasing document for the material from the source list.

6. Confirm your entry.

7. On the Maintain Sch. Agmt. Schedule: Item Overview screen, select the line that contains material H80-1100.

8. Choose Edit Generate forc. sched.

9. Save your entries. You are now back in the Maintain Sch. Agmt. Schedule: Initial Screen. Choose ENTER to go back to the Maintain Sch. Agmt. Schedule: Item Overview screen.

10. On the Maintain Sch. Agmt. Schedule: Item Overview screen, select the first item and choose Item SA release docu.

11. On the Overview: FRC sched. screen, choose the Creation/transmission tab page and note the date and time of the last forecast delivery schedule message created.

12. Select the last forecast delivery schedule (with the "green" traffic light) and choose Messages per release. Here, you can see that the message YPH1 (forecast delivery schedule) has a green traffic light (successfully processed).




Material Requirements Planning at MRP Area Level (Subcontractor H8000)

Material requirements planning can be carried out at MRP area level. The MRP area is an organizational unit for which requirements planning can be carried out separately. The introduction of MRP areas enhances transparency within a plant and provides a greater degree of differentiation in material requirements planning. When requirements are planned at plant level, the various requirements are grouped in the planning run and procurement elements are created for them without pegging. MRP areas, for example, allow the provision of components for the subcontractor vendors to be planned separately (not anonymously) from other requirements.

UseRequirements planning for the components for subcontracted material H80-1100 must be carried out separately. This means that components H80-1110 SMD kit and H80-1120 Board, individual (material provided) are planned in MRP area H8000 and not in MRP area BP01 (plant level).

Prerequisites The MRP areas are defined and the components extended to the MRP area.


SAP role menu MRP Planning Run


2. On the MRP Run screen, make the following entries:


Scope of planning L01 (for Subcontracting I and MRP area H8000)

Plant

MRP control parameters

Processing key NETCH

Create purchase req.

2 Purchase requisitions in opening period

Schedule lines 3 Schedule lines

Create MRP list 1 MRP list

Planning mode 3 Delete and recreate planning data

Scheduling 1 Basic dates will be determined for planned orders

Parallel processing

Planning date Current date




The scope of planning for the MRP run can be defined in Customizing. Here, the scope of planning is calculated on the basis of the MRP areas, for example.

4. Confirm system information with ENTER.


Evaluating the Stock/Requirements List at MRP Area Level H8000

UseThe current stock/requirements list is evaluated for (third-party order) material H80-1110 (MRP area H8000). This can also be carried out for subcontracting material H80-1120 at plant level (MRP area BP01) and for MRP area H8000.

Stock/Requirements List for Material H80-1110




2. On the Stock/Requirements List: Initial Screen, make the following entries:


Material H80-1110

MRP area H8000

Plant BP01


4. This list shows the subcontracting requirements (MRP element SubReq) for material H80-1100 and the schedule lines in procurement scheduling agreement 5600000050 that were generated by the MRP run.

The MRP run has generated schedule lines in the scheduling agreement for material H80-1110. This material is delivered directly by vendor H8001 to subcontractor H8000.




Stock/Requirements List for Provided Material H80-1220

UseMaterial H80-1120 is provided to subcontractor H8000. The MRP run generates stock transfer reservations for this purpose. In this activity, the MRP planner checks the stock/requirement list.




2. On the Stock/Requirements List: Initial Screen, make the following entries:


Material H80-1120

MRP area H8000

Plant BP01


4. This list shows the subcontracting requirements (MRP element SubReq) for the (assembly) material H80-1100. You can also see the stock transfer reservations generated by the MRP run for (component) material H80-1120 (MRP element TrnRes).

5. Go back to the Stock/Requirements List: Initial Screen, make the following entries:


Material H80-1120

MRP area BP01

Plant BP01


To enable the requirement of material provided for the subcontractor H8000 with material H80-1220 to be passed on, material reservations (MR-Res) are now made at the plant level (MRP area BP01) on the basis of the stock transfer reservations. Run schedule quantities (planned orders) are generated at plant level for these material reservations.




Creating Forecast Delivery Schedule for Third-Party Order Vendor H8001

UseThe MRP run at MRP area level H8000 has automatically created schedule lines in the procurement scheduling agreement. Forecast delivery schedules are created from the scheduling agreement delivery schedule lines. The schedules are sent via EDI. A release profile is assigned to the scheduling agreement in this example. According to this profile, forecast delivery schedules are sent to the vendor at weekly intervals for the next six months.

Prerequisites The purchasing scheduling agreement has been maintained and the EDI configuration completed.


SAP role menu Create Delivery Schedules for Scheduling Agreements


2. On the Create Releases screen, make the following entries:


Choose release type

FRC scheds. only Set indicator

Select scheduling agreements

Plant BP01

MRP area Leave this field blank

Vendor H8001

Scope of select. [ ] (blank) Changed or next date

Created on

JIT Scheds Acc. to strat. in profile

FRC Scheds Acc. to strat. in profile

Deactivate tolerance check


Additional functions

Test run Do not set indicator

3. Choose Execute.

4. On the Create Releases screen, the system displays the messages together with the forecast delivery schedule numbers.




The third-party order vendor H8001 delivers the SMD-kit material H80-1110 directly to subcontractor (vendor) H8000. You can check this in the scheduling agreement 5600000050.

Result Purchasing planner has sent out the purchasing forecast to 3rd party order vendor.



Checking Delivery Address for Third-Party Procurement

UseThe third-party order vendor H8001 delivers SMD kit material H80-1110 directly to the subcontractor (vendor) H8000. The purpose of this activity is to check this in the scheduling agreement 5600000050.


SAP role menu Display Scheduling Agreements - MM

Transaction code ME33L

2. On the Display Scheduling Agreement: Initial Screen, make the following entries:


Agreement 5600000050


4. Select the item and choose Item More functions Delivery address. In the vendor field, you can see the vendor number for subcontractor H8000. The SC vendor field is also checked. This means that material H80-1110 is delivered to subcontractor H8000 directly.


Posting a Goods Receipt

UseIn this activity, you post a goods receipt for material H80-1110 after the third-party order vendor has delivered the material to the subcontractor.

Prerequisites

The third party purchasing scheduling agreement has been created successfully.


SAP role menu Goods Receipt from External Procurement

Transaction code MIGO

2. Enter the following values in the Goods receipt Purchase order xxx <User> screen:


Goods receipt Purchase order

5600000050 Enter the number of the purchasing document in the document number field



Document date Today's date

Posting date Today's date


If the message Document 5600000050 does not contain any selectable items is displayed, no requirements elements exist in the near future. To post a goods receipt from the Goods receipt Purchase order … screen, choose Settings Default values and Propose all items.Save your entries and confirm them once again.

4. Select line 1 (with the material short text SMD – kit). On the Where tab page in the lower screen area, you can check movement type 101 (GR to SC vendor) and plant BP01.

5. The Qty tab page displays the proposed goods receipt quantity. If no quantity is proposed, enter the appropriate schedule line quantity of the MM scheduling agreement.

6. In the lower screen area, set the Item OK indicator.

7. Post the goods receipt. The following message appears: Material document 500000xxxx posted.


Result

Components ordered by third party order are received into the stock of subcontractor supplier.

Creating Initial Stock for Raw Materials

UseIn the real business cases, the raw materials are usually purchased from external vendors, which can be covered by the standard purchasing processing. However, sometimes posting initial goods receipt is also alternative option. The purpose of this activity is to describe the process of increase stock by creating initial goods receipt.


SAP role menu Creating Initial Stock for Raw Materials

Transaction code MB1C

2. On the Enter Other Goods Receipt: Initial screen, make the following entries:


Movement Type

561

Plant BP01

Storage Location

0002




4. On the Enter Other Goods Receipt: New Items screen, make the following entries:


Material H80-1121 Material H80-1210, H80-1220 can be put in separate lines for posting together.

Quantity 500

5. Choose Save. The following message appears: Document 490000xxxx posted.

6. Go back to the SAP Easy Access screen by choosing Cancel.

Result

Initial goods receipt for raw materials is posted and the stock is increased.

Creating Stock By Backflushing from Production - H80-1120

UseStock is created in supplier plant BP01 for material H80-1120 by backflushing quantities from production.

The purpose of this activity is to confirm the production for repetitive manufacturing and receive semi-finished goods in stock.


SAP role menu Backflushing in Repetitive Mfg

Transaction code MFBF

2. On the REM Backflush – Transaction Variant: None screen, make the following entries:


Backflush qty

100 The quantity can be taken from the selected planned order.

Make-to stock

Material H80-1120

Plant BP01

Planned order

Choose with F4 Choose a planned order for material H80-1120 with F4. Choose the planned order with the earliest order start date with quantity 100.

3. Confirm your entries with Enter and then post the backflush.

4. The following message appears: GR with document 490000xxxx posted.




Result

Repetitive manufacturing for semi-finished product is confirmed and the stock is increased.

Generating the Delivery of Material Provided

UseA delivery is generated for material H80-1120. The manufacturer posts this material to the subcontractor as material provided.

Prerequisites

The subcontractor purchasing scheduling agreement and the delivery schedule have been created.


SAP role menu SC Stock Monitoring (Vendor)

Transaction code ME2O

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


Vendor H8000

Components provided

Assembly

Plant BP01

3. Choose Execute.

4. In the list displayed, select the row that contains material H80-1120.

5. Choose Create delivery.

6. Enter storage location 0002 in the dialog box that then appears. Enter the quantity 100. Confirm your entries.

The system outputs the messages on the created delivery/deliveries. A delivery is created for 100 PC. Go back to the SC Stock Monitoring by Vendor screen by confirming the message.

7. You can display this delivery in the SC Stock Monitoring by Vendor screen by expanding the Deliveries with open GI entry in the row for material H80-1120, positioning your cursor on a delivery, and choosing Display element.

8. Go back to the SC Stock Monitoring by Vendor screen.

The goods issue pushbutton posts directly from the unrestricted stock to the SC stock. No open quantities are reduced in deliveries.



Result

Delivery for components is created.

Picking and Goods Issue Posting for the Material Provided

UseA goods issue is generated for material H80-1120. The manufacturer delivers the material to the subcontractor as material provided.

The purpose of this activity is to post the good issue to the delivery created, thus increasing the vendor sub-contract stock.

Prerequisites

The delivery has been created for the components provided to the sub-contractor.

Procedure1. You are still in the SC Stock Monitoring by Vendor screen and have also expanded the list of

deliveries with open goods issue (GI).

2. Double-click the first delivery in the list. The Delivery for subcon. xxxxx Display: Overview screen is then displayed.

3. Choose the Display <-> Change.

4. On the Delivery for subcon. xxxxx Change: Overview screen, choose the Picking tab page.

5. Copy the quantity from the Delivery quantity field to the Pick quantity field.


7. To post the goods issue, choose Post goods issue.

8. Save your entries and go back SAP easy access screen.

The quantities in the SC Stock Monitoring for Vendor screen do not change until you call up the transaction ME2O again.

Posting a Goods Receipt for a Subcontracted Material

UseThe goods receipts are posted for material number H80-1100, which is delivered by subcontractor H8000.

The purpose of this is activity is to post the goods receipt from the subcontractor. Components consumed in sub-contracting are posted with the planned quantity, subcontracted material is



received into stock and the subcontracting service is charged according to subcontracting info record.




2. On the Goods receipt Purchase order xxx <User> screen, make the following entries:


Goods receipt Purchase order

5600000067 Enter the value in the document number field in the purchasing document




If the message Document 5600000067 does not contain any selectable items is displayed, no requirements elements exist in the near future. To post a goods receipt from the Goods receipt Purchase order screen, choose Settings Default values and Suggest all items. Save your entries and confirm them once again.

4. On the Qty tab page at the bottom of the screen, enter 100 in the Qty in unit of entry field and confirm your entries.


6. Post the goods receipt. The following message appears: Material document 500000xxxx posted. Make a note of the material document number:

Material document: ______________________________


Displaying the Material Document

UseNow display the material document for the goods receipt for material H80-1100, which was delivered by the subcontractor.


SAP role menu Display Material Document

Transaction code MB03



2. On the Display Material Document: Initial Screen, complete the Material doc. field with the material document number that you made a note of in the Posting a Goods Receipt from a Subcontracted Material section. Enter the current calendar year in the Mat. doc. year field.


4. The Display Material Document 500000xxxx: Overview screen now displays all the components of material H80-1100. This means that the goods receipt for material H80-1100 has been posted to the stock and that the two components (H80-1110 and H80-1120) have been posted goods issue from the stock of material provided to subcontrator.




Optional: Displaying the Subcontracting Costs in Cost Center Accounting

UseThe purpose of this activity is to track the subcontracting costs for the semi-finished products H80-1100 in the production (or purchasing) cost center.


SAP role menu Cost Centers: Actual/Plan/Variance

Transaction code S_ALR_87013611

2. On the Cost Centers: Actual/Plan/Variance: Selection screen, make the following entries:


Controlling area BP01

Fiscal Year Current fiscal year

From period Current period

To period Current period

Plan version 0

Cost center group

Or value(s) 1301 (or 1201) Cost center Production

or

Cost center Purchasing

Cost element group

Or value(s)

3. Choose Execute.

4. Under the cost element 61000 External activity for product, you can find the total costs for subcontracting in the current period.

5. Double-click on the actual costs to call up the Choose Report dialog box and then double-click the Cost Centers: Actual Line Items report.

6. In the line item report, the primary cost postings are listed for the subcontracting for semi-finished product H80-1100. Double-click to go to the relevant material document.

7. On the Display Material document 50000xxxx - <User> screen, choose the Doc. info tab page. Choose FI docmts.

8. One accounting (FI) document and one Cost accounting (CO) document are displayed here. The accounting document displays the account assignment for subcontracting component H80-1120 and the appropriate subcontracting. This example only shows cost accounting-relevant accounting assignment for subcontracting so that cost assignment is only carried out for the subcontracting at the cost center. This means that the CO document only contains the costs for subcontracting.



Creating Stock by Backflushing from Production - H80-1200

UseStock is created in plant BP01 for material H80-1200 by backflushing quantities from production.

The purpose of this activity is to confirm the production for repetitive manufacturing and receive semi-finished goods in stock.

Prerequisites

Repetitive manufacturing planning has been scheduled.


SAP role menu Backflushing in Repetitive Mfg


2. On the REM Backflush – Transaction Variant: None screen, make the following entries:

Field name Description User Action and Values

Comment

Backflush qty 100 The quantity can be taken from the selected planned order.

Make-to stock

Material H80-1200

Plant BP01

Planned order Choose with F4 Choose a planned order for material H80-1200 with F4. Choose the planned order with the earliest order start date with quanitity 100.

3. Confirm your entries with Enter and then post the backflush. This step posts the goods receipt to the warehouse and backflushes component materials H80-1210 and H80-1220.

4. The following message appears: GR with document 490000xxxx posted.


Result

Repetitive manufacturing for semi-finished product is confirmed and the stock is increased.



Creating Forecast Delivery Schedule for Component Supplier H8002

UseIn this activity, you create a forecast for vendor H8002 for the component quantity they have to deliver over the next 6 months.


SAP role menu Maintain Sched. Agreement Schedule


2. On the Maintain Sch. Agmt. Schedule: Initial Screen, position your cursor in the Agreement field and choose F4. Choose the Purchasing Documents by Ext. Mat tab page.

3. Enter the following values in the Restrict value range dialog box:


Material H80-1300

Plant BP01


5. In the results list, choose purchasing document 5600000055 by double-clicking it.

You can also find out the purchasing document for the material from the source list.


7. On the Maintain Sch. Agmt. Schedule: Item Overview screen, select the line that contains material H80-1300.

8. Choose Edit Generate forc. sched.

9. Save your entries. You are now back in the Maintain Sch. Agmt. Schedule: Initial Screen. Choose ENTER to go back to the Maintain Sch. Agmt. Schedule: Item Overview screen.

10. On the Maintain Sch. Agmt. Schedule: Item Overview screen, select the first item and choose Item SA release docu.

11. On the Overview: FRC sched. screen, choose the Creation/transmission tab page and note the date and time of the last forecast delivery schedule message created.

12. Select the last forecast delivery schedule (with the green traffic light) and choose Messages per release. Here, you can see that the message YPH1 (forecast delivery schedule) has a green traffic light (successfully processed).




Posting Goods Receipt of Purchased Material

UseThe purpose of this activity is to post the goods receipt for material number H80-1300.




2. On the Goods receipt Purchase order... screen, make the following entries:




Purchase order 5600000055


If the system issues the message Document 5600000055 does not contain any selectable items, no requirements elements exist in the near future. To post a goods receipt from the Goods receipt Purchase order screen, choose Settings Default values and Suggest all items. Save your entries and confirm them once again.

4. On the Qty tab page, at the bottom of the screen, enter 100 in the Qty in unit of entry field and confirm your entries.


6. Post the goods receipt. The following message appears: Material document 500000xxxx posted.


Result

Good receipt for purchased material is posted.



Backflushing in Production

UseMaterials H80-1100, H80-1200, and H80-1300 are further processed in production to manufacture the finished product H80-1000 (which is delivered to the customer). In this activity, the finished product is received into stock and the components are consumed from stock.


SAP role menu Backflushing In Repetitive Mfg


2. On the REM Backflush – Transaction Variant: None screen, on the Make-to-order tab page, make the following entries:


Posting date Current date

Document date Current date

Plant BP01

Doc. header text

Sales order 35000007

Sales ord. item 000010

To location 0010


4. In the Selection of Planned Orders dialog box, choose the appropriate order with the quantity 100 by double-clicking it.

5. Save your entries.

6. A document number is displayed which stands for the goods receipt posting of finished product H80-1000, and for the goods issue posting of components H80-1100, H80-1200, and H80-1300.

7. Choose Cancel to go back to the SAP Easy Access screen.

Result

The system posts the goods receipt of the finished material (assembly) and backflushes the components. At the same time, the system creates material documents and accounting documents.



Generating Delivery

UseA delivery to the customer (dealer) is generated for material H80-1000 (finished product). First, the date on which the customer called up the product is determined from the forecast delivery schedule.

The purpose of this activity is to generate delivery of finished product from the supplier to the OEM.


SAP role menu Display Scheduling Agreement

Transaction code VA33

2. Enter the value 35000007 in the Scheduling Agreement field in the Display Scheduling Agreement: Initial Screen and confirm your entries.

3. On the Display Sched. Agr. w/ Rel. 35000007: Overview screen, select the first item and choose Fore. DlSch at the bottom of the screen.

4. Make a note of the date of the first schedule line (delivery date requested by customer):

Date: ______________________________



SAP role menu Create Outbound Delivery

Transaction code VL01N

7. Maintain the Create Outbound Delivery with Order Reference screen in accordance with the following table:


Shipping point BP01

Order 35000007

Selection date Delivery date requested by customer

Use the date you made a note of above.


9. On the Outbound delivery Create: Overview screen, select the row that contains material H80-1000 and choose the Picking tab page.

10. Enter the quantity to be delivered in the Delivery quantity and Pick quantity fields, and confirm your entries.

11. To post the goods issue, choose Post goods issue. The message S.A.Std. Delivery 800000XX has been saved is then displayed. Make a note of the outbound delivery number.

Outbound delivery: ______________________________




Displaying Delivery with Shipping Notification

UseA delivery to the customer (dealer) has been generated for the material H80-1000 (finished product). You want to check the delivery to determine whether the forwarding agent has been notified.

The purpose if this activity is for the supplier planner to check the shipping notification created in the delivery.


SAP role menu Display Outbound Delivery

Transaction code VL03N

2. On the Display Outbound Delivery screen, make the following entries:

Field name Description User Action and Values

Comment

Outbound delivery

Outbound delivery number

The number is defaulted by the system. Otherwise, enter the delivery number noted above.


4. On the S.A.Std. Delivery Display: Overview screen, select the row that contains the material H80-1000 and choose Extras Delivery output Header.

Outbound delivery: YAVA for shipping notification.


Processing and Issuing Billing Due List

UseIn this activity, an invoice is created and sent to the head office of the customer (dealer). The invoice is sent via EDI when it is posted to FI.

The goods receipt is posted with reference to the shipping notification on the customer side. This step is usually carried out using the information from the shipping notification. This step is not implemented, because the focus of this process is on the manufacturer side.



Creating an Invoice


SAP role menu Process Billing Due List

Transaction code VF04

2. On the Process Billing Due List screen, make the following entries:


Billing date from Current date

to Current date Proposed by system

Sold-to party H8001

Delivery-related select

3. Choose Billing document Display billing list (F8).

4. On the Process Billing Due List screen, the system displays the outbound deliveries waiting to be billed. The outbound delivery number in question is shown in the Document column.

5. Select the outbound delivery you created and confirm your entry, then choose Individual billing document.

6. The Invoice (F2) Create: Overview of Billing Items screen is then displayed.

7. Save the invoice.

8. The message Document 9000xxxx has been saved is then displayed. Make a note of the invoice number.

Invoice: ______________________________


When you create the invoice, it is passed on to FI. The invoice is then sent via EDI when it is passed on to FI.


SAP role menu Display Billing Document

Transaction code VF03

11. On the Display Billing Document screen, enter the following data:


Billing document

Invoice number Proposed by system. Otherwise, enter the invoice number you noted above.


13. On the Invoice … (F1) Display: Overview of Billing Items screen, the system displays all of the invoice items.

14. Choose Goto Header Output.



15. The output transferred is displayed for each invoice number. The green traffic light indicates that the data has been transferred successfully.


Result The invoice to dealer has been posted and sent to OEM via EDI. The customer receives the invoice and carries out invoice verification. This step is not described in this document.

Overhead Calculation

Use Overhead calculation is performed to charge the product cost collector with costs that cannot be assigned to it directly, such as warehouse costs or procurement costs. Decisive for overhead calculation is the costing sheet transferred to the product cost collector from its order type.

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

SAP role menu Act. Overhead: Prod.Ordr Ind.Pro.

Transaction code CO42

2. If the Set Controlling Area dialog box appears, enter BP01 then choose Enter.

3. On the Actual Overhead Calculation: Product Cost Collector screen, make the following entries:


Material H80-1000

Plant BP01

Period (current period)


Test Run Set indicator

Detail List Set indicator

4. Choose Execute (F8).

5. Choose Next list Level.

6. Choose Back.

7. Deselect the Test Run indicator.

8. Choose Execute (F8)

9. Choose Back.

10. Check the overhead costs on the product cost collector. To do so, do the following steps:

SAP role menu Analyze Product Cost Collector

Transaction code KKBC_PKO



11. On the Analyze Product Cost Collector: Target/Actual - Comparison screen, make the following entries:


Material H80-1000

Plant BP01

Time frame limited

Period from (current period / fiscal year)

Period to (current period / fiscal year)


Result Overhead costs have now been transferred to the product cost collector as specified in the costing sheet.

Running Variance Calculation

UseVariance calculation compares the actual costs incurred for the production/process order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.

Procedure


SAP role menu Variances - Product Cost by Per. (I)

Transaction code KKS6

2. On the Variance Calculation: Initial Screen, make the following entries:


Material H80-1000

Plant BP01

Period (current period)


All target cost versions

Set indicator

Selected target cost versions



Detail List Set indicator




4. Check log.

5. Choose Exit.

Result Variances have now been calculated for the product cost collector. They have been assigned to the various variance categories.

Running Settlement

UseThe settlement activity transfers the costs assigned to the various variance categories during variance calculation from the product cost collector to CO-PA and the difference to FI (see description from period end closing H84). Furthermore, the WIP is transferred to Financial Accounting according to the customized posting rules. (You do not determine WIP in this process)

Procedure


SAP role menu Actual settmt: prodn cost collector

Transaction code KK87

2. On the Actual Settlement: Product Cost Collector screen, make the following entries:


Material H80-1000

Plant BP01

Settlement Period

(current period)





Detailed List Set indicator

Check trans. data



4. Choose Detail Lists.

5. Choose Exit.



Result The variances have now been settled to CO-PA. WIP has been posted to Financial Accounting.

Displaying Report for Product Cost Collector

Use The SAP ERP information system provides various reports to analyze the costs incurred on a product cost collector. Check the costs with which the PCC was charged as well as the costs with which it was credited.

Procedure


SAP role menu Analyze Product Cost Collector

Transaction code KKBC_PKO

2. On the Analyze Product Cost Collector: Target/Actual - Comparison screen, make the following entries:


Material H80-1000

Plant BP01

Time frame limited

Period from (current period / fiscal year)

Period to (current period / fiscal year)

3. Choose Execute (F8).

4. Choose Back twice.

ResultThe costs incurred on the product cost collector are displayed.

You can also use transaction KE24 to show the line items in CO-PA, record type C for settlement variance, and record type F for billing and valuation.

In a real business scenario, you would execute the period end closing for all product cost collectors collectively in a batch job.
