LO925_46C - Cross-Application Business Processes in SD and MM

LO925 Cross-Application Business Processes in SD and MM LO925

Release 46C 16.10.2001

LO925 Cross-Application Business Processes in SD and MM........................................................................................ 0-1

Copyright............................................................................................................................................................................... 0-2

Ventas y distribución...................................................................................................................................................... 0-3 Gestión de materiales ...................................................................................................................................................... 0-4 Course Prerequisites........................................................................................................................................................ 0-5

Target Group .................................................................................................................................................................... 0-6 Course Overview.................................................................................................................................................................. 1-1

Course Goals .................................................................................................................................................................... 1-2

Course Objectives............................................................................................................................................................ 1-3 Table of contents ............................................................................................................................................................. 1-4 Course Overview Diagram ............................................................................................................................................ 1-5

Main Business Scenario ................................................................................................................................................. 1-6 Third-Party Order Processing........................................................................................................................................ 1-7 Cross-Company Sales ..................................................................................................................................................... 1-8

Stock Transfer.................................................................................................................................................................. 1-9 Subcontracting............................................................................................................................................................... 1-10

Third-Party Order Processing............................................................................................................................................ 2-1

Third-Party Order Processing:Unit Objectives .......................................................................................................... 2-2 Third-Party Order Processing: Overview Diagram................................................................................................... 2-3 Third-Party Order Processing: Business Scenario ..................................................................................................... 2-4

Process for Third-Party Order Processing................................................................................................................... 2-5 1st Process Step: Create Sales Order............................................................................................................................ 2-6 Creating the Purchase Requisition................................................................................................................................ 2-7

Structure of Order with Third-Party Item.................................................................................................................... 2-8 Determination of Item Category .................................................................................................................................. 2-9 Schedule Line Category for Third-Party Order Processing................................................................................... 2-10 Determination of the Schedule Line Category ......................................................................................................... 2-11

2nd Process Step: Create a Purchase Order .............................................................................................................. 2-12 3rd Process Step: Post Goods Receipt ....................................................................................................................... 2-13 4th Process Step: Post Invoice Receipt for Purchase Order................................................................................... 2-14

5th Process Step: Bill for Sales Order........................................................................................................................ 2-15 Billing Relevance and Billing Quantity..................................................................................................................... 2-16 Third-Party Order Processing: Checklist for Customizing .................................................................................... 2-17

Third-Party Order Processing:Unit Summary .......................................................................................................... 2-18 Third-Party Order Processing Exercises .................................................................................................................. 2-19 Third-Party Order Processing Solutions................................................................................................................... 2-31

Cross-Company Sales.......................................................................................................................................................... 3-1 Cross-Company Sales:Unit Objectives I ..................................................................................................................... 3-2 Cross-Company Sales:Unit Objectives II.................................................................................................................... 3-3

Cross-Company Sales: Overview Diagram................................................................................................................ 3-4 Cross-Company Sales: Business Scenario .................................................................................................................. 3-5 Process for Cross-Company Sales Activity ................................................................................................................ 3-6

1st Process Step: Create Sales Order............................................................................................................................ 3-7 Allowed Delivering Plants............................................................................................................................................. 3-8 Price for Intercompany Billing...................................................................................................................................... 3-9

2nd Process Step: Execute Shipping Activities........................................................................................................ 3-10 Worksteps for Shipping Processing........................................................................................................................... 3-11 3rd Process Step: Create Invoice for End Customer ............................................................................................... 3-12

Elements of Invoice to End Customer ....................................................................................................................... 3-13

4th Process Step: Create Internal Invoice.................................................................................................................. 3-14 Elements of Internal Invoice ...................................................................................................................................... 3-15 Customer Master Record for Payer............................................................................................................................ 3-16

Conditions in Internal Invoice..................................................................................................................................... 3-17 Calculation Procedure in Internal Invoice................................................................................................................. 3-18 5th Process Step: Post Invoice Receipt...................................................................................................................... 3-19

Automatic Posting to Vendor Account...................................................................................................................... 3-20 Cross-Company Sales:Checklist for Customizing................................................................................................... 3-21 Cross-Company Sales: Unit Summary I.................................................................................................................... 3-22

Cross-Company Sales: Unit Summary II .................................................................................................................. 3-23 Cross-Company Sales Exercises................................................................................................................................. 3-24 Cross-Company Sales Solutions................................................................................................................................. 3-36

Intra-company Stock Transfer ........................................................................................................................................... 4-1 Intra-company Stock Transfer: Unit Objectives ........................................................................................................ 4-2 Intercompany Stock Transfer: Overview Diagram.................................................................................................... 4-3

Intra-company Stock Transfer: Business Scenario .................................................................................................... 4-4 Stock Transfer Procedure ............................................................................................................................................... 4-5 Process for Intra-company Stock Transfer in One-Step Procedure ........................................................................ 4-6

Two-Step Stock Transfer ............................................................................................................................................... 4-7 One-Step Procedure ........................................................................................................................................................ 4-8 1st Process Step: Create a Stock Transport Order ..................................................................................................... 4-9

Stock Transport Order and Requirements Planning................................................................................................ 4-10 2nd Process Step: Create a Replenishment Delivery .............................................................................................. 4-11 Customer Master Record for Ship-to Party............................................................................................................... 4-12

Determination of Outbound Delivery Parameters ................................................................................................... 4-13 3rd Process Step: Execute Picking and Post Goods Issue...................................................................................... 4-14 Effects of Goods Issue Posting (One-Step Procedure) .......................................................................................... 4-15 Movement Types for Stock Transfer with LE Delivery ......................................................................................... 4-16

Intercompany Stock Transfer:Checklist for Customizing ...................................................................................... 4-17 Intra-company Stock Transfer: Unit Summary ........................................................................................................ 4-18 Intercompany Stock Transfer Exercises .................................................................................................................... 4-19

Intercompany Stock Transfer Solutions.................................................................................................................... 4-27 Cross-Company Stock Transfer......................................................................................................................................... 5-1

Cross-Company Stock Transfer:Unit Objectives I .................................................................................................... 5-2

Cross-Company Stock Transfer:Unit Objectives II ................................................................................................... 5-3 Cross-Company Stock Transfer: Overview Diagram ............................................................................................... 5-4 Cross-Company Stock Transfer:Business Scenario .................................................................................................. 5-5

Process for Cross-Company Stock Transfer (Two -Step Procedure) ...................................................................... 5-6 1st Process Step: Create a Stock Transport Order ..................................................................................................... 5-7 Order Types for Stock Transport Order....................................................................................................................... 5-8

2nd Process Step: Create a Replenishment Delivery ................................................................................................ 5-9 3rd Process Step: Execute Picking and Post Goods Issue...................................................................................... 5-10 Determination of the Movement Type....................................................................................................................... 5-11

Stock Changes after Goods Issue: (Two-step Procedure) ...................................................................................... 5-12 4th Process Step: Create Internal Invoice.................................................................................................................. 5-13 Elements of Internal Invoice ...................................................................................................................................... 5-14

5th Process Step: Post Goods Receipt........................................................................................................................ 5-15 Stock Changes after Goods Receipt(Two-step Procedure) .................................................................................... 5-16 6th Process Step: Post Invoice Receipt for Purchase Order................................................................................... 5-17

Cross-Company Stock Transfer:Checklist for Customizing I ............................................................................... 5-18

Cross-Company Stock Transfer:Checklist for Customizing II.............................................................................. 5-19 Cross-Company Stock Transfer:Unit Summary I................................................................................................... 5-20 Cross-Company Stock Transfer:Unit Summary II .................................................................................................. 5-21

Cross-Company Stock Transfer Exercises................................................................................................................ 5-22 Cross-Company Stock Transfer Solutions................................................................................................................ 5-35

Subcontracting...................................................................................................................................................................... 6-1

Subcontracting: Unit Objectives ................................................................................................................................... 6-2 Subcontracting: Overview Diagram............................................................................................................................. 6-3 Subcontracting: Business Scenario............................................................................................................................... 6-4

Subcontracting Process................................................................................................................................................... 6-5 1st Process Step: Determination of Requirements..................................................................................................... 6-6 2nd Process Step: Create Subcontract Order.............................................................................................................. 6-7

Document Type and Item Category forSubcontract Order ...................................................................................... 6-8 3rd Process Step: Monitor Provision Stock and Execute Transfer Postings for Components........................... 6-9 LE Outbound Delivery for Components ................................................................................................................... 6-10

Inventory Management for Components to be Provided........................................................................................ 6-11 Settings for LE Outbound Delivery............................................................................................................................ 6-12 Required Master Data for LE Outbound Delivery ................................................................................................... 6-13

Determination of Outbound Delivery Parameters and Movement Type............................................................. 6-14 4th Process Step: Post Goods Receipt........................................................................................................................ 6-15 5th Process Step: Post Invoice Receipt for Purchase Order................................................................................... 6-16

Postings (Without Input Tax) During Goods and Invoice Receipt....................................................................... 6-17 Liquidación..................................................................................................................................................................... 6-18 Scheduling Agreement ................................................................................................................................................. 6-19

Subcontracting:Checklist for Customizing ............................................................................................................... 6-20 Subcontracting: Unit Summary ................................................................................................................................... 6-21 Subcontracting Exercises ............................................................................................................................................. 6-22 Subcontracting Solutions............................................................................................................................................. 6-34

Conclusion............................................................................................................................................................................. 7-1 Course Objectives............................................................................................................................................................ 7-2 Recommended Tasks / Literature to Deepen Knowledge of Subject ..................................................................... 7-3

Appendix............................................................................................................................................................................... 8-1 Menu Paths in Customizing for LO925....................................................................................................................... 8-2 Accounting Basics........................................................................................................................................................... 8-4

Double-Entry Accounting.............................................................................................................................................. 8-5 Account Types - Balance Sheet Accounts .................................................................................................................. 8-6 Account Types - P&L Accounts .................................................................................................................................. 8-7

Example SD...................................................................................................................................................................... 8-8 Example SD: Postings.................................................................................................................................................... 8-9 Example MM.................................................................................................................................................................. 8-10

Example MM: Postings................................................................................................................................................ 8-11

SAP AG 1999

LO925 Cross-Application Business Processes in SD and MM

LO925LO925Cross-Application Business Processes in SD and MM

Cross-Application Business Processes in SD and MM SAP AG

n R/3 System n Release 4.6C n November 2000 n Material Number 50040301

SAP AG 1999

Copyright 2000 SAP AG. Reservados todos los derechos.

Prohibida la distribución, reproducción o traducción de este manual o de parte del mismo, sea cual sea el fin y la forma, sinla autorización expresa por escrito de SAP AG. La información contenida en este manual puede modificarse o complementarse sin previo aviso.

Reservados todos los derechos.

Copyright

Marcas registradas: n Microsoft ®, Windows ®, NT ®, PowerPoint ®, WinWord ®, Excel ®, Project ®, SQL-Server ®,

Multimedia Viewer ®, Video for Windows ®, Internet Explorer ®, NetShow ®, y HTML Help ® son marcas registradas de Microsoft Corporation.

n Lotus ScreenCam ® es una marca registrada de Lotus Development Corporation. n Vivo ® y VivoActive ® son marcas registradas de RealNetworks, Inc. n ARIS Toolset ® es una marca registrada de IDS Prof. Scheer GmbH, Saarbrücken n Adobe ® y Acrobat ® son marcas registradas de Adobe Systems Inc. n TouchSend Index ® es una marca registrada de TouchSend Corporation. n Visio ® es una marca registrada de Visio Corporation. n IBM ®, OS/2 ®, DB2/6000 ® and AIX ® son marcas registradas de IBM Corporation. n Indeo ® es una marca registrada de Intel Corporation. n Netscape Navigator ®, y Netscape Communicator ® son marcas registradas de Netscape

Communications, Inc. n OSF/Motif ® es una marca registrada de Open Software Foundation. n ORACLE ® es una marca registrada de ORACLE Corporation, California, USA. n INFORMIX ®-OnLine para SAP es una marca registrada de Informix Software Incorporated. n UNIX ® y X/Open ® son marcas registradas de SCO Santa Cruz Operation. n ADABAS ® es una marca registrada de Software AG n Las siguientes marcas o marcas registradas pertenecen a SAP AG: ABAP/4, InterSAP, RIVA, R/2,

R/3, R/3 Retail, SAP (Word), SAPaccess, SAPfile, SAPfind, SAPmail, SAPoffice, SAPscript, SAPtime, SAPtronic, SAP-EDI, SAP EarlyWatch, SAP ArchiveLink, SAP Business Workflow, y ALE/WEB. El logotipo de SAP y todos los demás productos, servicios, logotipos o marcas de SAP que aparezcan en este manual también son marcas o marcas registradas de SAP AG.

n Los demás productos, servicios, logotipos o marcas que aparecen en este manual también son marcas o marcas registradas de sus respectivas empresas.

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Ventas y distribución

Nivel 2 Nivel 3

Procesos en comercial

LO150 5 días

ExpediciónLO610 2 días

Determinación precio SDLO620 3 días

TransporteLO611 2 días

Comercio exteriorLO640 3 días

Gestión de créditos y de riesgos

LO645 2 días

Logística interna y externaLO925 2 días

VentasLO605 4 días

Soporte de ventasLO604 1 día

Workshop de ventasLO606 1 día

Customizing general en SD

LO650 3 días

FacturaciónLO615 2 días

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Gestión de materiales

Procesos en el aprovisionamiento

LO020 5 días

Gestión de stocksLO510 3 días

Verificación de facturas3 díasLO515

Planif. y previsión de necesid. sobre consumo

LO525 2 días

Gestión de servicios externos

LO540 2 días

Comercio exteriorLO640 3 días

Gestión calidad MMLO715 2 días

KANBANLO235 2 días

Gestión de lotes

LO955 3 días

Determinación del

precio de compra

2 días LO521

Customizing generalen MM

5 días LO550

Optimización de las compras

LO520 3 días

Logística interna y externa

LO925 2 días

Nivel 2 Nivel 3

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l LO150 Sales Processes

or

LO020 External Procurement Processes

l Knowledge of these separate applications

Course Prerequisites

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l Participants:

n Staff in the project team who are responsible for implementing cross-application business processes insales and materials management

l Duration: 2 days

Target Group

Notes to the user n The training materials are not teach-yourself programs. They compliment the course instructor's

explanations. On the sheets, there is a space for you to write down additional information.

(C) SAP AG LO925 1-1

SAP AG 1999

1

Course Overview

l Course Targets

l Course Objectives

l Table of contents

l Course Overview Diagram

l Main Business Scenario

Contents:


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Course Goals

This course will enable you to:

l Process and implement selected, cross-application business processes in Sales andMaterials Management


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Course Objectives

At the conclusion of this course, you will be able to:

l Execute the cross-application business processes for third-party order processing, cross-company sales, stock transfer, and subcontracting in the SAP R/3 System

l Outline the most important setting options inCustomizing


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Unit 4 Intra-Company Stock Transfer

Unit 5 Cross-Company Stock Transfer

Unit 6 Subcontracting

Unit 7 Conclusion

Unit 1 Course Overview

Unit 2 Third-Party Order Processing

Unit 3 Cross-Company Sales Processing

Introduction

Appendix

Table of contents


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Course Overview Diagram

Third-Party Order Processing

SubcontractingIntra-companystock transfer

Cross-companystock transfer

Sales organization

Company code

orders

Customer Vendordelivers

orders

Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant

Subcontractor(vendor)

Cross-Company Sales


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Main Business Scenario

l The company includes external partners or partners belonging to the corporate group in the sales and production process.


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Sales organization

Company

orders


orders


n In third-party order processing, the goods ordered by the customer are not delivered by your company (in the diagram above, your company is represented by the term “company”). Instead, you pass on the order to an external vendor, who then sends the goods directly to the customer and sends the invoice to you.

n The purchase order of your customer is entered in a sales organization of your company as a sales order.

n Afterwards, a purchase order for the external vendor is created in your company. n Contrary to a cross-company sales activity, the vendor is not an associated company that operates in

the same R/3 client.


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Sales organization

Company 1

orders

deliversPlant

Company 2

Customer

Cross-Company Sales

n In the case of cross-company sales activities, you also have a different company delivering the ordered goods. The selling and the delivering companies are associated partners that work in the same R/3 client.

n The cross-company sale is characterized by the fact that the sales organization in which the sales order is entered and the plant from which the goods are to be delivered are in different companies (company codes).

n Since both companies create their own separate financial statements, the delivering company must bill the ordering company for the goods.


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Cross-companyIntra-company

Plant 2

Plant 1

Company1

Company2

orders delivers

Plant 2

Plant 1

orders delivers

Company

Stock Transfer

n In a corporate enterprise, goods movements do not refer exclusively to goods receipts and goods issues from or to an external business partner (vendor, customer). Due to the different organization methods that may exist (for example, you have a de-centralized warehouse in your company) or the sales policies of the company, internal stock transfers within the company can occasionally be required.

n In such cases, the goods exchange takes place between 2 plants or between two storage locations within a plant. However, the stock transfer “storage location to storage location” will not be dealt with in this course.

n The plants involved in the stock transfer can also belong to two different companies within the enterprise (cross-company stock transfer).

n You have different methods available for processing a stock transfer between 2 plants. Some of these methods use SD and LE functions in addition to the MM component. In the units on stock transfers, we use the Logistics Execution component, and the stock transfer process is initiated by a purchase order.

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Company

orders

delivers delivers

Plant


Subcontracting

n In subcontracting, the vendors receive materials (components) from which they manufacture finished products.

n This process is initiated by a purchase order for a finished product at the subcontracting company. Then the components are supplied to the vendor.

n The components that are delivered to the vendor are managed as “stock of material provided to vendor”.

n As soon as the vendor has produced the ordered material or refined it in some way, he/she returns it to the ordering plant. At this point, the consumption of the components is usually posted.


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2


l Creating a Sales Order

l Creating a purchase order

l Posting goods receipt

l Posting invoice receipt for purchase order

l Invoicing the sales order

Contents:


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Third-Party Order Processing:Unit Objectives

l Provide third-party order processing for certain materials

l Create a sales order with a third-party item

l Determine the respective purchase requisition

l Explain how third-party order processing is automatically triggered from a sales order

l Convert the automatically-created purchase requisition into apurchase order

l Post goods receipt for a purchase order with a third-party item

l Explain which accounts are to be posted to through the goods receipt and with what amounts

l Post the invoice receipt manually for invoice verification andexplain which accounts are posted to during these activities

l Bill the sales order

At the conclusion of this unit, you will be able to:


SAP AG 1999

Third-Party Order Processing: Overview Diagram




Sales organization

Company code

orders


orders

Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant


Cross-Company Sales


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Third-Party Order Processing: Business Scenario

l In certain sales activities, the company arranges for direct delivery of goods from the vendor to the customer, without the goods having to be processed through the company's own warehouse.


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Process for Third-Party Order Processing

Company 1000

orders

delivers

bills orders reportsdelivery

bills

2 3 4

Sales organization

1000

15

Customer 2004 Vendor 1010

n The purchase order of the customer is first entered in a sales organization of your company as a sales order (application SD). A purchase requisition is automatically created from the order.

n Afterwards, a purchase order for the external vendor is created in the MM purchasing application. This order states that all goods are to be delivered directly to the customer.

n As soon as the vendor confirms to you that the outbound delivery is complete, you post a goods receipt so that this information is recorded in the system.

n In the application MM Invoice Verification, you enter the invoice issued by the vendor to your company for the goods delivered by the vendor to the customer.

n Finally, you generate the SD billing activities to your customer.


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1st Process Step: Create Sales Order

Company 1000

orders

delivers

bills orders

2 3 4

Sales organization

1000

115


reportsdelivery

bills

n Third-party order processing is initiated when you enter a sales order with a third-party item. Either the order consists partially of third-party items or all the items in the order are third-party items.

n Depending on how your system is configured in Customizing, third-party item categories can be determined automatically by the system for the respective materials. ("Automatic third-party order processing") However, so that you can process materials that you normally deliver yourself as third-party items, you can manually change a standard item into a third-party item by entering the respective item category. ("Manual third-party order processing")

n During automatic scheduling of third-party order items, the system takes into consideration the planned delivery time from the material master, that is, the time the vendor requires to deliver the goods. The purchasing department processing time, that is, the time the purchasing department requires to process the third-party orders, is also included. The purchasing department processing time is assigned to the plant in Customizing.


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Creating the Purchase Requisition

Releaseprocedure

Order

Customer

Itemcategory TAS

Purchaserequisition

VendorItem category SAcctAssgmtCat. X

Sourcedetermination

n In standard Customizing for sales (IMG), the system is configured so that a purchase requisition is automatically created in purchasing when you save the sales order to the database.

n Here, a separate purchase requisition item is automatically created for each third-party item. While creating the purchase requisition, the system automatically determines a vendor for each requisition item. If a third-party order item has more than one schedule line, the system creates a purchase requisition item for each such line.

n You can branch to the display of created purchase requisition items from the schedule line of the sales order.

n In the sales order, you can make subsequent changes to the quantity and delivery date for a third-party order item. The changes you make are automatically copied into the respective purchase requisition, provided the release status of the purchase requisition still allows this.

n The purchase requisition has the account assignment for the sales order. This account assignment cannot be changed in the purchase requisition.


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Structure of Order with Third-Party Item

Schedule line 1

Schedule line 1

Schedule line 2

Item 20

Item 10

Header

Schedule linecategory

Item category

Item category

Sales doc. type



CS

OrderOrder

TAS

OR

...

...

...

n The sales document consists of the document header and an arbitrary number of items. Each item can have any number of schedule lines. At the schedule line level you find the procurement and the distribution data.

n The sales documents are customized for header, item, and schedule -line settings, in accordance with the respective structure. The control instruments involved include the sales document type, the item category, and the schedule line category.

n You create third-party order items by creating a standard sales order (for example, sales document type OR for a standard order).

n Item category TAS is defined for third-party order items in standard Customizing. Also, the system is configured so that schedule line category CS ("third-party") is determined for third-party order items.

n The sales order can consist of further third-party order items or items with other item categories.


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Determination of Item Category

Sales document Sales docSales doc.. typetype

Item category groupItem category group

Item usageItem usage

Item category ofItem category ofsuperior itemsuperior item

Item categoryItem category((iesies))

ABAP/4 EditorABAP/4 Editor

form XY_001.

sy-subrc = 4.

check: FeldX ne

FeldY.fysysy-subrc =

0.nendform.ProgramProgram

Material masterView:

Sales: SalesOrg 2


Sales: SalesOrg 2

l System defaultl Alternatives

n For the most part, the item category depends on the sales document type and the item category group of the material. The two other factors, that is, item usage and the item category of the superior item, are of minor importance in third-party order processing.

n Using the item category group, you can group different materials from the view of sales. For example, you should assign the item category group BANS (“third-party item”) to materials whose sales are processed solely as third-party orders. The item category assignment in the standard system triggers off automatic determination of the item category TAS.

n The item category determined by the system can be changed if you have defined allowed alternatives in Customizing. You typically use this option if you wish to have a material that you normally deliver yourself delivered by an external vendor directly to the customer.

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SAP AG 1999

Schedule Line Category for Third-Party OrderProcessing

Sched.line cat.Sched.line cat.

Movement type

PO type

Item category

AcctAssgmtCat.

NB

5

X

“Purchase requisition“

"Third-party"

"Auxil.accnt assignments"

Order

Save order

Purchaserequisition

CS "Third-party"

Item relevant for delivery

n In the standard system, schedule line category CS (“third-party”) is used to process third-party order items.

n Since third-party order items are not supplied by your company, you do not have to post the goods issue in your system. Therefore, the schedule line category CS in Customizing does not contain a movement type and is not set as being relevant for delivery.

n In the standard system version, a purchase requisition is automatically created for third-party items from the sales order as soon as the sales order is saved to the database. Also, the Customizing settings for schedule line category CS contain the specification of a document type for the purchase requisition, as well as the item category (with internal character representation) and the account assignment category.

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SAP AG 1999

Determination of the Schedule Line Category

Item categoryItem category

MRPMRPtypetype

SchedSched..categorycategory((iesies))l System defaultl Alternatives


Mat.planning 1


Mat.planning 1

Sales documentSales document

n Schedule line categories are assigned to item categories. n The aims of this assignment are: � To have the system automatically propose a schedule line category when the order is entered into

the system � To define the schedule line categories that can be chosen by the user if the default value is to be

changed n The assignment is influenced by the MRP type from the material master record. n When automatically determining the schedule line category, the system proceeds in two steps: � In the first step, the system tries to determine the schedule line category using the key combination

for item category and MRP type. � If no schedule line category is found, the system searches again using the key combination for

item category and no MRP type. � Therefore, if there are materials where the MRP type is not maintained in the material master

record, but a schedule line category needs to be found, the Customizing settings for the schedule line category assignment must contain a line with the item category and MRP type set to blank. This is the case, for example, for item category TAS in the standard version so that schedule line category CS is determined by the system in this case.

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2nd Process Step: Create a Purchase Order

Company 1000

orders

delivers

bills orders

22 3 4

Sales organization

1000

15


reportsdelivery

bills

n In third-party order processing, purchase orders are created from purchase requisitions in the normal way.

n When a purchase order is created, the system automatically adopts the address of the goods recipient from the respective sales order as the delivery address.

n You can enter order texts in the sales order for each third-party order item. These are automatically copied into the purchase order when it is created.

n The number of the created purchase order appears in the document flow for the sales order. From there you can also branch to the purchase order.

n Third-party order items in purchase orders are marked with item category S. n Third-party items must have an account assignment; in the standard version, account assignment

category X (“all auxiliary account assignments”) is used.

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SAP AG 1999

3rd Process Step: Post Goods Receipt

Company 1000

orders

delivers

bills orders

2 33 4

Sales organization

1000

15


reportsdelivery

bills

n You can set the business process in such a way that the entry of the vendor invoice receipt is only possible if a goods receipt for the purchase order was entered in the system beforehand.

n You post the goods receipt only when the vendor reports to you that they have performed the delivery. Alternatively, you can have the receipt of the delivery confirmed by the customer.

n To be able to use this monitoring feature, set the GR indicator in the purchase order item or perform the required settings in Customizing.

n Since no goods flow takes place in your company, the goods receipt posting serves solely as a value update for your system.

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4th Process Step: Post Invoice Receipt for Purchase Order

Company 1000

orders

delivers

bills orders

2 3 44

Sales organization

1000

15

Customer 2004Vendor 1010

reportsdelivery

bills

n You enter an invoice receipt for the respective invoice from the vendor using the Logistics invoice verification module.

n If goods receipt is provided for in your business process for third-party order processing, you can only post the invoice receipt after you have entered the goods receipt into the system.

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SAP AG 1999

Company 1000

orders

delivers

bills orders

2 3 4

Sales organization

1000

155

Customer 2004Vendor 1010

reportsdelivery

bills

5th Process Step: Bill for Sales Order

n As soon as the invoice receipt is recorded in the system, the customer is billed. n The sales order is then contained in the billing due list and is processed in the next multiple

processing run for billing documents. n The billing date relevant for this due list corresponds to the posting date of the invoice receipt

document. n Since no outbound delivery exists in the system for third-party order items, you set the indicator for

order-related billing during selection of the documents to be billed.

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Billing Relevance and Billing Quantity

Invoicereceipt

Invoiceto customer

Goodsreceipt

Purchase orderOrder

Item category TAS "Third-party item"

Billing relevance F "Relevant for order-related billing: Status based uponIR quantity"

M-03 10 PC M-03 10 PC M-03 9 PC

M-03 9 PCM-03 9 PC

n If the billing-relevance indicator in Customizing is set to F ("relevant for order-related billing: Status according to IR quantity"), the system includes the order in the billing due list only when the vendor invoice has been received and entered into the system.

n In the copying control for sales document to billing document, the standard setting for the third-party order item category defines that the quantity from the invoice receipt document, not the order quantity, for example, is copied into the billing document (Billing quantity field).

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SAP AG 1999

Third-Party Order Processing: Checklist for Customizing

l Definition of a third-party item category(includes defining billing relevance)

l Maintenance of item category determination

l Definition of a schedule line category for third-party order processing (includes assignment of the document type for the purchase requisition)

l Maintenance of the schedule line category determination

l Maintenance of copying control for sales document to billing (includes determination of billing quantity)

If you are implementing user-defined objects insales document control:

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SAP AG 1999

Third-Party Order Processing:Unit Summary

l Provide third-party order processing for certain materials

l Create a sales order with a third-party item

l Determine the respective purchase requisition

l Explain how third-party order processing is automatically triggered from a sales order

l Convert the automatically-created purchase requisition into a purchase order

l Post goods receipt for a purchase order with a third-party item

l Explain which accounts are to be posted to through the goods receipt and with what amounts

l Post the invoice receipt manually for invoice verification and explain which accounts are posted toduring these activities

l Bill the sales order

You are now able to:

(C) SAP AG LO925 2-19

Third-Party Order Processing Exercises

Unit: Third-Party Order Processing

Topic: Preparations

At the conclusion of this exercise, you will be able to:

• Provide third-party order processing for certain materials

You and a vendor have agreed that the vendor will deliver a certain material directly to your customer when you receive a purchase order for it. This arrangement is particularly useful for this material because you only receive orders for it occasionally and you would normally need a delivery to ship it. So essentially, this arrangement saves you a step.

1-1 A material master record already exists for the material (T-AUC##) described in the above enterprise scenario. The same applies for the vendor 1010. Since you have occasionally obtained this material from this vendor before, a purchasing info record also exists in the system. Display the purchasing info record and use it to complete the following list: Vendor: 1010 Material: T-AUC## Purchasing organization: 1000 Plant: 12## Net price: __________________________

1-2 Now maintain vendor 1010 in the source list for material T-AUC## in plant 12## as the preferred source of supply. The entry should be valid from today until the end of the year. Purchasing organization: 1000 Choose Fix.

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1-3 Material T-AUC## should normally be delivered to your customer via third-party order processing. Therefore, change the item category group in the material master to an appropriate setting. Sales organization: 1000 Distr. channel: 12

However, as well as changing the entry in the General item category group, you must also change the entry (if one is available) in the field Item category group.

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Exercises


Topic: Creating a Sales Order


• Create a sales order with a third-party item

• Determine the respective purchase requisition

• Explain how third-party order processing is automatically triggered from a sales order

One of your customers orders the material for which you have set up third-party order processing. A purchase requisition is to be generated automatically from the sales order. The purchase requisition can later be easily changed to a third-party purchase order.

2-1 You receive the following purchase order for the material that is to be shipped directly from your vendor to the customer:

Purchase order

Customer: 2004

Purchase order number: ##-tp

Requested delivery date: current date + 1 workday

Material Quantity

T-AUC## 10 PC

2-1-1 Create a customer sales order for this. Order type: OR

2-1-2 Can the material be delivered by the requested delivery date? List the reason(s) for the system response. _________________________________________________________

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_________________________________________________________

2-1-3 Accept the scheduling default for Complete delivery.

2-1-4 Which plant would supply this item if it was outbound delivery? __________________________________

2-1-5 What is the net price of the order item? _________________________

2-1-6 Save the sales order. Write down the document number. Sales order: _________________

2-2 Check to make sure that a purchase requisition was automatically generated from the sales order. Write down the document number. Purchase requisition: ___________________

2-3 Display the purchase requisition. What is its document type? _____________________ Which vendor is assigned as the fixed source of supply? _____________________

2-4 In order for third-party order processing to be triggered, the order must include item categories and schedule line categories that correspond to third-party order processing.

2-4-1 Which item category has the system determined in the sales order? ________________________________

2-4-2 Which entry in the item category assignment was responsible for the determination of this item category? Sales document type: ________________ Item category group: ________________ Item category: ________________

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2-4-3 Explain how and why it is possible in some cases to trigger third-party order processing for a material with item category group NORM in a standard order. ____________________________________________________________ ____________________________________________________________

You should only display the Customizing settings for item and schedule line categories, and for their determination rules. Do not make any changes.

*2-5 Optional: The schedule line category settings result in automatic creation of a purchase requisition.

2-5-1 What schedule line category is determined in the sales order? ________________________________

2-5-2 What document type is used for the purchase requisition (resulting from the settings in the schedule line category)? ________________________________ Did this document type determination work in your example? _______________

2-5-3 What movement type is recorded in the schedule line category? ________________________________ Explain the reason for the system setting that appears. ____________________________________________________________

2-5-4 Which entry in schedule line category assignment defines the schedule line category in your sales order? Item category: _____________ Material requirements planning (MRP) type: _____________ Schedule line category default: _____________

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Exercises


Topic: Creating a purchase order


• Convert the automatically-created purchase requisition into a purchase order

The next step is to have your vendor deliver the goods directly to the customer, who ordered them through you.

3-1 For the next step, imagine you are the employee responsible for plant 12## in the purchasing department.

3-1-1 Create a purchase order for the purchase requisition that was generated in the previous exercises by accessing the purchase requisition assignment list. Purchasing group: 004 Purchasing organization: 1000 Vendor: 1010 Plant: 12## Scope of list: A

3-1-2 Also enter the following data for the purchase order if the system requests it: Order type: NB Purchase order date: current date Purchasing group: 004 Purchasing organization: 1000

3-1-3 You have spoken to your vendor on the phone. He confirmed that he can have the goods delivered to your customer on the requested date. This means that you can leave the delivery date as it is. Save the purchase order. Make a note of the document number. Purchase order: ____________________________

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3-2 Using the print preview of the purchase order, check that the delivery is to be shipped directly to your customer rather than to your company.

You should use the purchasing document transaction for output issue. Then choose Displ. output rather than Output.

3-3 How can you display the delivery address directly from the purchase order document display? __________________________________________________________________ __________________________________________________________________

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Exercises


Topic: Posting goods receipt


• Post goods receipt for a purchase order with a third-party item

• Explain which accounts are to be posted to through the goods receipt and with what amounts

You have agreed with the vendor that, in the case of third-party order processing with your company, he will inform you when he has made the delivery to your customer.

4-1 As soon as your vendor informs purchasing that outbound delivery of the goods listed in the purchase order is complete, the goods receipt can be posted. Post the goods receipt for the purchase order. Purchase order: document number noted previously Document date: current date Posting date: current date

*4-2 Optional: Display the accounting document for goods receipt.

4-2-1 Which accounts were involved in posting? ______________________________________________ ______________________________________________

4-2-2 Explain how the system arrived at this amount. ______________________________________

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Exercises


Topic: Posting invoice receipt for purchase order


• Post the invoice receipt manually for invoice verification

• Explain which accounts were posted to

The vendor sends you an invoice for the goods that you have ordered from him and that he has delivered to your customer.

5-1 You receive the following invoice from your vendor:

INVOICE Sunny Electronics GmbH (vendor 1010)

Invoice date: (current date)

Invoice 950031##

Invoice for your purchase order 4500....

T-AUC## Monitor Sunny Tetral3 10 pc 12400 UNI

Output tax 10% (1I) _1240 UNI

Invoice amount: 13640 UNI

Enter the invoice in the company code 1000. Write down the document number. Invoice: _____________________________

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*5-2 Optional: Display the accounting document for this invoice.

5-2-1 Which accounts were involved in posting? ______________________________________________ ______________________________________________

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Exercises


Topic: Invoicing the sales order


• Bill the sales order

• Explain the origin of the prices in the billing document

Once your company has received the invoice for the goods that were delivered directly to your customer by your vendor, you can send your own invoice to the customer. Under normal circumstances, you can use the multiple processing run for billing documents for this step. In some cases, you may need to create invoices individually.

6-1 Create the invoice for your customer with detailed reference to the sales order. As an exception, use the individual billing procedure.

6-1-1 What is the net value? ____________________________ Where have you seen this value before in this business process? _________________________________________________ Does this make sense?

6-1-2 Save the billing document and write down the document number. Billing document: _______________________

6-2 You have created the customer invoice on the basis of the sales order.

6-2-1 Explain why this is the necessary course of action for third-party order processing. ____________________________________________________________

6-2-2 Where can you make the settings in Customizing that define whether a business transaction is to be billed based on the sales order or the delivery? List the menu path you used to get to this part of Customizing. ____________________________________________________________

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6-2-3 What would change if you chose “B” as the appropriate indicator? ____________________________________________________________ ____________________________________________________________

(C) SAP AG LO925 2-31

Third-Party Order Processing Solutions


Topic: Preparations

1-1 Logistics → Materials Management → Purchasing → Master Data → Info Record → Display Vendor: 1010 Material: T-AUC## Purchasing organization: 1000 Plant: 12## Leave the info category set to Standard. Choose Purch. org. data 1 on the Display Info Record screen. Net price: 1240 UNI

1-2 Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain Material: T-AUC## Plant: 12## Valid from: current date Valid to: end of the year Vendor: 1010 Purchasing organization: 1000 Choose Fix.

1-3 Logistics → Sales and Distribution → Master Data → Products → Material → Trading Goods → Change Material: T-AUC## Choose Sales:Sales Org. Data 2. Sales organization: 1000 Distribution channel: 12 Item category group: BANS

Note that you do not have to enter BANS in the field General item category group.

(C) SAP AG LO925 2-32

Solutions



2-1

2-1-1 Logistics → Sales and Distribution → Sales → Order → Create Order type: OR Ship-to party: 2004 PO number: ##-tp Requested delivery date: current date + 1 workday Material: T-AUC## Quantity: 10 PC

2-1-2 In the Standard order: Order scheduling screen that appears, it is obvious that the requested delivery date cannot be met. To calculate the actual delivery date, the system considers the planned delivery time of 5 days and the processing time for purchasing of 1 day, which depends on the plant.

2-1-3 Select Complete delivery or Copy in the Complete delivery area of the screen.

2-1-4 On the Sales tab of the overview screen: Plant: 12## (If it were an outbound delivery from your own warehouse, it would be the delivering plant.)

2-1-5 On the Sales tab of the overview screen: Net value: 17300 UNI

2-1-6 Choose Save.

2-2 Logistics → Sales and Distribution → Sales → Order → Display Select the item. Choose Schedule lines for item. Select the second schedule line. Select Sched. line-detail and then the Procurement tab.

2-3 Select Edit. Document type: NB Vendor: 1010

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2-4

2-4-1 Logistics → Sales and Distribution → Sales → Order → Display On the Sales tab of the overview screen: Item category TAS

2-4-2 IMG: Sales and Distribution → Sales → Sales Documents → Sales Document Item → Assign Item Categories Sales document type: OR Item category group: BANS Item category (DfItC field): TAS

2-4-3 To trigger third-party processing in a standard order, change the determined item category TAN to TAS. This is made possible by the available alternative item categories for manual entry stored in the item category assignment. The appropriate line in the item category assignment is the following: Sales document type: OR Item category group: NORM Item category (DfItC field): TAN Select the line and then press Details. Manually allowed item category in the sales document (Manual item category field): (among others) TAS

*2-5 Optional:

2-5-1 Logistics → Sales and Distribution → Sales → Order → Display Select the item. Choose Schedule lines for item. Schedule line category: CS

2-5-2 IMG: Sales and Distribution → Sales → Sales Documents → Schedule Lines → Define Schedule Line Categories Select Details for schedule line category CS. Order type (Document type of purchase requisition): NB Yes, you found out earlier that the purchase requisition generated in your example has document type NB.

2-5-3 In the definition of schedule line category CS, no movement type has been stored. This would not make sense, since the issue does not originate from your stocks in third-party order processing. Therefore, you will create neither an outbound delivery nor a goods issue, so the system does not need the movement type.

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2-5-4 IMG: Sales and Distribution → Sales → Sales Documents → Schedule Lines → Assign Schedule Line Categories Item category: TAS MRP type: blank Schedule line category default (SchLC field): CS Since you did not specify the MRP type in the schedule line category assignment for item category TAS, you do not need to check the MRP type in the material master of material T-AUC##.

(C) SAP AG LO925 2-35

Solutions


Topic: Creating a purchase order

3-1

3-1-1 Logistics → Materials Management → Purchasing → Purchase Order → Create → Via Requisition Assignment List Purchasing group: 004 Purchasing organization: 1000 Vendor: 1010 Plant: 12## Scope of list: A

Select Execute

Position the cursor on the bottom line and select Process assignment.

3-1-2 The data given in the exercise text has already been entered in the Process assignment: Create PO screen. Then select Enter. In the left side of the screen (document overview), select the purchase requisition you have created. Then copy it to the current purchase order in the right side of the screen, using the Adopt button. Alternatively, you can drag the purchase requisition onto the shopping basket symbol, using the left mouse buttton.

3-1-3 Choose Save.

3-2 Logistics → Materials Management → Purchasing → Purchase Order → Messages → Print/Transmit Purchasing document: Document number of the purchase order you wrote down earlier Select Execute Select the line in the Message output: screen and select Display message.

3-3 Logistics → Materials Management → Purchasing → Purchase Order → Display Choose Print preview or

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Choose the Delivery address tab page at item level. In addition to the address, you can also check which customer number the system assigned to the customer.

(C) SAP AG LO925 2-37

Solutions



4-1 Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Known Purchase order: document number noted above Document date: current date Posting date: current date Choose ENTER or Execute. Select Item OK. Choose Post.

*4-2 Optional: Logistics → Materials Management → Inventory Management → Material document → Display Material document: Default value Material document year: Default value Select Accounting documents... in the material document Click on the Accounting document.

4-2-1 Debit posting: Stock change account Credit posting: GR/IR clearing account

4-2-2 The system copied the amount from the purchase order.

(C) SAP AG LO925 2-38

Solutions



5-1 Logistics → Materials Management → Invoice Verification → Logistics Invoice Verification → Document Entry → Enter Invoice Invoice date: current date Posting date: current date Reference: 950031## Amount: 13640 UNI Tax amount: 1240 Tax code: 1I (corresponds to 10%) Purchase order/Scheduling agreement: document number noted above Choose Enter. Check the difference. Choose Post.

*5-2 Optional: Logistics → Materials Management → Logistics → Invoice Verification → Further Processing → Display Invoice Document Invoice document number: default value Fiscal year: default value Select Follow-on documents... Click on the Accounting document.

5-2-1 Debit posting: GR/IR clearing account; Account for input tax Credit posting: Vendor number Now your company has a debt to the vendor.

(C) SAP AG LO925 2-39

Solutions


Topic: Invoicing the sales order

6-1 Logistics → Sales and Distribution → Billing → Billing Document → Create Document: Document number of the sales order you wrote down previously Select Execute.

6-1-1 Net value: 17300 UNI The net value is identical to the amount in the sales order. Yes, because it would not be a good idea to copy the amount from your purchase order that you sent to the vendor since otherwise you would not earn anything with this business procedure!

6-1-2 Choose Save.

6-2

6-2-1 During third-party order processing, your vendor sends the goods directly to your customer. Therefore, you did not create an outbound delivery for the sales order with third-party item. Delivery-related billing is thus not possible.

6-2-2 IMG: Sales and Distribution → Sales → Sales Documents → Sales Document Item → Define Item Categories Select Details for item category TAS. Relevant for billing field

6-2-3 If you chose entry "B" instead of "F" for the relevance for billing, the order would be in the billing due list immediately following its entry. With the given system setting, the billing with a log entry would be rejected since the system would try in vain to determine an invoice receipt quantity. A further system setting can be found in the copying control for sales documents to billing documents for third-party item category TAS (Billing quantity field). IMG: Sales and Distribution → Billing → Billing Documents → Maintain Copying Control for Billing Documents → Copying Control: Sales Documents to Billing Documents Target: F2 – Source: OR Double-click on Item in dialog structure. Choose Details for the item category TAS.

(C) SAP AG LO925 2-40


SAP AG 1999

3

Cross-Company Sales

l Creating a Sales Order

l Executing Shipping Activities

l Creating an Invoice for the End Customer

l Creating an Internal Invoice

l Posting Invoice Receipt

Contents:


SAP AG 1999

Cross-Company Sales:Unit Objectives I

l Assign a sales area to a plant for the purpose of intercompany billing

l Maintain an allowed supplying plant

l Set up a cross-company sales process for certain materials

l Explain when are you dealing with a cross-company sales activity

l Explain the conditions in the sales order

l Execute the sales transaction with the help of the outbound delivery



SAP AG 1999

Cross-Company Sales:Unit Objectives II

l Determine which company code the invoice is assigned to

l Explain the origin of the sales area

l Explain how the system determines the payer

l Explain the conditions for intercompany billing

l Initiate automatic postings to the vendor account



SAP AG 1999

Cross-Company Sales: Overview Diagram




Sales organization

Company code

orders


orders

Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant


Cross-Company Sales


SAP AG 1999

Cross-Company Sales: Business Scenario

l In certain cases, the company arranges for direct delivery of the goods to the customer from stocks that belong to a different company belonging to the same corporate group. In this way, the goods arenot stored beforehand in the company´s own warehouse, but go directly to the customer.

l There is an agreement between the companies involved that the issue of the invoice in the one company automatically leads to posting of the invoice receipt in the other.


SAP AG 1999

Process for Cross-Company Sales Activity

Sales organization

2200

orders

delivers

bills

bills

1

5

3

Plant 12002

Sales organization

10004

Customer 2500

Company2200

Company1000

n When the goods in the purchase order have been ordered by the customer, you enter a sales order in sales organization 2200. This belongs to the so-called ordering company code (company 2200).

n The plant from which the goods to be delivered are taken is referred to as the delivering company code (company 1000).

n As soon as the order is due for delivery, the delivering company creates the outbound delivery. The goods issue is posted at the end of the shipping activity, and the goods are delivered to the customer.

n Afterwards, the invoice for the end customer is created in sales organization 2200, that is, in the ordering company code.

n In order for inter-company billing to take place between the two companies involoved, the delivering company issues an internal invoice, through ist sales organization 1000, to the ordering company.

n Depending on the agreement between the two connected companies, the entry of receipt of invoice may take place automaticaly. If not, the received invoice is entered manually in the financial accounting system of the ordering company.


SAP AG 1999

1st Process Step: Create Sales Order

Sales organization

2200

orders

delivers

bills

bills

11

5

3

Plant 12002

Sales organization

10004

Customer 2500

Company2200

Company1000

n The process for cross-company sales processing is initated when standard sales order is created. n In a sales order, the system determines the delivering plant for each order item, or this data is entered

manually by the processor. The system can propose the delivering plant from the following master records (sequence according to priority): � Customer-material info record � Customer master for goods recipient � Material master

n If the delivering plant in the order item belongs to a company that is not in the sales organization creating the order, the system recognizes that this is a cross-company sales activity.


SAP AG 1999

Allowed Delivering Plants

Plant 1100

Example: (for distribution channel 10)

Company 1000 Company 2200

Plant 2200

Plant 1000

Plant 1200

Plant 1300

Sales organization

1000

Sales organization

2200

n When you create the order, the system checks whether the combination of sales organization, distribution channel and delivering plant is allowed.

n Depending on the sales organization, the plants allowed for sales activities are defined in connection with the distribution channel. Here it is possible for a sales organization to sell goods from several plants. Conversely, a plant can be assigned to several sales organizations.

n In Customizing, a plant is uniquely assigned to one company code. A sales organization, too, belongs to exactly one company code.

n Sales organizations and plants assigned to one another do not have to belong to the same company code. Otherwise, cross-company sales activities would not be possible.

n The distribution channel provides a further means of differentiation of plants in a sales organization from a sales viewpoint. A distribution channel, for example, can be allowed for certain plants within a sales organization, but not for others.


SAP AG 1999

Price for Intercompany Billing

PricePriceintercompanyintercompany

billingbilling

PricePrice

PI01PI01

Profit Profit marginmargin

PR00PR00

Item 10

Net value: 2000 UNI

Material: M-01 Quantity: 1 PC

1500 UNI1500 UNI

2000 UNI2000 UNI

500 UNI500 UNI

Price for customer (Revenue)

Price for supplying plant(costs)[statistical]

Sales order 6788

n In the order itself, the system automatically executes pricing, whereby the stored condition master data is evaluated.

n Condition type PR00 specifies the price that is billed to the customer. This price appears, possibly with surcharges and discounts, in the invoice for the customer, provided no change has taken place in the meantime. This price, therefore, stands for the revenue.

n For information purposes, instead of the moving average price for the material you have the price that the ordering company has to pay to the delivering company (price for intercompany billing). It will be relevant for intercompany billing and represents the costs of the ordering company.

n To represent the internal price, there are 2 condition types in the standard system: PI01 (quantity-dependent) PI02 (percentage) Condition records are entered in connection with the sales organization entering the order, the

delivering plant, and, if necessary, the material. n The amount for intercompany billing appears on the condition screen of the sales order as a

statistical value (it is only displayed, and has no effect on the pricing results for the customer).

(C) SAP AG LO925 3-10

SAP AG 1999

2nd Process Step: Execute Shipping Activities

Sales organization

2200

orders

delivers

bills

bills

1

5

3

Sales organization

1000

Plant 120022

4

Customer 2500

Company2200

Company1000

n The shipping activity is initiated as soon as the outbound delivery has been created. This can take place with the help of the standard collective processing function for delivery of orders due,or with explicit reference to the sales order.

n As a rule, the outbound delivery is created as soon as the first workstep in the shipping process is imminent.

n The individual worksteps in the shipping process (picking, packing, printing the delivery note, and so on) are executed on the basis of the outbound delivery and also documented in the delivery.

n The outbound delivery is created and the shipping activities executed in the shipping point specified in the order. This shipping point is assigned in Customizing to the delivering plant.

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SAP AG 1999

Worksteps for Shipping Processing

Create and print transfer order

(if confirmation requirement:)Confirm transfer order

Post goods issue

(optional:) Pack

Print delivery note

n For picking purposes, a transfer order with reference to the outbound delivery is created. The list printout of the transfer order is given to the picker so that he/she can pick the required goods from the warehouse.

n Depending on the settings in Customizing, the pick may have to be confirmed (confirmation requirement). During this confirmation of the transfer order, you can enter possible quantitiy differences.

n If the goods are to be packed in shipping into larger boxes or placed onto pallets, for example, the appropriate information can be stored in the outbound delivery.

n Using the output control and output processing functions, you can print out delivery notes. n The goods issue posting is the closing activity in the shipping process. Here a quantity and value

update of the stock takes place.

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SAP AG 1999

3rd Process Step: Create Invoice for End Customer

Sales organization

2200

orders

delivers

bills

bills

1

5

33

Sales organization

1000

Plant 12002

4

Customer 2500

Company2200

Company1000

n The invoice for the end customer is created in the sales organization that created the sale s order. n Invoicing includes a reference to the outbound delivery. Here it is not of importance that the

outbound delivery was taken from another company code. n With the goods issue posting, the outbound delivery is automatically entered into the billing due list.

The invoice is created either right away, or in a billing collective processing run. n The goods issue date of the outbound delivery is the relevant billing date for the billing due list.

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SAP AG 1999

Elements of Invoice to End Customer

Invoice 90005623

Billing typeBilling type

PayerPayer

Company codeCompany code

Sales organizationSales organization

DistributionDistribution channelchannel

DivisionDivision

F2F2

25002500

22002200

22002200

1010

0000

DocDoc..type of ordertype of order

PartnerPartner rolerole PAYER in PAYER in order itemorder item

OrderOrder headerheader((sales organizationsales organization))

OrderOrder headerheader



n The invoice for the end customer is a “normal” invoice. In the standard version, you can use billing types F2 or F1, whereby in the case of standard orders (sales document type OR) the system automatically used billing type F2 as the default type.

n In contrast to an internal invoice, the payer as well as the sales units and the company code are taken directly from the order.

n In the order, the company code was derived from the sales organization that entered the order. This is, therefore, called the ordering company.

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SAP AG 1999

4th Process Step: Create Internal Invoice

Sales organization

2200

orders

delivers

bills

bills

1

5

3

Sales organization

1000

Plant 12002

44

Customer 2500

Company2200

Company1000

n For intercompany billing for the services rendered to the customer in sales organization 2200, the delivering company issues an invoice to the ordering company.

n The internal invoice is created by sales organization 1000. In customizing, you assign the sales organization responsible for inter-company billing to the delivering point.

n Likewise, in the case of an invoice to the end customer, the billing has a reference to the outbound delivery. You set the indicator “intercompany billing” during the selection of the documents for billing.

n The outbound delivery is only entered in the billing due list of the respective sales organization of the delivery company when the invoice is issued to the end customer.

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SAP AG 1999

Elements of Internal Invoice

Intercompany Billing 90005734

Billing typeBilling type

PayerPayer

Company codeCompany code

Sales organizationSales organization

DistributionDistribution channelchannel

DivisionDivision

IVIV

2200022000

10001000

10001000

1212

0000

DocDoc..type of ordertype of order

Sales organization Sales organization inin orderorder

DeliveringDelivering plantplant




n In the standard version, billing type IV is used for the internal invoice. This is automatically proposed on the basis of the order.

n The payer of the internal invoice is usually the ordering company, which is like a customer with respect to the delivering company. For this you create a customer master record in the delivering company in which you enter the data relevant for billing. Afterwards, you assign the respective customer number to the sales organization of the ordering company in Customizing (field "Customer intercompany").

n The company code in the internal invoice comes from the company code to which the delivering plant belongs. It is therefore the same as the delivering company.

n In Customizing, you assign the sales area required for creating the internal invoice to the delivering plant (fields “Sales organization IV”, “Distribution channel IV”, “Division IV”). Make sure that the same settings are also used for stock transfer activities.

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SAP AG 1999

Customer Master Record for Payer

Payer

Company codeSales organization

Distr. channel

Division

22000

10001000

12

00

= Customer IV= Customer IV

= Delivering company= Delivering company

= Sales organization IV= Sales organization IV

= Distribution IVchannel IV= Distribution IVchannel IV= Division IV= Division IV

General data

- Address- ...

Company data

- Reconciliation account- ...

Sales area data

- Currency- Invoice dates- Terms of payment- ...

n The sales organization in the company code in which the sales order is generated takes on the role of the payer for intercompany billing.

n A customer master record must exist for the payer, in order that an intercompany invoice can be generated. This is assigned to the sales organization in the company code which delivers the order.

n A minimum of information must be contained in the customer master record. This information includes data that is relevant for the role of the payer (for example, address, reconciliation account). Also, you should store here the currency in which the intercompany billing is to take place.

n The company code data is created in the delivering company. n The sales area data is entered in connection with the sales area for intercompany billing (sales

organization IV, distribution channel IV, division IV).

(C) SAP AG LO925 3-17

SAP AG 1999

Conditions in Internal Invoice

PricePriceintercompanyintercompany

billingbilling

PricePrice

IV01IV01

CostCost

PR00PR00

Item 10

Net value: 1500 UNI

Material: M-01 Quantity: 1 PC

1500 UNI1500 UNI

2000 UNI2000 UNI

1300 UNI1300 UNI

[Inactive]

By reference to PI01


VPRSVPRS

Profit Profit marginmargin 200 UNI200 UNI

n Condition type PR00 in the internal invoice displays the amount billed to the end customer. It serves as an information item and is inactive.

n The active price for internal billing is given by condition type IV01. It is determined by reference to condition type PI01 and therefore is the value that the delivering company has to receive from the ordering company.

n For the delivering company, condition type IV01 stands for the revenue. The costs are given by the moving average price of the material.

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SAP AG 1999

Calculation Procedure in Internal Invoice

Calculation schemaICAA01

PR00 Price

IV01 Price intercompany billing

VPRS Cost

Document procedureDocument procedure

Customer procedureCustomer procedure

Sales organization Distribution channel

Division

Sales organization Distribution channel

Division

Document type forinternal invoice

Delivering plant Customer master (Customer IV)

n In the internal invoice, the system uses a pricing procedure (standard version ICAA01) different from that in the sales order and the customer billing documents. Utilizing this, condition type PI01 is replaced by condition type IV01. IV01, in contrast to PI01, is not marked as a statistical value.

n Through the reference to condition type PI01 defined in the definition of condition type IV01, you finally get the same condition values for both condition types. Here condition PI01 stands for the costs of the ordering company, and IV01 for the revenue of the delivering company. The use of different condition types for intercompany billing is necessary to ensure that data is transmitted correctly to the financial statement (component CO-PA).

n The determination of the pricing procedure in the internal invoice takes place in connection with the document procedure defined in the billing type, the sales area, and the customer pricing procedure stored in the customer master. With the sales area you refer to the sales area assigned to the delivering plant.

(C) SAP AG LO925 3-19

SAP AG 1999

5th Process Step: Post Invoice Receipt

Sales organization

2200

orders

delivers

bills

bills

1

55

3

Sales organization

1000

Plant 12002

4

Customer 2500

Company2200

Company1000

n The invoice issued by the delivering company (company code) to the ordering company must be entered in the financial accounting of the ordering company code in order for payment to take place. This can be done manually.

n Cross-company sales processing can be set up so that the creation of an internal invoice in the delivering company automatically generates the creation of an incoming invoice in the ordering company.

n It is possible, for example, to have an agreement between the two parties involved that for invoices issued by sales organization 1000 to sales organization 2200 there is immediately a posting to the vendor account in the ordering company (company code 2200).

(C) SAP AG LO925 3-20

SAP AG 1999

Automatic Posting to Vendor Account

Invoice

Print-outManual

invoice entry

RD00

RD04Creditor 10000

1500

Automaticinvoice receipt

Intercompany billing

90005734

n If the ordering company enters the incoming invoice manually, the delivering company can print out an invoice document with the help of output type RD00, which is then sent to the payer.

n If automatic invoice receipt has been agreed upon, you must use the SD output control functions to ensure that output type RD04 is found in internal billing. In the R/3 System, output determination procedure V40000, which includes this output type, is assigned to billing type IV.

n The automatic posting to the vendor account is initiated when output type RD04 is processed. The technical conversion is carried out using the EDI technology. The EDI output category INVOIC is used in the F1 variant. For specifications on the required system settings (partner profiles, and so on), refer to the Implementation Guide for Intercompany Billing.

n So that the payable can be posted in financial accounting of the ordering company, the delivering company must be created as a vendor (vendor 10000).

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SAP AG 1999

l Assignment of a sales area to the deliveringplant

l Maintenance of assignment between sales organization, distribution channel, and supplying plant

l Assignment of a customer to the sales organization

l If necessary, entry of billing type for intercompany billing in the sales document

l If necessary, maintenance of settings required for automatic posting to vendor account

Cross-Company Sales:Checklist for Customizing

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SAP AG 1999

l Assign a sales area to a plant for the purpose of intercompany billing

l Maintain an allowed supplying plant

l Set up a cross-company sales process for certain materials

l Explain when are you dealing with a cross-company sales activity

l Explain the conditions in the sales order

l Execute the sales transaction with the help of the outbound delivery

Cross-Company Sales: Unit Summary I


(C) SAP AG LO925 3-23

SAP AG 1999

Cross-Company Sales: Unit Summary II

l Determine which company code the invoice is assigned to



l Explain the conditions for intercompany billing

l Initiate automatic postings to the vendor account


(C) SAP AG LO925 3-24

Cross-Company Sales Exercises

Unit: Cross-Company Sales

Topic: Preparations


• Assign a sales area to a plant for the purpose of intercompany billing

• Maintain an allowed supplying plant

• Set up a cross-company sales process for certain materials

You are in a French subsidiary of an international group. Regarding particular materials that are seldom requested, you agreed with the German branch that it would deliver to your customers directly if you receive the corresponding purchase order. This way, you avoid the roundabout step of using your own warehouse.

1-1 Assign a sales area for intercompany billing to the delivering plant 12##. Sales organization for intercompany billing: 1000 Distribution channel for intercompany billing: 12 Division for intercompany billing: 00

1-2 Now, authorize the French sales organization to at least sell goods from plant 12## to end customers:

1-2-1 Which menu path should you follow to make the appropriate setting in Customizing? ____________________________________________________________ ____________________________________________________________

1-2-2 If it has not been done, make the setting for the combination of sales organization 2200 and distribution channel 10.

(C) SAP AG LO925 3-25

1-3 A material master record already exists for the material described in the above enterprise scenario. Enter plant 12## ("## Dresden") as the delivering plant, which will be relevant for sales procedures carried out by the French sales organization. Material: T-AUD## Sales organization: 2200 Distribution channel : 10

*1-4 Optional: What do you have to do so that the system does not determine another delivering plant for material T-AUD## in the customer order item? 1. ________________________________________________________________ 2. ________________________________________________________________

(C) SAP AG LO925 3-26

Exercises




• Explain when are you dealing with a cross-company sales activity

• Explain the conditions in the sales order

You receive a purchase order for a material from your customer, which will be delivered directly to the customer by the German branch. In contrast to the purchase order of a "regular" material, the process of cross-company code sales will be triggered automatically.

2-1 You receive a purchase order for a material that is to be sent to your customer directly from the German branch.

Purchase order

Ship to Customer: 2500

PO number: ##-ic

Requested delivery date: current date + 3 workdays

Material Quantity

T-AUD## 10 PC

Create a customer order for this. Order type: OR Sales organization: 2200 Distribution channel: 10 Division: 00

(C) SAP AG LO925 3-27

2-1-1 Which plant is going to deliver the goods? ____________________________ Where does the system find the plant? ____________________________________ Save the sales order. Write down the document number. Sales order ##-ic: _________________

2-1-2 Which two organizational elements are in different company codes if it is a cross-company code sales transaction? 1. _______________________________________________ 2. _______________________________________________

2-1-3 Find the appropriate company codes in Customizing: 1. _______________ 2. _______________

2-2 Display the sales order you created earlier.

2-2-1 Which condition type in the conditions view of the order item refers to the price that the receiving company has to pay to the delivering company? ______________ How much is it? __________________ What is the customer’s price? _____________________

*2-2-2 Optional: Does the amount assigned to the price for intercompany billing affect the net value? ______________ Explain why it is important: _____________________________ ____________________________________________________________

(C) SAP AG LO925 3-28

Exercises


Topic: Executing Shipping Activities


• Execute the sales transaction with the help of the outbound delivery

In a shipping point assigned to the delivering plant, the goods to be shipped to the customer are prepared and then delivered. The fact that it is a cross-company code sales process does not have any effect on the transaction.

3-1 To carry out the shipping activities, you play the part of an employee at shipping point X0## related to plant 12##. Use the same standard functions for collective processing that you use for sales activities within the same company code in shipping.

3-1-1 Supply the order created above for purchase order ##-ic by processing the delivery due list for sales and purchase orders for shipping point X0##. Restrict your selection to shipping point X0##! Note: If your order does not appear in the worklist, set the delivery creation date to a later date in the selection screen. Write down the outbound delivery number: ______________________

3-1-2 Initiate picking by creating a transfer order for the outbound delivery you created earlier. To do this, use the collective processing function (via outbound delivery monitor). Restrict your selection to shipping point X0##!

3-1-3 When the picking process is complete, you can post the goods issue to the outbound delivery you created earlier. The settings have been made in such a way that it is not necessary to confirm picking in advance (no obligation to confirm). To do this, use the collective processing function.

(C) SAP AG LO925 3-29

Restrict your selection to shipping point X0##!

(C) SAP AG LO925 3-30

Exercises


Topic: Creating an Invoice for the End Customer


• Determine which company code the invoice is assigned to

Once the goods issue for the outbound delivery to your French customer has been posted in the German branch, you can create the invoice to the customer.

4-1 Create the billing document – this time without using collective processing - with explicit reference to the outbound delivery you created above. You are playing the part of an employee in the French sales organization.

4-1-1 To which company code and to which sales organization has the invoice been assigned? Company code: ______________________ Sales organization: ___________________ Is this the receiving or the delivering company code? ____________________________________________________________

4-1-2 Save the billing document and write down the document number. Billing document: _______________________

(C) SAP AG LO925 3-31

Exercises


Topic: Creating an Internal Invoice


• Determine which company code the internal invoice is assigned to

• Explain the origin of the sales area

• Explain how the system determines the payer

• Explain the conditions for intercompany billing

The German branch creates an internal invoice for intercompany billing of goods delivered by the supplying company to the customer of the receiving company. The French branch acts as payer and invoice recipient.

5-1 Create the billing document – this time without using collective processing - with explicit reference to the outbound delivery you created above. You are playing the part of an employee in the German sales organization.

5-1-1 To which company code has the internal invoice been assigned? Company code: ______________________ Is this the receiving or the supplying company? ____________________________________________________________ Which factor does it depend on? __________________________________________________

5-1-2 Save the internal invoice and write down the document number. Internal invoice: _______________________

(C) SAP AG LO925 3-32

5-2 Since the internal invoice has been created by a German sales organization, the sales area entered in the internal invoice differs from the one entered in the customer billing document.

5-2-1 Determine the sales area to which the internal invoice has been assigned. Sales organization: ___________________ Distribution channel: ___________________ Division: __________________

5-2-2 This sales area is used for intercompany billing. Which factor does this depend on? __________________________________

5-2-3 Where in Customizing does the appropriate assignment take place? ____________________________________________________________ This setting is essential for cross-company code processes. Who made this setting? __________________________________________

5-3 In the internal invoice, a business partner appears as a payer who has not been involved in the business transaction up to this point.

5-3-1 Determine the payer of the internal invoice: __________________________

5-3-2 Which factor does this payer depend on? _______________________________________

5-3-3 Which menu path did you follow to find this setting in the system? ____________________________________________________________ ____________________________________________________________

(C) SAP AG LO925 3-33

5-4 Display the customer master record for the payer centrally.

5-4-1 Which company code and which sales area are relevant in this context? Company code: ________________ Sales organization: __________________ Distribution channel: _____________ Division: _____________

5-4-2 Which currency is used to bill the customer according to his master data and which terms of payment have been defined? Currency: __________________ Terms of payment: ____________________

5-5 Display the condition screen for the item in the internal invoice.

5-5-1 Which condition type reflects the price the receiving company has to pay to the delivering company? ______________

*5-5-2 Optional: To which price does condition type PR00 in the internal invoice refer? ____________________________________________________________ Does this amount assigned to this condition type contribute to the net value? _____________________

*5-6 Optional:

5-6-1 Which billing document type does the internal invoice have? _______________

5-6-2 In which Customizing object has the proposed billing type for intercompany billing been stored? ______________________________________ Find this Customizing object.

(C) SAP AG LO925 3-34

Exercises


Topic: Posting Invoice Receipt


• Initiate automatic postings to the vendor account

The two companies involved have agreed that the invoices from the German sales organization to the French sales organization are automatically posted as invoice receipts in the accounting department of the French company. This means that you do not have to enter the invoice manually.

6-1 Having made the appropriate setting, automatic posting to the vendor’s account can take place directly when you save the internal invoice. However, if it is not necessary for the posting to take place immediately, it may not be a good idea since it may cause an unnecessary system load. In our case, it has therefore been decided to initiate automatic credit-side posting for the existing internal invoices collectively. This could, for example, be carried out using a background program.

6-1-1 Check the internal invoice to see if the system determined output type RD04 and if the output has already been processed. ____________________________________________________________

6-1-2 Process output RD04 (given in your internal invoice). Output type: RD04 Billing document: number of the internal invoice you wrote down above

Note: Process the output only for the internal invoice you created!

(C) SAP AG LO925 3-35

*6-2 Optional: Ensure that the accounting document for posting to the vendor’s account exists in the receiving company. Go to the document display in accounts payable. What appears in the Reference field?

(C) SAP AG LO925 3-36

Cross-Company Sales Solutions


Topic: Preparations

1-1 IMG: Sales and Distribution → Billing → Intercompany Billing → Assign Organizational Units By Plant Maintain for plant 12##: Sales organization for intercompany billing: 1000 Distribution channel for intercompany billing: 12 Division for intercompany billing: 00

1-2

1-2-1 IMG: Enterprise structure → Assignment → Sales and distribution → Assign sales organization – distribution channel - plant

1-2-2 Position the cursor on the line with sales organization 2200 and distribution channel 10 and choose Assign. Select plant 12##. The message informs you of the cross-company code character.

1-3 Logistics → Sales and Distribution → Master Data → Products → Material → Trading Goods → Change Material: T-AUD## Choose Sales:Sales Org. Data 1. Sales organization: 2200 Distribution channel: 10 Delivering plant: 12##

(C) SAP AG LO925 3-37

*1-4 Optional: 1. If there is a customer material info record, you must not maintain a different supplying plant in this record. 2. The customer master for sales organization 2200 and distribution channel 10 must not contain a deviating delivering plant. During the determination of the supplying plant in the order item, the system accesses the master data in the following sequence: 1. Customer material info 2. Customer master 3. Material master

(C) SAP AG LO925 3-38

Solutions



2-1 Logistics → Sales and Distribution → Sales → Order → Create Order type: OR Sales organization: 2200 Distribution channel: 10 Division: 00 Ship-to party: 2500 PO number: ##-ic Requested delivery date: current date + 3 workdays Material: T-AUD## Quantity: 10 PC

2-1-1 Scroll over, if necessary, until you reach the right-hand side in the item in the Sales overview screen. Plant: 12## Since there is no customer material info record and since the supplying plant has not been maintained in the customer master, the system determined the plant on the basis of the material master entry you made above.

2-1-2 1. Sales organization in which the customer order is stored 2. Supplying plant

2-1-3 1. IMG: Enterprise Structure → Assignment → Sales and Distribution → Assign sales organization to company code Company code 2200 - Sales organization 2200 2. IMG: Enterprise structure → Assignment → Logistics - General → Assign plant to company code Company code 1000 - plant 12##

(C) SAP AG LO925 3-39

2-2 Logistics → Sales and Distribution → Sales → Order → Display

2-2-1 Select the item in the sales order, and choose Item conditions.. Condition type: PI01 Rate: 4000 FRF per PC Condition type PR00:

Rate: 5320 FRF per PC

*2-2-2 Optional: Select Condition Details for condition type PI01: Since the condition is marked as Statistical, it does not affect the net value. This is appropriate since the price for intercompany billing should not have the effect that the amount to be paid by the customer is increased or decreased.

(C) SAP AG LO925 3-40

Solutions


Topic: Executing Shipping Activities

3-1

3-1-1 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Collective Processing of Documents Due for Delivery → Sales orders and Purchase Orders Shipping point/receiving pt: X0## Choose Execute. If your order does not appear in the worklist, set the delivery creation date to a later date in the selection screen. In the list, select the line which refers to the sales order your created above. Choose Create delivery in background. Then choose Log for Delivery creation, select the entry and choose Documents, in order to determine the outbound deliver number.

3-1-2 Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

3-1-3 Logistics → Sales and Distribution → Shipping and Transportation → Post Goods Issue → Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Choose Execute. Select the delivery you created above in the goods issue for outbound deliveries list and then select Post goods issue. Confirm the dialog box with Enter.

(C) SAP AG LO925 3-41

Solutions


Topic: Creating an Invoice for the End Customer

4-1 Logistics → Sales and Distribution → Billing → Billing Document → Create Document: Document number of the outbound delivery you wrote down earlier Choose Execute.

4-1-1 Choose Display Doc. Header details. Company code: 2200 Sales organization: 2200 Since this is the invoice for the end customer, it is assigned to the company code in which the order has been entered (that is, the receiving company).

4-1-2 Choose Save.

(C) SAP AG LO925 3-42

Solutions



5-1 Logistics → Sales and Distribution → Billing → Billing Document → Create Document: Document number of the outbound delivery you wrote down earlier Choose Execute.

5-1-1 Choose Display Doc. Header details. Company code: 1000 The supplying company creates the internal invoice which is directed to the receiving company. Therefore, the company code that is displayed is that of the supplying company. The supplying company corresponds to the company code that has been assigned to the supplying plant.

5-1-2 Choose Save.

5-2 Logistics → Sales and distribution → Billing → Billing document → Display

5-2-1 Choose Display Doc. Header details. Sales organization: 1000 Distr. channel: 12 Division: 00

5-2-2 The sales area necessary for intercompany billing depends on the delivering plant.

5-2-3 IMG: Sales and Distribution → Billing → Intercompany Billing → Assign Organizational Units by Plant You have maintained the entries for plant 12## yourself in a preceding exercise.

5-3

5-3-1 GoTo → Header → Header Partners

Payer in the internal invoice: 22000

5-3-2 The payer in the internal invoice generally corresponds to the receiving company, that is, the company in which the customer order has been created. It depends on the sales organization that enters the order.

(C) SAP AG LO925 3-43

5-3-3 IMG: Sales and Distribution → Billing → Intercompany Billing → Define Internal Customer Number by Sales Organization Sales organization 2200 - customer number for intercompany billing 22000

5-4 Logistics → Sales and Distribution → Master Data → Business Partners → Customer → Display → Complete Customer: 22000

5-4-1 The system accesses the customer master for the payer with the supplying company code and the sales area which is assigned to the delivering plant. Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00

5-4-2 Choose Sales area data and then the Sales and Billing document tab pages. Currency: UNI Terms of payment: ZB01

5-5 Logistics → Sales and Distribution → Billing → Billing Document → Display Billing document: Document number of the internal invoice you wrote down earlier Select the item in the internal invoice and select Item price conditions.

5-5-1 Condition type: IV01 The given condition value corresponds to the net value of the internal invoice.

*5-5-2 Optional: Condition type PR00 refers to the price relevant for the customer. The condition value of PR00 does not contribute to the net value since the condition is inactive due to the following price.

(C) SAP AG LO925 3-44

*5-6 Optional:

5-6-1 See title line in document. Billing document type: intercompany billing (IV)

5-6-2 The billing type the system uses automatically for internal invoices is stored in the sales document type. IMG: Sales and Distribution → Sales → Sales Documents → Sales Document Header → Define Sales Document Types Choose Details for sales document type OR. Billing type for intercompany billing: IV

(C) SAP AG LO925 3-45

Solutions


Topic: Posting Invoice Receipt

6-1

6-1-1 Logistics → Sales and Distribution → Billing → Billing Document → Display Go To → Header → Output The output type RD04 was automatically created by the system on account of the existing settings in output determination, and has not yet been processed.

6-1-2 Logistics → Sales and Distribution → Billing → Output → Issue Billing Documents Output type: RD04 Billing document: number you wrote down above for the internal invoice Select Intercompany billing. Sales organization: 1000 Choose Execute

Choose the relevant line and then choose Process.

*6-2 Optional: Accounting → Financial Accounting → Accounts Payable → Document → Display

Select List and proceed as follows: Company code: 2200 Entry date: Current date Select Own documents only.

Select Execute

The system stored the document number of the internal invoice in the Reference field.

(C) SAP AG LO925 3-46


SAP AG 1999

4

Intra-company Stock Transfer

l Creating a Stock Transport Order

l Creating a Replenishment Delivery

l Executing Picking and Posting Goods Issue

Contents:


SAP AG 1999

Intra-company Stock Transfer: Unit Objectives

l Set up the stock transport order procedure with LEoutbound delivery for certain plants

l Decide between the one-step and the two-step procedure

l Initiate the process for intra-company stock transfer with the help of a stock transport order

l Understand the meaning of a goods recipient master record assigned to a plant

l Explain how the system determines important outbound delivery parameters

l Close the one-step procedure for stock transfer with the goods issue posting

l Explain which movement type is used

l Query the status of the stock transfer procedure



SAP AG 1999

Intercompany Stock Transfer: Overview Diagram




Sales organization

Company code

orders


orders

Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant


Cross-Company Sales


SAP AG 1999

Intra-company Stock Transfer: Business Scenario

l Your company has one central warehouse and several decentralized warehouses that supply external warehouses and service operators withspare parts. These spare parts are acquired by means of stock transfers from the central warehouse.

l To simplify the process, it should be possible tohave the goods receipt posted at the receiving warehouse automatically when the goods issue is posted.


SAP AG 1999

Stock Transfer Procedure

Stock transfer from one plant to another

ThroughThroughstock transfer postingstock transfer posting

ThroughThroughstock transport orderstock transport order

With With LE LE outbnd deloutbnd del..andand SD SD billingbilling

WithoutWithoutLE LE outbound deloutbound del..

WithWithLELE outbound deloutbound del..

Intra-company Cross-company

n The stock transfer between 2 plants can be executed using different procedures. n The procedures in which a stock transfer posting is executed solely use the MM Inventory

Management component. In contrast to these, you have procedures where the stock transfer process is initiated automatically when a purchase order is entered in the MM Purchasing component (stock transport order).

n If you are working with the stock transfer procedure with LE outbound delivery, this has the advantage that the shipping activities can also be processed with the R/3 System (picking, packing, printing the delivery note, and so on).

n If you wish to use R/3 shipping functions for stock transfer processing, use the procedure “For stock transport order with LE outbound delivery” for intra-company activities and the procedure “For stock transport order with LE outbound delivery and SD billing” for cross-company stock transfers.


SAP AG 1999

Process for Intra-company Stock Transfer in One-Step Procedure

Plant 1200

Plant 1400

orders delivers

Company 1000

1

32

n The process described in this unit uses the procedure for “stock transport order with LE outbound delivery”, which is provided for intra-company stock transfers.

n First we enter a stock transport order for goods for plant 1400, possibly also with reference to a purchase requisition. In this order, plant 1400 orders goods from plant 1200. Within this stock transfer procedure, plant 1400 is the receiving plant.

n When the purchase order is due for shipment, you create an outbound delivery. You can have this delivery packed or assign it to an outbound shipment. As soon as the shipping procedure is finished, you post the goods issue. The goods are now transferred from plant 1200 to plant 1400. Plant 1200 is termed as the delivering or supplying plant.

n If, as in this case, you are using the one-step procedure, the goods receipt does not have to be posted in the receiving plant when the goods arrive there.


SAP AG 1999

Two-Step Stock Transfer

AB B C

B

Unrestricted-use stock

Goodsreceipt

forPO

Goods issue

A

B B C

B

Transit providedfrom vendor

AB B C

B

Unrestricted-use

stock

Plant 1200Purch. order

1

2

Plant 1400

n In the two-step procedure for a stock transport order with shipping processing, a stock in transit is created when the goods issue is posted from the sending plant. This enables you to monitor the stocks that are being transferred. You can display the stocks in the stock overview for the material. As soon as the goods arrive, the goods receipt is posted in the receiving plant. A transition takes place - depending on your choice - to the unrestricted-use stock, to the blocked stock or to the stock in quality inspection.

n The stock in transit is evaluated, but not available. The stock is managed at the level of the receiving plant.

n The goods are withdrawn from the unrestricted-use stock.


SAP AG 1999

One-Step Procedure

Plant 1400 Plant 1200

AB B C

B

Unrestricted-use

stock

Automaticgoods receipt

for purch. order

AB B C

B

Unrestricted-use

stock

Goodsissue

Purch. order

1

2

n As of Release 4.0, there is a one-step procedure available -- in addition to the two-step procedure -- for stock transfer procedures with a stock transport order and shipping processing.

n In the one-step procedure, no stock in transit is created. The stock is posted at the time of goods issue directly into the unrestricted-use stock in the receiving plant. The goods receipt posting is not required in the receiving plant.

n The one-step procedure can be appropriate if the plants involved are not far away from each other, or if the receiving plant does not have a technical link-up.

n You define in Customizing whether you wish to work with the one-step or the two-step procedure. The setting is made in connection with the delivering plant and the receiving plant.

n If you are using the stock transfer posting as the stock transfer procedure, you also have the one-step or the two-step procedure at your disposal.

n As a rule, you can only post stock transfers in one step from one plant to another with unrestricted-use stock that is posted from the delivering plant to the receiving plant's unrestricted-use stock.


SAP AG 1999

1st Process Step: Create a Stock Transport Order

Plant 1200

Plant 1400

delivers

Company 1000

11

32

orders

n The stock transfer is initiated when you create a stock transport order with document type UB (“stock transport order”). You enter the delivering plant as well as the receiving plant.

n The system uses item category U ("stock transfer"). n The items cannot be assigned to accounts if the goods are ordered for consumption and not for the

warehouse. If the material in the receiving plant is not evaluated, it is not possible to enter an account assignment. The goods can only be assigned for the warehouse.

n If you are working with the one-step procedure, you must specify the stock location in the receiving plant already in the purchase order.

(C) SAP AG LO925 4-10

SAP AG 1999

Stock Transport Order and Requirements Planning

ReceivingPlant

DeliveringPlant

Userdepart.

Purchaserequisition

Requirementsplanning

Rqmntsplanning

Stock transportorder

Order type UB

Item category U

Acct.assgmt.cat. _

n The stock transport order is included in requirements planning both in the receiving as well as in the delivering plant. Here the goods receipt in the receiving plant and the goods issue in the delivering plant are preplanned.

n The stock transfer activity can also be initiated by a purchase requisition or a stock transport scheduling agreement.

n The purchase requisition can be created in the user department or by requirements planning. n For the purchase requisition you use document type NB ("purchase requisition") and item category U

("stock transfer"). n You use the stock transport scheduling agreement if stock transfers are to take place at regular

intervals, or if you wish to schedule the delivery deadlines of a stock transfer exactly. n In addition, you can set your Customizing to define whether an availability check is executed in the

delivering plant when a purchase order is created.

(C) SAP AG LO925 4-11

SAP AG 1999

2nd Process Step: Create a Replenishment Delivery

Plant 1200

Plant 1400

delivers

Company 1000

1

322

orders

n To supply the materials ordered by plant 1400, an outbound delivery is first created. This is referred to, in the case of stock transfer activity, as a „replenishment delivery".

n Replenishment deliveries are created solely using the collective processing run for deliveries. In the selection screen, you can extend your selection to include purchase orders.

n The reference document of the replenishment delivery is the stock transport order. n The document flow of the outbound delivery shows the referenced purchase order. n The outbound delivery is created and processed in the shipping point responsible for the respective

stock transfer activity. This shipping point must be assigned in Customizing to the delivering plant.

(C) SAP AG LO925 4-12

SAP AG 1999

Customer Master Record for Ship-to Party

Ship-to party

Sales organization

Distr. channel

Division

14000

1000

12

00

= Customer no. plant= Customer no. plant

= Saler organization IV= Saler organization IV

= Distribution IVchannel IV= Distribution IVchannel IV= Division IV= Division IV

General data

- Address- Transportation zone - ...

Sales area data

- Shipping condition- ...

Delivering plant

Receiving plant

n The ship-to party in the replenishment delivery stands for the receiving plant. n In order for the stock transfer procedure with LE outbound delivery to take place, a customer master

record must exist. The system derives the address as well as other information important for shipping, such as the transportation zone and the shipping conditions, from this master record.

n The master record is created in the sales area that corresponds to the organizational units, distribution channel and division for intra-company billing. These sales organizations are assigned to the delivering plant in Customizing and are valid for cross-company sales as well as for cross-company stock transfers.

n The company code data does not need to be entered as long as the respective plant is the receiving plant for intra-company stock transfers only.

n The customer number is then assigned to the receiving plant in Customizing.

(C) SAP AG LO925 4-13

SAP AG 1999

Determination of Outbound Delivery Parameters

Order type UBDelivery typeDelivery type NLNL

Delivering plant 1200

Delivery type NL

Item categoryItem category NLNNLNItem category grp NORM

Usage V


Shipping pointShipping point 12001200Shipping condition 01

Loading group 0002

n Since the replenishment delivery does not refer to a sales order, the system must determine important information about the outbound delivery parameters using other means.

n The delivery type to be used is derived from the document type of the stock transport order and the delivering plant. Here you assign the delivery type NL („replenishment delivery") in Customizing.

n If you do not assign a delivery type, stock transfer activities that are initiated by a stock transport order are executed without outbound delivery (different stock transfer procedure).

n The item category is derived from the item category search of the delivery, whereby the delivery type, the item category group of the material, and perhaps also the item category of the higher level item play a role here. Usage V serves as an internal indicator. In standard Customizing, item category NLN is assigned.

n With the item category, for example, you can customize how picking must take place. n The shipping point is determined in connection with the delivering plant, the shipping condition of

the customer master record belonging to the receiving plant, and the loading group of the material. n In the delivering plant, the shipping data (view „Sales & Distrib.: General/Plant data" in the material

master) and the accounting data for the material must be maintained. The purchasing and accounting data from the material master are required for the receiving plant. Also, sales area data of the sales organizational units for intercompang billing must be stored for the material.

(C) SAP AG LO925 4-14

SAP AG 1999

3rd Process Step: Execute Picking and Post Goods Issue

Plant 1200

Plant 1400

delivers

Company 1000

1

332

orders

n The replenishment delivery is processed in the usual manner in shipping, that is, just like an outbound delivery that was created with reference to a sales order.

n Here you include the replenishment deliveries in your selection if you are using a special number range for them.

n You also post the goods issue in the LE Shipping application. There you refer to the replenishment delivery. In procedures that do not use shipping processing, you post the goods issue in MM Inventory Management.

(C) SAP AG LO925 4-15

SAP AG 1999

Effects of Goods Issue Posting (One-Step Procedure)

ReceivingPlant

Unrestricted-usestock Open order qty

SupplyingPlant

Unrestricted-usestock --

++

--

Materialdocument Stock transport

order

Purch.order history

Material master

Purch.order qty

Stock value(moving price)

Goods issuewith reference to

replenishment deliv.

Accountingdocument

n During the goods issue posting in MM Inventory Management, the system creates a material document. This means that the quantity is deducted in the delivering plant. At the same time, the quantity is posted to the unrestricted-use stock of the receiving plant if you are using the one-step procedure. The order stock is then reduced by the stock putaway.

n However, if you are working with the two-step procedure, the system creates a stock in transit in the receiving plant. At the time of goods receipt, this stock is reduced again. For technical reasons, this movement of stock in transit appears also in the material document for the one-step procedure.

n If the plants belong to different company codes, an accounting document is created parallel to the material document. The stock transfer is evaluated with the valuation price of the material in the delivering plant. As a result, there can be a price change in the receiving plant.

n A purchase order history record is automatically created in purchasing for the replenishment delivery as well as for the closing goods issue posting, as in this case. In this way, the receiving and the delivering plants can follow up the actual stock transfer procedure.

n In the two-step procedure, the process is closed by a goods receipt posting. Here, too, a purchase order history record is automatically created.

(C) SAP AG LO925 4-16

SAP AG 1999

Movement Types for Stock Transfer with LE Delivery

Which movement type for which procedure?

One-stepprocedure

Two-stepprocedure

Intercompany Cross-company

647

641

645

643

n The overview shows which movement types are used in the standard version for the individual stock transfer procedures with LE outbound delivery.

n So that you can post the goods issue from the outbound delivery, the respective movement types for one-step and two-step procedures must be assigned to schedule line category NN (for intercompany stock transfers) and to schedule line category NC (for cross-company stock transfers).

n During the stock transfer procedure, the system determines the schedule line category using the item category in the replenishment delivery and the MRP type in the material master.

(C) SAP AG LO925 4-17

SAP AG 1999

Intercompany Stock Transfer:Checklist for Customizing

l Assignment of a sales area to the deliveringplant

l Assignment of a customer to the receiving plant

l Assignment of the delivery type for the replenishment delivery

l Decision on one-step or two-step procedure

l Shipping point determination, if required

l Maintenance of item category determination inthe delivery

l Entry of the movement type in the schedule line category



(C) SAP AG LO925 4-18

SAP AG 1999

Intra-company Stock Transfer: Unit Summary

l Set up the stock transport order procedure with LEoutbound delivery for certain plants

l Decide between the one-step and the two-step procedure

l Initiate the process for intra-company stock transfer with the help of a stock transport order

l Understand the meaning of a goods recipient master record assigned to a plant

l Explain how the system determines important outbound delivery parameters

l Close the one-step procedure for stock transfer with the goods issue posting

l Explain which movement type is usedl Query the status of the stock transfer procedure


(C) SAP AG LO925 4-19

Intercompany Stock Transfer Exercises

Unit: Intra-company Stock Transfer

Topic: Preparations


• Set up the stock transport order procedure with LE outbound delivery for certain plants

• Decide between the one-step and the two-step procedure

At your company‘s Stuttgart location, outbound deliveries only take place within the scope of repairs. The spare parts are stored in a small warehouse, which procures its stocks by stock transfer from the central warehouse in Dresden. The shipping process for these replenishment deliveries shall in principle take place as with customer deliveries. The system is to support picking, packaging, printout of delivery notes, and so on. Since both locations belong to the same company and since you can rely on the shipments, you do not want the goods receipt posting in the Stuttgart plant to take place in a separate step.

1-1 Your company decides to introduce intra-company code stock transfers with stock transport orders and to use the LE outbound delivery for the execution of the delivery process.

1-1-1 Where in Customizing can you make the setting for creation of an LE outbound delivery for stock transfers via stock transport order? ____________________________________________________________ ____________________________________________________________ Which field is decisive in this context? _________________________________

(C) SAP AG LO925 4-20

1-1-2 Make an entry that determines the delivery type used for replenishment delivery in supplying plant 12##. Purchasing document type: UB Supplying plant: 12## Delivery type: NL Checking rule: RP

1-2 In addition, make the appropriate settings so that the system uses the one-step procedure for stock transfers with supplying plant 12## and receiving plant 14##. Supplying plant: 12## Plant: 14## Purchasing document type: UB

1-3 For the stock transfer, the receiving plant is the ship-to party. To do this, a customer master record is necessary. During the stock transfer process, the system copies various shipping data, such as the address of the ship-to party, from the corresponding customer master data. Create the customer master record which represents plant 14##.

Please note that you do not necessarily have to enter company code data to ensure that the intra-company stock transfer process works.

Account group: customer belonging to group Customer: 140## Sales organization: 1000 Distribution channel: 12 Division: 00 Reference Customer: 14000 Sales organization: 1000 Distribution channel: 12 Division: 00 Name: Plant 14## Stuttgart Service Search term 1/2: 14## Street/house number: Haeberle Weg 2 Postal code/city: 70000 Stuttgart Region: 08 Transportation zone: D000070000 Trading Partner: 1000 VAT Reg. number: DE123456789

(C) SAP AG LO925 4-21

1-4 Assign customer number 140## to receiving plant 14##.

(C) SAP AG LO925 4-22

Exercises


Topic: Creating a Stock Transport Order


• Initiate the process for intra-company stock transfer with the help of a stock transport order

The stock of a particular spare part is running low. Request a replenishment delivery from the central warehouse in Dresden.

2-1 Create a stock transport order for 300 M of material T-AUE## . Supplying plant: 12## Document type: UB Purchasing organization: 1000 Purchasing group: 008 Company code: 1000 Delivery date: current date + 2 weeks Plant: 14## Storage location: 0001 Which item category does the system use? _____________________________ Write down the PO number: ___________________________

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

2-2-1 How much unrestricted-use stock does each plant contain? Plant 12##: ____________________ Plant 14l##: ____________________

2-2-2 Under which stock type does the system store the released quantity in plant 12##? ______________________________________

(C) SAP AG LO925 4-23

Exercises


Topic: Creating a Replenishment Delivery


• Understand the meaning of a goods recipient master record assigned to a plant

• Explain how the system determines important outbound delivery parameters

The replenishment delivery is being prepared at one of the shipping points assigned to the central warehouse in Dresden. The address of the ship-to party corresponds with one of the receiving plant’s unloading points. To facilitate creation of the replenishment delivery and the further shipping processing, the system should not flag the delivery as being intended for an external business partner.

3-1 To carry out the shipping activities, you play the part of an employee at shipping point X0## related to plant 12##. Use the collective processing function to create the replenishment delivery.

3-1-1 Supply the stock transport order created above by processing the deliveries due list for shipping point X0##. Restrict your selection to shipping point X0##! Delivery creation date: to current date + 2 weeks Write down the outbound delivery number: ______________________

3-1-2 Who is the ship-to party in the outbound delivery document? _____________________________

3-1-3 To which address will the replenishment delivery be sent? ___________________________________________ ___________________________________________

3-2 On the basis of which assignment does the system determine the ship-to party in the replenishment delivery? __________________________________________________________________

(C) SAP AG LO925 4-24

3-3 Find the delivery type and the item category in the replenishment delivery: Delivery type: ______________________ Item category: ___________________

3-3-1 Which factor does the delivery type depend on, in your particular case? 1. __________________________ 2. __________________________

3-3-2 Find the setting in the system. Menu path: ___________________________________________________

3-3-3 Which settings would you have had to make for this topic during the system preparations, if you had not intended to use the LE outbound delivery for stock transfer? ____________________________________________________________

(C) SAP AG LO925 4-25

Exercises


Topic: Executing Picking and Posting Goods Issue


• Close the one-step procedure for stock transfer with the goods issue posting

• Explain which movement type is used

• Query the status of the stock transfer procedure

The shipping activities - picking, packing, printout of outbound delivery notes, and so on - are to be carried out on the basis of the delivery. Since the system uses the one-step procedure, goods issue posting is to trigger a goods receipt posting automatically.

4-1 Initiate picking by creating a transfer order for the replenishment delivery you created earlier.

Depending on the menu path you use to create the transfer order, you may have to enter the warehouse number (012).

4-2 Post the goods issue for the above replenishment delivery using the one-step procedure or collective processing.

4-3 Return to the stock overview for material T-AUE##.

4-3-1 How much unrestricted-use stock does each plant contain? Plant 12##: ____________________ Plant 14##: ____________________

4-3-2 Describe how the situation would be different if you used the two-step procedure. In which stock type for which plant would the entry exist? ______________________________________________________

(C) SAP AG LO925 4-26

4-4 Call up the document flow for your replenishment delivery.

4-4-1 Display the material document from the document flow.

4-4-2 Which movement types has the system used? For goods issue: __________________ For goods receipt: __________________

4-5 In the purchasing department of the receiving plant, there is an inquiry on the progress of the stock transfer procedure. Display the purchase order history.

(C) SAP AG LO925 4-27

Intercompany Stock Transfer Solutions


Topic: Preparations

1-1

1-1-1 IMG: Materials Management → Invoice Verification → Purchasing → Purchase Order → Set Up Stock Transport Order Select Assign delivery type/checking. Whether or not you assigned a delivery type to the combination of purchasing document type and supplying plant is the decisive factor here. If you have done so, the system uses the LE outbound delivery for the shipping process.

1-1-2 Select New entries. Purchasing document type: UB Supplying plant: 12## Delivery type: NL Checking rule: RP Select the Ship.sch. field.

1-2 IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Purchasing document type and then New entries. Supplying plant: 12## Plant: 14## Purchasing document type: UB Select the One-step field.

1-3 Logistics → Sales and Distribution → Master Data → Business partners → Customer → Create → Sales and Distribution Account group: customer belonging to group Customer: 140## Sales area Sales organization: 1000 Distribution channel: 12 Division: 00 Reference

(C) SAP AG LO925 4-28

Customer: 14000 Sales organization: 1000 Distribution channel: 12 Division: 00 Address tab page: Name: plant 14## Stuttgart Service Search term 1/2: 14## Street/house number: Haeberle Weg 2 Postal code/town: 70000 Stuttgart Region: 08 Transportation zone: D000070000 Control data tab page: Trading Partner: 1000 VAT Reg. number: DE123456789 Otherwise, leave the default values.

1-4 IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Select Plant and then Detail for plant 14l##. Customer number - plant: 140##

(C) SAP AG LO925 4-29

Solutions


Topic: Creating a Stock Transport Order

2-1 Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known Choose the Stock transport order purchase order type. Supplying plant: 12## Document date: current date Choose Expand at Header and then the Org.data tab page. Purchasing organization: 1000 Purchasing group: 008 Company code: 1000 Choose Expand at Item overview. Material: T-AUE## PO quantity: 300 M Deliv. date: current date + 2 weeks Plant: 14## Storage location: 0001 The System uses the item category “stock transfer”. The system will not accept a different item category. Choose Save.

2-2 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview Material: T-AUE## Delete the default entries for Plant and Storage location. Choose Execute.

2-2-1 Plant 12##: 2000 M Plant 14##:50 M

2-2-2 Double-click on the line for plant 12##. The quantity released by stock transport order in plant 12## is listed under the StckTrsptOrderRel stock type:- 300 M

(C) SAP AG LO925 4-30

Solutions



3-1

3-1-1 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Collective Processing of Documents Due for Delivery → Sales Orders and Purchase Orders Shipping point/receiving pt: X0## Delivery creation date: to current date + 2 weeks Choose Execute. In the list, select the line which refers to the purchase order your created above. Choose Create delivery in background. Then choose Log for Delivery creation, select the entry and choose Documents, in order to determine the outbound delivery number.

3-1-2 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display Ship-to party: 140##

3-1-3 The system copies the shipping address of the replenishment delivery from the customer master record of the ship-to party. Choose Address next to the ship-to party field.

3-2 At the beginning of the exercises for this unit, you made the following settings: IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Plant and then Details for plant 14##. Customer number. - plant: 140##

(C) SAP AG LO925 4-31

3-3 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display Choose Header Details and then the Administration tab page. Delivery type: NL (replenishment dlv.) Go back to Item overview. Item category NLN (standard item without order)

3-3-1 The delivery type used for the example for stock transfer within company code depends on the following: 1. Purchasing document type UB 2. Supplying plant 12##

3-3-2 IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Assign delivery type/checking. Purchasing document type UB – supplying plant 12##: NL

3-3-3 You do not assign a delivery type to the combination of purchasing document type and supplying plant.

(C) SAP AG LO925 4-32

Solutions



4-1 Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Picking date: to current date + 2 weeks Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

4-2 Logistics → Sales and Distribution → Shipping and Transportation → Post Goods Issue → Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Planned goods movement date: to current date + 2 weeks Choose Execute. Select the delivery you created above in the deliveries list for goods issue and then choose Post goods issue. Confirm the dialog box with Enter.

4-3 Logistics → Materials management → Inventory management → Environment → Stock → Stock Overview Material: T-AUE## Delete the default entries - if there are any - for Plant and Storage location. Choose Execute.

4-3-1 Plant 12##: 1700 M Plant 14##:350 M

4-3-2 If you were to use the two-step procedure, the unrestricted-use stocks would be in: Plant 12##: 1700 M Plant 14##: 50 M The Stock in transit stock type would have an entry of 300 M in plant 14##

(C) SAP AG LO925 4-33

since the posting would be made to the stock in transit of the receiving plant.

4-4 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display → Environment → Document flow

4-4-1 Position the cursor on the material document (TF to stck in transit) in the document flow and choose Display document.

4-4-2 Movement type for goods issue: 647 Movement type for goods receipt: 101

4-5 Logistics → Materials Management → Purchasing → Purchase Order → Display You may first have to choose Expand at Item. Choose the Purchase order history tab page. The outbound delivery document is displayed in the purchase order history, along with the material document.


SAP AG 1999

5

Cross-Company Stock Transfer

l Creating a Stock Transport Order

l Creating a Replenishment Delivery

l Executing Picking and Posting Goods Issue

l Creating an Internal Invoice


l Posting invoice receipt for a purchase order

Contents:


SAP AG 1999

Cross-Company Stock Transfer:Unit Objectives I

l Set up the procedure for stock transport orders withLE outbound delivery and SD billing for certain plants in different company codes

l Trigger the cross-company code stock transfer process with the help of a standard purchase order

l Give reasons for the choice of delivery type

l List the effects of the goods issue posting ininventory management

l Explain the determination of the movement type



SAP AG 1999

Cross-Company Stock Transfer:Unit Objectives II

l Determine to which company code the internal invoice is assigned



l Post goods issue for a replenishment delivery

l Post the invoice receipt in invoice verification



SAP AG 1999

Cross-Company Stock Transfer: Overview Diagram

Cross-Company SalesThird-Party Order Processing



Sales organization

Company code

orders


orders

Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant



SAP AG 1999

Cross-Company Stock Transfer:Business Scenario

l Your company acquires materials through stock transfers from stocks of other companies belonging to the same corporate group.

l It should be possible to post goods issue and goods receipt in separate worksteps if both subsidiaries involved are too far apart, making animmediate goods receipt posting unsuitable.


SAP AG 1999

Process for Cross-Company Stock Transfer (Two-Step Procedure)

Plant 1200

Plant 2200

orders delivers

1

32

5

bills

Sales org. 1000

6

4

Company2200

Company1000

n In contrast to the intra-company stock transfer, the two plants in the process described in this unit belong to different company codes.

n At the beginning of the unit "Intra-company Stock Transfer" we described the different stock transfer procedures. Here in this unit we will describe the procedure "with LE outbound delivery and SD billing". This procedure is used for cross-company stock transfers if R/3 shipping and billing functions are to be used.

n In the receiving plant (plant 2200), a purchase order is created first. n As soon as the purchase order is due for shipping, an outbound delivery is created. As soon as the

shipping activities have been executed, the goods issue is posted in the delivering plant (plant 1200). Then the goods are shipped between plant 1200 and plant 2200.

n Finally, the internal invoice is created in sales organization 1000, that is, in the delivering company. Intercompany billing between the two company codes can now take place.

n Since the two-step procedure is to be used, the goods receipt is posted as soon as the goods are received in the receiving plant.

n When the invoice is received, it can be entered in the logistics invoice verification department of the receiving company.


SAP AG 1999

1st Process Step: Create a Stock Transport Order

Plant 1200

Plant 2200

orders delivers

11

32

5

bills

Sales org. 1000

6

4

Company2200

Company1000

n The stock transfer procedure begins with the entry of a purchase order in the purchasing department of the receiving plant. If required, there is a reference to a purchase requisition or a delivery plan.

n In the standard version, you use the order type NB ("standard purchase order"). In Customizing you can define whether a warning or error message is issued if an unsuitable order type (for example, UB) is entered.

n The stock transport purchase order is included in the planning activities of the delivering and the receiving plants.

n Depending on the system setting, it is possible to have an availability check run in the delivering plant to check whether or not the requested goods can be delivered on time.


SAP AG 1999

Order Types for Stock Transport Order

Plant 1200Plant 1200

DeliverDeliver.plant.plant

OrderOrder typetype


PlantPlant

1200 1200

UBUB

UU

14001400

Cross-companyIntra-company

VendorVendor

OrderOrder typetype


PlantPlant

NBNB

__

22002200

Purchase order Purchase order

1000010000

n In contrast to the intra-company stock transfer, order type UB is not used for the cross-company stock transfer with outbound delivery and billing. You create a standard order (order type NB) with item category blank ("Normal"). For the intra-company stock transfer, you use item category U ("stock transfer").

n When you create the stock transport purchase order with order type NB, you specify a vendor. A plant is assigned to this vendor in the vendor master rccord. This plant is called the delivering plant. However, if you create a stock transport order with order type UB, you enter the delivering plant immediately.

n The plant specified in the order item is the receiving plant.


SAP AG 1999

2nd Process Step: Create a Replenishment Delivery

Plant 1200

Plant 2200

orders delivers

1

322

5

bills

Sales org. 1000

6

4

Company2200

Company1000

n In the same way as the procedure for intra-company stock transfers, a replenishment delivery is created at the beginning of the sales activities.

n The replenishment delivery is created solely in a delivery collective run in the respective shipping point. The purchase orders are used as selection criteria here.

n The determination of the ship-to party and the other outbound delivery parameters takes place in the same way as for intra-company stock transfers: � A customer number is assigned to the receiving plant in Customizing. The same setting as for

intra-company stock transfers is used. � The combination of order type NB and the delivering plant refers to a delivery type. For this

purpose, use delivery type NLCC ("Replenishment Cross-company").

(C) SAP AG LO925 5-10

SAP AG 1999

3rd Process Step: Execute Picking and Post Goods Issue

Plant 1200

Plant 2200

orders delivers

1

332

5

bills

Sales org. 1000

6

4

Company2200

Company1000

n With cross-company stock transfers, the replenishment delivery is processed in shipping as usual. However, if you wish to have different processing compared to outbound deliveries for sales orders or replenishment deliveries for intra-company stock transfers, you can define this in Customizing for the delivery type and the item category.

n If required, the replenishment delivery can also be packed, or planned into an outbound shipment. n As soon as the shipping activities are closed, the goods issue is posted in LE shipping for the

replenishment delivery.

(C) SAP AG LO925 5-11

SAP AG 1999

Determination of the Movement Type

Order type NBDelivery typeDelivery type NLCCNLCC


Delivery type NLCC

Item categoryItem category NLCNLCItem category grp NORM

Usage V

Item category NLC

MRP type --

Movement typeMovement type 643/645643/645

ScheduleSchedule line categline categ. NC. NC

n When the goods issue for the replenishment delivery is posted, the system must know the movement type to use. This is determined from the schedule line category, which, in turn, is itself determined from other factors.

n In Customizing, you assign delivery type NLCC to the combination of order type NB and the delivering plant.

n With the help of the delivery type and the item category group of the material, the item category determination procedure for the delivery ensures that item category NLC is found for standard items, that is, materials with item category group NORM..

n In the standard version, the system determines schedule line category NC for item category NLC and materials with any MRP type. If you have different settings, maintain the schedule line category search accordingly.

n The standard setting for schedule line category NC defines that, in the case of the two-step procedure, movement type 643 is used.

n The movement types for the two-step and one-step procedures for intra-company stock transfers are also determined with the help of the assignment of the delivery type as well as the item and schedule line category search.

(C) SAP AG LO925 5-12

SAP AG 1999

Stock Changes after Goods Issue: (Two-step Procedure)

ReceivingPlant

==

DeliveringPlant


Vendor to cust. ==


Open order qty

Stock in transit

Stock in transit

==

--

--

++

n When the goods issue is posted, the stock types "unrestricted-use stock" and "Deliv. to customer" change in the stock overview of the delivering plant because the goods have left the plant as the result of an outbound delivery (in this case, the replenishment delivery). Also, the stock accounts and material expense accounts in the financial accounting of the delivering company code are updated. Here the valuation price of the material flows into the delivering plant.

n In the two-step procedure for the cross-company stock transfer , the goods have not yet been posted in the receiving plant at this point. From the accounting viewpoint, they do not yet belong to the company code of the receiving plant.

n The unrestricted-use stock and the open order quantity remain unchanged. n The quantity that is "in transit" is shown in the stock overview of the receiving plant as "Stock in

transit CC" (cross-company stock in transit). n The value of the cross-company stock in transit can also be displayed as an accumulated value for a

plant or a company code.

(C) SAP AG LO925 5-13

SAP AG 1999

4th Process Step: Create Internal Invoice

Plant 1200

Plant 2200

orders delivers

1

32

5

bills

Sales org. 1000

6

44

Company2200

Company1000

n The delivering company code (company 1000) issues an invoice for intra-company billing of the goods delivered to the receiving plant.

n The internal invoice is generated by sales organization 1000. This involves the relevant sales organization for internal billing, which is assigned to the delivering plant in Customizing. The same setting is also relevant for intra-company billing for cross-company sales activities.

n The internal invoice is created with direct reference to the replenishment delivery, or it is created in a collective run. When you process the delivery due list, set the indicator for “Intra-company billing”.

n If there is an agreement between the parties involved, you can set the system so that when the internal invoice is created, invoice receipt is automatically triggered in the logistics invoice verification of company code 2200.

n Similar to cross-company sales, the automatic invoice receipt is initiated by the output control for billing in connection with the EDI technique. In this case, the EDI output category INVOICE is used in the MM variant.

(C) SAP AG LO925 5-14

SAP AG 1999

Elements of Internal Invoice


Billing typeBilling type IVIVDefaultDefault order type fororder type fordelivery typedelivery type

PayerPayer 2200022000ReceivingReceiving plantplant

Company codeCompany code 10001000DeliveringDelivering plantplant

Sales organizationSales organization 10001000DeliveringDelivering plantplant

DistributionDistribution channelchannel 1212DeliveringDelivering plantplant

DivisionDivision 0000DeliveringDelivering plantplant

n The default for the billing type for the internal invoice is derived from order type DL, which is assigned in Customizing to delivery type NLCC as the “Default order type for deliveries without order reference”.

n The payer results from the assignment of a customer number to the receiving plant. This setting is also used for determining the ship-to party in the replenishment delivery.

n The company code in the internal invoice is the delivering company code, that is, the company code of the delivering plant.

n The sales area is assigned in Customizing to the delivering plant. It applies to company-internal stock transfers as well as to cross-company sales.

(C) SAP AG LO925 5-15

SAP AG 1999

5th Process Step: Post Goods Receipt

Plant 1200

Plant 2200

orders delivers

1

32

55

bills

Sales org. 1000

6

4

Company2200

Company1000

n When the goods arrive in the receiving plant, a goods receipt for the purchase order is posted there with movement type 101, with the specification of the replenishment delivery number.

n If the purchase order is known, this can also be entered. n There is no goods receipt posting if the stock transfer is being made using the one-step procedure. n With the goods receipt posting, the system creates a purchase order history record and an entry in the

document flow for the replenishment delivery.

(C) SAP AG LO925 5-16

SAP AG 1999

Stock Changes after Goods Receipt(Two-step Procedure)

++

--

==

==

==

--

ReceivingPlant

DeliveringPlant


Vendor to cust.


Open order qty

Stock in transit

Stock in transit CC

n With the goods receipt posting, the unrestricted-use stock in the receiving plant increases. The open order quantity is reduced since the delivery for the stock transport order has been received.

n The “stock in transit CC” in the stock overview of the receiving plant is reduced. n From the accounting viewpoint, the goods are now assigned to the company code of the receiving

plant. For this purpose, an accounting document has been created in which the order price is the price of the material.

n The stock information in the delivering plant is not influenced by the goods receipt.

(C) SAP AG LO925 5-17

SAP AG 1999


Plant 1200

Plant 2200

orders delivers

1

32

5

bills

Sales org. 1000

66

4

Company2200

Company1000

n As soon as the invoice of the delivering company code has been received, the invoice receipt is posted in the logistics invoice verification of the receiving company code.

n If the invoice receipt has already taken place automatically in internal billing, the invoice is assigned a payment block. When the quantity and, if planned, the quality of the received goods have been checked, the invoice can be released for payment. Then the payment block is removed in accounting.

(C) SAP AG LO925 5-18

SAP AG 1999

l Assignment of a sales area to intercompany billing for the delivering plant

l Assignment of a customer to the receiving plant

l Assignment of the delivery type for the replenishment delivery

l Decision on one-step or two-step procedure


l Maintenance of settings required for automatic invoice receipt

Cross-Company Stock Transfer:Checklist for Customizing I

(C) SAP AG LO925 5-19

SAP AG 1999

l Maintenance of item category determination inthe delivery

l Entry of the movement type in the schedule line category


l Entry of the invoice type for intercompany billing in the default order type that is assignedto the vendor


Cross-Company Stock Transfer:Checklist for Customizing II

(C) SAP AG LO925 5-20

SAP AG 1999

Cross-Company Stock Transfer:Unit Summary I

l Set up the procedure for stock transport orders withLE outbound delivery and SD billing for certain plantsin different company codes

l Trigger the cross-company code stock transfer process with the help of a standard purchase order

l Give reasons for the choice of delivery type

l List the effects of the goods issue posting ininventory management

l Explain the determination of the movement type


(C) SAP AG LO925 5-21

SAP AG 1999

Cross-Company Stock Transfer:Unit Summary II

l Determine which company code the internal invoice is assigned to



l Post goods issue for a replenishment delivery

l Post the invoice receipt in invoice verification

...

(C) SAP AG LO925 5-22

Cross-Company Stock Transfer Exercises

Unit: Cross-Company Stock Transfer

Topic: Preparations


• Set up the procedure for stock transport orders with LE outbound delivery and SD billing for certain plants in different company codes

The Paris-based branch of your company purchases several materials by stock transfer from the central warehouse of the German subsidiary in Dresden. For this replenishment delivery type, the shipping process shall in principle be executed in the same way as with customer deliveries. Since both locations are too far away from each other, the posting of the goods receipt at the receiving location does not take place at the same time as the goods issue posting.

Your company decides to introduce cross-company code stock transfers with stock transport orders and to use the LE outbound delivery for the execution of the delivery process. An SD billing document is used for internal settlement.

1-1 Make an entry that determines the delivery type to be used for replenishment delivery for cross-company code stock transfer in supplying plant 12##. Purchasing document type: NB Supplying plant: 12## Delivery type: NLCC Checking rule: RP Delivery scheduling should be executed.

1-2 In addition, make the appropriate settings so that the system uses the two-step procedure for stock transfers with supplying plant 12## and receiving plant 22##. Make an appropriate entry: Supplying plant: 12## Plant: 22## Purchasing document type: NB

1-3 In this scenario, the plant 22## is the ship-to party and the payer. To do this, a customer master record is necessary. During the stock transfer process, the system

(C) SAP AG LO925 5-23

copies various shipping and billing data, such as the address of the ship-to party and the payment terms, from the corresponding customer master data.

Create the customer master record which represents plant 22##. Account group: customer belonging to group Customer: 220## Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 Reference Customer: 22000 Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 Name: Division 22## Paris Search term 1/2: 22## Street/house number: rue des Erables 32 Postal code/town: 75015 Paris Region: 75 Transportation zone: F000010000 Trading Partner ID: 2200 VAT Reg. number: FR93341612695 Tax classification: 0

1-4 Assign customer number 220## to receiving plant 22##.

1-5 The supplying plant 12## should be represented by the vendor master record T-S100##. Make an appropriate specification in the vendor master. Sales organization: 2200

*1-6 Optional: Do you have to enter a sales area for intercompany verification for receiving plant 22## to ensure that your cross-company code stock transfer process functions smoothly? Give reasons for your answer. __________________________________________________________________ __________________________________________________________________

(C) SAP AG LO925 5-24

Exercises


Topic: Creating a Purchase Order for Stock Transports


• Trigger the cross-company code stock transfer process with the help of a standard purchase order

A department of the French branch requires a particular material. It is to be purchased from a central warehouse of the German subsidiary via stock transfer.

2-1 Create a purchase order for 30 PC of material T-AUD## . Vendor: T-S100## Document type: current date Purchasing organization: 2200 Purchasing group: 220 Company code: 2200 Delivery date: current date + 2 weeks Plant: 22## Storage location: 0001 Is the plant you entered in the purchase order the supplying or the receiving plant? _________________________________________ Write down the PO number: ___________________________

2-2 Which shipping point will process the outbound delivery? Shipping point: ____________________

(C) SAP AG LO925 5-25

2-3 Go to the stock overview for material T-AUD##:


2-3-2 Where can you find the released quantity in plant 12##? __________________________________________________

(C) SAP AG LO925 5-26

Exercises




• Give reasons for the choice of delivery type

The replenishment delivery is generated at the shipping point assigned to the central warehouse for the processing of the shipment.

3-1 To carry out the shipping activities, you play the part of an employee at shipping point X0## related to plant 12##. Use the collective processing function to create the replenishment delivery.

3-1-1 Deliver the purchase order created earlier by processing the delivery due list for shipping point X0##. Restrict your selection to shipping point X0##! Delivery creation date: to current date + 2 weeks Write down the outbound delivery number: ______________________

3-1-2 Who is the ship-to party for the replenishment delivery? _____________________________

3-2 Determine the delivery type and the item category in the replenishment delivery: Delivery type: ______________________ Item category: ___________________

3-2-1 Which factors does the delivery type depend on in this particular case? 1. __________________________ 2. __________________________

(C) SAP AG LO925 5-27

*3-2-2 Optional: Which essential setting is different for the two delivery types for stock transfers when compared to a delivery type used for outbound deliveries with reference to sales orders? Field name: _____________________________________________ Look up the appropriate setting for delivery type NLCC. Menu path: ___________________________________________________

Order Required:

(C) SAP AG LO925 5-28

Exercises




• List the effects of the goods issue posting in inventory management

• Explain the determination of the movement type

Once you have executed the shipping activities and goods issue, this issue should be entered in inventory management for the supplying plant. Posting to the receiving plant should not be carried out before the actual receipt of the material in the receiving plant.

4-1 Initiate picking by creating a transfer order for the replenishment delivery you created earlier.


4-2 Post the goods issue for the above replenishment delivery using the one-step procedure or collective processing.

4-3 Return to the stock overview for material T-AUD##:


4-3-2 What order quantity does plant 22## contain? ________________

4-3-3 Under which stock type and under which plant does the system store the goods in transit? Plant: ___________________________

(C) SAP AG LO925 5-29

Stock type: _________________________________

4-4 Go to your replenishment delivery in the material document display via document flow.

4-4-1 Which movement type did the system use for the goods issue? __________________

4-4-2 Which Customizing object does the movement type belong to? _________________________________________

*4-5 Optional: You want to check why the system used the movement type you found in the above exercise.

4-5-1 Which parameters does the system use to determine the schedule line category? 1. ______________________________________ 2. ______________________________________

4-5-2 Look up the relevant entry in the schedule line assignment: Item category: _______________________________ MRP type: _____________________________ Schedule line category: ________________________

4-5-3 Display the definition of the schedule line category you found. Which movement type has been entered for the two-step procedure? ________________

(C) SAP AG LO925 5-30

Exercises




• Determine to which company code the internal invoice is assigned to

• Explain the origin of the sales area

• Explain how the system determines the payer

For intercompany billing of goods that the German company delivered to the French branch, the German branch creates the internal invoice. This step should not differ much from customer billing. Therefore, an SD billing document will be used. The invoice should be sent in the mail to the French company code. The two companies have agreed that there will be no automatic invoice receipt when the internal invoice is created.

5-1 Create the internal invoice with explicit reference to the replenishment delivery you created earlier, using the one-step procedure this time.

5-1-1 Find out to which company code and to which sales area the internal invoice has been assigned. Company code: ______________________ Sales organization: ___________________ Distribution channel: __________________ Division: __________________

5-1-2 Who is the payer and which terms of payment are set? Payer: ____________________ Terms of payment: _______________

5-1-3 Save the internal invoice and write down the document number. Internal invoice: _______________________

5-2 You want to find out the origin of several entries in the internal invoice:

5-2-1 Where does the system get the terms of payment? ___________________________

(C) SAP AG LO925 5-31

5-2-2 Which factor does the payer depend on? ________________________

5-2-3 Which sales area does the system use to access the master data to determine the terms of payment? Sales organization: ___________________ Distribution channel: ___________________ Division: __________________ How does the system determine these organizational units? Menu path: ___________________________________________________ ____________________________________________________________

(C) SAP AG LO925 5-32

Exercises




• Post goods issue for a replenishment delivery

The replenishment delivery arrives at the receiving plant. The goods receipt is now to be posted with reference to the attached delivery document.

6-1 Your are an employee at the goods receiving point of the receiving plant. Post goods receipt with reference to the replenishment delivery utilized earlier. Outbound delivery: document number noted above for the replenishment delivery Document date: current date Posting date: current date

6-2 Display the stock overview for material T-AUD## in plant 22##.

6-2-1 How much unrestricted-use stock does the receiving plant contain now? ____________________

6-2-2 How much cross-company code stock in transit does it contain? ____________________

(C) SAP AG LO925 5-33

Exercises




• Post the invoice receipt in invoice verification

The two companies involved have agreed that for stock transfer procedures, the invoice will be sent by mail from the German to the French branch. Therefore, posting to the vendor’s account in the French company does not automatically take place during the creation of the internal invoice. You are to post the invoice receipt manually.

7-1 The invoice issued by the German branch has arrived:

INVOICE IDES AG (vendor T-S100##)

Invoice date: (current date)

Invoice 590013##

Invoice for your purchase order 4500....

T-AUD## Monitors Sunny 01 30 PC 120000 FRF

Output tax 0% (E4) 0 FRF

Invoice amount: 120000 FRF

Enter the invoice in the company code 2200. Write down the document number. Invoice: _____________________________

(C) SAP AG LO925 5-34

(C) SAP AG LO925 5-35

Cross-Company Stock Transfer Solutions


Topic: Preparations

1-1 IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Select Assign delivery type/checking and then choose New entries. Purchasing document type: NB Supplying plant: 12## Delivery type: NLCC Checking rule: RP Select the Ship.sch. field.

1-2 IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Purchasing document type and then New entries. Supplying plant: 12## Plant: 22## Purchasing document type: NB Do not select the One-step field!

1-3 Logistics → Sales and Distribution → Master Data → Business partners → Customer → Create → Complete Account group: customer belonging to group Customer: 220## Company code: 1000 Sales area Sales organization 1000 Distribution channel: 12 Division: 00 Reference Customer: 22000 Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00

(C) SAP AG LO925 5-36

Address tab page: Name: Division 22## Paris Search term 1/2: 22## Street/house number: rue des Erables 32 Postal code/city: 75015 Paris Region: 75 Transportation zone: F000010000 Control Data tab page: Trading Partner ID: 2200 VAT Reg. number: FR93341612695 Billing document tab page Tax classification: 0 Otherwise, leave the default values.

1-4 IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Plant and then Details for plant 22##. Customer no. - plant: 220##

1-5 Logistics → Materials Management → Purchasing → Master Data → Vendor → Purchasing → Change (Current) Vendor: T-S100## Purchasing organization: 2200 Select the Purchasing Data view. Choose Enter Extras → Add. purchasing data Plant: 12##

*1-6 Optional: To make sure the stock transfer procedure via LE outbound delivery and SD billing document functions smoothly, you have to assign the sales organization, distribution channel and division for intercompany billing to the supplying plant only. For the receiving plant, these organizational units do not have to be assigned since the receiving plant appears as a customer in the process. Instead, it is more important that the corresponding customer master record is available in the appropriate sales areas.

(C) SAP AG LO925 5-37

Solutions


Topic: Creating a Purchase Order for Stock Transports

2-1 Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known Choose the Standard PO purchase order type. Vendor: T-S100## Document date: current date Choose Expand at Header and then the Org.data tab page. Purchasing organization: 2200 Purchasing group: 220 Company code: 2200 Choose Expand at Item overview. Material: T-AUD## PO quantity: 30 PC Delivery date: current date + 2 weeks Plant: 22## Storage location: 0001 The plant you explicitly specified in the purchase order is the receiving plant.

Choose Save

2-2 Logistics → Materials Management → Purchasing → Purchase Order → Display Choose the Shipping tab page in the lower screen area (Item detail). Shipping point: X0##

(C) SAP AG LO925 5-38

2-3 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview Material: T-AUD## Delete the default entries for plant and storage location. Choose Execute.

2-3-1 Plant 12##: 10000 PC Plant 22##: 5 PC

2-3-2 Double-click on the line for plant 12##. The quantity released by stock transport order in plant 12## will also be listed under the StckTrsptOrderRel stock type in the case of cross-company code stock transfer: 30 PC

(C) SAP AG LO925 5-39

Solutions



3-1

3-1-1 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Collective Processing of Documents Due for Delivery → Sales Orders and Purchase Orders Shipping point/receiving pt: X0## Delivery creation date: to current date + 2 weeks Choose Execute. In the list, select the line which refers to the purchase order your created above. Choose Create delivery in background. Then choose Log for Delivery creation, select the entry and choose Documents, in order to determine the outbound delivery number.

3-1-2 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display Ship-to party: 220##

3-2 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display Choose Header Details and then the Administration tab page. Delivery type: NLCC Choose overview; Item overview tab page. Item category: NLC

3-2-1 The delivery type used for the example for stock transfers between company codes depends on the following: 1. Purchasing document type NB 2. Supplying plant 12##

(C) SAP AG LO925 5-40

*3-2-2 Optional: In the Document required field within configuration of the delivery type, you can determine the type of preceding document for a delivery.

IMG: Logistics Execution → Shipping → Deliveries → Define Delivery Types Choose Details for delivery type NLCC. Order required: Purchase order required

(C) SAP AG LO925 5-41

Solutions



4-1 Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Picking date: to current date + 2 weeks Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

4-2 Logistics → Sales and Distribution → Shipping and Transportation → Post Goods Issue → Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Planned goods movement date: to current date + 2 weeks Choose Execute. Select the delivery you created earlier in the deliveries list for goods and then choose Post goods issue. Confirm the dialog box with Enter.

4-3 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview Material: T-AUD## Delete the default entries - if there are any - for Plant and Storage location. Choose Execute.

4-3-1 Plant 12##: 9970 PC Plant 22##: 5 PC

4-3-2 Double-click on the line for plant 22##. Open order qty: 30 PC

4-3-3 Plant: 22## Stock type: Stock in transit CC

(C) SAP AG LO925 5-42

4-4 Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display Environment → Document flow Position the cursor on the material document in the document flow and choose Display document.

4-4-1 Movement type: 643

4-4-2 Schedule line category

*4-5 Optional:

4-5-1 1. Item category 2. MRP type (stored in the material master)

4-5-2 IMG: Sales and Distribution → Sales → Sales Documents → Schedule Lines → Assign Schedule Line Categories Item category: NLC MRP type: blank Schedule line category default (SchLC field): NC Since you did not specify the MRP type in the schedule line category assignment for item category NLC, you do not need to look up the MRP type in the material master of material T-AUD##.

4-5-3 IMG: Sales and Distribution → Sales → Sales Documents → Schedule Lines → Define Schedule Line Categories Select Details for schedule line category NC. Movement type: 643 The Movement type 1-step field contains the movement type that the system would use for the one-step procedure.

(C) SAP AG LO925 5-43

Solutions



5-1 Logistics → Sales and Distribution → Billing → Billing Document → Create Document: Document number of the replenishment delivery you wrote down earlier Select Execute.

5-1-1 Choose Display for document header details. Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 The company code is the supplying company.

5-1-2 Payer: 220## Terms of payment: ZB01

5-1-3 Choose Save.

5-2

5-2-1 The system copies the terms of payment from the customer master record of the payer.

5-2-2 The payer results from the assignment of a customer number to the receiving plant. IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Plant and then Details for plant 22##. You have made the appropriate assignment to plant 22## in a previous exercise.

(C) SAP AG LO925 5-44

5-2-3 Sales organization: 1000 Distribution channel: 12 Division: 00 This is the sales area that is assigned to the supplying plant in Customizing. IMG: Materials Management → Purchasing → Purchase Order → Set Up Stock Transport Order Choose Plant and then Details for plant 12##. The entries have been made in Customizing for Intercompany Billing in connection with the cross-company code sales processing.

(C) SAP AG LO925 5-45

Solutions



6-1 Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Unknown Choose Outbound delivery in the upper screen area, to enter the outbound delivery number. Outbound delivery: document number noted earlier for the replenishment order Document date: current date Posting date: current date Choose Enter or Execute. Select Item OK. Choose Post.

6-2 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview Material: T-AUD## Plant: 22## Choose Execute.

6-2-1 Plant 22##: 35 PC

6-2-2 Double-click on the line for plant 22##. Stock in transit CC: 0

(C) SAP AG LO925 5-46

Solutions



7-1 Logistics → Materials Management→ Logistics Invoice Verification → Document Entry → Enter Invoice Choose Edit → Switch company code. Company code: 2200 Invoice date: current date Posting date: current date Reference: 590013## Amount: 120000 FRF Tax code: E4 Purchase order/scheduling agreement: document number created earlier Choose Enter. Check the difference. Choose Post.


SAP AG 1999

6

Subcontracting

l Creating a subcontract order

l Monitoring provision stock and creating a delivery

l Executing sales activities and posting goods issue


l Posting invoice receipt for a purchase order

Contents:


SAP AG 1999

Subcontracting: Unit Objectives


l Execute the steps for processing subcontracting activities in the system

l Explain the advantages and disadvantages of processing with the LE outbound delivery

l Describe how the functions for subcontracting are included in a scheduling agreement


SAP AG 1999

Subcontracting: Overview Diagram

Third-Party Order Processing Cross-Company Sales



Sales organization

Company code

orders


orders

Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant



SAP AG 1999

Subcontracting: Business Scenario

l With subcontracting, your vendor (that is, the subcontractor) receives components from which they manufacture a product. The end product is requested by your company through a purchase order. Also, the components that the vendor requires for production of the ordered product are listed in the purchase order and also provided tothe subcontractor. The provision of materials may occur via an SD delivery. The components can be determined by the system through a bill of material.


SAP AG 1999

Subcontracting Process

Subcontractor(vendor 1010)

delivers

bills

sends

Plant 1000

Company 1000

2

4

3

5

orders

1 Determination ofrequirements

PurchasingWarehouse

n You order the product to be produced or finished at the vendor. In the purchase order, you enter the components that you are going to provide to the vendor.

n In the system, you enter the issue of the components to the vendor. You enter a goods receipt for the product manufactured by the vendor. This is when you also post the consumption of goods.

n You enter the invoice of the vendor with reference to the purchase order. When you do so, you can also enter a subsequent adjustment for excess consumption or under-consumption.


SAP AG 1999

1st Process Step: Determination of Requirements


delivers

bills

sends

Plant 1000

Company 1000

2

4

3

5

orders

11 Determination of requirements

PurchasingWarehouse

n If there is a requirement for the finished product marked with the special procurement type "Subcontracting", the planning run generates a purchase requisition with item category L ("Subcontracting") or a planned order with item category L. This planned order is converted to a purchase requisition with the item category L. You see the item category, that is the special procurement type L, when you call up the MRP element in the requirement list or the MRP list.

n At the same time, the bill of material for the finished product is exploded. Dependent requirements are created for the planned start date of the planned order or for the release date of the purchase requisition at the finished product level.


SAP AG 1999

2nd Process Step: Create Subcontract Order


delivers

bills

sends

Plant 1000

Company 1000

22

4

3

5

orders

1 Determination ofrequirements

PurchasingWarehouse

n The subcontracting items in the purchasing documents have their own item category. Each SC item has one or several subitems that contain the components to be provided to the vendor.

n You can enter the components manually or determine them through the BOM explosion. n Reservation items are generated for the components that are relevant for requirements planning. n The order price is the price for the subcontracting service of the vendor. n You can store conditions for subcontract orders in a subcontractor purchasing info record. n As of release 4.0.A it is possible to attach service lists to subcontract order items. In this way, you

can transmit detailed specifications to your vendor on which services are to be rendered. The service specifications have an informative character. They have no effect on the value of the item.


SAP AG 1999

Document Type and Item Category forSubcontract Order

Doc.typeDoc.type

Allowed item categoriesBKL - SubcontractingS

Link Pur.Req.- Doc. Type

PReqItem category

Stand. ___Subcontr. ___

Purch.docum.Purch.docum.

Purchase order

Item categorySubcontr. _______

Comp. __Comp. __

Subcontr. _______

Comp. __Comp. __

n Separate document types are set for each purchasing document type. In the document type assignment, you can store follow-on relationships between document types of different purchasing document categories.

n The allowed item categories are assigned to the individual document types in Customizing. In the standard definition, item category L for subcontracting is allowed for document type NB (standard order).

n Item categories rule how a material is to be procured. The item category “subcontracting” defines that components are provided for a material that is ordered at the vendor.


SAP AG 1999

3rd Process Step: Monitor Provision Stock and Execute Transfer Postings for Components


delivers

bills

sends

Plant 1000

Company 1000

2

4

33

5

orders


PurchasingWarehouse

n The components at the subcontractor site are managed in a special stock for vendor. This stock is valuated and available for planning purposes.

n The goods consumption of the components can only be issued from the supply stock for the respective vendor.

n Using an evaluation function, you can monitor the stocks supplied to the vendor.

(C) SAP AG LO925 6-10

SAP AG 1999

LE Outbound Delivery for Components

Postgoods issue

Createoutbounddelivery

Vendor

x

x

x

Comp X1

Comp X2

Comp X3

Comp X4

Subcontr.A

n Before Release 4.0, a transfer posting could only be triggered directly with movement type 541 from the monitoring list for stock of material provided to vendor.

n As of release 4.0, you can also create an LE outbound delivery for a subcontractor from the SC stock monitor. In this way, you can deliver material supplies to the subcontractor in connection with a subcontract order.

n This procedure has the advantage that shipping documents and delivery notes are available for shipping the materials supplied. You can also use the standard functionalities for shipping and shipment processing such as, for example, picking, packing and planning in transportations.

n You can provide the subcontractor with components, without a subcontract order being available as a reference. To do so, you execute a transfer posting with movement type 541. For the ease of input, you can, for example, refer to a bill of material.

(C) SAP AG LO925 6-11

SAP AG 1999

Inventory Management for Components to be Provided

Subcontractmaterial

Material provision

to SC stock

Subcontr.rqmnt

to SC stockAcquisition

Posting changeto SC stock

Own stock

Subcontr.rqmnt

Subcontr. order

Vendor

n The net requirements calculation for the components to be provided in subcontracting takes into consideration that the stock of material provided by customer can only be used as a coverage for the corresponding requirement of material provided. The provision stock already available to a vendor (subcontractor) can therefore only be used as a coverage for the requirement of material provided to this subcontractor.

n Only the stock that is not assigned to a subcontractor can be used as unrestricted-use stock to cover all requirements.

(C) SAP AG LO925 6-12

SAP AG 1999

Settings for LE Outbound Delivery

Sales organizationSales organizationDistributionDistribution channelchannelDivisionDivision

Plant Delivery typeDelivery type

Delivery type

Delivery type

Plant 1000

SCSC material provision requiredmaterial provision required

PartnerPartner procedureprocedure: SC: SC

n A sales organization, a distribution channel, and a division must be assigned to the plant from which the components are to be supplied.

n A delivery type must be entered for the purchase order. In the standard version, delivery type LB is available. The indicator for "Predecessor required" must be set to L.

n A partner procedure should also be assigned to the delivery type. This procedure contains the partner role.

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SAP AG 1999

Required Master Data for LE Outbound Delivery

Material master record of components

Sales organizationSales organizationand distribution channeland distribution channelof deliveringof delivering plantplant

SC vendor

Customer

Shipping condition

Shipping pointShipping pointLoading group

Plant

Sales organizationSales organization,,DistributionDistribution channelchannelDivisionDivision of deliveringof delivering plantplant

Assign customerAssign customer

n In the delivering plant, the shipping data (View „Gen. sales / Plant data" in the material master) must be entered for the component materials.

n A customer must be assigned to the SC vendor in the master record; the customer must be created for the sales organization, distribution channel, and division of the delivering plant.

n A shipping point must be assigned to the combination of shipping condition (from the master record of the customer assigned to the SC vendor), loading group (from the material master of the component), and plant.

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SAP AG 1999

Determination of Outbound Delivery Parametersand Movement Type

Item category LBNScheduleSchedule line catline cat. LB. LB

MRP type

Schedule line cat. LB Movement typeMovement type 541541

Delivery type LBItem categoryItem category LBNLBN

Item category group NORM

n Since the outbound delivery does not refer to a sales order, the system must determine important information about the outbound delivery parameters using other means.

n The vendor to be used is derived from the Customizing settings for subcontract orders. If there is no setting in Customizing, delivery type LB is used in the standard version.

n The item category is the result of the item category search for the delivery. Here the criteria for the delivery type and the item category group of the material play a role. In the standard Customizing settings, item cateogry LBN is assigned.

n When you post the goods issue for the outbound delivery to the SC vendor, the movement type to be used must be known to the system. This is derived from the schedule line category that is determined via the item category.

n In the standard version, schedule line LB is determined for item category LBN and materials with an arbitrary MRP type.

n The standard setting for schedule line category LB defines that movement type 541 is used.

(C) SAP AG LO925 6-15

SAP AG 1999

4th Process Step: Post Goods Receipt


delivers

bills

sends

Plant 1000

Company 1000

2

44

3

5

orders


PurchasingWarehouse

n The goods receipt is entered with reference to the SC order item. n During goods receipt posting, the system automatically generates the components and creates a

goods issue item internally for each component item. The consumption of the components is therefore posted retrograde with the goods issue for the material produced.

n If the SC vendor has used more or less component material than planned in the purchase order, you can correct the component quantity during the GR posting.

n If the SC vendor reports excess consumption or under-consumption only after the GR posting, the difference must be posted as a subsequent adjustment. This adjustment must be entered with reference to the purchase order.

n The requirement for materials supply is reduced when the finished products are entered in goods receipt.

(C) SAP AG LO925 6-16

SAP AG 1999



delivers

bills

sends

Plant 1000

Company 1000

2

4

3

55

orders

1 Determinationof requirements

PurchasingWarehouse

n The invoice for a SC order item refers solely to the labor costs for subcontracting. The labor costs, together with the value of the used components, gives the valuation price with which the SC material is valuated.

n If the vendor reports excess consumption or under-consumption of components after the goods receipt posting, you must then perform a subsequent adjustment. This subsequent adjustment is entered with reference to a purchase order.

n The subsequent adjustment results in a valuation correction of the material produced. n Invoice verification for a subcontracting item is the same as invoice verification for a standard item.

(C) SAP AG LO925 6-17

SAP AG 1999

Postings (Without Input Tax) During Goods and Invoice Receipt

Balance sheet accountSemi-finished product

(1) OP + VP(2) Vr

Balance sheet accountRaw materials

VP (1) OP (1)

GR/IR clearing acct

BP + Vr (2)

Vendor

Cost of goods mfd

OP + VP (1)Vr (2)

Consumption acct

(1) VP (1) OP(2) Vr

Subcontractingaccount

(2) OP

Ordered: Semifin.prod., Components: Raw mat.OP = Purch.ord.price (labor costs), VP = Valuation price raw mat.

Transaction (1): GRTransaction (2): IR; Invoice price: IP = OP + Vr (Variance)

n The postings shown apply to a semi-finished product with a moving average price.

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SAP AG

R

Liquidación

Factura

Costes de mano de obra posiciónde pedido

Control de facturas

Consumos realesde componentespara la posiciónde pedido

Liquidaciónposterior

Corrección devaloración

Modificación de stock

?=

Corrección de valoraciónHistorial de pedido

Proveedor de SC

n Si tras la contabilización de la entrada de mercancías, el proveedor comunica la existencia de consumos de componentes por encima o por debajo de lo previsto, debe efectuarse una liquidación posterior que se registra con referencia a pedido.

n La verificación de facturas de una posición de subcontratación se realiza de la misma forma que la de una posición normal. .

(C) SAP AG LO925 6-19

SAP AG 1999

Scheduling Agreement

BOM

SchedSched.. agtagt

Item category

L Semi-fin prod

Sched.lne 1:

Sched.lne 2:

10000 PC

2000 PCComp 1:Comp 2:

1000 PCComp 1:Comp 2:

20 PC10 PC

10 PC5 PC

BOMSemi

Comp 1Comp 2

PReqn

Semi 1000Comp1 10Comp2 5

L

n In the scheduling agreement item, you enter the material to be produced as a subcontracting item. n In the schedule lines, you enter the components that are required for production of the quantities

given. Reservation items are created for these component quantites. n The scheduling of the scheduling agreements can be executed using requirements planning in the

MRP run.

(C) SAP AG LO925 6-20

SAP AG 1999

Subcontracting:Checklist for Customizing

l Assignment of a sales area to the plant


l Allow item category L for purchasing order document

l If required, assignment of delivery type for supply of material to the plant

If you are implementing user-defined objects indocument control in purchasing and sales:

(C) SAP AG LO925 6-21

SAP AG 1999

Subcontracting: Unit Summary

l Execute the steps for processing subcontracting activities in the system

l Explain the advantages and disadvantages of processing with the LE outbound delivery

l Describe how the functions for subcontracting are included in the scheduling agreement


(C) SAP AG LO925 6-22

Subcontracting Exercises

Unit: Subcontracting

Topic: Subcontract order


• Describe a subcontract order in detail

• Point out the necessary components, their origins and availability

With subcontracting, you provide your vendor (that is, the subcontractor) with components from which he manufactures a product. The end product is requested by your company via a purchase order.

1-1 Vendor T-L10A## produces material T-F1## using subcontracting. You make the necessary components, which are listed in the bill of materials for this material, available to the vendor.

1-1-1 Display the bill of material for material T-F1## in plant 1000, BOM usage 1. What quantity of which materials do you need to make available for material T-F1##? Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Display

Component Quantity

1-1-2 Display the stock overview for the components in plant 1000. What quantity of these materials is marked for unrestricted use in storage location 0001? How many does subcontractor T-L10A## already have?

(C) SAP AG LO925 6-23

Look at the current stock situation for help in answering these questions.

Plant 1000

Material

Unrestricted use Stock of material

provided to vendor

T-B1##

T-B2##

T-B3##

T-B4##

1-1-3 How would the stock look for the subcontractor in the current stock/requirements list? __________________________________

1-1-4 Since you have had material T-F1## produced by subcontractor T-L10A## many times before, you have recorded the conditions in a purchasing info record for subcontracting. Display the purchasing info record for plant 1000 and purchasing info record 1000 and use that information to complete the following: Net price: ___________________ Planned delivery time: _________________

1-2 100 pieces of material T-F1## are to be produced for plant 1000 (Hamburg). Inform purchasing of this in a purchase requisition using a subcontracting item. The delivery date is four weeks from today.

1-2-1 What item category should you use?

1-2-2 How is the component’s requirement date calculated? Purchase requisition: ___________________

1-2-3 Display the current stock/requirement list for your components. Has the available quantity changed?

1-3 Check in Customizing whether the item category is allowed for subcontracting for the purchasing document type (standard purchase order).

(C) SAP AG LO925 6-24

1-4 Create a purchase order for your subcontractor T-L10A##; use the purchasing organization 1000. Refer to your subcontracting purchase requisition item for the material T-F1##.

1-4-1 What price is suggested for the subcontracting costs per piece? How is this price calculated?

1-4-2 Which components are related to this purchase order item?

1-4-3 Check the availability of each component.

Material Requirement quantity

Confirmed quantity

Save the subcontract order. Order number: ____________________

1-5 Did this action affect the available quantity of the components in the current stock/requirement list?

(C) SAP AG LO925 6-25

Exercises


Topic: Monitoring material provided to vendor and transfer posting of the components


• Describe the evaluation function for monitoring stock stored at the vendor’s place of business

• Explain the distinctive features about outbound deliveries for provision of subcontractor stock.

The components that the vendor needs to produce the product that has been ordered are provided to the subcontractor. The components can be determined by the system through a bill of material. The provision of materials may occur via an SD delivery.

2-1 Display the vendor SC inventory for your subcontracted vendor T-L10A## . What materials and what quantities do you still need to send to the vendor so that he can complete the order?


To be delivered

(C) SAP AG LO925 6-26

2-2 Check whether the necessary settings were made for creating an outbound delivery for posting change to SC provision stock.

2-2-1 Display the material master records for the bill of material components and check whether the material master records were created for sales organization 1000 and distribution channel 12.

2-2-2 Which transportation group and loading group are entered for each material? Material Transportation group Loading group T-B1## ____________________________________ T-B2## ____________________________________ T-B3## ____________________________________ T-B4## ____________________________________

2-2-3 What customer is entered for your subcontracted vendor T-L10A## ? Customer: __________________

2-3 You must provide subcontractor T-L10A## with the components that he needs to produce material T-F1##. Initiate the sending of the components by creating an outbound delivery for an open quantity. Use the SC stocks for vendor report to help you. Confirm the quantities suggested for each item.

2-3-1 How many outbound deliveries were created? Outbound delivery number(s): __________________________________

2-3-2 What quantities are delivered to the subcontractor?

2-4 Check the outbound delivery created for the components and corresponding quantities in shipping.

(C) SAP AG LO925 6-27

Exercises


Topic: Executing sales activities and posting goods issue


• Explain shipping processing

• Explain what characterizes the stock of material provided to the vendor

Shipping processing is initiated for the outbound deliveries that were created from the SC stocks for vendor report and goods issue is posted for the components. As a result, the components are transferred from the unrestricted use stock into the subcontractor’s provision stock.

3-1 Initiate picking by creating a transfer order for the outbound delivery you created earlier.


3-2 Post the goods issue for the above outbound delivery using the one-step procedure or collective processing.

3-3 Check the document flow for your outbound delivery and note the document number used for posting goods issue to the subcontractor. Document number: __________________

3-3-1 What is the movement type? Movement type: ___________________________________________

3-3-2 What items does the material document contain? _________________________________________________________

(C) SAP AG LO925 6-28

3-3-3 Why is each material listed twice? _________________________________________________________

3-3-4 Is there an accounting document for this process? __________________________

Display the stock overview for the component materials and use the information to complete the following table, which will give you an idea of the current inventory:

Plant 1000

Material

Unrestricted use Stock of material

provided to vendor

3-3-5 Compare this data to the inventory situation at the start of this exercise. What has changed? ______________________________________________________________ ______________________________________________________________

3-4 Run another SC stocks for vendor report for vendor T-L10A## . What has changed? __________________________________________________ __________________________________________________

(C) SAP AG LO925 6-29

Exercises


Topic: Transfer posting to material provided to vendor


• Perform transfer posting to material provided to vendor without a purchase order using MM processes

• Explain the difference between transfer posting to material provided to vendor and outbound delivery of components to the subcontractor

You would like to replenish your subcontractor’s stocks without a concrete purchase order, so you carry out this step using only a transfer posting (without LE). Check the result of this action by using the stock overview and the current stock/requirements list.

4-1 You know that in the near future there will be many orders for your subcontractor T-L10A## to produce material T-F1##. Therefore, you want to send the vendor a certain amount of the components in the bill of material for this material beforehand so that he can start processing immediately when the orders are received. Make a transfer posting of another 100 pieces of component materials from plant 1000, storage location 0001 to your subcontractor T-L10A##. Use a transfer posting in the inventory management system to carry out this step. Create the transfer posting with reference to the bill of material and include BOM material T-F1## . What menu path should you use? ____________________________________________________________________ ____________________________________________________________________ Movement type: ______________________ Material document: ______________________

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4-2 Display the material document. Which items does it contain?

Component Movement type Special stock indicator

+ / - sign

(C) SAP AG LO925 6-31

Exercises


Topic: Goods receipt for subcontract order


• Record goods receipt for the end product

• Describe how components and end products should be handled in terms of inventory and value

Your vendor (the subcontractor) delivers the finished product and you record goods receipt in the subcontract order.

5-1 Vendor T-L10A## delivers material T-F1##. Record goods receipt for your purchase order in plant 1000, storage location 0001. Which movement type does the system use? Movement type: ______________________ Material document: ______________________

5-2 Display the material document.

5-2-1 Which items does it contain?

Material Movement type Special stock indicator

+ / - sign

(C) SAP AG LO925 6-32

5-2-2 Which G/L accounts have been updated?

Account Account description Debits / Credits

5-3 Your subcontractor tells you that he needs one more piece of component T-B4## in order to produce all the pumps. Record the subsequent adjustment.

Enter your purchase order and press ENTER. Then choose Copy in order to display the material components.

Material document: ______________________________

(C) SAP AG LO925 6-33

Exercises


Topic: Invoice receipt for subcontract order


• Demonstrate manual invoice entry in the invoice verification

• Describe the items in the accounting document

Your vendor (the subcontractor) sends you the invoice for services rendered (producing the material you requested using the components you provided). Record the vendor’s invoice.

6-1 Vendor T-L10A## sends you the invoice for the subcontracting costs for your purchase order. He calculates 10000 UNI plus 10% tax (tax code 1I) for 100 pieces. This corresponds to a total amount of 11000 UNI. Record the vendor’s invoice. Company code: 1000 Invoice date: current date Posting date: current date Reference: 471113## Invoice document number: ______________________

6-2 Display the invoice document and the accounting document. Which accounts were changed?

Account Account description Value

6-3 Display the purchase order history for your subcontract order.

(C) SAP AG LO925 6-34

Subcontracting Solutions


Topic: Subcontract order

1-1 Logistics → Production → Master data → Bills of Material → Bill of Material → Material BOM → Display

1-1-1 Material: T-F1## Plant: 1000 BOM usage: 1

Component Quantity

T-B1## 1

T-B2## 1

T-B3## 1

T-B4## 1

1-1-2 Logistics → Materials Management → Inventory Management → Environment→ Stock → Stock Overview

Plant 1000

Material

Unrestricted use Stock of material provided to vendor

T-B1## 820 0

T-B2## 810 0

T-B3## 800 20

T-B4## 820 0

1-1-3 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock/Requirements List The subcontractor’s stocks are displayed in a separate planning segment, and are not included in the available quantity for the plant.

1-1-4 Logistics → Materials Management → Purchasing→ Master Data → Info Record → Display Vendor: T-L10A##

(C) SAP AG LO925 6-35

Material: T-F1## Purchasing organization: 1000 Plant: 1000 Info category: Subcontracting Choose Purchasing Org. Data 1. Net price: 100 UNI Planned delivery time: 10 days

1-2 Logistics → Materials Management → Purchasing → Purchase Requisition → Create Material: T-F1## Quantity requested: 100 PC Delivery date: current date + 4 weeks Plant: Hamburg

1-2-1 Item category L for subcontracting

1-2-2 In the lower screen section (Item detail), choose the Material data tab page and then Components. The system calculates the requirement date for the components by using delivery date minus planned delivery time of the finished product from the material master. Choose Save.

1-2-3 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock/Requirements List The available quantity is reduced by the subcontracting requirement for the requirement date for the components.

1-3 IMG: Materials Management → Purchasing → Purchase Order → Define Document Types Select the line “NB – Standard PO”. Double-click on Allowed item categories. The item category L is allowed for the standard purchase order.

1-4 Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known Choose the Document overview on button. In the selection variant, choose My purchase requisitions. In the left side of the screen (document overview), select the purchase requisition you have created. Then copy it to the current purchase order in the right side of the screen, using the Adopt button. Alternatively, you can drag the purchase requisition

(C) SAP AG LO925 6-36

onto the shopping basket symbol, using the left mouse button. Vendor: T-L10A## Choose Enter.

1-4-1 The system proposes the price of 100 UNI and copies it from the subcontractor info record. Environment → Info record

1-4-2 In the lower screen section (Item detail), choose the Material data tab page and then Explode BOM. This takes you to the component overview. To create the purchase order with item category L, the system explodes the BOM for material T-F1## in the background and proposes the items from the bill of material as components in the purchase order. The materials are the following: T-B1##, T-B2##, T-B3## and T-B4##.

1-4-3 In the components overview screen, select Component list → Component Availability.


Confirmed quantity

T-B1## 100 100

T-B2## 100 100

T-B3## 100 100

T-B4## 100 100

1-5 Logistics → Materials Management → Inventory Management → Environment → Stock → Stock/Requirements List A separate section is opened for the subcontractor in the current stock/requirements list. The system checks if the subcontractor has already received unrestricted-use quantities from the components. The shortfall quantity will then be planned as remaining requirements for subcontracting in the anonymous section. The currently unrestricted-use quantity has not changed.

(C) SAP AG LO925 6-37

Solutions


Topic: Monitoring material provided to vendor and transfer posting of the components

2-1 Logistics → Materials Management → Purchasing → Purchase Order → Reporting → SC Stocks per Vendor


To be delivered

T-B1## 100 100

T-B2## 100 100

T-B3## 100 80

T-B4## 100 100

2-2

2-2-1 Logistics → Materials Management → Material Master → Material → Display → Display Current Choose the Sales: Sales Org. Data 1 und Sales: Sales Org. Data 2 views. Sales organization: 1000 Distribution channel: 12 The material master records are created in the sales organization 1000 and distribution channel 12.

2-2-2 Logistics → Materials Management → Material Master → Material → Display → Display Current Choose the Sales: General/Plant Data view. Plant 1000

(C) SAP AG LO925 6-38

Material Transportation group

Loading group

T-B1## 0001 0003

T-B2## 0001 0003

T-B3## 0001 0001

T-B4## 0001 0003

2-2-3 Logistics → Materials Management → Purchasing → Master Data → Vendor → Purchasing → Display (Current) Vendor: T-L10A## Purchasing organization: 1000 Select the Control view. Customer: T-L10A## In order to be easily identified, the same customer number is assigned to the subcontractor-vendor in the current system.

2-3 Logistics → Materials Management → Purchasing → Purchase Order → Reporting → SC Stocks per Vendor Vendor: T-L10A##, Choose Execute Choose Select all. Choose Create delivery. Confirm the Create delivery dialog box four times with Enter (without further entries).

2-3-1 The system generates 1 outbound delivery.

2-3-2 The vendor receives 100 pieces of the T-B1##, T-B2## and T-B4## components each and 80 pieces of the T-B3## component.

2-4 Logistics → Logistics Execution → Outbound Process → Goods Issue for Outbound Delivery → Outbound Delivery → Display or Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display

(C) SAP AG LO925 6-39

Solutions


Topic: Executing shipping activities and posting goods issue

3-1 Logistics → Logistics Execution → Outbound Process → Goods Issue for Outbound Delivery → Picking → Create Transfer Order → Via Outb. Delivery Monitor or Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Via Outb. Delivery Monitor Shipping point/receiving pt: 1000 Picking date: to current date + 4 weeks Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

3-2 Logistics → Logistics Execution → Outbound Process → Goods Issue for Outbound Delivery → Post Goods Issue → Collective Processing Via Outb. Delivery Monitor or Logistics → Sales and Distribution → Shipping and Transportation → Post Goods Issue → Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: 1000 Picking date: to current date + 4 weeks Choose Execute. Select the delivery you created above in the deliveries list for goods issue and then select Post goods issue. Confirm the dialog box with Enter.

3-3 Logistics → Logistics Execution → Outbound Process → Goods Issue for Outbound Delivery → Outbound Delivery → Display or Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Display

(C) SAP AG LO925 6-40

Environment → Document flow

3-3-1 Position the cursor on the material document in the document flow and select Display document. Movement type: 541, transfer posting to SC provision stock from unrestricted use

3-3-2 Clearing from storage location Transfer posting in special stock O = Subcontracting

3-3-3 Each material is listed twice since the material will be moved from the unrestricted-use stock to the stock of material provided to vendor. For this stock type, there is a O in the Special stock indicator field.

3-3-4 Choose Accounting documents... No, there is no accounting document for this process. Logistics → Materials Management → Inventory Management → Environment→ Stock → Stock Overview

Plant 1000 Material

Unrestricted use Stock of material provided to vendor

T-B1## 720 100

T-B2## 710 100

T-B3## 720 100

T-B4## 720 100

3-3-5 The unrestricted-use stock has been reduced by the quantity you have just delivered to the subcontractor.

3-4 Logistics → Materials Management → Purchasing → Purchase order → Reporting → SC Stock for Vendor

Vendor: T-L10A##, Choose Execute The vendor has numerous components in the required quantity.

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Solutions


Topic: Transfer posting to material provided to vendor

4-1 Logistics → Materials Management → Inventory Management → Goods Movement → Transfer Posting → Movement Type → Transfer posting → Stck w. subcontract. → From unrestricted In the overview screen, select Transfer posting → Create with reference → To BOM Vendor: T-L10A## Material: T-F1## Quantity: 100 Movement type: 541

4-2 Logistics → Materials Management → Inventory Management → Material Document → Display

Component Movement type Special stock indicator

+ / - sign

T-B1## 541 Blank -

T-B1## 541 O +

T-B2## 541 Blank -

T-B2## 541 O +

T-B3## 541 Blank -

T-B3## 541 O +

T-B4## 541 Blank -

T-B4## 541 O +

(C) SAP AG LO925 6-42

Solutions


Topic: Goods receipt for subcontract order

5-1 Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Known Choose Purchase order in the upper screen area, to enter the purchase order. Purchase order: document number created earlier for the purchase order Document date: current date Posting date: current date Choose Enter or Execute.

Click on Wk tab page in lower screen area (item overview)

Movement type: 101 Storage location: 0001 Select Item OK. Choose Post.

5-2 Logistics → Materials Management → Inventory Management → Material Document → Display

5-2-1

Material Movement type Special stock indicator

+ / - sign

T-F1## 101 Blank +

T-B1## 543 O -

T-B2## 543 O -

T-B3## 543 O -

T-B4## 543 O -

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5-2-2 Choose Accounting documents...in the material document. Click on the Accounting document.

Account Account description Debits / Credits

792000 Finished goods Debit

191100 GR/IR Clearing account Credit

893010 Cost of goods sold Credit

417001 Purchased services Debit

790000 Work in process Credit

893020 Inventory change addition Debit

5-3 Logistics → Materials Management → Inventory Management → Goods Movement → Subsequent Adjustment → Subcontracting Purchase order: document number created earlier for the purchase order Choose Enter. Choose Adopt. Item 4: Quantity 1 Choose Post. If you wished to settle a lower consumption instead of an excess consumption, you would create the quantity with a - sign.

(C) SAP AG LO925 6-44

Solutions


Topic: Invoice receipt for subcontract order

6-1 Logistics → Materials Management→ Invoice Verification→Logistics Invoice Verification → Document Entry → Enter Invoice Choose Edit → Switch company code. Company code: 1000 Invoice date: current date Posting date: current date Reference: 471113## Amount: 11000 UNI Tax amount: 1000 Tax code: 1I (corresponds to 10%) Purchase order/Scheduling agreement: document number created earlier Choose Enter. Check the difference. Choose Post.

6-2 Logistics → Materials Management → Logistics Invoice Verification → Further Processing → Display Invoice Document Invoice document number: default value Fiscal year: default value Select Follow-on documents... Click on the Accounting document.

Account Account description Value

T-L10A## Harvey Parts & Co. 11000-

191100 GR/IR Clearing account 10000

154000 Input tax 1000

6-3 Logistics → Materials Management → Purchasing → Purchase Order → Display Choose the Purchase order history tab page in the lower screen area (Item detail).

(C) SAP AG LO925 6-45


SAP AG 1999

Conclusion




Sales organization

Company code

orders


orders

Plant 2

Plant 1

orders delivers

Company

Plant 2

Plant 1 Company 1

Company 2

orders delivers

Company

orders

delivers delivers

Plant


Sales organization

Company 1

orders

delivers Plant

Company 2

Customer

Cross-Company Sales


SAP AG 1999

Course Objectives


l Execute the cross-application business processes for third-party order processing,cross-company sales, stock transfers, and subcontracting in the SAP R/3 System

l Outline the most important setting options inCustomizing


SAP AG 1999

Recommended Tasks / Literature to Deepen Knowledge of Subject

l Repeat the exercises! For this purpose, use the IDES dataor your own data.

l Read the online documentation!

l Read the IMG documentation!

l Read the release notes!


SAP AG 1999

Appendix

l Menu paths

l Additional slides

Contents:


Menu Paths in Customizing for LO925 Access

Tools → Accelerated SAP → Customizing → Edit Project → SAP Reference-


Definition of a third-party item category → Sales and Distribution→ Sales → Sales Documents Define Item Categories

Maintenance of item category determination → Sales and Distribution → Sales → Sales Documents Assign Item Categories

Definition of a schedule line category for third-party order processing

→ Sales and Distribution → Sales → Sales Documents Define Schedule Line Categories

Maintenance of the schedule line category determination

→ Sales and Distribution → Sales → Sales Documents Assign Schedule Line Categories

Maintenance of copying control for sales document to billing document

→ Sales and Distribution → Billing → Billing Documents Control for Billing Documents → Copying Control: Sales Document to Billing Document

Cross-Company Sales

Assignment of a sales area to intercompany billing for the delivering plant

→ Sales and Distribution → Billing → Intercompany Billing Organizational Units by Plant

Maintenance of assignment between sales organization, distribution channel, and supplying plant

→ Enterprise Structure → Assignment Organization - Distribution Channel - Assign Plant

Assignment of a customer to the sales organization

→ Sales and Distribution → Billing → Intercompany Billing Customer Number by Sales Organization

Maintenance of billing type for intercompany billing in the sales document

→ Sales and Distribution → Billing → Intercompany Billing Types for Intercompany Billing

Maintenance of settings required for automatic posting to vendor account

→ Sales and Distribution → Billing → Intercompany Billing to Vendor Account (SAP-EDI)

Intercompany Stock Transfer

Assignment of a sales area to the delivering plant

→ Materials Management → Purchasing Transport Order → Plant

Assignment of a customer to the receiving plant


Assignment of the delivery type to the replenishment delivery

→ Materials Management → Purchasing Transport Order → Assign Delivery Type / Checking Rule

Decision on one-step or two-step procedure → Materials Management → Purchasing Transport Order → Purchasing Document Type

Shipping point determination → Logistics Execution → Shipping → Basic Shipping Functions Determination → Assign Shipping Points


Maintenance of item category determination in the delivery

→ Logistics Execution → Shipping → DeDetermination in Deliveries

Maintenance of the movement type in the schedule line category




Cross-company stock transfer

Assignment of a sales area to the delivering plant


Assignment of a customer to the receiving plant


Assignment of the delivery type to the replenishment delivery

→ Materials Management → Purchasing Transport Order → Assign Delivery Type / Checking Rule

Decision on one-step or two-step procedure → Materials Management → Purchasing Transport Order → Purchasing Document Type

Shipping point determination → Logistics Execution → Shipping → Basic Shipping Functions Determination → Assign Shipping Points and Goods Points

Maintenance of settings required for automatic invoice receipt

→ Materials Management → Invoice Verification

Maintenance of item category determination in the delivery

→ Logistics Execution → Shipping → Deliveries Determination in Deliveries

Maintenance of the movement type in the schedule line category




Maintenance of the billing type for intercompany billing in the default order type

→ Sales and Distribution → Billing → Intercompany Billing Types for Intercompany Billing

Subcontracting

Assignment of a sales area to the plant → Materials Management → Purchasing Transport Order → Plant

Shipping point determination → Logistics Execution → Shipping → Basic Shipping Functions Determination → Assign Shipping Points and Goods Points

Allow item category L for purchasing order document

→ Materials Management → Purchasing Types → Allowed Item Categories

Assignment of delivery type for supply of material to the plant

→ Materials Management → Purchasing Order


SAP AG 1999

l Double-Entry Accounting

l Balance sheet accounts

l P&L accounts

l Example SD

l Example MM

A BXX XX

Accounting Basics


SAP AG 1999

Double-Entry Accounting

l Each business transaction is posted to at least two different accounts

l Debit postings always appear on the left-hand side of the T accountl Credit postings always appear on the right-hand side of the T account

l Total of debit postings = Total of credit postings

Name of Account

CreditDebit

n The basic principle of double-entry accounting is that each business transaction is always posted to at least two different accounts, that is, posted as a double entry. In the simplest case, there are only two accounts involved.

n The basic idea is Debit to Credit. n In this way, one account is posted to on the debit side, and the other account is posted to on the credit

side. n Basic principle:

Irrespective of the number of accounts involved, the total of debit postings is always the same as the total of credit postings.


SAP AG 1999

Account Types - Balance Sheet Accounts

Asset Accounts

+ Inward movements are posted as debits

+ Outward movements are posted as credits.

+ Examples: Balance, cash, bank, receivables

Capital/Debt Accounts

+ Inward movements are posted as credits

+ Outward movements are posted as debits

+ Example: Liabilities

n Business transactions are posted to accounts (= invoices on two pages where the value movements are also registered).

n In double-entry accounting, you can assign the accounts to different groups of basic accounts. These, in turn, are divided into two categories:

n Balance-sheet accounts (revenue accounts and capital/debt accounts) to which stocks and their changes are posted.

n P&L accounts (expense/cost and revenue/sales accounts) to which profit activities are posted. n All accounts are similar in structure and have the following basic equation:

Initial balance + inward movement - outward movement = Final balance n The basic accounts mentioned above differ from one another with respect to the account side to

which the initial balance, the inward and outward movements, and the final balance are posted.


SAP AG 1999

Account Types - P&L Accounts

Revenue accounts

+ Inward movements are posted as credits

+ Outward movements are posted as debits

+ Example: Sales revenue

Expense accounts

+ Inward movements are posted as debits

+ Outward movements are posted as credits.

+ Example: Material expenditure, price difference


SAP AG 1999

Example SD

+ Sales order: 10 pieces for $12 per piece

+ Goods issue: 10 pieces delivered, standard price $10 per PC

+ Invoice: 10 pieces for $12 per piece

+ Payment receipt: $120


SAP AG 1999

Example SD: Postings

Goods issue:Material usage

(Expense)

100

Stock(Assets)

100

Sales revenue(Revenue)

120

Receivables(Assets)

120

Invoice:

Payment receipt:Receivables

(Assets)

120

Bank(Assets)

120

n With an SD business transaction, for example, an accounting document is created at the time of the goods issue and invoice creation.

n At the time of the goods issue, the goods physically leave the warehouse. In this way, you have a stock (balance) and value posting. The stock is reduced and the material consumption increased. The posting is therefore material consumption to stock.

n At the time of billing, receivables are increased at the customer, and stock issues are posted to sales revenue (posting record: receivables to sales revenue).

n When the payment is received in FI, the receivables are reduced again and the money amount is posted to a bank account (posting record: bank to receivables).

n In this simple example, we have ignored the posting of the output tax.

(C) SAP AG LO925 8-10

SAP AG 1999

Example MM

+ Purchase order: 10 pieces for $12 per PC

+ Goods receipt: 10 pieces delivered, standard price $10 per PC

+ Invoice: 10 pieces for $10 per piece

+ Payment: $100

VendorVendor

(C) SAP AG LO925 8-11

SAP AG 1999

Example MM: Postings

Goods receipt:Stock

(Assets)

100

GR/IR Clearing account

100

100

Vendors(Liabilities)

100

Invoice:

Bank(Assets)

100

Vendors(Liabilities)

100

Payment:

GR/IR Clearing account

n In the example of an MM business transaction, an inward stock movement follows at the time of the goods receipt. As far as the technical side of posting is concerned, clearing entry takes place using a specific goods receipt/invoice receipt-clearing account (stock to GR/IR clearing account).

n As far as it can be valuated with standard prices, posting of the existing difference amount between costs for purchase and valuation can, under some circumstances, be necessary for a price difference account.

n When the invoice is created, the GR/IR clearing account is credited and liabilities are created for the corresponding vendor (GR/IR clearing account to vendors).

n The liabilities are compared using the payment run, and an issue should be recorded on the bank account (liabilities to bank).

n In this simple example, we have ignored the posting of the accrued tax.