Availability check

AVAILABILITY CHECK 1. INTRODUCTION 1.1. Availability Check Availability Check in SAP is determining if the desired delivery quantity can be met on the requested delivery date. 1.2.

Requirements

Requirements are planned outward movements of stock. Sales transfers the information on materials ordered as requirements to material requirements planning. 1.3.

Transfer of Requirements

The transfer of requirements informs production that goods must be produced, or advises purchasing that purchase requisitions have been created for which purchase orders must be created and sent to the suppliers. An availability check can only be carried out if these requirements are transferred.

1.4. Available to Promise [ATP] The ATP quantity is calculated from the warehouse stock, the planned inward movements of stock (production orders, purchase orders, planned orders) and the planned outward movements of stock (sales orders, deliveries, reservations). 1.5.

Replenishment Lead Time [RLT]

Replenishment lead time is the time required to make the material available. That is it is the time needed to order or produce the requested material. It is defined in MRP 3 view of MMR. 2. TYPES OF AVAILABILITY CHECKS 2.1. Types of Availability Checks There are three types of availability checks in SAP.

1. Check against ATP quantities 2. Check against product allocation 3. Rule based Availability Check 2.2.

Check on the Basis of the ATP Quantities

This type of check is performed dynamically for each transaction, taking into account the relevant stock and planned goods movements with or without replenishment lead time. Planned independent requirements are not taken into account here. 2.3.

Check against Product Allocation

This type of check is based on certain predefined distribution quantity of products to Customers. Product allocation facilitates period-based distribution of products for certain customers or regions. This ensures, for example, that when production is low, the first customer does not get the full amount, resulting in following sales orders not being confirmed or being confirmed far too late. 2.4.

Rule based Availability Check

Rule based Availability Check is based on certain rules like carrying out an availability check in several plants and with several alternative materials. This availability check takes place in the stand-alone APO planning system (Advanced Planner and Optimizer) from SAP. 2.5.

Availability Check Including Replenishment Time

Replenishment lead time is only included in the check performed on the basis of the ATP quantity. Availability is only checked up to the end of replenishment lead time. If the material availability date is calculated on the basis of the current date to lie after the replenishment lead time for the item, the item itself can be confirmed despite insufficient stock being available. In this case, the system assumes that any quantity requested by the customer can be procured by the material availability date and considers the goods to be available. 3. SCHEDULING FOR AVAILABILITY CHECK IN SD

3.1 Requested Delivery Date Requested delivery date is the date on which the material should be delivered to the customer at his location.

3.2 Date for Availability Check Availability is checked on the material availability date.

3.3 Material Availability Date Material Availability date is the date on which the material should be available in order to confirm the customer’s requested delivery date. On this date, you must begin picking, packing, labeling, and loading the goods.

It is determined by carrying out backward scheduling from the customers requested delivery date.

3.4 Backwards Scheduling Backward Scheduling is the scheduling of delivery related activities in the backward direction from the requested delivery date to determine Material Availability date. 3.5

Forward Scheduling

Forward Scheduling is the scheduling of delivery related activities in the forward direction from Material Availability Date to the requested delivery date. 4. PREREQUISITES FOR CARRYING OUT AVAILABILITY CHECK IN SD

4.1 Requirements Class i. ii.

The availability check must be switched on at requirements class level. The requirements class contains all control features for planning such as relevance for planning, requirements planning strategy and requirements consumption strategy.

4.2 Requirements type i.

ii.

4.3

A requirements type must exist by which the requirements class can be found. Various requirements are identified by their requirements type. The requirements type refers to the requirements class and its control features. Delivering Plant

A plant must be defined at document item level 4.4

Schedule Line Category

Av. Ch. must be switched on at Schedule Line Category [only for Sales Documents] 4.5

i.

Checking Group A checking group must be defined in the material master record on the Sales/plant data screen in the Availability check field.

ii.

The checking group controls whether the system is to create individual or collective requirements in sales and shipping processing.

4.6

For Deliveries

The delivery item category can be used to control whether an availability check takes place in deliveries. 4.7

Checking Rule

Checking rule is used to control the scope of the availability check for each transaction in sales and distribution. 4.8

Other General Controls

Strategy Group, MRP Group and Planning Strategies are other controls used in the process of Availability Check. 5. CONFIGURATION FOR AVAILABILITY CHECK IN SD

S.No 01

02 03 04

01

02

Configurations at IMG level [Basic Functions/TOR & Av. Ch] Configuratio Description Examples/ n Remarks Checking Define Checking Group and specify Ex : 01 for Coll. Req. Group whether check to be carried out 02 for Ind. Req. and set for Individual/Collective etc. requirements. Requirement Switch on Availability Check for the Ex – For Class Requirement Class. Requirement Class 041. Schedule Line Switch on Availability Check at Ex : For CP, C1 etc. Category Schedule Line Category level. Control for Assign Checking Rule to Checking Checking Rules are Availability Group and define the scope of predefined in SD. Check Availability Check. The scope Ex : A for SD Order includes various stock [safety, B for SD transfer etc], Inward/Outward Delivery movements, RLT etc. etc. Other Settings Default Value Checking Group set for [Material Ex : FERT + Type + Plant ] as default value. Plant1000 Used only if not mentioned in = Ch. Gr. 01. MMR. Material Block Block indicator can be activated if A –Order, B – others have to be blocked from Delivery Note, Ccarrying out Av. Ch while it is being Reservation. These checked. initiators cannot be changed.

03

Item Category

04

System Responses

Availability Check can be activated or deactivated at Item Category level. Based on Sales Area, system responses can be set in Av. Ch. Rule, should there be no/insufficient stock[after Av. Ch].

Ex : REN can be switched off. Ex : A dialog box for selecting one time / complete / delevery proposal.

6. SCOPE OF AVAILABILITY CHECK

6.1 Factors for defining the Scope of Availability Check Checking rule in combination with the checking group controls the scope of the availability check.

6.2 Elements that can be considered in the Scope The following elements can be included in the availability check: a. Stock    

safety stock stock in transfer quality inspection blocked stock

b. Inward/Outward movement of goods         

purchase orders purchase requisitions planned orders production orders reservations dependent reservations dependent requirements sales requirements delivery requirements

6.3 Replenishment Time in Scope Replenishment lead time can be included in the check performed on the basis of the ATP quantity. Availability is only checked up to the end of replenishment lead time.

7. REACTIONS TO AVAILABILITY CHECK 7.1

Introduction

If the goods ordered by the customer are not available on the requested date, the system branches automatically during sales document processing to Availability Control screen where the following proposals are offered for selection: i. ii. iii.

One-time delivery on the requested delivery date Complete delivery Delivery proposal

This is on account of configuration in IMG based on Sales Area and Availability Check Rule.

7.2 One Time Delivery If stock of the material is available to make a delivery on the requested delivery date, the stock quantity is confirmed here. If there is no stock available, confirmed quantity zero is displayed. 7.3 i.

ii. 7.4

Complete Delivery If there is sufficient stock available at a later date to cover the required quantity in the sales document, the system proposes the date here. If the system determines that complete delivery cannot be made at a later date, no date is proposed in this section. Delivery Proposal

The system checks whether and for which dates partial deliveries can be made. Partial deliveries are displayed for different dates. These dates are based on the planned inward and outward movements of stock.

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Batch Management 1.0 Batch 1.1 Definition Batch is a quantity or partial quantity of a certain material or product that has been produced according to the same recipe. It represents a homogenous unit with unique specifications. Note : • •

Batches are always assigned to a material Batches can only be used for materials that are to be handled in batches

1.2 Purpose In various industries – particularly the process industry – you have to work with homogenous partial quantities of a material or product throughout the logistics quantity and value chain There are various reasons for this: • • • • •

Legal requirements (for example, the guidelines set out by GMP (Good Manufacturing Practice) or regulations on hazardous material Defect tracing, callback activities, and regression requirement The need for differentiated quantity-and value-based Inventory Management (for example, due to heterogeneous yield/result qualities or varying constituents in Production. Differences in usage and the monitoring thereof in materials planning in SD and Production. Production or procedural requirements (for example, settlement of material quantities on the basis of different batch specifications).

2.0 Batch Level and Number Assignment 2.1 Batch Level In the SAP System, the batch number uniquely identifies the batch. You use the batch level to specify whether the batch number for a material is unique in one plant, or in all plants. •

Plant level The batch number is unique in connection with the plant and material. The batch number is only known in the plant in which it was created if the stock is transferred to another plant, the batch is unknown in the recipient plant and the system does not adopt any data. You have to recreate and specify the batch in the receiving plant; that is, the same batch number may have different specifications in several plants.

•

Material level: The batch number is unique in all plants in connection with the material. The same batch number has the same meaning for the material in all plants. One batch number cannot have different specifications in different plants. During stock transfer to another plant, the specification of the batch is known in the destination plant even if the batch is placed into storage in that plant for the first time.

•

Client level: The batch number is unique in the whole client. A batch number can only be assigned once in the client. You cannot assign the same batch number for different materials

2.2 Batch Number Assignment The batch number may be assigned at different times, for example: • • • • • •

During manual creation of a batch When carrying out goods movements, for example, goods receipt or transfer posting During creation of a process or production order When a usage decision is made in quality management During quality analysis (due to aging, for example) When creating a purchase order

3.0 Batches in Sales Processing 3.1 Sales Documents for Batches For materials managed in batches individual batch numbers can be entered for the following documents: • • •

Pre-sales documents (such as inquiries or quotations) Sales orders Delivery

3.2 Batch Checks If you enter a batch number directly into the sales document, system may carry out the following checks : a. Availability of Batch b. Expiry Date for Batch etc.

4.0 Copying Batch Numbers 4.1 Copying Batch Numbers in Sales Documents

When a pre-sales document is copied to a sales order, any existing batch numbers are also automatically copied but cannot be changed in the sales order. For a sales order with materials to be managed in batches that does not have a preceding document, batch numbers can be changed until subsequent documents, such as the delivery, have also been created.

4.2 Copying Batch Numbers from Sales Order to Deliveries When copying a sales order with batch numbers to a delivery, all batch data is automatically copied. The batch numbers which are copied to the delivery cannot be changed. when creating a delivery, if the system discovers that the copied batch is not valid, a warning is issued by the system. In this case, the batch specification must be changed in the sales document source

4.3 Automatic Batch Determination in Delivery Documents If no batch number is proposed in the sales order for an item with material to be handled in batches, automatic batch determination can be carried out in the delivery.

5.0 Splitting Batches in a Delivery Batch split describes the situation when you want to specify quantities from more than one batch for a particular delivery item. To carry out batch split in a delivery, proceed as follows: In the delivery, mark the item for which you want to split batches and choose Goto  Item Batch  split.

6.0 Master Data for Materials handled in Batches 6.1 Batch Management Indicator If a material is managed in batches, you indicate this fact in the material master record in either the Purchasing or Plant data/storage 1 views.

6.2 Availability Check In the General Sales view, or in the MRP view, choose availability check group CH. The replenishment lead time should not be considered in the dynamic availability check for batches, since batches are not reproducible.

6.3 Classification A Class must be assigned with Class type 022 or 023.

7.0 Batch Specifications

7.1 Definition Batch specifications describe the technical, physical and/or chemical properties of a batch. You store batch specifications, such as batch status or active ingredient potency, as characteristics in the Classification System. Example : Batches of car paint are specified by color value, viscosity and expiration date. The characteristics color value, viscosity and expiration date for these properties are stored in the classification system and the respective values are assigned to each individual batch.

7.2 Specifications in the Classification System [Characteristics] You define properties of the material and its batches and store them as characteristics in the classification system.

7.3 Classes You create classes for the material and the batches and assign the characteristics to the classes.

7.4 Class Type The class must be assigned to a class type. There are two class types of the category Batch for batches and their materials: o o

022 at plant level 023 at client or material level

7.5 Material Master Record Material master record is to be created and assigned the desired class to the material and assign characteristics to the material. Only one Class may be assigned for the Class type 022 or 023. The replenishment lead time should not be considered in the dynamic availability check for batches, since batches are not reproducible. In the General Sales view, or in the MRP view, choose availability check group CH.

8.0 Path for creating various objects 8.1 Characteristics [CT04] Cross Application Components → Classification → Master Data → Characteristics

8.2

Classes [CL01]

Cross Application Components → Classification → Master Data → Classes

8.3 Batch [MSC1N]

Logistics → Central Functions → Batch Management → Batch → Create

9.0 Creating a Batch Master Record 9.1 Creating a Batch Master Record Manually To create a batch master record manually, choose Logistics  Central Functions  Batch Management  Batch  Create

9.2 Creating a Batch Master Record in the Background The system creates a batch master record in the background in the following procedures: • • • • • •

The first time goods are received for a batch During creation of a process or production order When a usage decision is made in quality management During a recurring inspection For transfer postings (when you want to split a batch, for example) When creating a purchase order

10.0 Batch Determination 10.1 Batch determination in Supply Chain Process Batch determination is used for all types of goods movements from the warehouse to find batches that meet defined specifications. It is used for the following areas :

i. ii. iii. iv.

Inventory Management (IM), Production (PP/PP-PI) Sales and Distribution (SD) Warehouse Management System (WM)

10.2 Condition Technique Condition Technique is used for the determination of Batches.

11.0 Batch Determination in Sales and Distribution 11.1 Points for Batch Determination There are four points at which you should use batch determination in Sales & Distribution. These are: • • • •

Quotations Quantity contracts Sales orders (or scheduling agreement) Delivery

11.2 Path for Configuration IMG → Logistics General → Batch Management → Batch Determination and Batch Check

11.3 Path for Condition Records Logistics → Central Functions → Batch Management → Batch → Create

12.0 Batch Determination Distribution]

–

Configuration[for

Sales

and

12.1 Standard Condition Tables •

001 Material

•

002 Customer/material

•

003 Customer/plant/material

•

004 Destination country/material group

•

005 Destination country

•

006 Material group

12.2 Standard Access Sequences Access sequences SD01, SD02, and SD03 are defined in the standard SAP R/3 System

12.3 Standard Strategy types [Condition Types] Strategy types SD01, SD02, and SD03 are defined in the standard SAP R/3 System

12.4 Standard Batch Search Procedure The standard SAP R/3 System contains search procedure SD0001

12.5 Allocate Batch Search Procedure/Activate Check Batch search procedures are assigned to the combinations of sales organization, distribution channel, division and sales document type. [1000 10 00 OR → SD0001]. Set indicator Check batch, if the system has to check manually entered batches

12.6 Activate Automatic Batch Determination in SD Auto batch determination indicator is set for those order and delivery item categories for which batch determination is to be triggered automatically.

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FREE GOODS 1.0 BASICS

FREE GOODS

S.No Item

Description

Remarks

1

Free Goods

This may depend on some conditions

2

Types of Free Goods

Free Goods in SAP is giving certain material/quantity as free of charge based on Order quantity. Free Goods are of two types in SAP, Inclusive Free Goods and Exclusive Free Goods If the Free Goods quantity is a part of Order quantity, it is said to be Inclusive Free Goods.

3

Inclusive Free Goods

4

Exclusive Free Goods

5

Conditions

6

Condition Technique

Also called as Inclusive Bonus Quantity. Example: Buy 10 get 1 free is the Policy. The total quantity Customer is charged for 9 qty. only and one is customer gets is 10. given free. If the Free Goods quantity is in addition to Also called as Order quantity, it is said to be Exclusive Free Exclusive Bonus Goods. Quantity. Example: Buy 10 get 1 free is the Policy. The total quantity Customer is charged for 10 qty. and one is customer gets is 11. given extra. For Exclusive Free Goods, the material being For Material X, given free could be different from Ordered Material Y may be material. given free. Free goods agreement is maintained like a Transaction Code for condition. These agreements are maintained Master Data : VBN1 as Master Data which is copied into Sales Documents. Condition Technique could be used to In the standard determine the Free Goods based on the system, conditions appropriate levels. For example, at may be maintained customer/material level or customer at customer/material hierarchy/material level etc.. level.

2.0 MASTER DATA MAINTENANCE S.No

Data Entry

01

Path

02

T-Code

MASTER DATA FOR FREE GOODS Description Logistics → SD → Master Data → Conditions → Free Goods → Create VBN1

Examples/ Remarks -

03

Initial Screen

Enter Condition Type Select Inclusive or Exclusive as desired by clicking on the Button on Application Tool Bar. Specify a validity period for the free goods agreement Specify a minimum quantity that Customer may Order for Free Goods eligibility Specify Quantity and Unit of measure for which free goods will be given.

04

Overview Screen

Specify the quantity of Goods being given as free along with Unit of measure Maintain Calculation Rule For Exclusive Free Goods additional Material, different from Ordered Material, being given free can also be maintained If required maintain other information and click on save button

Ex : Discount. Type – NA00 Ex : Min. Order Qty. 20. Ex : For every 5 PCs free some qty. is given Ex : 1 PC is free By default 1 is maintained. Not applicable for Inclusive Free Goods -

3.0 FIELDS IN THE MASTER DATA SCREEN FIELDS IN THE MASTER DATA OVERVIEW SCREEN Field description

Contents

Material

Material, for which free goods is to be granted

Minimum quantity From FGQ

Minimum quantity for which free goods can be granted Quantity of sales material Quantity unit of Sales material

Free Goods

Quantity of free goods with reference to the quantity and quantity unit of the sales material

AQU Rule D

Quantity unit of the free goods additional quantity Calculation rule Delivery Control

Additional Material Additional material (only available for entry in exclusive free goods)

4.0 CALCULATION RULE S.No

Item

CALCULATION RULE FOR FREE GOODS Description

Examples/ Remarks

01

02

Calculation Rule

Standard Calculation Rules

03

Enhancements / Routines

04

Example for Calculation Rule

Calculation Rules Rule 1 Rule 2 Rule 3

The calculation rule defines the manner in which the free goods amount is calculated from the free goods quantity, additional quantity and the document quantity. Calculation Rules Description Rule 1 Proportional [pro-rata] Rule 2 Unit Reference Rule 3 Whole Unit We can enhance the rules for determining the free goods quantity by modifying existing routines or adding new routines 10 pieces of a material are granted as exclusive free goods for an order of 100 pieces. A customer orders 150 pieces. Depending on the rule used, the customer receives the following free goods quantity: Description Proportional [pro-rata] Unit Reference Whole Unit

-

Transaction : VOFM

-

Free Goods Quantity 15 10 10

5.0 LIMITATIONS OF FREE GOODS LIMITATIONS

S.No Item

Description

Remarks

1

1:1 Ratio [Exclusive]

2

Material Structures

Free goods can only be supported on a 1:1 ratio. For an order item another different Item may be given free. Free goods are not supported in combinations with material structures.

3

Document Category

Free goods are only supported for sales orders with document category C.

4

Deliveries

5

Special Business Processes

Free goods are not supported for deliveries without reference to a sales order. Free goods cannot be used for certain special business processes.

Not Possible : For X and Y, Z is free etc. Ex : Product selection, BOM, variants with BOM explosion Ex : Not supported with Credit Memo Requests etc. Order Reference Mandatory Ex : MTO, TPO, Scheduling Agreements etc.

6.0 FREE GOODS DETERMINATION

6.1 CONDITION TABLE S.No Item Description 1

Definition

2

Path

3

T-Code

5

Entry Screen

5

Table Number

A Condition Table is a combination of fields which form a key for a Condition Record. IMG → SD → Basic Functions → Free Goods → Condition Technique for Free Goods → Maintain Condition Tables V/N2 In the entry screen, enter the desired Table number otherwise system generates a number automatically Users can create table from 501 to 999.

Standard Condition Table used is Table 10 which has fields Sales Organization, Distribution Channel, Customer and Material Select the fields from the list of allowed fields [Field Catalogue] by double clicking the required 6 Process fields which are reflected on the selected fields and click on Generate Icon on Application Tool Bar. Note : The tables are created from the List of allowed fields. 6

Standard Table

6.2 ACCESS SEQUENCE S.No Item Description 1

Definition

2

Path

3

Characters New Access Sequence

4

5

Accesses

6

Fields

An Access Sequence is a search strategy which SAP system uses to search for condition records valid for a condition type. It determines the sequence in which the system searches for data. IMG → SD → Basic Functions → Free Goods → Condition Technique for Free Goods → Maintain Access Sequence Access Sequence is a 4 digit Alpha Numeric key In the Application Tool bar select New Entries and define the desired Access Sequence. Select the new Access Sequence and double click on Accesses. System may not display any Accesses here. Again click on new Entries on Application Tool Bar. Now we can add the desired condition tables against each access. Select the first Access double click on fields. System may display all the fields in the condition table maintained for that Access. Similarly each access is selected and fields are initialized.

Remarks Assigned to Access Sequence NA00. -

Remarks The access sequence consists of one or more accesses A text can also be added. An Access is like serial number which is to be numbered with some gaps.

-

7 8

Standard Access Standard Access Sequence maintained is NA00. Sequence Tables Tables in an Access Sequence are to be arranged arrangement from the most specific to the most general table.

It has Table 10. -

6.3 DISCOUNT TYPE [CONDITION TYPE] S.No Item Description Remarks Discount Types in Free Goods similar to 1 Definition Condition Types in Pricing. 2

Path

3

Characters

4

New Condition Type

5

Standard Condition Type

IMG → SD → Basic Functions → Free Goods → Condition Technique for Free Goods → Maintain Condition Type. Condition Type is a 4 digit Alpha Numeric key Select a Condition Type which is similar to the desired condition Type and click on New Entries A text can also be in the Application Tool bar. added. Define a new Condition Type with 4 characters and assign the new Access Sequence to it. Standard Condition Type maintained is NA00.

6.4 PRICING PROCEDURE [FREE GOODS PROCEDURE] S.No Item Description 1

Definition

2

Path

3

Characters

4

New Pricing Procedure

5

Standard Free Goods Procedure

It has Access Sequence NA00.

Remarks

Pricing procedure is the collection of desired Free Goods Condition Types along with other control Procedure is also features. called as Pricing Procedure IMG → SD → Basic Functions → Free Goods → Condition Technique for Free Goods Maintain Pricing Procedures Pricing Procedure is a 6 digit Alpha Numeric key Select a standard Pricing Procedure which is similar to the desired Pricing Procedure and click on Copy As Icon in the Application Tool bar. A text can also be Define a new Pricing Procedure with 6 characters added. and assign the new Condition Types and also retain the required standard condition Types. SAP Standard Free Goods Procedure is NA0001

6.5 CUSTOMER PRICING PROCEDURE S.No Item Description

It has Condition Type NA00.

Remarks

1

Definition

2

Path

3

T-Code

4

Characters

5

New Customer Pricing Procedure

6

CMR

Customer Pricing procedure is a single digit alpha-numeric key assigned to customer master record and is used in Pricing Procedure determination IMG → SD → Basic Functions → Pricing → Pricing Control → Define and Assign Pricing Procedures → Define Customer Pricing Procedure OVKP

Definition

2

Path

3

T-Code

4

Characters

5

New Document Pricing Procedure

Document Pricing procedure is a single digit alpha-numeric key assigned to Document Type and is used in Pricing Procedure determination IMG → SD → Basic Functions → Pricing → Pricing Control → Define and Assign Pricing Procedures → Define Document Pricing Procedure OVKI

Definition

2

Path

3

T-Code

-

Remarks -

-

Single digit alpha-numeric key Ex : A - Standard Select a standard Document Pricing Procedure and click on Copy As Icon in the Application A text can also be Tool bar. added. Enter any single digit number or a character and give a meaningful name and save.

6.7 ASSIGNING DOCUMENT PRICING PROCEDURES S.No Item Description 1

-

Single digit alpha-numeric key Ex : 1 - Standard Select a standard Customer Pricing Procedure and click on Copy As Icon in the Application A text can also be Tool bar. added. Enter any single digit number or a character and give a meaningful name and save. Sales view of This Customer Pricing Procedure is to be Sales Area in assigned to the required customer master records. CMR.

6.6 DOCUMENT PRICING PROCEDURE S.No Item Description 1

-

Remarks

Document Pricing procedure is to be assigned to Ex : A – OR required sales and billing document types. IMG → SD → Basic Functions → Pricing → Pricing Control → Define and Assign Pricing Procedures → Assign Document Pricing Procedure OVKJ OVTP for Billing

6.8 PRICING PROCEDURE [FREE GOODS PROCEDURE] DETERMINATION S.No Item Description Remarks 1

Definition

2

Path

3

New Pricing Procedure Determination

Pricing procedure is determined based on Sales Area, Customer Pricing Procedure and Document Pricing Procedure. IMG → SD → Basic Functions → Pricing → Pricing Control → Define and Assign Pricing Procedures → Define Pricing Procedure Determination Select a standard combination of sales area, Customer Pricing Procedure and Document Pricing Procedure and click on Copy As Icon in the Application Tool bar. . Enter the desired values and the new Pricing Procedure.



-

This is similar to General Pricing Procedure Determination.

MATERIAL DETERMINATION 7.0 BASICS MATERIAL DETERMINATION

S.No Item 1

2

3

4

5

Description

Remarks

Material determination enables the automatic Material substitution of materials in sales documents Determination during sales order processing 1. As sales promotion the system can, during sales order entry, automatically substitute a material that has promotional packaging. 2. Customer-specific product numbers Examples with your own material numbers etc. 3. International Article Numbers (EANs) with your own material numbers. 4. Substituting discontinued materials with newer materials. Displaying The material entered can be viewed in Sales A Material view in a Sales Document. Entered Master Data for Material Determination is maintained like conditions. Master Data Conditions contains the details like the substitute materials and original materials etc. Condition Technique could be used for Material Condition Determination based on the appropriate levels. Technique For example, at material level or customer material level etc.

It is triggered when a material is entered in the order. In the case of International Article Numbers, you must also enter a unit of measure for the substitute material

Overview Screen : Goto → Item → Sales A Transaction Code for Master Data : VB11 In the standard system, conditions may be maintained at material level.

2.0 CREATION OF MASTER DATA Master Data S.No Item 01

Path

02 03

Initial Screen Overview Screen

Description Logistics → Sales and distribution → Master data → Products → Material Determination → Create Enter desired Determination Type Enter the following data: – Validity period for the master record – Material entered (the material you want the system to substitute with another) – Substitute material.

Examples/ Remarks T-Code - VB11 Ex : A001 In the case of International Article Numbers, a unit of measure must be entered

– Optionally, a reason for the substitution for the substitute (the reason may appear in system material. messages during sales order processing) – If more than one Substitute materials are to be maintained by double clicking on the Substitute Material field - Click on Save Button

3.0 SUBSTITUTION REASON S.No Item 01 Definition 02

Path for Configuration

SUBSTITUTION REASON Description A Substitution Reason [or Proposed Reason] controls the execution of Material Determination IMG → SD → Basic Functions → Material Determination → Define Substitution Reason Define a New Substitution Reason with a

Examples/ Remarks It is assigned in the master data [ VB11 ] T-Code - OVRQ

Reasons : International Article Number, Advt., 4-Character Alpha Numeric Key and a Special Packing, etc. description for the Reasons Substitution Reason is associated with the Depending on the 04 Controls controls like Entry, Warning, Strategy, requirement the controls Outcome etc. may be set. Indicates if the system is to print the name To be marked for original Entry or number of the original material, in the material reflection in output [Order Confirmation etc]. output. Indicates whether the system displays a To be marked if warn. Warning warning message before substituting a Message is required. material Controls whether product selection should Ex : Blank- Auto. Subs occur automatically in the background or A – Disp. Sub list 05 Control Strategy whether the alternative materials should B - Without ATP elements be offered for selection in a dialog box. *Av. Ch. done for Prod Sel. in back ground.* Controls whether the outcome of product Ex : Blank – Replace selection should replace the original entry A : Subs. Prod. or whether it should be recorded as a subdisp as subitem Outcome item of the original entry. B : As in A, but in in sales order only. Note : 1. For Automatic swapping Material Entered need not have MMR. 2. When outcome sub-item is displayed then both the materials should have MMRs.

03

New Substitution Reason

4.0 MATERIAL DETERMINATION PROCEDURE

4.1 CONDITION TABLE

S.No Item 1

Definition

2

Path

3

T-Code

4

Entry Screen

5

Table Number

6

Process

7

Change

8

Display

Description A Condition Table is a combination of fields which form a key for a Condition Record. IMG → SD → Basic Functions → Material Determination → Maintain Prerequisites for Material Determination → Define Condition Table OV16

Remarks -

In the entry screen enter the desired Table number and press enter button otherwise system assigns number automatically. Users can create table from 501 to 999. Ex : Table 1 – Fields Material Entered Select the fields from the list of allowed fields [Field Catalogue] by double clicking the required fields which are reflected on the selected fields and click on Generate Icon on Application Tool Bar. OV17 OV18 -

Note : The tables are created from the List of allowed fields. 4.2 ACCESS SEQUENCE

S.No Item 1

Definition

2

Path

3

Characters New Access Sequence

4

5

Accesses

Description An Access Sequence is a search strategy which SAP system uses to search for condition records valid for a condition type. It determines the sequence in which the system searches for data. IMG → SD → Basic Functions → Material Determination → Maintain Prerequisites for Material Determination → Maintain Access Sequence Access Sequence is a 4 digit Alpha Numeric key In the Application Tool bar select New Entries and define the desired Access Sequence. Select the new Access Sequence and double click on Accesses. System may not display any Accesses here. Again click on new Entries on Application Tool Bar. Now we can add the desired condition tables against each access.

Remarks The access sequence consists of one or more accesses

A text can also be added. An Access is like serial number which is to be numbered with some gaps.

6

Fields

7

Tables arrangement

Select the first Access double click on fields. System may display all the fields in the condition table maintained for that Access. Similarly each access is selected and fields are initialized. Tables in an Access Sequence are to be arranged from the most specific to the most general table.

-

4.3 MATERIAL DETERMINATION TYPE

S.No Item 1

Definition

2

Path

3

Characters

4

New Condition Type

Description Remarks Material Determination Type is similar to Condition Type in Pricing. IMG → SD → Basic Functions → Material Determination → Maintain Prerequisites for Material Determination → Define Condition Types Condition Type is a 4 digit Alpha Numeric key Select a Condition Type which is similar to the desired condition Type and click on Copy As A text can also be button in the Application Tool bar. added. Define a new Condition Type with 4 characters and assign the new Access Sequence to it.

4.4 MATERIAL DETERMINATION PROCEDURE

S.No Item 1

Definition

2

Path

3

Characters

4

New Pricing Procedure

Description

Remarks

Material Determination procedure is the collection of desired Material Determination Types [Condition Types]. IMG → SD → Basic Functions → Material Determination → Maintain Pre-requisites for Material Determination → Maintain Procedure Material Determination Procedure is a 6 digit Ex : A00001 Alpha Numeric key Select a standard Material Determination Procedure and click on Copy As Icon in the Application Tool bar. A text can also be Define a new Material Determination Procedure added. with 6 characters and assign the new Condition Types and also if required retain the required standard condition Types.

4.5 ASSIGNING PROCEDURE TO SALES DOCUMENT TYPES

S.No Item 1

Definition

2

Path

Description Material Determination procedure is to be assigned to the desired Sales Document Types. IMG → SD → Basic Functions → Material Determination → Assign Procedures To Sales Document Types

Remarks -

3

Example

Assign the Material Determination Procedure to Ex : A00001 is assigned to OR Sales Document

5.0 STANDARD ITEM CATEGORIES AND SCHEDULE LINE CATEGORIES Item Category Determination when sub item is used S.No

Item

Doc. Type

Item Category Group 01 Main Item OR Norm 02 Sub Item OR Norm Note : 1. Schedule Line Category for Main Item – CX. 2. Schedule Line Category for Sub Item - PP.



Usage PSHP PSEL

Higher Level Item Category TAX

. Item Category TAX TAPS

OUTPUT DETERMINATION OUTPUT DETERMINATION

S.No Item

Description

Remarks

1

Introduction

-

2

Examples

3

Output

The output determination component is used for output control. Output control is used to exchange information with internal and external partners. 5. Order Confirmations. 6. Delivery Notes 7. Invoices 8. Shipping Notifications etc. Output is a form of media from a business to one of its partners. Outputs are in the form of Order Confirmations, Delivery Notes, Invoices, and Shipping Notifications.

4

Output Type

5

Output Type – Control Features

5

Output Determination

6 7

Print Program Form

Output Type is a type of output and contains all the control features for the output. It is used for output determination. 1. Kind of Output 2. Business Transaction 3. Partner receiving the output 4. Media 5. Print Program 6. SAPScript Layout for formatting output

These are also called as Business Forms. Printouts, Faxes, Telexes, E-Mails, and Electronic data Interchange. -

Order Confirm. etc Sales Order etc. Sold-to Party etc. Fax, Email etc. -

Output Determination can be maintained Condition Technique generally as Originating from CMR, or as is preferred. Originating by using Condition Technique. A form in SAPSCRIPT is used for Page Elements : Header Layout. A form contains various elements Data, Paragraphs, for Layout control of Individual pages etc. Windows, Pages, Page Windows,

SAP SCRIPT FORM

S.No Item

Description

Remarks

1

Introduction

Sapscripts Forms are needed to print, distribute or display business forms.

2

Architecture

Sapscript form is a template which simplifies the process of designing the Business Forms. It supplies layout and contents for the Business Forms. Layout : The layout is defined by a set of windows.

3

Windows

4

Processing of SAPscript Form

Content : It is either text or graphics [Logo Architecture consists etc.]. of two components : Layout and Content. The central object of SAPscript form is SAPscript form Windows. Windows houses the form content. derives its structure We can define size, position and content of from a set of each window in a form. windows, each with its own content. SAPscript runtime environment : SAPscript runtime  Retrieves layout and content environment coordinates the data from SAPscript form processing of  Collects the necessary SAPscript form. business data from database  Generates the final SAPscript form. The resulting Business form can be printed, emailed, faxed or displayed.

OUTPUT TYPES

DESCRIPTION

PRINT PROGRAM

FORM

1

AF00

Inquiry

RVADOR01

RVORDER01

V05000

2

AN00

Quotation

RVADOR01

RVORDER01

V06000

3

BA00

Order Confirmation RVADOR01

RVORDER01

V10000

4

RD03

Cash Sales Invoice

RVADOR01

SD CASH SALE

V10001

5 6

LD00 PL00

Delivery Note Packing List

RVADDN01 SDPACKLI

RVDELNOTE SD_PACKING_LIST

V10000 V10000

7

RD00

Invoice

RVADIN01

RVINVOICE01

V10000

8

LR00

Invoice List

RVADIL01

SD_INVOICE_LIST

V30000

S.NO

OUTPUT PROCEDURE

REBATE REBATE

S.No Item 1

Rebate

2

Prerequisites for Rebate Processing

3

Rebate Agreement

4

Path [Master Data]

Description

Remarks

A Rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period Rebate agreements cane be processed only when the following prerequisite conditions are met i.e., activated for Rebate:  Sales Organization  Payer  Billing type (invoice, credit memo etc)

It is an Agreement between the Customer and the company.

A rebate agreement usually consists of a number of individual agreements in the form of condition records. records. A rebate agreement and the condition records it contains are uniquely identified by a rebate agreement number. number. Logistics → SD → Master Data → Rebate T – Code : VBO1 Arrangements → Rebate Arrangements → Create The general data that applies to all condition records within the rebate agreement are :

 Validity period  Status (for example, whether the

5

General Data in Reb. Agreement [VBO1]

agreement is released for settlement)  Rebate recipient (the party who

receives the credit memo)

 Currency (default from the sales

organization)  Method of payment (check, bank

transfer, and so on)

The credit memo passes this information on to Financial Accounting.

You can define the following data for each condition record in a rebate agreement: •

6

7

Data in Condition Records [VBO1]

Accruals

•

• • • •

Rebate accruals allow the accounting department to keep track of how much your company owes customers with whom you have rebate agreements. The rebate agreement type determines which data the system automatically proposes for the corresponding rebate agreement. For example, the system can propose : •

8

Rebate Agreement Type

Basis for the rebate (customer, customer/material, rebate group, and so on) Validity period (the validity period for each condition record must be the same as or lie within the validity period of the rebate agreement) Condition rate Material for settlement Accrual rate Other control data, such as the pricing scale type

• • •

Condition types we can use in an agreement Validity period the system automatically proposes for an agreement Status required before an agreement can be processed for payment. Rebate agreement types are defined in Customizing for Sales and Distribution.

IMG → SD → Billing → Rebate Processing → Rebate Agreements → Define Rebate Agreement Types CONTROL DATA OF REBATE AGREEMENT TYPES 9

Path for Configuration

Validity Periods & Default Status Text Determination

Payment Method

Man Payments - Payment Procedure - Partial Settlement -Reverse Accruals

Settlement - Final Settlement - Rebate Correction - Min. status

Rebate Agreement Type

Condition Type Group

Manual Accruals Verification Levels

STANDARD REBATE AGREEMENT TYPES S.No

Agreement Basis of type

rebate

01

0001

02

0001

Customer/material (% rebate) Customer/rebate group (% rebate)

Condition Remarks Type

BO01 BO01

Pricing Reference Material : It is the material which when entered in Pricing Reference field in MMR Sales Org. view copies all the conditions to other materials. Volume Rebate Group : A rebate group consists of materials to which same rebate is applied. A material is assigned to a rebate group in the material master record Sales Org. view, Rebate Group field. In the condition record Material for

settlement is used. 03

04

0002

0003

05

0004

06

0004

07

0005

S.No 01

02

03 04 05

Customer/material (quantity dependent) Customer (% rebate) Customer hierarchy (% rebate) Cust. hierarchy/material (% rebate) Sales volume independent

BO02

-

BO03

Material for Settlement : When the basis for Rebate is customer, customer hierarchy or group of materials then “Material for Settlement” material is used for these agreements. This is a special material created only for this purpose

BO04

In the condition record Material for settlement is used.

BO05

-

BO06

-

Configuration at IMG level [SD/Billing/Rebate Processing] Configuration Description Examples/ Remarks Activating Rebate is activated for Sales Organization, Ex : B1, F2, G2 etc Rebate CMR and the relevent Billing Documets. for Billing Processing Documents. Define Condition Type Group, a grouping Ex – 0001 – Reb. of Cond. Types for Rebate [4 digit alpha- Grp. Defining num. key]. 0002 – Condition Type Material Group 0003 Customer Condition Type Assign. Condition Type to Cond. Type Ex : B001 to 0001 assign. to Con. Group. Also assigned is the table B002 to 0002 Type Group represented by Sequence no. B003 to 0003 Assign Condition Assign Cond. Type Group to Rebate Ex – 0001 – 0001. Type Group To Agreement Type. 0002 – 0002 Rebate Agrmnt 0003 - 0003 Define Rebate Define Rebate agreement based on Group, 4 digit alphaAgreement Material, Customer etc. numeric key Verification Level can be set. To see Reb. details. Control Data Manual Accruals Order type is set [R4] Billing Type – B4 Payment Procedure is defined. Pay. upto accruals, etc Part. Bil. Type – B3 Manual Payment Partial Settlement Ord. Type. defined[R3] Switch on the reverse accruals indicator. Reverses man. Paymts. Settlement Final Setlment Ord. related Bill. Type – B1 Credit Memo Req – B1

Order Type for Rebate Correction – B2 Minimum Status for final settlement

01

Pricing Procedure/Account Determination Rebate Condition Types are assigned Condition Class – C [Exp. Reimbursement]. Rebate Condition Type Rebate Procedure indicates if the condition is dependent on Sales Volume.

02

Rebate Basis

03

Not Relevent for Sales Order

04

Account Keys

S.No

The Condition subtotal “SubTo” field should have value as 7 [for Rebate Basis]

Rebate Recipient

02

Validity Periods

03

Conditions

04

Matl. f Settl.

Access Seq. assigned. Ex : B002 for B002 Also, Accruals Correc. Procedure corrects accruals. Generally Net Value is used for Rebate Basis. Not Accessible in Sales.

To the rebate Condition Type requirement 024 is assigned which determines that it is accessed in Billing. Revenue Account Key - ERB Ex : For Reb. Accrual Account Key - ERU assigned to Condition the Reb. Cond. Type. Type – B002.

Note : Rebate Agreement in Easy Access [VBO1] Field Description

01

Reb. Cor– B2[Bill. Type] Ex : Agrmnt rel. for setl.

Examples/ Remarks Rebate Recipient could be Sold-to-party, System cannot Payer or Ship-to-party. determine Alt. payer. Rebate can be set to start from a past date. Past accruals not posted Mat., rate and accruals are maintained. Use Conditions button. Material for Settlement is generally used for A mat. is defined matl group rather than for a material. for credit Memo request.



RETURNS PROCESS IN SAP

RETURNS PROCESS

S.No

Item

01

Sales Returns

02

Returns Document Transaction Flow

03

Description

Remarks

Sales Returns is a process where in a customer sends the material back to the supplier, generally when the material is found to be defective. In SAP a Sales Returns Document is created either w.r.t Invoice or the actual Sales Order. Invoice / Sales Order → Returns Order → Returns Delivery → Post Goods Receipt [PGR].

DOCUMENT TYPE SETTINGS – IMG S.No 01

Settings Path

02 03 04

Transaction Code Standard Document Type Table SD Document Category Transaction Group Screen Sequence Group Incompletion Procedure RE Delivery Type Settings Delivery Related Billing Type Order Related Billing Type Billing Block Propose Delivery Date

05

Details IMG → SD → Sales → Sales Documents → Sales Document Header → Define Sales Document Type VOV8 RE –Returns Sales Document TVAK : Document Type – AUART [Field] H - Returns 0 - Order RE – Returns 14 – Credit Memo LR – Returns Delivery RE – Credit for Returns RE – Credit for Returns 08 – Check Credit Memo Activated

S.No Settings Path 01 02 03 04

05

Transaction Code Standard Item Category Table Pricing Billing Returns Credit Schedule REN Lines Settings Wt/Vol Determine Cost Business Item

ITEM CATEGORY – IMG Details IMG → SD → Sales → Sales Documents → Sales Document Item → Define Item Categories VOV7 REN – Returns Item Category TVAP : Item Category – PSTYV [Field] X – Pricing Standard B – Order related Billing, status according to order quantity. Activated De-activated Activated Activated Activated De-activated

SCHEDULE LINE CATEGORY - IMG S.No 01 02 03 04

05

Settings Path Transaction Code Standard Schedule Line Category Table Movement Type Item Rel. DN for Settings Delivery Incomp. Procedure

Details IMG → SD → Sales → Sales Documents → Schedule Lines → Define Schedule Line Categories VOV6 DN – Returns Item Category TVEP : Schedule Line Category – ETTYP [Field] 651 – Goods Return Delivery. This will enable the stock value and quantity to go up in Inventory Accounting. Activated 30 – Delivery Relevant Schedule Line



THIRD PARTY ORDER THIRD PARTY ORDER

S.No

Item

Description

1

Scenario

2

Examples

3

Third Party Order

4

Third Party Order Process

Some businesses will have subcontractors who manufacture on their behalf and supply them to the customers directly, though the order is placed on the business. 9. HLL has a few companies which manufacture its products and deliver to its customers directly. 10. Trading Goods can be allowed for delivery directly to the customer of a company. In a Third Party Order process Customer places Order on Company but the material will be supplied by a Third Party Vendor directly to the customer. System creates a Purchase Requisition during Sales Order Processing, which is used by Purchasing in creating a PO. Based on this PO material is supplied by a third party Vendor to the customer directly.

Remarks

SD Module

Sales Order

For viewing Purchase Requisition Number go to VA02/VA03 – Schedule Line, Procurement.

Cust. Inv. Cust : 1000

Cust : 1000 Item Qty Mat A 10

Eventually Invoice is raised by the business and sent to the Customer.

Item Qty Mat A 10

Item Cat. TAS

MM Module Pur. Req. Cust :1000 Item Qty Mat A 10

Pur. Ord.

Goods. Rcp.

Inv. Ver.

Vend :ABC

Vend :ABC

Vend :ABC

Item Qty Mat A 10

Item Qty Mat A 10

Item Qty Mat A 10

5

Item Category Group Schedule Line Category Purchase Order

6 7

Item Category Group in MMR Sales Org 2 is BANS [Standard]. SAP standard schedule line category is CS. A purchase order can be created with reference to a Purchase requisition [TCode : ME21N].

BANS determines Item Category as TAS.

The PO number can be seen in the document flow of Sales Order.

Note : 1. If the material is delivered to company and not to customer then it is called Individual Purchase Order [IPO]. 2. For IPO: i. Item Category Group [MMR] – BANC ii. MRP Group - 020 iii. Item Category – TAB iv. Schedule Line Category - CB

Sales Order

For IPO Process Flow is as follows: SD Module Delivery & PGI. Trnsfr Ord.

Cust : 1000

Cust : 1000

Item Qty Mat A 10

Item Qty Mat A 10

Cust. Inv.

Cust : 1000

Cust : 1000

Item Qty Mat A 10

Item Qty Mat A 10

MM Module Pur. Req. Cust :1000 Item Qty Mat A 10

Pur. Ord.

Goods. Rcp.

Inv. Ver.

Vend :ABC

Vend :ABC

Vend :ABC

Item Qty Mat A 10

Item Qty Mat A 10

Item Qty Mat A 10

ITEM CATEGORY SETTINGS S. No 1

Trans TPO

Item Categ

Spec. Stock

Pric.

Bill.

TAS

-

X

F

Bus. Item 

Schd. Lines 

Retur n -

Wt / Vol. 

Credt 

Cost  -

Creat PO Auto. -

     TAB E X A IPO Note : 1. Path - IMG → SD → Sales Documents → Sales Document Item → Define Item Category. 2. Table - TVAP 11. For TPO Billing F stands for Order related billing document , status according to invoice quantity. It could be B – relevant for Order related billing, status according to order quantity. 2

SCHEDULE LINE CATEGORY SETTINGS Schedule Item Descripti Movemen Rel. for Order Acc Av Line Catego on t Type Delvry Type Ass Ch. Category ry 1 TPO CS Leg 1 NB 5 2 IPO CB IPO E NB 0 Note : 1. Path - IMG → SD → Sales Documents → Schedule Lines → Define Schedule Line Category. 2. Table - TVEP S.No

Process

TOR -

THIRD PARTY ORDER IN EASY ACCESS S.No Configuration Description Examples/ Remarks Item Category Group BANS in sales 2 screen Item Category TAS is 01 Automatic of MMR specifies material as third-party Item determined in Sales Order processing For the material which is also procured from Item Category Group is 02 Manual outside, change TAN to TAS in Sales Order NORM. manually. Purchase For each item in the Sales Order system Purchase Requisition is 03 Requisition & generates a Purchase Requisition [and PO] generated for each Vendor and also a vendor automatically. schedule line.

03

Automatic Delivery Scheduling

05

Address of Shipto-Party

06

Purchase Order Text

07

Changes in PO

System takes into account lead times Time for processing specified by Purchase department. third party items + time required by vendor. Address of Ship-to-party changed in the Sales Order is copied into the Purchase Requisition directly. For each Third Party item text entered is copied into the PO. Changes made in PO are automatically copied onto the Sales Order.

Changing a Third Party Order If there are no POs, then only changes to When there is 08 quantity or delivery data can be made. no PO 09

When there is a PO

If a PO already exists, then the changes made on Sales Order are to be copied to

Address data cannot be changed in PO. PO number appears in the document flow. Ex : Confirmed quantities, delivery dates etc.

This copied automat. to Pur. Req if permitted by release status. Changes in PO are copied automatically to

PO manually only. Deleting a Third Party Order When there are If there are any POs related to third party 10 POs order they have to be deleted first. BILLING - THIRD PARTY ORDER S.No Configuration

01

Item Category

02

Copy Control

Description

Sales Order. Otherwise customer still will receive goods.

Examples/ Remarks

If relevance for billing is set for “B”, then third-party item is considered to be completely billed if invoiced qty is equal to sales order item qty. If relevance for billing is set for “F”, then each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be completely billed until the next vendor invoice is received. Copy Quantity - F If Billing Relevance is F[Item Cat.] Copy Quantity – E or I If Billing Relevance is B[Item Cat.] [Billing after Order or MIGO]



Transfer of Requirements

S.No 01 02 03 04

05 06

S.No 01 02

Configuration at IMG level [Basic Functions/TOR] Configuration Description Examples/ Remarks Requirement Define requirement Class and switch on Ex : Order /Del. Class TOR and Availability Check etc. Requirment[041]. Requirement Define Requirement Type and assign Ex : 041 created and Type Requirement Class. assigned to Req. Class. Det. of Req. Item Category + MRP Type = Ex : TAN + PD = 041 Type Requirement Type. Schedule Line Switch on TOR at Schedule Line Effective only when Category Category. TOR is switched on at Requirement Class level. Quantity Maintain Blocking reasons, define Qty transfered but not Confirmation delivery blocks and duration. resrvd. Requirement Certain requirements have to be fulfilled Ex : Stand. Req 101 – Fulfillment for TOR to happen. For Cr. Block, No PO. Important Settings in Easy Access Configuration Description Examples/ Remarks Availability Mention the checking group in the Ex : 01 – Col. Req. Check Availability Check field of Sales/plant 02 - Ind. Req. veiw of MMR. etc. Delivering Plant Mention delivering plant for the line item in the sales order.

S.No 01

Item Special Stock

02

Avail. Over. [CO09] Strategy Group

03

Important Points Description Even when the special stock is indicated as Coll. Req. in MMR system transfers them as individual requirements For Ind. Req. CO09 shows quantity, doc. no. item no and requirement class. Requirement Type and eventually requirement Class are determined in Strategy Group of MMR, MRP3 view.

Examples/ Remarks Ex : Consignment, Ret. packaging, Make-to order etc. Ind. Req. can also be seen in MD04. Seq. for Req Typ Det : Strat. Group > MRP Gr. > Mat. Type

04

Planning Material

05

Consumption Mode

Similar materials can be assigned [MRP TOR cannot be 3] to Planning Material & Ind. req. can performed for be created for this material. Planning material. Defines whether and in which direction Ex : 1. No. Pln. Cons. on the time axis from requirements date 2. Forward cons. the consumption of cust. Req. occurs 3. Backwrd cons. with planned independent requirements. Etc.

AVAILABILITY CHECK

S.No 01 02 03 04

01 02

03 04

S.No

Configuration at IMG level [Basic Functions/TOR & Av. Ch] Configuration Description Examples/ Remarks Checking Define Checking Group and specify Ex : 01 for Coll. Req. Group whether check to be carried out and set 02 for Ind. Req. for Individual/Collective requirements. etc. Requirement Switch on Availability Check for the Ex – For Requirement Class Requirement Class. Class 041. Schedule Line Switch on Availability Check at Ex : For CP, C1 etc. Category Schedule Line Category level. Control for Assign Checking Rule to Checking Checking Rules are Availability Group and define the scope of predefined in SD. Check Availability Check. The scope includes Ex : A for SD Order various stock [safety, transfer etc], B for SD Delivery Inward/Outward movements, RLT etc. etc. Other Settings Default Value Checking Group set for [Material Type Ex : FERT + Plant1000 + Plant ] as default value. Used only if = Ch. Gr. 01. not mentioned in MMR. Material Block Block indicator can be activated if A –Order, B – Delivery others have to be blocked from carrying Note, C-Reservation. out Av. Ch while it is being checked. These initiators cannot be changed. Item Category Availability Check can be activated or Ex : REN can be deactivated at Item Category level. switched off. System Based on Sales Area, system responses Ex : A dialog box for Responses can be set in Av. Ch. Rule, should there selecting one time / be no/insufficient stock[after Av. Ch]. complete / delevery proposal. Configuration

Important Settings in Easy Access Description

Examples/ Remarks

01 02

S.No 01 02

Availability Check

Mention the checking group in 01 – Col. Req. Availability Check field of MRP 3 veiw 02 - Ind. Req. of MMR.. etc. Delivering Plant Mention delivering plant for the line item in the sales order. Item Against Product Allocation Against Planning

Other Availability Checks Description Availability Check against Product Allocation allows a predefined distribution quantity of products to customers. The check is not against sales orders but the quantities are produced in line with expected sales quantities [ind. of orders].

Intercompany Business Processing Use Intercompany business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code. The following intercompany business transactions are possible: •

Intercompany sales processing A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.

•

Intercompany stock transfer A purchasing organization which is assigned to the ordering company code creates a purchase order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.

Because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an intercompany billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.

Working with Intercompany Sales Processing Intercompany sales processing consists of the following three stages: • • •

Processing sales orders Processing deliveries Billing

The sales organization and the plant are assigned to different company codes and have the following responsibilities:

Sales organization:

Processes the sales order Bills the customer

Plant:

Delivers goods to the customer Bills the ordering company code (sales organization) - this is intercompany billing. Intercompany billing uses SAP EDI to carry out posting to vendor account for the ordering company code.

Company Structure Company code

Sales organization

Plant

0001

0001

0001

0002

0002

Condition Record A condition record specifies that plant 0002 bills sales organization 0001 for goods at 80% of the net invoice value. Sales orders Sales organization 0001 receives the following sales order from customer XYZ: Item 10 Product A 20 pcs (Plant 0001) USD 200 Item 20 Product B 50 pcs (Plant 0002) USD 500 The second item requires intercompany sales processing, since product B must be delivered from a different company (company code 0002). Intercompany Sales Processing The intercompany sales functions are carried out as follows: o

Pricing for customer invoice: Sales organization 0001

o

delivery: Plant 0002

o

billing: Sales organization 0001 bills the customer for USD 500

Sales organization 0002 bills sales

organization 0001 for USD 400 (with an intercompany billing document) o

inancial accounting: In company code 0001, SAP EDI

is used to carry out posting to vendor account

Relationship to Pricing The system processes intercompany pricing elements in exactly the same way as other pricing elements. The data for intercompany sales is stored in condition records. Pricing for intercompany billing is controlled by condition types, pricing procedures, and access sequences. Intercompany billing itself is controlled in a separate menu point in Customizing. This control data is defined in Customizing for Sales by your system administrator.

Working with Intercompany Stock Transfer You can transfer stock from one plant to another where the plants belong to different companies (i.e. have different company codes). Since the plants belong to different company codes, the following points have to be considered from the sales point of view: • •

delivery: the procedure for delivering on the basis of a purchase order from another plant should be similar to delivering on the basis of a sales order from a customer billing: the delivering plant will be charging the receiving plant for the material.

To deal with these points, the stock transfer can be carried out with a normal purchase order type NB. The delivering plant can then create a delivery and an intercompany billing document on the basis of this purchase order. An incoming invoice with reference to the purchase order can be posted in the following ways: • •

Manually, after the invoice has been checked Automatically, with an internal billing document via SAP EDI

The following example outlines the procedure for intercompany stock transfer. Company Structure

Company code

Plant

City

0001

A

Atlanta

0002

B

Boston

Name Smith & Co.

Business Transaction Plant A orders 100 tons of "Steel-1" from plant B at a price of USD 10.00 per ton. 1. Plant A, company code 0001: The clerk responsible creates a normal purchase order (type NB) for the vendor Smith & Co. who is assigned to Plant B. The clerk can enter prices and delivery costs as usual. 2. Plant B, company code 0002: On receipt of the purchase order, the vendor Smith & Co. enters a delivery for 100 tons of "Steel-1". 3. When the material leaves the premises, the vendor Smith & Co. posts goods issue. The values and the quantity are not yet posted in the receiving plant (Plant A). 4. Plant A, company code 0001: When the material arrives at Plant A, the clerk responsible posts goods receipt against the purchase order. The system now posts values and quantities in the receiving plant. 5. Plant B, company code 0002: On the basis of the delivery, the system creates a billing document (intercompany billing) amounting to USD 1000. 6. Plant A, company code 0001: In company code 0001, the incoming invoice can be posted in the following ways: o o

The receiving plant checks the invoice with reference to the purchase order and posts invoice receipt. Invoice entry is posted with an internal billing document via SAP EDI.

Working with Intercompany Deliveries Depending on the intercompany business transaction, the goods are delivered as follows: when

where to

for intercompany

to the customer

sales processing

for intercompany

to the plant assigned to the

stock transfer

ordering company code

You process the delivery as usual, selecting a shipping point that is assigned to the delivering plant. Goods issue is carried out in the delivering plant. You can create the delivery just like any other delivery on the Shipping screen: •

for a single delivery with the menu path Delivery → Create. You can then enter the shipping point assigned to the delivery plant in the field Shipping Point.

•

for several deliveries with the menu path Delivery → Process dlv. due list. You can o o

select Settings → Organizational data to enter relevant sales area data as some of the selection criteria for your delivery due list. select Settings → Further sel. screen to enter further selections (such as the ship-to party or the material number).

If you are delivering to another plant on the basis of a purchase order (i.e. stock transfer): •

you cannot process a single delivery; i.e. you must process the delivery due list and mark the field Stock transport

•

you can enter the purchase order number by selecting Settings → Further sel. screen and use the field Purchase doc. from.

Shipping (LE-SHP) Implementation Options Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles. In shipping processing, all delivery procedure decisions can be made at the start of the process by • • •

Taking into account general business agreements with your customer Recording special material requests Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.

Integration The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.

Range of Functions The shipping module supports the following functions, which include but are not limited to: • • • • • • • • • • • •

Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance) Creating and processing outbound deliveries Planning and monitoring of worklists for shipping activities Monitoring material availability and processing outstanding orders Monitoring the warehouse's capacity situation Picking (with optional link to the Warehouse Management system) Packing deliveries Information support for transportation planning Support of foreign trade requirements Printing and transmitting shipping documents Processing goods issue Controlling using overviews of o o o

Deliveries currently in process Activities that still are to be carried out Possible bottlenecks

A list of deliveries posted as goods issue in the shipping department could be used to form a worklist for the billing department.

Working with Intercompany Billing After goods issue has taken place, you can process the delivery for billing. You can create the billing documents just like any other billing document on the Billing screen: • •

for a single billing document with the menu path Billing document → Create. for several billing documents with the menu path Billing document → Billing due list. The delivery may have to be processed for billing twice.

•

The delivering plant processes the delivery to create an intercompany billing document (billing document type IV) for the selling company. This company code posts invoice entry for this billing document. The billing document is automatically billed to the internal payer that is assigned to the sales organization. The intercompany charges that appear in the intercompany billing

document represent the actual amount that the delivering plant is charging the sales organization. •

If the selling company is selling the goods to a customer, it processes the delivery to create an invoice for this customer. The system can take the prices from the order or determine new prices. It takes the quantity to be invoiced from the delivery.

The billing due list for the intercompany invoice is generated after the customer invoice has been created.

Prerequisites for Intercompany Business Processing Certain prerequisites must be met before you can process intercompany sales. The following data must be defined in Customizing for Sales by your system administrator: • •

If you need to use the intercompany billing document, billing type IV must be maintained and assigned to the relevant sales document types Output type RD04 is used to enable intercompany billing to carry out posting to vendor account or invoice entry. In the standard system, billing type IV is assigned to output procedure V40000, which contains this output type. For information on setting up intercompany billing, see the online Implementation Guide.

Billing type IG is used for internal credit memos. •

For condition records used in intercompany sales processing, one of the following condition types must be maintained: o o

• • • • •

PI01 (fixed amount per material unit) PI02 (percentage of the net invoice amount)

Permissible combinations of plant and sales organization must be defined Sales area data (sales organization, distribution channel, and division) must be assigned to each plant that participates in intercompany sales processing You must also create the following Sales master data: A customer master record for intercompany billing; this must be assigned to the ordering company code. Condition records for intercompany billing for every permissible combination of plant and sales organization.

Working with a Special Customer Master Record

A customer master record must be created to represent the ordering company. This is created in the sales organization representing the delivering plant. When you create the special customer master record, you define how billing is carried out. You can maintain billing-related data just like in any other customer master record. For example, you can specify the periods in which intercompany billing is to be carried out. If your intercompany business processing involves foreign currency conversion, you can control the exchange rate that the system applies. You control the exchange rate by entering a value in the Exchange rate type field in the Sales view of the customer master record. When a delivering plant invoices a sales organization, the plant can use one of the following condition types: • •

PI01 Intercompany: fixed amount per material unit PI02 Intercompany: percentage of the net invoice amount

These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice. The condition records you create and maintain for intercompany billing are the same kind of records that you create for pricing in general.

Create Condition Record for Intercompany Processing To create a condition record for one of the two condition types associated with intercompany business processing, proceed as follows:

1. In the SD Master Data Screen select, Conditions → Selection using condition type → Create.

The Create Condition Records screen appears.

2. Enter one of the following conditions in the Condition type field: – PI01 (intercompany price) – PI02 (intercompany %) 3. Choose ENTER. 4. Enter the following data: – The sales organization of the sales order (i.e. the ordering company) – The delivering plant – The material, if necessary

– The rate at which the plant will charge the sales organization that processes the orders (percentage of net invoice value or fixed amount per sales unit of the material). 5. Save the condition record.

Working with Intercompany Sales Orders When you create a sales order, you specify the sales organization of the ordering company code. The system can propose a delivering plant from the following master records: • • •

Customer-material info Customer Material

The order of priority is as in the list above. To maintain the delivering plant information in the sales order, select one of the following: • •

for the whole sales order: Overview → Procurement for each item: Item → Business data

You can overwrite the proposed delivering plant or use a matchcode to list the alternative plants from which the material may be delivered. The system then checks to see if the combination of sales organization and delivering plant is allowed. If it is, you can proceed with the intercompany transaction. The system automatically carries out pricing using pricing master data from the sales organization. The intercompany charge appears in the pricing screen of the sales order as a statistical value (the charge has no effect on the final value of the sales order for the customer). Since the intercompany charge is of internal interest only, this pricing element is not printed out on documents for the customer.

Stock Transfer Using Stock Transport Order Use A number of procedures are available to enable you to transfer materials from one plant to another: • • • • •

Stock Transfer Between Plants in One Step Stock Transfer Between Plants in Two Steps Stock Transport Order Without Delivery Stock Transport Order with Delivery via Shipping Stock Transport Order with Delivery and Billing Document/Invoice

Features Advantages of the Stock Transport Order The transfer of stock using a stock transport order has the following advantages over the transfer of stock without a stock transport order: • • • • • • •

A goods receipt can be planned in the receiving plant. You can enter a vendor (transport vendor) in the stock transport order. Delivery costs can be entered in the stock transport order. The stock transfer order is part of MRP: Purchase requisitions that were created in MRP can be converted into stock transport orders. The goods issue can be entered using a delivery via Shipping (LE-SHP). The goods receipt can be posted directly to consumption. The entire process can be monitored via the purchase order history.

Characteristics of the Various Stock Transfer Procedures The following table lists the characteristics of the individual procedures used for stock transfer. Plant to plant Plant to plant St. trnsp. ord. St. trnsp. ord. St. trnsp. ord. 1 step 2 steps w/o SD with SD with billing Order type MM-PUR

-

-

Movement type MM-IM

Transfer postg. GI: 303 using 301 GR: 305

UB

UB

NB

GI: 351 GR: 101

GI: 641 GR: 101

GI: 643 GR: 101

Delivery type SD -

-

-

NL

NLCC

Billing type SD

-

-

-

-

IV

Doc. type MM-IV

-

-

-

-

RE

Price

Valuation price Valuation price Valuation price Valuation price Pricing in SD

and MM Planning via...

Reservation

-

Purchase order

Purchase order

Purchase order

Stock after GI

-

Stock in transfer

Stock in Transit

Stock in Transit

(Stock in transit CC)

Delivery costs

-

-

yes

yes

yes

Cross-company- Company code Company code Company code Company code Revenue code via... clearing clearing clearing clearing account; GR/IR clearing You can find an overview of all the movement types in the Implementation Guide (IMG) for Inventory Management in the step Copy/Change Movement Types.

Activities Goods Issue in Inventory Management or in Shipping You can enter a goods issue for the stock transport order in either Inventory Management (MMIM) or Shipping (LE-SHP). For goods issues in Shipping, a replenishment delivery is created (see also Posting Goods Issue in Shipping). Prerequisites for Goods Issues in Shipping: To process the goods issue via Shipping, the following prerequisites must be fulfilled (see also Goods Movements via Shipping): • • • •

In Customizing for Purchasing, a delivery type must be assigned to the purchasing document type. If the document type does not have a delivery type, you can post the goods issue only in Inventory Management. The customer number of the receiving plant must also be maintained in Customizing for Purchasing. In the Customizing system of Sales & Distribution, the shipping point determination must be maintained. In the material master record, shipping data must be maintained.

If the document type contains a delivery type but another requirement is missing (for example, shipping data), you receive either a warning message or an error message (depending on the system configuration) when you try to enter the stock transport order. If you receive a warning message, you can create the stock transport order, but you can post the goods issue for this item only in Inventory Management.

Stock Transfer Using the Stock Determination Function If you want to withdraw material for stock transfers from various storage locations and stocks according to a particular strategy, the R/3 System can support you using Stock Determination.

Stock Transfer Between Plants in One Step

Use This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor Purchasing in the receiving plant is involved in the process. Transferring stock in one step has the following characteristics: • • • • •

The stock transfer is entered as a transfer posting in Inventory Management. The transfer posting can be planned by creating a reservation. The quantity of the stock transferred is posted immediately from the unrestricted-use stock of the issuing plant to the unrestricted-use stock of the receiving plant The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents for the transfer posting. The stock posting is offset against a company code clearing account.

Stock Transfer Between Plants in Two Steps Use This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor Purchasing in the receiving plant is involved in the process. The stock transfer includes the following processes: 1. A goods issue in the issuing plant 2. A goods receipt in the receiving plant Transferring stock in two steps has the following characteristics: • •

The transfer posting cannot be planned by creating a reservation. The quantity posted from stock is first of all managed as stock in transfer in the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. This enables the quantity "on the road" to be monitored.

• •

The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Stock Transport Order Without Delivery Purpose

This type of stock transfer not only involves Inventory Management but Purchasing in the receiving plant. The goods issue posting in Inventory Management is carried out without the involvement of SD.

Characteristics of a Stock Transfer Order •

The quantity posted from stock is first of all managed as stock in transit of the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. This enables the quantity "on the road" to be monitored.

• • •

Delivery costs can be entered in the stock transport order. The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Process Flow 1. Creating a stock transport order in the receiving plant Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement. 2. Posting a goods issue in the issuing plant Plant B supplies the goods to plant A. Plant B enters the goods issue for the stock transfer order. The goods are then posted to the stock in transit of the receiving plant. 3. Posting a goods receipt in the receiving plant Once the goods arrive in the receiving plant, the plant posts the goods receipt. The stock in transit is therefore reduced and the unrestricted-use stock increased. The goods receipt is entered with reference to the purchase order.

Stock Transport Order with Delivery via Shipping Purpose The following components are involved in this type of stock transfer: • • •

Purchasing (MM-PUR) in entering the order Shipping (LE-SHP) in making the delivery from the issuing plant Inventory Management (MM-IM) at goods receipt in the receiving plant

Characteristics of a Stock Transfer Order •

The quantity posted from stock is first of all managed as stock in transit of the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. This enables the quantity "on the road" to be monitored.

• • •

Delivery costs can be entered in the stock transport order. The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Process Flow 1. Creating a stock transport order in the receiving plant Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement. 2. Posting a delivery in the issuing plant Plant B supplies the goods to plant A. Plant B enters a replenishment delivery in Shipping. The goods are then posted to the stock in transit of the receiving plant. 3. Posting a goods receipt in the receiving plant Once the goods arrive in the receiving plant, the plant posts a goods receipt for the delivery. The stock in transit is therefore reduced and the unrestricted-use stock increased.

Stock Transport Order with Delivery and Billing Document/Invoice Purpose With this type of stock transfer, the transfer posting is not valuated at the valuation price of the material in the issuing plant, but is defined in both the issuing and receiving plants using conditions.

Stock transfers that include deliveries and billing documents/invoices are only possible between plants belonging to different company codes. If you want to carry out a cross-company-code stock transport order with delivery but without a billing document, you must set the Relevant for

Billing (data element FKREL) indicator in Customizing of the item type to "blank" (Not relevant for billing). The following applications are involved in this type of stock transfer: • • • • •

Purchasing (MM-PUR) in entering the order Shipping (LE-SHP) in making the delivery from the issuing plant Billing (SD-BIL) in creating the billing document for the delivery Inventory Management (MM-IM) at goods receipt in the receiving plant Invoice Verification (MM-IV) at invoice receipt in the receiving plant

Characteristics of a Stock Transfer Order •

•

The quantity posted from the stock of the issuing plant is managed neither in the issuing plant nor in the receiving plant. The quantity is first posted to the unrestricted-use stock of the receiving plant in the goods receipt posting. After the goods issue has been posted, the stock overview displays the quantity transferred as Stock in trans. CC. This stock is determined dynamically for stock balance display. With this transfer posting, price determination is carried out in both Purchasing and Sales & Distribution (SD). o o

• •

In Purchasing, the price of the material in question is determined in the usual manner (from the info record, for example). In SD, pricing is also carried out as normal during the billing process.

The goods movements are valuated at the price determined in each case. Accounting documents are created for the following transactions: o o o o

Goods issue Goods receipt Billing Invoice receipt

Stock Transport Order with Valuated and Non-Valuated Sales Order Stock When entering goods issues for cross-company-code stock transport orders, you can work with both valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you determine the stock from which material is to be withdrawn by selecting the Dependent requirements indicator for individual and collective requirements. There are three options: •

Indicator set to Blank (individual and collective requirements): Material is removed from sales order stock

•

Indicator set to 1 (individual requirements only): Material is removed from sales order stock

•

Indicator set to 2 (collective requirements only): Material is removed from unrestricteduse standard stock

Process Flow 1. Creating a stock transport order in the receiving plant Purchasing also determines the price for the materials. 2. Posting a delivery in the issuing plant The issuing plant enters a replenishment delivery in Sales and Distribution. Unlike a stock transfer without a billing document, no stock in transit is created. 3. Creating a billing document in the issuing plant The issuing plant creates the billing document for the delivery. SD also determines the price for the delivery 4. Posting a goods receipt in the receiving plant The receiving plant posts a goods receipt for the delivery. The goods are posted to unrestricted-use stock 5. Posting an invoice in the receiving plant The invoice referring to the billing document is entered in the receiving plant.

.

Stock Transfer in Purchasing

Use In Purchasing, you can request and monitor a stock transfer with a: • • •

Stock transfer order Purchase requisition Scheduling agreement

When a stock transfer involves two company codes and the issuing of a bill, you do not create a stock transport order but a standard purchase order (see also Cross-Company Stock Transfer).

Activities Creating a Stock Transfer Order From the Purchasing menu, choose Purchase Order → Create → Vendor/Supplying Plant Known. Choose order type Stock transfer order. The item category must be U (stock transfer). Maintain the data for all items as required and save the stock transfer order. In Materials Planning, the stock transport order is taken into account for both the receiving and the issuing plant.

If the material is not valuated in the receiving plant, it is not possible to enter an account assignment. Therefore, the material can only be ordered for the warehouse.

Creating a Purchase Requisition for a Stock Transfer You can request a stock transfer in a purchase requisition. From the Purchasing menu, select Requisition → Create. Maintain data as required. A stock transfer order is created from the saved stock transfer requisition once it has been released.

Creating a Stock Transport Scheduling Agreement When you create a stock transport scheduling agreement, you can schedule the exact delivery dates for a stock transfer. From the Purchasing menu, select Outline Agreement → Scheduling Agreement → Create → Stock Transport Scheduling Agreement. Maintain data as required. The agreement type LU is defined in the standard system. The item category must be U. Enter the runtime end: Save the scheduling agreement. Enter the delivery schedule for the scheduling agreement by choosing Outline Agreement → Scheduling Agreement → Delivery Schedule → Maintain.

Goods Issue for a Stock Transport Order Use You can either post the goods issue for a stock transport order in Inventory Management or in SD Shipping, depending on your system configuration. (Also refer to Stock Transfer Using a Stock Transport Order). When the stock transfer involves two different company codes and a bill is issued, you have to post the goods issue in Shipping.

Posting a Goods Issue in Inventory Management Use If you post the goods issue in Inventory Management, you subsequently enter the goods receipt with reference to the stock transport order.

Activities From the Inventory Management menu, choose Goods movement → Transfer posting. Enter the data as required, entering the issuing plant and the issuing storage location as default values for the individual items. Choose movement type 351 (goods issue for a stock transport order).

Results of a Goods Issue The goods issue posting results in the following: •

Documents The system creates a material document for the movement. If the plants belong to different valuation areas, an accounting document is created in addition to the material document.

•

Change involving stocks The quantity is debited from the issuing plant in the receiving plant, the quantity is entered into stock (not into the unrestricted-use stock but the stock in transit on plant level). A receiving storage location has not yet been specified.

•

Purchase order history When you post a goods issue, the system automatically creates an order history record.

Posting a Goods Issue in Shipping Use If you process the goods issue via a replenishment delivery in Shipping (LE-SHP), you can then refer to the replenishment delivery or the stock transfer order at goods receipt.

Procedure 1. From the shipping menu, choose Delivery → Process delivery due list. The initial screen is displayed.

2. Enter the data required. Select Purchase order as Documents to be selected. 3. Choose Delivery → Display delivery due list. A basic list is displayed from which you can 4. 5.

select the deliveries to be processed. The list only contains order items that contain shipping data. Choose Delivery → Save. The system creates a replenishment delivery for the selected orders. A log of the deliveries created can be displayed. When you choose the function Delivery → Change, you can enter the picking and post the goods issue.

Processing in the issuing plant is complete when the goods issue is posted.

Result A replenishment delivery has the same effects as a goods issue in Inventory Management (see Effects of a Goods Issue Posting).

The quantity is debited from the issuing plant. In the receiving plant, the quantity is entered into stock (not into the unrestricted-use stock but the stock in transit on plant level). A receiving storage location has not yet been specified. The system automatically creates an order history record for the replenishment delivery and for the subsequent goods issue posting.

Displaying Stock in Transit The stock in transit is the quantity of a material that was withdrawn from the stock of the issuing plant but has not yet arrived at the receiving plant. You can display the stock in transit using the following functions. • •

Stock overview Plant stock availability list

Displaying Transit Stock in the Stock Overview You can display the stock in transit in the stock overview of a material.

1. From the Inventory Management menu, choose Environment → Stock → Stock overview. 2. Enter your selection criteria (for example, the material and receiving plant). 3. Carry out the evaluation. A stock overview of your selected plants is displayed. 4. Select a plant. The stocks in the plant are displayed in a pop-up window. Scroll down until the stock in transit is displayed. Displaying Transit Stock in the Plant Stock Availability List The transit stock for the receiving plant is also displayed in the plant stock availability list for a material. To do this, proceed as follows:

1. From the Inventory Management menu, choose Environment → Stock → Plant stock availability. The initial screen for this function appears. 2. Enter the material and the receiving plant. 3. Enter the scope of list (for example, DD). 4. Carry out the evaluation. A list of the plant stock availability for the material is displayed. This list also includes the stock in transit. In the case of inter-company-code stock transport orders with SD billing documents, the system does not create a stock in transit. For stock balance display, the posted quantity is calculated dynamically and displayed in the field Stock in trans. CC.

Posting a Goods Receipt for a Stock Transport Order

Use If you posted the goods issue in Inventory Management, you post the goods receipt in the receiving plant with reference to the stock transport order. If you posted the goods issue in the Shipping component (LE-SHP), you can post the goods receipt with reference to the stock transport order or the replenishment delivery.

Activities Posting a Goods Receipt for Stock Transport Order You enter a goods receipt for the stock transport order in the same way as a goods receipt for a standard purchase order. However, it is not possible to post the goods receipt into goods receipt blocked stock since the stock in transit has already been valuated.

Posting a Goods Receipt for Replenishment Delivery You enter a goods receipt for the replenishment delivery in the same way as a goods receipt for an unknown purchase order.

Results of the Goods Receipt Placement into storage results in the following in the system: •

Documents The R/3 system creates a material document for the movement. (The system does not create an accounting document because it is a transfer posting within the plant.)

•

Change in stock in the receiving plant The quantity is transferred from the transit stock to the unrestricted-use stock in the receiving storage location. The open purchase order quantity is also reduced with the stock placement.

•

Purchase order history At goods receipt posting, a purchase order history record is created automatically.

•

Document Flow At goods receipt for a delivery, the goods receipt in the receiving plant is documented in the SD document flow, based on the material document.

Cross-Company Stock Transfer Use

Even when the plants involved in a stock transfer belong to different company codes, you can use conventional methods to transfer the stock: • • •

By transferring the stock between plants in one or two steps By carrying out a stock transport order without the delivery function via Shipping By carrying out a stock transport order with the delivery function via Shipping

In these cases, the value of the transfer posting is posted to a company code clearing account in both the issuing and the receiving plants. The stock transfer is posted at the valuation price of the material in the issuing plant.

Features Stock Transport Order with Delivery Via Shipping and Billing Document/Invoice You can carry out stock transfers with the delivery and billing function. In this procedure, the stock is transferred in the form of a sale between two plants.

Stock transfers that include deliveries and billing documents/invoices are only possible between plants belonging to different company codes. If you want to carry out a cross-company-code stock transport order with delivery but without a billing document, you must set the Relevant for Billing (data element FKREL) indicator in Customizing of the item type to "blank" (Not relevant for billing). When you use the delivery function in Shipping, the whole transaction - from the delivery through billing and invoice verification - is reflected in the system. The following Shipping functions are available for this: •

Delivery: For example, planning shipping activities, picking, packing

•

Billing: For example, price determination

Before you can use a stock transport order with the delivery function and a billing document, the plant must be assigned to a vendor. You maintain the vendor - plant assignment in the vendor master record. If a user enters a vendor when creating a stock transport order, the plant is automatically copied from the vendor master record. A stock transport order with delivery and billing is a mixture of a standard purchase order and a stock transport order: as in the standard purchase order, when items are entered (standard items

with no item category) price determination is carried out and shipping data established; as in the stock transport order, the transfer of stocks from one location to another is monitored. Stock Transport Order with Valuated and Non-Valuated Sales Order Stock When entering goods issues for cross-company-code stock transport orders, you can work with both valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you define from which stock material is to be withdrawn by selecting the Dependent requirements indicator for individual and collective requirements. There are three options: •

Indicator set to Blank (individual and collective requirements): material is removed from sales order stock

•

Indicator set to 1 (individual requirements only): material is removed from sales order stock

•

Indicator set to 2 (collective requirements only): material is removed from unrestricteduse standard stock

Prices In Purchasing, the price of the material in question is determined in the usual manner (from the info record, for example). In SD, pricing is also carried out as normal during the billing process. Your company has to maintain settings in the Customizing system determining whether stock transfers between two plants should be with or without billing. You can also determine whether individual users can carry out stock transfers, for example, with or without billing or in either of the two ways. If you choose Purchase Order → Create → Stock Transfer (i.e. a stock transport order without billing) and stock transfer with billing has been defined for the plants in Customizing, a message appears indicating that you should create a standard purchase order.

Making the Vendor - Plant Assignment To transfer stock with a bill being issued, a vendor master record has to be created for the issuing plant. You create the vendor master record in the same way as a standard vendor master record. To assign a vendor master record to the supplying plant, proceed as follows:

1. From the Purchasing menu, choose Master data → Vendor → Purchasing → Change. 2. Enter the vendor and the purchasing organization. Select Purchasing data and press ENTER . The purchasing data detail screen appears.

3. Choose Extras → Add. purchasing data. A window appears in which you can enter the plant. 4. Save your data.

Process for Stock Transport Orders that Include SD Deliveries and Billing Document The process for stock transport orders with SD delivery and billing document includes the following steps:

1. Creating a Purchase Order In the receiving plant, you create a standard purchase order for the vendor to which the issuing plant is assigned. To do this, choose Purchase order → Create → Vendor known. As a result of the vendor entered, the system recognizes that the purchase order is in fact a stock transport order with delivery and billing.

2. Creating Delivery and Billing Document The issuing plant enters a delivery for the stock transport order and a billing document. This is an intercompany billing document (billing type IV). Pricing takes place as normal. This intercompany billing document can be posted as an invoice for a purchase order via EDI using Idoc. It is then posted in Financial Accounting as a receivable in the supplying company code. When the material leaves the plant, the issuing plant posts a goods issue for the delivery, resulting in a reduction in stock in the issuing plant. The total stock remains the same in the receiving plant. Unlike a stock transport order without billing, no posting is made to the stock in transit. You can see from the purchase order history that the material is "on the road". The posted quantity is displayed in the stock overview of the receiving plant as Stock in transit CC.

3. Posting Goods Receipt When the goods arrive, the receiving plant posts a goods receipt for the purchase order. The unrestricted-use stock increases and an accounting document is created. 4. Posting Invoice Receipt The invoice is checked with reference to the purchase order.

Valuation of Stock Transfers The account movements that result from a cross-company-code stock transport order with billing document can be seen from the following example:

Plant 0002 orders 10 kg of a material from plant 0001. The following prices apply: • • •

Valuation price of material (plant 0001): 10 $/kg Price for intercompany billing (plant 0001): 12 $/kg Order price (plant 0002): 11 $/kg

The following postings are made for the individual transactions: Plant

Transaction

Value

Account

0001

Goods issue

100 -

Stock account

100 +

Change involving stocks

120 -

Sales revenue account

120 +

Customer account

110 -

GR/IR clearing

110 +

Stock account

120 -

Vendor account

110 +

GR/IR clearing

10 +

Price difference account or stock account

0001 0002 0002

Billing Goods receipt Invoice receipt

You can display the value of a material’s cross-company stock in transit. To do this, choose Environment → Stock → Stock in transit CC from the Inventory Management menu.