IMPLEM Sap Wm-pp

SAP ECC 6.00 August 2006 English

H84: Make-to-Stock (MTS) Production with Batch Management, Warehouse Management (WM) and Handling Unit Management (HUM) Scenario Business Process Procedures

SAP AG Dietmar-Hopp-Allee Dietmar-Hopp-Allee 16 69190 Walldorf  Germany

SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

Copyright © Copyright 2006 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for  technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other  product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational informational purposes only, without representation representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying accompanying such products and services, if any. Nothing herein should be construed as constituting an additional additional warranty.

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

Copyright © Copyright 2006 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for  technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other  product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational informational purposes only, without representation representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying accompanying such products and services, if any. Nothing herein should be construed as constituting an additional additional warranty.

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

Contents H84: Make-to-Stock (MTS) Production with Batch Management, WM & HUM..............................6 Purpose........................ ........................... ........................... ........................... ....................... ......6 Process Flow........................ ........................... ........................... .......................... ...................... 6 Organizational and Master Data ..............................................................................................10 Preliminary Steps.......................... ........................... ........................... .....................................12 Uploading the Evaluation Role.......................... ........................... ........................................12 Business Process Procedure......................... ........................... ........................... ........................13 Controlling.......................... ........................... ........................... ........................... .....................13 Costing Run .........................................................................................................................13 Sales Order Processing ..........................................................................................................16 Creating Customer Order....................... ........................... .......................... .........................16 Materials Requirement Planning ...................... .......................... ....................... .....................17 Checking Complete Planning for the Ordered Material.........................................................17 Material Requirements Planning at Plant Level.................................................................... 18 Purchasing....................... ........................... ........................... ........................... .......................19 Preparatory Steps........................ ........................... ........................... ........................... ........19 Creating Purchase Orders from the Stock/Requirement List................................................ 20 Manufacturing Parts Number Processing....................... ........................... ...........................23 Maintaining Delivery Schedule for Scheduling Agreement...................................................24 Posting the Goods Receipt ..................................................................................................24 Posting Goods Receipt to WM........................ ........................... ........................... ................26 Posting Goods Receipt and Following Lean WM ........................................ .........................29 Posting Goods Receipt for Material with Manufacturer Part Number ................................ ...30 Production Order Processing.......................... ........................... .......................... ....................31 Creating Production Orders.......................... ........................... ........................... ..................31 Scrap Treatment and Analysis........................ ........................... ........................... ................32 Releasing Production Orders for Semi-finished Products......................... ............................33 Picking Components with WM/PP interface and FIFO Strategy at Semi-Finished Goods Order Level ..........................................................................................................................35 Option 1: WM/PP Material Staging for Pick List Parts (Staging Indicator 1) .........................35 Option 2: WM/PP Material Staging for Crate Parts (Staging Indicator 2) ..............................37 Option 3: WM/PP Material Staging for Release Order Parts (Staging Indicator 3)...............40 Confirming Production Orders with Bar Code Scanner (Opt ional) for Semifinished Goods..43 Rework Order Process....................... ........................... ........................... ............................45 Analysis and Treatment of Bulk Materials........................... ........................... .......................46 Missing Part Management (Optional: with Workflow Integration).........................................49 Releasing Production Orders for Finished Products........................ ......................... ............51 Picking Components for Finished Products (IM – FIFO Strategy)........................................52 Confirming Production Orders with Barcode Scanner (Optional) for Finished Produc ts.......53 Handling Unit Management for Finished Products ..................................................................54 Initial Goods Receipt for Packaging Material........................................................................ 54 Option 1: Creating Handling Units at the End of Production....................... ..........................55 Option 2: Creating Handling Units Before Outbound Delivery.......................... ....................56 Creating Outbound Delivery ................................................................................................58 Picking Outbound Delivery (Assigning HU and Batch) ........................................................59 Posting Goods Issue.......................... .......................... ........................... ........................... ...60

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H84: MTS Production with Batch Management, WM and HUM

Checking Status of Outbound Delivery and History Check of HU......................... ................61 Billing Processing........................... ........................... ........................... ......................... ...........61 Creating Billing Document.................................................................................................... 61 Displaying Customer Line Items ..........................................................................................62 Cost Object Controlling in Discrete Manufacturing – Preliminary Costing................................63 Cost Object Controlling in Discrete Manufacturing – Simultaneous Costing............................66 Cost Object Controlling in Discrete Manufacturing – Period End Closing ................................67

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

H84: Make-to-Stock (MTS) Production with Batch Management, WM & HUM Purpose This scenario focuses on sales-order-independent production by MTS (make-to-stock) combined with a variety of logistic functions: Bulk material  Scrap processing  Missing parts management with workflow integration  Warehouse Management / Lean WM (with FIFO material consumption and manufacturer   part number processing

Process Flow •

Costing Run

You can use the costing run to process mass data. The purpose is to compute prices for the selected materials that are then updated in the material master records as the standard price. The standard price is used to valuate goods movements within the company. The price update consists of two steps, marking the computed price and then releasing it. Marking the price means setting it as the future price for the material; releasing it means making it the current standard price. Before you can carry out marking, you have to allow marking for the company code involved. •

Sales order processing with availability check

The system checks the incoming sales orders to determine whether the components are available. When doing so, both the available warehouse stock and the receipts from forecast planning are taken into account. Therefore, the system calculates the confirmed delivery date from the receipt date of the next (still unplanned) planned or production order. If a suitable receipt element is found, the sales order receives a confirmation date, and the order confirmation can be printed out. At the same time, the system compares the forecast details with the specific customer requirements. First of all, the system checks 40 days in the past, and then 20 days in the future to determine whether a planned independent requirement has not been allocated yet. •

Material Requirements Planning (MRP)

The daily MRP run generates replenishment elements at each low-level code. The system automatically generates purchase requisitions for purchased parts within the 3-month opening period for the planned order. The system uses planned orders to implement receipt elements, which are also required. In general, the system also creates planned orders for parts that will be produced internally. When the planned opening date has been reached, these planned orders are converted to production orders by the production planner. As a result, t he system reserves all of the required components. In the material master for all of the interface cards in this series, the planned opening date is set to 5 days. Some raw materials (panel = H84-1045, resistor = H84-1060, bulk material Glue / oil = H841070, and packing material H84-1080) are planned on a consumption basis. Since these parts are required for a variety of other boards and cards, large quantities of these materials are to be stored in the warehouse. Replenishment orders are triggered as soon as a specified reorder  point is reached. The stock issues are backflushed when the activity is confirmed. The service stock material (Hexagon Head Screw = H84-1010) is also planned on a consumption basis. •

Manufacturer Part Number Processing

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H84: MTS Production with Batch Management, WM and HUM

The process integrates manufacturer part number processing. The purchase order for one material (H84-1030) contains the valid manufacturer part numbers according the approved manufacturer parts list (AMPL) in message format for the communication with vendors (such as, for transmission as hardcopies or via EDI). This data is only displayed in the document. •

Procurement

Different types of procurement are shown: Procurement of stock material using purchase orders (PO); procurement with scheduling agreements is also integrated. Specific overdelivery and underdelivery tolerances are defined for the ordered goods. Full WM / Lean WM integration is also shown. During the goods receipt for some materials, a batch number (for example, H841020, H84-1030, H84-1045, or H84-1050) is automatically assigned. Batch classification can be used to enter the MPN information in the batch. •

Make-to-Stock Production / Production Order Processing

The production planner releases the production orders created on the release date and simultaneously prints the shop floor papers with a bar code. Production orders with missing parts are not usually released by the production planner. However, in exceptional cases, the production planner can also send orders with missing parts to the production and the planner  receives information as soon as the missing material comes in. This means that on goods receipt a workflow is triggered and the material is not posted to the warehouse but directly sent to the production line. The warehouse worker picks the production order in the parts warehouse based on the first in first out (FIFO) strategy. The WM/PP material staging interface is activated, allowing an adequate replenishment strategy for each component from the warehouse to the production supply areas (pick list component, crate part, or release order part). The principle behind WM/PP staging is that a WM transfer order is created and executed from any WM storage type to storage type 100 (production supply area). The goods issue is posted at a later stage (on confirmation of the production order) and is not part of the WM/PP interface. The staging method is defined in a control cycle for each material in a production supply area (staging indicator). The WMPP material staging can be customized with transfer requirements or WMPP deliveries. Both ways are possible for the different staging indicators. The following example uses the WMPP delivery for the staging indicator ‘pick list component’; for ‘crate parts’ and ‘release order parts’ transfer requirements are used. Both document types are a reference to create a WM transfer  order. A WM/P delivery can be used if, for example, the in-house logistic requires a delivery note for material movements (warehouse is not near by the production site). The warehouse worker uses the pick list to pick the components managed in the temporary warehouse (storage locations without WM relevance) for each order. The consumable material (hexagon head screw) is managed in the service stock at the work center. o

WM/PP material staging for pick list components Components of high value or very large components can be supplied to the production area with the staging indicator ‘pick list component (1)’. The replenishment quantity is defined by the quantity of the production order (quantity of reservation). The release of a production order creates an in-house delivery with the delivery type WMPP. The WMPP delivery is transformed to a WM transfer order to execute the material provision for the production order.

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o

H84: MTS Production with Batch Management, WM and HUM

WM/PP material staging for crate parts Components of low value or of small size (consumables) can be supplied to the production area with the staging indicator ‘Crate parts (2)’. This type of replenishment is a classical KANBAN processing. The replenishment quantity is defined in a control cycle for this type of  material. The control cycle determines the number of KANBAN containers circulating between the warehouse and the production supply areas. The release of a production has no impact of the replenishment point or quantity. After receiving an empty KANBAN container, the warehouse worker executes the transaction LP11 for the corresponding material. According to the definition in the control cycle, the system creates a transfer  requirement (TR) and a transfer order (TO). The creation of the WM documents is possible in one step with transaction LP11 (TR and TO) but also in two steps with transaction LP11 (to create the TR) then transaction LT04 (to create the TO).

o

WM/PP material staging for release order parts Components of medium value or of medium size can be supplied to the production area with the staging indicator ‘release order part (3)’. This type of replenishment is a mix between classical KANBAN processing and material staging with a pick list for a production order. The replenishment is triggered by executing transaction LP12. The transaction can be started for one material or for all release order parts in this production supply area. The system cumulates for each material the open quantities of production order reservations. On the other side the system checks the stock level of the storage bin in the production supply area (the storage bin in the production supply area is defined in the control cycle such as, PSA-RELORD in storage type 100). If t he stock level of the WM bin in the production supply area is lower than the required quantities of the reservations for the production orders, the system suggests the creation of a transfer requirement (TR). The warehouse worker can increase this quantity in order to remove a whole pallet from stock. If there are no open production order reservations for this type of staging material, the system does not suggest replenishment. On the other hand, the release of production orders has an impact of the replenishment point or quantity. Therefore the transaction LP12 should be executed regularly after releasing production orders to check the replenishment quantities. The creation of the WM documents is possible in one step with transaction LP11 (TR and TO) but also in two steps with transaction LP11 (to create the TR) then transaction LT04 (to create the TO).

•

Scrap Processing

At the beginning of production planning, the planned scrap quantity (component scrap, assembly scrap, and operation scrap) is considered. •

Rework for Subassembly

Subassembly (H84-1040 Circuit Board PCB 2L 8B 7.6): If not found to be OK in the quality check (the last operation of the standard routing), the operation routing set is triggered, and the process is executed to finish the rework process. •

Order Confirmations

A move ticket (German Laufkarte) for the production order is printed with a confirmation number  (bar code) at the same time as the shop floor papers. Processing is carried out in accordance with this information. Once the production process has been completed, the user confirms the activity. The material used is backflushed when the operation is confirmed.

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•

H84: MTS Production with Batch Management, WM and HUM

Handling Unit Management for Finished Product

Handling units for a finished product can be used in two ways: If you want to pack the finished goods with a constant quantity and a constant packing material just after the production order  process, you should use transaction COWBPACK (Pack for work order). In this step, you can create a handling unit by using a packaging instruction (which contains the packaging material), and at the same time you can post the goods receipt of the production order in the handling unit storage location YD05. If you do not pack the finished product directly after production because the quantities to be packed or to be delivered might vary, you can execute the packing process after you create the outbound delivery. In this case the dispatch worker can create handling units with the transaction HUPAST (free packing) according to the quantities of the delivery notes or to other customer  specific criteria (e.g. packaging material). •

Cost Object Controlling

Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the execution of company activities (such as internally manufactured materials) to those activities. Product cost by order enables you to analyze costs at the level of manufacturing orders, production orders, and process orders. In product cost by order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into the inventory.

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H84: MTS Production with Batch Management, WM and HUM

Organizational and Master Data The following organizational and master data is required in the scenario: Field Name

Value

Description

Controlling area

BP01

Best Practices

Company Code

BP01

Company Code BP01

Plant

BP01

Production Plant (Produktionswerk) BP01

Sales organization

BP01

Sales Org. BP01

Distribution channel

01

Direct Sales

Division

01

Product Division 01

Purchase organization

BP01

Purchase Org. BP01

Storage location

0010

Standard stock

0003

finished product (unpacked)

0004

raw material ( without WM )

0002

production

0005

Lean WM

0006

Component FullWM

YD05

Handing unit with

F01

Warehouse F01

L01

Warehouse L01 (Lean WM)

Material (finished good)

H84-1000

Interface Card

Material (semifinished goods)

H84-1040

Circuit Board

Material (packaging material)

H84-1080

Packing material for H84

Vendor

H8410

Vendor MTS 01

H8420

Vendor MTS 02

H8430

Vendor MTS 03

H8450

Vendor MTS 04

H8460

Vendor MTS 05

H8445

Vendor MTS 06

H8440

Ship-to-party – Supply Area PROD_MTS

H8490

Customer MTS

Warehouses

Customer 

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

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

MTSProd

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H84: MTS Production with Batch Management, WM and HUM

Preliminary Steps Uploading the Evaluation Role Use Before you can begin performing the steps described in the Business Process Procedure, you need to upload the evaluation role for this scenario and assign it to your user. An evaluation role enables you to comfortably access all t ransactions required for the business application testing. You have to install an evaluation role for each scenario. The following role is available: Technical name

Description

File name for upload

/SMB50/H84_05U

H84: MTS Production with Batch Management, WM and HUM

 _SMB50_H84_05U.SAP

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

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H84: MTS Production with Batch Management, WM and HUM

Business Process Procedure Controlling Costing Run Use The costing run allows you to cost multiple materials at the same time. It is used to cost materials based on planning data. You can use the costing run to process mass data. The purpose is to calculate prices for the selected materials. The price update, also in the costing run, consists of two steps, marking the price computed and then releasing it. The prices for the material are then updated in the material master records as the standard price, which is used to valuate goods movements within the company.

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

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Edit Costing Run

Transaction code

CK40N

On the Edit Costing Run  screen, make the following entries.

Field name

Description

User action and values

Costing run

Key, which identifies the costing run

Enter the costing run key (for example, 01_2005)

Costing run date

Current date

3.

Choose Create Costing run (F5).

4.

On the Create Costing Run screen, make the following entries: Field name

Description

User action and values

Costing run text

Text, which identifies the costing run

Enter text describing costing run key. (For example, costing run Jan. 2005, legal valuation)

Costing variant

YPC1

Costing version

01

Controlling Area

BP01

Company Code

BP01

Transfer Control

Comment

Comment

Adopted automatically from costing variant

Server Group 5.

Choose Enter .

6.

On the Dates tab page, enter today’s date in the Costing Date from field. The fields Costing  date to, Qty Structure date and Valuation Date should be taken as proposed.

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7. Save your entries. 8.

In the Create Cost Estimate section, choose Change Parameter in the Parameter column of  the Selection row.

9. Make the following entries: Field name

Description

User action and values

Comment

Material

Selection of  single materials or  an interval of  materials

H84-1000

If you have already created and released a cost estimate for one of these materials in the current period, for example, while running another scenario, exclude the material here to prevent error messages in the course of processing the costing run.

Low-level code Material type Plant

BP01

Select configured materials only

Do not set indicator 

Always recost material

Do not set indicator 

Background processing

Do not set indicator 

Print log

Do not set indicator  

10. Save your entries and choose Back . 11. Choose Execute in the row of Selection. 12. In the Create Cost Estimate section, choose Change Parameter , which is located in the Parameter column of the Struct. Explosion row. 13. Make the following entries: Field name

Description

User action and values

Background processing

Do not set indicator  

Print log

Do not set indicator  

Comment

14. Save your entries and choose Back . 15. Choose Execute in the row of Struct. Explosion. 16. In the Create Cost Estimate section, choose Change Parameter , which is located in the Parameter column of the Costing row.

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17. Make the following entries: Field name

Description

User action and values

Cost ests with errors only

Set the indicator if you have already executed the costing run once and now want to rerun only those cost estimates with errors

Do not set indicator 

Log per costing level

Set the indicator to generate a separate log for each costing level.

Do not set indicator 

Parallel processing

Do not set indicator  

Background processing

Do not set indicator  

Print log

Do not set indicator  

Comment

18. Save your entries and choose Back . 19. Choose Execute in the Costing row. 20. In the Create Cost Estimate section, choose Change Parameter in the Parameter column of  the Analysis row. 21. Make the following entries: Field name

Description

User action and values

Variant catalog for  program RKKBKAL2

The program provides different list variants for the analysis

Select SAP&11 and choose Enter .

Costing run

Select your costing run

Costing date

Select your costing date

Comment

22. Save your entries and choose Back . 23. Choose Execute in the Analysis row and then choose Back . 24. Confirm the Leave list dialog box. 25. Check the lock on the Edit Costing Run screen in the row Marking . If the lock is closed follow the next steps as described. 26. If the lock is open

you can go on with step 33.

27. On the Edit Costing Run screen, choose the icon in the column Authorization, line Marking . 28. On the Price Update: Organizational Measures screen, make the following entries: Field name

Description

User action and values

Posting Period

(current period)

Fiscal Year

(current year)

Comment

29. Choose Enter . 30. Double click the company code BP01, and select the costing variant YPC1. 31. Save your entries. 32. Choose Enter and then choose Back . 33. In the Create Cost Estimate section, choose Change Parameter , which is located in the Parameter column of the Marking row. 34. Make the following entries:

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Field name

Description

User action and values

Test run

Set this flag if you first want to have a test of  the marking without change any thing in the material master 

Do not set indicator 

With list output

Set indicator  

Parallel processing

Do not set indicator  

Background processing

Do not set indicator  

Comment

35. Save your entries and choose Back . 36. Choose Execute in the row of Marking . On the screen Price update: mark standard price you get a list of your materials that are now marked for the price update. 37. Choose Back  38. In the Create Cost Estimate section, choose Change Parameter , which is located in the Parameter column of the Release row. 39. Make the following entries: Field name

Description

User action and values

Test Run

Set this flag if you first want to have a test of  the marking without change any thing in the material master 

Do not set indicator 

With list output

Set indicator  

Parallel processing

Do not set indicator  

Background processing

Do not set indicator  

Comment

40. Save your entries and choose Back . 41. Choose Execute in the row of Release. On the screen Price update: release standard price you get a list of you materials that are now released. 42. Choose Exit to return to the SAP Easy Access screen.

Result The calculated standard price is used to valuate goods movements within the valuation area. The marking of the calculated price changes the field Planned price in the future on the material master view Costing 2 . The releasing of the calculated price changes the field Current planned   price on the material master view Costing 2 and the valuation of the material master. If a released material cost estimate exists for the material master in the current period, it is not possible to release a new cost estimate for the current period.

Sales Order Processing Creating Customer Order  Use The sales organization receives a customer order by telephone, fax or another  medium. You have to enter the customer order in the SAP system.

Procedure 1.

Access the activity using one of the following navigation options:

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2.

H84: MTS Production with Batch Management, WM and HUM

SAP role menu

Create Sales Order 

Transaction code

VA01

On the Create Sales Order: Initial Screen, make the following entries: Field name

Description

User Action and Values

Order Type

OR

Sales Organization

BP01

Distribution Channel

01

Division

01

Comment

3. Confirm your entries with Enter . 4.

On the Create Standard Order: Overview screen, make the following entries: Field name

Description

User Action and Values

Comment

Sold-to party

H8490

Purch. order no.

MTS enhancement

Customer order number  

Material

H84-1000

In the Items table

Order quantity

50

In the Items table

5. Confirm your entries with Enter . 6.

In the availability check, you can only confirm a subset of the requested quantity with the requested delivery date, the remaining quantity is shared according to the ATP quantities.

7.

In the Dely Proposal area, confirm the delay with the green checkmark.

8. Save your entries. 9.

Make a note of the order number ____________________ 

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

Result You have created a sales order.

Materials Requirement Planning Checking Complete Planning for the Ordered Material Use This step informs you about the MRP and how the customer order requirements are allocated.

Procedure 1.

Access the activity using one of the following navigation options: SAP role menu

Display Stock/Requirements Situation

Transaction code

MD04

2. Enter the following data: Field name

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Description

User Action and Values

Comment

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Material

H84-1000

Plant

BP01

Confirm entry with ENTER

Result You can see how the customer order requirements are allocated as well as the planning within the adjusted horizons.

Material Requirements Planning at Plant Level Use The aim of material requirements planning is to tailor available capacities and receipts on time to suit requirements quantities. You can use MRP or consumption-based planning for this purpose.

Prerequisites The finished product H84-1000 (Interface Card) is planned at plant level. There is now a requirement for the material H84-1000 in plant BP01. Single-item, multi-level requirement planning is carried out for plant BP01.

Procedure 1. Access the activity using one of the following navigation options: SAP role menu

MRP – Single-item, Multi-level -

Transaction code

MD02

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2. On the Single-Item,Multi-Level screen, enter the following data. Field name

Description

User Action and Values

Material

H84-1000

Plant

BP01

Comment

Scope of planning  Product group MRP control parameters Processing key

NETCH

Create purchase req.

1 (Purchase requisitions)

Delivery schedules

3 (Schedule lines)

Create MRP list

1 (MRP list)

Planning mode

3 (Delete and recreate planning data)

Scheduling

2 (Lead time scheduling and capacity planning)

Process control parameters Also plan unchanged components

Ω

(remove indicator)

Display results before they are saved

Ω

(remove indicator)

Display material list

Ω

(remove indicator)

Simulation mode

Ω

(remove indicator)

3. Confirm your entries with Enter . 4. Confirm the information message Please check input parameters. 5. Go back to the SAP Easy Access screen.

Result Requirements planning has been carried out.

Purchasing Preparatory Steps Use

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In this activity, you run the MRP for the materials H84-1010 and H84-1020 wit the MRP type VB at their own level. This manual step is performed at this point to enable the whole scenario running. In a real life business process, the MRP run for all VB materials should be defined to run periodically in the background.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

MRP – Single-item, Multi-level -

Transaction code

MD02

On the Single-Item, Multi-Level screen, enter the following data. Field name

Description

User Action and Values

Material

H84-1010 and H84-1020 separately

Plant

BP01

Comments

Scope of planning  Product group MRP control parameters Processing key

NETCH

Create purchase req.

1 (Purchase requisitions)

Delivery schedules

3 (Schedule lines)

Create MRP list

1 (MRP list)

Planning mode

3 (Delete and recreate planning data)

Scheduling

2 (Lead time scheduling and capacity planning)

Process control parameters Also plan unchanged components

Ω

(remove indicator)

Display results before they are saved

Ω

(remove indicator)

Display material list

Ω

(remove indicator)

Simulation mode

Ω

(remove indicator)

3. Confirm your entries with Enter . 4. Confirm the information message Please check input parameters. 5.

Go back to the SAP Easy Access screen.

Creating Purchase Orders from the Stock/Requirement List Use You want to display the stock/requirements for the material H84-1010 in the stock/requirements list.

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Prerequisites Requirement planning has been completed.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Display Stock/Requirements Situation

Transaction code

MD04

On the Stock/Requirements List: Initial Screen, make the following entries: Field name

Description

User Action and Values

Material

H84-1010

Plant

BP01

Comment

3. Confirm your entries with Enter . The BOM explosion during the MRP run has generated purchase requisitions for H84-1010. 4. Note the number of the MRP element PurRqs ________________. 5. Double-click the MRP element PurRqs. 6.

On the Additional Data for MRP Element screen choose purchase requisition to purchase order).

7.

On the Create Purchase Order screen, select the purchase requisition in the Document  overview section and choose Adopt .



Purchase order (Convert

8. Confirm the information message Can delivery date be met? (Realistic delivery date:  XX.XX.XXXX) with Enter . 9.

On the Delivery/Invoice tab page, enter the payment terms 0001.

10. Save your entries. 11. On the Stock/requirement List as of XX:XX Hrs choose Refresh. The above noted MRPElement PurRqs is now called POitem. Note the number of the MRP-Element POitem ___________________________ 

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Repeat the steps 1 to 10 for the materials H84-1020, H84-1030, H84-1045, H84-1046, H841047, H84-1048 and H84-1050. H84-1020 Note the number of the purchase order for material H841020:____________________________  H84-1030 Note the number of the purchase order for material H84-1030:  ____________________________  H84-1045 Note the number of the purchase order for material H84-1045:  ____________________________ 

Choose Enter to confirm the warning message Order quantity violates rounding  rules (See long text) Check if there are any rounding violations and change the order quantity manually. This results from the different units of measurement in the material master. The material is procured and handled in pieces but calculated in CM2 (sq cm). H84-1046 Note the number of the purchase order for material H84-1046:  ____________________________  H84-1047 Note the number of the purchase order for material H84-1047:  ____________________________ 

Change the order quantity to reach the minimum order quantity notified by the system message. H84-1048 Note the number of the purchase order for material H84-1048:  ____________________________  H84-1050 Note the number of the purchase order for material H84-1050:  ____________________________ 

Result The purchase requisitions have been converted to purchase orders.

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Manufacturing Parts Number Processing Use You want to display the manufacturing manufacturing parts numbers for the material H84-1030, H84-1030, which can be delivered by the distributor H8430. According to the Approved the  Approved Manufacturing Manufacturing Part List  (transaction: MP01), the electronic component H84-1030 can be procured from two different manufacturers. Both manufacturing parts correspond to the valid specification for the material H84-1030. The manufacturing parts number information can only be shown in the print preview of the purchase order and can be transferred to the distributor via print output, email, fax, or EDI.

Prerequisites The purchase order has been created.

Procedure 1. Access Access the activity activity using using one one of the follow following ing naviga navigation tion option options: s:

2.

SAP role menu

Purchase Orders by Material 

Transaction code

ME2M

On the Purchasing Documents for Material Screen, Material  Screen, enter the following data: Field name

Description

User Action and Values

Material

H84-1030

Plant

BP01

Purchasing Organization

BP01

Scope of List

BEST

Comment

3. Select Select the purchase purchase order order created created before before and choos choose e Print Preview . 4.

On the Print Preview you Preview you can see that for the transformer H84-1030 two manufacturing manufacturing part numbers are valid.

Ignore the missing tax information on this standard print layout. 5. Go back back to the the use userr men menu. u.

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Maintaining Delivery Schedule for Scheduling Agreement Use You want to display the schedule lines which are created during the MRP run f or the material H84-1060.

Procedure 1. Access Access the activity activity using using one one of the follow following ing naviga navigation tion option options: s:

2.

SAP role menu

Display Stock/Requirements Situation

Transaction code

MD04

On the Stock/Requirements Stock/Requirements List: Initial Screen, Screen, enter the following data: Field name

Description

User Action and Values

Material

H84-1060

Plant

BP01

Comment

3. Conf Confir irm m you yourr entr entrie ies s with with Enter . 4. Note Note the the numb number er of of the MRP MRP eleme element nt SchLne ________________. 5. Double Double-cl -click ick the MRP eleme element nt SchLne with the number noted above. 6.

In the Additional Data for MRP Element window Element window choose Display Element. The scheduling agreement schedule is displayed.

Result You have checked the schedule lines for the material H84-1060 which the BOM explosion has generated during the MRP run.

Posting the Goods Receipt Use In this activity, you post the incoming goods for the materials H84-1010, H84-1020 and H841060. Materials H84-1020 is handled in batches. During the goods receipt a batch number is assigned.

The batches for the materials H84-1020 and H84-1030 use batch classification Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process.

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Procedure 1. Access Access the activity activity using using one one of the follow following ing naviga navigation tion option options: s:

2.

SAP role menu

Post Goods Receipt for PO

Transaction code

MB01

On the Goods Receipt for Purchase Order: Initial Screen, Screen , make the following entries: Field name

Description

User Ac Action an and Values

Movement Type

101

Purchase Order 

xxxxxxxxxx

Plant

BP01

Comment Goods receipt Number of the purchase order  for the material H84-1040 as noted above

3. Conf Confir irm m you yourr entr entrie ies s with with Enter. In the Item Overview of Overview of the main window, choose the item you want to post and make the following entries: Field name

Description

User Action and Values

OK

Indicates that you want to post the goods movement for this item

Set indicator 

Stor.Loc.

Storage location

0004

Comment

4. Conf Confir irm m you yourr entr entrie ies s with with Enter. 5. Save your entries entries and and confirm confirm any any warnin warning g message messages s with Enter . 6.

Repeat steps 1 – 5 for material H84-1020, H84-1020, and execute execute the following procedure in addition: addition:

7. Confirm Confirm the pop-up pop-up window window with Automati Automatic c batch number number allocatio allocation n information information with with Enter . 8.

On the Goods Receipt for Purchase Order: Classification screen, make the following entry: Field name

Description

Posting date

GR posting date

User Action and Values

Comment

Enter goods arrival date

9. Save Save your your entr entrie ies. s. 10. Repeat steps 1 – 5 again again for material H84-1060, H84-1060, execute the following following procedure in additional.

Set the suggest ZeroLines indicator since the GR quantity for the scheduling agreement agreement is normally done partially. With material H84-1060, use the noted document number of the schedule agreement instead of a purchase order number.

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Posting Goods Receipt to WM Use In this activity, you post the incoming goods for materials H84-1045, H84-1047, and H84-1048. The material H84-1045 is handled in batches, during the goods receipt a batch number is assigned. You want to compare the stock situation for material in IM and WM. You also post the goods receipt to WM.

The batch for the material H84-1045 uses batch classification dependent on the posting date. Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process using the posting date as search characteristic.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Post Goods Receipt for PO

Transaction code

MB01

On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name

Description Purchasing Document Number

User Action and Values

Comment

xxxxxxxxxx

Number of the purchase order for material H841045 as noted above

Movement Type

101

Plant

BP01

Goods receipt

3. Confirm your entries with Enter. On the Item Overview of the main window, choose the item you want to post and make the following entries: Field name

Description

User Action and Values

OK

Indicates that you want to post the goods movement for this item

Set indicator 

Stor.Loc.

Storage location

0006

Comment

GR for H84-1045 is posted by default to storage location 0006, which is subject to full WM. Execute the following WM process: 4.

Save your entries and confirm any warning message with Enter .

5.

Confirm the pop-up window with Automatic batch number allocation information with Enter .

6.

On the Goods Receipt for Purchase Order: Classification screen, make the following entry: Field name Posting date

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Description GR posting date

User Action and Values

Comment

Enter goods arrival date, for  example the current date

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7.

Choose Back . Confirm the system information Enter delivery note for evaluated receipt  settlement and post the goods receipt with Save. The system brings to the Create Transfer  Order for Material Document: Initial screen.

8.

If you want to create transfer order directly, skip the following steps and go to step 21.

9.

Before follow-up WM activities, firstly you access the IM stock overview. Access the activity using one of the following navigation options: SAP role menu

Stock Overview 

Transaction code

MMBE

10. On the Stock overview: company code/plant/storage location/batch, make the following entries: Field name

Description

User Action and Values

Material

Comment

H84-1045

11. Choose Execute (F8). All inventory stock is displayed. 12. You then check the WM stock overview. Access the activity using one of the following navigation options: SAP role menu

Display Quants for Material 

Transaction code

LS24

13. On Stock per material screen, make the following entries: Field name

Description

User Action and Values

Warehouse No.

F01

Material

H84-1045

Plant

BP01

Comment

Choose Enter. All warehouse bin stock is displayed. 14. You then post the TR. Access the activity using one of the following navigation options: SAP role menu

TRs for Material 

Transaction code

LB11

15. On the display transfer requirement : list for materials screen make the following entries: Field name

Description

User Action and Values

Warehouse Number

Warehouse Number

F01

Material

material

H84-1045

Plant

Comment

BP01

16. Confirm your entries with Enter . 17. On the Transfer requirements for material screen, select the purchase order (displayed in Tracking No.) for which you just post the goods receipt before. Choose TO in Foregr .

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18. On the Create TO for TR xxxxxxxxx :prepare for putaway screen, make the following entries: Field name

Description

Storage Unit Type

User Action and Values

Comment

E1

In the area Palletization at the bottom row

19. Choose ENTER . Choose  putaway foreground (F5). Confirm the information message on the next screen. Choose Save. 20. On the Create Transfer Order for Material Document: Initial screen, confirm all default values with ENTER. 21. On the Create TO from TR: Overview of Transfer Requirement screen, choose button Create SU (single), make the following entries: Field name

Description

User Action and Values

Storage Unit Type

Comment

E1

22. Choose Create then save your entries. 23. Now you may check the stock situation once more in IM to see the effects of the posting. Access the activity using one of the following navigation options: SAP role menu

Stock Overview 

Transaction code

MMBE

24. On the Stock overview : company code/plant/storage location/batch screen, make the following entries: Field name

Description

User Action and Values

Material

Comment

H84-1045

Choose Execute (F8). All inventory stock is displayed. 25. Finally you check the stock overview once more in WM. Access the activity using one of the following navigation options: SAP role menu

Display Quants for Material 

Transaction code

LS24

26. On the Stock per material screen, make the following entries: Field name

Description

User Action and Values

Warehouse No.

F01

Material

H84-1045

Plant

BP01

Comment

27. Choose Enter . All warehouse bin stock is displayed. 28. Repeat steps 1 – 28 for the materials H84-1047 and H84-1048 which are managed with full warehouse management function. (steps 5 – 7 can be skipped for H84-1047 and H84-1048  – materials are not subject to batch management)

Result The ordered quantities are posted to the stock (both IM and WM)

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Posting Goods Receipt and Following Lean WM Use You want to post the incoming goods and perform subsequent lean WM activities for the material H84-1046. A transport order (TO) is required for incoming goods receipt posting for H84-1046, but the TO is not required for picking.

Prerequisites The purchase order has been created.

Procedure 1.

First you create the inbound delivery for the purchase order. Access the activity using one of the following navigation options:

2.

SAP role menu

Create Inbound Delivery (Lean WM)

Transaction code

VL31N

On the Create inbound delivery screen, make the following entries: Field name

Description

Vendor

User Action and Values

Comment

H8445

Purchase Order

xxxxxxxxxx

Number of the purchase order for material H84-1046 as noted above

3. Confirm your entries with Enter. 4.

On the Create Inbound Delivery: Overview screen, choose Save and note the Inbound delivery No___________________. ___________________.

5.

In the next steps you create a transfer order for the inbound delivery. Access the activity using one of the following navigation options:

6.

SAP role menu

Create TO for Inbound Delivery 

Transaction code

LT0F

On the Create inbound delivery screen, make the following entries: Field name

Description

User Action and Values

Warehouse No.

L01

Inbound delivery

The no. you noted before

Comment

7.

Confirm by choosing Enter .

8.

On the Create Transfer Order for Inb. Delivery: Overview Deliveries screen, choose Generate TO item, and save your entries. One transfer order is triggered.

9.

To post the goods receipt for the transfer order, access the activity using one of the following navigation options: SAP role menu

Change Inbound Delivery 

Transaction code

VL32N

10. Enter the inbound delivery number you noted before and choose Post Goods Receipt. The delivery is changed and saved. 11. Choose

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Document flow to analyze the whole procedure.

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Posting Goods Receipt for Material with Manufacturer Part Number  Use You want to post the incoming goods for material H84-1030. In the purchase order you informed your vendor about the approved manufacturer part numbers.

The batch for the material H84-1030 uses batch classification. Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process.

Prerequisites The purchase order of material H84-1030 with MPN has been created.

Procedure 1. Access the activity using one of the following navigation options: SAP role menu

Post Goods Receipt for PO

Transaction code

MB01

2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name

Description

User Action and Values

Movement Type

101

Purchase Order 



Plant

BP01

Storage Location

0004

Comment

3. Confirm your entries with Enter. 4. On the Goods Receipt for PO: Selection Screen, verify the item and quantity and choose the item that you want to post. Select Adopt+Details.

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5. On the Goods Receipt for Purchase Order: New Item 0001 , make the following entries: Field name

Description

User Action and Values

MPN material

Identifies the manufacturer part

H84-1031 or H84-1032

Comment

6. Confirm your entries with Enter . 7. On the Confirm receipt of certificate dialog screen, choose Yes. 8. On the Automatic Batch number Allocation screen, choose Yes. 9. On the Goods Receipt for Purchase Order: Classification screen, make the following entries: Field name

Description

Manufacturer Part Number 

User Action and Values

Comment

The same as step 5   

Data Code Manufacturer  Batch

10. Choose Back and confirm the warning message with Enter , then confirm your entries with Save. Note the number of the goods receipt: _____________________________ 

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

Result Goods receipt for H84-1030 has been posted.

Production Order Processing Creating Production Orders Use The purpose of this activity is to create production orders for the H84-1000, H84-1040 in-house production parts.

Prerequisites Requirement planning has been carried out.

Procedure 1. Access the activity using one of the following navigation options: SAP role menu

Display Stock/Requirements Situation

Transaction code

MD04

2. On the Stock/Requirements List: Initial Screen, enter the following data: Field name

Description

User Action and Values

Material

H84-1000

Plant

BP01

Comment

3. Confirm your entries with Enter . 4. Double-click the first planned order; choose Convert planned order to production order. 5. Choose Save. The converted order number is displayed at the bottom of the screen. 6. Return to the stock/requirements list and choose Refresh. The planned order is replaced by a new production order.

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To analyze the requirement, double click the production order, choose Pegged  Requirements, and the sales order number you noted before is displayed.

7. Repeat steps 1-6 for material H84-1040. 8. Choose Back to return to the SAP Easy Access screen.

Result The production orders are created for the parts produced in-house.

Scrap Treatment and Analysis Use When you create a production order, the system calculates the scrap based on different scrap types. In this activity, you go through the results of the assembly scrap, operation scrap and component scrap. Assembly scrap: A percentage of the quantity of an assembly that does not meet the • required production quality In material requirements planning (MRP), this percentage scrap is considered for all components contained in the assembly. The only components excluded from this calculation are those for which the net operation scrap indicator is set. Operation scrap: The percentage of the material processed in an operation that does • not meet quality requirements. Component scrap: The scrap that is expected to occur when a material is used in • production, if the material is a component. Component scrap is used in material requirements planning to determine the input quantities of a component. Net indicator: This indicator determines whether scrap for the component is calculated • on the basis of the net required quantity (the required quantity without assembly scrap from the material master record).

Procedure 1. Access the activity using one of the following navigation options: SAP role menu

Display Production Order 

Transaction code

CO03

2.

On the Production Order Display: Initial Screen, make the following entries:

Field name Order 

Description

User Action and Values

Comment

Your Production Order Number  for material H84-1000

Confirm your entries with Enter . 3. On the General tab page, check the total quantities and scrap portion.

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4. Choose Component Overview (F6), and check the Reqmts qty for each item. In this scenario, with a production order for 50 pieces H84-1000, the results are as follows: Component

Original Quantities

Reqmts. Quantities

H84-1000 (5% assembly scrap)

50

53

H84-1010 (2% operation scrap with net ID)

200

204

H84-1020

50

53

H84-1030 (10% component scrap)

50

59

H84-1040

50

53

H84-1050

50

53

H84-1060

750

795

H84-1070

5L

5,3 L

In the stock/requirements list you do not find any requirements for bulk material H841070 since the dependent requirements of bulk materials are not relevant to material requirements planning. Dependent requirements are only created in the planned order for information purposes and they can be displayed there. Dependent requirements for bulk material are not shown in the MRP list or the stock/requirements list. 5.

Choose Back to return to the SAP Easy Access screen.

Releasing Production Orders for Semi-finished Products Use Release at order header level releases the order and all its operations. The order and the operations receive the status REL (released). You can release a production order in create and change mode.

Prerequisites The production order created by the MRP controller has been assigned a release date in accordance with the scheduling margin key. The production scheduler selects all the created production orders with a release date and releases all relevant production orders by means of  mass processing.

Procedure 1.

Access the activity using one of the following navigation options: SAP role menu

Release Production Orders

Transaction code

CO05N

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On the Release Production Orders screen, enter the following data: Field name

Description

List

User Action and Values

Comment

Order Headers

Selection

Material

H84-1040

Order type

YHM2

In this step the production order  for component H84-1040 is selected and released.

Select. at operation level 

3.

Plant

BP01

Sys. Status

CRTD

On the Mass processing -Release tab in the Function parameter area, select Order release.

4. Confirm your entries with ENTER and choose Execute (F8) to execute the report. 5.

Make a note of the total order quantity: ________________________.

6. Select the production orders and choose Mass Processing (Ctrl execute Mass processing .

+ F8 )

Execute (F8) to

Shop floor papers are printed automatically when the production orders are released. In the production order display screen, choose Order  Settings List  control to get an overview about the lists to be printed and the spool settings. Alternatively you can check the papers created by the production order through transaction SP01. 



7. The system status has changed from CRTD (created) to REL (released). 8. Select your production order and choose Change Object . 9.

Choose

10. Choose

Operation Overview (F5). Select All , followed by

Op. details.

11. Make a note of the confirmation numbers (Confirmation) for each operation. You can scroll through the operations using the navigation buttons. Confirmation numbers: ________________. 12. Choose Back to return to the Production Order Change: Operation Overview screen. 13. A material availability check can be carried out manually by choosing: check material  availability . If there are no missing components the status will change to MACM: Material  Committed . The availability check in Shop Floor Control checks whether the components required for a production order are available. The checking control can be automatically performed during order creation or during order release. 14. Save the production order and return to the Order Information System: Detail List of Order  Headers screen. 15. Go Back to return to the SAP Easy Access screen.

Result The production order for the component H84-1040 has been released.

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Picking Components with WM/PP interface and FIFO Strategy at Semi-Finished Goods Order Level Use The released production order is now ready for picking. The components H84-1045, H84-1047, and H84-1048 have to be picked from the WM storage location 0006. The WM/PP interface for  this storage location is activated. The component H84-1046 has to be picked from the IM storage location 0005. The procedure for picking from an IM storage location is described in the section Picking components for Finished Goods (IM FIFO strategy) below. The following section focuses on the different types of WM/PP material staging (pick list component, crate part and release order part).

Option 1: WM/PP Material Staging for Pick List Parts (Staging Indicator 1) Prerequisites The putaway stategy of the WM storage types is defined with ‘F’ (FIFO). The use of WM/PP deliveries instead of WM transfer requirements for pick list parts (staging indicator ‘1’) is set in the Customizing of the WM/PP interface for the warehouse. The master data maintenance for the WM/PP material staging of pick list part H84-1045 is complete: 

Backflush indicator ‘1’ or ‘2’ in Material Master H84-1045 is maintained



Storage bin PSA_PICKLI in storage type 100 is maintained



Control cycle for material master H84-1045 in production supply area PROD_MTS is maintained with staging indicator ‘1’ and storage type 100/storage bin PSA_PICKLI



Production supply area PROD_MTS is assigned to work center E1013 for activity 10 (assembly)

The release of the production order for material H84-1040 has created a WM/PP delivery.

Procedure 1.

2.

Access the WM/PP delivery using one of the following navigation options: SAP role menu

Display Production Order 

Transaction code

CO03

On the Production Order: Initial screen, enter the following data: Field name

Description

User Action and Values

Comment

Production order 

Order number of the production order to be picked

Enter your order number for  material H84-1040

3.

Choose Header.

4.

On the Production Order Header screen, choose from the menu Goto

5.

Choose Display in the WM mat. provision dialog windows.

6.

On the Display WM Material Staging for Production Order screen, select the tab page Only  PickParts. Component H84-1045 is displayed in the first line.

7.

Choose Documents for Order to switch to the Day’s Workload for Picking screen. The overview shows the WM/PP delivery created on release of the production order. Select the item and choose TO (Transfer order) in foreground.

8.

On the Create Transfer Order for Delivery Note screen, the number of the WM/PP delivery is set as the default value. Choose Enter.

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WM picklist .

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On the Create Transfer Order for Delivery Note: Overview screen select the item and choose Stock figures (between the two pushbuttons). On the Stock that can be removed from storage screen, you can see an overview of the stock figures. The stocks are sorted in ascending order by GR date. If you do not select a storage bin and batch, the system applies the FIFO strategy. You can check this by choosing Stock removal foreground . The oldest quant should have been selected (depending of the open quantity of the transfer order, several TO items might be created).

10. On the Create Transfer Order for Delivery: Generate TO Item screen, choose Enter and on the following Create TO for Delivery : Prepare for  Stock Removal screen, save the data to post the transfer order for the WM/PP delivery. 11. Note the number of the transfer order: _________________ ____  12. After the physical movement of the component H84-1045 to the production supply area (destination: storage type 100 / storage bin PSA_PICKLI) the transfer order has to be confirmed. Access the activity using one of the following navigation options: SAP role menu

Confirm Transfer Order Item

Transaction code

LT11

13. On the Confirm Item: Confirm Single Item screen, enter the TO number and the item. Select Background in the Control subscreen and confirm with Enter . The TO is confirmed in background. If the planned TO quantity is not equal to the moved quantity, you can enter and correct the quantity by choosing Foreground on the control screen. 14. Access the activity using one of the following navigation options to check the document flow and the status of the WM/PP delivery: SAP role menu

Display Outbound Delivery   VL03N

Transaction code

15. On the Display Out bound Delivery screen, make the following entries: Field name

Description

OutboundDelivery

User Action and Values

Comment

Number of WM/PP delivery

Choose Enter to access the overview screen. 16. To check the status of the delivery, choose Document flow : The status of the WM/PP delivery and the WM transfer order should be Completed. In the item details you can also check the status. 17. Access the activity using one of the following navigation options: SAP role menu

Stock Overview 

Transaction code

 MMBE

18. On the Stock Overview: Company Code/Plant/Storage Location/Batch screen, make the following entries: Field name

Description

User Action and Values

Material

Comment

H84-1045

19. Choose Execute (F8). All inventory stock is displayed. 20. Access the activity using one of the following navigation options: SAP role menu

Display Quants for Material 

Transaction code

LS24

21. On the Stock per material screen, make the following entries: Field name Warehouse

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Description

User Action and Values

Comment

F01

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No. Material

H84-1045

Plant

BP01

22. Choose Enter. All warehouse bin stock is displayed.

Picking for WM/PP deliveries can also be executed using transaction VL06P. In this case you can select several WM/PP deliveries (for example, for the production supply area)

Result The WM staging movements with strategy FIFO has been carried out. The WM/PP delivery is completed. No inventory posting has been executed

Option 2: WM/PP Material Staging for Crate Parts (Staging Indicator 2) Prerequisites The putaway stategy of the WM storage types is defined with ‘F’ (FIFO). The use of WM transfer requirements for crate parts (staging indicator 2) is set in the Customizing of the WM/PP interface for the warehouse. The master data maintenance for the WM/PP material staging of crate part H84-1047 is complete: 

Backflush indicator ‘1’ or ‘2’ in Material Master H84-1047 is maintained



Storage bin PSA_CRATE in storage type 100 is maintained



The control cycle for material master H84-1047 in production supply area PROD_MTS is maintained with staging indicator ‘2’ and storage type 100 / storage bin PSA_CRATE



Production supply area PROD_MTS is assigned to work center E1013 for activity 10 (Assembly)



The available stock quantity of H84-1047 shall be no less than 100 PCs, otherwise post goods receipt to WM for H84-1047.

The release of the production order for material H84-1040 does not create a WM/PP delivery, and there is no transfer requirement and no transfer order for material H84-1047 due to crate part processing.

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Procedure 1. Display the WM/PP staging situation of the production order for H84-1040 SAP role menu

Display Production Order 

Transaction code

CO03

2. On the Production Order Display: Initial screen, enter the following data: Field name

Description

User Action and Values

Production order 

Order number of the production order to be picked

Enter your order number for  material H84-1040

Comment

3.

Choose Header.

4.

On the Production Order Display: Header screen, choose from the menu Goto WM   picklist. On the Display WM Material Staging for Production Order screen, select the tab page All Parts. Material H84-1047 is listed. On the bottom of the screen scroll to the right to get all the WM/PP staging information (staging indicator, storage bin, requirement quantity, …) 

It is only possible to realize material staging if the required quantity of material H841047 is in stock. You can check the stock situation in transaction MMBE. There must be a stock of at least 100 PC. 5. Access the activity WM staging of crate parts using one of the following navigation options: SAP role menu

WM staging of crate parts

Transaction code

LP11

6. Enter the following data on the WM Staging of Crate Parts screen: Field name

Description

Material

H84-1047

Plant

BP01

Supply area

PROD_MTS

User Action and Values

Comment

Set the indicator for automatic TO creation immediately after TR creation

TO creation 7.

Choose Enter . The system message You are requesting immediate TO creation is an information message only and can be ignored.

8.

On the next screen, the system displays the replenishment information, for example the bin information and the destination. Choose WM material staging .

9. Confirm the system message Requirement will cause an overdelivery Submit requirement  anyway with Yes. Staging is executed and the system issues the information message WM  staging of materials executed without error . 10. Choose Save. As a result, a transfer order is created. Note the number of the transfer order: _________________ ____  11. Use the following activity to display and check the transfer order created. SAP role menu

Display Transfer Order / Material 

Transaction code

LT24

12. On the Transfer Orders for Material screen, make the following entries:

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Field name

Description

User Action and Values

Warehouse

F01

Material

H84-1047

Confirm status

Only open TO items

Comment

13. Choose Execute (F8). The unconfirmed transfer order is displayed. 14. Following the physical movement of the component H84-1047 to the production supply area (destination: storage type 100 / storage bin PSA_CRATE) the transfer order has to be confirmed. Access the activity using one of the following navigation options: SAP role menu

Confirm Transfer Order Item

Transaction code

LT11

15. On the Confirm Item: Confirm Single Item screen, enter the TO number and the item. Select Background in the Control subscreen and confirm with Enter . The TO is confirmed in background. If the planned TO quantity is not equal to the moved quantity, you can enter and correct the quantity by choosing ‘Foreground’  on the control screen. 16. Access the activity using one of the following navigation options: SAP role menu

Stock Overview 

Transaction code

 MMBE

17. On the Stock overview: company code/plant/storage location/batch screen, make the following entries: Field name

Description

User Action and Values

Material

Comment

H84-1047

18. Choose Execute (F8). All inventory stock is displayed. 19. Access the activity using one of the following navigation options: SAP role menu

Display Quants for Material 

Transaction code

LS24

20. On the Stock per material screen, make the following entries: Field name

Description

User Action and Values

Warehouse No.

F01

Material

H84-1047

Plant

BP01

Comment

21. Choose Enter. All warehouse bin stock is displayed.

Result The WM staging movements with strategy FIFO has been carried out. No inventory posting has been executed.

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Option 3: WM/PP Material Staging for Release Order Parts (Staging Indicator 3) Prerequisites The putaway stategy of the WM storage types is defined with ‘F’ (FIFO). The use of WM transfer requirements for release order parts (staging indicator 3) is set in the Customizing of the WM/PP interface for the warehouse. The master data maintenance for the WM/PP material staging of release order part H84-1048 is complete: 

Backflush indicator ‘1’ or ‘2’ in Material Master H84-1048 is maintained



Storage bin PSA_RELORD in storage t ype 100 is maintained



Control cycle for Material Master H84-1048 in Production supply area PROD_MTS is maintained with staging indicator ‘3’ and storage type 100 / storage bin PSA_RELORD



Production Supply Area PROD_MTS is assigned to work center E1013 for activity 10 (Assembly)

The release of the production order for material H84-1040 has created no WM/PP delivery, no transfer requirement, and no transfer order for material H84-1048 because of the release order  part processing.

Procedure Display the WM/PP staging situation of production order H84-1040 SAP role menu

Display Production Order 

Transaction code

CO03

On the Production Order: Initial screen, enter the following data: Field name

Description

User Action and Values

Production order 

Order number of the production order to be picked

Enter your order number for  material H84-1040

Comment

Choose Header. 4.  picklist from the menu.

On the Production Order Header screen, select Goto



WM 

5. On the Display WM Material Staging for Production Order  screen, select All Parts. You can see the release order for the part H84-1048. On the bottom of the screen scroll to the right to get all the WM/PP staging information (staging indicator, work center, requirement quantity, …) 6. Access the activity WM Material Staging of Release Order Parts using one of the following navigation options: SAP role menu

Staging release order parts (WM-PP)

Transaction code

LP12

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7. On the WM Material Staging of Release Order Parts screen, make the following entries: Field name

Description

User Action and Values

Plant

BP01

Supply area

PROD_MTS

Material

H84-1048

TO creation

Flag for Automatic TO creation immediately after  TR creation

Comment

8. Choose Enter . The system message You are requesting  immediate TO creation is an information message only and can be confirmed with Enter . The replenishment information, bin information and destination are displayed. The system suggests the requested quantity (requirement quantity minus storage bin quantity), but the warehouse worker can modify this quantity (higher or lower) to avoid needless WM movements. 9. Select the item and choose Orders at the bottom of the screen. All production orders including the release order part H84-1048 are displayed. Once an activity is confirmed, (backflushed), the production order (reservation) disappears from this list. Posting the goods issue during confirmation also reduces the stock of storage type 100 / storage bin PSA_RELORD. 10.

Go back and choose WM material staging.

11. Choose Save to complete the staging of the release order part H84-1048. A transfer order has been created. Note the number of the transfer order:   _________________ ____  12. transaction LT24.

Display and check the transfer order created using the

13. created.

Use the following activity to display and check the transfer order  

SAP role menu

Display Transfer Order / Material 

Transaction code

LT24

14. entries: Field name

On the Transfer Orders for Material screen, make the following Description

User Action and Values

Warehouse

F01

Material

H84-1048

Confirm status

Only open TO items

15. displayed.

Comment

Choose Execute (F8). The unconfirmed transfer order is

16. After the physical movement of component H84-1048 to the production supply area (destination: storage type 100/storage bin PSA_RELORD) the transfer order has to be confirmed. Access the activity using one of the following navigation options: SAP role menu

Confirm Transfer Order Item

Transaction code

LT11

17. On the Confirm Item: Confirm Single Item screen, enter the TO number and the item. Select Background in the Control subscreen and confirm with Enter . The TO is confirmed in background. If the planned TO quantity is not equal to the moved

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quantity, you can enter and correct the quantity by choosing ‘Foreground’  on the control screen.

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18.

Access the activity using one of the following navigation options:

SAP role menu

Stock Overview   MMBE

Transaction code

19. On the Stock overview: company code/plant/storage location/batch screen, make the following entries: Field name

Description

User Action and Values

Material

Comment

H84-1048

20.

Choose Execute (F8). All inventory stock is displayed.

21.

Access the activity using one of the following navigation options:

SAP role menu

Display Quants for Material 

Transaction code

LS24

22. Field name

On the Stock per material screen, make the following entries: Description

User Action and Values

Warehouse No.

F01

Material

H84-1048

Plant

BP01

23.

Comment

Choose Enter . All warehouse bin stock is displayed.

Result The WM staging has been completed using the FIFO strategy. No inventory posting has been executed.

Confirming Production Orders with Bar Code Scanner  (Optional) for Semifinished Goods Use A confirmation documents the processing status of orders, operations, sub-operations and individual capacities. It is identified by a confirmation number that is printed as a barcode.

Prerequisites A production order is printed with a confirmation number barcode at the same time as the shop floor papers. The process is carried out in accordance with this information. Once the production process has been completed, the user confirms the activity. The material used is backflushed when the operation is confirmed. Ensure that sufficient material is in stock. You can check this using transaction MMBE. If there is not enough material in stock, you can post a goods receipt using the transaction MB1C with the movement type 561.

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Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Single Screen Entry of Confirmations

Transaction code

CO11N

On the Enter time ticket for production order screen, make the following entries: Field name

Description

User Action and Values

Comment

Confirmation

Bar code reader scan

This is printed on the shop floor  papers in the standard process. It is possible to enter the confirmation number manually if  the barcode scanner fails. (Here, the process is run using manual input of the order  number and operation number.)

Order 

The order number you noted for H84-1040

Oper./activity

0010

Confirm. type

Final confirmation

3. Confirm your entries with Enter . 4.

Confirm the subsequent information messages with Enter . Accept the default values displayed.

5.

In the Yield field, confirm is the total order quantity entered as default.

6. Save your entries. 7.

Choose Back to return to the SAP Easy Access screen.

Result After saving the confirmation data, the stock postings are executed for withdrawing raw material and goods receipt for the semi-finished product. If the posting cannot be performed, the user is asked to make the necessary corrections. If the user does not make any corrections, the stock posting is sent to a pool so that the incorrect goods movements can be processed (transaction code COGI). At the same time, the receipt of the completed assembly is posted to the amount of  the confirmed yield.

From an organizational point of view, it is important to ensure that incorrect goods movements are post-processed when backflush and automatic stock postings are used (transaction code COGI).

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Rework Order Process Use Some operations produce more scrap due to operational or component defects. To simulate the process, some predefined operations are triggered automatically at end of the planned required operation. These are also released automatically and are followed by production execution as normal production parts. In the following scenario, scrap is detected during a QM activity. A rework process is triggered immediately, the rework activity is confirmed, and the additional material consumption is posted. To simulate the process, we assume that some scrap was found by inspection in the last order  (the production order for H84-1040 which you just completed in the last step).

Prerequisites The reference operation set for H84-1040 has been defined.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Single Screen Entry of Confirmations

Transaction code

CO11N

On the Enter time ticket for production order screen, make the following entries: Field name

Description

User Action and Values

Order 

The order no. you noted for the material H84-1040

Oper./activity

0020

Confirm. type

Partial confirmation

Comment

Important

3. Confirm your entries with Enter . 4.

In the Scrap field, enter the scrap quantity 5, and choose Enter .

5.

Choose Save.

6. Confirm the dialog box Trigger point function with Enter . 7.

Choose Copy (F7) on the Assign Operation/Sub operation Numbers screen.

8. Confirm the dialog box Trigger point function with Enter. 9. Go back to your user menu. 10. Display the production order. To do so, access the activity using one of the following navigation options: SAP role menu

Display Production Order 

Transaction code

CO03

11. Enter the order number for the material H84-1040. 12. On the Production order Display: Header screen, choose Operation overview (F5). 13. Note that the rework operation 0022 was added and released.

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14. After the scrap is repaired (rework finished), repeat steps 1-3 for the operation 0022. 15. Enter the yield quantity 5 and the labor time 1 H (assumed the rework time). Choose Enter . 16. Choose Goods movement and perform an additional goods issue posting here (assume additional material needs for rework). 17. On the Enter production order confirmation: goods movements screen make the following entries: Field name

Description

User Action and Values

Material

H84-1020

Quantity

5 PC

Plant

BP01

Stor. Loc.

storage location

Comment

0004

18. Confirm your entries with Enter . 19. Confirm the message Enter the Batch with Enter . 20. Select the material and choose Batch determination (contrl+F4). The batch was determined using the FIFO strategy. 21. Choose Save.

Result The rework process is complete.

The rework process shown here is a real business case. The scrap is completely repaired with some additional material consumption and activities in an automatically triggered rework process. For a more complex business case with more complex rework activities, you can define the operations in a reference operation set. Another possibility is to cancel the confirmation of operation 0010, confirm it again with the actual quantity and activity again. This can be applied if the scrap is not completely repaired.

Analysis and Treatment of Bulk Materials Prerequisites Material H84-1070 Glue / oil is defined as bulk material.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Display Stock/Requirement Situation

Transaction code

MD04

On the Stock/Requirements List: Initial Screen, make the following entries: Field name

Description

User Action and Values

Material

H84-1070

Plant

BP01

Comment

3. Confirm your entries with Enter .

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4.

Note that no dependent requirement is triggered and no reservation, planned order or  production order is included in the bulk material. To analyze this, enter the following data on the Stock/Requirements List: Initial Screen: Field name

5.

H84: MTS Production with Batch Management, WM and HUM

Description

User Action and Values

Material

H84-1000

Plant

BP01

Comment

Select a production order number and choose Display . Choose Component overview (F6). Material H84-1070 is displayed. Do the same for a planned order.

6. Note that in the Production Order Display: Component Overview screen, the component H84-1070 (Glue/oil) is not flagged as a backflushed material and there is no default issue storage location although both are maintained in material master. This means that the bulk material will not be backflushed or issued to a single production order; instead it is issued to the cost center with the movement type 201. To do this, you have to execute the procurement first. 7.

8.

Access the activity using one of the following navigation options: SAP role menu

MRP – Single-item, Multi-level -

Transaction code

MD02

On the Single-Item, Multi-Level screen, enter the following data: Field name

Description

User Action and Values

Material

H84-1070

Plant

BP01

Comments

Scope of planning  Product group MRP control parameters Processing key

NETCH

Create purchase req.

1 (Purchase requisitions)

Delivery schedules

3 (Schedule lines)

Create MRP list

1 (MRP list)

Planning mode

3 (Delete and recreate planning data)

Scheduling

2 (Lead time scheduling and capacity planning)

Process control parameters Also plan unchanged components

Ω

(remove indicator)

Display results before they are saved

Ω

(remove indicator)

Display material list

Ω

(remove indicator)

Simulation mode

Ω

(remove indicator)

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9. Confirm your entries with Enter . 10. Confirm the information message Please check input parameters. 11. Go back to the SAP Easy Access screen. Then repeat steps 1–3 in this procedure to display material H84-1070 again. 12. In the next step, the purchase requisition would usually be converted into a purchase order  and the goods receipt would be posted. However, in order to simplify the whole process of  this scenario, we will simply post some initial stock entry here. 13. To post the initial stock, choose one of the following navigation options: SAP role menu

Other Goods Receipts

Transaction code

MB1C

14. On the Enter Other Goods Receipts: Initial Screen, enter the following data: Field name

Description

User Action and Values

Movement type

561

Plant

BP01

Storage location

0004

Comment

15. Choose Enter . 16. On the screen Enter Other Goods Receipts: New Items, enter the following data: Field name

Description

User Action and Values

Material

H84-1070

Quantity

100

Comment

17. Choose Save. The material document is posted. 18. Access the activity using one of the following navigation options: SAP role menu

Goods Withdrawal 

Transaction code

MB1A

19. On the Enter Other Goods Issue: Initial Screen, enter the following data: Field name

Description

User Action and Values

Movement type

201

Plant

BP01

Storage location

0004

Comment

20. Choose Enter . 21. On the Enter Goods Issue :New Items screen, enter the following data: Field name

Description

User Action and Values

Cost center

1301

Material

H84-1070

Quantity

50

Comment

22. Choose Enter, and Save. The document is posted. 23. Access the activity using one of the following navigation options: SAP role menu

Display Production Order 

Transaction code

CO03

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24. Input the order number for the material H84-1000. Choose Enter. 25. On the Production order display: Header screen, choose Goto Costs Itemization from the menu. You see the cost of this production order, but the bulk material is not there. 



Missing Part Management (Optional: with Workflow Integration) Checking Missing Parts Use The purpose of this activity is to manually carry out a missing parts check in your production order. Material availability is always checked in certain operations of the production cycle, for example during production order creation or release. Missing parts information can be generated as a missing parts report. The production planning calculates several solutions to handle the missing parts situation: Check with supplier if faster delivery is possible, replace the missing parts with another component in the production order or postpone the execution of this production order. This section focuses on the material H83-1050, but the same issues apply to other materials.

Procedure 1.

Access the activity using one of the following navigation options: SAP role menu

Change Production Order 

Transaction code

CO02

2. Enter the following data: Field name

Description

Order 

User Action and Values

Comment

Your production order number for the header material H83-1000

3. Confirm your entries with Enter . 4.

Choose Check Material Availability (Ctrl+F4).

5.

On the Availability Check screen, choose Missing Parts Overview . A list of missing parts for  this production order is displayed.

6.

Choose Component Overview (F6) and check the Reqmts qty for each item.

7.

Choose Back and Save.

8.

Choose Back to return to the SAP Easy Access screen.

Result The missing parts of the production order have been checked.

Posting Goods Receipt Based on Purchase Order  Use You have sent out the purchase order for the missing part H83-1050 and the vendor delivers the requested material based on your purchase order. When you perform the goods receipt based on the purchase order, your MRP controller is informed of the arrival of the missing part H831050.

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The batch for the material H83-1050 uses batch classification. Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Post Goods Receipt for PO

Transaction code

MB01

On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name

Description

User Action and Values

Movement Type

101

Purchase Order



Plant

BP01

Storage Location

0004

Comment

3. Confirm your entries with Enter. 4.

On the Goods Receipt for PO: Selection Screen screen, verify the item and the quantity and choose the item that you want to post. Choose Adopt+Details.

5.

On the Goods Receipt for Purchase Order: New Item 0001 screen verify the data again; then confirm your entries with Enter.

6.

Confirm the Automatic Batch Number Allocation dialog box with Yes.

7.

On the Goods Receipt for Purchase Order: Classification screen, enter the goods receipt date as the posting date, and choose Back .

8.

On the Goods Receipt for Purchase Order: New Item 0001 screen, the system displays the message Mat. Is a miss. Part. MRP controller WF-BP01 will be notified. Confirm with Enter  twice.

9.

On the Goods Receipt for Purchase Order: Overview screen, confirm the entries by choosing Save.

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

Result The goods receipt for a missing part has been posted and the workflow for missing parts has been triggered.

Workflow of Missing Parts Processing (Optional) Use When the workflow of missing parts is triggered, your MRP controller WF-BP01 receives an express info from the system. WF-BP01 performs the steps for the workflow of missing parts.

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Procedure 1.

Log on with the user WF-BP01. The default password is WF-BP01. (If this is the first time to log in with user WF-BP01, the initial password is INITIAL. Change the password to be WFBP01 after initial log on.)

2.

Once you have logged in, go to the Workplace via the transaction SBWP.

3.

In your  Inbox, Unread Documents folder, there are unread documents. Read the document with the title Missing part H84-1050 of Plant BP01 has arrived.

4.

In your  Inbox, Workflow folder, there are some new workflow items. Execute the item with the title Please check the related reservation by selecting Execute. The related production order is displayed with reservation number that is waiting for the missing parts. You then arrange the received goods for the production.

5.

Choose Back to return to the SAP Easy Access screen.

Result You have finished the part of missing parts workflow.

Simple Mail Notification of Missing Parts (Optional) Use In this scenario, you can trigger a workflow to inform the MRP controller about the missing part arrival. There is an alternative way to inform the MRP controller with an easy and simple function. In the output determination of the goods receipt, you could trigger a simple mail instead of the workflow. However this is not in the scope of this scenario. For details, refer to SAP Note 426648.

Releasing Production Orders for Finished Products Use Release at order header level releases the order and all its operations. The order and the operations receive the status REL (released). You can release a production order in create and change mode.

Prerequisites The production order created by the MRP controller has been assigned a release date in accordance with the scheduling margin key. The production scheduler selects all the created production orders with a release date and releases all relevant production orders by means of  mass processing.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Release Production Orders

Transaction code

CO05N

On the Release Production Orders screen, enter the following data: Field name

Description

List

User Action and Values

Comment

Order Headers

Selection tab page Material

© SAP AG

H84-1000

In this step the production order  for the finished product H841000 is selected and released.

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Order type

YHM2

Select. at operation level 

3.

Plant

BP01

Sys. Status

CRTD

On the Mass processing -Release tab in the Function parameter area, select Order release.

4. Confirm your entries with Enter and choose Execute (F8) to execute the report. 5.

Make a note of the total order quantity: ________________________.

6. Select the production orders and choose Execute (F8) to execute Mass processing .

Shop floor papers are printed automatically when the production orders are released. In the production order display screen, choose Order  Settings List  control to get an overview about the lists to be printed and the spool settings. Alternatively you can check the papers created by the production order through transaction SP01. 



7. The system status has changed from CRTD (created) to REL (released). 8. Select your production order and choose Change Object. 9.

Choose

10. Choose

Operation Overview (F5). Select All , followed by

Op. details.

11. Make a note of the confirmation numbers (Confirmation) for each operation. You can scroll through the operations using the navigation buttons. Confirmation numbers: ________________. 12. Choose Back to return to the Production Order Change: Operation Overview screen. 13. A material availability check can be carried out manually by choosing: check material  availability . If there are no missing components the status will change to MACM: Material  Committed . The availability check in Shop Floor Control checks whether the components required for a production order are available. The checking control can be automatically performed during order creation or during order release. 14. Save the production order and return to the Order Information System: Detail List of Order  Headers screen. 15. Go Back to return to the SAP Easy Access screen.

Result The production order for the product H84-1000 has been released.

Picking Components for Finished Products (IM – FIFO Strategy) Use The released production order is now ready for picking.

Prerequisites The relevant FIFO strategy has been defined.

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Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Picking list 

Transaction code

CO27

On the Picking List: Initial screen, make the following entries: Field name

Description

User Action and Values

Profile

Standard picking profile

000002

Production order 

Order number of the production order to be picked

Enter your order number for  the material H84-1000.

Comment

3. Confirm your entries and execute the report (F8). 4. Select the relevant reservations for material H84-1020 and choose Picking . 5. Select the material and choose Batch determination 6. Choose Post . 7. The system automatically switches back to the previous screen: Choose List → Refresh from the menu. The picked material disappears from the list. 8.

Check the triggered material document, compare the current stock overview, confirm the FIFO strategy executed.

9. Repeat steps 1-4 for the component H84-1010. No batch management is carried out for this material.

10. Repeat steps 1-4 for the component H84-1030 and H84-1040 separately. On the screen Picking list , in the Batch field, select the batch manually using the input help ( F4). Select a low number for H84-1040. The batch number is automatically assigned by the system, so a low batch numbers means that it was produced further in the past than a batch with a high number. (To simplify the process, the semifinished material batch classification is not assigned, but could be added on demand).

Confirming Production Orders with Barcode Scanner  (Optional) for Finished Products Use A confirmation documents the processing status of orders, operations, sub-operations and individual capacities. They are identified by a confirmation number that is printed as a barcode.

Prerequisites A production order is printed with a confirmation number bar code at the same t ime as the shop floor papers. The process is carried out in accordance with this information. Once the production process has been completed, the user confirms the activity. The material used is backflushed when the operation is confirmed. Ensure that sufficient material is present in stock. You can check this using transaction MMBE. If  there is not enough material in stock, you can post a goods receipt using transaction MB1C, with the movement type 561.

Procedure 1.

Access the activity using one of the following navigation options:

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SAP role menu

Single Screen Entry of Confirmations

Transaction code

CO11N

On the Enter time ticket for production order screen, make the following entries: Field name

Description

User Action and Values

Comment

Confirmation

Bar code reader scan

This is printed on the shop floor  papers in the standard process. It is possible to enter the conformation number manually if the barcode scanner fails. (Here, the process is run using manual input of the order  number and operation number.)

Order 

The order number you noted for H84-1000

Oper./activity

0010

Confirm. type

Final confirmation

3. Confirm your entries with Enter . 4.

Confirm the subsequent information messages with Enter . Accept the default values displayed.

5.

In the Yield field, enter the amount you want to confirm. Confirm the scrap as well.

6. Save your entries. 7.

Choose Back to return to the SAP Easy Access screen.

8.

Repeat the steps 2 to 7 for the second operation (0020).

9.

An information message for batch check is displayed on the status bar. Confirm it and choose Save.

Result The production order at finished goods level is confirmed and ready to be packed with Handling Unit Management (HUM) or without HUM.

Handling Unit Management for Finished Products Use Handling units can be created at the end of production (packing of finished goods) or at a later  stage after creating outbound deliveries. This depends on the packing process in your company: Packing the finished goods may not be feasible at the end of production because the quantities to be packed or delivered are not fixed. In this case, the packing process can be carried out after  creating the outbound delivery (including the delivery note).

Initial Goods Receipt for Packaging Material Use In this scenario, we use initial goods receipt to prepare the available stock for packaging material H84-1080.

Procedure 1.

Access the transaction using one of the following navigation options:

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SAP role menu

Other Goods Receipts  MB1C

Transaction code 2.

On the Enter Other Goods Receipts: Initial screen, make the following entries: Field Name

Description

User Action and Values

Movement type

561

Plant

BP01

Storage location

0010

Comment

3. Confirm your entries with Enter . 4.

On the Enter Other Goods Receipt: New Items screen, make the following entries: Field name

Description

User action and values

Material

H84-1080

Quantity

100

Comment

5. Confirm your entries with Enter . 6. Confirm the system message with Enter . 7.

On the Enter Other Goods Receipts: Collective Processing screen, choose Save.

8.

Choose Back to return to the SAP Easy Access menu.

Option 1: Creating Handling Units at the End of Production Use In this step, you execute packing and goods receipt posting at the end of a production order. The stock is posted directly into storage location YD05 and is available for picking. The availability check (checking group) is done at storage location level (with checking group ‘02’).

Prerequisites The packing instructions with packaging material for finished goods as well as the packing instruction determination records are maintained. The production order for H84-1000 has been totally confirmed (CO11N). The goods receipt for  the production order is outstanding. The storage location YD05 for goods receipt is maintained in the material master (MRP 2 view) or in the production order. A checking group 02 for the availability check at storage location level is maintained. The storage condition YH (determination of picking location 0084) is maintained in the material master ( Plant/Stor.1 view)

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Packing in production orders

Transaction code

COWBPACK 

On the Pack for Work Order screen, make the following entries: Field name Order 

Description

User Action and Values Enter your production order number  for material H84-1000

3.

Choose Enter to confirm your entry.

4.

On the Pack for work order screen, make the following entries:

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Comment

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Field name

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Description

User Action and Values

Comment

Storage Location

YD05

GR must be posted in the HU storage location YD05

Ship-to party

H8490

Quantity to be packed

The quantity you confirmed before

You can create several HUs for a production lot, for  example 100 pc → 4 HUs with 25 pc each

5.

On the Automatic Expansion pop-up, choose Yes.

6.

According to the packing instructions, the produced quantity is divided in one or several handling units to be packed. Choose Save. The handling unit(s) is/are created. Choose Display Saved HUs and note the HU number(s): _________________.

7.

You now post the goods receipt for the production order. You can do this from the Pack for  Work order screen. From the menu, choose Follow-On Functions Goods Receipt for  Production Order . 

8.

On the Enter Goods Receipt: New Item screen, choose Propose HU . The HU created before should be displayed. Choose Save to post the goods receipt.

Result The handling units have been created (the finished product and packing material have been put together), and the goods receipt has been posted. The stock of the finished goods is now available in HU / Produktion storage location YD05 in plant BP01. The sales order and outbound delivery for picking can be created.

Option 2: Creating Handling Units Before Outbound Delivery Use The goods receipt for a production order has been posted to storage location 0003 (without handling units/unpacked finished goods). The picking location YD05 for the Outbound Delivery is defined by the storage condition YH in the material master (Plant data/Storage 1 view). Stock in storage location YD05 is excluded from MRP and is not available for new outbound deliveries. Therefore the availability check for sales orders and outbound deliveries (checking group) must be done at plant level with checking group YH in the material master (MRP 3 view). This means that unpacked finished goods in storage location 0003 are available for new sales orders/outbound deliveries and packed finished goods (handling units) in storage location YD05 are reserved for existing and packed outbound deliveries. The packing and the transfer posting from storage location 0003 to YD05 is performed after the creation of a new outbound delivery by the dispatch worker. The distinction of unpacked finished goods stock (unrestricted use) in storage location 0003 and packed finished goods stock in storage location YD05 (blocked for deliveries) with this issue is also useful for the transparency of inventory control and ATP check.

Prerequisites Unpacked stock of H84-1000 is available in storage location 0003. This means you have already posted the goods receipt to storage location 0003 after production. Packaging materials are maintained for finished goods. The material master H84-1000 is maintained as follows: MRP 3 view: Checking group YH (availability check at plant level)  MRP 4 view: Storage location MRP indicator = 1 for YD05  Pl./Stor.1 view: Storage conditions YH (Determination of picking location 0084) 

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A sales order and an outbound delivery have been created. The delivery note has been printed out.

Procedure 1.

Call transaction MMBE (stock overview). Enter the material number H84-1000 on the initial screen and choose Enter for an overview of the stock in storage location 0003 in plant BP01 for material H84-1000 (quantities and batch number)

2.

Access the activity using one of the following navigation options:

3.

SAP role menu

Packing Station

Transaction code

HUPAST

On the Packing Station: Initial Screen, make the following entries: Field name Packing Station

4.

Description

User Action and Values

Comment

YH_MTS_FREE_PACKING

Choose Enter .

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On the Packing Station YH_MTS_FREE_PACKING screen, make the following entries: Field name

Description

Material Number  (To be packed)

User Action and Values

Comment

H84-1000

Choose Enter 

Batch number 

Enter .

Enter the lowest batch number available in storage location 0003 to use the FIFO strategy

You can find the lowest batch number in the stock overview (MMBE).

6.

Choose

A new line item is added in the Pack Material tab page.

7.

Select the line item with the material number and the batch number and choose Allowed  PackMatls. Choose a suitable packaging material (for example, H84-1080) according to the delivery quantity or customer-specific criteria of the delivery note. The system creates a new handling unit number.

8. Enter the quantity to be packed in the Quantity field of the line item. 9.

Note the number of the handling unit(s) _____________ and the batch number(s)__________ 

10. Choose Save.

Result The required quantity of the finished good H84-1000 according to the delivery note has been packed. The transfer posting from storage location 0003 to storage location YD05 has been carried out. The stock (handling unit) is available in storage location YD05 and can be used for  picking the outbound delivery.

Creating Outbound Delivery Use After creating the outbound delivery, you make the goods available for shipping.

Procedure 1.

2.

Access the activity using one the following navigation options: SAP role menu

Sales Orders Due for Delivery 

Transaction code

VL10A

On the Sales Order, Fast Display screen, make the following entries: Field name

3.

Description

User Action and Values

Comment

Shipping point / Receiving Pt

BP01

Deliv. Creation date

From current date to one month later  

CalcRuleDefltDlvCrDt

2

Select the Sales orders tab page, and make the following entries: Field name Sales document

Description

User Action and Values

Comment

Sales order no.

4.

Choose Execute (F8).

5.

On the Activities Due for shipping “Sales Orders, fast display” screen, select your sales order. Choose Create single delivery in dialog .

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Save and note the delivery number ______________________.

Result The outbound delivery has been prepared for shipping.

Picking Outbound Delivery (Assigning HU and Batch) Use Handling units are available in storage location YD05 and must be assigned to an outbound delivery. The handling units have been created either by the end of  production (with transaction COWBPACK) or after creating the outbound delivery with transaction HUPAST.

Prerequisites An outbound delivery exists. The number of the Handling Unit (incl. the Batch number) is determined by the dispatch worker for picking the outbound delivery.

Procedure 1.

Access the activity using one of the following navigation options: SAP role menu

Change Outbound Delivery 

Transaction code 2.

 VL02N

On the Change outbound delivery screen, maintain the following field and choose Enter : Field name Outbound delivery

Description

User Action and Values

Comment

The delivery number you noted before

3.

Choose Enter.

4.

On the Outbound Delivery Change: overview screen select the Picking  tab page.

5.

Enter the pick quantity and batch number of the handling unit you noted before. (You can use the stock overview (transaction code MMBE) to get the batch number and the handling unit number if the handling unit has been created by the end of production with transaction COWBPACK)

Check the storage location. Change the proposed storage location if required (0003  YD05) 6.

Choose Pack to branch to the Processing of Handling Units for Outbound Delivery screen. Enter the number of the handling unit and choose Back.

The assignment of a HU is not possible if the quantity of the HU is higher than the picking quantity of the outbound delivery. 7.

On the Outbound Delivery Change: Overview screen, a new line item has been added: The packaging material H84-1080 of the handling unit. Enter the picking quantity for this item under plant BP01, storage location 0010.

8.

Check that both line items have the picking status ‘C’.

9.

Choose Save.

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10. Check the assignment of the handling unit to the outbound delivery and, on the Change outbound delivery screen, choose of the document flow.

Document flow (F7). The HU number should be part

Result The HU and the batch are assigned to the outbound delivery. Finished good H84-1080 and packaging material H84-1080 are picked.

Posting Goods Issue Use The goods issue has to be posted for the delivery.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Change Outbound Delivery 

Transaction code

VL02N

On the Change Outbound Delivery screen, maintain the following entries: Field name

Description

Outbound delivery

User Action and Values

Comment

The delivery number you noted before

3.

Choose Post Goods issue.

4.

If the message appears that H84-1080 is out of stock, use transaction MB1C to create some stock.

5. The system issues the following message: 1 successful and 0 incorrect goods movements. 6.

Choose Back to return to the SAP Easy Access screen.

Result The goods issue for the delivery has been posted. The handling unit has leaved the physical and the inventory stock.

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Checking Status of Outbound Delivery and History Check of  HU Use The purpose of this activity is to check the status of the outbound delivery and the history of handling unit.

Procedure 1.

Access the activity using one of the following navigation options: SAP role menu

Display Outbound Delivery 

Transaction code 2.

 VL03N

On the Display Outbound Delivery screen, enter the following data and confirm with Enter : Field name

Description

User Action and Values

Outbound Delivery

Comment

Enter the number of the outbound delivery

3.

On the Overview screen, choose

Document Flow ( F7 ).

4.

A picking request, a handling unit and a goods issue document are displayed with the status Complete. The overall status of the outbound delivery is Being Processed because of the missing billing document.

5.

On the same screen, select the handling unit line and choose Display Document.

6.

On the screen Detailed Data for Handling Unit , choose the History tab page to view the lifecycle of the handling unit.

Billing Processing Creating Billing Document Use The purpose of this activity is to create an invoice for the delivery.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Create Billing Document 

Transaction code

VF01

On the Create Billing Document screen, make the following entries: Field name Document

Description

User Action and Values

Comment

Enter the delivery number you noted earlier 

3. Confirm your entry with Enter and save your entries. 4.

The number of the billing document that has been saved is displayed.

5.

Make a note of this number: __________________________.

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Go back to the SAP Easy Access screen.

Result The delivery of the subset has been invoiced.

Displaying Customer Line Items Use In this procedure, you display the customer line items.

Procedure 1.

2.

Access the activity using one of the following navigation options: SAP role menu

Customer Line Items

Transaction code

FBL5N

On the Customer Line Item Display screen, maintain the following fields: Field name

Description

User Action and Values

Customer account

H8490

Company code

BP01

Comment

3.

Choose Execute to confirm the entry.

4.

The Customer Line Item Display screen displays the line items for customer 8490 that have been transferred to financial accounting.

5.

Go back to the SAP Easy Access screen.

Result The accounting department receives information about the rendered invoice and its due date.

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Cost Object Controlling in Discrete Manufacturing – Preliminary Costing Prerequisites Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Product cost by order enables you to analyze costs at the level of manufacturing orders, production orders as well as process orders. In product cost by order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into inventory. The settings in Production Planning & Control (PP, PP-PI) are required to cost manufacturing orders as part of the production execution.

Use When you create a production order and after each subsequent change of data in the order, the system calculates the planned order costs. The planned costs are allocated to cost elements. Graphical overview:

Planned costs Material components 

Ind. "Rel. to costing"



Price

Phases

Cost elements: elements: Material costs



Gen. operation values



Standard values



Control key: "Costing indicator"

Costs for external procurement Order type Order type // Plant 

Production costs

Costing variant Material overhead costs

Display planned / actual costs Production overhead costs

Cost elements  Cost itemization  Cost component split 

Costs for external processing

Resources 

Formula key for  costing



Cost center 



Activity type



Formula constants Cost calculation log

Planned costs for components Whether costs are calculated for a material component depends on the costing relevancy indicator of the component. This indicator specifies that the component is fully relevant to costing. If the indicator is not set, the material component is not taken into account in costing. This indicator is in the material list General data screen in the order. It is set as a default setting, but can be removed manually.

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Planned costs for material manufactured in-house If a material is manufactured in-house, the system calculates the planned costs of the material using the valuation variant and a price stored in the material master record. In Customizing, a costing variant is defined for each order type and plant. The costing variant refers to a valuation variant which determines which price from the material master record is used to calculate the planned costs of a material (for example, the moving average price or t he standard price). Planned costs for production Whether an operation is calculated depends on the control key and the costing relevancy indicator of the operation.

-

Using the control key of the operation, you can specify whether the operation is relevant to costing. If the operation is relevant to costing, you can additionally use a costing relevancy indicator to specify the factor that is to be used to calculate the services performed in an operation or you can disconnect the operation from costing. Operations are automatically excluded from costing.

Setting up a quantity structure The most important data for setting up a quantity structure for an activity is defined in the resource/ work center:

-

Activities Formulas

Every activity is allocated to an activity type. Each activity type is allocated to a formula in the resource. Using the formula and the standard times in the operation, the system calculates how much activity is expected for a particular activity type in a particular operation. As soon as the system has calculated how much activity is expected for a particular activity type, it can valuate the activity for each activity type. Cost center assignment You can assign a resource to a cost center on the Cost Center Assignment screen. You can maintain the following data:

-

In the validity section, you determine the effective period for the assignment of  the resource to this cost center. To cost activities, enter the cost center to which the activity types have been allocated. The cost center must be defined in the controlling area. The controlling area is specified via the plant.

Note that the cost center to which you want to assign a resource must already exist in the system. If you want to assign the resource to different cost centers with different validity periods, overwrite the old validity periods and enter the new cost centers. However, the resource may be assigned to only one cost center at any one time. To cost standard values, assign activity types to the appropriate cost center. These activity types can then be entered in the cost center screen of the resource.

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Example:

Resource

Cost center   Formula

F1 F2 . . . (Max. 6)

Activity types Charge rates A B . . .

USD 10/h USD 20/h

Example : Rate for  activity type A

Formula F1

Operation qty Base qty

x

Base output

x Duration = Total time

Res. output



Standard values



Operation values



Resource constant

Total time

USD 10/h

x Charge rate = COSTS

Overhead costs Overhead costs are costs that can be assigned only indirectly to the production order, such as electricity costs or general storage costs. Overhead costs are assigned to the production order  via overhead surcharges. They are updated in the order under the cost elements defined in the costing sheet. A costing variant is defined in Customizing for each order type and plant. The costing variant refers to a costing sheet. The costing sheet determines what overhead surcharges are assigned to the order. The costing sheet specifies:

-

Which direct costs to apply surcharges to Under which conditions an overhead is calculated How high, depending on these conditions, the surcharge percentage is Which object (for example, a cost center) is reduced under which cost element during actual postings

The order type is set up in a way that planned cost are determined automatically when saving the production/process order. You can then execute the preliminary costing by choosing Cost order (Ctrl + F7) in the application toolbar on the Create Production Order  screen.

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Cost Object Controlling in Discrete Manufacturing – Simultaneous Costing Prerequisites See above under Preliminary Costing.

Use In Cost Object Controlling , actual costs for cost objects are recorded during simultaneous costing. In the Product Cost by Order component, you can record actual costs for manufacturing orders. Cost objects can be debited with primary costs in the following ways:

-

Through postings in Financial Accounting (FI) Through postings in Materials Management (MM) Through postings in Human Resources (HR)

Cost objects can be charged with secondary costs in the following ways:

-

Through postings in Controlling (CO) Through the use of time sheets (CATS)

Cost objects can also be debited with actual costs by confirmations in Logistics. In confirmations, a cost object can be debited with:

-

Secondary costs through internal activity allocations that are generated automatically by the confirmation

-

Primary costs through material withdrawals that are generated automatically by the confirmation

Simultaneous costing derives automatically in background from the main processes in Logistics like goods movements and activity confirmations.

Procedure 1.

Access the activity using one of the following navigation options:

SAP role menu

Change Production Order 

Transaction code

CO02

2.

On the Change Production Order screen, enter the production order number and choose Enter .

3.

On the Production Order Change: Header screen, from the menu bar, choose Goto → Costs → Analysis.

4.

The costs debited to the order can be analyzed by using a layout such as Cost Trend .

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Cost Object Controlling in Discrete Manufacturing – Period End Closing Use From a business perspective the period-end closing in cost object controlling consists of three different areas:

-

Allocation of periodic costs: With SAP ERP you can allocate process costs, revaluate activities and processes with actual activity prices, post overheads and distribute costs from order header to the order items in case of using coproducts.

-

Analyze the costs on the cost objects by calculating Work in Process (WIP) as well as target costs and variances.

-

Correct the financial accounting by posting WIP and price variances..

Calculating work in process will calculate your WIP either at actual costs (when using full settlement) or at target costs (when using periodic settlement). Variance calculation calculates not only variances, but also target scrap and target costs as the basis for the target/actual comparison and scrap variances. Settlement is the last step in period-end closing in Cost Object Controlling . The necessary accounting documents are posted in Financial Accounting and in the material ledger, if used, and data is passed on to other components such as Profitability Analysis and Profit-Center   Accounting . In the solution a lot-based production scenario is chosen with production and process orders. In this case the costs posted onto the order via goods issues, confirmations and goods receipts are stored on a CO-object, which has a one-to-one relationship to the order. In this example orders have the settlement type FULL.

Periodic Costs

Process Costs Allocation Revaluation at Actual Prices Overhead Distribution for Co-Products

Analyzing Costs

Work in Process Scrap, Variances, Target Costs

FI/CO -Posting

Settlement

The period end closing consists of the following steps: As long the production order is not fully delivered or flagged technically complete, the remaining order balance is treated as WIP. Otherwise the order balance shows up in variance calculation. If you do lot-based product controlling WIP is valuated at actual costs. The WIP is calculated as the difference between the debit and credit of an order as long as the order does not have the status DLV (delivered).

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In lot-based product controlling the variances are not calculated until the order has the status DLV (finally delivered) or TECO (technically completed). This means that at the time the order  has reached this status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance. In lot-based product controlling orders never have work in process and variances at the same time. Variance calculation compares the actual costs incurred for the production/process order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order. In this way you can find out which variances occurred between the value of the delivery and the actual costs and you can find the reason for the posting to the price difference account for  materials with standard price control. Variances from production (target version 1) Variance calculation compares the actual costs incurred for the production order with the target costs for the production order and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order. This enables variance calculation to find out which variances occurred between the time the production order was created and the end of the production process. Variances from planning (target version 2): Variance calculation compares the planned costs for the production order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for  the order. This enables variance calculation to find out which variance occurred between the time the standard cost estimate was created and the time t he production order was created. Variance categories: The system assigns every variance to a variance category. The variance category indicates the cause of the variance (such as price change, lot-size variance). Variances are updated to the information system and passed on to Profitability Analysis according to variance category. You differentiate between variance categories on the input side and on the output side:

-

-

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Variances that occur because of goods issues, internal activity allocations, overhead and G/L account postings are displayed on the input side. Price variances, quantity variances, resource-usage variances and input variances are displayed on the input side. Variances that occur because too little or too much of the planned order quantity was delivered, or because the delivered quantity was valuated differently are displayed on the output side. Variances on the output side occur when you deliver using a price that differs from that found by dividing the t arget costs and the delivered quantity. If you deliver using the standard price, a variance can occur when the order lot size differs from the costing lot size. This is displayed as a lot-size variance.

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Variances on the input side: Price

Actual Price

Price Variance

Own category ?

Planned Price

Planned Costs

Quantity Variance Quantity Planned Quantity

Actual Quantity

Variances on the output side

Price changed S-price

Output Price Variance S-Price (mixed cost estimate)

Mixed Price Variance Price of  Procurement Alternative

Lot-size independent portion of procurement alternative

Lot-size Variance Planned Quantity

Quantity Actual Quantity

Settlement: During the production process, product cost collectors and manufacturing orders are debited with actual costs. The actual costs posted to an order can be more or less than the value with which an order was credited when the goods receipt was posted. When you settle, this difference between the debit and credit of the order is transferred to Financial Accounting (FI). The total variance can be transferred to profitability segments in Profitability Analysis (CO-PA). This enables you to see an additional contribution margin in CO-PA. You can transfer the individual variance categories of the total variance to value fields in CO-PA in combination with certain cost elements or cost element groups. The WIP will be transferred to Financial Accounting (FI) and Profit Center Accounting (EC-PCA) in accordance with the posting rules in Customizing .

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

Procedure 1.

Access the activity using one of the following navigation options: SAP role menu

  Actual Reval.: PrCstCol. Ind.Pro.

Transaction code

MFN1

2. In the dialog box, enter a Controlling area of BP01, if necessary. 3.

On the Revaluation at Actual Prices Production order screen, make the following entries: Field name

Description

User action and values

Order

Enter production order number  

Period

(current period)

Fiscal Year 

(current year)

Test Run

Do not set indicator  

Detail List

Set indicator  

4.

Choose Execute.

5.

Choose Back twice.

6.

Access the activity using one of the following navigation options:

7.

SAP role menu

  Act. Overhead: Int.Order Ind.Pro

Transaction code

KGI2

Comment

On the Actual Overhead Calculation: Order  screen, make the following entries: Field name

Description

User action and values

Order

Order key

Enter production order   number 

Period

(current period)

Fiscal Year 

(current year)

Test Run

Do not set indicator  

Dialog List

Set indicator  

8.

Choose Execute.

9.

Choose Back twice.

Comment

10. Confirm the dialog box. 11. Choose Back again. 12. Access the activity using one of the following navigation options: SAP role menu

WIP Calculation for Order 

Transaction code

KKAX

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SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

13. On the Calculate Work in Process screen, make the following entries: Field name

Description

User action and values

Comment

Order

Enter production order number  

WIP to Period

(current period)

Fiscal Year 

(current year)

All RA versions

Do not set indicator  

RA version

0

Background processing

Do not set indicator  

Test Run

Do not set indicator  

Log information messages

Set indicator  

Save log

Set indicator  

Display orders with errors

Do not set indicator  

14. Choose Execute. 15. To perform variance analysis, make sure that the variance key is maintained in Production order header – control data (variance key = 000001) 16. Access the activity using one of the following navigation options: SAP role menu

Variances – Product Cost by Lot (I)

Transaction code

KKS2

17. On the Variance Calculation: Initial screen, enter the following data: Field name

Description

User action and values

Order

Enter production order number  

Period

(current period)

Fiscal Year 

(current year)

All target cost vrsn

Set indicator

Test Run

Do not set indicator  

Detail List

Set indicator  

Comment

Target versions 000, 001, 002

18. Choose Execute (F8). 19. Choose Back .

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