ACO MM TBP 20 Purchasing Process - Consignment-V4sb

To Be ProcessPurchasing process – Consignment

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Table of content

1.1 DOCUMENT UPDATES AND VALIDATIONS.......................................................................................................2

2 SCOPE............................................................................................................................................................... 2

2.1 PROCESS SCOPE DESCRIPTION........................................................................................................................ 22.2 APPLICATION ARCHITECTURE (GLOBAL).........................................................................................................22.3 CROSS REFERENCES....................................................................................................................................... 3

3 PROCESS.......................................................................................................................................................... 4

3.1 CORE MODEL - PROCESS FLOW AND DESCRIPTION...........................................................................................43.1.1 Flow managed in SAP.......................................................................................................................... 43.1.2 Flow managed in integration between two systems...............................................................................7

3.2 COUNTRY OR CUSTOMER SPECIFIC - PROCESS FLOW AND DESCRIPTION............................................................93.2.1 Specific country – France..................................................................................................................... 9

4 BUSINESS RULES............................................................................................................................................ 9

4.1 CORE MODEL – BUSINESS RULES................................................................................................................... 94.2 COUNTRY OR CUSTOMER SPECIFIC – BUSINESS RULES..................................................................................10

5 KEY ELEMENTS OF SYSTEM IMPLEMENTATION...............................................................................10

5.1 CORE MODEL – KEY ELEMENTS OF SYSTEM IMPLEMENTATION.....................................................................105.1.1 Flow managed in 1 system.................................................................................................................. 105.1.2 Flow managed in integration between two systems.............................................................................13

5.2 COUNTRY OR CUSTOMER SPECIFIC – KEY ELEMENTS OF SYSTEM IMPLEMENTATION......................................165.2.1 Country specific – France.................................................................................................................. 16

5.3 SUMMARY.................................................................................................................................................. 16

6 ORGANIZATIONAL ROLES AND IMPACTS.............................................................................................18

7 APPLICATION SPECIFIC DEVELOPMENT REQUIREMENTS..............................................................18

8 KEY VOLUME & PERFORMANCE INDICATORS..................................................................................18

9 ADDED VALUE FOR THE BUSINESS AND ECONOMICAL CONSIDERATIONS................................18

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1.1 Document updates and validationsThe table below lists all modifications and updates done on the considered document. Fill in Date, Author and a summary of the document’s update content, reason and/or objectives.

UpdatesDate Version Author Comment

12/06/02 v0 C. Hemery Document creation29/07/02 V0 J. Sanz Document reading + completion for V217/10/02 V2 J. Sanz Document completion21/10/02 V3 D. François / C.

HemeryDocument completion

29/11/02 V3 C. Hemery Master data completion17/09/03 V4 D. Francois Updating01/02/05 V4 S. Blanchard Document revision

The table below lists all the successful validations done on the document ; if the document was asked for validation but not validated then there is no entry in this table (status by default is OK).

ValidationsDate Version Validation

Resp.Comment

2 Scope

2.1 Process scope description

This document describes the use of the vendor consignment flow by Sekurit.

The vendor consignment stock is a special stock which is not the property of Sekurit Saint-Gobain but belongs to the supplier, this stock is located in the plant but its valuation equals 0 for Sekurit.Currently in Sekurit Saint-Gobain, the vendor consignment flow is used for PVB which is a strategic material for all Sekurit plants. But there are also some cases like in Spain where enamel is purchased with a vendor consignment process.

Within Sekurit Avenir V2 solution, PVB stocks will be managed in FLEXNET. So, the purchasing consignment flow has to be set between SAP and FLEXNET.

Transition period Within Sekurit Avenir V1, stocks movements for consignment flow (PVB) are only treated in SAP, there is no link between the 2 systems (SAP and DCS) for this flow. Within Sekurit Avenir V2, stocks movements for consignment flow will be treated in FLEXNET and interfaced with SAP.During this period there will be two ways for managing consignment flows, without FLEXNET for the countries not implemented with Sekurit Avenir V2, and with FLEXNET for the countries with the global V2 solution.

2.2 Application architecture (global)

We shall distinguish two cases : - First case : the flow is completely in SAP (ex: enamel for Spain), the SAP standard flow is used.The products concerned are the ones managed in stock in SAP only.

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- Second case : this flow is managed in integration between two systems (FLEXNET and SAP),

Master data and purchasing documents are managed in SAP, and sent to FLEXNET via Idocs.Stocks are managed in FLEXNET, stock movements are sent to SAP via Idocs.

The product concerned is PVB.

2.3 Cross references

TBPP13 Supply – Generate deliveries requestsV2-TBMM08 Supply – Manage deliveries requestsTBMM09 Purchasing process per material typeV2-TBMM13 Purchasing process – Scheduling agreementV2-TBMM14 Purchasing process – Purchase ordersTBMM22 Purchasing Document OutputsTBMM23 Purchasing Document FormsTBIN02 Process goods receiptTBIN03 Process internal movementsTBIN05 Count inventory

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FlexnetPlant 1

Idoc

SAP

Purchasing documents

Idocs : ZBLAORD_RCV for Scheduling

Agreements

Stocks ManagementStocks

Update

Master Data

Idocs : - ZMATMAS for material master- ZCREMAS for vendors

FlexnetPlant 1

Idoc

SAP

Purchasing documents

Idocs : ZBLAORD_RCV for Scheduling

Agreements

Stocks ManagementStocks

Update

Master Data

Idocs : - ZMATMAS for material master- ZCREMAS for vendors


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3 Process

3.1 Core model - process flow and description

The consignment flow is possibly managed in two ways :- A flow managed completely in SAP - A flow managed in integration between two systems (FLEXNET and SAP)

3.1.1 Flow managed in SAP

Perimeter : this flow concerns the raw materials not managed in FLEXNET.For example, enamel and silver paste in Spain, for the Arbos plant. This component is totally managed in SAP.

PrerequisitesPre-requisites to this flow are presented below but will also be detailed in part 5.1.1.1.

F

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Master data manager

Material

Master data manager

Vendor

Regular flow ?

Master data manager

Consignment Info-record

Master data manager

Purchase SchedulingAgreement

YesNo

Master data manager

Source-list


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For the main part of strategic materials (STRA), the master data manager is the SGSI Purchasing Department. The others are managed by the country purchasing department.

For non strategic materials, the master data manager is the local purchaser.

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Material Type Maintenance Level

Raw glass STRA International Purchasing

PVB STRA International Purchasing

Functional Interlayer

Components for the PVB/PET preparation

(Heating network, Conducting Lines)

Enamel

Silver Paste

Primer

Cleaner

Polymer

Mirror Part

Raindetectors

Connectors

Plastic profiles

Rubber Parts

Other Plastic Parts

Metallic Parts

Modules for Pre-Assembly

STRA Country Purchasing

Component TypeMM features

STRA International Purchasing


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Process Flow

Step 1 : MRP calculations Cf. V2-TBMM08 Supply – Manage deliveries requests- For material integrated into the BOM , a job is planned every week to compare the requirements

(customer requirements and / or Production Planning) to the stocks and to the forecast receipts (from purchases or from planned orders). If a need is foreseen on the product, a requirement is established.

- For material not integrated into the BOM , a job is planned every day to compare the stocks, the requirements (reservation) to the reorder point or to the safety stock.

- If the product is purchased through purchase orders , MRP triggers automatically the creation of a purchase requisition.

- If the product is purchased through a scheduling agreement , MRP creates or updates automatically delivery schedules.

For enamel, the planning horizon is not 6 months but 3 months long.Responsible : Automatic.

Step 2 : Purchase validation- If the product is purchased through purchase orders , the purchase requisition is to be transformed into a

purchase order. This purchase order does not contain a purchasing price.Outputs : Printout : The purchase order is printed and can be sent to the vendor, either by letter or automatically faxed.

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Automatic : MRP

Material RequirementPlanning

MRP/ Purch. department

Purchase Requisitioncreation / modification

MRP/ Purch. department

Schedule lines creation/modification

Purchasing departmentTransformation of PurchaseRequisition into a Purchaseorder

1

11

2

VENDOR

Vendor

Products delivery

3Warehouse receiver

Goods receipt in vendor’sconsignment stock

4

Warehouse receiverGoods consumption in

vendor’s consignment stock

5

Accounting department

Consumption information

6 Vendor

Billing

7


Invoice preparation

8

Regular flow ?No Yes

2


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- If the product is purchased through a scheduling agreement , delivery schedules can be checked and if required, maintained manually. Outputs : Printout : The delivery schedule has to be printed and sent to the vendor. It is sent either by letter or automatically faxed.

- For spot needs , a purchase order can also be directly created in the system, though no requirement was determined through MRP calculations.Outputs : Printout : The purchase order is printed and can be sent to the vendor, either by letter or automatically faxed.

Responsible : The purchasing department.

Step 3 : DeliveryOUT OF OUR SYSTEM : the vendor delivers the ordered quantities.Responsible : Vendor

Step 4 : Goods receipt Cf. TBIN02 Process receivingThe goods receipt is performed referring to the purchasing document and purchasing document item. It increments the vendor consignment stock that we do not own yet. It does not trigger an accounting posting for an expected invoice.Responsible : The warehouse receiver

Step 5 : Consumption Cf. TBPDC04 Consumption declarationPhysical goods consumption : when a part is taken out from the General Warehouse, a goods issue is posted, which then triggers the accounting posting for an expected invoice. This consumption decrements the chosen vendor consignment stock.As it is a consignment flow, the purchasing variances are established when the goods are consumed, and the variances are calculated with the difference between the purchasing price in the Info-record and the standard price in the master data. In the special case of PVB and enamel, no good issue is posted in SAP when a part is taken out from the General Warehouse, but the production informs the warehouseman of the daily consumption on the production lines, who then posts it in SAP. Responsible : The warehouse receiver

Step 6 : Consumption’s informationThe consumption information report is performed in SAP through the Consignment liabilities report which lists what should be invoiced by the vendor, based on our consumption declarations for the quantities, and on the info-record for the price. It is run in test mode, so as to obtain the list but not already create the invoice.The frequency depends on the frequency agreed with the vendor : at least once a month, but possibly once a week for example.Outputs :- Printout : the document is printed, containing the movements list with quantities and values at the price fixed in the info-record. It is sent to the vendor.Responsible : the Accounting department

Step 7 : Billing by the vendorOUT OF OUR SYSTEM : the vendor establishes the invoice based on the declared consumed quantities.Responsible : Vendor

Step 8 : Invoice preparation

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When receiving the vendor bill, the Consignment liabilities report is run once again (as detailed in step 6) but in real mode, it creates an invoice document in our system.Responsible : The accounting department

3.1.2 Flow managed in integration between two systems

Perimeter : this flow concerns the materials managed in FLEXNET.For example, it applies to PVB.

PrerequisitesPre-requisites to this flow are presented below but will also be detailed in part 5.1.2.1.

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Master data manager

Material

Master data manager

Vendor

Master data manager


Master data manager

Purchase Scheduling Agreement

Master data manager

Source-list

ZMATMAS

ZCREMAS

BLAORD

Flexnet

Master data manager

Material

Master data manager

Vendor

Master data manager


Master data manager


Master data manager

Source-list

ZMATMAS

ZCREMAS

BLAORD

Master data manager

Material

Master data manager

Material

Master data manager

Vendor

Master data manager

Vendor

Master data manager


Master data manager


Master data manager


Master data manager


Master data manager

Source-list

ZMATMAS

ZCREMAS

BLAORD

Flexnet


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Process Flow

Step 1 : MRP calculations Cf. V2-TBMM08 Supply – Manage deliveries requestsA job is planned every week to compare the requirements (customer requirements and / or Production Planning) to the stocks and to the forecast receipts (from purchases or from planned orders). If a need is foreseen on the product, a requirement is established.The product is purchased through a scheduling agreement : MRP creates therefore or maintains automatically delivery schedules.Responsible : Automatic

Step 2 : Purchase validation- The product is purchased through a scheduling agreement , delivery schedules are checked and if

required, maintained manually. Outputs : Printout : the delivery schedule can be printed and sent to the vendor. It is sent either by letter or automatically faxed.

- For spot needs , a purchase order can also be directly created in the system, though no requirement was determined through MRP calculations.Outputs : Printout : The purchase order is printed and can be sent to the vendor, either by letter or automatically faxed. An Idoc is sent to FLEXNET to transmit the purchase order data.

Responsible : The Logistic department for Italy and Belgium, the Production department for Spain and France.

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Automatic : MRP

Material Requirement Planning

MRP/ Log. Dept/ Prod. Dept

Schedule lines creation/ Modification

1

1

2

VENDOR

Vendor

Products delivery

3Warehouse receiver

Goods receipt in vendor’s consignment stock

4



5



6 Vendor

Billing

7


Invoice preparation

8

Receiving Plant

Goods receipt info : Stock update

WMMBXY

Goods consumption info : Stock update

ZPPDC01

Flexnet

Automatic : MRP


Automatic : MRP


MRP/ Log. Dept/ Prod. Dept

Schedule lines creation/ Modification

1

1

2

VENDOR

Vendor

Products delivery

3Warehouse receiver

Goods receipt in vendor’s consignment stock

4



5



6 Vendor

Billing

7


Invoice preparation

8

Receiving Plant


WMMBXY


ZPPDC01

Flexnet


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Remark : the person responsible for planning and communication with the vendor (who manages purchasing documents) should also be responsible for claims management.

Step 3 : DeliveryOUT OF OUR SYSTEM : the vendor delivers the ordered quantities. Responsible : Vendor

Step 4 : Goods receipt Cf. TBIN02 Process receivingThe goods receipt is performed referring to the purchasing document and purchasing document item, in FLEXNET. The Information is sent automatically to SAP via an Idoc. It increments the vendor consignment stock that we do not own yet. It does not trigger an accounting posting for an expected invoice. Responsible : The warehouse receiver

Step 5 : Consumption Cf. TBPDC04 Consumption declarationWhen the part is taken out from the storage location (General Warehouse or dedicated location), the physical goods consumption is declared in FLEXNET, it is automatically sent to SAP via an Idoc to update SAP stocks and trigger the account postings for an expected invoices.As it is a consignment flow the purchasing variances are established when the goods are consumed, and the variances are calculated with the difference between the purchasing price in the Info-record and the standard price in the master data.Responsible : The warehouse receiver

Step 6 : Consumption’s informationThe consumption information report is performed in SAP through the Consignment liabilities report which lists what should be invoiced by the vendor, based on our consumption declarations for the quantities, and on the info-record for the price. It is run in test mode, so as to obtain the list but not already create the invoice.The frequency depends on the frequency agreed with the vendor : at least once a month, but possibly once a week for example.

Outputs :- Printout : the document is printed, containing the movements list with quantities and values at the price fixed in the info-record. It is sent to the vendor.Responsible : the Accounting department

Step 7 : Billing by the vendorOUT OF OUR SYSTEM : The vendor establishes the invoice based on the declared consumed quantities.Responsible : Vendor

Step 8 : Invoice preparationWhen receiving the vendor bill, the Consignment liabilities report is run once again (as detailed in step 6) but in real mode, it creates an invoice document in our system.Responsible : The accounting department

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3.2 Country or customer specific - process flow and description

3.2.1 Specific country – France

PVB consumptionIn France, the supplier stock is decreased one day before the real consumption in the work-center. There is a transfer between the consignment stock to the work-center, which contains the equivalent of 1 day stock.

Once the PVB rolls are in the work-center stock, they are Sekurit property, even though they were not consumed yet. If the vendor comes to perform an inventory, he will only take into account rolls in the warehouse, not the ones in the work-center.

The invoice will be based on the transferred goods from the consignment stock to our own stock.

4 Business Rules

4.1 Core model – Business rules

PVB is currently managed with a vendor consignment principle for all countries,Remark : particular PVB products such as shaded band, re-extruded PVB are not managed in consignment.

For every product of the general warehouse, it is possible to choose to use purchase orders or a scheduling agreement. It is defined in purchasing master data per product. For regular flows, scheduling agreement will be used.For spot needs, purchase orders will be used.

Vendor’s consignment stocksThe stocks are visible in SAP and FLEXNET, based on the goods receipts and consumed quantities declared.The vendor should also check these stocks regularly.

LanguagesWhichever is the communication language with the vendor, purchasing documents are printed in the language of the purchasing company.

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Warehouse receiver

Goods transfer from Consignment stock to our

own stock

1

Warehouse receiverGoods consumption from our

stock

2

Receiving Plant


WMMBXY


ZPPDC01

Flexnet

Warehouse receiver

Goods transfer from Consignment stock to our

own stock

1

Warehouse receiverGoods consumption from our

stock

2

Receiving Plant


WMMBXY


ZPPDC01

Flexnet


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Flow managed in integration between two systemsUsing a scheduling agreement, the scheduling agreement content is sent to FLEXNET, but the schedule lines are not sent to FLEXNET.When receiving the goods in FLEXNET in reference to a scheduling agreement, there is no control on the schedule lines, i.e. on the delivery date and the quantity.A report is to be defined, in SAP, to compare the required delivery dates / quantities to the real delivery dates / received quantities, to determine if the vendor respects the scheduling agreement requirements.

4.2 Country or customer specific – Business Rules

Not relevant.

5 Key elements of system implementation

5.1 Core model – Key elements of system implementation

5.1.1 Flow managed in 1 system

5.1.1.1 Master data and customizing

Material- On the receiving plant, MRP2 view

- set the Procurement type to F for ‘External procurement. - set the Special procurement type to 10 for ‘Consignment’.These are necessary for the MRP, to create a Purchase requisition or a Schedule line

VendorMaintained as usual.

Info-record- The purchase info-record is to be created before any purchasing document, with a consignment info-

record type. - Beware of the validity period.- The specific values for VAT in the Invoice verification must be indicated.This master data is important for consignment, it is by this way that purchasing variances will be followed between the standard price in the material master data and the purchasing price (in the consignment purchasing document, there is no price indicated).

Scheduling agreementThe scheduling agreement is created in SAP before the MRP calculations, so that it is automatically fed by MRP results.It contains the data of the vendor, the required products with a target quantity. A document type LPA is created, with an item category ‘K’ for consignment.No purchasing price will be brought back from the info-record, the field stays empty. Output : Printout : the scheduling agreement can be printed and sent to the vendor (message type ZNEU). Logistics / Material Management / PurchasingMaster data / Messages / Outline agreementAccess sequence : Output type ZNEU

Condition : Doc type + Purchasing groupCondition : Purchasing doc type + Purchasing organization Condition : Doc type)

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Cf. TBMM13 Purchasing process – Scheduling agreement.

Source-list- The validity period should be correct, not to block MRP calculations,- Fill in the vendor number,- If working with a scheduling agreement, fill in the agreement and agreement item numbers,- Flag the ‘Fix source of supply’ indicator so that the MRP can trigger the ‘purchase’ automatically,- Fill the MRP column with ‘1’ if working with purchase requisitions and purchase orders, with ‘2’ if

working with a scheduling agreement.

5.1.1.2 Steps of the process

Please refer to process flow in part 3.1.1.

Step 1 : MRP calculationsAfter the Material Requirement Planning calculations treatment (to prepare the planning), if a need is foreseen on the product (stock not sufficient for the analyzed period), a procurement is triggered.This calculation treatment is done by a batch scheduled once a week. - If the product is purchased through purchase orders, MRP triggers automatically the creation of a

purchase requisition – document type NB and item category K. - If the product is purchased through a scheduling agreement – document type LPA -, MRP creates or

changes automatically delivery schedules. Responsible : Automatic

Step 2 : Purchase validation- If the product is purchased through purchase orders , the purchase requisition has to be transformed into

a purchase order type NB, still with an item category K. This purchase order does not contain a purchasing price. Transactions ME58 or ME59.Outputs : Printout : The purchase order is printed and can be sent to the vendor.Printing orders (message type ZNEU) are defined per Purchasing Group.Logistics / Material Management / PurchasingMaster data / Messages / Purchase orderAccess sequence : Output type ZNEU


It is sent either by letter or automatically faxed.- If the product is purchased through scheduling agreements , delivery schedules can be checked and if

required, changed manually. Transactions ME38 or ME39Outputs :

Transaction ME84- Logistics / Material Management / PurchasingOutline Agreement / Scheduling Agreement / Generate releasePrintout : the delivery schedule can be printed and sent to the vendor.Printing orders (message type ZLPH) are defined per Purchasing Group.

Logistics / Material Management / PurchasingMaster Data / Messages / Sched. Agreement schedule

Access sequence : Output type ZLPHCondition : Doc type + Purchasing group

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Condition : Purchasing doc type + Purchasing organization Condition : Doc type

It is sent either by letter or automatically faxed.- For spot needs , a purchase order (NB purchase order type, with a consignment item category “ K ” ) can

be created manually in SAP. Transaction ME21.Output : Printout : The purchase order is printed and can be sent to the vendor.Printing orders (message type ZNEU) are defined per Purchasing Group.Logistics / Material Management / PurchasingMaster data / Messages / Purchase orderAccess sequence : Output type ZNEU


It is sent either by letter or automatically faxed.Responsible : Purchasing department

Step 3 : DeliveryOUT OF OUR SYSTEM : the vendor delivers the ordered quantitiesResponsible : Vendor

Step 4 : Goods receiptGoods receipt declaration referring to the purchasing document : with transaction ZB01, a movement type 101 is used. It increments the vendor consignment stock that we do not own yet. It does not trigger an accounting posting for an expected invoice. The consignment stock is managed and isolated thanks to the Special Stock indicator ‘K’, in SAP this stock is a non valuated stock.It is the supplier consignment stock which is impacted. We have as many consignment stocks as we have different consignment suppliers.Responsible : The warehouse receiver

Step 5 : ConsumptionPhysical goods consumption : a goods issue is posted with transaction MB1A, indicating the ‘K’ special stock and the vendor account number (movement type 291 K-on cost center). Responsible : The warehouse receiver

Step 6 : Consumption’s informationThe vendor invoice is prepared in SAP using the Consignment liabilities report – transaction MRKO – in test mode. This report is automatically printed and sent to the vendor.A message type KONS must be maintained in order to print the document. To make this message being automatically triggered, master data are maintained by the CDC with menu path :

Logistics/Material Management/Invoice verification/Invoice verificationMessage/Conditions records/Create Transaction MRM1

- Output Type ‘KONS’- Condition access : Company code

Responsible : Accounting department

Step 7 : Billing by the vendor

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OUT OF OUR SYSTEM : the vendor establishes the invoice based on the declared consumed quantities.Responsible : Vendor

Step 8 : Invoice preparationThe vendor invoice is prepared in SAP using the Consignment liabilities report – transaction MRKO – in real mode.Responsible : The accounting department

5.1.2 Flow managed in integration between two systems

Please refer to process flow in part 3.1.2.

5.1.2.1 Master data and customizing

Material- On the receiving plant, MRP2 view

- set the Procurement type to F for ‘External procurement. - set the Special procurement type to 10 for ‘Consignment’.These are necessary for the MRP, to create a Purchase requisition or a Schedule line

Material data are sent to FLEXNET via an Idoc type ZMATMAS.

VendorMaintained as usual. Vendor data are sent to FLEXNET via an Idoc type ZCREMAS.

Info-record- The purchase info-record is to be created before any purchasing document, with a consignment info-

record type. - Beware of the validity period.- The specific values for VAT in the Invoice verification must be indicated.This master data is important for consignment, it is by this way that purchasing variances will be followed between the standard price in the material master data and the purchasing price (in the consignment purchasing document, there is no price indicated). In this master data the specific values for managing the VAT must be indicated.

Scheduling agreementThe scheduling agreement is created in SAP before the MRP calculations, so that it is automatically fed by MRP results.It contains the data of the vendor, the required products with a target quantity. A document type LPA is created, with an item category ‘K’ for consignment.Output : - Printout : ZNEULogistics / Material Management / PurchasingMaster data / Messages / Outline agreement :Access sequence : Output type ZNEU

Condition : Doc type + Purchasing groupCondition : Purchasing Doc type + Purchasing organization Condition : Purchasing Doc type

- Idoc : an Idoc type BLAORD sends the scheduling agreement to FLEXNET. (In order to create this Idoc, a specific message named XNRC must be managed, the master data should be maintained by the CDC : Logistics / Material Management / PurchasingMaster data / Messages / Purchase order or Outline agreement :Access sequence : Output type XNRC

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Condition : Doc type + Purchasing groupCondition : Doc type + Purchasing organization Condition : Doc type)

Cf. TBMM13 Purchasing process – Scheduling agreement.

Source-list- The validity period should be correct, not to block MRP calculations,- Fill in the vendor number,- If working with a scheduling agreement, fill in the agreement and agreement item numbers,- Flag the ‘Fix source of supply’ indicator so that the MRP can trigger the ‘purchase’ automatically,- Fill the MRP column with ‘1’ if working with purchase requisitions and purchase orders, with ‘2’ if

working with a scheduling agreement.

5.1.2.2 Steps of the process

Step 1 : MRP calculationsAfter the Material Requirement Planning calculations treatment (to prepare the planning), if a need is foreseen on the product (stock not sufficient for the analyzed period), a procurement is triggered.This calculation treatment is done by a batch scheduled once a week. PVB is purchased through a scheduling agreement – document type LPA -, MRP creates therefore or changes automatically delivery schedules. Responsible : Automatic

Step 2 : Purchase validation- The product is purchased through scheduling agreements , delivery schedules are checked and if

required, changed manually. Transactions ME38 or ME39Outputs : Transaction ME84- Logistics / Material Management / PurchasingOutline Agreement / Scheduling Agreement / Generate releasePrintout : the delivery schedule can be printed and sent to the vendor. It is sent either by letter or automatically faxed.

Printing orders (message type ZLPH) are defined per Purchasing Group.Logistics / Material Management / PurchasingMaster Data / Messages / Sched. Agreement scheduleAccess sequence : Output type ZLPH

Condition : Doc type + Purchasing groupCondition : Purchasing doc type + Purchasing organization Condition : Doc type

- For spot needs , a purchase order can be created manually in SAP. (NB purchase order type, with a consignment item category “ K ”) Transaction ME21.Output : Printout : a message type ZNEU is created, to trigger the purchase order printout. It then can be sent to the vendor. Printing orders (message type ZNEU) are defined per Purchasing Group.It is sent either by letter or automatically faxed.To make ZNEU messages automatically be triggered, master data are maintained by the CDC, with menu path

Logistics / Material Management / PurchasingMaster data / Messages / Outline agreement :

Access sequence : Output type ZNEU

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Condition : Doc type + Purchasing groupCondition : Purchasing Doc type + Purchasing organization Condition : Purchasing Doc type

Idoc : a message type XNRC is created, to trigger the Idoc type ZORDERS_RCV sent to FLEXNET.To make XNRC messages automatically be triggered, master data are maintained by the CDC, with menu path

Logistics / Material Management / PurchasingMaster data / Messages / Outline agreement :

Access sequence : Output type XNRCCondition : Doc type + Purchasing groupCondition : Purchasing Doc type + Purchasing organization Condition : Purchasing Doc type

Responsible : Purchasing department

Step 3 : DeliveryOUT OF OUR SYSTEM : the vendor delivers the ordered quantitiesResponsible : Vendor

Step 4 : Goods receiptThe Goods receipt is declared in FLEXNET. Then, an Idoc type WMMBXY is sent to SAP to update the stocks, triggering a 101 movement type. The object of this Idoc is to update globally the SAP material stock with the quantities received. It increments the vendor consignment stock that we do not own yet. It does not trigger an accounting posting for an expected invoice. It is the supplier consignment stock which is impacted. It’s possible to have different stock if we have different suppliers on consignment.In SAP, the consignment stock is managed and isolated thanks to the Special Stock indicator ‘K’, in SAP this stock is a non valuated stock.Responsible : the warehouse receiver

Step 5 : ConsumptionThe goods consumption of the product is done with the scanner in FLEXNET with the help of the label created in the previous step. In order to update the stocks in SAP, a first Idoc makes a movement type 411 ’K’ sends to SAP the supplier code (to leave the consignment), and a second Idoc makes a movement type 261. The Idoc type sent to SAP is ZPPDC01. It updates SAP stocks for the concerned vendor and triggers the accounting posting for an expected invoiceResponsible : the warehouse receiver

Step 6 : Consumption’s informationThe vendor invoice is prepared in SAP using the Consignment liabilities report – transaction MRKO – in test mode. This report is automatically printed and sent to the vendor.A message type KONS must be maintained in order to print the document. To make this message being automatically triggered, master data are maintained by the CDC with menu path :

Logistics/Material Management/Invoice verification/Invoice verificationMessage/Conditions records/Create Transaction MRM1

- Output Type ‘KONS’- Condition access : Company code

Responsible : Accounting department

Step 7 : Billing by the vendorOUT OF OUR SYSTEM : the vendor establishes the invoice based on the declared consumed quantities.

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Responsible : Vendor

Step 8 : Invoice preparationThe vendor invoice is prepared in SAP using the Consignment liabilities report – transaction MRKO – in real mode. Responsible : Accounting department

5.2 Country or customer specific – Key elements of system implementation

5.2.1 Country specific – France

PVB consumptionIn France, the supplier stock is decreased one day before the real consumption in the work-center. There is a transfer between the consignment stock to the work-center, which contains the equivalent of 1 day stock.Once the PVB rolls are in the work-center stock, they are Sekurit property, even though they were not consumed yet. If the vendor comes to perform an inventory, he will only take into account rolls in the warehouse, not the ones in the work-center.

Step 1 : Transfer from the consignment stock to a Sekurit stock : MB1BLogistics / Material Management / Inventory ManagementGoods movement / Transfer posting Movement type 411 Special stock K

Step 2 : Consumption from own stockCf. TBPDC04 Consumption declaration

5.3 Summary

Flow in 1 system : SAP

Action Transac. / data CommentPre-requisites- Material- Vendor- Info-record- Scheduling agreement- Source-list

MM03XK03ME13ME33LME03

Display material masterDisplay vendor masterDisplay purchasing info-recordDisplay Scheduling AgreementDisplay Source-list

Step 1 : MRP calculationStep 2 : Purchase validation- if using Purchase orders

- if using a Scheduling agreementPrinting of the schedules

- spot needs

ME58 or ME59

ME38

ME84ME21

Transform a purchase requisition into a purchase order (purchase order type NB with consignment item category K)Maintain the delivery schedule

Print the delivery scheduleCreate a purchase order (purchase order type NB with consignment item category K)

Step 3 : DeliveryStep 4 : Goods receipt ZB01 Movement type 101 Step 5 : Consumption MB1A Movement type 201 K-on cost center or 261 K-on internal orderStep 6 : Consumption’s information

MRKO Consignment liabilities report in test mode

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Step 8 : Invoice preparation MRKO Consignment liabilities report in real mode

Flow in integration between two systems : SAP and FLEXNET

Action Transac. / data CommentsPre-requisites- Material- Vendor- Info-record- Scheduling agreement

- Source-list- Quota-arrangement

MM03XK03ME13ME33L

ME03MEQ3

Display material master ; sent to FLEXNET via Idoc ZMATMASDisplay vendor master ; sent to FLEXNET via Idoc ZCREMASDisplay purchasing info-recordDisplay Scheduling Agreement ; sent to FLEXNET via Idoc BLAORDDisplay Source-listDisplay Quota-arrangement

Step 1 : MRP calculationStep 2 : Purchase validation- if using a Scheduling

agreementPrint the schedules

- spot needs

ME38

ME84ME21

Maintain the delivery schedule

Print the delivery scheduleCreate a purchase order (Purchase Order type NB with consignment item category K)

Step 3 : DeliveryStep 4 : Goods receipt Goods receipt in

FLEXNETIdoc type WMMBXY sent to SAP

Step 5 : Consumption Consumption in FLEXNET

Idoc type WMMBXY sent to SAP

Step 6 : Consumption’s information

MRKO Consignment liabilities report in test mode

Step 8 : Invoice preparation MRKO Consignment liabilities report in real mode

IMMM008-Partner determinationIMMM023-Number ranges for purchase ordersIMMM025-Message typesIMMM026-Layout sets per message typeIMMM027-Message determination schemasIMMM028-Partner roles per message type

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6 Organizational roles and impacts

- The PVB is managed in FLEXNET (PVB is almost the only type of product purchased with consignment), the general warehouse will be asked to use both SAP and FLEXNET according to the product.

- The PVB is managed in FLEXNET, an organization should be defined to analyze stocks comparisons between FLEXNET and SAP, and to manage the Idocs between SAP and FLEXNET.Cf. TBIN10 Stock comparison WMS-SAP

7 Application specific development requirements

There is a specific development to compare the stocks on the 2 systems in order to have always the same level of stocks between the 2 systems.

8 Key volume & performance indicators

Spain : - number of consignment purchasing documents items : 19- number of goods consignment receipts : 93- number of goods consumption : 99As it is only used by Spain, those metrics concern a 6 months period of time : 01.01.02 to the 12.06.02.

9 Added value for the Business and economical considerations

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Date post:	16-Jan-2016
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ACO MM TBP 20 Purchasing Process - Consignment-V4sb

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