SAP R/3 integration model

R/3R/3Client / ServerClient / Server

ABAP/4ABAP/4

COCOControllingControlling

AMAMSpráva in-Správa in-

vest. majetkuvest. majetku

PSPSProjekčníProjekčnísystémsystém

WFWFWorkflowWorkflow

ISISOdvětvováOdvětvová

řešenířešení

HRHRLidskéLidskézdrojezdroje

SDSDOdbytOdbyt

PPPPPlánováníPlánování

výrobyvýroby

QMQMManagementManagement

jakostijakosti

FIFIFinanč-Finanč-nictvínictví

PMPMÚdržbaÚdržba

MMMMMateriálovéMateriálové

hospodářstvíhospodářství

MM presentation - agenda

1. Material master records – summary

2. Material valuation

3. MM account finding procedure

4. CGS MM processes in detail

SAP R/3 basic organization structure logic

Client MTP 400

Company codeP001

Company codeDE01

Company codeGB01

Plant 1 (Praha)

Plant 2 (Zlín)

Plant 1 (Praha)

Plant 2 (Zlín)

Plant 4 (Otrokovice)

Storage location 1

Storage location 2

SAP R/3 organization structure status

Plant Plant description Company code1 Závod Praha P001

2 Výrobní úsek Zlín P001

4 Závod Otrokovice P001

AT01 CGS Reifenfertrieb GmbH AT01

DE01 CGS Reifen Deutschland GmbH DE01

ES01 Ceska Gumarenska Neumáticos Ispana ES01

FR01 CGS Pneus France FR01

GB01 CGS TyresUK Ltd. GB01

IE01 Mitas Ireland IE01

IT01 CGS Pneumatici Italia IT01

Material master records 1

Material types Description EN IntervalROH Raw materials 1000000000000 to 9999999999999 (ext.)HAWA Trading goods 1000000000000 to 9999999999999 (ext.)HALB Semifinished products 1000000000000 to 9999999999999 (ext.)FERT Finished products 1000000000000 to 9999999999999 (ext.)DIEN Services 10000 to 99999 (int.)ERSA Spare parts 100000 to 999999 (int.)FHMI Prod. resources/tools 100000 to 999999 (int.)KMAT Configurable materials AAAAAAA to ZZZZZZZ (ext.)ZRM Overhead material 100000 to 999999 (int.)VERP Packaging 100000 to 999999 (int.)PFRT Finished products 1000000000000 to 9999999999999 (ext.)

Material master records 2

Numbering convention of materials:

4 0 0 6 0 0 4 6 7 0 0 0 0

Code of the production plant

Material type specification

0 – product

1 – raw material

2 - intermediates

3 – trad.goods

Quality level

1 – OE

0 - RE

Origin specification of the trading goods

Batch management – Mitas tyres

Batch number Quality level Description1 1A First quality

2 DA DA quality

3 N Not determined

8 V Sell-out

9999999999 Z Waste

Mitas tyres:

Batch management– Continental tyres

Batch number Quality level Description

1A OE Original equip.3 N Not determined

Batch number Quality level Description1 RE Replacement2 DA DA quality

2B 2B 2B quality3 N Not determined8 V Sell-out

9999999999 Z Waste

Continental OE tyres

Continental RE tyres

Material valuation 1

• Valuation area = PLANT

• Valuation level = Material

Material valuation 2

4006004600000

9,5-32 6PR TT FARMER AC

Plant 4

Stor.loc. 4701

Batch no. 1

CZK 1969,28

S price

Plant 4

Stor. loc. 4204

Batch no. 99..

CZK 1969,28

S price

Plant DE01

Stor. Loc. DE02

Batch no. 1

EUR 65,32

V price

Material pricing methods Standard price

Material pricing methods Moving average price

Material pricing methods Example of the V price

Account finding procedure 1

Products

Tradinggoods

Material types

V001

V002

Z001

Z002

Val. class

BSX

(Stock

account)

GBB

(Mater.

Mov.)

WRX

(GR/IR clearing)

…..

Z003

Operation

Plant 1

Plant GB01

Val.area

123100

79100000

Debit Credit

123100

Account finding procedure 2The most important operations in MM

Inventory posting 79100000

Vendor – acc. payable 16400000

GR/IR clearing account 19110000

Price differences 23150000 / 28150000

Revaluation 23250000 / 28250000

Initial stock balance 99999999

Goods issue for sales 40000000

Physical invent. diff. 23300000 / 28300000

Scraping 89010900

GR w/o purchase order 19115000

Main MM processes

General

• Local stock replenishment process• Warehouse operations

DE only

• External procurement• Services• Office supplies• Other

• Kits handling

Local stock replenishment process

Local stock replenishment process

Step 1 – what should be ordered to Italy ?

Step 2 – create purchase order (PO) in Italy

Step 3 – transfer PO into sales order in CZ

Step 4 – sales activities in CZ

Step 5 – post goods receipt to the warehouse in Italy

Step 6 – post vendor invoice in Italy

Local stock replenishment processStep 1 – what should be ordered ?

No SAP standard automatic MRP procedure applied.

Plant level - transaction ZSTOCK comparing actual and safety stock

Storage location level – manual procedure

Future:

• keep the current procedure

• expand ZSTOCK to be used on the stor. loc. level

• implement SAP standard MRP based on MRP Areas

Local stock replenishment processStep 2 – Create stock transfer order

Future:

• Keep the standard solution !!!

• Maintain MTP prices properly (new ZMTP transaction available).

• Standard SAP transaction ME21N – Create purchase order

• ST (Stock Transfer) order type should be used

Local stock replenishment processStep 3 – Transfer PO into SD order

Future:

• Could be expanded to be used for stock transfer between foreign offices.

• Small adjustments acc. to the requirements of the users.

In order to minimize manual effort transaction ZTRANS has been developed. Basic features:

• Customer program using standard SAP objects and procedures (BAPI, authorization concept)

• Creates SD orders in production plants based on the ST orders from foreign offices

• Serves as the replenishment process monitor

Local stock replenishment processStep 4 – Sales activities in CZ

Future:

• To be discussed in SD session

Standard SD procedures in production plants.

Results:

• Order confirmation printed and delivered

• Invoice posted and printed

• Delivery note containing original ST number

• Tyres on the road

Local stock replenishment processStep 5 – GR to the local warehouse

Future:

• Could Inbound Deliveries be helpful ?

• Standard SAP transaction MIGO

• Stock transfer order number must be known

• A copy of the delivery note must be available

Result:

• Material document saved and printed

• Accounting document posted

Local stock replenishment processStep 6 – Invoice receipt

Future:

• Keep the standard !!!

• Standard SAP transaction MIRO

• Stock transfer order number must be known

• A copy of the invoice must be available

Result:

• Material document saved

• Accounting document posted

Main MM processes

General

• Local stock replenishment process• Warehouse operations

DE only

• External procurement• Services• Office supplies• Other

• Kits handling

Warehouse operations 1

Goods receipt:

1. Goods receipt for purchase order (mov.type 101)

2. Initial stock entry (mov.type 561)

3. Return delivery from customer (mov.type 651)

4. Positive physical inventory differences (mov. type 701)

5. Goods receipt without purchase order (mov.type 501)

Warehouse operations 2

Goods issue:

1. Goods issue for sales (mov.type 601)

2. Scraping (mov.type 551)

3. Negative physical inventory differences (mov. type 702)

Warehouse operations 3

Transfer posting

1. From storage location to stor. loc. in one step (m.t. 311)

2. From storage location to stor. loc. In 2 steps (m.t. 313/315)

3. From storage location to storage location using the Stock Transport Order (m.t. 351/101)

4. From material number to material number (m.t. 301)

5. From batch number to batch number (m.t. 301)

6. From returns of customer to the own stock (m.t. 453)

Main MM processes

General

• Local stock replenishment process• Warehouse operations

DE only

• External procurement• Services• Office supplies• Other

• Kits handling

Main MM processes

General

• Local stock replenishment process• Warehouse operations

DE only

• External procurement• Services• Office supplies• Other

• Kits handling

Kits handling