Day in a Life Manufacturing

SAP BEST PRACTICES DEMONSTRATION SCRIPTDAY-IN-THE-LIFE SCENARIO

MANUFACTURING

Demo ScriptDay-in-the-life Manufacturingfor SAP Best Practices Baseline Packages V5.600 / V1.603

PurposeThis business cycle overview represents single steps of make-to-stock, procurement-to-pay, and order-to-cash scenarios. The day in the life begins with the identification of demand for a product. After starting with production planning the system notices missing parts and automatically triggers the purchasing and production. After checking the vendor line items the invoices are paid by the automatic payment run. Having all materials for the production process in stock the shop floor manufactures the planned number of finished goods for the warehouse. A sales order is created. The goods are being delivered and charged to the customer. The open items of the customer are paid by an incoming payment. Finally the sales figures are checked via a cumulative income statement and the profitability is analyzed.

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QuestionnaireDear <CUSTOMER>,

We would like to demonstrate the SAP system in a manner that reflects your business. To that end, we would like to get names and basic data that your business uses on a daily basis. In the fields below, please provide us with the following information:

1. Can you give us names and locations for two of your manufacturing plants?

PLANT NAME CITY ZIP

1000 Production Plant1100 Production Plant

2. What are two typical materials descriptions for finished goods that you produce in plant 1000?

MATERIAL MATERIAL DESCRIPTION COMMENT

F126 FIN126,MTS_DI,PD,Batch_Fifo,SerialNo1 Finished Good Make-to-StockH22 Trading Good, Reorder Point,Batch_ExpD Trading Good

3. Can you provide us two vendor names (and their locations) who deliver complementary raw materials to manufacture finished good F126 listed above?

VENDOR NAME 1 STREET CITY STATE ZIP

300000 Vendor Domestic 00 Hauptstrasse Walldorf 08 69190300005 Vendor Domestic 05 Hauptstrasse Walldorf 08 69190

4. Can you provide us two raw materials descriptions that are provided by vendor 300000 to manufacture finished good F126?

VENDOR MATERIAL MATERIAL DESCRIPTION

300000 R16 RAW16,PD300000 R17 RAW17,PD

5. Can you provide us one raw material description that is provided by vendor 300005 to manufacture finished good F126?

VENDOR MATERIAL MATERIAL DESCRIPTION

300005 R18 RAW18,PD

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6. Can you provide us the raw materials descriptions that are necessary to manufacture finished good F126?

MATERIAL MATERIAL DESCRIPTION

R20 RAW20,PDR27 RAW27,PD,PackagingBoxS21 SEMI21,PD,RepetitiveManuf.S23 SEMI23,PD,SubcontractingS25 SEMI25,PD,ExternalProcurementS124 SEMI124,PD,SubassemblR120 RAW120,PD,QualityManagedR122 RAW122,PD,Batch-Fifo,ProcureImportR128 RAW128,PD,Consignment

7. Can you provide us three customer names (and their locations) who order the finished good F126?

CUSTOMER NAME STREET CITY STATE ZIP

100000 Customer domestic 00 Hauptstrasse Walldorf 08 69190100010 Customer Euro Trade Portugal Avenida da

Liberdade 700Lisboa 1100

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Personalize SAP NetWeaver Business ClientCompany Logo

Company logo (*.png): C:\Temp\logo.png

Company HomepageCompany homepage: http://www.sap.com

Personalize the Print Form LogoExample - Print Form Logo, Baseline DE

Path and file name (*.bmp): C:\Temp\smb40_leaf.bmpGraphic type: BCOLDescription: printform logoTechnical file name: /SMBA0/AA_LEAF

Example - Print Form Logo, Baseline USPath and file name (*.bmp) C:\Temp\smb40_leaf.bmpGraphic type: BCOLDescription: printform logoTechnical file name: /SMB40/LEAF

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Prerequisites

Ensure that the following tasks are done:

Assigning User Roles Use To run the following processes check with transaction SU01 -> roles that the following single role is assigned to the user. This role can be downloaded from the SAP Best Practices area in the SAP Service Marketplace: http://service.sap.com/bestpractices To upload the role into the SAP system call transaction PFCG -> Menu -> Role -> Upload

ROLE ROLE NAME

Z_SAP_AIO_BC_DEMO_MANUFACT Demo Role for Day-in-the-Life Manufacturing

Check booking periodCall transaction MMPV to check that the current period is open for booking. If required, close the previous booking periods month by month.

Check standard price for materialsThe Costing Run has been performed successfully to have a standard price estimate for the materials. Check in transaction MM03 – Material master, view “Costing 2” if there is a standard price estimate for the below materials. Otherwise call transaction CK40n to perform the costing run. Please refer to building block 154 for further details.

Check material stockCall transaction MMBE via the SAP NetWeaver Business Client Menu -> Planning and check the following quantities are available in the warehouse in storage location 1050:

QUANTITY MATERIAL (RAW MATERIAL) DESCRIPTION

> 100 R20 RAW20,PD> 100 R27 RAW27,PD,PackagingBox> 100 S21 SEMI21,PD,RepetitiveManuf.> 100 S23 SEMI23,PD,Subcontracting> 100 S25 SEMI25,PD,ExternalProcurement> 100 S124 SEMI124,PD,Subassembl> 100 R120 RAW120,PD,QualityManaged> 100 R122 RAW122,PD,Batch-Fifo,ProcureImport>100 R128 RAW128,PD,Consignment

If there is not enough stock available call transaction MB1C via Purchasing -> Post Initial Stock with the movement type 561, plant 1000 and storage location 1050 to post the initial stock for the above materials.

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Assigning User Parameter “CORUPROF” to User Master Record Use In this step you assign a profile to your user which defines the layout for the confirmation screen for single screen entry.Procedure

1. Call transaction SU01

2. On the User maintencance: initial screen, make the following entry:

Field name Description User action and values Comment

User Enter your SAP-User

3. Choose Change.

4. On the Maintain User screen, choose the Parameters tab page and make the following entries:


Parameter ID CORUPROF

Parameter Value

YBDI02

5. Save your entries.

Activate PDF Printing for SAP Netweaver Business ClientRefer to SAP note 1069540 to enable the PDF printing functionality within the SAP NetWeaver Business Client.

Optional: Deactivate or Activate Serial Number Requirement for Finished Product UseThe process runs with serial numbers by default. If you don’t want to execute serial number requirement for the finished product or if you want to activate the serial numbers again, you have to carry out the following steps.Procedure

1. Call transaction MM02

2. On the Change Material: initial screen, make the following entry and choose Enter:


Material F126 Finished Good MTS

3. On the Select View(s) Screen, select the Work scheduling view and choose Enter.

4. On the Organizational Levels screen, make the following entry and choose Enter:


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http://service.sap.com/sap/support/notes/1069540


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Plant 1000 Production Plant

5. On the Work scheduling tab page, make the following entries.


General Data

Serial no. Profile Remove existing value or add value „YBP1“ is you want to activate serial numbers again


ResultThe serial number requirement for finished product is removed or activated again.

Optional: Remove Batch Management Requirement for Finished ProductUse

The process runs with batch management by default but that batch management can be deactivated for this process.

If you don’t want to run the process with batch management for the finished product or if you want to activate the batch management again, you have to carry out the following steps.

Procedure

1. Call transaction MM02

2. On the Change Material: initial screen, make the following entries and choose Enter:



3. On the Select View(s) Screen, select the Work scheduling and the MRP3 view and choose Enter.

4. On the Organizational Levels screen, make the following entry and choose Enter



5. On the Work scheduling tab page, make the following entry:


Batch management

W remove indicator or select indicator again

Deactivate or activate Batch

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indicator management

The batch management requirement cannot be removed for the following reasons:

Stocks with batches already exist at plant level

SD documents exist (orders or deliveries) that have not yet been processed or that have been processed only in part.

6. On the MRP3 tab page, make the following entry:


Availability check

For deactivation: 02

For activation: CH


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Processes

Overview The day in the life actually starts with the identification of demand as part of sales planning for a product which is produced as a make-to-stock (MTS) material. After starting with production planning the system notices missing parts and automatically triggers the creation of purchase requisitions. After the missing raw materials are purchased and the invoices are entered into the system the shopfloor will produce the finished goods for the warehouse. The finished goods can now be sold and delivered based on a sales order from the customer.

Planning1. You review the current stock situation and determine that you do not have enough stock. As a result, you create

planned independent requirements and execute material requirements planning.2. Once you have done your MRP run, you convert the planned orders into production orders, and generate purchase

requisitions.Purchasing

3. Once you have the purchase requisitions, you assign them to vendors and create purchase orders.4. The vendor has delivered the materials, so you then enter a goods receipt based on the purchase order.5. You then enter the vendor invoice, which will be paid later.

Production6. At this point, you are ready to manufacture the goods. You move the materials from their various storage locations

to the production location and create production orders.7. After production, the goods are moved to and received by the warehouse.

Sales8. A customer wants to purchase goods, and the salesperson enters a sales order.9. A delivery order is created, and the goods are picked and shipped to the customer.

Financials/Billing10. Once the goods are shipped, you bill the customer. 11. The customer sends a payment, which you post to the system.12. Finally, you analyze the profitability.

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Process StepsRun the SAP NetWeaver Business Client

1. From your desktop, double-click the SAP NetWeaver Business Client icon.2. On the Connection <SYSTEM> dialog box, enter your password and choose the Log on button.

Example: For running the demo script within the SAP Best Practices online demo system for the Baseline V5.600 / V1.603 please use the following access data:- User: demomanu- password: demo2win

For this demonstration, we have set up a demo role. The role-based navigation is displayed on the left side.

Value

The SAP NetWeaver Business Client can be modified to include customer-specific branding. Additionally, user-specific homepages can be assigned to the role folders. These homepages can contain graphics, pointers to web pages, PowerPoint graphics, and eLearnings that guide the end-users.

Planning

Review Initial Stock Situation UseYou need to take a quick look at the stock overview to determine what you currently have in stock. Occasionally during this demonstration, you will look at this report to show different movement in the storage locations in different scenarios.

Procedure1. Access the transaction choosing the following option:

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Planning ® Stock Overview

2. Click the button Search Criteria, enter the material F126 and choose Apply to get an overview about the available

finished products. Repeat the step for some other raw materials e.g. R16 or S23.3. Choose Home to return to the navigation menu. The session with the Stock overview remains open and can be

returned to by choosing the Stock Overview button in the Session Management area.

Value

The content, look, and feel of the reports can be personalized for the end-user’s needs. For example, you can set up specific views with different columns, number of rows to display, and additional calculations to be performed.

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Create Planned Independent Requirements

UseIn this activity, you will enter planning information for material F126 (FIN126,MTS-DI,PD,Batch-Fifo,SerialNo). You expect to sell number of units in this month.


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Planning -> Create Planned Independent Requirements

2. Make the following entries then choose Enter:

Field User action and values Description

Material F126 FIN126,MTS_DI,PD,Batch_Fifo,SerialNo


3. In the Planning table, make the following entries:

Field User action and values

<Current month> <Enter a number which is greater than the available stock for the material F126>

4. Choose Save. Planning data are created.

Execute Material Requirements Planning

UseThis activity will schedule a Material Requirements Planning (MRP) run as a background batch job. This process will generate a planned order.


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Planning ® MRP Run in Batch

2. Select the variant Y1000 - MRP Plant 1000 and choose the button Start immediately3. To display the current status, choose the Display Scheduling button and choose the Update button until the status

is changed to Finished.

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Convert Planned Order to Production Order

UseThis activity converts the planned order to a production order. During this process, the system will automatically check if we have the required materials in stock. If we do not, the system automatically creates purchase requisitions.

Value

This step displays object-based navigation, called Power Lists. Power Lists present predefined context-sensitive information, such as a list of open sales orders. Power lists can be customized to meet the end-users’ needs.


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Planning

2. If the search criteria are not visible choose the button Search Criteria3. In the field material enter F126 and choose the button Apply.4. Select the first planned order for material F126 (FIN126,MTS_DI,PD,Batch_Fifo,SerialNo).5. Choose the Convert to Production Order button.6. Make a note of the Production Order number: __________

Evaluation of the Stock/Requirement List

UseAfter the requirements planning, the MRP run and the conversion of the planned orders into production orders you can analyze the current stock and requirement situation both for the finished goods and the required raw materials including generated planned orders, production orders, sales orders, and purchase requisitions.


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Planning -> Display Stock/Requirements Situation

2. On the Stock/Requirements List: Initial Screen, enter the following data and choose Enter:

Field name Description User Action and Values Comment



The list displays the current stock situation and all planned independent requirements, planned orders, production orders, assigned customer orders

3. Repeat the steps for the raw materials R16, R17 and R18 to see the created purchase requisitions for the raw materials required to manufacture the semi-finished product S22.

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Purchasing

Assign Purchase Requisitions and Create Purchase Order

UseAfter the MRP run from the previous step ran, the system generated purchase requisitions for the missing materials R16 (RAW16,PD), R17 (RAW17, PD) and R18(RAW18,PD) These purchase requisitions have to be converted to purchase orders.


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Purchasing ® Assign and Process Purchase Requisitions

1. Make the following entries:


Material from R16

Material to R18

Assigned Purchase Requisitions

Select the checkbox

2. Choose Execute.3. The system displays purchase requisitions for vendors. Select the requisition lines for the materials R16, R17, and

R18 and choose Assign Automatically. 4. Choose Save.5. Choose the button Assignments and select one line with the vendor 300000 and choose the button Process

Assignment to create a purchase order. 6. Confirm the upcoming dialog window. 7. In the Document overview, select Open requisitions, then drag and drop the open requisitions into the basket.8. Choose Save.9. Repeat the steps 5 – 8 for the vendor 300001 if a purchase requisition is created for material R18.

Goods Receipt for Created Purchase Order

UseThe vendor has delivered the ordered material. You must enter a goods receipt based on the purchase order.


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Purchasing ® Goods Receipt

3. Choose Goods Receipt and Purchase Order.

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4. Make the following entries and choose Enter:


Purchasing Document

<purchase order number from previous step>

5. Mark the field “OK” for all of the materials.6. Choose Post. Make a note of the document number: __________7. Repeat the steps 4 – 6 if a purchase order for material R18 was created in the previous step.

At this point, you can take a look at the stock overview situation by choosing the Stock overview button in the Session Management area. Once the screen displays, choose Refresh.

Enter Incoming Invoice

UseIn this activity, you enter the vendor invoice. After this activity is complete, the logistics invoice is posted. This results in open items for our vendors. These open items will be paid later during the automatic payment run during the Financials phase. Because the amounts of the invoices do not exceed configured amounts, we do not have to go through the approval process.


SAP NETWEAVER

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Purchasing ® Enter Incoming Invoice

2. Make the following entries:


Company Code 1000

Invoice Date <current date>

Tab “PO reference” Purchase order

<purchase order number from previous step>

3. Choose Enter4. On the Basic Data tab, select the Calculate Tax checkbox and choose Enter.5. In the Amount field, enter the invoice amount which is shown in the field Balance, 6. Choose Post. Make a note of the document number: __________7. Repeat the steps 2 – 5 if a goods receipt for material R18 was posted in the previous step.

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Production

Material Staging (Return to Production Run)

UseThis activity pulls the materials required for production orders from various storage locations, for example from the stores storage location (1050) to the shop floor storage location (1020) for the production.


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Production ® Pull Materials to Shop Floor

2. Make the following entries, then choose Enter:


Plant 1000

3. Choose the Production/Process Orders tab.4. Make the following entries, then choose Enter:


Order <production order number from earlier step>

5. Choose Execute.6. Select all or mark the rows you want to select.7. Choose button Replenishment Proposals. For the selected rows, the quantity staged is set to just the quantity

required to satisfy the missing quantity. The status light changes from red to yellow.8. Choose the button Replenishment Elements.9. You will perform a mass change for replenishment elements. 10. In the Section Replen. Elements choose Select All.11. Choose Mass change.

12. In the dialog box, make the following entry, then choose Enter:


Replen. stor. locatn. 1050

13. If you want to stage the material R122, select a batch number using the F4-Help in the line for this material14. In the Section Replen. Elements choose Select All.15. Choose Stage. If staging from a replenishment storage location to an issue storage location is possible for a

replenishment element, that element will display a green flag in the Status column.16. Choose Save. Make a note of the document number: __________

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At this point, you can take a look at the stock overview situation by choosing the Stock overview button in the Session Management area. Choose Refresh. The system will display the amount of stock. The stock is now moved from the warehouse storage location (1050) to the shop floor storage location (1020).

Maintain Production Orders

Use In this activity, the system will maintain Production Orders.

Value

This step also makes use of the Power List.

Procedure1. To start the functionality select the single steps mentioned below:

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Production ® Maintain Production Orders

2. On the initial screen, select the order number from the previous step and choose the button Process Order and then Release Orders. The order numbers are displayed on the top of the page.

Goods Issue from Warehouse UseThe released production order is now ready for picking. The warehouse manager selects the picking list for the production order and perform the goods issue for the required raw materials and components from the warehouse.


SAP NETWEAVER

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Production ® Goods Issue from Warehouse

2. On the Picking List: Initial Screen, make the following entries:

Field name User Action and Values

Profile 000002

Production order <production order number from previous Steps>

3. Confirm your entries and choose Execute to start the report.

4. Select all lines and choose Picking. A list of all the selected reservations is displayed.

If the batch management is activated you have to carry out the batch determination for the batch managed Raw material R122 by selecting the line with material R122 and choosing Batch Determination, then choose the button Copy on the next screen.

5. Choose Save to post the goods movements.

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Goods Receipt into Warehouse UseIn this activity, the warehouse receives the produced pieces of finished goods.


SAP NETWEAVER

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Production ® Goods Receipt into Warehouse

2. Select Goods receipt and choose Order.3. In the Order number field, enter the production order number from the previous step, then press Enter.4. Mark the field “OK” for the item.5. Choose Post. Make a note of the document number: __________

At this point, you can take a look at the stock overview situation by choosing the Stock overview button in the Session Management area. In the Stock Overview select the material F126 and choose Apply or Refresh. The available stock in the shipping storage location (1030) is now increased by the number of the produced materials.

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Sales

Sales Order Entry UseIn this activity, the sales clerk receives an order from a customer for the manufactured goods.


SAP NETWEAVER

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Selling

2. Choose Create Sales Order.3. Make the following entries:

Field User action and values Notes

Sold-to Party 100000 or 100010

PO Number <optional purchase order number >

Order reason Excellent price

Material Number

F126 FIN126,MTS_DI,PD,Batch_Fifo,SerialNo

Quantity <quantity> Enter a number up to 10

4. Choose Submit.

The system pulls the relevant customer and material data from the master records (such as price, conditions, shipping point, and so on) and performs an availability check against the materials in unrestricted stock.

If you receive status yellow or red in the column confirmed you either need to check if enough material is in stock (Stock Overview). If the delivery date is on a week end, you must update the delivery date to the next available working date.

5. Choose Save. The order is saved and the information is transferred to the warehouse.6. Optional: Choose Selling -> Sales Orders, tab last 10 processed, select a sales order and choose Show order

confirmation as PDF (Only possible if you have activated the PDF printing for the SAP Netweaver Business Client)

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Delivery Creation UseIn this activity, you create the delivery.


SAP NETWEAVER

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Selling ® Shipping

2. Choose the Delivery Due Orders tab.3. In the search criteria for the shipping point enter “1000” and choose Apply and Refresh.4. Select the line item with your created sales order and choose the Create Delivery button.5. Deliveries are created and the warehouse transfer order is created. Make a note of the delivery number.

ResultA delivery is created. Batches are automatically determined if batch management is activated. The transfer order is created, printed and automatically confirmed.

Post Goods Issue UseIn this activity, you post the goods issue. Due to the fact that you’re using the lean warehouse functionality the transfer order with the picked quantity is already confirmed automatically.


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Selling ® Shipping

2. Choose the Due for Posting Goods Issue tab.3. Choose the button Refresh. 4. This step is only relevant if the material is handled with serial numbers:

- Select the delivery and choose the Change button.- On the Delivery Change: Overview screen select More -> Extras -> Serial Numbers - Choose the button Create serial numbers automatically.- Choose Enter.- Choose Save and close the window.

5. Select the delivery and choose the Post Goods Issue button.

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Financials / Billing

Billing UseIn this activity, you handle the billingProcedure

1. Access the transaction choosing the following option:

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Selling ® Billing

2. Choose the Billing Due List tab.3. Check your Query settings. Enter the customer number in the sold-to-party, and select the Order-related checkbox. 4. Choose Apply. 5. In the Billing Due List select your relevant sales document6. Note the value for the field net Value. You need this in the following step.7. Choose the Individual Billing button or the Individual Billing and show as PDF button. The system generates an

invoice for billing.

Customer Payments UseIn this activity, you post the incoming payments.Procedure

1. Go to Financials, then choose Post Incoming Payments.2. On the menu bar, choose Create ® Post Incoming Payments3. Make the following entries, then press Enter:


Document date <current date>

Posting date <current date>

Company Code 1000

Currency <currency> e.g. EUR for Germany, enter local currency

Account (bank data)

280009 Example for localization for Germany: 28009

Example for US: 113006

Amount (bank data)

<enter amount from previous step>

Value date <current date>

Account (Open item selection)

<customer number> e.g. 100000 or 100010

Standard OIs Mark the field

4. Choose Post. Make a note of the document number: __________

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Customer Analysis

1. Go to Financials 2. Enter the customer account number (e.g. 100000) and choose Apply3. Select Display as Graphic to get an graphical overview about the status of customer credit and debit balance.

Profitability Analysis1. Access the transaction choosing the following option:

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Analytics -> Execute profitability report

2. If a popup comes up, enter in the field operating concern 1001 or 1010 and choose Enter3. Double-click the report Plan/Actual Comparison4. Make the following entries:


From fiscal year <current year>

To fiscal year <current year>

From period 1

To period 12

Version 0

5. Choose Execute.6. Confirm the upcoming popup with Yes.

The report shows the profitability analysis for the several contribution margins in the selected timeframe.You can further drill down the analysis by selecting a customer.7. In the navigation area double-click at customer and confirm the popup about the hot spot.8. With the up- and down arrows you can switch between the customers to see the profitability report for a specific

customer only.

The demonstration of the Day-in-the-Life scenario is now complete. Standard processes from planning, purchasing, production, sales, and finance were covered.

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Day in a Life Manufacturing

Documents

Transcript of Day in a Life Manufacturing