SAP Dairy Management by msg for SAP S/4HANA

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Content

1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.1 Dairy Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Manage Raw Material Deliveries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Assign Department to Resource. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Assign Batch Characteristics to Component Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Assign Cost Center Group to Plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Assign Internal Order Group to Plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Assign Cost Element Group to Company Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Process Master. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Manufacturing Method Master. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.2 Raw Material Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Raw Material Delivery Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Raw Material Delivery History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Raw Material Delivery Redirection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Raw Material Plan Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Opening Stock Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

1.3 Dairy Yield Gain and Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Raw Material Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1.4 Dairy Activity-Based Costing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Plant Quantities Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Activity Based Costing - Run. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Cost Object Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

2 P U B L I CSAP Dairy Management by msg for SAP S/4HANA

Content

1 Introduction

SAP Dairy Management by msg for SAP S/4HANA enables the milk-processing food industry to optimize their core processes, implement digital transformation, support their structural changes and make these structural changes sustainable.

The innovative, platform-based solution is comprehensively integrated in SAP standard processes and combines knowledge of the dairy industry with the new possibilities of the SAP S/4HANA suite.

This solution provides tools for:

● Basic● Intergrated Raw Material Planning● Yield, Gain & Loss● Activity-Based Costing

Supported Device Types

● Desktop● Tablet

1.1 Dairy Basic

The Dairy Basic app group enables you to define dairy-specific master data with the following applications:

● Manage Raw Materials Delivery● Assign Department to Resource● Assign Batch Characteristics to Component Types● Assign Cost Center Group to Plant● Assign Internal Order Group to Plant● Exclusion of Cost Elements from Cost Accounting● Process Master● Manufacturing Method Master● Component Posting● Manage Production Quantities Plan● Manage Process Frequencies

SAP Dairy Management by msg for SAP S/4HANAIntroduction P U B L I C 3

1.1.1 Manage Raw Material Deliveries

You use this app to create and manage raw material deliveries and maintain additional information per delivery. The master data is used within the raw material planning applications.

Key Features

You can use this app to:

● Create raw material deliveries● Edit raw material deliveries● Maintain a validity timeframe and delivery interval per raw material delivery● Assign a standard and several alternative delivery plants● Assign raw materials and a default planning factor


● Desktop● Tablet● Smartphone

1.1.1.1 Manage Raw Material Deliveries: Background Documentation

Raw material delivieries are used as planning objects in raw material planning. Only valid raw material deliveries are displayed in the apps and can be used for planning. The delivery interval starts at the first day of validity of the raw material delivery and determines the available delivery days in raw material delivery planning (e.g. for distribution of quantities).

1.1.2 Assign Department to Resource

Within this application, you can show all existing resources/work centers and assign a department. Departments need to be defined within SAP Dairy Management by msg for SAP S/4HANA. Extensive controlling functionality builds on the organizational level of a department.

You use this application to assign departments to resources. The department is a superordinate area of responsibility that is defined within SAP Dairy Management by msg for SAP S/4HANA. Also, the consideration of departments ideally matches industry-specific analysis requirements.


Introduction

Key Features


● Relate resources and work centers to departments● Provide the basis for a comprehensive analysis of efficiency and costing● Use state-of-the-art technology to quickly get an overview of your data


● Desktop● Tablet

1.1.2.1 Assign Department to Resource: Background Documentation

Within the application, you can show all existing resources/work centers and assign a department. Departments need to be defined within SAP Dairy Management by msg for SAP S/4HANA. Extensive controlling functionality builds on the organizational level of a department.

1.1.3 Assign Batch Characteristics to Component Types

You use this app to define the relevant batch characteristics for each component type. Based on the component type, the system is able to closely balance the components and track both quantities and values throughout the entire manufacturing process.

Key Features


● Assign component-specific batch characteristics to component types● Provide the basis to efficiently retrace and simulate component variations




1.1.3.1 Assign Batch Characteristics to Component Types: Background Documentation

Because not all batch characteristics are suitable for all component types, the app enables you to assign which characteristics should be considered. All existing batch characteristics are available. The link between component type and batch characteristic is used in various functions within SAP Dairy Management by msg for SAP S/4HANA.

1.1.4 Assign Cost Center Group to Plant

You use this application to assign cost center groups to plants. The plant is the leading organizational level for the analysis of efficiency, performance, and profitability within SAP Dairy Management by msg for SAP S/4HANA. For this purpose, the application establishes the relationship between cost centers and plants.

Key Features


● Relate cost center groups to plants● Provide the basis for a comprehensive analysis of efficiency, performance and profitabiliby.● Use state-of-the-art technology to quickly get an overview of your data




Introduction

1.1.4.1 Assign Cost Center Group to Plant: Background Documentation

The assignment between cost center groups and plants is used within Activity Based Costing. Within the application, you can assign each cost center group to exactly one plant. In addition to the cost center group, it is possible to choose an allocation structure that will be applied for the cost center group in Activity Based Costing.

1.1.5 Assign Internal Order Group to Plant

You use this application to assign internal order groups to plants. The plant is the leading organizational level for the analysis of efficiency, performance, and profitability within SAP Dairy Management by msg for SAP S/4HANA. For this purpose, the application establishes the relationship between internal orders and plants.

Key Features


● Relate internal order groups to plants● Provide the basis for a comprehensive analysis of efficiency, performance and profitability● Use state-of-the-art technology to quickly get an overview of your data



1.1.5.1 Assign Internal Order Group to Plant: Background Documentation

The assignment between internal order groups and plants is used within Activity Based Costing. Within the application, you can assign each internal order group to exactly one plant. In addition to the internal order group, it is possible to choose an allocation structure that will be applied for the internal order group in Activity Based Costing.


1.1.6 Assign Cost Element Group to Company Code

You use this app to assign cost element groups to a company code within a controlling area. All cost elements that belong to an excluded cost element group are not taken into account in Activity-Based Costing. The exclusion is suitable for cost elements that are not relevant within the production process and should therefore not be considered in the cost estimation of materials.

Key Features


● Select cost element groups to exclude them from Activity-Based Costing● Vary the excluded cost element groups by company codes● Assign a cost element group to more than one company code● Provide the basis for cost allocation according to cause● Use state-of-the-art technology to quickly get an overview of your data



1.1.6.1 Assign Cost Element Group to Company Code: Background Documentation

There are cost elements that are directly considered in another business logic and therefore not relevant for Activity-Based Costing. The Activity-Based Costing report uses this assignment for its logic/algorithm.

1.1.7 Process Master

You use this app to maintain processes. The process connects production factors in a unique way that ideally matches the requirements of the dairy industry. With its integration along the value-added chain it enables an in-depth representation of the production process including efficiency aspects and costing aspects.


Introduction

Key Features


● Maintain key data on your industry-specific manufacturing processes● Build in-depth relationships between various production factors● Incorporate data on capacities and cost intensity● Provide the basis for comprehensive reporting on efficiency and costing● Use state-of-the-art technology to quickly get an overview of your data



1.1.7.1 Process Master: Background Documentation

The process master enables the maintenance of processes. Within manufacturing methods, processes are connected with the production of materials. Processes are optimally integrated into futher information systems on production. Among others, quantitative releationships are established with products, cost centers, internal orders and other processes. The process corresponds to the activity type in the controlling area and has been enhanced with dairy-specific functions.

1.1.8 Manufacturing Method Master

You use this app to maintain manufacturing methods. The manufacturing method integrates a detailed task list for material production with efficiency-relevant and costing-relevant information. The representation of the production process optimally matches the requirements of the food industry.

Key Features


● Maintain key data on your industry-specific manufacturing processes● Build quantitative relationships between different production factors● Consider industry-specific dependencies involving the produced materials● Provide the basis for comprehensive reporting on efficiency and costing


● Use state-of-the-art technology to quickly get an overview of your data



1.1.8.1 Manufacturing Method Master: Background Documentation

The manufacturing method fully builds on the information that is specified in the routing (PP) or master recipe (PP-PI). The data in this app forms the basis for various advanced functions in SAP Dairy Management by msg for SAP S/4HANA. Among others, quantitative relationships are established with products, resources, cost centers and internal orders.

1.2 Raw Material Planning

In the Raw Material Planning application group, you can perform raw material planning with the following applications:

● Raw Material Delivery Planning● Raw Material Delivery History● Raw Material Delivery Redirection● Raw Material Plan Balance● Opening Stock Planning● Planned Raw Material Deliveries● Planned / Actual Deliveries● Short-Term Raw Material Plan● Raw Material Delivery Scheduling

1.2.1 Raw Material Delivery Planning

You use the app to plan incoming raw material quantities per raw material delivery. Typically, this covers the inbound own milk deliveries of a plant. The app allows you to see the current planning, make changes and see the effect immediately. Once the planning is finished you can create process orders from it to use the plan data in the process of milk entry.


Introduction

Key Features


● Use the proposed quantity which is based on historical data● Change the proposed quantity manually or via a factor● Apply the proposed quantity on the delivery days of the raw material delivery● Plan incoming raw material quantities per day● Create a process order for each raw material delivery



1.2.1.1 Raw Material Delivery Planning: Background Documentation

The planning can only be done for raw material deliveries that were created in the Manage Raw Material Deliveries app and that are valid within the planning horizon.

When finishing the planning, the deliveries can be redirected to other plants – meaning that the raw material entry will be switched to another plant. This can be done in the Raw Material Delivery Redirection app.

The planned raw material delivery quantities are considered when calculating the coverage of raw material requirements in the raw material plan balance sheet.

The proposed quantity is based on historical data. In the Raw Material Delivery History app, single weeks can be deselected or selected to be considered in the calculation.

1.2.2 Raw Material Delivery History

You use this app to display the last 5 weeks of historical data on a daily or weekly basis. Additionally, you can control whether or not single weeks are considered for the calculation of the proposed quantity in raw material planning.


Key Features


● Display of historical data on a daily or weekly basis● Activate / Deactivate the consideration of historical data for the calculation of the proposed quantity



1.2.2.1 Raw Material Delivery History: Background Documentation

The historical data is based on material receipts, in other words the real milk entry of the last 5 weeks. As the material receipt is linked to the process order that was created in raw material delivery planning, the direct link between material receipt and raw material delivery is given.

1.2.3 Raw Material Delivery Redirection

You use this app to change the delivery plant of a raw material delivery. With this instrument, it is possible to balance excesses or shortages of raw material within internal plants.

Key Features


● Check currently planned raw material quantities and delivery plants● Change the delivery plant of a daily quantity● Select between the configured alternative delivery plants


Introduction



1.2.3.1 Raw Material Delivery Redirection: Background Documentation

For each raw material delivery you need to configure alternative delivery plants in the Manage Raw Material Deliveries app. The priority of the alternative delivery plants can be found in the order of the delivery plants in the dropdown box.

1.2.4 Raw Material Plan Balance

You use this app to obtain an overview of the currently planned raw material situation. All planned incoming raw material movements are balanced with all planned outgoing material movements. Depending on the result (excess or shortage), you can use other raw material planning applications to balance the excess/shortage.

Key Features


● Check latest planned quantities for incoming and outgoing raw material● Decide to take actions (e.g. redirections, sales, purchases) based on the excess/shortage● See details of all quantities




1.2.4.1 Raw Material Plan Balance: Background Documentation

The raw material plan balance brings together a lot of different data.

● Opening Stock (S/4 or Opening Stock Planning)● Incoming Raw Milk (Raw Material Delivery Planning, Raw Material Delivery Redirection)● By-Product Generation● Purchases (S/4)● Stock Transfer (inbound and outbound) (S/4)● Requirements of Own Production (S/4)● Sales (S/4)

This data is used to calculate both the closing stock and the determine excess/shortage.

1.2.5 Opening Stock Planning

You use this app to override the stock coming from S/4 for all raw material planning applications. The manual opening stock will only be used for the stock calculations within Dairy raw material planning. There is no integration back into S/4 of the opening stock.

Key Features


● Check opening stock for the current day that comes from S/4 per raw material● Set a manual opening stock for the current day per raw material




Introduction

1.2.5.1 Opening Stock Planning: Background Documentation

All stock calculations for raw materials are based on the real opening stock from S/4. If the planner considers the system stock as not adequate for his planning, he may override it. These changes only affect Dairy raw material planning applications for the given day.

1.3 Dairy Yield Gain and Loss

In the Yield Gain and Loss app group, you can perform raw material and material controlling with the following application:

● Raw Material Balance

1.3.1 Raw Material Balance

This app gives you an overview of the posted documents of the relevant raw material movements. All receipts and issues, consumptions and stocks of raw material and the defined components are compared in this transaction. The result helps you detect losses and increase production efficiency.

Daily creation of a milk balance for the operation room after receipt/issue, consumption and stocks of milk and whey-based raw materials.

Key Features


● Checking the posted quantities of incoming and outgoing raw materials and their components● Minimization of the overall operational loss factor and department losses● Daily monitoring of the main cost drivers "raw material” and “raw material components"




1.3.1.1 Raw Material Balance: Background Documentation

Within the app, you can create a balance for freely definable periods. You can use the app to perform a multidimensional evaluation and an analysis, with the exception of individual documents. The app lets you analyze the raw material and the components in a variety of ways.

1.4 Dairy Activity-Based Costing

The Activity-Based Costing app group enables you to create material cost estimations based on planned production quantities within a plant and analyze them with the following applications:

● Plant Quantities Plan● Activity-Based Costing - Run Production● Cost Object Analysis

1.4.1 Plant Quantities Plan

You use this app to plan output quantities for Activity-Based Costing – Plan. The planning screen is based on SAP Analysis for Office.

Key Features


● Plan product quantities to enable activity-based costing.● Utilize SAP Analysis for Office to plan flexibly and efficiently.




Introduction

1.4.1.1 Plant Quantities Plan: Background Documentation

Within the app, you can plan production quantities. The planned quantities are classified by the attributes Plant, Fiscal year and period, CO variant and Movement type. The products that are planned can be grouped by their product type. With SAP Analysis for Office at hand, the planning activity can be adjusted to the user’s preferences in order to be both flexible and efficient.

1.4.2 Activity Based Costing - Run

You use this app to create material cost estimates for all products manufactured in a plant. On the basis of period-oriented finished product planning, typical quantities for the dairy industry are determined by exploding BOMs and manufacturing method and valuated using plan prices. All objects networked in this way automatically determine allocation tariffs, which are allocated to materials at all levels.

Key Features


● Maintain the selection parameters in the predefined form● Define a run identification, so that you can execute a particular run more than once● Select one or more plants● Decide on a costing variant, quantity base and condition type● Bill by period or a whole year



1.4.2.1 Activity-Based Costing - Run: Background Documentation

The Activity-Based Costing app accesses various standard data structures or data structures specific to the dairy industry. For example, a maintained costing variant and certain condition types are required as standard elements. When the production version is determined, all material BOMs that have a manufacturing process are exploded. All dependent requirements are determined and calculated down to component level. After all


primary materials have been valuated, the materials produced in-house are valuated and saved using cost rollup across all levels.

1.4.3 Cost Object Analysis

You use this app to evaluate the determined results from the Activity-Based Costing Production. A selection menu is displayed when you start the app. After entering the selection criteria and executing the report, the corresponding cost object cost estimates are displayed on the user interface and can be evaluated.

Key Features


● Select a plant for which you want to evaluate the material cost estimates● Select the fiscal year and the period for which you want to generate the evaluation● Select the run ID or the costing variant● Optionally select a different currency with exchange rate type and value date● Analyze the viewed cost estimates with regard to plausibility and consistency



1.4.3.1 Cost Object Analysis: Background Documentation

By default, the report displays the costs in the company code currency. If a different currency is preselected, the costs are translated from the company code currency to the selected currency. If the selected currency is the controlling area currency, the system reads the result from the calculation run in the controlling area currency.


Introduction

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