Sap Inventory Management

Johnson Controls FOR EXTERNAL USE - Topic of presentation Sub-topicUnderstand the concept of Logistics Execution
Understand the importance and the definitions of global purchasing master data.
Understand a to-be global procurement processes for JCI
Understand the definitions and Best Practice Solutions for the Source Determination
Proprietary & Confidential
Procure Goods &
Assure Quality of
Goods and Services
manage stocks on a quantity and value basis
plan, enter and provide evidence of all goods movements
Warehouse Management is used to:
manage stocks on a quantity basis and on storage bin level
enter and provide evidence of all goods movements
select storage bins automatically according to set up strategies
Unrestricted Stock
Ein Material kann beim Wareneingang in den frei verwendbaren und bewerteten Lagerbestand, in den gesperrten und bewerteten Lagerbestand, in den Qualitätsprüfbestand oder in den WE-Sperrbestand gehen.
Falls das QM aktiv ist, kann gesteuert werden, daß Material in den Qualitätsprüfbestand eingelagert wird.
Der Qualitätsprüfbestand ist bewertet, aber nicht frei verwendbar.
Der WE-Sperrbestand ist weder bewertet noch frei verwendbar. Sie können einen Wareneingang z.B. dann in den WE-Sperrbestand buchen, wenn Sie die Lieferung nur unter Vorbehalt annehmen.
Wareneingänge in den WE-Sperrbestand werden in der Statistik zur Bestellposition angezeigt.
Umbuchungen zwischen diesen verschiedenen Bestandsarten sowie Rücklieferungen an den Lieferanten sind möglich. Falls das QM aktiv ist, können mit dem Verwendungsentscheid Umbuchungen angestoßen werden.
Fully available in
Stock is valuated
Not available for other Sales deliveries
Belongs to the client is not valuated
Stock in Quality Inspection at Goods receipt
Stock can be excluded from ATP-check
Stock is valuated
Unrestricted Use
Stock is excluded from ATP-check
Stock is valuated
Material Number: QS6X20
Quality inspection indicator
1 – Stock Overview of Plant 1000
2 – Display Warehouse & BIN stock for Plant 1000 > Storage location 0088
MM
Plant
Special Stock
Sales Order stock
Stock that is used for a sales order. It is directly allocated to a sales order. Components can only be used to produce material ordered by the customer and the finished product can only be delivered to the customer via the sales order.
Subcontracting
In subcontract order processing, the vendor receives materials (components) with which it produces the end product.
- It is managed as part of your total valuated stock, and is available for MRP
- It is only managed at plant level, since it is not stored at your own company
but on the vendor's site
Project Stock
Quantity of a material which is held in stock for the completion of a project. The project stock is allocated to a work breakdown structure (WBS) element. Components can only be withdrawn for the WBS element.
in Inventory Management
The Usage of different Units of Measure in Inventory Management
ã
4
4
12
12
72
72
Sales
Creme
Unit of measurement
Unit of measurement
Unit of measurement
Base unit of measure
This is the unit of measure in which the stocks of a material are managed. The system converts all quantities entered in other units to the base unit of measure
Alternative units of measure
Individual departments may have their own units of measure. For example, Purchasing may use a different unit than Sales or Warehouse Management (WM). All units of measure other than the base unit of measure are referred to as alternative units of measure.
Goods Receipts
Shipment is
Checked against
Goods receipt is not valuated in JCI’s financial books
Yes
No
Receipts of goods from an external vendor or from production are posted. A goods receipt leads to an increase in warehouse stock.
There are three different ways of goods receipts:
1. Goods receipts with reference to a reservation
2. Goods receipts with reference to an order (production order or purchase order)
3. Other goods receipts
Overview of Goods Receipts Transactions
Goods Receipts without references
With the initial entry of inventory data (movement type 561), physical warehouse stocks from a legacy system is transferred to the newly implemented SAP R/3 MM System.
The valuation of the inventory data to be transferred is dependent on the price control procedure and prices specified in the material master (accounting view). The price is eiher maintained as standard price or moving average price.
Tuesday
Dec.
Without purchase order
Without production order
Receipt of by
Material Document
No posting without a document !
A material document is generated and stored in the system for every transaction/event that causes a change in stock.
The material document is generated when a goods movement is posted in the Inventory Management system and serves as proof of the movement and as a source of information for any applications that follow.
If the movement is relevant for Financial Accounting (that is, if it leads to an update of the G/L accounts), an accounting document is created parallel to the material document
The G/L accounts involved in a goods movement are updated through an automatic account assignment.
Non
Goods Receipt into different Stock Types
At goods receipt, the material is posted to consumption or to stock.
Goods receipts can be posted to unrestricted, blocked or quality stock. The posting depends on the settings in the material master, purchase order and input during processing of the goods receipt.
Stock can be also managed as GR blocked stock. In this case, stock is posted to blocked stock and is not valuated (posting with movement type 103). Once a material has fulfilled the acceptance conditions, it can be released. It is then valuated automatically
However, Quality Inspection indicator can be used to store goods as a different stock type. JCI quality processes will be done through SAP. Once a decision is made, the goods can be transferred back into unrestricted stock.
Goods Receipt Blocked Stock and Release
Return to
Goods Receipt – Quality Stock Type
Material
Material
with the material.
SAP Definition of Subcontracting:
The subcontracting business process means to add value on a product by an external vendor.
In this process the purchasing company has to provide components for the subcontracting process.
The components can be provided from our own stock or can be delivered directly from another vendor to the subcontractor.
The purchasing company is the owner of provided stock for components unless the sub assembled item are received.
The inventory management of SAP supports the stock overview and the stock movements of the provided components.
Required components and components quantities for the subcontracting process can be defined in a bill of material.
In most cases JCIs` understanding of a subcontracting process is external procurement of erection in the contracting business.
Subcontracting process -
The SAP subcontracting process offers an integrated process including procurement processes, inventory management, shipment of components, stock monitoring, invoice verification
Master Data: Capability to maintain Master Data especially to subcontracting process (BOM, Material Master, Purchase info record). Well prepared master data is basis for a smooth process flow.
Procurement: Capability for automating of procurement process from Purchase requisition, Source determination and Purchase order
Inventory Management: Tracking and monitoring of components provided to subcontractor
Subsequent adjustment: Adjustment of real consumption of components
Integration: Direct integration to other SAP components, especially to finance and Controlling. Open decision of integration with shipment of components (SD).
3rd Party Delivery of Components: The system supports this process to reduce own stock value and additional transfer and goods movements
Subcontracting Process -
Goods receipt of sub assembled products
A goods receipt has to be entered when the vendor delivers the sub assembled product.
The goods receipt will be entered with reference to purchase order.
The goods receipt for the subcontract order are posted in the same way as for a standard purchase orders.
The system determines the sub assembly product for each order item and creates a goods issue item for each component. As a result, the material document consists of the following items:
Goods receipt items for the materials supplied by the vendor
Goods issue items for the components
Subcontracting Process -
PO
Subcontracting
Stock
Stock
Transfer
Integration of goods receipt of sub assembled products and consumption of components automatically
Goods Receipt via Inbound Delivery
The goods receipt process for inbound deliveries is an essential part of the supply chain. This process includes the steps after creation of the purchase order:
Notification
and the goods receipt posting of the ordered goods.
The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place.
You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time. The inbound delivery describes exactly which materials or pallets can be received on what date and at what time.
Inbound
Delivery
Goods
Receipt
SD
WM
IM
Purchase
Order
The system creates an inbound delivery automatically if you receive a shipping notification via Electronic Data Interchange (EDI). You can also create an inbound delivery manually if you do not use EDI to communicate with your supplier
Item 1
Item 2
reference to a purchase order
collective processing for several purchase orders
reference to a stock transport order
reference to a customer return
Inbound
Delivery
Purchase
Order
Execute many processes in advance, before the stock arrives
You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time
The inbound delivery describes exactly which materials or pallets can be received on what date and at what time.
Inventory management of packaging materials
Automatical creation of inbound deliveries through a collective processing run
Inbound delivery monitor
Incompletion log
Change documents
Goods Receipt Methods
no
yes
no
yes
Conclusion: Use the “Inbound delivery“ process if you want to take advantage of the additional functionality.
Goods Issue
Goods issue
Goods issues can be posted the following ways: material withdrawal, material issue or a shipment of goods to a customer (without the involvement of the SD Shipping component). A goods issue leads to a reduction in warehouse stock.
The Inventory Management system supports the following types of goods issues:
- Withdrawal of material for production orders
- Scrapping and withdrawal of material for sampling
- Return deliveries to vendors
- Other types of internal staging of material (goods issue for a cost center, project,
maintenance order, asset)
- Deliveries to vendors without the involvement of the SD Shipping component
The goods issue posting is dependent on the movement type
Tabelle1
MvT
241
Asset
251
Sales
Stock update
Transfer requirement is created when the Warehouse Management System is configured (localization)
Results of a goods issue posting
201Cost centerCost center
241AssetMain asset number, asset sub-number
251SalesCost center

Sap Inventory Management

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