SAP Best Practices for AutomotiveJapan V1.604

Overview

General Information

SAP Best Practices for Automotive Japan was developed for small and midsize manufacturers to implement a solution quickly and easily.

By means of an entry-level offering for manufacturing companies, you gain built-in support for the best business practices in the industry.

Functionalities

The SAP Best Practices for Automotive Japan V1.604 solution supports your business in the following areas :

Supplier-OEM Collaborations

Lean Manufacturing

Materials management

Production planning and control

Sales and distribution

Services

Logistics, product life-cycle management, and quality management

Accounting / Controlling

Forms and reporting

Manufacturing Sales Materials Management Financial Accounting

AnalyticsCross Functions

Make-to-Stock Production – Discrete Industry

Make-to-Stock Production - Process Industry

Make-to-Order Production with Variant Configuration

Make-to Order Production without Variant Configuration

Repetitive Manufacturing

Production Subcontracting (External Processing)

Rework Processing for Stock-Manufactured Material

Quarterly Plan - Sales Quantity Forecast with CO-PA

Rework Processing for Work-in-Process

Logistics Planning

Sales Processing Using 3rd Party (w. Ship.Not.)

Credit Management

Sales Order Processing – Sale from Stock

Free of Charge Delivery

Returns and Complaints

Sales Quotation

Sales Order Processing for Prospect

Sales Processing using Third Party (without Shipping Notification)

Sales of Nonstock Item with Order Specific Procurement

Debit Memo Processing

Lean Warehouse Management

Sales Order Processing with Customer Down Payment

Sales: Period End Closing Operations

Credit Memo Processing

Serial Number Management

Foreign Trade Export Processing

Customer Consignment Processing

Returnables Processing

Batch Recall

Quotation for Procurement

Consumable Purchasing

Procurement without QM

Stock Handling: Scrap and Blocked Stock

Procurement Contract

Stock Transfer with Delivery

Stock Transfer without Delivery

Return to Vendor

Physical Inventory/ Inventory Count and Adjustment

External Procurement of Third-party Resources

External Procurement of Services

Batch Management

Quality Management for Procurement with Vendor Evaluation

Subcontracting

Procurement & Consumption of Consigned Inventory

General Ledger

Accounts Receivable

Accounts Payable

Cash Management

Asset Accounting

Asset Acquisition through Direct Capitalization

Asset Acquisition for Constructed Assets (Investment Orders)

Activate Document Splitting

Cost of Sales Accounting

Segment Reporting

Period End Closing Financial Accounting

Period End Closing Projects

SAP ERP Reports for Accounting

SAP ERP Reports for LogisticsPeriod End Closing Activities

Period End Closing “General” Plant

Time Recording

Travel Management

Controlling

General Cost Center Planning

Internal Order R&D Planning

Internal Order for Marketing and Other Overhead Planning

Overhead Cost Accounting - Actual

Internal Order R&D Actual

Internal Order for Marketing and Other Overhead Actual

Revenue Planning

SOP through Long Term Planning Transfer to LIS/PIS/Capacity

Purchased Material Price Planning

Manufacturing Cost Center Planning

Standard Cost Calculation

Research and Development

Internal Product Development

Reference and Simulation Costing

SAP BP for Automotive Japan V1.604Extended Solution Scope for Baseline Comparing with V1.600

Service

Period End Closing Service Orders

Internal Maintenance

Spot Consulting with Fixed Price Billing

Sales Order with Fixed Price and T&M Billing

Project with Fixed Price and T&M Billing

Internal Project

Service with Time and Material based Billing

Service Contract with Periodic Billing

Service with Fixed Price Billing

Sales of Planned Services

Depot Repair

SAP Best Practices for AutomotiveSolution Coverage – Focusing on Supplier – OEM collaboration … in the Business Eco-system of Automotive Industry

Tier-2 Supplier

Tier-2 Supplier

Tier-1 Supplier

Distributor & 3PL

Dealer

OEM

R&D Partner

Service Supplier

Customer

Ind. After Market

F & I

Supplier-OEM Collaboration(13 Scenarios)

SAP BP for Automotive Japan V1.604Solution Scope – Automotive Industry

* Global = DE Auto V1.600

Scheduling Agreement with Forecast Delivery Schedule, KANBAN and Invoice Processing

Purpose and Benefits:

Purpose Scheduling Agreement with Forecast Delivery Schedule, KANBAN and

Invoice Processing shows a complete process of OEM and Supplier collaboration, including forecasting delivery schedule, delivery , invoice and payment advice synchronization between OEM and Supplier. The scenario also show the KANBAN and Repetitive Manufacture functionalities.

Benefits Planning information is synchronized between OEM and Supplier with

Forecast Delivery schedule in order to shorten the planning cycle. Supplier delivery information is updated in a timely manner to ensure

safety of the goods sent to OEM. Invoice payment information is synchronized in a timely manner to

improve the accuracy of financial information and shorten the cash flow cycle.

Efficient manufacturing on the Supplier side is carried out with KANBAN and Repetitive Manufacturing.

Advanced Scheduling Agreement with Handling Unit Management(HUM) , Returnable Packaging and Evaluated Receipt Settlement (ERS)

Purpose The business scenario is designed for the business processes in Packaging

Logistics between Automotive OEMs and suppliers, During the whole logistics process, Repetitive Manufacturing, Handling Unit Management (HUM), Automatic Packing with Packing Instructions, Returnable Packaging, and Credit Memo Processing are fully integrated. The OEM uses Evaluated Receipt Settlement (ERS) as the settlement method with the Supplier.

Benefits Various business information (delivery schedule/delivery/Invoice/Payment) is

synchronized immediately via EDI IDoc transfer between OEM and supplier . Handling Unit proposals are created automatically with packing instruction and

fully integrated with Repetitive Manufacturing. With Returnable Packaging Logistics, the quantity of returnable packaging

materials are tracked accurately. When Evaluated Receipt Settlement (ERS) procedure is adopted, invoice

variances are eliminated when OEM posts the invoice document automatically on the basis of the data in the scheduling agreement and goods receipt .

Via receipt of self-billing document per EDI, verification of transmitted data is performed automatically.

Purpose and Benefits:

Production for Depot Stock Replenishment

Purpose Supplier delivers products from own depot according to the delivery

schedule of the OEM. The supplier replenishes depot inventory by manufacturing them at production plant and transferring to the depot.

Benefits Supplier produces and replenishes depot inventory when depot plant has

no enough stock to meet OEM requirement. With this, it suppresses parts and material inventory in whole supply chain from supplier to OEM.

Supplier arranges production and delivery according to OEM’s released Forecast Delivery Schedule to guarantee material availability so that OEM can receive the products on schedule.

More accurate data on required quantities and desired delivery dates/times covering the near future is sent via JIT Delivery Schedule from OEM to Supplier.

Real-time EDI transmission enables rapid reaction from supplier to improve service quality to achieve higher level customer satisfaction.

Purpose and Benefits:

Scheduling Agreement with Credit Memo (Inside and Outside Tolerance)

Purpose Scheduling Agreement with Credit Memo (Inside and Outside Tolerance)

shows a complete process of handling credit memo with inside and outside tolerance between the OEM and Supplier side. It happens when the price for same material in OEM side is different from that in the Supplier side.

Benefits The tolerance check is performed automatically which effectively

corrects the invoice and payment error. The tolerance group can be predefined which minimizes the cost of price

difference handling.

Purpose and Benefits:

Scheduling Agreement with Consignment Stock (with External Service Provider /Logistics Service Provider)

Purpose and Benefits:

Purpose The Scheduling with Consignment store shows how an OEM can transmit its material forecast to the supplier and ESP/LSP via EDI. The inventory level of the required material is checked automatically and necessary fill ups can be initiated based on the received forecasts. After the final goods delivery by the ESP/LSP, the billing process between the supplier and OEM is triggered. The OEM values the received goods, and according to the self billing process, posts a credit memo to the supplier.

Benefits ESP/LSP and supplier collaborate efficiently based on consignment

store in order to fulfill OEM requirement on time. Meanwhile, back-up stock is significantly reduced on both OEM and supplier sides

Information is transferred through IDoc. Business data is synchronized with no delay among OEM, Supplier and ESP/LSP

Outbound delivery sent from ESP/LSP plays an important role to synchronized the physical goods movement information on both OEM and Supplier sides.

With self-billing procedure, supplier can easily compare the self-billing documents with the deliverables and their receivables. In case of the differences, a further SD invoice ( credit or debit advice) that clears the differences will be created automatically.

Subcontracting with Third Party Order and MRP Area   

Purpose The business scenario deals with a sub-component procured from a third

party vendor, which delivers not to the Supplier, but to the subcontractor for further assembly.

Material requirements planning at the plant level (MRP area: plant) and separate material requirements planning for subcontracting at the vendor's subcontractor level (MRP area: subcontractor)

Benefits In third-party procurement with subcontractor as ship-to party, the Tier-2-

Supplier delivers the sub-component directly to subcontractor. Thus it reduces the stock level on Tier-1 supplier side and shortens the complete components delivery time.

Material Requirements Planning runs separately at MRP Area level, which enhances transparency within a plant and provides a greater degree of differentiation in material requirements planning.

With special procurement key ‘stock transfer from plant to MRP area’, the system automatically generates a stock transfer reservation from plant MRP area to Subcontracting MRP area, which supports the subsequent logistics processing.

OEM receives the invoice automatically from supplier via EDI IDoc.

Purpose and Benefits:

Sales Order with Cross-Company Stock Transfer and Automated Invoice

Purpose A sales organization which is assigned to the ordering company code

creates a sales order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.

Benefits Customer requirement information is transferred to production plant with

synchronization through delivery schedule from sales plant as MRP result so that cross-company replenishment is running smoothly.

WM function records every transferring movement in details in storage bins from production to sales plant till customer, user can easily trace the stock situation.

With intercompany billing, vendor invoice is generated automatically and sent to sales plant. This process enables payable/receivable data exchangeable and traceable between production and sales company. Further more , invoice verification at sales plant side becomes more accurate.

As different prices can be set on the product for external customers and inter-company partners, profit analysis and orders settlement get clearer respectively in both external sales and inter-company sales.

Purpose and Benefits:

Scheduling Agreement with Customer KANBAN Call

Purpose Integrated with KANBAN and repetitive manufacturing function, this

scenarios supports the lean process in confirmed customer order , production and goods delivery to customer .

Benefits With KANBAN method, the controlling of customer order , production and

material flow is based on real situation. The effect of this is a reduction in lead time and in stock.

Usability is improved and operation is simplified via KANBAN status control.

Purpose and Benefits:

Retroactive Billing

Purpose

The scenario Retroactive Billing shows the procedure to change sales and purchasing prices for the history orders. These changes are caused by the request of the cost deduction by the customer.

Benefits

Both temporary and actual price are kept in system after the actual price is finally determined.

A list of documents which are affected by price change is called up. The system is triggered automatically to create necessary retroactive billing documents directly from the list.

Purpose and Benefits:

Scheduling Agreement with Summarized JIT Call

Purpose Summarized JIT calls are used for the receipt of required materials which

do not have any reference to the finished product and are not delivered in sequence. The delivery to a summarized JIT call can take place using exact times and also several times a day.

Benefits Long term material requirement information is communicated between

OEM and supplier via forecast delivery schedule in IDoc. Summarized JIT call is generated based on the real production situation

on OEM side. You have the possibility of grouping several material requirements to a

JIT call.

Purpose and Benefits:

Subcontracting with Chargeable Components

Purpose and Benefits:

Purpose Sub-contracting with chargeable component scenario is especially for only

Japan. MRP runs by considering the amount of every Sub-contractor stock .(Push) Once components ship to the Sub-contractor, AR be posted based on amount

of good issue. After GR Sub-contract goods, two AP are posted, one is for Sub-contractor’s expenses, the other is deduction AP which will be made settlement by AR.

Benefits Dependent requirements are calculated for every part provided Inventory is managed for every subcontractor Stock transfer to Subcontractor Accrued revenue is created, and counterbalanced by deduction AP Subcontractor’s expenses is calculated

Make-to-Order with Repetitive Manufacturing

Purpose Make-to-Order with Repetitive Manufacturing scenario shows a common

process of Make-to-Order at the sales side and repetitive production at the manufacturing side in automotive industry.

Benefits The customer requirement for quick response time and delivery of high

quality is fulfilled in make-to-order environment.

Production is flexible based on the incoming customer orders.

The inventory level and other related costs are reduced.

With repetitive manufacturing, the production process is simplified and automated.

Purpose and Benefits:

Lean Manufacturing - Heijunka Leveling

Purpose The scenario shows how existing tools and functions of the SAP ERP

portfolio can be used to convert uneven customer pulls into an even and predictable manufacturing schedule (Heijunka leveling) to enable upstream Kanban supply with SAP Kanban tools according to lean Toyota Production System (TPS) principles , it focuses on a lean production control method within a repetitive manufacturing environment: using Kanban processing for lean replenishment.

Benefits Heijunka technique levels uneven customer demands to even production

schedule on final assembly line, subsequently, production process at a constant and predictable rate prevents waste caused by the fluctuations in performance.

To adopt sequence schedule with setup time optimization instead of equally distribution dispatching, it gets more efficient to avoid muda (waste).

Just in time delivery via Kanban pull fulfills lean planning and manufacturing principles.

Purpose and Benefits:

Activate Document Splitting for Automotive

Purpose The Activate Document Splitting is provided with the new General

Ledger Accounting. Documents are enhanced with additional account assignment objects, or

additional postings are done which split the original postings into lines referring to the account assignment objects.

Account assignment objects can be defined according to selected dimensions. In SAP Best Practices the dimensions are profit centers and segments.

Benefits The postings are done in real time (online). It is possible to draw up complete financial statements for the selected

dimensions at any time (segment reporting).

Purpose and Benefits: