customizing workshop - nelson mandela universitytutor.nmmu.ac.za/norma/vel2/vel2001/vel2016... ·...

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Product

SAP ERP G.B.I. Release 6.07 Level

Undergraduate Graduate Focus

Customizing Authors

Simha R. Magal Stefan Weidner Tom Wilder Gwamaka Mwalemba Version

3.6.1

MOTIVATION

If a company is implementing or expanding the functionality of its SAP ERP system, they must adapt the software to meet their individual business requirements. In this workshop, we will configure the enterprise structure and business processes necessary to allow a new company to automate Procurement. The workshop will also include basic Financial Accounting configuration to enable the system to keep track of the financial implication of the procurement process.

PREREQUISITES

Before you use this workshop, you should have completed the navigation, purchasing and financial accounting workshops on the SAP ERP system. NOTES

This workshop uses the ESEFA data set, which has been created exclusively for the SAP UA African curriculum.

Customizing Workshop

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Overview

Learning objective Understand and perform the customizing of an ERP system.

Scenario As a result of the merger, Zambikes will now benefit from utilising the enterprise system that is currently being used by GBI to automate and integrate their business process for efficient business operations as well as reporting.

Process description This will require setting up a new company code as well as other relevant organizational structure for Zambikes in an existing GBI SAP client and performing all the necessary customizing to allow Zambikes to execute their business processes using the SAP system. The scope of this workshop will be limited to performing the customization necessary for the system to support the procurement business process in Zambikes.

The workshop is divided into three parts as follows:

Part I: General and financial organizational data

Part II: Procurement organizational data

Part III: Master data and business process execution

The ## symbol You have been allocated a zmb-### username (eg zmb-012) for logging into the SAP system. In the workshop you will often encounter the ## symbol in the instructions. The ## symbol refers to the last two numbers of your username, which will act as your identifier. If your username is zmb-012 then whenever you see ## you are supposed to replace it with your identifier which in this case is 12. This is very important in order to avoid confusion and to make sure that lecturers can easily know what was done on the system and by whom, for evaluation purposes. For example, if Thato’s username is zmb-109 her identifier is then 09, meaning that Thato’s company code will be ZM09. Please be cautious about other classmates attempting to use your identifier, whether it is on purpose or not, and if you suspect other classmates of using it, inform your instructors immediately so that fixes can be made accordingly.

Saving When the instructions tell you to save data, always press the Enter key to validate. If there are error(s) that occur, they must be corrected before continuing to the next task. You will find errors in a transaction when red icons appear in the message area. Messages that are yellow contain warnings, not errors. At times, these must be fixed in order to move on. However, most of the time, they do not need to be fixed and you can simply enter through them. Green messages are obviously showing that nothing went wrong with the transaction and that you may proceed to the next task.

Assessment Complete the datasheet provided on the last page. Assessment will be done on system, by inspecting the relevant organization data, master data and transactional data.

Warning When working with other classmates at the same time in the same transactions within the Implementation Guide, tables will tend to lock up and you will only be able to display them. This is due to the fact that the system does not allow multiple users in the same transaction at the same time (to avoid two people editing one table at the same time). To get past this message, simply wait until the current user in the transaction is finished and then proceed.

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Contents

Part I – General and financial organizational data ................................................................................ 4

ZC 1: Open customizing environment .......................................................................................................... 4

ZC 2: Define company code ......................................................................................................................... 5

ZC 3: Maintain company code ..................................................................................................................... 6

ZC 4: Create controlling area ....................................................................................................................... 8

ZC 5: Assign company code to controlling area .......................................................................................... 9

ZC 6: Assign controlling area to operating concern .................................................................................... 9

ZC 7: Define standard hierarchy ................................................................................................................ 10

ZC 8: Assign tax codes for non-taxable transactions ................................................................................. 11

ZC 9: Copy document number ranges ....................................................................................................... 11

Part II – Procurement organizational data ........................................................................................... 12

ZC 10: Define plants................................................................................................................................... 12

ZC 11: Assign plants to company code ...................................................................................................... 14

ZC 12: Set up plant parameters ................................................................................................................. 14

ZC 13: Maintain storage locations ............................................................................................................ 15

ZC 14: Maintain purchasing organization ................................................................................................. 16

ZC 15: Assign purchasing organization to company code and plants ....................................................... 17

ZC 16: Create a purchasing group ............................................................................................................. 18

ZC 17: Group together valuation areas ..................................................................................................... 19

ZC 18: Maintain default values for tax codes ............................................................................................ 19

ZC 19: Assign tax indicators for plants ...................................................................................................... 20

ZC 20: Define attributes of material types ................................................................................................ 20

Part III: Master data and business process execution .......................................................................... 22

ZC 21: Create material master .................................................................................................................. 22

ZC 22: Create vendor ................................................................................................................................. 23

ZC 23: Create purchasing info record ........................................................................................................ 24

ZC 24: Create purchase order .................................................................................................................... 26

ZC 25: Create goods receipt for purchase order ........................................................................................ 27

ZC 26: Capture invoice from vendor .......................................................................................................... 27

ZC 27: Post payment to vendor ................................................................................................................. 28

ZC - Data sheet ................................................................................................................................... 29

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Part I – General and financial organizational data

ZC 1: Open customizing environment

Time 5 min.

Task Open the customizing environment and become familiar with the different options.

Short description The SAP Reference IMG contains the full functionality of all possible customizing settings across all application components (material management, finance, human resources, etc.). It is structured hierarchically according to the application component hierarchy. All customizing activities are assigned to one or more components. You choose the functions that you want to implement in your company from the application components.

To pen the SAP customizing guide follow the menu path:

Tools► Customizing ► IMG ►Execute Project (SPRO).

In the Customizing: Execute Project screen click to diplay the Implementation Guide (IMG menu).

To read the description of the nodes in the IMG structure, double-click the title or click (Documentation) (for the IMG activity) beside the title.

Some customizing activities are grouped under nodes. Click to open a node and see

subsequent nodes or activities. To open Customizing settings, click (Execute) (IMG activity).

Given that your interest is in the Zambikes organizational structure, locate a node named Enterprise Structure. Click on the document icon to learn more about this IMG activity.

Expand the sub-menu Enterprise Structure. You will see three sub-folders among which Definition and Assignment are of further interest. Definition displays already existing organizational structures classified by functional areas. It also allows you to change them and create new ones. Assignment activities help you relate organizational units to one another.

Use (Ctrl+F) or (Find) to simplify searching a specific node, provided that you are aware of the appropriate wording of the IMG activity. Enter the search term, making sure that the words

are spelled correctly. Try searching the term tax determination. After clicking (Continue), a list of all possible entries based on search terms will be displayed. The list shows activities as well as areas. If the search term is appropriate, you should see the activity you are looking for. Activities that can be assessed from more than one area will be listed multiple times. Select the

relevant activity and click (Continue) to proceed with configuration.

To exit the IMG, click (Back) until your User menu appears.

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ZC 2: Define company code

Time 10 min.

Task Create a new company code for Zambikes ##.

Short description In this step, you will establish a new company (or in real life, a GBI legal entity) located in Zambia. This company is represented in SAP by a company code.

Your new company code is the basis of financial accounting and will serve as the source for ZM tax and legal entity reporting. However, to minimise the configurations settings (or take advantage of general configurations that apply to all GBI companies) you will copy one of the existing companies as a basis for your new company and only change what’s specific to Zambikes. Note that if you were implementing an ERP for the first time in an organization, the chances are that there would be no existing organization data to copy from hence you would have to configure from scratch.

Your company code is assigned to exactly one country (Zambia), one base currency (Zambian Kwacha – ZMW), and one language (English).

All of your future work (configuration and testing) will be done in your company code.

To create a new company code, first open the SAP Reference IMG menu (see ZC1).

On the IMG menu, follow the path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Financial Accounting ► Edit, Copy, Delete, Check Company Code

On the Choose Activity screen, select Copy, delete, check company code. Click to proceed.

On the Organizational object Company code screen, select .

On the Organizational structure Company code screen, select . A Help-Navigation:

Help pop-up screen will appear. Click (Continue) to proceed.

On the Object Lists screen, double-click US Global Bike Inc. to open its structure. On the View:

Navigation screen, click US00 (Global Bike Inc) and then click (Select) on the application toolbar. Make sure the words ‘US00 US Global Bike Inc.’ have a yellow highlight.

Click (Back) to display the Organizational Structure for the Company Code screen.

On the Organizational Structure for Company Code screen, click (Copy org.structure) to copy the company code US00. On the Structure Target Value Selection pop-up, specify the ‘To

company code’ as ZM##. Click (Continue).

During the copying process a series of pop-ups will appear, prompting decisions on whether to include certain data in the copying process. Carefully read and respond as follows:

The first pop-up will ask if you want to copy G/L accounts. Select Yes.

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The next pop-up will ask if you want to allocate a different (from USD) local currency. Select Yes.

The system will then ask you to specify the new currency. Select ZMW (Zambian Kwacha).

Click (Continue).

A new customizing request will be created by the system. Write down your request number for

future reference. Select (Continue) to confirm and save the transport request.

Once copying has been completed a final Information pop-up will appear, notifying you that the relevant enterprise structure was successfully copied. The system might also point out that several (usually three) number range objects were not copied. These objects are not relevant to our customizing exercise.

Click (Continue) to finish the copying process. Now all relevant organizational data has been copied from US00 to your new company code.

You can click the Completed activities tab to see a confirmation of the copying process.

Click (Exit) and then (Cancel) to return to the IMG menu.

ZC 3: Maintain company code

Time 10 min.

Task: Edit new company code details.

Short description So far, details of the new company code (ZM##) including name, address etc. are the same as US00. Since the newly created company code is for Zambikes (and not Global Bike Inc.), some details have to be changed to reflect that.

To edit details of a company code, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Financial Accounting ► Edit, Copy, Delete, Check Company Code.

On the Choose Activity screen, select Edit Company Code Data. Click to proceed.

On the Change View ‘Company Code’: Overview screen, select your new company code (ZM##)

and then click (Details) on the application toolbar.

In the New Entries: Details of Added Entries screen, enter the following information:

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Attribute Description Data value

Company Name Name of company code or company. ## Zambikes Company Ltd.

City City name in an address. Lusaka

Country The country key contains information which the system uses to check entries such as the length of the postal code or bank account number.

ZM (Zambia)

Currency Currency key for monetary amounts in the system. ZMW (Zambian Kwacha)

Language The language key designates the language in which you display texts, enter texts, or print documents.

EN (English)

After entering the above information click (Address). In the Edit address: ZM## pop-up, enter the following information:


Title Possible titles are stored in a check table. Company

Name Name of an address. ## Zambikes Company Ltd.

Search term 1/2 Short description used for search helps. 0##

Street/House Number

Street name as part of the address. Lumumba Road/Plot 8211

Postal Code Postal code as part of the address. 10101

City City name as part of the address. Lusaka


ZM (Zambia)

Time zone The relevant time zone as per the country code (if left empty the system will auto populate)

CAT

*Leave the following fields as blank (delete existing values if any) Region, Telephone, Mobile Phone, Fax, Email.

After you’ve entered all data as specified in the table above, click (Copy) to close the address

pop-up screen. Click (Save) to save the new details. The system will then display the message ‘Data was saved’.


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ZC 4: Create controlling area

Time 5 min.

Task Create a new controlling area that will later be linked with the new company code.

Short description You will create a controlling area that will eventually be associated with your company code. A controlling area is a management accounting entity that rolls up all cost accounting data for a company code. One has the choice of either using one controlling area for all companies in a group or separate controlling areas for each company code. This case study makes use of the latter.

To create a new controlling area follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Controlling ► Maintain Controlling Area.

In the Choose Activity pop-up, double-click Maintain Controlling Area.

In the Change View ‘Basic data’: Overview screen, click .



Controlling Area Uniquely identifies a controlling area. ZM##

Name Name of the controlling area. ## Zambikes Zambia

CoCd->CO Area Controls assignment of company codes. Cross-company-code cost accounting

Currency Type Currency type for a controlling area. 10 (Company code currency)

Currency Currency key for monetary amounts in the system.

ZMW (Zambian Kwacha)

Chart of Accts Uniquely identifies a chart of accounts. GL00 (Your chart of accounts)

Fiscal Year Variant Used to define the fiscal year. K1 (Cal. year, 1 special period)

Click (Save). The system will then display the message ‘Data was saved’.

Click (Exit). The system will display a pop-up asking whether you want to save the changes.

Click Yes then (Cancel) to return to the IMG menu.

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ZC 5: Assign company code to controlling area

Time 5 min.

Task Assign your company code to the new controlling area.

Short description You will link your company code to your newly created controlling area (ZM##).

As noted before, larger firms can roll up many company codes into one controlling area. This allows management to have one view of cost accounting data across multiple legal entities. In that situation, each company code within a given controlling area can use a different base currency, although they must have the same chart of accounts.

To assign a company code to a controlling area, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ► Controlling ► Assign company code to controlling area.

In the Change View ‘Basic data’: Overview screen, select the ZM## row.

While ZM## is highlighted, double-click the Assignment of company code(s) folder to display the Change View ‘Assignment of company code(s)’: Overview screen.

In the Change View ‘Assignment of company code(s)’: Overview screen, click to change the screen into edit mode. In the New Entries: Overview of Added Entries screen, enter the following information:


CoCd An organizational unit within financial accounting.

ZM## (## Zambikes Company Ltd)


Click (Exit) to return to the IMG menu.

ZC 6: Assign controlling area to operating concern

Time 5 min.

Task You will link your controlling area to an already existing operating concern.

Short description An operating concern is a management accounting entity that rolls up all profitability data from your company code and controlling area(s).

Larger firms can roll up many SAP controlling areas into one operating concern. This allows management to have one view of profitability across multiple legal entities.

To assign a controlling area to an operating concern, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ► Controlling ►

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Assign controlling area to operating concern.

You are in the Change View ‘Assignment Operating concern -> CO Area’: Overview screen.

Enter GL00 (GBI Global) as the operating concern for your controlling area (ZM##).

Click (Enter) at the top of the screen and confirm the details before selecting (Save). The system will then display the message ‘Data was saved’.


ZC 7: Define standard hierarchy

Time 10 min.

Task You will create an empty cost center standard hierarchy within your controlling area.

Short description Your cost center standard hierarchy (ZM##) will eventually consist of all cost centers within your company code for a given time period. The standard hierarchy will represent all costs associated with your legal entity for that time period and will serve as a basis for management accounting (Controlling) reporting.

To create a standard hierarchy, follow the menu path:

SAP Customizing Implementation Guide ► Controlling ► General Controlling ► Organization ► Maintain Controlling Area.

In the Choose Activity pop-up, double-click Maintain Controlling Area.

In the Change View Basic data: Overview screen, select the ZM## row and then click (Details) on the application toolbar.

In the Change View Basic data: Details screen, enter the following information:


CCtr Std. Hierarchy Indicated hierarchy of cost center groups in which all cost centers in a controlling area are gathered together.

ZM##

Double-click Activate component/control indicators. In the Check Standard Hierarchy pop-up,

click .

In the Change View ‘Activate components/control indicators’: Overview screen, click

. In the New Entries: Details of Added Entries screen, enter the following information:


Fiscal Year Period, 12 months as a rule, for which the company is to create its inventory and balance sheet.

Current Year


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Cost Centers Indicator controlling, together with the CO interface, specific settings in cost center accounting.

Component active

Order Management

Together with the CO interface, this indicator controls specific settings for order management.

Component active

Commit. Management

Controls whether commitments are updated. Components active

After you’ve entered all data as specified in the table above, click (Enter) on the standard

toolbar to confirm the new details entered. Click (Save). The system will then display the message ‘Data was saved’.


ZC 8: Assign tax codes for non-taxable transactions

Time 5 min.

Task Assign non-taxable tax codes to your new company code.

Short description SAP carries out several goods movement transactions that are not tax related but affect tax-related accounts. To allow proper processing of these movements (without any tax implications), you need to assign non-taxable tax codes to each company code. The non-taxable tax codes A0 (output tax) and V0 (input tax) have already been defined and can be used by companies operating in Zambia.

To assign tax codes, follow the menu path:

SAP Customizing Implementation Guide ► Financial Accounting (New)► Financial Accounting Global Settings (New)► Tax on Sales/Purchases ► Posting ► Assign Tax Codes for Non-Taxable Transactions.

In the Change View ‘Allocate Co.Cd->Non-Taxable Transactions’: Overview screen, change Input tax code and Output tax codes for ZM## to V0 and A0 (its zero not letter ‘o’) respectively.

Click (Save). The system will display the message

Click . The system will then display the message ‘Data was saved’.

Click on (Exit) to return to the IMG menu.

ZC 9: Copy document number ranges

Time 10 min.

Task Copy number ranges for all financial accounting documents from company code US00.

Short description As Zambikes’s users create vendor credit memos (or any other financial accounting document type), each vendor credit memo will have a unique, sequential number from a range defined in this step.


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To copy number ranges follow the menu path:

SAP Customizing Implementation Guide ► Financial Accounting (New) ► Financial Accounting Global Settings (New) ► Document ► Document Number Ranges ► Documents in Entry View ► Copy to Company Code.

In the Document Number Ranges: Copying to Company Code screen, enter the following information:

Attribute Data value

Source Company Code US00 (Global Bike Inc.)

Target company code ZM## (Your Zambikes Ltd.)

Click (Execute).

In the Copy Document Number Ranges pop-up, click .

Keep clicking (Exit) until you return to the SAP Easy Access menu.

Part II – Procurement organizational data

ZC 10: Define plants

Time 15 min.

Task Create two plants, one for Lusaka and another for Mungwi.

Short description In SAP, a plant is an organizational element that either holds inventory or is responsible for planning material. Thus plants can include not only factories, but also warehouses, distribution centers, service centers and offices.

For this task you will create two plants, one to represent a manufacturing facility located in Mungwi (Plant Mungwi) and another to represent a distribution center located in Lusaka (DC Lusaka). Both plants are located in Zambia and operate within one legal entity (i.e. company code), in this case Zambikes Company Ltd (ZM##).

You will also create a new transport request and save all changes that follow under that request.

To define a new plant, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Logistics – General ► Define, copy, delete, check plant.

In the Choose Activity pop-up, double-click Define Plant.

In the Change View ‘Plants’: Overview screen, click .


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Plant Key uniquely identifying a plant. MU##

Name 1 Name. ## Plant Mungwi

Factory Calendar Identifies the factory calendar that is valid for this plant. ZM (Zambia)

After you’ve entered all data as specified in the table above, click (Enter) on the standard toolbar to confirm the new details entered.

Click (Address). In the Edit address: MU## pop-up, enter the following information:



Name Name of an address. ## Plant Mungwi

Search term ½ Short description used for search helps. 0##

Street/House Number

Street name as part of the address. Mungwi Road/ Plot 1959


City City name as part of the address. Lusaka West


ZM (Zambia)

After you’ve entered all data as specified in the table above, click (Copy).

In the New Entries: Details of Added Entries screen, click (Save).

In the Edit address MU## pop-up, click (Copy).

In the New Entries: Details of Added Entries screen, click (Back) to go back to a list of plants. The newly created plant MU## (## Plant Mungwi) should have been added to the list.

Click and repeat the process of adding another plant, this time using the following details:



Plant Key uniquely identifying a plant. LU##

Name 1 Name. ## DC Lusaka

Factory Calendar Identifies the factory calendar that is valid for this plant. ZM (Zambia)

In the Edit address: LU## pop-up, enter the following information:



Name Name of an address. ## DC Lusaka

Search term ½ Short description used for search helps. 0##


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Street/House Number

Street name as part of the address. Lumumba Road/ Plot 8211


City City name as part of the address. Lusaka


ZM (Zambia)

When done with adding the second plant, confirm that both new plants are listed.


ZC 11: Assign plants to company code

Time 5 min.

Task Link the two new plants to your company code.

Short description Each plant can only be associated with exactly one company code.

To assign a plant to a company code , follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ► Logistics – General ► Assign plant to company code.

In the Change View ‘Assignment Plant – Company Code’: Overview screen, click .

In the New Entries: Overview of Added Entries screen, enter the following information:

CoCd Plnt

ZM## (Your Zambikes Company Ltd.) MU## (Your Plant Mungwi)

ZM## (Your Zambikes Company Ltd.) LU## (Your DC Lusaka)

After you’ve entered all data as specified in the table above, click (Enter) on the standard

toolbar to confirm the new details entered. Click (Save). The system will then display the message ‘Data was saved’.


ZC 12: Set up plant parameters

Time 10 min.

Task Specify inventory management parameters at each of your two plants.

Short description This is useful as it allows Zambikes to improve plant efficiency by creating the following automatic actions at each plant:


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New storage locations are automatically generated when needed. Thus if a warehouse person receives raw material (assuming raw material storage location doesn’t exist) for the first time, a RM storage location is automatically created.

Purchase order deliveries are automatically completed when the correct quantity is received.

Reservations of inventory for a sales order are automatically deleted after 30 days.

To specify the inventory management parameters, follow the menu path:

SAP Customizing Implementation Guide ► Materials Management ► Inventory Management and Physical Inventory ► Plant Parameters.

In the Change View ‘General Plant Settings in Inventory Management’: Overview screen, click

.

In the New Entries: Details of Added Entries screen, enter the following information: Attribute Description Data value

Plant The plant to apply the settings. MU## (Your Mungwi Plant)

Create SLoc. automat.

Indicates that automatic creation of storage location data in the material master record at the time of the first goods receipt is allowed.

Selected

Del. compl. default

Suggests the ‘delivery completed’ indicator as a default value when a goods receipt is posted with reference to an order.

Selected

Movement Allowed

Specifies that goods movements are allowed for reservation items.

Selected

Days. mvt. allowed

Indicates the number of days movements are allowed for a reservation item.

30

Retention period Indicates the number of days during which a reservation item resides in the system before being deleted.

30

Click (Save). The system will then display the message ‘Data was saved’.Click (Back) once to return to the Change View ‘General Plant Settings in Inventory Management’: Overview screen.

In the Change View ‘General plant settings in Inventory Management’: Overview screen, click

. Repeat the process to apply the same parameters to plant LU##.



ZC 13: Maintain storage locations

Time 10 min.

Task Create four storage locations for each plant.

Short description Storage locations (for example: Raw Material = RM##, Trading Goods = TG##) indicate where material is physically kept. Storage locations also track the on-hand quantity of

SAPEVENT:DOCU_LINK/DS:GLOS.3526BF07AFAB52B9E10000009B38F974

SAPEVENT:DOCU_LINK/DS:GLOS.3526C107AFAB52B9E10000009B38F974

SAPEVENT:DOCU_LINK/DS:GLOS.3526C107AFAB52B9E10000009B38F974

SAPEVENT:DOCU_LINK/DS:GLOS.3526BF2AAFAB52B9E10000009B38F974

SAPEVENT:DOCU_LINK/DS:GLOS.3526BF2AAFAB52B9E10000009B38F974


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each material. There may be one or more storage locations within a plant. It is possible to store material data specific to a storage location. Stock is managed only on a quantity basis and not on a value basis at storage-location level in the system.

You will create four storage locations (Raw-Materials, Semi-Finished Goods, Finished Goods and Miscellaneous) for plant MU## and another four (Semi-Finished Goods, Finished Goods, Trading Goods and Miscellaneous) for plant LU##.

To create storage locations for a plant, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Materials Management ► Maintain storage location

In the Determine Work Area: Entry pop-up, enter your Plant Mungwi (MU##) and then click (Continue).

In the Change View ‘Storage Locations’: Overview screen, click .


SLoc Description

FG## ## Fin. Goods

MI## ## Misc. Goods

RM## ## Raw Materials

SF## ## Semi-Finished



Repeat the process, but this time for plant LU##.


SLoc Description

FG## ## Fin. Goods

MI## ## Misc. Goods

SF## ## Semi - Finished

TR## ## Trading Goods

Once you have confirmed and saved your changes, click (Exit) to return to the IMG menu.

ZC 14: Maintain purchasing organization

Time 5 min.

Task Create a purchasing organization for Zambikes.

Short description A purchasing organization is responsible for strategic purchasing activities such as negotiating contracts and developing pricing agreements with Zambikes’s vendors.


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Zambikes purchasing is centralised, therefore you will create only one purchasing organization, which will be in charge of all purchases.

To create a new purchasing organization, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Materials Management ► Maintain purchasing organization

In the Change View ‘Purchasing Organizations’: Overview screen, click .


Purch. Organization Purch. Org. Descr.

ZM## ## Zambikes



ZC 15: Assign purchasing organization to company code and plants

Time 10 min.

Task Assign your purchasing organization (ZM##) to your company code and plants.

Short description A purchasing organization is responsible for strategic purchasing activities such as negotiating vendor contracts and developing pricing agreements. Management decides if these strategic purchasing activities should be done at the enterprise level (providing the efficiency of centralisation), or locally (providing local effectiveness). SAP can model three approaches:

Enterprise level: one purchasing organization for all company codes within the group; Company level: one purchasing organization for each company code within the group; Plant level: one purchasing organization for each plant within a company code.

Zambikes has adopted a company-level model. Your purchasing organization (ZM##) will be associated with your company code only, and with both plants in your company code.

To assign a purchasing organization to a company code, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ► Materials Management ► Assign purchasing organization to company code.

In the Change View ‘Assign Purchasing Organization -> Company Code’: Overview screen, enter your company code (ZM##) next to your newly created purchasing organization.

Click (Enter) on the standard toolbar to confirm the new details entered. Click (Save). The system will then display the message ‘Data was saved’.



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The next step is to assign the purchasing organization to the two plants.

To assign a purchasing organization to a plant, follow the menu path:

SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ► Materials Management ► Assign purchasing organization to plant.

In the Change View ‘Assign Purchasing Organization to Plant’: Overview screen, click


POrg Plnt

ZM## (Your Zambikes) MU## (Your Plant Mungwi)

ZM## (Your Zambikes) LU## (Your DC Lusaka)



ZC 16: Create a purchasing group

Time 5 min.

Task Create a purchasing group (Z##).

Short description A purchasing group is a buyer (or group of buyers) who is responsible for day-to-day purchasing activities, such as approving purchase requisitions and ordering material.

To create a purchasing group, follow the menu path:

SAP Customizing Implementation Guide ► Materials Management ► Purchasing ► Create Purchasing Groups.

In the Change View ‘Purchasing Groups’: Overview screen, click .


Purchasing Group Descr. Pur. Grp

Z## ## Zambikes




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ZC 17: Group together valuation areas

Time 5 min.

Task You will associate each of your two plants (MU## and LU##) to valuation grouping code 0001 (note that this valuation group code already exists within your SAP instance).

Short description This is one of the steps involved in configuring SAP to automatically post General Ledger transactions associated with the Procure-to-pay business process. This task ensures at a very high level that your two plants use similar General Ledger conventions during material movement transactions.

To group valuation areas, follow the menu path:

SAP Customizing Implementation Guide ► Materials Management ► Valuation and Account Assignment ► Account Determination ► Account Determination Without Wizard ► Group Together Valuation Areas.

In the Change View ‘Acct Determination for Val. Areas’: Overview screen, enter 0001 as a

Val.Grpg Code for your two plants (MU## and LU Click (Save). The system will then display the message ‘Data was saved’.


ZC 18: Maintain default values for tax codes

Time 5 min.

Task Specify the default value for the tax code to be used during the invoice verification process.

Short description This setting will enhance the efficiency of Zambikes personnel during the invoice verification process, since the correct tax code is defaulted into the program.

To specify the default value for a tax code, follow the menu path:

SAP Customizing Implementation Guide ► Materials Management ► Logistics Invoice Verification ► Incoming Invoice ► Maintain Default Values for Tax Codes.

In the Change View ‘Tax Defaults in Invoice Verification’: Overview screen, double-click ZM##.

In the Change View ‘Tax Defaults in Invoice Verification’: Details screen, enter the following information:


Tax Code (Defaults, domestic)

A tax category which must be taken into consideration when making a tax return to the tax authorities.

V1 (Input Tax)

Tax Code (Default value unplanned delivery costs )

A tax category which must be taken into consideration when making a tax return to the tax authorities.

V1 (Input Tax)


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ZC 19: Assign tax indicators for plants

Time 5 min.

Task Assign tax indicators for the two plants (MU## and LU##)

Short description Allows the system to automatically determine the tax code on materials management documents.

To assign a tax indicator to a plant , follow the menu path:

SAP Customizing Implementation Guide ► Materials Management ► Purchasing ► Taxes ► Assign Tax Indicators for Plants.

In the Change View ‘Assignment of Tax Indicator to Plant’: Overview screen, enter 1 (Taxable) as

the Plant Tax ID for your two plants (MU## and LU##). Click (Save). The system will then display the message ‘Data was saved’.


ZC 20: Define attributes of material types

Time 10 min.

Task Specify valuation techniques for your material types.

Short description Materials are categorised into different material types based on the way they are used. Examples of material types include finished goods (FERT) and trading goods (HAWA). When you create a new material in the material master, you must assign it to a material type.

Material types already exist in your SAP client. In this step you will indicate that you want to track the quantity and value of each material (for each material type) within each storage location within each plant.

To set up valuation for a material type, follow the menu path:

SAP Customizing Implementation Guide ► Logistics – General ► Material Master ► Basic Settings ► Material Types ► Define Attributes of Material Types.

In the Change View ‘Material types’: Overview screen, double-click ROH (Raw materials).

In the Change View ‘Material types’: Details screen, double-click Quantity/value updating folder (under ‘Material types’ folder).


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In the Change View ‘Quantity/value updating’: Overview screen, make sure the Qty updating and Value updating checkboxes for your Mungwi plant (MU##) are selected. Note that Raw Materials are maintained only in the Mungwi plant.

Quantity updating specifies that the material is managed on a quantity basis in the material master record for the valuation area.

Value updating specifies that the material is managed on a value basis in the material master record for the valuation area.

Click (Enter). The system will give you a warning message that says ‘Changing the

quantity/value update may cause inconsistencies’. Click (Enter) again to confirm the

changes. Click (Save). The system will then display the message ‘Data was saved’.

Click (Back) twice to return to the Change View ‘Material types’: Overview screen.

In the Change View ‘Material types’: Overview screen, double-click Semi-finished products (HALB) and repeat the process above to update its Qty updating and Value updating settings.

Since semi-finished products are stored in both plants, make sure that the checkboxes for both plants (MU## and LU##) are selected.

Remember to confirm your entries by clicking (Enter) twice and then (Save).

Click (Back) twice to return to the Change View ‘Material types’: Overview screen.

Repeat for the process again to update Qty updating and Value updating settings for finished products and trading goods (HAWA).

Remember that since finished products (FERT) are stored in both plants, you must select the checkboxes for both MU## and LU##, whereas for trading goods (HAWA) you will select only the LU## checkbox.



WORKSHOP

Part III: Master data and business process execution

ZC 21: Create material master

Time 10 min.

Task Create a material master (raw material).

Short description Before executing a business process to test the customization, one needs to first create the necessary master data. In this case, the material master as well as the vendor master data have to be created first, before executing the procurement process.

For master data, since the material already exists in the client (is being used by company code ZM00), the creation task will instead involve extending an existing material number so that it can be maintained in the new company code. Extending (instead of recreating) material is necessary to avoid duplicates and to take advantage of data centralisation.

To create a raw material master record, follow the menu path:

Logistics ► Materials Management ► Material Master ► Material ► Create (Special) ► Raw Material (MMR1).

In the Create Raw Material (Initial Screen), enter the following information:


Material Alphanumeric key uniquely identifying the material.

TLAX10##

Industry sector The branch of industry to which the material is assigned.

Mechanical engineering

Copy from…Material

Material whose data you want the system to copy.

TLAX10##

After you’ve entered all data as specified on the table above click (Continue).

In the Select View(s) pop-up, highlight the Basic Data 1, Purchasing, General Plant Data/Storage 1, and Accounting 1 rows.

Click (Save as default values) and then click (Continue).

In the Organizational Levels pop-up, enter the following information:


Plant Key uniquely identifying a plant. MU## (Your Mungwi plant)

Copy from Plant Plant of the reference material. MU00

Storage Location Storage location of the reference material. RM##

Click (Save as default values) and then click (Continue). You will receive the message ‘The material already exists and will be extended’.


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In the Create Raw Material TALX1001## screen, enter the following information:


Material Description (Short Text) Material description. ## Trailer Axis

Purchasing Group Key for a buyer or a group of buyers.

Z## (Your Zambikes)

Click on (Enter) until you reach the last screen.

In the Last Data Screen Reached pop-up, click . You will receive a message that says ‘Material TLAX10## created’.

Click (Exit) to return to the SAP Easy Access menu.

ZC 22: Create vendor

Time 10 min.

Task Create a new vendor (Space Bike). This vendor will be used to execute the procurement process.

Short description Vendors are established in both accounting and purchasing. In order to be active, the vendor master record requires three views – general, accounting, and purchasing. Vendors can be created centrally, meaning that all views are generated concurrently, or responsibility can be distributed to accounting and purchasing for creating and maintaining their respective views. In this workshop, central creation will be used to enter all of the needed data. In this way, this vendor record will contain all of the information necessary to conduct business transactions.

To create a new vendor, follow the menu path:

Logistics ► Materials Management ► Purchasing ► Master Data ► Vendor ► Central ► Create (XK01).

In the Create Vendor: Initial Screen leave the Vendor field blank. The system will generate a new number. Enter ZM## for Company Code, ZM## for Purchasing Organization, and KRED as

Account group. Then click (Enter).

In the Create Vendor: Address screen, choose Company as Title, enter ## Space Bike as Name, and your number (replace 0## with your SAP number) for Search term. As Street, enter AB Business Park Dr, as House number enter 20 as Postal Code enter 7000, and Cape Town for City. Further specify ZA as Country and WC as Region.

Then click (Enter) or (Next screen) until you see the Create Vendor: Control screen.

In the Create Vendor: Control screen, under the Tax information field group, enter 12-34560## as Tax Number 2 – remember to replace ## with your number. Confirm your entry and skip the

next screen (Create Vendor: Payment Transactions) by clicking (Enter) or (Next screen) twice.


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In the Create Vendor: Accounting information Accounting screen, enter Recon. Account

300000. Then click (Enter) or (Next screen).

In the Create Vendor: Payment Transactions Accounting screen, enter Payment Terms 0001,

and choose Chk double inv. Then click (Enter) or (Next screen).

In the Create Vendor: Correspondence Accounting screen, enter your name as Clerk at vendor

(under the Correspondence block). Then click (Enter) or (Next screen).

In the Create Vendor: Purchasing Data screen, enter USD as Order currency and 0001 for

Terms of payment. Then click (Enter) or Next screen).

There is no data to be entered in the ‘Create Vendor: Partner Functions’ screen.

Click (Save) to save your vendor master record. The system will automatically assign a unique number for your vendor. Write down your new vendor number.


ZC 23: Create purchasing info record

Time 15 min.

Task Create a new purchasing info record between the vendor (Space Bike) and the raw material (Trailer Axis).

Short description Purchasing info records contain information about the terms for purchasing a specific material from a vendor. They are maintained for a vendor/material combination and can contain data for pricing and conditions, over-delivering and under-delivering limits, planned delivery dates and availability periods.

To create a new purchasing info record, follow the menu path:

Logistics ► Materials Management ► Purchasing ► Master Data ► Info Record ► Create (ME11).

In the Create Info Record: Initial Screen enter the following information:


Vendor Vendor number for the supplier of the relevant material.

137……(Your newly created vendor number)

Material The material to which this info record applies. TLAX10## (Your newly created material)

Purchasing Org. Purchasing organization responsible for the info. record.

ZM## (Your Zambikes purchasing org.)

Plant Plant receiving the goods. MU## (Your Mungwi plant)

Info Category – Type of info record, in this case a standard info Selected


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Standard record.

After you’ve entered all data as specified in the table above, click (Enter).

In the Create Info Record: General Data screen, enter the following information:

1. Reminder 1, 2, 3: These three fields indicate reminders to be issued to the vendor. Negative value indicates that the vendor should be notified prior to quotation or delivery date. Enter -1, 1 and 7 as the first, second and third reminders, respectively.

2. Vendor Mat. No: this is the material number that is used by the vendor for this material. Enter TLAX1###.

3. Vendor Material Group: refers to the material group used by the vendor for this material. Enter RAW.

4. Salesperson: the name of the contact person. Enter your name.

5. Return Agreement: this can indicate if goods return is available, and if there are refunds available. Enter 03.

6. Certificate Category: type of certificate issued by the vendor that applies to this material. Enter 1.

After entering all the data, click (Enter).

The Create Info Record: Purch. Organization Data 1 view is maintained separately for every procurement type. We have chosen the Standard procurement type, and we can populate several relevant fields here.

1. Planned Delivery Time: default time in days in which the material delivery is planned. Enter 7 in the Pl. Delv. Time field.

2. Purchasing group: enter Z##.

3. Standard Quantity: standard purchase quantity for material. Enter 10 in this field.

4. Minimum Quantity: do not allow procurement of a quantity less than stated here – enter 5 in this field.

5. Maximum Quantity: we do not want to purchase more than this quantity at a time. Enter 100.

6. Net Price: net price of material per procurement unit. Enter 10 USD.

7. Incoterms: trading and delivery terms. Enter EXW in this field.

8. Enter the location Mungwi next to EXW in the Incoterms field.

Click (Save). Record your Purchasing info record number.


WORKSHOP

ZC 24: Create purchase order

Time 10 min.

Task Use the SAP Easy Access menu to create a purchase order.

Short description Create a purchase order (PO) for the material you have created (## Trailer Axis) and submit the PO to the vendor you have created (## Space Bike).

In order to create a purchase order, follow the SAP Easy Access menu path:

Logistics ► Materials Management ► Purchasing ► Purchase Order ► Create ► Vendor/Supplying Plant Known (ME21N).

In the Create Purchase Order screen, enter your vendor number (137….) in the Vendor field.

In the same screen, open the header data by clicking (Header). In the Org. Data view, choose or enter ZM## for Purchasing Org., Z## for Purch. Group, and ZM## for Company Code.

Then click (Enter).

Open the item list by clicking (Item overview). You have to enter the following materials and information (as shown below).

Attribute Data value

Material TLAX10## (Your newly created material)

PO Quantity 10

Plant MU## (Your Mungwi plant)

After you’ve entered all data as specified in the table above, click (Enter). You might get a system warning with regard to pricing as well as a message querying whether the delivery date

can be met. Accept them by clicking (Enter).

Click (Save) to save the purchase order. A Save Document pop-up will appear. Click to save the purchase order.

Note that SAP will assign a purchase order document number (bottom-left of the screen).

. Record the purchase order number for future reference.

The Purchase Order screen is again blank, ready for another purchase order to be entered.



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ZC 25: Create goods receipt for purchase order

Time 5 min.

Task Use the SAP Easy Access menu to create a goods receipt.

Short description Receive into inventory the stock items ordered from ## Space Bike in the previous exercise.

To create a goods receipt, follow the menu path:

Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO).

Make sure that the movement type (top-right corner) is set to GR goods receipt 101. Enter your

PO number from the previous exercise. Click (Enter).

Ensure that the box in the OK column is ticked. Ticking it indicates that you want to adopt it into

the goods receipt document. If a line is grayed out, minimise the Item Detail Data by clicking (Close detail data). Ensure that the box in the OK column is ticked for each item. Ticking it indicates that you want to adopt it into the goods receipt document.

In the SLoc column, enter Storage Location RM## (raw materials). Then click (Post) to post the goods receipt.

Note that the SAP system will assign a unique number for this new goods receipt document. This

number will appear in a message at the lower-left corner of the screen.

. Remember to record the number.


ZC 26: Capture invoice from vendor

Time 5 min.

Task Use the SAP Easy Access menu to create an invoice receipt.

Short description Enter an invoice received from ## Space Bike (for $116) associated with the recent PO and goods receipts.

To enter an invoice, follow the menu path:

Logistics ► Materials Management ► Logistics Invoice Verification ► Document Entry ► Enter Invoice (MIRO).

Enter today’s date as Invoice date.

In the Amount field, enter the total amount (116) and select the Calculate tax checkbox. Make sure the drop-down field to the right of the Tax Amount field displays Input Tax Code V1.


WORKSHOP

As Text, enter INVOICE 00-0##.

Then choose Purchase Order/Scheduling Agreement in the bottom drop-down list and enter your PO number from the first exercise in the text field next to it (to find it, you can use F4 and

helpful search criteria such as vendor). Click (Enter).

If the transaction is entered correctly (in respect of debits and credits), you will have a green light with a $0 balance.

Click (Post) to save the invoice receipt. The system will again create a unique invoice

document number. . Remember to record the number.


ZC 27: Post payment to vendor

Time 5 min.

Task Use the SAP Easy Access menu to post a payment to a vendor.

Short description Issue a payment to ## Space Bike to settle the accounts payable.

To post a payment to a vendor, follow the menu path:

Accounting ► Financial Accounting ► Accounts Payable ► Document Entry ► Outgoing Payment ► Post (F-53).

First, enter today’s date as Document Date. If requested, enter Company Code ZM## and Currency/Rate as USD. In the Bank Data field group, for Account enter 100000 (Bank Account) and for Amount enter the amount you are going to pay (116).

In the Open Item Selection field group, enter or search for the Account (Vendor) number for Space Bike (use search term 0##) and enter it into the Account field. All other settings remain

unchanged. Choose .

Make sure the Not Assigned field at the bottom of the screen shows 0.00.

Click (Save) to post your payment. Again, the system creates a unique payment document

number. . Record the number.

Click (Exit) to return to the SAP Easy Access menu and as no data will be lost, accept the SAP warning message by choosing Yes.


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Student Details:

Name SAP Login

_________________________________________________________ ZMB-

Transport:

Transport Name Transport Number Created by User

1. __________________________________________ _________________ ZMB-

2. __________________________________________ _________________ ZMB-

Organizational Units – Part I

Organization Unit Name Number

Company Code __________________________________________ ____________________ Controlling Area __________________________________________ ____________________ Standard Hierarchy __________________________________________ ____________________

Organizational Units – Part II

Organizational Unit Name Number Plant 1 __________________________________________ ____________________ Storage Location 1 __________________________________________ ____________________ Storage Location 2 __________________________________________ ____________________ Storage Location 3 __________________________________________ ____________________ Storage Location 4 __________________________________________ ____________________ Plant 2 __________________________________________ ____________________ Storage Location 1 __________________________________________ ____________________ Storage Location 2 __________________________________________ ____________________ Storage Location 3 __________________________________________ ____________________ Storage Location 4 __________________________________________ ____________________ Purchasing Organization __________________________________________ ____________________ Purchasing Group __________________________________________ ____________________

Master Data

Master Data Name Number

Vendor __________________________________________ ____________________ Material __________________________________________ ____________________ Purchase Info Record __________________________________________ ____________________

Documents

Document numbers Document numbers

Purchase Order __________________________________________________ Good Receipt __________________________________________________ Invoice __________________________________________________ Payment __________________________________________________

ZC - Data sheet