sap logistic case of study

7/28/2019 sap logistic case of study

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SAP UCC, Stefan Weidner May 2009 Page 1 of 20

Integration Case StudyLO

SAP ERP 6.0


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Table of Contents

SCENARIO AND PROBLEM DESCRIPTION......................................................... ................................................... 3

PREPARING THE MASTER DATA ............................................................... .............................................................. 4

CREATING SDMASTERRECORDS......................................................... ................................................................ ......... 4Creating Customer Master Record............................................ ..................................................................... ......... 4Creating Condition Record for Sales Price................................................................. ............................................ 6

CREATING MMMASTERRECORDS....................................................... ................................................................ ......... 7Creating Vendor Master Record .................................................................... ......................................................... 7Creating Purchasing Info Records .................................................................... ...................................................... 7

Maintaining Source List ............................................................. .................................................................... ......... 9

TESTING THE BUSINESS PROCESS .......................................................... ............................................................ 10

ENTERING SALES ORDER............................................................ ............................................................... .................. 10CHECKING STOCKBALANCE....................................................... ............................................................... .................. 11MATERIAL REQUIREMENTS PLANNING IN MRPRUN............................................................ ....................................... 11CHECKING CURRENT MRPSITUATION ............................................................ ............................................................ 11PRODUCING ENGINES....................................................... ................................................................ ............................ 12

Creating Production Order for Engines.............................................................. .................................................. 12Creating Purchase Orders for Components ....................................................................... ................................... 12

Entering Goods Receipt for Purchase Order ........................................................................... ............................. 14Producing Engines ............................................................ ................................................................. ................... 14Checking Materials Planning Situation...................................... ................................................................... ........ 15

PRODUCING MOTORCYCLES ....................................................... ............................................................... .................. 15Creating Production Order for Motorcycles .......................................................................... ............................... 15Creating Purchase Order for Frames .............................................................. ..................................................... 16

Entering Goods Receipt for Purchase Order ........................................................................... ............................. 16Producing Motorcycles........................................................................... ............................................................... 17Checking Materials Planning Situation...................................... ................................................................... ........ 17

CONTINUING THE SDPROCESS ............................................................. ................................................................ ....... 18Creating Delivery for Sales Order ...................................................................................................... .................. 18Picking and Goods Issue .................................................................. ............................................................. ........ 18

Billing ................................................................. ...................................................................... ............................. 19Overview of SD Document Flow .................................................................... ....................................................... 19Posting Payment Receipt .................................................................... ................................................................... 19

Impact of Payment Receipt on Sales Document Flow .................................................................... ....................... 20


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Scenario and Problem Description

This case study will emphasize the integration between the following Logisticsmodules: Sales & Distribution (SD), Materials Management (MM), and

Production Planning and Control (PP). The processes you will use data fromthe PP case study, which you will now supplement with relevant data from theSD and MM modules.

The objective is to implement integrated sales order processing. An incomingsales order for a large number of our motorcycles cannot be covered bywarehouse stocks. As a result, a lot has to be produced. Moreover, sufficientquantities of the motorcycle components have to be ordered from oursupplier. You want to implement the necessary requirements planningthrough an automated MRP run.The following diagram illustrates the first partof the business process.

Before you start the case study, you can display the transaction codes in theSAP Easy Access menu. To do this, select menu item: ExtrasSettings,

and press ENTER or click to confirm.

Change your SAP GUI settings as follows: Choose , and then Options. Goto the Expert tab. Select the Show Keys in All Dropdown Lists indicator, andchoose ENTER to confirm.


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Preparing the Master Data

Creating SD Master Records

Creating Customer Master Record

From the SAP Easy Access, choose Logistics Sales & Distribution Master Data Business Partner Customer Create Complete(transaction code XD01).

Click on the line and choose account groupGeneral customers [KUNA]. Number the new customer Cust-## (as always,## stands for your computer/group number). Assign the new customer to

company code [1000], sales organization [1000], distribution channel [10],and division [00]. As a reference, use customer [1000] from company code[1000], sales organization [1000], distribution channel [10], and division [00].Please fill in all of the screen fields, even if the organizational units of thereference are identical to those of the new customer.After you have entered the data, press ENTER to confirm. The systemdisplays a message indicating that the template customer belongs to adifferent account group.

Press ENTER or click to skip this warning message.

In the Create Customer: General Data screen, fill in all required entry fields(marked with ) in theAddress tab. Please leave Country Germany [DE].

Then click Display Next Tab Page or press F8 to reach the Control Datatab. In the VAT reg.no. field, enter DE123456789. Also take a look at theother tabs, to see which values were copied from the reference customer.

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Now click . In the Billing document tab, maintain the tax

classification such that the customer is Liable for Tax [1]. Choose (Save).Click to exit the transaction.

You can use transaction code XD02 to change your customer at any time.


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Creating Condition Record for Sales Price

A condition is an agreement regarding prices, surcharges anddiscounts, taxes, and other things that are defined dependent onselected influencing factors (such as vendor, customer, customer

group) and are valid within a specific interval. This data is modeled incondition records.

In order to sell the motorcycle, a material sales price has to be defined in thesystem. To do so, create a new condition record.

In the SAP Easy Access menu, choose Logistics Sales and DistributionMaster Data Conditions Create (transaction code VK31).

In the folder Prices, choose Material Price and double-click theline. The price is valid for sales

organization [1000] and distribution channel [10].

Select Price [PR00] as condition type. For material UCC-MOTORCYCLE-##,define a price of3,999.00 per 1 piece and a validity from Todays date to12/31 of the current fiscal year.

Then click Scales or press F2. Configure your condition such that the price

of3,999.00 is valid from a quantity of1 piece, and is reduced to 3,499.00 perpiece for a quantity of51 pieces or more and 3,099.00 per piece for a quantity

of501 pieces or more. Before you save (with ), compare your entries withthe screenshot below.

If you make any mistakes when entering the data for your condition record,you can use transactions VK32 und VK33 to display and change it at anytime.

Now that you have maintained all the master data for Sales & Distribution, wewill enter the MM data.

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Creating MM Master Records

Creating Vendor Master Record

In the SAP Easy Access menu, choose Logistics Materials Management

Purchasing

Master Data

Vendor

Central

Create (transaction codeXK01).Create the new vendor for company code [1000] and purchasing organization[1000]. It belongs to account group Vendors[KRED].As a reference, use vendor [1000] from company code [1000] andpurchasing organization [1000]. In this example, the number of the newvendor account is assigned by the system automatically (internal numberassignment). As a result, you do not need to fill in the top field, Vendor.PressENTER and skip the warning message for the account group.

In the next screen, Create Vendor: Address, enter any Name, Search term1/2, and City but leave country Germany [DE]. Click ENTER to confirm the

address data (or alternatively, click Next screen or press F8). In the CreateVendor: Control screen, enter DE987654321 as the VAT reg.no.

Take a look at the other views. In the Create Vendor: Purchasing data viewdeselect the Returns vendor indicator in the Control data field group. Then

choose (Save).The system creates the new vendor master record and assigns an internalnumber. Therefore, be sure to write down the number (without leading zeros).

Vendor: _________________

Creating Purchasing Info Records

Purchasing info records in the SAP ERP System represent the

sources of information for procuring materials from specific vendors.They contain the data regarding the vendors current prices andconditions for a material, the document number of the last purchaseorder, and/or the time interval during which the material can bedelivered.

In this case study, in addition to the raw materials (engine block and cam-shaft), we will also procure the semifinished product UCC-FRAME-##externally. Therefore, we will maintain purchasing info records for these

materials that contain the purchasing prices and the respective quantitydiscounts provided.


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In the SAP Easy Access menu, choose Logistics Materials ManagementPurchasing Master Data Info Record Create (transaction code ME11).

Specify the number of the Vendoryou just created, the material number ofthe frame (UCC-FRAME-##), purchasing organization [1000], plant [1000].Press ENTER. In the next screen, you will see several default values thathave already been taken from the reference material master, and which youdo not have to change. Then click or press F7. Enter 3 days asthe Plnd delivery time and Purch. group [001]. Define a standard quantity of

10 pieces and a net price of777.16 per piece. Then click or pressF8. In the next screen, click the row with condition type PB00 and click Scales

. The price of777.16 is valid for a quantity of1 piece; the purchase priceshould be reduced to 700.00 for a quantity of100 pieces or more.

Choose (Save) and write down the number of the new info record.

Purchasing info record (Frame): ____________________

Now enter the material number of the engine block (UCC-BLOCK-##) in the

Create Info Record: Initial Screen. Then Press ENTER. Click .Enter 2 days as the Plnd delivery time and Purch. group [001]. Define astandard quantity of10 pieces and a net price of349.50 per piece. Navigateto the scales as described above and enter a price of299.50 per piece fororders of100 pieces or more. Save and write down the displayed number.

Purchasing info record (Engine block): ____________________

Repeat this procedure for the camshaft (UCC-CAMSHAFT-##), with 2 days,group [001], 10 PC as the standard quantity, and the following scale prices:

From Price1 89.95

100 69.95

Save with .

Purchasing info record (Camshaft): ____________________

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Maintaining Source List

To enable the replenishment purchasing to run automatically in the modeledbusiness process through an MRP run, you have to maintain a source listentry for the materials to be procured in this scenario. This will enable the

system to generate purchase requisitions and assign them to a source ofsupply automatically.

In the SAP Easy Access menu, choose Logistics Materials ManagementPurchasing Master Data Source List Maintain (transaction codeME01).Enter the material number of the camshaft (UCC-CAMSHAFT-##) and plant[1000], then press ENTER. In the top line, enter a validity period ofJanuary 1to December 31 of the current fiscal year, the number of your Vendor

(supplier), and the purchasing organization [1000]. Also set the Fix checkboxand maintain the MRP [1] column to make the record relevant for MRP. Then

choose Save.

Repeat the process for the engine block (UCC-BLOCK-##) and the frame(UCC-FRAME-##), using the same vendor and data as for the camshaft.

You have now maintained all the master data required for the case study.Youwill now test the business process, as shown in the diagram. You will enterthe sales order first. After checking the warehouse stocks and starting theMRP run, you will create two production orders each (for the UCC engine andUCC motorcycle) and produce them in the appropriate amounts.


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Testing the Business Process

Entering Sales Order

You receive a phone call from your customer, CUST-## who wants to order50 motorcycles UCC-MOTORCYCLE-##.

To do so, from the SAP Easy Access menu, choose Logistics Sales &Distribution Sales Order Create (transaction code VA01). Choose[OR] Standard Orderas order type and press ENTER to confirm.

Enter your new customer CUST-## as the sold-to party and specify a PONumberof your choice (numeric or alphanumeric). Then press ENTER. Thesystem then copies the relevant information from the customer master record

to the order.

Enter an order quantity of 50 pieces for your motorcycle (UCC-MOTORCYCLE-##). Press ENTER to confirm your entries.

Because warehouse stocks are not sufficient to cover the order requirements,the system should display the availability control screen. Accept the systemsdelivery proposal for a later date and the quantity of 50 pieces by clicking on

the centergreen checkmark next to the proposal for complete delivery.

The overview screen appears again. Select the first line (item 10) and chooseItem conditions . You will see the pricing details here. The system shouldhave selected the unit price of 3,999.00 which you created previously. Click

to go back to the detail screen.

The customer is made aware of your quantity discounts and decides to takeadvantage of them and increases the quantity to 100 motorcycles. Therefore,change the order quantity to 100 pieces and press ENTER. Confirm theproposal for completedelivery. Select item 10 in the overview screen and

check the conditions again. The system should select the reduced unit priceof 3,499.00 which is valid for order quantities of 51 pieces or more. Choose

, save the sales order, and write down the order number.

Standard order: _______________


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Checking Stock Balance

In the SAP Easy Access menu, choose Logistics Materials ManagementInventory Management Environment Stock Stock/Requirements List

(transaction code MD04).Enter UCC-MOTORCYCLE-## and the plant [1000], and press ENTER toconfirm. You see the available quantity and the requirement of 99 pieces thatwas caused by the sales order you just entered. Also check the storagequantity of the other four materials. None of the materials should be availablein sufficient amounts to deliver the sales order completely.

Material Requirements Planning in MRP Run

In the SAP Easy Access menu, choose Logistics

Production

MRP

Planning Single Item, Multilevel (transaction code MD02).Start planning for yourmotorcycle (UCC-MOTORCYCLE-##) in plant [1000].For field Create purchase req., choose value Purchase requisitions [1] andselect below that you want to schedule unchanged components as well.Press ENTER to confirm. The system warns you to check the inputparameters. Press ENTER again to confirm.

The system now executes the planning run. Once it is complete, it shouldinform you that 5 materials were planned, resulting in the creation of 4secondary requirements, 3 planned orders, and 2 purchase requirements.

Checking Current MRP Situation

In the SAP Easy Access menu, choose Logistics Materials ManagementInventory Management Environment Stock Stock/Requirements List(transaction code MD04) again.Enter your material UCC-MOTORCYCLE-## and plant [1000] again, andpress ENTER to confirm. You see the available quantity and the requirementof 100 pieces that was caused by the sales order you just entered. The MRPrun should also have generated a planned order. The order quantity shouldcorrespond exactly to the difference between available warehouse stock andthe sales order requirement.Also check the storage quantity of the other four materials. A secondaryrequirement should have been created in the amount of the planned orderquantity for the raw materials, and a purchase requisition in the amount of thedifference between stock balance and secondary requirement. Therequirements for the engine and the frame were converted to planned orders(because they are semifinished products).


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Producing Engines

Creating Production Order for Engines


Inventory Management

Environment

Stock

Stock/Requirements List(transaction code MD04) again.

Enter the material, UCC-ENGINE-##, and the plant [1000]. Choose ENTER.

Double-click the line that contains the newly generated planned order. TheAdditional Data for MRP Element window appears Click the button

Convert planned order to production order.

The system creates a new production order, copying all the relevant datafrom the planned order automatically. Click to check the availability

of the required components. Display the . You see that theavailable quantities of engine blocks and camshafts are not sufficient 95pieces of each are missing. Choose Back to return to the Production orderCreate: Header screen.

Release the order with . Save ( ) the production order and write down itsnumber.

Production order: _______________

You return to the stock/requirements list. Click to refresh the list. Youshould now see your production order in place of the planned order.

Creating Purchase Orders for Components

In the SAP Easy Access menu, choose Logistics

Materials Management

Inventory Management Environment Stock Stock/Requirements List(transaction code MD04) again.

Enter your engine block UCC-BLOCK-## and the plant [1000], and pressENTER to confirm.

Double-click the line with the purchase requisition. The Additional Data for

MRP Element window appears Click the button to generate a

purchase order from the purchase requisition.


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The Create Purchase Order screen appears. You see the open purchaserequisition for your window on the left. Select the number of the purchaserequisition and choose Adopt . Alternatively, you can also drag the

purchase requisition to the shopping cart (in the upper left). This copiesthe detailed data for the material from the purchase requisition and adds it as

a new item to the purchase order.

The system tells you that a cheaper purchase price is available for quantitiesof 100 pieces and more. Therefore, overwrite the PO quantity with 100 andpress ENTER to confirm. Save the purchase order and write down thedocument number.

Standard order 1: _______________

Click to refresh the stock/requirements list.You should now see yourstandard order in place of the purchase requisition.

Now enter UCC-CAMSHAFT-## in the Material field and press ENTER.Double-click the line with the purchase requisition. The Additional Data for

MRP Element window appears Click the button to generate apurchase order from the purchase requisition.

The Create Purchase Orderscreen appears. Again, drag the open purchaserequisition to the detail area. When the message indicating the cheaperpurchase price for orders of 100 pieces or more appears, change the POquantity again. Then save the purchase order and write down the POnumber.

Standard order 2: _______________

After you click to refresh the stock/requirements list, your standard order isdisplayed in place of the purchase requisition.


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Entering Goods Receipt for Purchase Order

To simplify the scenario for this case study, we assume that the vendordelivers the components on the same day. Therefore, you will now enter thegoods receipts for the purchase orders you just created.

In the SAP Easy Access menu, choose Logistics Materials ManagementPurchasing Purchase Order Follow-On Functions Goods Receipt(transaction code MIGO).

Choose [A01] Goods Receipt in the first field and [R01] Purchase Orderin thesecond. Then enter the number of your first purchase order in the third fieldand press ENTER to confirm. The system then proposes the goods receiptquantity from the purchase order. Check the Item OK checkbox at the bottomof the screen in order to flag the goods receipt document as verified. Also put

in a Delivery Note number of your choice. Then choose (Save).The system displays the number of the goods receipt document pleasewrite it down.

Goods receipt document 1: __________________

Repeat the same process for the second purchase order and write down thedocument number.


Producing Engines

You will now confirm the complete production order of the 100 engines on thesame day.

To do so, in the SAP Easy Access menu, choose Logistics Production Shop Floor Control Confirmation Enter For Order (transaction codeCO15).Enter the number of your production order in the Order field. Select FinalConfirmtn as the confirmation type. Because the last operation in the routing,0040, is flagged as a milestone operation, all the previous operations are alsoconfirmed. The goods issue postings (due to the component backflushing)and goods receipt postings in the warehouse are also performed for the

engines. Click and save. If everything worked, the systemreports:


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Checking Materials Planning Situation

In the SAP Easy Access menu, choose Logistics Materials ManagementInventory Management Environment Stock Stock/Requirements List(transaction code MD04).

First enter material UCC-ENGINE-## and plant [1000], and press ENTER toconfirm. You see an available quantity of 99 pieces which correspondsexactly to the secondary requirement for the motorcycle production order.Now check the storage quantities of the engine blocks and camshafts. Theyshould both be 5, equaling the excess quantity that was ordered to use thevendors quantity discounts.

Producing Motorcycles

Creating Production Order for Motorcycles

Now that the engines have been manufactured, you will assemble themotorcycles.

In the SAP Easy Access menu, choose Logistics Materials ManagementInventory Management Environment Stock Stock/Requirements List(transaction code MD04) again.

Enter the material UCC-MOTORCYCLE-## and the plant [1000]. ChooseENTER.Double-click the line that contains the newly generated planned order. The

Additional Data for MRP Element window appears. Click the buttonConvert planned order to production order.

The system creates a new production order, copying all the relevant datafrom the planned order automatically.

Click again to check the availability of the required components.

The display shows that while enough engines are available(you just produced them), the number of available frames is not sufficient.Choose to return to the Production order Create: Headerscreen.

Release the order with . Save ( ) this second production order and writedown its number.

Production order: _______________


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Creating Purchase Order for Frames

In the SAP Easy Access menu, choose Logistics Materials ManagementInventory Management Environment Stock Stock/Requirements List(transaction code MD04) again.

Enter the material UCC-FRAME-## and the plant [1000] again. ChooseENTER.Double-click the line with the planned order.The Additional Data for MRPElement window appears. Because the frame is not produced in-house which is the default assumption for semifinished products but purchased

externally instead, click the button to generate a purchase

requisition from the planned order. Save with .

After you click to refresh the stock/requirements list, double-click on thegenerated purchase requisition and then choose in the nextdialog, to generate a purchase order from the purchase requisition.

The Create Purchase Order screen appears. You see the open purchaserequisition on the left. Select the number of the purchase requisition and

choose Adopt or drag the purchase requisition to the shopping cart(upper left).

Once again, the system tells you that a cheaper purchase price is availablefor quantities of 100 pieces and more. Therefore, overwrite the PO quantitywith 100 and press ENTER to confirm. Confirm any warning messagesregarding the delivery date and press ENTER to confirm. Save the purchaseorder and write down the document number.

Standard order 3: ___________________

Entering Goods Receipt for Purchase Order

In the SAP Easy Access menu, choose Logistics Materials ManagementPurchasing Purchase Order Follow-On Functions Goods Receipt(transaction code MIGO).

Enter the number of your third purchase order (UCC-FRAME-##) in the thirdfield and press ENTER. Again, enter a Delivery Note number of your choiceand click Item OK to confirm the item in the goods receipt document.Savewith . Again, write down the document number.


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Producing Motorcycles

You will now confirm completion of the production order.

To do so, in the SAP Easy Access menu, choose Logistics Production Shop Floor Production Control Confirmation Enter For Order(transaction code CO15).Enter the number of your second production order in the Order field. SelectFinal Confirmtn again as the confirmation type. Because the last operation inthe routing, 0020, is flagged as a milestone operation, all the previousoperations are also confirmed. The goods issue postings (due to thecomponent backflushing) and goods receipt postings in the warehouse arealso performed for the motorcycles.

Click and save. If everything worked, the system reports:

Checking Materials Planning Situation


Inventory Management Environment Stock Stock/Requirements List(transaction code MD04).First enter your material UCC-MOTORCYCLE-##and plant [1000], and pressENTER to confirm. You see that the quantity required to supply the salesorder, 100 pieces, is now available.Now check the storage quantities of the engines and frames. All of theengines should have been used, while 5 frames should still be left in stock.

Now that you have produced the engines and assembled the motorcycles,you can deliver them to the customer and bill the sales order. The integrationbetween Sales & Distribution and Financial Accounting will be demonstratedby posting the payment receipt.


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Continuing the SD Process

Creating Delivery for Sales Order

In the SAP Easy Access menu, choose Logistics Sales & Distribution Shipping and Transportation Outbound Delivery Create SingleDocumentWith Reference to Sales Order (transaction code VL01N).From there, choose Shipping point [1000], the last working day of the nextmonth as the selection date, and the number of your sales order(see Page10). Press ENTER to confirm.The system displays the items to be delivered.Save and write down the delivery number.

Delivery: ___________________

Picking and Goods Issue

In the SAP Easy Access menu, choose Logistics Sales and DistributionShipping and Transportation Picking Create Transfer Order SingleDocument (transaction code LT03).In the Create Transfer Order for Delivery Note: Initial Screen, enter Leanwarehouse Hamburg [010] and plant [1000]. The number of your delivery

should appear automatically.In addition, choose Background [D] as the run type and Include pick.quantities and post GI [2] in the Adopt pick.quantity field. Press ENTER toconfirm and write down the number of your transfer order.

Transfer order: __________________


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Billing

In the SAP Easy Access menu, choose Logistics Sales and DistributionBilling Billing Document Create (transaction code VF01).Enter the number of your delivery in the Document column (if it does not

appear by default) and press ENTER.The system notifies you of the invoiceitems and amount. Choose Save and write down the number.Billing document: ___________ ______

Overview of SD Document Flow

Display all the documents of your sales processes in the document flow. Todo so, in the SAP Easy Access menu, choose Logistics Sales &DistributionSalesOrder Display (transaction code VA03).Enter the number of your sales order and choose Display document flow .

The display should be similar to the one below.

You see all the SD documents from the order to the accounting documentwhich has not been cleared yet. Select this document and click

to display it. Write down the gross amount (it appears in item1 of the list).

Invoice amount (gross): ___________________

Posting Payment Receipt

In the SAP Easy Access menu, choose Accounting Financial AccountingGeneral Ledger Posting Incoming Payments (transaction code F-06).

Enter todays date as the document date, Deutsche Bank customerpayments [113109] as the bank account, and the amount you calculatedabove. Under Open item selection,first choose Customers [D] as the account

type. With the F4 help in field Account, you can then find your customerCUST-##; select it. Press ENTER to confirm.


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SAP UCC S f W id M 2009 P 20 f 20

The system automatically deducted a cash discount of 3%. Because thecustomer paid the full amount, however, the cash discount amount appears inthe Not assigned field. To assign this amount, double-click the red cashdiscount amount of the selected item. The amount 0.00 should now appear inthe Not assigned field.

Click to post the payment receipt.

Impact of Payment Receipt on Sales Document Flow

Display all the documents of your sales processes again in the documentflow. To do so, in the SAP Easy Access menu, choose Logistics Sales &DistributionSalesOrder Display (transaction code VA03).

Enter the number of your sales order and choose Display document flow .

The customer accounting document has been cleared.

Congratulations, you have now completed the business process successfully.

Several of the ideas in this case study are based on materials developed by Mr Martin Vo (University ofPassau) and Mr Heino Schrader (SAP AG), whose work is acknowledged here.

This publication or parts thereof may only be disclosed to or reproduced by faculty members of institutionsconnected to SAP University Competence Centers, for use in teaching. Material may not be disclosed indigital form. Any changes to the content of the case study, or any changes made to the case study texts minor or otherwise must not distort the origin of the intellectual property, as input in person by SAP UCCand Stefan Weidner (SAP UCC Magdeburg). Should you have any queries, please contact the author.

SAP, the SAP logo, the R/3 System, and any other SAP products and services mentioned in this text,including the relevant logos, are trademarks or registered trademarks of SAP AG in Germany and

internationally. All other names of products and services are trademarks of the companies in question.

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