sop through long term planning transfer to lis/pis...

EHP4 for SAP ERP 6.0

March 2010

English

SOP through Long Term Planning Transfer to LIS/PIS/Capacity (173)

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Business Process Documentation

SAP Best Practices SOP through Long Term Planning Transfer to LIS/PIS/Capacity (173): BPD

© SAP AG of 21

Copyright

© 2010 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint

are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or

registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web

Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects Explorer, and other SAP products and services mentioned herein as well as their respective logos are

trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as

their respective logos are trademarks or registered trademarks of SAP France in the United States and in other countries.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.


© SAP AG of 21

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include Field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the

ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.


© SAP AG of 21

Contents

1 Purpose ................................................................................................................................... 5

2 Prerequisites............................................................................................................................ 5

2.1 Master Data ...................................................................................................................... 5

2.2 Roles ................................................................................................................................ 7

2.3 Preliminary Steps ............................................................................................................. 8

2.4 Business Conditions ......................................................................................................... 8

3 Process Overview Table ......................................................................................................... 8

4 Process Steps ......................................................................................................................... 9

4.1 Creating sales plan .......................................................................................................... 9

4.1.1 Sales Quantity Budget and Transferring to SOP ...................................................... 9

4.2 Sales and Operations Planning ..................................................................................... 12

4.2.1 Demand Verification (Checking Sales Plan) ........................................................... 12

4.2.2 Creating Rough-Cut Production Plan ..................................................................... 14

4.2.3 Transferring Rough-Cut Production Plan to Inactive Demand Management ......... 15

4.3 Long Term Planning ....................................................................................................... 16

4.3.1 Creating LTP Planning Scenario ............................................................................ 17

4.3.2 Executing LTP MRP Run ........................................................................................ 19

4.3.3 Evaluating Capacity Requirements ........................... Error! Bookmark not defined.

4.4 Purchasing Material Price Planning ............................................................................... 19

4.5 Manufacturing Cost Center Planning ............................................................................. 20

5 Appendix ................................................................................................................................ 20

5.1 Reversal of Process Steps ............................................................................................. 20

5.2 SAP ERP Reports .......................................................................................................... 21


© SAP AG of 21

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

1 Purpose Businesses typically have an annual planning exercise known as Annual Operating Planning (AOP). In this planning all aspects of the business are planned, namely: revenue, production, direct procurement, and indirect procurement, capacity, and product/overhead costs.

The AOP planning is also sometimes referred to as the Annual budget. The plan is prepared for the next fiscal year and data collection for the plan / budget is usually started in the last quarter of the current fiscal year.

The AOP exercise generally begins with forecasting the sales quantities and revenue for the coming fiscal year.

The sales mangers review and adjust the sales quantities based on their information and judgment. The revised sales quantity plans are loaded into CO-PA. The sales quantities are again reviewed, adjusted manually if necessary and then valuated. This results in valuated sales revenue and cost of sales for the planned sales quantities.

The process details up to this step are described in 172 – AOP - Sales Qty Budget and Transfer to SOP.

The current business process description deals with the process steps starting from this point of the AOP process.

The accepted sales quantities are then transferred to Sales and Operations Planning (SOP). In SOP rough cut capacity planning of the budget sales quantities occurs in order to verify whether the goods to be sold can run through the company’s bottleneck resources which are needed to produce these goods.

After the production plan has been roughly proven feasible by SOP, it is transferred to a planning scenario in Long Term Planning module (LTP) by creating planned independent requirements (PIR), which reflect the production plan generated by SOP.

Based on these PIRs Materials requirements planning (MRP) is run in a simulated mode to create and review planned requirements for all the materials (components, raw materials) and all resources required to execute the production plan created in SOP. Simulation of MRP also allows review of capacities of the plants. Capacity leveling can then be carried out to smooth out the bottlenecks in the capacities.

After having run MRP as described above the prerequisites are given to carry out one of the key objectives of the logistics part of AOP: to calculate the total utilization of the activity types assigned to the manufacturing work centers which are allocated by the production plan. The utilization is based on the consumption of activity types being defined in the routings of the (semi finished and finished) products being derived from the production plan.

The aggregated utilization of the work center’s activity types is the basis for the budgeting process of the manufacturing cost centers.

2 Prerequisites

2.1 Master Data

A range of indispensable master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your


© SAP AG of 21

company, as well as master data that suits its operational focus, for example, master data for materials, vendors, customers, and so on.

This master data usually consists of standardized SAP Best Practices default values and enables you to go through the process steps of this scenario.

Note that you can test the scenario with other material, or organizational data for which you have created master data. To find out how to create master data, refer to the Master Data Procedures documentation.

Use the following master data in the process steps described in this document:

Manufacturing / Trading

Production Plant = Planning Plant

Master data Value Other mat.

Comments

Plant 1000

In this demo script the planning plant is the production plant

CORPRATE CENTER

1000

UNICO

2000

CAP

3000

UFL

4000

SWAN

4010

GCL

5000


© SAP AG of 21

Product group level Product Group Product Group Description

Product group level 2 0000300001 Dulux Regular

Product group level 2 0000300002 Dulux Trade

Product group level 2 0000300003 Caplux

Product group level 2 0000300004 Industrials

Product group level 2 0000300005 Accessories

Product group level 2 0000400001 Juices

Product group level 2 0000400002 Scoop Range

Product group level 2 0000400003 Pouches

Product group level 2 0000400004 Ice Cream Bars

Product group level 2 0000400005 Gala

Product group level 2 0000400006 Funtime Cupcakes

Product group level 2 0000400007 Funtime Coconut Chip

Product group level 2 0000400008 Puffed Maize

Product group level 2 0000500001 Cereal

Product group level 2 0000500002 Poultry Feed

Product group level 2 0000500003 Fish Feed

Product group level 2 0000500004 Oil Mill Products

Product group level 2 000B400001 Water

Product group level 2 000B400002 SSD

Other important data

Value Other mat.

Bus. cond.

Comments

SOP version 002

Use these versions in the demo script

LTP Version 002

Use these versions in the demo script

2.2 Roles

Use

The following roles must have already been installed to test this scenario in the SAP Netweaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites

The business roles have been assigned to the user who is testing this scenario.

Business role Technical name Process step


© SAP AG of 21

Business role Technical name Process step

Employee (Professional User)

SAP_NBPR_EMPLOYEE-S Assignment of this role is necessary for basic functionality.

Strategic Planner SAP_NBPR_STRATPLANNER-S MC76 Break Down PG Plan

MC75 Transfer Product Group to Planning

MS31 Create Planning Scenario

MS01 Long-term planning run

CM38 Capacity Planning

2.3 Preliminary Steps

No preliminary steps are required to test this scenario.

2.4 Business Conditions

The business process described in this Business Process Documentation is part of a bigger chain of integrated business processes or scenarios. As a consequence, you must have completed the following processes and fulfilled the following business conditions before you can start going through this scenario:

Business condition Scenario

You have completed all steps described in the Business Process Documentation Prerequisite Process Steps (154).

Prerequisite Process Steps (154)

You have completed all steps described in the Business Process Documentation Sales Qty Budget and Transfer to SOP (with CO-PA), Revenue Planning (172). In this scenario, you perform revenue planning. The result is a sales plan in value and/or quantity. Usually the sales plan is based on the sales history and is in quarterly, monthly or weekly buckets.

Sales Qty Budget and Transfer to SOP (with CO-PA), Revenue Planning (172)

3 Process Overview Table Step Name External

Process Reference

Business Condition

Role Transaction Code

Expected Results

Create sales plan

Sales-/ Revenue Planning

See 172 – AOP - Sales Qty Budget and Trans-fer to SOP

See 172 – AOP - Sales Qty Budget and Transfer to SOP

See 172 – AOP - Sales Qty Budget and Transfer to SOP

The annual sales plan is created.

SOP

Demand Verifi-cation (check

After sales figures have

Strategic MC76 Sales plan has


© SAP AG of 21

Step Name External Process Reference

Business Condition

Role Transaction Code

Expected Results

sales plan) been trans-ferred to SOP

Planner been verified

Create Rough-Cut Production Plan

After Sales plan has been checked

Strategic Planner

MC76 Production Plan created

Transfer Rough-Cut Production Plan to Inactive Demand Management

Production Plan and Rough Cut Capacity Profiles exist

Strategic Planner

MC75 The inactive version is transferred to demand management.

Long Term Planning

Create Planning Scenario in “Long Term Planning”

Before running simulated LTP MRP

Strategic Planner

MS31 LTP Planning scenario is created

Execute LTP MRP Run

Strategic Planner

MS01 The LTP MRP run is simulated.

Evaluate Capacity Requirements

CM38 Work centers capacity planned

Purchase Material Price Planning

See 174 –Purchased Matl Price Planning scenario

See 174 –Purchased Matl Price Planning scenario

See 174 – Purchased Matl Price Planning scenario

Purchased prices planned annually

Manufacturing Cost Center Planning

See 176 –Manuf. Center Cost Planning

See 176 –Manuf. Center Cost Planning

See 176 – Manuf. Center Cost Planning

4 Process Steps

4.1 Creating sales plan

4.1.1 Sales Quantity Budget and Transferring to SOP

Use

After the sales and revenue plan has been created by product and has been released, the accepted sales quantities are then transferred to Sales and Operations Planning where planning for the manufacture of the budget sales quantities occurs.


© SAP AG of 21

Procedure

For this activity, run the 172 –Sales Qty Budget and Transfer to SOP scenario document in its entirety, using the master data from this scenario document.

4.1.2 Sales Quantity Budget and creating Sales plan to SOP

Use

After the sales and revenues plan has been created at the product group level, a sales plan is created by product group.

Procedure

SAP ECC menu Logistics Production SOP Planning For Product Group

Create Plan

Transaction code MC81

1. On the Create Plan: Initial Scren make the following entries:


© SAP AG of 21

Field name Description User action and values Comment

Product group CAPLUX(DR)

CAPLUX(GAL)

DULUX REGULAR(GAL)

INDUSTRIALS

FROZEN

CAKE(CAR)

OILL MILL(DR)

POULTRY FEED(BAG)

CEREAL(BAG)

FEEDMILL

KANO-FEEDMILL

OILL MILL(CAR)

ONITSHA-FEEDMILL

COCONUT CHIPS

GALA

CAKE

SNAPS

SSD

WATER(CAR)

WATER(SW)

DULUX REGULAR(DR)

Product group ID defined by BU

Plant 3000

4000

4010

4100

5100

5200

5300

5400

5500

5700

Plant by BU

Inactive version Select the checkbox

Version Check which version has to be used

002 Version used for annual planning

On the screen “Create Rough Cut Plan”, from the menu bar. Go to : Edit Period Splitting

TotalMonth to get a plan per month

In the planning table, on the row “Sales”, enter the sales quantities per period. Example


© SAP AG of 21

Planming period Unit M 07.2014 M 08.2014 M 09.2014 M 10.2014

Version 100 200 300 400

4.2 Sales and Operations Planning

Use Sales & Operation Planning (SOP) is the link between sales planning and manufacturing.

It is a forecasting and planning transaction to enable sales, production, inventory targets to be reached on the basis of historical, existing, and estimated future data. In the process described below we use SOP

To verify the sales (demand) plan coming from COPA or other sources

To create a rough-cut production plan aimed to satisfy demand and to meet inventory targets

To visualize capacity utilization of the critical resources (usually the bottleneck resources) in order to verify the feasibility of the plan at an aggregated level.

SOP is particularly suitable for long- and medium-term planning.

In this process, you view the SOP figures. This is done after sales figures have been transferred from CO-PA to SOP.

You can visualize the following key figures

Sales plan

Production plan

Projected Stock

4.2.1 Demand Verification (Checking Sales Plan)

Use

In this activity, you check the sales plan at product group level. In this scenario it is assumed that the sales plan has been created at material level.

Therefore you can aggregate your sales figures to a product group in order to verify demand at an aggregated level.

Also the opposite direction is possible (but not shown in this scenario): If your sales plan has been created at product group level you can disaggregate the plan according to predefined proportional factors to the material level. In this case it is useful to define the proportional factors according to historical sales figures to come to realistic forecasts at material level.

Prerequisites

This can be done after sales figures have been transferred from CO-PA to SOP.

Procedure

2. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Production SOP Disaggregation Break Down PG Plan


© SAP AG of 21


Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Strategic Planner

(SAP_NBPR_STRATPLANNER-S)

Business role menu Production SOP Disaggregation Disaggregation: Planning

3. On the Change Plan: Initial Scren make the following entries:


Product group

CAPLUX(DR)

CAPLUX(GAL)

DULUX REGULAR(GAL)

INDUSTRIALS

FROZEN

CAKE(CAR)

OILL MILL(DR)

POULTRY FEED(BAG)

CEREAL(BAG)

FEEDMILL

KANO-FEEDMILL

OILL MILL(CAR)

ONITSHA-FEEDMILL

COCONUT CHIPS

GALA

CAKE

SNAPS

SSD

WATER(CAR)

WATER(SW)

DULUX REGULAR(DR)


Plant <select plant>

Inactive version

Select the checkbox

Version Check which version has to be used

002 Version used for annual planning

4. Choose Inactive version.

5. In the Product group members dialog box, select the materials and choose Enter.

6. In the dialog box Disaggregation, do not select create sales plans, select Disaggregate sales plan and stock balance and choose Enter.

7. If the Check proportions dialog box displays, choose Yes.


© SAP AG of 21

8. From the menu, choose Edit Macro.

9. Select Aggregation: Sales and choose Enter. All sales figures are copied to the product group level.

10. Choose Save.

Result

You have viewed the S&OP figures on material level and created the sales plan on product group level based on the sales plan on material level.

4.2.2 Creating Rough-Cut Production Plan

Use

In this activity, you generate the rough cut production plan based on your sales forecast. For this you have several options (see below).

Procedure



SAP ECC menu Logistics Production SOP Disaggregation Break Down PG Plan





Business role menu Production SOP Disaggregation Disaggregation: Planning

2. You are still in the transaction for Demand verification (see previous section) and continue without leaving it. If you have left the transaction run through step 1 - 5 of this process before continuing with the next step.

3. From the menu, choose (NWBC: More… ) Edit Create production plan Synchronous to sales. This will make production figures equal to sales at product group and material levels.

4. There are some more strategies in Standard SOP for automatically generating a production plan which can easily be activated through the menu path:

Edit Create production plan <create production plan option>

a. Production quantities are the same as sales quantities in each period (synchronous to sales)

b. Production quantities are such that target stock levels are reached

c. Production quantities are such that target days’ supplies are reached

d. Production quantities are such that the stock level at the end of each period is zero.

5. Choose Save


© SAP AG of 21

4.2.3 Transferring Rough-Cut Production Plan to Inactive Demand Management

Use

In this activity, you transfer the inactive version of the production plan from SOP to Demand Management where the quantities are posted as planned independent requirements.

For several purposes you can post the production plan at first in an inactive version.

In our scenario we use inactive versions for the following purposes:

Version 001 for simulation and long term procurement purposes (forecast) see 144: Logistics Planning

Version 002: for supporting the annual budgeting process (described in this document)

Procedure



SAP ECC menu Logistics Production SOP Planning For Product Group

Transfer Product Group to Planning





Business role menu Production SOP Product Group Transfer PG to Demand Management

2. Make the following entries:


Product group CAPLUX(DR)

CAPLUX(GAL)

DULUX REGULAR(GAL)

INDUSTRIALS

FROZEN

CAKE(CAR)

OILL MILL(DR)

POULTRY FEED(BAG)

CEREAL(BAG)

FEEDMILL

KANO-FEEDMILL

OILL MILL(CAR)

ONITSHA-FEEDMILL

COCONUT CHIPS



© SAP AG of 21


GALA

CAKE

SNAPS

SSD

WATER(CAR)

WATER(SW)

DULUX REGULAR(DR)


Version 002 Selectable from dropdown.

Depends on version used in scenario: annual budget plan

Production plan for material or PG member

Selected

From date <Earliest date of change> Typically first day of current month

To date <Earliest date of change

PLUS 18 months> Eighteen months in the future

Requirements type

Leave blank

Version 02

Active Deselected

Make sure to deselect Active on the initial screen to make sure it is inactive in demand management. To transfer a single material, use transaction MC74.

3. Choose Transfer now. Confirm additional information with enter.

Result

The inactive version is transferred to demand management. To display the inactive version for a

single material in Demand Management, use transaction MD63 (or menu path Logistics

Production Production Planning Demand Management Planned Independent

Requirements Display).

4.3 Long Term Planning

In long-term planning, future demand programs are simulated within a planning run. This allows you to calculate capacity requirements, activity type requirement of the cost centers, and of the requirement of purchased parts.

The demand programs that can be simulated may include planned independent requirements and/or sales orders.

You can evaluate and optimize the simulation with regard to material requirements planning, capacity planning, order volumes, purchasing budget, cost center planning, and inventory


© SAP AG of 21

controlling. Following the evaluation of the simulative planning results, you can replace the current demand program with the preferred version in long-term planning and can continue it there.

You can transfer the data for external procurement to the purchasing information system using a special report and evaluate it there.

The principle of long-term planning is to simulate different versions of the demand program. The simulation can take into account operative data (for example, master data, sales orders, purchase orders, production orders).

The simulation can be used to optimize the demand program and the production and procurement data with regard to material requirements planning, capacity planning, order volumes, purchasing budget, cost center planning, and inventory controlling.

Long-term planning can also be executed on the basis of operative master data: BOMs, routings, work centres, and material masters. This means you do not have to create any new operative data.

4.3.1 Creating LTP Planning Scenario

Use

For simulation purposes, you set up ‘LTP-Planning scenarios’ which represent ‘planning areas’ you can use independently from each other.

In this activity, you create the LTP Planning Scenario.

If the LTP planning scenario already exists, use transaction MS32 to make changes.

Procedure



SAP ECC menu Logistics Production Production Planning Long-Term

Planning Planning scenario Create

Transaction code MS31




Business role menu Production Production Planning Long-Term Planning Create Planning Scenario



Planning scenario

002 <enter a new number and description>

Always use planning scenario 002. If the scenario already exists please skip this process step.

Long-term planning

Selected


© SAP AG of 21

3. Choose Enter.



From date <Current date>

To date <Current date PLUS 18

months> Eighteen months in the future

Dep.reqmts for reorder point materials

Selected

Consider sales orders

Selected

Include firm receipts

Selected

Include firm purchase requisitions

Selected

Include firm planned orders

Selected

5. Choose Planned Independent Requirements.

6. In the dialog box, choose New entry.



Version 02 Inactive version from demand management

From date <Current date>

To date <Current date PLUS

18 months> Eighteen months in the future

8. Choose Confirm.

9. Choose Plants.

10. In the dialog box, choose New entry.



Planning plant

<select plant> You can repeat the steps for all planning plants.

12. Choose Confirm.

13. Choose Release + Save.

Result

The LTP Planning scenario is created. Make a note of the Planning Scenario number here:


© SAP AG of 21

4.3.2 Executing LTP MRP Run

Use

In this activity, you carry out the Long term planning MRP run.

Procedure



SAP ECC menu Logistics Production Production Planning Long-term

Planning Long-term planning Planning run Online

Transaction code MS01




Business role menu Production Production Planning Long-Term Planning Long-Term Planning: Total Planning



Planning Scenario <From previous step>


Scheduling 2 Lead time scheduling and capacity planning

Display material list Selected

3. Choose Enter.

4. The system displays the message Please check input parameters.

5. Choose Enter.

6. The system displays the message To start the planning run, press enter. Choose Enter.

Use transaction MS04 to check the planning results for planning scenario 001, material Finished Good in plant XXXX

Result

You have run the simulated LTP MRP.

1. Repeat the above steps for every plant and/or work center.

2. In the dialog box to start the planning run, choose Enter.

4.4 Purchasing Material Price Planning

Use


© SAP AG of 21

Standard costs for purchased materials need to be periodically reviewed and updated, if necessary, to match the current market conditions and negotiated prices.

This process begins with transferring the quantities of materials required from long term planning and downloading the latest purchase prices. The material requirements valuated with the latest purchase prices are reviewed by the buyers to compare with the current standards. The buyers update the spreadsheet with the prices that they determine should be the new standard. The updated prices are then uploaded as the new planned prices. These planned prices are used by the product costing run to valuate the semi finished and fished goods to come up with the standard cost of goods sold for the final products.

Procedure

For this activity, run the 174–Purchased Matl Price Planning scenario document in its entirety, using the master data from this scenario document.

4.5 Manufacturing Cost Center Planning

Use

During the annual budgeting process, the managers of non-manufacturing and manufacturing cost centers such as sales, marketing, administrative, research and development, etc. plan the costs for various cost types/elements for their respective cost centers. The usual starting point for development of these plans is the actual data for the current/previous year.

In this process, the previous year’s actual expenses for these cost centers are copied into an AOP budget version in cost center accounting. As an alternative the previous year’s budget data can also be used as a starting point for the exercise. The data in this version is downloaded into spreadsheets by each cost element and cost center. The respective cost center managers review and update the budget values according to their requirements and plans. Then these plans are uploaded back into the system. The plans in the system are reviewed and finalized.

The planned depreciation on fixed assets is transferred separately to the cost center plan version. The system calculates the planned depreciation on assets by cost center based on the asset values posted on the cost centers. In the case of cost centers having machinery, the depreciation is planned based on cost center and activity type.

The resource requirements in the form of planned activity quantities are transferred from Long Term Planning to the cost centers as planned activity consumption. Plan reconciliation between the LTP activity requirements and manually planned requirements on the operational cost centers is carried out. Once the activity quantities and budget amounts are finalized, planned activity prices are calculated in the system.

Procedure

For this activity, run the 176 - Manuf. Center Cost Planning scenario document in its entirety, using the master data from this scenario document.

5 Appendix

5.1 Reversal of Process Steps


© SAP AG of 21

In the following section, you can find the most common reversal steps, which you can take to reverse some of the activities described in this document,

Create Long Term Planning Scenario

Transaction code ( SAP GUI) MS31

Reversal: Change Planning scenario

Transaction code ( SAP GUI) MC75



Business role menu Production SOP Product Group Transfer PG to Demand Management

Comment You can change the planning scenario

5.2 SAP ERP Reports

Use

The table below lists the most frequently used reports that help you to obtain additional information on this business process.

You can find detailed descriptions of the individual reports in the following BPD documents, which provide a comprehensive compilation of all important reports:

Financial Accounting: SAP ERP Reports for Accounting (221)

Logistics Processes: SAP ERP Reports for Logistics (222)

Note that the descriptions of some reports that are an indispensable part of the process flow may be located directly in the section where they belong.

Reports

Report title Transaction code Comment

Long-Term Capacity Planning CM38 The capacity evaluation is displayed.

Change Plan MC82 Display of planning version.

Evaluation of Product Group Planning

MD47 Planning situation is displayed.

Long-Term Planning: MRP-list MS05 Simulation of MRP-list

sop through long term planning transfer to lis/pis...

Documents