SAP ECC 6.

00 August 2006 English

H84: Make-to-Stock (MTS) Production with Batch Management, Warehouse Management (WM) and Handling Unit Management (HUM)
Scenario Business Process Procedures

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

SAP Best Practices

H84: MTS Production with Batch Management, WM and HUM

Copyright
© Copyright 2006 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, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation. 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. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, 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 in several other countries all over the world. 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.

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Contents
H84: Make-to-Stock (MTS) Production with Batch Management, WM & HUM..............................6 Purpose......................................................................................................................................6 Process Flow..............................................................................................................................6 Organizational and Master Data ..............................................................................................10 Preliminary Steps.....................................................................................................................12 Uploading the Evaluation Role.............................................................................................12 Business Process Procedure.......................................................................................................13 Controlling................................................................................................................................13 Costing Run .........................................................................................................................13 Sales Order Processing ..........................................................................................................16 Creating Customer Order.....................................................................................................16 Materials Requirement Planning ............................................................................................17 Checking Complete Planning for the Ordered Material.........................................................17 Material Requirements Planning at Plant Level....................................................................18 Purchasing...............................................................................................................................19 Preparatory Steps.................................................................................................................19 Creating Purchase Orders from the Stock/Requirement List................................................20 Manufacturing Parts Number Processing.............................................................................23 Maintaining Delivery Schedule for Scheduling Agreement...................................................24 Posting the Goods Receipt ..................................................................................................24 Posting Goods Receipt to WM..............................................................................................26 Posting Goods Receipt and Following Lean WM .................................................................29 Posting Goods Receipt for Material with Manufacturer Part Number ...................................30 Production Order Processing...................................................................................................31 Creating Production Orders..................................................................................................31 Scrap Treatment and Analysis..............................................................................................32 Releasing Production Orders for Semi-finished Products.....................................................33 Picking Components with WM/PP interface and FIFO Strategy at Semi-Finished Goods Order Level ..........................................................................................................................35 Option 1: WM/PP Material Staging for Pick List Parts (Staging Indicator 1).........................35 Option 2: WM/PP Material Staging for Crate Parts (Staging Indicator 2)..............................37 Option 3: WM/PP Material Staging for Release Order Parts (Staging Indicator 3)...............40 Confirming Production Orders with Bar Code Scanner (Optional) for Semifinished Goods..43 Rework Order Process.........................................................................................................45 Analysis and Treatment of Bulk Materials.............................................................................46 Missing Part Management (Optional: with Workflow Integration).........................................49 Releasing Production Orders for Finished Products.............................................................51 Picking Components for Finished Products (IM – FIFO Strategy)........................................52 Confirming Production Orders with Barcode Scanner (Optional) for Finished Products.......53 Handling Unit Management for Finished Products ..................................................................54 Initial Goods Receipt for Packaging Material........................................................................54 Option 1: Creating Handling Units at the End of Production.................................................55 Option 2: Creating Handling Units Before Outbound Delivery..............................................56 Creating Outbound Delivery ................................................................................................58 Picking Outbound Delivery (Assigning HU and Batch) ........................................................59 Posting Goods Issue.............................................................................................................60

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Checking Status of Outbound Delivery and History Check of HU.........................................61 Billing Processing.....................................................................................................................61 Creating Billing Document....................................................................................................61 Displaying Customer Line Items ..........................................................................................62 Cost Object Controlling in Discrete Manufacturing – Preliminary Costing................................63 Cost Object Controlling in Discrete Manufacturing – Simultaneous Costing............................66 Cost Object Controlling in Discrete Manufacturing – Period End Closing................................67

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H84: Make-to-Stock (MTS) Production with Batch Management, WM & HUM
Purpose
This scenario focuses on sales-order-independent production by MTS (make-to-stock) combined with a variety of logistic functions:  Bulk material  Scrap processing  Missing parts management with workflow integration  Warehouse Management / Lean WM (with FIFO material consumption and manufacturer part number processing

Process Flow
• Costing Run You can use the costing run to process mass data. The purpose is to compute prices for the selected materials that are then updated in the material master records as the standard price. The standard price is used to valuate goods movements within the company. The price update consists of two steps, marking the computed price and then releasing it. Marking the price means setting it as the future price for the material; releasing it means making it the current standard price. Before you can carry out marking, you have to allow marking for the company code involved. • Sales order processing with availability check The system checks the incoming sales orders to determine whether the components are available. When doing so, both the available warehouse stock and the receipts from forecast planning are taken into account. Therefore, the system calculates the confirmed delivery date from the receipt date of the next (still unplanned) planned or production order. If a suitable receipt element is found, the sales order receives a confirmation date, and the order confirmation can be printed out. At the same time, the system compares the forecast details with the specific customer requirements. First of all, the system checks 40 days in the past, and then 20 days in the future to determine whether a planned independent requirement has not been allocated yet. • Material Requirements Planning (MRP) The daily MRP run generates replenishment elements at each low-level code. The system automatically generates purchase requisitions for purchased parts within the 3-month opening period for the planned order. The system uses planned orders to implement receipt elements, which are also required. In general, the system also creates planned orders for parts that will be produced internally. When the planned opening date has been reached, these planned orders are converted to production orders by the production planner. As a result, the system reserves all of the required components. In the material master for all of the interface cards in this series, the planned opening date is set to 5 days. Some raw materials (panel = H84-1045, resistor = H84-1060, bulk material Glue / oil = H841070, and packing material H84-1080) are planned on a consumption basis. Since these parts are required for a variety of other boards and cards, large quantities of these materials are to be stored in the warehouse. Replenishment orders are triggered as soon as a specified reorder point is reached. The stock issues are backflushed when the activity is confirmed. The service stock material (Hexagon Head Screw = H84-1010) is also planned on a consumption basis. • Manufacturer Part Number Processing

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The process integrates manufacturer part number processing. The purchase order for one material (H84-1030) contains the valid manufacturer part numbers according the approved manufacturer parts list (AMPL) in message format for the communication with vendors (such as, for transmission as hardcopies or via EDI). This data is only displayed in the document. • Procurement Different types of procurement are shown: Procurement of stock material using purchase orders (PO); procurement with scheduling agreements is also integrated. Specific overdelivery and underdelivery tolerances are defined for the ordered goods. Full WM / Lean WM integration is also shown. During the goods receipt for some materials, a batch number (for example, H841020, H84-1030, H84-1045, or H84-1050) is automatically assigned. Batch classification can be used to enter the MPN information in the batch. • Make-to-Stock Production / Production Order Processing The production planner releases the production orders created on the release date and simultaneously prints the shop floor papers with a bar code. Production orders with missing parts are not usually released by the production planner. However, in exceptional cases, the production planner can also send orders with missing parts to the production and the planner receives information as soon as the missing material comes in. This means that on goods receipt a workflow is triggered and the material is not posted to the warehouse but directly sent to the production line. The warehouse worker picks the production order in the parts warehouse based on the first in first out (FIFO) strategy. The WM/PP material staging interface is activated, allowing an adequate replenishment strategy for each component from the warehouse to the production supply areas (pick list component, crate part, or release order part). The principle behind WM/PP staging is that a WM transfer order is created and executed from any WM storage type to storage type 100 (production supply area). The goods issue is posted at a later stage (on confirmation of the production order) and is not part of the WM/PP interface. The staging method is defined in a control cycle for each material in a production supply area (staging indicator). The WMPP material staging can be customized with transfer requirements or WMPP deliveries. Both ways are possible for the different staging indicators. The following example uses the WMPP delivery for the staging indicator ‘pick list component’; for ‘crate parts’ and ‘release order parts’ transfer requirements are used. Both document types are a reference to create a WM transfer order. A WM/P delivery can be used if, for example, the in-house logistic requires a delivery note for material movements (warehouse is not near by the production site). The warehouse worker uses the pick list to pick the components managed in the temporary warehouse (storage locations without WM relevance) for each order. The consumable material (hexagon head screw) is managed in the service stock at the work center. o WM/PP material staging for pick list components Components of high value or very large components can be supplied to the production area with the staging indicator ‘pick list component (1)’. The replenishment quantity is defined by the quantity of the production order (quantity of reservation). The release of a production order creates an in-house delivery with the delivery type WMPP. The WMPP delivery is transformed to a WM transfer order to execute the material provision for the production order.

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o

WM/PP material staging for crate parts Components of low value or of small size (consumables) can be supplied to the production area with the staging indicator ‘Crate parts (2)’. This type of replenishment is a classical KANBAN processing. The replenishment quantity is defined in a control cycle for this type of material. The control cycle determines the number of KANBAN containers circulating between the warehouse and the production supply areas. The release of a production has no impact of the replenishment point or quantity. After receiving an empty KANBAN container, the warehouse worker executes the transaction LP11 for the corresponding material. According to the definition in the control cycle, the system creates a transfer requirement (TR) and a transfer order (TO). The creation of the WM documents is possible in one step with transaction LP11 (TR and TO) but also in two steps with transaction LP11 (to create the TR) then transaction LT04 (to create the TO).

o

WM/PP material staging for release order parts Components of medium value or of medium size can be supplied to the production area with the staging indicator ‘release order part (3)’. This type of replenishment is a mix between classical KANBAN processing and material staging with a pick list for a production order. The replenishment is triggered by executing transaction LP12. The transaction can be started for one material or for all release order parts in this production supply area. The system cumulates for each material the open quantities of production order reservations. On the other side the system checks the stock level of the storage bin in the production supply area (the storage bin in the production supply area is defined in the control cycle such as, PSA-RELORD in storage type 100). If the stock level of the WM bin in the production supply area is lower than the required quantities of the reservations for the production orders, the system suggests the creation of a transfer requirement (TR). The warehouse worker can increase this quantity in order to remove a whole pallet from stock. If there are no open production order reservations for this type of staging material, the system does not suggest replenishment. On the other hand, the release of production orders has an impact of the replenishment point or quantity. Therefore the transaction LP12 should be executed regularly after releasing production orders to check the replenishment quantities. The creation of the WM documents is possible in one step with transaction LP11 (TR and TO) but also in two steps with transaction LP11 (to create the TR) then transaction LT04 (to create the TO).

• Scrap Processing At the beginning of production planning, the planned scrap quantity (component scrap, assembly scrap, and operation scrap) is considered. • Rework for Subassembly Subassembly (H84-1040 Circuit Board PCB 2L 8B 7.6): If not found to be OK in the quality check (the last operation of the standard routing), the operation routing set is triggered, and the process is executed to finish the rework process. • Order Confirmations A move ticket (German Laufkarte) for the production order is printed with a confirmation number (bar code) at the same time as the shop floor papers. Processing is carried out in accordance with this information. Once the production process has been completed, the user confirms the activity. The material used is backflushed when the operation is confirmed.

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• Handling Unit Management for Finished Product Handling units for a finished product can be used in two ways: If you want to pack the finished goods with a constant quantity and a constant packing material just after the production order process, you should use transaction COWBPACK (Pack for work order). In this step, you can create a handling unit by using a packaging instruction (which contains the packaging material), and at the same time you can post the goods receipt of the production order in the handling unit storage location YD05. If you do not pack the finished product directly after production because the quantities to be packed or to be delivered might vary, you can execute the packing process after you create the outbound delivery. In this case the dispatch worker can create handling units with the transaction HUPAST (free packing) according to the quantities of the delivery notes or to other customer specific criteria (e.g. packaging material). • Cost Object Controlling Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the execution of company activities (such as internally manufactured materials) to those activities. Product cost by order enables you to analyze costs at the level of manufacturing orders, production orders, and process orders. In product cost by order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into the inventory.

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Organizational and Master Data
The following organizational and master data is required in the scenario: Field Name Controlling area Company Code Plant Sales organization Distribution channel Division Purchase organization Storage location Value BP01 BP01 BP01 BP01 01 01 BP01 0010 0003 0004 0002 0005 0006 YD05 F01 L01 H84-1000 H84-1040 H84-1080 H8410 H8420 H8430 H8450 H8460 H8445 H8440 H8490 Description Best Practices Company Code BP01 Production Plant (Produktionswerk) BP01 Sales Org. BP01 Direct Sales Product Division 01 Purchase Org. BP01 Standard stock finished product (unpacked) raw material ( without WM ) production Lean WM Component FullWM Handing unit with Warehouse F01 Warehouse L01 (Lean WM) Interface Card Circuit Board Packing material for H84 Vendor MTS 01 Vendor MTS 02 Vendor MTS 03 Vendor MTS 04 Vendor MTS 05 Vendor MTS 06 Ship-to-party – Supply Area PROD_MTS Customer MTS

Warehouses Material (finished good) Material (semifinished goods) Material (packaging material) Vendor

Customer

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The diagram below outlines the material BOM structure in this scenario:

MTS-Pr Produc

Pa

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Preliminary Steps
Uploading the Evaluation Role Use
Before you can begin performing the steps described in the Business Process Procedure, you need to upload the evaluation role for this scenario and assign it to your user. An evaluation role enables you to comfortably access all transactions required for the business application testing. You have to install an evaluation role for each scenario. The following role is available: Technical name Description File name for upload /SMB50/H84_05U H84: MTS Production with Batch Management, WM and HUM _SMB50_H84_05U.SAP

Procedure
For more information about uploading the evaluation role to the system and working with roles, see to the Essential Information building block.

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Business Process Procedure
Controlling
Costing Run Use
The costing run allows you to cost multiple materials at the same time. It is used to cost materials based on planning data. You can use the costing run to process mass data. The purpose is to calculate prices for the selected materials. The price update, also in the costing run, consists of two steps, marking the price computed and then releasing it. The prices for the material are then updated in the material master records as the standard price, which is used to valuate goods movements within the company.

Prerequisites
Materials, BOM, routing, work centers, costing variant have been created.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Edit Costing Run CK40N

2. On the Edit Costing Run screen, make the following entries. Field name Costing run Costing run date Description Key, which identifies the costing run Current date User action and values Enter the costing run key (for example, 01_2005) Comment

3. Choose Create Costing run (F5). 4. On the Create Costing Run screen, make the following entries: Field name Costing run text Description Text, which identifies the costing run User action and values Enter text describing costing run key. (For example, costing run Jan. 2005, legal valuation) YPC1 01 BP01 BP01 Adopted automatically from costing variant Comment

Costing variant Costing version Controlling Area Company Code Transfer Control

Server Group 5. Choose Enter. 6. On the Dates tab page, enter today’s date in the Costing Date from field. The fields Costing date to, Qty Structure date and Valuation Date should be taken as proposed.

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7. Save your entries. 8. In the Create Cost Estimate section, choose Change Parameter in the Parameter column of the Selection row. 9. Make the following entries: Field name Material Description Selection of single materials or an interval of materials User action and values H84-1000 Comment If you have already created and released a cost estimate for one of these materials in the current period, for example, while running another scenario, exclude the material here to prevent error messages in the course of processing the costing run.

Low-level code Material type Plant Select configured materials only Always recost material Background processing Print log BP01 Do not set indicator

Do not set indicator

Do not set indicator Do not set indicator

10. Save your entries and choose Back. 11. Choose Execute in the row of Selection. 12. In the Create Cost Estimate section, choose Change Parameter, which is located in the Parameter column of the Struct. Explosion row. 13. Make the following entries: Field name Background processing Print log Description User action and values Do not set indicator Do not set indicator Comment

14. Save your entries and choose Back. 15. Choose Execute in the row of Struct. Explosion. 16. In the Create Cost Estimate section, choose Change Parameter, which is located in the Parameter column of the Costing row.

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17. Make the following entries: Field name Cost ests with errors only Description Set the indicator if you have already executed the costing run once and now want to rerun only those cost estimates with errors Set the indicator to generate a separate log for each costing level. User action and values Do not set indicator Comment

Log per costing level

Do not set indicator

Parallel processing Background processing Print log

Do not set indicator Do not set indicator Do not set indicator

18. Save your entries and choose Back. 19. Choose Execute in the Costing row. 20. In the Create Cost Estimate section, choose Change Parameter in the Parameter column of the Analysis row. 21. Make the following entries: Field name Variant catalog for program RKKBKAL2 Costing run Costing date Description The program provides different list variants for the analysis User action and values Select SAP&11 and choose Enter. Comment

Select your costing run Select your costing date

22. Save your entries and choose Back. 23. Choose Execute in the Analysis row and then choose Back. 24. Confirm the Leave list dialog box. 25. Check the lock on the Edit Costing Run screen in the row Marking. If the lock is closed follow the next steps as described. 26. If the lock is open you can go on with step 33. 27. On the Edit Costing Run screen, choose the icon in the column Authorization, line Marking. 28. On the Price Update: Organizational Measures screen, make the following entries: Field name Posting Period Fiscal Year 29. 30. 31. 32. 33. Description User action and values (current period) (current year) Comment

Choose Enter. Double click the company code BP01, and select the costing variant YPC1. Save your entries. Choose Enter and then choose Back. In the Create Cost Estimate section, choose Change Parameter, which is located in the Parameter column of the Marking row. 34. Make the following entries:

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Field name Test run

Description Set this flag if you first want to have a test of the marking without change any thing in the material master

User action and values Do not set indicator

Comment

With list output Parallel processing Background processing

Set indicator Do not set indicator Do not set indicator

35. Save your entries and choose Back. 36. Choose Execute in the row of Marking. On the screen Price update: mark standard price you get a list of your materials that are now marked for the price update. 37. Choose Back 38. In the Create Cost Estimate section, choose Change Parameter, which is located in the Parameter column of the Release row. 39. Make the following entries: Field name Test Run Description Set this flag if you first want to have a test of the marking without change any thing in the material master User action and values Do not set indicator Comment

With list output Parallel processing Background processing

Set indicator Do not set indicator Do not set indicator

40. Save your entries and choose Back. 41. Choose Execute in the row of Release. On the screen Price update: release standard price you get a list of you materials that are now released. 42. Choose Exit to return to the SAP Easy Access screen.

Result
The calculated standard price is used to valuate goods movements within the valuation area. The marking of the calculated price changes the field Planned price in the future on the material master view Costing 2. The releasing of the calculated price changes the field Current planned price on the material master view Costing 2 and the valuation of the material master. If a released material cost estimate exists for the material master in the current period, it is not possible to release a new cost estimate for the current period.

Sales Order Processing
Creating Customer Order Use
The sales organization receives a customer order by telephone, fax or another medium. You have to enter the customer order in the SAP system.

Procedure
1. Access the activity using one of the following navigation options:

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SAP role menu Transaction code Field name Order Type Sales Organization Distribution Channel Division

Create Sales Order VA01 Description User Action and Values OR BP01 01 01 Comment

2. On the Create Sales Order: Initial Screen, make the following entries:

3. Confirm your entries with Enter. 4. On the Create Standard Order: Overview screen, make the following entries: Field name Sold-to party Purch. order no. Material Order quantity Description User Action and Values H8490 MTS enhancement H84-1000 50 Customer order number In the Items table In the Items table Comment

5. Confirm your entries with Enter. 6. In the availability check, you can only confirm a subset of the requested quantity with the requested delivery date, the remaining quantity is shared according to the ATP quantities. 7. In the Dely Proposal area, confirm the delay with the green checkmark. 8. Save your entries. 9. Make a note of the order number ____________________ 10. Choose Back to return to the SAP Easy Access screen.

Result
You have created a sales order.

Materials Requirement Planning
Checking Complete Planning for the Ordered Material Use
This step informs you about the MRP and how the customer order requirements are allocated.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code 2. Enter the following data: Field name Description User Action and Values Comment Display Stock/Requirements Situation MD04

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Material Plant

H84-1000 BP01 Confirm entry with ENTER

Result
You can see how the customer order requirements are allocated as well as the planning within the adjusted horizons.

Material Requirements Planning at Plant Level Use
The aim of material requirements planning is to tailor available capacities and receipts on time to suit requirements quantities. You can use MRP or consumption-based planning for this purpose.

Prerequisites
The finished product H84-1000 (Interface Card) is planned at plant level. There is now a requirement for the material H84-1000 in plant BP01. Single-item, multi-level requirement planning is carried out for plant BP01.

Procedure
1. Access the activity using one of the following navigation options:
SAP role menu Transaction code MRP – Single-item, Multi-level MD02

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2. On the Single-Item,Multi-Level screen, enter the following data.
Field name Material Plant Scope of planning Product group MRP control parameters Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Process control parameters Also plan unchanged components Display results before they are saved Display material list Simulation mode Ω (remove indicator) NETCH 1 (Purchase requisitions) Description User Action and Values H84-1000 BP01 Comment

3 (Schedule lines) 1 (MRP list) 3 (Delete and recreate planning data) 2 (Lead time scheduling and capacity planning)

Ω (remove indicator)

Ω (remove indicator) Ω (remove indicator)

3. Confirm your entries with Enter. 4. Confirm the information message Please check input parameters. 5. Go back to the SAP Easy Access screen.

Result
Requirements planning has been carried out.

Purchasing
Preparatory Steps Use
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In this activity, you run the MRP for the materials H84-1010 and H84-1020 wit the MRP type VB at their own level. This manual step is performed at this point to enable the whole scenario running. In a real life business process, the MRP run for all VB materials should be defined to run periodically in the background.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Material Plant Scope of planning Product group MRP control parameters Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Process control parameters Also plan unchanged components Display results before they are saved Display material list Simulation mode Ω (remove indicator) NETCH 1 (Purchase requisitions) 3 (Schedule lines) 1 (MRP list) 3 (Delete and recreate planning data) 2 (Lead time scheduling and capacity planning) MRP – Single-item, Multi-level MD02 Description User Action and Values H84-1010 and H84-1020 separately BP01 Comments

2. On the Single-Item, Multi-Level screen, enter the following data.

Ω (remove indicator)

Ω (remove indicator) Ω (remove indicator)

3. Confirm your entries with Enter. 4. Confirm the information message Please check input parameters. 5. Go back to the SAP Easy Access screen.

Creating Purchase Orders from the Stock/Requirement List Use
You want to display the stock/requirements for the material H84-1010 in the stock/requirements list.

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Prerequisites
Requirement planning has been completed.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Material Plant Description Display Stock/Requirements Situation MD04 User Action and Values H84-1010 BP01 Comment

2. On the Stock/Requirements List: Initial Screen, make the following entries:

3. Confirm your entries with Enter. The BOM explosion during the MRP run has generated purchase requisitions for H84-1010. 4. Note the number of the MRP element PurRqs ________________. 5. Double-click the MRP element PurRqs. 6. On the Additional Data for MRP Element screen choose  Purchase order (Convert purchase requisition to purchase order). 7. On the Create Purchase Order screen, select the purchase requisition in the Document overview section and choose Adopt. 8. Confirm the information message Can delivery date be met? (Realistic delivery date: XX.XX.XXXX) with Enter. 9. On the Delivery/Invoice tab page, enter the payment terms 0001. 10. Save your entries. 11. On the Stock/requirement List as of XX:XX Hrs choose Refresh. The above noted MRPElement PurRqs is now called POitem. Note the number of the MRP-Element POitem ___________________________

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Repeat the steps 1 to 10 for the materials H84-1020, H84-1030, H84-1045, H84-1046, H841047, H84-1048 and H84-1050. H84-1020 Note the number of the purchase order for material H841020:____________________________ H84-1030 Note the number of the purchase order for material H84-1030: ____________________________ H84-1045 Note the number of the purchase order for material H84-1045: ____________________________ Choose Enter to confirm the warning message Order quantity violates rounding rules (See long text) Check if there are any rounding violations and change the order quantity manually. This results from the different units of measurement in the material master. The material is procured and handled in pieces but calculated in CM2 (sq cm). H84-1046 Note the number of the purchase order for material H84-1046: ____________________________ H84-1047 Note the number of the purchase order for material H84-1047: ____________________________ Change the order quantity to reach the minimum order quantity notified by the system message. H84-1048 Note the number of the purchase order for material H84-1048: ____________________________ H84-1050 Note the number of the purchase order for material H84-1050: ____________________________

Result
The purchase requisitions have been converted to purchase orders.

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Manufacturing Parts Number Processing Use
You want to display the manufacturing parts numbers for the material H84-1030, which can be delivered by the distributor H8430. According to the Approved Manufacturing Part List (transaction: MP01), the electronic component H84-1030 can be procured from two different manufacturers. Both manufacturing parts correspond to the valid specification for the material H84-1030. The manufacturing parts number information can only be shown in the print preview of the purchase order and can be transferred to the distributor via print output, email, fax, or EDI.

Prerequisites
The purchase order has been created.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Material Plant Purchasing Organization Scope of List Purchase Orders by Material ME2M Description User Action and Values H84-1030 BP01 BP01 BEST Comment

2. On the Purchasing Documents for Material Screen, enter the following data:

3. Select the purchase order created before and choose Print Preview. 4. On the Print Preview you can see that for the transformer H84-1030 two manufacturing part numbers are valid. Ignore the missing tax information on this standard print layout. 5. Go back to the user menu.

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Maintaining Delivery Schedule for Scheduling Agreement Use
You want to display the schedule lines which are created during the MRP run for the material H84-1060.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Material Plant 3. 4. 5. 6. Description Display Stock/Requirements Situation MD04 User Action and Values H84-1060 BP01 Comment

2. On the Stock/Requirements List: Initial Screen, enter the following data:

Confirm your entries with Enter. Note the number of the MRP element SchLne ________________. Double-click the MRP element SchLne with the number noted above. In the Additional Data for MRP Element window choose Display Element. The scheduling agreement schedule is displayed.

Result
You have checked the schedule lines for the material H84-1060 which the BOM explosion has generated during the MRP run.

Posting the Goods Receipt Use
In this activity, you post the incoming goods for the materials H84-1010, H84-1020 and H841060. Materials H84-1020 is handled in batches. During the goods receipt a batch number is assigned.

The batches for the materials H84-1020 and H84-1030 use batch classification Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process.

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Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Movement Type Purchase Order Plant Description Post Goods Receipt for PO MB01 User Action and Values 101 xxxxxxxxxx BP01 Comment Goods receipt Number of the purchase order for the material H84-1040 as noted above

2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:

3. Confirm your entries with Enter. In the Item Overview of the main window, choose the item you want to post and make the following entries: Field name OK Stor.Loc. 4. 5. 6. 7. 8. Description Indicates that you want to post the goods movement for this item Storage location User Action and Values Set indicator 0004 Comment

Confirm your entries with Enter. Save your entries and confirm any warning messages with Enter. Repeat steps 1 – 5 for material H84-1020, and execute the following procedure in addition: Confirm the pop-up window with Automatic batch number allocation information with Enter. On the Goods Receipt for Purchase Order: Classification screen, make the following entry: Field name Posting date Description GR posting date User Action and Values Enter goods arrival date Comment

9. Save your entries. 10. Repeat steps 1 – 5 again for material H84-1060, execute the following procedure in additional. Set the suggest ZeroLines indicator since the GR quantity for the scheduling agreement is normally done partially. With material H84-1060, use the noted document number of the schedule agreement instead of a purchase order number.

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Posting Goods Receipt to WM Use
In this activity, you post the incoming goods for materials H84-1045, H84-1047, and H84-1048. The material H84-1045 is handled in batches, during the goods receipt a batch number is assigned. You want to compare the stock situation for material in IM and WM. You also post the goods receipt to WM.

The batch for the material H84-1045 uses batch classification dependent on the posting date. Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process using the posting date as search characteristic.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Description Purchasing Document Number Movement Type Plant Post Goods Receipt for PO MB01 User Action and Values xxxxxxxxxx 101 BP01 Comment Number of the purchase order for material H841045 as noted above Goods receipt

2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:

3. Confirm your entries with Enter. On the Item Overview of the main window, choose the item you want to post and make the following entries: Field name OK Stor.Loc. Description Indicates that you want to post the goods movement for this item Storage location User Action and Values Set indicator 0006 Comment

GR for H84-1045 is posted by default to storage location 0006, which is subject to full WM. Execute the following WM process: 4. Save your entries and confirm any warning message with Enter. 5. Confirm the pop-up window with Automatic batch number allocation information with Enter. 6. On the Goods Receipt for Purchase Order: Classification screen, make the following entry: Field name Posting date Description GR posting date User Action and Values Enter goods arrival date, for example the current date Comment

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7. Choose Back. Confirm the system information Enter delivery note for evaluated receipt settlement and post the goods receipt with Save. The system brings to the Create Transfer Order for Material Document: Initial screen. 8. If you want to create transfer order directly, skip the following steps and go to step 21. 9. Before follow-up WM activities, firstly you access the IM stock overview. Access the activity using one of the following navigation options: SAP role menu Transaction code Stock Overview MMBE

10. On the Stock overview: company code/plant/storage location/batch, make the following entries: Field name Material Description User Action and Values H84-1045 Comment

11. Choose Execute (F8). All inventory stock is displayed. 12. You then check the WM stock overview. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Warehouse No. Material Plant Description Display Quants for Material LS24 User Action and Values F01 H84-1045 BP01 Comment

13. On Stock per material screen, make the following entries:

Choose Enter. All warehouse bin stock is displayed. 14. You then post the TR. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Warehouse Number Material Plant TRs for Material LB11 Description Warehouse Number material User Action and Values F01 H84-1045 BP01 Comment

15. On the display transfer requirement : list for materials screen make the following entries:

16. Confirm your entries with Enter. 17. On the Transfer requirements for material screen, select the purchase order (displayed in Tracking No.) for which you just post the goods receipt before. Choose TO in Foregr.

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18. On the Create TO for TR xxxxxxxxx :prepare for putaway screen, make the following entries: Field name Storage Unit Type Description User Action and Values E1 Comment In the area Palletization at the bottom row

19. Choose ENTER. Choose putaway foreground (F5). Confirm the information message on the next screen. Choose Save. 20. On the Create Transfer Order for Material Document: Initial screen, confirm all default values with ENTER. 21. On the Create TO from TR: Overview of Transfer Requirement screen, choose button Create SU (single), make the following entries: Field name Storage Unit Type Description User Action and Values E1 Comment

22. Choose Create then save your entries. 23. Now you may check the stock situation once more in IM to see the effects of the posting. Access the activity using one of the following navigation options: SAP role menu Transaction code Stock Overview MMBE

24. On the Stock overview : company code/plant/storage location/batch screen, make the following entries: Field name Material Description User Action and Values H84-1045 Comment

Choose Execute (F8). All inventory stock is displayed. 25. Finally you check the stock overview once more in WM. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Warehouse No. Material Plant Description Display Quants for Material LS24 User Action and Values F01 H84-1045 BP01 Comment

26. On the Stock per material screen, make the following entries:

27. Choose Enter. All warehouse bin stock is displayed. 28. Repeat steps 1 – 28 for the materials H84-1047 and H84-1048 which are managed with full warehouse management function. (steps 5 – 7 can be skipped for H84-1047 and H84-1048 – materials are not subject to batch management)

Result
The ordered quantities are posted to the stock (both IM and WM)

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Posting Goods Receipt and Following Lean WM Use
You want to post the incoming goods and perform subsequent lean WM activities for the material H84-1046. A transport order (TO) is required for incoming goods receipt posting for H84-1046, but the TO is not required for picking.

Prerequisites
The purchase order has been created.

Procedure
1. First you create the inbound delivery for the purchase order. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Vendor Purchase Order Description Create Inbound Delivery (Lean WM) VL31N User Action and Values H8445 xxxxxxxxxx Number of the purchase order for material H84-1046 as noted above Comment

2. On the Create inbound delivery screen, make the following entries:

3. Confirm your entries with Enter. 4. On the Create Inbound Delivery: Overview screen, choose Save and note the Inbound delivery No___________________.___________________. 5. In the next steps you create a transfer order for the inbound delivery. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Warehouse No. Inbound delivery Description Create TO for Inbound Delivery LT0F User Action and Values L01 The no. you noted before Comment

6. On the Create inbound delivery screen, make the following entries:

7. Confirm by choosing Enter. 8. On the Create Transfer Order for Inb. Delivery: Overview Deliveries screen, choose Generate TO item, and save your entries. One transfer order is triggered. 9. To post the goods receipt for the transfer order, access the activity using one of the following navigation options: SAP role menu Transaction code Change Inbound Delivery VL32N

10. Enter the inbound delivery number you noted before and choose Post Goods Receipt. The delivery is changed and saved. 11. Choose Document flow to analyze the whole procedure.

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Posting Goods Receipt for Material with Manufacturer Part Number Use
You want to post the incoming goods for material H84-1030. In the purchase order you informed your vendor about the approved manufacturer part numbers.

The batch for the material H84-1030 uses batch classification. Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process.

Prerequisites
The purchase order of material H84-1030 with MPN has been created.

Procedure
1. Access the activity using one of the following navigation options:
SAP role menu Transaction code Post Goods Receipt for PO MB01

2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:
Field name Movement Type Purchase Order Plant Storage Location Description User Action and Values 101 <Your purchase order for H84-1030> BP01 0004 Comment

3. Confirm your entries with Enter. 4. On the Goods Receipt for PO: Selection Screen, verify the item and quantity and choose the
item that you want to post. Select Adopt+Details.

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5. On the Goods Receipt for Purchase Order: New Item 0001, make the following entries:
Field name MPN material Description Identifies the manufacturer part User Action and Values H84-1031 or H84-1032 Comment

6. 7. 8. 9.

Confirm your entries with Enter. On the Confirm receipt of certificate dialog screen, choose Yes. On the Automatic Batch number Allocation screen, choose Yes. On the Goods Receipt for Purchase Order: Classification screen, make the following entries: Field name Manufacturer Part Number Data Code Manufacturer Batch Description User Action and Values The same as step 5 <Any Entry> Comment

10. Choose Back and confirm the warning message with Enter, then confirm your entries with
Save. Note the number of the goods receipt: _____________________________

11. Choose Back to return to the SAP Easy Access screen.

Result
Goods receipt for H84-1030 has been posted.

Production Order Processing
Creating Production Orders Use
The purpose of this activity is to create production orders for the H84-1000, H84-1040 in-house production parts.

Prerequisites
Requirement planning has been carried out.

Procedure
1. Access the activity using one of the following navigation options:
SAP role menu Transaction code Display Stock/Requirements Situation MD04

2. On the Stock/Requirements List: Initial Screen, enter the following data:
Field name Material Plant Description User Action and Values H84-1000 BP01 Comment

3. 4. 5. 6.

Confirm your entries with Enter. Double-click the first planned order; choose Convert planned order to production order. Choose Save. The converted order number is displayed at the bottom of the screen. Return to the stock/requirements list and choose Refresh. The planned order is replaced by a new production order.

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To analyze the requirement, double click the production order, choose Pegged Requirements, and the sales order number you noted before is displayed.

7. Repeat steps 1-6 for material H84-1040. 8. Choose Back to return to the SAP Easy Access screen.

Result
The production orders are created for the parts produced in-house.

Scrap Treatment and Analysis Use
When you create a production order, the system calculates the scrap based on different scrap types. In this activity, you go through the results of the assembly scrap, operation scrap and component scrap. • Assembly scrap: A percentage of the quantity of an assembly that does not meet the required production quality In material requirements planning (MRP), this percentage scrap is considered for all components contained in the assembly. The only components excluded from this calculation are those for which the net operation scrap indicator is set. • Operation scrap: The percentage of the material processed in an operation that does not meet quality requirements. • Component scrap: The scrap that is expected to occur when a material is used in production, if the material is a component. Component scrap is used in material requirements planning to determine the input quantities of a component. • Net indicator: This indicator determines whether scrap for the component is calculated on the basis of the net required quantity (the required quantity without assembly scrap from the material master record).

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Display Production Order CO03

2. On the Production Order Display: Initial Screen, make the following entries: Field name Order Description User Action and Values Your Production Order Number for material H84-1000 Comment

Confirm your entries with Enter. 3. On the General tab page, check the total quantities and scrap portion.

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4. Choose Component Overview (F6), and check the Reqmts qty for each item. In this scenario, with a production order for 50 pieces H84-1000, the results are as follows: Component H84-1000 (5% assembly scrap) H84-1010 (2% operation scrap with net ID) H84-1020 H84-1030 (10% component scrap) H84-1040 H84-1050 H84-1060 H84-1070 Original Quantities 50 200 50 50 50 50 750 5L Reqmts. Quantities 53 204 53 59 53 53 795 5,3 L

In the stock/requirements list you do not find any requirements for bulk material H841070 since the dependent requirements of bulk materials are not relevant to material requirements planning. Dependent requirements are only created in the planned order for information purposes and they can be displayed there. Dependent requirements for bulk material are not shown in the MRP list or the stock/requirements list. 5. Choose Back to return to the SAP Easy Access screen.

Releasing Production Orders for Semi-finished Products Use
Release at order header level releases the order and all its operations. The order and the operations receive the status REL (released). You can release a production order in create and change mode.

Prerequisites
The production order created by the MRP controller has been assigned a release date in accordance with the scheduling margin key. The production scheduler selects all the created production orders with a release date and releases all relevant production orders by means of mass processing.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Release Production Orders CO05N

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2. On the Release Production Orders screen, enter the following data: Field name List Selection Material Order type Select. at operation level Plant Sys. Status 3. 4. 5. 6. BP01 CRTD H84-1040 YHM2 In this step the production order for component H84-1040 is selected and released. Description User Action and Values Order Headers Comment

On the Mass processing -Release tab in the Function parameter area, select Order release. Confirm your entries with ENTER and choose Execute (F8) to execute the report. Make a note of the total order quantity: ________________________. Select the production orders and choose Mass Processing (Ctrl + F8) Execute (F8) to execute Mass processing.

Shop floor papers are printed automatically when the production orders are released. In the production order display screen, choose Order  Settings  List control to get an overview about the lists to be printed and the spool settings. Alternatively you can check the papers created by the production order through transaction SP01. 7. The system status has changed from CRTD (created) to REL (released). 8. Select your production order and choose Change Object. 9. Choose Operation Overview (F5).

10. Choose Select All, followed by Op. details. 11. Make a note of the confirmation numbers (Confirmation) for each operation. You can scroll through the operations using the navigation buttons. Confirmation numbers: ________________. 12. Choose Back to return to the Production Order Change: Operation Overview screen. 13. A material availability check can be carried out manually by choosing: check material availability. If there are no missing components the status will change to MACM: Material Committed. The availability check in Shop Floor Control checks whether the components required for a production order are available. The checking control can be automatically performed during order creation or during order release. 14. Save the production order and return to the Order Information System: Detail List of Order Headers screen. 15. Go Back to return to the SAP Easy Access screen.

Result
The production order for the component H84-1040 has been released.

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Picking Components with WM/PP interface and FIFO Strategy at Semi-Finished Goods Order Level Use
The released production order is now ready for picking. The components H84-1045, H84-1047, and H84-1048 have to be picked from the WM storage location 0006. The WM/PP interface for this storage location is activated. The component H84-1046 has to be picked from the IM storage location 0005. The procedure for picking from an IM storage location is described in the section Picking components for Finished Goods (IM FIFO strategy) below. The following section focuses on the different types of WM/PP material staging (pick list component, crate part and release order part).

Option 1: WM/PP Material Staging for Pick List Parts (Staging Indicator 1) Prerequisites
The putaway stategy of the WM storage types is defined with ‘F’ (FIFO). The use of WM/PP deliveries instead of WM transfer requirements for pick list parts (staging indicator ‘1’) is set in the Customizing of the WM/PP interface for the warehouse. The master data maintenance for the WM/PP material staging of pick list part H84-1045 is complete:     Backflush indicator ‘1’ or ‘2’ in Material Master H84-1045 is maintained Storage bin PSA_PICKLI in storage type 100 is maintained Control cycle for material master H84-1045 in production supply area PROD_MTS is maintained with staging indicator ‘1’ and storage type 100/storage bin PSA_PICKLI

Production supply area PROD_MTS is assigned to work center E1013 for activity 10 (assembly) The release of the production order for material H84-1040 has created a WM/PP delivery.

Procedure
1. Access the WM/PP delivery using one of the following navigation options: SAP role menu Transaction code Field name Production order 3. 4. 5. 6. Description Order number of the production order to be picked Display Production Order CO03 User Action and Values Enter your order number for material H84-1040 Comment

2. On the Production Order: Initial screen, enter the following data:

Choose Header. On the Production Order Header screen, choose from the menu Goto  WM picklist. Choose Display in the WM mat. provision dialog windows. On the Display WM Material Staging for Production Order screen, select the tab page Only PickParts. Component H84-1045 is displayed in the first line. 7. Choose Documents for Order to switch to the Day’s Workload for Picking screen. The overview shows the WM/PP delivery created on release of the production order. Select the item and choose TO (Transfer order) in foreground. 8. On the Create Transfer Order for Delivery Note screen, the number of the WM/PP delivery is set as the default value. Choose Enter.

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9. On the Create Transfer Order for Delivery Note: Overview screen select the item and choose Stock figures (between the two pushbuttons). On the Stock that can be removed from storage screen, you can see an overview of the stock figures. The stocks are sorted in ascending order by GR date. If you do not select a storage bin and batch, the system applies the FIFO strategy. You can check this by choosing Stock removal foreground. The oldest quant should have been selected (depending of the open quantity of the transfer order, several TO items might be created). 10. On the Create Transfer Order for Delivery: Generate TO Item screen, choose Enter and on the following Create TO for Delivery <delivery number><item number>: Prepare for Stock Removal screen, save the data to post the transfer order for the WM/PP delivery. 11. Note the number of the transfer order: _________________ ____ 12. After the physical movement of the component H84-1045 to the production supply area (destination: storage type 100 / storage bin PSA_PICKLI) the transfer order has to be confirmed. Access the activity using one of the following navigation options: SAP role menu Transaction code Confirm Transfer Order Item LT11

13. On the Confirm Item: Confirm Single Item screen, enter the TO number and the item. Select Background in the Control subscreen and confirm with Enter. The TO is confirmed in background. If the planned TO quantity is not equal to the moved quantity, you can enter and correct the quantity by choosing Foreground on the control screen. 14. Access the activity using one of the following navigation options to check the document flow and the status of the WM/PP delivery: SAP role menu Transaction code Field name OutboundDelivery Display Outbound Delivery VL03N

15. On the Display Out bound Delivery screen, make the following entries: Description User Action and Values Number of WM/PP delivery Comment

Choose Enter to access the overview screen. 16. To check the status of the delivery, choose Document flow: The status of the WM/PP delivery and the WM transfer order should be Completed. In the item details you can also check the status. 17. Access the activity using one of the following navigation options: SAP role menu Transaction code Stock Overview MMBE

18. On the Stock Overview: Company Code/Plant/Storage Location/Batch screen, make the following entries: Field name Material Description User Action and Values H84-1045 Comment

19. Choose Execute (F8). All inventory stock is displayed. 20. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Warehouse Description Display Quants for Material LS24 User Action and Values F01 Comment

21. On the Stock per material screen, make the following entries:

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No. Material Plant H84-1045 BP01

22. Choose Enter. All warehouse bin stock is displayed.

Picking for WM/PP deliveries can also be executed using transaction VL06P. In this case you can select several WM/PP deliveries (for example, for the production supply area)

Result
The WM staging movements with strategy FIFO has been carried out. The WM/PP delivery is completed. No inventory posting has been executed

Option 2: WM/PP Material Staging for Crate Parts (Staging Indicator 2) Prerequisites
The putaway stategy of the WM storage types is defined with ‘F’ (FIFO). The use of WM transfer requirements for crate parts (staging indicator 2) is set in the Customizing of the WM/PP interface for the warehouse. The master data maintenance for the WM/PP material staging of crate part H84-1047 is complete:      Backflush indicator ‘1’ or ‘2’ in Material Master H84-1047 is maintained Storage bin PSA_CRATE in storage type 100 is maintained The control cycle for material master H84-1047 in production supply area PROD_MTS is maintained with staging indicator ‘2’ and storage type 100 / storage bin PSA_CRATE Production supply area PROD_MTS is assigned to work center E1013 for activity 10 (Assembly)

The available stock quantity of H84-1047 shall be no less than 100 PCs, otherwise post goods receipt to WM for H84-1047. The release of the production order for material H84-1040 does not create a WM/PP delivery, and there is no transfer requirement and no transfer order for material H84-1047 due to crate part processing.

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Procedure
1. Display the WM/PP staging situation of the production order for H84-1040 SAP role menu Transaction code Field name Production order Description Order number of the production order to be picked Display Production Order CO03 User Action and Values Enter your order number for material H84-1040 Comment

2. On the Production Order Display: Initial screen, enter the following data:

3. Choose Header. 4. On the Production Order Display: Header screen, choose from the menu Goto  WM picklist. On the Display WM Material Staging for Production Order screen, select the tab page All Parts. Material H84-1047 is listed. On the bottom of the screen scroll to the right to get all the WM/PP staging information (staging indicator, storage bin, requirement quantity, …) It is only possible to realize material staging if the required quantity of material H841047 is in stock. You can check the stock situation in transaction MMBE. There must be a stock of at least 100 PC. 5. Access the activity WM staging of crate parts using one of the following navigation options: SAP role menu Transaction code Field name Material Plant Supply area TO creation Description H84-1047 BP01 PROD_MTS Set the indicator for automatic TO creation immediately after TR creation WM staging of crate parts LP11 User Action and Values Comment

6. Enter the following data on the WM Staging of Crate Parts screen:

7. Choose Enter. The system message You are requesting immediate TO creation is an information message only and can be ignored. 8. On the next screen, the system displays the replenishment information, for example the bin information and the destination. Choose WM material staging. 9. Confirm the system message Requirement will cause an overdelivery Submit requirement anyway with Yes. Staging is executed and the system issues the information message WM staging of materials executed without error. 10. Choose Save. As a result, a transfer order is created. Note the number of the transfer order: _________________ ____ 11. Use the following activity to display and check the transfer order created. SAP role menu Transaction code Display Transfer Order / Material LT24

12. On the Transfer Orders for Material screen, make the following entries:

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Field name Warehouse Material Confirm status

Description

User Action and Values F01 H84-1047 Only open TO items

Comment

13. Choose Execute (F8). The unconfirmed transfer order is displayed. 14. Following the physical movement of the component H84-1047 to the production supply area (destination: storage type 100 / storage bin PSA_CRATE) the transfer order has to be confirmed. Access the activity using one of the following navigation options: SAP role menu Transaction code Confirm Transfer Order Item LT11

15. On the Confirm Item: Confirm Single Item screen, enter the TO number and the item. Select Background in the Control subscreen and confirm with Enter. The TO is confirmed in background. If the planned TO quantity is not equal to the moved quantity, you can enter and correct the quantity by choosing ‘Foreground’ on the control screen. 16. Access the activity using one of the following navigation options: SAP role menu Transaction code Stock Overview MMBE

17. On the Stock overview: company code/plant/storage location/batch screen, make the following entries: Field name Material Description User Action and Values H84-1047 Comment

18. Choose Execute (F8). All inventory stock is displayed. 19. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Warehouse No. Material Plant Description Display Quants for Material LS24

20. On the Stock per material screen, make the following entries: User Action and Values F01 H84-1047 BP01 Comment

21. Choose Enter. All warehouse bin stock is displayed.

Result
The WM staging movements with strategy FIFO has been carried out. No inventory posting has been executed.

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Option 3: WM/PP Material Staging for Release Order Parts (Staging Indicator 3) Prerequisites
The putaway stategy of the WM storage types is defined with ‘F’ (FIFO). The use of WM transfer requirements for release order parts (staging indicator 3) is set in the Customizing of the WM/PP interface for the warehouse. The master data maintenance for the WM/PP material staging of release order part H84-1048 is complete:     Backflush indicator ‘1’ or ‘2’ in Material Master H84-1048 is maintained Storage bin PSA_RELORD in storage type 100 is maintained Control cycle for Material Master H84-1048 in Production supply area PROD_MTS is maintained with staging indicator ‘3’ and storage type 100 / storage bin PSA_RELORD

Production Supply Area PROD_MTS is assigned to work center E1013 for activity 10 (Assembly) The release of the production order for material H84-1040 has created no WM/PP delivery, no transfer requirement, and no transfer order for material H84-1048 because of the release order part processing.

Procedure
Display the WM/PP staging situation of production order H84-1040 SAP role menu Transaction code Field name Production order Description Order number of the production order to be picked Display Production Order CO03

On the Production Order: Initial screen, enter the following data: User Action and Values Enter your order number for material H84-1040 Comment

Choose Header. 4. On the Production Order Header screen, select Goto  WM picklist from the menu. 5. On the Display WM Material Staging for Production Order screen, select All Parts. You can see the release order for the part H84-1048. On the bottom of the screen scroll to the right to get all the WM/PP staging information (staging indicator, work center, requirement quantity, …) 6. Access the activity WM Material Staging of Release Order Parts using one of the following navigation options: SAP role menu Transaction code Staging release order parts (WM-PP) LP12

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7. On the WM Material Staging of Release Order Parts screen, make the following entries: Field name Plant Supply area Material TO creation Description User Action and Values BP01 PROD_MTS H84-1048 Flag for Automatic TO creation immediately after TR creation Comment

8. Choose Enter. The system message You are requesting immediate TO creation is an information message only and can be confirmed with Enter. The replenishment information, bin information and destination are displayed. The system suggests the requested quantity (requirement quantity minus storage bin quantity), but the warehouse worker can modify this quantity (higher or lower) to avoid needless WM movements. 9. Select the item and choose Orders at the bottom of the screen. All production orders including the release order part H84-1048 are displayed. Once an activity is confirmed, (backflushed), the production order (reservation) disappears from this list. Posting the goods issue during confirmation also reduces the stock of storage type 100 / storage bin PSA_RELORD. 10. Go back and choose WM material staging. 11. Choose Save to complete the staging of the release order part H84-1048. A transfer order has been created. Note the number of the transfer order: _________________ ____ 12. Display and check the transfer order created using the transaction LT24. 13. Use the following activity to display and check the transfer order created. SAP role menu Transaction code 14. entries: Field name Warehouse Material Confirm status Display Transfer Order / Material LT24 On the Transfer Orders for Material screen, make the following Description User Action and Values F01 H84-1048 Only open TO items Comment

15. Choose Execute (F8). The unconfirmed transfer order is displayed. 16. After the physical movement of component H84-1048 to the production supply area (destination: storage type 100/storage bin PSA_RELORD) the transfer order has to be confirmed. Access the activity using one of the following navigation options: SAP role menu Transaction code Confirm Transfer Order Item LT11

17. On the Confirm Item: Confirm Single Item screen, enter the TO number and the item. Select Background in the Control subscreen and confirm with Enter. The TO is confirmed in background. If the planned TO quantity is not equal to the moved

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quantity, you can enter and correct the quantity by choosing ‘Foreground’ on the control screen.

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18. SAP role menu Transaction code

Access the activity using one of the following navigation options: Stock Overview MMBE

19. On the Stock overview: company code/plant/storage location/batch screen, make the following entries: Field name Material 20. 21. SAP role menu Transaction code 22. Field name Warehouse No. Material Plant 23. Description Description User Action and Values H84-1048 Choose Execute (F8). All inventory stock is displayed. Access the activity using one of the following navigation options: Display Quants for Material LS24 On the Stock per material screen, make the following entries: User Action and Values F01 H84-1048 BP01 Choose Enter. All warehouse bin stock is displayed. Comment Comment

Result
The WM staging has been completed using the FIFO strategy. No inventory posting has been executed.

Confirming Production Orders with Bar Code Scanner (Optional) for Semifinished Goods Use
A confirmation documents the processing status of orders, operations, sub-operations and individual capacities. It is identified by a confirmation number that is printed as a barcode.

Prerequisites
A production order is printed with a confirmation number barcode at the same time as the shop floor papers. The process is carried out in accordance with this information. Once the production process has been completed, the user confirms the activity. The material used is backflushed when the operation is confirmed. Ensure that sufficient material is in stock. You can check this using transaction MMBE. If there is not enough material in stock, you can post a goods receipt using the transaction MB1C with the movement type 561.

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Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Single Screen Entry of Confirmations CO11N

2. On the Enter time ticket for production order screen, make the following entries: Field name Description User Action and Values Comment This is printed on the shop floor papers in the standard process. It is possible to enter the confirmation number manually if the barcode scanner fails. (Here, the process is run using manual input of the order number and operation number.)

Confirmation

Bar code reader scan

Order Oper./activity Confirm. type

The order number you noted for H84-1040 0010 Final confirmation

3. Confirm your entries with Enter. 4. Confirm the subsequent information messages with Enter. Accept the default values displayed. 5. In the Yield field, confirm is the total order quantity entered as default. 6. Save your entries. 7. Choose Back to return to the SAP Easy Access screen.

Result
After saving the confirmation data, the stock postings are executed for withdrawing raw material and goods receipt for the semi-finished product. If the posting cannot be performed, the user is asked to make the necessary corrections. If the user does not make any corrections, the stock posting is sent to a pool so that the incorrect goods movements can be processed (transaction code COGI). At the same time, the receipt of the completed assembly is posted to the amount of the confirmed yield. From an organizational point of view, it is important to ensure that incorrect goods movements are post-processed when backflush and automatic stock postings are used (transaction code COGI).

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Rework Order Process Use
Some operations produce more scrap due to operational or component defects. To simulate the process, some predefined operations are triggered automatically at end of the planned required operation. These are also released automatically and are followed by production execution as normal production parts. In the following scenario, scrap is detected during a QM activity. A rework process is triggered immediately, the rework activity is confirmed, and the additional material consumption is posted. To simulate the process, we assume that some scrap was found by inspection in the last order (the production order for H84-1040 which you just completed in the last step).

Prerequisites
The reference operation set for H84-1040 has been defined.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Order Oper./activity Confirm. type 3. 4. 5. 6. 7. 8. 9. 10. Description Single Screen Entry of Confirmations CO11N User Action and Values The order no. you noted for the material H84-1040 0020 Partial confirmation Important Comment

2. On the Enter time ticket for production order screen, make the following entries:

Confirm your entries with Enter. In the Scrap field, enter the scrap quantity 5, and choose Enter. Choose Save. Confirm the dialog box Trigger point function with Enter. Choose Copy (F7) on the Assign Operation/Sub operation Numbers screen. Confirm the dialog box Trigger point function with Enter. Go back to your user menu. Display the production order. To do so, access the activity using one of the following navigation options: SAP role menu Transaction code Display Production Order CO03

11. Enter the order number for the material H84-1040. 12. On the Production order Display: Header screen, choose Operation overview (F5). 13. Note that the rework operation 0022 was added and released.

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14. After the scrap is repaired (rework finished), repeat steps 1-3 for the operation 0022. 15. Enter the yield quantity 5 and the labor time 1 H (assumed the rework time). Choose Enter. 16. Choose Goods movement and perform an additional goods issue posting here (assume additional material needs for rework). 17. On the Enter production order confirmation: goods movements screen make the following entries: Field name Material Quantity Plant Stor. Loc. storage location Description User Action and Values H84-1020 5 PC BP01 0004 Comment

18. Confirm your entries with Enter. 19. Confirm the message Enter the Batch with Enter. 20. Select the material and choose Batch determination (contrl+F4). The batch was determined using the FIFO strategy. 21. Choose Save.

Result
The rework process is complete.

The rework process shown here is a real business case. The scrap is completely repaired with some additional material consumption and activities in an automatically triggered rework process. For a more complex business case with more complex rework activities, you can define the operations in a reference operation set. Another possibility is to cancel the confirmation of operation 0010, confirm it again with the actual quantity and activity again. This can be applied if the scrap is not completely repaired.

Analysis and Treatment of Bulk Materials Prerequisites
Material H84-1070 Glue / oil is defined as bulk material.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Display Stock/Requirement Situation MD04

2. On the Stock/Requirements List: Initial Screen, make the following entries: Field name Material Plant 3. Confirm your entries with Enter. Description User Action and Values H84-1070 BP01 Comment

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4. Note that no dependent requirement is triggered and no reservation, planned order or production order is included in the bulk material. To analyze this, enter the following data on the Stock/Requirements List: Initial Screen: Field name Material Plant Description User Action and Values H84-1000 BP01 Comment

5. Select a production order number and choose Display. Choose Component overview (F6). Material H84-1070 is displayed. Do the same for a planned order. 6. Note that in the Production Order Display: Component Overview screen, the component H84-1070 (Glue/oil) is not flagged as a backflushed material and there is no default issue storage location although both are maintained in material master. This means that the bulk material will not be backflushed or issued to a single production order; instead it is issued to the cost center with the movement type 201. To do this, you have to execute the procurement first. 7. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Material Plant Scope of planning Product group MRP control parameters Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Process control parameters Also plan unchanged components Display results before they are saved Display material list Simulation mode Ω (remove indicator) Ω (remove indicator) Ω (remove indicator) Ω (remove indicator) NETCH 1 (Purchase requisitions) 3 (Schedule lines) 1 (MRP list) 3 (Delete and recreate planning data) 2 (Lead time scheduling and capacity planning) MRP – Single-item, Multi-level MD02 Description User Action and Values H84-1070 BP01 Comments

8. On the Single-Item, Multi-Level screen, enter the following data:

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9. Confirm your entries with Enter. 10. Confirm the information message Please check input parameters. 11. Go back to the SAP Easy Access screen. Then repeat steps 1–3 in this procedure to display material H84-1070 again. 12. In the next step, the purchase requisition would usually be converted into a purchase order and the goods receipt would be posted. However, in order to simplify the whole process of this scenario, we will simply post some initial stock entry here. 13. To post the initial stock, choose one of the following navigation options: SAP role menu Transaction code Field name Movement type Plant Storage location Description Other Goods Receipts MB1C User Action and Values 561 BP01 0004 Comment

14. On the Enter Other Goods Receipts: Initial Screen, enter the following data:

15. Choose Enter. 16. On the screen Enter Other Goods Receipts: New Items, enter the following data: Field name Material Quantity Description User Action and Values H84-1070 100 Comment

17. Choose Save. The material document is posted. 18. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Movement type Plant Storage location Description Goods Withdrawal MB1A User Action and Values 201 BP01 0004 Comment

19. On the Enter Other Goods Issue: Initial Screen, enter the following data:

20. Choose Enter. 21. On the Enter Goods Issue :New Items screen, enter the following data: Field name Cost center Material Quantity Description User Action and Values 1301 H84-1070 50 Comment

22. Choose Enter, and Save. The document is posted. 23. Access the activity using one of the following navigation options: SAP role menu Transaction code Display Production Order CO03

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24. Input the order number for the material H84-1000. Choose Enter. 25. On the Production order display: Header screen, choose Goto  Costs  Itemization from the menu. You see the cost of this production order, but the bulk material is not there.

Missing Part Management (Optional: with Workflow Integration) Checking Missing Parts Use
The purpose of this activity is to manually carry out a missing parts check in your production order. Material availability is always checked in certain operations of the production cycle, for example during production order creation or release. Missing parts information can be generated as a missing parts report. The production planning calculates several solutions to handle the missing parts situation: Check with supplier if faster delivery is possible, replace the missing parts with another component in the production order or postpone the execution of this production order. This section focuses on the material H83-1050, but the same issues apply to other materials.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code 2. Enter the following data: Field name Order Description User Action and Values Your production order number for the header material H83-1000 Comment Change Production Order CO02

3. Confirm your entries with Enter. 4. Choose Check Material Availability (Ctrl+F4). 5. On the Availability Check screen, choose Missing Parts Overview. A list of missing parts for this production order is displayed. 6. Choose Component Overview (F6) and check the Reqmts qty for each item. 7. Choose Back and Save. 8. Choose Back to return to the SAP Easy Access screen.

Result
The missing parts of the production order have been checked.

Posting Goods Receipt Based on Purchase Order Use
You have sent out the purchase order for the missing part H83-1050 and the vendor delivers the requested material based on your purchase order. When you perform the goods receipt based on the purchase order, your MRP controller is informed of the arrival of the missing part H831050.

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The batch for the material H83-1050 uses batch classification. Therefore it is necessary to use the older transaction MB01 for goods receipt processing instead of the transaction MIGO. Posting the goods receipt with the transaction MIGO skips the characteristic assignment screen of the batch classification. It is then not possible to find the material batch later in the process.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Post Goods Receipt for PO MB01

2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Movement Type Purchase Order Plant Storage Location Description User Action and Values 101 <Your purchase order for H83-1050> BP01 0004 Comment

3. Confirm your entries with Enter. 4. On the Goods Receipt for PO: Selection Screen screen, verify the item and the quantity and choose the item that you want to post. Choose Adopt+Details. 5. On the Goods Receipt for Purchase Order: New Item 0001 screen verify the data again; then confirm your entries with Enter. 6. Confirm the Automatic Batch Number Allocation dialog box with Yes. 7. On the Goods Receipt for Purchase Order: Classification screen, enter the goods receipt date as the posting date, and choose Back. 8. On the Goods Receipt for Purchase Order: New Item 0001 screen, the system displays the message Mat. Is a miss. Part. MRP controller WF-BP01 will be notified. Confirm with Enter twice. 9. On the Goods Receipt for Purchase Order: Overview screen, confirm the entries by choosing Save. 10. Choose Back to return to the SAP Easy Access screen.

Result
The goods receipt for a missing part has been posted and the workflow for missing parts has been triggered.

Workflow of Missing Parts Processing (Optional) Use
When the workflow of missing parts is triggered, your MRP controller WF-BP01 receives an express info from the system. WF-BP01 performs the steps for the workflow of missing parts.

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Procedure
1. Log on with the user WF-BP01. The default password is WF-BP01. (If this is the first time to log in with user WF-BP01, the initial password is INITIAL. Change the password to be WFBP01 after initial log on.) 2. Once you have logged in, go to the Workplace via the transaction SBWP. 3. In your Inbox, Unread Documents folder, there are unread documents. Read the document with the title Missing part H84-1050 of Plant BP01 has arrived. 4. In your Inbox, Workflow folder, there are some new workflow items. Execute the item with the title Please check the related reservation by selecting Execute. The related production order is displayed with reservation number that is waiting for the missing parts. You then arrange the received goods for the production. 5. Choose Back to return to the SAP Easy Access screen.

Result
You have finished the part of missing parts workflow.

Simple Mail Notification of Missing Parts (Optional) Use
In this scenario, you can trigger a workflow to inform the MRP controller about the missing part arrival. There is an alternative way to inform the MRP controller with an easy and simple function. In the output determination of the goods receipt, you could trigger a simple mail instead of the workflow. However this is not in the scope of this scenario. For details, refer to SAP Note 426648.

Releasing Production Orders for Finished Products Use
Release at order header level releases the order and all its operations. The order and the operations receive the status REL (released). You can release a production order in create and change mode.

Prerequisites
The production order created by the MRP controller has been assigned a release date in accordance with the scheduling margin key. The production scheduler selects all the created production orders with a release date and releases all relevant production orders by means of mass processing.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name List Selection tab page Material H84-1000 In this step the production order for the finished product H841000 is selected and released. Description Release Production Orders CO05N User Action and Values Order Headers Comment

2. On the Release Production Orders screen, enter the following data:

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Order type Select. at operation level Plant Sys. Status 3. 4. 5. 6.

YHM2 BP01 CRTD

On the Mass processing -Release tab in the Function parameter area, select Order release. Confirm your entries with Enter and choose Execute (F8) to execute the report. Make a note of the total order quantity: ________________________. Select the production orders and choose Execute (F8) to execute Mass processing.

Shop floor papers are printed automatically when the production orders are released. In the production order display screen, choose Order  Settings  List control to get an overview about the lists to be printed and the spool settings. Alternatively you can check the papers created by the production order through transaction SP01. 7. The system status has changed from CRTD (created) to REL (released). 8. Select your production order and choose Change Object. 9. Choose Operation Overview (F5).

10. Choose Select All, followed by Op. details. 11. Make a note of the confirmation numbers (Confirmation) for each operation. You can scroll through the operations using the navigation buttons. Confirmation numbers: ________________. 12. Choose Back to return to the Production Order Change: Operation Overview screen. 13. A material availability check can be carried out manually by choosing: check material availability. If there are no missing components the status will change to MACM: Material Committed. The availability check in Shop Floor Control checks whether the components required for a production order are available. The checking control can be automatically performed during order creation or during order release. 14. Save the production order and return to the Order Information System: Detail List of Order Headers screen. 15. Go Back to return to the SAP Easy Access screen.

Result
The production order for the product H84-1000 has been released.

Picking Components for Finished Products (IM – FIFO Strategy) Use
The released production order is now ready for picking.

Prerequisites
The relevant FIFO strategy has been defined.

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Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Profile Production order Description Standard picking profile Order number of the production order to be picked Picking list CO27 User Action and Values 000002 Enter your order number for the material H84-1000. Comment

2. On the Picking List: Initial screen, make the following entries:

3. Confirm your entries and execute the report (F8). 4. Select the relevant reservations for material H84-1020 and choose Picking. 5. Select the material and choose Batch determination 6. Choose Post. 7. The system automatically switches back to the previous screen: Choose List → Refresh from
the menu. The picked material disappears from the list. 8. Check the triggered material document, compare the current stock overview, confirm the FIFO strategy executed.

9. Repeat steps 1-4 for the component H84-1010. No batch management is carried out for this
material.

10. Repeat steps 1-4 for the component H84-1030 and H84-1040 separately. On the screen
Picking list, in the Batch field, select the batch manually using the input help (F4). Select a low number for H84-1040. The batch number is automatically assigned by the system, so a low batch numbers means that it was produced further in the past than a batch with a high number. (To simplify the process, the semifinished material batch classification is not assigned, but could be added on demand).

Confirming Production Orders with Barcode Scanner (Optional) for Finished Products Use
A confirmation documents the processing status of orders, operations, sub-operations and individual capacities. They are identified by a confirmation number that is printed as a barcode.

Prerequisites
A production order is printed with a confirmation number bar code at the same time as the shop floor papers. The process is carried out in accordance with this information. Once the production process has been completed, the user confirms the activity. The material used is backflushed when the operation is confirmed. Ensure that sufficient material is present in stock. You can check this using transaction MMBE. If there is not enough material in stock, you can post a goods receipt using transaction MB1C, with the movement type 561.

Procedure
1. Access the activity using one of the following navigation options:

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SAP role menu Transaction code Field name Description

Single Screen Entry of Confirmations CO11N User Action and Values Comment This is printed on the shop floor papers in the standard process. It is possible to enter the conformation number manually if the barcode scanner fails. (Here, the process is run using manual input of the order number and operation number.)

2. On the Enter time ticket for production order screen, make the following entries:

Confirmation

Bar code reader scan

Order Oper./activity Confirm. type

The order number you noted for H84-1000 0010 Final confirmation

3. Confirm your entries with Enter. 4. Confirm the subsequent information messages with Enter. Accept the default values displayed. 5. In the Yield field, enter the amount you want to confirm. Confirm the scrap as well. 6. Save your entries. 7. Choose Back to return to the SAP Easy Access screen. 8. Repeat the steps 2 to 7 for the second operation (0020). 9. An information message for batch check is displayed on the status bar. Confirm it and choose Save.

Result
The production order at finished goods level is confirmed and ready to be packed with Handling Unit Management (HUM) or without HUM.

Handling Unit Management for Finished Products
Use
Handling units can be created at the end of production (packing of finished goods) or at a later stage after creating outbound deliveries. This depends on the packing process in your company: Packing the finished goods may not be feasible at the end of production because the quantities to be packed or delivered are not fixed. In this case, the packing process can be carried out after creating the outbound delivery (including the delivery note).

Initial Goods Receipt for Packaging Material Use
In this scenario, we use initial goods receipt to prepare the available stock for packaging material H84-1080.

Procedure
1. Access the transaction using one of the following navigation options:

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SAP role menu Transaction code

Other Goods Receipts MB1C

2. On the Enter Other Goods Receipts: Initial screen, make the following entries: Field Name Movement type Plant Storage location Description User Action and Values 561 BP01 0010 Comment

3. Confirm your entries with Enter. 4. On the Enter Other Goods Receipt: New Items screen, make the following entries: Field name Material Quantity 5. 6. 7. 8. Description User action and values H84-1080 100 Comment

Confirm your entries with Enter. Confirm the system message with Enter. On the Enter Other Goods Receipts: Collective Processing screen, choose Save. Choose Back to return to the SAP Easy Access menu.

Option 1: Creating Handling Units at the End of Production Use
In this step, you execute packing and goods receipt posting at the end of a production order. The stock is posted directly into storage location YD05 and is available for picking. The availability check (checking group) is done at storage location level (with checking group ‘02’).

Prerequisites
The packing instructions with packaging material for finished goods as well as the packing instruction determination records are maintained. The production order for H84-1000 has been totally confirmed (CO11N). The goods receipt for the production order is outstanding. The storage location YD05 for goods receipt is maintained in the material master (MRP 2 view) or in the production order. A checking group 02 for the availability check at storage location level is maintained. The storage condition YH (determination of picking location 0084) is maintained in the material master (Plant/Stor.1 view)

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Packing in production orders COWBPACK

2. On the Pack for Work Order screen, make the following entries: Field name Order Description User Action and Values Enter your production order number for material H84-1000 Comment

3. Choose Enter to confirm your entry. 4. On the Pack for work order screen, make the following entries:

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Field name Storage Location Ship-to party Quantity to be packed

Description

User Action and Values YD05 H8490 The quantity you confirmed before

Comment GR must be posted in the HU storage location YD05 You can create several HUs for a production lot, for example 100 pc → 4 HUs with 25 pc each

5. On the Automatic Expansion pop-up, choose Yes. 6. According to the packing instructions, the produced quantity is divided in one or several handling units to be packed. Choose Save. The handling unit(s) is/are created. Choose Display Saved HUs and note the HU number(s): _________________. 7. You now post the goods receipt for the production order. You can do this from the Pack for Work order screen. From the menu, choose Follow-On Functions  Goods Receipt for Production Order. 8. On the Enter Goods Receipt: New Item screen, choose Propose HU. The HU created before should be displayed. Choose Save to post the goods receipt.

Result
The handling units have been created (the finished product and packing material have been put together), and the goods receipt has been posted. The stock of the finished goods is now available in HU / Produktion storage location YD05 in plant BP01. The sales order and outbound delivery for picking can be created.

Option 2: Creating Handling Units Before Outbound Delivery Use
The goods receipt for a production order has been posted to storage location 0003 (without handling units/unpacked finished goods). The picking location YD05 for the Outbound Delivery is defined by the storage condition YH in the material master (Plant data/Storage 1 view). Stock in storage location YD05 is excluded from MRP and is not available for new outbound deliveries. Therefore the availability check for sales orders and outbound deliveries (checking group) must be done at plant level with checking group YH in the material master (MRP 3 view). This means that unpacked finished goods in storage location 0003 are available for new sales orders/outbound deliveries and packed finished goods (handling units) in storage location YD05 are reserved for existing and packed outbound deliveries. The packing and the transfer posting from storage location 0003 to YD05 is performed after the creation of a new outbound delivery by the dispatch worker. The distinction of unpacked finished goods stock (unrestricted use) in storage location 0003 and packed finished goods stock in storage location YD05 (blocked for deliveries) with this issue is also useful for the transparency of inventory control and ATP check.

Prerequisites
Unpacked stock of H84-1000 is available in storage location 0003. This means you have already posted the goods receipt to storage location 0003 after production. Packaging materials are maintained for finished goods. The material master H84-1000 is maintained as follows:  MRP 3 view: Checking group YH (availability check at plant level)  MRP 4 view: Storage location MRP indicator = 1 for YD05  Pl./Stor.1 view: Storage conditions YH (Determination of picking location 0084)

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A sales order and an outbound delivery have been created. The delivery note has been printed out.

Procedure
1. Call transaction MMBE (stock overview). Enter the material number H84-1000 on the initial screen and choose Enter for an overview of the stock in storage location 0003 in plant BP01 for material H84-1000 (quantities and batch number) 2. Access the activity using one of the following navigation options: SAP role menu Transaction code Packing Station HUPAST

3. On the Packing Station: Initial Screen, make the following entries: Field name Packing Station 4. Choose Enter. Description User Action and Values YH_MTS_FREE_PACKING Comment

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5. On the Packing Station YH_MTS_FREE_PACKING screen, make the following entries: Field name Material Number (To be packed) Choose Enter Batch number Enter the lowest batch number available in storage location 0003 to use the FIFO strategy You can find the lowest batch number in the stock overview (MMBE). Description User Action and Values H84-1000 Comment

6. Choose Enter. A new line item is added in the Pack Material tab page. 7. Select the line item with the material number and the batch number and choose Allowed PackMatls. Choose a suitable packaging material (for example, H84-1080) according to the delivery quantity or customer-specific criteria of the delivery note. The system creates a new handling unit number. 8. Enter the quantity to be packed in the Quantity field of the line item. 9. Note the number of the handling unit(s) _____________ and the batch number(s)__________ 10. Choose Save.

Result
The required quantity of the finished good H84-1000 according to the delivery note has been packed. The transfer posting from storage location 0003 to storage location YD05 has been carried out. The stock (handling unit) is available in storage location YD05 and can be used for picking the outbound delivery.

Creating Outbound Delivery Use
After creating the outbound delivery, you make the goods available for shipping.

Procedure
1. Access the activity using one the following navigation options: SAP role menu Transaction code Field name Shipping point / Receiving Pt Deliv. Creation date CalcRuleDefltDlvCrDt Field name Sales document Description Sales Orders Due for Delivery VL10A Description User Action and Values BP01 From current date to one month later 2 User Action and Values Sales order no. Comment Comment

2. On the Sales Order, Fast Display screen, make the following entries:

3. Select the Sales orders tab page, and make the following entries:

4. Choose Execute (F8). 5. On the Activities Due for shipping “Sales Orders, fast display” screen, select your sales order. Choose Create single delivery in dialog.

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6. Save and note the delivery number ______________________.

Result
The outbound delivery has been prepared for shipping.

Picking Outbound Delivery (Assigning HU and Batch) Use
Handling units are available in storage location YD05 and must be assigned to an outbound delivery. The handling units have been created either by the end of production (with transaction COWBPACK) or after creating the outbound delivery with transaction HUPAST.

Prerequisites
An outbound delivery exists. The number of the Handling Unit (incl. the Batch number) is determined by the dispatch worker for picking the outbound delivery.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Outbound delivery Description Change Outbound Delivery VL02N User Action and Values The delivery number you noted before Comment

2. On the Change outbound delivery screen, maintain the following field and choose Enter:

3. Choose Enter. 4. On the Outbound Delivery <delivery number> Change: overview screen select the Picking tab page. 5. Enter the pick quantity and batch number of the handling unit you noted before. (You can use the stock overview (transaction code MMBE) to get the batch number and the handling unit number if the handling unit has been created by the end of production with transaction COWBPACK) Check the storage location. Change the proposed storage location if required (0003  YD05) 6. Choose Pack to branch to the Processing of Handling Units for Outbound Delivery screen. Enter the number of the handling unit and choose Back. The assignment of a HU is not possible if the quantity of the HU is higher than the picking quantity of the outbound delivery. 7. On the Outbound Delivery <delivery number> Change: Overview screen, a new line item has been added: The packaging material H84-1080 of the handling unit. Enter the picking quantity for this item under plant BP01, storage location 0010. 8. Check that both line items have the picking status ‘C’. 9. Choose Save.

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10. Check the assignment of the handling unit to the outbound delivery and, on the Change outbound delivery screen, choose of the document flow. Document flow (F7). The HU number should be part

Result
The HU and the batch are assigned to the outbound delivery. Finished good H84-1080 and packaging material H84-1080 are picked.

Posting Goods Issue Use
The goods issue has to be posted for the delivery.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Outbound delivery Description Change Outbound Delivery VL02N User Action and Values The delivery number you noted before Comment

2. On the Change Outbound Delivery screen, maintain the following entries:

3. Choose Post Goods issue. 4. If the message appears that H84-1080 is out of stock, use transaction MB1C to create some stock. 5. The system issues the following message: 1 successful and 0 incorrect goods movements. 6. Choose Back to return to the SAP Easy Access screen.

Result
The goods issue for the delivery has been posted. The handling unit has leaved the physical and the inventory stock.

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Checking Status of Outbound Delivery and History Check of HU Use
The purpose of this activity is to check the status of the outbound delivery and the history of handling unit.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Outbound Delivery 3. On the Overview screen, choose Description Display Outbound Delivery VL03N

2. On the Display Outbound Delivery screen, enter the following data and confirm with Enter: User Action and Values Enter the number of the outbound delivery Document Flow (F7). Comment

4. A picking request, a handling unit and a goods issue document are displayed with the status Complete. The overall status of the outbound delivery is Being Processed because of the missing billing document. 5. On the same screen, select the handling unit line and choose Display Document. 6. On the screen Detailed Data for Handling Unit, choose the History tab page to view the lifecycle of the handling unit.

Billing Processing
Creating Billing Document Use
The purpose of this activity is to create an invoice for the delivery.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Document Description Create Billing Document VF01 User Action and Values Enter the delivery number you noted earlier Comment

2. On the Create Billing Document screen, make the following entries:

3. Confirm your entry with Enter and save your entries. 4. The number of the billing document that has been saved is displayed. 5. Make a note of this number: __________________________.

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6. Go back to the SAP Easy Access screen.

Result
The delivery of the subset has been invoiced.

Displaying Customer Line Items Use
In this procedure, you display the customer line items.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Customer account Company code Description Customer Line Items FBL5N User Action and Values H8490 BP01 Comment

2. On the Customer Line Item Display screen, maintain the following fields:

3. Choose Execute to confirm the entry. 4. The Customer Line Item Display screen displays the line items for customer 8490 that have been transferred to financial accounting. 5. Go back to the SAP Easy Access screen.

Result
The accounting department receives information about the rendered invoice and its due date.

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Cost Object Controlling in Discrete Manufacturing – Preliminary Costing
Prerequisites
Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Product cost by order enables you to analyze costs at the level of manufacturing orders, production orders as well as process orders. In product cost by order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into inventory. The settings in Production Planning & Control (PP, PP-PI) are required to cost manufacturing orders as part of the production execution.

Use
When you create a production order and after each subsequent change of data in the order, the system calculates the planned order costs. The planned costs are allocated to cost elements. Graphical overview:

Planned costs
Material components
 Ind.

"Rel. to costing"  Price

Cost elements: elements: Material costs Costs for external procurement

Phases
 Gen.

operation values  Standard values  Control key: "Costing indicator"

Order type / Plant
 Costing

Production costs Material overhead costs

Resources
 Formula

variant

Display planned / actual costs Production overhead costs
 Cost  Cost  Cost

key for costing  Cost center  Activity type  Formula constants Cost calculation log

elements itemization component split

Costs for external processing

Planned costs for components Whether costs are calculated for a material component depends on the costing relevancy indicator of the component. This indicator specifies that the component is fully relevant to costing. If the indicator is not set, the material component is not taken into account in costing. This indicator is in the material list General data screen in the order. It is set as a default setting, but can be removed manually.

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Planned costs for material manufactured in-house If a material is manufactured in-house, the system calculates the planned costs of the material using the valuation variant and a price stored in the material master record. In Customizing, a costing variant is defined for each order type and plant. The costing variant refers to a valuation variant which determines which price from the material master record is used to calculate the planned costs of a material (for example, the moving average price or the standard price). Planned costs for production Whether an operation is calculated depends on the control key and the costing relevancy indicator of the operation. Using the control key of the operation, you can specify whether the operation is relevant to costing. If the operation is relevant to costing, you can additionally use a costing relevancy indicator to specify the factor that is to be used to calculate the services performed in an operation or you can disconnect the operation from costing. Operations are automatically excluded from costing. Setting up a quantity structure The most important data for setting up a quantity structure for an activity is defined in the resource/ work center: Activities Formulas Every activity is allocated to an activity type. Each activity type is allocated to a formula in the resource. Using the formula and the standard times in the operation, the system calculates how much activity is expected for a particular activity type in a particular operation. As soon as the system has calculated how much activity is expected for a particular activity type, it can valuate the activity for each activity type. Cost center assignment You can assign a resource to a cost center on the Cost Center Assignment screen. You can maintain the following data: In the validity section, you determine the effective period for the assignment of the resource to this cost center. To cost activities, enter the cost center to which the activity types have been allocated. The cost center must be defined in the controlling area. The controlling area is specified via the plant. Note that the cost center to which you want to assign a resource must already exist in the system. If you want to assign the resource to different cost centers with different validity periods, overwrite the old validity periods and enter the new cost centers. However, the resource may be assigned to only one cost center at any one time. To cost standard values, assign activity types to the appropriate cost center. These activity types can then be entered in the cost center screen of the resource.

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Example:

Resource
Formula F1 F2 . . . (Max. 6) Example : A B . . .

Cost center
Activity types Charge rates USD 10/h USD 20/h

Formula F1
Operation qty Base qty

x

Base output Res. output

Rate for activity type A

x Duration = Total time

USD 10/h

 Standard  Resource

values values

 Operation

Total time

x Charge rate = COSTS

constant

Overhead costs Overhead costs are costs that can be assigned only indirectly to the production order, such as electricity costs or general storage costs. Overhead costs are assigned to the production order via overhead surcharges. They are updated in the order under the cost elements defined in the costing sheet. A costing variant is defined in Customizing for each order type and plant. The costing variant refers to a costing sheet. The costing sheet determines what overhead surcharges are assigned to the order. The costing sheet specifies: Which direct costs to apply surcharges to Under which conditions an overhead is calculated How high, depending on these conditions, the surcharge percentage is Which object (for example, a cost center) is reduced under which cost element during actual postings The order type is set up in a way that planned cost are determined automatically when saving the production/process order. You can then execute the preliminary costing by choosing Cost order (Ctrl + F7) in the application toolbar on the Create Production Order screen.

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Cost Object Controlling in Discrete Manufacturing – Simultaneous Costing
Prerequisites
See above under Preliminary Costing.

Use
In Cost Object Controlling, actual costs for cost objects are recorded during simultaneous costing. In the Product Cost by Order component, you can record actual costs for manufacturing orders. Cost objects can be debited with primary costs in the following ways: Through postings in Financial Accounting (FI) Through postings in Materials Management (MM) Through postings in Human Resources (HR) Cost objects can be charged with secondary costs in the following ways: Through postings in Controlling (CO) Through the use of time sheets (CATS) Cost objects can also be debited with actual costs by confirmations in Logistics. In confirmations, a cost object can be debited with: Secondary costs through internal activity allocations that are generated automatically by the confirmation Primary costs through material withdrawals that are generated automatically by the confirmation Simultaneous costing derives automatically in background from the main processes in Logistics like goods movements and activity confirmations.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu Change Production Order Transaction code CO02 2. On the Change Production Order screen, enter the production order number and choose Enter. 3. On the Production Order Change: Header screen, from the menu bar, choose Goto → Costs → Analysis. 4. The costs debited to the order can be analyzed by using a layout such as Cost Trend.

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Cost Object Controlling in Discrete Manufacturing – Period End Closing
Use
From a business perspective the period-end closing in cost object controlling consists of three different areas: Allocation of periodic costs: With SAP ERP you can allocate process costs, revaluate activities and processes with actual activity prices, post overheads and distribute costs from order header to the order items in case of using coproducts. Analyze the costs on the cost objects by calculating Work in Process (WIP) as well as target costs and variances. Correct the financial accounting by posting WIP and price variances.. Calculating work in process will calculate your WIP either at actual costs (when using full settlement) or at target costs (when using periodic settlement). Variance calculation calculates not only variances, but also target scrap and target costs as the basis for the target/actual comparison and scrap variances. Settlement is the last step in period-end closing in Cost Object Controlling. The necessary accounting documents are posted in Financial Accounting and in the material ledger, if used, and data is passed on to other components such as Profitability Analysis and Profit-Center Accounting. In the solution a lot-based production scenario is chosen with production and process orders. In this case the costs posted onto the order via goods issues, confirmations and goods receipts are stored on a CO-object, which has a one-to-one relationship to the order. In this example orders have the settlement type FULL.

Periodic Costs

Process Costs Allocation Revaluation at Actual Prices Overhead Distribution for Co-Products

Analyzing Costs

Work in Process Scrap, Variances, Target Costs

FI/CO -Posting

Settlement

The period end closing consists of the following steps: As long the production order is not fully delivered or flagged technically complete, the remaining order balance is treated as WIP. Otherwise the order balance shows up in variance calculation. If you do lot-based product controlling WIP is valuated at actual costs. The WIP is calculated as the difference between the debit and credit of an order as long as the order does not have the status DLV (delivered).

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In lot-based product controlling the variances are not calculated until the order has the status DLV (finally delivered) or TECO (technically completed). This means that at the time the order has reached this status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance. In lot-based product controlling orders never have work in process and variances at the same time. Variance calculation compares the actual costs incurred for the production/process order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order. In this way you can find out which variances occurred between the value of the delivery and the actual costs and you can find the reason for the posting to the price difference account for materials with standard price control. Variances from production (target version 1) Variance calculation compares the actual costs incurred for the production order with the target costs for the production order and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order. This enables variance calculation to find out which variances occurred between the time the production order was created and the end of the production process. Variances from planning (target version 2): Variance calculation compares the planned costs for the production order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order. This enables variance calculation to find out which variance occurred between the time the standard cost estimate was created and the time the production order was created. Variance categories: The system assigns every variance to a variance category. The variance category indicates the cause of the variance (such as price change, lot-size variance). Variances are updated to the information system and passed on to Profitability Analysis according to variance category. You differentiate between variance categories on the input side and on the output side: Variances that occur because of goods issues, internal activity allocations, overhead and G/L account postings are displayed on the input side. Price variances, quantity variances, resource-usage variances and input variances are displayed on the input side. Variances that occur because too little or too much of the planned order quantity was delivered, or because the delivered quantity was valuated differently are displayed on the output side. Variances on the output side occur when you deliver using a price that differs from that found by dividing the target costs and the delivered quantity. If you deliver using the standard price, a variance can occur when the order lot size differs from the costing lot size. This is displayed as a lot-size variance.

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Variances on the input side:
Price

Actual Price

Price Variance category ?
Planned Price

Own

Planned Costs

Quantity Variance
Quantity
Planned Quantity Actual Quantity

Variances on the output side

Price
changed S-price

Output Price Variance
S-Price (mixed cost estimate)

Mixed Price Variance
Price of Procurement Alternative

Lot-size independent portion of procurement alternative

Lot-size Variance
Planned Quantity Actual Quantity

Quantity

Settlement: During the production process, product cost collectors and manufacturing orders are debited with actual costs. The actual costs posted to an order can be more or less than the value with which an order was credited when the goods receipt was posted. When you settle, this difference between the debit and credit of the order is transferred to Financial Accounting (FI). The total variance can be transferred to profitability segments in Profitability Analysis (CO-PA). This enables you to see an additional contribution margin in CO-PA. You can transfer the individual variance categories of the total variance to value fields in CO-PA in combination with certain cost elements or cost element groups. The WIP will be transferred to Financial Accounting (FI) and Profit Center Accounting (EC-PCA) in accordance with the posting rules in Customizing.

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Procedure
1. Access the activity using one of the following navigation options: SAP role menu Transaction code Actual Reval.: PrCstCol. Ind.Pro. MFN1

2. In the dialog box, enter a Controlling area of BP01, if necessary. 3. On the Revaluation at Actual Prices Production order screen, make the following entries: Field name Order Period Fiscal Year Test Run Detail List Description User action and values Enter production order number (current period) (current year) Do not set indicator Set indicator Comment

4. Choose Execute. 5. Choose Back twice. 6. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Order Period Fiscal Year Test Run Dialog List 8. 9. 10. 11. 12. Description Order key Act. Overhead: Int.Order Ind.Pro KGI2 User action and values Enter production order number (current period) (current year) Do not set indicator Set indicator Comment

7. On the Actual Overhead Calculation: Order screen, make the following entries:

Choose Execute. Choose Back twice. Confirm the dialog box. Choose Back again. Access the activity using one of the following navigation options: SAP role menu Transaction code WIP Calculation for Order KKAX

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13. On the Calculate Work in Process screen, make the following entries: Field name Order WIP to Period Fiscal Year All RA versions RA version Background processing Test Run Log information messages Save log Display orders with errors Description User action and values Enter production order number (current period) (current year) Do not set indicator 0 Do not set indicator Do not set indicator Set indicator Set indicator Do not set indicator Comment

14. Choose Execute. 15. To perform variance analysis, make sure that the variance key is maintained in Production order header – control data (variance key = 000001) 16. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Order Period Fiscal Year All target cost vrsn Test Run Detail List 18. Choose Execute (F8). 19. Choose Back. Description Variances – Product Cost by Lot (I) KKS2 User action and values Enter production order number (current period) (current year) Set indicator Do not set indicator Set indicator Target versions 000, 001, 002 Comment

17. On the Variance Calculation: Initial screen, enter the following data:

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20. Access the activity using one of the following navigation options: SAP role menu Transaction code Field name Order Settlement period Posting period Fiscal year Processing type Test Run Check trans. data 22. Choose Execute. 23. Choose Back twice. Actual Settlement: Order KO88 User action and values Enter production order number (current period) (current period) (current year) Full settlement Do not set indicator Do not set indicator Comment

21. On the Actual Settlement: Order screen, enter the following data. Transaction code

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