Send a quote to our customers:

Select line and click on the coins:

Select line and click on schedule lines for item (to check if items are available):

New Screen:

Complete: see the customer as a whole (accounts receivable)

Complete:

Customizing:

What material do I check / where do I check it:

Carefully maintain the order probability:

Pricing: define condition types:

When I got Sales/Organisation, Distribution Channel and Division it does allocate the only available
pricing procedure:

You reduce complexity and create at the same part an unique value of the object of desire.

Create an order:
7

Delivery:

Invoicing:

Just press enter and the invoice will be shown; then save!
Now you can see that the outbound delivery is deemed to be complete and you can see the invoice.
Missing export data means I dont have any customized documents.

10

Cost center accounting

We will always use as activity type: manufacturing hours! (also in our case study)

11

Choose: wu group

Here we can see that the wu group is subdivided in primary and secondary cost elements.
Primary costs are taken from financial accounting (salaries, electricity, ). The secondary costs are
internal done in cost centers. Not all cost elements from financial accounting become costs in cost
accounting 3 exceptions:

Cost transfer sheet

12

o
o
o
o

imputed depreciation,
imputed interest,
imputed risk,
imputed wages

Now we need to display cost center group:

The two cost centers already exist.

13

Page 66, 67, 68

Now we start with Heating.

14

15

Then save.
Now we are creating cost center maintenance.

Now all overheads are created. Now we start with direct cost centers assembly
Then cutting:

16

If you want to change your cost center:

17

Now we have all our master data that we need for our cost center.
Page 73

Enter now all operating hours per cost center from page 65:

18

Click on overview button (mountain and sun)

Here you enter now the operating hours of the assembly:

19

With the little arrow down you come to the cutting cost center and so on.
We are doing this just for direct cost centers! (QC, assembly, cutting). When you are done, click on
save.
Now we are planning the costs centers:

20

now click on mountain and sun:

Enter information on page 64 (first table)! For the column cost element you get the information out
of display cost element group.
Here you put all information from the tables of page 64 -65 (wages, imputed depreciation, social
security, minor assets, electricity, training)

21

Now click on the arrow down to get to cutting and quality check! So you do that for all primary/direct
cost centers.
Now planning primary cost:
delete activity type and so you get a table without being able to write something in variable
costs.
Go to heating (dont have direct costs)

22

 Do it for heating, maintenance, production planning, storage area

Software upgrade is very low, therefore it belongs to minor assets.
Save!
PRIMARY COST PLANNING IS NOW DONE!
To get the Report of the cost centers:

Then click on execute and you will get a list of your costs:

23

But note that no actual costs have arisen until now. We are only planning it right now.
Create now statistical key figure (p.78)

24

Save and first step done (see notes)

Second step (p.79): distribution of statistical key figures

Click on overview button

And then enter the values from page 65 (m2) and save:

25

Second step done.

26

Before executing we have to create a cycle!

Click on attach segment!

27

And now save!

28

Deselect test run and then add your plant and press execute button.

If you have no recipients then go to cycle and change it (extras cycle change). If errors appear:
Go to Messages Total and you will get a list of your errors.
If you get to many senders: go to change cycle overwiew button in this list only one line should
be (not more)
29

Then click on execute and you will see that heating is empty.
Now we are doing the same for Maintenance!

30

Then save!

Then click on overview button and then you can fill in the information from page 65. (The hours) then
save
The assessment screen looks exactly the same like the distribution screen:

31

32

Attach segment

33

Here is the difference to the distribution: you have to enter assessment cycle.

34

and save! Then go back to initial screen and deselect test run and select your newly created cycle!

Now go to information systems and click on cost center actual/plan/variance:

35

Activity Prices
Chapter 4.7 I book

36

To do price calculations go to allocation price calculations:

37

In CASE STUDY select cost center group only:

38

After running the price calculation go back to activity output:

Prices for all cost centers ca be displayed: (Meaningful data for all 3 direct cost centers required)

39

MRP (book p.91)

Umbrella

Stick

Handle

Rib

Frame

Ring

Cover

Catch

spreaders

Product: umbrella (p.57)

To start entering the different parts we go to Logistics part again.

Do not fill in material number, it will better be filled in automatically

40

We dont use warehousing. However, Warehouse location is very useful in real life: Availability
checks can only be done on storage level or plan level. Warehousing can be used to create an overall
checking possibility.

Press default values to make this standard entry:

41

ST for pieces (Stck)

Press ribbon classification:

Close classification tab without chosing anything

42

Select applicable tax for all markets:

43

Availability check chose everything subject to daily availability

44

Depending on the product chose Transport group (here: pallet) Loading Group (Forklift)

45

Foreign trade is important in terms of trade restrictions (nothing selected here)

46

Who is responsible for purchasing?

47

48

FTI is the same as export for foreign trade. Sets restrictions aso

49

50

MRP screen tells the system how the material is managed:

MRP type: How is demand calculated?

51

Dis-/Advantages over consumption based planning: Can be overstocked. But easier. Cheap/low value
products -> consumption based planning
A.: Deterministic demand from production -> MRP
B.: After sales: without deterministic demand parts on shelve and requirement for consumption
based planning = CBP
Assumption: 3000 umbrellas are sold each year: we set an automatic reorder point to 1000

52

Chose fixed (FX) or alternatively HB

Chose a fixed order size since we have selected FX at Lo size

53

Scheduling margin keys:

Float after production buffer (minimum workdays) How long do you allow yourself to wait until a
good should be reordered again.
Opening period (max number of days)

54

Forecasting comes from the demand of the entire umbrella, not for each part.

55

56

Skip everything to Accounting 1:

We define prices for the parts:
EUR 0,05 for the handle
EUR 0,10 rib
EUR 0,10 ring
EUR 0,20 cover
EUR 0,20 spreader
EUR 0,20 catch

57

Type the same as given left in copy from and safe as default.

We enter a new name for the next prduct and the confirm the following screens with enter until
classification:
Here press next screen button and then procede with enter again.
58

At all text fields proceed with the green check button top left corner after entering the correct text.

59

Change the part price in accounting 1

60

Hit enter at last screen and safe:

Repeat steps for all parts!

61

At cover !!!! change unit of measurement to m2 (since it is one square meter we do not change the
amount))
At spreaders we need 8 pieces so amounts have to be changed.
If something is to be changed leave the create menu and go to change:

Select immediately

62

If you have missed to check one of the menues and go to create again and chose the material you
created, then you only get the missing menues. For a finished good you wont be able to enter the
menu with a given material umber again.

Semifinished products:

63

SFP is the two arts the umbrella is made of. (stick & frame)

MRP group is chaged to 0001 since we get the parts from internal prduct. (With independent
demand only if the part can be bought separately as a spare part or other from outside)

64

MRP2 in house production time is only necessary if no internal routing is done.

Change Valuation class to 7900 semifinished goods. Since it contains the various parts.

65

Since the frame is ordered MRP we change the MRP type to automatic and Let to size to be amended
each time we order
Therefor the fixed order size will be changed to a variable one.

66

Preparing the finished umbrella

67

68

Creating the structure of the materials

Book p. 114 ff.
semifinished products finished products. See p.7 book
A BOM hast to be created for the Stick (including its parts), for the frame (incl parts) and for the
umbrella (incl semifinished parts)

69

ICt Stock Item

70

71

Enter the parts/semifinished goods for each part you create including the amount equired for the
BOM and save afterwards.
e.g. Umbrella = Stick+frame;

Stick= Handle+Rib+Ring

To change mistakes go to

72

Select the material number of the header of the BOM module and you get the entire tree to make
changes

73

To view the entire BOM tree go to multilevel Materila BOM

Select the umbrella and either Inventory management or Production

Then click execute button

74

75

BOM
Slides nr 15 f.

A
Simple BOM:

n
material
BOM
n/m
Each material can be in multi BOMS (n)
And each BOM can contain multiple number of various materials (m/n)

Check ERPs to tables again!!!

Lecture 3
Book p. 121ff.
Create work centers to route them to the cost centers afterwards:

76

Pl23_asb wid manuell eigetragen:

77

Select work center category, responsible and usage

Enter standard value key ad hit enter, table is filled automatically

Enter if there will be set up time for the process in the work center, if machine time is needed and
labor:
Prosser-comment: Setup time is log-fixed, machine time is variable

78

Hit next screen button [F8]

Check figure 154 on page 127

Go to capacities:

79

80

No. of indiv. Capacity [IN CASE STUDY = 3, due to 3 machines]

81

Hit enter key mouse will jump to name field

82

Hit Save button to create personnel next

83

Hit enter

84

85

86

87

88

Hit save button

Copy next work center from existing one:

89

90

91

92

93

94

Since it is a labor based work center chage standard values

95

Go to capacities put mouse on Capacity category and got to [edit]-> delete

96

Selecte SAP 003 and hit enter key

97

98

99

100

101

102

Enter material and hit enter

103

Enter details and go to sequences:

104

Double click std seq

105

Go to work center column/row and press f4 -> delete first entry ad press ok

106

107

PP01 = Routing/Ref. op. set - internal proc.

Hit enter key

108

Machine time is mandatory, set-up time is not

Hit enter key repeat for all parts

109

Click on component allocation

If line cannot be selected directly go to new assembly and either enter or select from list

110

Save to finish first routing

Create new routing for frame
111

112

Press save for finising

113

Sales plan
Production plan
Independent demand
MRP
o Plan production orders
o Purchase requisitions

Sales and operations planning

Since we do not have past data we have to create it

Select umbrella

114

Click additional data

And go to consumption
Forecast = 5/15 4/16
Past data = 5/12 - 4/15 (since three years are required)

115

116

117

Go back with green arrow and then click the check mark to enter the forecast data

118

Click o characteristics

Calculate average production until end of the year: sum of sycronus production / months
If first month sales is higher then average production insert initial/opening stock level

119

Average production = 5160

Average production + on stock forecasted sales = Target stock level
If Sales exceeds average production + on stock -> increase production to required production.

120

Save planning

Independent demand

Deselect invisible transfer to see whats happening

121

Hit: transfer now

Push save

Leave to main menu

122

Select frame
Frame is empty as only umbrella demand has bee calculated. It will be done by MRP planning

123

124

Press enter

125

126

Check same for frame difference is that we do not have independent demand but dependent
demand.

127

For the Stick there is only one line since it is consumption based

128

Select right plant and hit process button.

Type all information about the vendors

129

Select vendor and material

Enter 30/60/90 days

130

o/n = order number

131

Go to conditions

132

Repeat for all materials

133

134

135

Process
Select handle and push assign automatically
Then select all that is provided by V1 and push assign automatically (Except cover since it is provided
by both vendors)

136

Click on assignments

137

Click into first field (=v1) and the process assignment

Shrink enjoy and click on header

138

139

140

Press enter
If a line is blocked close the detailed data on bottom of the screen and it can be selected again

141

Press save button and repeat for vendor two

Press save
142

143

Session 5 16 May 2015

144

145

146

147

Position order in time CHECK!

Click material

148

If Total Qty is increased by one piece:

Click missing parts list

149

Click capacity (should be available at all work centers)

Click on calculator sign (CTRL+F7)

150

Click GOTO -> COSTS -> Analysis

151

Press green flag button (CRTL + F1) to release the order

152

Click refresh button (F6) to update the order status

153

Change filter

154

Entire order as saved is being created

Open new session and go to:

155

Click SAP reference IMG

Click on watch symbol a Define Order Types

156

The screen shows one der type per schedule (mine marked)

157

If we want to perform availability checks:

158

159

Go to define checking control

160

161

If nothing is show click on Select Layout (CTRL + F9)

Select cost trends

Select and deselect in the (rubic cube) Menu to change layout of the report

162

163

164

165

166

167

Where do materials come from and go to: (the following postings show the arrows between the red
boxes and the Production Order arrow in the following slide
Prod. Order / materials

400.000

Prod. Order / cost center

400.000
168

169

The double click costing sheet

Select your palnt

170

Double click Costing sheet rows

Select row with base and double click base

171

Confirm with enter

Debit:
Prod. Order / material

400000

Prod. Order / cost ctr

640100

Prod. Order / sto

620100

Prod. Order / PP

620100

Credit production order with SUM of all costs

Materials / production order SUM(All orders above)
The stick enters the production of the umbrella as a resource at the first settlement above and at the
end, the umbrella will be booked against finished goods.

172

173

Production Orders

MRP/Evaluation/Stock req list(8.1)

-

Check order (8.2)

Order release (8.4.1)

Shop floor control/ goods movement / goods issue (8.4.2)

-

Order confirmation (8.4.3)

Goods receipt (8.4.4)

period end closing / overhead calc. act cost (8.4.5)

Period end closing/settlement (8.4.6)

174

175

176

Press save button

177

Check cost display has sth. Canged?

178

Goods movement posted has been added to the status

First posting in actual costs has been done (goods issues 2490)

179

Order confirmation

Select order

180

181

182

Second line has been added

183

Press save

184

Deselect all
Only select plant stock

185

It is logistically finished but not yet commercially booked

186

Calculate overhead costs for the stick which have not yet assign

187

188

189

Overheads have been added:

190

Deselect test run and hit process button

191

192

Moving average price has been adjusted

193

Practical exam
1. Produce frame completely
2. Check that we have the frame in stock correctly valued
3. Entirely finish frame before producing umbrella
4.

Case study
Pael ad switc ave BOM ?all other? items purchased.
Three capacities are required for the machines.
EPROM ASSM SMD are tree individual cost centers
4.2.

Software to be created as a raw material

EPROM-loader: Is written down only once due to the similarity of te three different
Only Mounting components has to be adjusted.

Suggested solving of case study:

1.
2.
3.
4.
5.
6.

Cost accounting
Material creation (after this vendors and info records can already be created)
BOM
Work centers
Routings
Plant order for ATC system

Customizing is required before the MRP run

7. MRP
8. Purchasing until goods received
9. production

194