Orange County Convention Center

Orlando, Florida | May 15-18, 2011

Stock in Transit@Company XYZ and new

features available with ERP 6.0 EHP5 ]
Uwe Pfisterer

Solution Manager

SAP AG
Agenda

Introduction Stock in Transit

New Features & Scenarios in Logistics

New Features & Scenarios in Accounting

Demo

Customer Examples

2011 SAP AG. All rights reserved. Confidential 2

Stock Transport Processes

Company Code Stock Transport

Plant

2011 SAP AG. All rights reserved. Confidential 3

Existing Stock Transport Options in SAP ERP

Intra-Company Code Cross-Company Code

STO w/o Shipping STO with Shipping STO with Shipping+Invoice

1-Step 2-Step 1-Step 2-Step 1-Step 2-Step

UB UB UB NB NB
Order
Type

Movmt GI: 351 GI: 647+101 GI: 641 GI: 645+101 GI: 643
Type GR: 101 GR: 101 GR: 101

Delivery NL NL NLCC NLCC

Type

Stock Stock in Stock in Dynamically

after GI transit transit calculated
(MARC-TRAME) (MARC-TRAME) SIT

2011 SAP AG. All rights reserved. Confidential 4

Stock Transport in the
Traders and Schedulers Workbench (TSW)
What is it ?

Available in industry
solution Oil&Gas or with
ERP 6.0 EHP5 (Business
Function LOG_TSW_ECC)

Separate Pricing

New Master Data object

is used to depict stock in-
transit Transport System
(TS)

Each Transport System

has exactly one SAP plant
underneath it.

2011 SAP AG. All rights reserved. Confidential 5

New Features & Scenarios in
Logistics

2011 SAP AG. All rights reserved. Confidential 6

 Features & Functions of the new SIT Concept
in a nutshell
With enhancement pack 5 of ERP 6.0 SAP
provides an integrated solution to the process
consisting of
Company
Logistics Company
A B
Introducing a valuated stock in transit that either belongs Valuated
to the sending or the receiving plant stock in transit

New order types and movement types and configuration

to support the process
Ability to use this new concept either for cross-company
processes or intra-company code processes

Accounting
Enhancements in actual costing to connect the value
chain across company codes
Inclusion of intra-company profits (or mark-up) into the
cost components
Group actual costing parallel to the legal view

2011 SAP AG. All rights reserved. Confidential 7

New in EHP5:
New Concept for Stock In-Transit (SIT)

Outbound
Delivery
Purchase
Order New in
Sender Receiver
EHP5!
In plant In transit In transit In plant

Senders Receivers
0 Stock Stock Immediate Transfer
(1-step scenario)

Senders Senders Receivers

1 Stock Transit Stock Stock
Goods stay in senders
ownership during transfer

Ownership changes
Senders Senders Receivers Receivers during the transfer, e.g.
2 Stock Transit Stock Transit Stock Stock upon arrival in the port
of destination

Senders Receivers Receivers Ownership changes

3 Stock Transit Stock Stock when leaving the sender

2011 SAP AG. All rights reserved. Confidential 8

 Stock in Transit for Sales Processes

Sales Order

Outbound Purchase
Delivery Order
Sender Company Code External Customer

In plant In transit Delivery address

687 601 T Goods stay in senders

4 Senders
Stock
Senders
Transit Stock
Customer ownership and control
during transfer to an
external customer
Returning goods are in
Senders Senders Rejected or senders ownership and
r4 Stock Transit Stock not Customer
control and will keep the
delivered original values
688

The enhancement helps also in business with external customers to keep

sold goods in the books until they are finally arrived at the customers and
keep control over returns

2011 SAP AG. All rights reserved. Confidential 9

New Features & Scenarios in
Accounting

2011 SAP AG. All rights reserved. Confidential 10

Motivation

Issue Requirement
The enhanced Solution shall keep the
Actual costing provides no visibility into cost transparency through intra-
cost structure after inter-company sales company sales and add freight
costs and intracompany profits to
the costs from the selling company
code from a group point of view

Group
Company Company
A B

Costs Costs
Raw Mat. 20 Raw Mat. 100
Energy 25 Energy 0
Sales process
Labour 15 Labour 0
Production 40 Production 0

2011 SAP AG. All rights reserved. Confidential 11

 Sales Process
without enhanced Cross-Company Actual Costing
Before the enhancement, a sales process does not transmit the internal cost
knowledge from a vendor to a purchaser. At the receiver the goods appear as
purchased raw materials.

Regional
Plant Group Sales Customer
Marketing Org

Costs Costs Costs Revenues

Raw Mat. Raw Mat. Raw Mat. Costs
Energy Energy Energy Raw Mat.
Labour Labour Labour Energy
Production Production Production Labour
Maintenance Maintenance Maintenance Production
Freight Freight Freight Maintenance
Marketing Marketing Marketing Freight
Duties Duties Duties Marketing
Intercompany profit Intercompany profit Intercompany profit Duties
Sales Costs Sales Costs Sales Costs Intercompany profit
Sales Costs
Profit

In SAP standard an internal sales process cuts the value flow for
actal costs. Costs will only be transparent for the last step in
the chain. Costs from previous steps will appear as raw
material costs only

2011 SAP AG. All rights reserved. Confidential 12

 Sales Process
with enhanced Cross-Company Actual Costing
After the enhancement, the full cost information is collected along the group-
internal supply chain and can be compared with the revenues achieved.

Regional
Plant Group Sales Customer
Marketing Org

Costs Costs Costs Revenues

Raw Mat. Raw Mat. Raw Mat. Costs
Energy Energy Energy Energy
Labour Labour Labour Labour
Production Production Production Production
Maintenance Maintenance Maintenance Maintenance
Freight Freight Freight Freight
Marketing Marketing Marketing Marketing
Duties Duties Duties Duties
Intercompany profit Intercompany profit Plant Intercompany profit Plant Intercompany profit Plant
Sales Costs Sales Costs Sales Costs Sales Costs
Intercompany profit Marketing Intercompany profit Marketing

Profit

Profitability Analysis will make cost and profit contributions from

the whole chain transparent.
Actual costs of the month in production, marketing and sales will
be compared with actual revenues
2011 SAP AG. All rights reserved. Confidential 13
Demo

2011 SAP AG. All rights reserved. Confidential 14

Planned for EHP5:
3 New Possibilities to transfer Material
Company Code 1000 Company Code 0001
Plant 1000 Plant 0001

Demo
Create Outbound Delivery Create Purchase Order
(From Plant 1000 to 0001)

Perform Goods Receipt with

Perform Goods Issue In-Transit Stock
1 (VL02N: 681)
reference to Outbound Delivery
(VLPOD: 685 + 101)

Perform POD
(VLPOD: 685 + 107)

Perform Goods Receipt with

Perform Goods Issue In-Transit Stock In-Transit Stock
2 (VL02N: 681) (Plant 1000) (Plant 0001)
reference to Outbound Delivery
(MIGO: 109)

Perform Goods Receipt with

Perform Goods Issue In-Transit Stock
3 (VL02N: 683 + 107)
reference to Outbound Delivery
(MIGO: 109)

Create Billing document Create Invoice

(with ref. to outb. delivery) (automatically or manually)

2011 SAP AG. All rights reserved. Confidential 15

Planned for EHP5:
3 New Possibilities to transfer Material
Company Code 1000 Company Code 0001
Plant 1000 Plant 0001

Demo
Create Outbound Delivery Create Purchase Order
(From Plant 1000 to 0001)

Perform Goods Receipt with

Perform Goods Issue In-Transit Stock
1 (VL02N: 681)
reference to Outbound Delivery
(VLPOD: 685 + 101)

Perform POD
(VLPOD: 685 + 107)

Perform Goods Receipt with

Perform Goods Issue In-Transit Stock In-Transit Stock
2 (VL02N: 681) (Plant 1000) (Plant 0001)
reference to Outbound Delivery
(MIGO: 109)

Perform Goods Receipt with

Perform Goods Issue In-Transit Stock
3 (VL02N: 683 + 107)
reference to Outbound Delivery
(MIGO: 109)

Create Billing document Create Invoice

(with ref. to outb. delivery) (automatically or manually)

2011 SAP AG. All rights reserved. Confidential 16

Customer Examples

2011 SAP AG. All rights reserved. Confidential 17

Sales Process@HighTech Company X

2011 SAP AG. All rights reserved. Confidential 18

Sales Proces@High Tech Company X

ERP 6.0 [Company X] Customer

Create Sales Order Create Purchase Order

Create Outbound Delivery

Perform Goods Issue In-Transit Stock Perform Goods Receipt +

(VL02N: 687) send Proof of Delivery

Maintain Proof of Delivery

(VLPOD: Goods Issue 601)

Create Billing document Receive Invoice

2011 SAP AG. All rights reserved. Confidential 19

 Stock & Title Transfer@Trading Company Z

Plant 0002 Plant 0001

Create Outbound Delivery Create STO Purchase Order

SPED
Inbound Delivery

Perform Goods Receipt with

1
TTO
Perform Goods Issue
(VL02N)
In-Transit Stock
reference to Inbound Delivery
(VL32N or MIGO)

Inbound Delivery

Perform POD (VLPOD):

SPED - Title Transfer
Update inbound delivery
- Movements

2 Perform Goods Receipt with

TTD Perform Goods Issue In-Transit Stock In-Transit Stock
reference to Inbound Delivery
TTI (VL02N) (Plant 0002) (Plant 0001)
(VL32N or MIGO)

Create Billing document Create Invoice

(with ref. to outb. delivery) (automatically via EDI)

2011 SAP AG. All rights reserved. Confidential 20

Procurement@Automotive Company Y

External Vendor ERP 6.0 [Company Y]

Sales Order Purchase Order

Outbound Delivery / ASN DESADV idoc Inbound Delivery

User-Exit: Post Goods Receipt

107 in Background

In-Transit Stock

Goods Receipt with reference

to Inbound Delivery (109) with
VL32N

2011 SAP AG. All rights reserved. Confidential 21

Project Stock Transfer@Engineering Company V

2011 SAP AG. All rights reserved. Confidential 22

 Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education in this area of focus, visit

SESSION CODE: 4111

INSERT SESSION CODE
www.asug.com.
]
2011 SAP AG. All rights reserved. Confidential 23
Appendix
 Valuation View: Group Valuation

Group Valuation
In group view the transfer is valuated like a plant-to-plant transfer. The costs at the receiver will
reflect the costs at the sender plant
No Intracompany Profit is shown. The PO and invoice values play no role for material valuation
Freight costs and other planned delivery costs will be added at the receiver
Cost information from the sender will be kept
Note: Internal invoice needs to be created via EDI-interface and not manually in MIRO

Plant 1 Plant 2 After period end, price differences

Total cost 1000 Total cost 1100
from the sending plant will be
transferred to the receiving plant in
Materials 500 transfer Materials 500
multi-level settlement, only in group
Labor 400 Labor 400
valuation
Overhead 100 Overhead 100
Freight Freight 100
Intrac Profit 0 Intrac Profit 0
Freight
invoice
Shipper 100,-

2011 SAP AG. All rights reserved. Confidential 25

 Valuation View: Legal Valuation

Company Code Valuation (legal valuation)

In legal view the transfer is valuated like a sales process. The costs at the receiver will reflect the PO value
initially and finally the invoice value
The difference between the cost at the sender site and the invoiced price is shown as a mark-up or intra-
company profit within the cost components*
Freight costs and other planned delivery costs will be added at the receiver
Cost information from the sender will be collapsed (Option 1)
It can be chosen in configuration to transmit all cost split information from sender to receiver and keep them in
the receivers cost component split (Option 2)

Invoice Option 1 Option 2

1100,-
Plant 1 Plant 2 Plant 2
Total cost 1000 Total cost 1100 Total cost 1100
Materials 500 Sold to Materials 1100 Materials 600
Labor 400 Labor 0 Labor 400
Overhead 100 Overhead 0 Overhead 100
Intrac Profit 0 Intrac Profit 100 Intrac Profit 100

* Via a BADI implementation it can be achieved to split markups (e.g.

2011 SAP AG. All rights reserved. into contributions from different parts of the organization )
Confidential 26
BAdI: Control of Cross-Company Code Transfers

ROLLUP_COST_COMP_SPLIT
Using this method you can control that the cost
component split is also transferred cross-company
code in the legal view.
REVAL_MARKUP_AT_ACTUAL_COSTS
Using this method you can control that the
intercompany profit is calculated on the plan costs
of the sender and not using the actual costs.
DISPLAY_COST_COMPONENTS
Using this method you can control in Material Price
Analysis (CKM3) that all cost components not
relevant to inventory valuation are displayed (and
not just the cost component for the intercompany
profit).
GET_MARKUP_COMPONENT
Using this method you can control that the
intercompany profit is assigned to any cost
component not relevant to inventory.
MODIFY_MARKUP
With this method, you can calculate the
intercompany profit in accordance with a separate
algorithm.

2011 SAP AG. All rights reserved. Confidential 27

Release Info

The enhancements in logistics and accounting are planned for ERP 6.0
enhancement pack 5 and included in the ERP user license.

In order to make use of the new functionality the business function

LOG_MM_SIT has to be activated in transaction SFW5.

2011 SAP AG. All rights reserved. Confidential 28

 2011 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any
purpose without the express permission of SAP AG. The information contained
herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain
proprietary software components of other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of
Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5,
System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries,
zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390
Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6,
POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes,
BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF,
Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere,
Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM
Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other
countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or
registered trademarks of Adobe Systems Incorporated in the United States and/or
other countries.
Oracle and Java are registered trademarks of Oracle and/or its affiliates.
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.
2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects
Explorer, StreamWork, and other SAP products and services mentioned herein as
well as their respective logos are trademarks or registered trademarks of SAP AG
in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective logos
are trademarks or registered trademarks of Business Objects Software Ltd.
Business Objects is an
SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other
Sybase products and services mentioned herein as well as their respective logos
are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP
company.
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.
The information in this document is proprietary to SAP. No part of this document
may be reproduced, copied, or transmitted in any form or for any purpose without
the express prior written permission of SAP AG.
Confidential 29