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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

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SAP Best Practices H84: MTS Production with Batch Management, WM and HUM

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SAP Best Practices H84: MTS Production with Batch Management, WM and HUM

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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SAP Best Practices H84: MTS Production with Batch Management, WM and HUM

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 = H84-
1070, 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, H84-
1020, 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 Value Description


Controlling area BP01 Best Practices
Company Code BP01 Company Code BP01
Plant BP01 Production Plant (Produktionswerk)
BP01
Sales organization BP01 Sales Org. BP01
Distribution channel 01 Direct Sales
Division 01 Product Division 01
Purchase organization BP01 Purchase Org. BP01
Storage location 0010 Standard stock
0003 finished product (unpacked)
0004 raw material ( without WM )
0002 production
0005 Lean WM
0006 Component FullWM
YD05 Handing unit with
Warehouses F01 Warehouse F01
L01 Warehouse L01 (Lean WM)
Material (finished good) H84-1000 Interface Card
Material (semifinished H84-1040 Circuit Board
goods)
Material (packaging H84-1080 Packing material for H84
material)
Vendor H8410 Vendor MTS 01
H8420 Vendor MTS 02
H8430 Vendor MTS 03
H8450 Vendor MTS 04
H8460 Vendor MTS 05
H8445 Vendor MTS 06
Customer H8440 Ship-to-party – Supply Area PROD_MTS

H8490 Customer MTS

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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 _SMB50_H84_05U.SAP
Management, WM and HUM

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 Edit Costing Run
Transaction code CK40N

2. On the Edit Costing Run screen, make the following entries.


Field name Description User action and values Comment
Costing run Key, which identifies Enter the costing run key
the costing run (for example, 01_2005)
Costing run date Current date
3. Choose Create Costing run (F5).
4. On the Create Costing Run screen, make the following entries:
Field name Description User action and values Comment
Costing run text Text, which Enter text describing costing run
identifies the key. (For example, costing run
costing run Jan. 2005, legal valuation)
Costing variant YPC1
Costing version 01
Controlling Area BP01
Company Code BP01
Transfer Control Adopted
automatically from
costing variant
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 Description User action and values Comment
Material Selection of H84-1000 If you have already created and
single released a cost estimate for one
materials or of these materials in the current
an interval of period, for example, while
materials 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 BP01
Select Do not set indicator
configured
materials
only
Always Do not set indicator
recost
material
Background Do not set indicator
processing
Print log 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 Description User action and values Comment
Background processing Do not set indicator
Print log Do not set indicator
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 Description User action and values Comment
Cost ests with errors only Set the indicator if you Do not set indicator
have already executed
the costing run once
and now want to rerun
only those cost
estimates with errors
Log per costing level Set the indicator to Do not set indicator
generate a separate
log for each costing
level.
Parallel processing Do not set indicator
Background processing Do not set indicator
Print log 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 Description User action and values Comment
Variant The program provides Select SAP&11 and choose
catalog for different list variants Enter.
program for the analysis
RKKBKAL2
Costing run Select your costing run
Costing date 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 Description User action and values Comment
Posting Period (current period)
Fiscal Year (current year)
29. Choose Enter.
30. Double click the company code BP01, and select the costing variant YPC1.
31. Save your entries.
32. Choose Enter and then choose Back.
33. 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 Description User action and values Comment


Test run Set this flag if you first Do not set indicator
want to have a test of
the marking without
change any thing in
the material master
With list output Set indicator
Parallel processing Do not set indicator
Background processing 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 Description User action and values Comment
Test Run Set this flag if you first Do not set indicator
want to have a test of
the marking without
change any thing in
the material master
With list output Set indicator
Parallel processing Do not set indicator
Background processing 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 Create Sales Order


Transaction code VA01
2. On the Create Sales Order: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Order Type OR
Sales Organization BP01
Distribution Channel 01
Division 01
3. Confirm your entries with Enter.
4. On the Create Standard Order: Overview screen, make the following entries:
Field name Description User Action and Values Comment
Sold-to party H8490
Purch. order no. MTS enhancement Customer order number
Material H84-1000 In the Items table
Order quantity 50 In the Items table
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 Display Stock/Requirements Situation
Transaction code MD04
2. Enter the following data:
User Action
Field name Description Comment
and Values

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Material H84-1000
Plant 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 MRP – Single-item, Multi-level -
Transaction code MD02

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


Field name Description User Action and Values Comment
Material H84-1000
Plant BP01
Scope of planning
Product
group
MRP control parameters
Processing NETCH
key
Create 1 (Purchase requisitions)
purchase
req.
Delivery 3 (Schedule lines)
schedules
Create MRP 1 (MRP list)
list
Planning 3 (Delete and recreate
mode planning data)
Scheduling 2 (Lead time scheduling
and capacity planning)
Process control parameters
Also plan Ω (remove indicator)
unchanged
components
Display Ω (remove indicator)
results before
they are
saved
Display Ω (remove indicator)
material list
Simulation Ω (remove indicator)
mode
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 MRP – Single-item, Multi-level -
Transaction code MD02
2. On the Single-Item, Multi-Level screen, enter the following data.
Field name Description User Action and Values Comments
Material H84-1010 and H84-1020 separately
Plant BP01
Scope of planning
Product group
MRP control parameters
Processing key NETCH
Create purchase 1 (Purchase requisitions)
req.
Delivery schedules 3 (Schedule lines)
Create MRP list 1 (MRP list)
Planning mode 3 (Delete and recreate planning data)
Scheduling 2 (Lead time scheduling and capacity
planning)
Process control parameters
Also plan Ω (remove indicator)
unchanged
components
Display results Ω (remove indicator)
before they are
saved
Display material list Ω (remove indicator)
Simulation mode 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 Display Stock/Requirements Situation
Transaction code MD04
2. On the Stock/Requirements List: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Material H84-1010
Plant BP01
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 MRP-
Element 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, H84-
1047, H84-1048 and H84-1050.

H84-1020

Note the number of the purchase order for material H84-


1020:____________________________

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 Purchase Orders by Material
Transaction code ME2M
2. On the Purchasing Documents for Material Screen, enter the following data:
Field name Description User Action and Values Comment
Material H84-1030
Plant BP01
Purchasing Organization BP01
Scope of List BEST
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 Display Stock/Requirements Situation
Transaction code MD04
2. On the Stock/Requirements List: Initial Screen, enter the following data:
Field name Description User Action and Values Comment
Material H84-1060
Plant BP01
3. Confirm your entries with Enter.
4. Note the number of the MRP element SchLne ________________.
5. Double-click the MRP element SchLne with the number noted above.
6. 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 H84-
1060. 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 Post Goods Receipt for PO
Transaction code MB01
2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Movement Goods receipt
101
Type
Number of the purchase order
Purchase
xxxxxxxxxx for the material
Order
H84-1040 as noted above
Plant BP01
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 Description User Action and Values Comment
Indicates that you
OK want to post the goods Set indicator
movement for this item
Stor.Loc. Storage location 0004
4. Confirm your entries with Enter.
5. Save your entries and confirm any warning messages with Enter.
6. Repeat steps 1 – 5 for material H84-1020, and execute the following procedure in addition:
7. Confirm the pop-up window with Automatic batch number allocation information with Enter.
8. On the Goods Receipt for Purchase Order: Classification screen, make the following entry:
Field name Description User Action and Values Comment
Posting date GR posting date Enter goods arrival date
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 Post Goods Receipt for PO
Transaction code MB01
2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Purchasing Number of the purchase
Document Number xxxxxxxxxx order for material H84-
1045 as noted above
Movement Goods receipt
101
Type
Plant BP01
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 Description User Action and Values Comment
Indicates that you
OK want to post the goods Set indicator
movement for this item
Stor.Loc. Storage location 0006

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 Description User Action and Values Comment
Enter goods arrival date, for
Posting date GR posting date
example the current date

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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 Stock Overview
Transaction code MMBE
10. On the Stock overview: company code/plant/storage location/batch, make the following
entries:
Field name Description User Action and Values Comment
Material H84-1045
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 Display Quants for Material
Transaction code LS24
13. On Stock per material screen, make the following entries:
Field name Description User Action and Values Comment
Warehouse No. F01
Material H84-1045
Plant BP01
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 TRs for Material
Transaction code LB11
15. On the display transfer requirement : list for materials screen make the following entries:
Field name Description User Action and Values Comment
Warehouse Number Warehouse Number F01
Material material H84-1045
Plant BP01
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 Description User Action and Values Comment
Storage Unit In the area Palletization at the
E1
Type 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 Description User Action and Values Comment
Storage Unit
E1
Type
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 Stock Overview
Transaction code MMBE
24. On the Stock overview : company code/plant/storage location/batch screen, make the
following entries:
Field name Description User Action and Values Comment
Material H84-1045
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 Display Quants for Material
Transaction code LS24
26. On the Stock per material screen, make the following entries:
Field name Description User Action and Values Comment
Warehouse No. F01
Material H84-1045
Plant BP01
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 Create Inbound Delivery (Lean WM)
Transaction code VL31N
2. On the Create inbound delivery screen, make the following entries:
Field name Description User Action and Values Comment
Vendor H8445
Number of the purchase
Purchase Order xxxxxxxxxx order for material H84-1046
as noted above
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 Create TO for Inbound Delivery
Transaction code LT0F
6. On the Create inbound delivery screen, make the following entries:
Field name Description User Action and Values Comment
Warehouse No. L01
Inbound delivery The no. you noted before
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 Change Inbound Delivery
Transaction code 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 Post Goods Receipt for PO

Transaction code MB01

2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Movement
101
Type
Purchase <Your purchase order for
Order H84-1030>
Plant BP01
Storage
0004
Location
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 Description User Action and Values Comment
MPN material Identifies the H84-1031 or H84-1032
manufacturer part
6. Confirm your entries with Enter.
7. On the Confirm receipt of certificate dialog screen, choose Yes.
8. On the Automatic Batch number Allocation screen, choose Yes.
9. On the Goods Receipt for Purchase Order: Classification screen, make the following entries:
Field name Description User Action and Values Comment
Manufacturer Part The same as step 5
Number
Data Code Manufacturer <Any Entry>
Batch
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 Display Stock/Requirements Situation
Transaction code MD04
2. On the Stock/Requirements List: Initial Screen, enter the following data:
Field name Description User Action and Values Comment
Material H84-1000
Plant BP01
3. Confirm your entries with Enter.
4. Double-click the first planned order; choose Convert planned order to production order.
5. Choose Save. The converted order number is displayed at the bottom of the screen.
6. 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 Display Production Order

Transaction code CO03


2. On the Production Order Display: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Your Production Order Number
Order
for material H84-1000
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 Original Quantities Reqmts. Quantities
H84-1000 (5% assembly scrap) 50 53
H84-1010 (2% operation scrap with net ID) 200 204
H84-1020 50 53
H84-1030 (10% component scrap) 50 59
H84-1040 50 53
H84-1050 50 53
H84-1060 750 795
H84-1070 5L 5,3 L

In the stock/requirements list you do not find any requirements for bulk material H84-
1070 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 Release Production Orders
Transaction code CO05N

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


Field name Description User Action and Values Comment
List Order Headers
Selection
In this step the production order
Material H84-1040 for component H84-1040 is
selected and released.

Order type YHM2


Select. at operation level
Plant BP01
Sys. Status CRTD
3. On the Mass processing -Release tab in the Function parameter area, select Order release.
4. Confirm your entries with ENTER and choose Execute (F8) to execute the report.
5. Make a note of the total order quantity: ________________________.
6. 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 Display Production Order
Transaction code CO03
2. On the Production Order: Initial screen, enter the following data:
Field name Description User Action and Values Comment
Order number of the Enter your order number for
Production order production order to material H84-1040
be picked
3. Choose Header.
4. On the Production Order Header screen, choose from the menu Goto  WM picklist.
5. Choose Display in the WM mat. provision dialog windows.
6. 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 Confirm Transfer Order Item
Transaction code 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 Display Outbound Delivery
Transaction code VL03N
15. On the Display Out bound Delivery screen, make the following entries:
Field name Description User Action and Values Comment
OutboundDelivery Number of WM/PP delivery
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 Stock Overview
Transaction code MMBE
18. On the Stock Overview: Company Code/Plant/Storage Location/Batch screen, make the
following entries:
Field name Description User Action and Values Comment
Material H84-1045
19. Choose Execute (F8). All inventory stock is displayed.
20. Access the activity using one of the following navigation options:
SAP role menu Display Quants for Material
Transaction code LS24
21. On the Stock per material screen, make the following entries:
Field name Description User Action and Values Comment
Warehouse F01

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No.
Material H84-1045
Plant 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 Display Production Order
Transaction code CO03
2. On the Production Order Display: Initial screen, enter the following data:
Field name Description User Action and Values Comment
Order number of the Enter your order number for
Production order production order to material H84-1040
be picked
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 H84-
1047 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 WM staging of crate parts
Transaction code LP11
6. Enter the following data on the WM Staging of Crate Parts screen:
Field name Description User Action and Values Comment
Material H84-1047
Plant BP01
Supply area PROD_MTS
Set the indicator for automatic TO
TO creation creation immediately after TR
creation
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 Display Transfer Order / Material
Transaction code LT24
12. On the Transfer Orders for Material screen, make the following entries:

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Field name Description User Action and Values Comment


Warehouse F01
Material H84-1047
Confirm status Only open TO items
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 Confirm Transfer Order Item
Transaction code 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 Stock Overview
Transaction code MMBE
17. On the Stock overview: company code/plant/storage location/batch screen, make the
following entries:
Field name Description User Action and Values Comment
Material H84-1047
18. Choose Execute (F8). All inventory stock is displayed.
19. Access the activity using one of the following navigation options:
SAP role menu Display Quants for Material
Transaction code LS24
20. On the Stock per material screen, make the following entries:
Field name Description User Action and Values Comment
Warehouse
F01
No.
Material H84-1047
Plant BP01
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 Display Production Order
Transaction code CO03
On the Production Order: Initial screen, enter the following data:
Field name Description User Action and Values Comment
Production Order number of the Enter your order number for
order production order to be picked material H84-1040
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 Staging release order parts (WM-PP)
Transaction code LP12

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7. On the WM Material Staging of Release Order Parts screen,


make the following entries:
Field name Description User Action and Values Comment
Plant BP01
Supply area PROD_MTS
Material H84-1048
Flag for Automatic TO
TO creation creation immediately after
TR creation
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 Display Transfer Order / Material
Transaction code LT24
14. On the Transfer Orders for Material screen, make the following
entries:
Field name Description User Action and Values Comment
Warehouse F01
Material H84-1048
Confirm status Only open TO items
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 Confirm Transfer Order Item
Transaction code 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. Access the activity using one of the following navigation options:
SAP role menu Stock Overview
Transaction code MMBE
19. On the Stock overview: company code/plant/storage
location/batch screen, make the following entries:
Field name Description User Action and Values Comment
Material H84-1048
20. Choose Execute (F8). All inventory stock is displayed.
21. Access the activity using one of the following navigation options:
SAP role menu Display Quants for Material
Transaction code LS24
22. On the Stock per material screen, make the following entries:
Field name Description User Action and Values Comment
Warehouse
F01
No.
Material H84-1048
Plant BP01
23. Choose Enter. All warehouse bin stock is displayed.

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 Single Screen Entry of Confirmations
Transaction code 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
Confirmation Bar code reader scan
the barcode scanner fails.
(Here, the process is run using
manual input of the order
number and operation number.)
The order number you
Order
noted for H84-1040
Oper./activity 0010
Confirm. type 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 Single Screen Entry of Confirmations
Transaction code CO11N
2. On the Enter time ticket for production order screen, make the following entries:
Field name Description User Action and Values Comment
The order no. you noted
Order
for the material H84-1040
Oper./activity 0020
Confirm. type Partial confirmation Important
3. Confirm your entries with Enter.
4. In the Scrap field, enter the scrap quantity 5, and choose Enter.
5. Choose Save.
6. Confirm the dialog box Trigger point function with Enter.
7. Choose Copy (F7) on the Assign Operation/Sub operation Numbers screen.
8. Confirm the dialog box Trigger point function with Enter.
9. Go back to your user menu.
10. Display the production order. To do so, access the activity using one of the following
navigation options:
SAP role menu Display Production Order
Transaction code 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 Description User Action and Values Comment


Material H84-1020
Quantity 5 PC
Plant BP01
Stor. Loc. storage location 0004
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 Display Stock/Requirement Situation

Transaction code MD04


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

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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 Description User Action and Values Comment
Material H84-1000
Plant BP01
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 MRP – Single-item, Multi-level -
Transaction code MD02
8. On the Single-Item, Multi-Level screen, enter the following data:
Field name Description User Action and Values Comments
Material H84-1070
Plant BP01
Scope of planning
Product group
MRP control parameters
Processing key NETCH
Create purchase req. 1 (Purchase requisitions)
Delivery schedules 3 (Schedule lines)
Create MRP list 1 (MRP list)
Planning mode 3 (Delete and recreate
planning data)
Scheduling 2 (Lead time scheduling
and capacity planning)
Process control parameters
Also plan unchanged Ω (remove indicator)
components
Display results before they are Ω (remove indicator)
saved
Display material list Ω (remove indicator)
Simulation mode Ω (remove indicator)

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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 Other Goods Receipts
Transaction code MB1C
14. On the Enter Other Goods Receipts: Initial Screen, enter the following data:
Field name Description User Action and Values Comment
Movement type 561
Plant BP01
Storage location 0004
15. Choose Enter.
16. On the screen Enter Other Goods Receipts: New Items, enter the following data:
Field name Description User Action and Values Comment
Material H84-1070
Quantity 100
17. Choose Save. The material document is posted.
18. Access the activity using one of the following navigation options:
SAP role menu Goods Withdrawal
Transaction code MB1A
19. On the Enter Other Goods Issue: Initial Screen, enter the following data:
Field name Description User Action and Values Comment
Movement
201
type
Plant BP01
Storage
0004
location
20. Choose Enter.
21. On the Enter Goods Issue :New Items screen, enter the following data:
Field name Description User Action and Values Comment
Cost center 1301
Material H84-1070
Quantity 50
22. Choose Enter, and Save. The document is posted.
23. Access the activity using one of the following navigation options:
SAP role menu Display Production Order
Transaction code 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 Change Production Order

Transaction code CO02


2. Enter the following data:
Field name Description User Action and Values Comment
Your production order number for the
Order
header material H83-1000
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 H83-
1050.

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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 Post Goods Receipt for PO

Transaction code MB01


2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries:
Field name Description User Action and Values Comment
Movement Type 101
Purchase Order <Your purchase order for H83-1050>
Plant BP01
Storage Location 0004
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 WF-
BP01 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 Release Production Orders
Transaction code CO05N
2. On the Release Production Orders screen, enter the following data:
Field name Description User Action and Values Comment
List Order Headers
Selection tab page
In this step the production order
Material H84-1000 for the finished product H84-
1000 is selected and released.

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Order type YHM2


Select. at operation level
Plant BP01
Sys. Status CRTD
3. On the Mass processing -Release tab in the Function parameter area, select Order release.
4. Confirm your entries with Enter and choose Execute (F8) to execute the report.
5. Make a note of the total order quantity: ________________________.
6. 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 Picking list
Transaction code CO27
2. On the Picking List: Initial screen, make the following entries:
Field name Description User Action and Values Comment
Profile Standard picking profile 000002
Order number of the Enter your order number for
Production order production order to be the material H84-1000.
picked

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 Single Screen Entry of Confirmations


Transaction code 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
conformation number manually
Confirmation Bar code reader scan
if the barcode scanner fails.
(Here, the process is run using
manual input of the order
number and operation number.)
The order number you
Order
noted for H84-1000
Oper./activity 0010
Confirm. type 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 Other Goods Receipts

Transaction code MB1C

2. On the Enter Other Goods Receipts: Initial screen, make the following entries:
Field Name Description User Action and Values Comment
Movement type 561
Plant BP01
Storage location 0010
3. Confirm your entries with Enter.
4. On the Enter Other Goods Receipt: New Items screen, make the following entries:
Field name Description User action and values Comment
Material H84-1080
Quantity 100
5. Confirm your entries with Enter.
6. Confirm the system message with Enter.
7. On the Enter Other Goods Receipts: Collective Processing screen, choose Save.
8. 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 Packing in production orders

Transaction code COWBPACK

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


Storage GR must be posted in the HU
YD05
Location storage location YD05
Ship-to party H8490
You can create several HUs
Quantity to The quantity you for a production lot, for
be packed confirmed before 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 Packing Station

Transaction code HUPAST

3. On the Packing Station: Initial Screen, make the following entries:


Field name Description User Action and Values Comment
Packing Station YH_MTS_FREE_PACKING
4. Choose Enter.

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5. On the Packing Station YH_MTS_FREE_PACKING screen, make the following entries:


Field name Description User Action and Values Comment
Material Number
H84-1000
(To be packed)
Choose Enter
Enter the lowest batch You can find the lowest batch
number available in storage number in the stock overview
Batch number
location 0003 to use the (MMBE).
FIFO strategy
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 Sales Orders Due for Delivery
Transaction code VL10A
2. On the Sales Order, Fast Display screen, make the following entries:
Field name Description User Action and Values Comment
Shipping point /
BP01
Receiving Pt
Deliv. Creation date From current date to one month later
CalcRuleDefltDlvCrDt 2
3. Select the Sales orders tab page, and make the following entries:
Field name Description User Action and Values Comment
Sales document Sales order no.
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 Change Outbound Delivery
Transaction code VL02N
2. On the Change outbound delivery screen, maintain the following field and choose Enter:
Field name Description User Action and Values Comment
Outbound The delivery number you noted
delivery before
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 Document flow (F7). The HU number should be part
of the document flow.

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 Change Outbound Delivery
Transaction code VL02N
2. On the Change Outbound Delivery screen, maintain the following entries:
Field name Description User Action and Values Comment
Outbound The delivery number you
delivery noted before
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 Display Outbound Delivery
Transaction code VL03N
2. On the Display Outbound Delivery screen, enter the following data and confirm with Enter:
Field name Description User Action and Values Comment
Outbound Enter the number of the
Delivery outbound delivery

3. On the Overview screen, choose Document Flow (F7).


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 Create Billing Document
Transaction code VF01
2. On the Create Billing Document screen, make the following entries:
Field name Description User Action and Values Comment
Document Enter the delivery number you
noted earlier
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 Customer Line Items
Transaction code FBL5N
2. On the Customer Line Item Display screen, maintain the following fields:
Field name Description User Action and Values Comment
Customer account H8490
Company code BP01
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 Phases
Cost elements:
elements:
 Ind."Rel. to costing"  Gen. operation values
 Price Material costs  Standard values
 Control key: "Costing
Costs for external indicator"
procurement

Order type / Plant Production costs Resources


 Costing variant  Formula key for
Material overhead costing
costs  Cost center
Display planned / actual costs  Activity type
Production overhead  Formula constants
costs
Cost calculation
log
 Cost elements Costs for external
 Cost itemization processing
 Cost component split

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 Cost center
Formula Activity types Charge rates
F1 A USD 10/h
F2 B USD 20/h
. .
. .
. .
(Max. 6)

Example :

Formula F1 Rate for


activity type A
Operation qty Base output
x x Duration = Total time
USD 10/h
Base qty Res. output

 Standard values Total time x Charge rate = COSTS


 Operation values
 Resource
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 co-
products.
- 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

Own
Price Variance category ?
Planned
Price

Planned Quantity
Costs Variance

Quantity
Planned Actual
Quantity 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 Lot-size
of procurement
alternative Variance Quantity

Planned 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 Actual Reval.: PrCstCol. Ind.Pro.
Transaction code 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 Description User action and values Comment
Order Enter production order number
Period (current period)
Fiscal Year (current year)
Test Run Do not set indicator
Detail List Set indicator
4. Choose Execute.
5. Choose Back twice.
6. Access the activity using one of the following navigation options:
SAP role menu Act. Overhead: Int.Order Ind.Pro
Transaction code KGI2
7. On the Actual Overhead Calculation: Order screen, make the following entries:
Field name Description User action and values Comment
Order Order key Enter production order
number
Period (current period)
Fiscal Year (current year)
Test Run Do not set indicator
Dialog List Set indicator
8. Choose Execute.
9. Choose Back twice.
10. Confirm the dialog box.
11. Choose Back again.
12. Access the activity using one of the following navigation options:
SAP role menu WIP Calculation for Order
Transaction code KKAX

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13. On the Calculate Work in Process screen, make the following entries:
Field name Description User action and values Comment
Order Enter production order number
WIP to Period (current period)
Fiscal Year (current year)
All RA versions Do not set indicator
RA version 0
Background processing Do not set indicator
Test Run Do not set indicator
Log information messages Set indicator
Save log Set indicator
Display orders with errors Do not set indicator
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 Variances – Product Cost by Lot (I)
Transaction code KKS2
17. On the Variance Calculation: Initial screen, enter the following data:
Field name Description User action and values Comment
Order Enter production order number
Period (current period)
Fiscal Year (current year)
All target cost vrsn Set indicator Target versions
000, 001, 002
Test Run Do not set indicator
Detail List Set indicator
18. Choose Execute (F8).
19. Choose Back.

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SAP Best Practices H84: MTS Production with Batch Management, WM and HUM

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

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