Com 61 Se Common Data in Baan LN PDF

Common Data - SSA® ERP LN 6.
1
Student Manual and Exercises
SSA ERPLN 6.1.00
Common Data
Student Manual and Exercises
COM_61_SE Date (09/2004)

Copyright © 2004 by SSA Global Technologies, Inc.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any way
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SSA® ERPLN, Common Data, COM_61_SE, 09/2004
Copyright © 2004 SSA Global Technologies, Inc.
All rights reserved. Printed in the United States of America.
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• All other company, product, trade or service names referenced may be registered trademarks or trademarks of their
respective owners.
Contents
Contents........................................................................................iii
About this course........................................................................ ix
Course Goal....................................................................................................... x
Course Objectives.............................................................................................. x
Who Should Attend this Course........................................................................xii
Audience .......................................................................................................xii
Prerequisites .................................................................................................xii
Organization of Course Materials ....................................................................xiii
Lesson Objectives........................................................................................xiii
Lesson Materials ..........................................................................................xiii
Lesson Exercises .........................................................................................xiii
Flows............................................................................................................xiv
Icons Used Within this Course .....................................................................xiv
Navigation ........................................................................................................xvi
Menu Paths .................................................................................................xvii
Course Agenda .............................................................................................. xviii
Duration...................................................................................................... xviii
Course Introduction .................................................................. xix
Enterprise Structure Model ...................................................... 1-1
Enterprise Structure Model .............................................................................1-2
Company Structures ...................................................................................1-2
Enterprise Structure Model .........................................................................1-3
Enterprise Units and Entities.......................................................................1-7
Company Data ..............................................................................................1-15
iii
ERP LN 6.1.00 Common Data
Company Types ........................................................................................1-16

Defining Company Data ............................................................................1-18
Common Parameters ................................................................................1-29
Exercise: Verify the settings for the Common Parameters ....................1-34
Calendars and Periods .................................................................................1-36
Exercise: Create an Availability Type ....................................................1-40
Exercise: Define a Working Hour Type .................................................1-43
Exercise: Define Availability Types for Standard Calendar ...................1-47
Exercise: Define a Calendar Code ........................................................1-50
Addresses .....................................................................................................1-57
Lesson Review..............................................................................................1-66
Review Questions .........................................................................................1-67
Logistics Common Data ........................................................... 2-1
Number Groups, Series, and First Free Numbers ..........................................2-2
Definition..................................................................................................2-2
COM Parameters ........................................................................................2-3
Number Groups...........................................................................................2-3
First Free Numbers and Series ...................................................................2-5
Exercise: Define Series ...........................................................................2-8
Units and Base Units ....................................................................................2-10
Units ..........................................................................................................2-11
Unit Sets....................................................................................................2-13
Base Units.................................................................................................2-15
Units by Unit Sets......................................................................................2-17
Exercise: Create Units and Unit Sets ....................................................2-19
Item Groups ..................................................................................................2-22
Inventory Valuation Methods ........................................................................2-24
Exercise: Create an Item Group ............................................................2-26
Exercise: Determine the Inventory Valuation Method............................2-27
Entities ..........................................................................................................2-31
Departments..............................................................................................2-31
Exercise: Define Departments ...............................................................2-34
Warehouses ..............................................................................................2-36
Exercise: Create a Warehouse..............................................................2-39
Countries.......................................................................................................2-41
Languages ................................................................................................2-43
Lesson Review..............................................................................................2-44
Financial Master Data ............................................................... 3-1
Tax Codes.......................................................................................................3-2
Financial Tables..............................................................................................3-4
Credit Ratings .............................................................................................3-4
Currencies...................................................................................................3-7
Invoicing Methods .......................................................................................3-9
Define an Invoicing Method ...................................................................3-10
iv
Contents
Purchase Types ........................................................................................3-11

Sales Types ..............................................................................................3-12
Define a Sales Type ..............................................................................3-12
Financial Integrations....................................................................................3-13
Initialize Mapping Scheme Data................................................................3-13
Integration Document Types .....................................................................3-14
Reconciliation............................................................................................3-14
Lesson Review..............................................................................................3-16
Item Base Data........................................................................... 4-1
Conversion Factors.........................................................................................4-2
Exercise: Define a Conversion Factor .....................................................4-5
Item Default Data ............................................................................................4-7
General Item Data.........................................................................................4-13
Item Sub Entity Data .................................................................................4-19
Item Structures..............................................................................................4-37
Bills of Material..........................................................................................4-37
Routings ....................................................................................................4-39
Business Example .................................................................................4-42
Sub Entity Data......................................................................................4-50
Exercise: Define General Item Data ......................................................4-57
General Item Data for Item XX.FAB.0001 .............................................4-57
Sub Entity Data......................................................................................4-57
Sub Entity Data......................................................................................4-60
Exercise: Modify BOM for Item XX.SEAT..............................................4-62
Exercise: View the Routing for Item XX.SEAT ......................................4-62
Alternative Items ...........................................................................................4-63
Alternative Manufacturers .............................................................................4-67
Alternative Item Manufacturers .................................................................4-67
Unit Effectivity ...............................................................................................4-70
Effectivity Unit ...........................................................................................4-70
Lesson Review..............................................................................................4-72
Cost Price Calculation .............................................................. 5-1
Cost Price Master Data...................................................................................5-4
CPR Parameters .........................................................................................5-5
Cost Components .......................................................................................5-7
Cost Component MC1 .............................................................................5-9
Cost Component CL1 ............................................................................5-10
Exercise: Define a Cost Component .....................................................5-11
First Cost Component............................................................................5-11
Operation Rate Codes ..............................................................................5-13
v
Exercise: Define an Operation Rate ......................................................5-16

Price Calculation Codes............................................................................5-17
Exercise: Define a new Price Calculation Code ....................................5-21
Cost Price Calculation Data ..........................................................................5-24
Operation Rates ........................................................................................5-25
Item Surcharges........................................................................................5-30
Simulate Purchase Prices .........................................................................5-38
Calculate Cost Prices....................................................................................5-41
Actualize the Cost Price ............................................................................5-45
Exercise: View the Current Cost Price for an Item ................................5-47
Exercise: Define an Operation Rate ......................................................5-47
Exercise: Link Operation Rate Code to a Work Center .........................5-49
Exercise: Calculate Cost Price ..............................................................5-50
Exercise: View New Cost Price Structure..............................................5-51
Exercise: View Cost Price Details .........................................................5-52
Print Multi-level Cost Price Calculation .....................................................5-53
Lesson Review..............................................................................................5-57
Business Partners..................................................................... 6-1
Business Partners...........................................................................................6-3
Business Partner Types ..............................................................................6-3
Business Example ...................................................................................6-5
Exercise: Identify the Business Partner Type ..........................................6-5
Business Partner Roles.............................................................................6-10
Exercise: Define Business Partners ......................................................6-17
Lesson Review..............................................................................................6-20
People......................................................................................... 7-1
People Master Data ........................................................................................7-2
Employee Dashboard..................................................................................7-2
People Parameters .....................................................................................7-5
Employees – General..................................................................................7-7
Employees – People ...................................................................................7-9
User Profiles..............................................................................................7-12
Teams .......................................................................................................7-14
Roles .........................................................................................................7-17
Skills..........................................................................................................7-19
Labor Types ..............................................................................................7-20
Labor Rate Codes .....................................................................................7-21
General Tasks...........................................................................................7-22
Working Time Schedules ..........................................................................7-24
Assignments..............................................................................................7-27
vi
Contents
Exercise: Define an Employee ..............................................................7-32

Exercise: Define a General Task ...........................................................7-34
Exercise: Create an Assignment ...........................................................7-35
Hours Entry ...................................................................................................7-37
Global Registration of Hours .....................................................................7-42
Exercise: Enter Hours for Employee .....................................................7-44
Alternative Hours Entry Methods ..............................................................7-44
Exercise: Define a Team .......................................................................7-49
Exercise: Add Employees to Team .......................................................7-49
Exercise: Enter Team Hours .................................................................7-49
Exercise: Distribute Team Hours ...........................................................7-50
Exercise: Record Hours with Use Assignments ....................................7-53
Exercise: View the Employee Assignment Hours..................................7-54
Approve and Process Hours .........................................................................7-60
Lesson Review..............................................................................................7-62
List of Flows
The Flow: Sample Flow ...................................................................................xiv
The Flow: Company Set up ..........................................................................1-18
The Flow: Calendars.....................................................................................1-37
The Flow: Number Groups and First Free Numbers.......................................2-2
The Flow: Units and Unit Sets ......................................................................2-11
The Flow: Routings .......................................................................................4-40
The Flow: Alternative Manufacturers ............................................................4-68
The Flow: Cost Price Calculation Master Data ...............................................5-5
The Flow: Cost Price Calculation..................................................................5-24
The Flow: Calculate Cost Prices...................................................................5-41
The Flow: Business Partners ..........................................................................6-2
The Flow: Business Partner Customer Roles ...............................................6-12
The Flow: Supplier Business Partner Roles .................................................6-14
The Flow: People Master Data Flow...............................................................7-4
The Flow: Team Hours .................................................................................7-45
vii
viii
About this course
Common Data covers the basic master data and base data required to set up
and operate a new company install. The Common Data course introduces the
basic concepts of how data is organized and entered in the Common Data
package. Common Data is used by the other packages and modules and forms
the foundation data used throughout ERP LN.
This section contains information that will help you use this course material
effectively both during training and as a performance tool after training.
This information includes:
Course Goal and Objectives
Who Should Attend this Course
Organization of Course Materials
Navigation
Course Agenda
Course Introduction
ix
Course Goal
The goal of this course is to enable you to enter and maintain the basic Common
Data that is used and shared among the various modules and packages.
Course Objectives
After completing this course, you will be able to:
Define Entities to represent warehouses and departments
Create Enterprise Units to logically group entities.
Describe the Enterprise Structure Model and the purpose.
Describe the various Company types and their purpose.
Set up Company information for your company/companies
Create a new Address for the company.
Set up Unit Sets and Units
Create effectivity units.
Define Number groups and First Free Numbers.
Create Item Groups
Define departments and warehouses
Define Countries
Identify Languages available in the company
Define the available currencies used for your organization.
Create Credit Ratings that can be applied to Business Partners.
Identify Tax codes for the system
Define Credit Ratings
Define Invoicing Methods
Define Sales and Purchase Types
x
About this course
Initialize Mapping Scheme Data
Identify the Reconciliation process.
Set up conversion factors for items.
Establish item default data.
Define general item data.
Identify the various item types.
Define sub entity item information.
Introduce Unit Effectivity
Define Alternative Items.
Set up cost prices.
View cost price parameters.
Define cost components.
Create operation rate codes.
Define price calculation codes.
Define cost price calculation data.
Define an operation rate.
Add an item surcharge.
Define subcontracting rates.
Define Business Partners Master Data.
Identify the Roles for Suppliers and Customers.
Describe the purpose of Internal and affiliated business partners.
Define Employees and Employee master data
Enter hours by employee, team, and assignment.
Approve hours and process hours to finance.
xi
Who Should Attend this Course
Audience
This course is designed for all persons working with the logistics or applications
aspects of the software. The audience should include planners, project
managers, materials personnel, sales and purchasing, and financial persons.
SSA® ERPLN, Common Data is the foundation course in the logistics curriculum
and should precede any other courses.
Prerequisites
These courses should be completed before taking SSA® ERPLN, Common Data
SSA® ERPLN Webtop Navigation
xii
About this course
Organization of Course Materials

This course is organized into lessons. Each lesson focuses on a major concept
relating to SSA® ERPLN, Common Data and the defining and maintenance of
Common Data.
Lesson Objectives
The objectives at the beginning of every lesson enable you to see the functions
and concepts you will master by the end of the lesson.
Lesson Materials
Each lesson sequentially presents concepts and guides you through step-by-step
procedures. You may see items such as figures, screens, bulleted text, notes,
business examples, and/or definitions intended to help you follow along with the
procedures and focus on important ideas.
Lesson Exercises
Lesson exercises are included to give you hands-on practice with the important
skills you will learn in the lessons.
xiii
Flows
Flows provide a sequential listing of key sessions or activities required to execute
the functionality within the software. Each box within the flow states an activity
you will perform. This activity statement is written at the top half of the box. In
some cases, however, activities or tasks may be optional, which may be
represented by additional lines drawn from one box to another. Flows containing
session names and codes tell you where in the software the activity is to be
completed. Alternatively, you may also see Flows that only contain activity
statements.
The Flow: Sample Flow
Start
Set up invoice factoring

companies for handling supplier
payments
Factoring Companies
(tcmcs0125m000)
Create bank account details for

factoring companies
Bank by Factoring Company
(tcmcs0126m000)
Associate factor with pay-to

business partner
Business Partners
(tccom4500m000)
End
Icons Used Within this Course

These icons may be used within the lesson materials:
xiv
About this course
NOTE: A Note icon alerts you to additional and helpful information or hints
regarding the topic.
WARNING: A Warning icon calls attention to information or procedures that must

be followed explicitly.
EXERCISE: An Exercise icon designates when you will complete an exercise to

practice the task.
xv
Navigation
®SSAERPLN Webtop uses a Graphical User Interface (GUI) to operate on the
Windows operating system. Sessions contain icons and menus, which allow you
to navigate and execute activities within the software. The sample Toolbar
displays the icons and menu options you will commonly encounter within the
sessions. You may see different icons and menu options depending upon the
session you are in.
Sample Toolbar
Icon Icon Name Description

Save and Close Saves the current record and input data and closes the
session.
Save Saves the current record and input data.
Print Prints a report of the session data. You will be
prompted to select a report type for printing or enter the
data range for printing.
New (Insert) Creates a new record for inserting data within the
session.
Duplicate Copies the data from a selected record to a new
record. You can then modify the new record to create a
unique entry. This enables faster data entry for similar
records.
Delete Deletes the selected record.
Revert to Saved Cancels any changes made to a record since it was
last opened or saved. To redisplay the changes press
CTRL + E.
Find (Binoculars) Searches and filters for a specific record. You can use
multiple search arguments to find an individual record.
Text Creates or displays Text linked to the selected record.
Show the Creates or enables viewing of documents attached to
Attachments the selected record. This option is only applicable when
the Object Data Management module is implemented.
xvi
About this course
Icon Icon Name Description

Refresh If you are running more than one session, and you
have made changes in one session that affects
information displayed in another session, the Refresh
icon will display the affected and updated information
for all related sessions.
You must always save your changes before you can
use Refresh to make the changes visible in another
open session.
First Record(s) Displays the first record in the current Group.
Previous Record(s) Displays the prior sequential record within the current
Group.
Next Record(s) Displays the next sequential record within the current
Group.
Last Record(s) Displays the last record in the current Group.
New Group Creates a new Group entry enabling you to input data
for a new Group.
First Group Displays the first Group record.
Previous Group Displays the previous sequential Group record.
Next Group Displays the next sequential Group record.
Last Group Displays the last Group record.
Menu Paths
You may see several menu paths in the lessons and exercises. These paths
illustrate where you must navigate to within the software to find the appropriate
session.
In the lesson exercises, menu paths direct you to the appropriate sessions in the
software. Within each exercise, you will normally open the session listed in the
menu path and view or insert a new record. Sub-sessions may also be required
during exercises and (in most instances) can be accessed from the main session
listed in the menu path.
Sample Menu Path

\\ Warehouse Management \ Warehouse Master Data \ Warehouses \
Warehouses (whwmd2500m000)
Sub-session: Warehouses (whwmd2100s000)
xvii
Course Agenda
The key topics covered within this course include:
Enterprise Structure Module.
Logistics Common Data
Item Base Data
Business Partners
Cost Price Calculations
Financial Master Data for Common Data
People Data
Duration
Virtual (VT) Classroom (ILT)

2 sessions (8 hours per session) 2 Days
xviii
Course Introduction
The Enterprise Structure Model graphically manages the components or entities

of a company. A company consists of a number of departments and warehouses,
referred to as entities, which perform logistical and financial transactions. These
Entities can be grouped together by criteria such as region or function and
depicted graphically using the Enterprise Structure Model
Common Data is data that is general data that can be applied across multiple
packages and modules. By defining Common Data in a single location, rather
than within each package and module, there is a reduction in the amount of data
required to be defined in the system.
Financial master data establishes base data in your company for financial
transactions to occur. The information is important because once defined, it
forms the basis for all transactions. When defined incorrectly, financial master
data such as Financial Integrations can seriously affect the performance and
accuracy of the financial data in the system.
Item data is used in almost every package in the application. Item base data
enables defining item information in a central location that can be accessed and
applied to the other packages and modules.
The Cost Price Calculation (CPR) module simulates or establishes the costs of
production items and purchase items. The cost price calculates and compares
costs generated on the shop floor and also determines the inventory valuation.
Cost prices can be broken down into material, operation, and overhead costs.
xix
Business Partners are used to represent customers and suppliers. When a

Business Partner record is created, roles are assigned for the business partner
that determine if the business partner is a customer or supplier in relation to your
organization.
People is an entirely new package designed to centralize Hours Accounting into

one location. The purpose of People is to handle hours accounting within one
package. Using the People package enables users to enter and process hours
and expenses. The costs from the processing of these hours and expenses can
be booked within the originating logistics packages.
xx
1
Enterprise Structure
Model
The Enterprise Structure Model graphically manages the components or entities

of a company. A company consists of a number of departments and warehouses,
referred to as entities, which perform logistical and financial transactions. These
Entities can be grouped together by criteria such as region or function and
depicted graphically using the Enterprise Structure Model
Lesson Objectives
After completing this lesson, you will be able to:
1-1
Enterprise Structure Model

The Enterprise Structure Model provides and organization with the ability to
model and create dynamic organizational relationships from a logistical and
financial company perspective. The ESM provides a graphical representation of
an organization and its departments, warehouses, business partners, and
projects.
Company Structures
The Company Structure determines how your organization operates and also
determines how the table structures are defined within the application. The
Enterprise Structure model represents the various Enterprise Units and Entities
and their relationships within the company structure.
Single and Multi-Company Structure Types

Implementations often consist of multiple companies that form a multi-company
structure. Based on your business requirements and the flexibility of the
software, you can set up several combinations of logistic and financial companies
to represent your business structure.
Available Company Structures

The various company structures available are:
Single Logistic/Single Finance
Single Logistic/Multi-Finance
Multi-Logistic/Single Finance
Multi-Logistic/Multi-Finance
When you decide to create a multi-company structure, you are required to use
one company to:
Create additional companies and databases
Define which companies share data by linking logical tables
Define the Enterprise Structure Model.
1-2
1 Enterprise Structure Model
Business Example
RAC Manufacturing Company makes chairs and train car seats within 2
divisions. Financial Company 100 and 101 represent the 2 divisions. RAC has
three manufacturing plants represented by Logistic Companies 103, 104, and
105. Some entities (warehouses, work centers, and Business Partners in this
example) within the plants report to the Chair Division and others report to the
Rail Division.
Chair Division Rail Division

Finance Co. 100 Finance Co. 101
Enterprise Enterprise Enterprise Enterprise

Unit Unit Unit Unit
1 2 3 4
Bus. Bus.
Warehouse Work Warehouse Warehouse
Partner Partner
BBF Center JN1 CA3
BA101 BC02
Logistic Co. 103 Logistic Co. 104 Logistic Co. 104
Simple Multi Site Example
By linking the entities to the EUs, you can direct the appropriate financial
reporting to the correct division.

The Enterprise Structure Model (ESM) must be defined when you create a new
company. The ESM is used to identify and model Enterprise Units for each
company. Enterprise Unit relationships enable coordination between the
Enterprise Units in terms of transaction flows and goods flows.
The system provides a graphical representation of the enterprise structure model

of the company. This model displays the entities and Enterprise Units and can
incorporate a map to logically position the entities geographically.
One level below the enterprise structure model are the business models.
Business models can be linked to enterprise units. This relationship implies that
1-3
the enterprise unit is the indirect link between an enterprise structure model on
the one hand and multiple business models on the other hand
View the Enterprise Structure Model

Open the Enterprise Structure Model to view the graphical representation of the
various entities and Enterprise Unit relationships and their respective geographic
location.
\\ Common \ Enterprise Modeling Management \ Enterprise Structure \

Enterprise Structure Model (tgbrg0512m000) or
\\ Enterprise Modeler \ Model Definition \ Enterprise Structure Models \
Enterprise Structure Models (tgbrg0512m000)
1. Highlight the Enterprise model.
2. Click the Edit Diagram icon or select Edit Diagram from the Specific menu
The diagram will display the currently defined Enterprise Units for your company
1-4
Enterprise Structure Diagram
To view the details for the Enterprise Structure:
3. From the Enterprise Structure Model select the Enterprise Model and from
the Specific menu select Enterprise Structure Model Browser option.
1-5
You will see a display that indicates which Enterprise Units are linked to the
Enterprise Model and the number of Entities (in parenthesis) that are associated
with each Enterprise Unit.
Enterprise Model Browser
1-6
Enterprise Units and Entities

Entities are used to represent departments, warehouses, Business Partners, and
Projects. The Entities can be grouped together in functional units, or by business
function by linking the Entity to an Enterprise Unit. The Enterprise Unit
Enterprise Units
Enterprise Units are used to model and setup single and multi-company
organizations. The Enterprise Units can represent a grouping of entities such as
departments, work centers, warehouses, and projects. The enterprise unit
entities must all belong to the same logistic company. Multiple enterprise units
can be defined per logistic company. An enterprise unit is linked to a single
financial company.
When logistics transactions between enterprise units occur, the transactions are
posted to the financial companies to which each enterprise unit is linked. The
enterprise structure models define the relationships between the enterprise units,
and the transfer of goods that is allowed between the enterprise units.
There must be at least one Enterprise Unit defined for each company. You may
have several enterprise units, but at least one is required. This is the case, even
if your company is a single logistic/single financial company.
1-7
Business Example
You have 2 Logistic companies that are posting financial transaction into 1
Finance company.
Enterprise Unit Relationships
The figure represents a grouping of entities into an Enterprise Unit. The figures
within the Enterprise Unit ovals represent the entities (departments, work
centers, and warehouses). The Enterprise unit links the entities from Logistic
companies 100 and 101 to Financial Company 100.
1-8
\\ Common \ Enterprise Modeling Management \ Enterprise Structure \

Enterprise Units (tgbrg0530m000)
Enterprise Units
Field Description
Enterprise Unit The code or name representing the enterprise unit
Description The description or name for the enterprise unit
Enterprise Unit Category The Enterprise units can be divided among a user-
defined system of classification. This enables managing
enterprise units as a group.
Financial Company The company in which the data such as the exchange
rate required for the transactions between enterprise
units is stored. The financial company for all financial
transactions for this enterprise unit.
Default Purchase Office
Entities
Entities are the separate and independent building blocks for clusters and/or an
enterprise unit. Entities represent the logistical or financial functional units within
your organization. Departments, warehouses, work centers, employees, and
1-9
business partners where logical or financial transactions occur may be classified

as entities.
Entities are linked to an Enterprise Unit. You do not define an entity in one
session, rather when you create a warehouse, department, or business partner
(internal or affiliated) the entity record is created. You can view all entities in the
Key Entities (tcemm1510m000) session.
\\ Common \ Enterprise Modeling Management \ Entities \ Key Entities

(tcemm1510m000)
Key Entities
Field Description
Entity Type Displays the type of entity displayed:
Department
Warehouse
Work Center
Project
Etc.
Operational Company The logistic company the entity resides within
Entity The code representing the entity.
Enterprise unit The enterprise unit that links this entity to the
appropriate financial company for recording financial
transactions.
1-10
Entity Relationships
Goods transfer relationships can be defined between entities to make it possible
to automatically generate internal or inter-company transactions. This is helpful
when entities are linked to enterprise units that have different financial
companies.
There are several Entity relationships that exist. The purpose of relationships is
to define the structure for transactions between entities within the Enterprise
Structure. The details apply to the goods transfer relationship between:
Purchase office and sales office.
Shipping office and sales office or purchase office.
Shipping offices and warehouses.
Purchase office and sales office

If you define a relationship between a purchase office and a sales office, the
system can generate internal invoices between the financial companies that are
linked to the offices.
For example, the relationship between a purchase office and a sales office is
required if the sales office receives an order for goods that are not in stock. The
sales office can request the purchase office to purchase the goods and deliver
them directly to the customer. The sales office invoices the customer, and the
purchase office invoices the sales office. An invoice is then generated from the
purchase office to the sales office.
Shipping office and sales office or purchase office

The system generates freight orders for delivery of the goods on sales orders
and purchase orders.
The shipping office that is linked to the issuing warehouse or the receiving
warehouse is responsible for planning the delivery and pays the carrier's invoice.
The sales office invoices the business partner for the order, or the purchase
office pays the business partner.
If you define a goods transfer relationship between the shipping office and the
sales office or purchase office, the internal invoices can be generated between
the shipping office and the sales office or purchase office to balance the
accounts.
1-11
Shipping offices and warehouses

If a freight order is created for a warehouse transfer order, two warehouses are
involved. If the warehouses are linked to different shipping offices, two shipping
offices are also involved. One of the shipping offices must plan the goods
transfer, and one of the shipping offices or warehouses must pay the carrier's
invoice.
You can define goods transfer relationships between warehouses and between
shipping offices to specify whether the issuing entity or the receiving entity is
responsible for planning the goods transfer and paying the carrier's invoice. The
internal invoices can be generated between the entities involved to balance the
accounts.
Shipping offices and Shipping offices

For warehouse transfer between warehouses that are linked to different shipping
offices, you must define the relationship between the shipping offices
Entity to Entity Relationships

Use this session to maintain entity - entity relationships for goods transfer. The
relationships that you define between specific entities overrule the default
relationships that you define between the enterprise units.
You can define goods transfer relationships between warehouses of the same
and of different logistic companies of a multi-company structure. You can only
define goods transfer relationships between other types of entities if the entities
belong to the same logistic company.
To define the details of the goods transfer relationship, use the Goods Transfer
(tcemm2150m000) session. You can select the set of goods transfer details that
applies to the relationship in the Relationship Detail field.
The relationship only applies between the effective date and the expiry date.
Outside this period, goods transfer between the entities are handled in the
standard way
1-12
\\ Common \ Enterprise Modeling Management \ Relationships \ Entity –

Entity Relationships (tcemm2110m000)
Entity-Entity Relationships
Field Description
From Entity type The type of entity that will issue the goods
Company The logistic company for the entity issuing the goods.
Entity The entity that will issue the goods.
To Entity type The type of entity that will receive the goods transfer.
Company The logistic company where the goods will be
transferred.
Freight Planning Entity The entity responsible for the freight orders for the
goods transfer.
Shipping Office The shipping office, linked to the freight planning. This
office controls the freight order for the goods transfer.
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Field Description
Type of Order to be If the relationship defined applies to warehouses of
Generated by Enterprise different logistic companies, this is the replenishment
Planning method used to replenish the inventory in the issuing
warehouse.
Effective Date The date the entity relationship is valid.
View Key Entities

When departments, work centers, and warehouses are created in their
respective sessions, a record for that entity is inserted into the Key Entities
session.
View the Key Entity session to observe what entities have been created.
\\ Common \ Enterprise Modeling Management \ Entities \ Key Entities

(tcemm1510m000)
1. Open the session to view the records.
2. View the various key entities
Key Entities
The session displays all the available entities that have been defined in the
logistical company by Entity type. The various entities displayed are an overview
of all entity types created in the system.
1-14
Company Data
A company, generally identified by a three-digit number such as 120, represents
an individual company. A company contains a set of data tables that store
records unique to that company. A Company also consists of one or more
entities: warehouses; departments; business partners, projects.
Each company is unique and has its own:
Address
Language
Calendar
Currency
This information defined for the company, is used as the default values when
defining a new:
Department
Warehouse
Employee
You define data and work with data stored in the company database tables.
Company Data for a company typically includes base data such as:
Business Partners
Departments
Ledger Accounts
Units of measure and base units
Item Codes
Invoicing Methods
Sales Orders
Purchase Orders
Invoices
Projects
1-15
Currencies
Company Types
A Company Type identifies the purpose and application of the company within
the Enterprise Structure. There are four types of companies that can be defined:
Field Description
Logistic Company Used for logistic transactions such as the production
and transportation of goods. The company tables
store all logistic data transactions.
Financial Company Used to post financial data transactions from the
Finance package. You can link one or more
Enterprise units from one or multiple logistic
companies to a financial company.
Both (Logistic and Contains both logistic and financial tables and can
Financial) log logistical transactions as well as the associated
financial transactions in the company database
tables.
Financial Group A financial company that has a number of other
Company financial companies liked to it. A Financial Group
company is used as a central company to group
transactions and:
Process corporate or administrative accounting
Accumulate data for consolidated financial
reporting from the group’s financial companies.
Perform central cash management processes
such as payments and direct debit.
Logistical
A Logistic company uses the logistic tables in the database. Therefore, a
logistic company handles logistical transactions. Various entities such as sales
offices, purchase offices, warehouses, and work centers often comprise a logistic
company.
Financial
A Financial company is used for posting financial data within the Finance
package. You can link one or more enterprise units from multiple logistics
companies to one financial company. A company of the type Financial can only
1-16
contain financial transactions; logistical transactions are not stored in the

company database.
Both – Logistical and Financial

One of the most common company types used. When you define a company
type as Both you are indicating the database tables for that company contain
data for both financial and logistical transactions
Financial Group Company

The Financial Group Company enables centralized or consolidated financial
results from a number of other financial companies. By linking several companies
of the type Financial or Both –Logistical and Financial, to a Group company, you
can consolidate the multiple company transactions to a single company. When a
financial company is linked to another financial company, the latter financial
company automatically becomes a group company.
When using a Financial Group Company, you can specify default information in
the Group Company Parameters (tfgld0101s000) session. The parameters
contain information such as:
The Reference Currency
The Dimension accounts
The Fiscal periods.
Use the Company Parameters (tfgld0503m000) session to define the group

company for the current company.
1-17
The Flow: Company Set up
Start
Initialize the company parameters

Initialize Parameters
(tcmcs0295m000)
Define the implemented packages

Implemented Software
Components
(tccom0500m000)
Define Company Data

Companies
(tcemm1170m000)
End
Defining Company Data

A company represents a unique configuration of tables and transactions. To
define your company you must identify the modules and packages that are
implemented as well as the base data for your company. Together, this data
identifies your company, the type, and the default or base information for the
company.
Implemented Software Components

Once a company is created in the Tools package, you must define the modules
and packages that are implemented. Other information such as the company
default address, country where the company resides, default language, and
some base data need to be defined
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\\ Common\ General Data\ Company Data\ Implemented Software

Components (tccom0500m000)
Implemented Software Components (General Data tab)
Field Description
Archive Company Indicates if this company is used as an archive company
to store archived transactions.
Address Code The default company address.
Country The default country for your company. This value
defaults to departments and addresses for your
company.
Language The default language for you company and printed on
instructions and documents.
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Implemented Software Components (Packages tab)
Field Description
Package checkboxes Selecting the checkbox indicates that package will be
implemented in the current company database.
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Implemented Software Components (Modules tab)
Field Description
Modules check boxes Selecting the checkbox indicates that module will be
implemented in the current company database.
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Implemented Software Components (Concepts tab)
Field Description
Concepts checkboxes Selecting the checkbox indicates that particular
functionality will be implemented in the current company
database.
Define the Implemented Software Components

Your new company resides in the Netherlands which means you will need to
define your address, language, packages and modules that are valid for your
company.
\\ Common\ General Data\ Company Data\ Implemented Software

Components (tccom0500m000)
Define the Implemented Software Component Data.
In the actual Implemented Software Components session you can define your
company data using the values
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1. On the record for the Actual Implemented Software Components data set,
click the Details icon.
General Data
Field Input Value
Address Code ADD000001
Country NLD
Language NLD
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2. Click the Packages tab and select the packages to implement.
You have defined the default information for address, language, and country for
your company. Also, you have indicated which packages and modules are
implemented for the company as well as what functionality is being used such as
unit effectivity.
1-24
Implemented Software Components – Packages tab
Companies
This session is used to maintain the enterprise modeling data of the company,
including currency and company type information. This session follows after
defining the logistic data for the company in the Implemented Software
Components (tccom0100m000) session.
1-25
\\ Common \ Enterprise Modeling Management \ Entities \ Companies

(tcemm1170m000)
Companies
Field Description
Company Type The company type dictates the type of transactions that
are posted to the tables. The available options are:
Logistical
Financial
Both
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Field Description
Currency System The currency system for the company. Defines how
amounts are calculated and registered.
The three available currency systems:
Single
Independent
Dependent
Local Currency The currency of the country where the company is
physically located.
Reference Currency The base currency for all calculations of currencies. The
reference currency is the common base currency of all
companies in a multi-site structure.
Purchase The exchange rate type used to convert purchase
transactions form another currency to the home
currency.
Sales The exchange type used to convert sales transactions
form another currency to the home currency.
Calendar The default calendar used for the company.
Time Zone The time zone where the company is physically located.
For companies of the type Financial or Both you must
specify a time zone. The time zone is used to post
transactions and calculate exchange rates with the
proper time.
Define Company Data

The new company also requires more detailed information regarding the type of
company and currency information.
Define the new Company and the required data
\\ Common \ Enterprise Modeling Management \ Entities \ Companies

(tcemm1170m000)
You will create a company of the type Both, that will have a dependent currency
system. Your company resides in the Netherlands and will use the Euro as the
currency.
1. Click the Details icon to open the Companies session.
1-27
Companies
2. On the details, enter the data from the table:
Field Input Value

Description Standard.COM A’dam Private Market
Company Type Both
Currency System Dependent
Reference Currency EUR
Euro Currency EUR
Local Currency EUR
Reporting Currency 1 USD
Reporting Currency 2 GBP
Time Zone CET
Calendar Code Comp
The result is that your company now has the Company Type defined as Both and
the currencies have been defined. The new company has been defined in the
Companies (tcemm1170m000) session. You now must indicate the general
information for your company.
1-28
Companies
Common Parameters
Parameters set default data for the system. Common parameters include the
Initialize Parameters (tcmcs0295m000) session and Common Parameters
(tccom5000m000) session. Setting Common parameters is one of the first
actions when establishing a new company
The Common Parameters establishes default setting and functional settings. The
main session contains a history list of parameter sets and their effective dates as
well as the current parameter set, at the top of the list (without an effective date).
The current set is the set of parameters that are currently in effect.
The Common Parameters lists the history of the parameter settings and
maintains the current set of parameters. This session lists:
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A history list of parameter sets and their effective dates
The current parameter set, at the top of the list (without an effective date)
You can view previous parameter settings by double-clicking one of the historical
parameter sets.
To view or change the current parameter settings, double-click the current

parameter set, indicated by the record without a date listed to open the COM
Parameter (tccom0000s000) session.
If you make changes and save the new parameter set the system will:
Add a new set to the history list
Update the current parameter set, identified by the record without a date.
\\ Common \ Common Parameters \ COM Parameters (tccom5000m000)
COM Parameters
1-30
Field Description
Introduction Date The date and time that the parameters are valid. The
parameters are valid up to the effective date of a more
recent parameter setting
Business Partners If you want to use a number group or series numbers for
coding business partners select this check box.
If you create a business partner, you must select a series
from the number group. The system generates the
business-partner code from the series code plus the first
free number in the series.
If you want to enter your own code for a new business
partner, clear this check box.
Business Partners The number group used to generate business-partner
codes.
Select a number group that is not already assigned to
another purpose
Addresses If you want to use a number group and series numbers for
coding addresses, select this check box.
If you create an address, you must select a series from the
number group. The systtem generates the address code
from the series code plus the first free number in the series.
If you want to enter your own code for new addresses,
clear this check box.
Addresses The number group used to generate address codes.
Contacts If you want to use a number group and series numbers for
coding contacts, select this check box.
If you create a contact, you must select a series from the
number group. The system generates the contact code
from the series code plus the first free number in the series.
If you want to enter your own code for new contacs, clear
this check box.
Contacts The number group used to generate Contact codes.
Priority Distance Tables The sequence in which the distance between two
addresses is determined:.
Using the city name
Using the ZIP/postal code.
This information to verify delivery dates in:
The Sales Control module
The Purchase Control module
The Service Order Control module
1-31
Field Description
Time Unit for Seconds The time unit in which the distance (time needed to cover
the distance) between two delivery addresses is
expressed.
The unit must be of the Time type and must be expressed
in seconds in order to enable the distance calculations
based in time in the sessions:
Distance Tables by City (tccom4537m000)
Distance Table by ZIP Code/Postal Code
(tccom4538m000).
Define Common Parameters

The COM Parameters indicate if number groups will be used for Address,
Business Partner, and Contact codes. You must set the default number groups.

Define a new Number Group ADD for Addresses.
1. Find the Parameter record for the Actual COM Parameters record and click
on the details.
1-32
COM Parameters
2. Change the Number Group for Addresses to ADD.
The New Addresses number group is now ADD. When you create a new
address, you will view the First Free Numbers that are defined for the Address
Number Group ADD.
1-33
COM Parameters
Exercise: Verify the settings for the Common Parameters

You have identified your new company. You will need to establish the Common
Parameters to define the controls and defaults for your company.
Verify the COM Parameters are set for your company

Verify the data is set according to the table:
Field Input Value

Business Partners 002
Addresses 001
Contacts 003
1-34
COM Parameters
The COM Parameters are now set for your company. The default number groups
for Business Partners, Addresses, and Contacts are defined.
1-35
Calendars and Periods

Calendars are used throughout the application to register and magnate the
availability of resources and Business Partners.
In theory, it is sufficient to define a standard calendar in the Standard Calendar

(tcccp0140m000) session, and to specify a calendar for your company in the
Companies (tcemm1170m000) session. You can base the time planning in your
business entirely on these two calendars, because they contain all the elements
and factors needed to perform lead-time planning and offsetting of specific start
and end dates. However, in practice the option to only use the standard calendar
and the company calendar provides limited planning facilities, and as the
complexity of your business structure increases, you will definitely need to define
more calendars to model exceptions with regard to the standard calendar for
specific resources or groups of resources.
You can assign calendars to various resources in the application to manage that
resource. For each type of resource you can assign a specific calendar to:
The company in the Companies (tcemm1170m000) session
Departments in the Departments (tcmcs0565m000) session
Employees in the Employees – General (tccom0101m000) session
Warehouses in the Warehouses (whwmd2500m000) session
Business Partners in each of the sub entity role sessions from the Business
Partners (tccom4500m000) session
1-36
The Flow: Calendars
Start
Set Parameters
CCP Parameters
(tcccp0100m000)
Define Availability Types

Availability Type
(tcccp0101m000)
Enter Working Hours Types

Working Hours Types
(tcccp0103m000)
Create Define a new calendar

Custom Yes Calendars
Calendar? (tcccp0110m000)
No Define the availability types for the

calendar
Define the Standard Calendar
Calendar Availbility Types
Standard Calendar (tcccp0150m000)
(tcccp0140m000)
Link Availability types, hours, and

exceptions to Calendar
Calendar Working Hours
(tcccp0120m000)
Make the new calendar effective

Update Calendar
((tcccp0226m000)
End
1-37
Parameters
The CCP Parameters (tcccp0100m000) session establishes the base parameters
for Start Time, Calendar Length, and Availability type. These will be the values
that default if no values are defined for the respective resources.
View the CCP Parameters

View the current CCP Parameters to check the current default settings.
\\ Common \ Common Parameters \ CCP Parameters (tcccp0100m000)

1. Click the Actual session to open the record.
2. View the current settings.
The CCP Parameters set the default information for Start time, Calendar length
and the Default Availability Type for external software packages.
CCP Parameters
Availability Types
Availability types provide a means to categorize the availability of a resource.
Typically, an availability type relates to a specific activity type and enables
categorizing the availability of a resource depending on the activity. The value of
the Availability Type determines where the resource is available.
Availability Type Transport or Delivery is available for a country
1-38
Availability Type Operation or Maintenance is available for a work center.
Availability type Service is available for an employee
You can indicate if an Availability Type is available for use or not by checking the
Available check box on the Availability Type on the corresponding day in the
Calendar Working Hours (tcccp0120m000) session.
\\ Common \ Calendars and Periods \ Calendar Master Data \ Availability

Types (tcccp0101m000)
Availability Types
Field Description
Availability type Code representing the availability type
Default Available If this check box is selected, the availability types is
available during the related time intervals in the
calendar, that is, the activity associated with the
availability type is available.
The setting of the field is just a default for the lines
recorded in the Calendar Working Hours
(tcccp0120m000) session, and to which a certain
availability type is linked. In each of these lines you can
still determine whether the availability type is available
or not by clicking the Available check box.
1-39
Define an Availability Type

A new Availability type is to be defined to represent the availability for a new
Distribution Center.
\\ Common \ Calendars and Periods \ Calendar Master Data \ Availability

Create the new Availability Type WC1 for the distribution center.
1. Insert a new record and create Availability type WC1 for the work center.
Your new Availability type WC1 is defined and is available by default.
Availability Types
Exercise: Create an Availability Type

Define a new availability type XX1 for your company
1-40
Availability Type
Field Input Value
Availability Type XX1 (Replace XX with your initials)
Description Standard Avail. - Daily
Default Available Select the check box
Availability Types
Working Hour Types

Working Hour Types indicate time intervals such as Monday morning, or service
weekend. The working hour type has a specified start and end time.
Use the Working Hours Types (tcccp0103m000) session to define a working

hours type. Enter the real capacity percentage. The default efficiency factor
indicates how much the employee works in the defined time. For example, if an
employee works six hours out of a possible eight hours on a project, the
efficiency factor is 0.75.
1-41
\\ Common \ Calendars and Periods \ Calendar Master Data \ Working Hour

Working Hour Types
Field Description
Start Time The beginning mark for the time frame the working
hours type applies
End Time The ending mark for the time frame the working hours
type applies.
Efficiency Factor Use this factor to account for resources that work more
or less efficiently for the planning of shop floor
operations.
Impacts lead time calculation.
Capacity % The maximum utilization percentage of a resource for
the working hour type. If you specify 80%, then only
80% of the available working hour duration is
considered available for utilization.
Overtime If checked, this working hours type is considered as
overtime and is used in modules such as Service and
Contracts.
Define a Working Hour Type

Define a Working type hours to use in the Distribution Center for Monday and
Wednesday. This will be an 8 hour shift from 8:00am to 4:00 pm.
1-42
\\ Common \ Calendars and Periods \ Calendar Master Data \ Working Hour

Insert the record MON and WED and define the working time.
1. Open the session and click New to insert the record.
2. Enter the Working Hour Type Code MON and define the time from 8:00am to
4:00pm and indicate it is available for overtime. The Efficiency Factor is 1.00
and the Capacity is 100%.
3. Click New and insert a second Working Hour Type code WED with the time
8:00am to 4:00pm. The Efficiency Factor is 1.00 and the Capacity is 100%.
Working Hours Type
The new Monday and Wednesday working hours are now defined with an 8 hr
time frame.
Exercise: Define a Working Hour Type

Create a standard daily overtime Working Hour Type for 4 hours. This will be
available for overtime during the work week.
Working Hour Type

Field Input Value
Working Hour Type XXW (Replace XX with your initials)
Description Weekly availability
Start Time 0800
End Time 1700
Efficiency Factor 1.00
1-43
Field Input Value

Capacity % 100
Overtime Check the check box
Working Hour Types
Standard Calendar
This session is used to define the defaults for each day of the week. The
standard calendar supplies default information, such as availability type, working
hours, and efficiency factor for each day of the week. The system needs this
information to update the Calendar Working Hours (tccp0120m000) session. If
the end date of a specific calendar is reached and you still want to plan ahead, a
search for the parent calendar is made and if no parent calendar exists, the
standard calendar is used.
The standard calendar is the basic calendar for which you define for your
company. This calendar can have exceptions, such as non working or non
available time. You must define at least one new calendar, and link this calendar
to your company in the Companies (tcemm1170m000) session. This step is
mandatory. If you need a calendar in a rather elementary business structure, the
definition of a standard calendar and a company calendar can be sufficient.
1-44
\\ Common \ Calendars and Periods \ Calendar Management \ Calendar

Definition \ Standard Calendar (tcccp0140m000)
Standard Calendar
Define a Standard Calendar

Your Distribution Center is going to be available to schedule incoming and
outgoing shipments on Monday and Wednesday for 8 hrs each day. You have
decided to create a new calendar that will be used for your Distribution Center.
Insert the Availability type WC1 for Monday and Wednesday for use with the new

1. Find the record for the day Monday and click New
2. Insert the Availability type WC1 and use the Working Hour Type MON.
1-45
Standard Calendar
This indicates that for Monday, the availability type WC1 applies and the working
hours available for the Availability type will be from 8:00am to 5:00 pm.
The Availability Type WC1 is now listed for Monday.
1-46
Standard Calendar
Exercise: Define Availability Types for Standard Calendar

You will define your availability type XX1 (replace XX with your initials for
Monday through Friday for the Standard Calendar. You will link the Working Hour
Type you created to indicate the working time for that availability type.

For Monday enter the Availability type:
Field Input Value

Day Monday
Availability Type XX1 (replace XX with your initials)
Working Hour Type XXW (replace XX with your initials)
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Standard Calendar
You can repeat the steps and enter the Availability Type XX1 for each Tuesday,
Wednesday, Thursday, and Friday.
Calendar Codes
The Calendar Codes (tcccp0110m000) session is used to define specific
calendars. These can be the various calendars you wish to use for the
application. Each Calendar has a start and end date specified and if applicable a
parent calendar is referenced.
1-48

Codes (tcccp0110m000)
Calendar Codes
Field Description
Calendar Code User defined code to represent the calendar definition.
Parent Calendar If you do not want to enter a parent calendar, the
standard calendar is linked directly to this calendar.
If you link a parent calendar to your calendar, you
cannot set the start date later, nor set the end date
earlier than the start and end date of the parent. You
can only set the start date earlier and the end date later
than the end and start date of the parent calendar.
Start Date The date the calendar begins
End Date The expiry date for the calendar.
Define a Calendar
The next step is to define a calendar code to define the start and end dates for
the calendar. You then link availability types to this calendar under the Calendar
Availability Types
1-49

Codes (tcccp0110m000)
Create the Calendar Code DS1 which will be a new calendar used for a new
1. Insert a new record for calendar DS1 with the effective dates from today to
six months in the future.
The new calendar DS1 is now created, effective for 6 months.
Calendar Code
Exercise: Define a Calendar Code

A new calendar will be defined for your Distribution Center. The new calendar will
be used to specify the daily availability for the Distribution Center.
Enter the new Calendar code XXW and make the dates valid for 1 year.
Field Input Value

Calendar Code XXW (Replace XX with your initials)
Description Dist. Cent. Calendar
Parent Calendar Leave Blank
1-50
Field Input Value

Start Date Current Date
End Date +365 days
The new calendar code is now defined.
Calendar Codes
Calendar Availability Types

This session is used to identify the availability types applicable to your calendar.
When the calendar is updated, the availability types linked to your calendar are
used to retrieve data from the Standard Calendar to generate the calendar
working hours.
1-51
The Update Calendar (tcccp0226m000) session generates the new calendar.

During the Update, the Availability Types defined in the Calendar Availability
Types (tccop0150m000) determine which data from the Standard Calendar
(tcccp0140m000) session is retrieved.
This is only used when you are referencing the standard calendar as a template.

Definition \ Calendar Availability Types (tcccp0150m000)
Field Description
Availability Type The availability type that is available for use with this
particular calendar code. Only the availability types
linked to the calendar code are considered when the
calendar is generated during the Update Calendar
(tcccp0226m000) session.
Define Calendar Availability Types

You need to link the Availability Types your calendar can use to the Calendar
code. Only those availability types linked to the calendar code will be considered
when the calendar is updated.
Link the availability type WC1 to the calendar DS1 for the distribution center.
1-52
1. Click the New Group to enter a record for calendar DS1.
2. Click New to enter the availability type WC1 to the calendar.
You now have linked Availability Type WC1 to the Calendar DS1.

Use this session to display and maintain working hours types for a specific
combination of an availability types and a calendar. In addition, you can display
and maintain capacity details for that combination.
The details of this session are generated when the calendar is updated. If you
modify the working hours for the calendar, then the modified line is marked as
Manual in the Derived From Field.
The working hours types that you connect to a combination of calendar and
availability type in this session, determine the available time and capacity of that
combination of a calendar and availability type.
This session enables viewing details for calendars after the Update Calendar
(tcccp0226m000) session is executed or to manually enter or modify working
hours for a calendar.
1-53

Definition \ Calendar Working Hours (tcccp0120m000)
Field Description
Date Date for the working hours type for the specified
calendar/availability type combinations.
More than one working hour type for the same date can
be specified. If there is an overlap for the working hours
on a specific date a warning will be displayed.
Available The available check box is selected by default. If the
checkbox is cleared, the fields that become unavailable
are:
Working Hours Type
Start Time
End Time
Capacity
Efficiency Factory
Derived From Displays the recurrence code, or the name of the parent
calendar. If the line is derived from the standard
calendar, from an unavailable day, or if the Calendar
Working Hours (tcccp0120m000) session was used to
link the specific working hours type to an availability
type, this field is empty.
1-54
You can use the icons on the toolbar to shift backward and forward in the
calendar, to go to a specific date, and/or to allow display of the working hours for
the specified calendar per:
Day
Week
Month
Year
In addition to the display functions, you can select the View By option on the
Specific menu and select the viewing option for the system to display the working
hours per:
4 Weeks
Quarter
Half
Year
The Specific menu also provides various options to zoom to sessions that
contain more calendar details.
Modify Calendar Working Hours

The Distribution Center calendar can have the available working hours defined
for Availability type WC1. The Distribution Center Calendar to be used is for
Monday and Wednesday availability. You will modify working hours for Monday
on the calendar.

Definition \ Calendar Working Hours (tcccp0120m000)
1. Search for the record with Calendar Code DS1 and Availability Type WC1.
2. Change the Working Hours Type from MON to STD for 9/13/2004.
3. Change the Start Time from 8:00 am to 12:00 am.
The new Calendar Working Hours indicates that on 9/13/2004 the available
working hour type for that day is STD and the Start time is 12:00 and the End
Time is 5:00. This is now the time frame the Distribution Center is operating for
that day.
1-55
Update Calendar
This session is used to update the working hours and capacity details in the
Calendar Working Hours (tcccp0120m000) session.
You run this session to generate the calendar after specifying changes in the
Calendar Working Hours (tcccp0120m000) session to make the changes take
effect. Whenever changes are made to the calendar working hours, this session
is run.

Definition \ Update Calendar (tcccp0226m000)
1-56
Addresses
Addresses are defined for Companies, Departments, Employees, Warehouses,
Business Partners, Contacts, and Banks. Addresses can be set up to print in
alternative ways by using address formats. For instance, you may want to print
the fax number and e-mail address on a request for quotation, but not on the
shipping documents. You can define a format for each application.
\\ Common \ General Data \ Addresses \ Addresses (tccom4530m000)
Addresses (General tab)
1-57
Field Description
Address Code The manual or system generated code representing the
address. If the COM Parameters indicate using address
number groups, you select the First Free Number for the
address code.
Country Specified the country the address is located in.
Zip Code The postal code or zip code identifying the location of
the address.
State /Province Identifies the state or province the address is located.
City Identifies the city where the address is located.
Addresses (Detailed tab)
1-58
Field Description
Country for VAT ID Check When using tax, this field records the VAT ID code.
Tax Number When tax is applicable, the tax number can be based on
the address to identify the applicable tax.
Addresses (Second Address tab)
Create a New Address

Define a new address for a Distribution Center located in the Netherlands.
Identify the Country, City that are required information.
1. Click the New icon.
1-59
2. Enter the First Free Number ADD for the Address.
3. Enter the address details.
Addresses (General tab)
The address code is generated and the record is saved.
The new address code ADD000046 for the Distribution Center is now available.
You can assign this address to a Department, Business Partner, Warehouse, etc
indicating the physical location of the entity.
1-60
Addresses
Address Formats
You use address formats to define how addresses must be printed on
documents. You can use this to avoid that address information is truncated at the
end of a field or line.
The address lines on a document are usually 35 positions. The maximum is 60

positions. For this reason there are two fields available for the Name, Address,
and City name fields in the Addresses (tccom4130s000) session. This enables
you to print parts of the name, address, and city on separate lines, or to print only
the first parts.
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\\ Common \ General Data \ Addresses \ Address Formats (tccom4535m000)
Address Formats (General tab)
Field Description
Line The Line number indicates which line on the address
label the field will print.
Sequence The sequence is used to print more than one field per
line. The information is truncated if the multiple fields do
not fit on one line. Priorities are not checked when
truncating occurs.
Priority Priority indicates if a field can be omitted. If there are not
enough lines available to print the complete address
according to the format, the lines with the highest priority
(lowest priority number) are printed until the address is
full.
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Define Address Format

Define a new Address Format for addresses in Germany.
1. Click the New icon and enter the table data:
Field Input Value

Address Format GER
Description Germany
2. Insert the Address Format Field data;
Field Line Sequence Priority Space

Name 1 0 1 0
Name 2 2 0 2 0
Address 3 0 1 1
Address 2 4 0 2 0
House Number 4 0 1 0
P.O Box 5 0 1 0
Number
City 6 1 1 0
City 2 7 0 2 0
Country 8 0 1 0
Zip Code 6 0 0 1
The resulting address format is defined.
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Address Format Result
Print Address Formats

For comparison, a printing of the same sales order acknowledgement is
provided. The first illustration displays the standard format. The second
illustration displays the address format for GER using the same sales order
acknowledgement.
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Address Without Address Format
The address printed using the Address Format GER prints the House Number
(B-120) and the City (Los Angeles) which were defined in the address format
instead of the address (500 W. Palm) which is specified in the standard address
format.
Address Using Address Format GER
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Lesson Review
In this lesson, you learned how to:
1-66
Review Questions
1. The Enterprise Structure Model?
A. Graphically models and depicts your organization.
B. Lists the Business Partners and Addresses.
C. Creates the Enterprise Units for use within your organization.
2. What is the primary purpose of an Enterprise Unit?
A. Links Addresses for various entities.
B. Creates a link between logistics companies
C. Provides the ability to link logistics entities to multiple financial

companies.
D. Links a entity to a single financial company for reporting financial

transactions originating from the entity.
3. How does an Enterprise Unit relate to Entities?
A. An entity is linked to several Enterprise Units.
B. Entities are linked to a single Enterprise Unit.
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Review Questions Answer Key
1. A
2. D
3. B
1-68
2
Logistics Common Data
Common Data is general data that can be applied across multiple packages and
modules. By defining Common Data in a single location, rather than within each
package and module, there is a reduction in the amount of data required to be
defined in the system.
Lesson Objectives
Create Item Groups
Define Countries
2-1
Number Groups, Series, and First Free Numbers

Orders, contracts, invoices, and other documents are identified by their order or
document number. The document number consists of the series code followed
by a sequential number. You can also use series codes and series numbers to
identify record types other than documents, such as projects, budgets, Business
Partners, addresses, and contacts. Each numbering sequence can also have a
pre-defined starting point called the First Free Number
The Flow: Number Groups and First Free Numbers
Start
Set Parameters to use Number

Groups
COM Parameters
(tccom5000m000)
Define the Number Groups for the

company
Number Groups
(tcmcs0151m000)
Define First Free Numbers for each

Number Group
First Free Numbers
(tcmcs0150m000)
End
Definition
A Number Group defines information specific to a type of document, order, or
other logical numbering sequence. This includes information such as:
The length of series used for this document.
The multiple series that can be used for the group.
The next available sequence number.
2-2
2 Logistics Common Data
COM Parameters
The Number Group to use for each type of document or common data record is
specified in the relevant parameter table. For instance, the number groups to use
for Business Partners, Addresses, and Contacts, are detailed in the COM
Parameters (tccom5000m000) session.
Specify Number Group for Com Parameters

Indicate number group 001 will be used for Addresses in the COM Parameters

Enter Number Group 001 for Addresses.
Enter Number Group for Addresses
Number Groups
You identify orders, contracts, invoices, and other documents by their order
number or document number. The document number consists of the series code
2-3
followed by a sequential number. In addition, you can use series codes and
series numbers to identify other types of records than documents.
For example, you can use series to identify:
Business partners
Addresses
Purchase contracts
Sales orders
Production orders
Service orders
Warehousing orders
Freight orders
\\ Common \ Tables \ Logistics Tables \ Number Groups (tcmcs0151m000)
Number Groups
Field Description
Number Group The code used to identify the number group.
Series Length Determines the number of characters that can be
defined for the series for the number group.
For example: If you specify a series length of 3 for a
number group, you can specify series of 001, 100,.ABC
etc.
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Field Description
In Use Indicates if the number group is currently being used
and is selected as a parameter setting in one of the
packages. You cannot remove number groups that are
in use, but you can add additional series.
Dedicated for Number groups can be dedicated to a specific use or
package. More than one number group can be
dedicated to the same use.
For example: You can specify number groups PRD and
PRO as dedicated for Production.
First Free Numbers and Series

Orders, documents, and other records are sequentially numbered using the first
free number and the series defined. The First Free Number (tcmcs0150m000)
session is used to define the first available starting number for a series.
You can define alphanumeric series codes of up to 8 characters. The maximum

length of the series code plus the number within the series is 9 characters.
To use the series for a type of document or record, you must assign the number
group to the document type or record type. You can assign a number group to
only one type of document or record.
As the series codes can be alphanumeric, the generated document numbers can
be alphanumeric and they can consist of up to nine characters.
2-5
\\ Common \ Tables \ Logistics Tables \ First Free Numbers

(tcmcs0150m000)
First Free Numbers
Field Description
Series The alphanumeric code representing the series
associated with the Number Group identified.
First Free Number The first number available for use with this series. When
you define a new series you must indicate the first
starting number. Each time an order is generated with
the series, the number is incremented by one.
Cache Size The number of sequential series numbers that can be
generated and reserved for an individual user login. The
system will generate sequential numbers reserved for
the user and hold them until the user logs out, or uses
the number.
For example: If the cache size is 3 for series ADD with a
first free number of 1, the system will hold the numbers
ADD000001, ADD000002, and ADD000003 for the user.
Blocked for Input You can stop the use of a series by indicating it is
blocked. This prevents using that series number for
generating orders or documents.
Business Example
It is determined the number group PRO will be establishes for production orders.
You define the series length of three (3) places. You then define a series of 110
to represent manually created production orders. For the series 110 you also
2-6
specify the First Free Number of 10. When you enter a production order
manually you select series 110. When the data is saved and the production order
number is generated it will be 110000010. The next manually generated number
will be 110000011.
Define First Free Numbers

To coordinate the use of addresses, RAC Manufacturing decided to create the
Series WHS to represent warehouse addresses and PUR for Purchase Office
addresses. By doing so, they will be able to determine the use of an address by
the series defined.
Create the new series WHS and PUR for Number Group 001 Addresses.
\\ Common \ Tables \ Logistics Tables \ First Free Numbers

(tcmcs0150m000)
1. Click the New icon and enter the series WHS.
2. Specify the first free number of 1.
3. Save the record.
4. Click the New icon and enter the series PUR.
5. Specify the first free number of 10.
6. Save the record.
Two new series, WHS and PUR, are now available for use. When a new address
is being created, the series WHS and PUR are available for use.
2-7
First Free Numbers for Number Group 001
Exercise: Define Series

Add a new series to Number Group 001 Addresses. The new series will be used
to generate addresses for Buy from Business Partners.
For Number Group 001 define the series:
Series for Number Group 001

Field Input Value
Series XXS (Replace XX with your initials)
Description Buy From Business Partners
First Free Number 1
Cache Size 0
Blocked for Input No check
2-8
Series XXS Defined
2-9
Units and Base Units

A unit is a way to measure, express, and manage quantities of items. For
instance, a unit can be expressed in meters, inches, or kilograms. There are
several numeric ways a company can express an item. For example, a fabric
company can make fabric in meters, store it in rolls and sell it in linear feet. You
must define all of the units that are allowed so that accurate calculations are
possible. In addition, you must identify the conversion factors between the units
so that conversion from one unit of measure to another is easy to accomplish.
2-10
The Flow: Units and Unit Sets
Start
Define available units

Units
(tcmcs0101m000)
Create Unit Sets to group units

Unit Sets
(tcmcs0106m000)
Set Base Units for company

Base Units
(tcmcs0500m000)
Link Units to Unit Sets

Units by Unit Set
(tcmcs0112m000)
End
Units
You use units to express and manage physical quantities. You must define all the
units used by your company using the Units (tcmcs0101m000) session. Unit Sets
are user-defined and contain as many or as few units as required.
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\\ Common \ Tables \ Logistics Tables \ Units (tcmcs0101m000)
The rounding factor specifies the decimal place you want to round off to when
converting one unit to another. For example, the centimeter (cm) unit has a
rounding factor of 0.1. There are 2.54 centimeters in one inch. Rounded off to the
nearest tenth of an inch, 2.54 becomes 2.5.
Define Units
A new unit of measure is required to represent the shipping crates your company
uses for oversees shipments. The new unit CRT will represent the Crate.
1. Click New and define the new Unit CRT.
2. The physical quantity is Piece and the rounding factor is 1.00000 since you
do not wish to have partial crates
Your new unit CRT has now been defined. You will still require conversions for
this unit and the unit will need to be added to the appropriate Unit Sets before
use.
2-12
Units
Unit Sets
A Unit Set links multiple units to an item. You use a Unit Set to specify which
units you will make use of for Items and Item Groups. A Unit Set lists all available
units that can represent an item. When defining Units by Unit Set, you must list
all units used for the item. For example, Item FAB.0001 uses the Feet unit for
Production. However Item FAB.0001 is purchased by the yard and sold by the
piece. The feet, yard, and piece units must be included in the Unit Set linked to
item FAB.0001. You must also define Unit Sets for engineering and
subcontracting items, equipment, and tools.
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\\ Common \ Tables \ Logistics Tables \ Unit Sets (tcmcs0106m000)
Unit Sets
Field Description
Unit Set The code used to represent the unit set.
Description The description to identify the unit set.
You express quantities of an item in different units depending upon the point of
use. For example, you can produce an item by volume, store it in pallets, and
then sell and invoice it by kilograms. In most cases, manufacturing tools are
managed by the piece.
To use Item Base Units/Inventory Units to measure your inventory, you need to
specify the Base Unit or Inventory Unit for each item. This Unit/Inventory Unit
must be included in the item’s unit set, but it does not need to be one of the
company’s base units.
Define a new Unit Set

Create a new unit set for Electronic items that will link all units used in
conjunction with your electronics items.
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1. Click the New icon to create the Unit Set 002.
2. For the description enter “Electronics Unit Set”
The new unit set 002 is now defined. You can then link units to the Unit set 002
to identify all the units used for electronic items. The unit set can then be linked
to items to link the units to the item.
Unit Sets
Base Units
Base Units are the basic units of measure for all quantities. These units of
measure are used when you convert units of the same physical quantity.
You use the Base Units (tcmcs0100s000) session and the Com Parameters
(tccom5000m000) session to identify your company’s base units of measure. All
conversions from one unit to another are converted based upon the base unit
conversion. For example, a Base Unit for length is meter. To convert from yards
2-15
to feet, a unit will first be converted from yards to meter, and then converted to
feet from meters.
You define base units during the implementation. If you change a Base Unit of
measure, you will have to re-define all items converted to the Base Unit as well.
The system cannot accommodate changing Base Units without redefining the
items. A Base Unit is typically the smallest unit of measure for the system.
\\ Common \ Common Parameters \ Base Units (tcmcs0500m000)

Sub session Base Units (tcmcs0100s000)
Base Units
Field Description
Weight The base weight unit. The units physical quantity type
must be weight.
Length The base length unit. The unit’s physical quantity type
must be length.
Area The base area unit. The unit’s physical quantity type
must be area.
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Field Description
Volume The base volume unit. The unit’s physical quantity type
must be volume.
Time The base time unit. The unit’s physical quantity type
must be time.
Business Example
If the Base Unit for length is one meter, all other length units used are based on
the conversions to meters (as shown below).
1 Meter = 1000 Millimeters
1 Meter = 100 Centimeters
1 Meter = 3.275 Feet
Units by Unit Sets

You group units into categories called Unit Sets in the Units by Unit Sets
(tcmcs0112m000) session. In each Unit Set, you define each category’s unit of
measurement. Specifying Units within Unit Sets makes database management
easier. When you enter new item data, entering the Unit Set simplifies item data
entry by linking all valid for that item associated to the Unit Set. By assigning a
Unit Set to an item, more than one unit of measurement can be used for that
item. Use the Units by Unit Set (tcmcs0112m000) session during implementation
and whenever you need to define a new unit for the Unit Set.
2-17
\\ Common \ Tables \ Logistics Tables \ Units by Unit Set (tcmcs0112m000)
Units by Unit Set
Field Description
Unit The unit of measure.
Inventory Indicates if the unit can be used as an inventory unit of
measure.
Order Management Indicates if the unit can be used within order
management.
Manufacturing Indicates if the unit can be used within manufacturing.
Price Indicates if the unit can be used for price calculations.
Storage Indicates if the unit ca be used as a storage unit.
Only units previously defined in the Unit (tcmcs0101m000) session can be linked
to a Unit Set. Once a unit is in use for an item, the unit cannot be deleted from
the Unit Set. You can only use units linked to the Unit Set applied to the item for
handling that item.
You can define applicable Units for many functions including:
Inventory
Order Management
Manufacturing
2-18
Price
Storage
There are three choices for each field:
Yes: This unit is an applicable unit for inventory, storage, etc.
No: This unit is not applicable for inventory, storage, manufacturing, etc.
Stop: You were once using this unit, but are not using it now.
Define Units by Unit Set

The unit set 002 for Electronic items needs the items available for use defined.
Attach the units for pcs and box to the unit set.
1. Click the New Group icon and enter Unit Set 002.
2. Click the New icon and enter the units pcs and box selecting yes for all the
options for using the item.
The new Unit Set 002 now has two items that you can use when dealing with an
item. You can now assign the Unit Set 002 to an item in the Items – General
(tcibd0501m000) session.
Units by Unit Set
Exercise: Create Units and Unit Sets

Define a new unit set and attach units that will be used for that unit set.
2-19
Unit Set
Field Input Value
Unit Set XX1 (Replace XX with your initials)
Description Purchased Items
Unit Sets
From the Specific menu you can attach units to the unit set, or you can use the
Units by Unit Set (tcmcs0112m000) session
Unit 1
Field Input Value
Unit Pcs
2-20
Unit 2
Field Input Value
Unit box
Unit 3
Field Input Value
Unit Plt
The unit set XX1 now has 3 units assigned to the Unit Set. You can now apply
the Unit Set to a new item. You can enter pcs, box, or plt for the unit of measure
for the item in all modules and packages.
Units by Unit Set
2-21
Item Groups
Item Groups enable you to manage like items or items with similar
characteristics, classifications, or uses together. This makes handling these
groups of items easier.
An item group, along with the item type can be used to specify default
information for item data and is also used for integrations mapping.
Inventory Valuation Methods are linked to Item Groups, but the use of Inventory
Valuation Groups and Warehouse Valuation Groups provide more flexibility for
Inventory Valuation methods at the warehouse level.
\\ Common \ Tables \ Logistics Tables \ Item Groups (tcmcs0123m000)
Item Groups
Field Description
Currency The default currency used to calculate the cost price for
items associated with this item group.
2-22
Field Description
Costs to be Specified If checked you can enter the costs for the item attached
to this item group, manually when you use the Matched
Purchase Invoice/Statement Line Transactions
(ttfacp1133s000)
Business Example
RAC Manufacturing produces office furniture. One of the product lines, office
chairs, contains a number of items. By creating an Item Group, 420 Office Chairs
and specifying the new item group when an item is created enables all the office
chairs to be handled in the same manner.
2-23
Inventory Valuation Methods

The Inventory Valuation Method is a formula used to calculate the value of
inventory. The inventory is valued at either a fixed price or an actual receipt price.
Over time, the value of inventory can change and the current value may differ
from the original price. There are five methods for calculating Inventory Valuation
for inventory:
Fixed Transfer Price (FTP)
First In First Out (FIFO)
Last In First Out (LIFO)
Lot Price (Lot)
Moving Average Unit Cost (MAUC)
Inventory valuation methods are linked to Item Groups and enable you to
determine the manner that inventory is valued.
You can either specify the valuation method by Warehouse Valuation Group or
Item Valuation Group. This process provides more flexibility for assigning
Valuation Methods by warehouse for items. The combination of Item Valuation
Group and Warehouse Valuation Group determines the default Inventory
Valuation Method for the item and warehouse combination specified in the
Warehouse – Item (whwmd2110s000) session. The value of inbound and
outbound quantities are calculated based on the Inventory Valuation Method
defined.
Warehouse Valuation Group

For valuation purposes you can create a Warehouse Valuation Group to group
warehouses together. To use the Valuation Group, link the Warehouse Valuation
Group to the warehouses you wish to include in the new group. Warehouse
Valuation Groups are then linked to an Inventory Valuation Method to valuate the
items in the warehouses associate to the Warehouse Valuation Group.
Item Valuation Group.
Items can be grouped together through the use of an Item Valuation Group. You
can define an Item Valuation Group and link the group to the items to include in
the Warehouse Valuation Group. Item Valuation Groups and Warehouse
Valuation Groups are linked, for example, to Inventory Valuation Methods to
value the inventory for the items linked to the Inventory Valuation Group.
2-24
\\ Warehouse Management \ Warehouse Master Data \ Miscellaneous \

Inventory Valuation Methods (whina1100m000)
Inventory Valuation Method
Field Description
Warehouse Valuation If you group warehouses together you can also assign a
Group valuation method to the warehouse valuation group. If
no warehouse valuation group is defined, the inventory
valuation methods are general use.
Item Valuation Group Items can be linked to an Item Valuation Group to
assign an Inventory Valuation Method to the items
belonging to the valuation group.
Inventory Valuation Method The valuation method when lot prices are registered for
Lot Price Used the item.
Inventory Valuation Method For all items not lot controlled, the valuation method to
Remaining apply to those items.
Create an Item Group and Valuation Group

The office chairs RAC Manufacturing produces are stored in two main
warehouses 001 and 002. The inventory in these warehouses is valued on a
Fixed Transfer Price (FTP) valuation method. By creating a Warehouse Valuation
Group, and applying that group to the Warehouse, the inventory in the
warehouse can be FTP calculated.
\\ Common \ Tables | Logistics Tables \ Item Groups tcmcs0123m000)

Create Item group 420 Office Chairs.
2-25
1. Click the New icon and enter 420 Office Chairs.
Item Groups
Exercise: Create an Item Group

Define a new Item group that can be assigned to new items.
Create Item Group 500 called Materials – Raw Materials.
Item Group 500

Field Input Value
Item Group 500
Description Materials – Raw Materials
Currency EUR
The new item group can new be used to establish item defaults or item data.
2-26
Exercise: Determine the Inventory Valuation Method.

Determine which inventory valuation method is being used for item group 500.
There is no Warehouse Valuation Group or Item Valuation Group assigned, so

by default what Valuation Method is applied for items in item group 500?
_____________________________________________________________
Inventory Valuation Methods
Change Valuation Method

The option also exists to change the valuation method for inventory already
associated with a valuation method.
You can change the valuation method for an item or a range of items. You can
change the valuation method on a range of methods based on:
Item Type
Item Valuation Group
Warehouse Valuation Group
Warehouse
2-27
\\ Warehouse Management\ Inventory Analysis \ Revaluation \ Change

Valuation Method (whina1232m000)
Change Valuation Method (Selection tab)
Field Description
Lot Price (group box) Determines the action to take for valuation of lot price
items.
No Changes: Do not change Lot price items
Change No to Yes: Convert non-lot items to lot.
Change Yes to No: convert lot items to non-lot.
Old Valuation Method The old valuation method that will be replaced for the
item within the selection range. You will only change the
valuation for items with this valuation method within the
selection range.
New Valuation Method Lot The new valuation method for items with Lot Pricing in
Price Used effect.
New Valuation Method New valuation method for items that are not lot prices.
Remaining
2-28
Field Description
Update Defaults in If checked, the inventory valuation methods specified in
Inventory Valuation the Inventory Valuation Methods (whina1100m000)
Methods session will be changed as well.
Change Valuation Method (Options tab)
Field Description
Lot Price (if already When defining new valuation methods for lot items, you
present) determine the type of lot price to use for the new
inventory value.
Prices Used for Not Indicates what price to use for itmes associated with an
Approved Invoices (group invoice that has not yet been approved.
box)
Business Example
There are inventory items in Warehouse 500 currently valued using a First in
First Out (FIFO) method. The items in the warehouse are linked to Item
Valuation Group 120 Electronic Components or 140 Computer Components. The
2-29
inventory is to be changed to the inventory valuation method Fixed Transfer Price

(FTP) for items in Item Valuation Group 120. Using the Change Valuation
Method (whina1232m000) session, the change from FIFO to FTP for the
Inventory Valuation method can be accomplished by selecting the Item Valuation
Group 120 for the range and specifying the new FTP valuation method. The
system calculates the new Inventory Valuation for the items that are in
Warehouse 500 and linked to Item Valuation Group 120.
2-30
Entities
Entities are the logistical departments, warehouses, and work centers as well as
the financial offices that comprise your organization.
Departments
Departments represent a company organizational unit that carries out a specific
task or function. Departments can be assigned number groups as defaults for
orders issued from the entity. The enterprise unit linked to the department
determines the financial company the financial transactions generated in the
department are posted in. Departments can be:
Sales office
Purchase office
Service department
Work center
Shipping office
Accounting office
A company can define multiple departments or each type within one logistical or
financial company. There must be at least one department defined of each type if
transactions of that type are to be performed in the company. For example: if
sales orders are used in the logistical company, there must be at least one Sales
Office defined. If production orders are used, then at least one Work Center must
be defined.
2-31
\\ Common\Tables\Logistics Tables\ Departments (tcmcs0565m000)
Departments
2-32
Field Description
Department Type Identifies the function and use of the department and the
type of transactions it will handle.
Sales office: manages sales relations with a
business partner and is responsible for sales
activities for the organization.
Purchase office: manages purchase relations with
a business partner and is responsible for purchase
activities for the organization
Service department: manages service relations
with a business partner and is responsible for
service and maintenance activities for the
organization
Work center: an entity consisting of one or more
people or machines with like capabilities, that can
be considered a single unit for capacity and
scheduling purposes.
Shipping office: responsible for the organization of
transportation for one or more warehouses. Used in
the Freight Management package.
Accounting office: used by a financial company to
register and receive business partner financial data.
Address The address where the department is physically located.
Calendar Code The calendar used for availability of the department. By
default the company central calendar is used if none is
specified.
Enterprise Unit The enterprise unit identifies the financial company to
post financial transactions from orders within this entity.
Also used to group departments together for logistical
purposes.
Define a Department
A new Purchase office has opened in Grand Rapids Michigan. Create a new
Department to represent the new purchase office.
\\ Common\Tables\Logistics Tables\ Departments (tcmcs0565m000)

1. Click the New icon.
2. Enter the Department Code PGR with a description of Purch. Office Grand
Rapids
2-33
3. Enter the department type Purchase Office.
4. Enter ADD0000045 for the Address and use Enterprise Unit 1.
The new department record is created for the Purchase Office PGR.
Departments Entry Result
Exercise: Define Departments

The departments will be used to represent the various locations where logistical
and financial transactions will be coordinated. You will define your own
departments to represent your organization
Define new departments to represent a Sales Office for sales transactions, a

Purchase Office for purchasing, and a Work Center for shop floor transactions.
Create the new departments
2-34
Department XXPUR
Field Input Value
Department XXPUR (Replace XX with your initials)
Description Purchase Office
Department Type Purchase Office
Address Select one from list
Enterprise Unit 1
Department XXSLS
Field Input Value
Department XXSLS (Replace XX with your initials)
Description Sales Office
Department Type Sales Office
Enterprise Unit 1
Department XXWRK
Field Input Value
Department XXWRK (Replace XX with your initials)
Description Work Center
Department Type Work Center
Enterprise Unit 1
2-35
Departments
Warehouses
Warehouses are used to represent goods storage areas. Optionally, you can
specify that a warehouse is divided into zones and locations.
Typically purchased and produced items are stored in a warehouse. Goods are
then retrieved from a warehouse when demand from production, sales, service,
project, or transport places a requirement for the goods.
The warehouse is also and entity. You define the warehouse first in the
Warehouses (tcmcs0503m00) session, then it is displayed in the Warehouses
(tcemm1112m000) session as an entity.
2-36
\\ Common \ Tables \ Logistic Tables \ Warehouses (tcmcs0503m000)
Warehouses
Field Description
Enterprise Unit The enterprise unit this entity is linked to. The Enterprise
Unit determines where financial transactions resulting
from logistics transactions in this warehouse are posted.
The Enterprise unit enables grouping entities together.
2-37
Field Description
Warehouse Type Indicates the purpose for which you will use the
warehouse. The type also determines the functionality
the warehouse exhibits in the application. The available
types are:
Normal
Shop Floor
Project
Service
Service Customer Owned
Service Reject
Consignment (owned)
Consignment (not owned)
Define a warehouse
Define a warehouse for finished goods for your organization. The new
warehouse will be a normal warehouse.
\\ Common \ Tables \ Logistic Tables \ Warehouses (tcmcs0503m000)

1. Click the New icon and define warehouse 100 as a Normal warehouse type.
2. Enter a description and link the warehouse to Enterprise Unit 1.
The new record for the warehouse entity 100 is now created. The warehouse
type is normal and the enterprise unit is 1.
2-38
Warehouse Record Created
Exercise: Create a Warehouse

Define a new finished goods warehouse XXFIN to store your goods.
Warehouse XXFIN
Field Input Value
Warehouse XXFIN (Replace XX with your initials)
Description Finished Goods
Address Code Select one
Enterprise Unit 1
Address Type Normal
2-39
The new warehouse entry should display similar to the screen display.
Warehouses New Record Result
2-40
Countries
Countries are the national states where suppliers and customers are located. For
each country you can define the country code, international dialing, telex, and fax
codes. The country information is part of the data that must be defined for set up
of tax reporting. You can specify if tax is required.
By country code, you can group and select items according to the country of
origin. The country code can be applied to Business Partners, Addresses, and
items. The information such as address format and language default from the
country to other records when the country is identified.
2-41
\\ Common \ Tables \ Logistics Tables \ Countries (tcmcs0110s000)
Countries
Field Description
ISO Code The international country code.
Address Format IF address formats are to be used for addresses
associated with this country, you specify the default
address format to apply to new addresses.
Time Zone Default time zone for delivery and shipments with this
country.
2-42
Languages
The languages are defined to determine document print defaults. When the
corresponding installed (system) language is available in the database, the
documents will be printed in the specified language.
Each language used by a company must be defined. To define a language

specify:
A language code
A description
The language number of the corresponding system language.
\\ Common \ Tables \ Logistics Tables \ Languages (tcmcs0146m000)
Languages
Business Example
The installed system is an English version of ERP ln and you are installing French
as a second language. For each Language defined, you can specify the System
Language (French or English) you wish to display the documents.
2-43
Lesson Review
In this lesson you have learned how to:
Create Item Groups
Define Countries
2-44
Review Questions
1. Number Groups can only be used for generating Business Partners,
Addresses, and Contacts
A. True
B. False
2. A Unit can belong to multiple Unit Sets.
A. True
B. False
3. You can either specify the valuation method by Warehouse Valuation Group
or Item Valuation Group.
A. True
B. False
2-45
1. False (Number Groups are used to identify all the document and serialized
code generations for orders, documents, business partners, addresses, etc)
2. True (A unit can belong to a number of unit sets)
3. True
2-46
3
Financial Master Data
Financial master data establishes base data in your company for financial
transactions to occur. The information is important because once defined, it
forms the basis for all transactions. If set up incorrectly financial master data
such as Financial Integrations can seriously affect the performance and accuracy
of the financial data in the system.
Lesson Objectives
Identify the Reconciliation process
3-1
Tax Codes
A tax code is a code that identifies the tax rate and determines how the software
calculates and registers tax amounts. These codes are maintained in the Tax
Codes (tcmcs0137m000) session. You can define the details of each tax code
per country in the Tax Codes by Country (tcmcs0536m000) session.
You use tax codes to specify, for each type of tax:
The tax rates in each country
The way the tax must be calculated
The tax authority to which the tax must be paid
The ledger accounts to which the tax amounts must be posted
Tax Codes by Country

The Tax Codes by Country (tcmcs0536m000) session is used to list the tax
codes linked to each country. You can maintain the tax code details in the Tax
Codes by Country (tcmcs0136s000) session.
// Common / Tables / Taxes / Tax Codes by Country (tcmcs0536m000)

Sub-session: Tax Codes by Country (tcms0136s000)
Tax Codes by Country
3-2
3 Financial Master Data
Field Description
Kind of Tax The kind of tax for which the tax code is defined. This field
can have the following values:
Vat: Regular value added tax (VAT) on sales and
purchases
Investment Charge: A shifted expensed purchase tax that
is applied on investment amounts on purchase invoices in
Norway.
Stamp Tax: A type of tax that is imposed on legal
documents.
Tax Type The tax type can be:
Normal: The tax amount is added to the net amount which
results in the gross amount on invoices.
Shifted: The tax amount is not added to the net amount. The
tax amount is posted to a tax account.
On Payments: The tax is paid in the same way as normal tax,
but only becomes reclaimable or payable after the invoice has
been paid. The tax is posted to an interim account and will
only be transferred to the real tax account when the invoice is
paid.
Singular Tax (check If this check box is selected, the tax code refers to a single tax
box) percentage. One tax amount is calculated on the basis of one
percentage and posted to one tax ledger account.
3-3
Financial Tables
Financial tables contain the common financial data that, once defined, is used
throughout the system. The Financial tables store data regarding financial
common data.
Credit Ratings
Credit Ratings are used to established predefined a status that can be assigned
to a business partner indicating their credit worthiness. This credit rating can be
useful in determining if a business partner is a risk for doing business. The
available credit ratings are maintained in the Credit Ratings (tcmcs0164s000)
session. You assign the credit rating to an Invoice-to Business partner. The credit
rating can determine the action to take when a sales order is processed and at
what point the credit check is repeated.
\\ Common \ Tables \ Financial Tables \ Credit Ratings (tcmcs0564m000)

Sub-session: Credit Ratings (tcmcs0164s000)
Credit Ratings
3-4
Field Description
Action The action to be taken for the Credit Rating. The options
are:
Always Hold (credit)
Never Hold (credit)
Check Credit
Always Hold (Overdue Invoice)
Sales Order Entry (check If this check box is selected, credit checking is
box) performed during sales order entry and any subsequent
processing of the sales order
Release to Warehousing If this check box is selected, phase 2 credit checking is
(check box) performed when you release orders to Warehouse
Management.
Confirm Shipment (check If this check box is selected, phase 3 credit checking is
box) performed when you confirm the shipment in
Warehouse Management.
Business Example
A Business Partner is assigned a credit rating of D (Poor) because of problems
with the customer paying invoices in a timely manner. When a sales order is
placed for that business partner, the credit rating of D (Poor) may indicate that
business partner is not eligible for a 30 day terms of payment and must pay
immediately before the goods are shipped.
Define a Credit Rating

Create a new Credit Rating A1 that will be used as a default for all new business
partners and as a default for sales orders. Once defined, set the new Credit
Rating as the default.
Insert a new record for Credit Rating A1 and indicate the Action is Credit Check.
You will check the credit only before Release To Warehousing to ensure the
goods are not shipped until Credit is approved.
1. Click New and enter the new Credit Rating A1.
3-5
Credit Ratings
Indicate the new Credit Rating is the default Credit Rating in the Sales Order
Parameters (tdsls0100s400) session.
2. Change the parameters for Pre-Defined Credit Rating Code to A1
3-6
Sales Order Parameters
When a Business Partner is created, the Credit Rating A1 will default to the
Invoice to Business Partner record and will also default to the Sales Order when
created.
Currencies
A company’s currencies are first defined as generic units in the Generic Units
(ttaad1106m000) session. Next you can maintain the currencies in the
Currencies (tcmcs0102m000) session.
3-7
\\ Common \ Tables \ Financial Tables \ Currencies (tcmcs0102m000)
Currencies
Field Description
Short Description The international currency-indication for the monetary
unit. For example, USD for American dollars or DM for
Deutschmark.
Rounding Factor Indicates how entered and calculated quantities
expressed in this unit are rounded off. For example, if
the rounding factor is 5, rounding is to the nearest
multiple of 5. The rounding factor must have the same
number of decimals or less than specified for the
currency in the Formats by Generic Unit
(ttaad1107m000) session.
EMU Currency (check box) If the currency is part of the Economic and Monetary
Union (EMU) you must select this check box.
3-8
Field Description
Belgian BoP Currency If the currency is to be defined as Belgian Balance of
(check box) Payments reporting currency, you must select this check
box.
Invoicing Methods
Invoicing methods specify the terms of invoicing regarding orders. If you do not
use the Project or Service modules, leave the fields from those tabs with the
default values.
Invoicing methods are maintained in the Invoicing Methods (tcmcs0155s000)

session. Select the check boxes to specify which collective invoices must be
issued. The check boxes also specify that collective invoices are to be issued. If
you collect orders, one invoice is issued for more than one order. The orders are
individually specified on the invoice.
These check boxes combined with the Print Order Lines selection enable you to
print four types of sales invoices:
Collective and net invoices
Non-collective and net invoices
Collective and gross invoices
Non-collective and gross invoices
3-9
\\ Common \ Tables \ Financial Tables \ Invoicing Methods

(tcmcs0555m000)
Sub-session: Invoicing Methods (tcmcs0155s000)
Invoicing Methods
Define an Invoicing Method

Define an invoicing method for installment sales invoices
Invoicing Methods (tcmcs0555m000)

Sub-session: Invoicing Methods (General tab) (tcmcs0155s000)
Field Input Value
Invoicing Method 001
Description Sales Installments
Line Item Code Only
Discount Gross
Tax Codes √
Department √
Sales Representatives √
Areas √
Sold-to Addresses √
3-10
Invoicing Methods (tcmcs0555m000)

Sub-session: Invoicing Methods (Order/Warehouse/Freight Management
tab) (tcmcs0155s000)
Field Input Value
Collect Sales Orders √
Purchase Types
The Purchase Types (tcmcs2101m000) session is used to define Purchase
Types. A Purchase Type is a purchase order property that enables you to
identify the kind of purchase made and the kind of payable. This is used to post
the purchase to the correct Accounts Payable account when the invoice is
created. You must define at least one Purchase Type that will then be used as
the default Purchase Type for the Business Partner group in Accounts Payable.
\\ Common \ Tables \ Financial Tables \ Purchase Types (tcmcs2101m000)
Purchase Types
3-11
Sales Types
The Sales Types (tcmcs2102m000) session is used to define Sales Types. A
Sales Type is a sales order property that allows you to identify the kind of sale
made and the kind of receivable. This is used to post the sales to the correct
Accounts Receivable account when the invoice is created. You must define at
least one Sales Type that will then be used as the default Sales Type for the
Business Partner Group in the Accounts Receivable module.
\\ Common \ Tables \ Financial Tables \ Sales Types (tcmcs2102m000)
Sales Types
Define a Sales Type

Define a sales type 111 for miscellaneous sales.
Sales Types (tcmcs2102m000)

Field Input Value
Sales Type 111
Description Miscellaneous Sales
3-12
Financial Integrations
Financial Integrations are important for recording financial transactions resulting
from logistical transactions that take place within the applications. Financial
integrations allow you to coordinate the financial transactions in a logical
structure.

The Initialize Mapping Scheme Data (tcfin0210m000) session generates the
integration document types and retrieves the business objects and integration
elements required for the packages and modules that are selected in the
Implemented Software Components (tccom0500m000) session.
// Common / Financial Integrations / Initialize Mapping Scheme Data

(tcfin0210m000)
3-13
Integration Document Types

An integration document type represents an integration transaction type in ERP
LN Financials for the mapping and posting of the integration transactions and for
the reconciliation process.
The non-financial ERP LN packages are collectively referred to as Operations

Management. In Operations Management, each integration transaction is
represented by its combination of operational transaction origin and financial
transaction (in technical terms, the 'tror/fitr' combination). For example, Sales
Order/Issue.
Integration document types can be viewed in the Integration Document Type by

Transaction Origin/Financial Transaction (tcfin0110m000) session.
// Common / Financial Integrations / Integration Document Type by

Transaction Origin/Financial Transaction (tcfin0110m000)
Integration Document Type by Transaction Origin/Financial Transaction
Reconciliation
The reconciliation process matches the financial transactions to the related
logistic transaction data in order to check whether the financial postings are
correct and complete and to correct any detected differences. The way in which
3-14
the mapping scheme is set up also partly determines the extend to which
reconciliation is possible. The features of the mapping scheme that support
extensive reconciliation are:
Consistent mapping of debit and credit transactions on a ledger account.
Consistent usage of the currency exchange rate type for the related debit and
credit transactions on a ledger account.
Separation of currency results from the actual integration transactions.
Improved handling of the rounding of quantities and the conversion of units.
Improved handling of the rounding of amounts.
Preservation of the link between a financial transaction and the originating

logistic transaction.
Reconciliation group
A reconciliation group is used to group related integration transactions for
reconciliation purposes. Every integration document type belongs to a
reconciliation group. For example, the Purchase Order/Receipt and the
Purchase Order/Price Variance integration document types both belong to the
same reconciliation group (reconciliation group Invoice Accrual 3).
3-15
Lesson Review
In this lesson, you learned how to:
Identify the Reconciliation process
3-16
Review Questions
1. To specify which ledger accounts are to be used for posting tax amounts you
can use:
A. Tax Authorities
B. Tax Rates
C. Tax Codes
D. Tax Accounts
2. All of the following are actions that are available for a Credit Rating EXCEPT:
A. Always Hold
B. Sometimes Hold
C. Never Hold
D. Check Credit
3. Defining a Sales or Purchase type is optional.
A. True
B. False
4. Integration document types are generated in which session?
A. Integration Document Type by Transaction Origin/Financial Transaction
B. Initialize Mapping Scheme Data
C. Mapping Scheme
D. Integration Parameters
3-17

The answers to the review questions are:
1. C (Tax Codes)
2. B (There is no Sometimes Hold option)
3. B (You must have at least one Sales type and Purchase Type if you will be
using the Sales and Purchase modules)
4. B (The Initialize Mapping Scheme Data)
3-18
4
Item Base Data
Item data is used in almost every package in the application. Item base data
enables defining item information in a central location that can be accessed and
applied to the other packages and modules.
Lesson Objectives
Set up conversion factors for items.
Establish item default data.
Define general item data.
Identify the various item types.
Define sub entity item information.
Introduce Unit Effectivity
Define Alternative Items
4-1
Conversion Factors
Conversion Factors define the ratio between different units of measure. The
conversion factors enable you to handle an item using several units of measure.
There are two types of conversion factors
General conversion factors
Item Dependent conversion factors.
General conversion factors define the conversion ratio for units of the same
physical type.
Item dependent Conversion factors are defined by Item or by Item Group and
only apply to the specific item, or to the items associated to the Item Group with
the conversion factor. You can define conversion factor ratios for units
expressed in different Physical quantities using the Item and Item Group
conversion factors.
A Conversion Factor is the multiplication element used to convert an alternative

unit to the Base Unit. For example, you may purchase sheet metal by the roll, but
you may sell it as a finished piece. Therefore, you must use conversion factors to
convert the physical quantity measurements of the roll and piece. You define the
relationship between the Alternative Unit and the Base Unit. You can add
Alternative Units whenever you need them. There are three levels for item
conversion:
Item
Item Group
General
4-2
4 Item Base Data
Conversion Factor Levels

A hierarchical system is employed to determine which conversion factor to use
for an item. The most specific conversion factor defined has the highest priority,
and the system searches from the most specific to the most general level of
conversion as follows:
The conversion factor defined for the item.
The conversion factor defined for the item group.
The general conversion factor, which is used if the units are of the same physical
type and the conversions are standard or always true (such as weight to weight,
volume to volume, etc.). Physical Types include weight, length, area, volume,
and time.
\\ Common \ Item Base Data \ Conversion Factors \ Conversion Factors

(tcibd0103m000)
Conversion Factors
4-3
Field Description
Item The conversion can be specified on three levels
Item level
Item Group level
General Level
If you will be specifying an item level conversion, enter
the item code for the item you will be defining the
conversion.
Item Group IF the conversion will apply to a specific item group, and
thus all items in the item group, define the item group for
the conversion.
Base Unit The base unit the conversions apply. The base unit is
the general level conversion. There will be conversions
for all units at a general level conversion at the
minimum.
Unit The unit you are defining the conversion for between the
base unit.
Conversion factor The number of base units that comprise a single Unit.
Example: If the base unit is pcs, and the Unit is box. The
conversion factor of 24 indicates 24 pcs are equivalent
to one box.
Raise 10 to the Power When dealing with large numbers, use the power of ten
to shorten the number for clarity.
For example: The conversion factor is 12 and the Raise
to the Power is 3, the actual conversion factor is 12000.
Inverse Value The reverse conversion factor. The number of
alternative units in one base unit.
Define Conversion Factor

A conversion factor for Item Group 500 (Materials) will be created to specify the
conversions for raw materials and fabrics. The new conversion factor will specify
the Conversion of Square Meters (m2) to Rolls (rll) that will be consistent for all
items within the item Group 500.
\\ Common \ Item Base Data \ Conversion Factors \ Conversion Factors

(tcibd0103m000)
1. Click the New Group icon to create the new record and enter Item Group
500.
2. Save the record.
4-4
4 Item Base Data
3. Click the New icon and enter the Conversion factor specifying 125 m2 will be
equal to 1 rll
The conversion factors for Item Group 500 now exist. When an item assigned
with Item Group 500 is converted, the system will check the conversion factor for
m2 to rll. If the item were to be converted from m2 to pcs, then general level
conversion factor would be used, not the conversion factor at the Item Group
level since there a conversion from m2 to pcs is not defined at this level.
Conversion Factors for Item Group 500
Exercise: Define a Conversion Factor

Item PUR_1C is handled by the unit pcs. You wish to ship this item by the unit
box. Create an item specific conversion factor for the item PUR_1C (Purchased
Conversion Item) to convert pieces to boxes for that item. Specify that 24 pcs of
item PUR_1C can be contained in one box.
Item PUR_1C Conversion Factor

Field Input Value
Item PUR_1C
Item Group Leave blank
Base Unit Pcs
Unit Box
Conversion Factor 24
4-5
Conversion Factors
4-6
4 Item Base Data
Item Default Data

Item default data enables you to predefine data by item type and item group to
assist in data entry. Item data entry can become a labor intensive task with the
multitude of data to enter to create an item. By defining item default data, you
can reduce the risk of data entry error and expedite the creation of an item.
The Items – General Defaults (tcibd0502m000) session is very similar to the

Items – General (tcibd0501m000) session. You specify by Item Group and Item
Type combination a unique set of default information. This data will default when
creating a new item in the Items – General (tcibd0501m000) session when an
Item Type and Item Group are entered for the new item and there is a
corresponding record in the Items – General Defaults (tcibd0502m000) session
with the same Item Type and Item Group.
4-7
\\ Common \ Item Base Data \ Item Defaults \ Items - General Defaults

(tcibd0502m000)
Item – General Defaults (Item Data I tab)
Field Description
Item Type Specifies the Item Type the defaulted defined will apply
against. The item type and item group specify the
unique combination to which the defaults apply.
Item Group Specifies the Item Group the defaulted defined will apply
against. The item type and item group specify the
unique combination to which the defaults apply.
Item Type Specification The default item type that will be defined in the General
Item Data when the Item Type and Item Group are
entered.
4-8
4 Item Base Data
Field Description
Unit Set The default Unit Set that will apply to all items with the
same Item Type and Item Group combination defined in
the Item – General Defaults (tcibd0502m000) session.
Item – General Defaults (Sub entities tab)
Field Description
Zoom to item defaults Provides access to the sub entity details sessions where
session (group box) you can define default sub entity data for the item type
and item group combination. These sub entity sessions
can also be accessed directly from the respective
module. For example; Sales data can also be accessed
from the menu in the Sales Master Data module.
4-9
Field Description
Use Item Defaults When the data in the sub entity sessions is defined, you
can indicate if the information is to be included as
default information for this Item Type and Item Group
combination. If the check box is selected, the item
defaults for that sub entity session are included.
You can also include item sub-entity information as defaults or you can leave the
sub-entity information for entry in the corresponding module. It is user defined
and can be as specific or general as you require.
Define Item Default Data

The Item – General Default data enables faster and more accurate data entry for
General Item data. Define default data for the Item Type Purchased and the Item
Group 500.
\\ Common \ Item Base Data \ Item Defaults \ Items – General Defaults

(tcibd0502m000)
1. Click New and enter Item Type Purchased and Item Group 500.
2. Enter the default information you wish to define.
3. Save the record.
4-10
4 Item Base Data
Item -General Defaults
Apply Item Default Data to Item

To see how item default data is applied, create a new item in the Items General
(tcibd0501m000) session. When the Item Group and Item Type are entered for
the new record, the system checks for default data. If default data exists for the
Item Group and Item Type specified in the Item data, the default information is
inserted into the Items General (tcibd0501m000) session.
\\ Common \ Item Base Data \ Items General (tcibd0501m000)

Create a new item entry.
1. Click New and insert the item code PUR_TST1 with a Description Item
Defaults
2. Enter Item Type Purchased and Item Group 500.
3. Hit the tab key once the Item Group 500 is entered.
4-11
The default information from the Item – General Defaults (tcibd0502m000)

session for the Item Type Purchased and the Item Group 500 are defaulted to
the new item record. Notice the unit set and Inventory Unit are populated with the
default information.
Item – General Default Values
4-12
4 Item Base Data
General Item Data

General Item Data is contains item data common across multiple packages and
modules. This enables you to define item data in the Common package, and
apply that data in various point of use packages for an item.
Before you can define General Item Data you must define the Common
Parameters, Item Groups, Base Units, and Unit Sets. This ensures adequate
base data is available for defining the item.
Item Type
The item type identifies how the item is used within the system and determines
how the item can be handled. T
The item types available when creating a new item are:
Purchased
Manufactured
Cost
Service
Generic
Subcontracting
List
For Common data we will only discuss setup of Manufactured and Purchased
Items.
Purchased Items
Purchased items are typically purchased from an outside source. A purchased
item can also have a Bill of Material and a Routing linked to it.
Manufactured Items
The items of this type can be manufactured end items or subassemblies. A
manufactured item is typically associated with a Bill of Material and a Routing
describing the components to assemble the item and the manner in which it is
assembled. Manufactured items are also referred to as production items and can
also be purchased.
4-13
Cost Items
Cost items, also called expense items, are used for administrative purposes and
to post additional costs to and order. An example of extra costs are accounting
expenses and freight expenses. Cost items are not used in production and are
not held in inventory.
Service Items
Service items are standard items that are used to represent services instead of
physical items. These items are used in the Services module.
Generic Items
An generic item is an item that exhibits multiple product variants. Before
manufacturing of a generic item can occur, the item must be defined with all the
product variants. For example: an electric drill may have three power options
(battery, 12 V, or 220V) and two color options (blue and gray). The desired
options need to be defined before manufacturing.
Subcontracting Items
An auxiliary item code used to record subcontracting operations. These items are
also used for administrative item costs. Subcontracting Items are non-physical
items used to record subcontracting costs.
List Items
List items consist of multiple components. The components can be managed and
ordered separately The list item type (kit, menu, option, or accessory) determines
how the components are related to the list item and how they can be ordered.
List items are used to facilitate order entry (purchase and sales) and are not used
to configure items for manufacturing.
Item –General Data

Defining an item requires entering the basic information common among all
packages. This information establishes the item in the database. Further
information can be defined based on the use of the item.
4-14
4 Item Base Data
\\ Common \ Item Base Data \ Item Data \ Items – General (tcibd0501m000)
Items –General (Item Data I tab)
Field Description
Item The first field is the Project field. This field is used to
identify the project. The Project and Item combined
make the item code. Enter the Item code in the second
field.
Item Type Items are classified by type to indicate the use of the
item. The available functions for that item depend on the
time type. The Item sub entities that you can define also
depend on the item type
Item Group Every item ins assigned to an item group. The item
group is used to group items with similar characteristics.
The item group is used in combination with the item type
to establish item defaults.
4-15
Field Description
Unit Set The unit set determines the units that are available for
use with the item.
Inventory Unit The unit that the item will have inventory recorded.
You can only enter the inventory unit for items of the
type:
Purchased
Manufactured
Generic
The Item Data II tab determines if lot control is used and what type of lot tracking
will be applied to the item. The two options are Lot Controlled and Serialized. Lot
Controlled indicates a group of items will be assigned the same number, such as
in batch processes. A Serialized lot tracking will generate a single tracking
number per item.
4-16
4 Item Base Data
Items – General (Item Data II tab)
Field Description
Lot Controlled If checked you will use lot numbers in conjunction with
this item.
Serialized If checked this item will use serialized number
generation for tracking each unit.
The Grouping Data tab provides reporting, categorizing, and additional details on
the item data. This enables grouping items and reporting based on criteria you
choose to record on the various items.
4-17
Items – General (Grouping Data tab)
Field Description
Manufacturer The supplier of finished goods. This is used for sorting
and grouping purposes.
Technical Coordinator An employee responsible for the technical specifications
and requirements of the item. Also responsible for
information for the Warehouse Management module.
Cost Component For Cost items, you must specify the cost component
used for this item.
4-18
4 Item Base Data
Item Sub Entity Data

Sub entity data relates to module specific data for the Item. This information
determines how an item is handled in the respective module or package. You
can either define Sub entity information from the Sub Entity tab by direct access
to sub entity sessions, or you can define the item sub entity information in the
respective module. An item must have the sub entity information/module specific
information defined before the item can be used in that module. For example:
Until you define Item Sales Data, you cannot enter an item on a sales order, and
Until you define the Items – Production Data you cannot enter a BOM or a
production order for the item, even in the Item – General (tcibd0101s000)
session data is present.
The mandatory sub entity information for an item depends on the item type and
the transactions processed against the item. For example, an item of the item
type Cost item, will need the Costing sub entity information defined. An item of
the type Purchased requires the Purchasing, Warehousing, and Costing sub
entity information defined in order to be usable for purchase and warehouse
transactions.
You can only maintain sub entity information for an item after the item exists in
the Item – General (tcibd0101s000) session
Item Sales Data

The sales related information for the item is maintained in the Item Sales sub
entity session. You can maintain data such as the ordering date, pricing
information, and the procedure for over deliveries.
4-19
\\ Order Management \ Sales \ Sales Master Data \ Sales Item Data \ Item –
Sales (tdisa0501m000)
Items- Sales (Ordering tab)
Field Description
Sales Unit The default unit which is used for the sale of the item.
Commitment Policy Enables you to specify if the ordered quantity for the
item is allocated to the order during order entry. The
values are:
No: default value – indicates no commitments for the
item.
Order Line Entry: The inventory is committed to the
order during the line entry.
Batch: The commitment is not made until the Generate
Inventory Commitment (whinp2200m000) session is
executed.
Manual: The order quantity is manually committed.
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4 Item Base Data
Field Description
Minimum Order Quantity Indicates the lowest quantity allowable for order.
Direct Delivery From You will drop ship the item to the customer from your
supplier from the quantity specified and above.
Release to Warehouse If checked, the issuing of the item is performed in the
Warehouse Management module. If it is unchecked, the
issuing of the item will occur in the Sales Control
module.
Warehouse The default warehouse the item is issued from for sales
orders.
Item – Sales (Price tab)
Field Description
Sales Price Unit The unit of measure the sales price is based on.
Sales Price The standard price charged for the sale of the item in
the reference currency.
4-21
Item – Sales (Over Deliveries tab)
Field Description
Allow Over Deliveries If checked, you will allow shipments for the item in
excess of the ordered quantity on the sales order.
Tolerance Type Indicates what type of over delivery is acceptable.
Values are:
No: Over deliveries are not allowed
Percentage: The tolerance is based on a percentage of
the ordered quantity.
Quantity: The tolerance is a fixed quantity above the
ordered quantity.
Action The action to take if a delivery exceeds the Maximum
Tolerance.
Block: The shipment is blocked in Warehouse
Management.
Warn: A warning message is displayed in Warehouse
management.
Maximum Tolerance The quantity or percentage above the ordered quantity
that is permitted without action taking place.
Production Data
The production data defines the basic routing and bill of material quantity
information. You can specify the number of items the bill of material or routing
are defined for. For example; if you specify the BOM Quantity is to (2), when the
BOM is defined, it contains the quantities of components to build 2 main items.
4-22
4 Item Base Data
The default back flush information for the item is also defined in the Production
data.
\\ Manufacturing \ Item Production Data \ Items – Production

(tiipd0101m000)
Items – Production (BOM tab)
Field Description
BOM Quantity The number of manufactured items on which the BOM is
based.
Scrap Factor The amount of waste, based on percentage, when the
manufactured item is assembled. This quantity is added
to the issuing quantity on the BOM for issuing raw
materials and components to the production order.
Scrap Quantity The amount of waste, based on quantity, when the
manufactured item is assembled. This quantity is added
to the issuing quantity on the BOM for issuing raw
materials and components to the production order.
4-23
Items – Production (Methods tab)
Field Description
Backflush Materials Indicates you will backflush the issuing of materials for
the components of the manufactured item. Backflushing
refers to issuing materials or hours against a production
order after the work or materials are used and other
operations are completed.
Backflush Hours Indicates you will backflush the issuing of hours against
the building of the manufactured item. Backflushing
refers to issuing materials or hours against a production
order after the work or materials are used and other
operations are completed.
Direct Processing of WH If checked the warehouse outbound order procedure is
Order Line carried out automatically for materials in the warehouse
if they are not blocked.
Direct Initiate Inventory If checked the warehouse order line for material is
Issue automatically unblocked during the production order
release and the materials are directly issued to the
production order.
4-24
4 Item Base Data
Costing Data
The Items – Costing ticpr0107m000) session is used to define the cost
components and currency used for the cost price calculation for the item. Once
the details have been entered and the record is saved, the Calculate button is
activated and you can calculate the standard cost price for the item.
\\ Manufacturing \ Cost Price Calculation \ Items – Costing (ticpr0107m000)
Items – Costing (General tab)
Field Description
Material The cost component for the aggregated or combined
material costs for the item.
4-25
Field Description
Operation The cost component for the aggregated or combined
operation or labor rates for the item.
Surcharge The cost component for the aggregated or combined
surcharges applied to the item.
Cost Component Chart For detailed reporting of cost accounts, you can define a
cost component chart and link various cost components
to the chart. The chart can then be assigned to the item.
Currency The currency to express the cost price.
Items – Costing (Price tab)
The Price tab displays the cost price of the item and provides a date and time
stamp indicating when the last cost price calculation for the item took place.
Warehousing Data
The Warehouse data defines the base data for inventory and issuing information
regarding the item. The Item – Warehousing (whwmd4100s000) session also
enables defining dimensions and weight information to determine storage
capacity. This is the base data, individual item and warehouse combination data
can be defined to further detail the item.
4-26
4 Item Base Data
\\ Warehouse Management \ Warehouse Master Data \ Items \ Items –

Warehousing (whinh4500m000)
Items – Warehousing (General tab)
Field Description
Item Valuation Group The valuation group assigned to the item for inventory
valuation purposes. You can calculate the inventory
value for all items in a valuation group.
Package Definition The default package definition assigned to the item.
Once the record is saved, you can enter the Package
Definition by zooming to the Items – Package Definitions
(whwmd4130m000) session.
4-27
Items – Warehousing (Inventory tab)
Field Description
Dimensions (group box) The dimensions for the item are used to calculate
storage capacity for the item in warehouse locations.
Expected Annual Issue The expected annual issue quantity of the item for the
next year expressed in the Inventory unit for the item.
When less than three periods of history are present, the
system will use the Expected Annual Issue for the ABC
analysis calculation, the Calculate Economic Order
Quantity (whina2201m000), and Calculate Demand
Forecast (whina2202m000).
Project Data
If Projects are used you can define the base data for projects regarding the item.
4-28
4 Item Base Data
Tool Type Data

When you define an item with the item type tool, you can specify the tool base
data in the Tool Type Data sub entity tab.
Purchase Data
You can define and maintain purchase related item data in the Item – Purchase
sub entity session. The data is then linked to the general item data and is used
as the default information for the item. From this session, you can highlight an
item and from the specific menu access several other purchase master data
sessions to define the purchase data for the item and business partner,
manufacturer, and price information.
\\ Order Management \ Purchase \ Purchase Master Data \ Purchase Item

Data \ Item – Purchase (tdipu0101m000)
Item – Purchase (Purchase Details I tab)
4-29
Field Description
Buy from BP The default business partner for purchasing the item.
This business partner is retrieved when a purchase
order is generated.
Purchase Price Unit The unit in which the purchase price is expressed.
Purchase Price The price paid for the item, specified in the purchase
currency.
Item – Purchase (Purchase Details II tab)
Field Description
Purchase Office The default department responsible for purchasing this
item. Default number groups can be assigned to
coordinate order number generation based the purchase
office.
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4 Item Base Data
Field Description
Warehouse The default warehouse that receives the item when
purchased. This receiving warehouse is defaulted to the
purchase order line.
Inspection Indicates if inspection is required for this item during the
receiving process.
Release to Warehouse If selected, the receiving process is executed in the
Warehouse Management module, otherwise receipts
can be executed in the Purchase Control module.
Check Approved Source If selected, the buy from business partner on the
List purchase order must be an approved supplier for the
item in the Item – Business Partner (tdipu0110m000)
session.
Item – Purchase (Purchase Details III tab)
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Field Description
Multiple Manufacturer Item If selected, alternative manufacturers can be maintained
by item – business partner combination. If the check box
is cleared, only one manufacturer can be defined per
item – business partner combination.
Alternative manufacturers are typically used in
companies that buy components with similar
specifications or quality from multiple suppliers. If the
ordered quantity is less than the minimum quantity you
can order from a manufacturer, you can purchase
through an intermediate supplier. The supplier can then
obtain the ordered quantity through the specified
manufacturer defined as approved.
Ordering Data
The Item – Ordering Data sub entity contains the default information regarding
order quantities and
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4 Item Base Data
Items – Ordering (Settings tab)
Field Description
Order Policy Determines the default policy for ordering the item. The
options are:
Anonymous: The item is produced or purchased before
a customer order is received.
To Order: The item is produced or purchased only after
customer orders are received.
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Field Description
Order System The order system available depends on the combination
of item type and order policy for the item. The values
are:
SIC: replenishment orders for the item are planned
within the Warehouse Management module.
Planned: replenishment orders for the item are planned
within the Enterprise Planning module.
FAS: For generic items, the item is planned in a mixed
model flow process on an assembly line.
Manual: Orders for the item are placed manually in the
system and not generated by any planning engine.
Order Method The order method controls the recommended quantity
for purchase and production orders. Values are:
Lot for Lot
Economic Order Quantity
Fixed Order Quantity
Replenish to Maximum
Warehouse The default warehouse where the item is stored. The
default warehouse is used to:
Calculate the cost price
Create plan items
Generate purchase orders.
Order Quantity Settings The fields contain the default information on the quantity
(group box) to order for an item when a purchase or production
order is generated for the item. You can specify the
minimum and maximum order quantities you will allow
as well as a fixed order quantity. The economic order
quantity can be manually entered or system calculated.
Planning Data
When the item has an order system of Planned, you can use this sub entity
information to define the default planning information.
4-34
4 Item Base Data
Items – Planning (General tab)
Field Description
Plan Item Type Determines if the planning for this item is per item, or as
part of a family. A family plan item type can be used to
generate a plan for several similar items, for example
bikes or chairs, that can be part of the same family. If
you specify the plan item type is family, you can use
plan levels to define the structure for the items within
that family.
Default Supply Source The default supply source determines where the spply
for the item will come from. The values are:
Production Purchase: The replenishment of the item will
come from a purchase or production order.
Distribution: Indicates the item replenishment will be
based on transfer of goods from other warehouses
within the warehouse structure of your organization.
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Field Description
Default Warehouse The default warehouse for orders to indicate the receipt,
shipment, or storage for this item.
Maintain Master Plans This checkbox determines if the item is a Master Based
or Order Based planning item.
Service Data
If the Service package is implemented and the item type is service, you can
specify Service related base data for the item in the Service Data sub entity tab.
Freight Data
When Freight Management is used, you can specify freight data in the Freight
Data sub entity tab regarding the item.
4-36
4 Item Base Data
Item Structures
Item Structures are generally defined for manufactured items. An Item structure
may consist of Item Data, a Bill of Material (detailing the components of an end
item), and a Routing definition (which details the steps to manufacture the end
item). An item may contain all three components, or only one or two such as
General Item data and a Bill Of Material, but not a Routing. The combination of
the components, BOM, Routing, and Costing details define the structure of an
item. The item structure provides the basis for generating cost calculations.
Detailed item management data is defined for ordering, production, and planning
purposes.
XX.CHAIR
XX.SEAT XX.FRAME
XX.BACK Frame assembly
Seat subassembly Back subassembly
XX.FAB.0004 XX.FAB.0001 XX.RAW.OOO2

Cover Foam 20mm
Black Element Steal Tube
Item Structure for Chair
The item structure defines a manufactured item and its associated components
as well as the procedure to produce or assemble the item.
Bills of Material
The Bill of Material (BOM) lists the components or parts that constitute the main
item. To manufacture a product, you must know what raw materials or items are
needed and the quantity required of each. A BOM is created to represent the
component structure of an item and the quantity of each component required to
build the main item. A BOM can be thought of as a recipe, which specifies what
ingredients (i.e. eggs, milk, sugar, flour, etc.) and the quantity of each that is
4-37
required to make the end product (i.e. a cake). The components of an item can
be manufactured or purchased.
A Bill of Material can be a multi-level structure consisting of materials required to

produce a manufactured item. The highest level of the structure contains a
manufactured item, such as the final product, whereas the lowest level will
contain purchased parts in the form of components. Intermediate levels will
contain either manufactured items in the form of subassemblies or other
purchased items. Items within the BOM are entered depending upon their
position within the multilevel structure.
Definition
A Bill of Material is a listing of all components and relevant data (sub-assemblies
and raw materials) that comprise a manufactured item. The BOM establishes the
parent-child relationship between a manufactured item and its components.
\\ Manufacturing \ BOM Control \ Bills of Material (tibom1110m000)
Bill of Material (Scrolled to the Left)
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4 Item Base Data
Bill of Material (Scrolled to the Right)
Field Description
Item The Manufactured item for which you are defining the
BOM.
Position The component item position number on the BOM.
Sequencing is 10, 20, 30 etc as defined in the
parameters. Each insert of a component increments the
position number.
Item The component item of the manufactured item for the
particular position.
Net Quantity The total number of component items required for the
manufactured item.
WH (Warehouse) The default warehouse the component item will be
issued from to build the manufactured item.
Routings
Routings identify the sequence of steps and procedures used to produce
manufactured goods. Routings consist of tasks defining what activity will be
performed. Work Centers define where the activity or task will be performed.
Machines will identify the equipment, if required, to execute the task. Routings
are the basis for calculating operational costs of a manufactured item. In addition,
routings also are used to determine the lead-time to manufacture an item. There
are four types of routings: Default, Order Quantity Dependent, Standard and
Alternative. All manufactured items need to have either Default or Order Quantity
Dependent routing in order to calculate the standard cost and to plan production
orders. The decision of default versus quantity dependent routing occurs on the
4-39
item in the Item Production Data session indicated by the field Up to Order
Quantity.
The Flow: Routings
Start
Define the work centers

Work Centers
(tirou0101m000)
Define any machines used

Machines
(tirou0102m000)
Define the various tasks

Tasks
(tirou0103m000)
Define the routing codes per item

Items - Routings
(tirou1101m000)
Define the operations per routing

Routing Operations
(tirou1102m000)
End
Work Centers
A work center designates an area where work is performed. Normally, Work
Centers are grouped by similar machines or processes. The information specified
in the work center may be used for capacity and costing calculations. A work
center is first defined in the Departments (tcmcs0565m000) session.
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4 Item Base Data
\\ Manufacturing \ Routing \ Work Centers \ Work Centers (tirou0101m000)
Work Centers
Field Description
Work Center Type Defines the main purpose of the work center and its
function. Values are:
Main Work Center: An single work center, or a work
center consisting of multiple sub work centers.
Sub Work Center: A work center that belongs to a
higher level work center. If so, specify the parent work
center in the Main Work Center field.
Operation Rate Code The code used to assign the labor and machine rates
used to calculate standard costs for items produced
within the work center.
Capacity Data (Group Box) Determines the availability and capacity within the work
center. This is used for lead time, scheduling, and
costing purposes.
4-41
Business Example
The framework for the passenger seat is made from metal tubing. A cutting
machine is used to cut the tube into sections. Three identical cutting machines
are grouped together into a single work center that will represent the available
capacity of all three machines. Each cutting machine is available for 8 hours a
day, and 5 days a week. The weekly capacity is therefore 8*5=40 hours for each
machine. Collectively, the work center for cutting machines has 120 hrs of
capacity.
Machines
Machines represent the various manufacturing equipment used during the
manufacturing process. The Machines (tirou0102m000) session enables you to
record the cost of operating a machine and the available machine capacity. The
machine can be linked to the work center or task and can then be linked to a
routing.
\\ Manufacturing \ Routings \ Machines (tirou0102m000)
Machines
Field Description
Machine The code representing the particular machine
Work Center The work center the machine is located and associated
with. This is used to calculate resources.
4-42
4 Item Base Data
Field Description
Machine Rate The rate used for actual production order costing if the
Actual Operation Rates field in the Shop Floor Control
Parameters (tisfc0100s000) session is Actual Man and
Machine Rates.
Cost Component The cost component that will capture the machine costs
for this machine.
Capacity Data (Group Box) Defines the weekly and daily capacity and availability of
the machine. This information is used for calculation of
lead time.
Business Example
Several passenger seat frames have been rejected due to problems with the
painting process. A new machine to pre-treat the frames prior to painting is
purchased in an attempt to eliminate the problem. The new machine details are
added to the system, to allow its use on future routings.
A Machine Defined and Added to the Manufacturing Process
Tasks
Each task can be directly or indirectly related to production. A task may range
from maintaining a machine to an employee taking leave. The Task Type
specifies the nature of the activity, and determines which mandatory information
is required. Only direct production tasks can be used in a routing. When the
production tasks are defined, they can be associated with a work center and a
machine. The task can be added as an operation to the routing, representing an
executable action in the production process.
4-43
The machine or work center required to complete the task can be linked in the
Tasks (tirou0103m000) session.
\\ Manufacturing \ Routing \ Tasks (tirou0103m000)
Tasks
Field Description
Work Center Selection Determines if the work center is available for multiple
Method tasks or a specific task. The values are:
All: The task can be used for all work centers. For
example, a task for Inspection.
Only Default: Only the work center specified in the
Default Work Center field can be linked to the task.
Specific: you can specify task/work center combinations
in the Task Relationships (tirou0104m000) session.
4-44
4 Item Base Data
Field Description
Machine Selection Method Determines if the machine is available for multiple tasks
or a specific task. The values are:
All: The machine can be used for all tasks. For example,
a press machine can be used in multiple.
Only Default: Only the machine specified in the Default
Machine field can be linked to the task.
Specific: you can specify task/machine combinations in
the Task Relationships (tirou0104m000) session.
Business Example
A task must be defined for the pre- treat operations. The task type is a machine
operation as it is carried out on a machine. The setup time for the machine is
measured and found to be 10 minutes, while the run time for each framework is
averaged at 3 minutes.
Task Set Up and Run Time
Item – Routings
The routing code defines a unique relationship between the routing code and the
item code defining a unique sequence of operations required to manufacture the
4-45
end item. Several items may have the same routing code, but because the
routing code and item code make a unique combination, each routing and item
combination can have different operations.
\\ Manufacturing \ Routing \ Item-Routings (tirou1101m000)
Items-Routings
Routing Operations
The routing defines the tasks, and the sequence in which the tasks occur, which
machines are used, and in which work center the task is executed. The routing
steps are called operations and are defined in the order in which they will be
executed to manufacture or assemble the manufactured end item.
\\ Manufacturing \ Routing \ Routing Operations (tirou1102m000)
Routing Operations
4-46
4 Item Base Data
Field Description
Operation Indicates the sequence in which the routing operation
will occur.
Task The task linked to the operation indicates the nature of
work to be performed for that step.
Work Center The work center where the task in the operation will take
place.
Machine If a machine is involved with the operation, you specify
which machine will be performing the machine
operation.
Average Setup The time required to set up or change over the machine
in order to run the machine for this operation. T
Cycle Time The time required between completion of two separate
units of production. It can also equal the time that a
product remains in one position on an assembly line or
the time an operation is carried out on and item in a
work station.
Effective Date/ Expiry Date The date range the operation is valid. You can specify
additional operation sequences that may take effect or
change the operation over time and implement their use
by using the date range for effectivity.
Enter Item Data

Items can be entered by copying an existing item or through manual entry. When
manually entering items, you can use item defaults to assist in the data entry.
Copy Item Data

The session Copy Item Data (tcibd0205m000) is used to copy a source item to a
new item. When copying, you select the item you wish to copy, then enter the
new item code and description. During the copy function, any item data defined
in the item sub entities is also copied to the new item.
Depending upon the source item type, you can choose various check boxes to
duplicate additional item data.
4-47
\\ Common \ Item Base Data \ Item Data \ Items General (tcibd0101m000)

Sub-session: Copy Item Data tcibd0205m000)
Copy Item Data
Field Description
Source (Group Box) The item code you are using as the source item to use
as the reference for the new item.
Target (Group Box) The new item code and description for the item you wish
to create during the copy function.
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4 Item Base Data
Field Description
Copy (Group Box) Depending upon the item type different selections are
available to select for copying. For example, when a
manufactured item is copied, you can indicate to copy
the source item Bill of Material and Routing as well as
the general item data and sub entity data. If the Bill of
Material check box is not selected, the new item will
require you to define a new Bill of Material.
Copy Product Configuration If the source item is configured you can select the
Data (Group Box) attributes defined in the Product Configuration that will
be copied to the new target item.
Cost and Valuation Price If the check box is selected the cost and valuation price
is calculated for the target item during the copy function
and the new price is actualized.
Define General Item Data

The new Easy Chair your company produces needs to be added to the system.
The Item Structure for the Easy Chair is:
CHAIR
Easy Chair
SEAT FRAME
BACK Chair Frame
Easy Chair Seat Easy Chair Back
FAB.0004 FAB.0001 RAW.OOO2 FAB.0004 FAB.0001 RAW.OOO2

Chair Fabric Foam Steel Tube Chair Fabric Foam Steel Tube
Qty 0.5 Qty 1 Qty 2 Qty 0.5 Qty 1 Qty 2
Easy Chair Item Structure
The item SEAT and FAB.0001 still need to be defined in the system. Copy the
Manufactured item SEAT and manually define the purchased item FAB.0001.
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\\ Common \ Item Base Data \ Item Data \ Items – General (tcibd0101m000)

1. Insert the new item FAB.0001
Item FAB.0001 General Data

Field Input Value
Item FAB.0001
Description Easy Chair Seat
Item Type Purchased
Item Group 002
Unit Set 001
Sub Entity Data

2. Click on the appropriate sub entity button and enter the sub entity data.
Item Purchase Data

Field Input Value
Purchase Unit Pcs
Purchase Price Unit Pcs
Purchase Currency EUR
Purchase Price 10.00
Purchase Price Group 001
Purchase Statistic Group 001
Purchase Office PUR1
Item Sales Data

Field Input Value
Sales Unit Pcs
Warehouse 001
Sales Price Unit Pcs
Sales Price 40.00
Sales Price Group 001
Sales Statistics Group 001
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4 Item Base Data
The item sales data enables the fabric to be used in the sales module for sales
orders. For example, the fabric can be entered on a sales order now that the Item
Sales Data is defined.
Item Ordering Data

Field Input Value
Order Policy Anonymous
Order System Manual
Order Method Lot for Lot
Item Costing Data

Field Input Value
Material 100
Operation 200
Surcharge 300
Currency EUR
3. Save the record.
4. Click the Calculate button to calculate the standard cost price for the item.
Until the costing data is defined, production, purchase, and sales orders for
the item cannot be created and the item cannot be put into inventory.
The warehouse data must be defined for the item to be available for use in the
warehouse module. Most information is optional and does not require defining.
Entering a width and depth for the fabric will suffice.
Item Warehousing Data

Field Input Value
Width 2
Depth 3
The general item record is now defined for item FAB.0001.
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Copy the manufactured item SEAT from the item BACK

The manufactured item BACK has already been created. You can use this item
as the source item and copy the item data and sub entity information to the new
item SEAT to reduce the amount of data entry required to create the new item.
\\ Common \ Item Base Data \ Item Data \ Items-General (tcibd0501)

1. In the Items – General session, click the item BACK.
2. From the menu bar select the copy icon.
3. Enter the new item code SEAT and the new Description Easy Chair Seat.
Field Input Value

Bill of Material Do not select the check box
Routing Do not select the check box
4. Click Copy
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4 Item Base Data
Copy Item Data
The Item data has now been defined based on the source item data. You can
edit data by opening the Items-General (tcibd0501m000) session and selecting
the new item SEAT and making any desired changes.
Define a BOM for item SEAT

Create a Bill of Material to define the structure of the manufactured item and its
components.
\\ Manufacturing \ BOM Control \ Bill of Material (tibom1110m000)

For the item SEAT define the BOM consisting of the components and quantities
of items required to build one item SEAT.
1. Insert the item data for item SEAT
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Field Input Value

Item SEAT
Description Easy Chair Seat
2. Click New and insert BOM items FAB.0001, FAB.0004, and RAW.0002
Item FAB.0004
Field Input Value
Position 10
Item FAB.0004
Net Quantity 0.5
Warehouse 001
Item FAB.0001
Field Input Value
Position 20
Item FAB.0001
Net Quantity 1
Warehouse 001
Item RAW.0002
Field Input Value
Position 20
Item RAW.0002
Net Quantity 2
Warehouse 001
The BOM for item SEAT now contains three items, FAB.0004, FAB.0001, and
RAW.0002 being issued from Warehouse 001 when production occurs.
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4 Item Base Data
Completed BOM for item SEAT
Define a Routing for Item SEAT

Define the routing codes available for item SEAT and then define the routing
operations required to manufacture the item SEAT.
\\ Manufacturing \ Routing \ Items-Routing (tirou1101m000)

Define the routing code 001 for item SEAT
1. Click the New Group icon and enter item SEAT and Routing code 001
New Routing Code for SEAT
Define the Routing Operations for Routing 001

The routing for item MAN_1 and routing code 001 requires the operations to be
defined stating what steps to execute during manufacturing.
\\ Manufacturing \ Routing \ Routing Operations (tirou1102m000

Define the two operations to complete the production of the chair seat.
1. Click the New Group icon and enter the item SEAT and the routing 001.
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2. Insert the two operations
Field Input Value

Operation 10
Task Cutting
Work Center CWC1
Machine CM1
Cycle Time 15
Field Input Value

Operation 20
Task Sewing
Work Center CWC1
Machine SM1
Cycle Time 10
3. Save the record.
The routing for the item SEAT now has two steps, or operations, that will need to
be executed to build a chair seat.
Routing for item SEAT
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4 Item Base Data
Exercise: Define General Item Data

To begin production of the new office chair, RAC manufacturing requires the
items for the chair to be created. Define the general item data for the items that
make up the chair.
XX.CHAIR
XX.SEAT XX.FRAME
XX.BACK Frame assembly
Seat subassembly Back subassembly
XX.FAB.0004 XX.FAB.0001 XX.RAW.OOO2

Cover Foam 20mm
Black Element Steal Tube
From the item structure for the chair, you will create the manufactured item
(XX.SEAT), and a purchased item (XX.FAB.0001).
General Item Data for Item XX.FAB.0001

Items – General (tcibd0101m000) Data
Field Input Value
Item XX.FAB.0001 (Replace XX with
your initials)
Description Chair Fabric
Item Type Purchased
Item Group 002
Unit Set 001
Sub Entity Data

Item Purchase Data
Field Input Value
Purchase Unit Pcs
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Field Input Value

Purchase Price Unit Pcs
Purchase Price 10.00
Purchase Price Group 001
Purchase Statistic Group 001
Purchase Office PUR1
Item Sales Data

Field Input Value
Sales Unit Pcs
Warehouse 100
Sales Price 40.00
The item sales data enables the fabric to be used in the sales module for sales
orders. For example, the fabric can be entered on a sales order now that the Item
Sales Data is defined.
Item Warehousing Data

Field Input Value
Width 2
Depth 3
The warehouse data must be defined for the item to be available for use in the
warehouse module. Most information is optional and does not require defining.
Entering a width and depth for the fabric will suffice.
Item Costing Data

Field Input Value
Material 100
4-58
4 Item Base Data
Field Input Value

Operation 200
Surcharge 300
Currency EUR
Save the record.
Click the Calculate button to calculate the standard cost price for the item. Until
the costing data is defined, production, purchase, and sales orders for the item
cannot be created and the item cannot be put into inventory.
Item Ordering Data

Field Input Value
Order System Manual
The Item Ordering data provides default values for ordering the item. The
defaults can be over written.
Item XX.SEAT
Use the Copy function in the Items – General (tcibd0501m000) session.
When copying, also select the check boxes to copy the Bill of Material and the
Routing of item SEAT.
Copy Item SEAT and create a new item called XX.SEAT (Replace XX with your
initials)
4-59
Copy item SEAT to XX.SEAT
Items – General (tcibd0101m000) Data

Field Input Value
Item XX.SEAT (Replace XX with your
initials)
Description Chair Seat
Item Type Manufactured
Item Group 001
Unit Set 001
Sub Entity Data

Item Sales Data
Field Input Value
Sales Unit Pcs
4-60
4 Item Base Data
Field Input Value

Warehouse 100
Sales Price 100.00
Item Costing Data

Field Input Value
Material 100
Operation 200
Surcharge 300
Currency EUR
Item Ordering Data

Field Input Value
Order System Planned
New Item Record for XX.SEAT
4-61
Exercise: Modify BOM for Item XX.SEAT

Your item XX.SEAT contains the item FAB.0001 in the copied BOM. You will
change the BOM component to use your new item XX.FAB.0001 in place of item
FAB.0001.
\\ Manufacturing \ BOM Control \ Bill of Material (tibom1110m000)

Delete the item FAB.0001 from the BOM for item XX.SEAT (replace XX you’re
your initials) and add the item XX.FAB.0001 (replace XX with your initials)
BOM with replaced item XX.FAB.0001
Exercise: View the Routing for Item XX.SEAT

Look at the routing for item XX.SEAT.
How many operations are associated with the routing?
______________________________________________-
What is the total routing operation time to produce one piece of item XX.SEAT?
4-62
4 Item Base Data
Alternative Items
An alternative item is an item that can be substituted or used to replace a
standard item if it is not available. Alternative items can be defined for production
items, purchased items, and end items. When multiple items can replace an item,
a priority code can be assigned defining which item has first priority and so on for
the standard item.
Business Example
Passenger seats are being produced and the item FAB.0002 is the fabric used in
the seat. There currently is has no remaining inventory for item FAB.0002. The
item FAB.0003 is a higher grade of fabric and is available in inventory. Item
FAB.0003 can be defined as an alternative item, in this case a substitute, for item
FAB.0002.
Alternative Items
You can define substitutes for standard items in case they are not available or no
longer used within the Alternative Items (tcibd0505m000) session
4-63
\\ Common \ Item Base Data \ Alternative Items \ Alternative Items

(tcibd0505m000)
Sub-session: Alternative Items (tcibd0105s000)
AlternativeItems
The sub-session is where the details for the alternative item are defined.
4-64
4 Item Base Data
Alternative Items
Field Description
Alternative Items Items that serve as a substitute for the standard item if the
standard item is not available or is being replaced.
Introduction Date The first date that the alternative item becomes effective.
Expiry Date The last date the alternative item is valid.
Priority If you have defined several alternative items as substitutes
for a standard item, you can assign a priority code to each
alternative item. The priority code determines which item
you will first use as a substitute.
Reverse Creates a reversible relationship between the original item
and its alternative. The alternative item can substitute for
the original item, and vice versa. The system automatically
creates the record for the opposite entry.
Interchangeable The original item and alternative item have similar
properties and are completely interchangeable. When an
alternative item is defined as interchangeable, PCS can
have the system make an automatic substitution without
user intervention.
4-65
Field Description
Replacement The alternative item replaces the original item. A
replacement item always has different properties than the
original item.
4-66
4 Item Base Data
Alternative Manufacturers
To support buying items from several approved manufacturers, you can specify a
number of manufacturers for an item, and ensure that only approved
manufacturers provide goods to your company.
The item’s manufacturers are specified in the Purchase Master Data module. In
the item purchase data, you can indicate that you accept items from the buy-from
business partner that are produced by any of the manufacturers that you
specified for the combination of item and buy-from business partner.
Alternative Item Manufacturers

While it is possible in all industries that a particular end item is sold to multiple
end customers, in some industries the end item must be changed slightly based
upon the requirements of each end customer. In this case, the change may be a
substitution of a key component. It is often true that a component of the end item
can be purchased from several vendors. In some cases, a customer may require
the end item to be manufactured using a component that is purchased from a
specific vendor. An example of this may be the subcontracted manufacturing of
electronic circuit boards in the Electronics Industry. The circuit boards are
essentially the same item, but key components are changed based upon the end
customer that is buying the item and that customer’s preferred vendor.
It is possible to link items to several Manufacturers. The Manufacturer is linked

to a business partner (vendor/supplier). The Manufacturer and Item combination
can be Approved and then used within an actual Purchase Order Line. In this
way, the item is purchased only from approved vendors. The Alternative Item
Manufacturer topic is covered in more detail in the Manufacturing course.
4-67
The Flow: Alternative Manufacturers
Start
Identify the valid manufacturers

Manufacturers
(tcmcs0160m000)
Define the item default

manufacturer
Item - General
(tcibd0101s000)
Identify one or multiple

manufacturers for each item
Item - Purchase
(tdipu0101m000)
Identify valid manufacturers for

each item
Item - Manufacturer
(tdipu0130m000)
Define the valid manufacturers per

business partner
Item - Manufacturer and Business
Partner
(tdipu0135m000)
End
Define Manufacturers
The Manufacturers (tcmcs0160m000) session is used to identify the available
manufacturers and the status of each manufacturer.
Items – General
The default manufacturer is identified in the Items – General (tcibd0101m000)
session. This is the manufacturer any order placed will default for ordering and
specify for the item.
4-68
4 Item Base Data
Item – Purchase
The check box for Multiple Manufacturer in the Item – Purchase (tdipu0101m000)
session indicates if the item can be purchased from multiple manufacturers or if
only one manufacturer is allowed. An effective date period can also be defined.
Item Manufacturer
The Item Manufacturer (tdipu0130m000) session identifies the valid item
manufacturer combinations available for ordering the item. Here you define the
various manufacturers that are approved to supply the item.
Item – Manufacturer and Business Partner

The Item – Manufacturer and Business Partner (tdipu0135m000) session defines
the manufacturers a business partner will accept as suppliers of an individual
item. Only approved item –manufacturers and approved business partners can
be selected as valid combinations.
4-69
Unit Effectivity
The Unit Effectivity section is covered in more detail in the Manufacturing course.
This section is included to introduce the topic and provide a brief overview of how
Unit Effectivity functions.
Unit Effectivity is used to control variations of an item. You can use unit effectivity
to model deviations from a standard end item so you do not require separate
item codes and bills of materials for every combination of item variations. The
deviations typically consist of small deviations of the end item.
Unit Effectivity typically apply changes for the end item when:
There are few changes to the end item.
The changes apply to a relatively small subsets of the end item.
The changes are a result of customer request.
Unit effectivity is applicable in two ways:
1. By Series:
Effectivity units are used to define exceptions for an item series, or series’
subset. You can use this approach in low -volume production of complex
products, for example, in aerospace and defense industries. Series are defined
for a specific end item, for example, an airplane. Exceptions are then defined per
series, for example for numbers 50-100 of an item’s series you define a unique
option.
2. By Sales Order:
Effectivity units are used to configure items on individual sales order lines. You
can use this approach in high-volume industries, such as electronics industries.
Effectivity Unit
An effectivity unit is a code that is linked to an end item. The effectivity unit
identifies the item, and can also represent deviations from the standard end item.
The effectivity unit can be linked to manufactured items and purchased items.
The effectivity units represents several changes in the end item such as:
Engineering bill of material (E-BOM).
4-70
4 Item Base Data
Production bill of material (P -BOM).
Routing.
Routing operations.
Item – supplier data.
Sources of supply strategy.
Deviations for and items configuration can be the result of several circumstances
such as:
The use of one component instead of another: This affects the Engineering
BOM or the Production BOM. For example, when a touring car, which is
completely standard, requires red seats instead of blue seats.
The way the end item is produced: This affects the routing or the routing
operations in the Routing (ROU) module. For example, when you want to test
a new production technique, which affects the routing or some of the routing
operations, but the result is a standard item. In this case, unit effectivity only
relates to the routing.
The origin of the end item's parts: This affects the sourcing strategies defined
in the Enterprise Planning module. For example, when you want to test the
components that are supplied by a new manufacturer.
If you use unit effectivity during the design and/or engineering phases, the
resulting end items must be lot-controlled. The items can also be serialized
items. Component items (material) do not need to be lot-controlled. However, to
distinguish items by effectivity unit in the warehouse, material must also be lot-
controlled.
4-71
Lesson Review
In this lesson, you learned...
Item Base Data that must be defined.
Item Sub Entity information.
The importance and use of BOM’s and Routings.
The various Item Types and their applicsation.
4-72
4 Item Base Data
Review Questions
1. Which statement about Items – General Defaults session is correct? _____::
A. Item – General Defaults is automatically created when

Items – General data is defined.
B. Items – General Defaults makes data entry easier for

items of the same Item Type and Item Group.
C. Items – General Defaults data must be created before

you enter Items – General data.
2. Sub Entity information for an item can only be defined in the Items – General
session?
A. True
B. False
4-73

The answers to the questions with an explanation are..
1. B (Items – General Defaults information reduces the amount of data entry for
similar items in the same item type and item group.)
2. False (Sub entity information can be defined during item creation, or within
each respective module providing flexibility in when and how sub entity
information is created.
4-74
5
Cost Price Calculation
The Cost Price Calculation (CPR) module simulates or establishes the costs of
production items and purchase items. The cost price calculates and compares
costs generated on the shop floor and also determines the inventory valuation.
Cost prices can be broken down into material, operation, and overhead costs.
Item Cost Breakdown
To get the cost price for an item, the operation cost, or the cost to produce the
item in terms of labor costs and machine costs is calculated. Operational cost
information comes from the item routing for a manufactured item. The costs of
all materials to make the item are added for the cost. The material costs come
from the bill of material for manufactured items and from the item data for
5-1
purchased items. Finally, any overhead or surcharges are added to get a total
cost. Overhead costs can be associated with either material or operations.
You can use cost information to calculate the standard cost for an item. The
standard cost can help you to determine an appropriate selling price. For
example, if it costs you $120.00 US dollars to produce each item, you want to set
a selling price higher than that to allow for a good profit margin. You can also use
standard costs to:
Calculate inventory values.
Provide the basis for reporting production cost information to Finance.
The Cost Price Calculation module provides features that allow you to simulate
and compare methods of costing your production items. Once cost price
calculations have been performed, reports are available to analyze the cost
structure of an item. When you have completed your simulations, you can update
the actual prices in a process called actualizing.
Definitions
Operation: An Operation is based on a series of routing steps that are carried
out successively to produce an item. These steps are recorded in data that is
used to help calculate cost prices. The types of data that are collected during a
routing operation consist of:
The task (for example, sawing).
The machine used to carry out the task (for example, a sawing machine).
This data collection is optional.
The place (Work Center) where the task is carried out (for example, the
woodwork work center).
The number of employees required to carry out the task.
Routing: A series of steps that the system takes to complete an operation task.
Lesson Objectives
Set up cost prices.
5-2
5 Cost Price Calculation
Define item surcharges for an item.
Simulate a purchase price for an item.
Calculate the cost and the valuation price for an item.
View Cost Price results
5-3
Cost Price Master Data

Cost price calculation provides you numerous methods to record and analyze
information relating to production costs. Cost information can be categorized and
calculated according to your company’s needs. You can either categorize costing
information in specified details or calculate the item cost based on operational
costs. You must set up the cost price master data in order to dictate how
standard costs should be calculated
For the calculation of the project costs in the Project Control module, the
operation rates and the subcontracting rates for the estimated item-related costs
can also be defined in the Cost Price Calculation module.
5-4
The Flow: Cost Price Calculation Master Data
Start
Define Cost Price Parameters

Cost Price Calculation
Parameters
(ticpr0100m000)
Define Cost Componets used to

capture costs
Cost Components
(tcmcs0148m000)
Set up Cost Component charts

Use Chart
Yes Cost Component Charts
Details
(ticpr0109m000)
No
Define Operation Rate Codes

Operation Rate Codes
(ticpr0150m000)
Define Price Calculation Codes

Price Calculation Codes
(ticpr1100m000)
End
CPR Parameters
CPR Parameters define the rules to set up costing data and calculate the costs
of items in your company. The Standard Price Calculation Code defined is the
code the system searches for when actualizing the cost price of an item during
Cost Price Calculations. The Type of Operation Rates determines where you will
retrieve Operation Rates (by work center or task). This rate calculates operation
costs from the Routing.
5-5
Cost Price Calculation Parameters
Cost Price Calculation Parameters
Field Description
Effective Date The date range the current parameter settings are valid.
Description Provides a description of the current parameter setting.
Provides date and time stamp to indicate when the
parameter settings were established.
Standard Cost Price The one Cost Price Calculation Code that represents
Calculation Code the method used to calculate and Update/Actualize the
Standard Cost Price
Type of Operation Rates Determines whether operation rates are linked to work
centers or tasks. The selection made in this parameter
applies to the entire Company. Tasks define information
in a more detailed manner than work centers
Zero Component Cost Price If the check box is selected, the cost price calculation for
Allowed an item will be calculated even if one of the item’s
components has a cost price of 0.
Include Fixed Costs in Determines if any costs identified as fixed costs will be
Sales Price included when the sales price for an item is calculated.
The sales price will always contain the variable costs.
Include Fixed Costs in Determines if any costs identified as fixed costs will be
Valuation Price included when the valuation price for an item is
calculated. The valuation price will always contain the
variable costs.
5-6
Field Description
Include Surcharges in Indicates if surcharges assigned to an item in the main
Valuation Price of Shop warehouse are included in the item’s valuation price in
Floor Warehouse the shop floor warehouse. As a result, the issue price of
the item from the main warehouse is the same as the
receipt price in the shop floor warehouse. Consequently,
no transfer results and production results will occur.
Cost Components
Detailed categories can be defined for production costs according to your
company’s needs. Production costs can be broken down into several types or
accounts to enable detailed analysis on the types of costs incurred for the
production of an item. Cost components categorize production costs into specific
groups called Cost Types. The Cost Type categorizes the costs for the
production process, such as, material costs. The cost component is user defined
to allow maximum flexibility in the allocation and analysis of product costs. You
can define a cost component and description to represent multiple machine,
material, transfer, and surcharge costs, which are all part of the production
process.
5-7
\\ Manufacturing\ Cost Price Calculation\ Cost Price Master Data\ Cost

Components (tcmcs0148m000)
Cost Components
Field Description
Cost Type Identifies the nature of the production cost and links to a cost
component. The seven cost types available for selection are:
Surch. on Operation Costs: An additional cost or discount
associated with a routing operation.
Surch. on Material Costs: An additional cost or discount
associated with purchased material.
WIP Transfer Costs: Any costs that may be incurred when
transferring Work-In-Process (WIP) from one machine or work
center to another.
General Costs: Any additional administration costs, such as
freight charges. This cost type is linked to cost items.
Not Applicable: Cost components with this cost type are used
within project or service industries and are not applicable to
cost price calculation.
5-8
Material Costs: Costs derived from the purchase price of raw

materials. You can link cost components of this type to
standard, customized, project, and service items, as well as
calculation parts.
Operation Costs: Costs derived from the operation rates and
subcontracting items. You can link cost components of this cost
type to subcontracting items and operation rate codes.
Define a Cost Component

Cost Components provide the ability to categorize production and material costs
for an item. A new work center has been added to your production process and
will be used during the manufacturing of a new steel chair frame. You will create
a new cost component to categorize the costs for materials and machining for the
new chair frame in the new work center.

Define two new Cost Components, MC1 and CL1, to represent the machine and
labor costs for the new chair frame in the new work center.
1. Click the New icon to begin a new record insert.
Cost Components
2. Create the Cost Component MC1 and CL1 to represent the new Operation
Rates for the manufacturing of the Chair Frame.
Cost Component MC1

Field Input Value
Cost Component MC1
Description Chair Frame Machine Rate
Cost Type Operation Costs
5-9
Cost Component CL1

Field Input Value
Cost Component CL1
Description Chair Frame Operation Rate
Cost Components
The result is a new entry for Cost Component MC1 and CL1 both specified as an
Operation Cost. These new Cost Components will represent the labor and
machine costs, which are types of Operation Costs, used to produce the new
Chair Frame.
5-10
Exercise: Define a Cost Component

You have added a new Welding Machine to your production floor. The new
Welding machine requires one skilled operator. To track the costs for the new
welding machine and the skilled operator, you will define two new cost
components.

Define the components for the operation rates of the new welding machine
First Cost Component

Cost Component XXM
Field Input Value
Cost Component XXM (replace XX with your initials)
Description Welding Machine Operation Rate
Cost Components
5-11
Second Cost Component

Cost Component XXL
Field Input Value
Cost Component XXL (replace XX with your initials)
Description Welding Machine Labor Rate
Cost Components
Cost Component Charts

Instead of aggregating all your costs, you can define cost component charts that
allow you to post on a detailed level. When cost components of component items
or assembly parts are linked to a chart in the Chart Details (ticpr0110m000)
session, the costs that are related to those components are not aggregated. You
can start the Chart Details (ticpr0110m000) session from the Specific menu.
You can link a chart to an item, an item group, or an assembly line:
Link a chart to an item in the Items-Costing (ticpr0107m000) session.
5-12
Link a chart to an item group in the Items Costing Defaults (ticpr0108m000)

session.
Link a chart to an assembly line in the Assembly Line Costing Data

(ticpr0115m000) session
Chart Details
The Chart details displays and maintains the detailed cost components linked to
a specific chart. If you link a chart to an item in the Items-Costing
(ticpr0107m000) session, to an item group in the Items-Costing Defaults
(ticpr0108m000) session, or to an assembly line in the Assembly Line Costing
Data (ticpr0115m000) session, the detailed cost components that you define in
this session are reported in the effective cost-component structure for a specific
item.
In the Items-Costing (ticpr0107m000) session and the Assembly Line Costing

Data (ticpr0115m000) session, you can choose from the Specific menu to
display the effective cost-component structure of the item. The system stores the
effective cost-component structures by item and by date.

Operation rate codes define what rates will be used for the labor, machine, and
overhead portions of the cost calculation. Operation rate codes are linked to
tasks and/or work centers. The Operation Rate Codes are used to further define
the hourly rates and Cost Component details used for operation costs.
Each task and/or work center can have a unique Operation Rate Code consisting
of operation rates that are specific to that task and/or work center. Operation
Rate Codes are defined by currency in the Operation Rates Codes
(ticpr0150m000) session.
5-13
\\ BAAN Manufacturing \ Cost Price Calculation \ Cost Price Master Data \

Operation Rate Codes (ticpr0150m000)
Field Description
Operation Rate Code A code that identifies the operation labor/machine cost
rates. The rate code can be linked to a task or work center
depending on the CPR Parameter settings. This code can
also be linked to a cost price calculation code.
Currency The currency used to calculate the Operation Rate when
using this operation rate code.
5-14
Create an Operation Rate Code

You must create a new operation rate that will group the operation costs
associated with the new Fabric Cutting Machine. The operation rate code will
then be used to link the appropriate machine, labor, and surcharge rates to the
work center or task.

To define a new operation rate code for the new Fabric Cutting Machine:
1. Click the New icon
2. Enter these values for your new operation rate code:
Field Input Value

Operation Rate Code XXX (Replace XXX with your initials)
Description Cutting Machine Rates
Currency EUR
5-15
Exercise: Define an Operation Rate

The manufacturing process for your chair uses a work center defined as the
Chair Work Center. This work center has hourly operation rates for labor,
machine, and overhead. The costs are unique to this work center and are
represented by an Operation Rate Code and a currency.

Create a new operation rate code using these values:
Operation Rate Codes – ticpr0150m000

Field Input Value
Operation Rate Code XX1 (Replace XX with your initials)
5-16
Field Input Value

Description Chair Wk Cntr. Rates
Currency EUR
Operation Rate Code

Production costs may be calculated several different ways. A price calculation
code is used to define how a cost or sales price is calculated. The standard cost
price is calculated and can only be updated or actualized by using the price
calculation code defined in the CPR Parameters (ticpr0100m000) session. You
can define any number of price calculation codes for calculating cost price
simulations
Typically, you should create one Price Calculation Code to represent and
calculate your Standard (or Actual) costs. Additionally, you can create one or
more Price Calculation Codes that are linked to different Operation Rate Codes
to simulate changes in operation costs (labor rate or machine rate changes) to
analyze the affect on your pricing.
5-17
\\ Manufacturing \ Cost Price Calculation \ Cost Price Master Data \ Price

Calculation Codes (ticpr1100m000)
Field Description
Price Calculation Code Determines the cost-price calculation data that is used
to calculate a cost, valuation, or sales price. Cost
calculation data (such as, operation rates, surcharges,
subcontracting rates, and simulated purchase prices)
are stored under this code.
Calculation Code Type Determines how a cost, valuation, or sales price is
calculated. Two code types are available for selection:
Cost Price: Calculates only a cost or valuation price. A
valuation price may vary from the cost price and is used
for accounting purposes, such as inventory valuation.
Sales Price: Calculates sales prices. Warehouse
surcharges may not be defined for a sales price
calculation.
5-18
Field Description
Priority of Purchase Price Purchase prices will only apply if the code type is Cost
(Group box) Price. A priority determines the order of the selected
purchase price types when a cost price is calculated. A
purchase price type specifies the origin of the purchase
price .If a purchase price is not specified for the first
priority, then the search will continue to the second
priority, and so on, until the fourth and final priority has
been checked. If a purchase price cannot be determined
from the search priority, then the standard cost for the
item will be zero. Four purchase price types are
available:
Si (Simulated Purch. Pr.): A price calculation code
can be created and used to simulate a purchase
price. These prices are for a unique item and cost
price calculation code in the Simulated Purchase
Prices (ticpr1570m000) session.
Cp (Current Purch. Price): The current purchase
price is manually entered in the Item Purchase Data
(tdipu0101s000) session.
Ap (Average Purch. Price): The average purchase
price is automatically calculated by the system
based on all previous purchase receipts, when the
receipts are matched and approved in the Finance
Package.
Lp (Latest Purch. Price): The latest purchase price
is calculated based on the most recent purchase
receipt, after the receipts are matched and
approved in the Finance package.
Direct Costing Allows overhead costs to be included or excluded from
the cost price calculation. If this field is selected, then
overheads will be excluded from the cost price
calculation.
If the box is not selected, the overhead costs will be
included in the standard cost price of the item.
Business Example
A price calculation code will be used to calculate the actual cost price of all
manufactured items, including the chair you will manufacture. It is decided that
any additional costs that occur from machinery maintenance are to be
incorporated into the existing cost price calculation code
5-19
Define a Price Calculation Code

In order to execute price change simulations, a Price Calculation code is required
that is different from the actual Price Calculation code in the parameters. This
new code will be used for simulations and will not affect current cost prices of the
items in the Item master.
\\ Manufacturing \ Cost Price Calculation \ Cost Price Master Data \ Price

Calculation Codes (ticpr1100m000)
You must define a new price calculation code using the simulated calculation
method. You must name the new code SP as well as define the priority of the
purchase price.
To define a new price calculation code for simulating cost prices:
1. Click the New icon and enter the values to define a new code.
Field Input Value

Price Calculation Code SP1
Description Simulated Price Calculation Code
Calculation Code Type Cost Price
First Priority Si (Simulated Purch. Price)
Second Priority Cp (Current Purch. Price)
Third Priority Ap (Average Purch. Price)
Fourth Priority Lp (Latest Purch. Price)
5-20
You can now view your new price calculation code in the Price Calculation Codes
(ticpr1100m000) session
Exercise: Define a new Price Calculation Code

You are purchasing a new machine and you must identify the potential changes
that will exist in your production costs due to the new machine’s production rate.
5-21
Therefore, you must define a price calculation code to use for simulating the cost
price changes based on this new machine’s production rate.
Define a price calculation code for your new machine using these values
Price Calculation Code

Field Input Value
Price Calculation Code SMR
Description Simulated Machine Rate
Calculation Code Type Cost Price
First Priority Si (Simulated Purch. Price)
Second Priority Cp (Current Purch. Price)
Third Priority Ap (Average Purch. Price)
Fourth Priority Lp (Latest Purch. Price)
5-22
5-23
Cost Price Calculation Data

After you set up cost price calculation codes, you can define the cost price
calculation data, such as the operation rates, subcontracting rates, and item
surcharges. Cost price data for operation rates and surcharges is required in
order to accurately calculate the production costs of an item. An appropriate
sales price can then be derived for your products/items based on defining your
cost price calculation data.
You can also simulate costs for purchase items. This is a very effective
management tool when considering factors such as price fluctuations from
suppliers.
The Flow: Cost Price Calculation
Start
Define Operation Rates for

machine, labor, and overhead
Operation Rates
(ticpr1150m000)
Define Cost Componets used to

capture costs
Cost Components
(tcmcs0148m000)
Add item surcharges

Item
Yes Item Surcharges
Surcharges
(ticpr1110m000)
No
Simulate the purchase price

Simulate Purchase Prices
(ticpr1170m000)
End
5-24
Operation rates and item surcharges are used as the basis of cost price
calculations. Simulation prices for purchased items provide an insight into
possible cost or sales price implications. Cost price calculations can be used to
illustrate possible changes, in addition to actual changes.
Operation Rates
Operating costs are calculated based on the hourly operation rates linked to the
Tasks or Work Centers specified in an item’s routing. An operation rate typically
is defined with a dollar value used to calculate the per hour rate for labor,
machine, and production overhead costs. Once defined, operation rates for labor,
machine, or overhead costs are linked to a price calculation code and an
operation rate code. When the standard cost is calculated, the item routing is
referenced to identify each task or work center involved in the manufacturing of
the item.
Fixed and Variable Costs

An Operation Rate can be identified as a fixed cost or a variable cost. A cost that
is indirectly related to the number of items produced could be considered
variable, such as the maintenance costs on a machine. Maintenance can be
scheduled for a machine based on the number of hours a machine is run or the
number of items produced. The Maintenance can be identified as a variable cost
and not included in the calculation for that operation rate. Therefore, the number
of hours of machine use is related to the number of items produced. In this case,
the maintenance cost is a variable cost. As a second example, you may track
overhead costs that can be charged as an operation rate for a machine to
represent depreciation. Depreciation is independent of the number of items
produced and can be represented as a fixed cost
5-25
\\ Manufacturing \ Cost Price Calculation \ Cost Price Master Data \

Operation Rates (ticpr1150m000)
Operation Rates
Field Description
Type of Operation Costs The type of cost that will be linked to the Operation Rate.
Four operations costs types are available:
Labor: Operation rates are based on a labor
rate/cost.
Machine: Operation rates are based on a machine
rate/cost.
Overhead on Man Hours: Any overhead costs
associated with labor or man-hours. The overhead
costs are calculated by multiplying the number of
man-hours by the entered rate/surcharge.
Overhead on Machine Hours: The rate/surcharge
represents overhead costs, which are based on
man-hours. associated with a machine. The
overhead costs are calculated by multiplying the
number of machine hours by the entered
rate/surcharge
Rate The hourly rate applied to labor, machine, or overhead
costs. This rate is multiplied by the number of hours
required by the operation to calculate the total
production costs.
5-26
Field Description
Cost Component The operation rate is linked to a predefined cost
component to categorize production costs before
transferring them into the Finance module for analysis.
Variable Cost Adds the operation costs maintained in the Operation
Rates (ticpr1150s000) session to the valuation price of
an item, as a variable cost. The variable cost is then
considered when calculating the cost price of an item.
Define an Operation Rate

You can define an operation rate for a given Operation Rate Code.

Operation Rates (ticpr1150m000)
To create a new Operation Rate for Operation Rate Code XXX:
1. Click the New Group icon and enter the Price Calculation Code and
Operation Rate Code using the table values.
Field Input Value

Price Calculation Code 001
Operation Rate Code XXX
5-27
Operation Rates
2. Click the New icon to enter the new Operation Rate using the table data:
Field Input Value

Sequence 10
Description Computer Controlled
Type of Operation Costs Machine
Rate 75
Cost Component MC1
5-28
Operation Rates
You have just created your new Operation Rate that is linked to Operation Rate
Code XXX. You can view the rate in the Operation Rates (ticpr1150m000)
session.
5-29
Operation Rates
Item Surcharges
Surcharges are divided in to either item surcharges or Warehouse surcharges.
You can define surcharges by:
Item group- The surcharge applies to the cost price of all items in the defined
item group. If the Bookings Triggered By field in the Item Surcharges
(ticpr1110m000) session Receipt, the surcharges are added to the receipt
Valuation Price stored in the Item Calculated Valuation Prices (ticpr2540m000)
session.
Item- The surcharge applies to the cost price of the item. If the Bookings
Triggered By field in the Item Surcharges (ticpr1110m000) session is Receipt,
the surcharge is added to the receipt Valuation Price stored in the Item
Calculated Valuation Prices (ticpr2540m000) session.
Warehouse- If the item is linked to the selected warehouse, the surcharge is

added to the item’s cost price. If the item is a component in a BOM, the
corresponding warehouse determines whether the surcharge is added to the cost
price of the item on the highest BOM level. You must select the Surcharges by
Warehouse check box in the Items-Costing (ticpr0107m000) session if you want
to have each warehouse/item combination its own surcharge.
Warehouse/item group-If the item is assigned to the selected warehouse and to

the selected item group, the surcharge is added to the item's cost price. If the
item is a component in a BOM, the warehouse assigned to the component
determines if the surcharge is added to the cost price of the item on the highest
5-30
BOM level. You must select the Surcharges by Warehouse check box in the
Items-Costing (ticpr0107m000) session if you want to have each warehouse/item
combination can have its own surcharge.
Item/warehouse-The surcharge is added to the cost price if the item is linked to

the warehouse. If the item is a component in a BOM, the warehouse assigned to
the component determines if the surcharge is added to the cost price of the item
on the highest BOM level. A surcharge is used to make an adjustment to an
existing cost. The adjustment can be positive or negative. A surcharge can be
expressed as a fixed amount or as a percentage of an existing cost. For
instance, a surcharge could be used to charge a customer for storage costs.
Surcharges allow indirect costs to be considered when calculating production
costs. Surcharges can be applied at the Item Group, Item, or Warehouse level.
If no warehouse is specified, the surcharge applies to the item for all transactions
regardless of the warehouse it is in.
If a warehouse is specified in the Item Surcharges (ticpr1110m000) session, the

surcharge is an item warehouse surcharge. Based on the setting of the Booking
Triggered by field, the surcharge is only applied when the item is issued or
received into the warehouse specified in the Warehouse field. The warehouse
surcharge is included in the standard cost only if the warehouse specified
matches the default warehouse in the General Item Data (tcibd0101m000)
session.
5-31
\\ Manufacturing \ Cost Price Calculation \ Cost Price Master Data \ Item

Surcharges (ticpr1110m000)
Item Surcharges (General Tab)
Field Description
Price Calculation Code Determines the cost-price calculation data that is used
to calculate a cost, valuation, or sales price. Cost
calculation data (such as, operation rates, surcharges,
subcontracting rates, and simulated purchase prices)
are stored under this code.
Booking Triggered by The moment at which the surcharge is added to the
valuation price of the item or item group. Two Booking
Triggered By options are available:
Receipt: Surcharges are added to the valuation
price when the items are received into the
warehouse.
Issue: Surcharges are added to the valuation price
when an item is issued from the warehouse to work-
in-process or as material on a service order.
5-32
Field Description
Calculation Line type Determines how a surcharge is calculated. Three
calculation line types are available:
Surcharge: Directly applies a surcharge.
Subtotal: Calculates a sub total for all surcharges
made for reporting purposes only.
Cumulative Cost Price: Calculates a sub total for
all cost prices including material, operation, and
surcharge costs. This is only for reporting purposes.
Variable Cost Includes the surcharge as a variable cost. The variable
cost is then considered when calculating the cost price
of an item.
Entering surcharge data is only required if the Calculation Line Type field within
the General tab is set to Surcharge. The Surcharges tab provides the ability to
determine the method of the surcharge.
Item Surcharges (Surcharges Tab)
5-33
Field Input Value

Surcharge Method The method used to determine a surcharge. Five
surcharge methods are available:
Fixed Amount: The surcharge is based on a fixed
amount and can be either positive or negative.
% of Total Costs: The surcharge is based on a
percentage of the cost price and can be positive or
negative.
% of Added Costs: The surcharge is based on the
percentage of the additional costs incurred by a
manufactured item, such as the direct operation
costs. Costs of this type are excessive and therefore
demand a surcharge.
% Selective (Total Costs): The surcharge is based
on a percentage of the total cost price. It allows
surcharges to be applied for an item by cost
component.
% Selective (Added Costs): The surcharge is
based on a percentage of the added cost price. It
allows surcharges to be applied for an item by cost
component but only for added costs.
Surcharge Component The cost component to which the surcharge is linked.
Only cost components of the type Surch. on Operation
Costs and Surch. on Material Costs can be used for a
surcharge.
Business Example
In order to recoup the tooling costs for the injection mold machine, a fixed
amount surcharge can be created and charged as an Surcharge against an Item
or Item group that use the Injection Mold machine. The surcharge amount must
be equal to the cost of the tooling.
Add an Item Surcharge

You can add a surcharge to an item that will be added to the standard cost of
that item. Item surcharges are the basis for extra costs and discounts (in terms of
the percentage of fixed amounts) in the cost/valuation price structure for items.
You can add a surcharge to such item costs as Operation, Overhead, Materials,
etc.
It is assumed that you have defined data such as:
Item Costing (ticpr0107m000) – Enable Surcharges
5-34
Warehouse-Item (whwmd2510m000) – Set FTP (Fixed Transfer Price) as the

Valuation Method.
\\ Manufacturing \ Cost Price Calculation \ Cost Price Master Data \ Item

Surcharges (ticpr1100m000)
To define a new Item Surcharge for an item (that will be included in the Standard
Cost for that item):
1. Click the New Group icon and enter the New Group values:
Field Input Value

Item Group Leave Blank
Item STEEL_TUBE_1
Item Surcharges
2. Click the New icon and insert the new Surcharge data in the table:
5-35
General
Field Input Value
Booking Triggered By Receipt
Warehouse 001
Sequence Number 10
Description Std Item Surcharge
Calculation Line Type Surcharge
Item Surcharges – General tab
Surcharges
Field Input Value
Surcharge Method Fixed Amount
Surcharge Amount $15.00
Surcharge Component 300
5-36
Item Surcharges – Surcharges tab
You can now view your new item surcharge that will be added to the standard
cost of the item.
Item Surcharges
5-37
Simulate Purchase Prices

Purchase items will not necessarily be associated with operation costs like
manufactured items. The cost of a purchase item may fluctuate dramatically or
be unknown. If all item prices are not considered for a finished product, then the
total cost price of that product can be significantly lower than it actually is.
Purchase prices can be simulated to compensate for such factors as price
fluctuations. It is used in price calculations to attain the most accurate costing
information. A simulated purchase price must be associated with a price
calculation code.

Simulated Purchase Prices (ticpr1170m000)
Simulated Purchase Prices
Field Description
Simulated Purchase Price The simulated purchase price and currency are
recorded twice. The price in this field is related to the
item itself. The amount in the Sim. Pur. Pr. Mul. Curr.
field is related to the price of the supplier.
Simulated Purchase Price The simulated purchase price and currency are
Multi Currency recorded twice. The price in the Simulated Purchase
Price field is related to the item itself. The amount in this
field is related to the price of the supplier.
5-38
Field Description
Cost Component The cost component to track the simulated price. This
must be of the type Material.
Simulate the Purchase Price

Once price changes have been entered, you will want to simulate the purchase
price to view the effect of the price change.

Simulated Purchase Prices (ticpr1170m000)
Simulate the purchase price for Cost Price Calculation Code SMR for the item
Cloth
1. Click the New Group icon and enter the Cost Price Calculation Code SP1.
2. Click the New icon to enter the item data for the simulation using the table
data”
Field Input Value

Item Cloth
Simulated Purchase Price $85.00
Cost Component 100
5-39
Simulated Purchase Prices
3. Save and exit.
Run the Calculate Standard Cost and Valuation Prices (ticpr2210m000) session
and view the new cost price.
\\ Manufacturing \ Cost Price Calculation \ Cost Price Calculation \

Calculations and Maintenance \ Calculate Cost and Valuation Prices
(ticpr2210m000)
The simulated purchase price will be reflected in the calculated cost price for item
CLOTH that you simulated the purchase price.
4. Enter the item or range of items you wish to view the change using the
simulated purchase price and click the Calculate button.
5. The display will show the new price for CLOTH as $85.00.
5-40
Calculate Cost Prices

It is advisable to use the most recent costing information when considering the
cost of an item. A cost price can be calculated or recalculated multiple times
using price calculation data. The price of an item will not be changed until the
information is actualized. This functionality is useful when simulating or
estimating prices for an item
The Flow: Calculate Cost Prices
Start
Calculate the standard cost for an

item
Caclulate Cost and Valuation
Prices
(ticpr2210m000)
Updte the standard cost price
Actualize Cost and Valuation
Prices
(ticpr2220m000)
Print multilevel cost prices

Print Multilevel Cost and Valuation
Prices
(ticpr2420m000)
End
Calculate Cost and Valuation Prices

You can calculate the standard cost, simulate costs, or perform valuation
calculations in the Calculate Cost and Valuation Prices (ticpr2210m000) session.
If the standard cost or a cost simulation is being performed on manufactured
items, the application will reference the routing for the operation rate codes to
obtain operation rates and the BOM for material costs. After the application
references the routing and BOM, then the item’s cost calculation is performed.
The costing information can be calculated based on two types of prices, cost
price and valuation price. The cost price uses Item Production Data, Bill of
Material, Routing, and Calculation Data to determine a fixed price. This price can
be used for simulation purposes and is known as the Fixed Transfer Price (FTP)
5-41
or standard cost. The valuation price is calculated based on an inventory

valuation method, for example, LIFO or FIFO. The valuation method determines
the value of on-hand inventory and is defined for each item/warehouse
combination. Inventory value is likely to fluctuate over time; therefore the
valuation price is likely to be different from the cost price, if the valuation is
different than the Fixed Transfer Price.

Calculations and Maintenance \ Calculate Cost and Valuation Prices
(ticpr2210m000)
Field Description
Price Calculation Code Determines how the cost price, valuation price, or sales
price is calculated. The code is linked to the Operation
Rate and determines the calculation.
The code defined in the CPR Parameters determines
the standard cost price. Other price calculation codes
are used for simulation purposes.
5-42
Field Description
Cost Price Calculation Indicates how the system goes through an items
Method structure when calculating the cost. The methods are:
Top down: The calculation is performed only to the
selected item and any item that occurs at a lower level
in a multilevel BOM.
Bottom Up: The calculation is performed only to the
selected item and any item above the selected item in
the BOM that could change price due to the change in
price of the selected item.
Single Level: The cost price is calculated for the
selected item. Cost prices of items in a lower level in the
BOM are not adjusted.
Only Items without a If the check box is checked, the cost and valuation
Standard Cost Price prices are calculated for items which have not already
had the cost price calculated. When a number of items
have been created, you can select this option and a
range of items, only the new items will have the cost
price calculated. Item within the selection range that
already have a cost price will not be re calculated.
Actualize Standard Cost If the check box is selected, the cost and/or valuation
and Valuation Prices prices are updated for the item. If not selected, you can
view the calculation results, but the cost prices will not
be updated in the data base for the item.
Calculate the Standard Cost Price

You can calculate the cost price for an item by running the Calculate Cost and
Valuation Prices (ticpr2210m000) session using the desired date range.
\\ Manufacturing \ Cost Price Calculation \ Calculations and Maintenance \

Calculate Cost and Valuation Prices (ticpr2210m000)
To calculate the standard cost price for a given range:
1. Enter your desired item or item range, but do not select the Actualize Cost
and Valuation Prices check box.
Field Input Value

From Item FAB.0001
To Item FAB.0001
5-43
Field Input Value

Calculation Method Top Down
Actualize Standard Cost Do not select the check box
and Valuation
Cost Price Calculation for item FAB.0001
Do not select the Actualize Cost and Valuation Prices check box unless you are
sure the results of the calculation are correct and you are ready to update the
standard cost price of the item.
The calculated cost price can be viewed before the cost is actualized.
View the Item Cost Data

View the new cost price data from the calculation.
5-44
\\ Manufacturing \ Cost Price Calculation \ Cost Price Master Data \ Item –

Costing Data (ticpr3501m000)
Sub-session: Cost Prices (ticpr2500m000)
View the cost prices.
Item Cost Data for item FAB.0001
Actualize the Cost Price

You can make the calculated standard cost price and the valuation price actual
as follows:
For standard items in the Calculate Cost and Valuation Prices

(ticpr2210m000) session and the Actualize Standard Cost and Valuation
Prices (ticpr2220m000) session.
For customized items in the Calculate Cost Prices by Project

(tipcs3250m000) session.
During the actualization process, the cost component structure (consisting of the
aggregated and detailed cost components), the cost price, and the valuation
price are made effective. In other words, the structure and prices are stored for
an item for a certain date. After the actualization, the effective cost component
structure can be viewed, for example, in the Effective Cost Component Structure
by Assembly Line and Item (ticpr3161m000) session.
5-45
If an item's cost component structure has changed, or the valuation price or cost
price for an FTP item, Warehouse Management adjusts the inventory value of a
warehouse. The inventory value adjustment processes the actual order price into
the inventory value of the items. The value correction is posted to Financials and
is stored under a revaluation order code. The revaluation order code is generated
automatically and can be viewed in the Item – Standard Costing Data
(ticpr3501m000) session. You can use the revaluation code in Warehouse
Management to track the valuation changes.

Calculation and Maintenance \ Actualize Standard Cost and Valuation
Prices (ticpr2220m000)
Actualize Standard Cost and Valuation Prices
Business Example
A supplier has confirmed the new purchase price for granular plastic. An
alternative supplier cannot be found at a more competitive price and so the
decision is taken to accept the price increase. The cost price calculation for the
seat assembly for the chair must now be actualized in order to update the item’s
standard cost to reflect the new standard cost
5-46
Exercise: View the Current Cost Price for an Item

Item SEAT_1 has a routing that uses Operation Rate Code MAN linked to work
Center CWC1_1. You will view the current cost price structure of item SEAT_1.
Then you modify the work center to use a new Operation Rate Code XX1 that
you define. This new operation rate code consists of new machine and labor
costs used to manufacture the item SEAT_1. The Work Center is linked to the
Routing for item SEAT_1 and will change the standard cost price when you
indicate the new Operation Rate Code XX1 for the work center. You will then
recalculate the cost price for item SEAT_1 and view the result of modifying the
cost information for an item.

Standard Costing Data (ticpr3501m000)
Select the item SEAT_1 and from the Specific Menu select the Cost Prices
option.
View the Cost Price Details.
Standard Cost Prices for item SEAT_1
The standard cost price for item SEAT_1 is $97.50. Materials are the
components of item SEAT_1 and consist of $17.50 and the Operation rates
consist of labor and machine operations from the routing and are $80.00.
5-47
Exercise: Define an Operation Rate

Manufacturing a chair requires the use of a welding machine. You must define an
operation rate code and the operation rates that represent the cost of operating
the machine. An operation rate to represent the labor rate and the machine rate
will be defined. Operation rates can be linked to an Operation Rate Code and
attached to a Task or Work Center.
Define an operation rate code for your welding machine (to represent both the
machine and labor rates) using these values.

Field Input Value
Operation Rate Code XX1 (Replace XX with your Initials)
Currency EUR
Field Input Value

Sequence Number 10
Description Welding Machine Rate
Operation Rate Type Machine
Rate $120.00
Cost Component XXM (Replace XX with your initials)
Sequence Number 20
Description Welding Labor Rate
Operation Rate Type Labor
Rate $45.00
Cost Component XXL (Replace XX with your initials)
5-48
Operation Rates
Exercise: Link Operation Rate Code to a Work Center

Item SEAT_1 has a routing that uses work center CWC1_1. This work center will
be assigned the new Operation Rate Code XX1 to represent a change in the
machine and Labor rate. When the new standard cost price is calculated, the
new machine and labor rate linked to the work center will be used.
Change the Operation Rate Code for Work Center CWC1_1.
\\ Manufacturing \ Routing \ Work Centers (tirou0101m000)

Change the Operation Rate Code from MAN to XX1 (Replace XX with your
initials)
5-49
Work Centers
Exercise: Calculate Cost Price

The new Operation Rate Code which defines the machine and labor rates
applicable to work center CWC1_1 will now be applied when a cost price
calculation is performed on an item that has a routing that uses work center
CWC1_1.
Calculate the cost price for item SEAT_1 again to view the changes to the cost
price calculation using the new machine and labor rates associated to operation
rate code XX1 (replace XX with your initials).
\\ Manufacturing \ Cost Price Calculation \ Cost Price Calculation \ Calculate

Cost and Valuation Prices (ticpr2210m000)
Enter the item SEAT_1 and check the box to Actualize Standard Cost and
Valuation Prices.
5-50
Calculate the cost price
Calculate Cost and Valuation Prices for SEAT_1
Exercise: View New Cost Price Structure

View the new cost price for the item SEAT_1.

Select the record with the most current date stamp for item SEAT_1
From the Specific Menu select the Cost Prices option.
5-51
Standard Cost Price for Item SEAT_1
Notice the operation rates for item SEAT_1 have changed to $67.50 using the
new Operation Rate Code XX1 you linked to the work center in the routing. When
the system recalculated the standard cost price, it used the new operation rates
and gave a new standard cost price. Remember the original operation rate was
$80.00 that came from the Operation Rate Code MAN.
Exercise: View Cost Price Details

You can view the cost price component details as well for the item SEAT_1. This
is a breakdown of the aggregated operation rates. Remember you specified the
Cost Component for the Welding Machine Rate as XXM (replace XX with your
initials) and the Welding Labor Rate as XXL (replace XX with your initials)

Sub-session: Cost Price Details (ticpr3500m000)
Select the record with the most current date stamp for item SEAT_1
From the Specific Menu select the Cost Prices Details option.
5-52
Standard Cost Price Details for SEAT_1
Notice the cost components are broken down into XXL and XXM representing
the individual costs for machine and labor rates you specified under Operation
Rate Code XX1. The total of the three cost components listed is the total
aggregated operation costs which are $67.50 as you saw in the Cost Prices sub
session.
Print Multi-level Cost Price Calculation

This session is used to print calculations of standard cost prices and valuation
prices for each level of a manufactured item's product structure. You can print
calculations of simulated cost/valuation prices as well.
If you only want to print calculations on the item level as specified in the Item
field, you must use the Print Cost Price Calculation by Item (ticpr2410m000)
session
5-53
\\ Common \ Cost Price Calculation \ Comparison and Calculation Reports \

Print Multilevel Cost Price Calculation (ticpr2420m000)
Print Multilevel Cost Price Calculation
Field Description
Cost Price The date for which you want to print cost price calculation data.
Calculation Date
The cost-price calculation date is important to simulate
cost/valuation price calculations on a date other than the current
date. It can lie in the future or in the past. On the basis of this
date, the system automatically simulates the structure of the
product and the routing as they exist on the given cost
calculation date. The current date is shown by default.
5-54
Field Description
Economic Order If this check box is selected, the economic order quantity of the
Quantity Main Item main item is used to calculate the quantities of the sub-items.
The economic order quantity is entered in the Items – Ordering
(tcibd2500m000) session.
If this check box is cleared, you must enter a value in the Use
Order Quantity field. This value is used to calculate the
quantities of the sub-items.
Use Order Quantity The order quantity of the main item on which the cost price
calculation is based. You can only enter a value if the Economic
Order Quantity Main Item check box is not selected.
The default value of this field is the economic order quantity of
the main item as defined in the Items – Ordering
(tcibd2500m000) details session.
Economic Order This check box only applies to cost prices and valuation prices
Quantity Sub Items that are calculated with price calculation codes other than the
standard price calculation code in the Cost Price Calculation
Parameters (ticpr0100m000) session.
If this check box is selected, the cost/valuation prices of the sub-
items are based on the economic order quantity of the sub-
items. The system computes the cost/valuation price of the main
item using the sub-items' cost/valuation prices.
Example
Amount Ec.Order.Qty
Main Item Bicycle 1x 5
Sub-item Wheel 2x 15
Sub-item .... ...... etc
Cost price of Wheel based on 15 items is: 100
Cost price of Main Item:
2x Wheel at 100 = 200
Order quantity of Wheel is 5 x 2= 10
Cost price of Wheel is based on 10 items: 105
Cost price of Main Item:
2x Wheel at 105 = 210
Details by Cost If this check box is selected, the details of the cost/valuation
Component price calculation are printed by cost component.
Include Fixed Costs If this check box is selected, costs such as operation rates or
surcharges that you defined as fixed costs are printed.
5-55
Print a Multi-Level Cost Price Calculation

The item CHAIR is an end item consisting of a multilevel BOM. To view the Cost
Price structure of the chair and the components, print the multilevel cost price
calculation.
\\ Common \ Cost Price Calculation \ Comparison and Calculation Reports \

Print Multilevel Cost Price Calculation (ticpr2420m000)
The printed report contains multiple pages of data. The example here displays
the end item CHAIR and the multilevel cost price calculation for the component
SEAT and the level 2 components for the item SEAT. The amount in this
example is $0.00 because the routing and BOM are not set for the item CHAIR or
SEAT. Also, the purchase price for the level 2 components is $0.00.
Sample of Multi Level Cost Price Calculation for item CHAIR
5-56
Lesson Review
In this lesson you learned how to:
Set up cost prices.
Define item surcharges for an item.
Simulate a purchase price for an item.
Calculate the cost and the valuation price for an item.
View Cost Price results
5-57
Review Questions
1. Price Calculation Code 001 is defined in the CPR Parameters. You are
calculating costs for a range of items using Price Calculation Code 002. You
can simulate the cost price for the items with Price Calculation Code 002,
then select the Actualize option to update the standard cost of these items if
you are satisfied with the simulation.
A. True
B. False
2. The Cost price breakdown for a manufactured item consists of: (Enter a Yes
or No)
A. _____ The Material Costs
B. _____The Operation Costs
C. _____The Tax Charges
D. _____ The Carrying Costs
E. _____ The Overhead Costs
F. _____ The Sales Price.
3. Operation Rate Codes can be applied on the Operation or the Work Center or
on both the Operation and Work Center.
A. True
B. False
5-58
1. False (You can only Actualize the cost prices for items that are calculated
using the Actual Cost Price Calculation Code defined in the CPR parameters)
2. A, B, E (The Material, Operation, and Overhead comprise the three main

components in the cost price of an item.)
3. True (Depending on the parameter setting in CPR Parameters, you can

record the Operation Rate Code by Work Center or Operation, or both)
5-59
6
Business Partners
Business Partners are used to represent customers and suppliers. When a

Business Partner record is created, roles are assigned for the business partner
that determine if the business partner is a customer or supplier in relation to your
organization.
Lesson Objectives
After completing this lesson you will be able to:
6-1
The Flow: Business Partners
Start
Define Business Partner General

Data
Business Partners
(tccom4500m000)
Customer or
Customer Roles Supplier Roles
Supplier?
Define buyer information Define Supplying information
Sold-to Business Partners Buy-from Business Partners
(tccom4110s000) (tcom4120s000)
Define the shipping details Define supplier shipping details

Ship-to Business Partners Ship-from Business Partners
(tccom4111s000) (tccom4121s000)
Define the customer invoicing Define the supplier invoicing

information information
Invoice-to Business Partners Invoice-from Business Partners
(tccom4112s000) (tccom4122s000)
Define the payment information Define the payment information

Pay-by Business Partners Pay-to Business Partners
(tccom4114s000) (tccom4124s000)
End
If the Business Partner will act as a Supplier and Customer to your organization,
then define all eight Business Partner Roles.
6-2
6 Business Partners
Business Partners
A Business Partner represents a party with whom you carry out business
transactions. You can also specify departments within your organization that act
as customers or suppliers between logistical companies or between enterprise
units and define these departments as business partners.
The business partner master data specifies information such as:
The organization or department name and main address
The language and currency used for the business partner
Taxation and legal identification data.
Business Partner Types

Business partners can also represent entities within your organization. Due to the
dynamic structure of organizations, there may be times when goods flow occurs
between entities and between logistics companies. To handle these instances,
Internal and Affiliated business partners can be defined.
Internal Business Partner

An internal business partner is used to transfer goods and invoice goods
between Enterprise Units within the same logistics company. The use of internal
business partners enables modeling the goods flow between enterprise units and
the corresponding financial transactions. An internal business partner must have
all the business partner roles defined.
6-3
Internal Business Partner
Business Example
There are several manufacturing facilities that produce different parts for high-
speed trains. One facility assembles frames for the passenger seats. This facility
then ships the frames to another facility where the final assembly is completed.
This transaction generates internal invoices from the first to the second facility.
This transaction generates internal sales that must be recorded. By creating an
internal business partner associated with each Enterprise Unit, you can record
the invoice and transfer of goods from one facility to the other.
Affiliated Business Partner

The affiliated business partner actually represents a separate logistics company
that acts as a business partner to another logistics company in the organizational
structure. You create a business partner and define the sold-to for one affiliated
business partner, and the buy-from fro the other. Essentially you create two
business partners that are affiliated, one to act as the supplier and one for the
customer.
6-4
6 Business Partners
Affiliated Business Partner
Business Example
Your company has two main manufacturing entities and each is financially
separate. On occasion, you transfer goods from one facility to the other, for
example; when company 100 runs low on fabric RAW.0001 you can supply
additional fabric RAW.0001 from company 101. To account for this transfer of
goods you create a Business Partner in company 100 that is affiliated to
company 101 and create a business partner in 101 that is affiliated to company
100. You can then place orders between the two business partners to record the
flow of goods and financial transactions between the two companies.
Exercise: Identify the Business Partner Type

To exchange goods between warehouses in the same logistical company but
reporting to different Enterprise Units, what Business Partner type would you
create? Affiliated or Internal?
______________________________________________________________
Business Partner Status

The status for the business partner determines if you can create sales orders,
shipments, invoices, or make payments to a business partner. The available
status for a business partner include:
Active – business transactions can be entered for this business partner.
Inactive – business transactions cannot be entered for this business partner.
6-5
Potential – orders and contracts cannot be entered but quotes can be

entered.
The Invoice-to business partner role can also have the status Doubtful. This
enables sales orders for the business partner with this status to be blocked.
When a check is made for the status of the business partner the sequence is to
check:
The business partner role.
The business partner master data.
The parent business partner
\\ Common \ General Data \ Business Partners \ Business Partners

(tccom4500m000)
Business Partners (General tab)
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6 Business Partners
Field Description
Search Key Provides the general data for locating a business
partner record. This defaults from the Name, but can be
changed manually.
Parent Identifies the parent business partner this record is
related. This is used when a hierarchical role exists
between business partners and a parent-child
relationship exists.
Business Partner Status The status determines if transactions can be conducted
with the business partner as well as what type of
transactions. Available options:
Active
Inactive
Potential
The status is valid based on the date range entered.
6-7
Business Partners (Detailed tab)
Field Description
Language Designates the language for correspondence with the
business partner.
Currency The currency for initial transactions with the business
partner for quotes and requests for quotes. The system
will then use the currency specified in the Invoice-to or
Invoice-from business partner roles.
One Time Business Partner Indicates this business partner is used to represent
temporary contacts. For example if you do not regularly
do business with an individual or several individuals, you
may create one or more one-time business partners to
record any transactions with these individuals.
6-8
6 Business Partners
Business Partners (Enterprise Modeling tab)
Field Description
Internal Business Partner Indicates if this business partner is used to track goods
transfers and the associated financial transactions
between enterprise unites within your logistic company.
Affiliated Company Indicates if the business partner is affiliated. An affiliated
company business partner can conduct transactions
with other logistic companies in your organization. The
affiliated business partner is used to record and track
the sale, purchase, transfer of goods between logistic
companies.
Affiliated Company Number If you indicate the business partner is affiliated, you
specify the company number the business partner is
associated with. This is the company that you will
conduct goods and financial transactions with for this
business partner.
6-9
Business Partner Roles

The business partner's role determines the types of transactions you can carry
out with the business partner. For example, you can only ship goods to a
business partner with a ship-to role.
Business Partner roles are defined within the General tab in the Business
Partners (tccom4100s000) session. Roles define the functions (such as Buy-
from, Ship-from, etc.) of the Business Partner that conducts business with your
organization. These roles can be related to buying and/or selling. You define
roles by selecting any of the Roles buttons. Roles define the business
relationship, customer, supplier (or both customer and supplier), and their
appropriate transactions. These transactions identify where billing, invoicing,
payments, shipping, etc. activities will occur. Because organizations are dynamic
in structure, different departments or offices in several locations may be involved
in one business transaction with your organization. Roles allow you to identify
each Business Partner’s function.
Example of Business Partners/Parent-Child Relationship
The graphic the logic used to assign roles to transactions (in this case a
Purchase Order) when a parent-child relationship exists. In reality, Parent A may
send the invoice because they are listed as an Invoice-from Business Partner,
while the Purchase Order was actually placed with the Buy-from (Child 1)
Business Partner. By defining different roles for each Business Partner, multiple
Business Partners can participate in one transaction.
The business partner's roles also enable you to address the correct office and
contact, for each part of a business transaction. For example, your customer's
sales office, accounts payable office, and warehouse can all be at different
locations or even in different countries. In the business-partner's role details you
define for each office or warehouse:
6-10
6 Business Partners
The status
The main language
The address
The contact
The calendar
Depending upon the roles defined you determine if a business partner acts as a
supplier or customer with your organization. If you define all eight roles, the
business partner can act a both a supplier and customer.
Business Partner Roles
Customer Roles
Customer business partners with a status of Active must have all customer roles
defined for that customer or within the parent-child hierarchy if one exists for that
business partner.
The business partner roles associated with a customer are:
Sold-to
Ship-to
Invoice-to
Pay-by
6-11
The Flow: Business Partner Customer Roles
Start

Data
Business Partners
(tccom4500m000)
Define buyer information

Sold-to Business Partners
(tccom4110s000)
Define the shipping details

Ship-to Business Partners
(tccom4111s000)
Define the customer invoicing

information
Invoice-to Business Partners
(tccom4112s000)
Define the payment information
Pay-by Business Partners
(tccom4114s000)
End
Business Example
Standard Chair Company will be added to the database. The new business
partner will be a customer. Since Standard Chair Company has two distribution
points and you may receive orders from either, you will enter a parent child
hierarchy with two business partner records. The main office will be business
partner CUS000019 and the secondary distribution office will be business partner
CUS000020.All invoices and payments will be through the main office, the
distribution office will only place orders and receive shipments. The business
partner records would be set up accordingly:
6-12
6 Business Partners
Supplier Roles
Supplier business partners with a status of active must have all the supplier roles
defined, either for that business partner record or within the parent-child
hierarchy in order to complete transactions for that business partner.
The business partner roles that relate to a supplier are:
Buy-from
Ship-from
Invoice-from
Pay-to
6-13
The Flow: Supplier Business Partner Roles
Start

Data
Business Partners
(tccom4500m000)
Define buyer information

Sold-to Business Partners
(tccom4110s000)
Define the shipping details

Ship-to Business Partners
(tccom4111s000)
Define the customer invoicing

information
Invoice-to Business Partners
(tccom4112s000)
Define the payment information
Pay-by Business Partners
(tccom4114s000)
End
Define a Customer Business Partner and the Business

Partner Roles
A new customer A&C Inc. will be purchasing chairs from your company. Before
you can enter sales orders, A&C Inc. must be set up as a business partner.

(tccom4500m000)
Insert a new Business Partner record.
1. Click the New icon and enter the Series CUS since A&C Inc. will be a
customer.
2. Enter A&C Inc. for the description.
6-14
6 Business Partners
3. Enter the Address code ADD000049.
4. Set the status to Active from today’s date.
5. Save the record.
6. Define the Sold To, Ship To, Invoice To, and Pay By roles for the business
partner.
When the new customer record is saved, the system generated the Business
Partner code, CUS000008. Note the check boxes next to the roles associated
with a customer Business Partner are checked indicating the roles have been
defined.
Business Partner Record for A&C Inc.
6-15
Define a Supplier Business Partner and the Business

Partner Roles
A new supplier, Dexter Supply Company, will be supplying fabric for chairs to
your company. Before you can enter purchase orders, Dexter Supply Company.
must be set up as a business partner.

(tccom4500m000)
Insert a new Business Partner record.
1. Click the New icon and enter the Series SUP since Dexter Supply Company.
will be a customer.
2. Enter Dexter Supply Company. for the description.
3. Enter the Address code ADD000050.
4. Set the status to Active from today’s date.
5. Save the record.
6. Define the Buy From, Ship From, Invoice From, and Pay To roles for the
business partner.
When the new supplier record is saved, the system generated the Business
Partner code, SUP000005. Note the check boxes next to the roles associated
with a supplier Business Partner are checked indicating the roles have been
defined.
6-16
6 Business Partners
Supplier Business Partner Record
Exercise: Define Business Partners

Define three new business partners. Define one Supplier, one Customer, and
one business partner with all eight roles defined to act as both a supplier and
customer.

(tccom4500m000)
Create the new business partner records.
Customer Business Partner

Field Input Value
Business Partner CUS
Name (Your Name) Customer
6-17
Field Input Value

Address Code Select an address or zoom and create a new
address.
Status Active
Define the Sold to, Ship to, Invoice to, and Pay by roles for the Business Partner.
Use the default data or enter data in the required fields.
What occurs when you try to save a business partner role when a required field
is not filled?
Supplier Business Partner

Field Input Value
Business Partner SUP
Name (Your Name) Supplier
address.
Status Active
Define the Buy from, Ship from, Invoice from, and Pay to business partner roles.
Use the default data or enter data in the required fields.
What type of data commonly defaults from the business partner header to the
roles?
Supplier and Customer Business Partner

Field Input Value
Business Partner BPG
Name (Your Name) General Business Partner
6-18
6 Business Partners
Field Input Value

address.
Status Active
Define the Buy from, Ship from, Invoice from, and Pay to supplier roles as well as
the Sold to, Ship to, Invoice to, and Pay by customer roles.
6-19
Lesson Review
In this lesson you learned to:
6-20
6 Business Partners
Review Questions
1. Which statement is correct regarding Business Partners
A. Business Partners require all eight roles defined in order to be valid for
use on an order.
B. A business partner can represent a customer, supplier, internal, or

affiliated entity that conducts business with your organization.
C. A customer business partner cannot also act as a supplier business

partner.
2. A business partner with the status Potential means that the business partner
is available for placing orders, but the order will be placed on hold.
D. True
E. False
3. A Business Partner must have all the supplier or customer roles defined
even if there exists a parent child hierarchy.
A. True
B. False
6-21
1. B
2. B (You can create quotes, but orders are not allowed to be created)
3. B (False: a business partner must have all the customer or supplier roles
defined for them self to be eligible for orders to be fully processed. If there is
a parent child hierarchy, then the customer or supplier roles need to be
defined only for the business partner executing that role.
6-22
7
People
People is an entirely new package designed to centralize Hours Accounting into

one location. The purpose of People is to handle hours accounting within one
package.
Using the People package enables users to enter and process hours and
expenses. The costs from the processing of these hours and expenses can be
booked within the originating logistics packages consisting of:
Project
Manufacturing
Service
Quality Management
Financials
Lesson Objectives
7-1
People Master Data

Master Date for the People module involves defining employees, skills, teams,
and, labor types, schedules and other similar information. The master data, once
defined, is used
Employee Dashboard
A session has been created to enable dynamic access to multiple sessions
dealing with employees and hours accounting. The session in used to access
multiple tasks from a single point. You can use this session to view and maintain
employee data.
You can carry out the following tasks from the dashboard:
Create, view and maintain employee-related data that is stored in the tables,
for example, data on employment, skills, etc.
Check, maintain and process hours and expenses as accounted for an

employee.
When you select an employee, the information defined for that employee will be
displayed in the Details section of the dashboard.
\\ People \ Employee Dashboard (bpmdm0101m100)
Employee Dashboard
7-2
7 People
Group Box Description

Details When you click on an employee record in the lower
portion of the screen, the employee default information
from the Employee-General (tccom0101m000) and the
Employee-People (bpmdm0101m000) data is displayed.
Year/Period The year/period of the record you are viewing for the
employee.
Employee Details The Employee Details group box provides links to
master data and hours accounting sessions commonly
used within the People package. This provides the
ability to access several data sessions from the
dashboard eliminating the need for menu navigation.
Once data is defined for one of the Employee Details
sessions, a checkbox will be displayed over the Details
icon to the left of the session link.
When you select the check box next to an employee name, the options under the
Employee Details become activated. You can then access these sessions
directly for data and hours entry.
7-3
The Flow: People Master Data Flow
Start
Define the parameters

People Parameters
(tbpmdm0100m000)
Define the general employee

record
Employees - General
(ttccom0101m000)
Define the People specific

employee data
Employees- People
(tbpmdm0101m000)
Define general tasks

General Tasks
(bpmdm0150m000)
Create general expense codes

General Expense Codes
(bpmdm0155m000)
Create assignements to apply to

employees
Assignments
(bpmdm0130m000)
Establish schedule codes to create

working schedules
Working Time Schedule Codes
(tcppl1101m000)
End
This is the basic flow for establishing People Master Data is depicted. There are
additional master data sessions included for informational purposes.
7-4
7 People
People Parameters
The People Parameters (bpbdm0100m000) session defines the basic and default
data for the People package. The Process Labor Costs/Expenses tab enables
you to specify how the labor transactions are processed. The options for
processing are:
Direct: Hours are processed immediately after closing the hours accounting
session or after hours are entered and saved.
In Batches: Hours are processed using the Process Hours and Expenses
(bptmm1203m000) session.
Approval Required: Hours can only be processed once the hours are
approved manually using the Global (Undo) Approve Hours and Expenses
If backflushing is used to register hours, the approval and processing of hours is

automatic and will not be affected by the processing settings.
\\ People \ Master Data \ People Parameters (bpmdm0100m000)
People Parameters (General tab)
7-5
Field Description
Period Table Code The code represents the year and period you will use for
hours registration.
Default Labor Type The labor type that is used for recording assignments,
registering hours, and budgeting by default.
Availability Type The default availability to determine workdays used in
assignments and for budget hours.
Direct Time Reporting Indicates manufacturing hours for a task can be entered
directly. The task start date is set to the current date and
time stamp. When hours are entered for the next task.
The previous line is automatically closed.
Use Registration Indicates only users that have been authorized using the
Authorization Registration Authorizations (bpmdm0110m000) session
can enter hours.
Use Approval Authorization Indicates that only users authorized in the Approval
Authorizations (bpmdm0111m000) session can approve
hours and expenses.
People Parameters (Process Labor Costs/Expenses tab)
7-6
7 People
Field Description
Approval Required Indicates the hours registered for the module can only
be processed once they have been manually approved
through the Global (Undo) Approve Hours and
Expenses (bptmm1202m000) session.
Employees – General
The Employees – General (tccom0101m000) session is used to record the basic
employee data. The employee must be entered in this session before detailed
people data can be entered in the Employee – People (bpmdm0101m000)
session.
\\ People \ Master Data \ Employees – General (tccom0101m000)
7-7
Field Description
Employee Code representing the employee.
Language Language you will print the work instructions for the
employee.
Department The department assigned to the employee. This is used
for capacity planning for the department.
Logon Code The employee user logon is the code used to log into
the ERP application.
Labor Rate The rate used to specify the sales rate and cost rate for
this employee.
Cost Component The account where the costs associated with this
employee are recorded.
Calendar Code The calendar for this employee. Used to specify the
employee availability.
Define Employee
Define a new employee and specify the general information for the new
employee.
Create a record for the employee Sharon Stills using the employee code 4546.
\\ People \ Master Data \ Employees – General (tccom0101m000)

1. Click the New icon and enter the employee code, name and general
information.
Field Input Value

Employee 4546
Name Sharon Stills
Language English
Department PUR1
The completed record now identifies Sharon Stills and the associated general
information.
7-8
7 People
Employees-General
Employees – People
This session is used to define data specific to the People package. You must first
define the employee in the Employees – General (tccom0101m000) session
where you define the general information for the employee, then you can define
the people related data in this session.
7-9
\\ People \ Master Data \ Employees – People (bpmdm0101m000)
Field Description
Address The address for the location of this employee.
Working Time Schedule The code used for hours accounting with this employee.
Employment The number of hours in the period the employee works.
This is based on the number of periods defined under
the period table code in the People Parameters
(bpmdm0100m000) session.
Employee Type Determines if the employee is and internal or external
employee.
7-10
7 People
Define Employee – People Information

Once the Employee –General (tccom0101m000) session information is entered
for an employee, you can now define the Employee – People (bpmdm0101m000)
session information.
For the employee 4546 record, define the People information indicating the
address, employment hours, and working time schedule.
\\ People \ Master Data \ Employees – People (bpmdm0101m000)

1. Click New and insert the new record.
2. Enter the People specific data
Field Input Value

Working Time Schedule STD
Employment 40 hrs
Employee type Internal
The new record for employee 4546 is now entered and specifies the Working
Time Schedule and hours of employment. The employee is now available for
entering hours in the People package.
7-11
Employees- People
User Profiles
User profiles provides the ability to assign specific start up views for the General
Hours (bptmm1111m200) session based on the User Login code for the
application. This starts the General Hours (bptmm1111m200) session in the
specified default view and for the default transaction type that employee
generally enters hours against.
The User Profile also allows specifying default information for the user login such
as Cost Components, Working Time Schedule, etc that will default to the hours
entry in the General Hours (bptmm1111m200) session.
7-12
7 People
\\ People \ Master Data \ User Profiles (bpmdm0102m000)
User Profiles (General tab)
Field Description
Startup Session Determines the default Hours Entry session to display
for the user when the Hours and Expenses
(bptmm1800m000) session is opened
Startup View Determines the key field sort sequence for the data
when the Hours and Expenses (bptmm1800m000)
session opens.
Startup Period Determines the Year and Period displayed as a default
when the Hours and Expenses (bptmm1800m000)
session opens.
The Project, Manufacturing, and Service tabs on the User Profile

(bpmdm0102m00) session provide the ability to specify default information to be
entered when a new record is created in General Hours (bptmm1111m000)
session. The information is not mandatory in the User Profiles
(bpmdm0102m000) session.
7-13
Business Example
Jeff Manard works in the service department and reports hours against service
orders. You define a User Profile for Jeff indicating his Startup Session is
Service Orders, and the Startup View is by Order, Year, Period. When Jeff
opens the General Hours (bptmm1111m200) session, he will be viewing Service
Orders by default.
Teams
Teams provide a way to group employees for planning and authorization
purposes. If you also assign roles to a team, all employees assigned to the team
have the authorizations that correspond to the roles.
Teams can be used to:
Assign roles to groups of employees
Register hours for all employees linked to a team
When entering hours for a team, the hours entered can be distributed among the
team members. You can use this feature to achieve fast and consistent hours
entry for employees working together as a team.
\\ People \ Master Data \ Teams (tcppl0140m000)
Teams
Field Description
Team User defined code to represent the team
Labor Rate The code representing the Labor rate applying to the
Team.
7-14
7 People
Field Description
Calendar The default calendar for the team.
WTS (Working Time The Working Time Schedule applied to the team. This is
Schedule) optional.
Define a Team
You have several employees working in a single work center. These people are
performing the same duties. You will create a team WC1 to associate with each
employee in the work center.

1. Insert a new record
2. Enter WC1 for the team name and use STD for the labor rate.
3. Enter the calendar COMP.
4. Save the record
The Team WC1 is now created. You can now link employees to the team, and
assign roles to the team. When you enter hours, you can enter team hours and
distribute hours among the team members.
Teams
7-15
Attach Employees to Team

With the new Team WC1 defined, you can now link employees to the team. This
enables you to manage multiple employees by assigning them the same roles as
those assigned to the team.

1. Highlight the record for Team WC1.
2. From the Specific menu select Employees by Team.
3. Add employee 4545 and 4546
The Team WC1 now contains two employees. The roles assigned to the Team
will now apply to the two employees.
Employees by Team
7-16
7 People
Roles
Roles specify an employee’s position and the associated authorizations granted
to perform specific processes, or to access specific data.
Once roles are defined, they can be assigned to either employees or teams.
Roles can be attached to an employee in the Roles by Employee
(tcpp0170m000) session accessed from the Specific menu in the Roles
(tcppl0160m000) session. Roles can be assigned to Teams in the Roles by
Team (tcppl0180m000) session accessed from the Specific menu in the Teams
(tcppl0140m000) session.
\\ People \ Master Data \ Roles (tcppl0160m000)
Roles
Field Description
Role The user defined code representing the role.
Description The user defined description regarding the role.
High Authorization Indicates the role and the employees linked to the role
or team have global action rights and can work on all
objects in Data Management without restrictions
7-17
Only a user logged onto the system with Super User rights can assign a role as a
High Authorization role.
Define Roles
Define two new roles to assign to Manufacturing personnel. The new roles will be
MAN1 and MAN-OT.
\\ People \ Master Data \ Roles (tcppl0160m000)

1. Click the New icon and enter the roles.
2. Define role MAN1 and do not select High Authorizations.
3. Define the second role MAN-OT and select the High Authorizations check
box.
The new roles are now defined and can be linked to teams or employees.
Roles
Assign Roles to a Team

Teams can also be assigned roles. The roles assigned to the team are applied to
the team employee’s.
Define two roles to be applied to team WC1.
7-18
7 People
\\ People \ Master Data \ Teams

Sub session: Roles by Team (tcppl0180m000)
1. Select the record for the team WC1.
2. From the Specific menu select the Roles by Team option.
3. Insert a new record.
4. Attach Role MAN1 and MAN-OT to the Team.
5. Save the record.
The two new roles are now applied to the team WC1 and will apply to employee
codes 4545 and 4546.
Roles by Team
Skills
Skills represent specific knowledge or technical expertise a service engineer
needs to carry out Service applications. Service skills can be used as constraints
for planning service orders.
The Skills (tcppl0110m000) session is used to define the skills required and
applied within the Service and Quality Management packages. Once defined,
7-19
you apply a skill to an employee using the Skills by Employee (tcppl0120m000)

session available from the Specific menu in the Skills (tcppl0110m000) session.
\\ People \ Master Data \ Skills (tcppl0110m000)
Skills
Field Description
Rate The default Labor Rate used to record time against this
skill.
Labor Types
Labor Types classify the work and determine whether the work is regular or
overtime labor. Based on the kind of work and the hour type, labor types can be
used to specify surcharges so actual labor costs can be calculated.
The Labor Type (tcppl0130m00) session defines the various labor types and
surcharges for each labor type. Different rates can be applied for the same labor
being performed during regular work hours or for overtime hours. To do so,
define two labor types, one for regular hours and one for overtime.
Surcharges are percentages added for each labor type and must be entered as a
percentage to be recognized. To define a surcharge, from the Specific menu
7-20
7 People
select Labor Type – Surcharge from the Specific menu in the Labor Type
(tcppl0130m000) session.
\\ People \ Master Data \ Labor Types (tcppl0130m000)
Labor Rates
Labor Rate Codes

Labor Rate Codes are used to define the various labor rates that are applicable
within the organization. These Labor Rate codes can be linked to the employee
in the Employees – General (tccom0101m000) session. The Labor Rate
assigned is used to calculate or estimate costs and for hours accounting in other
modules such as Manufacturing, Service, and Project.
7-21
\\ People \ Master Data \ Labor Rate Codes (tcppl0190m000)
Labor Rate Codes
Field Description
Labor Rate Code The code used to represent a particular labor type or
rate.
Time Unit The unit of measure used to represent the labor rate
code defined.
General Tasks
General tasks are either Absence or Indirect task types. General tasks only apply
to tasks that are not related to the costs of a specific order or project. General
tasks are used to record hours for employees outside those hours entered
against order transactions.
Hours recorded against a General Task are recorded in the General Hours
7-22
7 People
\\ People \ Master Data \ General Tasks (bpmdm0150m000)
General Tasks
Field Description
Task Type A general task is used to record hours that are not
against a project or an order. The two general task types
are:
Absence – Used for illness and appointments away
from work.
Indirect – Also called overhead. Used for
administration and general meetings.
Department The Department linked to the general task. This
department defaults to the General Hours
(bptmm1111m200) session when the task is entered.
Post to Finance Indicates if the costs are posted to the Financial
package for the general task.
Define General Tasks

Define a general task to use for a holiday.
\\ People \ Master Data \ General Tasks (bpmdm0150m000)

1. Insert a new record.
2. Enter the General Task Data
Field Input Value

General Task ANH
Description Annual Holiday
7-23
Field Input Value

Department Leave Blank
Post to Finance Check the check box
The new task is defined for the holiday.
General Task
Working Time Schedules

Working Time Schedules are used to define the number of working hours per day
and distribute these hours according to different labor types. You can apply
different labor rates depending on regular hours or overtime hours.
This session defines the codes that represent a working schedule. To this code,
you can link the actual Working Time Schedule defining the start and end times
for the labor as well as the labor rate that is used to record the work. With a
working time schedule, you can distribute hours among a single employee or an
entire team based on the Working Time Schedule Code and the associated
Working Schedule.
To access the Working Time Schedules (tcppl1100m000) session, select

Working Time Schedules from the Specific menu in the Working Time Schedule
Codes (tcppl1101m000) session.
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\\ People \ Master Data \ Working Time Schedule Code (tcppl1101m000)

Specific menu - Working Time Schedules (tcppl1100m000)
Field Description
Start Time The beginning time for the schedule time associated
with an individual labor type.
End Time The completion time for the schedule time associated
with an individual labor type.
Labor Type The default labor type used to record the labor for the
schedule time entry.
Define a Working Time Schedule Code

Enter a Working Time Schedule Code to represent the standard manufacturing
hours for the week.

Enter a new code MF1 to represent the standard weekly production work
schedule.
1. Insert a new record and create the new Working Time Schedule Code MF1.
2. Enter the description Std. Manufacturing Schedule.
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Working Schedule Code
Enter a Working Time Schedule

You will need to define the working hours available for the new Working Time
Schedule Code MF1.

Sub session: Working Time Schedule (tcppl1100m000)
Enter the standard hours and the overtime hours available from Monday through
Friday for the schedule code MF1.
1. Insert a new Group record for Monday.
Field Input Value

Working Time Schedule MF1
Code
Day Name Monday
Start Time 0800
End Time 1700
Labor Type REG
Start Time 1700
End Time 2100
Labor Type OVT
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You have just defined that Monday work hours are regular hours from 8:00 a.m
until 5:00 p.m. and overtime is from 5:00pm until 9:00pm. This working time
schedule applies only to schedule code MF1. Repeating this for Tuesday through
Friday for the Working Time Schedule Code MF1 will define the entire week.
Working Time Schedule
Assignments
Assignments are used to specify a list of predetermined tasks for ease of hours
entry for an employee. The employee can retrieve the assignments for a given
period and apply them for hours accounting.
In the Assignments (bpmdm0130m000) session you can specify particular tasks

and the interval in which they occur. If a task is performed or conducted on a
regular basis, using an assignment to record that task is an efficient method of
applying that time in hours accounting.
Business Example
For the next month your company is conducting safety training courses for all
shop floor employees. The training sessions occur every Monday from 8:00am to
10:00 am. You can create an assignment and include a General Task for
training, where you specify the recurrence is weekly for two hours and apply the
Labor Rate Code for training. This assignment can be created for each shop floor
employee.
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\\ People \ Master Data \ Assignments (bpmdm0130m000)
Assignments (Overview)
When an Assignment is entered for an employee more detailed information is

entered. The data entered is grouped according to the type of order. For example
you can specify Assignment data specifically for Project, PCS Project, Production
Orders, Assembly orders, etc.
Assignments (General tab)
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Field Description
Transaction Type The assignment can apply to a specific task type or
order type. The Transaction types available are:
General Tasks
Project
PCS Project
Production
Assembly
Service Order
Depot Repair
For example: If you select Service Order, you will then
fill out the information under the Service Order tab
specifying Service Order specific information regarding
the assignment.
Pattern The frequency the assignment occurs.
Daily
Weekly
Monthly
Yearly
WTS The Working Time Schedule associated with this
assignment determines the hours accounting.
Start Date / End Date Specifies the date range the assignment will span. This
along with the pattern determines how often and the
duration the assignment is valid.
Create an Assignment
Define and assignment to represent a recurring 2 hr. Monday meeting for
employee 4545.
\\ People \Master Data \ Assignments (bpmdm0130m000)

1. Insert a New Group record and enter Employee 4545 Jeff Manten.
2. Click the New icon and enter the assignment data:
Field Input Value

Transaction Type General Task
Pattern (Group Box) Select the Weekly check box
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3. Click the Recurrence button and enter the recurrence details for the Monday
meeting.
Field Input Value

Recurs Every 1
Monday Check the check box
From Today
End by + 60 days
Labor Time 2 hrs
Labor Type REG
Recurrence for Monday Meeting
4. Click OK to return to the assignment entry:
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Field Input Value

General Task DM1 (Department Meeting)
Department PUR1
Assignment for Monday Meeting
The assignment is now completed and can be applied during hours entry,
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Assignments Result
Exercise: Define an Employee

Employee Jean Jones will be added to the system. Enter the Employees General
and Employees People data.
Employee – General
Field Input Value
Employee XX45 (Replace XX with your initials)
Name Jean Jones
Language ENG
Department PUR1
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Employee-People
Field Input Value
Address Code ADD0000001
Gender Female
Employment 40.00 hrs
Employee Type Internal
First Employment Date Current Date
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Exercise: Define a General Task

A new meeting task will need to be defined and linked to the purchase office
PUR1. Define the new general task.
General Task
Field Input Value
General Task MT1
Description Department Meeting
Task Type Indirect Task
Department PUR1
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Field Input Value

Post to Finance Check the box
General Task
Exercise: Create an Assignment

Define an assignment for employee XX45 (Replace XX with your initials). Define
an assignment for a meeting that occurs every Monday for two months.
Field Input Value

Transaction Type General Task
Pattern (Group Box) Select the Weekly check box
Click the Recurrence button and enter the recurrence details for the Monday
meeting.
Field Input Value

Recurs Every 1
Monday Check the check box
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Field Input Value

From Today
End by + 60 days
Labor Time 1.5 hrs
Labor Type REG
General Task MT1
Dept Pur1
Cost Component 400
Assignments
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Hours Entry
Once you have entered the master data, you can enter hours in one of the
following ways:
Registration for a single employee or team
In the hours accounting, you can enter hours for a single employee or team. In
the latter case, you can distribute the hours entered among the members of the
team using the Distribute Team Hours option. In the case of a production order,
you can also enter machine hours. Note that although the systems enables fast
entry of general hours and project hours, you cannot use working time
schedules.
Global registration for a range of employees or specific employees
You can use the Global Registration of Hours (bptmm1201m000) session to

collectively enter hours for a range of employees. Use the Spec.
Employee(s)button to enter and use a list of specific employees
The general process for entering hours is to use the Hours and Expenses
Hours and Expenses

The Hours and Expenses (bptmm1800m000) session will display according to
the User Profile (bpmdm0102m000) session preference for the startup session.
You can select to display the Hours and Expenses session in several formats.
For this course, the default startup session will be based on General Hours.
The start session for Hours and Expenses is based on the user login and the
user profile for that user.
To change the Transaction Type for the Hours and Expenses (bptmm1111m200)
session, from the Specific menu select the transaction type desired, such as
production order hours, service order hours, projects, general hours.
Business Example
For an employee that regularly reports hours against production orders, set the
startup session option to Production in the User Profiles (bpmdm0102m000)
session.
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\\ People \ Hours and Expenses \ Hours and Expenses (bptmm1800m000)

The screen capture displays the first portion of the session display and the
second screen displays the second half of the session display. The sessions are
displayed in the Worktop interface display to provide better viewing capability for
this session.
General Hours
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General Hours
Field Description
Employee The employee to enter hours and expenses against.
Year/Period Identifies the period you will enter hours against.
Start Date Beginning date of the period to enter hours.
End Date The ending date of the current period you are entering
hours against.
Manually Enter General Hours for Employee

Indirect or Absence tasks are entered in the General Hours (bptmm1111m200)
session display of the Hours and Expenses (bptmm1800m000) session.
Employee 4545 Jeff Manton needs to record hours for a team meeting he
attended. Enter the hours for the team meeting.
\\ People \ Hours and Expenses \ General Hours (bptmm1800m000)

Sub session General Hours (bptmm1111m200)
1. Insert a new group record for the current week for employee 4545.
The new Group Entry for employee 4545 for 2004, period 32 is created
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General Hours New Group Entry
2. Click the New icon and enter the line to record a 1 hour meeting on Monday
and Tuesday.
The new entry for task MT (Department Meeting) for 1 hour Monday and
Tuesday is created.
Hours and Expenses Line Entry for Meeting Hours
Enter Production Hours for Employee

When an employee works on a production order the hours are entered in the
People package. Using the Production Order Hours (bptmm1120m000) session
you can enter the production order hours for the employee to record the time
spent on the various operations or tasks associated with the production order.
1. From General Hours click on the Production Orders icon to access the
Production Order Hours (bptmm1120m000) session.
Production Orders Link
2. Insert the New Group record for employee 4545 for the year and period for
entering the production order.
The new Group Record is created for Employee 4545 for the proper period and
year.
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Production Order Hours New Group Entry
3. Click the New icon and enter the details for the Production order time entry.
4. Enter the production order SNB000001 for Operation 10, Task 400.
Production Order Hours Line Entry
5. Enter 3 hours for Labor and Machine time for task 400 for the production
order.
The second half of the line entry displays the status of the entry and displays the
hours were entered manually by the user with logon code user2
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Global Registration of Hours

Global registration of hours can be performed for an employee, a team, or date
range. To globally register hours you specify the employee, team or machine you
will enter hours against. Then specify the transaction to register the order against
and the task.
Globally Register General Tasks

To globally register hours for an employee or a team for a general task you will
specify the transaction as General Tasks in the Global Registration or Hours
(bptmm1201m000)
Enter hours for a general task to record employee 4545 attending a meeting.
\\ People \ Hours and Expenses \ Global Registration of Hours

(bptmm1202m000)
1. Enter the employee and task information.
Field Input Value

Employee 4545
General Task MT1
Department PUR1
Cost Component GEN
Start Date 9/12/2004
End Date 9/12/2004
Labor Hours 1
Labor Type REG
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Global Registration of Hours
The globally registered hours are entered. You can view the hours posted for the
employee in the General Hours (bptmm1111m200) session.
Global Hours Result in General Hours
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Exercise: Enter Hours for Employee

Employee XX45 requires hours entered to register hours spent in a meeting and
also working on a production order. Enter the meeting and production hours for
employee XX45.
Enter 4 hours of meeting attendance for employee XX45 (replace XX with your
initials) using the General Hours (bptmm1111m200) session.
Field Input Value

Year/Period Current Week
Task DM
Cost Component 400
Department PUR1
Labor Type REG
Monday 4 hrs
General Hours
Alternative Hours Entry Methods

You can also enter hours by:
Enter and Distribute Team Hours
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7 People
Assignments
Copy Hours
Enter and Distribute Team Hours

Hours can be entered and distributed among employees of a team. The team
hours enables you to enter hours against a team and spread the hours among
the various employees that are members of the team.
The Flow: Team Hours
Start
Enter Team Hours

Hours and Expenses
(bptmm1111m200)
Distribute hours across team

Distribute Team Hours
(bptmm1220m000)
End
Enter Team Hours

A company safety training session has been held and you wish to enter the hours
for your employees. The team MN1 represents your shop floor team that
attended the training.
Enter the hours for the team to register attending the 4 hour training session.

1. Open the session and from the View menu, select Sort by then the option
Team, Year, Period
2. Insert a New Group record and enter the team code, the year and period then
select the applicable transaction type(s).
Field Input Value

Team MN1
7-45
Field Input Value

Year/Period 2004/38
Click New to enter a record for the Year/Period 2004/38.
Field Input Value

Task TR
Description Training
Cost Component 400
Department CWC1
Labor Type REG
Monday 4 hrs
3. Save the record.
The 4 training hours are new entered for the team.
Team Hours

You can register hours for a team, and thus have the hours distributed equally
among the individual members. You only need to enter the task, enter an hour's
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7 People
total or a number of hours for each day, and distribute these hours. If no error
report appears, the distributed team hours line's Hours Distribution Done check
box will be selected. All team members will be able to see the exact number of
hours as entered for the team. Changes can then still be made.

The leader of a team has entered 4 hours in the Hours and Expenses
(bptmm1800m00) session for the Team MN1. Those 4 hours are to be distributed
among team members on a specific task.
1. Open the session and from the View menu, select Sort by then the option
Team, Year, Period
2. To find your record enter the team code, the year and period then select the
applicable transaction type(s),
3. From the Specific menu select Distribute Team Hours to start the Distribute
Team Hours (bptmm1220m000) session.
4. Enter the Team, Year and Period, and the type of hours to Distribute
(General Task, Project, etc) to select your desired hours.
Field Input Value

Team MN1
Year/Period 2004/38
General Task Check the check box
From TR
To TR
5. Click Distribute Hours
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Each team member then receives an 4-hour line. The team members can edit or
approve these hours.
6. View the Hours for Employee 4545 who is a member of team MN1.
Distributed Team Hours for Employee
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7 People
Exercise: Define a Team

Define a new Team XX1 (Replace XX with your initials) and name it XX Team 1
(replace XX with your initials)
Exercise: Add Employees to Team

Add employee XX45 to the team XX1 (Replace XX with your initials)
Access the Employees by Team session from the Specific Menu from the Teams
session.
Exercise: Enter Team Hours

Team XX1 has attended a meeting. Enter the team hours for attending the
meeting.
Enter 2 hours for the team meeting for team XX1 (Replace XX with your initials)
7-49
Field Input Value

Team XX1 (Replace XX with your initials)
Year/Period Current year/current period
Hours Entry
Field Input Value
Task TR
Description Training
Cost Component 400
Department CWC1
Labor Type REG
Monday 2 hrs
Team Hours Entry
Exercise: Distribute Team Hours

Distribute the team hours for the meeting.
Enter the Team, Year and Period, and the type of hours to Distribute (General
Task, Project, etc) to select your desired hours.
Field Input Value

Team XX1
Year/Period Current Year, Current Period
General Task Check the check box
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7 People
Field Input Value

From TR
To TR
Use Assignments
Assignments are used to enter hours for pre set tasks.
Record Hours with Use Assignments

Apply the hours for the assignment for the task DM for attending the Monday
meeting to Employee 4545.
\\ People \ Master Data \ Assignments

Sub session: Use Assignments (bptmm1204m000)
1. Open the Assignments Session
2. Select Employee 4545 Jeff Manten
3. From the Specific menu select the Use Assignments option.
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4. Enter the information
Field Input Value

Employee 4545
Year/Period 2004/39
Date 09/19/04
General Task DM
Use Assignments
5. View the hours entered in the Use Assignments for the employee.

Find the record for employee 4545 and view the new assignment hours.
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7 People
General Hours View of Use Assignment Result
An alternative method to access the Use Assignments bptmm1204m000)

session is to open the Hours and Expenses (bptmm1111m200) session and from
the Specific Menu select the Use Assignments option.
Exercise: Record Hours with Use Assignments

For your employee XX45 (Replace XX with your initials) you defined a 1.5 hours
assignment. Record the hours for the employee with the Use Assignments.
\\ People \ Master Data \ Assignments

Sub session: Use Assignments (bptmm1204m000)
Find the employee XX45 (Replace XX with your initials) in the Assignments
(bpmdm0130m000) session and from the Specific menu select the Use
Assignments.
Field Input Value

Employee XX45 (replace XX with your initials)
Year / Period Current year and period
Date Start today and end in two weeks
General Task MT1
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Use Assignments
Exercise: View the Employee Assignment Hours

View the assignment hours entered for the employee to see the result of entering
the assignment hours.

The Use Assignments registered the general task MT1 (department meeting) for
the employee for 1.5 hrs.
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7 People
Enter Hours Using Working Time Schedules

You can either link the working time schedule to the employee in the Employee –
People (bpmdm0101m000) session or you can insert the working time schedule
during the global entry of hours in the Global Registration of Hours
(bptmm1201m000).
Note you cannot enter Working Time Schedule Hours for a Project or a General
Task transaction type.
Record Production Hours with a Working Time Schedule

Working Time Schedule Code MF1 (Std. Manufacturing Sched.) has been
defined for use. You will now record production hours for employee 4545 for the
current week to reflect work performed against a production order.
The Working Time Schedule must be defined for the employee in the Employees
– People (bpmdm0101m000) session.
\\ People \ Hours and Expenses \ Global Registration of Hours

(bptmm1201m000)
Open the Global Registration of Hours session and insert the production hours
against employee 4545 according to the Working Time Schedule MF1.
1. Insert the data:
General tab
Field Input Value
Employee 4546
Production Check the check box
WTS MF1
Date Start date Monday of current week, To date Friday of
current week.
Time 8:00 until 17:00
Labor Time 8 hrs
Manufacturing tab
Field Input Value
Production Order SNB000003
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Field Input Value

Operation 10
2. Click Update and post the hours against the employee according to the
Working Time Schedule.
View the posted Hours

View the hours posted according to the Working Time Schedule for Employee
4545 and Production Order SNB000003.
Working Time Schedule Hours Posting Results
Copy Hours
Copying hours enables saving time for entering the same hours across multiple
days or periods for an employee or a range of employees.
Copy hours for employee 4545 from year/period 2004/39 to Year/Period 2004/40
for the production hours worked on production order SNB000003.
1. Insert the Source information for the employee 4545 and the Year/Period you
will be copying from.
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7 People
2. Enter the Target employee who will receive the new hours from the copy
function. In this case, enter employee 4545 and the Year/Period 2004/40.
3. Enter the hours to copy. Enter the Production Order SNB000003.
The information indicates to copy employee 4545 hours from Year/Period

2004/39 to the Year/Period 2004/40 for the same employee. You indicated that
you only wish to copy the hours entered on production order SNB000003 entered
for the week 39.
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Copy Hours and Expenses
When the copy is complete, you can view the results of the copy of hours in the
Hours and Expenses (bptmm1111m200) session and looking at the Production
Orders display option for employee 4545 and week 40.
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Result of Copy Hours and Expenses
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Approve and Process Hours

Approving hours for employees is an optional task. Approval of hours is
determined by the check box in the People Parameters (bpmdm0100m000)
session on the Approval Required field.
In the Global (Undo) Approve Hours and Expenses (bptmm1202m000) session

you can use the options:
Hours Check (Regular Time): The employee actual hours are compared with
the employment hours. An error report is generated if the number of hours
worked is less or greater than the Employment Hours.
Approve Transactions: The hours transactions are approved for the selection
range.
Undo Approve Transactions: All transactions within the range that are
approved will be unapproved.
The Process Hours and Expenses (bptmm1203m000) processes and posts the
hours to the financial module. Hours can be processed by individual employee
or by ranges.
Approve Hours
Approve the hours for employee 4545 for the production hours worked in the
Year/Period 2004/40.
\\ People \ Hours and Expenses \ Global (Undo) Approve Hours and

Expenses (bptmm1202m000)
1. Enter the employee 4545, Year/Period 2004/40.
2. Enter Production Order SNB000003 and check Approve Transactions
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Global (Undo) Approve Hours and Expenses
The Approval of the hours will now take place.
Process Hours
Process the approved hours for employee 4545.
\\ People \ Hours and Expenses \ Process Hours and Expenses

(bptmm1203m000)
1. Enter employee 4545 and the Year/Period 2004/40.
2. Process the hours.
The hours are processed and are now posted to the financial module.
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Lesson Review
In this lesson you learned to:
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7 People
Review Questions
1. The use of Approvals for Hours Accounting is required when using the
People package.
A. True
B. False
2. An employee can be assigned to a team enabling hours posted against the

team to be distributed to the employees linked to the team.
A. True
B. False
3. The Hours and Expenses session can be modified within the User Profile to
enable customized startup views based on the user.
A. True
B. False
4. In the Assignments session you can specify particular tasks and the interval
in which they occur.
A. True
B. False
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1. B (False: Approvals is optional)
2. A (True: Team hours are distributed to the team members)
3. A (True: the User Profile determines the start view for the Hours and
Expenses session and can be modified for each user)
4. A (Assignments can be defined and scheduled and applied to the employee)
7-64

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Common Data - SSA® ERP LN 6.

Student Manual and Exercises

COM_61_SE Date (09/2004)

Company Types ........................................................................................1-16

Purchase Types ........................................................................................3-11

Exercise: Define an Operation Rate ......................................................5-16

Exercise: Define an Employee ..............................................................7-32

This information includes:

Course Goal and Objectives

Who Should Attend this Course

Organization of Course Materials

Define Entities to represent warehouses and departments

Create Enterprise Units to logically group entities.

Describe the Enterprise Structure Model and the purpose.

Describe the various Company types and their purpose.

Set up Company information for your company/companies

Create a new Address for the company.

Set up Unit Sets and Units

Create effectivity units.

Define Number groups and First Free Numbers.

Create Item Groups

Define departments and warehouses

Identify Languages available in the company

Define the available currencies used for your organization.

Create Credit Ratings that can be applied to Business Partners.

Identify Tax codes for the system

Define Credit Ratings

Define Invoicing Methods

Define Sales and Purchase Types

Initialize Mapping Scheme Data

Identify the Reconciliation process.

Set up conversion factors for items.

Establish item default data.

Define general item data.

Identify the various item types.

Define sub entity item information.

Introduce Unit Effectivity

Define Alternative Items.

Set up cost prices.

View cost price parameters.

Define cost components.

Create operation rate codes.

Define price calculation codes.

Define cost price calculation data.

Define an operation rate.

Add an item surcharge.

Define subcontracting rates.

Define Business Partners Master Data.

Identify the Roles for Suppliers and Customers.

Describe the purpose of Internal and affiliated business partners.

Define Employees and Employee master data

Enter hours by employee, team, and assignment.

Approve hours and process hours to finance.

Who Should Attend this Course

SSA® ERPLN Webtop Navigation

Organization of Course Materials

The Flow: Sample Flow

Set up invoice factoring

Create bank account details for

Associate factor with pay-to

Icons Used Within this Course

WARNING: A Warning icon calls attention to information or procedures that must

EXERCISE: An Exercise icon designates when you will complete an exercise to