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General Overview

SAP Best Practices for Apparel and Footwear


India V1.603

SAP Best Practices


Overview of Scenarios

This package comprises predefined business scenarios that handle the most
important business requirements in Apparel and Footwear Industry, covering
the following key functional areas of SAP Enterprise Resource Planning
(ERP):

 Warehouse and Inventory Management


 Forecast-to-Stock
 Order to Cash
 Procure-to-Pay
 Accounting
Scenario Overview - Apparel and Footwear

Warehouse and Inventory Management


 134 Stock Transfer with Delivery
 624 Warehouse Management with Allocation Run
Forecast-to-Stock
 630 Make-to-Stock for Apparel and Footwear Industry
 631 Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry
 632 Inter-company and Cross-plant Production
 634 Production Subcontracting (External Processing) for Apparel and Footwear Industry
 635 Combined Production Orders
Order-to-Cash
 107 Sales Processing using Third Party (w. Shipping Notification)
 115 Sales of Nonstock Item with Order Specific Procurement
 611 Sales Order Processing with Allocation Run: Sale from Stock
 612 Cross-Company Sales Order Processing with Allocation Run
 613 Pre-Order Processing (Sales)
 614 Rush Order Processing (Sales)
 615 Sales Order Processing with Export Control
 616 Order to Cash with Packing and Transport Management
Procure-to-Pay
 620 Finished Goods and Raw Materials Sourcing
 621 Materials Subcontracting for Apparel and Footwear Industry
Accounting
 645 Activate Document Splitting for Apparel and Footwear Industry
Other
 154 Prereq. Process Steps
Scenario Overview-Baseline
Warehouse and Inventory Management

Key Business Scenarios:

 124 - Lean Warehouse Management


 126 - Serial Number Management
 131 - Stock Handling: Scrap and Blocked Stock
 135 - Stock Transfer without Delivery
 137 - Physical Inventory / Inventory Count & Adjustment
 117 - Batch Management
Scenario Overview-Baseline
Time-to-Market

Key Business Scenarios:

 210 - Internal Product Development


Scenario Overview-Baseline
Forecast-to-Stock

Key Business Scenarios:


 144 - Logistics Planning
 145 - Make-to-Stock Production - Discrete Industry
 146 - Make-to-Stock Production - Process Industry
 147 - Make-to-Order Production with Variant Configuration
 148 - Make-to-Order Production w/o Variant Configuration
 149 - Repetitive Manufacturing
 150 - Production Subcontracting (External Processing)
 151 - Rework Processing (Stock-Manufactured Material)
 202 - Rework Processing (Work-in-Process)
Scenario Overview-Baseline
Order to Cash

Key Business Scenarios:


 108 - Credit Management
 109 - Sales Order Processing – Sale from Stock
 110 - Free of Charge Delivery
 111 - Returns and Complaints
 112 - Sales Quotation
 113 - Sales Order Processing for Prospect
 114 - Sales Processing using Third Party (without Shipping Notification)
 116 - Debit Memo Processing
 201 - Sales Order Processing with Customer Down Payment
 203 - Sales: Period End Closing Operations
 204 - Credit Memo Processing
 118 - Foreign Trade Export Processing
 119 - Customer Consignment Processing
 120 - Returnables Processing
 122 - Batch Recall
 123 - Cross-Company Sales Order Processing
Scenario Overview-Baseline
Procure-to-Pay

Key Business Scenarios:


 128 - Quotation for Procurement
 129 - Consumable Purchasing
 130 - Procurement w/o QM
 133 - Procurement Contract
 136 - Return to Vendor
 127 - Quality Management for Procurement with Vendor Evaluation
 138 - MM Subcontracting
 139 - Procurement & Consumption of Consigned Inventory
 141 - Internal Procurement: Cross-Company Stock Transfer
Scenario Overview-Baseline
Financial and Management Accounting

Key Business Scenarios:


 156 - General Ledger
 157 - Accounts Receivable
 158 - Accounts Payable
 159 - Period End Closing in Financial Accounting
 160 - Cash Management
 162 - Asset Accounting
 164 - Asset Acquisition for Constructed Assets (Invest. Orders)
 184 - Overhead Cost Controlling – Actual
 185 - Internal Order R&D Actual
 186 - Internal Order for Marketing and Other Overhead Actual
 163 - Asset Acquisition through Direct Capitalization
 165 - Activate Document Splitting
 161 - Cost of Sales Accounting
 166 - Segment Reporting
Scenario Overview-Baseline
Annual Operating Plan & Forecast and Simulation

Key Business Scenarios:


 175 - General Cost Center Planning
 177 - Internal Order R&D Planning
 180 - Internal Order for Marketing and Other Overhead Planning
 172 - Revenue Planning
 173 - SOP through Long Term Planning Transfer to LIS/PIS/Capacity
 174 - Purchased Material Price Planning
 176 - Manufacturing Cost Center Planning
 178 - Standard Cost Calculation
 179 - Quarterly Plan - Sales Quantity Forecast with CO-PA
 187 - Reference and Simulation Costing
Scenario Overview-Baseline
Integration Processes

Key Business Scenarios:


Period End Closing Integrated
 181 - Period End Closing General Plant
 182 - Inventory Valuation for Year End Closing
 224 - Period End Closing Activities

Analytics
 221 – SAP ERP Reports for Accounting
 222 – SAP ERP Reports for Logistics Multi-area scenario
Scenario Overview –
Summary for all existing Scenarios

SAP Applications Required:


Required
 EHP3 for SAP ERP 6.0
 SAP Enterprise Portal

Company roles involved in process flows


 Sales Administration
 Sales Billing
 Warehouse Clerk
 Warehouse Monitoring
 Warehouse Manager
 Transportation Planning
 Purchasing Manager
 Buyer
 Business Analyst Purchaser
 Product Cost Controller
 Production Planner
 Shop Floor Specialist
 Accounts Payable Accountant 1
 Finance Manager
 General Ledger Accountant
 Assets Accountant
Process Flow Diagram
AFS: Stock Transfer with Delivery

Need for Daily Shipment Material


material Worklist, Arrival at
Enough Inventory Plant Dock
t nev E

MRP Yes Forecast, Plan


r

RUN & Run MRP


. dor P

?
e nnal p

Process Delivery
Delivery Due List for Pos Picking
(Create Outbound Confirmation
Delivery)

No Delivery Note
Check Status of Post Goods
Stock Transfer Issue
kr el C es uoher a W

Post Goods
GR Slip Receipt for
Delivery

Creating Billing
Document
si cxeE mot s u C
kr el ecci vr e Sr

Creating Excise Printing Excise


e

Invoice Invoice

Create Stock Transport


Order Delivery (w/o Check Stock
MRP)

Enter PO
r ey u B

Process Stock Change Stock confirmation


Transport Transport Order
Requisition Delivery Delivery

MRP = Material Requirements Planning, GR = Goods Receipt


Process Flow Diagram
Warehouse Management with Allocation Run

Initial Stock, Stock Transfer and Physical Inventory management:

Physical Replenishmen Stock Initial Stock


Inventory t requirement Transfer Requirement
requirement Requirement
t nev E

Posting Initial Create TO for Confirm TO


stock material document

Stock Transfer Create TR Create TO Confirm TO


es uoher a W s uoher a W kr el c es uoher a W

Create Transfer Create TO for TR Confirm TO


Requirement

Clearing
Create Physical Clearing Different Differences
Inventory Counting Result WM Inventory
Management
r e ga na m r oti no Me

Displaying
Storage Bin
Stock
Process Flow Diagram
Warehouse Management with Allocation Run

Purchasing & Sales processing:

Order goods Customer


from Vendor order goods
t nev E

Create PO
r ey u B
/ r e ga na M
sel a S gni sa hcr u P

Create Sales Executing


Order Allocation Run
n
oi t art si ni md A

Create Inbound Create TO Confirm TO Create outbound


Delivery delivery Create TO Confirm TO

Good receipt Post goods issue


kr el c es uoher a W
Process Flow Diagram
Make-to-Stock for Apparel and Footwear Industry

Beginning of
Planning
Cycle
t nev E
) SF A(

Maintain Creating Planned Convert Release


Distribution of Independent Create Planned
Order in MRP Planned Order to Production
Requirement Requirements Production Order Order
r ool F poh S r e nnal P noi t c udor P

Inventory Confirming
Consumption @ Assembly
Standard. Cost Goods Issue Activities
/ Final
t sil ai ce p S

Confirmation

Finished Goods Inventory @


Receipt Standard. Cost
kr el C
es uoh- er a W
Process Flow Diagram
Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry

Customer
Requirement
t nev E

Sales Order
Entry
sel a S
noi t ar
pohnSoi t c udor P t si ni mdA

Creating Converting a Release Comparing


Planned Order planned order Production Planned and
in MRP to production Orders Actual Costs
order
r ool F r e nnal P

Confirmation of
Production
Order
Operations
t sil ai ce p S

Good receipt
for
Manufactured
Goods
Manually
Issue
Goods
Delivery
Processing
illi Bs uoher a W

FI account
document Billing
S
selel Ca e
pu kgrn

Accounts Period End Sales: Period


Receivable(157) Closing General End Closing
Plant(181) Operations (203)
woll oF
ssec or p
Process Flow Diagram
Inter-company and Cross-plant Production

Assigning
Distribution
Profile to
t

Finished goods
gni
r ee ni gn E
ce p S

Production Maintaining Creating


ai

Demand Distribution of Planning


Independent
l

Requirements
si

Requirements
al P
(

Convert Convert Converting


P
n

Planned Order Creating Planned Order


al p(

Purchase
orr P
P
t

Requisition to to Purchase Planned Order to a Production


t sil ai ce p S r e ga na M r e nn)al1tP)n1 n al

Purchase Order Requisition in MRP Order (finish


do
n

(semi) goods)
ud
crue
oii tt c

Release
no

Purchasing
r ool F sa hcr u P en

Order

Release Production
Production On-site Order
Order (finish Product Confirmation
ion (finished
poh S

goods)
goods)
) 1t nal P(

Converting
Planned Order
MRP Running to a Production
o

Order (semi-
kr el C e t sil ai cerpoSol F r e nnal Pn

finish)
poh S i t c udor P

) 2 t nal p(

Release On-site Production


Production Product Order
Order ion Confirmation
) 2 t nal p(

Goods Receipt Entering Goods


Material Delivery and Display stock in Receipt for Goods Receipt
staging (semi-finish)- Picking Transit
plant 2 Purchase Order (finish)-plant 1
s uoher a W
) 2, 1 t nal p(

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt


Process Flow Diagram
Production Subcontracting (External Processing) for Apparel and Footwear Industry

Maintaining Creating Creating


Production Distribution of Planning Planned Order
Demand Requirements Independent in MRP
Requirements

Checking
Subcontracting Converting
Purchase Planned Order
Requisition to Production
from Order
Production
al P noi t c udor P

Order

Release Confirm Material


Production Production Document
Order Order
r ey urBotoslilFairpceoenhpnSS

Create
Purchase order
for external
processing

Release
Purchasing
gn

Order
r e ga na M
i sa hcr u P

Creating
Delivery Goode receipt
Document for production
through Order
Subcontract
Stock Monitor

Sending
Components to Post Goods
Subcontractor receipt for
with Delivery Purchase Order
As uoher a W

Document

Material Material
Document Document
1t n
ya P
st nuocc A
cc e
katrneelulboaC

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt


Process Flow Diagram
Combined Production Orders
t nev E

Creating Creating Planned


Distribution Independent
Profile Requirements

Creating Planned
Order in MRP
r e nnal P noi t c udor P

Convert Combine the


Planned Order to Production Release Combine Order Print
Production Orders Order
Orders

Confirm Back Flush Inventory


Confirm Production Order Component in Consumption @
Combine Order Operation/Back Background Standard. Cost
Flush
il ai ce p S
l F poh S
es uoh r otos

Goods Receipt Finished Goods Inventory @


Slip Receipt Standard. Cost
- er a W
kr el C

Period End
Compare Closing
Planning Cost “General”
and Actual Cost Plant
t so C
r ell
ort no C

(181)
Process Flow Diagram
AFS: Sales Processing using Third Party (w. Shipping Notification)

Drop Ship Send


Shipping Incoming
Product to 3rd Notification/ Vendor
Party Confirmation Invoice
r odne V

Customer
Request for Order Billing
Material Confirmation Document
sel a S r e mot s u C

(Optional) Auto-generates a
Create Sales Change Order Requisition
Order Quantity
/ r e ga nanMoi t art si ni md A

Quotation Display List of Convert


for Purchase Assigned Approval of
Procuremen Requisitions to Requisitions to Purchase
t (128) Be Assigned Purchase Orders Orders
r ey u B
gniWsa hcr u P

Post Statistical
Goods Receipt
kr el C
es uoh
- er a

Billing
sel a S
gnilli B

AR–Incoming
AP–Outgoing COGS Vendor Payment
Payment Invoice Receipt (157)
(158)
Closing
Operations
/ el baya P
st nuocc A
el bavi ece R

SD (203)

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt


Process Flow Diagram
AFS: Sales of Nonstock Item with Order Specific Procurement

Delivery of Incoming
Items to Vendor
Trader’s Invoice
Warehouse
r odne V

Credit Order
Customer Managemen Billing
Request for Confirmation Document
t
Material (108)
d A r e mot s u C

(Optional) Credit
Create Sales Change Order Managemen Auto-generates a
Order t Requisition
Quantity
sel a S

(108)
noi t art
n
i m

Quotation Display List of Convert


si

for Approval of
Procuremen Purchase Assigned
-

Requisitions to Requisitions to Purchase


t Orders
r ey u B

(128) be Assigned Purchase Orders


M
i sa hcr u P
ga na

Billing
sel gan/S
gnilli B r e

Delivery Due Post Goods


Print GR Slip Post Goods List Issue
Receipt
kr el C

Pick List
es uoher a W

AP-Outgoing COGS Vendor


Invoice Receipt AR-Incoming
Payment
(158) Payment
(157)
/ el baya P
st nuocc A
el bavi ece R

AP = Accounts Payables, AR = Accounts Receivables, COGS = Cost of Goods Sold, GR = Goods Receipt
Process Flow Diagram
Sales Order Processing with Allocation Run : Sale from Stock

Customer
Needs to Buy
Product
t nev E

Order Billing
Confirmation Delivery Note Document
sel a S r e mot s u C

Sales Order
Entry Allocation Run
noi t art si ni md A

Delivery& Post Goods


Picking Issue

Pick List Inventory


COGS
gkrniellli CBes uoher a W

Billing
sel a S

AR–Incoming Closing
Payment Operations
(157) SD (203)
st nuocc A
el bavi ece R

AR= Accounts Receivable, COGS = Cost of Goods Sold


Process Flow Diagram
Cross-Company Sales Order Processing with Allocation Run

Sales Need to
Be Processed
Across
Different
t nev E

Company Code

Delivery Note Bill of Lading


sel a S r e mot s u C

Create Sales
Order Allocation Run Check EDI
Transmission
noi t art si ni md A

Pick List

Delivery Picking Post Goods


Issue
nuocc A gnilli B sel a Skr el C es uoher a W

Display Billing Create


Document Intercompany
Document

Display
Create Billing Intercompany
Document Document

AR–Incoming Closing
Payment Operations
(157) SD (203)
vi ece R

AR = Accounts Receivable
Process Flow Diagram
Pre-Order Processing (Sales)

Customer Delivery Note Billing


Request for Document
re m

Material
ot s u C

Create Purchase
Order
r ey u B

Approve Purchase
Order
. r uP
noi t ar e ga na M

Displaying Allocation Reallocation


Create Customer Order against Future against Early
Customer Order Confirmation Receipts Allocation
sel a S
rt nsi ni md A

AFS
Stock/Requirem
ents List
kr el C r e nnal P
oi t c udor P

Creating
Goods receipt Delivery incl.
of Purchase Picking and
Order
su

Goods Issue
sel a S oher a eW

Billing
gnilli B

AR–Incoming
Payment
(157)

Closing
Operations
/ el baya P
st nuocc A
bavi ece R

SD (203)

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt


Process Flow Diagram
Rush Order Processing (Sales)

Customer
Needs to Buy
Product
t nev E

Order Billing
Delivery Note Document
Confirmation
rt si ni md A r e mot s u C

Sales Order
Entry
sel a S
noi t a

Delivery Due Post Goods


List Issue

Inventory
Pick List COGS
es uoher a W

Billing
aS
e gnilli B
krseell C

AR–Incoming Closing
Payment Operations
(157) SD (203)
st nuocc A
l bavi ece R

AR= Accounts Receivable, COGS = Cost of Goods Sold


Process Flow Diagram
Sales Order Processing with Export Control

Customer Needs
to Buy Product
t nev E

Order Confirmation Delivery Note Billing Document


r e mot s u C

Valid Yes Order


Sales Order Entry legal Confirmation(Print Allocation Run
control Sales Order)
?
sel a S

No
Release Sales Order
noi t art si ni md A

Delivery plus Pick


and Post Goods
Issue

Inventory COGS
s uoher a W

Billing
l aeS
e gnilli B
l eC
kr es

AR–Incoming Closing
Payment Operations
(157) SD (203)
st nuocc A
l bavi ece R

AR= Accounts Receivable, COGS = Cost of Goods Sold


Process Flow Diagram
Order to Cash with Packing and Transport Management

Customer Needs
to Buy Product
t nev E

Order Confirmation Delivery Note Billing Document


r e mot s u C

Order
Sales Order Entry Confirmation(Print
Sales Order)

Output Yes Check IDOC


with Processing for
sel a S

EDI? Shipping Notification


Allocation Run
No
stuart si ni md A

Create Delivery plus Inventory


Create & Complete Post Goods Issue COGS
Picking and Packing Shipment Document
krneloi C
sel a S oher a eW

Billing including
Freight Cost
gnilli B

Determine Shipment
Cost
noi t at
gni nnal P
r ops nar T

AR–Incoming Closing
Payment Operations
(157) SD (203)
st nuocc A
el bavi ece R

AR= Accounts Receivable, COGS = Cost of Goods Sold


Process Flow Diagram
Finished Goods and Raw Materials Sourcing

Send Shipping Incoming Vendor


Notification/ Invoice
Confirmation
si ni md A mot s u C r er odne V

Customer Request
for Material

Create Sales Order


sel a S
noi t art

Display Stock Run MRP


Requirement list
nal P n
c udor P

Create Purchase
es uoh/ r e ga na M ey ol p mE roieten

Requisition manually

Create Purchase Convert Assigned Approval of Purchase Enter PO


Requisition Requisitions to Orders Confirmation
Purchase Orders
r ey u B
esa hcr u P

Material Document Post Statistical


Goods Receipt
- er a W
kr el C

AP–Outgoing COGS Vendor


Payment Invoice Receipt
(158)
/ el baya P
st nuocc A

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt


Process Flow Diagram
Materials Subcontracting for Apparel and Footwear Industry
/

Customer
Request for Incoming
r

Material Vendor Invoice


sel a S r odne V
e mot s u C

Create Sales
Order
noi
sioni md A

Display Stock Run MRP


Requirement list
t art n
r e nnal P
i t c udor P

Create Purchase Enter PO Approval of


Order Purchase Order
(Component) Confirmation (Component)

Enter PO Approval of
Create Purchase Purchase Order
gni sa hcr u P

Order (Header) Confirmation (Header)


kr el C es uoh r ey u B/ r e ga na M

Create Post Goods


Inbound Receipt direct
Delivery to
Subcontractor
- er a W

Create
Outbound Goods Issue Create Inbound Post Goods
Delivery for for Outbound Delivery Receipt
Remain Delivery
Components

AP
COGS Vendor Invoice Receipt
Outgoing for Two
Payment Purchase Orders
(158)
/ el baya P
st nuocc A

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt


Process Flow Diagram
Activate Document Splitting for Apparel and Footwear Industry

G / L Account
Document
with Different Reporting
t nev E

Segments

Display a
General Ledger
Document
a na Mec na ni F
Process Flow Diagram
AFS: Prereq. Process Steps

Preliminary Create and Posting


Updating Master Data Cost Estimate Schedule Job
t nev E

Roll MM Period
to Current
Period
r e ga na M
ec na ni F

Product Preliminary
Costing: Create Product Cost for the
Costing Run Cost Collectors Product Cost
Collector

Product
Costing:
no r ell ort no C

Costing Run for


st ess Ai r ee ni gn E gni t c udor P t s o Ct c udor P

Configured
Materials

Set Up Planning Run Materials


Requirements
File Entry Planning (MRP)
tr e nnal P

Routings:
Material Update
occ A sil ai ce p S

Asset:
Asset: Create Acquisition with
Asset Master Automatic
t na

Offsetting Entry
uoher a W t nu

Initial Stock
Posting
kr el C es
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