1.  SAP AG CSU Chico 1 SAP Lecture 1 Copyright 1999 - Raymond F. Boykin Contents of this file are for the exclusive use of the University of Missouri and CSU, Chico pilot project. Reproduction of this material in any form is not allowed without the written permission of the author. This material is confidential.

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7.  SAP AG CSU Chico SAP R/3 Materials Management Module

8.  SAP AG CSU Chico Materials Management Procurement Inventory Management Warehousing Material Master Materials Planning Hazardous Materials Management

9.  SAP AG CSU Chico Organizational Elements Organizational elements are structures that represent the and/or organizational views of an enterprise. Company structure is designed based on business processes. The organizational elements provide a framework that supports all business activities.

10.  SAP AG CSU Chico Organizational Elements for the Procurement Process Company Code Plant Storage Location Purchasing Organization Purchasing Group

11.  SAP AG CSU Chico Company Code A company code represents an independent accounting unit. Balance sheets and Profit & Loss statements, required by law, are created at the company code level

12.  SAP AG CSU Chico Plant A plant is an organizational unit within a company. It produces goods, renders services, or distributes goods. A plant can be one of the following types of locations: Manufacturing facility Warehouse distribution center Regional sales office Corporate headquarters

13.  SAP AG CSU Chico Storage Location Storage locations are organizational units that allow the differentiation of material stocks within a plant.

14.  SAP AG CSU Chico Purchasing Organization and Groups Decentralized with a separate organization for each plant. Centralized, one organization for all plants. Hybrid - multiple organizations buy for multiple plants. Groups can be a further division of purchasing responsibility and/or structure.

15.  SAP AG CSU Chico Material Master The material master contains all data required to define and manage material. It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting, and other departments. The material master is used as a source of data for purchase order processing throughout the procurement cycle.

16.  SAP AG CSU Chico Material Master - View(s) The R/3 system allows selection and maintenance of the data that is relevant to a particular department. To create a view, the view must be selected on the “Select View(s)” screen before the material data is entered. Users are responsible for creating and maintaining the view(s) of the materials that are relevant to their departments.

17.  SAP AG CSU Chico Material Master - Industry Sector Industry sector determined the type of industry to which the material will be assigned. Industry sector information determines: which screens will appear and in what sequence what industry-specific data will appear

18.  SAP AG CSU Chico Material Master - Maintenance Defaults - speeds entry of data by using the most frequently used organizational levels and views as default values. These defaults are user-specific and may be overridden. Reference Material - speeds entry by copying pertinent data from existing material master records. Profiles - speeds entry by copying standard data created in a profile into a selected view. Collective entry of storage locations - speeds creation of additional storage locations by adding multiple locations at one time.

19.  SAP AG CSU Chico Material Master - Material Type Groups material with same basic attributes Determines: which department views are maintained Whether changes in material quantities are updated Whether internal or external procurement is allowed Which general ledger accounts are updated

20.  SAP AG CSU Chico Vendor Master The vendor master includes all the data necessary for processing business transactions and corresponding with vendors. Information is shared between the accounting and purchasing departments. Data is grouped into three categories: general data accounting data purchasing data

21.  SAP AG CSU Chico Basic Procurement Process Requirements determination - purchase requisition Source determination - RFQ and quotation Vendor selection Order processing - purchase order Order follow-up Goods receipt and inventory management Invoice verification Payment

22.  SAP AG CSU Chico Purchase Requisitions Internal document Requesting a certain quantity of material or service on a certain date Can be created: Manually Automatically (MRP, sales orders, etc.) Release approval procedures can be established

23.  SAP AG CSU Chico Purchase Requisition Sources Manually created by user department Automatically created by: Planning (MRP, MPS) Plant maintenance Production orders Sales orders

24.  SAP AG CSU Chico Processing Purchase Requisitions Create purchase requisition (manually or automatically) Determine source of supply Release procedure (optional) Allocate vendor and process

25.  SAP AG CSU Chico Creating a Purchase Requisition Default data for line items delivery dates, plants, purchasing groups, etc. Maintain line item data materials, quantities, delivery dates, etc. Maintain account assignment (if required) cost center, G/L accounts, project number, etc. Check data Save

26.  SAP AG CSU Chico Purchase Requisitions - Menu Paths Create: Logistics -> Materials management -> Purchasing -> -> Requisition -> Create Change: Logistics -> Materials management -> Purchasing -> -> Requisition -> Change Display: Logistics -> Materials management -> Purchasing -> -> Requisition -> Display

27.  SAP AG CSU Chico Purchase Orders Purchase orders are: a formal request to provide materials or services an internal planning and tracking tool Purchase orders identify: vendor material and/or service quantity and price delivery dates terms of payment

28.  SAP AG CSU Chico Purchase Order Structure Header - information specific to the entire purchase order vendor currency payment terms

29.  SAP AG CSU Chico Purchase Order Structure Line item details account assignment delivery schedule materials/services quantity price description item category

30.  SAP AG CSU Chico Item Category Item category defines the form of procurement Whether a purchase order requires: material number account assignment goods receipt and/or invoice receipt Examples: subcontracting consignment stock transfer

31.  SAP AG CSU Chico Purchase Order Output Request for quotations Purchase order Order acknowledgment

32.  SAP AG CSU Chico Purchase Order Output Format Printed and mailed EDI Faxed (hardcopy or electronic)

33.  SAP AG CSU Chico Purchase Order - Menu Paths Create: Logistics -> Materials management -> Purchasing -> -> Purchase order -> Create vendor known vendor unknown via requisition Change: Logistics -> Materials management -> Purchasing -> -> Purchase order -> Change Display: Logistics -> Materials management -> Purchasing -> -> Purchase order -> Display

34.  SAP AG CSU Chico Goods Receipt Goods receipt with reference to a purchase order: copy data from purchase order delivery notification invoice verification updates PO history inventory update automatic update of G/L accounts You can search for the PO number with: material number, vendor number, etc.

35.  SAP AG CSU Chico Goods Receipt Destinations Stock - given a storage location, can be posted to three different stock types: unrestricted-use quality inspection blocked stock (valuated) Consumption - can be assigned a recipient or unloading point Goods Receipt Blocked Stock - updates inventory, but material is not valuated (conditional acceptance)

36.  SAP AG CSU Chico Goods Receipt - Movement Types Movement types - stock transactions: goods receipt goods issue stock transfer Movement type determines which: quantity fields are updated stock types are updated G/L stock or consumption accounts are updated fields are displayed during document entry

37.  SAP AG CSU Chico Movement Type - Examples 101 - goods receipt for purchase order into warehouse/stores 102 - reversal of goods receipt for purchase order into warehouse/stores 122 - return delivery to vendor 501 - receipt w/o purchase order into unrestricted-use stock

38.  SAP AG CSU Chico Goods Receipt - Account Postings Inventory account is debited at standard price GR/IR clearing account is credited at purchase order price Price difference account is debited (credited) with difference between standard price and purchase order price

39.  SAP AG CSU Chico Effects of a Goods Receipt PO history and PO updated Material master - stock and value updated Notification of goods receipt issued (optional) Transfer request to Warehouse Management system (if active) Material and financial documents created and/or updated Stock and consumption accounts updated Inspection notification in QM (if active)

40.  SAP AG CSU Chico Goods Receipt - Menu Paths Create: Logistics -> Materials management -> Inventory management -> -> Goods movement -> Goods receipt -> For purchase order -> PO number known PO number unknown Change: Logistics -> Materials management -> Inventory management -> -> Material document -> Change Display: Logistics -> Materials management -> Inventory management -> -> Material document -> Display

41.  SAP AG CSU Chico Invoice Verification Matches the vendor’s invoice to the purchase order and the goods receipt (3rd part of 3-way match) Matches price and quantity Updates the purchase order and its history Updates accounting information

42.  SAP AG CSU Chico Invoice Payment Selects invoices for payment based on the payment terms in the vendor master or purchase order Generates payment for released invoices Updates accounting information

43.  SAP AG CSU Chico Accounts Payable Payment Process Determines: open items to be paid when they will be paid bank from which payment will be made payment medium who will get paid Payment process creates a financial accounting document to record the transaction

44.  SAP AG CSU Chico Invoice Processing - Menu Paths Enter an Invoice: Logistics -> Materials management -> Invoice verification -> Invoice verification ->-> Document entry -> Enter invoice Change: Logistics -> Materials management -> Invoice verification -> Invoice verification ->-> Further processing -> Change Display: Logistics -> Materials management -> Invoice verification -> Invoice verification ->-> Further processing -> Display

45.  SAP AG CSU Chico Invoice Processing - Menu Paths Payment Processing: Accounting -> Financial accounting -> Accounts payable ->-> Document entry -> Outgoing payment -> Post View PO History Documents: Logistics -> Materials management -> Purchasing ->-> Purchase order -> List display -> By PO number

46.  SAP AG CSU Chico SAP R/3 Sales and Distribution Module

47.  SAP AG CSU Chico 47 SD Overview Introduction Overview Organizational Units Master Data Main Process Integration

48.  SAP AG CSU Chico 48 Overview Handles the selling of products or services to business partners Master data forms the basis for all activities in S/D Need a customer to sell to, product to sell, and a price Perform the task of sale, delivery and billing Each activities creates a document flow based on Sale Doc Allows for current status for a Bus. Event anytime, anywhere along the value chain

49.  SAP AG CSU Chico 49 Overview S/D handles several functions to support a sale Material and price determination, availability check, schedule determination, collective invoice processing, etc. In addition to a standard order, S/D handles different business events involving a sale activity Consignment goods, leases, free of charge, third-party orders, etc.

50.  SAP AG CSU Chico 50 Organization Units Sales Organization - Sell and distributes products Distribution Channel - Method in which material or services reach customer Wholesale, retail, and direct sales Sales Division - Responsible for sales or profits from services or materials Group materials products or services Sales Area - Combination of sales organization, dis. Channels, and divisions Used for reporting

51.  SAP AG CSU Chico 51 Organizational Unit

52.  SAP AG CSU Chico 52 Organization Units Sales Office - Reflects the geographical aspects of a sales organization Establishes contact between the firm and the regional market Sales Group - Individuals responsible for the sale Plant - Place where a product or services is render from Company Code - Legal reporting for external users

53.  SAP AG CSU Chico 53 Organization Unit

54.  SAP AG CSU Chico 54 Master Data

55.  SAP AG CSU Chico 55 Master Data Customer - sale org. (General View) Various relationship can be stored (sales view)  Sold-to, Bill-to, Ship-to, shipping, etc. Customer account is stored (accounting view)  Credit, invoice payment, etc. Material - plant Different characteristics  Sales status, Material type, etc. Pricing Uses a condition technique that allows prices to be executed automatically in the order

56.  SAP AG CSU Chico 56 Processes

57.  SAP AG CSU Chico 57 Main Process - Sale All activities from request for quotation processing to processing all kinds of orders Data from the first document is carried forward to subsequent documents The sale document may result in a single order or a longer- term relationship in the form of outline agreement with special conditions Outline agreements: divided into contracts and scheduling agreement, and are valid for a defined period of time Contracts: quantities and prices are specified for scheduling agreements and delivery dates Orders: price determination, availability check, credit limit check, and delivery scheduling serve as a basis for rejection or acceptance

58.  SAP AG CSU Chico 58 Main Process - Shipping Guarantee on-time and cost-saving retrieval and shipments of products agreed upon in a customer order Data is copy from the sales order (integration) or created without reference to an order Shipping handles picking, creation of packaging and loading instructions, and transportation routing and tracking Foreign trade requirements are handled (export permits, notices to government agencies, etc.) Good issue is performed

59.  SAP AG CSU Chico 59 Main Process - Billing Creation of invoices based on deliveries and services rendered, of credit and debit memos, and proforma invoices Deliveries from different orders can be combined or split into different invoices Creations are passed on to FI, which monitors receipt of payment

60.  SAP AG CSU Chico 60 Main Process (Function) - Sales Support and SIS Contains marketing- and sales-related information about customers, potential customers and partners, as well as competitors and their products Supports marketer in segmenting markets, business development and customer service SIS is tightly linked with Sales Support Used to gather, condense and evaluate data from sales Analysis of performance measure according to various methods Correlation curves, planned/actual comparisons, etc. Warning system

61.  SAP AG CSU Chico 61 Integration In order processing, an availability check for stocks in MM Delivery processing, creates goods issues which is MM Existing sales quantities of an order, can be transferred to PP and CO as planned independent requirements to be produce Data of a product in S/D is passed to CO for product costing During billing, profit centre postings are automatically updated During billing, the invoice amounts is automatically transferred to FI as revenues where receipt of payment is monitored or open item are dunned

62.  SAP AG CSU Chico 62 Integration