Download - AF SolutionScope V1606 en CN
-
EHP6 for SAP ERP 6.0
September 2013
English
SAP Best Practices for Apparel and Footwear (SAP AFS)
SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany
Solution Scope
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 2 of 23
Copyright
2013 SAP AG or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the
express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components
of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational
purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors
or omissions with respect to the materials. The only warranties for SAP Group products and services are
those that are set forth in the express warranty statements accompanying such products and services, if
any. Nothing herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP AG in Germany and other countries. Please see
http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information
and notices.
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 3 of 23
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process Alternative/Decision Choice
Typographic Conventions
Type Style Description
Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.
Cross-references to other documentation.
Example text Emphasized words or phrases in body text, titles of graphics and tables.
EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.
Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.
EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the
ENTER key.
Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.
Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 4 of 23
Contents
SAP Best Practices for Apparel and Footwear: Solution Scope .................................................... 5
1 Purpose ................................................................................................................................... 5
2 Functional Scope Functions ................................................................................................. 5
2.1 Warehouse and Inventory Management ....................................................................... 5
2.2 Forecast-to-Stock .......................................................................................................... 5
2.3 Order-to-Cash ............................................................................................................... 5
2.4 Procure-to-Pay .............................................................................................................. 6
2.5 Accounting..................................................................................................................... 6
2.6 Other ............................................................................................................................. 6
3 Functional Scope Supported Business Processes or Scenarios ......................................... 6
3.1 134 AFS: Stock Transfer with Delivery ...................................................................... 6
3.2 624 - Warehouse Management with Allocation Run ..................................................... 7
3.3 630 - Make-to-Stock for Apparel and Footwear Industry .............................................. 8
3.4 631: Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry 9
3.5 632 - Inter-company and Cross-plant Production ......................................................... 9
3.6 634 - Production Subcontracting (External Processing) for Apparel and Footwear Industry 10
3.7 635 - Combined Production Orders ............................................................................ 11
3.8 AF9 - OEM Business Process in APA Countries ........................................................ 11
3.9 611 - Sales Order Processing with Allocation Run: Sale from Stock.......................... 13
3.10 612 - Cross-Company Sales Order Processing with Allocation Run .......................... 14
3.11 613 - Pre-Order Processing (Sales) ............................................................................ 15
3.12 614 - Rush Order Processing (Sales) ......................................................................... 15
3.13 615 - Sales Order Processing with Export Control ..................................................... 16
3.14 616 - Order to Cash with Packing and Transport Management ................................. 17
3.15 AF6 - Outsourced Manufacturing ................................................................................ 18
3.16 AF7 - Prepacks Order Processing (Sales) .................................................................. 18
3.17 620 - Finished Goods and Raw Materials Sourcing ................................................... 19
3.18 621 - Materials Subcontracting for Apparel and Footwear Industry ........................... 19
3.19 AF8 - Procurement with Quality Management ............................................................ 21
3.20 645 - Activate Document Splitting for Apparel and Footwear Industry ....................... 21
3.21 154 - AFS: Prereq. Process Step ................................................................................ 22
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 5 of 23
SAP Best Practices for Apparel and Footwear: Solution Scope
1 Purpose This Solution Scope provides an overview of the processes and functions that are covered by SAP Best Practices for Apparel and Footwear and explains the business purposes of the delivered functions.
Under Functional Scope Functions, you will find a view arranged according to groups of functions and based on the relevant SAP Solution Map.
Under Functional Scope Supported Business Processes or Scenarios, you will find a scenario-based view of the functions.
The Solution Scope does not provide technical explanations of how to use the functions. For further information on this topic, see the Business Process Documentation documents.
2 Functional Scope Functions
2.1 Warehouse and Inventory Management
134 AFS: Stock Transfer with Delivery
624 Warehouse Management with Allocation Run
2.2 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
AF9 OEM Business Process in APA Countries
2.3 Order-to-Cash
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
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 6 of 23
616 Order to Cash with Packing and Transport Management
AF6 AFS - Outsourced Manufacturing
AF7 Prepacks and Assortments
2.4 Procure-to-Pay
620 Finished Goods and Raw Materials Sourcing
621 Materials Subcontracting for Apparel and Footwear Industry
AF8 QM in Sourcing
2.5 Accounting
645 Activate Document Splitting for Apparel and Footwear Industry
2.6 Other
154 AFS: Prereq. Process Steps
3 Functional Scope Supported Business Processes or Scenarios
3.1 134 AFS: Stock Transfer with Delivery
Purpose
This documentation gives an overview of how this scenario is processed from a business point-of-view. The scenario demonstrates Intra-company stock transfers as well as stock movements within the same plant. The internal procurement of materials can be carried out within one company code.
This process can be dealt with using standard functions such as material requirements planning, purchase requisition, stock transport order, transportation planning, and the handling of internal deliveries.
Process Flow
The following functions are provided to support the AFS Internal Stock Transfer with Delivery:
Creating stock transport order
Creating delivery for stock transport order
Creating Billing Document
Creating Excise Invoice
Stock Overview on SKU level
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 7 of 23
Key Points
Supports all required documents for stock transfers with delivery
Supports all required master data aspects like batch management and serial numbers
Monitors stock in transit
Delivery costs can be entered in the stock transport order
3.2 624 - Warehouse Management with Allocation Run
Purpose
This scenario describes the processing procedure for goods in a distribution center, using a warehouse management system without Handling Unit Management, which covers following functionality:
Replenishment
Inbound Procedure
Outbound Procedure
Inventory
Process Flow
Replenishment
Create Transfer Requirement
Create Transfer Orders for the Transfer Requirements
Confirm Transfer Order
Display Storage Bin Stock
Inbound Procedure
Create Purchase Orders
Create Inbound Delivery
Post Goods Receipt for Purchase Order
Create and Confirm Transfer Order for Delivery Note
Displaying Storage Bin Stock
Outbound Procedure
Creating Sales Order
Executing Allocation Run
Creating Outbound Delivery for Sales Order
Creating and Confirming Transfer Orders for Deliveries
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 8 of 23
Post Goods Issue
Display Storage Bin Stock
Inventory
Create Physical Inventory Document
Count Results
Clear Differences Warehouse Management
Clear Differences Inventory Management
Key Points
WM without HU
3.3 630 - Make-to-Stock for Apparel and Footwear Industry
Purpose
This scenario describes the processes involved in sales-order-independent production for the Apparel and Footwear Industry.
The scenario uses the AFS functionality, which is a comprehensive solution based on the ERP Standard, and is designed to meet the specific needs of the Apparel and Footwear industry. The AFS-specific features allow materials to be managed at the Stock keeping unit level (SKU). The materials are classified according to certain characteristic values, for example size, color and quality, which brings data to the lower level and influences the entire logistical process.
The basic data in the area of production planning and control, i.e. bills of material and routings, have also been modified to accommodate the requirements of the Apparel and Footwear industry. Bills of material and routings contain characteristic values of the corresponding materials.
Process Flow
Create planned independent requirements at the SKU level
Run material requirements planning (MRP) at the SKU level
Create production order at the SKU level
Release production order
Confirm production order / component consumption
Post goods receipt from production order
Carry out production order costing
Key Points
Perform production order processing
Execute production triggered by a production plan
Accomplish make-to-stock production process
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 9 of 23
3.4 631: Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry
Purpose
The scenario describes the processes involved in sales-order-dependent production for Apparel and Footwear Industry.
Process Flow
This scenario consists of the following steps:
Sales Order processing
Material requirements planning (MRP)
Production Order Processing
Posting the Goods Issues for all component quantities
Confirming Operations at the same time that are carried out
Posting the Goods Receipt for all quantities of the finished product
Delivery and Billing
Key Points
Sales-order-dependent production by MTO (make To order)
Production triggered by a sales order
Make-to-order production
3.5 632 - Inter-company and Cross-plant Production
Purpose
The scenario describes the process of manufacturing in two different plants in two different company codes. A semi-finished product is manufactured in a second plant which belongs to a different company code.
Process Flow
Planned independent requirements processing
Material requirements planning (MRP)
Make-to-stock production / production order processing
Inter-company procurement of semi-finished product from plant in different company code
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 10 of 23
Key Points
Sales-order-independent production by MTS (make-to-stock) production / production order processing
Production triggered by a production plan
Make-to-stock production split on several plants in different company codes
3.6 634 - Production Subcontracting (External Processing) for Apparel and Footwear Industry
Purpose
This scenario describes the processes involved in sales-order-independent production with external operations for Apparel and Footwear Industry. An externally processed operation is an operation that is not performed in-house, but assigned to an outside vendor.
In this scenario, for the finished product that is manufactured internally, one of the individual operations in the production order is being carried out as an external operation. Examples of the most common external operations: cutting, embroidery, printing.
The external operation is setup in the routing, and is assigned to a vendor via an info record. The system automatically creates a subcontracting Purchase Requisition for the external operation. Subsequently, the requisition is converted into a purchase order, which contains the SKU data of the finished material. However, the PO does not display the material number. Components are provided to the vendor according to the PO requirements.
Later the vendor bills for the services provided. The invoice is entered with reference to the purchase order.
Process Flow
Create planned independent requirements at the SKU level
Execute material requirements planning (MRP) at the SKU level
Create production order at the SKU level
Release production order
Purchase requisition for the subcontracting operation is created
Convert purchase requisition to purchase order, provide components
Confirm production order / component consumption
Post goods receipt from production order / goods receipt for subcontracting purchase order
Carry out production order costing
Key Points
Perform external operation at subcontractor
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 11 of 23
Make external operation part of the production order
Create external operation PO at the SKU level
Provide components to the subcontractor
Perform goods receipt for the PO with the consumption of the components
3.7 635 - Combined Production Orders
Purpose
This scenario describes the production processes that involve combined Production Orders for Apparel and Footwear Industry. This function allows grouping several production orders that use the same component or have the same operation in the routing.
The scenario uses the AFS functionality, which is a comprehensive solution based on the ERP Standard, and is designed to meet the specific needs of the Apparel and Footwear industry. The AFS-specific features allow materials to be managed at the Stock keeping unit level (SKU). The materials are classified according to certain characteristic values, for example size, color and quality, which brings data to the lower level and influences the entire logistical process.
The basic data in the area of production planning and control, i.e. bills of material and routings, have also been modified to accommodate the requirements of the Apparel and Footwear industry. Bills of material and routings contain characteristic values of the corresponding materials.
Process Flow
Create planned independent requirements
Run material requirements planning (MRP)
Combine different Production Orders
Release Combined Production Orders at the same time
Post the Goods Issues for all component quantities from the Combined Orders at the same time
Confirm Operations at the same time that are carried out for the Combined Orders
Key Points
Combine several production orders sharing the same component or the same operation
3.8 AF9 - OEM Business Process in APA Countries
Purpose
In the APA (Asia & Pacific area) countries make To Order production accounts for the majority of
OEMs business. SAP AFS MTO is not sufficient to cope with all customer requirements. The
OEM production process has therefore been configured as a Make To Stock process with
flexible and dynamic category filling.
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 12 of 23
Production environment in the APA countries
The majority of companies in the apparel and footwear industry in the APA countries are Original
Equipment Manufacturers (OEMs).
Production environment in APA countries is customer driven: order related production cycles
account for the majority of OEMs business. This means that materials are customer-made and
are always produced, procured and kept in stock with specific relation to customer order: this
applies to finished goods as well as to raw materials.
Customer orders OEMs initially receive provide just the basic dates and the total amount of
styles ordered without carrying any information about sizes, colours, quantities, requested
delivery dates, ship to parties. These orders are so called greige orders (or greige contracts)
meant to reserve production capacities at an early planning phase. Based on these greige orders
production planning as well as the procurement process starts. At a later date, during the
season, customer specifies in detail which quantities of which materials / SKUs to which delivery
date for which destination he needs. Raw materials are procured accordingly and the production
flow begins.
Being a customer driven business process it is essential to guarantee the visibility of the
customer during the whole process: during the whole logistical chain starting from sales order
entry, to requirement planning, to procurement and finally to manufacturing there has to be a
clear link to the initial greige order of the customer. This is the main requirement in the
production process of OEMs.
SAP AFS categories
Dynamic category filling in a make to stock (MTS) production environment has been deployed in
order to retain flexibility yet benefit from the logistic link AFS categories provide along the
logistics supply chain.
AFS categories are used to logically segment requirements and stock. The category field is
dynamically filled through the customer name (sold-to party) and purchase order number entered
while creating the greige contract. This information is carried via category field through the entire
logistic chain, from the contract release orders to the order related procurement of raw materials
and production of finished goods.
Configuring the process using a make to stock scenario with categories all requirements of
OEMs production process can be met
Early planning with greige contracts with category field information inherited from follow-up
documents.
Visibility of the customer during the whole process via category field
Reserving stock for customer and flexible allocation of customer requirements to customer specific stock.
Process Flow
Creating a Sales Contract (Greige contract)
Run MRP
Creating a Purchasing Contract(greige contract)
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 13 of 23
Creating a Contract Release Order
Run MRP and Create PO
Creating Production Order
Goods Receipt of Purchase Order
Release Production Order
Creating Order Confirmation / Component Consumption
Receive Finished Goods from Production Order
A-RUN
Create Delivery
Creating a Billing Document
Key Points
Being a customer driven business process it is essential to guarantee the visibility of the customer during the whole process: during the whole logistical chain starting from sales order entry, to requirement planning, to procurement and finally to manufacturing. The production process of OEMs is benefit to have a clear link between the whole logistical chain and initial unspecific requirement of the customer.
3.9 611 - Sales Order Processing with Allocation Run: Sale from Stock
Purpose
This scenario describes the Sales Order process from Sales Order Entry to Billing for the Apparel and Footwear industry. The process is designed to demonstrate the various AFS functionality for sales order processing. The scenario contains additional ERP standard and AFS-specific functionality:
Pricing conditions (SKU Pricing)
Availability check (on batch level) incl. dialog
Allocation Run (FIFO logic, fulfillment rate)
Use of Categories
Process Flow
The process for the Apparel and Footwear industry is described as follows:
Sales Order Entry
Order Confirmation
Allocation Run
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 14 of 23
Delivery plus Picking and Post goods issue
Billing
Key Points
Categories: AFS supports requirement and stock categories. Categories can be used to segment the requirements and stock. In this process quality and country of origin are setup as category objects. Customer requirements from CN (China) can be fulfilled by stock from EG (Egypt) or TR (Turkey) if no stock from CN exists. Customer requirements from US (USA) can only be fulfilled by stock from TR (Turkey). 1st quality will be fulfilled by 1st quality on stock; same conditions for 2nd quality.
Allocation Run: During sales order entry ATP allocates existing stock only temporarily. The AFS feature Allocation Run is allocating stock to sales orders finally. The allocation run is based on rules, such as FIFO (first in-first out), credit limit checks and so on.
3.10 612 - Cross-Company Sales Order Processing with Allocation Run
Purpose
The AFS Cross Company Sales scenario is customized for the Apparel and Footwear industry. The scenario uses the AFS functionality, which is a comprehensive solution based on the ERP Standard and is designed to meet the specific needs of the Apparel and Footwear industry. The AFS-specific features allow materials to be managed at the Stock keeping unit level (SKU).
Process Flow
Create sales order on SKU level
Define delivering plant
Carry out allocation run in delivering plant
Create delivery in delivering plant
Picking and goods issue in delivering plant
Create intercompany billing in delivering plant and send via EDI
Receive intercompany billing
Create customer billing
Key Points
Maintain intercompany conditions in pricing procedure
Maintain customer master for intercompany transactions
Maintain vendor master for intercompany transactions
Perform ALE setup for intercompany billing
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 15 of 23
3.11 613 - Pre-Order Processing (Sales)
Purpose
The Pre-Order Processing (Sales) scenario reflects the season handling in the Apparel and Footwear industry. Products belong to a certain season. Within a season different themes and collections are distinguished. For the combination season-theme-collection different order entry and Delivery dates are defined. The delivery dates can also be defined separately for different customer groups.
Typically there is no stock during entering pre-orders. The procurement will be triggered based on the demand created by the pre-orders. However future receipts can be allocated to reserve stock for certain sales orders.
The ATP check confirms or proposes delivery dates which are the result of the purchase situation.
After incoming goods the goods get allocated to the sales orders regarding the early allocation.
Process Flow
Create sales order on SKU level
Season determination based on defined delivery program, assignment of corresponding delivery date regarding different customer groups
Two-Date Pricing (delivery date and customer group dependency)
Allocation run incl. seasonal settings
Allocation against future receipts
Create delivery on SKU level
Picking and goods issue on SKU level
Billing on SKU level
Key Points
Season determination
AFS Pricing option (Two-Date pricing)
Allocation against future receipts to reserve stock for certain sales orders
Reallocation against early allocation
3.12 614 - Rush Order Processing (Sales)
Purpose
This scenario describes the processing of the AFS rush order. A rush order is typically placed to sell existing stock during or at the end of a season. Existing stock will immediately be allocated during order entry.
Process Flow
Create Sales Order on SKU level
Allocation run is processed in background, immediate stock allocation
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 16 of 23
Create delivery on SKU level
Picking and Goods Issue on SKU level
Billing on SKU level
Payment
Key Points
Immediate stock allocation
3.13 615 - Sales Order Processing with Export Control
Purpose
This scenario describes the Exporting Sales Order process from Sales Order Entry to Billing for the Apparel and Footwear industry. The process is designed to demonstrate the various AFS functionalities for sales order processing. The scenario contains additional ERP standard and AFS-specific functionality:
Pricing conditions (SKU-Pricing)
Availability check (on batch level) incl. dialog
Allocation Run (FIFO logic, fulfillment rate)
Use of categories will be excluded from this process
Legal control (foreign trade)
Process Flow
Creating exporting sales order
Releasing Sales Order (Blocked for invalid license master)
Order confirmation
Allocation Run (FIFO logic, fulfillment rate)
Delivery plus Picking and Post Goods Issue
Billing
Key Points
Pricing conditions (SKU Pricing)
Availability check (on batch level) incl. dialog
Allocation Run (FIFO logic, fulfillment rate)
Use of categories will be excluded from this process
Legal control (foreign trade)
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 17 of 23
3.14 616 - Order to Cash with Packing and Transport Management
Purpose
This scenario demonstrates how to process a standard AFS order including packing, shipping, and billing the shipping. The process is designed to demonstrate the various AFS functionalities for sales order processing. The scenario contains additional ERP standard and AFS-specific functionality:
ATP, check on batch level
Pricing conditions
No-Seasonality
Allocation Run (unrestricted used stock)
Delivery with picking and packing
Shipment Creation
Freight cost determination
Billing of sales order including freight
Process Flow
This scenario consists of the following steps:
Creating Sales Order (For Customer that will Pay for Freight )
Order Confirmation
Allocation Run
Creating Delivery for your Sales Order, Pick and Pack
Creating the Shipment
Determining Shipment Cost
Billing including Freight Cost
Key Points
ATP, check on batch level
Pricing conditions
No-Seasonality
Allocation Run (unrestricted used stock)
Delivery with picking and packing
Shipment Creation
Freight cost determination
Billing of sales order including freight
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 18 of 23
3.15 AF6 - Outsourced Manufacturing
This scenario focuses on the Outsourced Manufacturing.
When entering the sales order for customer a subcontracting purchase requisition can be created automatically afterwards. Sold Products are finished by the subcontractor and sent to customer directly.
Process Flow
This scenario consists of the following steps:
Creating Outsourced Sales Order
Convert Purchase Requisition to Purchase Order
Shipping of components to subcontractor
Posting Statistical Goods Receipt with consumption of components
Invoice verification
Billing
Key Points
Reducing stock and cost, increasing efficiency
Combination of third-party process with subcontracting functionality
Handover of customers requirements directly to external supplier
Invoice from subcontractor based on external services.
3.16 AF7 - Prepacks Order Processing (Sales)
In this scenario, we are demonstrating sales order processing with Prepacks. Prepacks are materials that consist of several components. The BOM contains various components which are sold together as one product.
You use Prepacks if you want to sell predefined combinations of quantities and sizes of particular materials to your customer, e.g. kids T-Shirt and pants, 3-pack of T-Shirts in certain size, but different colors. Prepack is stored on stock as prepack as well.
Process
This scenario consists of the following steps:
Sales Order Entry
Key Points
Prepack combination of your product with defined quantities;
Especially used in promotion season.
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 19 of 23
3.17 620 - Finished Goods and Raw Materials Sourcing
Purpose
This scenario describes both the Finished Goods Sourcing and Raw Material Sourcing functions for the Apparel and Footwear industry.
The scenario uses the AFS functionality, which is a comprehensive solution based on the ERP Standard and is designed to meet the specific needs of the Apparel and Footwear industry. The AFS solution utilizes the AFS specific data (categories and grid values) at every level of the procurement process: MRP, Purchase Order Processing, Goods Receipt and Logistics Invoice Verification.
In AFS, the SAP standard master data used for the materials management processes has been enhanced to accommodate the specific logistical processes of the apparel and footwear industry. The AFS-specific features allow materials to be procured and managed at the Stock keeping unit level (SKU), and AFS-specific enhancements are implemented for different levels of master data processing in the material master, vendor master, info records, and so on.
This scenario is applicable for companies that source their Finished Goods, as well as for companies that manage their own production facilities, and, therefore, procure raw materials.
The target group is the end users of your enterprise. Finally, this document guides you through the entire scenario and is suitable as training material.
Process Flow
The following process flow describes the typical procurement cycle for the Apparel and Footwear industry, which passes through the following phases:
AFS master data is maintained (material masters, vendor masters, info records)
Customer places order, and MRP run generates Purchase requisitions
Vendor is selected and assigned to the requisition
Purchase order is created with reference to the requisition (manually or/and automatically)
Purchase order confirmations are maintained
Inbound Delivery is created
Post Goods Receipt with reference to the inbound delivery
Stock Overview
Logistics Invoice Verification
Key Points
AFS functionality for procurement enables user to:
Run MRP at SKU level
Conduct purchasing processes at SKU level
Conduct inventory management at SKU level
3.18 621 - Materials Subcontracting for Apparel and
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 20 of 23
Footwear Industry
Purpose
This scenario covers Subcontracting processes specific for the Apparel and Footwear industry.
The scenario uses the AFS functionality which is a comprehensive solution based on the ERP Standard, designed to meet the specific needs of the Apparel and Footwear industry.
In AFS, the SAP standard master data used for the materials management processes has been enhanced to accommodate the specific logistical processes of the apparel and footwear industry. The AFS-specific features allow materials to be procured and managed at the Stock keeping unit level (SKU), and AFS-specific enhancements are implemented for different levels of master data processing in the material master, vendor master, info records, etc.
In a typical subcontracting process, materials (components) are sent to a subcontracting vendor who adds value by performing a production operation. Once the operation is complete, the end products are delivered to the original plant. The Subcontracting functionality offers visibility of the components provided to the subcontractor, and also, if required, operational visibility at the subcontractor.
Process Flow
The following process flow describes the Subcontracting process in Apparel and Footwear industry:
Create a sales order for the end material
Run MRP: it will create a subcontract purchase requisition for the end product and for the components (component requisitions depends on the components availability)
Select vendors for the component and end product requisitions
Create subcontracting purchase order with reference to the SC requisition
Create component purchase orders with reference to the component requisitions (if component requisitions are created). The component POs are to be delivered to the subcontractor directly
Monitor subcontracting stock
Provide additional components to the subcontractor from the plant unrestricted stock
Maintain PO Confirmations for the component POs
Post goods receipt for the component POs into the vendor stock
Maintain PO confirmations for the finished product PO
Post goods receipt of finished good / consumption of components
Perform Logistics Invoice Verification
Key Points
Subcontracting process for Apparel and Footwear enables you to:
Monitor Subcontracting stock at vendor
Provide components to the subcontractor from plant unrestricted stock
Ship components directly from the component vendor to the subcontractor
Perform goods receipt for the end product with the consumption of the components
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 21 of 23
3.19 AF8 - Procurement with Quality Management
This scenario describes both the Finished Goods Sourcing and Raw Material Sourcing functions that integration with Quality Management for the Apparel and Footwear industry.
In AFS, the SAP standard master data used for the materials management processes has been enhanced to accommodate the specific logistical processes of the apparel and footwear industry. The AFS-specific features allow materials to be procured and managed at the Stock keeping unit level (SKU), and AFS-specific enhancements are implemented for different levels of master data processing in the material master, vendor master, info records, and so on. The Quality Management is also can be process in SKU level.
This scenario is applicable for companies that source their Finished Goods, as well as for companies that manage their own production facilities, and, therefore, procure raw materials. And they need to apply quality management to the purchase process.
Process Flow
The following process flow describes the procurement with quality management process in Apparel and Footwear industry:
Create Purchase Order
Maintain Confirmations
Approval of Purchase Order
Receive Delivery Note / Create Inbound Delivery
Post Goods Receipt
Record the Inspection Result
Usage Decision
Logistics Invoice Verification
Key Points
Subcontracting process for Apparel and Footwear enables you to:
Quality management function integrated with MM
3.20 645 - Activate Document Splitting for Apparel and Footwear Industry
Document splitting enables a complex display of documents. It ensures that you can draw up complete financial statements for the selected dimensions at any time.
Using the document splitting procedure, you can also create a segmented display of a (partial) balance sheet, according to a legal requirement (for example, IAS), or according to areas of responsibility.
The Segment field is a standard field in the totals table for New General Ledger Accounting (FAGLFLEXT) New FI drilldown reporting functions let you create segment financial statements. Document splitting is only relevant for the general ledger; it does not need to be visible from within the sub ledgers.
Process Flow
The following process flow describes the AFS Combined Orders scenario:
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 22 of 23
Passive split: During clearing (during a payment, for example), the account assignments of the items to clear are inherited to the clearing line item[s] (such as payables line item[s]).
Active (rule-based) split: The system splits documents on the basis of (delivered or custom) document splitting rules. Document splitting rules can be configured.
Clearing lines or zero balance formation: the system creates clearing lines automatically to achieve a split. You can control this process with the "zero balance indicator".
Key Points
Document splitting functionality enables user to:
Extensibility and flexibility to add new fields, you can create management reports, supplementary balance sheets, and profitandloss statement for industryspecific and enterprisespecific purposes.
Increased data quality the results of the document split are visible in the document itself. This eliminates the need for additional check steps in alternative lists, and improves data quality.
Accelerated closing The elimination of additional periodic splitting programs significantly speeds up the closing process.
3.21 154 - AFS: Prereq. Process Step
This Business Process Documentation contains process steps that have to be done as prerequisite before you can start to work through the standard Business Process Documentation of selected logistics scenarios.
Process Flow
The following functions are provided to support this building block:
Roll MM Period to Current Period
Product Costing: Costing Run
Product Costing: Costing Run for Configured Materials
Create Product Cost Collectors
Preliminary Cost for the Product Cost Collector
Set Up Planning File Entry
Routings: Materials Update
Run Materials Requirements Planning (MRP)
Create Missing Parts Index
-
SAP Best Practices SAP Best Practices for Apparel and Footwear: Solution Scope
SAP AG Page 23 of 23
Key Points
All necessary data is provided that is required for executing demo scenarios with SAP Best Practices.
Prerequisite for selected logistic scenarios
CopyrightIconsTypographic ConventionsContentsSAP Best Practices for Apparel and Footwear: Solution Scope1 Purpose2 Functional Scope Functions2.1 Warehouse and Inventory Management2.2 Forecast-to-Stock2.3 Order-to-Cash2.4 Procure-to-Pay2.5 Accounting2.6 Other
3 Functional Scope Supported Business Processes or Scenarios3.1 134 AFS: Stock Transfer with DeliveryPurposeProcess FlowKey Points
3.2 624 - Warehouse Management with Allocation RunPurposeProcess FlowKey Points
3.3 630 - Make-to-Stock for Apparel and Footwear IndustryPurposeProcess FlowKey Points
3.4 631: Make-to-Order Production w/o Variant Configuration for Apparel and Footwear IndustryPurposeProcess FlowKey Points
3.5 632 - Inter-company and Cross-plant ProductionPurposeProcess FlowKey Points
3.6 634 - Production Subcontracting (External Processing) for Apparel and Footwear IndustryPurposeProcess FlowKey Points
3.7 635 - Combined Production OrdersPurposeProcess FlowKey Points
3.8 AF9 - OEM Business Process in APA CountriesPurposeProcess FlowKey Points
3.9 611 - Sales Order Processing with Allocation Run: Sale from StockPurposeProcess FlowKey Points
3.10 612 - Cross-Company Sales Order Processing with Allocation RunPurposeProcess FlowKey Points
3.11 613 - Pre-Order Processing (Sales)PurposeProcess FlowKey Points
3.12 614 - Rush Order Processing (Sales)PurposeProcess FlowKey Points
3.13 615 - Sales Order Processing with Export ControlPurposeProcess FlowKey Points
3.14 616 - Order to Cash with Packing and Transport ManagementPurposeProcess FlowKey Points
3.15 AF6 - Outsourced ManufacturingProcess FlowKey Points
3.17 620 - Finished Goods and Raw Materials SourcingPurposeProcess FlowKey Points
3.18 621 - Materials Subcontracting for Apparel and Footwear IndustryPurposeProcess FlowKey Points
3.19 AF8 - Procurement with Quality ManagementProcess FlowKey Points
3.20 645 - Activate Document Splitting for Apparel and Footwear IndustryProcess FlowKey Points
3.21 154 - AFS: Prereq. Process StepProcess FlowKey Points