icp320_en_col64_fv_150209

© SAP AG 2007

ICP320 SAP Apparel and Footwear / Material Managament and Production Planning

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2008

ICP320SAP Apparel and FootwearMaterial Managament and Production Planning

ICP320 SAP Apparel and Footwear Material Managament and Production Planning

Version 64

Material Number: 50088050

© SAP AG 2006

Copyright

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Curriculum/Course Prerequisites

SAP01 3 DaysSAP Overview

SCM600 5 Days

Processes in Sales & Distribution

SCM500 5 Days

Processes in Procurement

SCM300 3 Days

Overview Manufacturing

ICP310 5 Days

SAP Apparel and FootwearSales & Distribution and Allocation Run

ICP320 5 Days

SAP Apparel and FootwearMaterials Management and Production Planning

© SAP AG 2008

This course is intended for the following audiences:Members of the Apparel and Footwear (AFS) implementation team with experience in purchasing, production planning and IT, who are responsible for setting up the demand management during the implementation process of SAP´s Apparel and Footwear Solution.

Duration: 5 day

Target Audience

User notes

These training materials are not a teach-yourself program. They complement the explanations provided by your course instructor. Space is provided on each page for you to note down additional information.

There may not be sufficient time during the course to complete all the exercises. The exercises provide additional examples that are covered during the course. You can also work through these examples in your own time to increase your understanding of the topics.

© SAP AG ICP320 1-1

© SAP AG 2008

Course Overview: Course Content

Preface

Unit 1 Course Overview

Unit 2 Master Data

Unit 3 Procurement

Unit 4 Inventory Management

Unit 5 Invoice Verification

Unit 6 Special Business Processes

Unit 7 Product Forecasting Planning

Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


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This course will prepare you to:Work with the strategies for managing the unique requirements of apparel and footwear supply management using SAP AFS

Course Goals


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After completing this course, you will be able to:Identify how AFS supports standards and business practices in the apparel and footwear industry

Outline how AFS functionality integrates the supply chain for the apparel and footwear industry

Define and create multi-dimensional product grids and include them in the material master

Explain the relationship between requirement and stock categories within a coverage strategy

Outline the procurement process in AFS

Course Objectives (1)


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After completing this course, you will be able to:Outline inventory management procedures

Describe AFS special business processes and stocks

Describe product forecasting and planned independent requirements for AFS

Outline Materials Requirements Planning (MRP) procedures and execute AFS MRP for purchased and produced material



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After completing this course, you will be able to:Evaluate MRP results in AFS

Create PP master data for AFS materials

Create and release a production order in AFS

Explain the ATP check in AFS production orders

Analyze different information systems/reports in production



© SAP AG 2008

Course Content



Unit 8 MRP

Unit 9 Production


Unit 2 Master Data

Unit 3 Procurement



Preface

Conclusion

Appendices


© SAP AG 2008

Course Overview Diagram

InvoiceVerification

MaterialMaster Pricing

ValueAdded

Services

AFSMaster Data

Sales andDistribution

Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP

SOP Routing PlannedOrder

ProductionOrder

MarkersProduction

Lots

Valuation/ProductCosting

WarehouseManagement

ERP Standard functionality with AFS enhancementsAFS specific functionality

AllocationRun

SalesInformation

SystemDelivery

MRPProcurement

Bill ofMaterialsCategories Customer

MasterMaterial

Grids


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You are a member of the implementation team responsible for setting up supply management at your company.

Main Business Scenario


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AFS Master Data: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


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AFS Master Data

Contents:Master and Application Grids + Relevance

Grid Control Data

Categories and Coverage Strategy +Relevance

Material Master

Seasonality in MM/PP

Bill of Material (BOM):BOM types in AFS


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Define material grids

Define relevance

Explain the relationship between the material grid and the material master

Explain how grid dimensions are determined and maintained

Create a multi-dimensional master grid

Describe a purchase grid / sales grid

Explain the function of Grid Control Data

Report on the grid history

After completing this unit, you will be able to:

AFS Master Data: Unit Objectives (1)


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Create a coverage strategy and maintain the relationship between stock and requirement categories

Set up categories in Customizing

Define Relevance




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Create and maintain a material master for AFS material

Include master grid in the material master

Set up fabric content codes

Explain the usage of seasonality in MM/PP

List the different BOM types

Create an AFS BOM

Apply quantity distribution profiles in a BOM




© SAP AG 2008

AFS Master Data: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


© SAP AG 2008

Our polo shirt and jeans are available in different sizes and colors

Polo shirt is available in four sizes - S, M, L, XL -and various colors (two dimensions)

Jeans are available in various sizes (inseam, waist measurements) and colors (three dimensions)

Stock may be segmented by different criteria. For example, we want to produce two categories, one for a manufacturer’s label (MLABEL), and one for a private label (PLABEL). However, we can also have a category (MLABEL) which could be second quality or rejects.

AFS Master Data: Business Scenario (1)


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A jacket will be manufactured in two colors, black and white. The fabric is light-weight, so the white jacket needs a lining. The jacket will be sold with the manufacturer’s brand label. A certain quantity will be sold to a retail store that requires a private label and special embroidery on the inside of the garment.

AFS Master Data: Business Scenario (2)


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Describe a purchase grid / sales grid


After completing this topic, you will be able to:

AFS Master and Application Grids: Topic Objectives


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AFS Structures

ERPStandard AFS

MasterGrid

Client Level

MaterialMaster Categories

Dimensions

Coverage Strategy 1 2 3

Quality

AFS Structures

Apparel and footwear products have a wide variety of characteristics, for example, different sizes, colors, and qualities. The AFS solution accommodates these features by incorporating material grids and coverage strategies within the ERP Standard material master.

Material grids are assigned to a material master at client level. Up to three characteristics may be defined in a material grid. For example, a pair of jeans could be shown with three dimensions: waist, inseam and color.

Categories can be used to differentiate product characteristics such as quality or other reasons for stock segmentation.

A coverage strategy with any number of categories can be assigned to a material master. The respective coverage strategies are defined plant independent on client level.


© SAP AG 2008

AFS Material Master Structure

Defines SKU

Client Level

SKU Level

MasterGrid

Valid dimensions

Dimensions Example:- Size- Color- Width

CategoriesExample:- Logical Segmentation- Quality- Country of Origin

Category Structure

CoverageStrategy

The decision of where to define material characteristics as grid dimensions or categories requires careful planning

AFS provides information in addition to the material master

The master grid allows the addition of multiple dimensions

It is not necessary to have a separate material master number for each individual characteristic

Coverage strategy allows you to include stock and requirement categories


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AFS Dimension Value Maintenance

Relevance is described on the next slide

Order will be usedin Grid Display

Dimensions are defined as characteristics, with characteristics group /AFS/SAP-D

Characteristic values are maintained in the same transaction (CT04).

Relevances are maintained there too.

It is mandatory to maintain the characteristic values to be used in a grid.

Grids may be maintained in Customizing (path see appendix) or from Logistics-->AFS Central Functions menu (paths see appendix).

National Retail Federation (NRF) size and color codes may be assigned to the dimension in customizing from the particular grid.


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AFS Dimension Relevance

With every transaction in AFS, the system refers to the material master record and checks the valid dimensions for this particular material.

Dimensions can be made relevant so that they appear in certain applications and part of the material master record based on their need in each area. Each dimension has its own set of relevancies.

Dimensions may be set as relevant or not relevant to selected applications in the system. Therefore, data at SKU level needs to be maintained only for those applications that need SKU level data.

Relevance-Assignment cannot be changed after the dimension is used

Activate a dimension and it will be relevant for data in its designated application.

Examples:

DIM - Weight and volume may be entered in the AFS Weights/Volumes tab of the material master record

PRI - Allows pricing at the dimension in the SD and MM applications with the proper condition record

SEA - Allows seasonal data to be maintained for dimension in the AFS Basic view


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AFS Material Grid Maintenance and Assignment

MaterialMaster

Grid Maintenance

- Material Number- Company Code- Validity Dates

DimensionLibrary

When creating material grids, enter the possible dimensions such as color, size, and dimension values (for example, black, blue; size 6, 8, 10, etc) Specify a valid-from-date for the particular grid. The material grid is then assigned to a material master that is valid for a particular company code and date.


© SAP AG 2008

AFS Material Grid Types: 1, 2 and 3 Dimensions

8 9 10 11 12

1 Dimension: Shoes

Size

6 8 10 12 14

2 Dimensions: Jacket

ColorSize

BLURED

28 30 32 34

3 Dimensions: Jeans

InseamWaist

28293031

BLUE BLKColor

A material grid is a front-end tool that allows you to enter dimension information for your materials.

Dimensions within the grids are used to represent attributes of products, for example, color, size, style.

Up to three dimensions are possible, for example, color, waist, inseam.

Dimensions can be up to eight characters long (for up to three dimensions combined).

Dimensions can be numeric or alphanumeric.


© SAP AG 2008

AFS Material Grid - Create Grid (1)

Chose neededGrid values

Flag valid valuecombinations

There are three types of material grids:

Master grid: Part of the material master

Purchase grid: An application grid that is a subset of a master grid

Sales grid: An application grid that is a subset of a master grid

The order of dimensions may be sorted for use in the applications.

Grid dimensions may be converted, for example, for use in a different country.

A fast entry option is available with the Create dimension values button.

Changes to the grid may be logged. It also needs to be activated in Customizing.

Sort relevant for Line Entry Views

Axis relevant for Grid Entry Views (Z-Axis Radio Button Dimension)


© SAP AG 2008

AFS Material Grid - Create Grid (2)

MASTER GRID

303132333435

2:Waist

1: Color

3:Inseam

BLK BLU WHT

31 32 33 34 35

3 DimensionalMaster Grid: Jeans

MASTER GRID

NMW

2:Size

1: Color

3:Width 6 6.5 7 7.5 8

3 DimensionalMaster Grid: Shoes

BLK BRN BRG TAN

Your products may have several attributes, so careful planning must go into the decision regarding how you will set up your dimensions in the master grid.

You need to decide how many dimensions to assign to your material grids.

You must also decide which dimensions you will represent in your product.

If you create three-dimensional grids, one of them must be represented by a button. The examples displayed above have “Color” represented as 3rd dimension.

You can create one grid and then use it for several materials.

You can create an initial grid and use it as a reference grid for creating new grids. The relationship between the grids is maintained.

Once a master grid has been saved it is possible to add more dimension values at any time. You can only delete matrix values if the grid has not been used in any material. It is not possible to delete dimension values once entered.

Grids no longer used in any material may be deleted.


© SAP AG 2008

AFS Material Grid - Grid Creation Features

Rotate(viewing featureonly)

X

X

XX

XX

X X

X

X

Activaterow/columnX X X

Deactivaterow/columnX X X

Activate all grid values

Deactivate all grid values

Copy row/columnX X

X X X

X

X X X

X X X

X X XX X X

The material grid features that are listed below facilitate the movement of data between and within grids.

Activate row/column: This feature allows you to activate values within an entire row or column.

Example: Your dimensions are size and color. You have added a blue item to a grid in all sizes. Your next item is red and you also want to add this to your matrix in all sizes. Use the <Values row/column> feature to easily activate all the sizes for this item.

Delete row/column: Delete values from a row or column.

Activate all grid values: Choose button or select from menu <Edit> Select - Select All - Activate selected values

Copy row/column: To copy the exact values to another row/column, choose buttons or select from menu <Edit> Select - Row/Column - Copy row/column - Paste row/column.

Rotate: This feature allows you to rotate the X and Y axis of your matrix. It is a viewing feature only.

Copy current screen to all screens: You have a three-dimensional grid and want to copy the validated matrix entries from one dimension - displayed as a button at the top - to the other dimensions.


© SAP AG 2008

AFS Material Grid - History

Grid historyactivated

New valuecombinations

When creating a grid, you can flag the grid history field. Change history for that grid will be recorded. To use history recording, you must also activate it in Customizing.

You can view history data using the grid report function. Each change record only reports the changes done to the grid. In the above example, grid history was activated after grid creation and some new size combinations have been allowed.


© SAP AG 2008

AFS Material Grid - Dimension Value Conversion (1)

AFS Material Master

AFS Customer Master

User Settings Coversion values in CT04

Definition in Customizing

Dimension value conversion is used to convert values as set up in the material master grid.

If you decide to use conversion for a dimension ID, each of its values have to be converted. That can be verified using a check report.

You will not see the result of the conversion in the master grid because these are system values. You can only see the conversion in the applications.

This conversion can be based on material, customer, vendor, or a user parameter. Examples:

A customer, vendor, or country may use a different name to describe your material. For instance, a size 6 in the United States could be converted to a size 36 for Germany.

The code that is used for a material in the master grid can have a longer descriptive name in the applications. For example, Color 100 in the master grid could translate into a color WHITE in the sales department’s applications.


© SAP AG 2008

AFS Material Grid - Dimension Value Conversion (2)

Chose Conv. Type

Sales Order Entry

A conversion button exists every application that deals with grid values.

You can switch between the system conversion type which represents the base values and the preferred or most suitable conversion type which are both represented in a lighter shade. All other conversion types that are applicable are represented in a darker shade.

To ensure that all values in the conversion tables are unique, it is no longer possible to mix entries of system and converted values.

Every grid value must be convertible for all dimensions. If not, the line for entry is blocked so you cannot enter any grid values.

You can turn conversion off per individual user. The user parameter to turn the conversion off for individual users is /AFS/NO_SIZE_CONV

Conversion can be activated per dimension.


© SAP AG 2008

XS S M LBLKWHTRED

XL XXLSize

Color

Sales or Purchase Grid

XS S M LBLKWHTRED

XL XXLSize

Color

Sales or Purchase Grid

AFS Application Grids

XS S M LBLKWHTRED

XL XXLSize

Color

Master Grid

Purchase and sales grids complement master grids in that a relationship among customers, materials, vendor and users can be established for explicit control via the condition technique.

Example: If a vendor can only provide a limited range of sizes or colors, a purchase grid can be created specifically for that vendor excluding those particular sizes or colors. In purchase order entry, these sizes/colors will not be displayed as valid for purchasing purposes.

However, it is important to keep the following constraints in mind:

Purchase and sales grids are always a subset of a master grid.

It is not possible to add or delete existing dimensions from a purchase / sales grid. If cells are deactivated in the related master grid, they are deactivated in the associated purchase/ sales grid.


© SAP AG 2008

XS S M LBLKWHTRED

XL XXLSize

Color

Sales Grid

AFS Application Grids - Conditions

Customer…...…. 3000Valid from … to ...

Material xyzSales Grid Shirt-L XXL

Condition Record

XS S M LBLKWHTRED

XL XXLSize

Color

Master Grid

A purchase grid is a subset of a master grid restricting sizes that can be procured by a particular vendor.

Purchase grids can be linked, via a condition technique, to a material, material/vendor, grid, and so on, to allow detailed control over dimensions in MM related areas, for example, with purchase orders.

The Grid determination protocol in the purchasing documents shows how the respective grid was determined.


© SAP AG 2008

AFS Grids - Reports

1

2

Several different materials share the same master grid.

In this example, master grid SHIRT was created. It will not lose the link. Purchase grid PURCHASE1-99 was created in reference to its master grid SHIRT.

Reports: (AFS Central Functions Grids Grid Reports)

Where- used-list for material grids

Associated material grids

Changes to material grids


© SAP AG 2008

Explain a category structure



At the conclusion of this topic, you will be able to:

AFS Categories and Coverage Strategy: Topic Objectives


© SAP AG 2008

Defines SKU

AFS Material Master Structure

Client Level

SKU Level

MasterGrid

Valid dimensions

Dimensions Example:- Size- Color- Width

CategoriesExample:- Logical Segmentation- Quality- Country of Origin

Category Structure

CoverageStrategy

The decision of where to define material characteristics as grid dimensions or categories requires careful planning

AFS provides information in addition to the material master

The master grid allows the addition of multiple dimensions

It is not necessary to have a separate material master number for each individual characteristic

Coverage strategy allows you to include stock and requirement categories


© SAP AG 2008

AFS Segmentation with Categories

QUALITY

COUNTRYOF ORIGIN

SEGMENT1

2

3

Quality 2Quality 1

Customer BCustomer A Customer C

Country YCountry X Country Z

Categories provide an additional layer of detail that allows you to further specify or characterize your product.

You can create categories to segregate customer segments, levels of quality, country of origin, and so on.

For example, one of your categories might be Quality which might be defined at two levels. Quality 1 would be your first grade goods, Quality 2 would be your second.

The structure of categories can be freely defined by customer. The definition of categories is optional.

Categories are linked to the material master via assignment of the coverage structure and strategy.

Multiple category field structures, dynamic category content and application relevance are available.


© SAP AG 2008

AFS Coverage Strategy - Basic Concept

Stock Category

Customer Segment A

Customer Segment A

CustomerSegment B

CustomerSegment C

CoverageStrategy

Blank Customer BCustomer A Customer C

RequirementCategory

A coverage strategy defines the method by which the requirement categories are matched against existing stock categories. It establishes the links between your stock and requirement categories.

If you refer to the slide above, a blank category is defined and is assigned a corresponding stock category of Customer Segment A. In other words, a sales order that does not reference any requirement category can only be satisfied by stock from Customer Segment A. However, you could define your blank category to include other stock segments.

A blank coverage strategy (No Coverage Strategy) is created automatically upon creation of a plant. It is used for materials that do not require a category and coverage strategy, but which are AFS materials.


© SAP AG 2008

AFS Category Types in SAP Documents

RequirementCategories

Stock Categories

ProductionOrder

PurchaseOrder

PlannedOrder

PlannedIndependentRequirements

SalesOrder

PurchaseRequisition

Requirement and stock categories are used in these documents respectively.


© SAP AG 2008

AFS Categories Allocation

Stock Category

CheckStock

Sales Order200 piecesCategoryMLABEL-1

MLABEL-1MLABEL-1

Requirement Level StockCategory Category

Requirement / Stock Allocation

MLABEL-1MLABEL-2

12

MLABEL-1

Requirement StockCategory Category

Requirement to Stock Conversion

MLABEL-1

CheckStock

Planned Order50 piecesCategory MLABEL-1

STOCK100 piecesCategoryMLABEL-1

STOCK50 piecesCategoryMLABEL-2

In the above example, a sales order is placed for 200 pieces of category MLABEL-1. Only 100 pieces of that category are left in stock. The Requirement/Stock Allocation table is checked to see whether alternative categories are allowed. Category MLABEL-2 is a possibility, but only 50 pieces are in stock. For the remaining 50 pieces a new planned order gets created for category MLABEL-1, as defined in the respective customizing table.


© SAP AG 2008

Categories

AFS Category Structure - Maintenance

Category Field Relevance Signs

Define Category Structure

Define Coverage Strategies

Category Fields – Defined as Characteristics

Defaults – Automatic Filling

As the category structure is an additional value to the material number, it is very difficult to change once the categories have been used. Careful thought must be put into the basic set-up of the category structure.

The system automatically defaults plant independent category structures.

To ease work with categories, multiple Category Structures are available. You can also assign a particular category field structure to a material type so that when you use a material type the system automatically uses the correct category field structure.

Category fields are defined as characteristics

Default values can be set up for the category fields (automatic filling).

Category fields automatically become the basis for requirement and stock categories.


© SAP AG 2008

AFS Category Structure - Relevances

Category fields have relevances to define which master data and applications should be controlled by categories. While definition of the category fields as characteristics, the relevances for requirement and stock categories can be defined.

For example, the category field “Market” does not have any influence on the EAN numbering, in this case the relevances can be set off. In the material master the EAN numbers do not have to be defined on the market level, the category market will not have any influence on EAN numbers.

Values can be dynamically filled via customizing or programming. In Customizing, the default categories for the applications can be defined. For more sophisticated category determination a user exit is available.

In addition, you can now ignore category fields in the complete category check. You no longer have to maintain all possible combinations of valid categories.

The corresponding relevances for defining the category check are FLC and VLC: FLC – check of category entries against the field values (e.g. you enter category MLABEL, the system checks if MLABEL is defined as valid value for the user defined category field LABEL) VLC – check of valid category combinations defined in the category strategy (e.g. you enter category MLABEL-1, the system checks if MLABEL-1 is a valid category combination defined as stock and/or requirement category in the coverage strategy; if you set off the VLC check for a category field this means that no combination check is done, this also means you no longer have to maintain all possible combinations of valid categories)


© SAP AG 2008

AFS Coverage Strategy - Maintenance (1)

Categories

Category Field Relevance Signs

Define Category Structure


Category Fields – Defined as Characteristics

Defaults – Automatic Filling

Category Combinations

Category maintenance is a multi-step procedure that requires input from all logistical areas, Sales and Distribution, Materials Management, and Production Planning.

Before Coverage Strategies can be set up you need to lock in the Coverage Structure which you want to use as basis for your strategy.

The valid category combinations need to be set up first.

If the customer does not expect to use defined rules of requirement and stock categories, leave them undefined.


© SAP AG 2008


ARUN/MRP: Requirement/Stock Allocation

Dependent Requirements / Stock transfer

Requirement to Stock Conversion

Planned Ind. Requirements Consumption

Categories


Category Combinations

The above slide shows how to set up the allocation of categories in the different applications.

If stock is available, you determine which requirement category should be matched with which stock category. If there is not enough stock available for one category, another category may be used if it has been defined.

If no stock is available at all, you must define which category should be procured or produced. This needs to be done for the primary material as well as the dependent requirements.

If independent requirements are used, you can define the consumption modes for sales order per category.

Wildcards can be used for the allocation definition: * indicates that the equal category field value should be allocated (e.g. ******* ******* - for the category field LABEL the system should look for the same label type when allocating stock, e.g. requirement category MLABEL should be allocated to stock category MLABEL, same for PLABEL) # indicates that any category field value can be allocated ( e.g. DE ## - for the category field COUNTRY the system can allocate any stock category to requirement category DE)


© SAP AG 2008

Reqmt. category

MLABEL-1MLABEL-1PLABEL-1

CStr

TPTPTP

Level

111

CoNoEC

112

MRP-Mod.Stock-Category

MLABEL-1MLABEL-2PLABEL-1


Instead of maintaining each combination explicitly the special characters * and # can be used:

Requirement * - Stock * means: both have same value

Requirement * - Stock # means: any value can be fulfilled with any value

MRP: Requirement/Stock Allocation

If a sales order specifies a requirement category of MLABEL-1 it would have to be satisfied by a stock category MLABEL-1 as a first priority. In this table, you can define whether a MLABEL-2 could satisfy that requirement as a second option in case MLABEL-1 is out of stock.

MRP modules are function modules for further prioritization of assigned stock.


© SAP AG 2008

AFS Coverage Strategy - Maintenance (4) Category-Popup

Requirement Category

Continue

Label MLABEL - Manufacturer‘s Label

Quality

Country

Restrict possible values

Valid categories CancelX

Quality

Short text of category field values1st quality2nd quality

Lower val.1 -2 -

Insert rule field

When checking the ‘restrict possible values’ box, only combinations of categories will be displayed that have previously been defined. If this box is not checked all values defined in the system will be displayed.

In the example above, only first and second quality are possible field values for the Manufacturer’s label MLABEL-.

To facilitate the entry of asterisks for exact matches you can choose the ‘Insert rule field’ button. It will enter the correct number of asterisks to the field lengths.


© SAP AG 2008

AFS Material Master - Category Assignment

AFS Basic Data

Master Grid

Grid determinationprocedure SD

Grid determinationprocedure MM

AFS Status

SD0001

MM0001

Cat. Structure 0001

MGF

Cov. Strategy TM01

Matl.Conv.ID

0001

Define the category structure for the material. If left blank the material is not used with categories.

This category structure field may not be changed later, so if the material will ever use categories, a structure must be added.

The plant independent coverage strategy has to be entered on the AFS basic view and will be used for all plants.

If you do not want to use categories for a material, you must use the "blank" coverage strategy.

However, if you are even remotely considering using categories later, you must leave the coverage strategy field "blank" as this is the only coverage strategy type that can be changed in the material master. All other coverage strategies can no longer be changed


© SAP AG 2008

Use of Dimensions and Categories in a Material

AFS Material

AFS Material

AFS Material

Standard Materialor AFS Material

YES NO

YES

NO

DIMENSIONS

CA

TEG

OR

IES

If the material contains dimensions, categories, or a combination of both, it is an AFS material.

If the material contains neither dimensions nor categories, it can be either a standard material or an AFS “NO GRID” material. If you want to set up such a an AFS “NO GRID” material, during material creation you have to set the flag “NO GRID” on the tab strip “AFS Basic Data”.


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Create and maintain a material master with AFS data

Include master grid in the material master

Set up fabric content codes



Material Master: Topic Objectives


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Converting AFS-Material Standard Material

In AFS, you can convert AFS-materials into standard materials and vice versa if no transaction data exists for the particular material master. For example, when converting a standard material into an AFS material, AFS views will be added to the material master. You then have to maintain the corresponding entries in these views in order to use this material in the AFS application or in sales order processing.

This conversion can either be done in simulation mode or as an update on the database.


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Create Material

Material Master Setup

Industry Sector

The industry sector determines to which industry the material applies.

The industry sector decides:

Which views are displayed and in which order

What industry-specific data is displayed


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Material Master Views

AFS MRP

QualityManagement

AFSBasic Data

Sales Org 1 & 2

Basic Data 1&2

Foreign Trade Export and Import

Storage 1 & 2

Purchasing &Text

MRP1 2 3 4

AFS Sales Data

WarehouseManagement1 & 2

Work Scheduling

Classifications

AFSValuation

AFS ViewsERP Standard Views

AFS WarehouseManagement 1

ForecastingSales Text

ProductionResource/Tools

Costing1 & 2

Plant Stock /Stor. Loc Stock

Sales Gen / Plant Data

AFS Foreign Trade

AFS QualityManagement

Accounting1 & 2

AFS Weight and Volume

Additional DataAFS enhanced: Additional EANs

The material master is the foundation for all logistics functions of the SAP ERP System.

One material master is created for each material in the ERP system.

Five views have been added for AFS materials.

Specific AFS views:

AFS Basic Data

AFS Sales Data

AFS MRP

AFS Warehouse Management 1

AFS Valuation

Some Standard ERP views have been changed:

Basic Data 2

Purchasing

Accounting 1

NOTE: By selecting just one of the AFS views, you automatically create an AFS material


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Material Master - AFS Basic Data View

Create Material AFS Basic Data

AFS Status: ! Once this status has been flagged, the master grid cannot be replaced !

Master Grid: The master grid is used to define dimensions for a material. A separate material master for each size is not necessary.

Grid Determination Procedure: Grid determination procedure defines how a grid in SD or MM is selected for the specific material (condition technique).

Define the category structure for the material. If left blank the material is not used with categories.

Assign coverage strategy on this view


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Material Master - AFS MRP View AFS MRP Status

Create Material AFS MRP Data

Coverage Strategy: Coverage strategies are used to match stock categories to requirement categories. On the AFS MRP view the coverage strategy is displayed

AFS Status MRP: Once this status has been flagged, it is released and then it is no longer possible to change the coverage strategy. The only exception to this is if the coverage strategy is "blank".


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Material Master - Additional Data EAN/UPC Product Code Numbers

Create Material Additional Data

You can include EAN (European Article Number) and UPC (Universal Product Code) product code numbers with your materials.

EAN/UPC numbers represent the barcode which is printed on each product.

All companies worldwide are allocated their own UPC number range.

EAN/UPC code is stored at schedule line level.

EAN/UPC may now be maintained in the Additional Data - view of the material master.

Functionality has been developed to reuse EAN/UPC numbers from archived materials.


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Data Modeling

Material Grid for Color and Size (two dimensional)

Coverage Strategy for Segmentation

Material Grid for Size (one dimensional)

Coverage Strategy for Segmentation

Material Grid for Size (one dimensional)

T-SHIRT

T-SHIRT BLUE

T-SHIRT BLUE MLABEL

When implementing AFS and setting up material master data, you may want to consider the options outlined above.

In the first example, the material contains a material grid with color and size information as well as a coverage strategy for segmenting the requirement and stock by the manufacturer’s or private label.

The next example illustrates that not only style information but also color may be set at header level. In this case, the one-dimensional grid attributes the size information, and the coverage strategy the segmentation.

Finally, in the third example, the color as well as the segmentation is kept at material level, the information below refers only to color and size.

Regard the dependencies in all modules like SD, MM and PP.


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Material Master - AFS Seasons

Spring/Summer Fall/Winter

The seasons of business (spring/summer, fall/winter, back-to-school, Christmas etc.) requires that certain products be available for their corresponding season, with special needs to “mark down” or “move” inventory that will soon be out of season.

Seasons are supported in AFS Sales and Distribution. Please refer to ICP310 for details.

Seasons are supported in AFS Materials Management and Production


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MASTER DATA

PROCESS

INFO SYSTEMS AND ANALYSIS

SALES SUPPLY CHAIN

Definition Season/...level for

Material

INVENTORY MANAGEMENT

Season/... Determination - Purchase requisition- Purchase order- Planned order- Production order

CUSTOMIZING

Season/... Determination in Sales Order

Assign Season/... in Material Master

Information Systems / BW / Controlling...

(unique) Season/... in batches

Flagged as „fix“: Material is mapped to exactly one Season/...

Season / Collection / Theme Definition

Material Master - AFS Seasonality in MM/PP

Season/collection/theme is an essential apparel and footwear industry feature that needs to be supported in the complete logistical cycle.

Scope of Functionality :

Master Data - Transaction AFS stock season for season determination

Material Master - Selection of a season level for MM/PP

Material Requirement Planning - Season determination during creation of purchase requisitions

Purchase Requisition (manual)

- Season determination or manual selection of season

- Display at item level

Purchase Order

- Take over season from requisition or manual selection of season

- Display at item level

Goods Receipt - If season is fixed in material master, take over the season into batches

Production

- Same process for Planned orders and Production orders as in Purchasing for purchase requisitions and purchase orders

The season determination is based on delivery date and/or order date. Manual selection of season also possible.


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List the different types of AFS BOMs

Define BOMs for an AFS product

Create an AFS BOM


Analyze different BOM reports


Bill of Materials: Topic Objectives


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Master Data: Bill of Materials & Routing

Material MasterRecord

Master Data

Bill of Materials Routing

Master data is comprised of material master records, bills of material and routings.


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AFS BOM Types

Standard BOM

Standard BOM: Prepack

Assortment

Fabric(AFS Material)

Buttons(Standard Material)

Zipper(AFS Material) Golf Pants

(AFS Material)Golf Shirt

(AFS Material)Golf Ball

(Standard Material)Shirt

(AFS Material)Cap

(Standard Material)Pants

(AFS Material)

In AFS there are two types of BOMs:

AFS Standard BOM

AFS Assortments

AFS Pre-packs are part of the standard BOM.

Pre-pack and assortment BOMs are used in SD only.


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Possibilities for BOM Structure

AFS

AFS

AFS

STD

STD = Standard ERP

STD

STD STD STD

AFS

An AFS Bill of Material may contain standard materials as components, but you cannot have an AFS component below a standard material.


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AFS Pre-pack

36BLUREDGRN

38 401 1 1

Grid B28

283032

29 30 31X X X X

X X X

Grid C

X X X X

X

BLU363840

RED GRNGrid A

X X X

X X X

X X XGolf Pack

Cap(Standard Material)

Pants(AFS Material)

Shirt(AFS Material)

MRP

MRP

A pre-pack is a set of predefined combinations of quantities and sizes in the BOM structure. The header material may contain a master grid that is different from the grids of the components. All items, independent of their levels in the BOM, are MRP relevant.

If a material is used as header material in a pre-pack, it needs to be defined as a regular AFS material.

For example, a golf pack will always consist of a shirt, pants and cap in the sizes relating to a size of the header material.


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AFS Assortment BOM

36BLUREDGRN

38 401 1 1

Grid A28

283032

29 30 31X X X X

X X X

Grid B

Set MaterialNo Master Grid

Golf Set

Golf Ball(Standard Material)

Pants(AFS Material)

Shirt(AFS Material)

MRP

NOMRP

An assortment is usually put together at the request of the customer whereby the quantity and sizes of the set may vary but not the items within the BOM structure. A set material BOM is the same concept as a phantom assembly in the standard system, in that the header material is merely a grouping of two or more finished products. The header material contains no master grid but may have categories. The components may have differing master grids. The sizes and quantities are allocated when the BOM is exploded after a sales order has been entered. The components are stockable items.

If a material is a header material used in a sales BOM for an assortment, you must activate the Set material field in the material master record. The material grids are defined in the material master of its components.

For example, a customer may want to have an assortment consisting of a golf shirt, golf pants, and golf balls. The header material has no grid. The golf shirt and pants have a grid but the golf balls are a standard material. You enter the requirements at SKU level when entering the sales order.


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AFS Standard BOM

MRP

Fabric(AFS Material)

Zipper(AFS Material)

Jacket(AFS Material)

BLK WHTGrid B

X X XRED

6BLKWHTRED

8 10 12 14Grid A

X X X X X

X X X X X

X X X X X

Button(Standard Material)

44BLUREDGRN

46 48 50X X X X

X X XX X X X

Grid CMRP

As AFS materials are defined with grids, these need to be maintained in the bill of material.

You can have different grids on header and component level.

If you have a grid on header and component level, the quantities must be maintained in the grid view (see manual cell assignment).

Quantities entered in the BOM on line item level should be realistic.

The line item value will be used to determine the consumption in MRP if planning is done beyond the SKU level horizon (see also Materials Requirements Planning).


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AFS BOM: Automatic Cell Assignment

28283032

29 30 31X X X X

X X X

Grid A

X X X X

X

Button(Standard Material)

Jeans(AFS Material)

Jeans Fabric(AFS Material)

Pocket Lining(AFS Material)

2828303233

29 30 31X X X X

X X X

Grid B

X X X X

XX X X X

32XX

XX

28283032

29 30 31X X X X

X X X

Grid C

X X X X

X

AFS materials with a grid may contain components with a grid of the same structure as the header material grid. The grid of the component must at least have the same valid sizes as the header material grid. Each cell in the header grid will be automatically assigned to the respective cell in the component’s grid.

The same applies to ERP Standard materials that contain no grid components.


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AFS BOM: Manual Cell Assignment

BLK WHTGrid B

X X XRED

BLKWHTRED

18X X X

X X X

X X X

6BLKWHTRED

8 10 12 14Grid A

X X X X X

X X X X X

X X X X X


Self(AFS Material)

Lining(Standard Material)


Grid C17 19

AFS materials with a grid may also contain components with a grid of a different structure. Every cell in the header material grid must be assigned manually to the corresponding cell in the component's grid.


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AFS BOM: Manual Cell Assignment using Fast Entry

SELFComponent

Quantity

6BLK 8BLK 10BLK 6WHT 8WHT 10WHT 6REDBLK

WHT

RED

1.85 1.85 1.85

1.85 1.85

Header Material Grid

1.85

1.85

Component

1,85 M

BOM Item

A fast entry mode facilitates the maintenance of quantities. You can group the dimensions together, for example all blacks, and enter quantities for them at one time.


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AFS Bill of Material (1)

6BLKWHT

8 10 12 14Grid A

X X X X X

17BLKWHT

18 191

6BLKWHT

8 10 12 141.48 1.50 1.52 1.54 1.56

1.48 1.50 1.52 1.54 1.56

AFS BOMs can bedimension-dependent

Deviation Quantities

6BLKWHT

8 10 12 14X X X X X

Zero Quantities

X X X X X


Self (AFS Material)

Lining(Standard Material)


Grid B Grid A

Manual Component Quantities

Grid C

The AFS BOM includes the grid information for all components. Components may be either AFS materials or standard materials. You can view the master grid of the header material when working with any component, even if the component is a non-AFS material.

Characteristics of AFS BOMs are:

Dimension dependent consumption. For example, the use of self for the jacket differs slightly for the various sizes.

Dimension dependent components. For example, lining is only needed for the white jacket.

Dimension dependent dimensions. For example, a black size 6 jacket will use a black 17 inch zipper. A black size 8 jacket may use the same zipper, but a size 10 may need an 18 inch zipper.

Furthermore AFS supports different reports for BOM explosion. 1. Display a BOM level by level (TC:CS11)

- This BOM reporting function shows which components make up the individual assemblies across the product structure. Components that are also assemblies are exploded further.

2. Multi-level BOM (TC: CS12) This reporting function determines all components (assemblies and individual parts) in a product and displays them in their structural context for production.

3. Summarized BOM (TC: CS13)

In certain application areas in a company, such as material requirements planning (MRP) and costing, you need a quick overview of all the parts required to make a product. This reporting function produces a complete count of the assemblies and individual components, which you can restrict using various criteria.


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BOM Maintenance using Distribution Profile2

Quantity Distribution Profiles

Distribution FactorProd.Grid Number Qty.distr.profileProd.Grid No. Comp Text

TP-SELF TP-FABRIC FABRIC 2% INCR. RULE

BLK6 BLK8 BLK10 WHT6 WHT8 WHT10 RED6BLKWHTRED

0.98 1.00 1.02

0.98 1.00 1.02

1.85

Material Grid No. CompMaterial Grid No. Header TP-SELF

TP-FABRIC

BLCK 8 Base grid value

BLK6 BLK8 BLK10 WHT6 WHT8 WHT10 RED6

BLKWHTRED

1.81 1.85 1.89

1.81 1.85 1.89

1.81

QualityComponent SELF

1.85FABRIC Distribution Profile

M

AFS facilitates the bill of material´s maintenance by a quantity distribution profile and the ability to display and enter appropriate factor values.

The quantity distribution profile can be used for grid value assignment of components to header materials in the BOM independent of the material.

In case the header material and component base are on the same grid, the factor is equal to one by applying the ‘write header SKUs’ functionality. Note, that if no factor is maintained, zero quantities are calculated for the respective SKUs. The factor can be changed manually and recalculated in percent for specific SKUs. Example: The consumption of fabric grows per size. Recalculation can be done linear or progressive emanated from a base grid value.

Note: The recalculation functionality can only be applied for AFS materials with a grid that contains components with a grid of the same structure as the header material grid.

In case the header material has a different structure than the component grid, the component’s SKUs and their factor have to be assigned manually to the respective header SKU.

Once a quantity distribution rule is entered into a BOM it can no longer be changed.

Mass Change functionality is available for BOMs with a quantity distribution rule.

AFS supports the check report for quantity distribution profiles. With this check function you can check if the quantity distribution profile is correct, see which quantity distribution profile is used in which BOM, check whether the BOM quantities match the quantities calculated by the quantity distribution profile and see if the grids in the BOM match the quantity distribution profile.


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AFS Bill of Material (2)

AFS BOMs can becategory-dependent


Manufacturer’sLabel

Category MLABEL

PrivateLabel

Category PLABEL

Components in a BOM may be dependent on the category of the header material. A jacket of category MLABEL will have a manufacturer’s label as one of it’s components, a jacket of category PLABEL will have a private label instead .


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Describe a purchase grid

You should now be able to:

AFS Master Data: Unit Summary (1)


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Set up categories in Customizing

Create and maintain a material master with AFS data




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Set up fabric content code in Customizing


List the different BOM types

Create an AFS BOM





Exercise

Unit: AFS Master Data Topic: Material and Application Grids

At the conclusion of this exercise, you will be able to:

• Explain how grid dimensions are determined and maintained by creating a two- and three-dimensional master grid

Global Fashion produces and procures a number of items for their line. Our shirts and jeans are available in different colors and sizes. We therefore need to create one master grid for our shirts (MGMII-##) and one for our jeans (MGMIII-##).

## = Group Number

1-1 Create Two Dimensions ID’s as characteristics.

ID Data Sort Sequence Relevance

LMS_xx XS 1 EAN/UPC

S 2 NRCSize code

M 3 Material Val.

L 4 Pricing

XL 5

CLR_xx BLK 1 EAN/UPC

BLU 2 NRF Color Code

GRN 3 Pricing

YLW 4 Material Valuation


1-2 Create two master grids.

1-2-1 Create a master grid for a shirt consisting of your created sizes and colors using MGMII-## as your material grid name. Choose the correct material grid type.

Data Mat.grid type M Mat.grid no MGMII-## Characteristic 1 LMS_## (XS, S, M, L, XL) Characteristic 2 CLR_##(Colors)

Flag: Grid Change History

1-2-2 Create a master grid for jeans with waist, inseam and color, using MGMIII-## as your product grid name.

Data Mat.grid no MGMIII-## Characteristic 1 CLR_## Characteristic 2 WST (Waist:26-38, Increment 2) Characteristic 3 INS(^Inseam:26-32, Increment1) Radio button set for color.


Exercise

Unit: AFS Master Data Topic: Categories and Coverage Strategy


• Maintain the relationship between requirement and stock categories by creating a coverage strategy

Global Fashion manufactures a ladies’ casual jacket, one for a manufacturer’s brand label (MLABEL-), and one for a private label (PLABEL-). We also need to classify stock according to its quality. We can have 1st quality and seconds. The categories we want to use are 1 and 2. Therefore, the name of each category will be a combination of the label and the quality, for example, MLABEL-1-. Seconds will only be of category MLABEL-2-. We need to define a coverage strategy (TMCOV-##) to establish the relationship between the requirement and stock categories.

## = Group Number

2-1 Create a category structure.

2-1-1 Create your structure TM## and use categories with related stock and requirement categories LAB (Label) and QUA (Quality) and lock the structure. Before the creation check the category relevancies for: Label Quality EAN FLC FLC MRP MRP PRC PRC PRI PRI RSC RSC VLC VLC

2-1-2 The coverage strategy defines how requirement categories will be covered by stock category. Create your coverage strategy TMCOV-## in Customizing and assign it to the category structure. The system automatically defines for each assignment of the coverage strategy a default rule, just in case you do not like to define your own rule. With this default rule the use of the coverage strategy is given. In our case we like to define our own rules, hence delete the already existing rules and define your own rules:


2-1-3 In customizing define at your coverage strategy the category combinations. Use all possible category values of Label and Quality.

2-1-4 Define Arun/MRP/Stock Allocation. To be able to use categories in MRP you have to maintain the relationship between the stock and requirement categories in Customizing. If a customer orders category MLABEL-, we will deliver MLABEL-1- as a first priority. If that category is out of stock, it would also be possible to deliver MLABEL-2-. However, the customer ordering the private label he will always have category PLABEL- delivered. Try to use wildcards to reduce data maintenance. Coverage strategy TMCOV-##

2-1-5 Categories for the dependent requirements will be adopted from the header material during the BOM explosion. Maintain the table to assign the allocation of secondary requirement categories to finished products. Use the following data:

Coverage Strategy

Stock Category

Coverage Strategy


TMCOV-## ********* TMCOV-## *********

2-1-6 If no stock or insufficient stock of the required category is at hand, the system creates planned orders or purchase requisitions depending on the internal or external procurement of the material. Maintain the sourcing proposal table to define the categories to be produced or procured for your material. Use the following data:

Coverage Strategy Requirement Category

Stock Category

TMCOV-## ********* *********

2-1-7 Planned Ind. Requirements Consumption. Maintain the category of the planned independent requirements that sales orders of a certain category are to consume. Use the following data:

Coverage Strategy

SO Requirement category

Level CoNoEC SO Requirement category

TMCOV-## ********* 1 1 #########


Exercise

Unit: AFS Master Data Topic: Material Master


• Create a material master for an AFS material

• Carry out a grid report

Your T-Shirt, available in different colors and sizes, is procured externally. Therefore we need to create a material master (material type HAWA) and link the master grid and coverage strategy to it. We will carry out a grid report to show the materials that this grid was assigned to.

3-1 Create a Material

3-1-1 Data Material TM-TSHIRT-## Industry sector F (Apparel and Footwear) Material type HAWA (Trading goods) Plant 0001 (copy from 0001) Sales organization 0001 (copy from 0001) Distribution channel 01 (copy from 01)

Use TM-SHIRT as your reference material.


Views

• Basic data 1/ 2

• AFS Basic data Master grid: MGMII-## as created in exercise 1-2-1 Category structure: TM## Coverage strategy: TMCOV-## AFS status: Yes

• Sales: Sales organization data 1/ 2

• Sales: general/plant

• AFS Sales data

• Purchasing

• MRP1-4

• AFS MRP

• AFS status MRP: Yes

• Storage 1

• Accounting 1

3-1-2 Carry out a grid report for your master grid MGMII-##. Show the materials that this grid was assigned to. Data Product grid MGMII-##


Exercise

Optional Unit: AFS Master Data Topic: Conversion of Dimensions


• Convert dimensions from a value generally used in the system to a name used in specific applications

TM-TSHIRT-## is manufactured in sizes XS, S, M, L, and XL for the international market.

For the German market, it will be marketed and labeled with the German ladies’ sizes 34, 38, 42, 46, and 50.

To be able to use the same material master and master grid, you can use grid conversion to translate the sizes into the corresponding German sizes.

4-1 Define the conversion for the characteristics (dimensions) of your material TM-TSHIRT-##. Maintain the settings for the grid conversion in Customizing (IMG).

4-1-1 Define the name of your conversion type. Data Conversion type GER-##

4-1-2 To make the conversion available to all materials, no additional entry is necessary but still check the set-up in the next table.

4-1-3 Assign your conversion type GER-## Data All ID-fields blank Consecutive number ## Conversion type GER-##

4-1-4 Define the conversion for the dimensions values. Data Conversion type GER-## Characteristic type LMS_## Characteristic values XS, S, M, L, XL Line conversion 34, 36, 38, 40, 42 Grid conversion 34, 36, 38, 40, 42


4-1-5 Change the set-up of your material grid to allow for grid value conversion. At the same time check the sizes of your master grid MGMII-## again.

4-1-6 Make sure that the sizes of your master grid MGMII-## in the material master of TM-TSHIRT-## changed from the international to German ladies´ sizes. You can check that in the AFS Basic Data view, Additional EANs, for example. Data

Plant 0001

Sales organization 0001

Distribution channel 01


Exercise

Unit: AFS Master Data Topic: Bill of Materials (BOM)


Create a BOM with deviation and zero quantities taking the following into consideration:

Fabric consumption for larger sizes

Lining component only to be used for white garment

Different labeling for wholesale and retail products apply

Global Fashion’s casual jacket (TM-JACKET-##) will be manufactured in two colors, black and white. As the fabric is lightweight, the white jacket needs a lining. The jacket will be sold with the manufacturer’s brand label. A certain quantity will be sold to a retail store that requires special embroidery with the shop’s name on the inside of the garment and its own private label. As a consequence, stock segmentation is done with categories. The requirement and stock categories for the manufacturer’s label are MLABEL-*- and PLABEL-1- for the private label.

5-1 Create a material master TM-JACKET-## for the jacket with reference to TP-JACKET. Use JACKET as the grid and CP01 as the coverage strategy. Create the following views and check the AFS-specific views for accuracy:

5-1-1

Material TM-JACKET-## Industry sector F (Apparel and Footwear) Material type FERT (Finished Products) Copy from Material TP-Jacket Plant 0001 (copy from 0001) Sales organization 0001 (copy from 0001) Distribution channel 01 (copy from 01)


Views: click through every view!

Basic data 1 / 2

AFS Basic data Master grid: JACKET Category structure: CP01 Coverage strategy: CP-CS1 AFS Status: Yes

Sales: Sales organization data 1

Sales: General/plant data

AFS sales data

Purchasing

MRP1-4

AFS MRP AFS Status MRP: Yes

Work scheduling

General Plant Data/Storage 1

Accounting 1

5-2 Create a BOM for your material TM-JACKET-## using the following data and components: Data Material TM-JACKET-## Plant 0001 BOM usage 1 (Production) Components

Item category L (for all components) TP-SELF## 1,80 m TP-LINING## 1,45 m TP-LABELM## 1 piece TP-LABELP## 1 piece TP-BUTTON## 3 pieces

5-2-1 The component TP-SELF## has the dimension color with the two value, white and black. Assign the white header material to the white self, and the black to the black. The fabric consumption for sizes 14 and 16 is considerably higher (1.95 m each) than the average consumption and should be taken into consideration. Create deviation quantities for both colors of TP-SELF## accordingly. Green arrow back and proceed to 1-7-2.

5-2-2 Component TP-LINING## will only be used for the white garment. Create the zero quantities for this component accordingly. Green arrow back and go on 1-7-3.

5-2-3 Component TP-LABELM## only applies to wholesale garments. Assign category MLABEL- to TP-LABELM##. Green arrow back and go on 1-7-4.


5-2-4 Component TP-LABELP## is the private label for the retailer. Assign category PLABEL- to TP-LABELP##. Save

5-2-5 Use the level-by-level BOM explosion to check your entries. Test it for several combinations of dimensions and categories. Material TM-JACKET-## BOM application PP01

5-3 Create two quantity distribution profiles PROFILE1-GROUP## and PROFILE2-

GROUP## 5-3-1 Include the grid with the same structure for header material and component into

the first profile (Jacket). For the second profile select the grids with different structures for header material (Jacket) and component (Fabric). Enter factor values by pressing the <Write Header SKU> button.

5-3-2 Create an alternative BOM for your TM-JACKET-##. Enter the different profiles into the BOM and check the calculation of component’s consumption quantities. Save.

5-3-3 Access the check report per quantity distribution profile and analyze the result.


Solution

Unit: AFS Master Data Topic: Material and Application Grids

1-1 Create two dimension Ids as characteristic:

Cross-Application Components -> Classification System -> Master Data -> Characteristics Create the two dimensions step by step –LMS_## afterwards CLR_##, the values for CLR_## mentioned in brackets

• Enter characteristic ID LMS_## (CLR_##)

• Press Enter

• PopUp screen appears: Do You Want to Create the Characteristic?

• Press YES

• Enter:

o Description: LMS_## Group ## (CLR_## Group ##)

o characteristic group: /AFS/SAP-D AFS characteristic for dimension

o data type: CHAR

o number of characteristic: 2 for LMS (3 for CLR)

• Press Tabstrib Values

• Enter values of characteristic and description

• Save characteristic

Set relevances:

• Press button Change -> basic screen of characteristic is displayed

• Press button Relevances -> flag relevancies

• Save characteristic

Create the second dimension as characteristic in the same way: CLR_##


1-2 Create two master grids.

Logistic -> AFS Central Functions -> Grids -> Material Grid -> Create 1-2-1 Enter data:

Data

Mat.grid type M Mat.grid no MGMII-## Characteristic 1 LMS_## (XS, S, M, L, XL) Characteristic 2 CLR_##(Colors)

Select : Create Dimension Values and select values

1-2-2 Create a master grid for jeans with waist, inseam and color, using MGMIII-## as your product grid name

Enter data:

Data

Mat.grid type M

Mat.grid no MGMIII-## Characteristic 1 CLR_## Characteristic 2 WST (Waist:26-28, Increment 2)

Characteristic 3 INS (Inseam: 26-32, Increment1)

Button: Create dimension value (enter Color), then select all values of WST and INS for all colors.


Solution

Unit: AFS Master Data Topic: Categories and Coverage Strategy

2-1 Create a category structure

2-1-1 Relevance check:

Cross-Application Components -> Classification System -> Master Data -> Characteristics Enter: LAB;

Press button Relevance -> check marked flags

Check QUA in the same way

Label Quality

EAN FLC FLC

MRP MRP

PRC PRC

PRI PRI

RSC RSC

VLC VLC

Note the relevancies of an AFS-characteristic can only be changed, as long as they are not used in any grid or category structure.

Create category structure

Tools → Customizing → IMG → Execute Project → SAP Reference IMG → Logistics General → AFS Categories → Define Category Structures

Press Button Change/Display, then select new entries and create your structure TM##. Maintain the next level Category fields by entering the structure fields LAB, QUA. Save the entries

Mark your structure TM## press Button Change/Display and press <Lock structure>.


2-1-2 Create your coverage strategy in Customizing.

IMG: Logistic General → AFS Categories → Define Coverage Strategies Select your category structure and double click Coverage Strategies → Press Button Change/Display, then select new entries. Assign the Coverage Strategy TMCOV-## to your Category Structure TM##. Green Arrow back and save.

2-1-3 Create all valid category combinations at your coverage strategy. Select your coverage strategy and double click Category Combinations.

With the F4 –help enter Labels and Quality values. All for each.

2-1-4 Define ARUN/MRP /Stock Allocation

To be able to use categories in MRP, you have to maintain the relationship between the stock and requirement categories in Customizing.

IMG: Logistic General → AFS Categories → Define Coverage Strategies → Structures→ Coverage strategies → Arun/MRP: Requirement/Stock Allocation. Remember to choose <Change View> in order to maintain new entries for the allocation.

Delete the existing default entries.

Choose <New entries>. Define following entries:

Coverage Strategy

Req Category

Level CoNo Stock Category

TMCOV-## MLABEL- 1 1 MLABEL-1-

TMCOV-## MLABEL- 1 2 MLABEL-2-

TMCOV-## PLABEL- 1 1 PLABEL-

2-1-5 Define Dependent Requirements/Stock Transfer

Maintain the table to assign the allocation of secondary requirement categories to finished products.

IMG: Logistic General → AFS Categories → Define Coverage Strategies → Structures→ Coverage strategies → Dependent Requirements/Stock transfer


Choose <New entries>.

Coverage Strategy

Stock category

Coverage Strategy

Requirement category

TMCOV-## ********* TMCOV-## *********


2-1-6 Define Requirement to Stock Conversion

Maintain the sourcing proposal table to define the categories to be produced or procured for your coverage strategy.

IMG: Logistic General → AFS Categories → Define Coverage Strategies → Structures→ Coverage strategies → Requirement to Stock Conversion



Coverage Strategy


Stock Category

TMCOV-## ********* *********

2-1-7 Planned Ind. Requirements Consumption.

Maintain the category of the planned independent requirements that sales orders of a certain category are to consume.

IMG:

Logistic General → AFS Categories → Define Coverage Strategies → Structures→ Coverage strategies → Planned Ind. Requirements Consumption Delete the existing default entries.


Coverage Strategy

SO Requirement category

Level CoNoEC SO Requirement category

TMCOV-## ********* 1 1 #########


Solution

Unit: AFS Master Data Topic: Material Master

3-1 Create a material master for the trading good TM-TSHIRT-## with reference to TM-TSHIRT. (AFS materials are created in the standard path).

Logistics→ Materials Management → Material Master → Material Create → (General) → Immediately

3-1-1 Create Material

Data:

Material TM-TSHIRT-##

Industry sector F (Apparel and Footwear)

Material type HAWA (Trading goods)

Grid MGMII-##

Category Structure TM##

Coverage Strategy TMCOV-##

Plant 0001

Storage Location 0001



3-1-2 Carry out a grid report for your master grid MGMII-##.

Logistics → Sales and Distribution → AFS Master data → Grid report

<Where-Used List for Material Grids>


Solution

Optional Unit: AFS Master Data Topic: Conversion of Dimensions

4-1 Define size conversion.

IMG: Logistics-General → AFS Material Grids → Conversion →Define Dimension Value Conversion → Define Conversion Types


4-1-1 Define the name of your conversion type.

4-1-2 To make the conversion available to all materials, no entry is necessary but check the set-up in the next table.

IMG: Logistics-General → AFS Material Grids → Conversion → Control Conversion Type Determination → Define conversion indicators

The relevant entry is blank for the ID type M = material, no conversion ID has been assigned. This entry is valid for all materials. No additional entry is required.

4-1-3 Assign your conversion type GER-##.

IMG:

Logistics-General → AFS Material Grids → Conversion → Control Conversion Type Determination → Assign Conversion Type Choose <New entries>.

Leave all ID-fields blank. Enter Consecutive Number and your Conversion Type only.


4-1-4 Define the conversion for the dimensions values.

Cross-Application Components -> Classification System -> Master Data -> Characteristics

• Enter your Characteristic ID and click the <change> button -> change screen

• Click the <conversion> button -> change view: define conversion is displayed

• Cick <New Entries>

• Enter the data

• Save

Conv.

type

DimVal Line entry Grid entry Conversion

Remark

GER-## XS 34 34 Group ##

GER-## S 36 36 Group ##

GER-## M 38 38 Group ##

GER-## L 40 40 Group ##

GER-## XL 42 42 Group ##

4-1-5 Change the set-up of your material grid to allow for grid value conversion. Set the Flag for Conversion at the 1st Dimension. At the same time check the sizes of your master grid MGMII-## again.

Logistics → Sales and Distribution → AFS Master data → Material grid → Change

4-1-6 Check the result of the conversion of dimension values.

Logistics → Sales and distribution → Master Data → Products→ Material → Trading goods → Display

AFS Basic Data view – tabstrip Additional EANs , Button< Base Values>.


Solution

Unit: AFS Master Data Topic: Bill of Materials (BOM)

5-1 Create the material master TM-JACKET-## for the jacket with reference to TP-JACKET. Use JACKET as the grid and TP-CS1 as the coverage strategy. Create the following views and check the AFS-specific views for accuracy:

Logistics→ Materials Management → Material Master → Material Create (General) → Immediately

Be aware to click through every view, you can use Return.

5-1-1 Data Material TM-JACKET-## Industry sector F (Apparel and Footwear) Material type FERT (Finished Products) Plant 0001 (copy from 0001) Sales organization 0001 (copy from 0001) Distribution channel 01 (copy from 01) Views Views: click through every view!

Basic data 1 / 2

AFS Basic data Master grid: JACKET Category structure: CP01 Coverage strategy: CP-CS1 AFS Status: Yes



AFS sales data

Purchasing

MRP1-4

AFS MRP AFS Status MRP: Yes

Work scheduling

General Plant Data/Storage 1

Accounting 1


5-2 Create a BOM for your material TM-JACKET-## using the following data and components:

Logistics →Production→ Master Data → Bills of Material→ Bill of Material → Material BOM→ Create

Data Material TM-JACKET-## Plant 0001 BOM usage 1 (Production)

Enter the Item category, Component, Quantity and Unit of measurement.

Item category for all components is L

Components

TP-SELF## 1,80 m TP-LINING## 1,45 m TP-LABELM## 1 piece TP-LABELP## 1 piece TP-BUTTON## 3 pieces

Save.

5-2-1 Logistics →Production→ Master Data → Bills of Material→ Bill of Material → Material BOM→ Change

Enter your Material TM-JACKET-##, mark item 0010 TP-SELF## and press Button [SKU Data].Enter the component quantity like this: for header material grid 6 WHT enter the 1,80m at WHT, for header material grid 6 BLK at BLK and so on. To process further click the arrow to the right to maintain all sizes accordingly. Sizes 14 and 16: enter 1,95m!

Press Button [Accept]

Green Arrow back and proceed to 1-7-2.

5-2-2 Mark item 0020 TP-LINING## and press [SKU Data], then press Button [Mode]: mark Quantity zero and enter a small ‘x’ for the BLK sizes.

5-2-3 Mark item 0030 TP-LABELM## and press Button [Categories]. Flag MLABEL include and press [Accept].

5-2-4 Mark item 0040 TP-LABELP## and press Button [Categories]. Flag PLABEL include and press [Accept].

5-2-5 BOM Explosion: Logistics →Production→ Master Data → Bills of Material→ Evaluations → BOM Explosion → Material BOM → BOM (Multi-Level)

Enter your material TM-JACKET-## and BOM application PP01(Production general), execute (F8). When pressing Button [DIM/CAT.] you can scroll the different sizes of your Jacket. Note that there is no Lining for the black Jackets!


5-3 Create two quantity distribution profiles PROFILE1-GROUP## and

PROFILE2- GROUP##.

5-3-1 Logistics →Production→ Master Data → Bills of Material→ AFS Bill of Material → Maintain Quantity Distribution Profile.

First Profile: No entry, but Execute.

[Change], [New Entry], enter the profile PROFILE1-GROUP##, material grid number (Jacket), product grid number component (Jacket).

Mark the line, [Factors], [Write Header SKUs]: its automatically 1.

Second Profile: No entry, but Execute.

[Change], [New Entry], enter the profile PROFILE2-GROUP##, material grid number (Jacket), product grid number component (Fabric).

Mark the line, [Factors], [New entry], [Quantity distribution], [Fast data entry]: [Select via dimension]: Color BLK, enter Factors: BLK1. Accordingly with Color WHT.

3x green arrow back and save.

5-3-2 Logistics →Production→ Master Data → Bills of Material→ Bill of Material → Material BOM→ Create

5-3-3 Logistics →Production→ Master Data → Bills of Material→ AFS Bill of Material → Check Quantity Distribution Profiles


© SAP AG 2008

Procurement: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Procurement

Contents:Purchasing Process with SKU Data

Master Data in Materials Management

Purchasing


© SAP AG 2008

Outline the process flow associated with external supply

Work with the AFS master data in materials management

Create & process purchasing documents for AFS materials


Procurement: Unit Objectives


© SAP AG 2008

Procurement: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


© SAP AG 2008

Requirement

RFQ Quotation

PurchaseOrder

Invoice

ShippingNotification Material

Document

PurchasePlanning

MRP

SourceDetermi-nation

VendorSelection

OrderProcessing

PurchaseFollow Up

GoodsReceipt

InvoiceVerifi-cation

Payment

Purchasing Process with SKU Data

Requisition

MaterialMaster

VendorMaster

InfoRecord Conditions

Multi-LevelContract

The typical procurement cycle for a service or material consists of the following phases:

Determination of Requirements

Source Determination

Vendor Selection and Comparison of Quotations

Purchase Order Processing

Purchase Order Follow-Up

Goods Receipt and Inventory Management

Invoice Verification

The purchasing documents are supported for AFS materials. You can maintain the grid values and categories in these documents.


© SAP AG 2008

Topic: Master Data in Materials Management (MM)

Topic Contents:Material Master

Vendor Master

Purchasing Info Record

Conditions

Purchase Grids and Grid Determination

Distribution Profiles


© SAP AG 2008

Name the AFS specific data in the material master, vendor master and purchasing information (info) record

Create Conditions at SKU level

Create a purchase grid

Describe the grid determination procedure

Set up grid determination in Customizing

Describe Distribution Profiles

After completing this topic, you will be able to:

Master Data Materials Management (MM): Topic Objectives


© SAP AG 2008

Material Master - AFS Views

AFS MRP

MaterialsPlanning (MRP)

Basic Data

AFSBasic Data

StockQuantities

Accounting

Storage

WarehouseManagement

AFS SalesData

Purchasing

Sales

WorkScheduling

QualityManagement

Forecasting

Classifications

AFSValuation

AFS ViewsERP Standard Views

MaterialMasterData

AFS WarehouseManagement

The material master contains views for each department.

These views contain data that is relevant to each department.


© SAP AG 2008

Material Master - AFS Enhancements

Material master dataMaterial Edit Goto Environment System Help

Master GridGrid Control DataIndicator: AFS StatusPresizing InformationSeasons Information

AFS Basic Data

Default purchase organization

Purchasing

Additional DataCoverage strategyIndicator: AFS Status MRPPlant Level PresizingSKU Level (e.g. Safety Stock)

AFS MRP

AFS Valuation

Valuation Data on SKU Level

The Purchasing view of the standard ERP material master has been enhanced with the data of the default purchase organization.


© SAP AG 2008

Vendor Master

VendorMaster

General DataPurchasing Data(with AFS Additional Data)

Accounting Data

The vendor master includes all 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 (with AFS additional data)

Vendor master records must be created before procurement can begin.

For AFS vendors the Schema Group Vendor used is J1 (used to determine the AFS - specific price calculation scheme J_ 3A00)


© SAP AG 2008

Vendor Master - AFS Additional Data

Vendor ID KN

Purchasing 0001Organization

Vendor SC_VENDOR1 Shoe Company 1

Display Vendor: Purchasing

The vendor ID is one of the keys to defining a conversion type for the master grid conversion (for details see chapter “AFS Master Data“).


© SAP AG 2008

Purchasing Info Record

PurchasingInfo

Record

Vendor Data Delivery Data

Pricing

Purchasing information records describe the supply relationship of a material and a vendor.

The purchasing info record is a part of the master data for purchasing. It holds information for a specific material and vendor combination.

Information records allow the definition and maintenance of:

Current and future prices and pricing conditions (for example, freight, discounts)

Delivery data (for example, delivery lead time, tolerance limits)

Information from the last purchase order and quotation

Vendor data

Data maintained in the information records appears as default values during the creation of purchasing documents (for example, purchase orders, contracts).

The information record can be updated automatically from a purchase order, request for quotation or quote, provided that the information update indicator in these documents is activated.

Information records can be displayed individually, by vendor, by material, or by material group.


© SAP AG 2008

Purchasing Info Record - AFS Additional Data (1)

44 46 48 50BLUREDGRN

SizeColor

Minimum Quantity

Maximum Quantity

Under-deliveryTolerance

Over-delivery Tolerance

x

UCC/EAN/UPC Number

Rounding Factor

Info RecordNote

Purchase Order Text

Grid ValueCategoryGrid Value & Category

The purchasing info record has been enhanced with two additional AFS screens.

In the Overview AFS Additional Data screen, control data and texts can be maintained with the following levels:

Category and grid value dependent

Grid value dependent

Category dependent


© SAP AG 2008

Purchasing Info Record - AFS Additional Data (2)

Route Determination:

Transport Zone

Transport Group

Transport Condition

Planned Delivery Lead Times:

Replenishment Lead Time

Manufacturing Lead Time

Packing Lead Time

Transportation Lead Time

Capacity Offset Lead Time

Subcontracting:

Subcontracting Indicator

Round Convert:

round not

: round up

round down

round nearest

In the AFS Additional Data screen, the following data can be maintained on material level:

Planned delivery times which are used to determine the delivery date in the purchase order.

The rounding method which is used to round SKU-quantities in purchasing documents.

You can indicate that the material is normally subcontracted by the vendor. A warning will be displayed when you purchase this article using an item category other then L (subcontracting).

The standard SD Route Determination has been included in the AFS procurement process.


© SAP AG 2008

Purchasing Info Record - AFS Additional Data (3) Planned Delivery Lead Times

DeliveryDate

Ex FactoryDate

FinalDestinationDate

FinalDeterminationDate

PurchaseOrderCreationDate

Replenishment Lead Timefor Raw Material

Prepping/PackingLead Time

TransportationLead Time

ManufacturingLead Time

Planned Replenishment Lead Time

Time

The replenishment lead times specify the lead time of the vendor to procure the raw material.

The manufacturing lead time specifies the production time of the vendor.

The packing lead time specifies the lead time needed by the vendor to prepare the material for trans-shipment.

The transportation lead time specifies the lead time to transport the material from your vendor to your plant.


© SAP AG 2008

Possible Levels:Grid ValueGrid Value and CategoryPrice GroupsCategory

ConditionTechnique

PRICING

Pricing - AFS levels

With the condition technique, you can create pricing conditions at SKU level.

The conditions at SKU level are not maintained in the info record itself, but are created using Master data -> Conditions -> Other.

You can maintain pricing conditions at different levels. For example:

Material info record with grid value & category (plant-specific)

Material info record with grid value & category

Material info record with grid value

Material info record with price group

Material info record with category (plant-specific)

Material info record with category


© SAP AG 2008

Material

PoloShirt

Gr.V.

-

Price

5

Material

PoloShirt

Price

4455

Material

PoloShirt

Gr.V.

SML

XL

Price

4566.50

Price at Grid Value Level Price at Price Group

Price Group 1

Price Group 2

Price at Material Level

Valid for all Grid Values

Condition Type J3AP (Regular Procurement Price)

Pricing - AFS Condition Types (1)

Gr.V.

SML

XL

There are several types of prices in AFS that can also operate at the grid value and category level.

The regular procurement price (J3AP) is the base price of a product. It can be maintained for different key combinations at SKU level.


© SAP AG 2008

CONDITIONS

CodeJ3AXJ3APJ3AD

DescriptionGross Price + DIMGross Price + DIMDiscount on Gross

Amount$10.00$10.003%

PurchaseOrder

Info Records

Quotation

OutlineAgreement

Pricing - AFS Condition Types (2)

AFS condition types:

J3AP: Gross price at SKU level

J3AX: Gross price at SKU level (for manual creation of pricing in quotations, purchase orders and contracts)

J3AD: Discount on gross price at SKU level


© SAP AG 2008

Purchase Grids

Vendor ………... 3000Valid from … to ...

Material Purchase GridE542 Shirt-XL XXL

Condition Record

XS S M LBLKBLURED

XL XXLSize

Color

Master Grid

XS S M LBLKBLURED

XL XXLSize

Color

Purchase Grid

A purchase grid is a subset of a master grid restricting dimensions in the procurement process. For example, not all dimensions of a master grid can be produced by a certain vendor.

Purchase grids can be linked, via a condition technique, to a material, material/vendor master grid, and so on. This enables greater control over dimensions in Materials Management (MM) related areas, for example, within purchase orders.


© SAP AG 2008

Purchase Grids - Grid Cell Control Data

44 46 48 50BLUREDGRN

SizeColor

UCC/EAN/UPC Number

Rounding Factor

x

Price group

You can also maintain an additional number, a rounding factor and a price group for the grid values.

The additional material number is used as an additional number to identify the material. You can also maintain this additional number in the info record. To use the additional number in the info record, you have to set the Use Add. No. indicator, to use the additional number of the grid cell control data, be sure that the indicator in the info record is not set. The additional number is automatically copied to the purchase order.

The rounding factor is used for rounding of the SKU quantities in the purchasing documents. The quantity will be rounded to a multiple of the rounding factor. You can also maintain the rounding factor in the info record. To use the rounding factor of the info record, the Use ROF indicator in the info record has to be set. To use the rounding factor of the grid cell control data, this indicator has to be removed.

You can use price groups to assign specific grid values to a group with the same price.


© SAP AG 2008

Purchase Grid - Grid Levels

Purchase grids can be determined, for example, at the following levels (default key combinations):

Key Combination Condition Table

Purchasing organization - vendor - material: KOTJ102

Plant - material: KOTJ121

Purchasing organization - master grid: KOTJ111Purchasing organization - material: KOTJ101

Material: KOTJ2

You can set up your own key combinations (levels) by defining your own condition tables.


© SAP AG 2008

L XL XXLRED

WHT

Grid Determination Procedure: MM0001

Condition Type: PGRD

Condition Type: PGRD

Access Sequence: PGRD

Access Sequence: PGRD

1. Table 1012. Table 1023. Table 111

Table 102:

Purchase Organization-Vendor-Material

Field Catalog:

Purchase Organization: EKORGVendor: LIFNRMaterial: MATNR

Purchase Order:

Vendor: A1000Purchase Organization: 1000Material: 5520

Purchase Grid:

+ Grid CellControl Data

12

3

4

5

Purchase Grids - Determination (1)

For menu paths, see Appendix.

When a purchase order is created, the system looks for relevant condition types (PGRD) in the grid determination procedure (MM0001).

Each condition type (PGRD) is linked to an access sequence (PGRD). You can maintain a validity period for this link.

The access sequence (PGRD) determines in which condition tables, and which order the system searches for valid condition records. It is possible to use different access sequences for purchase orders and purchase requisitions.

For each condition table, the system searches for a valid condition record using the key information entered in the purchase order.

The first found valid entry in a condition table contains the purchase grid that will be used for the purchase order.


© SAP AG 2008

Purchase Grid - Determination (2)

Outline agreement corr.

Use MastergridContract end dateContract date indicatorPR grid determination act

PR delivery date indicator

PO delivery date indicator

RFQ delivery date

Purchasing Requisition

Purchasing order

RFQ/quotation

Contracts1

2

2

2

3

4

Customizing possibilities:

1. Purchase grid determination can be switched off for purchase requisitions.

2. For a purchase requisition, purchase order and request for quotation,you can choose to use

- either the valid grid on the creation date,

- or the valid grid on the delivery date.

3. When creating a contract, the system will use either the purchase grid or the master grid. When using the purchase grid, the system checks whether the agreement date or the end date of the contract lies within the validity period of the purchase grid.

4. If this indicator is set, the delivered quantity will be consumed as the target quantity in the contract instead of the ordered quantity. To use the outline agreement correction functionality you have to run an additional report (J_3ACROR).

For menu paths, see:

IMG: Materials Management -> Purchasing -> AFS Grid Determination (Purchasing Grids)


© SAP AG 2008

Distribution Profile (1)

Mapping


Sales Order

RFQ

Multi-Level Contract

Purchase Requisition

Purchase Order

Planned Independent Requirements

Transfer to Demand ManagementExternal

System

SIS

Manual Entry of Ratios

SOP/FlexiblePlanning

Distribution profile versions can be maintained to predefine a spread profile for the dimensions/categories of an AFS material.

The distribution profile can be maintained as material-based or material-independent. The latter has to be assigned to the material master (AFS basic data view).

The distribution profile can be used in following purchasing documents:

purchase requisitions

request for quotations

purchase orders

contracts.


© SAP AG 2008

Create Purchase Order

Header

Item overview

Delivery scheduleItem details

Distribution Profile (2)

Distribution: Examples for Grid ValuesTotal Quantity: 1800 pieces

S

1

16.7%

300

M

2

33.3%

600

L

2

33.3%

600

XL

1

16.7%

300

Presizing

If the material has been given a distribution profile at the grid value/category level, the system allocates this accordingly and spreads the entered weight over the grid values/categories in purchase requisitions, purchase orders etc.

Distribution profiles can be determined on the following levels:

Plant

Category

Grid value

Period

You can generate a distribution profile with information stored in the SIS (Information Structure S430)


© SAP AG 2008


Master Data Materials Management (MM): Topic Summary

Name the AFS specific data in the material master, vendor master and purchasing information (info) record

Create Conditions at SKU level

Create a purchase grid

Describe the grid determination procedure

Set up grid determination in Customizing

Describe Distribution Profiles


© SAP AG 2008

Topic: Purchasing

Topic Contents:Multi-Level Contract


Purchase Order

Inbound Delivery


© SAP AG 2008

Create multilevel contracts

Create a purchase requisition for AFS materials

Create a purchase order for AFS materials

Describe AFS Route Determination

Post an inbound delivery


Purchasing: Topic Objectives


© SAP AG 2008

PurchaseOrder

Requisition

OrderProcessing

Purchasing Process


Document

PurchaseFollow Up

GoodsReceipt

MRP


Grid Determination

Rounding

Presizing

Multi-LevelContract

Reason Code

InvoiceInvoiceVerifi-cation

MaterialMaster

VendorMaster

InfoRecord

Conditions

The SAP ERP system has been enhanced with AFS functionalities for the purchasing process:

Reason code

Grid determination

Rounding

Presizing


© SAP AG 2008

Multi-Level Contract

OrderProcessing

ShippingNotification

PurchaseFollow Up

MaterialDocument

GoodsReceipt

PurchaseRequisition

Vendor Selection

MaterialMaster

VendorMaster

InfoRecord

Conditions

PurchaseOrder

Multi-LevelContract


© SAP AG 2008

VendorProduction Planning

Procurement ofRaw Material Rough

PlanningDetailedPlanning Manufacturing

Target Quantity: 100000 piecesMaterial Group: T-ShirtsMaterial AMaterial BValidity Period: July 1st - December 1st

Level 1Material AQuantity: 7000 pieces July 1st - September 1st

Material A-Grid Value:38LQuantity: 1500 pieces July 1st - August 1st

Level 2

Level 3

Creation DateDecember January April July October

Validity Period of Level 2Contract

Validity Period of Level 1Contract

Call OffValidityPeriod of Level 3Contract

Multi-Level Contracts - Logistic Background

In AFS, you can maintain multi-level contracts at SKU level.

These contracts are dependent on each other.

You can use the multi-level contracts for a sophisticated planning organization between your company and your vendor. Note: Create contracts for different levels in different planning periods.

For the first level contract enter the agreement type AFSK.

For the other levels use agreement type MK (quantity contract) or WK (value contract).

Call offs are always performed on the contract of the lowest level.


© SAP AG 2008

OrderProcessing

Purchase Order - Overview

Grid Determination

Rounding

Presizing

Route Determination

Prices at SKU Level

Tolerances at SKU

MaterialMaster

VendorMaster

InfoRecord

Conditions

PurchaseRequisition

Vendor Selection PurchaseOrder


PurchaseFollow Up

MaterialDocument

GoodsReceipt

Purchase orders can be used in various procurement processes.

Purchase orders identify items such as:

Vendor

Material and quantity ordered

Price and terms

Delivery date and location

Purchase orders can be created without reference to a purchase requisition.

Purchase orders have been enhanced to support the grid and category values on SKU level.

SKU quantities can either be entered manually or an automatic distribution profile can be applied.


© SAP AG 2008

Purchasing Documents - Item details


Header

Item overview


New Delivery Date

Stock Categories

Grid Entry

Presizing

Rounding

Add Text

Detailedinformation to every SKU

Detail: Using the <Detail> button the item details are displayed. Tolerance data and the ex factory date are displayed for each SKU. The UCC, EAN/UPC code, reference document data, the received quantity, issued quantity and delivered quantity are also displayed.

Grid Entry: Input of grid values via grid entry screen

Category: Using the <Category> button, you can change the stock category of all the SKUs of an item.

New Delivery Date: Several schedule lines can be selected for the assignment of a new delivery date.

Rounding: The SKU can be rounded to a multiple of the rounding value using the <Rounding> button. For the purchase order the rounding value can be set in the grid cell control data or in the info record.

Presizing: To calculate the quantities over a certain distribution profile you can use the <Presizing> button, provided that you have created the profile.

Text: Using the <Text> button you can maintain additional text for each SKU.


© SAP AG 2008

Purchasing Documents - Screen Layout


Header

Item overview


SKU Data

In ERP purchasing documents, it is possible to maintain data at SKU level.

Item Details – Delivery Schedule: In the item details, quantities on SKU level can directly be entered. Using the SKU data button, the grid entry screen is displayed. In grid entry there are features which support the maintenance of the grid value quantities. You can enter the quantities in the grid entry display mode. For maintaining grid values you can copy and delete a row or column. You can rotate the grid using the rotate function. You can change the SKU category by using the <Category> button or maintaining it in the item detail overview.

By double clicking on the quantity of the item in the item overview, the schedule line data is displayed in the item details.

The determined grid can be displayed by selecting an item and pressing the button Grid Determination Log.


© SAP AG 2008

Purchase Order - Rounding

L L

S SS S

S

M

L

8

6

4

# in box ROF

8

6

4


Header

Item overview

Delivery scheduleItem detailsRound values

In AFS, it is possible to round SKUs to certain values. This means that the rounding factor for the SKU has to be defined. In the grid cell control data or in the info record you can define a multiple of the rounding value. For example, when you set the rounding factor to 5, the quantities will be rounded to 5, 10, 15, 20, … and so on. To use the rounding factor in the info record you also have to set the 'use ROF' flag in the info record.

The rounding can be used in the PR, RFQ, PO and contract. You can activate the rounding manually by clicking the <Rounding> button in the purchasing documents. The rounding method, set in Customizing, will automatically be defaulted. The rounding methods are rounding to the nearest multiple of the rounding factor, round up or down or no quantity changes will be made. The rounding method can be adjusted manually. By converting a purchase requisition in a purchase order the rounding method set in the info record will be used.

The logic for rounding to the nearest multiple of the rounding factor, is to calculate the difference in case of rounding up, to calculate the difference in case of rounding down, and round to the value with the smallest difference. When both differences are equal the system will round down.

Using the <Round values> button in the SKU data screen in the purchase document a rounding dialog screen is displayed. In this screen you can maintain the rounding method, round the values using the <Simulate> button and see the result at SKU level using the <Protocol> button.


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Purchase Order - Rounding SKU or Item Level

Rounding Factor

Use ROF

SKU-level

Inforecord

Purchase Grid(Grid cell control MM)

Vendor Size Rounding Factor

10

10

Inforecord

Rounding Profile

Unit of MeasureGroup

Item-level

CustomizingRounding Profile PAL Plant 100001

Threshhold Value

Round Value10

1

PAL1

EXT5OR

The rounding factor is used for rounding SKU quantities in purchasing documents.

The rounding factor can be set in both the purchase grid and the info record. If the flag Use ROF is set, the system uses the factor of the info record.

It is possible to set a default rounding method (round not, up, down, nearest) in Customizing.

Alternatively, you can use the standard ERP System rounding procedure on item level (rounding profile and unit of measure group).



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Purchase Order - Route Determination in AFS (1)

Vendor

Plant 0001

Plant 0002

Delivery Time: 3 Days

Pack for Transport by Truck

Delivery Time: 18 Days

Pack for Transport by Ship


HeaderItem overview


Route determ.

The transportation lead time for a route from your vendor to your plant can be determined in route determination. This function uses parts of ERP Standard route determination in sales and distribution, which determines the route from your plant to your customer. For the determination of the route, the zones of your vendor and your plant, shipping condition and transport group are taken into account.

The transportation lead time for a route is determined and can be recalculated according to different shipping conditions. For example, when the goods are normally transported, it is done by truck, but when the goods are urgently needed, the goods can be transported by plane. For these shipping conditions another route and transportation time is determined.

The (re)determination of the route can de done by forward and backward calculation. By forward calculation the delivery date is recalculated. By backward calculation the delivery date is fixed and the production date, packing date and ex factory date are recalculated.


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Vendor XYZ

Plant: ABC

Country of Origin: US

Country of Destination: DETransportationGoods Receipt Zone: 0002

Route: 007Transatlantic ShipmentTransit Time: 5 DaysTransportation Time: 20 Days

InforecordVendor: XYZPlant: ABCMaterial: Ladies Shoes ‚Cynthia‘Transport Zone: 001 East CoastTransport Group:001 on palletsTransport Cond: 001 standard

You can carry out AFS MM route determination for a purchase order. It determines the itinerary and mode of transport from the country of origin to the destination country.

This means that planned delivery lead time is dependent upon the determined route, and can lead to a new delivery date being calculated.

Steps in Customizing:

1.Define transport zones for each country that is involved (SD Standard Customizing).

2.Define transportation groups, for example on pallets (SD Standard Customizing).

3.Define shipping conditions, for example standard (SD Standard Customizing).

4.Define transportation goods receipt zone (AFS Customizing).

5.Maintain transportation route with transit time and transportation lead time (AFS Customizing).

6. Maintain transportation from your vendor‘s transportation zone to your plant‘s goods receipt zone. The route may depend upon the transportation group and the shipping conditions (AFS Customizing).

7.Maintain transportation zone, transportation group and shipping conditions in your purchasing info records (AFS Additional Data).



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AFS Maintain transportationgoods receipt zone

Define and assigntransportation zones(SD Customizing)

AFS Maintain transportationroute

AFS Maintain transportationfrom country to country

Maintain relevant data inthe purchasing info record

Route determination inpurchase order


2

3

4

1

AFS MM route determination can be carried out automatically by the system for a purchase order. It determines the itinerary and mode of transport from the country of origin to the destination country.

Step 1: AFS Maintain Transportation Goods Receipt Zone Assign a plant to the destination country and define the transport zone to which the goods are delivered (goods receipt zone).

Step 2: AFS Maintain Transportation Route Define the transit time and the transportation lead time (in days) for each transportation route. The transit time from goods issue to ship-to party in days is the number of days required to deliver an item from one country to another, using a particular route. The transportation lead time is the number of days required to arrange transportation for an item that one country plans to deliver using a particular route.

Step 3: AFS Maintain Transportation from Country to Country AFS MM route determination from country to country is carried out according to the same criteria as route determination in sales documents. You should check which actual route should be proposed in each delivery. Enter the transportation route from the country of origin to the destination country for the combinations of the departure zone, the transport zone to which the goods are delivered, the shipping condition for the delivery of goods, and the transportation route.



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Purchase Order - Message

Item. Material

Quantity Unit Price per Unit

Total Quantity Split:

6 BLUE6 RED7 RED8 RED

25252525

PAAPAAPAAPAA

01.07.200003.07.200005.07.200007.07.2000

Net Value

00010100

SHOE-01PAA

LADIES SHOES „ANITA“130.00 13,000.00

Grid Value Qty Unit Delivery Date

Description

Purchase Order

A new form for AFS purchase orders has been created: J_3A_MEDRUCK.


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Purchase Order Split

With AFS 5.0 release the new transaction ‘Split & Change PO’ /AFS/SPLITPO is delivered. It can be enhanced with BAdI methods. The transaction allows you to

Implement own authority checks

Split PO based on header data, e.g. vendor, purchasing organization

Split PO based on item level data, e.g. plant, item category

Change additional customer fields on item/ schedule line level

Benefits

Fast and efficient change of purchase orders

Optimization of purchase order handling

Increase ease of use


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Requisition

Inbound Delivery - Overview


OrderProcessing

PurchaseFollow Up


PurchaseOrder

MaterialDocument

GoodsReceipt

Inbound deliveries are order fulfillment confirmations for purchase orders.

Inbound deliveries allow the customer to plan ahead more precisely, since during the period between purchase order date and the desired delivery date, the vendor provides increasingly reliable data on the anticipated delivery.

If you have an EDI arrangement with your vendor, incoming shipping notifications can be received via EDI and entered as inbound deliveries in your system automatically.


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Stock Type Gr.V. Quantity Availability Date

L 38L 40 May 1L 38L 60 May 3

Purchase Department

MailEDI

Goods Receipt

Vendor

PurchaseOrder

Material AGrid Value: 38LQuantity: 100 piecesDelivery Date:May 1st

PurchaseOrder

Material AGrid Value: 38LQuantity: 100 piecesConfContrK: 0001

MRP

Inbound Delivery

InboundDeliveriesMay 1st:40 piecesMay 3rd:60 pieces

Confirmation Overview

38L 40 pieces May 1st38L 60 pieces May 3rd

Shipping Notification

May 1st:40 piecesMay 3rd:60 pieces

Inbound deliveries have been extended to support grid and category values on SKU level.

If you generate an inbound delivery with its own inbound delivery document, the data is automatically updated in the purchase order.


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Report for PO Confirmation

With AFS 5.0 release the new report ‘for Purchase Order Confirmation’ is available (/AFS/ME2A).


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Purchase Order - User Exit Examples

EXIT_SAPMJ3AL_001

EXIT_SAPLJAP_004

………..

/AFS/MM1

/AFS/MMC

………..

Function Module Enhancement Description

Presizing

Category Determination

………..

User exit Presizing allows you to change the spread quantities in retrospect. For example, if the presizing functionality increases the quantity you originally wanted to order, use the user exit to change the spread back to the original order quantity.

User exit Category Determination allows you to fill the category field when creating or changing a purchase order. This can simplify purchase order handling.

With the transaction SMOD you can check the enhancements


© SAP AG 2008

Outline the process flow associated with external supply

Work with the AFS master data in materials management

Create & process purchasing documents for AFS materials


Procurement: Unit Summary


Exercise

Unit: AFS Procurement Topic: Material Master, Vendor Master, Purchasing

Info Record and Conditions


• Set up the AFS data in the material master

• Set up the AFS data in the vendor master

• Set up the AFS data in the info record

• Maintain prices at SKU level

Your company GLOBAL FASHION can order material TM-SHIRT## from the two vendors TM-SUPPA## and TM-SUPPB##. The purchasing info records contain information on your material and your vendors. The vendors have different prices for the material at dimension level.

1-1 Maintain the AFS data in the material master for your material TM-SHIRT## in plant 0001:

1-1-1 In the AFS basic data view, the master grid is defined. Which colors are valid for your material TM-SHIRT## ? ____________________

1-1-2 In the AFS basic data view, the coverage strategy is displayed. Which categories are valid for your material TM-SHIRT## ? _________________

1-1-3 In the Purchasing view, set the purchase organization to 0001.

1-2 Maintain the AFS data in the vendor master of your vendors TM-SUPPA## and TM-SUPPB## for purchase organization 0001.

1-2-1 In the Purchasing data view, check the schema group, vendor J1 (AFS schema vendor).

1-2-2 The schema group determines, which calculation schema is to be used in purchasing documents containing this vendor number.

Which calculation schema will be determined for schema group J1 (check Customizing)?

Calculation Schema: ______________________________


1-3 Maintain the AFS data in the info record of your vendor TM-SUPPA##:

Data Vendor TM-SUPPA##

Material: TM-SHIRT##

Purchasing Organization: 0001

Plant 0001

1-3-1 For size XL the vendor TM-SUPPA## delivers the versions normal and extended. Whenever we order T-Shirts with the size XL we want to order the normal XL. Therefore we maintain NORMAL as a vendor additional number for all SKUs with the dimension value XL. Do not forget to flag the Use Additional Number indicator in the info record.

1-3-2 The lead times for replenishment, manufacturing, transportation and prepare packing are maintained on the AFS additional data screen. Save your changes in the purchasing info record. Which planned delivery time is calculated by the system? Data Replenishment lead time 10 Manufacturing lead time 15 Prepare packing lead time 1 Transportation lead time 10 Planned delivery time:____________________________________

1-3-3 Enter the confirmation control key 0005 in the info records.

1-4 The vendor TM-SUPPA## has different prices for the material TM-SHIRT## at dimension level, that is, smaller sizes are cheaper than larger sizes.


Material TM-SHIRT##

Purchasing Organization 0001

1-4-1 Create an AFS condition record for the AFS condition type J3AP with the key combination material info record with grid value. Maintain the following prices for the different sizes for all colors:

XS S M L XL

Prices ($) 25 25 28 30 30


Exercise

Unit: AFS Procurement Topic: Purchase Grid, Presizing, Rounding


• Create a purchase grid and maintain the grid cell control data

• Create and maintain a distribution profile and use the presizing functionality

• Use the rounding functionality

Your vendor TM-SUPPA## cannot deliver the color yellow. Therefore you create a purchase grid to restrict some grid values. In the grid cell control data you maintain the price groups for the grid values.

Create a distribution profile for your material TM-SHIRT##, as you mostly use the same grid value distribution when ordering this material. This profile is then determined in the purchase order and the quantity entered is automatically distributed as determined in the distribution profile. Then round the purchasing amounts at SKU level as wished by your vendor.

2-1 Vendor TM-SUPPA## cannot deliver the color yellow. Therefore, you create a purchase grid to restrict some grid values. In the grid cell control data you maintain the price groups for the grid values. You can create purchase grids with different key combinations in the AFS Applications (grid control data MM).

2-1-1 Create a purchase grid with the key combination purchasing organization-vendor-material.

Data Purchase grid number PGRD-A## Vendor TM-SUPPA## Purchasing organization 0001 Material TM-SHIRT##

XS S M L XL

Yellow

Red

Blue


2-2 Vendor TM-SUPPB## has different prices for material TM-SHIRT## at dimension level. Therefore, three price groups have been created in Customizing: (small = 01, medium = 02, large = 03).

2-2-1 Create a purchase grid with the key combination purchase organization-vendor-material.

Data Purchase grid number PGRD-B## Vendor TM-SUPPB## Purchasing organization 0001 Material TM-SHIRT##

XS S M L XL

Blue

Red

Yellow

2-2-2 Assign the grid values of your material TM-SHIRT## to the above mentioned price groups. You can do this in the grid control data of your purchase grid PGRD-B##. Use the mode Grid value group for Price determination and key in the following assignments:

Price group 01 (small): all grid values with sizes XS and S Price group 02 (medium): all grid values with sizes M and L Price group 03 (large): all grid values with size XL

2-2-3 Create an AFS condition record for the AFS condition type J3AP with the key combination Material Info Record with Grid Value Group. Maintain the following prices for the different price groups.

Data

Vendor TM-SUPPB## Material TM-SHIRT## Purchasing Organization 0001

Info Record Category 0 (Standard)

Price per piece:

Vendor Size Group 01 Size Group 02 Size Group 03

TM-SUPPB## 28 USD 30 USD 32 USD


2-3 Optional: Create a distribution profile for your material TM-SHIRT## on grid value level.

Data Plant 0001 Category * (all) Validity period * (all) Version 00

XS S M L XL

Blue 6 6 24 24 15

Red 2 2 8 8 5

Yellow

2-4 Optional: Use the rounding functionality to round the grid values.

2-4-1 Your vendor TM-SUPPB## always delivers T-shirts in multiples of 5 for the small and multiples of 10 for the medium and large sizes. Therefore, you have to maintain a rounding factor for all SKUs in the purchasing information record (at grid value level). Press the <Copy Grid Value> button and select all grid values. After that, use the fast entry mode to maintain the rounding factor for all SKUs. Do not forget to set the Use ROF indicator. Set the default rounding method to Round up.

Data Vendor TM-SUPPB## Material TM-SHIRT## Purchasing Organization 0001 Plant 0001

XS S M L XL

Blue 5 5 10 10 10

Red 5 5 10 10 10

Yellow 5 5 10 10 10


2-5 Optional: Create a purchase order with the following data to check the prices, presizing functionality and the rounding functionality.

Data

Vendor: TM-SUPPB##

Purchasing Organization: 0001 Purchasing Group 001 Plant: 0001 Date: Today’s Date + 2 Month Material: TM-SHIRT## Quantity: 250

2-5-1 Use the presizing functionality to determine the quantities at SKU level.

2-5-2 Use the rounding functionality. Round to the nearest. Which quantities of the grid values are calculated by the system?

XS S M L XL

Blue

Red

Yellow

2-5-3 Check the prices at SKU level.


Exercise

Unit: AFS Procurement Topic: Multi Level Contract


• Create an AFS first-level and second-level contract

• Create a purchase order with reference to the second-level contract

Our GLOBAL FASHION company wants to book capacity at TM-SUPPB## for the material group BASIC within the next three months. TM-SHIRT## will be a member of that material group.

A net price of 30 USD (which is an assumed average price) was agreed for the material group. The price of material TM-SHIRT## is 26 USD. Material TM-SHIRT## with its grid values and AFS pricing conditions is specified in a quantity contract of 600 pieces that refers to the first-level contract. The quantity contract is valid for two months starting today. You refer to the quantity contract in your purchase order.

3-1 Create an AFS first level and a second level contract:

3-1-1 Create an AFS first level contract (AFSK) for the material group BASIC (01). Maintain the following data and enter a short text.

Data Vendor TM-SUPPB## Agreement type FSK Purchasing Organization 0001 Purchasing Group 001 Item category M (Material unknown) Plant 0001 Storage Location WM01 Validity Start Today’s date Validity End Today’s date + 3 months Material group 01 (Basic)) Short Text Basic Target quantity 1000 Order unit PC Net price 30 USD

Mark the item, and use the <AFS Additional data> button to enter your material TM-SHIRT## with a net price of 26 USD.

Save your contract and make a note of the contract number. Contract number: ________________________


3-1-2 Create a quantity contract of 600 pieces for the material TM-SHIRT## with reference to the first level contract. Distribute the quantity to two or three different grid values.

Data Agreement type MK Purchasing Organization 0001 Purchasing Group 001 Item Category blank Plant 0001 Storage Location 0001 Validity Start Today’s date Validity End Today’s date + 2 months Material TM-SHIRT## Quantity 600

Grid Value Stock Category Quantity

Σ 600

Save your contract and make a note of the contract number.

Contract number: _________________________

3-1-3 Check the open target quantities in the second level contract.

Grid Value Stock Category Open Target Quantity

Check the released quantity in the first level contract.

Released quantity: ________________________

3-1-4 Create a purchase order with reference to the second level contract and enter the Grid values by using the compare function (press the <Compare> button and process the F4-help on the field grid value).

Make a note of the purchase order number: _______________________

3-1-5 Check the open target quantity in the second level contract.

Grid Value Stock Category Open Target Quantity

Check the released quantity in the first level contract:

Released quantity: ________________________________


Exercise

Unit: AFS Procurement Topic: Purchase Requisition


• Create a purchase requisition with AFS material

Create a purchase requisition to plan how much material to procure externally. You can order material TM-SHIRT## from both vendors TM-SUPPA## and TM-SUPPB##.

4-1 Create a purchase requisition for your material TM-SHIRT##.

4-1-1 Create a purchase requisition for your material TM-SHIRT##.

Data

Purchasing Organization: 0001 Purchasing Group 001 Plant: 0001 Storage Location: WM01 Material: TM-SHIRT## Quantities:

XS S M L XL

Blue 250 200 150

Assign the source of supply (vendor) in reference with the created contract.

Why is the purchasing organization automatically set in the purchase requisition? ______________________________________________________ ______________________________________________________

Make a note of the purchase requisition number: _____________________


Exercise

Unit: AFS Procurement Topic: Purchase Order, Route Determination


• Maintain a purchase order with AFS material.

• Perform a route determination in your purchase order.

Convert your purchase requisition into a purchase order and perform a route determination to recalculate the delivery date.

5-1 Convert the purchase requisition into a purchase order.

5-1-1 Convert your purchase requisition for material TM-SHIRT## into a purchase order.

5-1-2 Check the conditions with the conditions set for this vendor.

5-1-3 Check the vendor additional number with the data in the info record.

5-1-4 Check the grid and the purchase grid.

5-1-5 Check the dates as ex factory date and the delivery date.

Ex factory date: __________________________ Delivery date: __________________________

5-1-6 Add additional purchase texts for some grid values.

5-1-7 Save the purchase order and make a note of the purchase order number: _________________________


5-2 Optional: Use the route determination functionality in your purchase order.

5-2-1 Set the following data in the purchasing info record on the AFS Additional data screen.

Data

Vendor TM-SUPPB##

Material TM-SHIRT##

Transportation Lead Time 5

Transport zone 0000000001 Trans. Group 0001 Transport condition 01

5-2-2 Now perform the route determination for your purchase order. Use the forward calculation method.

Which route has been determined? _______________________ New delivery date: _______________________ New ex factory date: _______________________

5-3 Optional: Display the output message.


Solution

Unit: AFS Procurement Topic: Material Master, Vendor Master, Purchasing

Info Record and Conditions

1-1 Maintain the AFS data in the material master.

Logistics → Materials Management → Material master → Material → Change → Immediately.

Key in the material number TM-SHIRT##, press ENTER and select the views AFS basic data, AFS MRP and Purchasing. Key in the plant number 0001.

1-1-1 In the AFS basic data (group box Basic Data) you will find the number of the master grid: TM-SHIRT.

Open another session to display the grid values select:

Logistics → AFS Central Functions → Grids → Material grid → Display

Key in the number of the master grid and confirm with ENTER. The colors that are valid for your material are yellow (YLW), red (RED) and blue (BLU).

1-1-2 In the AFS basic data view you will find the number of the coverage strategy: CMC.

To display the categories select in Customizing:

Logistics General→ AFS Categories → Define Coverage Strategies

Mark Category Structure C001. Doubleclick on Coverage Strategies. Mark CMC, then doubleclick on Stock Category Comb.. The valid categories are blank, first quality (1) and second quality (2).

1-1-3 In the purchasing view key in the purchase organization 0001 in the group box Source allocation.

1-2 Maintain the AFS data in the vendor masters:

Logistics → Materials Management → Purchasing → Master data → Vendor → Central → Change

Key in the vendor number and the purchasing organization 0001, select the purchasing data view and press ENTER.

1-2-1 You find the schema group, vendor J1 in the group box conditions.

1-2-2 Check Customizing:

IMG: Materials Management → Purchasing → Conditions → Define Price Determination Process → Define Schema Determination → (Determine Calculation Schema for Standard Purchase Orders) The AFS calculation schema is J_3A00.


1-3 Maintain the AFS data in the info records:

Logistics → Materials Management → Purchasing → Master data → Info record → Change.

Key in the number of the material and of the vendor and press ENTER.

Data

Vendor TM-SUPPA## Material: TM-SHIRT## Purchasing Organization: 0001 Plant 0001

1-3-1 Press the <SKU data> button. To select all grid values with the dimension XL use the F4-help of the field Grid va. Then key in NORMAL in the field Add.mat.no and set the Use Add. No. indicator.

1-3-2 Press the <SKU data> button and then the <AFS Additional Data> button.

You find the calculated Planned delivery time when pressing <Purch.org, data>

1-3-3 To check the confirmation control key press the <Purch.org.data1> button. You will find the confirmation control key in the group box Control. Enter control key 0005.

1-4 Maintain prices at SKU level:

1-4-1 Logistics → Materials Management → Purchasing → Master data → Conditions → Other → Create.

Key in the condition type J3AP and select the key combination material info record with grid value. Press the Button < Insert grid values automatically> or select the grid values with the F4-help in the field GrV and maintain the prices in the field Rates.


Solution

Unit: AFS Procurement Topic: Purchase Grid, Presizing, Rounding

2-1 Create a purchase grid:

2-1-1 Logistics → AFS Central Functions → Grids → Grid control data → Purchasing Grid → Create

Key in the condition type PGRD and select the key combination -Purchase organization-Vendor-Material.

Key in the material TM-SHIRT## in the field Material and the purchase grid number PGRD-A## in the field Mat.grid.no. Press the button <grid>, restrict the grid values and save your purchase grid.

2-2 Maintain price groups:

2-2-1 Logistics → AFS Central Functions → Grids → Grid control data → Purchasing Grid → Create Key in the condition type PGRD and select the key combination Purchase organization-Vendor-Material.

Key in the material TM-SHIRT## in the field Material and the purchase grid number PGRD-B## in the field Mat.grid.no. Press the button <grid>, copy all grid values and save your purchase grid.

2-2-2 Press the button <Control Data>. To assign the price groups to your grid values press the button <Mode> and select the <Mode>Grid value group for Price determination. Assign the price groups to the grid values and save your grid cell control data.

2-2-3 Logistics → Materials Management → Purchasing → Master data → Conditions → Other → Create

Create an AFS condition record for the AFS condition type J3AP with the key combination material info record with grid value group. Key in the price groups 01, 02 and 03 in the field G rid Value Group and maintain the different prices in the field Rates.

2-3 Optional: Create a distribution profile:

Logistics → Production → Production Planning → AFS Profiles→ Distribution Profiles →Maintain. Key in your material in the field Material Based and select Grid values in the group box Distribute requirements to.

Use the <Grid processing> and <Rotate> to facilitate maintenance.


2-4 Optional: Use the rounding functionality.

Logistics → Materials Management → Purchasing → Master data → Info record → Change. Info category: Standard

In the overview screen press the button <SKU data>.

2-4-1 Press the <Copy Grid Value> button and select all grid values, then <copy> Press the button <Fast Entry> and flag all grid values that shall have the same rounding factor. Then key in the rounding factor for the selected grid values in the field Vendor ROF and press the button <Save Values>. Repeat the procedure for the other grid values and set the USE ROF indicator.

Select the button <AFS Additional Data> to set the rounding method.

2-5 Optional: Create a purchase order.

Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant known In the Item Overview screen key in the material and the quantity.

2-5-1 To use the presizing functionality, go to the Item detail screen and press the button <Presizing>.

2-5-2 To use the rounding functionality, press the button <Round Values>.

2-5-3 To check the prices have a look at tabstrip Conditions.


Solution

Unit: AFS Procurement Topic: Multi Level Contract

3-1 Create an AFS first level and a second level contract:

3-1-1 Create an AFS first level contract.

Logistics → Materials Management → Purchasing → Outline agreement → Contract → Create

Key in the data, enter. Mark the item line – press button <Additional Data>, then enter your Material TM-SHIRT## and the net price.

Save the contract. (if a pop up occurs: save anyway). Note the contract number.

3-1-2 Create a quantity contract:

Logistics → Materials Management → Purchasing → Outline agreement → Contract → Create Enter the data. Button.<Create referencing contract>. Pop up: Contract release order, enter the above contract number at Outline agreement.

Enter the quantity 600, mark the line (item 10), then press Button <AFS Additional Data>, next <Grid entry>. Distribute the quantity to two or three different grid values (all 600). Green arrow back 2x. Confirm the AFS Rounding pop up with enter and save. (Enter and save anyway). Note the contract number.

3-1-3 Check the open target quantities in the second level contract:

Logistics → Materials Management → Purchasing → Outline agreement → Contract → Display

Enter your quantity contract number. To display the open quantities mark the item line 10, press in the Item Overview screen the button <AFS additional data> and press the button <Open Target qty>.

To check the released quantity in the first level contract go back to the opening screen, enter your number. Enter, mark the item line 10 and press in the Item Overview screen the button <AFS additional data> and then the button <Released Target qty>.


3-1-4 Create a purchase order with reference to the second level contract.

Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor known <Document Overview> on, select Selection variant contracts. With Drag and Drop put your quantity contract in the black square next to NB Standard PO.

In the item detail screen, tabstrip Delivery schedule enter a quantity in column Scheduled quantity. If you want to restrict the F4-Help (field grid value) to exactly the grid values that are part of the second level contract press the button <Compare>. Then select some grid values and quantities. Save and note the PO number.

3-1-5 See solution to 3-1-3.


Solution

Unit: AFS Procurement Topic: Purchase Requisition

4-1 Create a purchase requisition and carry out the source allocation for it:

4-1-1 Logistics → Materials Management → Purchasing → Purchase Requisition → Create

Enter the material, plant and storage location. In the tab strip Delivery schedule press <Grid entry> and enter the sizes.

In the tab strip Source of supply press <Assign the source of supply> and select the vendor in reference with the created contract.

The purchasing organization is automatically set in the purchase requisition because the automatic purchasing organization indicator is set in Customizing and the purchasing organization 0001 has been assigned to the material on the purchasing view of the material master.


Solution

Unit: AFS Procurement Topic: Purchase Order, Route Determination

5-1 Convert the purchase requisition into a purchase order.

5-1-1 Logistics → Materials Management → Purchasing → Purchase order → Create → via Req.Assgt.List.

Key in your vendor as a selection criteria and press F8. Select your contract and press the button <Process assignment>. Select the purchase requisition and press the button <Adopt>. Save your purchase order.

5-1-2 Logistics → Materials Management → Purchasing → Purchase order → Change To check the conditions see tab strip Conditions in the Item details screen of your purchase order.

5-1-3 You can see a vendor additional number on tab strip Material Data in the Item Details in your purchase order.

5-1-4 To check the grid, press the button <Grid entry> in the Item details. There you find the relevant Matrix/Conversion information.

5-1-5 To check the ex factory date and the delivery date in your purchase order see tab strips Material data and Delivery schedule in the Item details.

5-1-6 To add additional purchase texts for some grid values press the <Text> button.

5-2 Optional:

Use the route determination functionality in your purchase order.

5-2-1 Logistics → Materials Management → Purchasing → Master data → Info record → Change

Enter your Vendor TM-SUPP### and your Material TM-SHIRT##. Press the <SKU data> button and then the <AFS Additional Data> button. Maintain the data in the group box Route determination.

5-2-2 Logistics → Materials Management → Purchasing → Purchase Order → Change On tab strip Delivery schedule press the button <Route determination>.


5-3 Optional: Display the output message.

Logistics → Materials Management → Purchasing → Purchase order → Messages → Print/transmit. Enter your PO-number and execute. Flag your PO and push button <Display message>.


© SAP AG 2008

Inventory Management: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Inventory Management

Contents:Goods Receipt

Batch Tracing

Stock Transfer

Reservations

Consignment

Physical Inventory


© SAP AG 2008

Create a goods receipt for AFS products

Set up a goods receipt in Customizing

Name the batch levels in AFS

Post a stock transfer using one-step and two-step procedures

Create a stock transport order

Explain the concept of reservations for AFS products

Outline the consignment process

Carry out a physical inventory in the system


Inventory Management: Unit Objectives


© SAP AG 2008

Inventory Management: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


© SAP AG 2008

The purchased material has arrived at your warehouse and a goods receipt can be posted.

You deliver stock from your plants in Germany and Slovenia. You have a shortage of 100 pairs of shoes in your German plant to fulfill sales orders, so you transfer the material from your plant in Slovenia to your German plant

To transfer the stock, you must create a stock transport order as both plants want to plan their requirements.

Your enterprise has to carry out a physical inventory of its warehouse stock at least once per fiscal year.

Inventory Management: Business Scenario


© SAP AG 2008

Purchasing Process

Requirement

RFQ Quotation

PurchaseOrder

Invoice


Document

PurchasePlanning

MRP


VendorSelection

OrderProcessing

PurchaseFollow Up

GoodsReceipt

InvoiceVerifi-cation

Payment

Requisition

MaterialMaster

VendorMaster

InfoRecord

Conditions

Multi-LevelContract

The goods receipt process consists of:

Verifying the receipt against the order

Valuating material at purchase order price

Creating material and accounting documents to record the event

Updating the purchase order history

Providing a basis for invoice verification


© SAP AG 2008

Gr.V.

6 BLK8 BLK9 BLK

Qty

101215

Category

Post goods receipt:

Inventory Management - Goods Receipt

Movement TypePlantStorage LocationVendorMaterialQuantity

10100010001Miller

A100050

Total: 50

AFS supports goods receipt for purchase orders by entering the number of the purchase order, all open purchase order items and the number of pieces per grid value using product grid processing facilities.

The storage location and the quality inspection indicator are copied from the purchase order item or can be set manually.

The delivery costs planned for the purchase order are transferred automatically.

Underdelivery and overdelivery are checked.

AFS supports the postings of quality inspection stock back to the unrestricted-use stock (movement type 321) or from the goods receipt blocked stock back to the unrestricted-use stock (movement type 343). Cancellations are always adjusted to grid value level.


© SAP AG 2008

Movement TypePlantStorage LocationVendorMaterialQuantity

10100010001Miller

A100050

Total: 50 Total: 50

Gr. V.

6 BLK8 BLK9 BLK

Quantity

101215

Category

PLABEL-1-EUPLABEL-1-EUPLABEL-1-EU

Gr. V.

6 BLK6 BLK8 BLK9 BLK

Quantity

55

1215

Category

PLABEL-1-EUPLABEL-2-EUPLABEL-1-EUPLABEL-1-EU

Goods Receipt - Category Split

You can further assign different stock categories on grid value level, e.g. 5 pc of size 6 BLK are only 2nd quality.

To enter the goods receipt quantities respectively, select the desired grid value and choose split quantity.


© SAP AG 2008

UnderdeliveryWarning

70

OverdeliveryError Message

80 90 100 110 120 130 140

Underdeliverytolerance 10%

Overdeliverytolerance 20%

Purchase OrderQuantity = 100

Goods Receipt - Under and Overdelivery

In the case of a goods receipt with reference to a purchase order, the system proposes the open purchase order quantity of an item for the goods receipt. You can change this quantity if it differs from the delivered quantity.

When you enter a goods receipt item, the system compares the goods receipt quantity with the quantity in the open purchase order. This way, under- or overdeliveries can be identified.

As a rule, underdeliveries are allowed in the standard ERP System. In the order item, it is also possible to enter a percentage value for underdelivery tolerance. If the quantity of goods received is smaller than the ordered quantity minus the underdelivery tolerance, this is interpreted and accepted as a partial delivery. The system points out the underdelivery to the user and also takes the underdelivery tolerance into account when issuing the dialog message.

The standard ERP System does not allow overdeliveries. If however, overdeliveries are acceptable, a percentage overdelivery tolerance can be specified in the order item. The overdelivery tolerance check can be suppressed in the order item, thus allowing unlimited overdelivery.

For AFS materials, it is possible to enter an under and overdelivery tolerance on SKU level in the purchasing info record or in the purchase order itself.


© SAP AG 2008

Goods Receipt - DCI at Item/SKU level (1)

DCI for all SKUs

PO item tolerance

SKUs and tolerance

1

2

3

Delivery Complete Indicator

You can choose one of the following possibilities in Customizing:

1. If the delivered quantity at item level is within the tolerance, the system sets the Delivery Complete Indicator (DCI) at item level and also at SKU level.

2. The DCI is set at item level and at all SKU levels. In this case it can happen that the DCI will be set at item level although the delivered quantity is not within the tolerance at item level.

3. The DCI is set at item level and all SKU levels, if the delivered quantity is within the tolerance at all SKU levels and at item level.



© SAP AG 2008

Underdelivery Tolerance

Goods Receipt - DCI - Purchase Order Item Tolerance

5% Item

5% SKU

DCI for all SKUs

PO item tolerance

SKUs and tolerance

Example 1

SHOES

Size 6

Size 7

Goods Receipt

190 pair SHOES

90 pair size 6

100 pair size 7

PO Quantity

200 pair SHOES

100 pair size 6

100 pair size 7

Delivery CompletedIndicator

The DCI at item level is within the tolerance, so the DCI is set at item level and all SKU levels, although the delivered quantity for the SKU 6 is not within the tolerance.


© SAP AG 2008


Goods Receipt - DCI - for all SKU´s

5% Item

10% SKU

DCI for all SKUs

PO item tolerance

SKUs and tolerance

Example 2

SHOES

Size 6

Size 7

Goods Receipt

180 pair SHOES

90 pair size 6

90 pair size 7

PO Quantity

200 pair SHOES

100 pair size 6

100 pair size 7


The DCI is also set at item level, although the quantity is not within the tolerance of the item.


© SAP AG 2008


Goods Receipt - DCI - SKU´s and tolerance

5% Item

5% SKU

DCI for all SKUs

PO item tolerance

SKUs and tolerance

Example 3

SHOES

Size 6

Size 7

Goods Receipt

190 pair SHOES

90 pair size 6

100 pair size 7

PO Quantity

200 pair SHOES

100 pair size 6

100 pair size 7


The system does not set the DCI at item level because the preconditions (DCI set on all SKU levels) are not fulfilled.


© SAP AG 2008

Plant 2

Batch 6 BLK Batch 6 BLK Batch 6 BLK

Material A

Goods Receipt:January 16thGrid Value:6 BLK

Batch 6 BLK

Plant 1 Plant 2Plant 1




Material B

Batch Level in AFS - Batch Unique at Plant Level

AFS Materials require batch management. The batch is used to map the level of grid and category values.

In the standard ERP System the following batch levels are available:

Batch unique at plant level

Batch unique at material level

Batch unique at client level

AFS supports Batch unique at plant level.

The “Batch unique at plant level” indicator signifies that batches are unique at material/plant level. That means that with regard to identical constituents, the batch is dependent upon the plant.

The same batch number can also be assigned to other material/plant combinations.


© SAP AG 2008

Internal Batch Numbering - Grid Value Batch Number

Material A

Grid Value:6 BLK

100 pair

Coverage Strategy: w/oDisc. Batch Number: -Grdval Batch Number: X

AFS MRP-View:Material A: Master Record

Goods Receipt

Material ABatch6 BLK

Grid Value6 BLK

Stock Category-

Unrestricted use50

Material ABatch6 BLK

Grid Value6 BLK

Stock Category-

Unrestricted use150

In the material master in the AFS MRP view, you can specify the way in which you want to manage your batches.

If you choose grid value batch numbering as in this example, the system will assign a batch number that is equivalent to the grid value at each goods receipt.

In this example, the size is 6, the color is black, and the batch number is 6 BLK.

Grid value batch numbering is only possible if no coverage strategy has been assigned.


© SAP AG 2008

Internal Batch Numbering - Batch Number Per Grid / Category Value

Material A

Grid Value:6 BLK

Category:001A

100 pair


Material ABatch

0000000001Grid Value

6 BLKStock Category001A

Unrestricted use50

Material AGrid Value


Unrestricted use150

Batch0000000001

Goods Receipt

Coverage Strategy: w/ or w/oDisc. Batch Number: -Grdval Batch Number: -

If you have flagged batch management only without discrete or grid value batch numbering, the system assigns the same batch numbers to the same grid values. If you enter a new grid value, the system assigns a new batch number.

When you post the goods receipt, the system informs you that it has assigned the same batch number to the same grid value. If for some reason, the system has stored the same grid values with different batch numbers, it offers both so that you can choose one of them.


© SAP AG 2008

Internal Batch Numbering - Discrete Batch Number

Coverage Strategy: w/ or w/oDisc. Batch Number: XGrdval Batch Number: -


Material AGrid Value


Unrestricted use50

Material AGrid Value6 BLK6 BLK

Stock Category001A001A

Unrestricted use50100

Batch00000000010000000002

Material A

Grid Value:6 BLK

Category:001A

100 pair

Goods Receipt

Batch0000000001

Discrete batch numbering is possible with or without an assigned coverage strategy.

If you use discrete batch numbering, a batch number is assigned to every grid value. This applies to different as well as identical grid values. A new batch number is therefore assigned to each grid value for any goods receipt.


© SAP AG 2008

TransfersStock Transfers Transfer Postings

CategoryPLABEL-1-EU

Plantto

Plant

Storage Locationto

Storage Location

Materialto

Material

Quality Inspectionto

Unrestricted Use

Stock Transfers

Physical movement of materialTransfers can use a one-step ortwo-step procedure, or a transportorder

Transfer Posting

A change in stock type, batchnumber or material numberGenerally, no physical movementoccurs

Stock Transfer / Transfer Posting

CategoryPLABEL-1-EU

The difference between stock transfer and transfer posting is:

Transfer postings usually only involve the stock type batch number or material number change, and not a physical material movement. A transfer posting is therefore a type of “logical” movement

Stock transfers involve physical movements

AFS supports stock transfers and transfer postings at SKU level including grid and category values.

Stock Transfer: In each case a stock transfer consists of a goods issue from the issuing location and a goods receipt at the receiving location. You can post stock transfers in one or two steps. Stock transfers can be done from Plant to Plant and from Storage Location to Storage Location.

Transfer Posting: You can use Transfer Posting to change the grid value and/or category of a material on stock (Movement Type: 309). Transfer Posting for Allocated stock: You can make a transfer posting to another storage location for stock that has already been allocated to a sales order by the Allocation Run. Transfer Posting is also used to change the stock type, e.g. quality inspection stock to unrestricted use.


© SAP AG 2008

StorageLocation 0001


0010001 0002

0010001 0002

CompanyCode

CompanyCode

Stock Transfer - Levels

Plant 0001 Plant 0002

A company-to-company code can be regarded as an organizational level. The stock transfer takes place between two plants but involves two different company codes.

Stock transfer can take place between two plants that belong to the same company code.

Stock transfer can take place within a plant from one storage location to another storage location.


© SAP AG 2008



CategoryPLABEL-2-EU

Unrestricted-Use Stock


CategoryPLABEL-1-EU

Stock Transfer - One-Step Precedure

This type of stock transfer can only be carried out in inventory management. Neither shipping in the issuing plant nor purchasing in the receiving plant is involved in the process.

A stock transfer from one storage location to another takes place within a plant. This transfer is posted without a value since the transferred material remains in the same plant and is thus managed with the same valuation data. The plant stock does not change.

The stock transfer reduces the corresponding type of stock at the issuing storage location and increases the same type of stock at the receiving storage location. No change in stock occurs at plant level. No accounting document is created for the material document.

This stock transfer is possible for all stock types.

Movement Type: 311

The one-step procedure can also be used to transfer stock from plant to plant. The stock transfer is valued at the valuation price of the material in the issuing plant.

You can change grid values and/or category while posting a stock transfer.

Movement Type: 301


© SAP AG 2008


Stock inTransfer

CategoryPLABEL-1-EU


CategoryPLABEL-2-EU

Stock Transfer - Two-Step Procedure


This type of stock transfer can only be carried out in inventory management. Neither shipping in the issuing plant nor purchasing in the receiving plant is involved in the process.

The stock transfer includes the following processes:

Removal in the issuing plant / Placement in the receiving plant (Movement Type: 303 / 305)

Removal in the issuing storage location / Placement in the receiving storage location (Movement Type: 313 / 315)

With the two-step procedure, it is possible to monitor the stocks that are being transferred. Once the issuing plant/ storage location has posted goods issue, the stock is seen at the receiving plant as “stock in transfer”. When the goods receipt is posted in the receiving plant, the quantity is finally posted to the unrestricted-use stock. This enables you to monitor the quantity “on the road”.

The transfer posting is valued at the valuation price of the material in the issuing plant.

If you create a stock transfer for an AFS material with categories, the categories will not be transferred into the stock in transfer - you have to assign a new category.


© SAP AG 2008


AB B C

B


AB B C

BStock inTransit

GoodsReceipt Goods

Issue

StockTransportOrder

CategoryPLABEL-1-DE

CategoryPLABEL-1-EU

Stock Transfer - Stock Transport Order

IssuingPlant B

ReceivingPlant A

CategoryPLABEL-1-DE

CategoryPLABEL-1-EU

CategoryPLABEL-1-EU

Stock transport orders can be managed with or without SD. This type of stock transfer involves inventory management as well as purchasing in the receiving plant.

With the stock transport order, it is possible to execute stock transfers as a planned goods movement from plant to plant.

In the stock transport order, the categories will be converted from the stock category of the receiving plant to the requirement category of the issuing plant.

When posting a goods receipt with reference to the order, the stock category of the stock transfer order will be used.

The stock in transit is valued at the valuation price of the material in the issuing plant, but does not belong to unrestricted-use stock. It is managed at plant level.

AFS supports this goods movement at SKU level including grid and category values.


© SAP AG 2008

ATP Overview

ATP Result

ATP Result

Explain ATP

Explain ATP

ATP Overview

Grid valueQuantityR. DateS. DateSlotStock NoItemOrder No

Explain ATP

Stock Transfer - Stock Transport Order incl. ATP

The Stock Transport Order includes the option of ATP check for materials in the issuing plant.


© SAP AG 2008

Reservations (1)

=̂Reservation

Planning a Goods Movement

Planning an inwardmovement

Planningan OutwardMovement

Planning an inwardmovement

Planninga Transfer

Posting

Planning an Inwardmovement

Plant, Storage Location

Reservations are requests to the warehouse to have materials ready for issue at a later date and for a certain purpose.

A reservation can also be the pre-planning of a receipt.

Reservations are used to ensure that a material is available at the time it is required.

Reservations are taken into account by Material Requirements Planning (MRP), which means that required materials are procured in time if they are out of stock.

AFS supports reservations at SKU level including grid and category values.


© SAP AG 2008

ItemItem

Reservation Header

Item

Account Assignment

Base Date

Check Calendar

Grid Value / Requirement Category

Plant / Storage Location / Batch

Requirement Date

Movements Allowed

Reservations (2)

Analysis and administration tools are available for the reservation handling.


© SAP AG 2008

Consignment

ConsignmentStores

InvoiceVerification

InventoryManagementPurchasing

Stock

AB B C

B

Invoice

Accounting

Purchase OrderK Shoes 8 BLK

Price 0

Master data

Material/Vendor:

Price = 95 USD

ConsignmentPrice

ConsignmentItem

GR GI

availablenot valuated

Shoes 8 BLKPrice 95 USD

AFS supports consignment processing at SKU level.

The vendor provides goods that are stored in consignment stores. The vendor remains owner of the material until you withdraw materials from the consignment stores.

You can define consignment prices at SKU level.

Purchasing: The procedure for creating consignment purchase requisitions and consignment purchase orders is the same as for regular purchase orders. Enter K for the consignment item. Do not enter a net price.

Goods Receipt: After a goods receipt for consignment material has been posted, the consignment stock of the material increases. However, the material‘s valuated stock does not increase since the consignment stock still belongs to the vendor.

Goods Issue: When withdrawing a material from the consignment stores for an account assignment object, the vendor is required so that you can determine the relevant consignment pricing data.

Invoice Verification: After the goods issue, the vendor is due the net value of the goods issue. The invoice is due at set periods of time, for example, monthly.


© SAP AG 2008

Create physical inventory document

Physical Inventory - Process

Print physicalinventory document

Blocking indicator

Enter physical inventory count

List of differences

Post Differences

Initial recount

Change count

Independent of the physical inventory procedure, the physical inventory process can be divided into three phases.

1. Physical inventory preparation This includes creating a physical inventory document, blocking materials for posting, as well as printing and distributing the physical inventory document.

2. Physical inventory count The stocks in the warehouse are counted and the count results are entered in the count list. These are then transferred from the count list to the system in the step “enter physical inventory count”.

3. Physical inventory check Using the list of inventory differences, you can check variances in the stock. You should check whether the transferred count result is correct (change count) or whether you want to initiate a recount. If the difference is accepted, it is posted and stock is corrected.


© SAP AG 2008

Physical Inventory - Document

Plant : 0001Description : ChicagoPhys. Inv. Doc. : 100000017Planned count date : 29.05.2000

Itm Material Sloc Stor. binMat. Short text Stock typeBatch Grid Value CategoryStatus of the item Countedqty Unit

001 SHOES - 511 0001 0001Ladies Shoes Cynthia Warehouse0000002064 6 BLK 001ANot yet counted 502 PAA

002 SHOES - 511 0001 0001Ladies Shoes Cynthia Warehouse0000002065 6 RED 001ANot yet counted 144

When creating an inventory document you can select single grid values and categories.

A new form J_3AINVENT has been created for printing the AFS inventory document.

The blocking indicator is set at SKU level. You can block the SKUs either directly on entry of the physical inventory document (if the count is to take place immediately) or shortly before the count (if the count is to take place at a later time).

In the standard ERP System, you can use the following physical inventory procedures:

Periodic inventory

Continuous inventory

Cycle counting

Inventory sampling

AFS supports periodic and continuous inventory.


© SAP AG 2007

Physical Inventory - Enter Counting Result

ItemsItem Material Batch Quantity UnE ZC

Material description Sty Quantity SKU

Plant

StorageLocation

00010001

1 SHOES - 511 0000002064

Ladies Shoes „Cynthia“ 1

Ladies Shoes „Cynthia“ 1

2 SHOES - 511 0000002056

GRV 6 RED Stock Category 001A

GRV 6 BLK Stock Category 001A

502 PAA

500 PAA

144 PAA

150 PAA

Indicator: Zero Count

Counted Quantity

After the count has been performed, you must enter the results of the count into the system.

If a quantity of zero was counted for an item, enter this by selecting the ZC (zero count) column. Do not enter ‘0’ in the quantity column because the system interprets the zero as “not yet counted”.


© SAP AG 2008

Physical Inventory - Posting Inventory Differences

Standard PriceTotal StockTotal Value

101 000 Paa

10 000

Grid Values:

500 Paa 6 BLK 500 Paa 6 RED

Material Master Posted Inventory Count

450 Paa 6 BLK

600 Paa 6 RED

Material MasterStandard PriceTotal StockTotal Value

101 050 Paa

10 500

Grid Values:

450 Paa 6 BLK 600 Paa 6 RED

Posted Inventory Differences

Stock account for materialExpense from ph. inventory

Stock account for materialRevenue from ph. inventory

500 -500 +

1000 +1000 -

When you post inventory differences, the material master record is changed and the total stock is automatically adjusted to the counted quantity.

The amount posted is calculated on the basis of the current standard or moving average price. Therefore posting inventory differences does not result in a price change.

If the counted quantity is smaller than the reserved quantity (=quantity allocated by the Allocation Run), it is not possible to post the difference. First you have to deallocate the “missing” quantity.


© SAP AG 2008

Create a goods receipt for AFS products

Set up a goods receipt in Customizing

Name the batch levels in AFS

Post a stock transfer using one-step and two-step procedures

Create a stock transport order

Explain the concept of reservations for AFS products

Outline the consignment process

Carry out a physical inventory in the system


Inventory Management: Unit Summary


Exercise

Unit: Inventory Management Topic: Goods Receipt


• Create a goods receipt for a purchase order

• Use the split quantity function

The purchased material TM-SHIRT## has arrived at your warehouse and a goods receipt can be posted. A part of one grid value has been delivered in a second quality.

1-1 Create a goods receipt for your purchase order and use the split quantity function.

1-1-1 Create a goods receipt for your purchase order (which you created in exercise 2-14). First enter the Header Data:

Data Movement type 101 Purchase order your purchase order number Plant 0001 Storage location WM01

Copy the item of your purchase order and post the goods receipt. Use the Copy order quantity. The vendor delivers only a 100 pcs of size M instead of the ordered 200 pcs. Furthermore 125 pcs of size XS are not the expected quality 1 and therefore use the Split quantity function.

Blue XS S M L XL

Quality 1 125 100 150

Quality 2 125

Make a note of the document number: __________________________

1-1-2 Check the DCI in your purchase order at dimension level and monitor the stock in plant 0001 for your material TM-SHIRT##.


Exercise

Optional Unit: Inventory Management Topic: Transfer Posting


• Post a stock transfer from storage location to storage location with AFS material

Within your plant 0001 the material TM- SHOE## is stored in two storage locations. You want to move the goods from storage location 0001 to storage location 0002.

2-1 Post a stock transfer from storage location 0001 to storage location 0002.

2-1-1 Post a stock transfer for 10 pairs of TM-SHOE##, size 8, from the unrestricted stock of storage location 0001 to the unrestricted stock of storage location 0002. Post the stock transfer in one step. Which movement type do you have to use?

Data Movement type ______ Plant 0001 Supplying storage location 0001 Receiving storage location 0002



Exercise

Optional Unit: Inventory Management Topic: Stock Transport Order


• Create a stock transport order and monitor the stock while it is in transit

You want to transfer 200 pairs of the shoe TM-SHOE## (100 of size 7 and 100 of size 8) from the plant in Slovenia to the plant in Germany. As both plants want to plan their requirements, you have to create a stock transport order (located in MRP). The goods issue posting in Inventory Management will be carried out without the involvement of SD (optional exercise: with the involvement of SD).

3-1 Create a stock transport order and monitor the stock while it is in transit/

3-1-1 Create a stock transport order for the material TM-SHOE## to transfer the material from plant 0010 to plant 0001 and check ATP.

Data Supplying plant 0010 Order type UB

Purchasing Organization 0001

Purchasing Group 001 Receiving plant 0001 Storage location 0001 Material TM-SHOE##

Quantity: 200 pairs

(100 pairs of size 7 and 100 pairs of size 8)

Make a note of the stock transport order number: ___________________

3-1-2 Run MRP for plant 0010 and check the assignment of the transport requirement and the stock.

3-1-3 Post a goods issue of plant 0010 to the stock in transit with reference to the stock transport order.

Data Movement type 351 Plant 0010 Storage location 0001

Make a note of the document number: ____________________________


3-1-4 Monitor the stock in transit of plant 0001.

Material SKU Plant Unrestricted-use stock

Stock in transit

TM-SHOE## 7 0001

TM-SHOE## 7 0010

TM-SHOE## 8 0001

TM-SHOE## 8 0010

3-1-5 Post a goods receipt for plant 0001 with reference to the stock transport order.

Data Movement type 101 Plant 0001 Storage location 0001


3-1-6 Monitor the stock in transit of plant 0001.

Material SKU Plant Unrestricted-use stock

Stock in transfer

TM-SHOE## 7 0001

TM-SHOE## 7 0010

TM-SHOE## 8 0001

TM-SHOE## 8 0010


Exercise

Optional Unit: Inventory Management Topic: Physical Inventory


• Create a physical inventory document

• Enter a physical inventory count

• Post inventory differences

You have to carry out a physical inventory of your warehouse stocks. Therefore, you have to create a physical inventory document for your material TM-SHOE##. The counted quantity of your material is lower than the stock inventory balance, so you have to post the inventory difference.

4-1 Carry out a physical inventory for your material TM-SHOE##.

4-1-1 Create a physical inventory document for size 8 of your material TM-SHOE##.

Data Planned count date: Today Plant: 0001 Storage location: 0001 Use the F4-Help for the field Batch to select batches of a single grid value. Note the inventory document number: ________________

Monitor the unrestricted-use stock for your material TM-SHOE## in plant 0001, storage location 0001:

4-1-2 Enter an inventory count for your inventory document. The entered quantity should be lower than the stock inventory balance.

4-1-3 Post the inventory difference from your physical inventory document. Maintain the reason 4 (Theft).

Note the material doc. no.: ________________________


Solution

Unit: Inventory Management Topic: Goods Receipt

1-1 Create a goods receipt for your purchase order:

1-1-1 Logistics → Materials management → Inventory management → Goods movement → Goods receipt → For purchase order → PO number known.

Enter the movement type and your PO number. Select Adopt to see the ordered quantities at SKU level. In the field Quantity in UnE enter the quantities you received from your vendor, flag size and press the button <Split Qty> to split the quantity of size XS. Enter 125 pieces with stock category 1 and 125 pieces with stock category 2. <Copy> your data and save the goods receipt. Note the number.

1-1-2 To check the DCI in your purchase order at dimension level select Logistics → Materials management → Purchasing → Purchase order → Display

To monitor the stock in plant 0001 select:

Logistics → Materials management → Inventory management → Environment → Stock → Stock overview


Solution

Optional Unit: Inventory Management Topic: Transfer Posting

2-1 Post a stock transfer from storage location 0001 to storage location 0002.

2-1-1 Logistics → Materials management → Inventory management → Goods movement → Transfer posting.

To determine the movement type select Movement type F4 help: Transfer posting storage location (one-step) = Movement type 311. Enter

On the next screen enter the material number and the number of the receiving storage location 0002 and press ENTER, maintain grid values and quantities. (you can check the availability of the sizes/grid value in the stock overview: see 3-1-2).


Solution

Optional Unit: Inventory Management Topic: Stock Transport Order

3-1 Create a stock transport order and monitor the stock while it is in transit.

3-1-1 Logistics → Production → DRP → Execution → Purchase Order→ Create Stock transfer Enter the data and press button<SKU Data>. Enter your material and the whole quantity, check the flag and press < Grid entry>. Enter the grid values and save.

Note the stock transport number.

3-1-2 Run MRP for plant 0010:

Logistics → Materials management → Material Requirement Planning (MRP) → MRP → AFS Material Requirement Planning→ Single-item Planning

3-1-3 Post a goods issue of plant 0010:

Logistics → Materials management → Inventory management → Goods movement → Goods movement (MIGO)

Select Goods issue, Purchase Order, and enter Purchase Order number and the movement type 351. Set the OK flag for both items, enter storage location 0001. Press Check button, post goods issue.

3-1-4 Monitor the stock.

Logistics → Materials management → Inventory management → Environment → Stock → Stock overview

3-1-5 Post a goods receipt for plant 0001:

Logistics → Materials management → Inventory management → Goods movement → Goods Movement(MIGO)

Select Goods Receipt, Purchase Order, and enter Purchase Order number and the movement type 101.

Set the OK flag for both items, enter storage location 0001.

Press Check button, post goods receipt.

3-1-6 For menu path see solution 3-3-4.


Solution

Optional Unit: Inventory Management Topic: Physical Inventory

4-1 Carry out a physical inventory for your material TM-SHOE##.

4-1-1 Logistics → Materials management → Physical inventory → Phys. inventory doc. → Create

Enter your material and use the F4-help on the Batch field to select the grid value size 8.

Monitor the unrestricted-use stock:

Logistics → Materials management → Physical inventory → Environment → Stock overview

4-1-2 Enter an inventory count for your inventory document.

Logistics → Materials management → Physical inventory → Inventory count → Enter

Enter a lower quantity than that which is in stock. Save. Message: Count entered for phys. inv. Doc.

4-1-3 Post the inventory difference:

Logistics → Materials management → Physical inventory → Difference → Post Enter your physical inventory number. Maintain the reason. Note the material document number.


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Invoice Verification: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


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Contents:Invoice Verification


© SAP AG 2008

Enter purchase-order-based and goods-receipt-based invoices

After completing this course, you will be able to:

Invoice Verification: Unit Objectives


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Invoice Verification: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


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Invoice Verification - Invoice Processing

Payment Program

Invoice Document

Purchase Order

Invoice

Master Data


Material Document for Goods Receipt


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Invoice Verification - Account Postings

GoodsReceipt

StockAccount

GR/IRVendor + 100

StockAccount

GR/IR + 100Vendor - 100

Stock +100Account

GR/IR - 100Vendor

InvoiceVerification

Payment

The Invoice Verification component is part of the Materials Management (MM) system.

It provides the link between the Materials Management component and the Financial Accounting, Controlling and Asset Accounting components.


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Invoice Verification - Prices and Quantities on SKU Level

SAP America701 Lee RoadWayne PA 19087

Invoice no. 1266./33Re: Your purchase order 4151599001 of 24.04. We have supplied you with the following goods:

Ladies Shoes „Cynthia“ 50 pr 6 BLK Cat 001A200 USD each 10,000.00USDLadies Shoes „Cynthia“ 50 pr 6 RED Cat 001A180 USD each 9,000.00USD

19,800.00USDTax 10% 1,980.00USD

21,780.00USD

Payable within 20 days of invoice date,2% cash discount if payment received within 10 days. Account 11223344 Bank of Californiabank code 300 210 55

Rogers & HartWalnut StreetPhiladelphia PA 19101

03.05.00

Stock Keeping Unit

Logistics Invoice Verification:

Prices at SKU Level (PO)Quantities at SKU Level (GR)

You can carry out the logistics invoice verification at SKU level. This enhancement is valid for both goods-receipt-related and purchase-order-based invoice verification.


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Invoice Verification - Information in Invoice

Purchase Order

Addressee

Material

Quantity

Unit of Measure

Terms of Payment

Reference

Invoice Items

Amount per Unit

Invoicing Party

Currency

Tax Rate

Tax Amount

Bank Information

Document Date

Amount per Item

Invoice Amount

Stock Keeping Unit

SAP America701 Lee RoadWayne PA 19087

Invoice no. 1266./33Re: Your purchase order 4151599001 of 24.04. We have supplied you with the following goods:

Ladies Shoes „Cynthia“ 50 paa 6 BLK 200 USD each 10,000.00USDLadies Shoes „Cynthia“ 50 paa 6 RED 180 USD each 9,000.00USD

19,800.00USDTax 10% 1,980.00USD

21,780.00USD

Payable within 20 days of invoice date,2% cash discount if payment received within 10 days. Account 11223344 Bank of Californiabank code 300 210 55

Rogers & HartWalnut StreetPhiladelphia PA 19101

03.05.00

You must enter:

Document date, purchase order number

Invoiced amount, tax amount, terms of payment (if necessary)

The following are copied from the purchase order:

Vendor, terms of payment (if defined there)

Invoice items

The following are transferred from the purchase order history:

Quantity, amount

The following is proposed on the basis of the system settings:

Rate at which tax is calculated

The bank information is stored in the vendor master record.


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Invoice Verification - PO-Item-Based

Selection screen/item listX 4000000077 100 paa SHOES

Invoicefor purchase order4000000077

100 paa shoes

Selection viagoods receipt/ delivery note

Selection viapurchase order

Delivery note BX123 25 paa 6 BLK 25 paa 6 RED



Purchase order4000000077100 paa shoes• 50 paa 6 BLK• 50 paa 6 REDGR-based IV

1

2

3

If you want to post invoices on PO-item level, you must indicate this in Customizing.

You can define variable keys with the following elements:

Company Code

Plant

Material

User-ID (/AFS/IV_USR)

This can only be used for purchase-order-based invoice verification.

If you use the split valuation functionality (valuation at SKU level), it is not possible to use PO item-based invoice verification.



© SAP AG 2008

Selection screen/Item listX 4000000077

• 50 paa 6 BLK • 50 paa 6 RED

Invoicefor purchase order4000000077

100 paa shoes• 50 paa 6 BLK• 50 paa 6 RED

Selection viagoods receipt/ delivery note

Selection viapurchase order

Invoice Verification - SKU-Level-Based




Purchase order4000000077100 paa shoes• 50 paa 6 BLK• 50 paa 6 REDGR-based IV

1

2

3

SKU-level-based invoice verification is standard in AFS.

If you use the split valuation functionality, it is mandatory to use SKU-level-based invoice verification.

It can be used for

purchase-order-based invoice verification

goods-receipt-based invoice verification

Goods-receipt-based invoice verification must be defined in the purchase order.

In goods-receipt-based invoice verification, each goods receipt is settled separately. Goods receipts and invoices are matched up in the purchase order history.

In goods-receipt-based invoice verification, it is not possible to post an invoice before the first goods receipt.


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Enter invoices referring to purchase orders or goods receipts and post these invoices.


Invoice Verification: Summary


Exercise

Unit: Invoice Verification Topic: Logistics Invoice Verification


Post an invoice referring to goods receipt (goods-receipt based invoice verification).

Today you received an invoice from your vendor TM-SUPPA##. Now you have to enter the invoice into the R/3 system.

1-1 You receive an invoice from your vendor referring to the purchase order (for which you posted the goods receipt in Exercise 3-1). The invoice shown here is an example. You might have ordered grid values other than the ones mentioned here:

Vendor: VENDOR1-##

Invoice Date: today

Invoice 2312##

This invoice is in reference to your purchase order #45......

TM-SHIRT## T-shirts 125 pieces 25 USD each XS Blue 3125 USD TM-SHIRT## T-shirts 125 pieces 25 USD each XS Blue 3125 USD TM-SHIRT## T-shirts 100 pieces 28 USD each M Blue 2800 USD TM-SHIRT## T-shirts 150 pieces 30USD each XL Blue 4500 USD ---------------------------------------------------------------------------------------------------------

Total Due 13550 USD

1-1-1 Enter the invoice in the system by using Logistics Invoice Verification. Enter the Header Data:

Data Document Date Today Company Code 0001 Tax Code V0 Purchasing Doc. Your purchase order number Go to the item list. Where are the default values for quantity and amount coming from?


1-1-2 Correct the gross invoice amount until there are no more differences. Post the document.

Note the document number: ___________________________

1-1-3 Fill in the information in the following table:

Material Grid Value P.O. quantity Goods Receipt Quantity

Invoice quantity

TM-SHIRT##

TM-SHIRT##

TM-SHIRT##

TM-SHIRT##

1-1-4 Display the posted account document.


Solution

Unit: Invoice Verification Topic: Logistics Invoice Verification

1-1 You receive an invoice...

1-1-1 To enter the invoice select:

Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice

Enter the current date, the company code 0001, the invoice amount 13550 USD, the tax code V0 and your purchase order number. Flag the calculate tax check box. Select Purchase Order and use the F4-help to enter your vendor TM-SUPPA## as the invoicing party. Execute (F8). Flag your PO and <Copy>. Then press <Enter> to view the data.

Change the invoice amount manually to proceed: The quantities are defaulted from the goods receipt. In the amount column the system suggests the product of the quantity suggested and the order price. This amount does not include tax.

1-1-2 Enter the Net Value in the gross invoice amount so the light will turn to green.

1-1-3 Data:

Material Grid Value P.O. quantity Goods Receipt Quantity

Invoice quantity

TM-SHIRT## BLUXS 125 250 3125

TM-SHIRT## BLUXS 125 0 3125

TM-SHIRT## BLUM 200 100 2800

TM-SHIRT## BLUXL 150 150 4500

1-1-4 To display the account document select:

Logistics → Materials Management → Logistics Invoice Verification → Further Processing → Display Invoice Document

Enter the document number and press the <Follow-on documents> button.


© SAP AG 2008

Special Business Processes: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Special Business Processes and Additional AFS Enhancements

Contents:Third-Party Order

Subcontracting

Purchase-to-Order (PTO)

EDI - Electronic Data Interchange

LIS - Logistics Information System


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Describe the third-party order processing

Create a subcontracting order for a finished product with a BOM

Describe the purchase-to-order processing

Name the AFS IDOC message types specific to MM

Describe the process of creating information structures to handle information down to SKU level


Special Business Processes and Additional AFS Enhancements: Unit Objectives


© SAP AG 2008

Third-Party Order Processing

Delivery

BillingDocument

PurchaseOrder

SalesOrder

Invoice

‘TAS‘

StatisticalGoodsReceipt

3

1 2

6 5

4

VendorCustomer

Own Company

In third-party order processing, your company passes on a sales order to an external supplier or "third party", who then sends the goods directly to the customer and the invoice to your company.

Third-party order processing consists of the following steps:

1. Enter a third-party item in the sales order. You have to select the item category TAS for the sales order. The system automatically creates a purchase requisition item for each third-party item in the sales order.

2. Enter a purchase order with a third party item with reference to the third-party requisition item.

3. The vendor supplies the goods to the customer.

4. A statistical goods receipt is posted in Inventory Management. While it is optional in the standard ERP System, it is mandatory in AFS. The goods receipt is needed to close the requirement.

5. The vendor issues an invoice. The invoice is entered in the system in logistics invoice verification.

6. A billing document is created in Sales and Distribution (SD).

If you do not use SD, third party orders can be handled in Materials Management (MM). In this case, omit steps 1 and 6.


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AvailabilityCheck

ReleaseProcedure

Grouping ofRequirements

Order

ItemCategory TAS

Customer

PurchaseRequisition

Item Category S

AccountAssignmentCategory X

Third-Party Order Processing with SD

Purchase requisition items within a purchase requisition are automatically generated for all order items within a sales order.

The purchase requisition is assigned to the sales order.

Quantities, delivery dates, and account assignment cannot be changed in the purchase requisition.

Changes to the order are also automatically made to the purchase requisition provided that the latter's release status allows this.

To use third-party order processing with SD for AFS materials, you must select the item category TAS.


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Conditions

Texts

Additional Data

Ordering Party's Delivery Address

Account Assignment

Schedule Lines

Third-PartyRequisition

Third-PartyPurchase Order

Item Category S

AccountAssignmentCategory X

Category001A

Category001A

Third-Party Order Processing without SD

Third-party items in requisitions or purchase orders are identified by the item category S.

Third-party items must have an account assignment. In the ERP System, account assignment category X (all auxiliary account assignments) is used.

When the purchase order is produced, the delivery address is printed once in the header (provided that the address is the same for all items). If the delivery addresses for the items differ, the relevant address is printed for each item.


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Delivery

SubcontractingVendorOur Plant

SubcontractPurchaseOrder

Provision ofComponents

Manufacturing

Goods Receipt

InvoiceInvoice Verification

Subcontracting Process

A subcontracting purchase order is created to get an entire finished product manufactured at a subcontractor or to outsource a specific operation or service to a subcontractor. However the components of the Bill of Material (BoM) are provided to the subcontractor by your own company.

The components are issued to the subcontractor.

The subcontractor is issuing the finished product / semi-finished product and your company will post a goods receipt respectively. During the goods receipt the components provided to the subcontractor are consumed.

The subcontractor's invoice is entered with reference to the subcontracting purchase order.

A subsequent adjustment for excess consumption or under-consumption of the components is possible.


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Purchase Order

Item Category LSubcontractor

ComponentComponent

SubcontractorComponentComponent

PurchaseRequisition

Item Category LStandardSubcontractor

Reservationfor

PurchaseOrder

BOM

Subcontractor Information RecordInfo Category: Subcontracting

Preferred Subcontracting Indicator:

Category001A

Category001A

Subcontract Items in the Purchase Order

X

The subcontracting items in purchasing documents have their own item category (L). Each subcontracting item has one or several sub-items which contain the components that are to be provided to the vendor.

Following options are available:

Enter the components manually in the Purchase Order

Determine the components using BOM (Bill of Material) explosion

The system automatically creates reservation items for MRP-relevant components.

The purchase order price is the vendor's subcontracting service.

Conditions for subcontracting purchase orders can be stored in a subcontracting purchasing info record (use info category Subcontracting).

In the material master of the subcontracted product the Special Procurement Type 30 (Subcontracting) in the MRP 2 view can be set.

In the subcontracting info record on the AFS Additional data screen the ‘Preferred Subcontracting Indicator’ can be set. This flag indicates that this material normally is subcontracted by the vendor. A warning message is displayed when this flag is set and the material is not subcontracted (item category 'L').


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ATP Overview

ATP Result

ATP Result

Explain ATP

Explain ATP

ATP Overview

Grid valueQuantityR. DateS. DateSlotStock NoItemOrder No

Explain ATP

Subcontracting Orders - ATP for Components

ATP check can be executed in the subcontracting purchase order.

The availability of the components can be analyzed.

All checks are done at the SKU Level including grid and category values.


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Subcontracting Orders - Provision of Components

SubcontractingVendor LOH1

DistributionCenter

StorageLocation

Special Stock:Parts provided to

vendor

Available for MRPValued

==

Category001A

Category001A

Provision of componentsUnrestricted

Use

Plant

The provision of components can be done in the subcontracting stock monitor (Transaction: ME2O).

Components can be issued with or without delivery (SD delivery document).

The components at the subcontractor's site are managed in a special stock for the vendor. This stock is valuated and available for MRP. It is not allocated to a specific storage location.

Components can only be withdrawn from the stock of material provided by the vendor.


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Purchase Order Missing Parts List

With AFS 5.0 release the new transaction ‘Missing Parts List for Purchase Orders’ is available (/AFS/MM_MP).

The list displays purchase orders that have subcontracting items. Partially confirmed quantities are highlighted in yellow.


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Goods Receiptof Subcontracted

Material

1. Goods Receiptof Material

2. ComponentConsumption

Purchase OrderComponentsPurchase OrderHistory

SEMI

RAW

Subcontracting Orders - Goods Receipt

SubcontractingVendor

Category001A

DistributionCenterCategory

001A

Goods Receipt of Subcontracted Material FERT

The goods receipt of the subcontracted material is entered with reference to the subcontracting purchase order.

The consumption of the components is posted at goods receipt for the subcontracted material. The proposed consumption quantity of the components can be adjusted while entering the goods receipt. It is also possible to adjust the component consumption subsequently.


© SAP AG 2008

Subcontracting - Third-Party Provision of Components

External Supplier

SubcontractingVendor

Our Company

1

2

3

4

5

6

If you do not provide the components yourself, but order them from another supplier, you can specify the delivery address of your subcontracting vendor for delivery in the respective purchase order. When the goods are received, the components will be posted directly to the stock of material provided to the vendor.

This process is made up of the following steps:

1. Subcontracting order and provision of available components.

2. Purchase order to external supplier for other material required with delivery to the subcontract vendor.

3. Goods Receipt of material provided by external supplier to subcontract vendor.

4. Invoice from external supplier.

5. Goods receipt for subcontracting order.

6. Invoice from subcontracting vendor.

Open external deliveries of components are listed in the subcontracting monitor (ME2O).


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Purchase-to-Order (1)

Purchasing

Sales Order

A product is purchased specifically for an individual sales order.

In the MRP list on the tab strip N Stock w/o MRP assignment a segment E is created for the purchase-to-order procedure

For the Purchase-to-Order procedure each product is specifically purchased for the individual customer order.

If the product would be manufactured internally the make-to-order procedure would be initiated for individual production of a product for a specific customer order.

In a purchase-to-order strategy, purchasing is initiated by a sales order.

The sales order is planned individually and maintained in an individual segment (E) in the MRP list on the tab strip N.

The sales order quantities are planned for purchasing with reference to the sales order.


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Delivery

Goods Receipt(pos. ARun )

Purchasing

Sales Order


The requirement is transferred by converting the purchase requisition into a purchase order. This purchase order is placed with a vendor.

If the goods are received at the warehouse they are assigned to the special customer stock automatically.

The Purchase-to-Order process can be done with or without using the AFS Allocation Run. As stock is in the special customer stock segment it cannot be used to supply any other requirements than the specific customer sales order.

with ARun: in the customizing of the ARun rules the flag for “externally owned stock” needs to be set

without ARun: in the customizing of the delivery item category TAB the flag “MTO/PTO w/o ARun” needs to be set (menu path see appendix)

The customer stock is reduced when the sales order is delivered to the customer. In the case of a partial delivery, the customer requirements are reduced correspondingly in the customer stock segment.


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Order Type

Item Category Group

Item Category

Schedule Line Category

Purchase-to-Order:

Purchase-to-Order:

TAB

TAB CB


The purchase-to-order scenarios are controlled by using certain item and schedule line categories.

In the material master the item category group can be assigned to trigger the purchase-to-order process.

If there is no definition in the material master the Purchase-to-Order scenario needs to be initiated by setting the corresponding item category / schedule line category in the sales order.

Procurement costs can be managed specifically for each sales order with special settings in the IMG in the requirement class for costing and account assignment.

In former AFS releases two special item categories were defined for the PTO process:

JPT2 valid w/o CO -> schedule line category J5

JPT3 valid with CO -> schedule line category J6

Both are still available in the AFS 5.0 system


© SAP AG 2008

Document

IDoc

Message

IDocIDoc

SAP ERP System

EDI Subsystem EDI Subsystem

SAP ERP System

EDI Scenario

Two special IDoc application areas should be defined:

EDI: electronic data interchange between different companies

ALE: electronic data interchange between different systems within one company (Application Link Enabling)

Systems can exchange IDocs either directly (for example, ERP with ERP) or have them translated into other standards (for example, UN/EDIFACT or ANSI X.12) by EDI subsystems.

The application which uses IDocs (for EDI or ALE) must be able to write data to IDocs, or read data from IDocs, or both.

The IDoc format is valid as an EDI standard when used with EDI. However, translating IDocs into other standards has the advantage of allowing communication with even more partners.

Within the ERP System, only IDoc formats are used. All translations into other EDI Standards are performed by an EDI subsystem. The advantage of this is that SAP applications only have to recognize the IDoc format - not several EDI standards - making it easier to maintain. The disadvantage is that SAP does not supply an EDI subsystem and customers must purchase such a subsystem when other EDI standards are to be used.


© SAP AG 2008

EDI - IDoc Types

Control Record

Status Records

Data Records, represented as a segment tree

E1TLSUM

E1HDADR

E1ITSCH

E1HDDOC

E1ITDOCElternsegment

E1ITSCHC 5

E1ITDOCM 1

C 99

M 1

C 5

C 1

Each business process (for example, a purchase order), usually corresponds to a certain IDoc type, which includes the relevant data.

An IDoc type is defined by the segments and their hierarchy, sequence and frequency of use. This information is contained in the control section of the data records.

The segment hierarchy can be represented in tree form as parent and child segments, which allows the application data to be structured.

Summary: IDoc types are special data structures for special applications or messages. If such a structure contains application data, an IDoc is created (the instance of the IDoc type).


© SAP AG 2008

EDI - IDocs & BAPI´s for AFS

BAPI:• BAPI_REQUISITION_CREATE• BAPI_REQUISITION_CHANGE • BAPI_PO_CHANGE• BAPI_PO_CREATE1• /AFS/BAPI_PO_CREATE • /AFS/BAPI_PO_GETDETAIL

MM Inbound idocs:Message Type AFS IDOC Type Output Type Process Code Used forORDRSP /AFS/ORDERS05 ORDR Purchase Order Conf.DESADV /AFS/DELVRY03 DELS Inbound Delivery

INVOIC /AFS/INVOIC02 INVL Invoice

MM Outbound idocs:Message Type AFS IDOC Type Output Type Process Code Used forREQOTE /AFS/ORDERS05 NEU ME12 Request for QuotationORDERS /AFS/ORDERS05 NEU ME10 Purchase Order

ORDCHG /AFS/ORDERS05 NEU ME11 Purchase Order ChangeBLAORD /AFS/BLAORD03 J3AV /AFS/ME15 ContractBLAOCH /AFS/BLAORD03 J3AV /AFS/ME16 Contract Changes

Some IDoc types in the standard system have been adapted to support AFS functionality. Data is filled in the IDocs at SKU level.

There are also some BAPI´s enhanced to support AFS functionality.


© SAP AG 2008

ProductionPurchasing Sales/Distribution

Self-defined Info StructuresFactory Management Production/Sales

Info Structure: PurchasingCharacteristicsPlantMaterialVendor...Grid ValueCategory

Period Unit Key FigureMonthWeekDay...

PO QuantityPO ValueNo. of DeliveriesLast Purchase

Order ......

Standard Info Structures

AFS

Logistics Data Warehouse

LogisticsInformationWarehouse

The individual physical tables in the SAP Information Warehouse are called information structures. These tables, which are transparent to the end user, are described in the SAP Data Dictionary. There are two AFS info structures which are part of the Customer Shipment:

S430 AFS Sales and Distribution

S433 AFS Purchasing Info structure

Characteristics are those properties which categorize data within information structures. Statistical information is updated and aggregated around characteristics such as vendor, customer, or material. AFS info structures contain the AFS specific characteristics grid value and category.

Easy-to-use tools also allow you to group characteristics and key figures together to suit your needs, resulting in self-defined info structures which can then be supplied with data via separate update programs.


© SAP AG 2008

EKET

Information Structures

S012

EKPOEKKO

Purchase Order

EKETEKPO

EKKO

MCEKETMCEKPO

MCEKKO

S012/SAP

QtyValue

...

...

Analysis Program

Application 02PurchasingType: Standard

StandardAnalysis

InformationStructure

Update Rules

LISInterface

Application

An information structure is usually a statistical catchment area for individual or multiple business transactions.

Information structures of the type "standard" have one or more update programs. These copy data from the document that has been posted, calculate specific key figures from the data and write these key figures in aggregate form to the respective information structure at regular intervals.

The system generates update programs and standard analyses in accordance with your specifications.

LIS-Interface: AFS-specific fields like J_3ASIZE (Grid Value), J_4SKAT (Category) or J_3ASZGR (Price Group) have been appended to the most important Standard Communication Structures (MCEKET, MCVBEP, MCLIPS,...)


© SAP AG 2008

Maintain Self-Defined AFS-Information Structures (1)

CharacteristicsInfo Structure

VendorGrid ValueCategory

Purch. Order QuantityNet Value

Stock Transfer Quantity

Key Figures

S5nn 02

Trans. Table S5nn

... EKORG LIFNR MATNRDDICGenerate

Pick up

FIELD CATALOGS

Field

Vendor

Order quantity

Stock Transfer Qty

Source Field

MCEKKO-LIFNR

MCEKET-MENGE

MCEKET-MENGE

Reference Field

MCEKKO-LIFNR

MCEKKZ-MENGE

ZAMCEKKZ-UBMNG

Application

Purch. Organization

J_3ASIZE J_4KSCAT

Naming convention for self-defined information structures:

Assign a name which falls between S501 and S999

You can copy a standard system information structure (for example, S012 Purchasing):

The elements of the reference structure are then automatically copied to the new information structure. You can make changes to these proposals.

Add new characteristics from AFS field catalogs (JAFC, JVAC, JBCO, JEKE), for example:

Grid value (J_3ASIZE)

Season (J_3ASEAN)

Category (J_4KRCAT)

Select key figures, for example:

Order quantity

Quantity of goods received

Generate a new information structure:

The system automatically creates the description for a transparent table in the Data Dictionary, along with a database table



© SAP AG 2008

Maintain Self-Defined AFS-Information Structures (2)

Information StructureUpdate Group

Key Figures....

....

S5nnSAP

Quantity

Rules forcharact.

Updating for incoming order quantity

MCEKKO

Characteristics Source Table Source Field

MCEKPO

MCEKET

MCEKET

MCEKKO

MATNR

J_3ASIZE

J_4KSCAT

Vendor

Material

Grid Value

Category

Information StructureUpdate Group

Key Figures....

....

Rules for key figures

S5nnSAP

Quantity

Updating for Key Figure Quantity

Cumulative

Purch. Order

PO date

MCEKPO-...

Update type

Event

Date Field

Source Field

Create Updating Rules:

Determines when updating should take place (for example, when a purchase order is created).

Determines whether key figures should be cumulated (for example, order amount) or countered (for example, PO items).

If possible, copy the updating rules from a standard system information structure.

Generate the updating.

Activate the updating:

Choose the period unit (for example, weekly) to indicate when you want the information structure to be updated.

Choose the update type (asynchronous updating is recommended).



© SAP AG 2008

From Document to Analysis

Purchase OrderVendor: 1000PO Date: 05/15/06

10 pair Shoes 6 BLK Cat. 001A @ 110 1100

10 pair Shoes 6 RED Cat. 001A @ 100 1000

Info Structurein Purchasing

Vendor100010001100

MaterialShoesShoesShoes

Month05.0605.0605.06

PO Quantity135003220012700

Vendor: 1000Month: 05/06

PO Quantity135000322000

MaterialShoesShoes

Grid V.6 BLK6 RED6 BLK

Cat.001A001A001A

Material: ShoesGrid V.: 6 BLKCat.: 001AMonth: 05/06

PO Quantity

1350012700

Vendor

10001100

Grid Value Category6 BLK6 RED

001A001A

When a document is posted – as shown here in the above example of a purchase order - the key figures of the information structures of the corresponding characteristics combinations are updated.

If no data record exists in the information structure for the characteristics combination of the document, a new record is generated and the characteristics and key figures are entered.

If the characteristics combination already exists in the info structure, the key figures in the data line are increased or decreased.

The different analyses can generate lists for all kinds of characteristics combinations (including grid value and category) using data stored in the information structures.


© SAP AG 2008

Describe the third-party order processing procedure in AFS

Create a subcontract order for a finished product with a BOM

Describe the prerequisites for using purchase-to-order

Name the AFS IDOC message types specific to MM

Describe the process of creating information structures to handle information down to SKU level


Special Business Processes and Additional AFS Enhancements: Unit Summary


Exercise

Optional Unit: Special Business Processes and Other

Enhancements Topic: Subcontracting


• Create a subcontract order for a finished product with BOM

• Check ATP for the components

• Provide the subcontractor with the components they need to manufacture the finished product

• Post a goods receipt for the finished product

• Monitor the stock overview list

As you do not want to produce the casual coat TM-COAT## within your company GLOBAL FASHION, you use subcontract order processing. You provide your vendor VENDOR3-## with the components needed to manufacture 100 white coats in size 10 and 100 black coats in size 12. As soon as the subcontractor has finished the coats, they will be sent to your plant. The BOM of the coat contains the self material TM-SELF## (AFS material with another grid as header material), a lining TM-LINING## (AFS material with another grid as the header material), and some buttons TM-BUTTON## (AFS material without grid).

1-1 Run through the complete Subcontracting Process:

1-1-1 Check the BOM of end product TM-COAT## and the components that are used to subcontract 100 white coats in size 10 and 100 black coats in size 12.

Data Material TM-COAT## Plant 0001 BOM usage 1

BOM Application PP01


Fill in the information in the following table:

Component Grid Value Quantity coat 10WHT

Quantity coat 12BLK

Quantity - 100 white coats size 10 & 100 black coats size 12

TM-SELF## WHT

TM-SELF## BLK

TM-LINING## WHT

TM-LINING## BLK

TM-BUTTON##

---

1-1-2 Create a purchasing info record for your vendor VENDOR3 -## and your material TM-COAT##. Maintain the standard quantity and the net price. The planned delivery times can be maintained in the AFS additional data screen. Save your purchasing info record.

Data Purchasing organization 0001 Plant 0001 Info category Subcontracting Standard quantity 10 Net price 5 (USD)

Replenishment lead time 5 Manufacturing lead time 3 Packing lead time 1 Transportation lead time 5 Capacity offset lead time 2 Complexity factor 80 Set the preferred subcontracting indicator.

Note the info record number: _________________________

1-1-3 Create a subcontract order for 100 white coats in size 10 and 100 black coats in size 12. This order also contains the components the subcontractor needs to manufacture the finished products. Display the components and their quantity in the purchase order and check ATP.

Data Vendor VENDOR3-## Purchasing organization 0001 Purchasing group 001 Item category L (Subcontracting) Plant 0001 Material TM-COAT##

Note the number of the subcontract order: _________________________


1-1-4 In the purchasing subcontracting report, you can provide the components to the subcontractor. The subcontractor manufactures the end products using these components. Check the stock for the components.

Data Vendor VENDOR3-## Purchasing organization 0001 Material TM-COAT## Plant 0001

Material Grid Value Stock

TM-SELF## WHT

TM-SELF## BLK

TM-LINING## WHT

TM-LINING## BLK

TM-BUTTON## ---

Post a goods issue of the components from your stock to the stock of material provided to the vendor. Monitor the stock of material provided to the vendor.

Fill in the information in the following table:

Material Grid Value SC stock VENDOR

TM-SELF## WHT

TM-SELF## BLK

TM-LINING## WHT

TM-LINING## BLK

TM-BUTTON## ---

1-1-5 Post a goods receipt for the finished products with reference to the purchase order. At the same time, the system posts the consumption of the components. Monitor the stock of your plant 0001.

Data Movement type 101 Purchase order Your purchase order number Plant 0001 Storage location 0001


Fill in the information in the following form:

Material Grid Value

Stock in plant 0001

TM-COAT## WHT

TM-COAT## BLK

TM-SELF## WHT

TM-SELF## BLK

TM-LINING## WHT

TM-LINING## BLK

TM-BUTTON## ---

1-1-6 Only 12 buttons are used for one coat. Adjust the consumption for this order (2400 are used instead of 2600).


Exercise


Enhancements Topic: Third-Party Order (Direct Shipment)


• Create a sales order for a direct shipment (a third-party purchase requisition will be created automatically)

• Create a third-party purchase order referring to the third-party purchase requisition

• Post an invoice referring to the purchase order using Logistics Invoice Verification

• Create a billing document referring to the sales order

Your American customer CUST-USA orders 1000 pieces of blue T-shirts TM-SHIRT## of size XL. Because your vendor TM-SUPPA## (who normally produces these T-shirts) is located near this customer, you decide to pass on the order to this vendor who will dispatch the required T-shirts directly to your customer. After the vendor has sent the invoice to your company, you will charge the customer.

2-1 Run through the complete Third-Party Order process

2-1-1 Create a sales order for your customer CUST-USA.

Data Order Type: OR Sales Organization: 0001 Distribution Channel: 01 Division: 01 Sales Office: <blank> Sales Group: <blank> Customer: CUST-USA Purchase Order No.: PO## RqDlv.date: Today

Because the material TM-SHIRT## is usually not sold by use of third-party orders, you have to maintain the item category TAS in the Item overview manually. Also manually enter the net value after getting the incompletion log with condition type J3AP for the respective size/color.

Note the number of the sales order: ____________________________

2-1-2 A third-party purchase requisition with item category S is created automatically.

Note the number of the purchase requisition: _____________________


2-1-3 Convert the purchase requisition into a purchase order.


Note the number of the purchase order: ________________________

2-1-4 After your vendor TM-SUPPA## has notified that he has delivered the orders goods directly to your customer, you have to create a statistical goods receipt to close the requirement:

Data Movement Type: 101 Purchase Order: your purchase order number

2-1-5 The vendor has issued an invoice referring to your purchase order. Enter the invoice into the system. Use Logistics Invoice Verification:

Data Document date: Today Purchase Order: your purchase order number Company Code: 0001

Amount: 30,000 USD

Note the number of the invoice document: ________________________

2-1-6 Create a billing document for your customer referring to your sales order.

Note the number of the billing document: __________________________


Solution


Enhancements Topic: Subcontracting

1-1

1-1-1 To check the BOM select:

Logistics → Production → Master data → Bills of material → Bill of Material → Material BOM →Display

Enter TM-COAT##, plant 0001 and BOM usage 1. Use the <SKU data> button for displaying values at SKU level.

Component Grid Value Quantity per coat 10WHT

Quantity per coat 12BLK

Quantity for 100 white coats size 10 and 100 black coats size 12

TM-SELF## WHT 2,4 240

TM-SELF## BLK 2,5 250

TM-LINING## WHT 1,8 180

TM-LINING## BLK 1,9 190

TM-BUTTON## --- 13 13 2600

1-1-2 Create an info record for the material TM-COAT## and the vendor VENDOR3-##.

Logistics → Materials Management → Purchasing → Master data → Info record → Create

Key in the number of the material and of the vendor. Set the Info category to Subcontracting. Maintain the required data. <Purch. Org. date 1>. Press the button <SKU data> and <AFS Additional Data> to maintain the lead times and set the preferred subcontracting indicator.

Data Replenishment lead time 10 Manufacturing lead time 15 Transportation lead time 1 Packing lead time 10 Capacity offset lead time 2 Complexity factor 80


1-1-3 To create a subcontract order select:

Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor known

Enter the required data. In the Item Overview screen key in the material TM-COAT## and the quantity 200 (100 10WHT and 100 12BLK). The BOM is automatically exploded. To display the components and check availability select the item from the item overview and press the <component availability> button.

1-1-4 To provide the components to the subcontractor select:

Logistics → Materials Management → Purchasing → Purchase Order → Reporting → SC stocks per vendor

Enter the data as described.

Vendor: VENDOR3-##

Plant: 0001

To check the stock for the components: Execute and expand all. Flag a component and press the <Stock overview> button (make sure the PO is selected).

To post a goods issue of the components select all components and press the <Goods issue> button. Enter the storage location 0001 and choose the right batch number (grid value) confirm the defaulted quantity for all components.

1-1-5 To post a goods receipt for the finished products select:

Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement MIGO.

Enter the data as described. Save the document. Go to Stock Overview (TC: MMBE) to check the stock of your components in plant 0001.

Material Grid Value

Stock in plant 0001

TM-COAT## WHT 100

TM-COAT## BLK 100

TM-SELF## WHT 760

TM-SELF## BLK 750

TM-LINING## WHT 820

TM-LINING## BLK 810

TM-BUTTON## --- 7400

1-1-6 To adjust the consumption select:

Logistics → Materials Management → Inventory Management → Goods Movement → Subsequent adjustment → Subcontracting

Enter your PO number, copy both lines and adjust with -100 for every SKU. Save by Copy and ignore the message.


Solution


Enhancements Topic: Third-Party Order (Direct Shipment)

2-1 Run through the complete Third-Party Order process

2-1-1 To create a sales order select:

Logistics → Sales and Distribution → Sales → Order → Create

Enter Order Type and the other data, go to tabstrip AFS item overview, double click on the delivery date and enter the quantity with grid value BLU XL. Now click the tabstrip item overview and enter item category TAS. Save. Manually enter the net value after getting the incompletion log with condition type J3AP for the respective size/color.

2-1-2 A third-party purchase requisition with item category S is created automatically.

Logistics → Sales and Distribution → Sales → Order → Display

Mark your item in the AFS Item overview; go to the Menu: Goto→ Item→ Schedule lines and you see the Purchase Requisition number.

2-1-3 To convert the purchase requisition into a purchase order select:

Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor known → drag requisition into the shopping basket

2-1-4 To post a statistical goods receipt select:

Logistics → Materials management → Inventory management → Goods movement → Goods receipt MIGO

2-1-5 To enter the invoice select:

Logistics → Materials management → Logistics invoice verification → Document Entry → MIRO Enter invoice

2-1-6 To create a billing document select:

Logistics → Sales and Distribution → Billing → Billing document → Create


© SAP AG 2008

Product Forecasting Planning: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Production Forecasting and Planning

Contents:Transfer of Planning Data to AFS Demand Management

Presizing and Mapping


© SAP AG 2008

Transfer requirements from planning into AFS demand management

Run presizing for planned independent requirements

Describe the difference between distribution profiles and mapping profiles


Production Forecasting and Planning: Unit Objectives


© SAP AG 2008

Product Forecasting and Planning: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


© SAP AG 2008

At the start of the season, before sales data has been accumulated, we need to plan on components and capacities by creating independent requirements for a track shoe. From past sales figures, we know how to distribute the requirements across the size range

Production Forecasting and Planning: Business Scenario


© SAP AG 2008

Production Planning and Execution

Capacity

Production Master Data

Reporting and Analysis

Inventory Costing

Presizing

Mapping Sales OperationPlanning

FlexiblePlanning

APO(Advanced Planning

Optimizer)

Forecasting

Sales Planning

Production PlanningProductionSettlement Manufacturing

ExecutionDemand

ManagementMRP Order

Settlement

The production cycle can be initiated by planned demand. Historical sales figures can be used as input for planning future demand. Based on the sales planning, production plans can be developed and checked for feasibility, eg. regarding capacities.

The following production planning procedures are supported by AFS:

Sales and Operations Planning (SOP)

Flexible Planning

Advanced Planning and Optimizer- Demand Planning (APO-DP, please refer to the APO chapter). All these procedures are planned on material level, therefore the planning figures need to be drilled down to SKU level for AFS materials. (With SCM 5.0 / AFS 5.0 for DP it’s possible to set up the planning on SKU level.)

The planning figures are transferred to AFS Demand Management and broken down to the SKU level for AFS materials. Planned independent requirements on SKU level are created, distribution profiles for spreading the requirements may be used. Material Requirements Planning (MRP) can take care of the procurement based on the planned independent requirements. Incoming sales orders can consume the planned independent requirements.

For manufacturing execution factors - like capacity and available stock of raw materials - are taken into account.

Costs of the production orders are calculated and posted for order settlement.


© SAP AG 2008

Sales and Operations Planning (SOP)

SOP provides a method for:Sales planningProduction planningFeasibility assessment

May June July

TIME

QU

AN

TITY

Sales planProduction planCapacity estimateStock

The SOP and Flexible Planning components are planning tools within the ERP logistics area.

These planning methods are based on information structures. An information structure is a statistic file containing operational data. This can be either future planning data or actual data that happened in the past.

AFS supports the ERP Standard SOP based on the standard information structure S076. The relevant planning is level-by-level planning.

AFS also supports the transfer of demand from flexible planning.

Planning in SOP and Flexible Planning can only be done at material level – dimensions and categories are not supported in these planning tools.

Planning simulation can be done in different versions. Once the planning figures are transferred to demand management, the version best fitting the expected situation must be selected and copied as the active version.


© SAP AG 2008

Transfer Planning Data to AFS Demand Management

Transfer of Planning Data to Demand Management

SOP / Flexible Planning

ERP Standard

AFS

Planned Independent Requirements1 2 3

Quality

Material Level

SKU Level

APO-DP

Planning figures can be transferred for individual materials or product groups into AFS Demand Management.

While transferring the planning data to AFS Demand Management the planning figures on material level need to be broken down to SKU level. The distribution of the requirements to SKU level is done by taking distribution profiles into account which need to be defined before the transfer of the planning figures.

Distribution profiles can be created manually or by mapping historical data.

The requirements are taken over into AFS Demand Management as Planned Independent Requirements on SKU level.


© SAP AG 2008

Disaggregation and Presizing

4 5 6 etc.

Product Group 1TRACK SHOES

StyleAtlanta

StyleSydney

4 5 6 etc.

Distribution Profile

AFS Demand Planning

Production Forecasting

Presizing

1 2 3

QualityDistribution Profile

Disaggregation

Planning can be executed starting from a high-level viewpoint by using product groups. The planning figures are then disaggregated down to the next level and finally to the material level. The disaggregation is initiated by the user. Disaggregation stands for distribution of the planning figures of the product group to the lower levels while taking into account the defined rations for the SKU’s.

Planning is done at material level only. For distribution of the requirements to SKU level distribution profiles are used while transferring the planning data to AFS Demand Management.

The process of using distribution profiles for generating requirements on SKU level is called presizing. If no distribution profile was maintained for a material, the requirements will be distributed evenly across the SKU’s.


© SAP AG 2008

Presizing (1)

Client

Plant

Plant

Category

Category

Grid

Presizing

Client Level

Plant Level

Category Level

DimensionLevel

Planned IndependentRequirements

ExternalPlanning and

Forecast

The presizing functionality is used to distribute planned independent requirements from the highest organizational level all the way down to SKU level. The order of applied profiles is fixed: client level -> plant level -> category level -> dimension level

Once distribution profiles have been defined, they are applied automatically when carrying out presizing – given the distribution profiles are assigned in the material master and the requirements are within the SKU Level horizon.

Planned independent requirements may originate from various sources where planning is done on material level.


© SAP AG 2008

Presizing (2)

PlannedIndependent

Requirementsmaterial level

50%

Client Level1000 pc

Plant 0001500 pc

50%

Presizing

applying distribution rules

Distributed Requirements

SKU levelS BLKratio 20

60% 40%Category DOM

300 pc

Plant 0002500 pc

Category EXP200 pc

M BLUratio 30

M BLKratio 20

requirement datesPresizingperiod profile

Presizing spreads requirements to plants, categories and dimensions according to defined distribution profiles. Finally, period distribution profiles are applied to spread the requirements according to a specified distribution within a timeframe.

A period profile defines the distribution of requirements during a certain period. The period is split into parts, eg. four parts for a month. For each part, the ratio of weighting is defined which is used for multiplying the requirements in order to generate corresponding planned independent requirements.

Period profiles allow the simulation of time-dependent customer habits, eg.: consumers usually spend more money at the beginning of a month than towards the end of a month. The planned total of requirements for a month is then split into weeks or days according to the defined ratio in the period profile.

Periods need to be defined in Customizing.


© SAP AG 2008


Presizing - Distribution to SKUs (3)

Mapping

Sales Order

Request for Quotation

Multi-level Contract


Purchase Order

Planned Independent Requirements

Transfer to AFS Demand Management

SOP / FlexiblePlanning

Sales Information

System

ExternalSystem

Manual Setup

Presizing Run

Planning tables are supplied with information from the sales information system, external systems or manually.

Distribution profiles can either be set up manually or can be created by the mapping process based on data of the Sales Information System (SIS).

Sales and operations planning (SOP) and flexible planning are carried out at material level. While the planning data is transferred to AFS Demand Management, presizing is run by using distribution profiles created before the requirements are distributed from material level to SKU level.

Distribution profiles can also be used in the documents listed above for break-down of requirement totals on material level to SKU level - generally. If no distribution profiles were defined, presizing uses an even spread to create the requirements on SKU level.


© SAP AG 2008

Assigning Distribution Profiles in Material Master

AFS basic data

Plant profileCat. profileGrid profilePeriod profile

TP-SPREAD

Presizing

Mat.-independent distribution profile

AFS MRP

Cat. profileGrid profilePeriod profile

Presizing

You can maintain distribution profiles, e.g. grid distribution profiles, for one material, or material-independent profiles for a group of materials using the same grid.

The default version of a profile for individual applications, such as Purchasing or Sales, can be assigned to the material master record either in the AFS Basic Data or AFS MRP view, depending which level (client or plant) they apply to.

If no distribution profile was maintained, the requirements are spread evenly across the respective levels (plants, categories, dimensions, and periods).

Material-dependent distribution profiles are assigned to the material automatically.


© SAP AG 2008

Distribution of Requirements

Distribution: Examples for Grid ValuesTotal Quantity: 1800 pieces

S

1

16.7%

300

M

2

33.3%

600

L

2

33.3%

600

XL

1

16.7%

300

In order to calculate the distribution of requirements at SKU level, you can define a ratio between different grid values. In the above example, the ratio 1:2:2:1 is entered, and the system calculates the percentages for distribution accordingly.

For the distribution profiles at plant or category level a corresponding percentage needs to be defined for distribution of the requirements between valid plants and/or categories.


© SAP AG 2008

Mapping


M L XL ..SIS history

Mapping Profiles

Product 1Product 2Product x

Size SSize MSize L

Product AProduct BProduct x

Size MSize LSize XL

Source Target

The Mapping process enables the definition of distribution profiles based on historical sales data. The distribution of requirements on different levels can be determined based on the sales figures of one or several reference materials existing in the past.

Sales data gathered in the Sales Information System (SIS, information structure S430) is used as a basis. For example, a style from a previous season may be used as reference to generate distribution profiles for a future style. Mapping profiles can be based on the SIS history of several other materials, plants, periods, categories and dimensions.

Mapping profiles define which source information is mapped to which target information (materials or distribution profiles) – the ratio of SKU’s for the distribution profiles are then created referring to the historical data defined in the mapping profiles.


© SAP AG 2008

Mapping Profiles

Target

S

Mapping

Grid mapping profileMaster gridValid from date

JACKET

TP-GRIDMAP

01.01.2000

AFS Grid mapping profile

L

M

XL

Source

M

L

L

XL

M

S

Percent

20

100

50

100

50

80

Mapping profiles are maintained in Production Planning – AFS Profiles.

You can maintain mapping profiles for plants, materials, categories, grid values and periods.

In the example above, the sales data of the grid values are used as the basis for the calculation of a distribution profile.

Once the mapping profile is maintained the corresponding distribution profile can be maintained with reference to the SIS data. The time-range as well as the desired mapping profile needs to be entered before the system refers to the historical source data for calculation of the ratios for the distribution profile.


© SAP AG 2008

AFS Quantity and Distribution Calculation

Selection Criteria for- Timeframe- Transfer to Preplanning- Transfer to Distribution

SIS S430MANDT J_3ASIZE BASEM AEMENGE010 S RED ST 5010 M WHT ST 10010 2XLBLK ST 10010 2XLBLU ST 25

Planned IndependentRequirements

M 07.2002

S RED 5 STM WHT 10 ST2XL BLK 10 ST2XL BLU 25 ST


S RED 5M WHT 102XL BLK 102XL BLU 25

ratio

Transfer of data

Data of AFS information structure S430 can be used to calculate the distribution at grid value and category levels and to calculate planning requirements. This function enables quick usage of historical data and transfer of the data into a corresponding planning version.

The distribution calculation is a simplified option to use historical data when compared to the SIS calculation (Mapping). Following processes are supported:

calculation of the quantities of a material for a defined period on material or SKU level and transfer of the data in a planning version

calculation of the distribution on SKU level for a material in a distribution profile

For the transfer of data the information structure needs to be maintained with data. Therefore the indicator Matl statistics gr on tab strip Sales: sales org.2 needs to be set in the material master.

For the first step a structure of source and target materials must be set up. Various selection criteria can be defined for the source and target materials. If no specific grid value or category is defined you must enter an asterisk (*) in order to transfer all valid entries.

Different settings for each target material can be set up for the data transfer; e.g. period indicator, transfer of data on material or grid level, percentage of increase or decrease of the historical planning figures etc. The Planned Independent Requirements are created accordingly.

If Transfer to Size distribution is selected a material-dependent distribution profile is created using the historical sales quantities as ratios.


© SAP AG 2008

Transfer requirements from planning into AFS demand management

Run presizing for planned independent requirements

Describe the difference between distribution profiles and mapping profiles


Production Forecasting and Planning: Unit Summary


Exercise

Unit: Production Forecasting and Planning Topic: Presizing


• Create an independent distribution profile for the size range of the master grid

• Add the distribution profile to a material master

• Create independent requirements for the material

• Run presizing for the planned independent requirements

At the start of the season when we have not yet accumulated sales data, but already need to plan on components, we create independent requirements for a track shoe, TP-SHOE##. From past sales figures, we know how to distribute the requirements across the size range.

1-1 Create an independent distribution profile for the size range of your master grid SHOE. Remember to leave the field for material blank when you create the profile. Save your data.

Data

Size 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10

Weighting 5 5 15 15 20 25 25 25 20 15 15 10 5

Distribution profile TP-## Distribute requirements to Grid values Plant 0001 Category blank

Validation period * Version 00 Master grid SHOE


1-2 Create a material master for TP-SHOE## with reference to TP-SHOE. You can enter the distribution profile either on client level in the AFS Basic Data view or on plant level in the AFS MRP view.

Data Material TP-SHOE## Industry sector F (Apparel and Footwear) Plant 0001 Material type Trading goods Plant 0001 (copy from 0001) Sales organization 0001 (copy from 0001) Distribution channel 01 (copy from 01) Views Basic data 1

Basic data 2

AFS Basic data Master grid: SHOE Coverage strategy: none

AFS Status: Yes




AFS Sales data

Purchasing

MRP1

MRP2

MRP3

MRP4 AFS MRP Coverage strategy: none AFS status MRP: Yes Storage 1 Accounting 1


1-3 Create planned independent requirements for your new material. You want to sell 1,200 pieces of TP-SHOE##. Enter this quantity at material level (radio button) and save your data.

Data Material TP-SHOE## Plant 0001 Category blank Version 00

Reqmts date M, 3 months in the future Planned quantity 1200 pairs

Save the data, but do not set active.

1-4 Run presizing for the planned independent requirements of TP-SHOE##.

Data Source: Material TP-SHOE## Plant 0001 Distribute requirements to Grid values Output: Unflag simulation

1-5 Check the result of the presizing in the Overview screen of your planned independent requirements.


Solution

Unit: Production Forecasting and Planning Topic: Presizing

1-1 Create an independent distribution profile for the size range of your master grid SHOE. Remember to leave the field for material blank when you create the profile. Save your data. Create a material independent distribution profile for the size range of your master grid SHOE and enter the weighting for the sizes of the master grid.

Production → Production Planning → AFS Profiles → Distribution Profiles → Maintain

1-2 Create a material master for TP-SHOE## with reference to TP-SHOE. You can enter the distribution profile either on client level in the AFS Basic Data view or on plant level in the AFS MRP view. AFS materials are created in the standard path. Assign the distribution profile just created in the AFS Basic Data view or on plant level in the AFS MRP view.

Logistics → Production → Master data → Material master → Material → Create (general) → Immediately

1-3 Create planned independent requirements for your new material. You want to sell 1,200 pairs of TP-SHOE##. Enter this quantity at material level (radio button) and save your data.

Logistics → Production → Production Planning → Demand Management → AFS Planned Independent Requirements → Maintain

1-4 Run presizing for the planned independent requirements of TP-SHOE##.

Logistics → Production → Production Planning→ AFS Profiles → Presizing

Remember not to flag 'simulation'. Go back with green arrow. Exit function with yellow arrow.

1-5 Check the result of the presizing in the Overview screen of your planned independent requirements. By executing the presizing the weighting of the distribution profile was used to create the planned independent requirements on SKU level.

Logistics → Production → Production Planning → Demand Management → AFS Planned Independent Requirements → Display Select SKU level for Display.


© SAP AG 2008

MRP: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Material Requirements Planning (MRP)

Contents:Material Requirements Planning (MRP)

Material Master Parameters for MRP

Planning Execution

Evaluation of Planning Results

Analysis Tools & Reports

Consumption of Planned Independent Requirements


© SAP AG 2008

Outline MRP procedures

Outline the Material Master settings for MRP

Execute MRP & outline planning options

Evaluate the planning result usingAFS MRP list & AFS Stock/Requirements list

Analyze the planning results


Material Requirements Planning: Unit Objectives


© SAP AG 2008

MRP: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


© SAP AG 2008

Sales orders and planned independent requirements are being received

Material Requirements Planning needs to makesure that all materials are available at the requestedtime

Stock and planned receipts are compared with therequirements and resulting procurement proposalsare created

Material Requirements Planning - Business Scenario


© SAP AG 2008

MRP Overview - Standard ERP

MRP IndependentRequirements

Sales and Distribution Processing

DemandManagement

DependentRequirements

Reservations

ProductionOrder

Release

Execution

Confirmation

PlannedOrder

Convert

OrderSettlement

PurchaseRequisition

Warehouse

PurchasingFunctions

Purchase Orders

Schedule Lines

InvoiceVerification

The main task of Material Requirements Planning is the timely procurement of materials to fulfill internal and external requirements in time. The logistical cycle starts in Sales and Production Planning. Sales orders come in and forecasts of future sales are set up.

MRP analyzes the demand from sales orders and forecasts. If stock is needed then a planned order is created. A planned order consists of a suggested order quantity, a start date and a finish date. MRP can create purchase requisitions directly for purchased materials – depending on runtime settings.

The bill of material of the planned order is exploded, creating dependent requirements. These are later processed by MRP. In order to replenish stock, the planned order needs to be converted to a production order (if it is for a manufactured item) – or to a purchase requisition (if it is for a purchased or subcontracted item). When the planned order is converted to a production order, the dependent requirements for its components become reservations.


© SAP AG 2008

MRP IndependentRequirements

Sales and Distribution Processing

DemandManagement

DependentRequirements

Reservations

ProductionOrder

Release

Execution

Confirmation

PlannedOrder

Convert

OrderSettlement

PurchaseRequisition

Warehouse

PurchasingFunctions

Purchase Orders

Schedule Lines

InvoiceVerification

MRP Overview - AFS

Quality

1 2 3

Quality

1 2 3

Quality

1 2 3

Quality

1 2 3

Quality

1 2 3

Quality

1 2 3

Quality

1 2 3

Quality

1 2 3

The AFS materials have characteristic values below the material level – grid values and categories. These characteristics identify the actual SKU – Stock Keeping Unit. The main task of the MRP in AFS is to guarantee the material availability at SKU level.

The AFS MRP uniquely assigns requirement quantities to available stock using grid values and categories and / or creates procurement proposals, such as planned orders, at SKU level for non-existing stock. Both finished products and components are planned at SKU level.

Categories are dynamically assigned according to the definition in the coverage strategy. The allocation of grid values is not dynamic.

Supported MRP types in AFS: PD, ND, P1, P2, P3, J1, X0 AFS supports the planning strategy 40 – Planning with final assembly.

AFS supports following special procurement keys: 30 Subcontracting 40 Stock transfer (proc.from alter.plant) 70 Withdrawal from alternative plant 80 Production in alternative plant


© SAP AG 2008

MRP Interaction Standard MRP - AFS MRP

AFSMRP

AFS DependentRequirement

SourcingInternal/External

InventoryManagement

IndependentRequirement forAFS Material

Dependent Requirementsfor Standard-Materials

STDMRP

STDAFS

AFS MRP is run for AFS materials using grid values and categories.

Dependent requirements of standard materials are passed on to ERP Standard MRP automatically.


© SAP AG 2008

Material Master - AFS MRP View - General Data

Material TM-COAT Trench-Coat

Plant 0001 Plant 0001 - Germany

AFS MRP View

General Data

CoatCoverage strategy

AFS MRP Status

Coat

SKU lvl horizon

Consumption prio

Act. SLH Method 2

Single Grid value

ATP/MRP Check Method Category higher than Requested Delivery Date

SKU Round Quantity 2 Level Rounding

MRP Basic Data 2

MRP Basic Data 1

There are standard views MRP1 to MRP4 – the settings on these views are valid on material level.

AFS MRP View – General Data The settings on the AFS MRP View are valid on SKU level. AFS MRP Status – once this button is activated, the coverage strategy can no longer be changed. For MRP of AFS materials this button needs to be active.

Flag: Single Grid Value For all values in a grid, provided they share the same requirement date, a single purchase/planned order will be created by default. If “single grid value” is flagged, an individual purchase/planned order is created for each grid value or SKU, regardless of the requirement date. Grid values or SKU´s might be grouped together as desired. AFS provides lot size keys which will result in the creation of several planned orders, each containing a dimension group. By defining the same key for several dimensions a group is built – see slide Master Data – AFS MRP View – SKU data.


Flag: 2 Level Rounding / SKU Round quantity If two-level-rounding is activated, MRP will first round at SKU level and then at material level. The rounding level at SKU level is the same for all SKUs, the material rounding value must be a multiple of the SKU rounding value.

Flag: Act.SLH Meth.2 see slides AFS MRP SKU-Level-Horizon Method 1 and AFS MRP–SKU-Level-Horizon Method 2

Flag: Consumption Prio see slide AFS MRP – Consumption of Planned Independent Requirements by Sales Orders

Flag: ATP/MRP-ChkMthd see slide AFS MRP – AFS MRP Search Method


© SAP AG 2008

Material Master - AFS MRP View - SKU Data



AFS MRP View

SKU Data

MRP Additional Data

000WHT14

000BLK14

000WHT12

000BLK12

000WHT10

00200BLK10

AFS SKUstatusSKU groupRound.valueMin.lotsizeSafety stockColorSize

Attention: The fields of the coverage strategy and the dimensions need to be relevant – otherwise the maintenance of the characteristics on category level is limited on the AFS MRP view.

Safety Stock can be defined either on material level or on SKU level.

Rounding value can be entered either on material level or on SKU level.

SKU group – SKU values can be combined into groups by assigning the same group name – SKU groups are only taken into account with the AFS specific lot size procedures X1-XC !


AFS specific lot size procedures: Requirements Distribution Ratio (X1-X3): The percentage ratio between the total requirements quantity and the requirements quantity per SKU value is determined, based on a time-period. Procurement proposals are created during MRP, the quantity per SKU value is determined according to previously calculated percentage ratio. SKU group Procedure 1 (X4-X6) – corresponds to the lot-size procedure Requirements Distribution Ratio – but takes SKU groups into account. SKU group Procedure 2 (XA-XC) – this procedure is used to optimize the cutting process by considering the material efficiency for size combinations in the marker. Please see AFS Online Help for details.

AFS SKU status -> ATP / MRP Status for SKU´s ATP: ATP can be done on SKU level with respective replenishment lead times on SKU level. The definition of the replenishment lead time can be based on SKU groups – it is possible to define a reference SKU value for the SKU group – the replenishment lead time of this reference SKU value is valid for the whole SKU group. MRP: Further material planning can be stopped so no procurement proposals are created during MRP.


© SAP AG 2008

Material Master - AFS MRP View - Lot Size Procedures & Consistency Check

MinimumLotsize

MinimumLotsize

RoundingFactor

Safety Stock

Materiallevel Maximum

LotsizeFixedLotsize

RoundingFactor

SafetyStock

ba

c

SKU level

d d

d

Quality

1 2 3

Some MRP parameters can be set at both the material and SKU level. The system needs to check whether both levels include consistent information. The check happens while entering the parameters in the material master – depending on the check results error and warning or information-messages that are shown.

max. lot size on material level = min. lot size on SKU-level OK max. lot size on material level > min. lot size on SKU-level OK max. lot size on material level < min. lot size on SKU-level ERROR message

SKU min. lot size > fixed lot size on material level ERROR message SKU min. lot size </= fixed lot size on material level OK Minimum lot size at SKU level is not supported when fixed lot size is maintained. Even if minimum lot size is maintained at SKU level, MRP does not consider it while creating the stock proposal. The fixed lot size is calculated at material level, summing up different dimensions.

(c) max. lot size on material level < rounding value on SKU-leve ERROR message

max. lot size on material level >/= rounding value on SKU-level WARNING, OK The first time we maintain a rounding value on SKU-level a warning message is issued regardless of whether it is less than or equal to the maximum lot size at material level. After rounding at SKU level the total quantity is checked against the maximum lot size. The maximum lotsize overrides the SKU level rounding. That’s why the warning message appears.

(d) differing entries in these parameters are not allowed, an ERROR message is issued


© SAP AG 2008

Material Master - AFS MRP View - Discontinuation

Material TM-Fabric-01 Fabric for Shirts - Cotton


AFS MRP View

Discontinous Parts

MRP Additional Data

TM-FABRIC-01 PEA01.06.2002GRE

TM-FABRIC-02 WHT15.08.2002WHT

TM-FABRIC-02 BLK15.08.2002BLK

Follow-up materialEff.-out dateColor Follow-up material

AFS supports discontinuation of materials at SKU level (AFS MRP View – Discontinuation Ctrl). The discontinuation is implemented according to the ERP Standard logic:

for planned independent requirements (header material) exception messages are created if discontinuation is defined

for dependent requirements of components the requirements are assigned to the follow-up material automatically – existing stock of the original material is consumed first

only dependent requirements or reservations are automatically redirected to the follow-up material

Prerequisites are:

AFS materials use same base unit of measure

AFS materials use the same grid

AFS materials use the same coverage strategy

AFS materials can also be followed by a standard material at material level (MRP 4 View – Standard fields).

The discontinuation can also be used if new grid values are added – eg. Size 38 is followed by Size 38/40 – the follow-up material is the same as the original material – only the grid values differ.


© SAP AG 2008

Material Master - AFS MRP View - Time-Phased Special Procurement Key

Material TM-COAT


MRP 2

Trench-Coat

Coat

Plant 0001

Material TM-COATProcurement F

Special procurement 7

Start Date 01052002

End Date 30062002

SpecProcurement 40

Procuring Plant 0010

Insert a record

Execute report /AFS/Maintain_SOBSL

Enter time-dependentrecords

General Data

MRP Basic Data 1Procurement type FSpecial procurement 40

00054031.12.200201.07.20027FTM-COAT0001

00104030.06.200201.05.20027FTM-COAT0001

PlantS...DateDateS...P...MaterialPlant

SOBSL Data

Time phased Special Procurement Key settings are supported – eg.: The sewing operation can be carried out in plant 5000 in March but in plant 4000 in April.

The following special procurement keys can be maintained based on differing time phases:

40 (stock transfer – procurement from alternative plant)

70 (withdrawal from alternative plant)

80 (production in alternative plant)

On MRP 2 view the Special Procurement Key is defined. AFS time-phased settings are defined by executing the report /AFS/Maintain_SOBSL (transaction se38).

For Special Procurement Key 70, the material needs to exist in the supplying plant.

For Special Procurement Key 80, the bill of material needs to exist.


© SAP AG 2008

Material Master - Phantom Assembly

Shoe(AFS Material)

Leather(AFS Material)

Sole(AFS Material)

Heel(AFS Material)

Leather(AFS Material)

Phantom Item

MRP

MRP

No MRP

Thread(AFS Material)

AFS supports phantom assemblies.

When applying phantom assemblies a BOM is exploded across all levels. The phantom item itself is not MRP relevant. MRP is executed for the components of the phantom item.

Example: The material TP-SHOE is manufactured in plant 0001 and in plant 0010. Plant 0001 is producing the soles. Plant 0010 is using the complete sole, the sole is handled as a phantom item in this case.

The phantom assembly can be defined in the material master on plant level by using special procurement key 50. It is also possible to define the phantom assembly in the BOM.

You cannot change the quantity of the phantom assembly in a planned order or production order.

If you delete a phantom item in a production order the components of the phantom item are deleted as well.

Unlike ERP standard, if you add a phantom assembly to a planned order or a production order manually, BOM explosion will occur, and the phantom assembly will be treated as a normal component.


© SAP AG 2008

AFS MRP - Planning Execution

AFS MRP: Online (Total Planning)

Plant

AFS MRP: Background Processing(Total Planning) Plant

AFS MRP: Online (AFS Single Item Planning)Material

There are two ways to carry out planning in both SAP standard and AFS:

TOTAL PLANNING

- planning run for all materials of one or more plants (online / background)

SINGLE-ITEM PLANNING

- planning run for one material (online)- single or multi-level

AFS MRP is based on a net requirements calculation – there are two options:

Net change planning in the planning horizon

Regenerative planning

AFS materials are only planned through the end of the planning horizon – planning an entire horizon as in SAP standard is not supported.

Due to the specific data structure of AFS materials the logic of requirement and stock allocation differs from SAP standard. The Parameter AFS MRP Search Method in the material master controls how categories and the customer´s requested delivery date are considered during stock allocation (see slide AFS MRP – AFS MRP Search Method).

TOTAL PLANNING

The SAP standard transaction can be used for planning both standard and AFS materials for one or several plants together. To plan AFS materials in the total planning run, parallel processing needs to be activated (customizing). The total planning run updates the standard planning file MDVM for standard materials as well as for AFS materials


© SAP AG 2008

AFS MRP - Single Item Planning

MRP System Help

AFS MRP – Single Item / single-level / multi-level

MRP Settings Save settingsDelete settings

Create Pur. requisition 3 Planned Orders

Planning mode 3 Delete and recreate planning data

Scheduling 2 Lead time scheduling and capacity planning

Also plan unchanged componentsDisplay MRP resultDisplay material list

Plant 0001Material TM-COAT Old Stock/Requir. List

Compress

AFS-MRP control parameters

Process control parameters

SINGLE-ITEM PLANNING (single-level / multi-level)

There is a separate planning run for the single-item planning of AFS materials.

This planning run can be carried out at single-level or multilevel basis (flag the parameter Also plan unchanged for execution on multilevel).

To carry out a regenerative planning the MRP control parameter Planning mode needs to be set to reset planning data.

The planning run creates supply to meet demand (requirements). Requirement assignments to stock are saved in the assignment table.

Start Screen Single-Item Planning

User Dependent Settings: The parameter settings of the MRP entry screens can be saved.

Compress: The function compress helps to compress the MRP list display according to different criteria.

Grid value / Category filter: With the grid value / category filter AFS specific data, such as stock and requirements category and grid values can be selected to reduce the amount of data displayed on the MRP list, eg.: Display all blue T-SHIRTS in quality 1A. AFS Filter and Sort/Compress can be used in combination.

With release 5.0 the following transactions are replaced with new transactions: J3AD -> /AFS/MD02: AFS MRP Single-Item Planning J4AD -> /AFS/MD04: AFS Stock/Requirements List J4A ] -> /AFS/MD06: AFS Display of MRP list


© SAP AG 2008

AFS MRP - Evaluation of Planning Result (1)

T – Temporarily assigned stock/requirements

Sorting

AFS Stock/Requirements List

Own LayoutsSearch/FilterDetails MRP element

40

200000008801

DOMSS1DOMSS114.02.200210RED3800100010010692648A25.02.2002001001

DOMSS1EXPSS114.02.20025BLK3600010000011516C25.02.2002001001

DOMSS1EXPSS114.02.20025BLK3600010000011516C18.02.20020010000000880101

200000006798

EXPSS1EXPSS101.03.200210WHT360010010692651A01.03.20020010PB

EXPSS1EXPSS114.02.200210BLK3600010000011525C01.03.200200100000006798PB

CategoryCategoryMat. availableQtyColorSizeEMSlocStock/SupplySt..Del.DateItemOrder numberRqTy

Total / Subtotals

I-Additional InfoT-Temporarily assignedAFS MRP Status

AFS provides various options to evaluate the planning results:

On the one hand there are evaluation options developed specifically for AFS – such as AFS MRP list and AFS Stock/Requirements list. There are also specific AFS functions for analyzing the planning results.

On the other hand standard evaluations can be used – they have been partially enhanced by AFS specific data (grid values and categories), e,g. MD04/MD05.

AFS MRP result screen / AFS MRP list The AFS MRP result screen and AFS MRP list display the result of the latest or last planning run taking into account the AFS specific data (grid values and categories). Requirement shortages are displayed on SKU level. The MRP statuses help to understand the stock/requirement situation.

Layout Options

- information fields can be added or hidden

- sorting and filter options can be defined

- options for displaying totals and subtotals

- list display options can be selected (colored blocks, etc.)

- the layout can be changed for the actual session or saved permanently or user-dependent

Exception Messages

- exceptional situations are indicated per SKU


Required Components

- function Display BOM to call required components (both AFS and standard) per MRP element

Technical Logfile By using the logfile J_3AMPRO an error analysis of the AFS MRP run can be run in the background.


© SAP AG 2008

AFS MRP - Evaluation of Planning Results (2)

AFS Stock/Requirements list - AFS Filter

Plant 0001MRP type PD


T – Temporarily assigned stock/requirements

20

200000008801

DOM10BLK3800100010010692648A25.02.2002001001

EXP5BLK3600010000011516C18.02.20020010000000880101

EXP10BLK3600010000011525C01.03.200200100000006798PB

Cat.QtyColor SizeEM SlocStock/SupplySt.Del.DateItemOrder numberRqTy

I-Additional InfoT-Temporarily assigned

filteredresult

TM-COATTP-SHIRTTM-POLO

Traf Light Material

Hide overview tree

T – Temporarily assigned stock/requirementsFilter for Grid Values and Categories

Size

Color

Reqmt.category

Stock category

36

BLK

38

BLK

to

to

to

to

AFS Stock/Requirement list

The AFS Stock/Requirement list is continuously updated – changes are displayed in the list directly.

Overview Tree & AFS Filter AFS Filter offers the option to filter according to grid values and categories. The Overview Tree collects all the materials the MRP list was displayed for in the actual session.

The scope of function of the AFS Stock/Requirements list corresponds to that of the AFS MRP list.

Excess supply (eg.: requirements) is seen with "B" MRP Status. No new supply is created to meet demand. Requirement assignments to stock are NOT saved.

Fixed planned orders and fixed purchase requisitions are identified with a padlock symbol. This helps to distinguish manually created procurement proposals from proposals generated by MRP. Fixed procurement proposals cannot be changed by MRP anymore.


© SAP AG 2008

ARun(normalmode)

Deliverycreation

Delivery ChangePost Goods Issue

SalesOrder

Reduce Quantity(Picking)

D

Stock/futurereceiptsavailable

A F D RequirementDeleted

No stock/futurereceiptsavailable yet

B

R

MRP STATUS (as on requirement record)

EVENT

T

AFS MRP - Status Event Flow

MRP

Status A

Unrestricted-use stock – if no stock or future receipt is available, MRP creates a procurement proposal which can then be assigned

Status T

Temporary assignment of requirements to stock

Status B

Blocked Stock - MRP list: requirements which could not be taken into account during latest MRP run

Blocked Stock - Stock/Requirements list: no stock could be assigned for new requirements, MRP was not run yet

Status F

Fixed stock – ready for delivery – allocation run was carried out.

Only unrestricted stock can create an assignment with an MRP status of "F“

Status R

Reserved stock by allocation run – only partially confirmed requirements – allocation of future receipts

Status D

Assignment by delivery note – delivery in Sales already carried out.


Status I

Statistical overview of latest planning run

Status E

Sales order stock – make-to-order production or purchase-to-order procurement

Status N

Stock with account assignment but no requirement, eg. Sales order (make to order) was rejected

Status S

Third-party order processing

Status K

Vendor consignment

Status P

Requirements outside of the planning horizon

Status 3

Consumed planned independent requirements – called via menu

Go to -> reduced planned requirements


© SAP AG 2008

Standard Stock/Requirements List for AFS Material (1)

Standard Stock/Requirements List

Standard Stock/Requirements List

The Standard SRL can be used for AFS material. All SKU level data are integrated (grid value, category value). For AFS material additional the AFS Filter can be used, as well the conversion typ.

In addition there is the option to display the period totals for an overview in detail (summary icon).

Requirements and receipts are displayed for the selected time range (days, weeks, months). The period details show the exact MRP elements with the corresponding quantities.


© SAP AG 2008

Standard Stock/Requirements List for AFS Material (2)

Collective Display: Stock/Requirements List

Plant 0001 Plant GermanyMRP Controller 001 Scott Fisher

AFS MRP ListSelected stock/requirements lists

FHAWAPC10666T-Shirt round neckTM-POLO_2

FHAWAPC6529,29,29,2T-ShirtTM-POLO

FFERTPC0999,9999,922,0-Women 5-Pocket TP-PANTS

FFERTPC2023999,9999,99,2-Polo ShirtTP-SHIRT

PTMtypBunstock876543212nd1stSupplyMaterial descrip.MaterialLight

Collective Display of the Standard MRP list The collective display can be used to analyze exception messages for an AFS material and to check their origin. The analysis can be carried out down to the grid value and category level. For each planned AFS material the total of created exception messages per exception group is listed.

Current Standard Stock/Requirements list The Standard MRP list can be used for AFS materials to a certain extent for displaying the planning result at material level. Category and grid values can be displayed by choosing AFS SKU Detail – it is also possible to call the AFS Stock/Requirement list.

Collective Display of the Standard Stock/Requirements list Limited overview of stock/requirement situation of the AFS materials according to chosen selection criteria. It is not possible to use this function for analyzing exception messages created during the last AFS planning run – the total of displayed exception messages per exception group refers to the standard MRP run.


© SAP AG 2008

AFS MRP - Negative Stocks


Plant 0001MRP type PD

MType ROHLotsize EX

Material TC-FABRIC Cotton FabricUnit PCTC-FABRIC

TM-BUTTONTM-SHIRT

Material

Show overview tree

T – temporarily assigned stock/requirements

NB - negative stocks

overview tree

I-Additional InfoT-Temporarily assigned

10GRE0000088036P29.06.200200010001002845FA

10RED0000088036P29.06.200200010001002842FA

90BLK030..0000088034P15.06.200200010001002844FA

10BLK030..0000088034P06.06.200200000000001522NB

0000SKU-Level

QtyColorEMSlocStock/SupplySt.Del. DateItemOrder numberRqTy

Negative Stock balances can only result if they are allowed on the following levels:

valuation area level

storage location level

material master view plant data/storage 2 ; parameter negative stocks allowed in plant needs to be flagged to indicate that negative stocks of the material are allowed at the plant

Negative stock on valuation area and storage location level can be allowed in the following customizing entry: Materials Management – Inventory Management and Physical Inventory – Goods Issue/Transfer Postings – Allow Negative Stocks

Negative stock levels are already allowed for special stocks if negative stocks have been activated in the valuation area and for the special stock in question in the plant. You do not have to activate them in each material master record.

AFS provides the display of negative stocks on the AFS MRP list as well as on the AFS stock/requirements list. The requirement type NB indicates the negative stocks.

Procurement proposals are generated by MRP for the negative stock quantities.


© SAP AG 2008

AFS MRP - SKU-Level-Horizon Method 1

Stock

Requirement

SKU Horizon 1 RLT

Time300 Pcs

XL300 Pcs

M

800 PcsM

400 PcsL

Coveragenot

possible

Coveragenot

possible

Coveragepossible

at materiallevel

within horizon outside horizon

200 Pcs(no gridvalue)

Incoming Stock 1 Incoming Stock 2Incoming Stock 3 Incoming Stock 4

Coveragepossible

at materiallevel

AFS MRP handles the assignment of requirements to stock at material and SKU level differently depending on whether they lie within the SKU level horizon.

Also, AFS ATP uses the SKU level horizon to determine when to search for exact SKU matches and when to search at material level.

SKU- level-horizon method 1 Any demand entered with a requirement date later than the SKU-level-horizon will be planned and displayed on material-level. The SKUs of stock outside the horizon can be disregarded for ATP or MRP. A requirement that is outside the SKU horizon cannot be assigned to stock that is within the SKU horizon.

The SKU-level-horizon indicates the number of workdays always counted from the current date. SKU-level-horizon method 1 may be entered globally for a plant in Customizing (Production – MRP – Plant Parameters – Define General AFS Specific Control Parameters) or for a material in the AFS MRP view. The material master settings are first priority.

The end of the SKU horizon is displayed in the AFS MRP list in the column additional information.

ERP Standard requires you to enter a quantity for each BOM line item. In AFS you can enter deviation or zero quantities at SKU level. The line value is the quantity used in MRP when planning on material level past the SKU-level-horizon when using method 1.


© SAP AG 2008

AFS MRP - SKU-Level-Horizon Method 2

Stock

Requirement

SKU Horizon 2 - MRP

Assignment Phase 1:at SKU Level

Assignment Phase 2:at Material Level

300 pcsXL

300 pcsM

800 pcsM

500 pcs(no gridvalue)

Coverage notpossible

(different SKUs)

Coverage 1sameSKU

Coverage 3at material level

200 pcsM

Coverage 2same SKU

Incoming Stock 1 Incoming Stock 2

Incoming Stock 3

Incoming Stock 4

within horizon outside horizon

The SKU horizon method 2 is an enhancement of the SKU horizon method 1.

MRP MRP assigns the requirements to stock in two assignment phases. Within the first assignment phase, MRP searches for available stock at SKU level and assigns it to the requirement. If the system does not find further stock at SKU level, it aggregates the SKU data in assignment phase two and assigns the requirement to the stock at material level. In contrast to Method 1, requirements that are outside of the SKU horizon can be assigned to stock within the SKU horizon. The SKU method 2 is only valid for MRP if the indicator Activate SLH Method 2 on AFS MRP view in material master is set. For SKU method 1 only the SKU horizon needs to be entered.

ATP Requirements that have a requested delivery date that is not within the SKU horizon are confirmed by ATP on material level, eg.: a requirement can be confirmed because of incoming stock in the form of a purchase order, in which no SKU data has yet to be transferred. If the requested delivery date is within the SKU horizon, stock will be confirmed by ATP at SKU level. To activate method 2 for the ATP check the SKU horizon needs to be entered for each ATP check rule (customizing) and the indicator Activate SLH Method 2 on AFS MRP view in the material master needs to be set. For the ATP check only method 2 can be used.

It is recommended to enter the same number of workdays for the SKU horizon 2 in MRP as well as in ATP.


© SAP AG 2008

AFS MRP - AFS MRP Search Method

Parameter Setting = “C“

Require-ment400 piecesCategory A

Date

Stock300 piecesCategory A

Stock 100 piecesCategory C


Stock100 piecesCategory B

DateRequire-ment400 piecesCategory A


Stock 100 piecesCategory A



Parameter Setting = “ “

The ATP/MRP Method controls whether the category or the customer's requested delivery date should have higher priority when covering a requirement. This method plays a particularly important role if AFS materials are using a coverage strategy which allows the coverage of a certain requirement category with more than one stock category.

Requested delivery date higher than Category “C” The system tries to cover the requirement for the requested delivery date, if possible. That means that the system checks all of the available categories for a certain date before it proceeds to the next date within the Replenishment Lead Time or ATP search horizon.The system first checks whether there is stock (in any category) available for the requested delivery date. If so, the stock will be assigned, regardless of its allowed category.

Category higher than requested delivery date “ “ The system always tries to cover the requirement with the stock category that comes first in the stock/requirements assignment sequence defined for the coverage strategy. That means that the system checks whether or not the desired category is available within the entire replenishment lead time (RLT) or ATP search horizon . It will only check the other permitted categories if the result of this check is negative. The next available (incoming) stock will be assigned to the requirement, regardless of whether or not the requirement can be confirmed for the requested delivery date.

ATP: If the RLT for your material is active, the availability check will be executed either until the end of the RLT or the end of the ATP search horizon (if the latter is shorter than the RLT). The ATP/MRP check method can be controlled for each ATP checking rule in Customizing or in the AFS MRP 1 view. The setting in the ATP checking rule has higher ranking than the setting in the material master.

MRP : The AFS/MRP method used during MRP is defined in the material master.


© SAP AG 2008

AFS Analysis: Order Report/Pegged Requirements (1)

Order Report


000100000000056401Suit00010001T1

0000010000005841SBFabric00010001T3

0000010000005840SBJacket00010001T2

000100000000056401Suit00010001T1

ItemRequirementRtypMaterialPlan. PlantPlantStatusLevel

WHT100000010000005840P

BLK0000100010001708A010

BLK100000010000005841P

BLK100000010000005840P

Dimension 2Dimension 1ItemStockStock typeExceptn. Message

The order report is an evaluation that provides an overview of the current status of requirements. This includes independent requirements or sales orders across various BOM levels, so that any problems that may have arisen in the production or procurement of composite groups or components can easily be detected.

The MRP controller can see if shortages exist for certain components or if deadlines cannot be met for specific components on a particular BOM level.

Different situations are displayed by highlighting of the respective requirement / stock elements:

Red highlighting of stock element: exception situation(s) exist on the level(s) below

Red highlighting of requ. element: the requirement cannot be fulfilled by stock in time or no stock element exists for the respective requirement element

White highlighting of requ.element: the requirement is fulfilled by stock at the highest level. The stock can be immediately withdrawn. The respective stock element is highlighted by blue.

Green highlighting: stock elements have been created for the level below, no exception situations occurred

No highlighting: there is no further level to drill down to for that requirement / stock element


© SAP AG 2008

AFS Analysis: Order Report/Pegged Requirements (2)

(continued from previous slide)

MLABEL-1-DEMLABEL-1-DE15.09.2002PC150,000

28.08.2002M210,000

MLABEL-1-EUMLABEL-1-DE14.09.200214.09.2002PC100,000

MLABEL-1-EUMLABEL-1-DE15.02.200215.09.2002PC100,000

Stock Cat.Requirement Cat.Avail. DateRequ. DateUnitQuantity

With the evaluation, ‘pegged requirements’, it is possible to re-trace which requirements are the source of which order proposal and which requirements (especially sales orders) will be affected if an order proposal is cancelled or quantities are changed.

SKU data is taken into account within the pegged requirement report as well as within the order report.

Both reports may be applied within the AFS MRP result screen as well as the AFS application path. Via the menu path: Settings - Display the display of the order report can be changed by user.


© SAP AG 2008

AFS Analysis: Standard Evaluation/Planning Situation

Material........TM-COAT Trench-CoatPlant.............0001 Plant GermanySegments.....Net

Time axis

Prod.order

Receipts

Issues

Ind. Requirmts.

Order

Available qtyATP qtyCumulated ATP

W 40 02 W 41 02 M 10 02

240 0 0

0 0 0 240 0 0

240 0 0

300- 180- 120-

0 180- 120-

0 180- 120-

300- 0 0

300- 0 0

60- 240- 360-60- 0 0

60- 60- 60-

Evaluation of the Planning Situation

AFS Detail Data


Unit of measure

PC

Material TM-FABRIC-01 Fabric for Shirts - Cotton


Unit of measure M

Material TM-FABRIC-01 Fabric for Shirts - CottonTM-FABRIC-01

24007000001004044/PP01Prod.order01.10.2002

24007000001004044/PP01Prod.order01.10.2002

4001.10.2002WHT4261000001004044F

4001.10.2002BLK4251000001004044F

4001.10.2002WHT4041000001004044F

4001.10.2002BLK4031000001004044F

4001.10.2002WHT3821000001004044F

4001.10.2002BLK3811000001004044F

QtyDateGV2GV1Sch...ItemStock no.S

PlannedProduced inhouse

Planned

Fixed external

The evaluation provides an overview of the available quantity of an AFS material used for requirements coverage within a certain period. It is also possible to carry out the evaluation for a product group. The evaluation is based on the data material of the AFS Stock/Requirements list. Stock elements, such as planned orders, are compared to requirement elements, such as sales orders, followed by confirmation in the availability check (ATP).

Navigation on screen

Receipts and Issues are summarized – by clicking on the highlighted lines you can see the details, eg.: receipts – which planned orders and which production orders are scheduled issues, which Planned Independent Requirements and sales orders are causing the requirements

Time axis – by clicking on the highlighted time periods you can switch between monthly, weekly and daily display

Quantities – by clicking on the actual quantities for receipts or issues the details of the MRP elements are shown in a pop-up


© SAP AG 2008

AFS MRP - Consumption of Independent Requirements by Sales Orders

IndependentRequirements

Sales Orders Backward consumption interval

Forward consumption interval

DeliverySales Order EntryPl.Indep.Req’s100 piecesMLABEL-1-EU

Pl.Indep.Req’s40 piecesMLABEL-1-EU

Sales Order 140 piecesMLABEL-1-DE

Sales Order 220 piecesMLABEL-1-FR

Sales Order 220 piecesMLABEL-1-FR

Sales Order 140 piecesMLABEL-1-DE

The consumption mode (MRP 3 view) defines the direction on the time axis in which the system consumes requirements.

Backward Consumption: Sales Orders, dependent requirements or reservations will consume planned independent requirements that lie within the consumption interval before the requirements date.

Forward Consumption: Sales Orders, dependent requirements or reservations will consume planned independent requirements that lie within the consumption interval after the requirements date. The consumption can take place either backward or forward or in a combination of both modes.

The consumption intervals (MRP 3 view) define the consumption period (in workdays) for forward and/or backward consumption.

AFS consumption priority In addition to the standard consumption modes, the consumption priority on AFS MRP view can be used. The consumption priority parameter allows consumption in dependence of the categories. The consumption of requirement and stock categories is defined in the coverage strategy. There are the following options:

Priority according to category (without consumption mode)

Priority 1: category / 2: consumption mode

Priority according to consumption mode (without categories)

Priority 1: consumption mode / 2: category

see F1 help for examples


© SAP AG 2008

Material Requirements Planning: Unit Summary

You should now be able to:Outline MRP procedures

Outline the Material Master settings for MRP

Execute MRP & outline planning options

Evaluate the planning result usingAFS MRP list & AFS Stock/Requirements list

Evaluate the planning results using the SAP standardMRP & Stock/Requirements list

Analyze the planning results


Exercises

Unit: Material Requirements Planning Topic: MRP


• Add a consumption mode, period and consumption priority to the material master record

• Enter planned independent requirements for an AFS material

• Run MRP and review the impact of the category set-up on MRP

• Consume planned independent requirements with a sales order

• Interpret MRP Status after Goods Receipt, Allocation Run and creating Delivery

Planned independent requirements have been entered for the sweatshirt TP-SWEAT##. They are consumed by incoming sales orders according to the definition of the coverage strategy. To facilitate the checking we will only work with a size M. The sales order will be processed until Goods Issue – the MRP status will show the current status of the order.

1-1 Add the consumption mode, consumption period, consumption priority and coverage strategy to your material master for TP-SWEAT##.

Data

Material TP-SWEAT##

Plant 0001

Views

MRP 3 Consumption mode: 1 (backward consumption only) Backward consumption period: 30 days

AFS MRP Consumption priority: 1

(priority according to category)


1-2 Enter planned independent requirements for your material TP-SWEAT##. Save your data.

Data Material TP-SWEAT## Plant 0001 Category MLABEL-DOM Version 00 Radio button set to SKU level Requirements date M, 3 months in the future Size/Color M BLK

Quantity 200 pc

Remember to set them active this time.

1-3 Run MRP for TP-SWEAT##.

Data

Material TP-SWEAT## Plant 0001 AFS-MRP control parameters Create pur. req. 1 (Purchase requisitions) Planning mode 1 (Reactivate planning dates) Scheduling 1 (Basic dates will be determined for planned orders)


1-4 Enter a sales order for your material TP-SWEAT##. Take note of the system message “Document incomplete” because of the missing sales price maintenance.

__________________________________________________________________ Data Order type OR Sales organization 0001 Distribution channel 01 Division 01

Customer TPCUSTOMER Purchase order number ## Requested delivery date 3 months from today

Material TP-SWEAT## Plant 0001

Position 0010 Requested category MLABEL-DOM Size/Color M BLK Quantity 20 pc

Position 0020 Material TP-SWEAT## Plant 0001 Requested category MLABEL-EXP Size/Color M BLK Quantity 10 pc Size/Color M WHT Quantity 20 pc

1-5 Look at the standard R/3 Stock/Requirement List (MD04) and then at the AFS Stock/Requirement list to compare the two. Is the information the same?

1-6 Run MRP again for TP-SWEAT##. Use the same AFS MRP control parameters you used in exercise 7-3. Was the consumption of the planned independent requirements by the sales order done correctly?

1-7 Optional: Use the summary functions in AFS Stock/Requirements list to display the total quantity as well as the subtotal per color.


1-8 Optional: Define your own layout of the AFS Stock/Requirements list. Add the field customer to the list and activate the striped pattern display. Save the new layout as user-specific ZLAYOUT##.

1-9 Enter goods receipt for TP-SWEAT##. To shorten the process use the goods receipt without reference .

Data Movement Type 501 Plant 0001 Storage Location 0001

Size/Color M BLK Category MLABEL-DOM Quantity 20 pc

Size/Color M BLK Category MLABEL-EXP Quantity 10 pc

Size/Color M WHT Category MLABEL-EXP Quantity 20 pc

Confirm warning messages about batch postings.

Save the goods receipt.

You can check the actual stock with the Stock Overview list.

1-10 Run MRP again for TP-SWEAT##. Use the same AFS MRP control parameters you used in exercise 7-3. Is the stock correctly assigned to the requirements?


1-11 Run Allocation Run to fix the stock to your sales order. Check the AFS Stock/Requirements list for results – especially the MRP status.

ARun control parameters

ARun Type. 0001 (FIFO) Mode Normal Display Allocation list

Data

Material

Material TP-SWEAT## Plant 0001

Sales1 Open to delivery today / 4 months after today SD document Sales Order number exercise 7-4

1-12 Create a Delivery for your sales order. Save the delivery. Run MRP again for TP-SWEAT## and check the effects on the MRP status again. (MRP control parameters of exercise 7-3)

Data Shipping Point 0001 Selection Date 4 months from today Order Sales Order number exercise 7-4

1-13 Optional: Create a Transfer Order for the delivery. Confirm the Transfer Order and post the goods issue afterwards. Run MRP again for TP-SWEAT## and check the results on the AFS Stock/Requirements list again. (MRP control parameters of exercise 7-3)

Data Warehouse Number 100 Storage Type 001

Picking Area 001 Confirmation Pick and Transfer


Exercise

Optional Unit: Material Requirements Planning Topic: Material Discontinuation


• Define discontinuation in the material master including the follow-up material

• Enter a sales order

• Run MRP and review the impact of the discontinuation of the component

For production of the sweatshirt TP-SWEAT## the component TP-THREAD## is necessary. TP-THREAD## cannot be delivered anymore. Therefore a follow-up material TP-THREAD-NEW## needs to be defined for this component. MRP will take care of the discontinuation of the component and create the requirements for the follow-up material.

2-1 Define the discontinuation date and follow-up material for TP-THREAD##.

Data

Plant 0001

AFS MRP View / Discontinuation Ctrl Eff.-out date today Follow-up material TP-THREAD-NEW## Follow-up grid value BLK

2-2 Enter Sales Order for material TP-SWEAT##.

Data

Order Type 0001 Sales organization 0001 Distribution channel 01 Division 01 Customer TPCUSTOMER Purchase order Number DISC## Requested delivery date today + 4 weeks


Plant 0001 Category MLABEL-DOM Size/Color M BLK Quantity 10 pc

2-3 Run MRP for material TP-SWEAT##. Was a requirement created for the component TP-THREAD##? Why not? What has happened with the requirements?

Data

Material TP-SWEAT## Plant 0001 AFS-MRP control parameters Create pur. req. 1 (Purchase requisitions) Planning mode 1 (Reactivate planning dates) Scheduling 1 (Basic dates will be determined for planned orders) Flag Also plan unchanged


Solution

Unit: Material Requirements Planning Topic: MRP

1-1 Add the consumption mode, consumption period, consumption priority and coverage strategy to your material master for TP-SWEAT##.

Logistics → Production → Master Data → Material Master → Material → Change → Immediately

1-2 Enter planned independent requirements for your material TP-SWEAT##. Save your data.

Logistics → Production → Production Planning → Demand Management → AFS Planned Independent Requirements → Maintain

Flag ‘active’.

1-3 Run MRP for TP-SWEAT##.

Logistics → Production → MRP → AFS Planning → Single-Item Planning

1-4 Enter a sales order for your material TP-SWEAT##.


• Enter the general data

• Choose AFS Item overview. Enter material. Choose <Enter>.

• In the following PopUp select the requested category MLABEL-DOM.

• Select line and choose <Matrix entry>. Enter the respective quantity for first position. Redo same steps for second position.

• If the system takes you to the Standard order availability control overview SKUs screen choose <Proposal>.

1-5 Look at the standard R/3 Stock/Requirement List (MD04) and then at the AFS Stock/Requirement ( /AFS/MD04)list to compare the two. The standard R/3 Stock/Requirements list will not take the dimensions and categories into consideration and will consume stock regardless of the category tables defined in AFS. The AFS Stock/Requirements list will follow those set-ups. Once MRP is run, the two lists will once again be identical.

Logistics → Production → MRP → Evaluations → Stock/reqmts list


Logistics → Production → MRP → AFS Analyses → AFS Stock/Reqs list

1-6 Run MRP again for TP-SWEAT##. Use the same AFS MRP control parameters you used in exercise 7-3. Was the consumption of the planned independent requirements by the sales order completed correctly?


Yes. Requirement category MLABEL-DOM consumes planned independent requirements of category MLABEL-DOM; requirement category MLABEL-EXP also consumes planned independent requirements of category MLABEL-DOM according to the settings in the coverage strategy in customizing.

1-7 Optional: Use the summary functions in AFS Stock/Requirements list to display the total quantity as well as the subtotal per color. Select column Quantity and use the function Total to display the total quantity. After this the function Subtotal is active – select the column color and select the function Subtotal to display the subtotals per color.

1-8 Optional: Define your own layout of the AFS Stock/Requirements list. Add the field customer to the list and activate the striped pattern display. Save the new layout as user-specific ZLAYOUT##.

Select the function Select Layout and choose Change Layout. On the tab strip Columns, select the field Customer from the Column Set and add it to the selected fields. On the tab strip Display, flag with optimum column width and striped pattern. Save the layout. Select the flag user-specific and define the layout name ZLAYOUT## and the layout description.

1-9 Enter goods receipt for TP-SWEAT##. To shorten the process use the goods receipt without reference.

Enter a goods receipt for your sales order positions. To shorten the process the goods receipt without reference is used. Normally the goods receipt is done in relation to the production order or the purchase order.

Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → Other

The Stock Overview list can be used to check the goods receipt posting.

Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview


1-10 Run MRP again for TP-SWEAT##. Is the stock correctly assigned to the requirements?


The sales order is now assigned to the batches just posted for the corresponding size/color combinations. The columns stock type and stock number shows that the batches are assigned.

1-11 Run Allocation Run to fix the stock to your sales order. Check the AFS Stock/Requirements list for results – especially the MRP status.

Logistics → Allocation Run → Online Processing

Attention ! The Sales Order needs to be complete in order to be selected by the Allocation Run. Remember to save the Allocation Run results. The AFS stock/requirements list (/AFS/MD04)shows a new tab strip for the MRP status F – assignment fixed: open for delivery. Your sales order is now fixed and assigned to the stock.

1-12 Create a Delivery for your sales order. Save the delivery.

Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery→ Create → Single Document → With reference to Sales Order

• Enter the Data <Enter>-

• <Save>

Run MRP again for TP-SWEAT## and check the effects on the MRP status again.


The AFS stock/requirements list shows a new tab strip for the MRP status D – Assignment fixed on delivery note – all sales orders with an existing delivery are listed in this MRP status.


1-13 Optional:

Create a Transfer Order for the delivery. Confirm the Transfer Order and post the goods issue afterwards.

Logistics → Sales and Distribution→ Shipping and Transportation → Outbound Delivery→ Change → Single Document

Create Transfer Order:

Logistics → Sales and Distribution→ Shipping and Transportation → Picking→ Create Transfer Order → Single Document

Confirm Transfer Order:

Logistics → Sales and Distribution→ Shipping and Transportation → Picking → Confirm Transfer Order → Single Document → In One Step

The picking quantity is transferred to the delivery after the confirmation.

Post goods issue:

Logistics → Sales and Distribution→ Shipping and Transportation → Outbound Delivery → Change → Single Document

Button: Post goods issue Run MRP again for TP-SWEAT## and check the results on the AFS Stock/Requirements list again.


The goods issue for the sales order is completed, therefore the sales order is no longer visible in the AFS Stock/Requirements list.


Solution

Optional Unit: Material Requirements Planning Topic: Material Discontinuation

2-1 Define the discontinuation date and follow-up material for TP-THREAD##. Logistics → Production → Master Data → Material Master → Material→ Change → Immediately AFS MRP View - Discontinuation Ctrl

2-2 Enter Sales Order for material TP-SWEAT##.


Choose AFS Item overview. Enter material. Choose <Enter>. In the following PopUp select the requested category MLABEL-DOM. Select line and choose <Matrix entry>. Enter the respective quantity. If the system takes you to the Standard order availability control overview SKUs screen choose <Proposal>.

2-3 Run MRP for material TP-SWEAT##.


A planned order was created to supply the requirements of the sales order. Display the Bill of material for the planned order. The follow-up material for TP-THREAD is listed. If you check the AFS Stock/Requirements list for the follow-up material TP-THREAD-NEW## the respective requirements and procurement proposals are automatically created for the follow-up material.


© SAP AG 2008

Production: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Production

Contents:Routing

Planned Order and Production OrderMissing Part Information System

Confirmation of Production Orders

Markers and Bundles

Combined Orders

Make-to-OrderOrder Progress Report

External Process


© SAP AG 2008

Describe the routing selection process in AFS

Describe the additional information contained in planned orders and production orders in AFS

Perform and analyze ATP check on components from an AFS production order

Access the missing part information system

Assign component batches to header materials in production order

Confirm production orders in AFS


Production: Unit Objectives (1)


© SAP AG 2008

Describe how AFS bundle and marker data is used

Create a combined order from production orders

Describe the differences in the Make-to-Orderprocess between AFS and Std. ERP

Use the order progress report

Describe the external process from production order


Production: Unit Objectives (2)


© SAP AG 2008

Production: Course Overview Diagram

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids

Data resulting from the routing and the BOM is used in your production procedure. This data is based on production forecasting and planning.


© SAP AG 2008

A production order for our jacket is created manually. We want to check the availability of the fabric component after a partial delivery.

The jacket is selling so successfully, that the company decides to use the remaining fabric from a different style that was dropped at the last minute. Since this is a re-run, already laid markers are on file and marker details for bundle information can be entered. Since the marker yields a slightly different number of garments, we need to adjust the planned order.

Production: Business Scenario (1)


© SAP AG 2008

The jacket has to be produced in two categories. Since the two garments only differ in the embroidery on the inside and the private label, the pattern pieces are identical. The order quantities are not very high which results in low ply heights. The shop floor manager decides to spread and cut the two orders together.

Global Fashion decides to take on a large sales order from a chain store. In order to follow this sales order through production, it needs to be entered as make-to-order.

Production: Business Scenario (2)


© SAP AG 2008

AFS Routing

Group Counter 1CategoryMLABEL-

AFS routings can becategory-dependent

Routing A

Cutting

Group Counter 2CategoryPLABEL-

Routing B

Quality Inspection

Embroidery

Sewing

Cutting Quality InspectionSewing

Routings describe the sequence of operations required to produce a specific material.

You can make different routings valid by including or excluding them for the particular categories you wish to be produced.

You can maintain a valid routing for all categories you wish to be produced.

Routings cannot be dimension dependent.

Production resources/tools (PRT) can only be category dependent.


© SAP AG 2008

AFS Routing - Selection Process

1 ERP StandardRoutings

2 3

4 5

ERP StandardSelection

ERP SelectionComplete

AFSSelection

SelectionComplete

AFS uses the standard method for selecting routing, then uses AFS criteria.

ERP Standard selection process:

Quantity to be produced

Validity date

Production version

Additional AFS criteria:

Category


© SAP AG 2008

REDWHT

AFS Planned Order (1)

AFS Planned OrderMaterial: JACKETOrder Quantity: 30 pieces

106 8 10 12

BLK

SizeColor

1010

One Category

SeveralGrid

Values

CategorySegmentMLABEL

You can only add one category per planned order but several grid values.


© SAP AG 2008

AFS Planned Order (2)

PlannedOrder

PlannedOrder

PlannedOrder

ProductionOrder

ProductionOrder

ProductionOrder

MRP

You can create a planned order automatically in the planning run.

To enter a planned order manually, use the Standard ERP menu path.

Due to the SKU information, collective conversion of planned orders into production orders does not allow for any changes at conversion time.

Planned orders cannot be partially converted into production orders.


© SAP AG 2008

AFS Production Order (1)

REDWHT

AFS Production OrderMaterial: JACKETOrder Quantity: 30 pieces

106 8 10 12

BLK

CategorySegmentMLABEL

SizeColor

1010

One Category

SeveralGrid

Values

You can only add one category per production order but you can add several grid values.

This information is taken from the bill of material (BOM) and the routing.


© SAP AG 2008

AFS Production Order (2)

2AFS BOM

1 AFS Routing 3 AFS ProductionOrder

(Categories) (Grid Valuesand Categories)

(Grid Valuesand 1 Category)

For AFS materials, the routing is selected depending on the category. The BOM is selected depending on grid values and categories, and copied into the production order.


© SAP AG 2008

AFS Production Order - ATP Logics

Stock

Requirement

PRequ10000005

100 m Fabric

Stock

Requirement

PRequ10000010

100 m Fabric

1. AFS PP Logic

PRequ10000011

100 m Fabric

2. Standard Logic

Date

Date

MRPMRP

MRPMRP

PrO 1000021100 m FabricRequ. Date 01.10.2006

PrO 1000020100 m Fabric Requ. Date 01.09.2006

PrO 1000021100 m Fabric Requ. Date 01.09.2006

PrO 1000020100 m FabricRequ. Date 01.10.2006


© SAP AG 2008

AFS Production Order - ATP Scope of Check

Check without RLTReplenishment Lead Time

Include safety stockStock in transferIncl. Quality insp. stockIncl. Blocked stockIncl. Restricted-use stockW/o subcontracting

Availability Check

Checking Rule

Individual Requirements

PP Checking Rule

Storage Location CheckNo Storage Loc. Inspection

Include Receipts from Past and FutureReceipts in the Past

Checking Period: GRMissing Parts Process

Include Safety StockStock in TransferInclude Quality Inspection StockInclude Blocked StockInclude Restricted-use StockW/o Subcontracting

Stock

Include Purchase OrdersInclude Purchase RequisitionInclude Dependent RequirementsInclude ReservationsInclude Sales RequirementsInclude DeliveriesInclude Shipping Notification

Receipts/Issues

Include Dependent ReservationsInclude Release Order RequirementsInclude Planned OrdersWith Production Orders

02PP

X

X

For the most parts, AFS includes the Standard scope of check in ATP. Special stock is no longer set active for the ATP check (Customizing) but can be maintained in the Standard scope of check which is taken into consideration by the ATP check.

All marked fields in the illus above are supported by AFS and work like the ERP Standard.

Note: In AFS you cannot include the storage location for the ATP check. The ATP in AFS checks against available stock or planned stock, for example, procurements proposals.

The ATP checks against planning, for example planned independent requirements.

Settings that must be maintained for the ATP check of AFS components in a production order are: checking group, checking rule and scope of check (Customizing).

AFS specific settings like search horizon, SKU level horizon, MRP search method and discontinuation of SKUs have to be entered in the Customizing.


© SAP AG 2008

AFS Production Order - Explain ATP Explain ATP

ATP OverviewMaterial TPP-SELF AFS Production Self-Delta WSPlant 0001 Requirements Date 29.10.2001 Replen.lead time 12.11.2006

SKU horizon 22.11.2006

Avail. Check 02 Checking rule PP ATP/MRP ChkMthd

Explain ATP

6 BLU16,00029.10.200108.11.20010000005238PFA1000001000069

Stock CategoryGrid valueQuantityReq. DateStock DateSloc.Stock number...R...Item Order numberExce...

User Selection Stock/Req.List Reserve qty records <Base values>

ATP Result

Explain ATP <Base values>

ATP OverviewMaterial TPP-SELF AFS Production Self-Delta WS

ATP Horizon 31.12.2009 Size Level Horizon 22.11.2006Plant 0001 ReqDate 29.10.2006 Replen.lead Time 12.11.2006

ATP Result

29.10.200608.11.200116,000BLU6FA

Stock CategoryReq.DateStock DateQuantityDim2Dim1R....

On the ATP overview screen, in production order a traffic light indicates availability of components:

green: quantities are confirmed

yellow: quantities are partially confirmed

red: quantities are not confirmed

In addition, all data for horizons relevant to the AFS ATP check is provided.

The Explain ATP function can be applied for analyzing the ATP result calculated by the system.

The single stock elements are displayed which are originating from the respective ATP result. In addition, the total quantities from the sales orders referring to the header material can be displayed. This may serve as an overview across components’ availability.

Note: The Explain ATP function is also available in AFS planned orders and purchase orders.


© SAP AG 2008

AFS Production Order - Missing Parts Info SystemMissing Parts Info System: OverviewNo. of Item: 6 ReqDate

Material ABRA-FABRIC Astrid – Fabric for TestingPlnt 0001 Plant 0001 (Germany)MRP group 001 MIKE MCGREGOR

00 M0 M 0 M14,250 M42 M11.02.2006ABRA-SHIRT-PP1000061

00 M0 M0 M14,250 M42 M

SKU QtyWCommit.QSKUMis.PSKU ReqQGrVShortageReqmts qMaterialReqDatePegged reqmtOrder

Material TP-LABELP21 Private Label Group 21Plnt 0001 Plant 0001 (Germany)MRP group 001 MIKE MCGREGOR

00 PC0 PC0 PC100 PC100 PC03.06.2006TP-JACKET211000107

00 PC0 PC0 PC100 PC100 PC


Material TP-SELF20 Self Group 28Plnt 0001 Plant 0001 (Germany)MRP group 001 MIKE MCGREGOR

00 M0 M0 M310 M400 M28.06.2006TP-JACKET281000099

00 M0 M 0 M310 M400 M02.07.2006TP-JACKET281000097

00 M0 M0 M620 M800 M


Material TP-SELF 29 Self Group 29Plnt 0001 Plant 0001 (Germany)MRP group 001 MIKE MCGREGOR

The ERP Standard missing part information system is enhanced by SKU data.

Reserved component quantities and their missing parts can be displayed at SKU level. Missing parts information is considered by the ATP check in the production order.

The missing parts information system can be entered directly via production order or via menu path (TC: CO24).


© SAP AG 2008

AFS Production Order - Horizons in ATP Check

Horizons in AFS ATP check

Today SKULH RLT Search thorizon

AFS ERP Std. ATP Usage MRP

SKU-Level-Horizon Method

Search Horizon

Replenishment Lead Time


© SAP AG 2008

AFS MRP - AFS MRP Search Method

Parameter Setting = “C“

Require-ment400 piecesCategory A

Date





DateRequire-ment400 piecesCategory A


Stock 100 piecesCategory A



Parameter Setting = “ “

The ATP/MRP Method controls whether the category or the customer's requested delivery date should have higher priority when covering a requirement. This method plays a particularly important role if AFS materials are using a coverage strategy which allows the coverage of a certain requirement category with more than one stock category.

Requested delivery date higher than Category “C” The system tries to cover the requirement for the requested delivery date, if possible. That means that the system checks all of the available categories for a certain date before it proceeds to the next date within the Replenishment Lead Time or ATP search horizon.The system first checks whether there is stock (in any category) available for the requested delivery date. If so, the stock will be assigned, regardless of its allowed category.

Category higher than requested delivery date “ “ The system always tries to cover the requirement with the stock category that comes first in the stock/requirements assignment sequence defined for the coverage strategy. That means that the system checks whether or not the desired category is available within the entire replenishment lead time (RLT) or ATP search horizon . It will only check the other permitted categories if the result of this check is negative. The next available (incoming) stock will be assigned to the requirement, regardless of whether or not the requirement can be confirmed for the requested delivery date.

- ATP: If the RLT for your material is active, the availability check will be executed either until the end of the RLT or the end of the ATP search horizon (if the latter is shorter than the RLT). The ATP/MRP check method can be controlled for each ATP checking rule in Customizing or in the AFS MRP 1 view. The setting in the ATP checking rule has higher ranking than the setting in the material master.

- MRP : The AFS/MRP method used during MRP is defined in the material master.


© SAP AG 2008

AFS Production Order - Batch Assignment

Maintain Batch Fixed Reservations

Material TP-SELF99 Plant 0001

M2,1002,100M2,10016 WHT0001000001000028

Req. CategoryB..Unreserved QtySKU Rqmts QtyE...QuantityGrVSto...Requirement

Total ord.qty 0,000Additional ord qty.

Total Rqmts Qty 0,000 Sum sel.batches 0,000

M1.000,00016 WHT0001000000459540

M1.000,00016 WHT0001000000459330

M1.000,00016 BLK0001000000459620

M1.000,00016 BLK0001000000459410

Reserved qtyStock CategoryB..UnrestrictedGrVSto...Batch

Component batches can be assigned to a production order at SKU level. If the components are AFS materials the batches are fix reserved in MRP.

One batch number may be fix reserved to several different production orders.

If batch classification is used, batches can be selected using characteristics.

Batch assignments can be cancelled.

Note: Batch assignment in AFS production orders can only be done for AFS materials.


© SAP AG 2008

AFS Production Order - One-Screen-Confirmation

Enter time ticket for production order

Sub-operationCapacity cat. Split

Work center CUTTING / 0001 AFS Cutting Work Center

Order 1000082 Material TP-AJACKET AFS Casual JacketOper/activity 0010 Sequence 0

Col..Sl..Display Filter for AFS Data

To confirm Un.Yield 300 PCScrap 0Rework 0Reason

00PC50WHT1400PC50WHT1200PC50BLK12

00PC50BLK14

Confirmed scraYield confirmedFUnBundle scrap to con..Bundle yield to confi..A..A..

Entry 1 / 7

Confirm. Type Partial confirmation Clear open reservations

Quantities

Quantities (A<Base values>

Standard one-screen-confirmation is supported in AFS. The one-screen-confirmation provides all data relevant for confirmation in one screen for easy maintenance by the user.

Scrap quantities are displayed at SKU level.

By clicking the Actual Data button, actual data can be taken over automatically.

In Customizing, customer specific profiles for configuration of the confirmation screen can be defined.

In addition tolerance checks at SKU level can be set up in the Customizing.

Previously confirmed quantities and scrap will also be displayed.


© SAP AG 2008

AFS Production Order - Manual Adjustment of Quantities

ProductionOrder

Confirmation: Goods movements

Material

Interlining

Interlining

Buttons

Dim.

WHT

BLK

St.cat. Quantity

200

200

550

220

Mvt.type

261

261

261

Batch

000000562

000000563

Stor.

0001

0001

0001

Plant

0001

0001

0001

Unit

M

M

PC

InterliningBack-

flushing

Production

It is possible to change the quantities of backflushed materials in the goods movements screen when confirming operations. This can be done for both ERP Standard and AFS materials.

Some fields may not be changed for AFS materials. They are greyed out.

It is possible to add extra ERP Standard materials that may have been consumed for the production order, but no extra AFS materials may be added.

Batches are selected automatically for AFS materials, however they need to be selected manually for ERP Standard materials as in ERP Standard.


© SAP AG 2008

AFS Production Order - Bundles

Pliesof Fabric

MARKER A MARKER B

In the production order, bundle data may be entered to ensure unique identification numbers. They comprise the marker ID, the occurrence of a size in a marker, and the occurrence of a marker on the cutting table.


© SAP AG 2008

AFS Production Order - Markers and Bundles

A 50A

Marker-ID Nr Sec Bundle qty.11 2

1

AB

11

11

505050

Size

SS

ML

ColorBLUBLUBLURED

Marker Data

A marker is the optimal placement of pattern pieces to achieve the best fabric utilization for the cutting process. Unique markers are defined by the name and repetition of the size and dimension values they contain. They can be plotted on paper or stored in a file that is used to drive a numerically controlled cutter.

Marker information is stored on external systems. It can be accessed through a user exit.

AFS uses marker data to:

Adjust quantities in a planned or production order

Identify unique bundle numbers

If markers or bundles will be used, the option needs to be set globally in Customizing or per material in the AFS MRP view of the material master record.


© SAP AG 2008

AFS Production Order - Markers Quantity Adjustment

3230

AFS Planned Order

28 30 3228

WaistInseam

BLU BLK

50 505030

ExternalMarkerLibrary

Marker 1:

Marker 2:

32 x 30 5032 x 32 5034 x 32 50

30 x 30 5028 x 32 50

Total: 230 pieces Total: 250 pieces

34

50

If canned markers from a marker library are used, the resulting quantities may not necessarily coincide with the quantities in the planned order or production order. The quantities must be adjusted to match the marker yield.


© SAP AG 2008

AFS Production Order - Scrap Quantities at SKU Level

Maintain grid value quantities for production ordersMaterial OST-JACKET01 AFS Casual Jacket-COOrder %00000000001 1 Plant 0001 Sloc Sched.Fin. 29.06.2006

Target quantity 232 PCScrap 22 10,48 %

Total SKU qty 232

AFS additioAL‘s Siz AL‘s col Net SKU qty SKU scrap Stock Category DCI BND ExpectVarianceRcpt

36

34

BLK

BLK

12110

10100

0

0

Scrap is entered as a percentage in the material master MRP1 view. AFS applies this percentage to each SKU in a planned order or production order and calculates the scrap per SKU to fill the SKU scrap fields. The value is always rounded to an integer. As a result, the percentage in the display is adjusted accordingly.

This function is available for planned orders and production orders whether created by the planning run or manually entered.

AFS calculates the required quantity including the scrap as gross quantity at bundle level.

It is also possible to enter scrap as a quantity rather than a percentage. This has to be done in the production order.


© SAP AG 2008

Order Release

Availability Check

Production Order

Printing of Documents

Material Withdrawal

CompletionConfirmation

GoodsReceipt

Order SettlementProcessing

Order Creation

AFS Production Order - Creation and Release

Production orders are managed using status.

When the order is released, the system activates a corresponding status in the order.

Order release can be performed manually or automatically.

An availability check of components can be performed automatically.

Order release is the basis for many follow-up processes in the production order (printing of order documents, material issues, and so on).

All shop floor papers include SKU and bundle information. The standard print forms have been replaced by AFS specific forms. Standard print programs (PPPR* or PSFC*) have been replaced by AFS specific reports (J_3A*).

Shop floor control papers provide SKU information for header materials as well as for their components.

The following shop floor papers have been enhanced: Confirmation slip, Goods issue slip, Object overview, Operation control ticket, Pick list, Standard layout set, Time ticket, Goods receipt list

You can release an entire order or several orders at the same time.


© SAP AG 2008

AFS Combined Orders

ProductionOrder10023



Combined OrderNumber 38

1002310024

10025

Production orders can be chosen to form a combined order using certain selection criteria. Each individual production order still exists in the system but they are treated as one. A combined order number may be entered manually or can be assigned automatically.

If special procurement key 70 (Withdrawal from alternative plant) is used, production orders originating in different plants may be combined.


© SAP AG 2008

ProductionOrder10023Routing 1


10023

Cutting

10024

Sewing

Embroidery

Sewing

QualityCheck

QualityCheck

ProductionOrder10024Routing 2

AFS Combined Orders in the Production Process

Reasons for combining production orders could be a shared material, header or component, and work process or merely a common work process. In the apparel industry, this would most likely involve the cutting process in an attempt to optimize the cutting capacities.


© SAP AG 2008


1002310024


1002610027

Material 5520BATCH 001



Selection by:

CategoryClassificationStorage location

AFS Combined Orders - Batch Assignment

A combined order may be done:

Without batch assignment

With batch assignment

The batches can be selected using different criteria, that is, categories or classification and storage location. ERP Standard batch search strategies may also be used.

Once batches have been assigned to combined orders, they are fixed assigned in MRP.


© SAP AG 2008

AFS Combined Orders - Functions

Release

Goods Issue

Confirmation


1002310024

10025

Combined orders can be

released as one

goods issue can be posted for the materials combined

all orders can be confirmed for the common work center in one step

If more goods are issued than necessary for the combined production orders, the excess is distributed across the individual orders proportionally.


© SAP AG 2008

Describe the differences in the Make-to-Order processbetween AFS and Std. ERP




AFS Make-to-Order Process: Topic Objectives


© SAP AG 2008

MRP Status“E” (Sales Order Stock)

Sales OrderOrder Type: ORMaterial: TP-Shirt

Item:0010 10 pieces L BLK0020 10 pieces M BLK

Item Category: JMT2 (w/o CO)JMT3 (with CO)

Planned Order7732

10 piecesL BLK

Planned Order7733

10 piecesM BLK

Supply of Componentsper Planned Order into

Sales Order Stock

Production Order

100038210 pieces

M BLK

Production Order

100038110 pieces

L BLK

Sales Order Stock

AFS Make-to-Order

MRP

AFS is delivered to customers with two pre-defined item categories, one for Make-to-Order process with Controlling (JMT3 – schedule line category J6) and one without (JMT2 – schedule lien category J4).

Make-to-Order without CO results in the costs incurred per sales order to be treated as in the Make-to-Stock process. It only binds the sales order to a particular production order.

Make-to-Order with CO results in the costs being assigned to a specific sales order (Valuation Class 7921 – Finished products / MTO). If you use Make-to-Order with CO you may control the value stock within the sales order.

SKU quantities changed in the planned order or production order won’t be updated in the sales order.

In the MRP result screen, the MRP list and the Stock/Requirement List, the MTO stock is listed with an individual status “E” (Sales Order Stock) and a separate segment per sales order item.

There are some differences to the ERP Standard Make-to-Order process:

The MTO process is initiated by item category in the sales order, not by the strategy group

As in standard, lot size procedures are not supported in AFS

The MRP must be run for MTO sales orders to create planned orders.

When using MTO, it is possible to switch off the ARun in Customizing which is normally mandatory for delivery creation.


© SAP AG 2008

AFS Make-to-Order - Order Progress Report Order Progress Report: Object Structure

TPP-COATMatDimension Values

4 WHT4 BLK

Operat Cutting

4 WHT4 BLK

Order 131 Type OR Plant Scheduled date Actual finish Actual start Expected Rec./reqOrdering Party CUSTOMER In-house p Plant stock Customer st. Ass. sc. Base Unit

SlsOrd 131/100 0001 00.00.0000 00.00.0000 00.00.0000 0 110

SlsOrd 131/100PrdOrd 1000105

4 WHT4 BLK

Operat Sewing

Operat Final Inspection

0 0 0 0,00 PC

Grid val Quantity Confirmed Base Sched.start Actual start

-

-

-

-

-

+

4 BLK 60 0 PC 00.00.0000 00.00.0000 4 WHT 50 0 PC 00.00.0000 00.00.0000

110 0 PC 00.00.0000 00.00.0000

110 108 PC 11.07.2006 29.06.2006 4 BLK 60 58 PC 11.07.2006 29.06.2006

4 BLK 60 0 PC 11.07.2006 29.06.2006 110 0 PC 11.07.2006 29.06.2006

4 WHT 50 50 PC 11.07.2006 29.06.2006

4 WHT 50 0 PC 11.07.2006 29.06.2006

110 0 PC 11.07.2006 29.06.2006 -

00.00.0000 00.00.0000 00.00.0000 0 252-

Mat TP-Self

- OrdRes 218/1

252 0 M 00.00.0000 26.06.2006

0001 11.07.2006 00.00.0000 29.06.2006 0 108

00.00.0000 00.00.0000 00.00.0000 0 110-

AFS supports the ERP Standard order progress report at SKU level and for every operation.You can view the production progress for a sales order and its related planned and production orders.

For the production order, operation steps and order quantity are displayed on SKU level.

Deviation quantities resulting from the manufacturing process may be monitored in the report. In addition to other information, master data and price data can be displayed in the order progress report.

The report can be selected for a range of sales orders.

In Customizing, you can define customer specific profiles for field display.

Note: As on ERP Standard, the order progress report is only supported for make-to-order scenarios sales orders.


© SAP AG 2008

AFS Production Order - External Process

Cutting

Our Plant Subcontracting Vendor

Dyeing

Provision ofComponents

SubcontractPurchaseOrder

Embroidery

Goods Receipt

Dyeing

Sewing

Invoice

Example: You need to order a service, e.g.: for dyeing, from a vendor.

In the ERP system, a purchase requisition is created for the respective service. This is converted into a purchase order including SKU data of the finished material. However, the material number is not displayed. Data can be changed in the purchase order.

The vendor‘s invoice is entered with reference to the purchase order.

In the AFS system, the external process is supported as in the ERP Standard system.

Note:

In the purchase requisition no SKU data is displayed. Data in the purchase requisition cannot be changed.

AFS does not support the manual creation of subcontract purchase orders assigned to a production order.


© SAP AG 2008


Production: Unit Summary



Describe the differences in the Make-to-Orderprocess between AFS and Std. ERP




Exercise

Unit: Production Topic: Routing


• Create a routing with AFS categories

Global Fashion’s casual jacket is produced in two categories. MLABEL- and PLABEL- go through the same manufacturing operations. PLABEL- will have one additional operation when the retailer’s shop name is embroidered (EMBROID) on the inside of the yoke. This is done after cutting (CUTTING). Both will be cut and sewn (SEWING), and will then go through final inspection (INSPECT).

1-1 Create two routings for your material TP-JACKET##, one for category MLABEL- and one for PLABEL-.

Use the following data: Data

Material TP-JACKET##

Plant 0001

Usage 1 (Production) Status 4 (Released general)

1-1-1 Go to the Operation overview screen and enter the work centers referring to the introduction of this exercise. Enter values of your choice for setup, machine and labor times for the operations CUTTING, EMBROID, and SEWING. For INSPECT, enter a value for labor only.

1-1-2 Assign the routings to the respective categories.


Exercise

Unit: Production Topic: Production Order


• Create a production order for an AFS material

• Perform ATP checks for AFS and non-AFS components in a production order and understand the ‘Explain ATP’ screen

• Confirm a production order and also do a goods receipt for a production order

Use the Missing Parts Lists for AFS materials

Several production orders for TP-JACKET## are created manually. We want to check the availability of the fabric component TP-SELF##.

The fabric is needed in two colors, black and white. We already received a partial delivery of black fabric. This should be reflected in the ATP-check. We want to look at the impact that changes have on the ATP check. Finally, we want to release the production order, confirm on dimension level, and perform a goods receipt for the finished goods. Three white garments came back as second quality; we need to consider that when booking them in. In the Missing Parts List we want to check which production orders will not have all components delivered on time.

2-1 In order to show competing requirements for our fabric TP-SELF## we need to enter three production orders. Create the production orders manually.

Data Material TP-JACKET## Production plant 0001 Order type PP01 (Standard production order)

For production order 1:

Finish date 2 months from today

Dimension 14 WHT

50 pieces Stock category MLABEL-1-EU

Make a note of the first production order number, but do not release it.

____________________________________________________________




Dimension 16 WHT and 16 BLK

50 pieces each Stock category PLABEL-1-

Make a note of your second production order number, but do not release it.

____________________________________________________________



Dimension 14 WHT and 14 BLK

100 pieces each Stock category MLABEL-1-EU

Do not release or save your order, yet.

____________________________________________________________

2-1-1 Use the <Components> button to get to the component overview screen. Carry out the ATP check for the component TP-SELF##. Choose the <Explain ATP> button to get to the next screen. The <Expand> button at the bottom of this screen will turn the display of the consecutive numbers for the production order into their actual names. These production orders generate competing requirements for this component.

You can check other information such as the ‘Scope of check’ or the ‘Stock overview’ for that material.

Select the <User Selection> button and remove the flags ‘Grid value’ and ‘Requirement Date’. The competing requirements will be aggregated into one line.

2-1-2 If you look at the quantities for the components, why do we need 396m of self and only 198m of lining?

____________________________________________________________

2-1-3 Save your third production order. Make a note of its number.

____________________________________________________________


2-1-4 Run MRP for your material TP-JACKET##.

Data


Plant 0001

Create pur. Req. 3 (Planned orders)

Planning mode 1 (Reactivate planning dates)

Scheduling 1 (Basic dates will be determined for planned orders)

Flag 'Also plan unchanged components'.

2-1-5 In the AFS MRP result screen for component TP-SELF##, you should see the planned order created to fulfill the fabric requirement of the production order.

2-1-6 Call your third production order up in Change mode. Repeat the ATP check for your component TP-SELF##. Your traffic light should now be green. Why? How can you check this?

____________________________________________________________

2-1-7 Release your production order and save.

2-1-8 Confirm one operation in your third production order by SKU. Use the confirmation by time ticket to do so.

Data Order Your production order number

2-1-9 Book three white garments in as second quality (category MLABEL-2-EU). The rest should be first quality (MLABEL-1-EU) as requested in the production order. Perform a goods receipt for your third order of your finished product TP-JACKET## using the ‘MIGO’ screen. Don’t forget to flag the ‘ok’ box before posting.

2-1-10 In the AFS Stock/Requirements List for TP-JACKET##, you will be able to see the “C” status for batches for the goods received.

2-1-11 Call your second production order up in Change mode. Run the ATP check for the component TP-SELF##. Save the production order.

2-1-12 Call up the Missing Parts List

Data Plant 0001

Order Your range of order numbers

Layout /TP-PRO


Exercise

Unit: Production Topic: Batch Assignment in Production Order


• Select particular batches for a production order

• Fix-assign batches to a production order

Global Fashion also manufactures a shirt, TP-SHIRT##, which can be ordered in several colors. The fabric, TP-COTTON## is a cotton material which shows shading in some difficult colors. Different dye lot numbers, provided by the fabric supplier, indicate the shading. If quantities are high, fabric rolls need to be dyed in different vats. Even though the general color is the same, some slight differences in hue may occur. They are indicated by the different dye lot numbers. Our customer will accept the order under the condition that only fabric rolls from one dye lot number will be used. Once the fabric rolls are selected, we need to fix-assign them to our production orders to ensure they are not issued by another production order.

3-1 Enter a sales order using the following data. Note the sales order number.

________________________________________________________________

Data

Order type OR



Division 01

Customer TPCUSTOMER

Purchase order number ##

Requested delivery date Two months from today

Material TP-SHIRT##

Plant 0001

Requested category MLABEL-1-GB


Size S Size M Size L Size XL Total

RED 50 50 50 50 200

BLU 50 50 50 50 200

100 100 100 100 400

3-1-1 Run MRP for your material.

3-1-2 From the MRP display screen convert your planned order into a production order.

3-1-3 Assign batches to the component TP-COTTON##.

As we want to spread the red and blue fabric together on one table, we want to make sure that we only select fabric of a width of 148cm. You can use <Select Classification> to select rolls with the correct width. We also want to make sure that all selected rolls are from the same dye lot. Check the classification and choose the correct rolls or batches.

Data

Storage location 0001

Class FABRIC

Save the production order and make a note of its number.

____________________________________________________________

3-1-4 Check the reserved batches in the Stock Overview.

Data

Material TP-COTTON##

Plant 0001

Display version 99


Exercise

Unit: Production Topic: Markers and Production Lots


• Create a planned order and maintain bundles

• Enter marker details and adjust the planned order to the quantities from the markers

• Confirm cutting operation on production lot level

The jacket TP-JACKET## is selling so successfully that Global Fashion decided to use up the outer fabric we have left from another style that was dropped from the line at the last minute. Sales have signaled that black is selling better than white and planning has enough yardage left of TP-SELF## to make another 330 garments. All the other components are available on stock. Since this is a re-run, we have already laid markers on file and can enter the marker details. The markers do not yield the exact quantity from the sales order. We will compare the quantities and if possible adjust the number of pieces in the planned order. The excess quantities are then available for another sales order.

4-1 Change the AFS MRP view of your material master TP-JACKET##.

Data Bundle 1 (Material produced with bundles)

4-1-1 Create a sales order using the following data. Note the sales order number.

____________________________________________________________

Data Order type OR



Division 01

Customer TPCUSTOMER


Requested delivery date One month from today



Plant 0001

Requested category MLABEL-1-DE

Size 6 Size 8 Size 10 Size 12 Total

WHT 30 30 30 30 120

BLK 40 50 60 40 190

70 80 90 70 310

Save your sales order. Ignore the message.

4-1-2 Run MRP for your material. Use the same AFS MRP control parameters you used in the last exercise.

Edit the planned order from MRP choosing the <change element> button. Enter the marker data. In this example you may leave the ‘Nr’ and ‘Sec’ fields blank.

Marker: 01 Color Size 6 Size 8 Size 10 Size 12

WHT 30 30 30 30

BLK 40 40 40 40

Marker: 02 Color Size 6 Size 8 Size 10 Size 12

BLK -- 20 20 --

4-1-3 Compare the quantities.

4-1-4 Adjust the quantities.

4-1-5 Save your planned order. Take note of the system message "TP-LABELP## not taken over to order". Then choose <Refresh> on the AFS MRP result screen.

What happened to the excess quantities?

_____________________________________________________________

4-1-6 Convert your planned order into a production order and release it. Note the production order number.

____________________________________________________________

4-1-7 Confirm the cutting operation on bundle level via time ticket for your production order and save.

4-1-8 Optional: Global Fashion still has black fabric left and we can accept another order for category MLABEL-1-FR. Note the sales order number.

___________________________________________________________


Data

Use the data from exercise 8-3-1 but replace:

Customer CUSTOMER

Requested category MLABEL-1-FR

Size 6 Size 8 Size 10 Size 12 Total

BLU 30 60 50 30 170

4-1-9 Optional: Re-run MRP for your material and check the result.

What happened to the excess quantities from before?

____________________________________________________________

4-1-10 Optional: Convert the planned order into a production order from MRP. Try to release the production order. Why can’t this one be released?

____________________________________________________________

4-1-11 Optional: How must you enter the marker data? Compare and adjust the marker quantities. Try to release and save the production order again. Note the production order number.

____________________________________________________________


Exercise

Unit: Production Topic: Combined Orders


• Combine production orders, release them as one, do a goods issue and confirm the common operation.

Our jacket TP-JACKET## must be produced in two categories. Since the two garments only differ in the embroidery on the inside and the private label, the pattern pieces are identical. The order quantities are not very high which results in low ply heights. The shop floor manager decides to spread and cut the two orders together.

5-1 As bundle entry is mandatory if selected in the material master, we want to change it back in order to facilitate the handling of the production orders. Which parameter do we need to re-set in the material master and in which view?

______________________________________________________________________

5-1-1 Use your first and second production order from exercise 8-2.

___________________________________________________________

5-1-2 In order to let the system propose the relevant batches during goods issue, we need to run MRP for material TP-LINING##.

5-1-3 Combine the two production orders without assigning batches. Select by material or production order number interval and use TP-LINING## to combine the orders with internal numbering. Make a note of your combined order number. Save.

____________________________________________________________

5-1-4 Release the combined order. Use ‘Refresh’ to see the status change.

5-1-5 Do a goods issue for TP-LINING## for the combined order.

Data


Movement type 261

Select only the line for material TP-LINING##.

5-1-6 Confirm the cutting operation for the combined order.


Exercise

Unit: Production Topic: Make to Order


• Enter a sales order for a make-to-order material.

• Name the specifics for make-to-order in MRP.

• Check the assignment of the planned and production orders to the sales order.

• Use the Order Progress Report to see the progress of the production order through the manufacturing process.

• Check the customer number and name in the Stock/Requirements List

A customer would like to buy TP-SHIRT## as a uniform for a company event. They have asked us to apply a crest to the front breast pocket. As this is a one-off, we decide not to create another category, but enter a sales order and treat it as make-to-order.

6-1 Enter a sales order using the following data. Change the Item category to JMT2. Note the sales order number.

____________________________________________________________________

Data

Order type OR



Division 01

Customer CUSTOMER


Requested delivery date One month from today

Material TP-SHIRT##

Plant 0001

Requested category PLABEL-1-

Item category JMT2

Size S Size M Size L Size XL Total

BLU 6 15 20 9 50



Data

Material TP-SHIRT##

Plant 0001

Create pur. Req. 2 (Purchase requisitions in opening period)

Planning mode 1 (Reactivate planning dates)

Scheduling 1 (Basic dates will be determined for planned orders)

Flag 'Also plan unchanged components'.

6-1-2 From the MRP display screen view the planned order and check the account assignment. It should show your sales order number.

6-1-3 Optional: Choose the BOM explosion icon. Double click on TP-INTERLINING##. Select the correct purchase requisition and check the account assignment. Return to the component overview screen and do the

same for TP-BUTTON##. What is the difference between the two components?

___________________________________________________________

6-1-4 Call up the Order Progress Report and check the progress of your production order

Data

Plant 0001

Sales order Your sales order number

Overall profile ZTP000000001

6-1-5 Expand the quantities in the sales order.

6-1-6 Place your cursor on the planned order number and convert the planned order into a production order.

Data

Order type PP01

Make a note of the production order number.

___________________________________________________________

6-1-7 Optional: Place your cursor on the production order and call it up in Change mode. Check the account assignment for the production order. Return to the Order Progress Report screen.

6-1-8 Place your cursor on the production order number and release the production order.

6-1-9 Expand the SKU information for the first operation CUTTING. The <Confirmed quantity> column shows 0 quantities.

6-1-10 In a separate session confirm your first operation of the production order.


6-1-11 Once again, refresh your display and expand the SKU information for your first operation CUTTING. In the <Confirmed quantity> column you should now see your confirmed quantities.

6-1-12 Post a goods receipt for your production order using the ‘MIGO’ screen.

Data


6-1-13 Go back to your Order Progress Report screen and once again refresh your display. In the <Confirmed quantity> column you will now see the quantities that you have just booked into stock.

6-1-14 Optional: In the AFS Stock/Requirements List for TP-SHIRT## choose the <Layout(1)> drop down list to see the customer number and name in the <Sales Order Stock> view


Solution

Unit: Production Topic: Routing

1-1 Create a routing for your material TP-JACKET##.

Logistics → Production → Master data → Routings → Routings → Standard Routings → Create

1-1-1 In the Operation overview screen enter the work centers, CUTTING, EMBROID, SEWING and INSPECT. Enter values of your choice for the following operations; setup, machine and labor.

1-1-2 The categories are maintained in the header information. You need to create two routings, one per category. From the Header Details screen choose <Category> to include the respective category for the routing.


Solution

Unit: Production Topic: Production Order

2-1 Create a production order manually.

Logistics → Production → Production Control→ Order → Create→ With material

2-1-1 When you carry out the ATP check your traffic light should be yellow because the component’s quantity is partially confirmed.

2-1-2 According to the zero quantities set-up in the BOM we do not need any lining for the black jackets.

2-1-3 Note number.



2-1-5 Check the AFS Stock/Requirements List for TP-SELF##.

Logistics → Production→ MRP → AFS Analyses → AFS Stock/Requirements List

You can also use the BOM explosion button to get to the components, then double click on TP-SELF##.

2-1-6 Repeat the ATP check in your production order

Logistics → Production → Production Control→ Order → Change

When you carry out the ATP check again, your traffic light should now be green, as the scope of check also considers planned orders. From the ATP result screen, you can choose <Explain ATP> and then <Scope of Check>. You will see that we do the ATP check without Replenishment Lead Time, but we include planned orders.

2-1-7 Choose <Release Order>. Save.

2-1-8 Confirm one operation in your production order by dimension.

Logistics → Production → Production Control→ Confirmation → Enter → For Operation → Time ticket

Enter your production order number and 0010 for your cutting operation. At the bottom of the screen you can see the quantities to confirm. They are filled in by default.


2-1-9 Post a goods receipt for your production order.

Logistics → Materials Management → Inventory Management → Goods movement → Goods receipt → GR for Order (MIGO)

Enter the order number at the top of the screen. <Enter>. Place your cursor on the line with the 14 WHT grid value. Choose <Distribute qty>. On the Distribute Qty screen enter your 97 pieces of first quality, and 3 pieces of second. Use the <F4> button to change your quality. <Adopt>. Flag <OK>, enter storage location 0001 and <Post>.

Save. 2-1-10 Check the goods receipt for TP-JACKET## in the AFS Stock/Requirements

List.

Logistics → Production→ MRP → AFS Analyses → AFS MRP Cockpit

MRP Evaluation → AFS MRP - Stock/Requirements List

<Execute>.

2-1-11 Call your production order up in change mode and perform an ATP check for the component TP-SELF##.

Logistics → Production → Production Control→ Order → Change

2-1-12 Call up the Missing Parts List

Logistics → Production → Production Control→ Information System → Missing Parts Info System


Solution

Unit: Production Topic: Batch Assignment in Production Order

3-1 Enter a sales order for TP-SHIRT##.


(Sales orders for AFS materials are created in the standard path)

3-1-1 Run MRP for TP-SHIRT##.

Logistics → Production → MRP→ AFS Planning → Single-Item Planning

Remember to flag 'Also plan unchanged components'.

3-1-2 Convert your planned order to a production order.

<Edit → Convert → PldOrd. -> Prod.Ord>

Use the <Change element> button to edit your production order.

3-1-3 Assign batches to the component TP-COTTON##.

Choose the <Component Overview> button to get to the list of components.

Enter the storage location 0001 for TP-COTTON##.

Choose <Batch assignment>. You can check the batch classification with

<Edit → Display classification>

<Select Classification> for class FABRIC, enter the value you want to use as search criteria and choose <Find in initial class>

Select the desired batches and requirements and choose <Assign>

The batch assignment is saved when you go back to the Component Overview screen. Save the production order.

3-1-4 Check the reserved batches in the Stock Overview.

Logistics → Materials Management → Inventory Management → Environment → Stock → Stock overview


Solution

Unit: Production Topic: Markers and Production Lots

4-1 Change your material master for TP-JACKET## in the AFS MRP view, and set “Bundle” to “1 material produced with bundles”.

Logistics → Production → Master data → Material master → Material → Change → Immediately

Save.

4-1-1 Enter a sales order for TP-JACKET##.

Logistics → Sales and Distribution →Sales → Order → Create

Choose AFS Item overview. Enter material. Choose <Enter>. The plant is filled in. Choose <Category> and define the requested category MLABEL-1-DE. Choose <Matrix entry>. Enter the respective quantities per SKU. Save. Ignore the message.

If the system takes you to the Standard order availability control overview SKUs screen choose <Proposal>.

4-1-2 Run MRP for TP-JACKET##


From MRP use the <change element> button to edit the planned order. On the Planned order entry screen choose the <SKU data> button and on the next screen the <Markers> button. Enter the marker data.

4-1-3 Choose the <Compare quantities> button.

You should see the excess quantities marked in red.

4-1-4 Choose the <Adjust quantities> button, to adjust the quantities in the planned order to those from the markers. Confirm with <Yes>. Note that the traffic light next to the ‘Marker’ has changed from red to green.

4-1-5 Choose the <Copy> button and save the planned order.

Refresh the MRP display. The lock mark indicates a manually changed order. It is now fixed.

The excess quantities are free available stock.

4-1-6 Convert your planned order into a production order and release it.

Alternatively, place your cursor on the planned order number. Choose <Edit → Convert → PldOrd. -> Prod.Ord>. In the production order screen choose <Release> and <Save>.


4-1-7 Using time ticket, confirm the cutting operation of your production order at bundle level.

Logistics→ Production → Production Control→ Confirmation → Enter → For operation → Time ticket

Enter your production order number and 0010 for your cutting operation. At the bottom of the screen you can now see the bundle quantities to confirm. They are filled in by default. <Save>.

4-1-8 Optional: Enter another sales order.

Logistics → Sales and Distribution →Sales → Order → Create

4-1-9 Optional: Re-run MRP


The excess quantities were consumed by the new sales order. Even though the two requirement categories are different, they are satisfied by the same stock category, making consumption possible.

4-1-10 Optional: Convert your planned order to a production order.

Alternatively, place your cursor on the planned order number.

Choose <Edit → Convert → PldOrd. -> Prod.Ord>. In the production order screen choose <Release> and <Save>.

The production order cannot be released, because the marker/bundle data has not yet been maintained.

4-1-11 Optional: From the production order screen choose the <SKU Data> button. From the next screen choose the <Bundles> button and enter the marker data.

Marker ID Nr Sec Bundle Qty Size Color

01 30 6 BLK

01 30 8 BLK

01 30 10 BLK

01 30 12 BLK

02 20 8 BLK

02 20 10 BLK


Solution

Unit: Production Topic: Combined Orders

5-1 Change your material master for TP-JACKET##.

Logistics → Production → Master data → Material master → Material → Change→ Immediately

Change the “Bundle” parameter in the AFS MRP view back to “blank”.

5-1-1 Use your first and second production order from exercise 8-2.

5-1-2 Run MRP for TP-LINING##.


Or use

Logistics → Production → MRP → Planning → Single-Item, Multi-Level

(Input parameter: TP-LINING##, 0001, NETCH, 3,1,1,1)

5-1-3 Combine two production orders.

Logistics → Production → Production Control→ Order → AFS Combined orders → Without Batch Assignment

Select the production orders to be combined using your selection criteria, for example, header material or production order number interval. Choose <Execute>.

On the next screen select the component, for example TP-LINING##, that you would like to combine, and choose <Combine>.

On the Combined orders maintenance screen, select the orders and choose <Combine int. Numb>. Save.

5-1-4 Release the combined order and confirm the cutting operation of the combined order.

Logistics → Production → Production Control→ Order → AFS Combined orders → Additional Functions

It is enough to select one line of the combined order. Choose the <Release> button.


5-1-5 Do a goods issue for TP-LINING## for the combined order.


It is enough to select one line of the combined order. Choose the <Goods issue> button. Select only your material for TP-LINING## and choose <Enter>. Search the respective batch number for TP-LINING## using <F4> on the batch field. Search for “Batches for Plant Material”. Choose batch and save.

5-1-6 Confirm the cutting operation for the combined order.


It is enough to select one line of the combined order. Choose the <Confirm operation> button. On the next screen choose the operation to confirm, then choose <Continue>. Do a refresh to see the result of your actions in the status field.


Solution

Unit: Production Topic: Make-to-Order

6-1 Enter a sales order for TP-SHIRT##.


(Sales orders for AFS materials are created in the standard path)

Enter Item category by clicking twice on the material.

6-1-1 Run MRP for TP-SHIRT##.

Logistics → Production → MRP→ AFS Planning → Single-Item Planning

Remember to flag 'Also plan unchanged components'.

Look for “E” Sales Order stock.

6-1-2 Use the Display BOM icon.

6-1-3 Optional: The account assignment information in a purchase requisition is under:

<Account assignment> at the schedule line

Because TP-BUTTON## is planned as a collective requirement you should not see the account assignment in the stock/requirements list of TP-BUTTON## (-> material master: MRP4 view).

6-1-4 Execute the Order Progress Report.

Logistics → Production → Production Control→ Information System → Order Progress Report

6-1-5 Use the <Expand> button.

6-1-6 Convert the planned order to a production order from the Order Progress Report display screen.

<select> the planned order

Functions → “Convert planned order into prod. order”

<Refresh>


6-1-7 Optional: The account assignment information in a production order is under:

<Assignment> 6-1-8 Release the production order. Use the <Release order> button.

6-1-9 Use the <Expand> button.

6-1-10 Confirm the CUTTING operation 0010:

Logistics → Production → Production Control→ Confirmation → Enter → For Operation → Time ticket

6-1-11 Return to the Order Progress Report screen and <Refresh>.

6-1-12 Post a goods receipt for your production order.

Logistics → Materials Management → Inventory Management → Goods movement → Goods receipt → GR for Order (MIGO)

Enter the production order number On each item enter the storage location 0001, flag OK and choose <Post>.

6-1-13 Return to the Order Progress Report screen and <Refresh>.

6-1-14 Optional: Display the AFS Stock/Requirements List for TP-SHIRT##.

Logistics → Production→ MRP → AFS Analyses → AFS Stock/Requirements List choose the <Layout(1)> drop down list

select <display/hide customer columns>


© SAP AG 2008

Conclusion: Course Content

Preface


Unit 2 Master Data

Unit 3 Procurement





Unit 8 MRP

Unit 9 Production

Unit 10 Conclusion

Appendices


© SAP AG 2008

Conclusion

InvoiceVerification


ValueAdded

Services

AFSMaster Data


Sales Billing

VendorMaster

Seasons

ProcurementPurchase

RequisitionSource

AllocationPurchase

Order

Production

GoodsReceipt

MRP


ProductionOrder

MarkersProduction

Lots


WarehouseManagement


AllocationRun

SalesInformation

SystemDelivery

MRPProcurement


MasterMaterial

Grids


© SAP AG 2008

You should now be able to:Identify how AFS supports standards and business practices in the apparel and footwear industry

Outline how AFS functionality integrates the supply chain for the apparel and footwear industry

Define and create multi-dimensional product grids and include them in the material master


Outline the procurement process in AFS

Course Summary (1)


© SAP AG 2008

You should now be able to:Outline inventory management procedures

Describe AFS special business processes and stocks

Describe product forecasting and planned independent requirements for AFS

Outline Materials Requirements Planning (MRP) procedures and execute AFS MRP for purchased and produced material

Course Summary (2)


© SAP AG 2008

You should now be able to:Evaluate MRP results in AFS

Create PP master data for AFS materials

Create and release a production order in AFS

Explain the ATP check in AFS production orders

Analyze different information systems/reports in production

Course Summary (3)


© SAP AG 2008

Go through the exercises using IDES data or your own data.

Read the online documentation.

Read the Implementation Guide (IMG).

Read Release Notes.

Recommended Follow-Up Activities


Appendices

0 Action Rule (IS-AFS-ARun) Rule, which controls how the system handles allocated stock if the release check fails. With the action rule you specify whether stock, which has been allocated to an order whose release check has failed, should remain reserved for that order or should be released.

0.2.2 Additive Cost Product Cost Controlling

(CO-PC) A material-based cost that you can enter manually in the form of a unit cost estimate and then add to an automatic cost estimate with quantity structure.

0.2.3 Administrator Workbench SAP Business Information

Warehouse (BW) Tool for controlling, monitoring and maintaining all those processes involved in data procurement and processing within the Business Information Warehouse.

0.2.4 AFS Change Reason Code (IS-AFS-MM) Code which provides information about why the vendor in a purchase requisition was changed manually. Change reason codes are defined plant-specifically and are based on SAP quality management.

0.2.5 AFS Component Selection (IS-AFS) You can set in the BOM whether a dependent requirement is to be used for categories of header materials.

0.2.6 AFS Filter (IS-AFS-PP) Function in the AFS MRP list and AFS stock/requirements list to limit the display of SKU data for a particular AFS material.

0.2.7 AFS First-Level Contract Materials Management

(IS-AFS-MM) The basis for a multi-level contract in purchasing. The AFS first level contract is already created in an early planning phase. It contains information on the total quantity of materials in a material group, which you want to obtain from a vendor within a certain time period. You can create additional value contracts and quantity contracts with reference to an AFS first level contract at a later time, which contain detailed information at material level or SKU level.


0.2.8 AFS MM Route Determination Materials Management

(IS-AFS-MM) AFS function for determining the move time from a vendor to the receiving plant depending on the route and various shipping conditions.

0.2.9 AFS MRP Cockpit (IS-AFS-PP-MRP) Initial screen, which provides an overview of MRP-relevant transactions and check reports in AFS. In the AFS MRP Cockpit, the transactions and check reports are grouped according to usage areas, which enables you to directly call specific transactions for a specific material from the overview.

0.2.10 AFS MRP list compression Production Planning and

Control (IS-AFS-PP) AFS MRP list and AFS stock/requirements list function to minimize the display of grid values and categories. This provides a better overview and increases the performance of the AFS evaluation lists.

0.2.11 AFS Quota (IS-AFS-MM) Definition of a restriction of the import of certain products from a third country. The assignment of quota is material-specific. If the quota check is activated, the requirement quantities of purchase requisitions, purchase orders and the source allocation are checked against quotas. This can possibly lead to a restriction of the vendor selection.

0.2.12 AFS reasons for not assigned sources Materials Management

(IS-AFS- MM) Reason for not assigning a vendor during the source allocation run.

0.2.13 Allocation Event (IS-AFS-ARUN) Event, which occurs if a release check has failed. This provides the system with information as to why requirements could not be allocated (for example, due to the credit check).

0.2.14 Allocation Mode (IS-AFS-ARUN) Determines how the selected allocation run type proceeds. There are three allocation run modes: In the normal mode an order is updated if it has been released. The stock is then assigned to this order and can be delivered in the next step. The simulation mode performs just like the normal mode, but does not update the orders. That means that requirements are not assigned to certain stock. With this mode you can simulate and test results. The preview mode makes a fictitious assignment of existing requirements to future stock. This mode is used to test possible future scenarios and functions as an early warning system. These assignments are saved in a separate database. The actual stock/requirements situation is not updated.


0.2.15 Allocation Status (IS-AFS-ARUN) Status, which provides information regarding the result of a stock allocation. The allocation status is determined depending on the allocation event and the final action for open and allocated quantities. It not only provides the user with information on the current status of an allocation, but also serves as a selection criterion in the Management Tool and within Reorganization a basis for determining the ARun-specific MRP status

0.2.16 ARun Type Allocation Run

(IS-AFS-ARUN) A grouping of all the rules that influence the allocation run. You can define several allocation run types in Customizing that have different rules according to the respective business circumstances. Each allocation run is controlled by an allocation run type.

0.2.17 Assembly Scrap Production Planning and

Control (PP) A percentage of the quantity of an assembly that does not meet the required production quality. In material requirements planning (MRP), this percentage scrap is considered for all components contained in the assembly. The only components excluded from this calculation are those for which the net operation scrap indicator is set. You enter the assembly scrap percentage in the material master from the MRP view.

0.2.18 Assortment Sales and Distribution

(IS-AFS-SD) Description in AFS for sales and distribution BOMs, in which at least one component material contains a material grid. Assortments are not planned as one unit, but rather by their individual components. They have no sales price. The price results from the sum of the individual component prices. The processing of the assortment (pricing, inventory management, and delivery processing) takes place at component level. The assortment is used as input help in the sales order. In addition, it is possible to offer complete combinations with a previously defined quantity ratio.

0.2.19 Average Ratio Basic Data (IS-AFS-BD) Ratio in presizing of one dimension value/period part/category against all other dimensions.

0.2.20 Backflush Inventory Management

(MM-IM) The non-manual posting of an issue of components some time after their physical withdrawal for an order. The goods issue posting for backflushed components is performed automatically at the time of order completion confirmation.


0.2.21 BAPI (Business Application Programming Interface) Service BAPIs

(BC-MID-API) A standardized programming interface that facilitates external access to business processes and data in the SAP System. You define Business Application Programming Interfaces (BAPIs) in the Business Object Repository (BOR) as methods of SAP business objects or SAP interface types. BAPIs offer an object-oriented view of business components in the SAP System. They are implemented and stored as RFC-enabled function modules in the Function Builder of the ABAP Workbench.

0.2.22 Bill of Material Production Planning and

Control (PP) A complete, structured list of the components that make up a product or assembly. The list contains the object number of each component, the quantity, and unit of measure. The components are known as BOM items.

You can create the following BOM categories in the SAP System:

• Material BOM

• Document structure

• Equipment BOM

• Functional location BOM

• Sales order BOM

0.2.23 Bundle Production Planning and

Control (IS-AFS-PP) Apparel industry term for all pattern pieces in a marker that will be sewn together to form a garment in a certain size, multiplied by the number of fabric plies in a stack. The information on bundles is maintained in the planned orders and production orders in the AFS solution.

0.2.24 Category (IS-AFS-BD) Characteristic of an AFS material which allows a division of this material into different qualities or countries of origin, for example. Category structures, stock and requirements categories and their values are defined in Customizing and are combined plant-specifically into coverage strategies. By assigning coverage strategies to AFS materials, you not only determine the valid stock and requirements categories for the corresponding materials, but also which requirements should be covered by which stock categories. The definition of categories therefore always influences the MRP.


0.2.25 Compress Production Planning and

Control (IS-AFS-PP) AFS MRP list function to hide certain characteristics of MRP elements.

0.2.26 Condition Record Sales and Distribution (SD) A data record that stores a condition or condition supplements. Conditions include:

• Prices

• Discounts and surcharges

• Taxes

• Output

0.2.27 Consumption Priority Production Planning and

Control (IS-AFS-PP) Indicator in AFS MRP which determines whether the system chooses stock by category or consumption mode and in which order.

0.2.28 Conversion Indicator Basic Data (IS-AFS-BD) Indicator in AFS Basic data used to define conversion of grid values in the AFS MRP list and AFS Stock/Requirements list.

0.2.29 Costing Run Product Cost Controlling

(CO-PC) A tool that provides the opportunity to cost multiple materials at the same time. In Product Cost Planning, costing runs are used to cost materials based on planning data. This type of costing run is based on a user-defined name and a date. In Actual Costing/Material Ledger, costing runs are used to cost materials with actual data. This type of costing run is based on a costing run profile and a period.

0.2.30 Cost Rollup Product Cost Controlling

(CO-PC) A process in material costing in which costs at lower production levels are allocated to the highest level. Costs are rolled up by cost component, assuring that the origin of the costs remains visible after rollup. For example, labor costs in preassembly are rolled up into the cost of goods manufactured of the end product as internal labor costs rather than material costs. Any costs assigned to cost components that are not rolled up are not included in cost estimates of higher costing levels.


0.2.31 Cost of Goods Sold Product Cost Controlling

(CO-PC) A sum of the costs incurred through the value-added process. The cost of goods sold consists of the following costs:

• Cost of goods manufactured

• Sales overhead

• Special direct cost of sales

• Administration overhead

0.2.32 Country Group (IS-AFS-MM) Grouping of countries for which the political restrictions or AFS quota are equally valid (e.g. EU). The grouping of countries facilitates the entry and processing of country-specific restrictions and AFS quota.

0.2.33 Coverage Strategy Basic Data (IS-AFS-BD) A strategy that contains all stock and requirement category values valid for certain materials. Coverage strategies are defined in Customizing plant-specifically and dependent on the category structure and are then assigned to individual AFS materials in the material master. Since you specify in coverage strategies which requirements should be covered by which requirement categories, the coverage strategies have a controlling influence on the MRP.

0.2.34 Cross-Docking Sales and Distribution

(IS-AFS-SD) Method of processing merchandise in a distribution center. The goods are brought from goods receipt directly to goods issue without being put away. Cross-docking does not involve shipping units being repacked between being received and issued from the distribution center.

0.2.35 Customer Relationship Management

(CRM) Supports all processes involving direct customer contact throughout the entire customer relationship life cycle - from market segmentation, sales lead generation and opportunities to post-sales and customer service. Includes business scenarios such as field sales and service, Internet Sales and Service and the Customer Interaction Center.

0.2.36 Customer Restriction Sales and Distribution

(IS-AFS-SD) Purchasing restrictions for a source material for a certain customer at a certain country or vendor.


0.2.37 Deallocate (IS-AFS-ARun) To reverse or undo allocations.

0.2.38 Delivery Completed Indicator Inventory Management

(MM-IM) An indicator denoting a closed purchase order item for which no more goods receipts are expected.

0.2.39 Delivery Group Sales and Distribution (SD) The manual or automatic grouping of one or more items (main items and/or sub-items) in a sales order so that they can be delivered on the same date. An item that is confirmed for several delivery dates can be confirmed for a single delivery date if it is assigned to a delivery group. This is the latest delivery date of all the confirmation schedule lines of this item. All items that are assigned to the same delivery group are confirmed for a single delivery date. This is the latest delivery date of all these items. If the sales order is marked in the header for complete delivery, then all items will be assigned to the same delivery group.

0.2.40 Demand Management Production Planning

(PP-MP) The planning of requirement quantities and requirement dates for finished products and important assemblies, and definition of the strategy for planning and producing or procuring a finished product. The result of demand management is the demand program. Demand management can be done manually or based on previous planning results such as sales planning, SOP, and forecast.

0.2.41 Dependent Requirements Material Requirements

Planning (PP-MRP) The planned material requirements that are caused by the production of higher-level assemblies. In the MRP procedure, dependent requirements are automatically created for the components that are necessary for the production of a planned order.

0.2.42 Deployment Supply Network Planning

(SNP) (APO-SNP) This planning process determines which demands can be fulfilled by the existing supply, after production is complete. If the produced quantities match the quantities planned prior to this in SNP planning, the result of the deployment is a confirmation of the SNP plan. If the available quantities are not sufficient to fulfill the demand, or if these quantities exceed the demand, the system makes appropriate changes. Deployment generates deployment stock transfers that serve as a basis for Transport Load Builder planning.


0.2.43 Deviation Quantity Production Planning and

Control (IS-AFS-PP) Quantity of a particular grid value in a BOM which differs from the default quantity at material level.

0.2.44 Dimension Basic Data (IS-AFS-BD) A freely definable element of an AFS grid. An AFS grid is composed of up to three dimensions. Dimensions are, for example, length, color, size, or width. Each dimension is composed of dimension values which are all valid entries for a particular dimension.

0.2.45 Dimension Value Conversion Basic Data (IS-AFS-BD) AFS function with which dimension values can be displayed differently in grids. Dimension values can, for example, be displayed in documents and reports in different languages, depending on users, materials, vendors, or customers. For example, the dimension value BLUE can be displayed as MODR in purchase orders for a Czech vendor, and as BLAU for a German speaking customer.

0.2.46 Discontinuation Production Planning and

Control (PP) A material is replaced by another one for a certain period. Discontinuation of a material causes the dependent requirements for the material to be rerouted for a certain period to another material.

0.2.47 Distribution Profile Basic Data (IS-AFS-BD) Profile which specifies the ratio in which material quantities should be distributed when using the presizing function. Distribution profiles can be created manually or via mapping for plants, requirements categories, grid values, and periods.

0.2.48 Distribution Rule Sales and Distribution

(IS-AFS-SD) You can use this in a multi-store order II to influence how existing stocks should be distributed to single stores in the event of a stock shortage. The distribution is possible according to the first in first out principle or the equal distribution principle.

0.2.49 Dynamic Credit Check Allocation Run

(IS-AFS-ARUN) A special check procedure during the allocation run. The system not only checks for existing stocks, but also whether the sold-to party's ordered material is still within the permitted credit limit. If this is not the case, no stock assignment occurs in the allocation run. The setting of the dynamic credit check in the allocation run is optional.


0.2.50 Elementary Field (IS-AFS) A field which is composed of one or more category structure fields or dimension values and which can be assigned to values in an external information system such as LIS or BW. The elementary fields make up all of the desired fields you want to exchange with external systems. Example You can create the elementary field color and assign it to either the category structure field color or the dimension color.

0.2.51 Extractor SAP Business Information

Warehouse Extractors

(BC-BW) Program used to fill the extraction structure of a DataSource with data from datasets in the SAP source system.

0.2.52 Factory Status (IS-AFS-MM) Criterion for the vendor ranking of the source allocation. The factory status is stored in the vendor master record and valuates the relation between you and your vendor.

0.2.53 FIFO (first in first out) Allocation Run

(IS-AFS-ARUN) The principle used in the allocation run of assigning existing stocks to requirements. If there is not enough stock to fulfill all the requirements of all customers, the assignment of the stocks takes place corresponding to the time sequence in which the requirements occurred. As long as you have not specified your own sort sequence, the system first fulfills the requirements of orders that were placed at the beginning of the allocation time period.

0.2.54 Fill-Up (IS-AFS-ARUN) Logic, which enables the successive allocation of free stock to open requirements. This strategy makes it possible to reserve successful stock allocations for orders, whose release check has failed. That way you make sure that the stock that has already been allocated to this requirement remains reserved and will not be available for the coverage of other requirements. Using the reallocation, open requirements can be continually allocated stock until the valid release rules are fulfilled and the order can be released for delivery.

© SAP AG ICP320 11-10

0.2.55 Final Action (IS-AFS-ARUN) Procedure defined in the release rule, which determines how the open and allocated requirements quantities are handled at the end of an allocation run.

When you define the final action, you control

• the reservation status for allocated quantities (for example, manual release required)

• whether and under which circumstances open quantities in orders should be deleted or should remain open until sufficient stock is available

0.2.56 Final Destination (IS-AFS-MM) The time at which you bindingly inform your vendor of the plant to which an ordered material should be delivered. To guarantee the greatest flexibility, the receiving plant can be subsequently entered and changed in purchase orders for AFS materials. The specification of the final destination should be made shortly before the material is packed and provided for shipping.

0.2.57 Final Determination (IS-AFS-MM) The final point in time that SKU values and quantity entries can be subsequently changed in purchase orders.

0.2.58 Final Release Check (IS-AFS-ARun) Action, which checks the allocation result and corrects it, if necessary. A final release check always takes place if the sorting used in an allocation run does not correspond to the sorting recommended by SAP AG.

0.2.59 Follow-Up Material (IS-AFS-PP-MRP) Material, which replaces a discontinued material. In discontinuation, the requirements planning diverts the requirement for the discontinued material to the follow-up material after the stock has been completely used up. For AFS discontinuation, the follow-up material must correspond to the discontinued material in the following ways:

• same base quantity

• same grid

• same coverage strategy

• same MRP category

0.2.60 General Ledger Financial Accounting (FI) A ledger designed to present the values used in creating financial statements. It records values at company code level.

© SAP AG ICP320 11-11

0.2.61 Global Release Rule (IS-AFS-ARun) Comprehensively defined rule, which determines which checks should run during an allocation before stock is released for delivery. The global release rule is valid for all requirements that have been selected in an allocation run and for which no order-specific or customer-specific release rules have been stored.

0.2.62 Grid (IS-AFS-BD) Important element of the AFS basic data that maps the characteristic values of an AFS material in grid values and permits combinations consisting of up to three dimensions (for example color, size, length). The use of master, purchase and sales grids facilitate the valuation, procurement and sale of AFS materials at SKU level.

0.2.63 Grid Control Data (IS-AFS-BD) Optional additional data to store data per grid value in MM and SD. This data can be used to define and control presizing and other AFS functions and prices and other conditions.

0.2.64 Grid Dimension Sorting (IS-AFS-PP) Function in AFS Basic data to sort dimension values alphabetically.

0.2.65 Grid Entry Basic Data (IS-AFS-BD) Function in AFS to enter quantities in a grid instead of line-by-line.

0.2.66 Grid History (IS-AFS-BD) Function in grid maintenance to log which changes where made to grid values and when.

0.2.67 Grid Report (IS-AFS-BD) Report function of AFS grid maintenance to display all materials using a certain grid, all sales or purchasing grids for a master grid or the grid history for a material grid.

0.2.68 Grid Value (IS-AFS-BD) Combination consisting of up to three dimension values in one grid. For example for the material shirts you could specify a grid value white (dimension: color), 52 (dimension: size), 40 (dimension: collar size). Quantities in sales and production orders, in procurement and sales are entered at grid value level for AFS materials.

0.2.69 Grid Value Assignment (IS-AFS-BD) BOM maintenance function to assign component-level grid value to header-level grid level automatically if the same grid is used.

© SAP AG ICP320 11-12

0.2.70 Grid Value Group (IS-AFS-MM) Synonym of Price Group Combination of grid values that are procured at the same price (MM) or sold at the same price (SD).

0.2.71 Grid Value Sorting (IS-AFS-BD) Display function in AFS MRP list to sort procurement proposals and requirements according to certain criteria.

0.2.72 Grouping Rule (IS-AFS-ARun) Rule, according to which the grouping of the requirements takes place during an allocation run. In the grouping rule fields are defined, according to which requirements should be grouped (for instance, sales area, sales document type). The grouping rule is stored in the allocation type. In addition, customer-specific grouping rules can be defined in a grouping strategy, which is stored in the customer master and which overrides the grouping rule in the allocation type.

0.2.73 Grouping Strategy (IS-AFS-ARun) Strategy, which allows different requirements to be allocated according to different rules to the same customer. You use grouping rules to specify the fields, according to which the grouping of the requirements should occur in an allocation run (for example, sales document type, sales area). In the determination rule, the grouping rules are assigned to a grouping strategy. The grouping strategy is stored in the customer master. This makes it possible, for instance, to allocate an individual release rule, which differs from the rule in the allocation type, to the requirements of a customer depending on the sales document type.

0.2.74 Heart Grid Value Description for the grid values of a material which you sell or purchase very frequently. When maintaining the grid control data for a material, you can flag these grid values as heart grid values.

0.2.75 Heart Size – invalid synonym of Heart Grid Value

0.2.76 Include Function invalid synonym of AFS Component Selection

© SAP AG ICP320 11-13

0.2.77 InfoCube Warehouse Management

(BW-WHM) The central objects, on which reports and analyses are based in BW, are known as InfoCubes. An InfoCube describes a self-contained dataset (from the reporting view), for example, for a business-orientated area. This dataset can be evaluated with the BEx query.

With an InfoCube, you might be dealing with

• A BasicCube, that shows a quantity of relational tables in the star schema,

• A RemoteCube, whose transaction data is not managed in the Business Information Warehouse, or

• A MultiCube that presents a view on data from several BasicCubes or RemoteCubes.

Unlike the ODS object, the data fields of the BasicCube fact table cannot contain any character fields as key figures. Character fields are thus interpreted as keys.

0.2.78 InfoObject SAP Business Information

Warehouse (BW) Business reporting objects (customers, sales,...) are called InfoObjects in BW. They are categorized as characteristics, key figures, units, time characteristics, and technical characteristics (for example, request number).

0.2.79 InfoSource Warehouse Management

(BW-WHM) An InfoSource describes a quantity of all available data for a business event, or type of business event (for example, Cost Center Accounting). An InfoSource is a quantity of information that has been grouped together and can be said to belong together logically from a business point of view. InfoSources can either contain transaction data or master data (attributes, texts, and hierarchies). An InfoSource is always a quantity of InfoObjects that can be said to belong together logically. An InfoSource always refers to one scenario from an application (for example, Financial Accounting).

0.2.80 Line Entry Basic Data (IS-AFS-BD) Default display type of SKUs where the system displays all values in line form instead of in a grid form.

© SAP AG ICP320 11-14

0.2.81 Lot-Sizing Procedure Production Planning and

Detailed Scheduling

(APO-PPS) Procedure in production planning that is used to calculate the purchase order quantities of receipts.

In the SAP APO (Advanced Planner and Optimizer), the following standard lot-sizing procedures are available, which can be configured in the location product master.

• Exact lot size

• Fixed lot size

• Period lot size

• Reorder point procedure

• For further lot-sizing procedures there are special heuristics available, e.g.

• Groff lot-sizing procedure

• Reorder point planning

0.2.82 Lot-Sizing Procedure Material Requirements

Planning (PP-MRP) A procedure in material requirements planning used to calculate order and production quantities (lot sizes).

Lot-sizing procedures are divided into the following groups:

• Static

• Period

• Optimum

0.2.83 Management Tool (IS-AFS-ARUN) Using the management tool, you can manually change or delete the results of the allocation run. This therefore allows you to go back and manually correct the allocation run results.

0.2.84 Map Basic Data (IS-AFS-BD) Process of calculating the relationship between SKUs from historical sales data to create distribution profiles which can be used by presizing. Mapping a material helps to create as accurate of a distribution profile as possible.

0.2.85 Mapping IDoc interface (BC-SRV-EDI) The pattern according to which the data elements of an EDI message type are assigned to the fields of the IDoc type.

© SAP AG ICP320 11-15

0.2.86 Marker Production Planning and

Control (IS-AFS-PP) Number for marker used in production order.

0.2.87 Master Grid Basic Data (IS-AFS-BD) Total of all characteristic values in which an AFS material can be purchased, produced and sold in your company. Master grids are defined across plants. Using master grids you specify the specific value and the combination possibilities of dimension values.

0.2.88 Mass Data Change (IS-AFS) Tool for changing fields of several master data records at once.

0.2.89 Mass Document Change (IS-AFS) A special report for quickly changing a large amount of sales documents at once (sales orders, contracts).

0.2.90 Master Grid (IS-AFS-BD) Total of all characteristic values in which an AFS material can be purchased, produced and sold in your company. Master grids are defined across plants. Using master grids you specify the specific value and the combination possibilities of dimension values.

0.2.91 Material ID Basic Data (IS-AFS-BD) ID set in AFS Basic data view of material master to assign a grid value conversion type to an AFS material.

0.2.92 MRP Module (IS-AFS-PP) Key in the stock category allocation table of the MRP to assign different AFS MRP logics to the coverage strategies.

0.2.93 MPS (Master Production Scheduling) Material Requirements

Planning (PP-MRP) The parts or products, in master production scheduling, that influence company profits or that take up critical resources are planned. Master schedule items are marked with the MRP procedure for master production scheduling.

0.2.94 Material Requirements Planning (PP-MRP) A term for the actions of creating a production plan or procurement plan for the materials in a plant or company.

© SAP AG ICP320 11-16

0.2.95 Minimum Quota (IS-AFS-ARun) Quota, which specifies the minimum percentage of the order quantity required to release the corresponding stock for delivery. A different minimum quota can be defined for each release level (total order, item level, dimension level).

0.2.96 Multi-Level Contract (IS-AFS-MM) A structure in purchasing with several interdependent contracts based on an AFS contract. In order to block capacities at a vendor early on, an AFS contract for diverse materials of one material group is created in an early planning phase. With reference to this AFS contract, further value and quantity contracts can be created at a later time, which contain detailed information at material level or SKU level.

0.2.97 Multi-Store Order (MSO) (IS-AFS-SD) An order type in which the sold-to party orders for any number of stores as ship-to party. The delivery of the goods can thus occur directly or the goods can be flagged to be sent to a distribution center for further delivery to the stores.

0.2.98 Negative Stock Inventory Management

(MM-IM) A provisional stock situation that occurs if a material is available in stock, but the relevant goods receipts have not been made. If a material withdrawal is posted before posting the receipts, the stock figure can be temporarily negative.

0.2.99 No-Grid Material Basic Data (IS-AFS-BD) An AFS material containing batches with AFS grid information about AFS components but without a grid.

0.2.100 Open Quantity (IS-AFS-ARun) Order quantity, which could not be allocated stock due to the current stock situation.

0.2.101 Open-to-Delivery (IS-AFS-ARun) Time frame, on which the allocation of requirements and stock during an allocation run is based. According to your settings, the system independently calculates the open-to-delivery window for each allocation run. Only those requirements, whose delivery dates fall within this date interval and who match the selection criteria, will be included in the allocation run.

© SAP AG ICP320 11-17

0.2.102 Overhead Costing Controlling (CO) The most common method of costing cost objects in Cost Object Controlling (CO-PC-OBJ). This method first assigns the direct costs from Cost Element Accounting (CO-OM-CEL) to the cost object. Prorated overhead costs are then applied to the cost object in proportion to the direct costs, expressed as a percentage.

0.2.103 Overload Capacity (IS-AFS-MM) Part of the vendor capacity. In addition to the total capacity, you agree on an overload capacity with every vendor, which the vendor is willing to perform for you in special cases. Overload capacities are specified periodically and used after the consumption of the total capacity for the procurement of materials. The vendor capacity forms a decisive criterion as the total of the total capacity and overload capacity for the assignment of the fixed vendor in the source allocation.

0.2.104 Pegged Requirement Material Requirements

Planning (PP-MRP) The pegged requirement shows the order from the next higher level of the bill of material that is the source of the requirement in a lower level, in the evaluations for material requirements planning.

0.2.105 Planned Independent Requirement Material Requirements

Planning (PP-MRP) A planned requirement quantity for a finished product in a period of time. It is not based on sales orders.

0.2.106 Price Group see Grid Value Group

0.2.107 Preference SKU Production Planning and

Control (IS-AFS-PP) SKU whose price is representative for SKUs assigned to the same preference group

Use

• Materials with quantity structure while a SKU Costing run one cost estimate will be created for each Preference SKU. The quantity structure will be determined on basis of the grid dimension and category of this SKU.

• Materials without quantity structure a price can be maintained for each Preference SKU. The price will be active when the AFS price activation has been executed.

© SAP AG ICP320 11-18

0.2.108 Presizing Basic Data (IS-AFS-BD) An AFS function which helps in the distribution of requirement and procurement quantities of AFS materials to certain plants, requirement categories, grid values, or periods. You specify in a distribution profile the proportion in which the material quantities should be distributed and assign the distribution profile to the corresponding materials.

Example: You specify in a distribution profile that quantities of the material "Men's T-shirts" should be distributed as follows:

• 30 percent to sizes L and XL each

• 20 percent to size XXL

• 10 percent to sizes M and S each.

If you then create a purchase order for 100 pieces, enter the corresponding grid values and use the presizing function, the system will distribute the material quantity in accordance with the distribution profile to the grid values.

0.2.109 Price Control Materials Management

(MM) An indicator determining the procedure used for material valuation. The following procedures are available in the standard system:

• Valuation at standard price

• Valuation at moving average price or, if the material ledger has been activated, periodic unit price

0.2.110 Product Group Logistics - General (LO) A collection of materials defined by user criteria. These can be products, for example, from a similar product group, or, they may be finished products produced on the same machine when there is a bottle-neck. A product group can be single-level or multi-level. Product groups are multi-level if they include products from other product groups. However, the lowest product group in the hierarchy must contain materials.

0.2.111 Production Resource Tool Production Planning and

Control (PP) A moveable operating resource used in production or plant maintenance.

0.2.112 Purchase Grid Materials Management

(IS-AFS-MM) A subset of a master grid. With the aid of purchase grids you specify which of the grid values you defined in the master grid for an AFS material are permitted in purchasing. Purchase grids are always uniquely derived from a master grid and contain its grid values at most.

© SAP AG ICP320 11-19

0.2.113 Purchasing Info Record (MM-PUR) A source of information for the procurement of a certain material from a certain vendor.

0.2.114 Purchase Requisition Combination Materials Management

(IS-AFS-MM) AFS function to combine purchase requisitions during the assignment of vendors to purchase requisitions in the source allocation run.

0.2.115 Query Business Explorer

(BW-BEX) Collection of a selection of characteristics and key figures (InfoObjects) for the analysis of the data of an InfoProvider. A query always refers exactly to one InfoProvider, whereas you can define as many queries as you like for each InfoProvider. You define a query in the BEx Query Designer, in which you select InfoObjects or reusable structures for an InfoProvider and specify the view of the data (query view) by distributing them to filters, rows, columns, and free characteristics. You used this saved query view as a basis for data analysis and reporting in the BEx Analyzer, in BEx Web applications, in BEx Mobile Intelligence, or in formatted reporting.

0.2.116 Reallocation Rule (IS-AFS-ARUN) Rule, which determines whether allocations from previous allocation runs should be included in the current allocation run. The reallocation rule is the basis for a successive allocation of stock to orders with open requirements, according to the fill-up logic.

0.2.117 Release Rule (IS-AFS-ARUN) Rule, which determines which checks should be run during an allocation before allocated stock is released for delivery. Release rules can be globally defined or defined specifically for individual customers, groups and orders. The release rule specifies for example the following:

• The minimum and maximum percentages of the order quantity which must / should be allocatable at the various release levels (total order, item level, dimension level) before the corresponding stock is released for delivery.

• Whether a credit check should take place at the various release levels and how the system issues the result of this check (for instance, as an error or warning).

© SAP AG ICP320 11-20

02.118 Release Strategy Purchasing (MM-PUR) A plan defining the release codes with which a purchase requisition item, a complete purchase requisition, or a complete external purchasing document must be released (that is, approved) and the sequence in which release is to be effected using these codes. For example, you can establish a release strategy for all purchase requisitions with a value in excess of a certain figure.

0.2.119 Reorganization Allocation Run

(IS-AFS-ARUN) The reorganization enables you to change or undo the results of the allocation run. This way you can react to a changed stock/requirements situation at any time after an ARun. Since the reorganization can be started using a background job, large data quantities can be processed outside of the normal office hours.

0.2.120 Replenishment Lead Time Material Requirements

Planning (PP-MRP) The total time for the in-house production or for the external procurement of a product. In in-house production, the replenishment lead time is determined to cover all BOM levels.

0.2.122 Requirements Category Logistics Execution (LE) The goods transfers and stock quantities in the Warehouse Management system contain a reference to their origin. The requirement type refers to the origin type, for example, goods receipt for purchase order or goods issue to cost centers. The requirement number is the originating document, for example, the purchase order number or the cost center.

0.2.122 Requirements Grouping Allocation Run

(IS-AFS-ARUN) Sales orders can be grouped together in an allocation run. Individual groups can then be processed differently, unlike the allocation run type. Sales orders with identical data form an allocation group. You must determine which individual fields are relevant for forming the groups. The grouping is the prerequisite for using the different allocation logics of the allocation run.

0.2.123 Requirements Selection Allocation Run

(IS-AFS-ARUN) The requirements selection controls which requirements are considered by the allocation run.

© SAP AG ICP320 11-21

0.2.124 Requirements Sorting Allocation Run

(IS-AFS-ARUN) You can define a separate sequence for the allocation process that overrides the original sequence in which the orders were received. You can prioritize orders according to certain criteria. That means you can determine which orders should be allocated first. The sorting is based on requirements and schedule lines. Example: Customers that have a high delivery priority should always be supplied before customers with a normal or low delivery priority.

0.2.125 Rescheduling Sales and Distribution (SD) An automatic processing of backorders. Availability is checked again and a new date is created if necessary. The criteria delivery priority, entry date and delivery date can be relevant for the check. The "rescheduling" program processes sales document items contained in the item directory for the material. Open items and schedule lines for stock transfer orders, scheduling agreements, and purchase requisitions (items only) are considered for the selected materials. You can analyze the last rescheduling run using the evaluation report for a rescheduling run.

0.2.126 Request for Quotation Purchasing (MM-PUR) A request from a purchasing organization to a vendor (external supplier) to submit a quotation for the supply of materials or the performance of services.

0.2.127 Rounding (IS-AFS-MM) This allows you to round quantity entries in purchasing documents on the basis of rounding factors and a rounding method. Rounding factors can be defined for every SKU and make the rounding of SKU quantities possible to a multiple of the rounding factor. With the help of the rounding method you specify, among other things, whether the quantities should be rounded up or down.

0.2.128 Routing Production Planning and

Control (PP) A description of the production process used to manufacture plant materials or provide services in the production industry.

0.2.129 Sales Grid Sales and Distribution

(IS-AFS-SD) A subset of a master grid that contains the grid value variants of a material for use in sales.

© SAP AG ICP320 11-22

0.2.130 Season Processing (IS-AFS-SD) A parallel or overlapping processing in the apparel and footwear industry of various collections (for various seasons or lines). This process involves very large data quantities that belong to different seasons. They must, however, be managed at the same time and assigned to the corresponding seasons.

0.2.131 Selection Set Allocation Run

(IS-AFS-ARUN) Prerequisite for processing allocation runs using the background processing. Several different requirements selections can be combined into one selection set. This enables you to include several allocation runs in one background job.

0.2.132 SKU (Stock Keeping Unit) Basic Data (IS-AFS-BD) A detailed schedule line of an AFS material. AFS materials can be mapped in various grid values (e.g. 38/yellow) and category values (e.g. quality A/country of origin D). As long as AFS materials are only mapped in grid values or only in categories, a grid value or the AFS material in a category form a valid stock keeping unit. If a master grid and a coverage strategy are assigned to an AFS material, the stock keeping units correspond to the possible combinations of grid and category values.

0.2.133 SKU group procedure Production Planning and

Control (IS-AFS-PP) Technique in some AFS MRP lot-sizing procedures which uses SKU groups to determine lot sizes.

0.2.134 SKU Level Horizon Production Planning and

Control (IS-AFS-PP) Period in which the AFS MRP carries out planning at SKU level. Requirements outside of the SKU horizon are planned only at material level. Planning at material level and at SKU level in the SKU horizon is carried out separately. That means that requirements at material level cannot be satisfied by procurement at SKU level.

0.2.153 SKU Level Horizon Method 1 Production Planning and

Control (IS-AFS-PP) MRP search method where MRP only uses stock at material level beyond the SKU level horizon to satisfy requirements within the SKU level horizon at SKU level.

© SAP AG ICP320 11-23

0.2.136 SKU Level Horizon Method 2 Production Planning and

Control (IS-AFS-PP) MRP search method which allows MRP to allocate stock at SKU level which is beyond the SKU level horizon to requirements before the horizon at SKU level.

0.2.137 SKU quantity adjustment Production Planning and Control (IS-AFS-PP) Function to copy marker or bundle quantities at SKU level to overwrite SKU quantities in AFS planned orders and production orders.

0.2.138 SKU Status Production Planning and

Control (IS-AFS-PP) Controls AFS discontinued materials at SKU level.

0.2.139 SNP (Supply Network Planning) (APO-SNP) A module in the Advanced Planner and Optimizer (APO) that enables organizations to determine sourcing, production plans, distribution plans, and purchasing plans. The system draws on the data universally available in liveCache to optimize such plans based on optimization algorithms and heuristic approaches that enable the planner to define rules and inventory policies. As an integral part of the overall supply network planning solution, APO's Deployment solution enables planners to dynamically rebalance and optimize the distribution network at execution time. The Deployment function in SNP determines optimized inbound and outbound distribution of available supply in response to short-term demand, including customer orders, stock transport requirements, and safety stock requirements. Deployment logic considers a wide variety of short-term constraints, including transportation, warehouse handling capacity and calendars. The primary purpose of the Transport Load Builder (TLB) is to use the single product transport recommendations calculated by Deployment to create multi-product loads while ensuring vehicles are filled to maximum capacity.

© SAP AG ICP320 11-24

0.2.140 SOP (Sales and Operations Planning) Production Planning and Control (PP) A forecasting and planning tool for setting targets for sales, production, and other supply chains based on historical, current, or estimated data. Resource planning can be performed to determine work center capacities and other resources required to meet targets. SOP supports high-level planning of complex planning hierarchies and detailed planning of finished products. A top-down or a bottom-up approach to planning is possible. The system can be configured so that target values set at one organizational level are distributed (aggregated and disaggregated) automatically to all other organizational levels in the hierarchy, for example, to all distribution channels, materials, and plants in a sales organization, or so that each level is planned separately. Sales & Operations Planning includes: standard SOP and flexible planning. Standard SOP comes preconfigured with the system. Flexible planning offers options for customized configuration. Planning in standard SOP is based on product group hierarchies and is performed level by level. Flexible planning is performed on hierarchies containing chosen organizational levels, for example, sales organization, distribution channel, material, and plant. In flexible planning, users can define the content and layout of planning screens. The component can run in a distributed environment using Application Link Enabling (ALE).

0.2.141 Source Allocation (IS-AFS-MM) Analyzing tool that supports the evaluation and selection of the appropriate vendors for your purchase orders for materials. The source allocation uses different selection criteria for this, such as personal and company preferences, import restrictions from a third country, or the capacity situation of the respective vendors. After the optimum vendors have been found, they are written in the purchase requisitions as fixed vendors.

0.2.142 Split Valuation Invoice Verification (MM-IV) An option that lets you manage stocks of a single material in a plant in different stock accounts in terms of value. You can valuate different stocks of the same material separately.

Example Some stocks of a material can be procured externally. Others are produced internally. Using split valuation, you can assign your "bought-out" stocks and your "made-in" stocks to different accounts and valuate the "bought-out" stocks at different prices to the "made-in" stocks. Such stocks can be subject to different price controls.

0.2.143 Spread (IS-AFS-ARUN) Logic, which can be used in the case of stock shortage to equally distribute the available stock among the open requirements.

© SAP AG ICP320 11-25

0.2.144 Stock Selection Allocation Run

(IS-AFS-ARUN) The stock selection controls which stock is assigned to the existing requirements by the allocation run. Different business processes require the use of different stock types.

Example: For purchase-to orders, only the corresponding sales order stock should be assigned, whereas the entire available stock is used for a standard order.

0.2.145 Stock Sorting (IS-AFS-ARUN) Option, which allows you to sort stock according to certain criteria, such as batch number, size, stock type or storage location.

0.2.146 Stock Transport Order Materials Management (MM) A purchase order used to request or instruct a plant to transport material from one plant to another (that is, to effect a long distance physical stock transfer) within the same corporate enterprise. The stock transport order allows delivery costs incurred as a result of the stock transfer to be charged to the material transported.

0.2.147 Supply Chain Cockpit (SCC) (APO-SCC) One of the planning applications of the Advanced Planner and Optimizer (APO). SCC is a graphical instrument panel for modeling, navigating and controlling the supply chain. It acts as a top planning layer through which the user can oversee other planning areas within an enterprise including demand, manufacturing, distribution and transportation. SCC has three components:

• Supply Chain Cockpit provides a detailed, graphical overview of complete chain.

• Supply Chain Engineer is used for modeling and maintaining the network model.

• Alert Monitor handles common exceptions and problems for all APO applications.

0.2.148 Third Dimension (IS-AFS-BD) One of the dimensions in an AFS grid which are displayed differently in grid maintenance.

0.2.149 Total Record Range Basic Data (IS-AFS-BD) Counts the number of grid history records.

© SAP AG ICP320 11-26

0.2.150 Transfer Structure Warehouse Management

(BW-WHM) The transfer structure is the structure in which the data from the source system is transported into the Business Information Warehouse. It displays a selection of fields for an extract structure of the source system.

0.2.151 Transfer Structure Product Cost Controlling

(CO-PC) A structure that controls the transfer of costs from the cost components of one cost component layout into the cost components of another cost component layout. If the cost component layout of the primary cost component split for the cost center activity prices is not the same as the cost component layout of the primary cost component split for the products, the transfer structure can be used to specify how the cost component split of an internal activity or process for a material cost estimate is transferred into the cost component splits of the material being costed. In contrast to the switch layout in Cost Center Accounting, which reassigns cost components within a single cost component layout, the transfer structure assigns cost components between two different cost component layouts.

0.2.152 Two-Level Rounding (IS-AFS-PP-MRP) Rounding technique, which MRP uses during the lot-size calculation. In two-level rounding, the system first rounds the material quantities at SKU level and then rounds at material level.

0.2.153 Valuation Category Invoice Verification (MM-IV) Criterion for the separate valuation of different stocks of a material managed under one material number. Reasons for such so-called "split valuation" include:

• Quality

• Batch

• Degree of purity

• Use or non-use in promotions

0.2.154 Valuation Type Invoice Verification (MM-IV) A subdivision of a valuation category in split valuation.

Example An enterprise manages its stocks of a material using the valuation category "Quality", comprising the following valuation types:

• High quality

• Average quality

• Inferior quality

© SAP AG ICP320 11-27

0.2.155 Valuation View Controlling (CO) A particular vantage point from which you can valuate your business transactions - that of an individual company, of the group as a whole, or of a profit center within the organization.

In the context of multiple valuation and transfer prices, you can define the following views:

• Legal view

• Group view

• Profit center view

Together with a currency type and a currency, the valuation view creates what is called a valuation approach.

0.2.156 VAS (Value-Added Service) (IS-AFS-SD) Services that improve the appearance, attractiveness and processing of a product, for example, packing, ticketing and special service.

0.2.157 Workbook Business Explorer (BW-BEX) A file containing several worksheets (an expression from Microsoft Excel terminology) You insert one or more queries in the workbook in order to be able to display them in the Business Explorer Analyzer. You can save the workbook in your favorites or in your roles.

0.2.158 Work in Process Product Cost Controlling

(CO-PC) The unfinished products whose costs are calculated in one of the following ways: By calculating the difference between the actual costs charged to an order and the actual costs credited to the order By valuating the yield confirmed to date for each milestone or reporting point, less the relevant scrap

0.2.159 Zero Quantity (IS-AFS-PP) Function in a BOM so that the system does not create any components for a certain SKU.