4111 Stock in Transit and New Features Available With SAP ERP 6.0

]Orange County Convention CenterOrlando, Florida | May 15-18, 2011

Stock in Transit@Company XYZ and newfeatures available with ERP 6.0 EHP5

Uwe Pfisterer

Solution Manager

SAP AG

© 2011 SAP AG. All rights reserved. 2Confidential

Agenda

Introduction “Stock in Transit

New Features & Scenarios in Logistics

New Features & Scenarios in Accounting

Demo

Customer Examples


Stock Transport Processes

Company Code

Plant

Stock Transport


2-Step

NB

GI: 643GR: 101

NLCC

DynamicallycalculatedSIT

1-Step 1-Step

UB

GI: 647+101

NL

1-Step

NB

GI: 645+101

NLCC

2-Step

UB

GI: 641GR: 101

NL

Stock intransit(MARC-TRAME)

OrderType

MovmtType

DeliveryType

Stockafter GI

2-Step

UB

‘GI’: 351GR: 101

Stock intransit(MARC-TRAME)

Existing Stock Transport Options in SAP ERP

STO w/o Shipping STO with ShippingSTO with Shipping STO with Shipping+InvoiceSTO with Shipping+Invoice

Cross-Company CodeIntra-Company Code


Stock Transport in theTrader‘s and Scheduler‘s Workbench (TSW)

Available in industrysolution Oil&Gas or withERP 6.0 EHP5 (BusinessFunction LOG_TSW_ECC)

Separate Pricing

New Master Data objectis used to depict stock in-transit Transport System(TS)

Each Transport Systemhas exactly one SAP plantunderneath it.

What is it ?


New Features & Scenarios inLogistics


Features & Functions of the new SIT Conceptin a nutshell

With enhancement pack 5 of ERP 6.0 SAPprovides an integrated solution to the processconsisting of

Introducing a valuated stock in transit that either belongsto the sending or the receiving plantNew order types and movement types and configurationto support the processAbility to use this new concept either for cross-companyprocesses or intra-company code processes

Enhancements in actual costing to connect the valuechain across company codesInclusion of intra-company profits (or mark-up) into thecost componentsGroup actual costing parallel to the legal view

CompanyA

CompanyB

Valuatedstock in transit

Logistics

Accounting


New in EHP5:New Concept for Stock In-Transit (SIT)

Sender Receiver

Sender‘sStock

In plant In transit In plantIn transit

OutboundDelivery

PurchaseOrder

Receiver‘sStock

Sender‘sStock

Receiver‘sStock

Sender‘sTransit Stock1

Sender‘sStock

Receiver‘sStock

Sender‘sTransit Stock2 Receiver‘s

Transit Stock

Sender‘sStock

Receiver‘sStock

Receiver‘sTransit Stock3

Immediate Transfer(1-step scenario)

Goods stay in sender’sownership during transfer

Ownership changesduring the transfer, e.g.upon arrival in the portof destination

Ownership changeswhen leaving the sender

0

New inEHP5!


Stock in Transit for Sales Processes

Sender Company Code External Customer

In plant In transit Delivery address

PurchaseOrder

Customer4 Sender‘sStock

Sender‘sTransit Stock

r4

Goods stay in sender’sownership and controlduring transfer to anexternal customer

CustomerSender‘sStock

Sender‘sTransit Stock

Returning goods are insender’s ownership andcontrol and will keep theoriginal values

Rejected ornotdelivered

The enhancement helps also in business with external customers to keepsold goods in the books until they are finally arrived at the customers andkeep control over returns

687 601 T

688

Sales Order

OutboundDelivery


New Features & Scenarios inAccounting


Motivation

GroupCompany

ACompany

B

CostsRaw Mat. 20Energy 25Labour 15Production 40

CostsRaw Mat. 100Energy 0Labour 0Production 0

Sales process

Actual costing provides no visibility intocost structure after inter-company sales

The enhanced Solution shall keep thecost transparency through intra-company sales and add freightcosts and intracompany profits tothe costs from the selling companycode from a group point of view

Issue Requirement


Sales Processwithout enhanced Cross-Company Actual Costing

Plant GroupMarketing

RegionalSalesOrg

Customer

CostsRaw Mat.EnergyLabourProductionMaintenanceFreightMarketingDutiesIntercompany profitSales Costs



RevenuesCostsRaw Mat.EnergyLabourProductionMaintenanceFreightMarketingDutiesIntercompany profitSales CostsProfit

In SAP standard an internal sales process cuts the value flow foractal costs. Costs will only be transparent for the last step inthe chain. Costs from previous steps will appear as rawmaterial costs only

Before the enhancement, a sales process does not transmit the internal costknowledge from a vendor to a purchaser. At the receiver the goods appear aspurchased raw materials.


Sales Processwith enhanced Cross-Company Actual Costing

Plant GroupMarketing

RegionalSalesOrg

Customer


CostsRaw Mat.EnergyLabourProductionMaintenanceFreightMarketingDutiesIntercompany profit PlantSales Costs

RevenuesCostsEnergyLabourProductionMaintenanceFreightMarketingDutiesIntercompany profit PlantSales CostsIntercompany profit Marketing

Profit

Profitability Analysis will make cost and profit contributions fromthe whole chain transparent.

Actual costs of the month in production, marketing and sales willbe compared with actual revenues

CostsRaw Mat.EnergyLabourProductionMaintenanceFreightMarketingDutiesIntercompany profit PlantSales CostsIntercompany profit Marketing

After the enhancement, the full cost information is collected along the group-internal supply chain and can be compared with the revenues achieved.


Demo


Company Code 1000

Planned for EHP5:3 New Possibilities to transfer Material

Create Billing document(with ref. to outb. delivery)

In-Transit Stock(Plant 1000)

Create Outbound Delivery(From Plant 1000 to 0001)

Create Purchase Order

Perform Goods Issue(VL02N: 681)

Perform Goods Receipt withreference to Outbound Delivery(MIGO: 109)


Company Code 0001

Perform POD(VLPOD: 685 + 107)

Create Invoice(automatically or manually)

Plant 1000 Plant 0001


Perform Goods Issue(VL02N: 683 + 107)

In-Transit Stock

In-Transit Stock

Perform Goods Receipt withreference to Outbound Delivery(VLPOD: 685 + 101)


1

2

3

Demo


Company Code 1000

Planned for EHP5:3 New Possibilities to transfer Material



Create Outbound Delivery(From Plant 1000 to 0001)

Create Purchase Order




Company Code 0001

Perform POD(VLPOD: 685 + 107)

Create Invoice(automatically or manually)

Plant 1000 Plant 0001


Perform Goods Issue(VL02N: 683 + 107)

In-Transit Stock

In-Transit Stock

Perform Goods Receipt withreference to Outbound Delivery(VLPOD: 685 + 101)


1

2

3

Demo


Customer Examples


Sales Process@HighTech Company X


Sales Proces@High Tech Company X

Create Billing document

Create Sales Order Create Purchase Order

Receive Invoice

ERP 6.0 [Company X] Customer

Create Outbound Delivery


In-Transit Stock Perform Goods Receipt +send Proof of Delivery

Maintain Proof of Delivery(VLPOD: Goods Issue 601)


Stock & Title Transfer@Trading Company Z



Create Outbound Delivery Create STO Purchase Order

Perform Goods Issue(VL02N)

Perform Goods Receipt withreference to Inbound Delivery(VL32N or MIGO)


Perform POD (VLPOD):- Title Transfer- Movements

Create Invoice(automatically via EDI)

Plant 0001

Perform Goods Issue(VL02N)

In-Transit Stock Perform Goods Receipt withreference to Inbound Delivery(VL32N or MIGO)

1

2

Inbound Delivery

Inbound Delivery

SPED

SPED

Update inbound delivery

TTO

TTDTTI

Plant 0002


External Vendor

Procurement@Automotive Company Y

Sales Order Purchase Order

Outbound Delivery / ASN

User-Exit: Post Goods Receipt107 in Background

ERP 6.0 [Company Y]

Inbound DeliveryDESADV idoc

Goods Receipt with referenceto Inbound Delivery (109) withVL32N

In-Transit Stock


Project Stock Transfer@Engineering Company V


]Thank you for participating.

SESSION CODE: 4111INSERT SESSION CODE

Please remember to complete and return yourevaluation form following this session.

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Appendix


Valuation View: Group Valuation

Group ValuationIn group view the transfer is valuated like a plant-to-plant transfer. The costs at the receiver willreflect the costs at the sender plantNo Intracompany Profit is shown. The PO and invoice values play no role for material valuationFreight costs and other planned delivery costs will be added at the receiverCost information from the sender will be keptNote: Internal invoice needs to be created via EDI-interface and not manually in MIRO

Plant 1Total cost 1000

Materials 500

Labor 400

Overhead 100

Freight

Intrac Profit 0

transfer

Shipper


Materials 500

Labor 400

Overhead 100

Freight 100

Intrac Profit 0Freightinvoice100,-

After period end, price differencesfrom the sending plant will betransferred to the receiving plant inmulti-level settlement, only in groupvaluation


Valuation View: Legal Valuation

Company Code Valuation (legal valuation)In legal view the transfer is valuated like a sales process. The costs at the receiver will reflect the PO valueinitially and finally the invoice valueThe difference between the cost at the sender site and the invoiced price is shown as a ‘mark-up’ or intra-company profit within the cost components*Freight costs and other planned delivery costs will be added at the receiverCost information from the sender will be ‘collapsed’ (Option 1)It can be chosen in configuration to transmit all cost split information from sender to receiver and keep them inthe receiver’s cost component split (Option 2)


Materials 500

Labor 400

Overhead 100

Intrac Profit 0

Sold to


Materials 1100

Labor 0

Overhead 0

Intrac Profit 100

Invoice1100,-

Option 1


Materials 600

Labor 400

Overhead 100

Intrac Profit 100

Option 2

* Via a BADI implementation it can be achieved to split markups (e.g.into contributions from different parts of the organization )


BAdI: Control of Cross-Company Code Transfers

ROLLUP_COST_COMP_SPLITUsing this method you can control that the costcomponent split is also transferred cross-companycode in the legal view.REVAL_MARKUP_AT_ACTUAL_COSTSUsing this method you can control that theintercompany profit is calculated on the plan costsof the sender and not using the actual costs.DISPLAY_COST_COMPONENTSUsing this method you can control in Material PriceAnalysis (CKM3) that all cost components notrelevant to inventory valuation are displayed (andnot just the cost component for the intercompanyprofit).GET_MARKUP_COMPONENTUsing this method you can control that theintercompany profit is assigned to any costcomponent not relevant to inventory.MODIFY_MARKUPWith this method, you can calculate theintercompany profit in accordance with a separatealgorithm.


Release Info

The enhancements in logistics and accounting are planned for ERP 6.0enhancement pack 5 and included in the ERP user license.

In order to make use of the new functionality the business functionLOG_MM_SIT has to be activated in transaction SFW5.


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4111 Stock in Transit and New Features Available With SAP ERP 6.0