Exercises for BPI - IIathensstatesapfaculty.pbworks.com/f/BPI-II_IM.doc · Web viewIn SAP, it is not good practice to alter the setting of the original document types. As such, we

Business Process Integration - IIInstructors Manual

Adapted from original exercises by Tom Wilder(ECC 6.0 – Release August 2009)

T-codes and Messages in red text are not included in the Student Exercises. Document numbers and Company code numbers in message box will change for each student

ECC 6.0 – January 2008 2008 SAP AG – University Alliances and The Rushmore Group, LLC.All rights reserved.

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BUSINESS PROCESS INTEGRATION II – (BPI – II)

Unit 1: Business Process Integration I Review

No Exercises for Unit 1

ECC 6.0 – Release January 2008 Page 1 The Rushmore Group, LLC© 2008 by SAP AG. All rights reserved. SAP University Alliance


Unit 2: Controlling (CO) – Overview and Organizational Structure



Exercise 1: Create Controlling Area Purpose of ExerciseThis exercise is to create a controlling area with the purpose of tracking costs for Pen Inc. The controlling area is an organizational unit in accounting used to subdivide the business organization from a cost accounting standpoint.

A company code is assigned to one and only one controlling area 1:1 relationship. However, to facilitate cross company code reporting and cost allocation more than one company code can be assigned to a controlling area 1:n relationship.

NavigationMenu Path

Tools ® Customizing ® IMG ® Execute Project ® Enterprise Structure ® Definition® Controlling ® Maintain Controlling Area

Trans Code

Double click on Maintain Controlling AreaEnter the following information:

Click on the button.

Click on

Insert Company Code C_ _ _

Person Responsible Your user name (use drop down menu)

Assignment control Controlling area same as company code

Verify the following settings: Currency type 10 (Company code currency)

Currency USD

Chart of accounts C_ _ _

Fiscal year variant K1

(Save)

Record the system message:MessageData was Saved


sapevent:DOCU_LINK%5CDS:GLOS.business_organization

sapevent:DOCU_LINK%5CGL:controlling%20area


Exercise 2: Assign Company Code to Controlling Area Purpose of ExerciseThis exercise is to assign the company code to a controlling area. All company codes assigned to a controlling area must use the same chart of accounts and fiscal year variant. More than one company can be assigned to the controlling area.

NavigationMenu Path Tools ® Customizing ® IMG ® Execute Project ®

Enterprise Structure ® Assignment ® Controlling ® Assign company code to controlling area

Trans Code SPRO

Enter the following information:

Click on the line with your Controlling Area

Double click on Assignment of company code(s)


Enter C_ _ _

(Save)

Record the system message:Message Data was Saved



Exercise 3: Create Cost Center Standard HierarchyPurpose of ExerciseThis exercise is designed to provide a name for your standard hierarchy. Indicated hierarchy of a cost center group in which all cost centers in a controlling area are gathered together. All cost centers are attached to a cost center group which is part of a hierarchy.


Controlling ® General Controlling ® Organization ® Maintain Controlling Area

Trans Code SPRO

Double click on Maintain Controlling Area Click on the line with your Controlling area

System Menu: Goto ® Details CCtr Std Hierarchy: PENINC_ _ _

(Save)

Select “YES” to confirm the message

(Back)

Double Click “Activate components/control indicators”



Fiscal year Current Year

Activate Components Cost Centers Component active

Order Management Component active

Commit. Management Component active

(Save)




Unit 3: Financial Accounting (FI) – Master Data



Exercise 4 : Create Raw Materials Inventory Account Purpose of ExerciseThe purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Raw Materials Inventory account using your trading goods inventory account as the reference model. An inventory account is an asset account located in the Balance Sheet that records the value of the current inventory.

NavigationMenu Path

Accounting ® Financial Accounting ® General Ledger ® Master Records ® G/L Accounts ® Individual Processing ® Centrally

Trans Code FS00


G/L Account: 200_ _ _ Company Code: C_ _ _

(Create)

Type/Description TABControl in chart of accounts Account Group Balance sheet accounts Select Radio Button Balance sheet account

Description Short Text: Raw Materials Inv G/L Acct Long Text Raw Materials Inventory

Control Data TABAccount control in company code Account Currency USD Select: “Only balances in local crcy”

Account management in company code Select: “Line item display” Sort key: 001

Create/bank/interest TABControl of document creation in company code Field status group: ZALL Select “Post automatically only”

(Save)




Exercise 5: Create Finished Goods Inventory Account Purpose of ExerciseThe purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Finished Goods Inventory account using your trading goods inventory account as the reference model. An inventory account is an asset account located in the Balance Sheet that records the value of the current inventory.

NavigationMenu Path


Trans Code FS00



(Create)

Type/Description TABControl in chart of accounts Account Group Balance sheet accounts Select Radio Button Balance sheet account

Description Short Text: Finished Goods Inv G/L Acct Long Text Finished Goods Inventory

Control Data TABAccount control in company code Account Currency USD Select: “Only balances in local crcy”


Create/bank/interest TABControl of document creation in company code Field status group: ZALL Select “Post automatically only”

(Save)




Exercise 6 : Create Raw Materials Expense Account Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Raw Materials Expense account using your trading goods expense account (721_ _ _) as the reference model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

NavigationMenu Path


Trans Code FS00



(Create)

Type/Description TABControl in chart of accounts Account Group Profit and loss accounts Select Radio Button P&L statement acct

Description Short Text: Raw Mat. Consp/Exp G/L Acct Long Text Raw Materials Consumption / Expense

Control Data TABAccount control in company code Account Currency USD Tax category: * Select: “Posting without tax allowed”


Create/bank/interest TABControl of document creation in company code Field status group: ZALL

(Save)




Exercise 7 : Create Finished Goods Expense Account Purpose of ExerciseThe purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Finished Goods Expense account using your trading goods expense account (721_ _ _) as the reference model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

NavigationMenu Path


Trans Code FS00



(Create)


Description Short Text: Fin Goods Consp/Exp G/L Acct Long Text Finished Goods Consumption / Expense

Control Data TABAccount control in company code Account Currency USD Select: “Posting without tax allowed”



(Save)




Exercise 8 : Create Labor Expense Account Purpose of ExerciseThe purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Labor Expense account using your rent expense account (780_ _ _) as a model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

NavigationMenu Path


Trans Code FS00



(Create)


Description Short Text: Labor Expense G/L Acct Long Text Labor Expense




(Save)




Exercise 9 : Create Production Order Settlement Account Purpose of ExerciseThe purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Production Order Settlement account using your rent expense account (780_ _ _) as a model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

NavigationMenu Path


Trans Code FS00



(Create)


Description Short Text: Prod Ord Settle Exp G/L Acct Long Text Production Order Settlement Expense




(Save)




Exercise 10 : Create Production Variance Account Purpose of ExerciseThe purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Production Variance account using your rent expense account (780_ _ _) as a model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

NavigationMenu Path


Trans Code FS00



(Create)


Description Short Text: Prod Var Exp G/L Acct Long Text Production Variance Expense




(Save)




Unit 4: Controlling (CO) – Master Data



Exercise 11 : Maintain Cost Center Standard Hierarchy Purpose of ExerciseThe purpose of this exercise is to create the following cost center structure. This will enable you to capture costs in a manner which is meaningful to you. A cost center is an area of responsibility within a company, which causes and influences costs. In this exercise create the Cost centers listed below.(Please make sure you assign the Cost centers to the correct group of your standard hierarchy.)

PENINC_ _ _ (Standard Hierarchy)

ADMIN_ _ _ (Cost Center Group / Hierarchy Area)

ADMIN Cost Centers A005 – Acct-Finance (category = W )A010 – Administration (category = W )A015 – Purchasing (category = G )A020 – Information Tech. (category = H )

SALES_ _ _ (Cost Center Group / Hierarchy Area)

SALES Cost Centers S005 – Sales (category = V )S010 – Marketing (category = V )

DIST_ _ _ (Cost Center Group / Hierarchy Area) DISTRIBUTION – PRODUCTION Cost CentersD005 – Warehouse (category = F )D010 – Production (category = F )

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Master Data ® Standard Hierarchy ® Change

Trans Code OKEON

The system may ask you to enter the Controlling area

Enter: C_ _ _

(Enter)Enter the following information:

Click on Standard Hierarchy: PENINC_ _ _ Group name Pen_ _ _ Standard Cost Hierarchy

(Create) Select Lower-Level Group Group Name = ADMIN_ _ _ Description = Administration



(Create) Select Group at Same Level Group Name = SALES_ _ _ Description = Sales

(Create) Select Group at Same Level Group Name = DIST_ _ _ Description = Distribution/Production

(Enter) Click on ADMIN_ _ _

(Create) Select Cost Center Create the ADMIN Cost Centers:

o A005 – Accounting/Finance (cost center category = W )o A010 – Administration (cost center category = W )o A015 – Purchasing (cost center category = G )o A020 – Information Tech (cost center category = H )

Analysis Time Frame: 01/01/20_ _ (current year) to: 12/31/9999 Person Responsible: Your Name

Organization Tab (for all Cost Centers) Currency: USD

Indicators Tab (for all Cost Centers) Remove the check mark from Commitment update

Click on SALES_ _ _

(Create) Select Cost Center Create the SALES Cost Centers:

o S005 – Sales (cost center category = V )o S010 – Marketing (cost center category = V )

Click on DIST_ _ _

(Create) Select Cost Center Create the DIST Cost Centers:

o D005 – Warehouse (cost center category = F )o D010 – Production (cost center category = F )

(Save)




Exercise 12: Create Primary Cost ElementsPurpose of ExerciseThis exercise creates the primary cost elements. Primary cost elements have a one to one relationship with the PL expense accounts in the GL. The primary cost elements are the link between FI and CO, they are used for entering costs within the entire accounting system, it is a cost that originates outside of the company.

NavigationMenu Path

Accounting ® Controlling ® Cost Element Accounting ® Master Data ® Cost Element ® Individual Processing ® Create Primary

Trans Code KA01

Create Primary cost elements for the listed expense accounts: Cost Element From table below (e.g.710000) Valid From: 01/01/20_ _ (current year) to: 12/31/9999

Select or (Enter)

Basic Data TAB CElem category 1

(Save) and repeat for each primary cost element

For Cost Element 770_ _ _ (Information Technologies Expense)

Default Acct Assignmt TabCost Center A020 *** See Below for Accounts that need this ***

Cost Element Description Cost element category Default Account Assign (Account)710_ _ _ Labor Expense 1720_ _ _ Raw Materials Consumption Expense 1721_ _ _ Trading Goods Consumption Expense 1722_ _ _ Finished Goods Consumption Expense 1 D010731_ _ _ Production order settlement Expense 22740_ _ _ Supplies Expense 1750_ _ _ Utilities Expense 1760_ _ _ Purchase Price Difference Expense 1762_ _ _ Production Variance Expense 1 D010770_ _ _ Information Technology Expense 1 A020780_ _ _ Rent Expense 1781_ _ _ Miscellaneous Expense 1790_ _ _ Cost of Goods Sold 1 D010Record the system message:Message Cost element has been created



Exercise 13: Create Secondary Cost ElementsPurpose of ExerciseThis exercise enables the creation of secondary cost elements. Secondary cost elements are used when the original identity of the cost in not directly related to the transaction.

NavigationMenu Path

Accounting ® Controlling ® Cost Element Accounting ® Master Data ® Cost Element ® Individual Processing ® Create Secondary

Trans Code KA06

Cost element Name/Description Cost element category800_ _ _ Labor 43 (Internal Activity)810_ _ _ IT Assessed costs 42 (Assessment)820_ _ _ Internal Order Settlement 21 (Internal Settlement)830_ _ _ Production Order Settlement 21 (Internal Settlement)

For each of the above cost elements enter the following information:

Cost element: Enter number (e.g.800_ _ _)

Valid From: 01/01/20_ _ (current year) to: 12/31/9999

Select or (Enter) Name/Description: see above list Cost element category see above list

(Save) and repeat for each secondary cost element

Record the system message:Message Cost element has been created



Exercise 14: Create Cost Element GroupsPurpose of ExerciseThis exercise is used to create cost element groups. These groups facilitate working with the cost elements. A cost element “group” is an organizational unit consisting of a particular collection of cost elements.

NavigationMenu Path

Accounting ® Controlling ® Cost Element Accounting ® Master Data ®Cost Element Group ® Create

Trans Code KAH1For Example:

Code Cost Element GroupTOTAL_ _ _ Total Cost Elements for C_ _ _

PCOST_ _ _ Total Primary Cost Elements for C_ _ _SCOST_ _ _ Total Secondary Cost Elements for C_ _ _

Create the following Cost element group structure with the following information:

Cost element group: TOTAL_ _ _

(Enter)

Enter name of Cost Element Group: Total Cost Elements for C_ _ _

Click on : PCOST_ _ _ Description: Total Primary Cost Elements for C_ _ _

Click on : SCOST_ _ _ Description: Total Secondary Cost Elements for C_ _ _

(Enter) Click on PCOST_ _ _

Select Enter value interval 700000 - 799999

(Enter) Click on SCOST_ _ _

Select Enter value interval 800000 - 899999

(Enter)

(Save)

Record the system message:Message The changes have been saved



Exercise 15: Create Statistical Key FigurePurpose of ExerciseThis exercise is used to create a statistical key figure that will be used as the basis for distribution of rent and utilities. Statistical key figures can be used in calculations, reports and other internal cost allocation tools like assessment and distribution (e.g. square footage, headcount, personnel count, phones, etc.).

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Master Data ® Statistical Key Figures ® Individual Processing ® Create

Trans Code KK01


Stat. key figure: SQFT

(Enter)

Basic data Name Square Footage

Stat. key fig. UnM. FT2

Key fig. cat. Fxd Val.

(Save)

Record the system message:Message Data was saved



Unit 5: Controlling (CO) – Rules



Exercise 16: Create Controlling (CO) Document Number RangesPurpose of ExerciseThis exercise will assign different types of controlling documents to specific number ranges. Since SAP is a document based system, each document must be assigned a number within a given number range made available to the document type being created.


Controlling ® General Controlling ® Organization ® Maintain Number Ranges for Controlling Documents

Trans Code SPRO

Press Copy button

From: C999

To: C_ _ _

(Copy)

Acknowledge the message to review the intervals

(Continue) to accept the message

CO Area: C_ _ _

Select

Review intervals

(Back)

Display groups

Review groups

(Back)

Record the system message:Message No Message



Exercise 17: Define Controlling (CO) Settlement Document Number Ranges

Purpose of ExerciseThis exercise will define the number range for internal order settlement documents in Controlling. You will assign your controlling area to a group which has been assigned to a number range.


Controlling ® Internal Orders ® Actual Postings ® Settlement ® Maintain Number Ranges for Settlement Documents

SPRO


Select Group Without Text

In the “Not Assigned” section, double click on your C_ _ _ (make sure it changes color)

Your C_ _ _ should now be assigned to the Group without text

(Save)

Acknowledge the message to review the intervals

(Continue) to accept the message

Record the system message:Message Changes have been saved



Unit 6: Controlling (CO) – Transactions



Exercise 18: Post Invoice from VendorPurpose of ExerciseThe purpose of this exercise is to post an incoming rent invoice to your accounting system. If you have properly implemented controlling, you will be prompted to enter a cost center if you do not put one in while completing the entry of the invoice.

NavigationMenu Path

Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Invoice

Trans Code FB60


Vendor Vendor # for Tanager Leasing _ _ _ Invoice date Today Amount $1,500 Company Code C_ _ _

If your Company Code did not default in, Click on Change leading company code and enter yours.

G/L acct 780_ _ _ (Rent Expense) D/C Debit Amount in doc curr. $1,500 Cost Center A010

(Enter)

Use the button to see if the postings are correct.

(Save)

Record the system message:Message Doc 1900000001 was posted in company code C101


INVOICE # 123 Tanager Leasing, Inc.

CURRENT Month Rent 1500.00


Exercise 19: Post Payment to VendorPurpose of ExerciseThe purpose of this exercise is to make payment to your landlord to settle the rent invoice.

NavigationMenu Path

Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Outgoing Payment ® Post

Trans Code F-53


Document Date: (Enter today's Date) Company Code: C_ _ _ Currency: USD

Bank data Account: 100_ _ _ Amount: Enter amount total from invoice

Open items selection Account: Enter the # for Tanager Leasing _ _

Find YOUR invoice- gross document from the previous exercise

Watch the “Assigned” field as you do the next step.

Double-click on the USD Gross amount of your document.

Processing status should now show:

Amount entered: Amount total from invoiceAssigned: Amount total from invoice Difference postings:Not assigned: 0.00

(Save)

Record the system message:Message Doc 1500000002 was posted in company code C101



Exercise 20: Display Individual Line ItemsPurpose of ExerciseThe purpose of this exercise is to display the line items for a cost center and cost element.

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Information System ® Reports for Cost Center Accounting ® Line items ® Cost Centers: Actual Line Items

Trans Code KSB1


Cost Center: A010 Cost Element: 780_ _ _ (Rent Expense)

Note: Clear cost element group and cost center group

Posting Date: Set range to current month or keep defaults

(Execute)

Double click on the Rent Expense line item

Record the system message:Message

Use this page for grading purposes



Exercise 21: Repost Expense (Cost) Between Cost CentersPurpose of ExerciseThe purpose of this exercise is to demonstrate the ability to repost costs between cost centers. While some of us are certainly flawless, not all have been so blessed. In this exercise you will repost the rent that was incorrectly posted to cost center A010 (Administration). It should have been posted to cost center A005 (Accounting/Finance).

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Actual Postings ® Repost Line Items® Enter

Trans Code KB61

To find the document enter the following information:

Controlling Area C_ _ _ (If prompted)

(Enter)

Accounting Doc. Document Number (from the posted Invoice) Company Code C_ _ _ Fiscal Year 20_ _ (current year)

(Execute)

Acct Assgt 1 A005

(Enter)

(Save)

Record the system message:Message Doc is posted under number 020000000



Exercise 22: Display Individual Line ItemsPurpose of ExerciseThe purpose of this exercise is to display the line items for a cost center and cost element to see that the reposting has been completed as expected.

NavigationMenu Path


Trans Code KSB1


Cost Center: A005 to A010

Cost Element: 780_ _ _ (Rent Expense)

Note: Clear cost element group and cost center group Posting Date: Set range to current month

(Execute)

Double click on line items shown





Distributions and Assessments



Exercise 23 : Post Statistical Key Figure Purpose of ExerciseThis exercise will be used to establish how rent (and subsequently utilities) will be treated at the end of the month. Since we do not wish to create a journal entry with many lines each time we pay rent, we can use an established distribution cycle to move the rent (and subsequently utilities) from a cost center to all the cost centers that have responsibility for this cost. The rent expense has been re-posted to the Accounting/Finance cost center, A005. At the end of the month the rent expense will be distributed to all the company’s cost centers based on their respective square footage, therefore it is necessary for us to record the number of square feet each cost center occupies.

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Actual Postings ® Statistical Key Figures ® Enter

Trans Code KB31N


System Menu: Extras ® Set Controlling Area…

Controlling Area C_ _ _

(Enter)

Entry Data Tab Doc. Date Today Postg Date Today Select Scrn var. Cost center

Rec. CCtr StatKF Total QuantityA005 SQFT 400A010 SQFT 600A015 SQFT 150A020 SQFT 100S005 SQFT 200S010 SQFT 100D005 SQFT 900D010 SQFT 550

(Save)


Document is posted under number 400000000



Exercise 24: Create G/L Document EntryPurpose of ExerciseIn addition to rent, Pen Inc. incurs utility costs. This exercise will have you post the journal entry for the monthly utilities expense of $578 to the G/L Utilities expense account (using cost center A005).

NavigationMenu Path

Accounting ® Financial Accounting ® General Ledger ® Posting ® Enter G/L Account Document

Trans Code FB50


Basic data Tab Document Date Today

Currency USD

G/L acct 750_ _ _ (Utilities Expense Account)

D/C Choose Debit

Amount in doc. curr. $578

Cost center A005

On Next Line Enter: G/L acct 100_ _ _(Bank – Checking)

D/C Choose Credit

Amount in doc. curr. $578

(Enter)


(Post)


Document 100000004 was posted in company code C101



Exercise 25: Create Distribution CyclePurpose of ExerciseThis exercise is used to demonstrate the value of period-end distributions. A distribution is designed for cost center allocation. Distributions are used only for primary costs. In periodic reposting and distributions, costs are removed from one cost center and placed (charged) to another cost center and they retain their original cost element definition.

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ®Period-End Closing ® Single Functions ® Allocations ® Distribution

Trans Code KSV5

Instructor note:

The first time in the system may trip an error indicating that you must execute report RK811XST.This can be accomplished from the Error dialog box by double clicking on the proceed button.

Set Controlling area = C_ _ _ (if requested)Enter the following information:

Parameters Period 01 to 12

Fiscal Year 20_ _ (current year)

System Menu: Extras ® Cycle ® Create Cycle Pen_ _ _ Start Date 01/01/20_ _ (current year)

(Enter)

Text Monthly distributions

Make sure Indicators field does not have “Iterative” checked!

This will create a segment of this distribution cycle for distributing rent to theapplicable cost centers.

Select:

Segment Name Rent, Distribution of rent

Segment Header TabAccept defaults

Sender/Receivers TabSender Cost Center A005

Cost Element 780_ _ _

Receivers



Cost Center Group PENINC_ _ _

Receiver Tracing Factor Tab Var. portion type: Actual stat. key figures

(Enter)

Selection Criteria Stat. key fig. From SQFT

This will create a segment of this distribution cycle for distributing utilities to theapplicable cost centers.

Select:

Segment Name Utilities, Distribution of utilities

Segment Header TabAccept defaults

Senders/Receivers TabSender Cost Center A005

Cost Element 750_ _ _

Receivers Cost Center Group PENINC_ _ _

Receiver Tracing Factor Tab Var. portion type Actual stat. key figures

(Enter)

Selection Criteria Stat. key fig. From SQFT

(Save) (you will receive message “Cycle PEN101, starting date 01/01/2009 has been saved”)

(Back) to the “Execute Actual Distribution: Initial Screen”

YES or (Save)

Enter Cycle Pen_ _ _

Start Date 01/01/20_ _ (current year)

(Execute) the distribution cycle with the Test run indicator checked

Double click on the warning indicator

Note: You should expect warning messages indicating that the system can not find input data for the

months previous to the current month.

Double click on the Monthly Distributions line



Review the distribution

After the distribution cycle has been executed without any unexpected errors return to the Execute Actual

Distribution: Initial Screen.

Remove the check from the Test run indicator on the Execute Actual Distribution: Initial Screen

(Execute) the distribution cycle again


If this error occurs:Double click on the System Error message. That will bring up a message screen with Diagnosis, System Response and Procedure information. At the bottom will be a link to Execute Report RK811XST. Click on that link and proceed.



Exercise 26: Review Actual Line Item ReportPurpose of ExerciseThe purpose of this exercise is to review the cost centers to see how the distribution did not change the original cost element definition.

NavigationMenu Path


Trans Code KSB1


Cost Center A000 to ZZZZ

(Execute)

Review the report




Exercise 27: Post Information Supplies ExpensePurpose of ExerciseThis is the first of two journal entries used to demonstrate the difference between a distribution and an assessment. While both distributions and assessments are periodic allocations, they are quite different in on substantive way - the original identity of the costs is not important to the receiver.

This exercise will have you post a journal entry for the supplies expense of $500 to the G/L Supplies expense account (using cost center A020).

NavigationMenu Path


Trans Code FB50



Currency USD

G/L acct 740_ _ _ (Supplies Expense Account)

D/C Choose Debit

Amount in doc curr. $500

Cost center A020

On Next Line Enter: G/L acct 100_ _ _(Bank - Checking)

D/C Choose Credit

Amount in doc curr. $500

(Enter)


(Post)


Document 100000005 was posted in company code C101



Exercise 28: Post Information Technology ExpensePurpose of ExerciseThis is the second of two journal entries used to demonstrate the difference between a distribution and an assessment.

This exercise will have you post a journal entry for software purchased for the business of $4,200 to the G/L Information Technology Expense Account (using cost center A020).

NavigationMenu Path

Accounting ® Financial Accounting ® General ledger ® Posting ® Enter GL account document

Trans Code FB50



Currency USD

G/L acct 770_ _ _ (Information Technology Expense Account)

D/C Choose Debit

Amount in doc curr. $4,200

Cost center A020


D/C Choose Credit

Amount in doc curr. $4,200

(Enter)


(Post)

Record the system message:Message Document 100000006 was posted in company code C101



Exercise 29 : Review Actual Line Item Report Purpose of ExerciseIn this exercise, you will review and record the costs that are currently in cost center A020. This should include rent and utilities from the previous distribution along with the two new journal entries that have just been completed.

NavigationMenu Path


Trans Code KSB1


Cost Center A020

(Execute)

Review the report

Record the line items included in this cost centerCost Element Cost Element Name Val. In Rep. Cur.

740101 Supplies Expense 500.00770101 IT expense 4,200.00

Total 4,700.00




Exercise 30: Create Assessment CyclePurpose of ExerciseThis exercise is used to demonstrate the value of period-end assessments. An assessment is designed for cost center allocation. Assessments are used for primary and secondary costs. With assessments, costs are removed from one cost center and placed (charged) to another cost center while not retaining their original cost element definitions since the composition of costs is not important for the receiver. For example, receiver cost centers rarely require detailed breakdowns of cafeteria costs.

This exercise will enable the costs in A020 to be assessed to all other cost centers. The four expenses (charges) included in the sender cost center will be assessed out to all other cost centers based upon a fixed percentage. These costs include rent, utilities, supplies, and some software.

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Period-End Closing ® Single Functions ® Allocations ® Assessment

Trans Code KSU5

Set Controlling Area = C_ _ _ (if requested)

Parameters Period 01 to 12 Fiscal Year 20_ _ (current year)

System Menu: Extras ® Cycle ® Create

Cycle ASS_ _ _ Start Date 01/01/20_ _ (current year)

(Enter) Text Monthly assessmentsNote: Make sure Indicators field does not have “Iterative” checked.

Click Segment Name IT Costs Description Assessment of IT Costs

Segment Header Tab Assessment cost element 810_ _ _Receiver tracing factor: Receiver rule Fixed Percentages

Senders/Receivers TabSender Cost Center A020 Cost Element Group PCOST_ _ _Receivers Cost Center Group PENINC_ _ _



Receiving T racing Factor Tab % for Cost center A005 15% for Cost center A010 5% for Cost center A015 10% for Cost center A020 0% for Cost center D005 30% for Cost center D010 10% for Cost center S005 20% for Cost center S010 10

(Enter)

Validate that the assessment is for 100 percent of the costs

(Save) (Cycle ASS101, Starting date 01/01/2009 has been saved)

(Back) to the “Execute Actual Assessment: Initial Screen”

Yes to Save (Cycle ASS101, Starting date 01/01/2009 has been saved)

Enter Cycle ASS_ _ _

(Execute) the assessment cycle with the Test run indicator checked

After the assessment cycle has been executed without any errors, go back and remove the check from the Test run indicator on the Execute Actual Assessment: Initial Screen.

(Execute) the assessment cycle again.


If errors, read message. If “no cost center senders” message, go back and make sure that Cost Element PCOSTXXX is in the group column.



Exercise 31: Review Actual Line Item ReportPurpose of ExerciseThis exercise will have you review how the assessment moved costs from A020 to the other cost centers as assessed costs with no indication as to the identification of the origin of the cost (rent, utilities, supplies, etc.).

NavigationMenu Path


Trans Code KSB1


Cost center A000 to ZZZZ

Cost element 810_ _ _

(Execute)

Review the report





Internal Order



Exercise 32: Create Internal Order TypePurpose of ExerciseThis exercise will take you through the process of creating your own internal order type. In SAP, it is not good practice to alter the setting of the original document types. As such, we have identified an internal order type that is close to what we need. We will copy that to our own order type Z_ _ _ and then make the adjustment we would like and then use our internal order type for creating our internal order.


Controlling ® Internal Orders ® Order Master Data ®Define Order Types

Trans Code

Select 0400 (Internal Order – Marketing)

(Copy As)

Order Type Z_ _ _ (_ _ _ Internal Order)

(Copy)

Select Z_ _ _ (_ _ _ Internal Order)

(Details)

General parameters Settlement prof. 20 (Overhead costs)

Control indicators Remove (uncheck) Classification

Status management Select Release immediately

(Enter)

(Save)

Record the system message:Message Data Was Saved



Exercise 33: Maintain and Configure Internal Order Settlement Structure

Purpose of ExerciseThe purpose of this exercise is to configure a settlement structure for our internal order prior to using it. This will allow us to use secondary cost elements to move the costs associated with our internal order to settlement cost centers.


Controlling ® Internal Orders ® Actual Postings ® Settlement ®Maintain Allocation Structures

Trans Code

Select: A1 (CO allocation structure)

Double click on: Assignments

Select 020 (Raw-/service material consump.)

Double Click Settlement cost elements

Select

Receiver cat. CTR (Cost center)

By cost element Not Selected

Settlement cost elem 820_ _ _

(Back) twice

Select: 030 (Other costs)

Double click on Source

Cost Elem. Group TOTAL_ _ _

Double click on Settlement cost elements

Select

Receiver cat. CTR (Cost center)

By cost element Not Selected

Settlement cost elem 820_ _ _

(Save)




Exercise 34: Create and Release Internal Order (Company Meeting)Purpose of ExerciseThe annual company meeting is coming up in the near future. It will be held in St. Thomas and everyone will be involved. The initial bills are now coming in and as such an internal order needs to be created to in order to capture the costs of the meeting. Later the costs of the meeting will be settled out to all the departments (i.e. cost centers) in the company. While management requested the meeting, the marketing department is in charge of arranging the meeting and the accounting department will create the internal order to monitor costs.

NavigationMenu Path

Accounting ® Controlling® Internal Orders® Master Data® Order Manager

Trans Code KO04

(Create)


Order Type Z_ _ _ (If needed set your controlling area by: System Menu: Environment ® Set CO area)

(Enter)

Description Company Meeting

Assignments Tab Responsible CCtr S010

Requesting CCtr A010

Click (Settlement Rule)Maintain Settlement Rule: Overview ScreenEnter the following information:

Cat. Receiver #. %CTR A005 15CTR A010 5CTR A015 10CTR A020 10CTR D005 10CTR D010 25CTR S005 15CTR S010 10

(Save)


Order was created with number 400000



Exercise 35: Post Payment to VendorPurpose of ExerciseThis exercise posts to your miscellaneous expense account (781_ _ _) using the internal order you just created as the cost object. The transaction represents a payment to Princess Cruise Lines in the amount of $6,000.

NavigationMenu Path


Trans Code FB50



Currency USD

G/L acct 781_ _ _ (Miscellaneous Expense)

D/C Choose Debit

Amount in doc. curr. $ 6,000

Order Enter Internal Order Number (Use search)


D/C Choose Credit

Amount in doc. curr. $ 6,000

(Enter)

to see if the postings are correct.

(Post)




Exercise 36: Display Individual Line ItemsPurpose of ExerciseThe purpose of this exercise is to review the costs that are now part of your internal order.

NavigationMenu Path

Accounting ® Controlling ® Internal Orders ® Information System ® Reports for Internal Orders ® Line Items ® Orders: Actual Line Items

Trans Code KOB1


Order Your internal order number

Posting Date yesterday through today or keep the default values

(Execute)

Double click on line items shown


(Make sure cost element is blank)



Exercise 37: Create Purchase Requisition for Consumption to Internal Order (Company Meeting)

Purpose of ExerciseThe company meeting is going to be a gala event. Distinctive premier pens will be created and given to the boat’s staff and crew. The marketing group has requested 20 for staff and 20 for crew members. This exercise creates a purchase requisition to support the need for 40 pens.

NavigationMenu Path

Logistics ® Materials Management ® Purchasing ® Purchase Requisition ® Create

Trans Code ME51N


Item Overview Section A (Acct. Assignment Cat.) F (Order)

Delivery Date (Enter a date – 7 days from today)

Plant P_ _ _

Stor. Loc. 10

PGr _ _ _

Material PPEN_ _ _

Quantity 40

Item SectionAccount Assignment Tab G/L Account 721_ _ _ (Trading Goods Expense account)

Order Internal Order # you created

(Enter) (Enter again if “Can delivery date be met” message appears)

(Save)

Record the system message:Message Purchase requisition number 0010000010 created



Exercise 38: Create Purchase OrderPurpose of ExerciseThe purpose of this exercise is to create a purchase order with reference to the requisition. When you create with reference to a purchase requisition, the account assignment gets copied from the purchase requisition. It cannot be changed or deleted via the PO.

NavigationMenu Path

Logistics ® Materials Management ® Purchasing ® Purchase Order ® Create ® Vendor Unknown

Trans Code ME25Enter the following information: Order Type NB Purchasing group _ _ _

Select Enter your Reference Purchase Requisition number.

(Enter)

Click on the green select all button.

Click on the button to copy the details from the purchase requisition into your new purchase order.

Select Select Premier Pens _ _ _

(Enter)

(Enter)

Click on the green select all button.

(Generate) Click on “Open Requisitions” in the Document overview area.

Select (Adopt)

Select (Item Overview)

Close (Item Details)

Select (Header) review PO total $ value Record the Purchase Orders expected Net value $ _120_______

(Save) Save anyway past the message indicating that no output device (ie. Printer, EDI, FAX) was found.

Record the system message:Message Standard PO created under the number 4500000001



Exercise 39: Create Goods ReceiptPurpose of ExerciseThe purpose of this exercise is to record the delivery of the items to the receiving area. This is the second part of the 3 way match process – quantities against the purchase order.

Shipping Bill of Lading Premier Pens

ITEMS: QUANTITY:

PPEN_ _ _ 40

NavigationMenu Path

Logistics ® Materials Management ® Inventory Management ® Goods Movement ® Goods Receipt ® For Purchase Order ® GR for Purchase Order (MIGO)

Trans Code MIGO


Enter your PO # PO # from previous exercise

(Execute) (Located to the right of the PO number field)

Ensure each line item “OK” box is checked (If items are not tagged as “OK” then scroll down and check the OK box on the lower part of the screen).

Hint: To have the system automatically propose the items, goto System Menu: Settings® Default values and check the “Propose the OK function in future” box.

Select or (Save)

Record the system message:Message Material document 5000000010 posted



Exercise 40: Post Invoice Receipt from VendorPurpose of ExerciseThe purpose of this exercise is to enter the invoice for the pens. This is the third part of the three-way match process – cost matching.

Premier Pens INVOICE: 2007-01254

ITEMS: QUANTITY PER PRICE

PPEN_ _ _ 40 $3.00 $120.00

NavigationMenu Path

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

Trans Code MIRO


Basic data Tab Invoice date (Enter today's Date)

Enter Currency USD

PO Number PO #

(Enter)

Amount: (from the above physical invoice document)

Tax code: XI (Input Tax)

(Enter)


(Post)

Record the system message:Message Document no. 5105600761 created



Exercise 41: Post Payment to VendorPurpose of ExerciseThis exercise will have you post the outgoing payment to the vendor for the pens. You are requested to clear the invoice amount by posting an outgoing payment using your bank account.

NavigationMenu Path


Trans Code F-53


Document Date Today

Bank data Account 100_ _ _ (Bank - Checking)

Amount Amount from previous exercise invoice

Text Invoice from Premier Pen #2007-01254

Open items selection: Account Vendor # for Premier Pens

All other settings remain unchanged.

Select

Double Click on the USD Gross you want to make payment against.

Ensure the Not Assigned balance is 0.00.

(Post)




Exercise 42: Review Cleared Items Purpose of ExerciseThe purpose of this exercise is to review the vendor line items and verify that the invoice is cleared.

NavigationMenu Path

Accounting ® Financial Accounting ® Accounts Payable ® Account ® Display/Change Line Items

Trans Code FBL1N


Vendor Selection Vendor account Vendor # for Premier Pens

Company code C_ _ _

Line item selection: Status Select All items

(Execute)

Review for Open items

Record the system message:Message 2 items displayed



Exercise 43: Display Individual Line ItemsPurpose of ExerciseThe purpose of this exercise is to review the costs that are now part of your internal order.

NavigationMenu Path

Accounting ® Controlling ® Internal Orders ® Information System ® Reports for Internal Orders ® Line Items ® Orders: Actual Line Items

Trans Code KOB1


Order Your internal order number

Posting Data Posting Date yesterday through today or keep the default values

(Execute)

Double click on line items shown for more information.




Exercise 44: Settle Internal Order (Company Meeting)Purpose of ExerciseThe purpose of this exercise is to settle the internal order. You can settle the costs collected on an internal order to different receivers. During system configuration you defined a settlement profile which specifies the valid receivers for each order type. For example, you might specify that capital spending orders can be settled to assets, but the company meeting will be settled to the costs centers based upon the settlement rule created when the internal order was initially created.

It is now the end of the month and time to settle the expenses to the internal order for the company meeting to all the cost centers.

NavigationMenu Path

Accounting ® Controlling ® Internal Orders ® Period–End Closing ® Single Functions ® Settlement ® Individual Processing

Trans Code KO88


Order your order number

Parameters Settlement period current period

Posting period current period

Fiscal Year current year

(Execute)

(Detail lists)

Review how the cost will be allocated to the various cost centers.

Once the order settlement has been executed without any errors

Remove the check from the Test run indicator on the Actual Settlement: Order screen.

(Execute) the settlement again.




Exercise 45 : Review Actual Line Item Report Purpose of ExerciseThis exercise will have you review you cost centers from A000 to ZZZZ. You will see your distributed, assessed and internal order costs.

NavigationMenu Path


Trans Code KSB1


Cost Center A000 to ZZZZ

Cost Element Group Total _ _ _

(Execute)

Review the report




Unit 9: Production Planning – Overview

No Exercises for Unit 9



Unit 10: Production Planning – Organizational Structure, Master Data, and Rules



Exercise 46: Maintain Plant Parameters for Production PlanningPurpose of ExerciseIn this step, you can specify the plant parameters for material requirements planning. These parameters include number ranges for orders, scheduling preferences, and assigning schedule controllers.

NavigationMenu Path

Tools ® Customizing ® IMG ® Execute Project ® Materials Management ® Consumption-Based Planning ® Plant Parameters ® Carry Out Overall Maintenance of Plant Parameters

Trans Code SPRO

Verify the following information:



Click on the maintain button.

Enter your plant: P_ _ _

Click on the maintain button.

Environment Click on the button


Assign no. range 01 to your plant (Back)








Assign no. range 01 to your plant (Back ) twice

(all may be defaulted to 01 already)

Master data

Click on button.

Plant: P_ _ _ MRP controller _ _ _ and description

(Back)

(Exit)


Plant: P_ _ _

Scheduling margin key: _ _ _ (Student Number - Default) Op.Per: 5 (Workdays prior to order start) Fl BefrePr: 1 (Workdays between order start and scheduled start)



Fl.AfterPr: 1 (Workdays between order due date and scheduled finish date) Rel Per: 1 (Workdays in release period)

(Back) (click save if data was changed when prompted)




Exercise 47 : Define Storage Location Purpose of ExerciseRegister the storage locations where stock is physically/logically kept within the plant. These may be buildings, areas, or other defined locations.


Enterprise structure ® Definition ® Materials Management ® Maintain storage location

Trans Code SPRO


Enter your Plant P_ _ _

(Enter)


S Loc 30

Description Raw Material Inv

(Save)




Exercise 48: Create Production Scheduling ProfilePurpose of ExerciseDefine the rules for scheduling production orders. This will allow the automatic release of an order when the order is created. You can use this function if you do not need time for preparatory activities between creating and releasing an order.


Production ® Shop Floor Control ® Master Data ® Define production scheduling profile

Trans Code



Plant P_ _ _

Prod. Sched. Profile: 10 (Release & Schedule)

Automatic Actions On Creation - check Release

On Release - check Schedule Order

(Save)




Exercise 49: Create Production SchedulerPurpose of ExerciseYou can assign a production scheduling profile to a material or a production scheduler. In this case we will assign it to an individual who will be responsible for the production of the finished goods.


Production ® Shop Floor Control ® Master Data ® Define production scheduler

Trans Code



Plant P_ _ _

ProdSched: _ _ _

Description: Your name

ProdProfile 10

(Save)




Exercise 50: Control Parameters for Material Requirements Planning (MRP)

Purpose of ExerciseThe Control parameters for MRP define how the MRP planning system will run. It defines how requirements will be checked, the type of order to propose, which type of BOM/Routing per order should be chose, and how it should be scheduled for each plant.


Production ® Material Requirements Planning ® Plant Parameters ® Carry Out Maintenance of Plant Parameters

Trans Code SPRO

These are the same tables that were visited when creating plant parameters for MRP

Review and update the following information:


Enter your plant: P_ _ _


Maintain Planned Orders



Production order PP01 (Standard Production Order)

(Save) (Data was saved) (Back) three times


Select your plant

Enter checking rule PP (may already be saved)

(Save) (Back)

Maintain Environment



Check Display List

Verify 1 for frequency

(Save) (may already be saved) (Back) twice



Maintain Planning Run


BOM Sel ID. 01

Routing Sel ID. 01

(Save) Caution message “Maintain selection ID in the scheduling parameters” appears

(Enter) Enter past information message.

(Back)


Select

Plant P_ _ _

Order type * (All)

ProdScheduler * (All)

Rough-cut scheduling SelID:roughPlng 03

Scheduling control for detailed scheduling Scheduling Type Backwards

(Save) (Back)


Determining the planned delivery time Check Scheduling: Info Rec/Agreemt

Creation of delivery schedules Schedule lines 3 (Schedule Lines)

Account assignment of non-valuated material Unknown Acct Assignment U (Unknown)

(Save) (Back) twice


Planning horizon 15 days

(Save)



Exercise 51: Assign Availability Check to Order TypePurpose of ExerciseSpecify what stock situations are to be considered as “available”.

In checking control, you can define for each order type and checking rule which type of check is to be used for the material availability check: No automatic check when an order is created, released or partially ATP check Check against planning Check when an order is saved


Production ® Shop Floor Control ® Operations ® Availability Check ® Define Checking Control

Trans Code SPRO


Select the lines for Plant 0001, Order Type PP01 and Business Functions 1 and 2

(Copy)

Plant P_ _ _ Business function 1 Select “no check” for all availability categories.

(Copy)

Plant P_ _ _ Business function 2 Select “no check” only for PRT and Capacity. Make sure Material Availability does not have a check.

(Copy

(Save)




Exercise 52: Define Scheduling Parameters for OperationsPurpose of ExerciseIn this step you define for each plant, order type and production scheduler the parameters for scheduling production orders. This comprises maintaining:1. Scheduling levels (detailed, production-rate and rough-cut scheduling)2. Date adjustment when dates are exceeded3. Date control for detailed scheduling4. Reduction


Production ® Shop Floor Control ® Operations ® Scheduling ® Define Scheduling Parameters for Production Orders

Trans Code SPRO



Plant P_ _ _

Order Type PP01

ProdScheduler: _ _ _

Detailed Scheduling Select Generate Capacity Reqs.

Scheduling control for detailed scheduling Scheduling Type Backwards

Select Automatic Scheduling

(Save)




Exercise 53: Define Control Parameters for Order TypePurpose of ExerciseIn this exercise you will define the parameters that are valid for each order type and plant.


Production ® Shop Floor Control ® Master Data ® Order ® Define order type-dependent parameters

Trans Code SPRO

Create the following order-dependent parameters for your plant:


Plant P_ _ _

Order Type PP01

Planning TabRouting Routing Selection 6 Routing Mandatory (automatic selection)

Bill of Material BOM Application PP01 (Production – general)

(Enter)

Controlling TabControlling Cstg variant planned PPP1 (Production Order Planned)

Cstg variant actual PPP2 (Production Order Actual)

(Save)




Exercise 54: Create Confirmation ParametersPurpose of ExerciseIn this exercise you will define whether the system proposes a partial confirmation, a final confirmation or a final confirmation with withdrawal posting of open reservations for the confirmation.


Production ® Shop Floor Control ® Operations ® Confirmation ® Define Confirmation Parameters

Trans Code SPRO



Plant P_ _ _

Order Type PP01

General individual entry Tab- Confirmation function except fast entry Confirm. type Final confirmation

Post open reservations Checked

Error handling/logs Act. costs Checked

Goods movements Checked

(Save)




Exercise 55: Define Valuation for Goods ReceivedPurpose of ExerciseThis exercise will have you define which valuation variant will be used for goods received from production. In other words, how are the goods going to be costed.


Production ® Shop Floor Control ® Integration ® Define Valuation of Goods Received

Trans Code SPRO



Val. Area (plant) P_ _ _

Valuation Variant (Val. Var.) 007 (Production Order – Actual)

(Enter)

(Save)


At this point, do Exercise 61



Unit 11: Production Planning – Master Data



Exercise 56: Create Material Master for Raw MaterialsPurpose of ExerciseThe purpose of this exercise is to create the raw materials necessary to produce the new pens. Each specific view contains relevant data. This is the basic information used for purchasing, costing, production, and all areas in the ERP system.

NavigationMenu Path

Logistics ® Materials Management ® Material Master ® Material ® Create (Special) ® Raw Material

Trans Code MMR1

Enter the following information using the information from the list below:

Enter industry sector Retail

System Menu: Defaults® Industry Sector Retail Select Hide industry sector on initial screen

(Continue)

System Menu: Defaults® Views

Select (Deselect all)

Select the following views: Basic data 1PurchasingMRP 1MRP 2MRP 3Work SchedulingGeneral Plant Data/Storage 1Accounting 1Costing 1

Select View selection only on request Select Create views selected

(Continue)

System Menu: Default® Organization levels… Copy from…Company code: C_ _ _ C_ _ _Plant: P_ _ _ P_ _ _

Leave storage location blank (storage locations will be created automatically) Select Org. levels/profiles only on request

(Continue)

Enter material code: (Repeat the steps for each of the material in the following chart)



Material Barrel_ _ _ Clip _ _ _ Cap_ _ _ Band_ _ _Basic data 1 View

Description Barrel Clip Cap BandBase Unit of Measure Each Each Each EachMaterial Group 01 01 01 01Gross & Net Weight / Unit 1 oz .25 oz 1 oz .1 oz

Purchasing ViewPurchasing Group _ _ _ _ _ _ _ _ _ _ _ _

MRP 1 ViewMRP Type PD PD PD PDMRP Controller _ _ _ _ _ _ _ _ _ _ _ _Lot Size EX EX EX EXMinimum Lot Size 12 12 12 100Fixed lot size

MRP 2 ViewPlanned Deliv. Time 3 3 3 3SchedMargin key _ _ _ _ _ _ _ _ _ _ _ _Safety Stock 200 200 200 200

MRP 3 ViewAvailability check 02 02 02 02

Accounting 1 ViewValue Class 3000 3000 3000 3000Moving price / Price Unit $ 40.00 / 144 $ 2.50 / 10 $ 17.28 / 12 $ 24.00 / 144

Costing 1 ViewWith Qty Structure √ √ √ √Material origin √ √ √ √

(Save) after each material Continue on next page……



Material Cartridge_ _ _ Crown _ _ _ Stand_ _ _ Giftbox_ _ _Basic data 1 View

Description Cartridge Crown Stand Gift BoxBase Unit of Measure Each Each Each EachMaterial Group 01 01 01 01Gross & Net Weight / Unit .25 oz .25 oz 1 lb 3 oz

Purchasing ViewPurchasing Group _ _ _ _ _ _ _ _ _ _ _ _

MRP 1 ViewMRP Type PD PD PD RPReorder Point 200MRP Controller _ _ _ _ _ _ _ _ _ _ _ _Lot Size EX EX FX FXMinimum Lot Size 144Fixed lot size 24 12

MRP 2 ViewPlanned Deliv. Time 1 1 2 5SchedMargin key _ _ _ _ _ _ _ _ _ _ _ _Safety Stock 400 200 48

MRP 3 ViewAvailability check 02 02 02 02

Accounting 1 ViewValue Class 3000 3000 3000 3000Moving price / Price Unit $ 93.60/ 100 $ 45.00 / 100 $ 3.00 / 1 $ 2.00 / 1

Costing 1 ViewWith Qty Structure √ √ √ √Material origin √ √ √ √

(Save) after each material

Record the system message:Message Barrel _ _ _Clip _ _ _Cap _ _ _Band _ _ Cartridge_ _ _Crown _ _ _Stand _ _ _Giftbox_ _ _



Exercise 57: Create Material Master for Finished ProductsPurpose of ExerciseThis exercise will have you create your finished products. Each specific view contains relevant data. This is the basic information used for purchasing, costing, production, and all areas in the ERP system.

NavigationMenu Path

Logistics ® Materials Management ® Material Master ® Material ® Create (Special) ® Finished Product

Trans Code MMF1


Use the information provided in the previous exercise to help you create the Finished Products

System Menu: Defaults® Industry Sector Retail

(Enter)

System Menu: Defaults® Views Select the following views: Basic data 1

Sales: Sales Org. Data 1Sales: Sales Org. Data 2Sales: General/Plant DataMRP 1MRP 2MRP 3Work SchedulingGeneral Plant Data/StorageAccounting 1Costing 1

Select View selection only on request Select Create views selected

(Enter)

System Menu: Default® Organization levels… Copy from…Company code: C_ _ _ C_ _ _Plant: P_ _ _ P_ _ _Sales org: S_ _ _ S_ _ _Distribution channel:* RE RE

Create the above materials for distribution channel Retail (RE) then change the defaults and continue this process to create each material for distribution channel Wholesale (WH).

(Enter)

Enter Material: (Repeat the steps for each of the material in the following chart)



Material EPEN_ _ _ ESET_ _ _Basic Data 1 View

Description Executive Pen Executive SetBase Unit of Measure Each EachMaterial Group 01 01Gross & Net Weight / Unit 2.35 oz 1.25 lb

Sales: Sales org. 1 ViewDivision 01 01Delivering Plant P_ _ _ P_ _ _Tax Jurisdict.Code 0 0County Sales Tax 0 0City Sales Tax 0 0

Scale quantity 1 1Amount RE: 18, WH:15 RE:30, WH: 25

(back)Sales: Sales org. 2 View

Matl statistics grp 1 1Sales: General/Plant Data View

Availability check 02 02Trans. Grp 0001 0001Loading Grp Hand Hand

MRP 1 ViewMRP Type M1 M1Planning time fence 10 10MRP Controller _ _ _ _ _ _Lot size EX EXMinimum Lot Size 100 100

MRP 2 ViewIn-house production 5 5Planned Deliv. Time 2 2SchedMargin key _ _ _ _ _ _Safety Stock 100 100

MRP 3 ViewStrategy group 40 40Consumption mode 1 1Bwd consumption per. 30 30Availability check 02 02

Continued on next page…

Material EPEN_ _ _ ESET_ _ _



Work SchedulingProduction scheduler _ _ _ _ _ _Prod.Sched.Profile 10 10

Accounting 1 ViewValue Class 7920 7920Price Control S SPrice Unit 1 1Standard price $ 12 $ 20

Costing 1 ViewWith Qty Structure √ √Material origin √ √

(Save)




Exercise 58 : Create Vendor Master Records Centrally Purpose of ExerciseThis exercise demonstrates creating both purchasing and accounting specific vendor partner data at once.

NavigationMenu Path

Logistics ® Materials Management ® Purchasing ® Master Data ® Vendor ® Central ® Create

Trans Code XK01

Create all views for a new vendor called PenParts _ _ _.

Vendor Leave Blank (system will generate the new number) Company Code C_ _ _ Purchasing Organization P_ _ _ Account group KRED

Create Vendor: AddressReference Vendor Account # for Premier Pens _ _ _ Company code C_ _ _ PurchasingOrganization P_ _ _

(Enter)

Name Enter the vendor’s name Pen Parts_ _ _

Search Term Search term _ _ _ (Your Student Number)

Street Address Postal code 72803 City Flagstaff Country US Region AZ

Communication Language English

(Enter)Note: Page forward past views that do not contain relevant information…Create Vendor: Control N/A

Create Vendor: Payment transactions N/A

Create Vendor: Accounting information Accounting Recon. account: 300_ _ _

Create Vendor: Payment transaction Accounting



Payt Term: 0001 Select Chk double inv.

Create Vendor: Correspondence Accounting N/A

Create Vendor: Purchasing data Order currency: USD Terms of paymt: 0001

Create Vendor: Partner Functions N/A

(Save)

Record the system message:Message Vendor 0000100520 has been created for company code C101 purchasing organization P101



Unit 12: Material Management - Transactions



Exercise 59: Create Purchase Order Purpose of ExerciseCreate a purchase order for initial supply of raw material used in production. The quantities purchased are in multiple units per pricing unit.

NavigationMenu Path:

Logistics ® Materials Management ® Purchasing ® Purchase Order ® Create ® Vendor/Supplying Plant Known

Trans Code: ME21N

Enter the following information in the Create Production Order Screen:

Vendor Enter number code for Pen Parts_ _ _

Order all Raw Materials using the following information.Material PO

QuantityNet Price

Currency Per OPU Deliv. Date Plant

BARREL_ _ _ 432 40.00 USD 144 EA (Future date) P_ _ _CLIP_ _ _ 400 2.50 USD 10 EA (Future date) P_ _ _CAP_ _ _ 432 17.28 USD 12 EA (Future date) P_ _ _BAND_ _ _ 432 24.00 USD 144 EA (Future date) P_ _ _CARTRIDGE_ _ _ 900 93.60 USD 100 EA (Future date) P_ _ _CROWN_ _ _ 400 45.00 USD 100 EA (Future date) P_ _ _STAND_ _ _ 100 3.00 USD 1 EA (Future date) P_ _ _GIFTBOX_ _ _ 100 2.00 USD 1 EA (Future date) P_ _ _

(Enter)

Review the information pulled from the master data

(Save)

Review the messages generated.

(Enter)

(Save)

Record the system message:Message Standard PO created under the number 4500000002



Exercise 60 : Create Goods Receipt Purpose of ExerciseReceive the raw material into inventory. This is the second part of the 3 way match process – quantities against the purchase order.

NavigationMenu Path:

Logistics ® Materials Management ® Inventory Management® Goods Movement ® Goods Receipt ® For Purchase Order ® PO Number Known

Trans Code: MIGO


Enter the PO number 4500000???( next to the Purchase order field) It should turn red on the left column when selected.

(Execute)

Ensure each line item OK is checked

OrSettings ® Default values Select propose the OK function Select Suggest all items. (Propose all Items)

(Enter) To see the results, leave the GR and redo, when you bring it up again all items will be checked

Storage Location 30 for each line item

Select or (Post)

Record the system message:Message Material document 5000000011 posted

If this message appears, open a new session and do exercise 61, then post the goods receipt.



Exercise 61: Maintain Automatic Account Assignments Purpose of ExerciseIn this exercise the system settings for controlling automatic postings to G/L accounts for Inventory Management movements, costing differences, and offsetting accounts are defined. Some of these accounts were defined in BPI-I and others in BPI-II.

This exercise is being moved to follow Exercise 54NavigationMenu Path

Tools ® Customizing ® IMG ® Execute Project ® Materials Management ® Valuation and Account Assignment ® Account Determination ® Account Determination Without Wizard ® Configure Automatic Postings

Trans Code

Follow the next few pages to create the automatic postings rules for the following functions:

Enter accounting assignment information for the following transaction keys:Field Name Key Inventory Posting BSX Offsetting Entry for Inventory Postings GBB Cost (price) Difference PRD GR/IR clearing account WRX


Inventory Posting

Double click on Transaction Event Key BSX Chart of Accounts C_ _ _Transaction Event Key BSXEnter the following automatic account assignments:Valuation Valuation class Account Account Name G_ _ _ 3000 Raw Materials Inventory AccountG_ _ _ 7920 Finished Goods Inventory Account

(Save) (Back)

continued on next page…



Offsetting Entry for Inventory Posting

Double click on Transaction Event Key GBB

Transaction Event Key GBBEnter the following automatic account assignments:Valuation General

ModificationValuation class

Account AccountName

G_ _ _ (Blank) 3000 Raw Material Expense AccountG_ _ _ AUF 7920 Production Order Settlement Acct.G_ _ _ VAX 7920 Cost of Goods Sold AccountG_ _ _ VBR 3000 Raw Material Expense Account

(Save) (Back)

Cost (price) difference

Double click on Transaction Event Key PRDTransaction Event Key PRDEnter the following automatic account assignments:Valuation Valuation class Account Account NameG_ _ _ 3000 762_ _ _ Production Variance AccountG_ _ _ 7920 762_ _ _ Production Variance Account

(Save) (Back)

Goods receipt / inv. receipt clearing acct

Double click on Transaction Event Key WRXTransaction Event Key WRXEnter the following automatic account assignments:Valuation Valuation class Account Account Name G_ _ _ 3000 GR/IR Account G_ _ _ 7920 GR/IR Account

(Save) (Back)



Exercise 62: Post Invoice Receipt from VendorPurpose of ExerciseThe vendor will send a bill – invoice. In this exercise the invoice for the raw materials from the vendor is entered. This is the third part of the three-way match process – cost matching against the purchase order.

Pen Parts Invoice # : 2007-_ _ _ITEMS QUANTITY PRICE PER UM BARREL 432 40.00 USD 144 EACLIP 400 2.50 USD 10 EACAP 432 17.25 USD 12 EABAND 432 24.00 USD 144 EACARTRIDGE 900 93.60 USD 100 EACROWN 400 45.00 USD 100 EASTAND 100 3.00 USD 1 EAGIFTBOX 100 2.00 USD 1 EA

TOTAL $2,436.48Thank you for your order

NavigationMenu Path

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

Trans Code MIRO


Basic data Tab Invoice date (Enter today's Date)

Check your Company Code C_ _ _

Currency USD

PO Number (from previous exercise)

(Enter)

Amount (Reference physical invoice above)

(Enter)

Click on the button. Debits should equal credits with a balance of 0

(Post)




Document no. 5105600762 created



Exercise 63: Display Vendors Invoice (Gross) DocumentPurpose of ExerciseThis exercise will assist you find a document number from the previous exercise’s recording the invoice document number.

NavigationMenu Path

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

Trans Code MIR4


Invoice Document No 510000####

Fiscal year 20_ _ (current year)

Review Posting from Invoice Entry




Exercise 64: Post Payment to VendorsPurpose of ExerciseIf the receipt of the goods, the vendors invoice and the purchase order are within tolerance the vendor will be eligible for payment. Here the payment to the vendor will be generated.

NavigationMenu Path


Trans Code F-53


Document Date (Enter today's Date) Company Code C_ _ _ Currency/Rate USD

Bank data Account 100_ _ _ Amount Amount from Pen Parts Invoice

Open items selection Account: Enter the code number for Pen Parts_ _ _

Find YOUR invoice- gross document from the previous exercise

Watch the “Assigned” field as you do the next step.

Double-click on the USD Gross amount of your document.

Processing status should now show:

Amount entered: Total Amount from invoiceAssigned: Total Amount from invoice Difference postings:Not assigned: 0.00

(Post)




Unit 13: Production Planning – Master Data



Exercise 65: Create Bill of MaterialPurpose of ExerciseThis exercise will have you create a Bill of Material (BOM). The BOM is a list of components needed to create the end product. In the case of the executive pen it has two cartridges, a primary and a backup that is stored in the cap.

NavigationMenu Path

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

Trans Code CS01

Enter the following information to create a bill of material for each of the products:

Material: EPEN_ _ _ and ESET_ _ _

Plant: P_ _ _.

BOM Usage: 1 (Production).

(Enter)

Material Tab

Enter the following line items:EPEN_ _ _ ESET_ _ _

Item category (ICt) Component Quantity Component QuantityL Barrel_ _ _ 1 EPEN_ _ _ 1L Clip_ _ _ 1 Giftbox_ _ _ 1L Cap_ _ _ 1 Stand_ _ _ 1L Band_ _ _ 1L Crown_ _ _ 1L Cartridge_ _ _ 2

(Save)

Record the system message:Message Creating BOM for material EPEN101 Creating BOM for material ESET101



Exercise 66: Create Person Responsible for Work CenterPurpose of ExerciseEach work center must have someone designated as the responsible party. Without the HR module, “people” do not exist in the system. Therefore, we must create a list of positions/people responsible for the work centers within the production data. This parameter will be linked to your Work Center.


Production ® Basic Data ® Work Center ® General Data ® Determine person responsible

Trans Code

(Note: You may be prompted to enter your controlling area C_ _ _)



Plnt P_ _ _

Pers. Respons. _ _ _

Person responsible for work center Your name

(Save)




Exercise 67: Create Work Center LocationPurpose of ExerciseThis will register the physical locations for the work centers to be assigned. This work center will be assigned to the plant you defined in BPI-I.


Enterprise Structure ® Definition ® Logistics – General ® Define Location

Trans Code

To create your work center location enter the following information:

Select

Plnt P_ _ _

Location _ _ _

Name Bldg _ _ _

Select (Address)

Country US

Region SD

Language English

(Copy)

(Save)




Exercise 68: Review Work Center Control KeysPurpose of ExerciseControl keys determine what set of control parameters/activities will be conducted at a work center. This will be linked to your Work Center.


Production ® Basic Data ® Work Center ® Routing Data ® Define control key

Trans Code

Review the following information:

(Change -> Display) Select Control Key: ASSY

(Details) Review selected indicators:

Scheduling Det. Cap, Reqmnts

Cost Confirmations required

(Exit)


May need to be added. If it is not in the list, add by clicking on New Entries (you may need to click the again), then Control Key ASSY Description AssemblyIndicators Select Scheduling, Det. Cap. Reqments, Cost

Note: Confirmations Required is not a possible selection, leave blank the confirmations not required check box.



Exercise 69: Create CapacityPurpose of ExerciseCapacity is the ability to perform a specific task, such as labor or machines. You can define individual capacities for each capacity, for instance the work load employees are capable of could be in the capacity category Labor or in the capacity category machine 5 lathes. The capacity contains; the operating time, the available capacity, and formulas for calculating capacity requirements. A work center capacity is created in the work center and is directly assigned to the work center.

NavigationMenu Path

Logistics ® Production ® Master Data ® Work Centers ® Capacity ® Create

Trans Code CR11


Plant P_ _ _ Capacity SHIFT Capacity category 002 (Person)

(Enter)

Capacity description Standard Day Shift

General data Capacity planner grp A

Available capacity Factory calendar ID US Base unit of meas. MIN

Standard available capacity Start 08:00:00 Finish 17:00:00 Length of breaks 01:00:00 Capacity utilization 85 No of indiv. cap. 4 Capacity H (Hours)

Planning details Check “Relevant to finite scheduling” Check “Long-term planning”.

(Save)

Record the system message:Message Capacity SHIFT plant P101 category 002 created



Exercise 70 : Create Activity Type Labor (Labor Hours) Purpose of ExerciseActivity type: is a unit of measure for allocating internal activities according to usage. The activity type is what is used for costing the orders. Here labor is defined and a cost element is assigned to the activity type (labor).

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Master Data ® Activity Type ® Individual Processing ® Create

Trans Code KL01


System Menu: Extras ® Set Controlling area C_ _ _

Activity Type Labor

Valid From 01 / 01 / 20_ _ (current year) Valid to 12 / 31 / 9999

(Enter)

Basic data TabNames Name Labor Hours

Description Labor Hours

Basic data Activity Unit H (Hours)

CCtr categories F (Production)

Allocation default values ATyp category 1 (Manual entry, manual allocation)

Allocation cost elem 800_ _ _

Price indicator 001

(Save)

Record the system message:Message Activity type has been created



Exercise 71 : Set Activity Prices Purpose of ExerciseYou specify fixed and variable costs for planned activity. These costs define the planned operating costs for production. In addition, we can define the planned capacity for the cost centers.

NavigationMenu Path

Accounting ® Controlling ® Cost Center Accounting ® Planning ® Activities Output/Prices ® Change

Trans Code KP26


Variables Version 0

From Period 01

To Period 12

Fiscal year 20_ _ (current year)

Cost Center group DIST_ _ _

Activity Type Labor

Entry Check Entry Free

(Overview)

D005 Warehouse (Cost center, Production may show up first) Plan Activity 100000 hours

Variable price USD $15.00

Use to switch between the cost centers belonging to the group you have selected

D010 Production Plan Activity 100000 hours

Variable price USD $20.00

(Save)

Record the system message:Message Changed data has been posted



Exercise 72: Create Work Centers for ProductionPurpose of ExerciseProduction operations are carried out at a work center. In the R/3 System work centers represent; machines or machine groups, production lines, assembly work centers, and employees or groups of employees. Together with bills of material and routings, work centers belong to the most important master data in the R/3 production planning and control system. In this exercise we will define the work centers, their location, capacity calculation, scheduling, costing, and normal work hours. These will be the foundation for capacity, scheduling, and production.

NavigationMenu Path

Logistics ® Production ® Master Data ® Work Centers ® Work Center ® Create

Trans Code CR01


Plant P_ _ _ Work Center WC_ _ _Basic data Work center cat 0003 (Labor).


Work center description Assembly line

Basic data TabGeneral Data Person responsible _ _ _

Location _ _ _

Usage 009 (All task list types)

Standard Value Maintenance Standard value key SAP1 (Normal Production).

(Enter) to display the selections associated with the standard value key SAP1.

Setup ”should be entered”.

Labor “should be entered”.

Default values TabOperation default values Control key ASSY

Units of measure of standard values Select “MIN” (Minute) for Defaults for Units of measure of standard values-Setup and Labor.

Capacities Tab (If “ASSY does not exist” message appears, go to Ex. 68 and create new entry) Overview Capacity category: 002 (Person)



Setup formula: SAP005 (Prod.: Setup requirement).

Processing formula: SAP007 (Prod.: Labor requirement).

System Menu: Goto ® Capacity ® Header Capacity category description Standard Day Shift

General data Capacity planner grp A

Available capacity Factory calendar ID US

Base unit of meas. H (Hour)

Standard available capacity Start 08:00:00

Finish 17:00:00

Length of breaks 01:00:00

Capacity utilization 85

No of indiv. cap. 4

Planning details Check “Relevant to finite scheduling”

Check “Long-term planning”

(Back)

Scheduling TabScheduling basis Capacity category 002 (Person)

Capacity SHIFT

Execution time Setup formula SAP001 (Prod.: Setup time).

Processing formula SAP003 (Prod.: Labor time).

Costing TabLink to cost center/activity types Cost Center D010

Activity OverviewActivity Description Activity Type Activity Unit Formula Keys

Setup: Labor MIN SAP005

Labor: Labor MIN SAP007

(Save)




Work center WC101 in plant P101 was created



Exercise 73: Create Finished Products RoutingPurpose of ExerciseA routing is a description of which operations and the order in which they are carried out. Routings also contain details about the work centers, labor time, machining time, setup time, and components assigned at each operation.

NavigationMenu Path

Logistics ® Production ® Master Data ® Routings ® Routings ® Standard Routings ® Create

Trans Code CA01


Material EPEN_ _ _

Plant P_ _ _

(Enter)

General data Usage 1 (Production)

Status 4 (released-general).

Click on the overview button.

Enter data for each operation: (Be sure to include the work center and control key for each operation.)Operations Work center Control key Description0010 WC_ _ _ ASSY Place Clip and Crown on Cap0020 WC_ _ _ ASSY Place Cartridges in Barrel0030 WC_ _ _ ASSY Place Cap and Band on Barrel

(Enter) Makeup and Enter times for Setup and Labor for each activity (6 to 7 minutes for each operation

will have your costs come in close to the standard costs used in the material master).

Hit after each entry

Next task… Component allocation (see Next page)



Create a Routing for Finished Product (Component Allocation)

After the operational steps are laid out the components must be allocated to the individual operations. This is a progressive process where each operation builds off the materials that entered production in the previous operations.


Select the materials required for operation 0010: Clip, Crown, and Cap

Select

Allocate these components to operation: 10

(Enter)

Select the materials required for operation 0020: Cartridge and Barrel

Select


(Enter)

Select the materials required for operation 0030: Band

Select


(Enter)

(Operation Graphic) to display the routing graphically.

(Back)

(Save)

Repeat the above process to create a routing for the ESET_ _ _. All components will be allocated to operation 10 by default because it is the only operation. Therefore, you do NOT need to do the component allocation.Operations Work center Control key Description0010 WC_ _ _ ASSY Pack Pen and Stand in Giftbox

Record the system message:Message Routing was saved with group 50000000 and material EPEN101 Routing was saved with group 50000000 and material ESET101



Exercise 74: Display Routing ListPurpose of ExerciseUse this reporting function to confirm creation of your routings and the material allocations.

NavigationMenu Path

Logistics ® Production ® Master Data ® Routings ® Reporting ® Print List

Trans Code CA51


Task List Type N (Routing)

Material EPEN _ _ _

Plant P_ _ _

Select For All Alternatives BOMs

(Execute)

Review report

(Back)

Select Display Component Assignment

(Execute)

Review additional information

(Back)



Unit 14: Production Planning – Transactions

Sales and Operations Planning (SOP)



Exercise 75-A: Create Material Master for Product GroupPurpose of ExerciseThis exercise will have you create your Product Group.

NavigationMenu Path

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

Trans Code MM01


Enter Material PGPen_ _ _ Material Type Product groups

(Enter) Keep defaults of Selected Views

(Enter) MRP 1 Tab Description Executive Pen & Set Product Group Base Unit of Measure EA MRP Type ND MRP 2 Tab Review MRP 3 Tab Availability Check KP

(Save)

Record the system message:Message Material PGPEN101 created



Exercise 75-B: Assign members for Product GroupPurpose of ExerciseThis exercise will have you create your Product Group.

NavigationMenu Path

Logistics ® Production - Process ® SOP ® Product Group ® Change

Trans Code MC86


Enter Product Group PGPen_ _ _ Plant P_ _ _

(Enter) Define Members Type Select Materials

(Enter) Member Number Plant Proportion

EPEN _ _ _ P_ _ _ 75ESET _ _ _ P_ _ _ 25

(Save)

Record the system message:Message Product Group Changed



Exercise 75: Create Product Group *This Exercise Outdated* Purpose of ExerciseA product group combines other product groups and materials according to whatever criteria best meet the needs of your enterprise; for example, manufacturing procedure, product design, or market niche. The product group can be used at a higher level in forecasting than end items. This enables you to forecast at the group level and the system will then determine the individual requirements at the end item level.

NavigationMenu Path

Logistics Production SOP Product Group Create

Trans Code MC84


Product group PGPen_ _ _

Description Executive Pen & Set Product Group

Plant P_ _ _

Base Unit EA

Members Select Materials

(Enter)

Member number EPEN_ _ _

Plnt P_ _ _

Proportion 75

Member number ESET_ _ _

Plnt P_ _ _

Proportion 25

(Enter)

(Save)


Do Ex75A and B instead of this Ex



Exercise 76: Create a Production PlanPurpose of ExerciseEnter a 9-month sales plan and create a production plan. This exercise will be setting the sales expectations for the next 9 months for the product group defined in the previous exercise. Generally, this would be considered a manual forecast. From this ‘forecast’ a production plan can be generated. This production plan be changed or modified by the production supervisor.

NavigationMenu Path

Logistics ® Production ® SOP ® Planning ® For Product Group ® Change

Trans Code MC82



Plant P_ _ _

Version selection

Version Selection

Record your version number (A00)Version Number

(Enter)

SOP: plan individual product group

Planning Table

Cur

rent

m

onth

Cur

rent

m

onth

+1 C

urre

nt

mon

th

+2 Cur

rent

m

onth

+3 C

urre

nt

mon

th

+4 Cur

rent

m

onth

+5 C

urre

nt

mon

th

+6 Cur

rent

m

onth

+7 C

urre

nt

mon

th

+8 Cur

rent

m

onth

+9

Sales 80 80 80 100 100 100 120 120 120ProductionStock levelDays of SupplyTarget Days of Supply 4 4 4 4 6 6 6 6 6

(Enter)

Note the impact on stock levels

System Menu: Edit® Create productn plan® Sunchronus to salesNote the impact on production plan and stock levels.

System Menu: Edit® Create productn plan® Target days’ supplyNote the impact on production plan and stock levels.

Record the planning values in the chart above



Select for a graphic view of your planning data

Review the Planning Graphs

(Back)

(Save)

Record the system message:Message Plan saved under version number A00

Click on image to expand to see detail



Exercise 77 : Display Stock/Requirements List Purpose of ExerciseThe Stock/requirements list is a dynamic list. It will change whenever a transaction occurs. At this point we want to get a BEFORE picture of the status of supplies on hand and the demand against it. The report should show that there is none in stock, but also list a demand of 100 for the safety stock we designated on the material master.

NavigationMenu Path

Logistics ® Production ® MRP ® Evaluations ® Stock/Requirements List

Trans Code MD04


Individual access Tab Material EPEN _ _ _

Plant P_ _ _

(Enter)

Your Stock/Requirements report should contain this information:Date MRP… MRP Element data Rec./Req. Qty Available Qty

MM/DD/YY Stock 0 0

MM/DD/YY SafeSt Safety stock 100- 100-



Exercise 78 : Transfer Planning Data to Demand Management Purpose of ExercisePreviously, the production plan was generated based upon the sales plan for the product group. This exercise will use that plan for the group and break it down into the individual components for the end item material based upon the proportional factors of the product group.

NavigationMenu Path

Logistics ® Production ® SOP ® Disaggregation ® Transfer Product Group to Planning

Trans Code MC75



Plant P_ _ _

Version Your Version Number Recorded from Exercise 76

Transfer strategy and period Select Prod plan for mat or PG members as proportion of PG

Select Invisible transfer

Independent requirement specifications Select Active

(Back)



Exercise 79: Review Demand Management Purpose of ExerciseIn reviewing the requirements for the product group we now see there are production requirements for the individual production items. In reviewing the group we will see the production plan for the ESET and EPEN.

NavigationMenu Path

Logistics ® Production ® Production Planning ®Demand Management ® Planned Independent Requirements ® Display

Trans Code MD63


Planned independent requirements for Select Product Group PGPen_ _ _

Plant P_ _ _

(Enter)

Notice the planned values for PGPEN are now independent demand at the material level for EPEN and ESET.

(Back)



Exercise 80: Display Stock/Requirements ListPurpose of ExerciseThe Stock/requirements list is a dynamic list. It will change whenever a transaction occurs. At this point we want to get a before picture of the status of supplies on hand and the demand against it. The report should show that there is none in stock, but also list a demand of 100 for the safety stock we designated on the material master.

NavigationMenu Path


Trans Code MD04


Individual access Tab Material EPEN _ _ _

Plant P_ _ _

(Enter)

Record your Stock/Requirements report information.Date MRP… MRP Element data Rec./Req. Qty Available Qty

MM/DD/YY Stock 0 0

MM/DD/YY SafeSt Safety stock 100- 100-




Unit 15: Comprehensive Test of Business Case Scenario



Exercise 81: Run Master Production SchedulePurpose of ExerciseWhen the MPS planning is run the product group requirements will be converted to planned orders to be executed on the shop floor thus creating a lower level demand for components and also meeting the forecast demand with finished product.

NavigationMenu Path

Logistics ® Production ® Production Planning ® MPS ® MPS ® Total Planning ® Online

Trans Code MD40


Plant P_ _ _

MRP control parameters Processing key NETCH

Create purchase req. 2

Schedule lines 3

Create MRP list 1

Planning mode 1

Scheduling 1

Process MRP materials Select

(Enter) A warning message appears stating “Please check input parameters”

(Enter) again to confirm and bypass the warning message

To start the planning run, press continue

Record materials planned Materials Comments





(Exit)



Exercise 82 : Display Stock/Requirements List Purpose of ExerciseThe Stock/requirements list is a dynamic list. It will change whenever a transaction occurs.

NavigationMenu Path


Trans Code MD04

Enter the following information

Individual access Tab Material EPEN_ _ _

Plant P_ _ _

(Enter)

Select the first planned order and click to review the pegged requirements.

(Back)

Select the first planned order again and click on to review the order report.

Here you can view the availability status of the raw materials for your order. If you double click on one of the raw materials you will see the stock requirements screen for that item in the bottom half of the screen.

Double click on EPEN_ _ _

Select

Select the planned order above the Dep Req for ESET_ _ _ and click to review the pegged requirements. You should see that this planned order is for the product ESET. Notice the planned order spans multiple months, this is because we have a lot size minimum on EPEN of 100.

(Back)




Exercise 83: Convert Planned Order to Production OrderPurpose of ExerciseThe MRP run has created production recommendations to supply the MPS demand created when MPS was run. The stock requirements list displays the suggested planned orders from the MPS run and will satisfy it by converting the planned order on the stock/requirements list to a production order.

NavigationMenu Path


Trans Code MD04



Plant P_ _ _

(Enter)

Double click on the first planned order to be converted.

Click on the button

Notice the release is automatically carried out.

Change Total Qty to 10 Accept all other default information

Save)

Record the system message:Message Order number 1000000 saved

Select the button to refresh the Stock/Requirements List

Notice the MRP elements change from the old PldOrd to display the new PrdOrd.



Exercise 84: Issue Goods to Production Order Purpose of ExerciseGoods being issues to the production order consumes them from inventory. The BOM defined the standard what should be used to make the finished goods times the quantity being made. This is the standard and barring any production changes, what is going to be consumed in the making of the finished goods. Once issued the costs of the material are assumed by the production order and the raw material inventory is decremented.

NavigationMenu Path

Logistics ® Production ® Shop Floor Control ® Goods Movements ® Goods Issue

Trans Code MB1A


Posting Date Today

Defaults for Document Items Movement Type 261 (goods issue to consumption for order from warehouse)

Plant P_ _ _

Storage Location 30 (Raw Material Inv)

Click on the reference button.

Enter your Production Order number


Click on the button to accept the details for each material.

Review the Goods Issue Sheet

(Post)

Record the system message:Message Document 4900000010 posted



Exercise 85: Confirm Production CompletionPurpose of ExerciseThis step tells the system the actual quantity of finished product that was produced and the time of production. Optionally, you can do partial completions, scrap or rework.

NavigationMenu Path

Logistic ® Production ® Shop Floor Control ® Confirmation ® Enter® For Order

Trans Code CO15


Enter your Production Order number.

(Enter)

Confirmation Type Click on final confirmation.

Actual Data Yield to conf. 10 Execution start change to 1 hour earlier than default time

(Save)

Record the system message:Message Confirmation of order 1000000 saved



Exercise 86: Receipt of Goods from Production Order Purpose of ExerciseWith the goods receipt the just completed finished goods are moved to inventory from the end of the production line. These are now available for sales or shipment. This is the second part of the 3 way match process – quantities against the purchase order.

NavigationMenu Path

Logistics ® Production ® Shop Floor Control ® Goods Movements ® Goods Receipt

Trans Code MB31


Defaults for Document Items Movement Type 101 (Order to warehouse)

Order Production Order number

Plant P_ _ _

Storage Location 10 (Inventory)

Select

Click on the button to accept the details for the new pens received from production.

Review your Goods Receipt Document.

(Post)




Exercise 87 : Settle Costs of Production Order Purpose of ExerciseCost settlement determines the actual costs vs. the planned cost and any variances in the production order. This information can be drilled down upon to find the individual cost components and transactions. Managers use this information to discover the source of any variances in production orders.

NavigationMenu Path

Logistics ® Production ® Shop Floor Control ® Period-End Closing ® Settlement ® Individual Processing

Trans Code KO88

Enter the following information: Controlling Area C_ _ _ (If required) Order Production Order number

Parameters Settlement period Current month

Posting period Current month

(Execute)

(Details lists)

System Menu: Environment ® Report Choose report Orders: Actual/Plan/Variance

(Choose)

Review report

(Back) to the Actual Settlement: Order screen (4 times back)

Processing Options Remove Check from Test Run

(Execute)

(Details Lists)


(Choose)

(Back)






Unit 16: Quality Management



Exercise 88: Create Material Master Quality View Purpose of ExerciseFrom the already created material master views we will add the quality management view to your EPEN _ _ _ material master. This will define how and where we will run quality tests on the material.

NavigationMenu Path

Logistics ® Quality Management ® Quality Planning ® Logistics Master Data ® Material ® Create

Trans Code MM01


Material EPEN_ _ _

Material Type Finished Product

Deselect all the views

Select Quality Management

Plant P_ _ _

(Continue)

General data

InspType Select (Possible entries (F4))

Select by double-clicking on 04 (Goods receipt inspection from production)

Select Active

Insp. type select (Detail)

Detailed information on inspection type Select Post to inspection stock

De-select Insp. with task list

De-select Automatic assignment

De-select Check Chars.

Select 100% inspection

Select Skips allowed

De-select Automatic UD



De-Select Serial number poss

(Make sure all other check boxes are blank or de-selected) Q-score procedure From usage decision code

(Continue)

(Save)

Record the system message:Message Material EPEN101 created



Exercise 89: Maintain Plant S ettings for Quality Purpose of ExerciseAt the organizational/plant level we can define how quality is going to be maintained and executed. These factors are how inspection lots are maintained, how results are recorded, quality completions, and basic data.


Quality Management ® Basic Settings ® Maintain Settings at Plant Level

Trans Code


Select plant 0001

(Copy As…)

Plant P_ _ _

(Copy)

Select your Plant

(Details) (may not show up if only one plant available)

InsLot completion Tab Stor.loc. for reserves 20 (Quality)

(Enter)

(Save)




Exercise 90 : Display Stock/Requirements List Purpose of ExerciseThe Stock/requirements list is a dynamic list. It will change whenever a transaction occurs.

NavigationMenu Path


Trans Code MD04



Plant P_ _ _

(Enter)

You can display the other components that are in your BOM by selecting a planned order and clicking on

the icon.




Exercise 91: Run Master Production SchedulePurpose of ExerciseAllow the system to plan the availability and requirements for all the finished goods and components. By selecting the process MRP material box the system will not only be calculating the requirements for the finished goods, but also for the component (MRP) material.

NavigationMenu Path

Logistics ® Production ® Production Planning ® MPS ® MPS ® Total Planning ® Online

Trans Code


Plant P_ _ _

MRP control parameters Processing key NETCH

Create purchase req. 2

Schedule lines 3

Create MRP list 1

Planning mode 1

Scheduling 1

Process MRP materials Select

(Enter) A warning message appears stating “Please check input parameters”

(Enter) again to confirm and bypass the warning message

To start the planning run, press continue

Record materials planned Materials Comments





(Exit)



Exercise 92: Display Stock/Requirements ListPurpose of ExerciseThe Stock/requirements list is a dynamic list. It will change whenever a transaction occurs.

NavigationMenu Path


Trans Code MD04



Plant P_ _ _

(Enter)

You can display the other components that are in your BOM by selecting a planned order and clicking on

the icon.




Exercise 93: Convert Planned Order to Production OrderPurpose of ExerciseThe MRP run has created production recommendations to supply the MPS demand created when MPS was run. The stock requirements list displays the suggested planned orders from the MPS run and will satisfy it by converting the planned order on the stock/requirements list to a production order.

NavigationMenu Path


Trans Code MD04



Plant P_ _ _

(Enter)

Double click on the Planned Order to be converted.

Click on the button

Notice the release is automatically carried out.

Change Total Qty to 120 Accept all other default information

Save)

Record the system message:Message Order number 1000001 saved

Select the button to refresh the Stock/Requirements List from the previous exercise

Notice the MRP elements change from the old PldOrd to display the new PrdOrd.



Exercise 94: Goods Issue to Production OrderPurpose of ExerciseGoods being issues to the production order consumes them from inventory. The BOM defined the standard what should be used to make the finished goods times the quantity being made. This is the standard and barring any production changes, what is going to be consumed in the making of the finished goods. Once issued the costs of the material are assumed by the production order and the raw material inventory is decremented.

NavigationMenu Path

Logistics ® Production ® Shop Floor Control ® Goods Movements ® Goods Issue

Trans Code MB1A


Posting Date Today

Defaults for Document Items Movement Type 261 (goods issue to consumption for order from warehouse)

Plant P_ _ _

Storage Location 30 (Raw Material Inv)

Click on the reference button.

Enter your Production Order number


Click on the button to accept the details for each material.

Review the Goods Issue Sheet

(Post)




Exercise 95: Enter Completion Confirmation for ProductionPurpose of ExerciseThis step tells the system the actual quantity of finished product that was produced and changes the status of the order costing can occur. The quantity produced can then be moved into inventory in a later step.

NavigationMenu Path

Logistic ® Production ® Shop Floor Control ® Confirmation ® Enter ® For Order

Trans Code CO15


Enter your Production Order number.

(Enter)

Confirmation Type Click on final confirmation.

Actual Data Yield to conf. 120 Execution start change to 1 hour earlier than default time

(Save)

Record the system message:Message Confirmation of order 1000001 saved



Exercise 96: Goods Receipt for Production Order Purpose of ExerciseMove the new finished product from the production line into inventory. T

NavigationMenu Path

Logistics ® Production ® Shop Floor Control ® Goods Movements ® Goods Receipt

Trans Code MB31


Defaults for Document Items Movement Type 101 (Order to warehouse)


Plant P_ _ _

Storage Location 10 (Inventory)

Select

Click on the button to accept the details for the new pens received from production.

Review your Goods Receipt Document.

(Post)


System Menu: Environment® Stock Overview® Stock MaterialDatabase selections Material EPEN_ _ _

Plant: P_ _ _

Storage location 10 (Inventory)

(Execute)

Double click on the P _ _ _ Pen Inc. Warehouse _ _ _ line

Note the goods were received into Quality Inspection.

Exit to main menu



Exercise 97 : Record Usage Decision Purpose of ExerciseThe material just produced is in quarantine in inventory (quality location). To release the materials an inspection has to be conducted and based upon that inspection a decision what to do with the materials. If the material passes inspection, it will be released into unrestricted stock inventory. If the material fails inspection, a decision has to be made on what to do with it: rework, disposition, retest or another fate depending upon company procedure.

NavigationMenu Path

Logistics ® Quality Management ® Quality Inspection ® Inspection Lot ® Usage Decision ® Record

Trans Code QA11


Inspection Lot 4000000#### (Search by your Production Order #)

(Enter)

Defects TabUsage decision UD code A0 01 Acceptance (Automatic Stock Posting)

(Enter)

(Save)

Record the system message:Message Usage decision for lot P101 040000000000 is saved



Exercise 98: Check Stock StatusPurpose of ExerciseThe purpose of this exercise is to obtain current inventory information about your products.

NavigationMenu Path

Logistics ® Materials Management ®Inventory Management ® Environment ® Stock ® Stock Overview

Trans Code MMBE


Database selections Material EPEN_ _ _

Plant P_ _ _

Storage location 10

(Execute)

Note the goods should have transferred from Quality Inspection to Unrestricted use.

Record the system message:Message No message



Exercise 99: Settle Costs of Production OrderPurpose of ExerciseThis exercise updates the cost of the production order. This includes labor, material, setup time, and if applicable, machine time.

NavigationMenu Path

Logistics ® Production ® Shop Floor Control ® Period-End Closing ® Settlement ® Individual Processing

Trans Code KO88


Controlling Area C_ _ _ (If required)


Parameters Settlement period Current month

Posting period Current month

(Execute)

(Details lists)


(Choose)

Review report

(Back) to the Actual Settlement: Order screen

Processing Options Remove Check from Test Run

(Execute)

(Details Lists)


(Choose)

(Back)




Unit 17: Comprehensive Test – Starting with Sales



Exercise 100 : Create Sales Order Purpose of ExerciseThis exercise will have you create a sales order.

NavigationMenu Path

Logistics ® Sales and Distribution ® Sales ® Order ® Create

Trans Code VA01Enter the following information:

Order Type OR

Organizational Data Sales Organization S_ _ _

Distribution Channel RE

Division 01

(Enter)

Sold-to party Customer # for SAP, America _ _ _

PO Number (any number)

PO date today’s date

Sales Tab Req. deliv. date 3 days from today

Enter the following:Material Order QuantityEPEN_ _ 20

(Enter)

Review the ATP screen for EPEN_ _ _ (if applicable)

Information box “Change in invoice date: The billing date is redetermined”

(Enter) on either option (if applicable)

System Menu: Goto ® Header ® SalesConditions TabNote and record the Net value for the order – this is the total of all line items $360______________

(Back)

(Save)

Record the system message:Message Standard order 2 has been saved



Exercise 101 : Create Delivery Purpose of ExerciseThe purpose of this exercise is to create a delivery based on the customer’s order. Creating the delivery brings your order to the point where stock availability is re-determined, and the quantity of ordered items are moved to a scheduled for delivery stock status.

NavigationMenu Path

Logistics ® Sales and Distribution ® Shipping and Transportation ® Outbound Delivery ® Create ® Single Document ® With Reference to Sales Order

Trans Code VL01N


Shipping point S_ _ _

Sales order data Selection date 7 days from today

Order Standard Order number from previous exercise

(Enter)

The system defaults the items and quantities from the sales order that are scheduled to be delivered.

Item Overview Tab Click on the line item 10

(Item Details)

(Back)

Picking Tab Plnt P_ _ _

SLoc 10 (Inventory)

(Save)

Record the system message:Message Outbound Delivery 80000001 has been saved

Check to see if material exists in SLoc 30, change picking from Sloc 10 to Sloc 30. Material may exist in Sloc 10, but Sloc 10 is not selectable in drop down menu.



Exercise 102: Pick Materials on Delivery Note Purpose of ExerciseThe purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the proposed materials per delivery.

NavigationMenu Path

Logistics ® Sales and Distribution ® Shipping and Transportation ® Outbound Delivery ® Change ® Single Document

Trans Code VL02N


Outbound Delivery Delivery note number from the previous exercise.

(Enter)

Picking TabThe material delivery quantity is proposed. You want to pick the correct amount to be delivered to the

customer; therefore you will pick from the shelf the amount the system identifies for delivery.

Picked Qty = Deliv. Qty

(Save)

Recheck the stock status of the materials. Note that no change has occurred in the stock status - the

quantities are still in the “Schd. for delivery” stock type field.




Exercise 103 : Post Goods Issue Purpose of ExerciseThis exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect the inventory shipped. This is the time at which the ownership of the goods changes from you to the customer. These goods have left your plant and are now owned by your customer. Both inventory and costs of goods sold are impacted by this transaction.

If you have shipped or sold the goods FOB Destination, the actual change of ownership takes place at the time the goods are received at the customer’s location. However, the system reflects the materials are no longer available in your stock at the time of post good issue.

NavigationMenu Path

Logistics ® Sales and Distribution ® Shipping and Transportation ® Outbound Delivery ® Change ® Single Document

Trans Code


Outbound Delivery Delivery note number from the previous exercise.

Select

The system returns a message indicating change to the delivery note.

Check the stock status of the materials.




Exercise 104: Create Billing for Customer Purpose of ExerciseThis exercise will create the billing document for the customer. It is at this time when the revenue is recognized and posted to the general ledger. Once the post goods issue has been completed, you can bill your customer for those goods.

NavigationMenu Path

Logistics ® Sales and Distribution ® Billing ® Billing Document ® Create

Trans Code VF01


Document Delivery Document should default in

(Execute)

An invoice is displayed with the customer and materials from the delivery note along with the Net

value (Amount Billed) and the cost of the order.

Record the total amount billed to the customer. $ 360___________________

(Save)

The billing document number is displayed at the bottom of the screen.

Record the system message:Message Document 90000003 has been saved



Exercise 105: Post Receipt of Customer PaymentPurpose of ExerciseThe customer has received our invoice and has issued payment. We post the incoming payment to the customer's account.

NavigationMenu Path

Accounting ® Financial Accounting ® Accounts Receivable ® Document Entry ® Incoming Payment

Trans Code F-28


Document Date Today’s date

Company Code C_ _ _

Currency/Rate USD

Bank data Account Your Bank Account

Amount Enter the amount of the payment

Open item selection Account: Customer # for SAP America

Select

If needed, Double click on the USD Gross amount of the Invoice you wish to make payment against.

Note: The “not assigned” amount should be 0.00 after you select the invoice.

(Post)




Exercise 106: Review Document FlowPurpose of ExerciseSAP allows us to see a whole transaction from beginning to end. For instance, we have created an order with reference to a quotation, then a delivery, post goods issue and billing. To examine the flow, any one of those document numbers can be referenced, and the document flow will display an audit trail of all documents evolved.

NavigationMenu Path

Logistics ® Sales and Distribution ® Sales ® Order ® Display

Trans Code VA03

Order Your Sales Order Number

System Menu: Environment ® Display document flowThe system displays a list of documents associated with the quotation.

Click on the line of the “GD goods issue: delvy ##”,

Select

The system displays the material document with a goods movement “601”, which is the movement type

for goods issue to a delivery note (PGI).

Select to view the account postings for this goods movement.

(Back)

From the Document Flow you can see the following:

1. The entire document flow is now shown.

2. There are no open documents.

1. The business cycle is complete.




Exercise 107 : Create Sales Order Purpose of ExerciseThis exercise will have you create a sales order.

NavigationMenu Path

Logistics ® Sales and Distribution ® Sales ® Order ® Create

Trans Code VA01Enter the following information:

Order Type OR

Organizational Data Sales Organization _ _ _

Distribution Channel WH

Division 01

(Enter)

Sold-to party Customer # for Promotional Products _ _ _

PO Number (any number)

PO date Today’s date

Sales TAB: Req. deliv. date Enter date 1 day from today

Enter the following:Material Order QuantityEPEN_ _ _ 250

(Enter) Review the Availability Control screen for EPEN_ _ _

Select Complete Delivery

Review Credit Limit Message – Select (Continue) to acknowledge the message.

System Menu: Goto ® Header ® SalesConditions TAB:Note and record the net value for the order – this is the total of all line items $__3,750.00___________

(Back)

(Save)

Record the system message:Message Standard Order 3 has been saved



Exercise 108: Complete All Activities to Satisfy the Order-to-Cash Business Cycle

Purpose of ExerciseTo have you complete all processes necessary to receive payment for delivered goods to Promotional Products.

This will include:

Complete the Order-to-Cash business process cycle

This will include the:

Purchasing (the complete Procure-to-Pay business process cycle)

Production (the complete Make-to-Stock business process cycle)

MPS/MRP planning and execution for Finished Goods and Raw Material
