Planning and Processing of Semifinished Goods SAP Best Practices

Planning and Processing of Semifinished Goods

SAP Best Practices

© 2013 SAP AG. All rights reserved. ‹#›

Purpose, Benefits, and Key Process Steps

Purpose In this scope item the forecasting level is the semi-finished product. Planned independent requirements are generated for

the semi-finished material. The production scope item produces a semi-finished product in make-to-stock production (MTS). The production of the finished product is triggered by customer orders (MTO) having the forecasted semi-finished product

as one component in the bill of material. Furthermore, the scope item is supported by the main cost object controlling functions required, such as preliminary

costing and period-end closing.

Benefits Production triggered by a production plan Batch management included Forecast of semi-finished products Make-to-order and Make-to-stock processes in one scope item

Key Process Steps Creating Planned Independent Requirements Material Requirements Planning at Plant Level In-House Production (subassembly – Make-to-stock) In-House final production (assembly –Make-to-order) Confirming Assembly Activities Sales Order processing


Required SAP Applications and Company Roles

Required SAP Applications SAP enhancement package 7 for SAP ERP 6.0

Company Roles Sales Administrator Production Planner Shopfloor Controller Warehouse Clerk Plant Controller Buyer


Detailed Process Description

Planning and Processing of Semifinished GoodsThis scope item describes a business process, which is typical for companies with lot size oriented production. The production scope items consist of both goods movements (goods issues and receipts) and confirmation of completion of the production order. Furthermore, the scope item is supported by the main cost object controlling functions required,

such as preliminary costing and period-end closing. The typical planning process starts with sales quantity planning. In this scope item we imitate the

sales data by generating independent requirements for semi-finished product, which are used in the subsequent Material Requirements Planning (MRP) run.

In material requirements planning, the bill of materials (BOM) for the semi-finished material demand gets exploded and production is planned right down to procured component level. MRP results in planned orders being generated for the material to be produced.

If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing).

During the production process, costs incurred are updated on the order, which enables you to keep track of and compare target costs and actual costs at any time.

The final assembly of finished product is initiated by a customer order. After production the material is posted to individual customer stock.


Process Flow DiagramPlanning and Processing of Semifinished Goods

Period End Closing

“General” Plant(181)

Eve

nt

Beginning of Planning Cycle Semi-finished

Product

Request for a finished product

Sh

op

flo

or

Sp

ecia

list

Pla

nt

Co

ntr

olle

r

Material Requirements

Planning at Plant Level & Evaluation of Stock / Requirement

List

Purchase Requisiti

on

Inventory @ Standard. Cost

Pro

du

ctio

n P

lan

ner

Release Production

Order

Material Staging for Production

Orders Confirming Assembly Activities

/ Final Confirmation

Semi-Finished Goods Receipt

Goods Issue/ Back flush

Goods Receipt Slip

Planned Orders

Material Availabl

e?

Bu

yer

War

e-

ho

us

e

Cle

rk Goods Receipt Slip

Purchasing with JIT Delivery

schedules (230)

Planned Independent

Requirements

ConvertPlanned Order to Production

Order

Inventory Consumption @ Standard.

Cost

Procurement w/o QM

(130)

No

Yes

Sal

esA

dm

in

. Sales order for Finished product

Delivery of Sales order

Sales billing

Customer Payment received

Finished Goods Receipt


Legend

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

Ext

erna

l to

SA

P

Business Activity / Event

Unit Process

Process Reference

Sub-Process

Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version /

Data

System Pass/Fail Decision

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scope item.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scope item, or influence the course of events in the scope item.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scope item.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scope item. Line can also lead to documents involved in the process flow.

Connects two tasks in a scope item process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scope item, or an outside Process that happens during the scope item

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scope item

Corresponds to a task step in the document

Process Reference: If the scope item references another scope item in total, put the scope item number and name here.


Sub-Process Reference: If the scope item references another scope item in part, put the scope item number, name, and the step numbers from that scope item here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

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unct

ion>


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Planning and Processing of Semifinished Goods SAP Best Practices