Business Blueprint MM

ValueSAP - Business Blueprint
ASAP Business Blueprint

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C2C
Created by: mathew
Date of creation: 30/10/2003
Changed by:
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File location: [\\sap13\SAP13_C\Asap\Shared\C2C\QAdb\Reports\Business Blueprint_MM.doc]

Table of Contents
A. Master Data............................................................................................................................... 5
1. General Master Records.................................................................................................... 5
1.1. Material Master................................................................................................................ 5
1.2. Service Master................................................................................................................. 9
1.3. Vendor Master Record..................................................................................................... 9
2. Procurement....................................................................................................................... 11
2.1. Manufacturer Part Number..............................................................................................11
2.2. Conditions........................................................................................................................ 11
2.3. Source List....................................................................................................................... 12
2.4. Quota Arrangement......................................................................................................... 13
2.5. Delivery Address.............................................................................................................. 13
2.6. Vendor Rebate Arrangements......................................................................................... 17
2.7. Release Strategy with Classification................................................................................17
2.8. Vendor Evaluation........................................................................................................... 17
3. Inventory Management, Warehouse Management and Transportation..............................18
3.1. Hazardous Material......................................................................................................... 18
3.2. Batch............................................................................................................................... 18
3.3. Batch Search Strategy..................................................................................................... 21
B. Business Processes................................................................................................................... 22
1. Procurement....................................................................................................................... 22
1.1. Procurement of Materials and External Services.............................................................22
1.1.1. Purchase Requisition.................................................................................................... 22
1.1.1.1. Purchase Requisition Processing..............................................................................22
1.1.1.2. Purchase Requisition Assignment.............................................................................23
1.1.1.3. Release Purchase Requisition...................................................................................24
1.1.2. Purchasing.................................................................................................................... 24
1.1.2.1. Purchase Order Processing.......................................................................................24
1.1.2.2. Contract Release Order............................................................................................. 27
1.1.2.3. Release of Purchase Orders.....................................................................................28
1.1.2.4. Transmission of Purchase Orders.............................................................................28
1.1.2.5. Scheduling Agreement Delivery Schedule.................................................................28
1.1.2.6. Delivery and Acknowledgment Expediter..................................................................28
1.1.2.7. Inbound EDI Processing............................................................................................ 30
1.1.2.8. Processing of Shipping Notifications/Confirmations..................................................31
1.1.3. Transportation.............................................................................................................. 32
1.1.3.1. Message Transmission for Transport Documents......................................................32
1.1.3.2. Transportation Planning and Processing...................................................................32
1.1.3.3. Freight Cost Invoicing and Settlement.......................................................................35
1.1.4. Goods Receipt.............................................................................................................. 36
1.1.4.1. Reservation Processing............................................................................................. 36
1.1.4.2. Goods Receipt Processing........................................................................................36
1.1.4.3. Goods Receipt Processing with Reference...............................................................36
1.1.5. Service Entry Sheet...................................................................................................... 42
1.1.5.1. Service Entry Sheet................................................................................................... 42
1.1.6. Invoice Verification........................................................................................................ 42
1.1.6.1. Evaluated Receipt Settlement (ERS).........................................................................42
1.1.6.2. Invoicing Plan Settlement.......................................................................................... 43
1.1.6.4. Invoice Processing with Reference............................................................................44
1.1.6.5. Invoice Overview....................................................................................................... 46
1.1.6.6. Invoice Release......................................................................................................... 47
1.2. Procurement via Subcontracting......................................................................................48
1.2.1. Purchasing.................................................................................................................... 48
1.2.2. Transportation.............................................................................................................. 50
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Business Blueprint_MM.doc

1.2.3. Provision of Components.............................................................................................53
1.2.3.1. Goods Issue Processing............................................................................................53
1.2.3.2. Delivery Processing................................................................................................... 54
1.2.4. Goods Receipt.............................................................................................................. 57
1.2.4.1. Subsequent Adjustment of Components...................................................................57
1.3. Procurement on a Consignment Basis............................................................................59
1.3.1. Purchasing.................................................................................................................... 59
1.4. Internal Procurement....................................................................................................... 61
1.4.1. Purchasing.................................................................................................................... 61
1.5. Source Administration...................................................................................................... 64
1.5.1. RFQ/Quotation............................................................................................................. 64
1.5.1.1. Processing of Requests for Quotations.....................................................................64
1.5.1.2. Vendor Quotation Processing....................................................................................65
1.5.2. Outline Purchase Agreements......................................................................................65
1.5.2.1. Contract Processing.................................................................................................. 65
1.5.2.2. Scheduling Agreement Processing............................................................................66
1.6. Return Deliveries............................................................................................................. 67
1.6.1. Quality Notification........................................................................................................ 67
1.6.1.1. Creation of a Quality Notification...............................................................................67
1.6.2. Outbound Shipments.................................................................................................... 69
1.6.3. Shipping....................................................................................................................... 73
1.6.3.1. Packing Processing................................................................................................... 73
2. Inventory Management, Warehouse Management and Transportation..............................75
2.1. Goods Movements.......................................................................................................... 75
2.1.1. Inbound Shipments....................................................................................................... 75
2.1.2. Outbound Shipments.................................................................................................... 78
2.1.2.1. Shipment Cost Calculation and Settlement...............................................................78
2.1.3. Goods Accepted........................................................................................................... 79
2.1.3.1. Putaway Processing.................................................................................................. 79
2.1.3.2. Return Delivery.......................................................................................................... 82
2.1.4. Stck Transfers / Trans. Pstngs......................................................................................82
2.1.4.1. Two-Step Stock Transfer...........................................................................................82
2.1.4.2. One-Step Stock Transfer........................................................................................... 82
2.1.4.3. Difference Processing................................................................................................ 82
2.1.5. Goods Issue................................................................................................................. 83
2.1.5.1. Stock Removal Processing........................................................................................83
2.2. Physical Inventory & Cycle Counting...............................................................................85
2.2.1. Physical Inventory........................................................................................................ 85
2.2.1.1. Specification of Cycle Counting Phys. Inv..................................................................85
2.2.1.2. Cycle Counting Phys. Inv. Preparation......................................................................85
2.2.1.3. Sample Processing.................................................................................................... 86
2.2.1.4. Printout of Physical Inventory Document...................................................................86
2.2.1.5. Inventory Count......................................................................................................... 86
2.2.1.6. Physical Inventory Analysis.......................................................................................86
2.2.1.7. Post Inventory Differences.........................................................................................87
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Master Data
1. General Master Records
1.1. Material Master
Q: 1) Which departments/organizational units are responsible for maintaining the material
data?
A: Inputs to be given by the relevant departments, creation as well as maintenance to be

through a single point contact at Head office.
Q: 2) Is master data common across all departments (common master data)?
A: Not currently. To be made common across all departments.
Q: 3) What is the default sales unit in sales processing and what are alternative sales
units?
A: Sales units (default) may be in Boxes, Tins, Kgs etc.

Alternate units are Mts, Kgs, Pouches, etc.
Q: 4) Which types of materials do you distinguish between (examples, accruals, quantity

structures)?
A: Raw materials, Engineering goods, Finished goods, Consumables.
Q: 5) How do these types differ regarding business processes (stock management,

procurement, sales, and so on), data maintained, and persons responsible?
A: Stock management is based on type of materials. For e.g Oil is stored in tanks.
Procurement of process materials is based on requirement.
Q: 6) Do you group similar products together (for example, in divisions or material groups)?
A: Yes.
Q: 7) Do you maintain additional statuses for your materials (such as sales status)?
A: Presently additional statuses are not maintained.

To be maintained.
Q: 8) If you have multiple plants, is your material normally supplied by a specific plant?
A: No
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Q: 9) Do you maintain additional types of grouping for other processes (for example, rebate,
statistics, commission or pricing)?
A: Yes.
Q: 10) Is the creation of a multi-level hierarchy necessary for materials (product hierarchy)?
A: No.
Q: 11) Do you record a minimum delivery quantity on your materials? If so, what happens
during sales order processing if a violation occurs?
A: No.
Q: 12) Are there materials that must be shipped in certain multiples (delivery units)?
A: No.
Q: 13) Do you record information on competitor products (sales support)?
A: Yes.
Q: 14) Can a material have different values in one plant? What are the criteria for the
different values?
A: Yes. Based on duties and taxes paid on imports / domestic purchases.
Q: 15) According to which criteria, does your material master data let you select with regard
to planned QM processes (for example, goods receipt inspection only for raw materials etc)?
A: Depending on the material type.

For E.g:Quality inspection is applicable on all raw materials and finished products.
Q: 16) Do you maintain material-specific technical terms of delivery?
A: Yes, especially for oils, chemicals.
Q: 17) Are the technical delivery terms stored online, and will you print these terms with
each purchase order?
A: Currently not in practice, but to be used.
Q: 18) Do you require your vendors to provide quality certificates (certificates of

conformance or certificates of analysis) either prior to or with material shipments? Describe
the types of certificates you require.
A: Yes.
Analysis certificate & Load port survey report are required for imported oil.
Food grade test certificate for refinery chemicals.
6
Q: 19) Do you require your vendors to provide samples for approval prior to actual delivery?
Please describe.
A: No. Not before delivery.

Samples are checked at the time of delivery and the lot is accepted, if found satisfactory at
the time of Quality Inspection.
Q: 20) Do you block a vendor invoice for payment until the quality inspection has been
successfully completed?
Explanation: Note: The block can be removed manually if required.
A: Yes. It is manually released after negotiations for rebate/discounts with the vendor, if the
quality of the material supplied is found to be below the standard.
This is not applicable in the case of overseas vendors.
Q: 21) Will you process recurring inspections for materials? (Note: This is only possible for
batch-managed materials). Please provide an example.
A: Currently not in practice.
Q: 22) How many different materials do you procure on a regular basis?
A: Approximately 100 different materials belonging to Raw material, Finished goods,

Packing materials, Electrical & Engineering goods, Lab Chemicals, Refinery Chemicals are
procured on a regular basis.
Q: 23) Do you want to maintain a source list for the material types you will procure?
A: Yes.
Q: 24) Do you value your materials using a standard price, a moving average price, or
different valuation methods for different materials?
A: All manufactured goods will be valuated on standard price and all raw materials will be
valuated on a moving average price control.
Different valuation method to be followed for materials whenever necessary.
Q: 25) Each material must belong to exactly one material group. Which material groups do
you need to organize your materials?
A: The different material groups are - Oils, Chemicals, Services, Engineering, Electrical,
Packaging, Consumables, Gases, Miscellaneous, Vehicles, Office materials etc.
Q: 26) Will you need to run MRP ?
A: Yes
Q: 27) How many different G/L accounts do you need for inventory?
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A: Will be handled by FI.
Q: 28) Will you maintain specification data for your hazardous substances?
A: Not in practice currently, but to be followed.
Q: 29) Are separate material master records (perhaps with a separate material type or
numbering system) used in the development and engineering/design processes? How and
when are they converted to operational material number and type)?
A: Not applicable.
Q: 30) Do you use other systems (such as service management or costing) that need
material master records from R/3 and therefore a permanent interface?
A: No. Not required.
Q: 31) Describe the structure and numbering system for material numbers
(internal/external, specific to material type, other criteria).
A: Oils, Packaging Materials & Chemicals: Alpha numeric external numbering with a
maximum of 18 Chars.
All other items: Internal numbering with a maximum of 18 Chars.
Q: 32) Which material types do you use (please complete): FERT, HALB, ROH, KMAT,
HAWA, FMHI, ...?
A: Raw Material, Finished Products, By-Products, Work-In-Progress, Packaging, Chemicals,

Electrical & Engg., Tools.
Q: 33) Do you maintain multilingual descriptions for materials? Which languages are
relevant? How and when are they translated?
A: No.
Q: 34) What types of texts do you maintain for your materials?
A: Purchase order text.
Q: 35) Please describe the process for creating and adding to material data. Include release
procedure/status, important sequences, automatic notifications (workflow), responsibilities,
authorizations, involved systems, and so on.

Q: 36) Describe the change process for materials.
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Explanation: Please note your requirements regarding release procedure/status, important

sequences, automatic notifications (workflow), responsibilities, authorizations, involved
systems, Engineering Change Management, revision levels, and so on.

Q: 37) Which cross-plant and plant-specific material statuses are necessary?
A: Standard SAP setting to be adopted.
Q: 38) Do you need to customize the appearance of or add data fields to the material
master record (additional fields, customized material master, field selection, customer-specific
field checks)?
A: Presently not required.
Q: 39) Do you use classification for your material masters? For what reasons (storing
addition information, search functionality, or variant configuration)?
A: No.
Q: 40) Do you classify standardized parts by loading DIN classes and characteristic data
records?
A: No.
Q: 41) Do you have different valuation techniques (for example, standard versus moving
average)? If so, please explain which.
A: All manufactured goods will be valuated on standard price and all raw materials will be
valuated on a moving average price control.
Different valuation method to be followed for materials whenever necessary.
Q: 42) Do you have inventory valued in different currencies at the same facility?
A: No.
Q: 43) Are your materials taxable?
A: Yes.
Q: 44) For a material is there a main delivery location for a sales department?
A: No.
Q: 45) PM/CS: Do you need a material master especially for plant maintenance / customer
service with reduced information (just basic data and classification data)?
A: No.
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Q: 46) PM/CS: Do your maintenance or service equipment include major components that
you want to deal with individually to compile separate histories? If so, describe these
components.
A: Yes. The component list is to be given by KRPL.
1.2. Service Master

Q: 1) Is it necessary for you to procure services from external suppliers? If so, do you want
to structure and manage these services? What kind of services do you procure?
A: Yes.
Yes.
Services - Consultancy, Clearing & Forwarding, Brokerage, Commission Agents, Ship Survey,
Vessel Handling, Annual Maintenance, Gardening, Labour Contract, House-Keeping.
1.3. Vendor Master Record

Q: 1) What types of vendors do you have? (domestic, foreign, payment address, etc.)
A: The vendors are classified as:

1. Overseas
2. Local
3. Interstate
Q: 2) How many active vendors do you want to transfer to R/3?
A: N.A.
Questions:
Q: 3) How do you want vendor numbers assigned in the R/3 System? Name your criteria for
manual and automatic number assignment. Describe the format of manually assigned vendor
numbers.
Explanation: Ways of assigning numbers: 1. Automatically by the R/3 System 2. Manually be

the user 3. Automatically and manually
A: [ ] Always automatically from the SAP System

[ ] Always manually from the user
[X] Automatic or manual
Q: 4) Do you have plants that supply materials or services to other plants in other company
codes?
A: Yes.
Q: 5) Do stock transport orders take place between stores or between the DC and store? If
so, for which sites?
10
A: Both.
The Stock transport order arrives from the C & F Agent (Plant) to our Production Plant. With
reference to this, the materials will be provided.
Q: 6) Do you want to reflect the organizational structure of your vendors in the R/3 System?
A: No.
Q: 7) Is it necessary for you to maintain different purchasing vendor master data for different
plants?
A: No.
Q: 8) When working with your suppliers, do you deal with people with different roles? If yes,
indicate the appropriate roles.
A: [X] Order recipient

[X] Goods supplier
[X] Invoicing party
[X] Payment recipient
[ ] Other, please specify
Q: 9) Do you employ different payment terms by facility?
A: Yes. For consignment vendors, if the payment is made in advance, the discount of 1% is
allowed by the vendor.
For Overseas vendor, the payment terms are fixed in L/C as 90 days from BL.
Q: 10) Are there any vendor-specific instructions or information that you want to include in
purchasing documents?
A: No
Q: 11) Do your vendors offer discounts for prompt payment (for example, 1% cash discount
within 10 days)? Provide a list of the payment terms you require.
A: Yes. For consignment vendors, if the payment is made earlier, the discount of 1% is
allowed by the vendor.
For Overseas vendor, the payment terms are fixed in L/C as 90 days from BL.
Q: 12) Do you specify foreign-trade-specific information in your purchasing documents

(such as CIF or FOB)? hose needed.
A: Yes.
Q: 13) Do you have vendors with several/different ordering addresses, payees, carriers, and
so on? If so, what do these depend on (assortment, supply region)?
A: Yes.
Depending on supply region & supplying group, the ordering addresses, payees and carriers
differs.
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Q: 14) Do you need to maintain default data for the article master (such as planned delivery
time, purchasing group) at vendor level?
A: Yes
Q: 15) Brazil only: Do you need a CGC/CPF check for vendors? If so, how do you want the
system to act (information message, warning, error message)?
A: N.A.
Q: 16) How many vendors regularly supply you with goods?
A: More than 200 vendors.
Q: 17) Do you have vendors who are subject to withholding tax?
Explanation: Possibile to group with different account groups; Maintenance of fields in

master record. in master record.
A: Yes.
2. Procurement

2.1. Manufacturer Part Number

Q: 1) Will you maintain your vendor's part number within SAP, associated to your material
master number? If yes, could there be more than one manufacturers part number associated
with one of your material master numbers?
A: No.
2.2. Conditions
Q: 1) Which price components do you use in purchasing documents (e.g. gross price,
surcharges, discounts, freight, duty, import)?
A: Gross price, Taxes, Surcharges, Discounts, Freight, Excise Duty, Insurance, Packing &
Forwarding.
12
Q: 2) Do prices depend on the quantity ordered (e.g. quantity discounts or price scales)? If
so, specify price components, quantity, and other factors.
A: No.
Q: 3) To which date does the price determination process relate? (E.g. delivery date, PO
date, other.)
A: PO date.
Q: 4) Is pricing information from other systems to be used for price computation purposes in
R/3?
A: No.
Q: 5) Do you manually change the price at header level for the entire purchasing
document?
A: No.
Q: 6) Do you allow changes to the gross price that is automatically determined by the R/3
System?
A: Yes.
Q: 7) Does the vendor's price include value-added tax?
A: N.A.
Q: 8) Is it possible to change pricing conditions after a PO has been created?
A: No.
Q: 9) Specifically for Brazil indexation: Which indexes and forms are necessary?
A: N.A
2.3. Source List

Q: 1) Will you maintain specific vendor hierarchies?
A: Yes.
Q: 2) Do you want to maintain a list of approved vendors? This means that if a material is
subject to a source list requirement, it can only be procured from the vendors included on the
source list.
A: Yes
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Q: 3) Do you need a source list for: (1) all materials (2) all materials of a plant (3) certain
materials only? Please explain.
A: For all materials.
Q: 4) Is there a fixed vendor for some materials? (1) No. (1) Yes, in certain plants (specify)
(2) Yes, across the entire enterprise (3) Yes, everywhere except in certain plants (specify).
A: Yes. Across the entire enterprise.
Q: 5) Do some vendors cover certain geogr. regions? (1) No. (2) Yes. Warning if vendor
does not cover relevant region. (3) Yes. Prevent issue of POs in latter case.
o
Explanation: Are some of your suppliers specific to a geographic region? Are some of your
suppliers specific to a geographic region? Example : ACME Widgets supplies plants in the
western region; ABC Widgets supplies plants in the eastern region. A western plant should
not order widgets from an eastern region supplier. not order widgets from an eastern region
supplier. (1) Do not need this feature. (2) Want this feature, warning only if vendor does not
cover the plant's region. (3) Want this feature, preventing orders from vendors that do not
cover a plant's region. a plant's region. If you want to use this feature, indicate the region to
which each of your plants belong.
A: No.
Q: 6) Should it be possible to for purchase orders to be created automatically in the course

of material requirements planning (MRP)?
A: Yes
Q: 7) Should it be possible to for scheduling agreement schedule lines to be created

automatically in the course of material requirements planning (MRP)?
A: Yes
2.4. Quota Arrangement

Q: 1) Will you maintain specific vendor quotas (for example 70 % from vendor A, 30% from
vendor B) for your materials? If yes, how many quota arrangements are you currently
maintaining?
A: No.
2.5. Delivery Address

Q: 1) Are there addresses, over and above the plant address(es) that will be used
repeatedly on purchasing documents? If yes, provide a list of those needed.
A: For some materials the delivery addresses are maintained.

Machineries, Chemicals, Lab Equipments, some packing materials, Elec. & Engg. items.
Plant 1000 -
No. 5, Mambakkam Road , Vengaivasal , Chennai 73
Plant 1100 -
14
No. 64, T.C. Street, Chennai 21

Plant 1201-
Q: 2) Do any storage locations have an address that varies from the assigned plant? If yes,
provide a list of the additional specific storage location addresses.
A: Yes.
COMPANY CODE: 1000
Plant 1100
Godown at 18, T.C.Street. G001
Godown at 2, K.M.Street G002
Godown at 8, Andiappan St. G003
Bonded Warehouse 1110

Tank - B1 at Suraj Agro H001} Suraj Agro Products Pvt. Ltd.
Tank - B2 at Suraj Agro H002} South Sand Screen Area,
Tank - B3 at Suraj Agro H003} Chennai Harbour.
Tank - C1 at Suraj Agro H004}
Tank No.1 to Tank No.36 T101 to T136 - No.5, Mambakkam Road,
Vengaivasal, Chennai - 73.
Warehouse at Harbour 1120

C & F Agents - Wadala 1201

Godown at Seweri W001
Godown at Godrej W002
C & F Agents - Pune 1202

Godown at Pune P001
C & F Agents - Bangalore 1300

Godown at Bangalore B001
C & F Agents - Hubli 1301

Godown at Hubli H001
C & F Agents - Mangalore 1302
Godown at Mangalore M001
C & F Agents - Palakhad 1401

Godown at Palakhad P001
C & F Agents - Hyderabad 1500

Godown at Hyderabad H001
Processing plant at Hyderabad H002
C & F Agents - Vijayawada 1501

Godown at Vijayawada V001
COMPANY CODE: 5000

AKOT- No.16, T.C.Street 5000
Godown at 16, T.C.Street G001
AKOT-Bonded Warehouse 5001
15

AKOT-Warehouse at Harbour 5002
COMPANY CODE: 5100

THARUN OIL TRADER 5100
TOT-No.64, T.C.Street 5100
TOT-Bonded Warehouse 5101

TOT-Warehouse at Harbour 5102

COMPANY CODE: 5200

ANANDA OIL CORPORATION 5200
AOC-No.29, T.C.Street 5200
Tank No.1 at No.29, T.C.St., T001
AOC-Bonded Warehouse 5201
AOC-Warehouse at Harbour 5202
COMPANY CODE: 5300

ARUN OIL TRADE 5300
AOT-No.2, K.M.Street 5300
16

AOT-Bonded Warehouse 5301
AOT-Warehouse at Harbour 5302
COMPANY CODE: 5400

G.M.S.TRADERS 5400
GMS-No.2, K.M.Street 5400
GMS-Bonded Warehouse 5401
GMS-Warehouse at Harbour 5402
COMPANY CODE: 5500

GURU OIL MART 5500
GOM-No.29, T.C.Street 5500
GOM-Bonded Warehouse 5501
GOM-Warehouse at Harbour 5502
COMPANY CODE: 5600

KALEESWARI OIL STORE 5600
KOS-No.1, K.M.Street 5600
Godown at 1, K.M.St. G001
Tank No.1 at 2, K.M.St. T001
Tank No.2 at 2, K.M.St. T002
17
KOS-Bonded Warehouse 5601

KOS-Warehouse at Harbour 5602
2.6. Vendor Rebate Arrangements

Q: 1) Do you wish to send your business partners written confirmation of rebate
arrangements entered into with them?
A: No
Q: 2) Do you grant your vendors volume rebates based on the volume of business done
over a period of time?
A: No.
2.7. Release Strategy with Classification

Q: 1) Will any purchasing documents be subject to approval in SAP? If yes, describe the
criteria that will be needed to determine the appropriate approval policy for purchase
requisitions, RFQs, purchase orders, contracts, scheduling agreements.
A: Yes.
2.8. Vendor Evaluation

Q: 1) How do you evaluate vendors in your legacy system?
A: No Procedure.
Q: 2) Which criteria do you use to evaluate your vendors?
A: Depends on Quality, Pricing, Delivery time, Service support.
Q: 3) How do you rate the scores for these criteria? If the criteria are not weighted equally,
indicate the individual weightings.
A: Weighted Equally.
3. Inventory Management, Warehouse Management

and Transportation
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3.1. Hazardous Material

Q: 1) Are your hazardous materials administered at just one or several storage locations?
A: Several Storage Locations.
3.2. Batch
Q: 1) General: Do you manage your materials in batches? In what areas (inventory
management, production, sales and distribution, warehouse management, quality
management) do you use batches?
A: No.
Q: 2) General: How many batches do you have in a particular period of time?
A: N.A.
Q: 3) General: Do you want to copy the batch numbers from your vendors into the SAP
System? Do you want this to be entered using a batch master record or a characteristic
(classification)?
A: No.
Q: 4) General: Which organizational area is responsible for batch management and

maintenance?
A: N.A.
Q: 5) Batch level: Do your batches have to be unique at a plant level, cross-plant at material
level or customer level?
A: N.A.
Q: 6) Batch level: Do you want some materials to be handled in batches in some plants and
not in others?
A: N.A.
Q: 7) Batch level: Do you transfer batches among different plants? Do you want the
transferred batch to be known in the receiving plant? (plant level or cross-plant level)
A: N.A.
Q: 8) Batch level: If it is cross-plant, is it possible that you must assign the same batch
number to different materials? (material level or customer level)
A: N.A.
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Q: 9) Batch number: Do want the batch number to be assigned automatically or manually?

(internal and external number assignment)
A: N.A.
Q: 10) Batch number: Do want to automatically create batches for goods movement or for
the material you want to produce in the order?
A: N.A.
Q: 11) Batch number: Do you want to explain how your batch numbers are set up?
A: N.A.
Q: 12) Batch status management: Do you want to represent the usability of a batch using
batch status management?
A: N.A.
Q: 13) Batch status management: In what way are batches released and who is responsible
for their release?
A: N.A.
Q: 14) Batch status management: Do you have to manage the status of a batch as a cross-
storage location or a cross-stock type?
A: N.A.
Q: 15) Batch specifications: Do you want to describe the technical, physical and/or chemical
properties of a batch using characteristics and characteristic values?
A: N.A.
Q: 16) Batch specifications: Can you group certain materials based on a common
specification to classes?
A: N.A.
Q: 17) Batch specifications: When do you assign values to characteristics? Where does the
information for the value assignment come from? (for example, from the result summary in
QM)
A: N.A.
Q: 18) Batch determination: Do you need batch determination in order to find goods
movements from a warehouse that have a certain specification? In which areas (inventory ma
nagement, production, sales and distribution) do you use batch determination?
A: N.A.
20
Q: 19) Batch determination: What criteria do you want to use to find and sort the batches?
(batch-find strategy)
A: N.A.
Q: 20) Batch determination: Define a batch-find strategy in order to set which conditions
(criteria) you want to use to find batches.
A: N.A.
Q: 21) Batch determination: For performance reasons, it is recommended that some SAP
standard characteristics, such as deletion indicator or batch status, are included in th e
selection class,
A: N.A.
Q: 22) Batch where-used list: Do you want to document the path of a batch through the
enterprise using a batch where-used list? (for liability reasons)
A: N.A.
Q: 23) Active ingredient management: Do you want to manage materials with active
ingredients that are to be handled with batches?
A: N.A.
Q: 24) Active ingredient management: Do you have materials that have the amount of
active ingredients or fixed components managed in percent (%)?
A: N.A.
Q: 25) Active ingredient management: Do you have material that must be managed using
two different measuring units, such as ounces and grams? Is the relationship between them a
percent or can it be defined freely?
A: N.A.
Q: 26) Active ingredient management: Is the price based on the amount of ingredients? Do
you order raw materials in ingredient units of measure?
A: N.A.
Q: 27) Active ingredient management: Do you want to carry out a batch determination
based on ingredient amounts?
A: N.A.
Q: 28) Do you want to manage and track materials by batch? If yes, specify the materials
or groups of material.
21
A: N.A.
Q: 29) Do you want to manage and track materials by expiration date? If yes, specify the
materials or groups of material, also specify if you wish to see the total shelf life of the
material, or the remining shelf life.
A: N.A.
Q: 30) Do you have any materials where you keep track of the amount of active ingredients;
or percent solids?
A: N.A.
3.3. Batch Search Strategy

Q: 1) Do you use batch materials in Sales and Distribution?
A: N.A.
Q: 2) Define the characteristics that are important when searching for a batch of a material,
such as color, weight, expiration date (selection class).
A: N.A.
Q: 3) When selecting material from batches that have met the criteria in the previous
question, what rules do you follow (FIFO or LIFO, quality, other)?
A: N.A.
Q: 4) When searching for a batch, what key information do you use (strategy type)?
A: N.A.
Q: 5) Do you need automatic or manual batch determination in Sales?
A: N.A.
Q: 6) Do you determine batches at order time or at delivery time?
A: N.A.
Q: 7) Does the material for a sales order have to be taken from only one batch, or are batch
splits allowed?
A: N.A.
22
B. Business Processes
1. Procurement

Q: 2) How does material move between plants?
A: By Stock Transport Order.
1.1. Procurement of Materials and External Services

1.1.1. Purchase Requisition
1.1.1.1. Purchase Requisition Processing
Questions:
Q: 1) How are purchase requisitions created in the case of stock material, material for direct
consumption, external services?
A: [X] Manually
[X] MRP
[X] Sales order
[ ] Replenishment
[X] Store order
[ ] Outside R/3
Q: 2) Will you use a purchase requisition to trigger creation of for a contract or scheduling
agreement (Outline Agreement Request)?
A: Yes
Q: 3) How many days does it take, typically, before a purchase requisition becomes
demand in a purchasing document given to a supplier? Please indicate processing time per
plant.
23
Explanation: This would be used by the system to calculate replenishment lead times.
Example : In plant A, within two days the purchasing department will convert a requisition for
widgets into a purchase order issued to a supoplier.Please indicate processing times per
plant.
A: Approximately 1 to 4 working days
For Company code 1000

1. Factory at Medavakkam 1000
2. Head Office 1100
3. C & F Agents - Wadala 1201
For Company code 5000.

1. No.16, T.C.Street 5000



1. No.2, K.M.Street 5300



For company code 5700

1. No.11, Andiappan.Street 5700

Q: 4) Will purchase requisitions generated via material/article requirements planning be

manually post-processed?
Explanation: Problematic if dynamic rounding profiles are used, because these only take
effect at the time of conversion into POs. You post-process the result, which is changed again
after the manual post-processing (via rounding profiles). (via rounding profiles).
A: Yes
1.1.1.2. Purchase Requisition Assignment
Q: 1) On the basis of which criteria are purchase requisitions assigned to a source of

supply?
A: 1. Plant Requirement
2. Price
24
3. Quality
4. Delivery Time
Q: 2) On the basis of which criteria are purchase requisitions grouped together?
A: As per the combination of Material and Vendor.
Q: 3) What support (e.g. price simulation) does the buyer need in order to assign the
purchase requisition?
A: 1. Plant Requirement
2. Price
3. Quality
4. Delivery Time
Q: 4) Are purchase requisitions converted into requests for quotations?
A: Yes
Q: 5) Which sources of supply will you use for purchase requisitions? Are these sources of
supply internal and/or external to your company?
A: External source of supply.
1.1.1.3. Release Purchase Requisition
Q: 1) Should requisitions be subject to approval by someone (or possibly several people)

before the requisition can be processed into an RFQ and/or purchase order?
a
Explanation: Example: all requisitions for over $1000 must be approved by the purchasing
department manager, all requisitions for over $10000 must be approved by the department
manager and the chief financial officer. If yes, describe the approval process, and under what
circumstances the approval process applies - for stock material - for consumable material -
for external services
A: Yes.
Q: 2) Are the purchase requisitions subject to a release strategy? If so, which criteria apply?
A: Yes. Document type, Plant, Purchasing Group
Questions:
Q: 3) How is the person responsible for releasing the purchase requisition to be notified?
A: [X] Via workflow

[ ] Other procedure
[X] Approver regularly checks R/3
[ ] By telephone
[ ] By e-mail
25
1.1.2. Purchasing
1.1.2.1. Purchase Order Processing
Questions:
Q: 1) How will purchase orders be created in your system?
A: [X] Manually
[X] From purchase requisitions (manual or automatic)
[X] From store order
[ ] From replenishment
[ ] From allocation table
[ ] From load-building run
[ ] From SAP Retail Store
[X] For stock material
[X] For consumable material
[X] For external services
Q: 2) Do you want the system to check whether the purchase price is within a predefined
tolerance in your system, compared with the material valuation price?
A: Yes.
Q: 3) Describe how the source of supply is determined for manually created purchase
requisitions!
A: Assigning source of supply, source determination.
Q: 4) Specify the consumption categories for which you will procure external services and
material directly: Asset, cost center, production order, project, sales order, other (please
specify).
A: Asset, Cost center, project, Sales Order, Production Order.
Q: 5) Which types of purchase order will you use?
A: [X] Standard
[X] Consignment
[X] Subcontracting
[X] Stock transfer
Q: 6) How do you transmit purchase orders to your vendors?
A: [X] via mail

[X] via fax
[ ] By EDI
[X] Other
Q: 7) Do you order material in a unit of measure that differs from the one used for
stockkeeping purposes?
A: Yes
26
Q: 8) Do you pay for material in a different unit of measure than the one that is shown in the
PO/and or used for stock putaway?
A: No
Q: 9) Is it necessary to track certificates of origin and/or customs reference numbers for

materials produced in foreign countries?
A: Yes.
Q: 10) Will you be purchasing material imported from foreign vendors ?
A: Yes
Q: 11) Are purchasing info records to be updated automatically with every purchase order?
Explanation: If updating is desired and you use rounding profiles in the case of stock
transport orders, after the first purchase order created the logistic data on the article is no
longer read for the rounding profile. Instead the newly created purchasing info records are
read! profile. Instead the newly created purchasing info records are read!
A: Yes
Q: 12) Do you wish to analyze/evaluate purchase transactions according to the reasons for
ordering?
A: No
Q: 13) Do you plan and enter freight costs in the PO? If yes, describe the basis of the costs.
Also indicate if any types of costs can be determined automatically (for example, freight costs
per piece, per unit of weight, as a percentage of the value).
A: Yes. Based on the distance.

Freight costs per piece, per unit of weight and as a percentage of the value.
Q: 14) Do you want to prevent users from changing the account assignment of items in
purchasing documents for which they have no authorizations? If so, for which purchasing
documents?
A: [X] Purchase requisitions

[X] Purchase orders
[X] Contracts
[X] Scheduling agreements
Q: 15) Do you sometimes order stock material directly for a cost center or another
consumption category?
A: Yes
Q: 16) Do you have to declare your ordering activities to the authorities? If so, describe.
27
A: Yes.
If the material is imported and if it is to be bonded, then the same should be informed to the
Customs Authorties for getting necessary licenses.
While transporting, storing and handling hazardous materials.
Q: 17) Do you allow overdeliveries? If so, specify the percentage variance for the individual
materials/material types.
A: Yes.
For all the materials (+/-) 3% to 5% allowed.
Q: 18) On the occasion that a vendor sent you less than the quantity ordered, would you
ever want this shortfall to be considered an under delivery, with no further deliveries
expected? Please list the values for each material/material group.
Explanation: In case of exceeding this value, it will be a partial delivery. In case the value
stayed below, it will be an under delivery
A: Yes.
For all the materials (+/-) 3% to 5% allowed.
Q: 19) Can the materials you purchase be subject to different tax types? (For example,
based upon the material purchased, based upon the plant for which the material is
purchased, etc)? o
A: Yes.
Q: 20) Do your POs issued to vendors contain specific transport or packing instructions? Is
vendors' compliance with the transport and packing instructions to be recorded when the
goods are received ?
Explanation: e.g., full compliance, ignored instructions, ...
A: Yes.
Q: 21) Is it to be possible for purchase orders to be generated automatically following a

goods receipt? Specify the criteria for this.
Explanation: Define the movement types for which this should be allowed.
A: No.
Q: 22) Who is responsible for purchase order processing in your firm?
A: [ ] Head office
[ ] Store
[X] Both
28
1.1.2.2. Contract Release Order
Q: 1) Will contract release orders be created in R/3 manually, with reference to purchase
requisitions, and/or automatically? (For more details, refer to the Source Administration
Scenario.) - for stock material - for consumable material - for external services
A: Yes. Manually.
1.1.2.3. Release of Purchase Orders
Q: 1) Are purchase documents to be approved by someone before being issued to

vendors? Describe the approval procedure....
Explanation: Example: all purchase orders for over $100,000 must be approved by the
purchasing department manager, all purchase orders over $1 million must be approved by
the President. Describe the approval process, and under what circumstances the approval
process applies. - for stock material - for consumable material - for external services
A: Yes.
Managing Director, Director, General Manager, Plant Manager.
Q: 2) How is the person responsible for approval to be notified? - Approver checks R/3
regularly, by phone, by e-mail, by workflow, other.
Explanation: Background: Workflow for release procedure Background: Workflow for release
procedure
A: Check R/3 regularly, by phone, e-mail (internal).
Q: 3) Will you use an electronic signature to release purchasing documents?
A: No
1.1.2.4. Transmission of Purchase Orders

1.1.2.5. Scheduling Agreement Delivery Schedule
Q: 1) Are scheduling agreement delivery schedules/SA releases created in R/3 manually,

with reference to requisitions and/or automatically? (Further details in sourcing administration
scenario.)
A: Yes. Manually.
Q: 2) How do you wish to synchronize (monitor) the delivery schedules/SA releases with
respect to the quantities delivered?
A: As per the requirement the delivery schedules are adjusted.
Q: 3) Do you want to offer your vendors the option of viewing the scheduling agreement
releases via the Internet?
Explanation: The prerequisites for using Internet release are that the Supplier Workplace is
installed in your system and that the vendors concerned can access it via the Internet. In the
29
release creation profile you can specify which release type is to be handled as an Internet
release.
A: No.
1.1.2.6. Delivery and Acknowledgment Expediter
Q: 1) How many days after the due delivery date will you send messages to your vendors
urging delivery of the overdue goods?
A: From the next day onwards.
Q: 2) Should this deadline monitoring vary for different materials or articles? If so, please
explain.
A: No.
Q: 3) Will you send out reminders regarding outstanding vendor confirmations if the due
date is exceeded? Acknowledgment deadline is exceeded?
A: Yes
Q: 4) Which kinds of purchasing document do you want to send to vendors? 1) The

complete purchasing document 2) Information re changes 3) Reminders (prior to due date 4)
Urging letters/expediters (after due date) 5) Scheduling agreement delivery schedules.
Explanation: What kinds of purchasing document output (for example printouts, fax
messages, EDI) will you send to your vendors? 1) Complete purchasing document 2) Change
notice (When a purchasing document which has already been outputted and sent to a vendor
is changed, you can only output the changes instead of the entire document) 3) Reminders
(send before the due date) 4) Urging letters or "expeditors" (send after a due date) 4) Urging
letters or "expeditors" (send after a due date) If you use order confirmations and/or shipping
notifications: 5) Urging Letter for Outstanding Acknowledgement or Shipping notification
notification If you use scheduling agreements: 6) Rolling Delivery Schedule 7) Urging Letter
Related to Rolling Delivery schedules
A: 1. Request for Quotation

2. Purchase Order
3. Information re changes
4. Urging letters/expediters (after due date)
5. Scheduling agreement delivery schedules.
1. Complete purchasing document

2. Change notice
3. Urging letters or "expeditors" (send after a due date)
4. Urging Letter for Outstanding Acknowledgement or Shipping notification notification If you
use scheduling agreements
6. Rolling Delivery Schedule
7. Urging Letter Related to Rolling Delivery schedules
Q: 5) Will you send urging messages (expediters) to your vendors in the case of overdue
deliveries. If so, how many days after the due date will you do this?
A: Yes. Immediately.
30
Questions:
Q: 6) How are reminders and urging letters (expediters) to be sent to your vendors?
A: [X] By post
[X] By fax
[ ] By EDI
[X] By e-mail
[ ] Other, please describe
1.1.2.7. Inbound EDI Processing
Q: 1) Create a list of which R/3 messages are sent to which business partners, which IDoc
type is used, and which EDI standards the messages are to be converted into.
Explanation: Example: Customer 1 - Shipping notification - DESADV01 - VDA4913 Customer

2 - Shipping notification - DESADV01 - ANSIX12 856
A: N.A.
Q: 2) From how many different business partners will you receive EDI messages?
Explanation: Examples: Customer forecast delivery schedules, vendor shipping notifications
A: N.A.
Q: 3) Describe the changes you want to make to the standard EDI messages.
Explanation: If your customer or vendor uses message fields differently from the way you
use them, you need to make assignment changes. In some cases, you may need to add
more fields. Remember to distinguish between adjustments re mapping and adjustments re
function modules in R/3.
A: N.A.
Q: 4) Under which operating system do you want your EDI subsystem to run?
A: N.A.
Q: 5) Which interface technique do you want to use for exchanging messages between R/3
and your subsystem?
Explanation: Example: tRFC or field port
A: N.A.
Q: 6) Has SAP certified your EDI subsystem?
31
Explanation: For information on which EDI subsystems have been certified by SAP, look
under http://www.sap.com/products/compsoft/certify/solution.htm#cross_apps or in SAPNet -
R/3 Frontend (formerly OSS) under note number 0114714
A: N.A.
Q: 7) Make a list showing the number of all outgoing messages (customer-specific) and the
desired send time.
Explanation: Example: time fixed as soon as document is created
A: N.A.
Q: 8) Create a list showing the number of all incoming EDI messages (customer-specific)
and the desired processing time
Explanation: Examples: immediately upon receipt, periodically...
A: N.A.
Q: 9) Do you want to use Work Flow to be notified of errors or warnings?
A: Yes.
Q: 10) What type of reporting tools do you want to use?
Explanation: Example: Idoc lists, active monitoring
A: N.A.
1.1.2.8. Processing of Shipping Notifications/Confirmations
Q: 1) Will you process shipping notifications with the R/3 System?
A: Yes
Q: 2) Once you have issued a purchasing document to a vendor, do you want to track
"confirmations" your vendor may return to you regarding the order?
Explanation: Examples: 1) Order acknowledgements which confirm the order dates and
quantities. 2) Shipping notifications, informing you that the vendor has shipped the goods
(you can have goods receipts with reference to shipping notifications). 3) Any other - please
describe.
A: Yes.
1) Order acknowledgements which confirm the order dates and quantities.

2) Shipping notifications, informing that the vendor has shipped the goods
32
Q: 3) What do you do if the order acknowledgment contains quantity and/or delivery date
variances vis vis the purchase order or a previous acknowledgment?
A: N.A.
Q: 4) Which type of vendor confirmation do you need and at which time intervals? Which
events should trigger a confirmation?
A: The import purchase order should have Shipping notification confirmation.
1.1.3. Transportation
1.1.3.1. Message Transmission for Transport Documents
Q: 1) Do you require shipment documents for physically transporting the merchandise? If

so, what form of document (e.g. paper, EDI)?
A: Yes, paper.
Q: 2) What information do these documents contain?
Explanation: Note: Collect sample printouts for billing documents, credit memos and debit
memos, and decide which information (data fields) these documents should contain.
A: Customer's name & address

Delivery challan no & date
Invoice No. & date
Transporter name and vehicle number
Qty, rate , taxes, ED and value
Special condition text, if any
Means of transport
Service agent, etc.,
Questions:
Q: 3) How are shipping documents to be transmitted?
A: [X] Paper
[ ] Telephone
[X] Fax
[X] E-mail
[ ] EDI
1.1.3.2. Transportation Planning and Processing
Q: 1) Do you plan transportation yourself?
A: Yes.
Q: 2) Do you use any third-party transportation systems?
A: Yes
33
Q: 3) Describe your transportation handling in detail.
A: - Sistern corcern transportation services are utilised for local deliveries.

- Third party transportation are arranged for outstation's deliveries.
Q: 4) What carriers do you use to transport goods?
A: - Vans
- Trucks
- Container trucks
- Tanker lorries
- Bullock cart
- Tri-Cycles
- Tempos
Q: 5) How do you select your carriers?
A: - Based on the quantity to be loaded.

- Type of material.
- Location of the customer.
- Freight Charges.
Q: 6) How do you create shipments?
A: - All deliverable orders are shipped to customer based on the availability of stock.
- Goods are loaded in the carrier as instructed in Delivery Note to loading point, created
through
out-bound delivery from pending sales orders.
- A carrier may deliver goods to different customers on the same route.
- A carrier may carry goods of different different sister concerns to same or different
customers.
- Delivery Challan is printed out.
- Billing is done based on delivery and Invoice document is created.
- 2 copies (1 Customer copy + 1 verification copy) of Printed Delivery Challans and Invoices
are
handed over to driver of the carrier, who carries the goods to customers, after verification.
- In case of out satation delivery, Transit pass is also sent along with other documents.
Q: 7) Do you have Individual and/or Collective Shipments?
A: Both individual and collective shipments.
Q: 8) Do you use one mode of transport per route or a combination of modes per route, e.g.
road, rail, sea?
A: Generally we use one mode of transport per route, but in some cases, we may use
combination of modes per route during export, strike,etc.,
Q: 9) Do you need leg determination?
A: Yes.
34
Q: 10) List all documents required to complete the transportation process.
A: - Lorry receipt , Vehicle registration No.and transporter's name

- Transit pass in case of other states
- Driver's particulars like, name, licence no., validity
- Weighment slip contains gross, tare and net weight
- Invoice , delivery challan, excise gate pass, form XX / XXVII number, etc.,
- Necessary documents required for export.
Q: 11) Do you record the progress of the shipment?
A: Yes.
Q: 12) If so, which ones?
A: 1. At the time of Importing the Documents like BL & Invoice is tracked.

2. Transportation, Date of shipment, ETA
3. Place of Destination
4. Mode of delivery
Q: 13) Is freight charged to the customers or is it absorbed by the company?
A: Both.
Q: 14) Do you need to be able to enter your actual transportation data at a later point in
time (for example, time taken, distance travelled)?
A: Yes.
Q: 15) How do you determine shipment costs (for example, kilometers, volume)?
A: Shipment cost is determined by the volume of the cargo and distance to be travelled.
Q: 16) How do you carry out settlement accounting with the external carrier?
A: On receipt of their Bill
Q: 17) Do you charge stores for the costs of using your own vehicles?
A: No.
Q: 18) Do you handle several deliveries for different ship-to parties in one single shipment?
A: Yes.
Q: 19) According to which criteria do you group deliveries for one shipment?
A: 1. Capacity of the vessel or vehicle

2. Customers order
3. Area of the customers
35
Q: 20) Do you have your own vehicles or do you use external carriers?

Q: 21) What do you use as a basis for scheduling your vehicles or the vehicles of your
external carrier?
A: Location and distance of the customer
Q: 22) How do you respond to capacity constraints? Describe the contractual conditions.
A: During peak season if some customers gives bulk order, the vehicle is accordingly
arranged to supply the stock in time. In case in a lean season 2 to 3 orders are combined in
one delivery.
During import the tolerance limit of (+/-) 2% is allowed. If it exceeds the tolerance limits due
to the capacity of the vessel, the vendor should get concurrence from us. Based on the
approval it has been loaded.
A: Yes.
Form 27 for Local transfers.
Form 20 for Interstate transfers.
A: 1. Commodity.
2. Consignee.
3. Quantity.
4. Value.
5. Tax details.
6. Vehicle number.
7. Destination.
1.1.3.3. Freight Cost Invoicing and Settlement
Q: 1) Is freight charged to the customer or does the company absorb the cost?
A: Both.
Q: 2) How do you calculate your freight costs (freight pricing procedure)?
A: The freight charges are separately negotiated and fixed.
Q: 3) Are you using multi-dimensional scales for freight calculation?
A: Yes.
36
Q: 4) How do you post your freight costs to accounting?
A: Freight costs will be posted to the accounts once the bill received from the transporters
as below.
Debit - Freight outward A/c

Credit - Transporter A/c
Q: 5) Do you verify invoices for your forwarding agents? If so, which rules do you use?
A: Yes. At the time of settlement of Bills.

Rules:
Following documents are verified during settlement.
VehicleNo
Place of delivery
Date of delivery
Acknowledge by the receiver
1.1.4. Goods Receipt

1.1.4.1. Reservation Processing
Q: 1) Will you maintain specific material reservations (for sales, for production) for your
stock materials?
A: Yes.
Q: 2) How far in advance are materials to be allowed to be reserved?
A: 2 days in advance.
Q: 3) In which cases would you want to use manual reservations?
A: For Production, Sales, Stock Transfer and Consumption.
Q: 4) How long after the reservation date are open reservations canceled?
A: Immediately.
1.1.4.2. Goods Receipt Processing
Q: 1) The material stock balances shown in your legacy system are to be transferred to the
R/3 System. Will the stocks be valuated at the prices specified in the R/3 e total value of the
former system be taken over?
A: Yes.
Q: 2) If you do not use the R/3 Purchasing functionality, describe the process of receiving
goods from a vendor.
A: N.A.
37
Q: 3) If you do not use production orders of the R/3 System, describe the process of
receiving goods from production.
A: N.A.
Q: 4) Should the person who posts a goods receipt be able to use a different account
assignment than the one specified via the automatic account determination process?
A: No.
1.1.4.3. Goods Receipt Processing with Reference
Q: 1) Describe the process for receiving goods with reference to a purchase order.
Explanation: General introduction to the subject General introduction to the subject
A: When the material arrives, the commodity, quality, quantity, delivery date are checked
against the Purchase Order before unloading.
For material like oil the Empty Truck weight is also taken into consideration to arrive at the
total quantity delivered.
Q: 2) Name the storage locations to which vendors deliver the goods.
A: Plant SLOC Description

1000 T101 to T136 Tank No.1 to Tank No.136
R001 Refinery Stores - 1
R002 Refinery Stores - 2
S001 Service Tank No.1- Tank 30
RP01 Refinery Plant - 1
W001 Firewood Storage - 1
W002 Firewood Storage - 2
C100 "Chemical Storage - General
C101 Furnace Oil Tank No.1
C102 Furnace Oil Tank No.2
C103 Diesel Tank No.1
C104 Diesel in Barrels
C105 Caustic Lye Tank No.1
C106 Caustic Lye Tank No.2
C107 Phosphoric Acid Tank No.1
E101 Main Stores
E102 Refurbished Stores
P101 Packing Materials at Filling 1
Q100 Quality Lab
ET01 ETP
RO01 RO Plant
G001 General Storage
Plant SLOC Description

1100 G001 Godown at 18, T.C.Street.
G002 Godown at 2, K.M.Street
38
G003 Godown at 8, Andiappan St.

1110 H001 Tank - B1 at Suraj Agro
H002 Tank - B2 at Suraj Agro
H004 Tank - C1 at Suraj Agro
T101 to T136 Tank No.1 to Tank No.136


1130 ST01 Stock in Transit

1201 W002 Godown at Godrej

1500 H002 Processing plant at Hyderabad

5000 G001 Godown at 16, T.C.Street





39


T001 Tank No.1 at No.29, T.C.St.,



5300 G001 Godown at 2, K.M.Street



5400 G001 Godown at 2, K.M.Street

40





5600 G001 Godown at 1, K.M.St.
T001 Tank No.1 at 2, K.M.St.
T002 Tank No.2 at 2, K.M.St.



5700 G001 Godown at 11, Andiappan St

41


6000 G001 Godown at 64, T.C.St.
G002 Shed at No.17, T.C.St.,
Q: 3) How do you inform the Purchasing Department that goods have been received?
A: By Workflow, internal mail, Phone.
Q: 4) Do you receive quantities less than the ordered quantity? If yes, is the purchase order
considered complete then or do you receive the missing quantities later?
A: Yes.
Materials other than Oil will be considered as pending.
Q: 5) Do you physically store the goods you have received into "stock in quality inspection"
at a different location than those posted to normal stock?
A: No
Q: 6) Do you allow every material to be stored at all storage locations? Please describe!
A: No. As per material type, the materials are stored in the respective locations.
Q: 7) Do you use a unit of measure for the pricing of the goods other than the unit you order
in? If yes, you can define the variances in customizing.
A: Yes.
Q: 8) Do the materials you receive have to be stored for a certain time before they can be
used or do they have an expiration date that you want to keep in the system?
A: No.
Q: 9) Do you refuse to accept deliveries if the vendor has not complied with the shipping
instructions? (Can be used to evaluate vendors.)
A: No
Questions:
Q: 10) Which documents are generated with the goods receipt?
42
Explanation: Note on design of SAPScript documents, message determination Note on

design of SAPScript documents, message determination
A: [X] Goods receipt slip

[ ] Bar code sticker
[ ] Other
[ ] None
Q: 11) Which documents are generated in connection with a goods receipt?
Explanation: Note on design of SAPScript documents, message determination Note on

design of SAPScript documents, message determination
A: Goods receipt slip.
Q: 12) If a goods receipt quantity is assigned to a goods issue, do you want the person who
enters the goods receipt to receive a corresponding message?
A: Yes.
Q: 13) Will you inspect the material/article at the time of goods receipt? If so, do you enter
the goods receipt and the inspection result or do you only enter the goods receipt after the
inspection has been carried out?
Explanation: QM module
A: Yes
Q: 14) If you are using batch management, how is the batch number determined at the time
of goods receipt?
Explanation: Batch management Batch management
A: N.A.
Q: 15) Do you classify the batches at the time of goods receipt? Please specify the criteria.
A: N.A.
Q: 16) Is the automatic account determination process defined by Financial Accounting? If

not, who is responsible within Logistics?
A: Yes.
Q: 17) Do you wish to print out the material document as evidence of a goods movement?
Which information should be included in the printout?
A: Yes.
1. Name of Plant
2. Name of the Vendor/Customer
43
3. Quantity
4. Rate
5. Value
6. Date of movement
7. Vehicle No.
8. Related Form No.
1.1.5. Service Entry Sheet

1.1.5.1. Service Entry Sheet
Q: 1) Do you wish to process or document completion of the services performed by the

service provider?
A: Yes
1.1.6. Invoice Verification

1.1.6.1. Evaluated Receipt Settlement (ERS)
Q: 1) According to which rules do you effect automatic settlement with regard to goods
receipts?
A: N.A.
Q: 2) Should a goods receipt with reference to a PO automatically generate an invoice for

the delivery?
A: No.
1.1.6.2. Invoicing Plan Settlement
Q: 1) How many invoicing plans will you have?
A: 1. Advance Payment
2. Partial payment
3. Immediate payment
4. Payment after the credit period. (from 10 to 120 days)

A: N.A.
A: N.A.
44
A: N.A.
A: N.A.
and your subsystem?
A: N.A.
A: N.A.
desired send time.
A: N.A.
A: N.A.
A: Yes.
45
A: N.A.
1.1.6.4. Invoice Processing with Reference
Q: 1) Do you reduce the amount of your vendors' invoices automatically in the event of
variances?
A: Yes.
Q: 2) Name the types of tax that might appear on a vendor's invoice.
A: 1. Exise Duty
2. Central Sales Tax
3. Local Sales Tax
4. Surcharge
5. Re-Sale Tax
6. Customs Duty
7. CESS
8. CVD
9. Entry Tax
10. APMC
11. Service Tax
12. VAT (Value added Tax)
Q: 3) List the types of tax that are generally applicable and should therefore be
automatically suggested in the standard system when an invoice is entered.
A: 1. Exise Duty
2. Central Sales Tax
3. Local Sales Tax
4. Surcharge
5. Re-Sale Tax
6. Customs Duty
7. CESS
8. CVD
9. Entry Tax
10. APMC
11. Service Tax
12. VAT (Value added Tax)
Q: 4) If there are different types of tax, can groups of these tax types occur together under
certain circumstances?
A: Inter State - Excise Duty, Central Sales Tax.

Intra State - Local Sales Tax, Surcharge, Re - Sales Tax.
Import -
Q: 5) If you are implementing QM, do you always require that goods receipts have passed
QM inspection before being paid ?
A: Yes.
Q: 6) How do you treat unplanned delivery costs included in an invoice ?

46
Explanation: Notes: Delivery costs are additional costs such as for express delivery.
A: By making subsequent Debit or Credit Memo
Q: 7) Do you sometimes have to change the account assignment for a certain purchase
order at the time of invoice verification?
A: Yes.
Q: 8) Should down payments also be cleared?
A: Yes.
Q: 9) Which other messages do you want to send to your vendors or to people within your
organization with respect to the invoice receipt?
Explanation: For example, a payment advice note
A: Advance payment cash voucher.
Q: 10) Is a goods receipt always necessary for invoice verification purposes? If so, do you
allow reversal of the goods issue after the invoice has been posted? has been entered?
A: Yes. Only in exceptional cases the reversal should be allowed.
Q: 11) Is the automatic account determination process only defined by Financial

Accounting? If not, who is responsible within Logistics?
A: Yes.
Q: 12) Do you wish to notify Purchasing if the invoice price varies from the purchase order
price?
Explanation: "Mail to Purchasing" possible after posting invoice.
A: Yes.
Q: 13) Specific to Brazil: Describe the Nota Fiscal process including special situations such
as future delivery, importation, returnable transport packing, and freight.
A: N.A.
Q: 14) Do you use tax jurisdiction codes? Specify the codes used.
Explanation: Only relevant to USA and Brazil.
A: N.A.
47
Q: 15) Do you receive invoices with a large volume of data for which no checking is
necessary?
Explanation: Check whether it is possible to switch to ERS.
A: No.
Q: 16) Do you receive invoices relating to transactions that are not administered in the
system?
A: No.
1.1.6.5. Invoice Overview
Q: 1) Who is responsible for processing incorrect invoices in your firm?
A: Stores & Finance.
Q: 2) Describe the information flow between Purchasing, Logistics and Invoice Verification
in the case of errors.
Explanation: Organizational and system-supported communication (e.g. by mail from within

the application). There is no standard SAP solution for system-supported communication.
Instead, a customer-specific solution has to be prepared (e.g. workflow, message technique).
A: In case of errors, the information should be communicated via telephone, internal mail.
1.1.6.6. Invoice Release
Questions:
Q: 1) Which invoice blocking reasons will you use?
A: [X] Price variance

[X] Quantity variance
[ ] Stochastical block
[X] Quality reasons
Q: 2) Do you want to block invoices for late delivery of goods? If so, block the invoice when
the number of days late times the value of the late items is greater than X. Specify a value for
X.
A: Yes.KRPL to provide the value
Q: 3) Invoices can be entered in the system but may be automatically blocked due to
variances. Specify the maximum quantity and price variances that are allowed.
Explanation: When using purchase order price unit of measure, how big is the quantity
difference between GR quantity and IV quantity (in purchase order price unit of measue) you
tolerate without warning or error messages?
48
A: For Quantity - 2% (+/-) tolerance allowed.
Q: 4) Do you want to block invoice items whose value exceeds a certain amount? What is
the threshold value for invoice items 1) with reference to a purchase order 2) without
reference to a purchase order?
A: Yes. With reference to a purchase order.
KRPL has to provide value
Q: 5) Who is to be notified in the event of variances between the purchase order price and
the invoice price? How is this person to be notified?
A: Vendor, Broker. It is notified through phone, fax, mail.
Q: 6) Do you wish to block invoices randomly (stochastically) or only if a certain value is

exceeded?
A: Only if certain values exceeded.
KRPL has to provide value
Q: 7) Who checks and processes invoices that have been blocked for payment?
le manager)
Explanation: E.g. buyer, accounts payable accountant.
A: Concerned authority in Accounts department.
1.2. Procurement via Subcontracting

1.2.1. Purchasing

scenario.)
A: Yes. Manually.
49
release.
A: No.

A: N.A.
A: N.A.
A: N.A.
A: N.A.
and your subsystem?
A: N.A.
A: N.A.
50
desired send time.
A: N.A.
A: N.A.
A: Yes.
A: N.A.
1.2.2. Transportation
A: Yes.
A: Yes

A: - Vans
- Trucks
- Container trucks
- Tanker lorries
- Bullock cart
- Tri-Cycles
- Tempos
51

- Type of material.
- Freight Charges.
through
customers.
are
road, rail, sea?
A: Yes.

A: Yes.

52

4. Mode of delivery
A: Both.
A: Yes.
A: No.
A: Yes.

2. Customers order

external carrier?
53
one delivery.
A: Yes.
A: 1. Commodity.
2. Consignee.
3. Quantity.
4. Value.
5. Tax details.
6. Vehicle number.
7. Destination.
A: Both.
A: Yes.
as below.


Rules:
54
VehicleNo
Place of delivery
Date of delivery
1.2.3. Provision of Components

1.2.3.1. Goods Issue Processing
Q: 1) How do you record materials ordered for specific work orders?
A: N.A.
Q: 2) How will the consumption of these parts be entered and who will post the return in the
system?
A: At the time of receipt of finished materials from the sub contractor.

The stores person returns it into the system.
Q: 3) How do you record which materials were received specifically for a work order?
A: N.A.
Q: 4) How much time elapses between the actual goods issue and its posting in the
system?
Explanation: Info on process steps.
A: One day. Mostly, the material will be sent to the subcontractor directly from the vendor for
processing.
Q: 5) Is the posting made online or in batch mode?
Explanation: Steps in system
A: Online.
Q: 6) Are deliveries posted individually or for each group of goods issues?
A: Individually.
Q: 7) Which documents are generated in conjunction with this posting and what information
do they contain?
Explanation: 1-step goods issue in which the GR at the receiving site is posted
simultaneously to the GI at the DC. simultaneously to the GI at the DC.
55
A: A Goods Issue slip at the issuing end and simultaneously the stock will be updated at the
receiving end as well as the at issuing end.
Q: 8) Do you want to send the pallet identification information to your customer?
A: Not applicable
1.2.3.2. Delivery Processing
Q: 1) List all documents required to complete the delivery process (e.g. picking list, packing
list or bill of loading) and what information they contain.
Explanation: Note: For each document, collect sample printouts and decide which
information (data fields) the documents must contain.
A: After sale order processing the folowing documents are required to complete the
delivery :
- Delivery Note to shipping point which contains :-
- Delivery note number & date
- Customer name
- Place
- Product
- Quantity
- Vehicle Number
- Driver's name
- If more than one party, product summary, weight, etc.,
- Delivery challan
- Delivery challan number & date
- Customer name and header details
- Product name and quantity
- Vehicle number
- Company name and address, if necessary
- Person name who loaded, etc.,
Q: 2) If you have multiple plants, how do you determine what plant a product is delivered
from?
A: Delivery plant is determined based on the geographical location of the customer , type of
sales and avalilability of stock.
Q: 3) How do you determine multiple shipping points?
Explanation: Note: In R/3, shipping point determination depends on the following objects: -
Plant - Shipping condition (goods recipient) and - Loading group (material master). Decide
which shipping point you want the system to offer as a default, or the alternative shipping
points you would like to overwrite the default with.
A: Shipping points are determined based on the plant.

Default shipping point is the shipping point located at the point of sales (Sales Office).
Alternate shipping points should overwrite default shiiping point.
Q: 4) Do you redetermine routes at the time of delivery?
56
Explanation: Note: The route with transit time and transit lead time is used for delivery
scheduling, for example. In the delivery, an alternative route for the sales order or scheduling
agreement can be selected depending on different weight groups.
A: Yes.
Q: 5) Do you compute different lead times (for example, picking, packing, loading or
replenishment lead times)? Please describe in detail.
Explanation: Note: Describe the lead times you use for delivery scheduling, and the objects
(customer, route, material, shipping conditions) that these lead times depend on.
A: Yes.
Lead time used for delivery schedling are,
- Material : Lead time for production and packing.
- Customer : Lead time to reach the customer destination.
Q: 6) Do you have a standard lead time in days for the customer#s requested delivery
date?
A: Yes.
Q: 7) If you use batches, when do you determine them?
A: We require batches at packing stage
Q: 8) How do you determine serial numbers in deliveries, if used?
Explanation: Note: Serial numbers can be assigned at various points such as at the goods
receipt posting (from the production line) or later when the delivery is created.
A: No serial numbers in deliveries are determined
Q: 9) Do you add additional prices at the delivery time (for example, packing or postage
costs)?
Explanation: Note: It is possible to invoice logisitics costs depending on objects in the

delivery note, such as shipping conditions, packaging, or route. These price elements are
then copied into the invoice. Decide whether and how these logistics costs are determined
automatically.
A: No.
Questions:
Q: 10) How do you create deliveries?
A: [X] Online
[X] Background processing
[X] Display both
57
Q: 11) Do you ever group deliveries together for different reason (e.g. freight lists, loading
list, collective picking)?
A: Yes.
Q: 12) Do you use labels with bar codes? How?
Explanation: Note: With multilevel packing, you can print out labels for different packaging
levels. Examples of packaging levels are boxes, wire baskets, and pallets. Decide on the
information and format for the labels. Note the special printer requirements.
A: No. It will be implemented in near future.
Q: 13) Do you allow items that weren't in the sales order to be added to a delivery?
A: No.
Q: 15) What information do you consider necessary for a delivery and would like to appear
on an incompletion log if missing?
Explanation: Control Incompletion check
A: [X] Address
[X] Incoterms
[X] Terms of payment
[X] Material
[ ] Order quantity
[ ] Net price
[ ] Plant
[ ] Shipping point
[ ] Pricing date
[ ] Others
Q: 16) Do your customers accept partial deliveries in case of lack of availability and what
are the rules for creating them?
A: Yes. No special rules are followed.
Q: 17) Do you allow sales orders to be combined or split for delivery and what are the
rules?
Explanation: Note: The standard R/3 system always attempts to merge deliveries with certain
identical header data (such as identical partners, Incoterms, terms of payment, etc.). You can
program additional merging or splitting criteria into the copying control between delivery and
invoice.
A: Yes. No special rules.
Q: 18) Do you check the available stock of an item in the delivery?

58
Explanation: Note: When you check the availability, you should also decide what your ATP
quantity should be. For example, should it only include the physical stock quantity, or should it
also include goods receipts, production orders, and purchase orders?
A: Yes.
Q: 19) Do you track Over Delivery or Under Delivery tolerance percentages for your
customers?
A: Yes, for loose oil sales in tankers.
Q: 20) What should happen if the delivery quantity differs from the order quantity?
A: [ ] Nothing
[X] Warning
[ ] Error message
[X] Various
Q: 21) What are the reasons you would ever block a sales document from delivery?
A: 1. Exceeding the credit limit.

2. Nonfulfilment of conditions.
3. For effective risk management.
Q: 22) How do you allocate merchandise which is in short supply (delivery priorities)?
A: 1. Based on the customer dealings.

2. Payment transactions
3. Developing areas
1.2.4. Goods Receipt

1.2.4.1. Subsequent Adjustment of Components
Q: 1) How do you make adjustments for over-/underconsumption of components by the

subcontractor (vendor)?
A: Through subsequent adjustment.


A: N.A.
59
A: N.A.
A: N.A.
A: N.A.
and your subsystem?
A: N.A.
A: N.A.
desired send time.
A: N.A.
A: N.A.

60
A: Yes.
A: N.A.
1.3. Procurement on a Consignment Basis

1.3.1. Purchasing

scenario.)
A: Yes. Manually.
release.
A: No.

A: N.A.
A: N.A.
61
A: N.A.
A: N.A.
and your subsystem?
A: N.A.
A: N.A.
desired send time.
A: N.A.
A: N.A.
A: Yes.

62
A: N.A.
1.4. Internal Procurement

1.4.1. Purchasing

scenario.)
A: Yes. Manually.
release.
A: No.

A: N.A.
A: N.A.
63
A: N.A.
A: N.A.
and your subsystem?
A: N.A.
A: N.A.
desired send time.
A: N.A.
A: N.A.
A: Yes.
64
A: N.A.


A: N.A.
A: N.A.
A: N.A.
A: N.A.
and your subsystem?
A: N.A.
A: N.A.
65
desired send time.
A: N.A.
A: N.A.
A: Yes.
A: N.A.
1.5. Source Administration

1.5.1. RFQ/Quotation
1.5.1.1. Processing of Requests for Quotations
Q: 1) Do you generally request several vendors to submit prices, terms and conditions in
the form of a tender/bid/quotation?
A: Yes
Q: 2) Do you want to assign a collective number to the different quotations submitted by

several vendors?
Explanation: Use of collective number. Use of collective number.
A: Yes
Q: 3) Can an article be procured from several vendors? If so, is this the rule or an
exception? (Or specify percentage.)
A: Yes. This is the rule.
Q: 4) Do you carry out requirements planning for structured articles (e.g. prepack, display)?
A: Yes
66
Q: 5) How do you determine the requirement quantities at header level in the case of
structured articles?
A: Through Bill of material.
Q: 6) Do you exclude articles from requirements planning? If so, which (e.g. import,
seasonal, promotion, etc.)?
A: Yes.
1.5.1.2. Vendor Quotation Processing
Q: 1) Do you wish to have the system automatically analyze/evaluate quotations submitted

by vendors?
A: Yes.
Questions:
Q: 2) How do you receive the quotations?
A: [ ] Other, please describe

[X] By telephone
[X] By e-mail
[X] By fax
[ ] By EDI
[X] By post (in written form)
Q: 3) Are the quotations submitted by vendors to be automatically compared by the

system?
Explanation: Use of price comparison list! Use of price comparison list!
A: Yes
1.5.2. Outline Purchase Agreements

1.5.2.1. Contract Processing
Q: 1) Will you use contracts in R/3? If so, what will you use contracts for (e.g. stock
materials, consumable materials, external services)?
A: Yes.
For stock materials, consumable materials, external services.
Q: 2) Which types of contract do you need (e.g. value contracts, quantity contracts)?
A: Value contract & Quantity contract.
Q: 3) Are the contracts to be valid for: - more than one plant - more than one company
code?
67
A: It can be for a plant and also for more than one plant.
Q: 4) Do you also allow a consumption account in the case of contracts for stock materials?
A: Yes
1.5.2.2. Scheduling Agreement Processing
Q: 1) Will you use scheduling agreements to procure materials from external suppliers or
supplying plants? If so, which types of scheduling agreement will you use? Should these
scheduling agreements be maintained centrally?
Explanation: Will you maintain scheduling agreements in SAP with either an external vendor
or a plant supplying the materials? If yes, - what type of scheduling agreements are you
maintaining? (for example, standard, subcontracting, consignment, stock transfer. - will any of
these scheduling agreements reference a centrally maintained contract?
A: Yes.
Standard scheduling agreement.
The scheduling agreement is not maintained centrally.
The scheduling agreements is maintained in SAP with either an external vendor or a plant
supplying the materials.
Standard.
Q: 2) Do you want to reconcile the quantity requested and the quantity actually delivered
with your vendor (monitoring function)? If so, how are the lines of the scheduling agreement
delivery schedule generated: manually or via materials planning (MRP)? M
A: Yes.
Manually.
Q: 3) Do you need release documents (e.g., call-offs) and master conditions to manage
your scheduling lines? If yes, are any of these JIT delivery schedules?
A: No.
release.
A: No.
Q: 5) Do you sometimes assign a consumption category to scheduling agreements for stock

materials?
A: No.
68
1.6. Return Deliveries

1.6.1. Quality Notification
1.6.1.1. Creation of a Quality Notification
Q: 1) In your company, who is responsible for the receipt or creation of quality notifications?
Explanation: Call center organizational unit etc.?
A: Creation - Quality Controller

Receipt & processing - PM/GM/QC/MM
Q: 2) Do you want a simplified view of the structure and functions of a notification to

facilitate ease of use for occasional users?
Explanation: Create simplified notification type for transaction IQS21.
A: No.
Q: 3) Do you want to create notifications using copy models?
Explanation: Customizing: Define initial screens for notifications.
A: No.
Q: 4) How do you prioritize incoming notifications (complaints, queries and so on)?
Explanation: For example: "Very high", "high" etc.
A: 1. Very High
2. High
Q: 5) Do you define specific periods of time for processing notifications?
Explanation: Processing period for specific notification priorities.
A: No.
Q: 6) List the business partners (internal and/or external) whose address information you
require when creating the notification. Add other business partners, if necessary.
Explanation: Partner definition.
A: Co-ordinator, Vendor
Q: 7) How do you describe the problem? Do you use a verbal description or standard
codes?
69
Explanation: Coding: Definiton of catalog profile
A: Verbal description & standard codes.
Q: 8) Do you want to attach electronic documents (for example, inspection reports) to the
notification?
Explanation: Linking of quality notifications to the Document Management System.
A: No.
Q: 9) Do you assign a responsible person to each task?
Explanation: Note: An incorrect assignment is usually the result of a problem with the
documentation.
A: Yes.
Q: 10) Do you have ad-hoc tasks that you always carry out for different notification types or
priorities? If so, describe these tasks.
Explanation: Definiton of response profiles.
A: No.
Q: 11) Do you want the person or coordinator responsible for a task to be notified
automatically by the system?
Explanation: User-based workflow definition or definition using HR reporting structure.
A: Definition using HR reporting structure.
Q: 12) Do you want newly created notifications to be subject to an additional approval

procedure?
Explanation: Set the "approval required" indicator for the required notification type (IMG
activity: OLQN_CL). An additional notification status "Submit for approval" will be created. be
created.
A: No.
Q: 13) How do you want to structure the layout of your notification with regard to the
problem description, execution, items, tasks, activities?
Explanation: Note: This applies to all notification types (Q1,Q2,Q3 etc.).
A: 1. Problem description
70
2. Execution
3. Items
4. Tasks
5. Activities
Q: 14) Do you record costs arising from complaints? Describe how you record these.
Explanation: Costs, for example, for wages, material, telephone costs, travel expenses etc.
A: No.
Q: 15) Do you want to create and activate the QM order, based on the notification? Where
are these costs to be settled?
A: N.A.
Q: 16) How many notifications do you receive each day or each year?
Explanation: Defining number ranges for notifications.
A: Ten/Week
Q: 17) Do you record the performed activities that solved the customer problem in a
standardized way (for example, using standardized codes) in order to evaluate possible
solutions for a problem?
Explanation: Coding of tasks, items and activities.
A: Yes.
Q: 18) How is a quality notification processed in your company? Describe the process for
external or internal notifications.
Explanation: Designing action box with sequential processing.
A: Purchase order assigning, Transfer posting to Blocked, Material for reprocess, Reject
Transfer posting to Unrestricted.
Q: 19) Do you allow your customers to create complaints in your system using the Internet?
A: No.
1.6.2. Outbound Shipments

A: Yes.
71
A: Yes

A: - Vans
- Trucks
- Container trucks
- Tanker lorries
- Bullock cart
- Tri-Cycles
- Tempos

- Type of material.
- Freight Charges.
through
customers.
are
road, rail, sea?
72
A: Yes.

A: Yes.

4. Mode of delivery
A: Both.
A: Yes.
A: No.
A: Yes.
73

2. Customers order

external carrier?
one delivery.
A: Yes.
A: 1. Commodity.
2. Consignee.
3. Quantity.
4. Value.
5. Tax details.
6. Vehicle number.
7. Destination.
A: Both.

74
A: Yes.
as below.

Rules:
VehicleNo.
Place of delivery.
Date of delivery.
Acknowledgement by the receiver.
1.6.3. Shipping
1.6.3.1. Packing Processing
Q: 1) Describe your packing process in detail.
A: Normaly no further packing after the pouches are packed. In some cases, the product to
be supplied to a customer, who is located a long distance place ( Chennai to Delhi ), further
packing is done to enable to avoid extra transpotation cost, loading and unloading expenses
and leakages & damages.
Eg. Material - Rsf 1 litre Box ( 10 pouches in one box )

In the above case two boxes are packed as one box.
Q: 2) Would you require a packing proposal in sales documents?
A: Yes.
Q: 3) Do you want to use multi-level packing? That is, do you combine materials in other
units?
Explanation: Control of functionality using relevant assignment of article group shipping

material in article master.
A: No
Q: 4) Are you currently using any external software for packing?
75
A: No.
Q: 5) Do you combine packed materials into other units (shipping units), for example,
several packages into one container?
A: Yes
Q: 6) What packing materials do you use?
A: Corrugated carton boxes
Q: 7) Do you need to check the maximum capacity limit of packing materials?
Explanation: Maintaining capacity limit for articles.
A: Yes
Q: 8) Do you need direct verification for information on the physical packaging transaction
on the packing station for the R/3 System?
A: Yes
A: Not applicable
system?
A: Immediately
A: Online.
A: Individually
76
do they contain?
A: Delivery Note from SD
A: Not applicable
2. Inventory Management, Warehouse Management

and Transportation
Q: 1) Who owns the inventory? To whom are the costs of managing the inventory allocated?
A: Plant.
Q: 2) At which level do you valuate material (for example, company level, plant level)?
A: Plant.
Q: 3) Where do you want to be able to analyze the inventory balance sheet?
A: Company code and Plant level.
Q: 4) How does material move between plants?
A: Stock transport orders.
Q: 5) Do you use pallet identification for production supply?
A: No
Q: 6) Do you use picking and packaging functions with scanners (radio frequency)?
A: No
Q: 7) Do you prepare raw materials for a production order on a scale and do you have to
ensure that exactly this material combination is used in the order?
A: No
77
2.1. Goods Movements

2.1.1. Inbound Shipments
A: Yes.
A: Yes

A: - Vans
- Trucks
- Container trucks
- Tanker lorries
- Bullock cart
- Tri-Cycles
- Tempos

- Type of material.
- Freight Charges.
through
customers.
are
78
road, rail, sea?
A: Yes.

A: Yes.

4. Mode of delivery
A: Both.
A: Yes.
79
A: No.
A: Yes.

2. Customers order

external carrier?
one delivery.
A: Yes.
A: 1. Commodity.
2. Consignee.
3. Quantity.
4. Value.
5. Tax details.
6. Vehicle number.
7. Destination.
80
2.1.2. Outbound Shipments

2.1.2.1. Shipment Cost Calculation and Settlement
A: Both.
A: Yes.
as below.


Rules:
VehicleNo
Place of delivery
Date of delivery
2.1.3. Goods Accepted

2.1.3.1. Putaway Processing
Q: 1) Are pallets managed in the system with a unique number?
A: No
Questions:
Q: 2) Are materials posted to quality inspection after goods receipt, or are they in
unrestricted-use stock?
A: [X] Posted to quality inspection

[ ] Are available
Comments: QI for specific materials only. others are available for use directly after
receipt.
81
Q: 3) Can goods be issued directly from the goods receipt area?
A: Yes
Q: 4) Do you post your materials to "blocked stock"?
A: Yes
Q: 5) Do you post your materials to return delivery stock?
A: No
Q: 6) Describe the individual steps from external goods receipt to final placement in storage
(putaway).
A: For Oil, Chemicals & Packing materials - Receive the truck, put the stock in quality
inspection,after QI the truck is weighed with the contents and unloaded in the respective tank
for unrestricted use.
For other items such as Electrical & Engineering spares - Receive the materials and place
them in unrestricted use stock.
Q: 7) Do you have capacity limits for your storage bins, for example, weight, volume...?
Explanation: Index for storage bin structure Index for storage bin structure
A: No
Q: 8) Is a transfer requirement to be generated automatically at the time of a goods receipt

with reference?
A: NA
Q: 9) For which goods movements are transfer orders to be created automatically?
A: NA
Q: 10) What kind of form (printout) do you need for stock putaways (GR slip, transfer order
form, sticker, etc.)?
A: N.A.
Q: 11) Is procured material pending inspection posted to stock or does it remain in the
goods receipt storage area? What happens with the samples: - Keep in GR area - post to
stock - move to inspection area?
82
Explanation: Will procured material pending inspection be placed into permanent storage or
remain in the goods receipt storage area? What happens with the sample: - Keep in GR area
- place into warehouse - move to inspection area?
A: All material that has to undergo QI is kept separately.

Samples are taken to QI lab and scrapped after testing.
Q: 12) Which parameters determine your putaway strategies?
Explanation: Storage type search
A: N.A.
Q: 13) Do you print the stock placement (putaway) document when the transfer order is
created?
A: No
Q: 14) Are transfer orders confirmed manually or automatically?
A: N.A.
Q: 15) Please list the storage types that will have placement confirmation.
A: N.A.
Q: 16) Does your legacy system automatically determine the storage bin in which to place
the materials? Is this done manually?
A: N.A.
Q: 17) Who is notified of a stock putaway? How is this person notified?
A: N.A.
Q: 18) Will you maintain placement strategies (for example, storage types, storage sections,
storage bins) for your stock materials?
A: NA
Q: 19) How many storage bins do you have per storage type?
A: N.A.
Q: 20) How many stock putaways (items) do you have per day?
A: N.A.
83
Q: 21) Do you receive consignment stock from vendors?
A: Yes
Q: 22) Do you receive articles that have batch or serial numbers from vendors?
A: No.
Q: 23) Do you create a pre-allocation of your materials within warehouse management?
A: No
Q: 24) Do you group together your pick list for multiple processing for a particular shipping
point, route, pick date, stock placement, stock removal?
A: NA
Q: 25) Do you receive materials with batch or serial numbers from vendors?
A: No.
2.1.3.2. Return Delivery
Q: 1) Will you be required to retain costs for material that is inspected as a result of a stock
purge?
A: No
Q: 2) Will you create action plans/tasks for this defective material?
A: Yes
Q: 3) Do you enter data (for example, defects, characteristic results, specific findings) on
the defective material found in the stockroom or on the shop floor?
A: Yes
Q: 4) Do you have to inspect/re-inspect defective material found in your stockroom or on the

production floor?
A: Yes
Q: 5) Which documentation should accompany the goods that are returned to the vendor?
A: Return delivery challan.
Q: 6) Describe the handling of inspection lots where the usage decision has determined that
they are to be rejected and returned to the vendor.
A: The lot will be kept separately and returned to the vendor with the return delivery challan
84
2.1.4. Stck Transfers / Trans. Pstngs

2.1.4.1. Two-Step Stock Transfer
Q: 1) Do you want to transport goods receipts to more than one physical storage facility?
A: Yes.
2.1.4.2. One-Step Stock Transfer
Q: 1) In the case of stock transfers, do you wish the material to be immediately available at
the receiving plant?
A: Yes
2.1.4.3. Difference Processing
Q: 1) Do you inform the vendor of differences in your favor arising at the time of goods
receipt?
A: Yes.
Q: 2) Is the vendor supplied with a special document confirming the merchandise received
(or signature on corrected delivery note)?
A: Yes.
Q: 3) How do you handle stock differences that are noticed either at the time of transfer
order confirmation or continuous inventory based on bin-to-bin transfer?
A: N.A.
2.1.5. Goods Issue

2.1.5.1. Stock Removal Processing
Q: 1) Do you maintain removal strategies (for example, storage types, storage sections,
storage bins)?
A: N.A.
Q: 2) Will you carry out multiple removals of stock from storage at one time?
A: No
Questions:
Q: 3) Which of these stock removal strategies are used for internal procurement?
A: [ ] Fixed bin
[ ] Large/small quantities
[ ] Random (manual)
[X] FIFO
[ ] User exit
[ ] Strict FIFO
[ ] Expiration date
[ ] Batch determination
85
Comments: Not Applicable
Q: 4) Do you currently create deliveries for internal procurement of materials from plant to
plant?
A: No
Q: 5) Which picking strategies do you use?
A: N.A.
Q: 6) Upon what does the your choice of strategy depend (only in the case of several
different strategies)?
A: NA
Q: 7) On which parameters does the storage bin search process depend when items are
removed from storage (e.g. article, type of movement, etc.)?
A: NA
Q: 8) Do you carry out complete pallet removals and subsequent return transfers? If so, to
which location is the merchandise returned?
Explanation: Withdrawal of whole pallet = requirement to remove all stock
A: NA
Q: 9) Which documents are generated, at which times, and with which information, when
stock is taken out of storage?
A: NA
Q: 10) Do you confirm the stock removal?
A: NA
Q: 11) Will you maintain picking strategies?
A: NA
system?
86
A: Immediately.
A: Online
A: Individually
do they contain?
A: Not in Practice at present
2.2. Physical Inventory & Cycle Counting

2.2.1. Physical Inventory
2.2.1.1. Specification of Cycle Counting Phys. Inv.
Q: 1) Which materials do you count in cycles?
A: All ABC material.
Q: 2) Describe the cycle counting intervals. Specify plant, material, and interval.
A: In Plant - 1000, All material classified as under

A - 12 times/year
B - 6 times/year
C - 3 times/year
Q: 3) How are the ABC indicators to be assigned? - based on material consumption/usage -

based on material requirements - manually - other, please describe.
A: Based on material consumption.
2.2.1.2. Cycle Counting Phys. Inv. Preparation
Q: 1) Do you block the relevant stock during the physical inventory count?
87
Explanation: Setting of flag when creating physical inventory Setting of flag when creating
physical inventory
A: Yes
Questions:
Q: 2) Do you conduct a physical inventory for:
A: [ ] Other
[X] Unrestricted-use material
[X] Stock in quality inspection
[X] Blocked stock
[X] Consignment stock at customer
[X] Vendor consignment stock
[X] Vendors' returnable packaging
[X] Empties
Q: 3) Which types of physical inventory do you wish to use to count the materials in your
warehouses/stores?
Explanation: Linkage via ALE may be necessary Linkage via ALE may be necessary
A: [X] Annual (periodic) inventory

[X] Continuous inventory
[X] Cycle counting inventory
[ ] Sample-based inventory
2.2.1.3. Sample Processing
Q: 1) For which assortment/material groups do you use the sample-based physical

inventory?
A: NA
Q: 2) At what level do you analyze the results of inventory sampling (merchandise category,
layout, etc.)
A: NA
Q: 3) Will you use random sample profiles when carrying out physical inventories of
materials?
A: NA
2.2.1.4. Printout of Physical Inventory Document
Q: 1) How are physical inventory documents to be printed out?
A: The physical inventory document should have the following details,
88
Plant,plant description, material, material description, date, stock type, location, UOM,
created by, physical inventory document number, status of the item / document, reference,
counted quantity.
Q: 2) Are bar codes to be printed out on the physical inventory document?
A: N.A.
2.2.1.5. Inventory Count
Q: 1) How do you carry out the physical inventory count (e.g. manually, using bar code
scanners)?
A: Manually.
2.2.1.6. Physical Inventory Analysis
Q: 1) Are physical inventory differences aggregated at material group level?
A: No.
Q: 2) Do you allow physical inventory tolerances? Specify these tolerances.
A: Yes. Tolerances will be specified at a later date in consultation with the Management
2.2.1.7. Post Inventory Differences
Q: 1) Who is responsible for posting physical inventory differences? Specify the persons
responsible and the maximum differences allowed.
A: Stores / Handling person
Electrical & Engeneering - Kannan

Oils & Refinery Chemical - Kumarasamy
Lab chemical - Ganesan
Packing material - Muneeswaran
89

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ValueSAP - Business Blueprint

ASAP Business Blueprint

Date of creation: 30/10/2003

Date of the last changes:

Report select options: [- Owner: MM Core Team

Include answered questions

_______________ ______________________ ______________________

Sign Off Date Signature Customer Signature Consulting

File location: [\\sap13\SAP13_C\Asap\Shared\C2C\QAdb\Reports\Business Blueprint_MM.doc]

1.2.2.1. Transportation Planning and Processing...................................................................50

A: Inputs to be given by the relevant departments, creation as well as maintenance to be

Q: 2) Is master data common across all departments (common master data)?

A: Not currently. To be made common across all departments.

A: Sales units (default) may be in Boxes, Tins, Kgs etc.

Q: 4) Which types of materials do you distinguish between (examples, accruals, quantity

A: Raw materials, Engineering goods, Finished goods, Consumables.

Q: 5) How do these types differ regarding business processes (stock management,

A: Presently additional statuses are not maintained.

Q: 13) Do you record information on competitor products (sales support)?

A: Yes. Based on duties and taxes paid on imports / domestic purchases.

A: Depending on the material type.

Q: 16) Do you maintain material-specific technical terms of delivery?

A: Yes, especially for oils, chemicals.

A: Currently not in practice, but to be used.

Q: 18) Do you require your vendors to provide quality certificates (certificates of

A: No. Not before delivery.

Explanation: Note: The block can be removed manually if required.

A: Currently not in practice.

Q: 22) How many different materials do you procure on a regular basis?

A: Approximately 100 different materials belonging to Raw material, Finished goods,

Q: 26) Will you need to run MRP ?

A: Will be handled by FI.

A: Not in practice currently, but to be followed.

A: No. Not required.

A: Raw Material, Finished Products, By-Products, Work-In-Progress, Packaging, Chemicals,

Q: 34) What types of texts do you maintain for your materials?

A: Purchase order text.

A: Inputs to be given by the relevant departments, creation as well as maintenance to be

Q: 36) Describe the change process for materials.

Explanation: Please note your requirements regarding release procedure/status, important

A: Inputs to be given by the relevant departments, creation as well as maintenance to be

Q: 37) Which cross-plant and plant-specific material statuses are necessary?

A: Standard SAP setting to be adopted.

A: Presently not required.

Q: 43) Are your materials taxable?

A: Yes. The component list is to be given by KRPL.

1.2. Service Master

1.3. Vendor Master Record

A: The vendors are classified as:

Q: 2) How many active vendors do you want to transfer to R/3?

Explanation: Ways of assigning numbers: 1. Automatically by the R/3 System 2. Manually be

A: [ ] Always automatically from the SAP System

A: [X] Order recipient

Q: 9) Do you employ different payment terms by facility?

Q: 12) Do you specify foreign-trade-specific information in your purchasing documents

Q: 16) How many vendors regularly supply you with goods?

A: More than 200 vendors.

Q: 17) Do you have vendors who are subject to withholding tax?

Explanation: Possibile to group with different account groups; Maintenance of fields in

A: Approximately 100 different materials belonging to Raw material, Finished goods,

2.1. Manufacturer Part Number

Q: 7) Does the vendor's price include value-added tax?

Q: 8) Is it possible to change pricing conditions after a PO has been created?

2.3. Source List

_ __________