SAP ECC 6.

00 June 2007 English

H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting
Business Process Procedure

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf

SAP Best Practices

H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting - BPP

Germany

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Copyright
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Contents
1 Purpose...............................................................................................................................................6 2 Prerequisites........................................................................................................................................8 2.1 Organizational and Master Data....................................................................................................8 2.2 Installing Final Step.......................................................................................................................9 2.3 Uploading the User Role...............................................................................................................9 3 Business Process Procedure.............................................................................................................10 3.1 Creating Product Cost Collector..................................................................................................10 3.2 Creating of Preliminary Cost Estimate for Product Cost Collectors.............................................11 3.3 Creating Planned Independent Requirements.............................................................................11 3.4 Material Requirements Processing at Plant Level.......................................................................13 3.5 Evaluation of the Stock/Requirements List..................................................................................14 3.6 Creating Subcontracting Purchase Order for Subcontractor.......................................................15 Material Requirement Planning at MRP Area Level.........................................................................17 3.7 Evaluating the Stock/Requirements List for material H05-1110 at MRP Area Level...................18 3.8 Evaluating the Stock/Requirements List for material H05-1120 at MRP Area Level...................19 Creating Purchase Order for Third-party order vendor.....................................................................20 3.9 Posting a Goods Receipt.............................................................................................................21 3.10 Creating Stock by Backflushing from Production.......................................................................22 3.11 Generating the Delivery of Material Provided ...........................................................................23 3.12 Posting a Goods Receipt for the Subcontracted Material..........................................................24 3.13 Displaying the Material Document.............................................................................................25 3.14 Displaying the Subcontracting Costs in Cost Center Accounting (Optional)..............................25 3.15 Creating Stock by Backflushing from Production.......................................................................26 3.16 Backflushing in Production........................................................................................................27 3.17 Changing Scheduling Agreement..............................................................................................28 3.18 Displaying Scheduling Agreement.............................................................................................30 3.19 Generating Delivery...................................................................................................................30 3.20 Displaying Delivery with Shipping Notification...........................................................................31 3.21 Processing and Issuing Billing Due List.....................................................................................32 3.22 Overhead Calculation................................................................................................................33 3.23 Running Variance Calculation...................................................................................................35 3.24 Running Settlement...................................................................................................................36 3.25 Displaying Report for Product Cost Collector............................................................................37

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H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting 1 Purpose
The scenario H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting, describes the business process collaboration between a high tech customer and a high tech supplier (manufacturer). The manufacturer produces components through repetitive manufacturing. A make-to-stock planning strategy is used. In the procurement process, the supplier (manufacturer) has two kinds of processes: third party procurement and subcontracting using planned independent requirements. You may refer the process flow of H05 as follows:

This business process procedure focuses on: Third-party procurement as provision of materials for the subcontractor

Subcontracting process with the planned independent requirements

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Material requirements planning at the plant level (MRP area: plant) and separate material requirements planning for subcontracting at the vendor's subcontractor level (MRP area: subcontractor) Repetitive manufacturing Material delivery to the customer with scheduling agreements

The connector manufacturer is called L2001. They manufactures their products in accordance with MTS and deliver them to the customer in accordance with the forecast delivery schedule from the customer (C8000). The delivery is made free of charge to the customer's plant. The assemblies, modules, or components required from other vendors are ordered and planned by the manufacturer and delivered to him for final assembly (modular outsourcing). At the manufactures plant, planned independent requirements for the material Connector are created for a particular point in time or over a particular period of time in accordance with the perspective demand. A MRP run is first carried out at the plant level for the final assembled material H05-1000. The MRP run at the plant level thus generates: Planned orders for connector (material H05-1000) are created. Planned order for the dependent requirement materials Panel Board (H05-1100) and Screw (H05-1200) are created. The material H05-1100 is for subcontracting order. The material H05-1200 is for in-house production.

An MRP run is next carried out at the MRP area level (H0500) for the components of assembly H051100 that are manufactured by subcontractor V0500. The MRP run at the MRP area level thus generates: Purchase requisition for: Pin (material H05-1110) to third-party order vendor V0501. This material is delivered directly by third-party order vendor V0501 to subcontractor V0500. Planned order and material reservations at the plant level for: Outer cover (material H05-1120). Subcontractor V0500 is provided with this material by manufacturer.

The Pin H05-1110 is delivered directly by third-party order vendor V0501 to subcontractor V0500. When the goods are received for the purchasing order for the Pin, the quantity received is posted to the stock provided to the subcontractor. A delivery is generated by manufacturer for a further material (H05-1120), which is delivered to subcontractor V0500 as material provided. The goods are posted to the stock provided to subcontractor when the goods issue is posted. After the assemble at the subcontractor, the subcontracted materials (panel board) are then returned to the manufacturer. When the goods receipt is posted, the provided materials are withdrawn from the stock provided to subcontractor. The subcontracted materials and further components are now processed further in production. The product Connector is then produced in final assembly. When the connector is backflushed in repetitive manufacturing (final assembly), the material is posted to the make-to-stock stock. Finally, a delivery of the connector is generated. When the delivery is created, a shipping advice note is sent to the forwarding agent. The shipping notification is sent to the customer/dealer after the goods issue has been posted. When the customer/dealer receives the goods, a goods receipt is posted with reference to the shipping notification. The manufacturer creates an invoice for the customer/dealer. The customer carries out invoice verification after receives the invoice.

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2 Prerequisites
2.1 Organizational and Master Data
The following organizational and master data is required in the scenario: Field name Controlling area Company code Plant Shipping point Sales organization Distribution channel Division Sales area Sales office Number which the customer has assigned to the vendor Sold-to party Bill-to party Payer Ship-to party Employee responsible Unloading point Receiving point MRP area Planned Independent Requirement Scheduling agreement number & customer material number 35000008 H05-1000 V0500 Manufacturer BP01 BP01 BP01 BP01 BP01 01 01 BP01 BP01 L2001 V0501 V0501 V0501 V0501 5 C8000 V0500 Customer Vendor Subcontractor

The diagram below outlines the material BOM structure in this scenario:

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2.2 Installing Final Step

Before you can begin performing the steps described in the Business Process Procedure, the installation of the following building block must have been completed: Building Block Final Steps Description Maintaining Material Posting Period, Costing Run, Initial Stock Posting, etc.

2.3 Uploading the User Role

Use
Before you can begin performing the steps described in the Business Process Procedure, you need to upload the user role for this scenario and assign it to your user. A user role enables you to comfortably access all transactions required for the business application testing. You have to install a user role for each scenario. The following role is available: Technical name /SMB62/H05_01U Description MTS with REM File name for upload _SMB62_H05_01U.SAP

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Procedure
For more information about uploading the user role to the system and working with roles, see to the Essential Information building block.

3 Business Process Procedure

3.1 Creating Product Cost Collector
Use
The product cost collector is a CO order that is not limited in lifespan. There is a logistic order to record quantities and a CO order to record values. The CO order is actually the product cost collector.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Creating Product Cost Collector Logistics Production Repetitive Manufacturing Master Data Product Cost Collector Process Product Cost Collector KKF6N Description User action and values H05-1000 BP01 Comment

Transaction code Field name Material Plant

2. On the Display Product Cost Collector screen, make the following entries:

3. Choose Create Product Cost Collector. 4. On the Create Product Cost Collector dialog box, make the following entries: Field name Material Order Type Controlling level for material Production Version Characteristics for production process Planning Plant Production Version 6. Choose Yes. BP01 0001 Select Description User action and values H05-1000 YREM Comment

5. Choose Confirm and Save. Confirm the dialog box concerning the preliminary cost estimate.

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7. Enter through dialog box. 8. The preliminary cost estimate is displayed. Analyze the costs. 9. Repeat step 1-8 for material H05-1120 and H05-1200 and choose Exit to return to the SAP Easy Access.

Result
A product cost collector has been created

3.2 Creating of Preliminary Cost Estimate for Product Cost Collectors

Use
The purpose of this activity is to create the preliminary cost estimate for the product cost collectors.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Creating of Preliminary Cost Estimate for Product Cost Collectors Accounting Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Planning Preliminary Costing for Product Cost Collectors MF30

Transaction code

2. On the Creation of Preliminary Cost Estimate for Product Cost Collectors screen, make the following entries: Field name Costing Date Plant Material 3. Choose Execute. 4. Choose Exit to return to the SAP Easy Access screen. Description User action and values (current date) BP01 H05-1000 Comment

Result
The preliminary cost estimate for product cost collectors has been created

3.3 Creating Planned Independent Requirements

Use
The purpose of this activity is to create the planned independent requirement in the forecast delivery schedule accordingly.

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Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name H05 BPP - MTS with REM Creating Planned Independent Requirements Logistics Production Production Planning Demand Management Planned Independent Requirements Create MD61 Description Planned independent requirements for Material Selected()) H05-1000 Plant Planning horizon From To Planning period 3. Confirm your entries with Enter. 4. The Plnd ind. Reqmts Create: Planning Table screen displays the table for creating planned quantity. Then, you can determine the quantity of planned independent requirements for the next three or six months and press Save. Make the following entries: Field name Panned quantity Panned quantity Panned quantity Description User action and values 100 150 200 Comment Choose 10 days later from the current date. Choose 20 days later from the current date. Choose 30 days later from the current date. (from the current date) (seven months later from the current date) D Day format BP01 User action and values Comment

2. On the Create Planned Independent Requirements: Initial Screen, make the following entries:

5. Message Requirement saved is displayed. 6. Choose Exit to return to the SAP Easy Access screen.

Result
You have created planned independent requirements.

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3.4 Material Requirements Processing at Plant Level

Use
The finished product H05-1000 Connector and the two assemblies H05-1100 Panel board, and H051200 Screw are planned at plant level. A requirement now exists for material H05-1000 in plant BP01. Requirement planning is carried out for MRP area BP01 (MRP area at plant level). Requirements planning results in the planned order for the subcontracted material H05-1100. The subordinate components of H05-1100 are planned later in a subsequent MRP area planning run. For in-house production of the display, planned orders are generated by the MRP run for material H051200.

Prerequisites
The planned independent requirements have been received successfully.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Material MRP area Plant Scope of planning Product group MRP control parameters Processing key Create purchase req. Delivery schedules Create MRP list NETCH 2 Net change for total horizon Purchase requisitions in opening period Schedule lines MRP list H05 BPP - MTS with REM Material Requirements Processing at Plant Level Logistics Production MRP Planning Single-Item, Multi-Level MD02 Description User action and values H05-1000 BP01 BP01 Comment

2. On the Single-Item, Multi-Level screen, make the following entries:

3 1

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Planning mode

Scheduling

Process control parameters Also plan unchanged components Display results before they are saved Display material list Simulation mode 3. Confirm your entries with Enter. 4. Confirm system information with Enter. 5. Choose Exit to return to the SAP Easy Access screen. Deselect

Deselect

Deselect Deselect

Result
MRP planning has been executed and the production plan or procurement proposal for components created.

3.5 Evaluation of the Stock/Requirements List

Use
The current stock/requirements list is evaluated for material H05-1000 (MRP area BP01). This purpose of this activity is to check the MRP planning results. The MRP planner can evaluate the stock/requirement list, carry out a feasibility analysis and make any possible improvements.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code H05 BPP - MTS with REM Evaluation of the Stock/Requirements List Logistics Production MRP Evaluations Stock/Requirements List MD04

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2. On the Stock/Requirements List: Initial Screen, make the following entries in the Individual access view: Field name Material MRP area Plant 3. Confirm your entries with Enter. 4. The quantity change for the scheduled material should be visible in the Rec./reqd. qty field. 5. This list shows the requirements from the planned independent requirement; the procurement elements are the planned orders for final assembly and the MRP element is the purchasing order stock. This means that this customer stock can only be delivered to customers. 6. Display the current Stock/Requirements List again for materials H05-1100 and H05-1200. To do so, make the following entries: Field name Material MRP area Plant Description User Action and Values H05-1100 BP01 BP01 Comment Enter H05-1200 separately. Description User action and values H05-1000 BP01 BP01 Comment

The BOM explosion during the MRP run has generated dependent requirements for the components. Dependent requirements have also been generated at plant level (MRP area BP01) for subcontracted material H05-1100 Panel boards. These dependent requirements are covered by means of a subcontracting purchasing order for subcontractor V0500. Planned orders are generated by the MRP run for in-house production of material H051200. 7. Choose Exit to return to the SAP Easy Access screen.

3.6 Creating Subcontracting Purchase Order for Subcontractor

Use
The purpose of this activity is to create a subcontracting purchase order for subcontractor V0500 for the (subcontracted) quantity they have to deliver. You can process this from the stock/requirements list.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Creating Subcontracting Purchase Order for Subcontractor Logistics Production MRP Evaluations Stock/Requirements List

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Transaction code

2. On the Stock/Requirements List: Initial Screen, make the following entries in the Individual access view: Field name Material MRP area Plant 3. Confirm your entries with Enter. 4. On the Stock/Requirements List: Initial Screen, click on the Details of element button for the PldOrd (planned order) and then the Additional Data for MRP Element box pops up. On the Additional Data for MRP Element screen, click on the -> Pur.req. to convert from the planned order into a purchase requisition. 5. On the Convert Planned Order into Purch. Req.: Details Purchase Requisition screen, confirm all the entries. 6. Post the purchase requisition. The following message appears: Planned order xxxx converted to purchase requisition 10000xxx 000xx Make a note of the purchase requisition number: PR document: ______________________________ 7. You are now backing in the Stock/Requirements List: Initial Screen. Choose Refresh (F6), the PldOrd in MRP element will be updated to PurRqs and the purchase requisition number/item number are displayed in the MRP element data. 8. Continuously, create a purchase order from the purchase requisition. To do so, click on the Details of element button for the PurRqs and then the Additional Data for MRP Element box pops up. On the Additional Data for MRP Element screen, choose -> Purchase Order to convert from the purchase requisition to a purchase order. 9. On the Create Purchase Order screen, create a purchase order in reference to the purchase requisition. To do so, select the purchase requisition created in the previous step from the list of open requisitions in the Document overview, and move it to the shopping cart ( drop. Then, confirm all the entries and save them. ) with drag and Description User action and values H05-1100 BP01 BP01 Comment

10. Post the purchase order. The following message appears: Standard PO created under the number 450000xxxx. Make a note of the purchase order number: PO document: ______________________________ 11. You are now backing in the Stock/Requirements List: Initial Screen. When you press the Refresh (F6), the PurRqs in MRP element will be converted to PO item and the purchase order number/item number are displayed in the MRP element data. 12. Choose Exit to return to the SAP Easy Access screen.

Result
Subcontracting purchase order has been created for the subcontractor.

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Material Requirement Planning at MRP Area Level

As of Release 4.5, material requirements planning can be carried out at MRP area level. The MRP area is an organizational unit for which requirements planning can be carried out separately. The introduction of MRP areas enhances transparency within a plant and provides a greater degree of differentiation in material requirements planning. When requirements are planned at plant level, the various requirements are grouped in the planning run and procurement elements are created for them without pegging. MRP areas, for example, allow the provision of components for the subcontractor vendors to be planned separately (not anonymously) from other requirements.

Use
Requirements planning for the components for subcontracted material H05-1100 must be carried out separately. This means that components H05-1110 Pin and H05-1120 Outer Cover are planned in MRP area H0500 and not in MRP area BP01 (plant level).

Prerequisites
The MRP areas are defined and the components extended to the MRP area.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Scope of planning Plant MRP control parameters Processing key Create purchase req. Schedule lines Create MRP list Planning mode Scheduling NETCH 2 3 1 3 1 Purchase requisitions in opening period Schedule lines MRP list Delete and recreate planning data Basic dates will be H05 BPP - MTS with REM Material Requirement Planning at MRP Area Level Logistics Production - Process MRP Planning Total Planning Online MD01 Description User Action and Values L02 (for Subcontracting V0500) Blank Comment

2. On the MRP Run screen, make the following entries:

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Field name

Parallel processing Planning date 3. Choose Enter to confirm your entries.

Select Current date

The scope of planning for the MRP run can be defined in Customizing. Here, the scope of planning is calculated on the basis of the MRP areas, for example. 4. Confirm system information with Enter. 5. Choose Exit to return to the SAP Easy Access screen.

3.7 Evaluating the Stock/Requirements List for material H05-1110 at MRP Area Level
Use
The current stock/requirements list is evaluated for (third-party order) material H05-1110 (MRP area H0500).

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Material MRP area Plant 3. Choose Enter to confirm your entries. 4. This list shows the subcontracting requirements (MRP element SubReq) for material H05-1100. H05 BPP - MTS with REM Evaluating the Stock/Requirements List for material H05-1110 at MRP Area L Logistics Production MRP Evaluations Stock/Requirements List MD04 User Action and Values H05-1110 H0500 BP01 Comment

2. On the Stock/Requirements List: Initial Screen, make the following entries: Description

This material is delivered directly by vendor V0501 to subcontractor V0500. 5. Choose Exit to return to the SAP Easy Access screen.

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3.8 Evaluating the Stock/Requirements List for material H05-1120 at MRP Area Level
Use
Material H05-1120 is provided to subcontractor V0500. The MRP run generates stock transfer reservations for this purpose. In this activity, the MRP planner checks the stock/requirement list.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Material MRP area Plant 3. Choose Enter to confirm your entries. 4. This list shows the subcontracting requirements (MRP element SubReq) for the (assembly) material H05-1100. You can also see the stock transfer reservations generated by the MRP run for (component) material H05-1120 (MRP element TrnRes). 5. Go back to the Stock/Requirements List: Initial Screen, make the following entries: Field name Material MRP area Plant 6. Confirm your entries. Description User action and values H05-1120 BP01 BP01 Comment H05 BPP - MTS with REM Evaluating the Stock/Requirements List for material H05-1120 at MRP Area L Logistics Production MRP Evaluations Stock/Requirements List MD04 User action and values H05-1120 H0500 BP01 Comment

2. On the Stock/Requirements List: Initial Screen, make the following entries: Description

To enable the requirement of material provided for the subcontractor V0500 with material H05-1120 to be passed on, material reservations (MR-Res) are now made at the plant level (MRP area BP01) on the basis of the stock transfer reservations. Run schedule quantities (planned orders) are generated at plant level for these material reservations. 7. Choose Exit to return to the SAP Easy Access screen.

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Creating Purchase Order for Third-party order vendor

Use
The purpose of this activity is to create a purchase order for third-party order vendor V0501 for the materials which are directly delivered to the subcontractor V0500. You can process this from the stock/requirements list.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code H05 BPP - MTS with REM Creating Purchase Order for Thirdparty order vendor Logistics Production MRP Evaluations Stock/Requirements List MD04

2. On the Stock/Requirements List: Initial Screen, make the following entries in the Individual access view: Field name Material MRP area Plant 3. Confirm your entries with Enter. 4. On the Stock/Requirements List: Initial Screen, the purchase requisition, which has already been converted from the planned order is displayed. Click on the Details of element button for the PurRqs and then the Additional Data for MRP Element box pops up. On the Additional Data for MRP Element screen, choose -> Purchase Order to convert from purchase requisition to a purchase order. 5. On the Create Purchase Order screen, create a purchase order in reference to the purchase requisition. To do so, select the purchase requisition created in the previous step from the list of open requisitions in the Document overview, and move it to the shopping cart ( drop. ) with drag and Description User action and values H05-1110 H0500 BP01 Comment

If the warning message 'MRP uses special procurement type L for material H05-1110 displays at the bottom of the screen, choose Enter to ignore it because this purchase order should be created for external procurement. 6. Confirm your entries with Enter. 7. Choose Save to post the purchase order. The following message appears: Standard PO created under the number 450000xxxx. Make a note of the material document number: PO document: ______________________________ 8. You are now back in the Stock/Requirements List screen. Choose Refresh (F6), the PurRqs in MRP element will be converted to PO item and the purchase order number/item number are displayed in the MRP element data.

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9. Choose Exit to return to the SAP Easy Access screen.

Result
Purchase order has been created for the third-party vendor.

3.9 Posting a Goods Receipt

Use
In this activity, you post a goods receipt for material H05-1110 after the third-party order vendor has delivered the material to the subcontractor.

Prerequisites
The third party purchasing scheduling agreement has been created successfully.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Goods receipt Purchase order H05 BPP - MTS with REM Posting a Goods Receipt Logistics Materials Management Purchasing Purchase Order Follow-On Functions Goods Receipt MIGO Description User action and values 45000000xx Comment Enter the number of the purchasing document created for H05-1110 in the document number field

2. Make the following entries in the Goods receipt Purchase order xxx <User > screen:

Document date Posting date 3. Choose Enter to confirm your entries.

Current date Current date

If the message Document 45000000xx does not contain any selectable items is displayed, no requirements elements exist in the near future. To post a goods receipt from the Goods receipt Purchase order screen, choose Settings Default values and Propose all items. 4. Select line 1 (with the material short text Pin). On the Where tab page in the lower screen area, you can check movement type 101 (GR to SC vendor) and plant BP01. 5. On the Quantity tab page at the bottom of the screen, enter 100 in the Qty in unit of entry field and confirm your entries. 6. In the lower screen area, set the Item OK indicator. 7. Post the goods receipt. The following message appears: Material document 500000xxxx posted.

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8. Choose Exit to return to the SAP Easy Access screen.

Result
Components ordered by third party order are received into the stock of subcontractor supplier.

3.10 Creating Stock by Backflushing from Production

Use
Stock is created in supplier plant BP01 for material H05-1120 by backflushing quantities from production. The purpose of this activity is to confirm the production for repetitive manufacturing and receive semifinished goods in stock.

Prerequisites
Repetitive manufacturing planning has been scheduled.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Backflush qty H05 BPP - MTS with REM Creating Stock by Backflushing from Production Logistics Production Repetitive Manufacturing Backflush REM Backflush MFBF User action and values 100 Comment The quantity can be taken from the selected planned order.

2. On the REM Backflush Transaction Variant: None screen, make the following entries: Description

Make-to stock Material Plant Planned order H05-1120 BP01 Choose with F4 Choose a planned order for material H051120 with F4. Choose the planned order with the earliest order start date with quantity 100.

3. Confirm your entries with Enter and then post the backflush. 4. The following message appears: GR with document 490000xxxx posted.

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5. Choose Exit to return to the SAP Easy Access screen by choosing Cancel.

Result
Repetitive manufacturing for semi-finished product is confirmed and the stock is increased.

3.11 Generating the Delivery of Material Provided

Use
A delivery is generated for material H05-1120. The manufacturer posts this material to the subcontractor as material provided.

Prerequisites
The subcontractor purchasing scheduling agreement and the delivery schedule have been created.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Vendor Components provided Assembly Plant 3. Choose Execute. 4. In the list displayed, select the row that contains material H05-1120. 5. Choose Post Goods Issue. 6. Enter storage location 0002 in the dialog box that then appears. Enter the quantity 100. Choose Enter to confirm your entries. The system outputs the messages on the created delivery/deliveries. A delivery is created for 100 PC. Go back to the SC Stock Monitoring by Vendor screen by confirming the message. 7. Display this delivery in the SC Stock Monitoring by Vendor screen by expanding the Deliveries with open GI entry in the row for material H05-1120, positioning cursor on a delivery, and choosing Display element. H05 BPP - MTS with REM Generating the Delivery of Material Provided Logistics Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor ME2O User action and values V0500 Blank Blank BP01 Comment

2. On the SC Stock Monitoring for Vendor screen, make the following entries: Description

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8. Go back to the SC Stock Monitoring by Vendor screen.

The goods issue pushbutton posts directly from the unrestricted stock to the SC stock. No open quantities are reduced in deliveries. 9. Choose Cancel to return to the SAP Easy Access screen by choosing Cancel.

Result
Delivery for components is created.

3.12 Posting a Goods Receipt for the Subcontracted Material

Use
The goods receipts are posted for material number H05-1100, which is delivered by subcontractor V0500. The purpose of this is activity is to post the goods receipt from the subcontractor. Components consumed in sub-contracting are posted with the planned quantity, subcontracted material is received into stock and the subcontracting service is charged according to subcontracting info record.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Goods receipt Purchase order Document date Posting date 3. Confirm your entries. H05 BPP - MTS with REM Posting a Goods Receipt for the Subcontracted Material Logistics Materials Management Purchasing Purchase Order Follow-On Functions Goods Receipt MIGO Description User action and values 45000000xx Comment Enter the value in the document number field in the purchasing document

2. On the Goods receipt Purchase order xxx <User > screen, make the following entries:

Current date Current date

If the message Document 45000000xx does not contain any selectable items is displayed, no requirements elements exist in the near future. To post a goods receipt from the Goods receipt Purchase order screen, choose Settings Default values and Suggest all items. Save your entries and confirm them once again.

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4. On the Quantity tab page at the bottom of the screen, enter 100 in the Qty in unit of entry field. 5. On the Where tab page at the bottom of the screen, enter 0002 in the Storage location field and confirm your entries. 6. In the lower screen area, set the Item OK indicator. 7. Post the goods receipt. The following message appears: Material document 500000xxxx posted. Make a note of the material document number: Material document: ______________________________ 8. Choose Exit to return to the SAP Easy Access screen.

3.13 Displaying the Material Document

Use
Now display the material document for the goods receipt for material H05-1100, which was delivered by the subcontractor.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code H05 BPP - MTS with REM Displaying the Material Document Logistics Materials Management Inventory Management Material Document Display MB03

2. On the Display Material Document: Initial Screen, complete the Material doc. field with the material document number that you made a note of in the Posting a Goods Receipt from a Subcontracted Material section. Enter the current calendar year in the Mat. doc. year field. 3. Choose Enter to confirm your entries. 4. The Display Material Document 500000xxxx: Overview screen now displays all the components of material H05-1100. This means that the goods receipt for material H05-1100 has been posted to the stock and that the two components (H05-1110 and H05-1120) have been posted goods issue from the stock of material provided to subcontractor. 5. Choose Exit to return to the SAP Easy Access screen.

3.14 Displaying the Subcontracting Costs in Cost Center Accounting (Optional)

Use
The purpose of this activity is to track the subcontracting costs for the semi-finished products H051100 in the production cost center.

Procedure
1. Access the transaction choosing one of the following navigation options:

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H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting - BPP H05 BPP - MTS with REM Displaying the Subcontracting Costs in Cost Center Accounting (Optional) Accounting Controlling Cost Center Accounting Information System Reports for Cost Center Accounting Plan/Actual Comparisons Cost Centers: Actual/Plan/Variance S_ALR_87013611 Description User action and values BP01 Current fiscal year Current period Current period 0 Blank 1301 Blank Blank Manufacturing Comment

SAP role menu SAP ECC menu

Transaction code Field name Controlling area Fiscal Year From period To period Plan version Cost center group Or value(s) Cost element group Or value(s) 3. Choose Execute.

2. On the Cost Centers: Actual/Plan/Variance: Selection screen, make the following entries:

4. Under the cost element 82392000 External activity for product, you can find the total costs for subcontracting in the current period. 5. Double-click on the actual costs to call up the Choose Report dialog box and then double-click the Cost Centers: Actual Line Items report. 6. In the line item report, the primary cost postings are listed for the subcontracting for semi-finished product H05-1100. Double-click to go to the relevant material document. 7. On the Display Material document 50000xxxx - <User> screen, choose the Doc. info tab page. Choose FI docmts. 8. One accounting (FI) document and one Cost accounting (CO) document are displayed here. The accounting document displays the account assignment for subcontracting component H05-1120 and the appropriate subcontracting. This example only shows cost accounting-relevant accounting assignment for subcontracting so that cost assignment is only carried out for the subcontracting at the cost center. This means that the CO document only contains the costs for subcontracting. 9. Choose Exit to return to the SAP Easy Access screen.

3.15 Creating Stock by Backflushing from Production

Use
Stock is created in plant BP01 for material H05-1200 by backflushing quantities from production. The purpose of this activity is to confirm the production for repetitive manufacturing and receive semifinished goods in stock.

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Prerequisites
Repetitive manufacturing planning has been scheduled.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Backflush qty Make-to stock Material Plant Selection data Planned order Choose with F4 Choose a planned order for material H05-1200 with F4. Choose the planned order with the earliest order start date with quantity 100. H05-1200 BP01 H05 BPP - MTS with REM Creating Stock by Backflushing from Production Logistics Production Repetitive Manufacturing Backflush REM Backflush MFBF User action and values 100 Comment The quantity can be taken from the selected planned order.

2. On the REM Backflush Transaction Variant: None screen, make the following entries: Description

3. Confirm your entries with Enter and then post the backflush. This step posts the goods receipt to the warehouse and backflushes component materials H05-1210 and H05-1220. 4. The following message appears: GR with document 490000xxxx posted. 5. Choose Exit to return to the SAP Easy Access screen by choosing Cancel.

Result
Repetitive manufacturing for semi-finished product is confirmed and the stock is increased.

3.16 Backflushing in Production

Use
Materials H05-1100 and H05-1200 are further processed in production to manufacture the finished product H05-1000 (which is delivered to the customer). In this activity, the finished product is received into stock and the components are consumed from stock.

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Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code H05 BPP - MTS with REM Backflushing in Production Logistics Production Repetitive Manufacturing Backflush REM Backflush MFBF

2. On the REM Backflush Transaction Variant: None screen, on the Make-to-stock tab page, make the following entries: Field name Backflush qty Description User action and values 100 Comment The quantity can be taken from the selected planned order.

Make-to stock Material Plant Prod. Version Planning plant To location Selection data Planned order Choose with F4 Choose a planned order for material H05-1000 with F4. Choose the planned order with the earliest order start date with quantity 100. H05-1000 BP01 0001 BP01 0010

3. Confirm your entries with Enter and then post the backflush. This step posts the goods receipt to the warehouse and backflushes component materials H05-1100 and H05-1200. 4. The following message appears: GR with document 490000xxxx posted. 5. Choose Exit to go back to the SAP Easy Access screen.

Result
The system posts the goods receipt of the finished material (assembly) and back flushes the components. At the same time, the system creates material documents and accounting documents.

3.17 Changing Scheduling Agreement

Use
The purpose of this activity is to change scheduling agreement for H05-1000 (finished product) according to the forecast delivery from the customer.

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Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code H05 BPP - MTS with REM Changing Scheduling Agreement Logistics Sales and Distribution Sales Scheduling Agreement Change VA32

2. Enter the value 35000008 in the Scheduling Agreement field in the Change Scheduling Agreement: Initial Screen and confirm your entries. 3. On the Change Sched. Agr. w/ Rel. 35000008: Overview screen, select the first item and choose Goto Item Shipping. Then, maintain the Shipping tab of the item with the following table: Field name Shipping point Description User action and values BP01 Comment

4. Go back to the Change Sched. Agr. w/ Rel. 35000008: Overview screen, select the first item and choose Fore. DlSch at the bottom of the screen. 5. Maintain the Forecast delivery schedule in accordance with the following table: Field name Dlv.schedule Dlv.sched.date Date Order quantity Description User Action and Values 1 Current date (one month from the current date) 50 According to the configuration of production version, the uppermost limited quantity is 1000. Comment

Date Order quantity

(two month from the current date) 50 According to the configuration of production version, the uppermost limited quantity is 1000.

Date Order quantity

(three month from the current date) 50 According to the configuration of production version, the uppermost limited quantity is 1000.

6. Confirm your entries and save them. 7. Choose Exit to return to the SAP Easy Access screen.

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Result
The scheduling agreement has been changed according to the customers forecast delivery schedule.

3.18 Displaying Scheduling Agreement

Use
A delivery to the customer (dealer) is generated for material H05-1000 (finished product). First, the date on which the customer called up the product is determined from the forecast delivery schedule.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code H05 BPP - MTS with REM Displaying Scheduling Agreement Logistics Sales and Distribution Sales Scheduling Agreement Display VA33

2. Enter the value 35000008 in the Scheduling Agreement field in the Display Scheduling Agreement: Initial Screen and confirm your entries. 3. On the Display Sched. Agr. w/ Rel. 35000008: Overview screen, select the first item and choose Fore. DlSch at the bottom of the screen. 4. Make a note of the date of the first schedule line (delivery date requested by customer): Date: ______________________________ 5. Choose Exit to return to the SAP Easy Access screen.

3.19 Generating Delivery

Use
The purpose of this activity is to generate delivery of finished product from the supplier to the customer.

Procedure
1. Access the activity using one of the following navigation options: SAP role menu SAP ECC menu Transaction code 2. Field name Shipping point H05 BPP - MTS with REM Generating Delivery Logistics Sales and Distribution Sales Scheduling Agreement Subsequent Functions Outbound Delivery VL01N User action and values BP01 Comment

Maintain the S.A. Std. Delivery Create : Overview screen in accordance with the following table: Description

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H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting - BPP Delivery date requested by customer 35000008 Use the date you made a note of above.

Selection date Order 3. 4. 5. 6. Choose Enter to confirm your entries.

On the Outbound delivery Create: Overview screen, select the row that contains material H051000 and choose the Picking tab page. Enter the quantity to be delivered in the Delivery quantity and Pick quantity fields, and confirm your entries. To post the goods issue, choose Post goods issue. The message S.A.Std. delivery 800000XX has been saved is then displayed. Make a note of the outbound delivery number. Outbound delivery: ______________________________

7.

Choose Exit to return to the SAP Easy Access screen.

3.20 Displaying Delivery with Shipping Notification

Use
A delivery to the customer (dealer) has been generated for the material H05-1000 (finished product). You want to check the delivery to determine whether the forwarding agent has been notified. The purpose if this activity is for the supplier planner to check the shipping notification created in the delivery.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Outbound delivery H05 BPP - MTS with REM Displaying Delivery with Shipping Notification Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display VL03N Description User action and values Outbound delivery number Comment The number is defaulted by the system. Otherwise, enter the delivery number noted above.

2. On the Display Outbound Delivery screen, make the following entries:

3. Choose Enter to confirm your entry. 4. On the Outbound delivery Display: Overview screen, select the row that contains the material H051000 and choose Extras Delivery output Header.

Outbound delivery: YAVA for shipping notification.

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5. Choose Exit to return to the SAP Easy Access screen.

3.21 Processing and Issuing Billing Due List

Use
In this activity, an invoice is created and sent to the head office of the customer (dealer).

The goods receipt is posted with reference to the shipping notification on the customer side. This step is usually carried out using the information from the shipping notification. This step is not implemented, because the focus of this process is on the manufacturer side.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Billing date from to Sold-to party Delivery-related H05 BPP - MTS with REM Processing and Issuing Billing Due List Logistics Sales and Distribution Billing Billing Document Process Billing Due List VF04 Description User action and values Current date One month from the current date C8000 Select Comment

2. On the Maintain Billing Due List screen, make the following entries:

3. Choose Billing document Display billing list (F8). 4. On the Maintain Billing Due List screen, the system displays the outbound deliveries waiting to be billed. The outbound delivery number in question is shown in the Document column. 5. Select the outbound delivery you created and confirm your entry, then choose Individual billing document. 6. The Invoice for SA (YAF2) Create: Overview of Billing Items screen is then displayed. 7. Save the invoice. 8. The message Document 9000xxxx has been saved is then displayed. Make a note of the invoice number. Invoice: ______________________________ 9. Choose Exit to return to the SAP Easy Access screen.

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10. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu Transaction code Field name Billing document H05 BPP - MTS with REM Displaying Billing Document Logistics Sales and Distribution Billing Billing Document Display VF03 Description User action and values Comment Invoice number Proposed by system. Otherwise, enter the invoice number you noted above.

11. On the Display Billing Document screen, enter the following data:

12. Choose Enter to confirm your entries. On the Invoice for SA 9000xxxx (YAF2) Display: Overview of Billing Items screen, the system displays all of the invoice items. 13. Choose Goto Header Output. 14. The output transferred is displayed for each invoice number. The green traffic light indicates that the data has been transferred successfully. 15. Choose Exit to return to the SAP Easy Access screen.

Result
The invoice to dealer has been posted and sent to customer. The customer receives the invoice and carries out invoice verification. This step is not described in this document.

3.22 Overhead Calculation

Use
Overhead calculation is performed to charge the product cost collector with costs that cannot be assigned to it directly, such as warehouse costs or procurement costs. Decisive for overhead calculation is the costing sheet transferred to the product cost collector from its order type.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Overhead Calculation Accounting Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Single Functions: Product Cost Collector Overhead Individual Processing CO42

Transaction code

2. If the Set Controlling Area dialog box appears, enter BP01 then choose Enter. 3. On the Actual Overhead Calculation: Product Cost Collector screen, make the following entries: Field name Description User action and values Comment

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H05: Make-to-Stock (MTS) Production with Repetitive Manufacturing, Third-Party Order Procurement and Subcontracting - BPP H05-1000 BP01 (current period) (current fiscal year) Select Select

Material Plant Period Fiscal Year Test Run Detail List 4. Choose Execute (F8). 5. Choose Next list Level. 6. Choose Exit. 7. Deselect the Test Run indicator. 8. Choose Execute (F8)

9. Choose Exit to return to the SAP Easy Access screen. 10. Check the overhead costs on the product cost collector. To do so, access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Analyzing Product Cost Collector Logistics Production Repetitive Manufacturing Evaluations CO Report Selection Detailed Reports For Product Cost Collectors KKBC_PKO

Transaction code

11. On the Analyze Product Cost Collector: Target/Actual - Comparison screen, make the following entries: Field name Material Plant Time frame Limited Period from Period to 12. Choose Execute (F8) 13. Choose Exit to return to the SAP Easy Access screen. Select (current period / fiscal year) (current period / fiscal year) Description User action and values H05-1000 BP01 Comment

Result
Overhead costs have now been transferred to the product cost collector as specified in the costing sheet.

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3.23 Running Variance Calculation

Use
Variance calculation compares the actual costs incurred for the production/process order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Running Variance Calculation Accounting Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Single Functions: Product Cost Collector Variances Individual Processing KKS6

Transaction code

2. In the Set Controlling Area dialog box, enter BP01 to Controlling Area and choose Enter. Unless the dialog box comes up, skip this step. 3. On the Variance Calculation: Initial Screen, make the following entries: Field name Material Plant Period Fiscal Year All target cost versions Selected target cost versions Test Run Detail List 4. Choose Execute (F8) 5. Check log. To do so, choose Goto Message log. 6. Choose Exit to return to the SAP Easy Access screen. Description User action and values H05-1000 BP01 (current period) (current fiscal year) Select Deselect Deselect Select Comment

Result
Variances have now been calculated for the product cost collector. They have been assigned to the various variance categories.

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3.24 Running Settlement

Use
The settlement activity transfers the costs assigned to the various variance categories during variance calculation from the product cost collector to CO-PA and the difference to FI (see description from period end closing H84). Furthermore, the WIP is transferred to Financial Accounting according to the customized posting rules. (You do not determine WIP in this process)

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Running Settlement Logistics Production Repetitive Manufacturing Environment Period-end Closing for Prod.Cost Collector Settlement Individual Processing KK87

Transaction code

2. On the Actual Settlement: Product Cost Collector screen, make the following entries: Field name Material Plant Settlement Period Fiscal Year Background processing Test Run Detailed List Check trans. data 3. Choose Execute (F8) 4. Choose Detail Lists. 5. Choose Exit to return to the SAP Easy Access screen. Description User action and values H05-1000 BP01 (current period) (current fiscal year) Deselect Deselect Select Deselect Comment

Result
The variances have now been settled to CO-PA. WIP has been posted to Financial Accounting.

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3.25 Displaying Report for Product Cost Collector

Use
The SAP ERP information system provides various reports to analyze the costs incurred on a product cost collector. Check the costs with which the PCC was charged as well as the costs with which it was credited.

Procedure
1. Access the transaction choosing one of the following navigation options: SAP role menu SAP ECC menu H05 BPP - MTS with REM Displaying Report for Product Cost Collector Logistics Production Repetitive Manufacturing Evaluations CO Report Selection Detailed Reports For Product Cost Collector KKBC_PKO

Transaction code

2. In the Set Controlling Area dialog box, enter BP01 to Controlling Area and choose Enter. Unless the dialog box comes up, skip this step. 3. On the Analyze Product Cost Collector: Target/Actual - Comparison screen, make the following entries: Field name Material Plant Time frame Limited Period from Period to 4. Choose Execute (F8). 5. Choose Exit to return to the SAP Easy Access screen. Select (current period / fiscal year) (current period / fiscal year) Description User action and values H05-1000 BP01 Comment

Result
The costs incurred on the product cost collector are displayed. You can also use transaction KE24 to show the line items in CO-PA, record type C for settlement variance, and record type F for billing and valuation. In a real business scenario, you would execute the period end closing for all product cost collectors collectively in a batch job.

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