LO925 Cross-Application Business Processes in SD and MM LO925

Release 46C 16.10.2001

LO925 Cross-Application Business Processes in SD and MM........................................................................................ 0-1 Copyright............................................................................................................................................................................... 0-2 Ventas y distribucin...................................................................................................................................................... 0-3 Gestin de materiales ...................................................................................................................................................... 0-4 Course Prerequisites........................................................................................................................................................ 0-5 Target Group .................................................................................................................................................................... 0-6 Course Overview.................................................................................................................................................................. 1-1 Course Goals .................................................................................................................................................................... 1-2 Course Objectives............................................................................................................................................................ 1-3 Table of contents ............................................................................................................................................................. 1-4 Course Overview Diagram ............................................................................................................................................ 1-5 Main Business Scenario ................................................................................................................................................. 1-6 Third-Party Order Processing........................................................................................................................................ 1-7 Cross-Company Sales ..................................................................................................................................................... 1-8 Stock Transfer.................................................................................................................................................................. 1-9 Subcontracting............................................................................................................................................................... 1-10 Third-Party Order Processing............................................................................................................................................ 2-1 Third-Party Order Processing:Unit Objectives .......................................................................................................... 2-2 Third-Party Order Processing: Overview Diagram................................................................................................... 2-3 Third-Party Order Processing: Business Scenario ..................................................................................................... 2-4 Process for Third-Party Order Processing................................................................................................................... 2-5 1st Process Step: Create Sales Order............................................................................................................................ 2-6 Creating the Purchase Requisition................................................................................................................................ 2-7 Structure of Order with Third-Party Item.................................................................................................................... 2-8 Determination of Item Category .................................................................................................................................. 2-9 Schedule Line Category for Third-Party Order Processing................................................................................... 2-10 Determination of the Schedule Line Category ......................................................................................................... 2-11 2nd Process Step: Create a Purchase Order .............................................................................................................. 2-12 3rd Process Step: Post Goods Receipt ....................................................................................................................... 2-13 4th Process Step: Post Invoice Receipt for Purchase Order................................................................................... 2-14 5th Process Step: Bill for Sales Order........................................................................................................................ 2-15 Billing Relevance and Billing Quantity..................................................................................................................... 2-16 Third-Party Order Processing: Checklist for Customizing .................................................................................... 2-17 Third-Party Order Processing:Unit Summary .......................................................................................................... 2-18 Third-Party Order Processing Exercises .................................................................................................................. 2-19 Third-Party Order Processing Solutions................................................................................................................... 2-31 Cross-Company Sales.......................................................................................................................................................... 3-1 Cross-Company Sales:Unit Objectives I ..................................................................................................................... 3-2 Cross-Company Sales:Unit Objectives II.................................................................................................................... 3-3 Cross-Company Sales: Overview Diagram................................................................................................................ 3-4 Cross-Company Sales: Business Scenario .................................................................................................................. 3-5 Process for Cross-Company Sales Activity ................................................................................................................ 3-6 1st Process Step: Create Sales Order............................................................................................................................ 3-7 Allowed Delivering Plants............................................................................................................................................. 3-8 Price for Intercompany Billing...................................................................................................................................... 3-9 2nd Process Step: Execute Shipping Activities........................................................................................................ 3-10 Worksteps for Shipping Processing........................................................................................................................... 3-11 3rd Process Step: Create Invoice for End Customer ............................................................................................... 3-12 Elements of Invoice to End Customer ....................................................................................................................... 3-13

4th Process Step: Create Internal Invoice.................................................................................................................. 3-14 Elements of Internal Invoice ...................................................................................................................................... 3-15 Customer Master Record for Payer............................................................................................................................ 3-16 Conditions in Internal Invoice..................................................................................................................................... 3-17 Calculation Procedure in Internal Invoice................................................................................................................. 3-18 5th Process Step: Post Invoice Receipt...................................................................................................................... 3-19 Automatic Posting to Vendor Account...................................................................................................................... 3-20 Cross-Company Sales:Checklist for Customizing................................................................................................... 3-21 Cross-Company Sales: Unit Summary I.................................................................................................................... 3-22 Cross-Company Sales: Unit Summary II .................................................................................................................. 3-23 Cross-Company Sales Exercises................................................................................................................................. 3-24 Cross-Company Sales Solutions................................................................................................................................. 3-36 Intra-company Stock Transfer ........................................................................................................................................... 4-1 Intra-company Stock Transfer: Unit Objectives ........................................................................................................ 4-2 Intercompany Stock Transfer: Overview Diagram.................................................................................................... 4-3 Intra-company Stock Transfer: Business Scenario .................................................................................................... 4-4 Stock Transfer Procedure ............................................................................................................................................... 4-5 Process for Intra-company Stock Transfer in One-Step Procedure ........................................................................ 4-6 Two-Step Stock Transfer ............................................................................................................................................... 4-7 One-Step Procedure ........................................................................................................................................................ 4-8 1st Process Step: Create a Stock Transport Order ..................................................................................................... 4-9 Stock Transport Order and Requirements Planning................................................................................................ 4-10 2nd Process Step: Create a Replenishment Delivery .............................................................................................. 4-11 Customer Master Record for Ship-to Party............................................................................................................... 4-12 Determination of Outbound Delivery Parameters ................................................................................................... 4-13 3rd Process Step: Execute Picking and Post Goods Issue...................................................................................... 4-14 Effects of Goods Issue Posting (One-Step Procedure) .......................................................................................... 4-15 Movement Types for Stock Transfer with LE Delivery ......................................................................................... 4-16 Intercompany Stock Transfer:Checklist for Customizing ...................................................................................... 4-17 Intra-company Stock Transfer: Unit Summary ........................................................................................................ 4-18 Intercompany Stock Transfer Exercises .................................................................................................................... 4-19 Intercompany Stock Transfer Solutions.................................................................................................................... 4-27 Cross-Company Stock Transfer......................................................................................................................................... 5-1 Cross-Company Stock Transfer:Unit Objectives I .................................................................................................... 5-2 Cross-Company Stock Transfer:Unit Objectives II................................................................................................... 5-3 Cross-Company Stock Transfer: Overview Diagram ............................................................................................... 5-4 Cross-Company Stock Transfer:Business Scenario .................................................................................................. 5-5 Process for Cross-Company Stock Transfer (Two -Step Procedure)...................................................................... 5-6 1st Process Step: Create a Stock Transport Order ..................................................................................................... 5-7 Order Types for Stock Transport Order....................................................................................................................... 5-8 2nd Process Step: Create a Replenishment Delivery ................................................................................................ 5-9 3rd Process Step: Execute Picking and Post Goods Issue...................................................................................... 5-10 Determination of the Movement Type....................................................................................................................... 5-11 Stock Changes after Goods Issue: (Two-step Procedure)...................................................................................... 5-12 4th Process Step: Create Internal Invoice.................................................................................................................. 5-13 Elements of Internal Invoice ...................................................................................................................................... 5-14 5th Process Step: Post Goods Receipt........................................................................................................................ 5-15 Stock Changes after Goods Receipt(Two-step Procedure).................................................................................... 5-16 6th Process Step: Post Invoice Receipt for Purchase Order................................................................................... 5-17 Cross-Comp any Stock Transfer:Checklist for Customizing I ............................................................................... 5-18

Cross-Company Stock Transfer:Checklist for Customizing II.............................................................................. 5-19 Cross-Company Stock Transfer:Unit Summary I................................................................................................... 5-20 Cross-Company Stock Transfer:Unit Summary II .................................................................................................. 5-21 Cross-Company Stock Transfer Exercises................................................................................................................ 5-22 Cross-Company Stock Transfer Solutions................................................................................................................ 5-35 Subcontracting...................................................................................................................................................................... 6-1 Subcontracting: Unit Objectives ................................................................................................................................... 6-2 Subcontracting: Overview Diagram............................................................................................................................. 6-3 Subcontracting: Business Scenario............................................................................................................................... 6-4 Subcontracting Process................................................................................................................................................... 6-5 1st Process Step: Determination of Requirements..................................................................................................... 6-6 2nd Process Step: Create Subcontract Order.............................................................................................................. 6-7 Document Type and Item Category forSubcontract Order ...................................................................................... 6-8 3rd Process Step: Monitor Provision Stock and Execute Transfer Postings for Components........................... 6-9 LE Outbound Delivery for Components ................................................................................................................... 6-10 Inventory Management for Components to be Provided........................................................................................ 6-11 Settings for LE Outbound Delivery............................................................................................................................ 6-12 Required Master Data for LE Outbound Delivery ................................................................................................... 6-13 Determination of Outbound Delivery Parameters and Movement Type............................................................. 6-14 4th Process Step: Post Goods Receipt........................................................................................................................ 6-15 5th Process Step: Post Invoice Receipt for Purchase Order................................................................................... 6-16 Postings (Without Input Tax) During Goods and Invoice Receipt....................................................................... 6-17 Liquidacin..................................................................................................................................................................... 6-18 Scheduling Agreement ................................................................................................................................................. 6-19 Subcontracting:Checklist for Customizing ............................................................................................................... 6-20 Subcontracting: Unit Summary ................................................................................................................................... 6-21 Subcontracting Exercises ............................................................................................................................................. 6-22 Subcontracting Solutions............................................................................................................................................. 6-34 Conclusion............................................................................................................................................................................. 7-1 Course Objectives............................................................................................................................................................ 7-2 Recommended Tasks / Literature to Deepen Knowledge of Subject ..................................................................... 7-3 Appendix ............................................................................................................................................................................... 8-1 Menu Paths in Customizing for LO925....................................................................................................................... 8-2 Accounting Basics........................................................................................................................................................... 8-4 Double-Entry Accounting.............................................................................................................................................. 8-5 Account Types - Balance Sheet Accounts .................................................................................................................. 8-6 Account Types - P&L Accounts .................................................................................................................................. 8-7 Example SD...................................................................................................................................................................... 8-8 Example SD: Postings.................................................................................................................................................... 8-9 Example MM.................................................................................................................................................................. 8-10 Example MM: Postings................................................................................................................................................ 8-11

LO925 Cross-Application Business Processes in SD and MM

LO925
Cross-Application Business Processes in SD and MM
SAP AG 1999

n n n n

R/3 System Release 4.6C November 2000 Material Number 50040301

Copyright

Copyright 2000 SAP AG. Reservados todos los derechos.

Prohibida la distribucin, reproduccin o traduccin de este manual o de parte del mismo, sea cual sea el fin y la forma, sin la autorizacin expresa por escrito de SAP AG. La informacin contenida en este manual puede modificarse o complementarse sin previo aviso.

Reservados todos los derechos.

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Marcas registradas: n Microsoft , Windows , NT , PowerPoint , WinWord , Excel , Project , SQL-Server , Multimedia Viewer , Video for Windows , Internet Explorer , NetShow , y HTML Help son marcas registradas de Microsoft Corporation. n Lotus ScreenCam es una marca registrada de Lotus Development Corporation. n Vivo y VivoActive son marcas registradas de RealNetworks, Inc. n ARIS Toolset es una marca registrada de IDS Prof. Scheer GmbH, Saarbrcken n Adobe y Acrobat son marcas registradas de Adobe Systems Inc. n TouchSend Index es una marca registrada de TouchSend Corporation. n Visio es una marca registrada de Visio Corporation. n IBM , OS/2 , DB2/6000 and AIX son marcas registradas de IBM Corporation. n Indeo es una marca registrada de Intel Corporation. n Netscape Navigator , y Netscape Communicator son marcas registradas de Netscape Communications, Inc. n OSF/Motif es una marca registrada de Open Software Foundation. n ORACLE es una marca registrada de ORACLE Corporation, California, USA. n INFORMIX -OnLine para SAP es una marca registrada de Informix Software Incorporated. n UNIX y X/Open son marcas registradas de SCO Santa Cruz Operation. n ADABAS es una marca registrada de Software AG n Las siguientes marcas o marcas registradas pertenecen a SAP AG: ABAP/4, InterSAP, RIVA, R/2, R/3, R/3 Retail, SAP (Word), SAPaccess, SAPfile, SAPfind, SAPmail, SAPoffice, SAPscript, SAPtime, SAPtronic, SAP-EDI, SAP EarlyWatch, SAP ArchiveLink, SAP Business Workflow, y ALE/WEB. El logotipo de SAP y todos los dems productos, servicios, logotipos o marcas de SAP que aparezcan en este manual tambin son marcas o marcas registradas de SAP AG. n Los dems productos, servicios, logotipos o marcas que aparecen en este manual tambin son marcas o marcas registradas de sus respectivas empresas.

Ventas y distribucin
Nivel 2
LO604 Soporte de ventas LO605 Ventas LO610 Expedicin LO611 Transporte LO615 Facturacin 1 da 4 das 2 das 2 das 2 das LO650 3 das

Nivel 3
LO606 1 da Workshop de ventas

Customizing general en SD

LO150 5 das Procesos en comercial

LO620 3 das Determinacin precio SD LO640 Comercio exterior 3 das

LO645 2 das Gestin de crditos y de riesgos LO925 2 das Logstica interna y externa

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Gestin de materiales
Nivel 2
LO510 3 das Gestin de stocks LO515 3 das Verificacin de facturas LO520 3 das Optimizacin de las compras LO525 2 das Planif. y previsin de necesid. sobre consumo LO540 2 das Gestin de servicios externos LO925 Logstica interna y externa 2 das LO550 5 das Customizing general en MM LO521 2 das

Nivel 3

LO020

5 das

Procesos en el aprovisionamiento

Determinacin del precio de compra LO955 3 das

Gestin de lotes

LO640 3 das Comercio exterior 2 das LO715 Gestin calidad MM

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LO235 KANBAN

2 das

Course Prerequisites

l LO150 Sales Processes or LO020 External Procurement Processes l Knowledge of these separate applications

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Target Group

l Participants:
n

Staff in the project team who are responsible for implementing cross-application business processes in sales and materials management

l Duration: 2 days

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Notes to the user n The training materials are not teach-yourself programs. They compliment the course instructor's explanations. On the sheets, there is a space for you to write down additional information.

Course Overview

Contents:
l Course Targets l Course Objectives l Table of contents l Course Overview Diagram l Main Business Scenario

1
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Course Goals

This course will enable you to:

l Process and implement selected, cross-

application business processes in Sales and Materials Management

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1-2

Course Objectives

At the conclusion of this course, you will be able to:

l Execute the cross-application business

processes for third-party order processing, crosscompany sales, stock transfer, and subcontracting in the SAP R/3 System
l Outline the most important setting options in

Customizing

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Table of contents

Introduction Unit 1 Unit 2 Unit 3 Course Overview Third-Party Order Processing Cross-Company Sales Processing Unit 4 Unit 5 Unit 6 Unit 7 Appendix Intra-Company Stock Transfer Cross-Company Stock Transfer Subcontracting Conclusion

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Course Overview Diagram

delivers delivers

Customer

Vendor

Customer

Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

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Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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1-5

Main Business Scenario

l The company includes external partners or

partners belonging to the corporate group in the sales and production process.

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Third-Party Order Processing

Customer

delivers

Vendor

orders

orders

Sales organization Company

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n n n

In third-party order processing, the goods ordered by the customer are not delivered by your company (in the diagram above, your company is represented by the term company). Instead, you pass on the order to an external vendor, who then sends the goods directly to the customer and sends the invoice to you. The purchase order of your customer is entered in a sales organization of your company as a sales order. Afterwards, a purchase order for the external vendor is created in your company. Contrary to a cross-company sales activity, the vendor is not an associated company that operates in the same R/3 client.

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Cross-Company Sales

Customer

delivers

Plant

orders

Company 2 Sales organization Company 1

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In the case of cross-company sales activities, you also have a different company delivering the ordered goods. The selling and the delivering companies are associated partners that work in the same R/3 client. The cross-company sale is characterized by the fact that the sales organization in which the sales order is entered and the plant from which the goods are to be delivered are in different companies (company codes). Since both companies create their own separate financial statements, the delivering company must bill the ordering company for the goods.

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Stock Transfer

Company 2 Plant 2 Plant 2

orders

delivers

orders

delivers

Plant 1 Company
Intra-company
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Plant 1 Company 1
Cross-company

n n

In a corporate enterprise, goods movements do not refer exclusively to goods receipts and goods issues from or to an external business partner (vendor, customer). Due to the different organization methods that may exist (for example, you have a de-centralized warehouse in your company) or the sales policies of the company, internal stock transfers within the company can occasionally be required. In such cases, the goods exchange takes place between 2 plants or between two storage locations within a plant. However, the stock transfer storage location to storage location will not be dealt with in this course. The plants involved in the stock transfer can also belong to two different companies within the enterprise (cross-company stock transfer). You have different methods available for processing a stock transfer between 2 plants. Some of these methods use SD and LE functions in addition to the MM component. In the units on stock transfers, we use the Logistics Execution component, and the stock transfer process is initiated by a purchase order.

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Subcontracting

orders

Subcontractor (vendor)

delivers

delivers

Plant

Company
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n n n n

In subcontracting, the vendors receive materials (components) from which they manufacture finished products. This process is initiated by a purchase order for a finished product at the subcontracting company. Then the components are supplied to the vendor. The components that are delivered to the vendor are managed as stock of material provided to vendor. As soon as the vendor has produced the ordered material or refined it in some way, he/she returns it to the ordering plant. At this point, the consumption of the components is usually posted.

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Third-Party Order Processing

Contents:
l Creating a Sales Order l Creating a purchase order l Posting goods receipt l Posting invoice receipt for purchase order l Invoicing the sales order

2
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Third-Party Order Processing: Unit Objectives

At the conclusion of this unit, you will be able to:

l Provide third-party order processing for certain materials
l l l l l l l l
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Create a sales order with a third-party item Determine the respective purchase requisition Explain how third-party order processing is automatically triggered from a sales order Convert the automatically-created purchase requisition into a purchase order Post goods receipt for a purchase order with a third-party item Explain which accounts are to be posted to through the goods receipt and with what amounts Post the invoice receipt manually for invoice verification and explain which accounts are posted to during these activities Bill the sales order

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Third-Party Order Processing: Overview Diagram

delivers delivers

Customer

Vendor

Customer

Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

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Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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Third-Party Order Processing: Business Scenario

l In certain sales activities, the company arranges for direct delivery of goods from the vendor to the customer, without the goods having to be processed through the company's own warehouse.

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Process for Third-Party Order Processing

Customer 2004
bills orders

delivers

Vendor 1010
reports delivery bills
2 3 4

orders

5 1

Company 1000
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Sales organization 1000

n n n n n

The purchase order of the customer is first entered in a sales organization of your company as a sales order (application SD). A purchase requisition is automatically created from the order. Afterwards, a purchase order for the external vendor is created in the MM purchasing application. This order states that all goods are to be delivered directly to the customer. As soon as the vendor confirms to you that the outbound delivery is complete, you post a goods receipt so that this information is recorded in the system. In the application MM Invoice Verification, you enter the invoice issued by the vendor to your company for the goods delivered by the vendor to the customer. Finally, you generate the SD billing activities to your customer.

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1st Process Step: Create Sales Order

Customer 2004
bills orders

delivers

Vendor 1010
reports delivery bills
2 3 4

orders

5 1

Company 1000
SAP AG 1999

Sales organization 1000

n n

Third-party order processing is initiated when you enter a sales order with a third-party item. Either the order consists partially of third-party items or all the items in the order are third-party items. Depending on how your system is configured in Customizing, third-party item categories can be determined automatically by the system for the respective materials. ("Automatic third-party order processing") However, so that you can process materials that you normally deliver yourself as third-party items, you can manually change a standard item into a third-party item by entering the respective item category. ("Manual third-party order processing") During automatic scheduling of third-party order items, the system takes into consideration the planned delivery time from the material master, that is, the time the vendor requires to deliver the goods. The purchasing department processing time, that is, the time the purchasing department requires to process the third-party orders, is also included. The purchasing department processing time is assigned to the plant in Customizing.

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Creating the Purchase Requisition

Order Customer Item category

TAS

Purchase requisition Vendor Item category S AcctAssgmtCat. X

Release procedure

Source determination

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n n

n n

In standard Customizing for sales (IMG), the system is configured so that a purchase requisition is automatically created in purchasing when you save the sales order to the database. Here, a separate purchase requisition item is automatically created for each third-party item. While creating the purchase requisition, the system automatically determines a vendor for each requisition item. If a third-party order item has more than one schedule line, the system creates a purchase requisition item for each such line. You can branch to the display of created purchase requisition items from the schedule line of the sales order. In the sales order, you can make subsequent changes to the quantity and delivery date for a thirdparty order item. The changes you make are automatically copied into the respective purchase requisition, provided the release status of the purchase requisition still allows this. The purchase requisition has the account assignment for the sales order. This account assignment cannot be changed in the purchase requisition.

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Structure of Order with Third-Party Item

Order Header Item 10 Schedule line 1 Item 20 Schedule line 1 Schedule line 2
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OR TAS CS ... ... ...

Sales doc. type Item category Schedule line category Item category Schedule line category Schedule line category

n n

The sales document consists of the document header and an arbitrary number of items. Each item can have any number of schedule lines. At the schedule line level you find the procurement and the distribution data. The sales documents are customized for header, item, and schedule -line settings, in accordance with the respective structure. The control instruments involved include the sales document type, the item category, and the schedule line category. You create third-party order items by creating a standard sales order (for example, sales document type OR for a standard order). Item category TAS is defined for third-party order items in standard Customizing. Also, the system is configured so that schedule line category CS ("third-party") is determined for third-party order items. The sales order can consist of further third-party order items or items with other item categories.

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Determination of Item Category

Sales document Material master

View: Sales: SalesOrg 2
ABAP/4 Editor
form XY_001.

Sales doc. type

Item category group

Item usage

FeldY.fys ysy-subrc = 0.nendform.

gram Pro
check: FeldX ne

sy-subrc = 4.

Item category of superior item item

Item category(ies) category(ies)

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l l

System default Alternatives

For the most part, the item category depends on the sales document type and the item category group of the material. The two other factors, that is, item usage and the item category of the superior item, are of minor importance in third-party order processing. Using the item category group, you can group different materials from the view of sales. For example, you should assign the item category group BANS (third-party item) to materials whose sales are processed solely as third-party orders. The item category assignment in the standard system triggers off automatic determination of the item category TAS. The item category determined by the system can be changed if you have defined allowed alternatives in Customizing. You typically use this option if you wish to have a material that you normally deliver yourself delivered by an external vendor directly to the customer.

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Schedule Line Category for Third-Party Order Processing

Sched.line cat. CS
Movement type

"Third-party"

Item relevant for delivery

PO type Item category AcctAssgmtCat.

NB 5 X

Purchase requisition "Third-party" "Auxil.accnt assignments"

Order Save order

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Purchase requisition

n n

In the standard system, schedule line category CS (third-party) is used to process third-party order items. Since third-party order items are not supplied by your company, you do not have to post the goods issue in your system. Therefore, the schedule line category CS in Customizing does not contain a movement type and is not set as being relevant for delivery. In the standard system version, a purchase requisition is automatically created for third-party items from the sales order as soon as the sales order is saved to the database. Also, the Customizing settings for schedule line category CS contain the specification of a document type for the purchase requisition, as well as the item category (with internal character representation) and the account assignment category.

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Determination of the Schedule Line Category

Sales document

Item category category

Material master
View:
Mat.planning 1

MRP type

Sched.category(ies)
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l l

System default Alternatives

n n

n n

Schedule line categories are assigned to item categories. The aims of this assignment are: To have the system automatically propose a schedule line category when the order is entered into the system To define the schedule line categories that can be chosen by the user if the default value is to be changed The assignment is influenced by the MRP type from the material master record. When automatically determining the schedule line category, the system proceeds in two steps: In the first step, the system tries to determine the schedule line category using the key combination for item category and MRP type. If no schedule line category is found, the system searches again using the key combination for item category and no MRP type. Therefore, if there are materials where the MRP type is not maintained in the material master record, but a schedule line category needs to be found, the Customizing settings for the schedule line category assignment must contain a line with the item category and MRP type set to blank. This is the case, for example, for item category TAS in the standard version so that schedule line category CS is determined by the system in this case.

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2nd Process Step: Create a Purchase Order

Customer 2004
bills orders

delivers

Vendor 1010
reports delivery

orders

bills
2 5 1 3 4

Company 1000
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Sales organization 1000

n n n n n n

In third-party order processing, purchase orders are created from purchase requisitions in the normal way. When a purchase order is created, the system automatically adopts the address of the goods recipient from the respective sales order as the delivery address. You can enter order texts in the sales order for each third-party order item. These are automatically copied into the purchase order when it is created. The number of the created purchase order appears in the document flow for the sales order. From there you can also branch to the purchase order. Third-party order items in purchase orders are marked with item category S. Third-party items must have an account assignment; in the standard version, account assignment category X (all auxiliary account assignments) is used.

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3rd Process Step: Post Goods Receipt

Customer 2004
bills orders

delivers

Vendor 1010
reports delivery bills
2 3 4

orders

5 1

Company 1000
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Sales organization 1000

n n n n

You can set the business process in such a way that the entry of the vendor invoice receipt is only possible if a goods receipt for the purchase order was entered in the system beforehand. You post the goods receipt only when the vendor reports to you that they have performed the delivery. Alternatively, you can have the receipt of the delivery confirmed by the customer. To be able to use this monitoring feature, set the GR indicator in the purchase order item or perform the required settings in Customizing. Since no goods flow takes place in your company, the goods receipt posting serves solely as a value update for your system.

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4th Process Step: Post Invoice Receipt for Purchase Order

delivers

Customer 2004
bills orders orders

Vendor 1010
reports delivery bills
2 3 4

5 1

Company 1000
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Sales organization 1000

n n

You enter an invoice receipt for the respective invoice from the vendor using the Logistics invoice verification module. If goods receipt is provided for in your business process for third-party order processing, you can only post the invoice receipt after you have entered the goods receipt into the system.

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5th Process Step: Bill for Sales Order

delivers

Customer 2004
bills orders orders

Vendor 1010
reports delivery bills
2 3 4

5 1

Company 1000
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Sales organization 1000

n n n n

As soon as the invoice receipt is recorded in the system, the customer is billed. The sales order is then contained in the billing due list and is processed in the next multiple processing run for billing documents. The billing date relevant for this due list corresponds to the posting date of the invoice receipt document. Since no outbound delivery exists in the system for third-party order items, you set the indicator for order-related billing during selection of the documents to be billed.

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Billing Relevance and Billing Quantity

Item category TAS

Billing relevance F

"Third-party item"
"Relevant for orderrelated billing: Status based upon IR quantity"

Order M-03 10 PC Invoice receipt M-03

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Purchase order M-03 10 PC Invoice to customer 9 PC M-03

Goods receipt M-03 9 PC

9 PC

If the billing-relevance indicator in Customizing is set to F ("relevant for order-related billing: Status according to IR quantity"), the system includes the order in the billing due list only when the vendor invoice has been received and entered into the system. In the copying control for sales document to billing document, the standard setting for the third-party order item category defines that the quantity from the invoice receipt document, not the order quantity, for example, is copied into the billing document (Billing quantity field).

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Third-Party Order Processing: Checklist for Customizing

If you are implementing user-defined objects in sales document control: l Definition of a third-party item category (includes defining billing relevance) l Maintenance of item category determination l Definition of a schedule line category for thirdparty order processing (includes assignment of the document type for the purchase requisition) l Maintenance of the schedule line category determination l Maintenance of copying control for sales document to billing (includes determination of billing quantity)
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Third-Party Order Processing: Unit Summary

You are now able to:
l l l l l l l l

Provide third-party order processing for certain materials Create a sales order with a third-party item Determine the respective purchase requisition Explain how third-party order processing is automatically triggered from a sales order Convert the automatically-created purchase requisition into a purchase order Post goods receipt for a purchase order with a thirdparty item Explain which accounts are to be posted to through the goods receipt and with what amounts Post the invoice receipt manually for invoice verification and explain which accounts are posted to during these activities Bill the sales order

l
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Third-Party Order Processing

Unit: Topic:

Exercises

Third-Party Order Processing Preparations

At the conclusion of this exercise, you will be able to: Provide third-party order processing for certain materials

You and a vendor have agreed that the vendor will deliver a certain material directly to your customer when you receive a purchase order for it. This arrangement is particularly useful for this material because you only receive orders for it occasionally and you would normally need a delivery to ship it. So essentially, this arrangement saves you a step.

1-1

A material master record already exists for the material (T-AUC##) described in the above enterprise scenario. The same applies for the vendor 1010. Since you have occasionally obtained this material from this vendor before, a purchasing info record also exists in the system. Display the purchasing info record and use it to complete the following list: Vendor: 1010 Material: T-AUC## Purchasing organization: 1000 Plant: 12## Net price: __________________________

1-2

Now maintain vendor 1010 in the source list for material T-AUC## in plant 12## as the preferred source of supply. The entry should be valid from today until the end of the year. Purchasing organization: 1000 Choose Fix.

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1-3

Material T-AUC## should normally be delivered to your customer via thirdparty order processing. Therefore, change the item category group in the material master to an appropriate setting. Sales organization: 1000 Distr. channel: 12 However, as well as changing the entry in the General item category group, you must also change the entry (if one is available) in the field Item category group.

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Exercises
Unit: Topic: Third-Party Order Processing Creating a Sales Order

At the conclusion of this exercise, you will be able to: Create a sales order with a third-party item Determine the respective purchase requisition Explain how third-party order processing is automatically triggered from a sales order One of your customers orders the material for which you have set up third-party order processing. A purchase requisition is to be generated automatically from the sales order. The purchase requisition can later be easily changed to a thirdparty purchase order.

2-1

You receive the following purchase order for the material that is to be shipped directly from your vendor to the customer:

Purchase order Customer: 2004 Purchase order number: ##-tp Requested delivery date: current date + 1 workday Material T-AUC## Quantity 10 PC

2-1-1 Create a customer sales order for this. Order type: OR 2-1-2 Can the material be delivered by the requested delivery date? List the reason(s) for the system response. _________________________________________________________
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_________________________________________________________ 2-1-3 Accept the scheduling default for Complete delivery. 2-1-4 Which plant would supply this item if it was outbound delivery? __________________________________ 2-1-5 What is the net price of the order item? _________________________ 2-1-6 Save the sales order. Write down the document number. Sales order: _________________ 2-2 Check to make sure that a purchase requisition was automatically generated from the sales order. Write down the document number. Purchase requisition: ___________________ 2-3 Display the purchase requisition. What is its document type? _____________________ Which vendor is assigned as the fixed source of supply? _____________________ 2-4 In order for third-party order processing to be triggered, the order must include item categories and schedule line categories that correspond to third-party order processing. 2-4-1 Which item category has the system determined in the sales order? ________________________________ 2-4-2 Which entry in the item category assignment was responsible for the determination of this item category? Sales document type: Item category group: Item category: ________________ ________________ ________________

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2-4-3 Explain how and why it is possible in some cases to trigger third-party order processing for a material with item category group NORM in a standard order. ____________________________________________________________ ____________________________________________________________ You should only display the Customizing settings for item and schedule line categories, and for their determination rules. Do not make any changes.

*2-5

Optional: The schedule line category settings result in automatic creation of a purchase requisition. 2-5-1 What schedule line category is determined in the sales order? ________________________________ 2-5-2 What document type is used for the purchase requisition (resulting from the settings in the schedule line category)? ________________________________ Did this document type determination work in your example? _______________ 2-5-3 What movement type is recorded in the schedule line category? ________________________________ Explain the reason for the system setting that appears. ____________________________________________________________ 2-5-4 Which entry in schedule line category assignment defines the schedule line category in your sales order? Item category: _____________ _____________

Material requirements planning (MRP) type: Schedule line category default: _____________

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Exercises
Unit: Topic: Third-Party Order Processing Creating a purchase order

At the conclusion of this exercise, you will be able to: Convert the automatically-created purchase requisition into a purchase order

The next step is to have your vendor deliver the goods directly to the customer, who ordered them through you.

3-1

For the next step, imagine you are the employee responsible for plant 12## in the purchasing department. 3-1-1 Create a purchase order for the purchase requisition that was generated in the previous exercises by accessing the purchase requisition assignment list. Purchasing group: 004 Purchasing organization: 1000 Vendor: 1010 Plant: 12## Scope of list: A 3-1-2 Also enter the following data for the purchase order if the system requests it: Order type: NB Purchase order date: current date Purchasing group: 004 Purchasing organization: 1000 3-1-3 You have spoken to your vendor on the phone. He confirmed that he can have the goods delivered to your customer on the requested date. This means that you can leave the delivery date as it is. Save the purchase order. Make a note of the document number. Purchase order: ____________________________

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3-2

Using the print preview of the purchase order, check that the delivery is to be shipped directly to your customer rather than to your company. You should use the purchasing document transaction for output issue. Then choose Displ. output rather than Output.

3-3

How can you display the delivery address directly from the purchase order document display? __________________________________________________________________ __________________________________________________________________

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Exercises
Unit: Topic: Third-Party Order Processing Posting goods receipt

At the conclusion of this exercise, you will be able to: Post goods receipt for a purchase order with a third-party item Explain which accounts are to be posted to through the goods receipt and with what amounts You have agreed with the vendor that, in the case of third-party order processing with your company, he will inform you when he has made the delivery to your customer.

4-1

As soon as your vendor informs purchasing that outbound delivery of the goods listed in the purchase order is complete, the goods receipt can be posted. Post the goods receipt for the purchase order. Purchase order: document number noted previously Document date: current date Posting date: current date

*4-2

Optional: Display the accounting document for goods receipt. 4-2-1 Which accounts were involved in posting? ______________________________________________ ______________________________________________ 4-2-2 Explain how the system arrived at this amount. ______________________________________

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Exercises
Unit: Topic: Third-Party Order Processing Posting invoice receipt for purchase order

At the conclusion of this exercise, you will be able to: Post the invoice receipt manually for invoice verification Explain which accounts were posted to

The vendor sends you an invoice for the goods that you have ordered from him and that he has delivered to your customer.

5-1

You receive the following invoice from your vendor:

INVOICE
Sunny Electronics GmbH (vendor 1010) Invoice date: (current date) Invoice 950031## Invoice for your purchase order 4500.... T-AUC## Output tax 10% (1I) Invoice amount: Monitor Sunny Tetral3 10 pc 12400 UNI _1240 UNI 13640 UNI

Enter the invoice in the company code 1000. Write down the document number. Invoice: _____________________________

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*5-2

Optional: Display the accounting document for this invoice. 5-2-1 Which accounts were involved in posting? ______________________________________________ ______________________________________________

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Exercises
Unit: Topic: Third-Party Order Processing Invoicing the sales order

At the conclusion of this exercise, you will be able to: Bill the sales order Explain the origin of the prices in the billing document

Once your company has received the invoice for the goods that were delivered directly to your customer by your vendor, you can send your own invoice to the customer. Under normal circumstances, you can use the multiple processing run for billing documents for this step. In some cases, you may need to create invoices individually.

6-1

Create the invoice for your customer with detailed reference to the sales order. As an exception, use the individual billing procedure. 6-1-1 What is the net value? ____________________________ Where have you seen this value before in this business process? _________________________________________________ Does this make sense? 6-1-2 Save the billing document and write down the document number. Billing document: _______________________

6-2

You have created the customer invoice on the basis of the sales order. 6-2-1 Explain why this is the necessary course of action for third-party order processing. ____________________________________________________________ 6-2-2 Where can you make the settings in Customizing that define whether a business transaction is to be billed based on the sales order or the delivery? List the menu path you used to get to this part of Customizing. ____________________________________________________________

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6-2-3 What would change if you chose B as the appropriate indicator? ____________________________________________________________ ____________________________________________________________

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Third-Party Order Processing

Unit: Topic:

Solutions

Third-Party Order Processing Preparations

1-1

Logistics Materials Management Purchasing Master Data Info Record Display Vendor: 1010 Material: T-AUC## Purchasing organization: 1000 Plant: 12## Leave the info category set to Standard. Choose Purch. org. data 1 on the Display Info Record screen. Net price: 1240 UNI

1-2

Logistics Materials Management Purchasing Master Data Source List Maintain Material: T-AUC## Plant: 12## Valid from: current date Valid to: end of the year Vendor: 1010 Purchasing organization: 1000 Choose Fix.

1-3

Logistics Sales and Distribution Master Data Products Material Trading Goods Change Material: T-AUC## Choose Sales:Sales Org. Data 2. Sales organization: 1000 Distribution channel: 12 Item category group: BANS Note that you do not have to enter BANS in the field General item category group.

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Solutions
Unit: Topic: Third-Party Order Processing Creating a Sales Order

2-1 2-1-1 Logistics Sales and Distribution Sales Order Create Order type: OR Ship-to party: 2004 PO number: ##-tp Requested delivery date: current date + 1 workday Material: T-AUC## Quantity: 10 PC 2-1-2 In the Standard order: Order scheduling screen that appears, it is obvious that the requested delivery date cannot be met. To calculate the actual delivery date, the system considers the planned delivery time of 5 days and the processing time for purchasing of 1 day, which depends on the plant. 2-1-3 Select Complete delivery or Copy in the Complete delivery area of the screen. 2-1-4 On the Sales tab of the overview screen: Plant: 12## (If it were an outbound delivery from your own warehouse, it would be the delivering plant.) 2-1-5 On the Sales tab of the overview screen: Net value: 17300 UNI 2-1-6 Choose Save. 2-2 Logistics Sales and Distribution Sales Order Display Select the item. Choose Schedule lines for item. Select the second schedule line. Select Sched. line-detail and then the Procurement tab. Select Edit. Document type: NB Vendor: 1010

2-3

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2-4 2-4-1 Logistics Sales and Distribution Sales Order Display On the Sales tab of the overview screen: Item category TAS 2-4-2 IMG: Sales and Distribution Sales Sales Documents Sales Document Item Assign Item Categories Sales document type: OR Item category group: BANS Item category (DfItC field): TAS 2-4-3 To trigger third-party processing in a standard order, change the determined item category TAN to TAS. This is made possible by the available alternative item categories for manual entry stored in the item category assignment. The appropriate line in the item category assignment is the following: Sales document type: OR Item category group: NORM Item category (DfItC field): TAN Select the line and then press Details. Manually allowed item category in the sales document (Manual item category field): (among others) TAS *2-5 Optional: 2-5-1 Logistics Sales and Distribution Sales Order Display Select the item. Choose Schedule lines for item. Schedule line category: CS 2-5-2 IMG: Sales and Distribution Sales Sales Documents Schedule Lines Define Schedule Line Categories Select Details for schedule line category CS. Order type (Document type of purchase requisition): NB Yes, you found out earlier that the purchase requisition generated in your example has document type NB. 2-5-3 In the definition of schedule line category CS, no movement type has been stored. This would not make sense, since the issue does not originate from your stocks in third-party order processing. Therefore, you will create neither an outbound delivery nor a goods issue, so the system does not need the movement type.

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2-5-4 IMG: Sales and Distribution Sales Sales Documents Schedule Lines Assign Schedule Line Categories Item category: TAS MRP type: blank Schedule line category default (SchLC field): CS Since you did not specify the MRP type in the schedule line category assignment for item category TAS, you do not need to check the MRP type in the material master of material T-AUC##.

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Solutions
Unit: Topic: Third-Party Order Processing Creating a purchase order

3-1 3-1-1 Logistics Materials Management Purchasing Purchase Order Create Via Requisition Assignment List Purchasing group: 004 Purchasing organization: 1000 Vendor: 1010 Plant: 12## Scope of list: A Select Execute Position the cursor on the bottom line and select Process assignment. 3-1-2 The data given in the exercise text has already been entered in the Process assignment: Create PO screen. Then select Enter. In the left side of the screen (document overview), select the purchase requisition you have created. Then copy it to the current purchase order in the right side of the screen, using the Adopt button. Alternatively, you can drag the purchase requisition onto the shopping basket symbol, using the left mouse buttton. 3-1-3 Choose Save. 3-2 Logistics Materials Management Purchasing Purchase Order Messages Print/Transmit Purchasing document: Document number of the purchase order you wrote down earlier Select Execute Select the line in the Message output: screen and select Display message. 3-3 Logistics Materials Management Purchasing Purchase Order Display Choose Print preview or
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Choose the Delivery address tab page at item level. In addition to the address, you can also check which customer number the system assigned to the customer.

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Solutions
Unit: Topic: Third-Party Order Processing Posting goods receipt

4-1

Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known Purchase order: document number noted above Document date: current date Posting date: current date Choose ENTER or Execute. Select Item OK. Choose Post.

*4-2

Optional: Logistics Materials Management Inventory Management Material document Display Material document: Default value Material document year: Default value Select Accounting documents... in the material document Click on the Accounting document. 4-2-1 Debit posting: Stock change account Credit posting: GR/IR clearing account 4-2-2 The system copied the amount from the purchase order.

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Solutions
Unit: Topic: Third-Party Order Processing Posting invoice receipt for purchase order

5-1

Logistics Materials Management Invoice Verification Logistics Invoice Verification Document Entry Enter Invoice Invoice date: current date Posting date: current date Reference: 950031## Amount: 13640 UNI Tax amount: 1240 Tax code: 1I (corresponds to 10%) Purchase order/Scheduling agreement: document number noted above Choose Enter. Check the difference. Choose Post.

*5-2

Optional: Logistics Materials Management Logistics Invoice Verification Further Processing Display Invoice Document Invoice document number: default value Fiscal year: default value Select Follow-on documents... Click on the Accounting document. 5-2-1 Debit posting: GR/IR clearing account; Account for input tax Credit posting: Vendor number Now your company has a debt to the vendor.

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Solutions
Unit: Topic: Third-Party Order Processing Invoicing the sales order

6-1

Logistics Sales and Distribution Billing Billing Document Create Document: Document number of the sales order you wrote down previously Select Execute. 6-1-1 Net value: 17300 UNI The net value is identical to the amount in the sales order. Yes, because it would not be a good idea to copy the amount from your purchase order that you sent to the vendor since otherwise you would not earn anything with this business procedure! 6-1-2 Choose Save.

6-2 6-2-1 During third-party order processing, your vendor sends the goods directly to your customer. Therefore, you did not create an outbound delivery for the sales order with third-party item. Delivery-related billing is thus not possible. 6-2-2 IMG: Sales and Distribution Sales Sales Documents Sales Document Item Define Item Categories Select Details for item category TAS. Relevant for billing field 6-2-3 If you chose entry "B" instead of "F" for the relevance for billing, the order would be in the billing due list immediately following its entry. With the given system setting, the billing with a log entry would be rejected since the system would try in vain to determine an invoice receipt quantity. A further system setting can be found in the copying control for sales documents to billing documents for third-party item category TAS (Billing quantity field). IMG: Sales and Distribution Billing Billing Documents Maintain Copying Control for Billing Documents Copying Control: Sales Documents to Billing Documents Target: F2 Source: OR Double-click on Item in dialog structure. Choose Details for the item category TAS.

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Cross-Company Sales

Contents:
l Creating a Sales Order l Executing Shipping Activities l Creating an Invoice for the End Customer l Creating an Internal Invoice l Posting Invoice Receipt

3
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Cross-Company Sales: Unit Objectives I

At the conclusion of this unit, you will be able to: l Assign a sales area to a plant for the purpose of intercompany billing l Maintain an allowed supplying plant l Set up a cross-company sales process for certain materials l Explain when are you dealing with a cross-company sales activity l Explain the conditions in the sales order l Execute the sales transaction with the help of the outbound delivery

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Cross-Company Sales: Unit Objectives II

At the conclusion of this unit, you will be able to: l Determine which company code the invoice is assigned to l Explain the origin of the sales area l Explain how the system determines the payer l Explain the conditions for intercompany billing l Initiate automatic postings to the vendor account

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Cross-Company Sales: Overview Diagram

delivers delivers

Customer

Vendor

Customer

Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

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Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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Cross-Company Sales: Business Scenario

l In certain cases, the company arranges for direct delivery of the goods to the customer from stocks that belong to a different company belonging to the same corporate group. In this way, the goods are not stored beforehand in the companys own warehouse, but go directly to the customer.
l There is an agreement between the companies

involved that the issue of the invoice in the one company automatically leads to posting of the invoice receipt in the other.

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Process for Cross-Company Sales Activity

Customer 2500
orders bills

delivers

Plant 1200

Sales organization 4 1000

bills

5 1 3

Company 1000

Company 2200
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Sales organization 2200

n n n n n n

When the goods in the purchase order have been ordered by the customer, you enter a sales order in sales organization 2200. This belongs to the so-called ordering company code (company 2200). The plant from which the goods to be delivered are taken is referred to as the delivering company code (company 1000). As soon as the order is due for delivery, the delivering company creates the outbound delivery. The goods issue is posted at the end of the shipping activity, and the goods are delivered to the customer. Afterwards, the invoice for the end customer is created in sales organization 2200, that is, in the ordering company code. In order for inter-company billing to take place between the two companies involoved, the delivering company issues an internal invoice, through ist sales organization 1000, to the ordering company. Depending on the agreement between the two connected companies, the entry of receipt of invoice may take place automaticaly. If not, the received invoice is entered manually in the financial accounting system of the ordering company.

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1st Process Step: Create Sales Order

Customer 2500
orders bills

delivers

Plant 1200

Sales organization 4 1000

bills

5 1 3

Company 1000

Company 2200
SAP AG 1999

Sales organization 2200

n n

The process for cross-company sales processing is initated when standard sales order is created. In a sales order, the system determines the delivering plant for each order item, or this data is entered manually by the processor. The system can propose the delivering plant from the following master records (sequence according to priority): Customer-material info record Customer master for goods recipient Material master If the delivering plant in the order item belongs to a company that is not in the sales organization creating the order, the system recognizes that this is a cross-company sales activity.

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Allowed Delivering Plants

Example: (for distribution channel 10)

Plant 1000 Sales organization 1000 Plant 2200

Plant 1200

Plant 1100

Plant 1300

Sales organization 2200

Company 1000
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Company 2200

n n

n n n

When you create the order, the system checks whether the combination of sales organization, distribution channel and delivering plant is allowed. Depending on the sales organization, the plants allowed for sales activities are defined in connection with the distribution channel. Here it is possible for a sales organization to sell goods from several plants. Conversely, a plant can be assigned to several sales organizations. In Customizing, a plant is uniquely assigned to one company code. A sales organization, too, belongs to exactly one company code. Sales organizations and plants assigned to one another do not have to belong to the same company code. Otherwise, cross-company sales activities would not be possible. The distribution channel provides a further means of differentiation of plants in a sales organization from a sales viewpoint. A distribution channel, for example, can be allowed for certain plants within a sales organization, but not for others.

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Price for Intercompany Billing

Sales order 6788 Item 10 Material: M-01 Quantity: 1 PC Net value: 2000 UNI Price for customer (Revenue) Price for supplying plant (costs) [statistical]

PR00

Price Price

2000 UNI

PI01

Price intercompany billing Profit margin

1500 UNI

500 UNI

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n n

In the order itself, the system automatically executes pricing, whereby the stored condition master data is evaluated. Condition type PR00 specifies the price that is billed to the customer. This price appears, possibly with surcharges and discounts, in the invoice for the customer, provided no change has taken place in the meantime. This price, therefore, stands for the revenue. For information purposes, instead of the moving average price for the material you have the price that the ordering company has to pay to the delivering company (price for intercompany billing). It will be relevant for intercompany billing and represents the costs of the ordering company. To represent the internal price, there are 2 condition types in the standard system: - PI01 (quantity-dependent) - PI02 (percentage) - Condition records are entered in connection with the sales organization entering the order, the delivering plant, and, if necessary, the material. The amount for intercompany billing appears on the condition screen of the sales order as a statistical value (it is only displayed, and has no effect on the pricing results for the customer).

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2nd Process Step: Execute Shipping Activities

Customer 2500
orders bills

delivers

Plant 1200

Sales organization 4 1000

bills

5 1 3

Company 1000

Company 2200
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Sales organization 2200

n n n

The shipping activity is initiated as soon as the outbound delivery has been created. This can take place with the help of the standard collective processing function for delivery of orders due,or with explicit reference to the sales order. As a rule, the outbound delivery is created as soon as the first workstep in the shipping process is imminent. The individual worksteps in the shipping process (picking, packing, printing the delivery note, and so on) are executed on the basis of the outbound delivery and also documented in the delivery. The outbound delivery is created and the shipping activities executed in the shipping point specified in the order. This shipping point is assigned in Customizing to the delivering plant.

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Worksteps for Shipping Processing

Create and print transfer order (if confirmation requirement:) Confirm transfer order (optional:) Pack

Print delivery note

Post goods issue

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For picking purposes, a transfer order with reference to the outbound delivery is created. The list printout of the transfer order is given to the picker so that he/she can pick the required goods from the warehouse. Depending on the settings in Customizing, the pick may have to be confirmed (confirmation requirement). During this confirmation of the transfer order, you can enter possible quantitiy differences. If the goods are to be packed in shipping into larger boxes or placed onto pallets, for example, the appropriate information can be stored in the outbound delivery. Using the output control and output processing functions, you can print out delivery notes. The goods issue posting is the closing activity in the shipping process. Here a quantity and value update of the stock takes place.

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3rd Process Step: Create Invoice for End Customer

Customer 2500
orders bills

delivers

Plant 1200

Sales organization 4 1000

bills

5 1 3

Company 1000

Company 2200
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Sales organization 2200

n n n n

The invoice for the end customer is created in the sales organization that created the sale s order. Invoicing includes a reference to the outbound delivery. Here it is not of importance that the outbound delivery was taken from another company code. With the goods issue posting, the outbound delivery is automatically entered into the billing due list. The invoice is created either right away, or in a billing collective processing run. The goods issue date of the outbound delivery is the relevant billing date for the billing due list.

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Elements of Invoice to End Customer

Invoice 90005623 Doc.type of order Partner role PAYER in Partner order item Order header (sales organization ) Order header Order header Order header header Billing type Billing type Payer Company code code Sales organization Distribution channel channel Division F2 2500 2200 2200 10 00

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n n

The invoice for the end customer is a normal invoice. In the standard version, you can use billing types F2 or F1, whereby in the case of standard orders (sales document type OR) the system automatically used billing type F2 as the default type. In contrast to an internal invoice, the payer as well as the sales units and the company code are taken directly from the order. In the order, the company code was derived from the sales organization that entered the order. This is, therefore, called the ordering company.

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4th Process Step: Create Internal Invoice

Customer 2500
orders bills

delivers

Plant 1200

Sales organization 4 1000

bills

5 1 3

Company 1000

Company 2200
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Sales organization 2200

n n n

For intercompany billing for the services rendered to the customer in sales organization 2200, the delivering company issues an invoice to the ordering company. The internal invoice is created by sales organization 1000. In customizing, you assign the sales organization responsible for inter-company billing to the delivering point. Likewise, in the case of an invoice to the end customer, the billing has a reference to the outbound delivery. You set the indicator intercompany billing during the selection of the documents for billing. The outbound delivery is only entered in the billing due list of the respective sales organization of the delivery company when the invoice is issued to the end customer.

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Elements of Internal Invoice

Intercompany Billing 90005734 Doc.type of order Doc. order Sales organization in order Delivering plant Delivering plant Delivering plant Delivering plant Billing type Billing type Payer Company code code Sales organization Distribution channel Division IV 22000 1000 1000 12 00

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n n

n n

In the standard version, billing type IV is used for the internal invoice. This is automatically proposed on the basis of the order. The payer of the internal invoice is usually the ordering company, which is like a customer with respect to the delivering company. For this you create a customer master record in the delivering company in which you enter the data relevant for billing. Afterwards, you assign the respective customer number to the sales organization of the ordering company in Customizing (field "Customer intercompany"). The company code in the internal invoice comes from the company code to which the delivering plant belongs. It is therefore the same as the delivering company. In Customizing, you assign the sales area required for creating the internal invoice to the delivering plant (fields Sales organization IV, Distribution channel IV, Division IV). Make sure that the same settings are also used for stock transfer activities.

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Customer Master Record for Payer

Payer Company code Sales organization Distr. channel Division

General data - Address - ... Company data - Reconciliation account - ...

22000 1000 1000 12 00

= Customer IV = Delivering company company = Sales organization IV = Distribution IV Distribution IV channel IV IV = Division
Sales area data - Currency - Invoice dates - Terms of payment - ...

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n n n

n n

The sales organization in the company code in which the sales order is generated takes on the role of the payer for intercompany billing. A customer master record must exist for the payer, in order that an intercompany invoice can be generated. This is assigned to the sales organization in the company code which delivers the order. A minimum of information must be contained in the customer master record. This information includes data that is relevant for the role of the payer (for example, address, reconciliation account). Also, you should store here the currency in which the intercompany billing is to take place. The company code data is created in the delivering company. The sales area data is entered in connection with the sales area for intercompany billing (sales organization IV, distribution channel IV, division IV).

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Conditions in Internal Invoice

Intercompany Billing 90005734
Item 10 Material: M-01 Quantity: 1 PC Net value: 1500 UNI

PR00

Price Price intercompany billing Cost Profit margin

2000 UNI

[Inactive]

IV01

1500 UNI

By reference to PI01

VPRS

1300 UNI

200 UNI

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n n

Condition type PR00 in the internal invoice displays the amount billed to the end customer. It serves as an information item and is inactive. The active price for internal billing is given by condition type IV01. It is determined by reference to condition type PI01 and therefore is the value that the delivering company has to receive from the ordering company. For the delivering company, condition type IV01 stands for the revenue. The costs are given by the moving average price of the material.

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Calculation Procedure in Internal Invoice

Document type for internal invoice

Delivering plant

Customer master (Customer IV)

Document Document procedure procedure

Sales organization Sales organization Distribution channel Distribution channel Division

Customer Customer procedure procedure

Calculation schema ICAA01

PR00 IV01 Price Price intercompany billing

VPRS Cost
SAP AG 1999

In the internal invoice, the system uses a pricing procedure (standard version ICAA01) different from that in the sales order and the customer billing documents. Utilizing this, condition type PI01 is replaced by condition type IV01. IV01, in contrast to PI01, is not marked as a statistical value. Through the reference to condition type PI01 defined in the definition of condition type IV01, you finally get the same condition values for both condition types. Here condition PI01 stands for the costs of the ordering company, and IV01 for the revenue of the delivering company. The use of different condition types for intercompany billing is necessary to ensure that data is transmitted correctly to the financial statement (component CO-PA). The determination of the pricing procedure in the internal invoice takes place in connection with the document procedure defined in the billing type, the sales area, and the customer pricing procedure stored in the customer master. With the sales area you refer to the sales area assigned to the delivering plant.

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5th Process Step: Post Invoice Receipt

Customer 2500
orders bills

delivers

Plant 1200

Sales organization 4 1000

bills

5 1 3

Company 1000

Company 2200
SAP AG 1999

Sales organization 2200

The invoice issued by the delivering company (company code) to the ordering company must be entered in the financial accounting of the ordering company code in order for payment to take place. This can be done manually. Cross-company sales processing can be set up so that the creation of an internal invoice in the delivering company automatically generates the creation of an incoming invoice in the ordering company. It is possible, for example, to have an agreement between the two parties involved that for invoices issued by sales organization 1000 to sales organization 2200 there is immediately a posting to the vendor account in the ordering company (company code 2200).

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Automatic Posting to Vendor Account

Invoice

RD00 Intercompany billing

90005734

Print-out

Manual invoice entry

Creditor 10000 RD04 1500

Automatic invoice receipt

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If the ordering company enters the incoming invoice manually, the delivering company can print out an invoice document with the help of output type RD00, which is then sent to the payer. If automatic invoice receipt has been agreed upon, you must use the SD output control functions to ensure that output type RD04 is found in internal billing. In the R/3 System, output determination procedure V40000, which includes this output type, is assigned to billing type IV. The automatic posting to the vendor account is initiated when output type RD04 is processed. The technical conversion is carried out using the EDI technology. The EDI output category INVOIC is used in the F1 variant. For specifications on the required system settings (partner profiles, and so on), refer to the Implementation Guide for Intercompany Billing. So that the payable can be posted in financial accounting of the ordering company, the delivering company must be created as a vendor (vendor 10000).

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Cross-Company Sales: Checklist for Customizing

l Assignment of a sales area to the delivering plant l Maintenance of assignment between sales organization, distribution channel, and supplying plant l Assignment of a customer to the sales organization l If necessary, entry of billing type for intercompany billing in the sales document l If necessary, maintenance of settings required for automatic posting to vendor account

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Cross-Company Sales: Unit Summary I

You are now able to: l Assign a sales area to a plant for the purpose of intercompany billing l Maintain an allowed supplying plant l Set up a cross-company sales process for certain materials l Explain when are you dealing with a cross-company sales activity l Explain the conditions in the sales order l Execute the sales transaction with the help of the outbound delivery
SAP AG 1999

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Cross-Company Sales: Unit Summary II

You are now able to: l Determine which company code the invoice is assigned to l Explain the origin of the sales area l Explain how the system determines the payer l Explain the conditions for intercompany billing l Initiate automatic postings to the vendor account

SAP AG 1999

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Cross-Company Sales Exercises

Unit: Topic: Cross-Company Sales Preparations

At the conclusion of this exercise, you will be able to: Assign a sales area to a plant for the purpose of intercompany billing Maintain an allowed supplying plant Set up a cross-company sales process for certain materials You are in a French subsidiary of an international group. Regarding particular materials that are seldom requested, you agreed with the German branch that it would deliver to your customers directly if you receive the corresponding purchase order. This way, you avoid the roundabout step of using your own warehouse.

1-1

Assign a sales area for intercompany billing to the delivering plant 12##. Sales organization for intercompany billing: 1000 Distribution channel for intercompany billing: 12 Division for intercompany billing: 00

1-2

Now, authorize the French sales organization to at least sell goods from plant 12## to end customers: 1-2-1 Which menu path should you follow to make the appropriate setting in Customizing? ____________________________________________________________ ____________________________________________________________ 1-2-2 If it has not been done, make the setting for the combination of sales organization 2200 and distribution channel 10.

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1-3

A material master record already exists for the material described in the above enterprise scenario. Enter plant 12## ("## Dresden") as the delivering plant, which will be relevant for sales procedures carried out by the French sales organization. Material: T-AUD## Sales organization: 2200 Distribution channel : 10

*1-4

Optional: What do you have to do so that the system does not determine another delivering plant for material T-AUD## in the customer order item? 1. ________________________________________________________________ 2. ________________________________________________________________

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Exercises
Unit: Topic: Cross-Company Sales Creating a Sales Order

At the conclusion of this exercise, you will be able to: Explain when are you dealing with a cross-company sales activity Explain the conditions in the sales order

You receive a purchase order for a material from your customer, which will be delivered directly to the customer by the German branch. In contrast to the purchase order of a "regular" material, the process of cross-company code sales will be triggered automatically.

2-1

You receive a purchase order for a material that is to be sent to your customer directly from the German branch. Purchase order Ship to Customer: 2500 PO number: ##-ic Requested delivery date: current date + 3 workdays Material T-AUD## Quantity 10 PC

Create a customer order for this. Order type: OR Sales organization: 2200 Distribution channel: 10 Division: 00

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2-1-1 Which plant is going to deliver the goods? ____________________________ Where does the system find the plant? ____________________________________ Save the sales order. Write down the document number. Sales order ##-ic: _________________ 2-1-2 Which two organizational elements are in different company codes if it is a cross-company code sales transaction? 1. _______________________________________________ 2. _______________________________________________ 2-1-3 Find the appropriate company codes in Customizing: 1. _______________ 2. _______________ 2-2 Display the sales order you created earlier. 2-2-1 Which condition type in the conditions view of the order item refers to the price that the receiving company has to pay to the delivering company? ______________ How much is it? __________________ What is the customers price? _____________________ *2-2-2 Optional: Does the amount assigned to the price for intercompany billing affect the net value? ______________ Explain why it is important: _____________________________ ____________________________________________________________

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Exercises
Unit: Topic: Cross-Company Sales Executing Shipping Activities

At the conclusion of this exercise, you will be able to: Execute the sales transaction with the help of the outbound delivery

In a shipping point assigned to the delivering plant, the goods to be shipped to the customer are prepared and then delivered. The fact that it is a cross-company code sales process does not have any effect on the transaction.

3-1

To carry out the shipping activities, you play the part of an employee at shipping point X0## related to plant 12##. Use the same standard functions for collective processing that you use for sales activities within the same company code in shipping. 3-1-1 Supply the order created above for purchase order ##-ic by processing the delivery due list for sales and purchase orders for shipping point X0##. Restrict your selection to shipping point X0##! Note: If your order does not appear in the worklist, set the delivery creation date to a later date in the selection screen. Write down the outbound delivery number: ______________________ 3-1-2 Initiate picking by creating a transfer order for the outbound delivery you created earlier. To do this, use the collective processing function (via outbound delivery monitor). Restrict your selection to shipping point X0##! 3-1-3 When the picking process is complete, you can post the goods issue to the outbound delivery you created earlier. The settings have been made in such a way that it is not necessary to confirm picking in advance (no obligation to confirm). To do this, use the collective processing function.

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Restrict your selection to shipping point X0##!

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Exercises
Unit: Topic: Cross-Company Sales Creating an Invoice for the End Customer

At the conclusion of this exercise, you will be able to: Determine which company code the invoice is assigned to

Once the goods issue for the outbound delivery to your French customer has been posted in the German branch, you can create the invoice to the customer.

4-1

Create the billing document this time without using collective processing - with explicit reference to the outbound delivery you created above. You are playing the part of an employee in the French sales organization. 4-1-1 To which company code and to which sales organization has the invoice been assigned? Company code: ______________________ Sales organization: ___________________ Is this the receiving or the delivering company code? ____________________________________________________________ 4-1-2 Save the billing document and write down the document number. Billing document: _______________________

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Exercises
Unit: Topic: Cross-Company Sales Creating an Internal Invoice

At the conclusion of this exercise, you will be able to: Determine which company code the internal invoice is assigned to Explain the origin of the sales area Explain how the system determines the payer Explain the conditions for intercompany billing The German branch creates an internal invoice for intercompany billing of goods delivered by the supplying company to the customer of the receiving company. The French branch acts as payer and invoice recipient.

5-1

Create the billing document this time without using collective processing - with explicit reference to the outbound delivery you created above. You are playing the part of an employee in the German sales organization. 5-1-1 To which company code has the internal invoice been assigned? Company code: ______________________ Is this the receiving or the supplying company? ____________________________________________________________ Which factor does it depend on? __________________________________________________ 5-1-2 Save the internal invoice and write down the document number. Internal invoice: _______________________

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5-2

Since the internal invoice has been created by a German sales organization, the sales area entered in the internal invoice differs from the one entered in the customer billing document. 5-2-1 Determine the sales area to which the internal invoice has been assigned. Sales organization: ___________________ Distribution channel: ___________________ Division: __________________ 5-2-2 This sales area is used for intercompany billing. Which factor does this depend on? __________________________________ 5-2-3 Where in Customizing does the appropriate assignment take place? ____________________________________________________________ This setting is essential for cross-company code processes. Who made this setting? __________________________________________

5-3

In the internal invoice, a business partner appears as a payer who has not been involved in the business transaction up to this point. 5-3-1 Determine the payer of the internal invoice: __________________________ 5-3-2 Which factor does this payer depend on? _______________________________________ 5-3-3 Which menu path did you follow to find this setting in the system? ____________________________________________________________ ____________________________________________________________

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5-4

Display the customer master record for the payer centrally. 5-4-1 Which company code and which sales area are relevant in this context? Company code: ________________ Sales organization: __________________ Distribution channel: _____________ Division: _____________ 5-4-2 Which currency is used to bill the customer according to his master data and which terms of payment have been defined? Currency: __________________ Terms of payment: ____________________

5-5

Display the condition screen for the item in the internal invoice. 5-5-1 Which condition type reflects the price the receiving company has to pay to the delivering company? ______________ *5-5-2 Optional: To which price does condition type PR00 in the internal invoice refer? ____________________________________________________________ Does this amount assigned to this condition type contribute to the net value? _____________________

*5-6

Optional: 5-6-1 Which billing document type does the internal invoice have? _______________ 5-6-2 In which Customizing object has the proposed billing type for intercompany billing been stored? ______________________________________ Find this Customizing object.

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Exercises
Unit: Topic: Cross-Company Sales Posting Invoice Receipt

At the conclusion of this exercise, you will be able to: Initiate automatic postings to the vendor account

The two companies involved have agreed that the invoices from the German sales organization to the French sales organization are automatically posted as invoice receipts in the accounting department of the French company. This means that you do not have to enter the invoice manually.

6-1

Having made the appropriate setting, automatic posting to the vendors account can take place directly when you save the internal invoice. However, if it is not necessary for the posting to take place immediately, it may not be a good idea since it may cause an unnecessary system load. In our case, it has therefore been decided to initiate automatic credit-side posting for the existing internal invoices collectively. This could, for example, be carried out using a background program. 6-1-1 Check the internal invoice to see if the system determined output type RD04 and if the output has already been processed. ____________________________________________________________ 6-1-2 Process output RD04 (given in your internal invoice). Output type: RD04 Billing document: number of the internal invoice you wrote down above

Note: Process the output only for the internal invoice you created!

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*6-2

Optional: Ensure that the accounting document for posting to the vendors account exists in the receiving company. Go to the document display in accounts payable. What appears in the Reference field?

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Cross-Company Sales Solutions

Unit: Topic: Cross-Company Sales Preparations

1-1

IMG: Sales and Distribution Billing Intercompany Billing Assign Organizational Units By Plant Maintain for plant 12##: Sales organization for intercompany billing: 1000 Distribution channel for intercompany billing: 12 Division for intercompany billing: 00

1-2 1-2-1 IMG: Enterprise structure Assignment Sales and distribution Assign sales organization distribution channel - plant 1-2-2 Position the cursor on the line with sales organization 2200 and distribution channel 10 and choose Assign. Select plant 12##. The message informs you of the cross-company code character. 1-3 Logistics Sales and Distribution Master Data Products Material Trading Goods Change Material: T-AUD## Choose Sales:Sales Org. Data 1. Sales organization: 2200 Distribution channel: 10 Delivering plant: 12##

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*1-4

Optional: 1. If there is a customer material info record, you must not maintain a different supplying plant in this record. 2. The customer master for sales organization 2200 and distribution channel 10 must not contain a deviating delivering plant. During the determination of the supplying plant in the order item, the system accesses the master data in the following sequence: 1. Customer material info 2. Customer master 3. Material master

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Solutions
Unit: Topic: Cross-Company Sales Creating a Sales Order

2-1

Logistics Sales and Distribution Sales Order Create Order type: OR Sales organization: 2200 Distribution channel: 10 Division: 00 Ship-to party: 2500 PO number: ##-ic Requested delivery date: current date + 3 workdays Material: T-AUD## Quantity: 10 PC 2-1-1 Scroll over, if necessary, until you reach the right-hand side in the item in the Sales overview screen. Plant: 12## Since there is no customer material info record and since the supplying plant has not been maintained in the customer master, the system determined the plant on the basis of the material master entry you made above. 2-1-2 1. Sales organization in which the customer order is stored 2. Supplying plant 2-1-3 1. IMG: Enterprise Structure Assignment Sales and Distribution Assign sales organization to company code Company code 2200 - Sales organization 2200 2. IMG: Enterprise structure Assignment Logistics - General Assign plant to company code Company code 1000 - plant 12##

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2-2

Logistics Sales and Distribution Sales Order Display 2-2-1 Select the item in the sales order, and choose Item conditions.. Condition type: PI01 Rate: 4000 FRF per PC Condition type PR00: Rate: 5320 FRF per PC *2-2-2 Optional: Select Condition Details for condition type PI01: Since the condition is marked as Statistical, it does not affect the net value. This is appropriate since the price for intercompany billing should not have the effect that the amount to be paid by the customer is increased or decreased.

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Solutions
Unit: Topic: Cross-Company Sales Executing Shipping Activities

3-1 3-1-1 Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Collective Processing of Documents Due for Delivery Sales orders and Purchase Orders Shipping point/receiving pt: X0## Choose Execute. If your order does not appear in the worklist, set the delivery creation date to a later date in the selection screen. In the list, select the line which refers to the sales order your created above. Choose Create delivery in background. Then choose Log for Delivery creation, select the entry and choose Documents, in order to determine the outbound deliver number. 3-1-2 Logistics Sales and Distribution Shipping and Transportation Picking Create Transfer Order Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter. 3-1-3 Logistics Sales and Distribution Shipping and Transportation Post Goods Issue Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Choose Execute. Select the delivery you created above in the goods issue for outbound deliveries list and then select Post goods issue. Confirm the dialog box with Enter.

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Solutions
Unit: Topic: Cross-Company Sales Creating an Invoice for the End Customer

4-1

Logistics Sales and Distribution Billing Billing Document Create Document: Document number of the outbound delivery you wrote down earlier Choose Execute. 4-1-1 Choose Display Doc. Header details. Company code: 2200 Sales organization: 2200 Since this is the invoice for the end customer, it is assigned to the company code in which the order has been entered (that is, the receiving company). 4-1-2 Choose Save.

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Solutions
Unit: Topic: Cross-Company Sales Creating an Internal Invoice

5-1

Logistics Sales and Distribution Billing Billing Document Create Document: Document number of the outbound delivery you wrote down earlier Choose Execute. 5-1-1 Choose Display Doc. Header details. Company code: 1000 The supplying company creates the internal invoice which is directed to the receiving company. Therefore, the company code that is displayed is that of the supplying company. The supplying company corresponds to the company code that has been assigned to the supplying plant. 5-1-2 Choose Save.

5-2

Logistics Sales and distribution Billing Billing document Display 5-2-1 Choose Display Doc. Header details. Sales organization: 1000 Distr. channel: 12 Division: 00 5-2-2 The sales area necessary for intercompany billing depends on the delivering plant. 5-2-3 IMG: Sales and Distribution Billing Intercompany Billing Assign Organizational Units by Plant You have maintained the entries for plant 12## yourself in a preceding exercise.

5-3 5-3-1 GoTo Header Header Partners Payer in the internal invoice: 22000 5-3-2 The payer in the internal invoice generally corresponds to the receiving company, that is, the company in which the customer order has been created. It depends on the sales organization that enters the order.
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5-3-3 IMG: Sales and Distribution Billing Intercompany Billing Define Internal Customer Number by Sales Organization Sales organization 2200 - customer number for intercompany billing 22000 5-4 Logistics Sales and Distribution Master Data Business Partners Customer Display Complete Customer: 22000 5-4-1 The system accesses the customer master for the payer with the supplying company code and the sales area which is assigned to the delivering plant. Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 5-4-2 Choose Sales area data and then the Sales and Billing document tab pages. Currency: UNI Terms of payment: ZB01 5-5 Logistics Sales and Distribution Billing Billing Document Display Billing document: Document number of the internal invoice you wrote down earlier Select the item in the internal invoice and select Item price conditions. 5-5-1 Condition type: IV01 The given condition value corresponds to the net value of the internal invoice. *5-5-2 Optional: Condition type PR00 refers to the price relevant for the customer. The condition value of PR00 does not contribute to the net value since the condition is inactive due to the following price.

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*5-6

Optional: 5-6-1 See title line in document. Billing document type: intercompany billing (IV) 5-6-2 The billing type the system uses automatically for internal invoices is stored in the sales document type. IMG: Sales and Distribution Sales Sales Documents Sales Document Header Define Sales Document Types Choose Details for sales document type OR. Billing type for intercompany billing: IV

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Solutions
Unit: Topic: Cross-Company Sales Posting Invoice Receipt

6-1 6-1-1 Logistics Sales and Distribution Billing Billing Document Display Go To Header Output The output type RD04 was automatically created by the system on account of the existing settings in output determination, and has not yet been processed. 6-1-2 Logistics Sales and Distribution Billing Output Issue Billing Documents Output type: RD04 Billing document: number you wrote down above for the internal invoice Select Intercompany billing. Sales organization: 1000 Choose Execute Choose the relevant line and then choose Process. *6-2 Optional: Accounting Financial Accounting Accounts Payable Document Display Select List and proceed as follows: Company code: 2200 Entry date: Current date Select Own documents only. Select Execute The system stored the document number of the internal invoice in the Reference field.

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Intra-company Stock Transfer

Contents:
l Creating a Stock Transport Order l Creating a Replenishment Delivery l Executing Picking and Posting Goods Issue

4
SAP AG 1999

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Intra-company Stock Transfer: Unit Objectives

At the conclusion of this unit, you will be able to: l Set up the stock transport order procedure with LE outbound delivery for certain plants l Decide between the one-step and the two-step procedure l Initiate the process for intra-company stock transfer with the help of a stock transport order l Understand the meaning of a goods recipient master record assigned to a plant l Explain how the system determines important outbound delivery parameters l Close the one-step procedure for stock transfer with the goods issue posting l Explain which movement type is used l Query the status of the stock transfer procedure
SAP AG 1999

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Intercompany Stock Transfer: Overview Diagram

Customer delivers Vendor Customer delivers Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

SAP AG 1999

Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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Intra-company Stock Transfer: Business Scenario

l Your company has one central warehouse and several decentralized warehouses that supply external warehouses and service operators with spare parts. These spare parts are acquired by means of stock transfers from the central warehouse. l To simplify the process, it should be possible to have the goods receipt posted at the receiving warehouse automatically when the goods issue is posted.

SAP AG 1999

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Stock Transfer Procedure

Stock transfer from one plant to another

Through stock transfer posting

Through Through stock transport order order

Without LE outbound del . del

With LE outbound del . del

With LE outbnd del. and SD billing

Intra-company
SAP AG 1999

Cross-company

n n

The stock transfer between 2 plants can be executed using different procedures. The procedures in which a stock transfer posting is executed solely use the MM Inventory Management component. In contrast to these, you have procedures where the stock transfer process is initiated automatically when a purchase order is entered in the MM Purchasing component (stock transport order). If you are working with the stock transfer procedure with LE outbound delivery, this has the advantage that the shipping activities can also be processed with the R/3 System (picking, packing, printing the delivery note, and so on). If you wish to use R/3 shipping functions for stock transfer processing, use the procedure For stock transport order with LE outbound delivery for intra-company activities and the procedure For stock transport order with LE outbound delivery and SD billing for cross-company stock transfers.

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Process for Intra-company Stock Transfer in OneStep Procedure

Plant 1200
2 3

orders

delivers

Plant 1400 Company 1000

SAP AG 1999

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The process described in this unit uses the procedure for stock transport order with LE outbound delivery, which is provided for intra-company stock transfers. First we enter a stock transport order for goods for plant 1400, possibly also with reference to a purchase requisition. In this order, plant 1400 orders goods from plant 1200. Within this stock transfer procedure, plant 1400 is the receiving plant. When the purchase order is due for shipment, you create an outbound delivery. You can have this delivery packed or assign it to an outbound shipment. As soon as the shipping procedure is finished, you post the goods issue. The goods are now transferred from plant 1200 to plant 1400. Plant 1200 is termed as the delivering or supplying plant. If, as in this case, you are using the one-step procedure, the goods receipt does not have to be posted in the receiving plant when the goods arrive there.

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Two-Step Stock Transfer

Purch. order
1 2

Plant 1400

Plant 1200

Unrestricteduse stock
B B A B C

Goods receipt for PO

Transit provided from vendor

B B A B C

Unrestricteduse stock Goods issue

B B B A C

SAP AG 1999

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In the two-step procedure for a stock transport order with shipping processing, a stock in transit is created when the goods issue is posted from the sending plant. This enables you to monitor the stocks that are being transferred. You can display the stocks in the stock overview for the material. As soon as the goods arrive, the goods receipt is posted in the receiving plant. A transition takes place - depending on your choice - to the unrestricted-use stock, to the blocked stock or to the stock in quality inspection. The stock in transit is evaluated, but not available. The stock is managed at the level of the receiving plant. The goods are withdrawn from the unrestricted-use stock.

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One-Step Procedure

Purch. order
1 2

Plant 1400

Plant 1200

Unrestricteduse stock
B B B A C

Automatic goods receipt for purch. order Goods issue

Unrestricteduse stock
B B B A C

SAP AG 1999

n n

n n n n

As of Release 4.0, there is a one-step procedure available -- in addition to the two-step procedure -for stock transfer procedures with a stock transport order and shipping processing. In the one-step procedure, no stock in transit is created. The stock is posted at the time of goods issue directly into the unrestricted-use stock in the receiving plant. The goods receipt posting is not required in the receiving plant. The one-step procedure can be appropriate if the plants involved are not far away from each other, or if the receiving plant does not have a technical link-up. You define in Customizing whether you wish to work with the one-step or the two-step procedure. The setting is made in connection with the delivering plant and the receiving plant. If you are using the stock transfer posting as the stock transfer procedure, you also have the one-step or the two-step procedure at your disposal. As a rule, you can only post stock transfers in one step from one plant to another with unrestricteduse stock that is posted from the delivering plant to the receiving plant's unrestricted-use stock.

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1st Process Step: Create a Stock Transport Order

Plant 1200
2 3

orders

delivers

Plant 1400 Company 1000

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The stock transfer is initiated when you create a stock transport order with document type UB (stock transport order). You enter the delivering plant as well as the receiving plant. The system uses item category U ("stock transfer"). The items cannot be assigned to accounts if the goods are ordered for consumption and not for the warehouse. If the material in the receiving plant is not evaluated, it is not possible to enter an account assignment. The goods can only be assigned for the warehouse. If you are working with the one-step procedure, you must specify the stock location in the receiving plant already in the purchase order.

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Stock Transport Order and Requirements Planning

Receiving Plant

Delivering Plant

User depart.

Rqmnts planning

Requirements planning

Stock transport order Purchase requisition

Order type Item category UB U

Acct.assgmt.cat. _
SAP AG 1999

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The stock transport order is included in requirements planning both in the receiving as well as in the delivering plant. Here the goods receipt in the receiving plant and the goods issue in the delivering plant are preplanned. The stock transfer activity can also be initiated by a purchase requisition or a stock transport scheduling agreement. The purchase requisition can be created in the user department or by requirements planning. For the purchase requisition you use document type NB ("purchase requisition") and item category U ("stock transfer"). You use the stock transport scheduling agreement if stock transfers are to take place at regular intervals, or if you wish to schedule the delivery deadlines of a stock transfer exactly. In addition, you can set your Customizing to define whether an availability check is executed in the delivering plant when a purchase order is created.

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2nd Process Step: Create a Replenishment Delivery

Plant 1200
2 3

orders

delivers

Plant 1400 Company 1000

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To supply the materials ordered by plant 1400, an outbound delivery is first created. This is referred to, in the case of stock transfer activity, as a replenishment delivery". Replenishment deliveries are created solely using the collective processing run for deliveries. In the selection screen, you can extend your selection to include purchase orders. The reference document of the replenishment delivery is the stock transport order. The document flow of the outbound delivery shows the referenced purchase order. The outbound delivery is created and processed in the shipping point responsible for the respective stock transfer activity. This shipping point must be assigned in Customizing to the delivering plant.

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Customer Master Record for Ship-to Party

Receiving plant

Ship-to party Sales organization Distr. channel Division

General data - Address - Transportation zone - ...

14000 1000 12 00

= Customer no. plant = Saler organization IV organization = Distribution IV channel channel IVIV = Division Sales area data - Shipping condition - ...

Delivering plant
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n n

n n

The ship-to party in the replenishment delivery stands for the receiving plant. In order for the stock transfer procedure with LE outbound delivery to take place, a customer master record must exist. The system derives the address as well as other information important for shipping, such as the transportation zone and the shipping conditions, from this master record. The master record is created in the sales area that corresponds to the organizational units, distribution channel and division for intra-company billing. These sales organizations are assigned to the delivering plant in Customizing and are valid for cross-company sales as well as for cross-company stock transfers. The company code data does not need to be entered as long as the respective plant is the receiving plant for intra-company stock transfers only. The customer number is then assigned to the receiving plant in Customizing.

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Determination of Outbound Delivery Parameters

Order type UB

Delivery type NL
Delivering plant 1200

Delivery type NL Item category grp NORM Usage V

Item category NLN

Delivering plant 1200 Shipping condition 01 Loading group 0002

SAP AG 1999

Shipping point 1200

n n n n

n n n

Since the replenishment delivery does not refer to a sales order, the system must determine important information about the outbound delivery parameters using other means. The delivery type to be used is derived from the document type of the stock transport order and the delivering plant. Here you assign the delivery type NL (replenishment delivery") in Customizing. If you do not assign a delivery type, stock transfer activities that are initiated by a stock transport order are executed without outbound delivery (different stock transfer procedure). The item category is derived from the item category search of the delivery, whereby the delivery type, the item category group of the material, and perhaps also the item category of the higher level item play a role here. Usage V serves as an internal indicator. In standard Customizing, item category NLN is assigned. With the item category, for example, you can customize how picking must take place. The shipping point is determined in connection with the delivering plant, the shipping condition of the customer master record belonging to the receiving plant, and the loading group of the material. In the delivering plant, the shipping data (view Sales & Distrib.: General/Plant data" in the material master) and the accounting data for the material must be maintained. The purchasing and accounting data from the material master are required for the receiving plant. Also, sales area data of the sales organizational units for intercompang billing must be stored for the material.

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3rd Process Step: Execute Picking and Post Goods Issue

Plant 1200
2 3

orders

delivers

Plant 1400 Company 1000

SAP AG 1999

n n n

The replenishment delivery is processed in the usual manner in shipping, that is, just like an outbound delivery that was created with reference to a sales order. Here you include the replenishment deliveries in your selection if you are using a special number range for them. You also post the goods issue in the LE Shipping application. There you refer to the replenishment delivery. In procedures that do not use shipping processing, you post the goods issue in MM Inventory Management.

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Effects of Goods Issue Posting (One-Step Procedure)

Supplying Plant Goods issue with reference to replenishment deliv. Receiving Plant

Unrestricted-use stock

Unrestricted-use + stock Open order qty -

Material document Accounting document Material master Purch.order qty Stock value (moving price)
SAP AG 1999

Stock transport order Purch.order history

During the goods issue posting in MM Inventory Management, the system creates a material document. This means that the quantity is deducted in the delivering plant. At the same time, the quantity is posted to the unrestricted-use stock of the receiving plant if you are using the one-step procedure. The order stock is then reduced by the stock putaway. However, if you are working with the two-step procedure, the system creates a stock in transit in the receiving plant. At the time of goods receipt, this stock is reduced again. For technical reasons, this movement of stock in transit appears also in the material document for the one-step procedure. If the plants belong to different company codes, an accounting document is created parallel to the material document. The stock transfer is evaluated with the valuation price of the material in the delivering plant. As a result, there can be a price change in the receiving plant. A purchase order history record is automatically created in purchasing for the replenishment delivery as well as for the closing goods issue posting, as in this case. In this way, the receiving and the delivering plants can follow up the actual stock transfer procedure. In the two-step procedure, the process is closed by a goods receipt posting. Here, too, a purchase order history record is automatically created.

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Movement Types for Stock Transfer with LE Delivery

Which movement type for which procedure?

Intercompany One-step procedure Two-step procedure

SAP AG 1999

Cross-company

647 641

645 643

n n

The overview shows which movement types are used in the standard version for the individual stock transfer procedures with LE outbound delivery. So that you can post the goods issue from the outbound delivery, the respective movement types for one-step and two-step procedures must be assigned to schedule line category NN (for intercompany stock transfers) and to schedule line category NC (for cross-company stock transfers). During the stock transfer procedure, the system determines the schedule line category using the item category in the replenishment delivery and the MRP type in the material master.

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Intercompany Stock Transfer: Checklist for Customizing

l Assignment of a sales area to the delivering plant l Assignment of a customer to the receiving plant l Assignment of the delivery type for the replenishment delivery l Decision on one-step or two-step procedure l Shipping point determination, if required If you are implementing user-defined objects in sales document control: l Maintenance of item category determination in the delivery l Entry of the movement type in the schedule line category
SAP AG 1999

l Maintenance of the schedule line category determination

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Intra-company Stock Transfer: Unit Summary

You are now able to: l Set up the stock transport order procedure with LE outbound delivery for certain plants l Decide between the one-step and the two-step procedure l Initiate the process for intra-company stock transfer with the help of a stock transport order l Understand the meaning of a goods recipient master record assigned to a plant l Explain how the system determines important outbound delivery parameters l Close the one-step procedure for stock transfer with the goods issue posting l Explain which movement type is used l Query the status of the stock transfer procedure
SAP AG 1999

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Intercompany Stock Transfer Exercises

Unit: Topic:

Intra-company Stock Transfer Preparations

At the conclusion of this exercise, you will be able to: Set up the stock transport order procedure with LE outbound delivery for certain plants Decide between the one-step and the two-step procedure At your companys Stuttgart location, outbound deliveries only take place within the scope of repairs. The spare parts are stored in a small warehouse, which procures its stocks by stock transfer from the central warehouse in Dresden. The shipping process for these replenishment deliveries shall in principle take place as with customer deliveries. The system is to support picking, packaging, printout of delivery notes, and so on. Since both locations belong to the same company and since you can rely on the shipments, you do not want the goods receipt posting in the Stuttgart plant to take place in a separate step. 1-1 Your company decides to introduce intra-company code stock transfers with stock transport orders and to use the LE outbound delivery for the execution of the delivery process. 1-1-1 Where in Customizing can you make the setting for creation of an LE outbound delivery for stock transfers via stock transport order? ____________________________________________________________ ____________________________________________________________ Which field is decisive in this context? _________________________________

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1-1-2 Make an entry that determines the delivery type used for replenishment delivery in supplying plant 12##. Purchasing document type: UB Supplying plant: 12## Delivery type: NL Checking rule: RP 1-2 In addition, make the appropriate settings so that the system uses the one-step procedure for stock transfers with supplying plant 12## and receiving plant 14##. Supplying plant: 12## Plant: 14## Purchasing document type: UB 1-3 For the stock transfer, the receiving plant is the ship-to party. To do this, a customer master record is necessary. During the stock transfer process, the system copies various shipping data, such as the address of the ship-to party, from the corresponding customer master data. Create the customer master record which represents plant 14##.

Please note that you do not necessarily have to enter company code data to ensure that the intra-company stock transfer process works.

Account group: customer belonging to group Customer: 140## Sales organization: 1000 Distribution channel: 12 Division: 00 Reference Customer: 14000 Sales organization: 1000 Distribution channel: 12 Division: 00 Name: Plant 14## Stuttgart Service Search term 1/2: 14## Street/house number: Haeberle Weg 2 Postal code/city: 70000 Stuttgart Region: 08 Transportation zone: D000070000 Trading Partner: 1000 VAT Reg. number: DE123456789

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1-4

Assign customer number 140## to receiving plant 14##.

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Exercises
Unit: Topic: Intra-company Stock Transfer Creating a Stock Transport Order

At the conclusion of this exercise, you will be able to: Initiate the process for intra-company stock transfer with the help of a stock transport order

The stock of a particular spare part is running low. Request a replenishment delivery from the central warehouse in Dresden.

2-1

Create a stock transport order for 300 M of material T-AUE## . Supplying plant: 12## Document type: UB Purchasing organization: 1000 Purchasing group: 008 Company code: 1000 Delivery date: current date + 2 weeks Plant: 14## Storage location: 0001 Which item category does the system use? _____________________________ Write down the PO number: ___________________________

2-2

Go to the stock overview for material T-AUE##. 2-2-1 How much unrestricted-use stock does each plant contain? Plant 12##: ____________________ Plant 14l##: ____________________ 2-2-2 Under which stock type does the system store the released quantity in plant 12##? ______________________________________

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Exercises
Unit: Topic: Intra-company Stock Transfer Creating a Replenishment Delivery

At the conclusion of this exercise, you will be able to: Understand the meaning of a goods recipient master record assigned to a plant Explain how the system determines important outbound delivery parameters The replenishment delivery is being prepared at one of the shipping points assigned to the central warehouse in Dresden. The address of the ship-to party corresponds with one of the receiving plants unloading points. To facilitate creation of the replenishment delivery and the further shipping processing, the system should not flag the delivery as being intended for an external business partner. 3-1 To carry out the shipping activities, you play the part of an employee at shipping point X0## related to plant 12##. Use the collective processing function to create the replenishment delivery. 3-1-1 Supply the stock transport order created above by processing the deliveries due list for shipping point X0##. Restrict your selection to shipping point X0##! Delivery creation date: to current date + 2 weeks Write down the outbound delivery number: ______________________ 3-1-2 Who is the ship-to party in the outbound delivery document? _____________________________ 3-1-3 To which address will the replenishment delivery be sent? ___________________________________________ ___________________________________________ 3-2 On the basis of which assignment does the system determine the ship-to party in the replenishment delivery? __________________________________________________________________

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3-3

Find the delivery type and the item category in the replenishment delivery: Delivery type: ______________________ Item category: ___________________ 3-3-1 Which factor does the delivery type depend on, in your particular case? 1. __________________________ 2. __________________________ 3-3-2 Find the setting in the system. Menu path: ___________________________________________________ 3-3-3 Which settings would you have had to make for this topic during the system preparations, if you had not intended to use the LE outbound delivery for stock transfer? ____________________________________________________________

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Exercises
Unit: Topic: Intra-company Stock Transfer Executing Picking and Posting Goods Issue

At the conclusion of this exercise, you will be able to: Close the one-step procedure for stock transfer with the goods issue posting Explain which movement type is used Query the status of the stock transfer procedure The shipping activities - picking, packing, printout of outbound delivery notes, and so on - are to be carried out on the basis of the delivery. Since the system uses the one-step procedure, goods issue posting is to trigger a goods receipt posting automatically.

4-1

Initiate picking by creating a transfer order for the replenishment delivery you created earlier. Depending on the menu path you use to create the transfer order, you may have to enter the warehouse number (012).

4-2

Post the goods issue for the above replenishment delivery using the one-step procedure or collective processing. Return to the stock overview for material T-AUE##. 4-3-1 How much unrestricted-use stock does each plant contain? Plant 12##: ____________________ Plant 14##: ____________________ 4-3-2 Describe how the situation would be different if you used the two-step procedure. In which stock type for which plant would the entry exist? ______________________________________________________

4-3

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4-4

Call up the document flow for your replenishment delivery. 4-4-1 Display the material document from the document flow. 4-4-2 Which movement types has the system used? For goods issue: __________________ For goods receipt: __________________

4-5

In the purchasing department of the receiving plant, there is an inquiry on the progress of the stock transfer procedure. Display the purchase order history.

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Intercompany Stock Transfer Solutions

Unit: Topic:

Intra-company Stock Transfer Preparations

1-1 1-1-1 IMG: Materials Management Invoice Verification Purchasing Purchase Order Set Up Stock Transport Order Select Assign delivery type/checking. Whether or not you assigned a delivery type to the combination of purchasing document type and supplying plant is the decisive factor here. If you have done so, the system uses the LE outbound delivery for the shipping process. 1-1-2 Select New entries. Purchasing document type: UB Supplying plant: 12## Delivery type: NL Checking rule: RP Select the Ship.sch. field. 1-2 IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Purchasing document type and then New entries. Supplying plant: 12## Plant: 14## Purchasing document type: UB Select the One-step field. 1-3 Logistics Sales and Distribution Master Data Business partners Customer Create Sales and Distribution Account group: customer belonging to group Customer: 140## Sales area Sales organization: 1000 Distribution channel: 12 Division: 00 Reference
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Customer: 14000 Sales organization: 1000 Distribution channel: 12 Division: 00

Address tab page: Name: plant 14## Stuttgart Service Search term 1/2: 14## Street/house number: Haeberle Weg 2 Postal code/town: 70000 Stuttgart Region: 08 Transportation zone: D000070000 Control data tab page: Trading Partner: 1000 VAT Reg. number: DE123456789 Otherwise, leave the default values. 1-4 IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Select Plant and then Detail for plant 14l##. Customer number - plant: 140##

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Solutions
Unit: Topic: Intra-company Stock Transfer Creating a Stock Transport Order

2-1

Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known Choose the Stock transport order purchase order type. Supplying plant: 12## Document date: current date Choose Expand at Header and then the Org.data tab page. Purchasing organization: 1000 Purchasing group: 008 Company code: 1000 Choose Expand at Item overview. Material: T-AUE## PO quantity: 300 M Deliv. date: current date + 2 weeks Plant: 14## Storage location: 0001 The System uses the item category stock transfer. The system will not accept a different item category. Choose Save.

2-2

Logistics Materials Management Inventory Management Environment Stock Stock Overview Material: T-AUE## Delete the default entries for Plant and Storage location. Choose Execute. 2-2-1 Plant 12##: 2000 M Plant 14##:50 M 2-2-2 Double-click on the line for plant 12##. The quantity released by stock transport order in plant 12## is listed under the StckTrsptOrderRel stock type:- 300 M

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Solutions
Unit: Topic: Intra-company Stock Transfer Creating a Replenishment Delivery

3-1 3-1-1 Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Collective Processing of Documents Due for Delivery Sales Orders and Purchase Orders Shipping point/receiving pt: X0## Delivery creation date: to current date + 2 weeks Choose Execute. In the list, select the line which refers to the purchase order your created above. Choose Create delivery in background. Then choose Log for Delivery creation, select the entry and choose Documents, in order to determine the outbound delivery number. 3-1-2 Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display Ship-to party: 140## 3-1-3 The system copies the shipping address of the replenishment delivery from the customer master record of the ship-to party. Choose Address next to the ship-to party field. 3-2 At the beginning of the exercises for this unit, you made the following settings: IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Plant and then Details for plant 14##. Customer number. - plant: 140##

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3-3

Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display Choose Header Details and then the Administration tab page. Delivery type: NL (replenishment dlv.) Go back to Item overview. Item category NLN (standard item without order) 3-3-1 The delivery type used for the example for stock transfer within company code depends on the following: 1. Purchasing document type UB 2. Supplying plant 12## 3-3-2 IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Assign delivery type/checking. Purchasing document type UB supplying plant 12##: NL 3-3-3 You do not assign a delivery type to the combination of purchasing document type and supplying plant.

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Solutions
Unit: Topic: Intra-company Stock Transfer Executing Picking and Posting Goods Issue

4-1

Logistics Sales and Distribution Shipping and Transportation Picking Create Transfer Order Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Picking date: to current date + 2 weeks Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

4-2

Logistics Sales and Distribution Shipping and Transportation Post Goods Issue Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Planned goods movement date: to current date + 2 weeks Choose Execute. Select the delivery you created above in the deliveries list for goods issue and then choose Post goods issue. Confirm the dialog box with Enter.

4-3

Logistics Materials management Inventory management Environment Stock Stock Overview Material: T-AUE## Delete the default entries - if there are any - for Plant and Storage location. Choose Execute. 4-3-1 Plant 12##: 1700 M Plant 14##:350 M 4-3-2 If you were to use the two-step procedure, the unrestricted-use stocks would be in: Plant 12##: 1700 M Plant 14##: 50 M The Stock in transit stock type would have an entry of 300 M in plant 14##

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since the posting would be made to the stock in transit of the receiving plant.

4-4

Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display Environment Document flow 4-4-1 Position the cursor on the material document (TF to stck in transit) in the document flow and choose Display document. 4-4-2 Movement type for goods issue: 647 Movement type for goods receipt: 101

4-5

Logistics Materials Management Purchasing Purchase Order Display You may first have to choose Expand at Item. Choose the Purchase order history tab page. The outbound delivery document is displayed in the purchase order history, along with the material document.

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Cross-Company Stock Transfer

Contents:
l Creating a Stock Transport Order l Creating a Replenishment Delivery l Executing Picking and Posting Goods Issue l Creating an Internal Invoice l Posting goods receipt l Posting invoice receipt for a purchase order

5
SAP AG 1999

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Cross-Company Stock Transfer: Unit Objectives I

At the conclusion of this unit, you will be able to: l Set up the procedure for stock transport orders with LE outbound delivery and SD billing for certain plants in different company codes l Trigger the cross-company code stock transfer process with the help of a standard purchase order l Give reasons for the choice of delivery type l List the effects of the goods issue posting in inventory management l Explain the determination of the movement type

SAP AG 1999

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Cross-Company Stock Transfer: Unit Objectives II

At the conclusion of this unit, you will be able to: l Determine to which company code the internal invoice is assigned l Explain the origin of the sales area l Explain how the system determines the payer l Post goods issue for a replenishment delivery l Post the invoice receipt in invoice verification

SAP AG 1999

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Cross-Company Stock Transfer: Overview Diagram

Customer delivers Vendor Customer delivers Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

SAP AG 1999

Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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Cross-Company Stock Transfer: Business Scenario

l Your company acquires materials through stock transfers from stocks of other companies belonging to the same corporate group. l It should be possible to post goods issue and goods receipt in separate worksteps if both subsidiaries involved are too far apart, making an immediate goods receipt posting unsuitable.

SAP AG 1999

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Process for Cross-Company Stock Transfer (TwoStep Procedure)

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n

n n

n n n

In contrast to the intra-company stock transfer, the two plants in the process described in this unit belong to different company codes. At the beginning of the unit "Intra-company Stock Transfer" we described the different stock transfer procedures. Here in this unit we will describe the procedure "with LE outbound delivery and SD billing". This procedure is used for cross-company stock transfers if R/3 shipping and billing functions are to be used. In the receiving plant (plant 2200), a purchase order is created first. As soon as the purchase order is due for shipping, an outbound delivery is created. As soon as the shipping activities have been executed, the goods issue is posted in the delivering plant (plant 1200). Then the goods are shipped between plant 1200 and plant 2200. Finally, the internal invoice is created in sales organization 1000, that is, in the delivering company. Intercompany billing between the two company codes can now take place. Since the two-step procedure is to be used, the goods receipt is posted as soon as the goods are received in the receiving plant. When the invoice is received, it can be entered in the logistics invoice verification department of the receiving company.

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1st Process Step: Create a Stock Transport Order

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n

n n

The stock transfer procedure begins with the entry of a purchase order in the purchasing department of the receiving plant. If required, there is a reference to a purchase requisition or a delivery plan. In the standard version, you use the order type NB ("standard purchase order"). In Customizing you can define whether a warning or error message is issued if an unsuitable order type (for example, UB) is entered. The stock transport purchase order is included in the planning activities of the delivering and the receiving plants. Depending on the system setting, it is possible to have an availability check run in the delivering plant to check whether or not the requested goods can be delivered on time.

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Order Types for Stock Transport Order

Plant 1200 Purchase order Deliver .plant Deliver Order type Order Item category Plant 1200 UB U 1400 Purchase order Vendor Order type Item category Plant 10000 NB _ 2200

Intra-company
SAP AG 1999

Cross-company

In contrast to the intra-company stock transfer, order type UB is not used for the cross-company stock transfer with outbound delivery and billing. You create a standard order (order type NB) with item category blank ("Normal"). For the intra-company stock transfer, you use item category U ("stock transfer"). When you create the stock transport purchase order with order type NB, you specify a vendor. A plant is assigned to this vendor in the vendor master rccord. This plant is called the delivering plant. However, if you create a stock transport order with order type UB, you enter the delivering plant immediately. The plant specified in the order item is the receiving plant.

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2nd Process Step: Create a Replenishment Delivery

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n n

In the same way as the procedure for intra-company stock transfers, a replenishment delivery is created at the beginning of the sales activities. The replenishment delivery is created solely in a delivery collective run in the respective shipping point. The purchase orders are used as selection criteria here. The determination of the ship-to party and the other outbound delivery parameters takes place in the same way as for intra-company stock transfers: A customer number is assigned to the receiving plant in Customizing. The same setting as for intra-company stock transfers is used. The combination of order type NB and the delivering plant refers to a delivery type. For this purpose, use delivery type NLCC ("Replenishment Cross-company").

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3rd Process Step: Execute Picking and Post Goods Issue

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n

With cross-company stock transfers, the replenishment delivery is processed in shipping as usual. However, if you wish to have different processing compared to outbound deliveries for sales orders or replenishment deliveries for intra-company stock transfers, you can define this in Customizing for the delivery type and the item category. If required, the replenishment delivery can also be packed, or planned into an outbound shipment. As soon as the shipping activities are closed, the goods issue is posted in LE shipping for the replenishment delivery.

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Determination of the Movement Type

Order type NB Delivery type NLCC Delivering plant 1200 Delivery type NLCC Item category grp NORM Usage V Item category NLC

Item category NLC Schedule line categ. NC Schedule categ. MRP type --

Movement type 643/645

SAP AG 1999

n n

n n

When the goods issue for the replenishment delivery is posted, the system must know the movement type to use. This is determined from the schedule line category, which, in turn, is itself determined from other factors. In Customizing, you assign delivery type NLCC to the combination of order type NB and the delivering plant. With the help of the delivery type and the item category group of the material, the item category determination procedure for the delivery ensures that item category NLC is found for standard items, that is, materials with item category group NORM.. In the standard version, the system determines schedule line category NC for item category NLC and materials with any MRP type. If you have different settings, maintain the schedule line category search accordingly. The standard setting for schedule line category NC defines that, in the case of the two-step procedure, movement type 643 is used. The movement types for the two-step and one-step procedures for intra-company stock transfers are also determined with the help of the assignment of the delivery type as well as the item and schedule line category search.

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Stock Changes after Goods Issue: (Two-step Procedure)

Delivering Plant

Receiving Plant

Unrestricteduse stock Vendor to cust.

Unrestricteduse stock Open order qty Stock in transit Stock in transit

= = = +

SAP AG 1999

n n n

When the goods issue is posted, the stock types "unrestricted-use stock" and "Deliv. to customer" change in the stock overview of the delivering plant because the goods have left the plant as the result of an outbound delivery (in this case, the replenishment delivery). Also, the stock accounts and material expense accounts in the financial accounting of the delivering company code are updated. Here the valuation price of the material flows into the delivering plant. In the two-step procedure for the cross-company stock transfer , the goods have not yet been posted in the receiving plant at this point. From the accounting viewpoint, they do not yet belong to the company code of the receiving plant. The unrestricted-use stock and the open order quantity remain unchanged. The quantity that is "in transit" is shown in the stock overview of the receiving plant as "Stock in transit CC" (cross-company stock in transit). The value of the cross-company stock in transit can also be displayed as an accumulated value for a plant or a company code.

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4th Process Step: Create Internal Invoice

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n

n n

The delivering company code (company 1000) issues an invoice for intra-company billing of the goods delivered to the receiving plant. The internal invoice is generated by sales organization 1000. This involves the relevant sales organization for internal billing, which is assigned to the delivering plant in Customizing. The same setting is also relevant for intra-company billing for cross-company sales activities. The internal invoice is created with direct reference to the replenishment delivery, or it is created in a collective run. When you process the delivery due list, set the indicator for Intra-company billing. If there is an agreement between the parties involved, you can set the system so that when the internal invoice is created, invoice receipt is automatically triggered in the logistics invoice verification of company code 2200. Similar to cross-company sales, the automatic invoice receipt is initiated by the output control for billing in connection with the EDI technique. In this case, the EDI output category INVOICE is used in the MM variant.

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Elements of Internal Invoice

Intercompany Billing 90005937 Default order type for delivery type type Receiving plant Delivering plant Delivering plant Delivering plant Delivering plant Delivering plant Delivering plant
SAP AG 1999

Billing type Payer Company code code Sales organization organization channel Distribution channel Division

IV 22000 22000 1000 1000 12 00

n n n

The default for the billing type for the internal invoice is derived from order type DL, which is assigned in Customizing to delivery type NLCC as the Default order type for deliveries without order reference. The payer results from the assignment of a customer number to the receiving plant. This setting is also used for determining the ship-to party in the replenishment delivery. The company code in the internal invoice is the delivering company code, that is, the company code of the delivering plant. The sales area is assigned in Customizing to the delivering plant. It applies to company-internal stock transfers as well as to cross-company sales.

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5th Process Step: Post Goods Receipt

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n n n

When the goods arrive in the receiving plant, a goods receipt for the purchase order is posted there with movement type 101, with the specification of the replenishment delivery number. If the purchase order is known, this can also be entered. There is no goods receipt posting if the stock transfer is being made using the one-step procedure. With the goods receipt posting, the system creates a purchase order history record and an entry in the document flow for the replenishment delivery.

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Stock Changes after Goods Receipt (Two-step Procedure)

Delivering Plant

Receiving Plant

Unrestricteduse stock Vendor to cust.

= =

Unrestricteduse stock Open order qty Stock in transit Stock in transit CC

+ = -

SAP AG 1999

n n n

With the goods receipt posting, the unrestricted-use stock in the receiving plant increases. The open order quantity is reduced since the delivery for the stock transport order has been received. The stock in transit CC in the stock overview of the receiving plant is reduced. From the accounting viewpoint, the goods are now assigned to the company code of the receiving plant. For this purpose, an accounting document has been created in which the order price is the price of the material. The stock information in the delivering plant is not influenced by the goods receipt.

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6th Process Step: Post Invoice Receipt for Purchase Order

Company 1000

Sales org. 1000 Plant 1200

2 3

orders

delivers

bills

Company 2200
SAP AG 1999

Plant 2200

n n

As soon as the invoice of the delivering company code has been received, the invoice receipt is posted in the logistics invoice verification of the receiving company code. If the invoice receipt has already taken place automatically in internal billing, the invoice is assigned a payment block. When the quantity and, if planned, the quality of the received goods have been checked, the invoice can be released for payment. Then the payment block is removed in accounting.

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Cross-Company Stock Transfer: Checklist for Customizing I

l Assignment of a sales area to intercompany billing for the delivering plant l Assignment of a customer to the receiving plant l Assignment of the delivery type for the replenishment delivery l Decision on one-step or two-step procedure l Shipping point determination, if required l Maintenance of settings required for automatic invoice receipt

SAP AG 1999

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Cross-Company Stock Transfer: Checklist for Customizing II

If you are implementing user-defined objects in sales document control: l Maintenance of item category determination in the delivery l Entry of the movement type in the schedule line category l Maintenance of the schedule line category determination l Entry of the invoice type for intercompany billing in the default order type that is assigned to the vendor

SAP AG 1999

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Cross-Company Stock Transfer: Unit Summary I

You are now able to: l Set up the procedure for stock transport orders with LE outbound delivery and SD billing for certain plants in different company codes
l Trigger the cross-company code stock transfer

process with the help of a standard purchase order l Give reasons for the choice of delivery type l List the effects of the goods issue posting in inventory management l Explain the determination of the movement type

SAP AG 1999

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Cross-Company Stock Transfer: Unit Summary II

... l Determine which company code the internal invoice is assigned to l Explain the origin of the sales area l Explain how the system determines the payer l Post goods issue for a replenishment delivery l Post the invoice receipt in invoice verification

SAP AG 1999

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Cross-Company Stock Transfer Exercises

Unit: Topic:

Cross-Company Stock Transfer Preparations

At the conclusion of this exercise, you will be able to: Set up the procedure for stock transport orders with LE outbound delivery and SD billing for certain plants in different company codes

The Paris-based branch of your company purchases several materials by stock transfer from the central warehouse of the German subsidiary in Dresden. For this replenishment delivery type, the shipping process shall in principle be executed in the same way as with customer deliveries. Since both locations are too far away from each other, the posting of the goods receipt at the receiving location does not take place at the same time as the goods issue posting. Your company decides to introduce cross-company code stock transfers with stock transport orders and to use the LE outbound delivery for the execution of the delivery process. An SD billing document is used for internal settlement. 1-1 Make an entry that determines the delivery type to be used for replenishment delivery for cross-company code stock transfer in supplying plant 12##. Purchasing document type: NB Supplying plant: 12## Delivery type: NLCC Checking rule: RP Delivery scheduling should be executed. 1-2 In addition, make the appropriate settings so that the system uses the two-step procedure for stock transfers with supplying plant 12## and receiving plant 22##. Make an appropriate entry: Supplying plant: 12## Plant: 22## Purchasing document type: NB 1-3 In this scenario, the plant 22## is the ship-to party and the payer. To do this, a customer master record is necessary. During the stock transfer process, the system

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copies various shipping and billing data, such as the address of the ship-to party and the payment terms, from the corresponding customer master data. Create the customer master record which represents plant 22##. Account group: customer belonging to group Customer: 220## Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 Reference Customer: 22000 Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 Name: Division 22## Paris Search term 1/2: 22## Street/house number: rue des Erables 32 Postal code/town: 75015 Paris Region: 75 Transportation zone: F000010000 Trading Partner ID: 2200 VAT Reg. number: FR93341612695 Tax classification: 0 1-4 1-5 Assign customer number 220## to receiving plant 22##. The supplying plant 12## should be represented by the vendor master record TS100##. Make an appropriate specification in the vendor master. Sales organization: 2200 *1-6 Optional: Do you have to enter a sales area for intercompany verification for receiving plant 22## to ensure that your cross-company code stock transfer process functions smoothly? Give reasons for your answer. __________________________________________________________________ __________________________________________________________________

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Exercises
Unit: Topic: Cross-Company Stock Transfer Creating a Purchase Order for Stock Transports

At the conclusion of this exercise, you will be able to: Trigger the cross-company code stock transfer process with the help of a standard purchase order

A department of the French branch requires a particular material. It is to be purchased from a central warehouse of the German subsidiary via stock transfer.

2-1

Create a purchase order for 30 PC of material T-AUD## . Vendor: T-S100## Document type: current date Purchasing organization: 2200 Purchasing group: 220 Company code: 2200 Delivery date: current date + 2 weeks Plant: 22## Storage location: 0001 Is the plant you entered in the purchase order the supplying or the receiving plant? _________________________________________ Write down the PO number: ___________________________

2-2

Which shipping point will process the outbound delivery? Shipping point: ____________________

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2-3

Go to the stock overview for material T-AUD##: 2-3-1 How much unrestricted-use stock does each plant contain? Plant 12##: ____________________ Plant 22##: ____________________ 2-3-2 Where can you find the released quantity in plant 12##? __________________________________________________

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Exercises
Unit: Topic: Cross-Company Stock Transfer Creating a Replenishment Delivery

At the conclusion of this exercise, you will be able to: Give reasons for the choice of delivery type

The replenishment delivery is generated at the shipping point assigned to the central warehouse for the processing of the shipment.

3-1

To carry out the shipping activities, you play the part of an employee at shipping point X0## related to plant 12##. Use the collective processing function to create the replenishment delivery. 3-1-1 Deliver the purchase order created earlier by processing the delivery due list for shipping point X0##. Restrict your selection to shipping point X0##! Delivery creation date: to current date + 2 weeks Write down the outbound delivery number: ______________________ 3-1-2 Who is the ship-to party for the replenishment delivery? _____________________________

3-2

Determine the delivery type and the item category in the replenishment delivery: Delivery type: ______________________ Item category: ___________________ 3-2-1 Which factors does the delivery type depend on in this particular case? 1. __________________________ 2. __________________________

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*3-2-2 Optional: Which essential setting is different for the two delivery types for stock transfers when compared to a delivery type used for outbound deliveries with reference to sales orders? Field name: _____________________________________________ Look up the appropriate setting for delivery type NLCC. Menu path: ___________________________________________________ Order Required:

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Exercises
Unit: Topic: Cross-Company Stock Transfer Executing Picking and Posting Goods Issue

At the conclusion of this exercise, you will be able to: List the effects of the goods issue posting in inventory management Explain the determination of the movement type

Once you have executed the shipping activities and goods issue, this issue should be entered in inventory management for the supplying plant. Posting to the receiving plant should not be carried out before the actual receipt of the material in the receiving plant.

4-1

Initiate picking by creating a transfer order for the replenishment delivery you created earlier. Depending on the menu path you use to create the transfer order, you may have to enter the warehouse number (012).

4-2

Post the goods issue for the above replenishment delivery using the one-step procedure or collective processing. Return to the stock overview for material T-AUD##: 4-3-1 How much unrestricted-use stock does each plant contain? Plant 12##: ____________________ Plant 22##: ____________________ 4-3-2 What order quantity does plant 22## contain? ________________ 4-3-3 Under which stock type and under which plant does the system store the goods in transit? Plant: ___________________________

4-3

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Stock type: _________________________________ 4-4 Go to your replenishment delivery in the material document display via document flow. 4-4-1 Which movement type did the system use for the goods issue? __________________ 4-4-2 Which Customizing object does the movement type belong to? _________________________________________ *4-5 Optional: You want to check why the system used the movement type you found in the above exercise. 4-5-1 Which parameters does the system use to determine the schedule line category? 1. ______________________________________ 2. ______________________________________ 4-5-2 Look up the relevant entry in the schedule line assignment: Item category: _______________________________ MRP type: _____________________________ Schedule line category: ________________________ 4-5-3 Display the definition of the schedule line category you found. Which movement type has been entered for the two-step procedure? ________________

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Exercises
Unit: Topic: Cross-Company Stock Transfer Creating an Internal Invoice

At the conclusion of this exercise, you will be able to: Determine to which company code the internal invoice is assigned to Explain the origin of the sales area Explain how the system determines the payer For intercompany billing of goods that the German company delivered to the French branch, the German branch creates the internal invoice. This step should not differ much from customer billing. Therefore, an SD billing document will be used. The invoice should be sent in the mail to the French company code. The two companies have agreed that there will be no automatic invoice receipt when the internal invoice is created. 5-1 Create the internal invoice with explicit reference to the replenishment delivery you created earlier, using the one-step procedure this time. 5-1-1 Find out to which company code and to which sales area the internal invoice has been assigned. Company code: ______________________ Sales organization: ___________________ Distribution channel: __________________ Division: __________________ 5-1-2 Who is the payer and which terms of payment are set? Payer: ____________________ Terms of payment: _______________ 5-1-3 Save the internal invoice and write down the document number. Internal invoice: _______________________ 5-2 You want to find out the origin of several entries in the internal invoice: 5-2-1 Where does the system get the terms of payment? ___________________________
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5-2-2 Which factor does the payer depend on? ________________________ 5-2-3 Which sales area does the system use to access the master data to determine the terms of payment? Sales organization: ___________________ Distribution channel: ___________________ Division: __________________ How does the system determine these organizational units? Menu path: ___________________________________________________ ____________________________________________________________

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Exercises
Unit: Topic: Cross-Company Stock Transfer Posting goods receipt

At the conclusion of this exercise, you will be able to: Post goods issue for a replenishment delivery

The replenishment delivery arrives at the receiving plant. The goods receipt is now to be posted with reference to the attached delivery document.

6-1

Your are an employee at the goods receiving point of the receiving plant. Post goods receipt with reference to the replenishment delivery utilized earlier. Outbound delivery: document number noted above for the replenishment delivery Document date: current date Posting date: current date

6-2

Display the stock overview for material T-AUD## in plant 22##. 6-2-1 How much unrestricted-use stock does the receiving plant contain now? ____________________ 6-2-2 How much cross-company code stock in transit does it contain? ____________________

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Exercises
Unit: Topic: Cross-Company Stock Transfer Posting invoice receipt for purchase order

At the conclusion of this exercise, you will be able to: Post the invoice receipt in invoice verification

The two companies involved have agreed that for stock transfer procedures, the invoice will be sent by mail from the German to the French branch. Therefore, posting to the vendors account in the French company does not automatically take place during the creation of the internal invoice. You are to post the invoice receipt manually. 7-1 The invoice issued by the German branch has arrived:

INVOICE
IDES AG (vendor T-S100##) Invoice date: (current date) Invoice 590013## Invoice for your purchase order 4500.... T-AUD## Output tax 0% (E4) Invoice amount: Monitors Sunny 01 30 PC 120000 FRF 0 FRF 120000 FRF

Enter the invoice in the company code 2200. Write down the document number. Invoice: _____________________________

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Cross-Company Stock Transfer Solutions

Unit: Topic:

Cross-Company Stock Transfer Preparations

1-1

IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Select Assign delivery type/checking and then choose New entries. Purchasing document type: NB Supplying plant: 12## Delivery type: NLCC Checking rule: RP Select the Ship.sch. field.

1-2

IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Purchasing document type and then New entries. Supplying plant: 12## Plant: 22## Purchasing document type: NB Do not select the One-step field!

1-3

Logistics Sales and Distribution Master Data Business partners Customer Create Complete Account group: customer belonging to group Customer: 220## Company code: 1000 Sales area Sales organization 1000 Distribution channel: 12 Division: 00 Reference Customer: 22000 Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00

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Address tab page: Name: Division 22## Paris Search term 1/2: 22## Street/house number: rue des Erables 32 Postal code/city: 75015 Paris Region: 75 Transportation zone: F000010000 Control Data tab page: Trading Partner ID: 2200 VAT Reg. number: FR93341612695 Billing document tab page Tax classification: 0 Otherwise, leave the default values. 1-4 IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Plant and then Details for plant 22##. Customer no. - plant: 220## 1-5 Logistics Materials Management Purchasing Master Data Vendor Purchasing Change (Current) Vendor: T-S100## Purchasing organization: 2200 Select the Purchasing Data view. Choose Enter Extras Add. purchasing data Plant: 12## *1-6 Optional: To make sure the stock transfer procedure via LE outbound delivery and SD billing document functions smoothly, you have to assign the sales organization, distribution channel and division for intercompany billing to the supplying plant only. For the receiving plant, these organizational units do not have to be assigned since the receiving plant appears as a customer in the process. Instead, it is more important that the corresponding customer master record is available in the appropriate sales areas.

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Solutions
Unit: Topic: Cross-Company Stock Transfer Creating a Purchase Order for Stock Transports

2-1

Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known Choose the Standard PO purchase order type. Vendor: T-S100## Document date: current date Choose Expand at Header and then the Org.data tab page. Purchasing organization: 2200 Purchasing group: 220 Company code: 2200 Choose Expand at Item overview. Material: T-AUD## PO quantity: 30 PC Delivery date: current date + 2 weeks Plant: 22## Storage location: 0001 The plant you explicitly specified in the purchase order is the receiving plant. Choose Save

2-2

Logistics Materials Management Purchasing Purchase Order Display Choose the Shipping tab page in the lower screen area (Item detail).

Shipping point: X0##

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2-3

Logistics Materials Management Inventory Management Environment Stock Stock Overview Material: T-AUD## Delete the default entries for plant and storage location. Choose Execute. 2-3-1 Plant 12##: 10000 PC Plant 22##: 5 PC 2-3-2 Double-click on the line for plant 12##. The quantity released by stock transport order in plant 12## will also be listed under the StckTrsptOrderRel stock type in the case of cross-company code stock transfer: 30 PC

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Solutions
Unit: Topic: Cross-Company Stock Transfer Creating a Replenishment Delivery

3-1 3-1-1 Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Collective Processing of Documents Due for Delivery Sales Orders and Purchase Orders Shipping point/receiving pt: X0## Delivery creation date: to current date + 2 weeks Choose Execute. In the list, select the line which refers to the purchase order your created above. Choose Create delivery in background. Then choose Log for Delivery creation, select the entry and choose Documents, in order to determine the outbound delivery number. 3-1-2 Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display Ship-to party: 220## 3-2 Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display Choose Header Details and then the Administration tab page. Delivery type: NLCC Choose overview; Item overview tab page. Item category: NLC 3-2-1 The delivery type used for the example for stock transfers between company codes depends on the following: 1. Purchasing document type NB 2. Supplying plant 12##

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*3-2-2 Optional: In the Document required field within configuration of the delivery type, you can determine the type of preceding document for a delivery. IMG: Logistics Execution Shipping Deliveries Define Delivery Types Choose Details for delivery type NLCC. Order required: Purchase order required

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Solutions
Unit: Topic: Cross-Company Stock Transfer Executing Picking and Posting Goods Issue

4-1

Logistics Sales and Distribution Shipping and Transportation Picking Create Transfer Order Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Picking date: to current date + 2 weeks Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

4-2

Logistics Sales and Distribution Shipping and Transportation Post Goods Issue Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: X0## Planned goods movement date: to current date + 2 weeks Choose Execute. Select the delivery you created earlier in the deliveries list for goods and then choose Post goods issue. Confirm the dialog box with Enter.

4-3

Logistics Materials Management Inventory Management Environment Stock Stock Overview Material: T-AUD## Delete the default entries - if there are any - for Plant and Storage location. Choose Execute. 4-3-1 Plant 12##: 9970 PC Plant 22##: 5 PC 4-3-2 Double-click on the line for plant 22##. Open order qty: 30 PC 4-3-3 Plant: 22## Stock type: Stock in transit CC

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4-4

Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display Environment Document flow Position the cursor on the material document in the document flow and choose Display document. 4-4-1 Movement type: 643 4-4-2 Schedule line category

*4-5

Optional: 4-5-1 1. Item category 2. MRP type (stored in the material master) 4-5-2 IMG: Sales and Distribution Sales Sales Documents Schedule Lines Assign Schedule Line Categories Item category: NLC MRP type: blank Schedule line category default (SchLC field): NC Since you did not specify the MRP type in the schedule line category assignment for item category NLC, you do not need to look up the MRP type in the material master of material T-AUD##. 4-5-3 IMG: Sales and Distribution Sales Sales Documents Schedule Lines Define Schedule Line Categories Select Details for schedule line category NC. Movement type: 643 The Movement type 1-step field contains the movement type that the system would use for the one-step procedure.

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Solutions
Unit: Topic: Cross-Company Stock Transfer Creating an Internal Invoice

5-1

Logistics Sales and Distribution Billing Billing Document Create Document: Document number of the replenishment delivery you wrote down earlier Select Execute. 5-1-1 Choose Display for document header details. Company code: 1000 Sales organization: 1000 Distribution channel: 12 Division: 00 The company code is the supplying company. 5-1-2 Payer: 220## Terms of payment: ZB01 5-1-3 Choose Save.

5-2 5-2-1 The system copies the terms of payment from the customer master record of the payer. 5-2-2 The payer results from the assignment of a customer number to the receiving plant. IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Plant and then Details for plant 22##. You have made the appropriate assignment to plant 22## in a previous exercise.

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5-2-3 Sales organization: 1000 Distribution channel: 12 Division: 00 This is the sales area that is assigned to the supplying plant in Customizing. IMG: Materials Management Purchasing Purchase Order Set Up Stock Transport Order Choose Plant and then Details for plant 12##. The entries have been made in Customizing for Intercompany Billing in connection with the cross-company code sales processing.

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Solutions
Unit: Topic: Cross-Company Stock Transfer Posting goods receipt

6-1

Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Unknown Choose Outbound delivery in the upper screen area, to enter the outbound delivery number. Outbound delivery: document number noted earlier for the replenishment order Document date: current date Posting date: current date Choose Enter or Execute. Select Item OK. Choose Post.

6-2

Logistics Materials Management Inventory Management Environment Stock Stock Overview Material: T-AUD## Plant: 22## Choose Execute. 6-2-1 Plant 22##: 35 PC 6-2-2 Double-click on the line for plant 22##. Stock in transit CC: 0

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Solutions
Unit: Topic: Cross-Company Stock Transfer Posting invoice receipt for purchase order

7-1

Logistics Materials Management Logistics Invoice Verification Document Entry Enter Invoice Choose Edit Switch company code. Company code: 2200 Invoice date: current date Posting date: current date Reference: 590013## Amount: 120000 FRF Tax code: E4 Purchase order/scheduling agreement: document number created earlier Choose Enter. Check the difference. Choose Post.

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Subcontracting

Contents:
l Creating a subcontract order l Monitoring provision stock and creating a delivery l Executing sales activities and posting goods issue l Posting goods receipt l Posting invoice receipt for a purchase order

6
SAP AG 1999

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Subcontracting: Unit Objectives

At the conclusion of this unit, you will be able to:

l Execute the steps for processing subcontracting activities in the system l Explain the advantages and disadvantages of processing with the LE outbound delivery l Describe how the functions for subcontracting are included in a scheduling agreement

SAP AG 1999

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Subcontracting: Overview Diagram

delivers Customer delivers

Customer

Vendor

Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

SAP AG 1999

Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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Subcontracting: Business Scenario

l With subcontracting, your vendor (that is, the subcontractor) receives components from which they manufacture a product. The end product is requested by your company through a purchase order. Also, the components that the vendor requires for production of the ordered product are listed in the purchase order and also provided to the subcontractor. The provision of materials may occur via an SD delivery. The components can be determined by the system through a bill of material.

SAP AG 1999

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Subcontracting Process

orders

Subcontractor (vendor 1010)

sends

2
Purchasing

3
Warehouse

delivers bills

Plant 1000
1 Determination of requirements
SAP AG 1999

Company 1000

n n n

You order the product to be produced or finished at the vendor. In the purchase order, you enter the components that you are going to provide to the vendor. In the system, you enter the issue of the components to the vendor. You enter a goods receipt for the product manufactured by the vendor. This is when you also post the consumption of goods. You enter the invoice of the vendor with reference to the purchase order. When you do so, you can also enter a subsequent adjustment for excess consumption or under-consumption.

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1st Process Step: Determination of Requirements

orders

Subcontractor (vendor 1010)

sends

2
Purchasing

3
Warehouse

delivers bills

Plant 1000
1 Determination of requirements
SAP AG 1999

Company 1000

If there is a requirement for the finished product marked with the special procurement type "Subcontracting", the planning run generates a purchase requisition with item category L ("Subcontracting") or a planned order with item category L. This planned order is converted to a purchase requisition with the item category L. You see the item category, that is the special procurement type L, when you call up the MRP element in the requirement list or the MRP list. At the same time, the bill of material for the finished product is exploded. Dependent requirements are created for the planned start date of the planned order or for the release date of the purchase requisition at the finished product level.

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2nd Process Step: Create Subcontract Order

orders

Subcontractor (vendor 1010)

sends

2
Purchasing

3
Warehouse

delivers bills

Plant 1000
1 Determination of requirements
SAP AG 1999

Company 1000

n n n n n n

The subcontracting items in the purchasing documents have their own item category. Each SC item has one or several subitems that contain the components to be provided to the vendor. You can enter the components manually or determine them through the BOM explosion. Reservation items are generated for the components that are relevant for requirements planning. The order price is the price for the subcontracting service of the vendor. You can store conditions for subcontract orders in a subcontractor purchasing info record. As of release 4.0.A it is possible to attach service lists to subcontract order items. In this way, you can transmit detailed specifications to your vendor on which services are to be rendered. The service specifications have an informative character. They have no effect on the value of the item.

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Document Type and Item Category for Subcontract Order

Purch. docum.
Purchase order Allowed item categories B K L - Subcontracting S PReq Item category Stand. ___ Subcontr. ___ Item category Subcontr. _______ Comp. __ Comp. __ Subcontr. _______ Comp. __ Comp. __

Doc.type Doc.type

Link Pur.Req.- Doc. Type

SAP AG 1999

Separate document types are set for each purchasing document type. In the document type assignment, you can store follow-on relationships between document types of different purchasing document categories. The allowed item categories are assigned to the individual document types in Customizing. In the standard definition, item category L for subcontracting is allowed for document type NB (standard order). Item categories rule how a material is to be procured. The item category subcontracting defines that components are provided for a material that is ordered at the vendor.

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3rd Process Step: Monitor Provision Stock and Execute Transfer Postings for Components

orders

Subcontractor (vendor 1010)

sends

2
Purchasing

3
Warehouse

delivers bills

Plant 1000
1 Determination of requirements
SAP AG 1999

Company 1000

n n n

The components at the subcontractor site are managed in a special stock for vendor. This stock is valuated and available for planning purposes. The goods consumption of the components can only be issued from the supply stock for the respective vendor. Using an evaluation function, you can monitor the stocks supplied to the vendor.

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LE Outbound Delivery for Components

Vendor

Subcontr.A

Post goods issue

x x x

Comp X1 Comp X2 Comp X3 Comp X4

Create outbound delivery

SAP AG 1999

n n

Before Release 4.0, a transfer posting could only be triggered directly with movement type 541 from the monitoring list for stock of material provided to vendor. As of release 4.0, you can also create an LE outbound delivery for a subcontractor from the SC stock monitor. In this way, you can deliver material supplies to the subcontractor in connection with a subcontract order. This procedure has the advantage that shipping documents and delivery notes are available for shipping the materials supplied. You can also use the standard functionalities for shipping and shipment processing such as, for example, picking, packing and planning in transportations. You can provide the subcontractor with components, without a subcontract order being available as a reference. To do so, you execute a transfer posting with movement type 541. For the ease of input, you can, for example, refer to a bill of material.

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Inventory Management for Components to be Provided

Vendor

Subcontr. order

Subcontract material

Material provision

Subcontr.rqmnt
Posting change to SC stock to SC stock Subcontr. rqmnt

Acquisition

Own stock

to SC stock

SAP AG 1999

The net requirements calculation for the components to be provided in subcontracting takes into consideration that the stock of material provided by customer can only be used as a coverage for the corresponding requirement of material provided. The provision stock already available to a vendor (subcontractor) can therefore only be used as a coverage for the requirement of material provided to this subcontractor. Only the stock that is not assigned to a subcontractor can be used as unrestricted-use stock to cover all requirements.

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Settings for LE Outbound Delivery

Plant 1000

Sales organization organization Distribution channel Division Division

Plant Delivery type Delivery type

Delivery type SC material provision required required Partner procedure : SC Partner procedure

SAP AG 1999

n n n

A sales organization, a distribution channel, and a division must be assigned to the plant from which the components are to be supplied. A delivery type must be entered for the purchase order. In the standard version, delivery type LB is available. The indicator for "Predecessor required" must be set to L. A partner procedure should also be assigned to the delivery type. This procedure contains the partner role.

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Required Master Data for LE Outbound Delivery

Material master record of components

Sales organization organization and distribution channel of delivering plant Assign customer Sales organization, organization, Distribution channel Division of delivering plant

SC vendor Customer

Shipping condition Loading group Plant

SAP AG 1999

Shipping point

n n n

In the delivering plant, the shipping data (View Gen. sales / Plant data" in the material master) must be entered for the component materials. A customer must be assigned to the SC vendor in the master record; the customer must be created for the sales organization, distribution channel, and division of the delivering plant. A shipping point must be assigned to the combination of shipping condition (from the master record of the customer assigned to the SC vendor), loading group (from the material master of the component), and plant.

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Determination of Outbound Delivery Parameters and Movement Type

Delivery type LB Item category LBN Item category group NORM

Item category LBN Schedule line cat. LB cat. MRP type

Schedule line cat. LB

Movement type 541 Movement type

SAP AG 1999

n n n

n n

Since the outbound delivery does not refer to a sales order, the system must determine important information about the outbound delivery parameters using other means. The vendor to be used is derived from the Customizing settings for subcontract orders. If there is no setting in Customizing, delivery type LB is used in the standard version. The item category is the result of the item category search for the delivery. Here the criteria for the delivery type and the item category group of the material play a role. In the standard Customizing settings, item cateogry LBN is assigned. When you post the goods issue for the outbound delivery to the SC vendor, the movement type to be used must be known to the system. This is derived from the schedule line category that is determined via the item category. In the standard version, schedule line LB is determined for item category LBN and materials with an arbitrary MRP type. The standard setting for schedule line category LB defines that movement type 541 is used.

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4th Process Step: Post Goods Receipt

orders

Subcontractor (vendor 1010)

sends

2
Purchasing

3
Warehouse

delivers bills

Plant 1000
1 Determination of requirements
SAP AG 1999

Company 1000

n n

n n

The goods receipt is entered with reference to the SC order item. During goods receipt posting, the system automatically generates the components and creates a goods issue item internally for each component item. The consumption of the components is therefore posted retrograde with the goods issue for the material produced. If the SC vendor has used more or less component material than planned in the purchase order, you can correct the component quantity during the GR posting. If the SC vendor reports excess consumption or under-consumption only after the GR posting, the difference must be posted as a subsequent adjustment. This adjustment must be entered with reference to the purchase order. The requirement for materials supply is reduced when the finished products are entered in goods receipt.

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6-15

5th Process Step: Post Invoice Receipt for Purchase Order

orders

Subcontractor (vendor 1010)

sends

2
Purchasing

3
Warehouse

delivers bills

Plant 1000
1 Determination of requirements
SAP AG 1999

Company 1000

n n

The invoice for a SC order item refers solely to the labor costs for subcontracting. The labor costs, together with the value of the used components, gives the valuation price with whic h the SC material is valuated. If the vendor reports excess consumption or under-consumption of components after the goods receipt posting, you must then perform a subsequent adjustment. This subsequent adjustment is entered with reference to a purchase order. The subsequent adjustment results in a valuation correction of the material produced. Invoice verification for a subcontracting item is the same as invoice verification for a standard item.

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Postings (Without Input Tax) During Goods and Invoice Receipt

Ordered: Semifin.prod., Components: Raw mat. OP = Purch.ord.price (labor costs), VP = Valuation price raw mat. Transaction (1): GR Transaction (2): IR; Invoice price: IP = OP + Vr (Variance)
Balance sheet account Semi-finished product (1) OP + VP (2) Vr Balance sheet account GR/IR clearing acct Raw materials VP (1) (2) OP OP (1) Vendor BP + Vr (2)

Cost of goods mfd OP + VP (1) Vr (2)

Consumption acct (1) VP

Subcontracting account (1) OP (2) Vr

SAP AG 1999

The postings shown apply to a semi-finished product with a moving average price.

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Liquidacin
Proveedor de SC Consumos reales de componentes para la posicin de pedido Liquidacin posterior

Factura Costes de mano de obra posicin de pedido Correccin de valoracin Modificacin de stock Control de facturas

? =
SAP AG

Correccin de valoracin Historial de pedido

R

Si tras la contabilizacin de la entrada de mercancas, el proveedor comunica la existencia de consumos de componentes por encima o por debajo de lo previsto, debe efectuarse una liquidacin posterior que se registra con referencia a pedido. La verificacin de facturas de una posicin de subcontratacin se realiza de la misma forma que la de una posicin normal. .

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6-18

Scheduling Agreement

Sched. agt
Item category
BOM

PReqn
L Semi 1000 Comp1 10 Comp2 5

Semi-fin prod

10000 PC

BOM Semi Comp 1 Comp 2

Sched.lne 1: 2000 PC Comp 1: 20 PC Comp 2: 10 PC Sched.lne 2: 1000 PC Comp 1: 10 PC Comp 2: 5 PC

SAP AG 1999

n n n

In the scheduling agreement item, you enter the material to be produced as a subcontracting item. In the schedule lines, you enter the components that are required for production of the quantities given. Reservation items are created for these component quantites. The scheduling of the scheduling agreements can be executed using requirements planning in the MRP run.

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6-19

Subcontracting: Checklist for Customizing

l Assignment of a sales area to the plant l Shipping point determination, if required

If you are implementing user-defined objects in document control in purchasing and sales: l Allow item category L for purchasing order document l If required, assignment of delivery type for supply of material to the plant

SAP AG 1999

(C) SAP AG

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6-20

Subcontracting: Unit Summary

You are now able to: l Execute the steps for processing subcontracting activities in the system l Explain the advantages and disadvantages of processing with the LE outbound delivery l Describe how the functions for subcontracting are included in the scheduling agreement

SAP AG 1999

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6-21

Subcontracting Exercises
Unit: Topic: Subcontracting Subcontract order

At the conclusion of this exercise, you will be able to: Describe a subcontract order in detail Point out the necessary components, their origins and availability

With subcontracting, you provide your vendor (that is, the subcontractor) with components from which he manufactures a product. The end product is requested by your company via a purchase order.

1-1

Vendor T-L10A## produces material T-F1## using subcontracting. You make the necessary components, which are listed in the bill of materials for this material, available to the vendor. 1-1-1 Display the bill of material for material T-F1## in plant 1000, BOM usage 1. What quantity of which materials do you need to make available for material T-F1##? Logistics Production Master Data Bills of Material Bill of Material Material BOM Display

Component

Quantity

1-1-2 Display the stock overview for the components in plant 1000. What quantity of these materials is marked for unrestricted use in storage location 0001? How many does subcontractor T-L10A## already have?

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6-22

Look at the current stock situation for help in answering these questions. Plant 1000 Material T-B1## T-B2## T-B3## T-B4## Unrestricted use Stock of material provided to vendor

1-1-3 How would the stock look for the subcontractor in the current stock/requirements list? __________________________________ 1-1-4 Since you have had material T-F1## produced by subcontractor T-L10A## many times before, you have recorded the conditions in a purchasing info record for subcontracting. Display the purchasing info record for plant 1000 and purchasing info record 1000 and use that information to complete the following: Net price: ___________________ Planned delivery time: _________________

1-2

100 pieces of material T-F1## are to be produced for plant 1000 (Hamburg). Inform purchasing of this in a purchase requisition using a subcontracting item. The delivery date is four weeks from today. 1-2-1 What item category should you use? 1-2-2 How is the components requirement date calculated? Purchase requisition: ___________________ 1-2-3 Display the current stock/requirement list for your components. Has the available quantity changed?

1-3

Check in Customizing whether the item category is allowed for subcontracting for the purchasing document type (standard purchase order).
LO925 6-23

(C) SAP AG

1-4

Create a purchase order for your subcontractor T-L10A##; use the purchasing organization 1000. Refer to your subcontracting purchase requisition item for the material T-F1##. 1-4-1 What price is suggested for the subcontracting costs per piece? How is this price calculated? 1-4-2 Which components are related to this purchase order item? 1-4-3 Check the availability of each component. Material Requirement quantity Confirmed quantity

Save the subcontract order. Order number: ____________________ 1-5 Did this action affect the available quantity of the components in the current stock/requirement list?

(C) SAP AG

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6-24

Exercises
Unit: Topic: Subcontracting Monitoring material provided to vendor and transfer posting of the components

At the conclusion of this exercise, you will be able to: Describe the evaluation function for monitoring stock stored at the vendors place of business Explain the distinctive features about outbound deliveries for provision of subcontractor stock. The components that the vendor needs to produce the product that has been ordered are provided to the subcontractor. The components can be determined by the system through a bill of material. The provision of materials may occur via an SD delivery.

2-1

Display the vendor SC inventory for your subcontracted vendor T-L10A## . What materials and what quantities do you still need to send to the vendor so that he can complete the order?

Material

Requirement quantity

To be delivered

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2-2

Check whether the necessary settings were made for creating an outbound delivery for posting change to SC provision stock. 2-2-1 Display the material master records for the bill of material components and check whether the material master records were created for sales organization 1000 and distribution channel 12.

2-2-2 Which transportation group and loading group are entered for each material?

Material T-B1## T-B2## T-B3## T-B4##

Transportation group

Loading group

____________________________________ ____________________________________ ____________________________________ ____________________________________

2-2-3 What customer is entered for your subcontracted vendor T-L10A## ? Customer: __________________

2-3

You must provide subcontractor T-L10A## with the components that he needs to produce material T-F1##. Initiate the sending of the components by creating an outbound delivery for an open quantity. Use the SC stocks for vendor report to help you. Confirm the quantities suggested for each item. 2-3-1 How many outbound deliveries were created? Outbound delivery number(s): __________________________________ 2-3-2 What quantities are delivered to the subcontractor?

2-4 Check the outbound delivery created for the components and corresponding quantities in shipping.

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6-26

Exercises
Unit: Topic: Subcontracting Executing sales activities and posting goods issue

At the conclusion of this exercise, you will be able to: Explain shipping processing Explain what characterizes the stock of material provided to the vendor Shipping processing is initiated for the outbound deliveries that were created from the SC stocks for vendor report and goods issue is posted for the components. As a result, the components are transferred from the unrestricted use stock into the subcontractors provision stock.

3-1

Initiate picking by creating a transfer order for the outbound delivery you created earlier. Depending on the menu path you use to create the transfer order, you may have to enter the warehouse number (010).

3-2

Post the goods issue for the above outbound delivery using the one-step procedure or collective processing. Check the document flow for your outbound delivery and note the document number used for posting goods issue to the subcontractor. Document number: __________________ 3-3-1 What is the movement type? Movement type: ___________________________________________ 3-3-2 What items does the material document contain? _________________________________________________________

3-3

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6-27

3-3-3 Why is each material listed twice? _________________________________________________________

3-3-4 Is there an accounting document for this process? __________________________ Display the stock overview for the component materials and use the information to complete the following table, which will give you an idea of the current inventory:

Plant 1000 Material

Unrestricted use

Stock of material provided to vendor

3-3-5 Compare this data to the inventory situation at the start of this exercise. What has changed? _____________________________________________________________ _ _____________________________________________________________ _

3-4

Run another SC stocks for vendor report for vendor T-L10A## . What has changed? __________________________________________________ __________________________________________________

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6-28

Exercises
Unit: Topic: Subcontracting Transfer posting to material provided to vendor

At the conclusion of this exercise, you will be able to: Perform transfer posting to material provided to vendor without a purchase order using MM processes Explain the difference between transfer posting to material provided to vendor and outbound delivery of components to the subcontractor You would like to replenish your subcontractors stocks without a concrete purchase order, so you carry out this step using only a transfer posting (without LE). Check the result of this action by using the stock overview and the current stock/requirements list.

4-1

You know that in the near future there will be many orders for your subcontractor T-L10A## to produce material T-F1##. Therefore, you want to send the vendor a certain amount of the components in the bill of material for this material beforehand so that he can start processing immediately when the orders are received. Make a transfer posting of another 100 pieces of component materials from plant 1000, storage location 0001 to your subcontractor T-L10A##. Use a transfer posting in the inventory management system to carry out this step. Create the transfer posting with reference to the bill of material and include BOM material TF1## . What menu path should you use? ___________________________________________________________________ _ ___________________________________________________________________ _ Movement type: ______________________ Material document: ______________________

(C) SAP AG

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6-29

4-2

Display the material document. Which items does it contain?

Component

Movement type

Special stock indicator

+ / - sign

(C) SAP AG

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6-30

Exercises
Unit: Topic: Subcontracting Goods receipt for subcontract order

At the conclusion of this exercise, you will be able to: Record goods receipt for the end product Describe how components and end products should be handled in terms of inventory and value Your vendor (the subcontractor) delivers the finished product and you record goods receipt in the subcontract order.

5-1

Vendor T-L10A## delivers material T-F1##. Record goods receipt for your purchase order in plant 1000, storage location 0001. Which movement type does the system use? Movement type: ______________________ Material document: ______________________

5-2

Display the material document. 5-2-1 Which items does it contain? Material Movement type Special stock indicator + / - sign

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5-2-2 Which G/L accounts have been updated? Account Account description Debits / Credits

5-3

Your subcontractor tells you that he needs one more piece of component T-B4## in order to produce all the pumps. Record the subsequent adjustment.

Enter your purchase order and press ENTER. Then choose Copy in order to display the material components.

Material document: ______________________________

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6-32

Exercises
Unit: Topic: Subcontracting Invoice receipt for subcontract order

At the conclusion of this exercise, you will be able to: Demonstrate manual invoice entry in the invoice verification Describe the items in the accounting document

Your vendor (the subcontractor) sends you the invoice for services rendered (producing the material you requested using the components you provided). Record the vendors invoice.

6-1

Vendor T-L10A## sends you the invoice for the subcontracting costs for your purchase order. He calculates 10000 UNI plus 10% tax (tax code 1I) for 100 pieces. This corresponds to a total amount of 11000 UNI. Record the vendors invoice. Company code: 1000 Invoice date: current date Posting date: current date Reference: 471113## Invoice document number: ______________________

6-2

Display the invoice document and the accounting document. Which accounts were changed? Account Account description Value

6-3

Display the purchase order history for your subcontract order.

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Subcontracting Solutions
Unit: Topic: Subcontracting Subcontract order

1-1

Logistics Production Master data Bills of Material Bill of Material Material BOM Display 1-1-1 Material: T-F1## Plant: 1000 BOM usage: 1

Component T-B1## T-B2## T-B3## T-B4##

Quantity 1 1 1 1

1-1-2 Logistics Materials Management Inventory Management Environment Stock Stock Overview

Plant 1000 Material T-B1## T-B2## T-B3## T-B4## 1-1-3

Unrestricted use 820 810 800 820

Stock of material provided to vendor 0 0 20 0

Logistics Materials Management Inventory Management Environment Stock Stock/Requirements List The subcontractors stocks are displayed in a separate planning segment, and are not included in the available quantity for the plant.

1-1-4 Logistics Materials Management Purchasing Master Data Info Record Display Vendor:
(C) SAP AG

T-L10A##
LO925 6-34

Material: T-F1## Purchasing organization: 1000 Plant: 1000 Info category: Subcontracting Choose Purchasing Org. Data 1. Net price: 100 UNI Planned delivery time: 10 days

1-2

Logistics Materials Management Purchasing Purchase Requisition Create Material: T-F1## Quantity requested: 100 PC Delivery date: current date + 4 weeks Plant: Hamburg 1-2-1 Item category L for subcontracting 1-2-2 In the lower screen section (Item detail), choose the Material data tab page and then Components. The system calculates the requirement date for the components by using delivery date minus planned delivery time of the finished product from the material master. Choose Save. 1-2-3 Logistics Materials Management Inventory Management Environment Stock Stock/Requirements List The available quantity is reduced by the subcontracting requirement for the requirement date for the components.

1-3

IMG: Materials Management Purchasing Purchase Order Define Document Types Select the line NB Standard PO. Double-click on Allowed item categories. The item category L is allowed for the standard purchase order.

1-4

Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known Choose the Document overview on button. In the selection variant, choose My purchase requisitions. In the left side of the screen (document overview), select the purchase requisition you have created. Then copy it to the current purchase order in the right side of the screen, using the Adopt button. Alternatively, you can drag the purchase requisition

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onto the shopping basket symbol, using the left mouse button. Vendor: T-L10A## Choose Enter. 1-4-1 The system proposes the price of 100 UNI and copies it from the subcontractor info record. Environment Info record 1-4-2 In the lower screen section (Item detail), choose the Material data tab page and then Explode BOM. This takes you to the component overview. To create the purchase order with item category L, the system explodes the BOM for material T-F1## in the background and proposes the items from the bill of material as components in the purchase order. The materials are the following: T-B1##, T-B2##, T-B3## and T-B4##. 1-4-3 In the components overview screen, select Component list Component Availability. Material T-B1## T-B2## T-B3## T-B4## Requirement quantity 100 100 100 100 Confirmed quantity 100 100 100 100

1-5

Logistics Materials Management Inventory Management Environment Stock Stock/Requirements List A separate section is opened for the subcontractor in the current stock/requirements list. The system checks if the subcontractor has already received unrestricted-use quantities from the components. The shortfall quantity will then be planned as remaining requirements for subcontracting in the anonymous section. The currently unrestricted-use quantity has not changed.

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Solutions
Unit: Topic: Subcontracting Monitoring material provided to vendor and transfer posting of the components

2-1

Logistics Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor Material T-B1## T-B2## T-B3## T-B4## Requirement quantity 100 100 100 100 To be delivered 100 100 80 100

2-2 2-2-1 Logistics Materials Management Material Master Material Display Display Current Choose the Sales: Sales Org. Data 1 und Sales: Sales Org. Data 2 views. Sales organization: 1000 Distribution channel: 12 The material master records are created in the sales organization 1000 and distribution channel 12. 2-2-2 Logistics Materials Management Material Master Material Display Display Current Choose the Sales: General/Plant Data view.

Plant 1000

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Material T-B1## T-B2## T-B3## T-B4##

Transportation group 0001 0001 0001 0001

Loading group 0003 0003 0001 0003

2-2-3 Logistics Materials Management Purchasing Master Data Vendor Purchasing Display (Current) Vendor: T-L10A## Purchasing organization: 1000 Select the Control view. Customer: T-L10A## In order to be easily identified, the same customer number is assigned to the subcontractor-vendor in the current system.

2-3

Logistics Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor Vendor: T-L10A##, Choose Execute Choose Select all. Choose Create delivery. Confirm the Create delivery dialog box four times with Enter (without further entries). 2-3-1 The system generates 1 outbound delivery. 2-3-2 The vendor receives 100 pieces of the T-B1##, T-B2## and T-B4## components each and 80 pieces of the T-B3## component.

2-4

Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Display or Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display

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Solutions
Unit: Subcontracting Topic: Executing shipping activities and posting goods issue

3-1

Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Picking Create Transfer Order Via Outb. Delivery Monitor or Logistics Sales and Distribution Shipping and Transportation Picking Create Transfer Order Via Outb. Delivery Monitor Shipping point/receiving pt: 1000 Picking date: to current date + 4 weeks Choose Execute. Select the outbound delivery you created in the list of daily workload for picking, and choose Create TO in background. Confirm the following dialog box with Enter.

3-2

Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Post Goods Issue Collective Processing Via Outb. Delivery Monitor or Logistics Sales and Distribution Shipping and Transportation Post Goods Issue Collective Processing Via Outb. Delivery Monitor Shipping point/receiving pt: 1000 Picking date: to current date + 4 weeks Choose Execute. Select the delivery you created above in the deliveries list for goods issue and then select Post goods issue. Confirm the dialog box with Enter.

3-3

Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Display or Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Display

(C) SAP AG

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Environment Document flow

3-3-1 Position the cursor on the material document in the document flow and select Display document. Movement type: 541, transfer posting to SC provision stock from unrestricted use 3-3-2 Clearing from storage location Transfer posting in special stock O = Subcontracting 3-3-3 Each material is listed twice since the material will be moved from the unrestricted-use stock to the stock of material provided to vendor. For this stock type, there is a O in the Special stock indicator field. 3-3-4 Choose Accounting documents... No, there is no accounting document for this process. Logistics Materials Management Inventory Management Environment Stock Stock Overview

Plant 1000 Material T-B1## T-B2## T-B3## T-B4##

Unrestricted use 720 710 720 720

Stock of material provided to vendor 100 100 100 100

3-3-5 The unrestricted-use stock has been reduced by the quantity you have just delivered to the subcontractor.

3-4

Logistics Materials Management Purchasing Purchase order Reporting SC Stock for Vendor Vendor: T-L10A##, Choose Execute The vendor has numerous components in the required quantity.

(C) SAP AG

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Solutions
Unit: Topic: Subcontracting Transfer posting to material provided to vendor

4-1

Logistics Materials Management Inventory Management Goods Movement Transfer Posting Movement Type Transfer posting Stck w. subcontract. From unrestricted In the overview screen, select Transfer posting Create with reference To BOM Vendor: T-L10A## Material: T-F1## Quantity: 100 Movement type: 541

4-2

Logistics Materials Management Inventory Management Material Document Display

Component T-B1## T-B1## T-B2## T-B2## T-B3## T-B3## T-B4## T-B4##

Movement type 541 541 541 541 541 541 541 541

Special stock indicator Blank O Blank O Blank O Blank O

+ / - sign + + + +

(C) SAP AG

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Solutions
Unit: Topic: Subcontracting Goods receipt for subcontract order

5-1

Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known Choose Purchase order in the upper screen area, to enter the purchase order. Purchase order: document number created earlier for the purchase order Document date: current date Posting date: current date Choose Enter or Execute. Click on Wk tab page in lower screen area (item overview)

Movement type: 101 Storage location: 0001 Select Item OK. Choose Post. 5-2 Logistics Materials Management Inventory Management Material Document Display

5-2-1 Material T-F1## T-B1## T-B2## T-B3## T-B4## Movement type 101 543 543 543 543 Special stock indicator Blank O O O O + / - sign + -

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5-2-2 Choose Accounting documents...in the material document. Click on the Accounting document. Account 792000 191100 893010 417001 790000 893020 Account description Finished goods GR/IR Clearing account Cost of goods sold Purchased services Work in process Inventory change addition Debits / Credits Debit Credit Credit Debit Credit Debit

5-3

Logistics Materials Management Inventory Management Goods Movement Subsequent Adjustment Subcontracting Purchase order: document number created earlier for the purchase order Choose Enter. Choose Adopt. Item 4: Quantity 1 Choose Post. If you wished to settle a lower consumption instead of an excess consumption, you would create the quantity with a - sign.

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Solutions
Unit: Topic: Subcontracting Invoice receipt for subcontract order

6-1

Logistics Materials Management Invoice VerificationLogistics Invoice Verification Document Entry Enter Invoice Choose Edit Switch company code. Company code: 1000 Invoice date: current date Posting date: current date Reference: 471113## Amount: 11000 UNI Tax amount: 1000 Tax code: 1I (corresponds to 10%) Purchase order/Scheduling agreement: document number created earlier Choose Enter. Check the difference. Choose Post.

6-2

Logistics Materials Management Logistics Invoice Verification Further Processing Display Invoice Document Invoice document number: default value Fiscal year: default value Select Follow-on documents... Click on the Accounting document. Account T-L10A## 191100 154000 Account description Harvey Parts & Co. GR/IR Clearing account Input tax Value 1100010000 1000

6-3

Logistics Materials Management Purchasing Purchase Order Display Choose the Purchase order history tab page in the lower screen area (Item detail).

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Conclusion
delivers Customer delivers

Customer

Vendor

Plant

orders

orders

orders

Company 2

Sales organization

Sales organization Company 1

Company code

Third-Party Order Processing

Plant 2 Plant 2 delivers

Cross-Company Sales
orders Company 2 Subcontractor (vendor) delivers delivers

orders

orders

delivers Plant

Plant 1 Company

Plant 1

Company 1

Company

SAP AG 1999

Intra-company stock transfer

Cross-company stock transfer

Subcontracting

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7-1

Course Objectives

You are now able to: l Execute the cross-application business processes for third-party order processing, cross-company sales, stock transfers, and subcontracting in the SAP R/3 System l Outline the most important setting options in Customizing

SAP AG 1999

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7-2

Recommended Tasks / Literature to Deepen Knowledge of Subject

l Repeat the exercises! For this purpose, use the IDES data or your own data. l Read the online documentation! l Read the IMG documentation! l Read the release notes!

SAP AG 1999

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7-3

Appendix

Contents:
l Menu paths l Additional slides

SAP AG 1999

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LO925

8-1

Menu Paths in Customizing for LO925

Access

Tools Accelerated SAP Customi Edit Project SAP Reference-

Third-Party Order Processing Definition of a third-party item category Maintenance of item category determination Definition of a schedule line category for third-party order processing Maintenance of the schedule line category determination Maintenance of copying control for sales document to billing document

Sales and Distribution Sales Sales Define Item Categories

Sales and Distribution Sales Sales Assign Item Categories

Sales and Distribution Sales Sales Define Schedule Line Categories

Sales and Distribution Sales Sales Assign Schedule Line Categories

Sales and Distribution Billing Billi Control for Billing Documents Copying Document

Cross-Company Sales Assignment of a sales area to intercompany billing for the delivering plant Maintenance of assignment between sales organization, distribution channel, and supplying plant Assignment of a customer to the sales organization Maintenance of billing type for intercompany billing in the sales document Maintenance of settings required for automatic posting to vendor account Intercompany Stock Transfer Assignment of a sales area to the delivering plant Assignment of a customer to the receiving plant Assignment of the delivery type to the replenishment delivery Decision on one-step or two-step procedure Shipping point determination Materials Management Purchasing Transport Order Plant Materials Management Purchasing Transport Order Plant

Sales and Distribution Billing Inter Organizational Units by Plant

Enterprise Structure Assignment Organization - Distribution Channel - Assig

Sales and Distribution Billing Inter Customer Number by Sales Organization

Sales and Distribution Billing Inter Types for Intercompany Billing

Sales and Distribution Billing Inter to Vendor Account (SAP-EDI)

Materials Management Purchasing Transport Order Assign Delivery Type / Materials Management Purchasing Transport Order Purchasing Document

Logistics Execution Shipping Basi Determination Assign Shipping Points

8-2

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LO925

Maintenance of item category determination in the delivery Maintenance of the movement type in the schedule line category Maintenance of the schedule line category determination Cross-company stock transfer Assignment of a sales area to the delivering plant Assignment of a customer to the receiving plant Assignment of the delivery type to the replenishment delivery Decision on one-step or two-step procedure Shipping point determination Maintenance of settings required for automatic invoice receipt Maintenance of item category determination in the delivery Maintenance of the movement type in the schedule line category Maintenance of the schedule line category determination Maintenance of the billing type for intercompany billing in the default order type Subcontracting Assignment of a sales area to the plant Shipping point determination Allow item category L for purchasing order document Assignment of delivery type for supply of material to the plant

Logistics Execution Shipping De Determination in Deliveries

Sales and Distribution Sales Sales Define Schedule Line Categories

Sales and Distribution Sales Sales Assign Schedule Line Categories

Materials Management Purchasing Transport Order Plant Materials Management Purchasing Transport Order Plant

Materials Management Purchasing Transport Order Assign Delivery Type / Materials Management Purchasing Transport Order Purchasing Document

Logistics Execution Shipping Basi Determination Assign Shipping Points a

Materials Management Invoice Veri

Logistics Execution Shipping Deli Determination in Deliveries

Sales and Distribution Sales Sales Define Schedule Line Categories

Sales and Distribution Sales Sales Assign Schedule Line Categories

Sales and Distribution Billing Inter Types for Intercompany Billing

Materials Management Purchasing Transport Order Plant

Logistics Execution Shipping Basi Determination Assign Shipping Points an Materials Management Purchasing Types Allowed Item Categories Materials Management Purchasing Order

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8-3

Accounting Basics

A
XX

B
XX

l Double-Entry Accounting l Balance sheet accounts l P&L accounts l Example SD l Example MM

SAP AG 1999

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8-4

Double-Entry Accounting

Name of Account Debit Credit

l l l l

Each business transaction is posted to at least two different accounts Debit postings always appear on the left-hand side of the T account Credit postings always appear on the right-hand side of the T account Total of debit postings = Total of credit postings

SAP AG 1999

n n n

The basic principle of double -entry accounting is that each business transaction is always posted to at least two different accounts, that is, posted as a double entry. In the simplest case, there are only two accounts involved. The basic idea is Debit to Credit. In this way, one account is posted to on the debit side, and the other account is posted to on the credit side. Basic principle: Irrespective of the number of accounts involved, the total of debit postings is always the same as the total of credit postings.

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Account Types - Balance Sheet Accounts

Asset Accounts + Inward movements are posted as debits + Outward movements are posted as credits. + Examples: Balance, cash, bank, receivables

Capital/Debt Accounts + Inward movements are posted as credits + Outward movements are posted as debits + Example: Liabilities
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Business transactions are posted to accounts (= invoices on two pages where the value movements are also registered). In double-entry accounting, you can assign the accounts to different groups of basic accounts. These, in turn, are divided into two categories: Balance-sheet accounts (revenue accounts and capital/debt accounts) to which stocks and their changes are posted. P&L accounts (expense/cost and revenue/sales accounts) to which profit activities are posted. All accounts are similar in structure and have the following basic equation: Initial balance + inward movement - outward movement = Final balance The basic accounts mentioned above differ from one another with respect to the account side to which the initial balance, the inward and outward movements, and the final balance are posted.

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Account Types - P&L Accounts

Revenue accounts + Inward movements are posted as credits + Outward movements are posted as debits + Example: Sales revenue

Expense accounts + Inward movements are posted as debits + Outward movements are posted as credits. + Example: Material expenditure, price difference

SAP AG 1999

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Example SD

+ Sales order: + Goods issue: + Invoice:

10 pieces for $12 per piece 10 pieces delivered, standard price $10 per PC 10 pieces for $12 per piece

+ Payment receipt: $120

SAP AG 1999

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Example SD: Postings

Material usage (Expense) 100 Stock (Assets) 100

Goods issue:

Invoice:

Receivables (Assets) 120

Sales revenue (Revenue) 120

Payment receipt:

Receivables (Assets) 120

Bank (Assets) 120

SAP AG 1999

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With an SD business transaction, for example, an accounting document is created at the time of the goods issue and invoice creation. At the time of the goods issue, the goods physically leave the warehouse. In this way, you have a stock (balance) and value posting. The stock is reduced and the material consumption increased. The posting is therefore material consumption to stock. At the time of billing, receivables are increased at the customer, and stock issues are posted to sales revenue (posting record: receivables to sales revenue). When the payment is received in FI, the receivables are reduced again and the money amount is posted to a bank account (posting record: bank to receivables). In this simple example, we have ignored the posting of the output tax.

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Example MM

Vendor

+ Purchase order: + Goods receipt: + Invoice: + Payment:

10 pieces for $12 per PC 10 pieces delivered, standard price $10 per PC 10 pieces for $10 per piece $100

SAP AG 1999

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Example MM: Postings

Stock (Assets) 100

Goods receipt:

GR/IR Clearing account 100

Invoice:

Vendors (Liabilities) 100

GR/IR Clearing account 100

Payment:

Vendors (Liabilities) 100

Bank (Assets) 100

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In the example of an MM business transaction, an inward stock movement follows at the time of the goods receipt. As far as the technical side of posting is concerned, clearing entry takes pla ce using a specific goods receipt/invoice receipt-clearing account (stock to GR/IR clearing account). As far as it can be valuated with standard prices, posting of the existing difference amount between costs for purchase and valuation can, under some circumstances, be necessary for a price difference account. When the invoice is created, the GR/IR clearing account is credited and liabilities are created for the corresponding vendor (GR/IR clearing account to vendors). The liabilities are compared using the payment run, and an issue should be recorded on the bank account (liabilities to bank). In this simple example, we have ignored the posting of the accrued tax.

(C) SAP AG

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