Material Production with SAP

At the end of the last tutorial you completed a purchase order for some steering controllers. In this tutorial you will receive these parts into your assembly plant inventory. After your steering controllers have been received, you will learn how to produce a semi-finished good to be used in the production of your Beach Cruisers. Part 1: Post Goods Receipt In this exercise you will post the receipt of your purchased steering controllers into your assembly plant inventory. It is important to note that SAP allows you to check the amount of items ordered upon receipt. Not only does this allow a receiving clerk to make sure the proper number of items are received, but it allows the amount to be changed if necessary due to damaged or forgotten items. Before going any further, you will need your purchase order number from the previous tutorial. To find the purchase order number, go to the stock/requirements screen for the steering controllers (BP-01). The order number is located to the right of the PchOrd entry, and starts with a 45. Now that you have your order number, lets enter the goods receipt. From the SAP easy Access Menu: Logistics Materials management Inventory management Goods movement Goods Receipt For Purchase Order GR for purchase order Enter your purchase order number from the last section in the empty box at the top of the screen next to Purchase order. Click enter. Your purchase order number will be displayed in red in the overview box to the left of the main screen. Double click your red highlighted purchase order number. You will now see two entries for the steering controllers in the main section of the screen. Check the OK box in the second steering controller entry. Now click the execute button (it looks like a small clock with a green checkmark, near the top center of the screen). If no errors appear, click the save button. Your steering controllers are now in your inventory. To make sure, check your inventory level by typing MB53 in the transaction code box at the top of the SAP Easy Access User Menu screen, and clicking enter. You will be taken to the plant stock availability screen. Enter BP-01 for material (your plant should already be filled in) and click execute. The displayed report should show the number of steering controllers you ordered as available. Part 2: Convert Planned Order to Production Order In the previous tutorial, you converted a purchase requisition to a purchase order with little more than a click of your mouse. In this exercise you will convert a planned order into a production order in the same manner.

Your Beach Cruisers are made of both purchased materials, and materials produced at the S.O.S. assembly plant. One of the produced materials is the fiberglass seat back (BP-05). Since this part is a particular shape, it would be expensive to purchase from a sub-contractor or vendor. For this reason, S.O.S. decided to mold the seat backs from raw fiberglass sheets. Before you can complete the assembly of your finished Beach Cruisers, you must produce some seat backs. Just as you have done in the past, go to the stock/requirements list initial screen. Run the stock/requirements list report for the seat back (BP-05). You will see that the dependent requirements for beach cruiser production has already been calculated and entered for you. This occurred when you ran the MRP function for the Beach Cruisers. You will also notice that planned orders (PlOrd) for the seat backs are already present. Located the planned order for 04/26/2005, and click the small magnifying glass to the left of the line. At the bottom of the small pop-up screen, you will see a button reading -> Prod. Ord. Click this button to convert the planned order for the seat backs to a firmed production order. On the production order create screen (which appears after clicking the -> Prod. Ord button), you will see the quantity of seat backs necessary for that dates production of LX Beach Cruisers displayed in the total quantity box. In class you should have calculated a production order quantity which will keep costs as low as possible for S.O.S. Enter your production order quantity in the total quantity box. Now click save. When you are returned to the stock/requirements screen, click the refresh button to see your planed order convert into a production order. Record your production order number for the next exercise. Part 3: Issue Materials for Production As mentioned in the previous exercise, seat backs are molded from raw fiberglass sheets. Whenever a product is manufactured using separate materials, those materials must be removed from inventory and taken to the assembly area for use in production. In SAP this is called issuing a material. In this exercise you will issue the fiberglass sheets for the seat back production. From SAP Easy Access: Logistics Production Production Control Goods Movement Goods Issue Enter the following: Movement type: 231 Storage location: 10 Click the To order button and enter your order from the previous exercise. Click Adopt + Details.

You should now be at the enter goods issue screen. This screen shows you which materials (FG-01, Fiberglass Sheet) will be issued to the production order of the seat backs. You can also see the number of materials issued and the storage location (Stor. Loc.) they will be taken from (10). **It is important to note that not all materials used in the final Beach Cruiser production are located in storage location 10. The following materials are located in storage location 20 for both the BC-S and BC-LX: FRSA, FASA, WHSA, SASA, BP-01, BP-05, BP-06, and BP-10. In addition, for the BC-LX the following materials are also located in storage area 20: LX-01, LX-02, and LX-03. During the goods issue for the S or LX model Beach Cruisers, you would change the storage location on this screen to 20 for these materials. Click the adopt button (looks like two pieces of paper in the upper left of the screen) to issue the fiberglass sheets to your seat back production order. If more than one material were used in the production (as is the case during final Beach Cruiser production), the next material in line would be displayed. You would then change the storage location if necessary and click the adopt button for each material. After clicking the adopt button you will see an overview screen listing all materials used in the production process. After reviewing the list, click the save button. The materials necessary for your production order have now been issued, and inventories have been automatically updated. Part 4: Post Completion Confirmation of Production Now that the materials necessary for production have been issued, the production process can begin. After the proper number of products has been produced, you will need to confirm the exact number in the system. This process could be automated by SAP, but what if some of the products were damaged during production? You would not want the system to schedule the use of these damaged items. Therefore, it becomes necessary to make this a manual entry. SAP calls this procedure completion confirmation of production. From SAP Easy Access: Logistics Production Production Control Confirmation Enter For order Enter your production order number (same as the number from part 2), and click enter. Make sure Final confirmation is selected at the top of the screen. Enter the number of products you produced (seat backs in this case) from your production order Yield to conf. box (we are assuming that none were damaged in production). Click save to apply the production confirmation to the order. As the order is now completely fulfilled, the production order will be considered complete in the SAP system and removed from the stock/requirements list. If you wish, display the stock/requirements list for the seat backs and look at the information for 04/26/2005. You have now confirmed

the production of a material in the SAP system. Only one task remains, issuing the produced material to a storage area.

Part 5: Post Goods Receipt of Material For obvious reasons, finished materials cannot be stored on the assembly line. Therefore, after materials are produced, they must be issued to a storage area. As most companies have several different products, and several different storage locations, SAP allows this goods issue to be a manual process. From SAP Easy Access: Logistics Production Production Control Goods movement Goods receipt Enter movement type 101.Enter your production number from part 2 (notice how the system keeps everything accurate by always drawing information from the original production order). Enter 20 (semi-finished goods) for storage location (storage location 30 is the shipping warehouse where finished Beach Cruisers are issued). Click the Adopt + Details button. Review the screen to make sure the product listed and amount is correct. Click the save button to issue your products to the storage location. Now lets take a quick look at your plant inventory to confirm the goods movement. While at the SAP Easy Access User Menu screen, enter MB53 in the transaction code box and click enter. Enter BP-05 in the material box and click the execute button. You should see the number of seat backs you produced listed in storage location 20. You are now ready to produce your LX model Beach Cruisers.