10/10/2016

NonFerrous(NF)MetalsProcessingSAPBlogs

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NonFerrous(NF)Metals
Processing
May23,2016

| 4Views |
KvanBilgin
morebythisauthor

SD(SalesandDistribution)
MM(MaterialsManagement) | Sales | SAPERP | enterpriseresourceplanning | nfm | sales
order | saperplogisticsmaterialsmanagement | saperpsalesanddistribution | sapsd

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1.Introduction
ThisdocumentwilltrytomakeabriefsummaryaboutNonFerrousMetals
(NF)processinginSAPSD.Iwilltrynottogointofulldetail,asinthiscase
thisdocumentwillratherlooklikeashortbook,butexplainmandatory
activitiesinordertostartusingNFprocessingfromscratch.Adedicated
consultantwillbeabletohandlethesituationafterwards.
NFProcessingmainlyaddressesnonferrousmetalsindustrysector(copper,
aluminum)inwhichpricescanchangedrasticallywithinminutesorseconds.
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ThepricesaredeterminedbyLondonMetalExchange(LME)globally.
NFProcessinginSAPisnotlimitedtoNFMetalsonly.OnecanuseNF
processingforanytypeofgoodsifthepricesdochangewithinshort
periodsoftime,orpricingagreementswithcustomerdependonfuture
pricingdates.Atypicalexamplewillexplainthissituation:Whena
salespersonistryingtosellaNFrelatedproducttoacustomer,hecan:
Cometoanagreementpriceofthatveryspecifictime.i.e.LMEpriceat
thatexactmomentcanbe,say,1802,64$/TON.Theycometoan
agreementwiththecustomerandfixtheprice.Fixingtheprice
meansthatthiswouldbethesellingpriceofNFmetalsLMEforthat
salesorder,andanypricechangewillnotaffectitsprice.(Pricesvary
withinveryshortperiodsoftime)
Cometoanagreementpriceofafuturedaysprice.Thatfuturedaycan
bedaysorevenmonthsaway.i.e:ThepriceisfixedontheLME
closingpriceonthedayofGoodsIssue.Sointhesalesordertodays
pricewillbeseen,butinthebillingdocument,LMEpriceshouldbe
recalculatedaccordingtoGoodsIssue.Thepriceshouldonlybe
recalculatedforLMEotherconditiontypesneednotbe
recalculated.Thispricecanbehigherorfewerthancurrentprice,so
itsalmostagamblingonbothsides(Pricingagreementswith
customerdependonfuturepricingdates)
Ifanyoftheaboveiscommoninyourbusinessscenario,youshouldtakea
lookatNFProcessingtoseeifithelpsyoumeetyourcomplexrequirements.

2.NFMetalsActivation
Firstofall,businessfunctionsetDIMPforMillProductsneedtobeactivated
viaSwitchFrameworkCustomizing(SFW5).
InordertouseNFProcessing,acontentactivationisrequired.Thisisdonein
SPROviapathLogisticsGeneral>NFMetalProcessing>NFCross
ApplicationComponents>MaintainBasicSettingsForNFMetal
Processing.Youjustneedtotickthefieldhere.

3.ExchangeKeys

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InordertodistinguishcustomerswhoyouworkviaLMEandwhoyoudont,
youneedtomaintainexchangekeys.ThisisdoneviacustomizingMaintain
ExchangeKeys.

HereyoucancreatedifferentExchangeKeys.Forexample,ifyourclientis
sellingbothNFmetalsandgold,youshouldprobablycreatetwodifferent
keys:OneforLME,andoneforGoldExchange.

Thisexchangekeymustbeassignedtocustomerincustomermasterdata.In
customermaster,anewbuttonshouldappearwithtitleasNFMetalData.

AssignmentofExchangekeytocustomermasterisdonehereatsalesarea
level.TechnicallytheentryhereisstoredinKNVVJ_1NBOESL.

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4.NFKeysandBaseValues
InordertodistinguishNFmetalsfromothers,youneedtomaintainNFkeys.
Formaterials,thisisdoneviacustomizingMaintainNFKeysandBase
Values.

HereyoucandefineNFKeysandbasequantityandunitofmeasurefor
pricing.Forexample,inAluminumsector,LMEpricesaremaintainedperTON,
sothevalueyouseebelowrepresentsthis(1TON=1000KG).

Inthisclusterview,whenyouselectBaseKey,youcandefineabaseprice
perunitwhichistobeaddedtoLMEprice.Ifthisisnotrequiredforyour
industrysector,thiswillbeobsolete.Inthescreenbelow,youcanseethatfor
basekeyA0,priceis0.

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AssignmentofNFkeytoBaseKeytomaterialmasterisdoneatdistribution
chainlevel,Sales:SalesOrg.Data1view.Asyoucanseebelow,thereisa
separatebuttonformaintaningthisinformation,namedasNFSalesWeights.

MorethanonebasekeycanbeassignedtoaNFkey,andmorethanoneNF
keycanbeassignedtoamaterialinadistributionchain.Thismeansyoucan
useBasekeystodifferentiatesellingpricesformaterialswhichusethesame
NFkey.
Usecaseexample:YoucreatetwobasekeysforthesameNFkey.Forbase
keyA0youleavethepriceblank.ForbasekeyA1yousetthepriceas
250$/TON.Forrawmaterials,youassignbasekeyA0andforfinished
products,youassignbasekeyA1.Thiswayinsalesdocuments,whileyour
rawmaterialswillbechargedwithLMEprice,yourfinishedgoodswillbe
chargedwithLMEprice+250$/TON).
Inmaterialmaster,whenyouclickNFSalesWeightsbutton,apopupscreen
willappearlikebelow:

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HereNFkeyisappendedasarow.YoucanassigntheBasekeywhichhas
beenassignedtoNFkeysbeforehandfromtheBasekeybutton(i.e.A0or
A1).

5.LMEConditionType
InNFprocessing,LMEpricesaremappedtoconditiontypes.Firstyoushould
createyourownconditiontypeviaV/06,andthisconditiontypeshouldnot
haveanaccesssequenceinit.IfyourcustomerisamanufacturerinNF
Processing,thisconditiontypewouldprobablybeasurcharge,notaprice,as
additionalpricesmightbeaddedtoLMEpriceaswell(i.e.LabourPrice).
Foryourreference,theconditiontypeIvecreatedhasthefollowingattributes:

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TellingSAPthatthisisNFPrice,notausualconditiontype,isdonevia
customizingAssignConditionCategory/NFKeytoConditionTypesinSD.

HereyouassignyourconditiontypetoaNFkeyandaconditioncategory.

InyourpricingprocedureyourLMEconditiontypeshouldbemandatory.You
needtoassignarequirementformulaandaconditionbaseformulaforyour
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LMEconditiontype.InstandardSAP,requirementformula461(LV61A461)and
conditionbaseformula461(FV63A461)arecreatedforthispurpose.
Requirementformula461checksifyourmaterialisaNFmetal(Assignmentof
NFkeyintherelevantdistributionchain).Conditionbaseformula461reads
LMEpricinginformationfromrelevanttables.

6.LMEMasterData
LMEpricesshouldbecreatedasmasterdata.Thiscanbehandledeither
manuallybyusersorautomaticallyviaawebservicefromLondonMetal
Exchange.SAPMenupathformanualmaintenance(/NFM/RATS1)andprice
analysis(/NFM/ANARS)areasbelow:

Inmanualmaintenance,youenterRateDate,RateCurrency,ExchangeKey
andRateType.
Salesorganizationand/orCompanyCodeentranceisoptional,asLMEprices
arenotdependantonorganizationaldata,butyouhavetheoptionto
differentiatepricesonthemifrequired.

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YouentertheNFkeyandtherateandsaveyourentries.Rate1,Rate2and
Rate3canbeusedtodifferentiatepricesforthesamedate(i.e.youusually
useDayClosingpriceforRate1,butDayOpeningpriceforRate2,vs)

7.NFRoutines
InNFmetalspricingthereisaVOFMlikefunctionalitywhereyoumaintain
routinesbycodingandassigntheminyourprocesses.SPROpathforthisis
asfollows:

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Thisisathreestepprocess.First,youcreateratedeterminationmodules
(whichlooklikeVOFMroutines).Atypicalexampleisinclude/NFM/I004
Determinemostrecentrate:

Inthesecondstep,youassignyourmodulestoratedeterminationmodules.
ThisiswhereitdiffersfromVOFMroutines,asmorethanonerate
determinationmodulecanbeassignedtoaratedeterminationroutine.All
modulesarelistedontheupperside,andselectedmodulesforyourroutineare
listedonthedownside.Allthemodulesintheroutinewillbereadinsequence
bypricingifyourroutineisassignedtoSalesorganization/Ratedetermination
key(see8.RateDeterminationKey).

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Thirdstepwillbeacustomizingassignment,whichis:

8.RateDeterminationKey
IncustomizingactivityMaintainRateDeterminationKeysforSD,you
decideonwhichSalesorganizationwhichratedeterminationkeyscanbe
used.

Ratedeterminationkeys(RDK)areusedtodifferentiatepricinglogicforthe
application.

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Inthiscustomizing
Org.:Salesorganization
RDK:Ratedeterminationkey(createdhereontheflyforeachsales
organizationseparately)
RDR:Ratedeterminationmodule
Insalesdocument,assalesorganizationisalreadyentered,userwillselect
theratedeterminationkey.Thus,relevantratedeterminationroutineisknown
andaccordingtothecustomizingabove,arate(eitherRate1,Rate2orRate
3,whicheverhasbeenselected)willbefound.Amoredetailedand
understandableviewofthiscustomizingisasbelowinitemlevel:

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Inthiscustomizing,FieldControlletsyoucontrolvisibility/obligationof
certainfields:

9.Salesorderentry
Insalesorderentry,ifcustomerisrelevantforLME(KNVVJ_1NBOESL)and
thereisatleastoneNFmaterialintheorder(NFkeyisfilledforthe
distributionchain),unlessyouenterratedeterminationkey,systemwontlet
yousavethedocument.ThisisdoneviapathHeader>AdditionalFunctions
>NFDefaultvalues

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FortherelevantNFkeyyouentertheratedeterminationkey,andthensystem
calculatesthepriceforyourLMEconditiontypeaccordingtothemodulesin
yourratedeterminationroutine.

Youcanseefromitemlevelthatpriceiscalculated:

IfsalespersonfixestheLMEprice,youllneedaseparateconditiontypefor
this.Thisconditiontypeshouldbeamanualentry,andpropercondition
exclusioncustomizingneedstobedoneinordertomakecalculatedLMEprice
passiveifmanualLMEpriceisenteredinsalesdocument.
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Thanksforreading,

AlertModerator

5Comments
YoumustbeLoggedontocommentorreplytoapost.

AmiteshAnand
May25,2016at4:47am

Hi,
Itisreallyaverygooddocument.Lovetousethisconceptassoonasgotan
opportunity.
Keepitup.
Bestregards,
Amitesh

KvanBilgin Postauthor
May25,2016at5:52am

ThanksAmitesh,

PradeepMani
June1,2016at4:31pm

ItseemsthisisIndustryspecific.

KvanBilgin Postauthor
June2,2016at6:17am

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HiPradeep.NFMetalsisnotanIS
component,didyoucheckthispartherein
thisdocument:

2.NFMetalsActivation
Firstofall,businessfunctionsetDIMPfor
MillProductsneedtobeactivatedviaSwitch
FrameworkCustomizing(SFW5).

PradeepMani
June6,2016at6:53am

Thanksfortheinformation

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