Phase IV - Production V2.23

CASE STUDY
SAP ERP Configuration Phase IV

Production
Product MOTIVATION PREREQUISITES

SAP ERP GBI You will configure the You should be familiar with
Release 6.04 enterprise structure and navigation in the SAP system.
business processes for
Revised Production. It is also recommended that
6/24/2014 you have gone through the
After setting up the fulfillment exercise.
organization units and
Focus
process parameters, you ACKNOWLEDGEMENT
Production will create necessary This material was prepared
master data and test the with the assistance of student
Authors business process. interns at the Seidman ERP
Simha R. Magal program at Grand Valley
Stefan Weidner State University and the SAP
Tom Wilder Club at CSU Chico as well as
student and research
Version assistants at SAP UCC
2.23 Magdeburg.
Also, thanks to Corrie Fiedler

(Senior Lecturer, Information
& Decision Sciences, Carlson
School of Management,
University of Minnesota) for
her assistance in improving
this exercise.
SAP AG
Phase IV Production CASE STUDY
Overview and Table of Contents
Enterprise Rules and Process

Master Data
Structure Parameters Execution
Table of Contents
General Notes and Cautions ...................................................................................................... 1
Part IV.1 Enterprise Structure ................................................................................................. 3
Part IV.2 Rules and Parameters .............................................................................................. 5
Part IV.3 Master Data.............................................................................................................21
Part IV.4 Process Execution...................................................................................................41
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General Notes and Cautions

Warning: When working with other classmates at the same time in the same transactions within
SPRO, tables will tend to lock up and you will only be able to display them. This is due to the fact that
the system does not allow multiple users in the same transaction at the same time. To get passed this
message, simply wait until the current user in the transaction is finished and then proceed.
Attributes: At times, certain attributes or fields may not appear to have the name of them in front of the
user. To display the full name of the attribute or field, simply click within the field and then press the F1
key. This will bring up not only the title of the field, but it will bring up the full description of it to read.
The ## Symbol: When working with other classmates at the same time, you will be assigned your own
unique identifier which is called the ## Symbol or the Pound Pound Symbol. This will be your
identifier and is ASSIGNED FOR YOUR OWN USE ONLY!!! Please be cautious about other classmates
attempting to use your identifier whether it is on purpose or not and if you suspect other classmates using
it, inform your professor immediately so that fixes can be made accordingly. For example, if Ashley has
an identifier of 09, Ashleys company code will be US09.
The Search Tool: At times in this document, the instructions will ask you to search for something to put
in a field. When it does this, simply click on the field itself and click on the icon to the right of it (it looks
like a white square). Clicking on it will bring up another window and you will search from there. You
may also search other field by clicking on the downward arrow that may be on the left or right of the
field. It will bring up a drop down menu that will have options to choose from and click.
Where do I start? : There are three ways to proceed within the SAP system: Using the SAP Easy
Access menu, using the SAP Menu Bar, and using the SAP Customizing Implementation Guide
menu. All three of these are explained below:
1. The SAP Easy Access menu appears when you start a new session.
2. The SAP Menu Bar also appears when you start a new session at the very top of the screen.
3. In the SAP Customizing Implementation Guide, there are two ways you may use to get here:
a. The first is to simply type SPRO in the transaction field at the top of the screen.
b. Proceed through the path to get there. The path consists of the following:
(In the main menu of SAP, click on the black arrows on the left of these names) SAP menu Tools
Customizing IMG Execute Project (double-click on Execute Project)
In the Customizing: Execute Project screen, click on the icon.
Saving: When the instructions to tell you to save data, always press the Enter key to validate. If there
are error(s) that occur, they must be corrected before continuing to the next task. You will find errors
from a transaction when there are red icons that appear in the message area. Messages that are yellow
contain warnings and not errors. At times, these must be fixed in order to move on. However, most of the
time, they do not need to be fixed and you can simply enter through them. Green messages are obviously
showing that nothing went wrong with the transaction and that you may proceed to the next task.
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Set Controlling Area Pop-Up: At times throughout this phase, there will be times when the system asks
you enter your controlling area to clarify which controlling area you are configuring for.
If this should happen, in the Set Controlling Area pop-up, enter the following information:
Attribute Description Data Value

Controlling Area Uniquely identifies a controlling area. NA##
Click on (CONTINUE (ENTER)).
This will get you into the next screen where the instructions will then tell you what to do for the task.
Enter Chart of Accounts Pop-Up: At times throughout this phase, there will be times when the system
asks you enter your chart of accounts to clarify which chart of accounts you are configuring for.
If this should happen, in the Enter Chart of Accounts pop-up, enter the following information:

Chart of Accounts Key that uniquely identifies a chart of accounts. GL##
This will get you into the next screen where the instructions will then tell you what to do for the task.
Differences in Font: Throughout this phase you will see tables with different fonts used in the Data
Value column. The normal Times New Roman indicates you enter exactly what is typed out except for
the ## Symbol where you would put in your identifier. The italicized Times New Roman font indicates the
data is looked up or found.

Times New Roman Font that tells you to enter what is written. Times New Roman
Times New Roman Font that tells you the data that needs to be Times New Roman
(Italicized) looked up. (Italicized)
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Part IV.1 Enterprise Structure

Master Data
Table of Contents
IV.1.1: Determine Work Center Location .................................................................................... 4
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IV.1.1: Determine Work Center Location

Description: You will define a Work Center Location within the city of Dallas, TX. A Work Center
Location contains Work Centers and identifies the physical location where work is carried out. A
Work Center Location can be a general place description (Philadelphia) or a very specific place
description (office 105, desk III).
Please note that a Work Center Location Work Center. Rather a Work Center Location contains
Work Centers.
Warning: See General Notes and Cautions about table locks.
Navigation: SAP Customizing Implementation Guide Enterprise Structure Definition Logistics

General Define Location
Tasks and Data Entry:
In the Change View Locations: Overview screen, click on the icon.
In the New Entries: Overview of Added Entries screen, enter the following information:
Plnt Location Name

Your Plant Dallas DALLAS TX GBI N42##
Click on (ENTER).
In the Edit address: DL## DALLAS TX pop-up, enter the following information:

Country The country key contains information which the system uses to check USA
entries such as the length of the postal code or bank account number.
Region In some countries, the region forms part of the address. Texas
In the Street Address part, click on the icon.
Enter the following information:

Jurisdict. code Specifies the tax jurisdiction. Texas Jurisdiction Code
Click on (ENTER (CONTINUE)). You will receive a message that says One entry chosen.
In the New Entries: Overview of Added Entries screen, click on the icon.
You will receive a message that says Data was saved.
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Part IV.2 Rules and Parameters

Master Data
Table of Contents
IV.2.1: Define Production Scheduling Profile .............................................................................. 6
IV.2.2: Define Production Scheduler .......................................................................................... 7
IV.2.3: Configure Automatic Postings ......................................................................................... 8
IV.2.4: Activate Material Requirements Planning........................................................................ 9
IV.2.5: Define Checking Control ................................................................................................10
IV.2.6: Define Scheduling Parameters ......................................................................................11
IV.2.7: Define Order Dependent Parameters .............................................................................12
IV.2.8: Define Confirmation Parameters ....................................................................................13
IV.2.9: Carry Out Maintenance of Materials ...............................................................................14
IV.2.10: Carry Out Maintenance of Production ..........................................................................18
IV.2.11: Define Valuation of Goods Received ...........................................................................20
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IV.2.1: Define Production Scheduling Profile

Description: You will create the Production Scheduling Profile used at your Dallas plant.
GBI management wants to improve plant efficiency by automatically taking the following action
when a production order is created. The order is:
automatically released and scheduled without manual intervention.

not scheduled unless all materials are available (e.g., partial orders are not allowed).
A production scheduling profile can be associated either with specific materials or to a production
scheduler.
Navigation: SAP Customizing Implementation Guide Production Shop Floor Control Master
Data Define production scheduling profile
In the Change View Production Scheduling Profile: Overview screen, click on the
icon.
In the New Entries: Details of Added Entries screen, enter the following information:

Plant Key uniquely identifying a plant. Your Plant Dallas
Prod. Sched. Profile Specifies which transactions are carried out in 10
parallel, can trigger an automatic goods receipt, or
specify an overall profile for capacity leveling.
Description Description of production scheduler profile. ## Release & Schedule
Release Specifies an order is to be released when it is created. Selected
Schedule Order Specifies an order is to be scheduled as it is released. Selected
Click on (SAVE). You will receive a message that says Data was saved.
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IV.2.2: Define Production Scheduler

Description: You will create a Production Scheduler and associate this scheduler with the production
schedule profile created in the previous step. The Production Scheduler is responsible for the day-to-
day scheduling activities for a set of manufactured materials across a plant or plants.
Data Define production scheduler
In the Change View Production Scheduler: Overview screen, click on the icon.

Plant Uniquely identifies a plant Your Plant Dallas
ProdSched. Scheduler responsible for a material in production. 0##
Description Description of Production Scheduler ## DL Production Scheduler
ProdProfile Specifies which transactions are carried out in 10
parallel, can trigger automatic goods receipt, or
specify an overall profile for capacity leveling.
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IV.2.3: Configure Automatic Postings

Description: This is the first of two steps in which you configure SAP to automatically post General
Ledger transactions associated with the Production business process.
You will specify the General ledger accounts associated with the Issue Materials process step.
For example, when Raw Materials (Valuation Class = 3000) are issued to a production order
(Transaction Key = VBR) financial transaction will post to
Inventory Raw Materials (specified in a previous step)

Raw Material Consumption (the offsetting account, specified in this step).
Notice that the general ledger account for inventory from heaven is also specified here.
Navigation: SAP Customizing Implementation Guide Materials Management Valuation and

Account Assignment Account Determination Account Determination Without Wizard Configure
Automatic Postings

In the Automatic Posting screen, click on the icon.
In the Maintain FI Configuration: Automatic Posting Procedures screen, double-click on GBB.
You are in the Maintain FI Configuration: Automatic Posting Accounts screen.
Val. modif. Gen. modif. Valuation class Account

0001 3000 Your Raw Material Consumption Expense
0001 3030 Your Supplies Expense
0001 3100 Your Trading Good Consumption Expense
0001 7900 Your Semi-Finished Consumption Expense
0001 AUF 7900 Your Manufacturing Output settlement
0001 AUF 7920 Your Manufacturing Output Settlement Variance
0001 VBR 3000 Your Raw Material Consumption Expense
0001 VBR 3100 Your Trading Good Consumption Expense
0001 VBR 7900 Your Semi-Finished Consumption Expense
0001 BSA 3000 Your Inventory-Suspense (Heaven)
Click on (SAVE). You will receive a message that says Changes have been made.
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IV.2.4: Activate Material Requirements Planning

Description: You will activate your three Plants to use material resource planning (MRP).
MRP is used to plan manufacturing, purchasing, and delivering activities. MRPs basic functions
include inventory control, bill of material processing, and scheduling. This activation allows for the
execution of single-item and multi-level planning in each of the three plants.
Navigation: SAP Customizing Implementation Guide Materials Management Consumption-Based

Planning Planning Activate Material Requirements Planning
In the Activation screen, click on the icon.
You are in the Change View Activate Requirements Planning: Overview screen.
Plnt Activate requirements planning

Your Plant Dallas Selected
Your DC Miami Selected
Your DC San Diego Selected
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IV.2.5: Define Checking Control

Description: This is the first of four steps in which you specify parameters guiding the creation and
release of production orders in your Dallas plant.
You will copy checking control parameters from Company Code US00 to your Company Code
US##.
These parameters identify which inventory should be considered as available for use in a production
order. GBI management has determined that production orders should be checked for inventory
availability at both creation and release. This ensures that no order will be sent to the plant floor for
production unless all materials (both raw materials and semi-finished goods) are available.
Navigation: SAP Customizing Implementation Guide Production Shop Floor Control

Operations Availability Check Define Checking Control

In the Change View Order Control: Overview screen, highlight the DL00 PP01 1 row.
Highlight the DL00 Plant PP01 2 row.
Click on (COPY AS). You will receive a message that says Specify target entries.
In the Change View Order control: Details of Selected Set screen, enter the following information:

Click on (ENTER). You will receive a message that says Specify target entries.

Click on (ENTER). You will receive a message that says Number of entries copied: 2.
In the Change View Order control: Overview of Selected Set screen, click on the icon.
You will receive a message that says Data was saved.
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IV.2.6: Define Scheduling Parameters

Description: This is the second of four steps in which you specify parameters guiding the creation
and release of standard production orders in your Dallas plant.
You will specify scheduling parameters associated with the Dallas Plant and your Production
Scheduler. This step implements GBI managements strategic decisions regarding production order
scheduling:
orders are backwards scheduled, rather than forward scheduled.

orders cannot be scheduled to begin in in the past (and hope that production can catch up).
order lead time will not be automatically reduced (in the case the order is running late).

Operations Scheduling Define Scheduling Parameters for Production Orders
In the Change View Specify scheduling parameters: Overview screen, click on the
icon.

Order type Identifies the usage of the orders. Standard Production order
Prodn Superv. Scheduler responsible for a material. Your DL Production Scheduler
Scheduling Type Specifies the scheduling type. Backwards
Automatic Scheduling Specifies that orders or networks are Selected
automatically scheduled when saved.
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IV.2.7: Define Order Dependent Parameters

Description: This is the third of four steps in which you specify parameters guiding the creation and
release of standard production orders in your Dallas plant.
You will specify production order parameters associated with the Dallas plant. This step implements
GBI managements tactical decisions regarding standard production orders:
production orders require a routing

both planned (standard) costs and actual production costs are calculated for each production
order.
Data Order Define order type-dependent parameters

You are in the Change View Order Type-Dependent Parameters: Overview: Overview screen.
Click on (NEW ENTRIES).

Plant Key that uniquely identifies a plant. Your Plant Dallas
Order Type Key that differentiates orders according to their purpose. Standard Production
order
Routing Selection Controls per plant and order type how the selection of a Routing Mandatory
routing/reference operation set is to be carried out. (automatic selection)
BOM Application Represents a process for automatic determination of Production General
alternatives in the different areas within a company.
Click on the Cost Accounting tab.

Cstg variant planned Key that specifies which costing variant Production Order: Planned
is used to determine the planned costs.
Cstg variant actual Key that specifies the costing variant that Production Order: Actual
is used to determine the actual costs.
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IV.2.8: Define Confirmation Parameters

Description: This is the fourth of four steps in which you specify parameters guiding the creation and
release of standard production orders in your Dallas plant.
You will specify confirmation parameters associated with the Dallas Plant. This step implements GBI
managements tactical philosophy regarding the confirmation of standard production orders:
at final confirmation, all production order components (raw materials and semi-finished
goods) are ready for issue and thus open reservations are cleared.

Operations Confirmation Define Confirmation Parameters

You are in the Change View Parameters for Order Confirmation: Overview screen.

Order Type Key that differentiates orders according to their purpose. Standard Production order
Click on the Individual Entry General tab.

Confirmation Type Specifies what sort of confirmation is to be automatically Final
proposed. Confirmation
Clear Open Specifies that with a final confirmation the indicator Final Selected
Reservations issue is also set for components that are not backflushed.
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IV.2.9: Carry Out Maintenance of Materials

Description: This is the first of two steps in which you specify MRP parameters.
In this step you will:

specify the number scheme by which production orders and other production-related
transaction will be numbered. For example, your first Planned Production Order in Dallas
will be Planned Order #1,
create an MRP controller (0##). The MRP controller is a planner (or group of planners)
responsible for the day-to-day planning activities,
specify other analytical measures (float, for example) that guide the MRP algorithm.
Navigation: SAP Customizing Implementation Guide Materials Management Consumption-Based

Planning Plant Parameters Carry Out Overall Maintenance of Plant Parameters

You are in the Plant Parameters for Material Requirements Planning screen.
Click on (CREATE).
In the Create Plant Parameters pop-up, enter the following information:

Click on (CREATE).
In the Create Plant Parameters pop-up, click on the icon.
You will receive a message that says Plant Parameters for Plant DL## can now be maintained.
In the Plant Parameters for Material Requirements screen, click on the icon.
In the Maintain Plant Parameters pop-up, click on the icon.
In the Maintain Plant Parameters screen, click on the icon.
In the Assign Number Ranges screen, click on the icon.
You will receive a message that says One entry chosen.
You are in the Change View Number Ranges for Planned Orders: Overview screen.
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Plnt Name 1 NRge pl.orders

Your Plant Dallas ## Plant Dallas 01
Click on (BACK).
You are in the Change View Number Ranges for Reservations: Overview screen.
Plnt Name 1 NR: StkTrns Res.

Click on (BACK).
You are in the Change View Number Ranges for Purchase Requisitions: Overview screen,
Plnt Name1 NR - PReq

Click on (BACK).
You are in the Change View Number Ranges for MRP Lists: Overview screen.
Plnt Name 1 No. Range MRP

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Click on (BACK).
You are in the Change View Number Range for Sim. Dependent Requirements: Overview screen
Plnt NR. SimDepRs

Your Plant Dallas 01
Click on (BACK).
In the Maintain Plant Parameters screen click on the icon.
You will receive a message that says No entries found that match selection criteria.
In the Change View MRP Controllers: Overview screen, click on the icon.

MRP Controller Specifies the number of MRP controller 0##
or group of MRP controllers responsible
for material planning for the material.
Name of MRP Controller Specifies the name of the MRP controller ## DL Controller
or group of MRP controllers responsible
for material requirements planning.
Click on (BACK). You will receive a message that says Only one entry chosen.
In the Change View MRP Controllers: Details screen, click on the icon.
In the Change View MRP Controllers: Overview screen, click on the icon.
In the Change View Floats for Scheduling: Overview screen, click on the icon.
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Plnt Marg. Opening Period Fl Bef. Fl After Rel. Per.

Your Plant Dallas 001 1 1 1 1
Click on (BACK). You will receive a message that says Only one entry chosen.
In the Change View Floats for Scheduling: Overview screen, click on the icon.
In the Change View Availability Check: Overview screen, enter the following information:
Plnt Rule for Availability Check

Your Plant Dallas PP Checking Rule
Click on (BACK).
You are in the Change View Default Values Purchasing/MRP: Details screen.

Scheduling: Info Rec/Agreemt Determines whether the planned delivery time in the Selected
record is used for scheduling in the planning run.
Schedule lines Indicator controls whether, during the planning run, Schedule lines
the system never creates schedule lines, only creates
schedule lines in the opening period, or whether it
creates schedule lines in the planning horizon.
Unknown Acct Assignment Account assignment for materials not valuated. Unknown
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IV.2.10: Carry Out Maintenance of Production

Description: This is the second of two steps in which you will specify MRP parameters.
You will specify that:

planned production orders will be converted to Production Orders with Order Type =
Standard.
if multiple Bills of Materials (BOM) or Routings are available, SAP will automatically
assign the production BOM and the production Routing.
Navigation: SAP Customizing Implementation Guide Production Material Requirements Planning

Plant Parameters Carry Out Overall Maintenance of Plant Parameters

You are in the Plant Parameters for Material Requirements Planning screen.
Click on (MAINTAIN).
In the Maintain Plant Parameters pop-up, enter the following information:

Click on (MAINATIN).
In the Conversion screen, click on the icon.
You are in the Change View Conv. Planned Ord. -> Prod.Ord., MRP Customizing: Overview screen.

Production order Key that differentiates orders Standard Production Order
Click on (BACK) twice.
In the Conversion screen, click on the icon.
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In the Plant Parameters: Reporting screen, click on the icon.
In the Change View Run-Time Statistics: Overview screen, enter the following information:

Display list Instructs the system to create a list of the planned materials. Selected
Frequency Determines if an entry is made in the runtime statistics. 1
Click on (BACK).
In the Plant Parameters: Reporting screen, click on the icon.
In the Change View BOM/Routing Selection: Overview screen, enter the following information:

BOM Sel ID Determines which BOM is to be used and 01 Production
with which priority for BOM selection.
Routing Sel ID Determines which routing is to be used and 01 Released (general)
with which priority for routing selection.
Click on (SAVE). You will receive a message that says Maintain selection ID in the parameters.
Click on (ENTER). You will receive a message that says Data was saved.
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IV.2.11: Define Valuation of Goods Received

Description: This is the first of two steps in which you configure SAP to automatically post General
Ledger transactions associated with the Production business process.
You will specify the General ledger accounts associated with the Receive Finished Goods process
step.
For example, when a Production Order is completed, and Finished Goods are received, the inventory
is valued at:
the actual cost as posted to the production order (if the Finished Good has moving average
price control), or
standard cost (if the finished good has standard price control).

Integration Define Valuation of Goods Received

You are in the Change View Valuation variants for order costing: Overview screen.

Val. Area Organizational level at which the material is valuated. Your Plant Dallas
Val. Var. Determines the price of goods receipts for materials. Production Order: Actual
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Part IV.3 Master Data

Master Data
Table of Contents
IV.3.1: Create Activity Type .......................................................................................................22
IV.3.2: Change Activity Output/Prices .......................................................................................23
IV.3.3: Determine Person Responsible .....................................................................................25
IV.3.4: Create Capacity .............................................................................................................26
IV.3.5: Create Work Centers .....................................................................................................28
IV.3.6: Create Raw Materials ....................................................................................................30
IV.3.7: Create Semi-Finished Good...........................................................................................32
IV.3.8: Create Finished Good ....................................................................................................34
IV.3.9: Create Bills of Materials .................................................................................................36
IV.3.10: Create Product Routings ..............................................................................................38
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IV.3.1: Create Activity Type

Description: This is the first of three steps in which you will define the labor needed to manufacture
products.
You will create activity types which describe the various forms of activity that can be performed at a
cost center. For simplicity, GBI uses only one activity type: LABOR.
You will implement GBI managements tactical decisions that LABOR is: measured in Hour (H),
evaluated for each cost center, and distributed to the Labor secondary cost element for management
accounting.
Navigation: SAP menu Accounting Controlling Cost Center Accounting Master Data
Activity Type Individual Processing Create

In the Create Activity Type: Initial Screen screen, enter the following information:

Activity Type Key uniquely identifying an activity type. LABOR
Valid From Date indicating as of when an entry is valid. First Day of Current Year
Click on (ENTER).
In the Create Activity Type: Basic Screen screen, enter the following information:

Name General description of the object. ## Labor Hours
Activity Unit Time or quantity unit used to post the Hour
consumed activity quantities.
CCtr categories Indicator determining for which cost center All Cost Center Cate
types an activity type is allowed for planning
and as a sender in activity allocation.
ATyp category Determining the method of activity planning Manual entry, manual
and allocation. allocation
Allocation cost elem A secondary cost element under which the Your Labor Allocation
activity type business process is allocated.
Price indicator Indicator showing how the system calculates Plan price, automatically
the price of a business process or activity type. based on activity
Make sure to use Hour(H) and not Hours(HR) for the Activity Unit.
Click on (SAVE). You will receive a message that says Activity type has been created.
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IV.3.2: Change Activity Output/Prices

Description: This is the second of three steps in which you will define the labor needed to
manufacture products.
You will specify how the LABOR activity is distributed between and among Cost Centers.
In Phase I, you created an Operations Cost Center Group composed of several Cost Centers. For each
of these Cost Centers, you will define the price of LABOR which will be used for product cost
calculations.
Navigation: SAP menu Accounting Controlling Cost Center Accounting Planning Activity
Output/Prices Change

In the Change Activity Type/Price Planning: Initial Screen screen, enter the following information:

Version A collection of year-dependent indicators for planning data. Plan/Act Version
From Period A planning period is the smallest closed unit of a fiscal year 1
in which plan data can be entered and stored in the system.
To Period A planning period is the smallest closed unit of a fiscal year 12
in which plan data can be entered and stored in the system.
Fiscal year Period when a company creates inventory. Current Year
Cost Center group Organizational unit for grouping together cost centers. Your Operations
Activity Type A description of the activity produced by a cost center. LABOR
Click on (OVERVIEW SCREEN).
In the Change Activity Type/Price Planning: Overview Screen screen, enter the following information:
Activity Plan Activity Distribution key Distribution key Variable price

LABOR 100000 Distribution as before Distribution as before 10
Click on (NEXT COMBINATION).
Repeat this for the rest of the cost centers within the group.
Click on (SAVE). You will receive a message that says Changed data has been posted.
In the Change Activity Type/Price Planning: Initial Screen screen, enter the following information:

Fiscal year Period for which a company creates its inventory and balance sheet. Year After Current
Click on (OVERVIEW SCREEN).
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In the Change Activity Type/Price Planning: Overview Screen screen, enter the following information:
Activity Plan Activity Distribution key Distribution key Variable price

LABOR 100000 Distribution as before Distribution as before 10
Click on (NEXT COMBINATION).
Repeat this for the rest of the cost centers within the group.
Click on (SAVE). You will receive a message that says Changed data has been posted.
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IV.3.3: Determine Person Responsible

Description: You will create a person (## Steve Barton) responsible for maintaining Work Center
master data. Note that this person is not responsible for Work Center planning, but rather for
maintaining Work Center parameters.
Navigation: SAP Customizing Implementation Guide Production Basic Data Work Center
General Data Determine person responsible

You are in the Change View Person Responsible for Work Center: Overview screen.
Plnt Pers. Respons. Person responsible for work center

Your Plant Dallas 0## ## Steve Barton
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IV.3.4: Create Capacity

Description: In order to plan production, GBI must understand the manufacturing capacity at each
Plant and Work Center.
GBI has two types of capacity: person hours and machine hours. GBIs Dallas plant has three people
and three machines, both available during day shift only.
Navigation: SAP menu Logistics Production Master Data Work Centers Capacity
Create

In the Create Capacity: Initial Screen screen, enter the following information:

Capacity Description by which the capacity is created. SHIFT
Capacity category Key which describes capacity in more detail. Person
Click on (ENTER).
In the Create Capacity: Header screen, enter the following information:

Capacity short text Describes the capacity in more detail. ## Standard Day Shift
Capacity planner grp Key referring to the capacity planner group. Planner group A
Base unit of meas. Unit in which capacity is maintained. Hour
Start Start of the shift. 08:00:00
Finish End of the shift. 17:00:00
Length of breaks Total break time per shift. 01:00:00
Capacity utilization The relationship between a machines actual 100
capacity and its theoretical capacity.
No. of indiv. cap. Number of elements which make up a group. 3
Relevant to finite Specifies that the system should take the Selected
scheduling available capacity and the load of this
capacity into account during finite scheduling.
Click on (SAVE).
You will receive a message that says Capacity SHIFT plant DL## category 002 created.
In the Create Capacity: Initial Screen screen, enter the following information:

Capacity category The capacity category enables you to determine Machine
whether it is machine or labor capacity.
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Click on (ENTER).
In the Create Capacity: Header screen, enter the following information:

Capacity short text Describes the capacity in more detail. ## Standard Day Shift
Capacity planner grp Key referring to the capacity planner group. Planner group A
Base unit of meas. Unit in which capacity is maintained. Hour
Start Start of the shift. 08:00:00
Finish End of the shift. 17:00:00
Length of breaks Total break time per shift. 01:00:00
Capacity utilization The relationship between a machines actual 100
capacity and its theoretical capacity.
No. of indiv. cap. Number of elements which make up a group. 3
Relevant to finite scheduling Specifies that the system should take the Selected
available capacity and the load of this
capacity into account during finite scheduling.
Click on (SAVE).
You will receive a message that says Capacity SHIFT plant DL## category 001 created.
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IV.3.5: Create Work Centers

Description: You will create Work Centers at your Dallas plant and associate each Work Center with
a Work Center Location, Cost Center, and Person Responsible.
Work Centers are locations at which value-added work associated with the manufacturing process is
carried out. GBI has identified five work centers at the Dallas plant. Each Work Center is associated
with Activity Types and Capacity Categories in order to carry out production and capacity planning.
Navigation: SAP menu Logistics Production Master Data Work Centers Work Center
Create

In the Create Work Center: Initial Screen screen, enter the following information:

Work center Key identifying the work center. ASSY10##
Work center cat. Key which distinguishes the work centers. Labor
Click on (ENTER).
In the Create Work Center: Basic Data screen, enter the following information:

Description Description ## DL Assembly
Person responsible The person or group who is Your Person Responsible
responsible for the work center.
Location Physical location of the work center. DALLAS TX
Usage Controls which type of task list used. Only routings
Standard value key Dimension to one of up to six values. Normal production
Click on (ENTER).
Enter the following information at the bottom of the screen:
Key Word Rule for Mant.

Setup should be entered
Labor should be entered
Click on the Default Values tab.
In the Create Work Center: Default Values screen, enter the following information:

Control key Determines which business transactions should be Routing/Ref. op. set internal proc.
executed for the object that belongs to the order.
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Parameter Standard Value Unit

Setup Minute
Labor Minute
Click on the Scheduling tab.
In the Create Work Center: Scheduling screen, enter the following information:

Capacity category Enables the determination of whether it is machine or labor. Person
Capacity Capacity name SHIFT
Setup formula Formula used in scheduling to calculate the setup time. Prod.: Setup time
Processing formula Formula used in scheduling to determine the processing time. Prod.: Labor time
Click on the Costing tab.
In the Create Work Center: Cost Center Assignment screen, enter the following information:

Cost Center Key uniquely identifying a cost center. Your Production Costs
Alt activity descr. Activity Type Formula key

Setup LABOR Prod.: Setup time
Labor LABOR Prod.: Labor time
Click on (SAVE).
You will receive a message that says Work center ASSY10## in plant DL## was created.
You have just created your Assembly work center in the steps above. Appendix F contains data about all
of the Work Centers in GBI. Use the data in appendix F to create the following Work Centers:
INSP10##, MANT10##, PACK10##, and SERV10##. Create each of the work centers using the steps
above.
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IV.3.6: Create Raw Materials

Description: This is the first of three steps in which you create materials for testing the Production
process.
You will create Raw Material by copying from the material master in Company Code US00.
Raw Materials (Material Type = ROH) are materials purchased from an external source and used in
the production process. The material master for Raw Materials therefore contains both purchasing
data and MRP data.
You will begin by copying Socket Head Bolt 5x20mm (BOLT1000) from Company Code US00. You
will renumber the original bolts and change the description. You will associate your Raw Materials
with your Purchasing Group (N##) created in Phase II and your MRP Controller (0##) created earlier
in this Phase.
Navigation: SAP menu Logistics Materials Management Material Master Material

Create (Special) Raw Material

In the Create Raw Material (Initial Screen) screen, enter the following information:

Material Key uniquely identifying the material. BOLT10##
Industry sector Industry to which the material is assigned. Mechanical engineering
Copy fromMaterial Material you want the system to copy. BOLT1000
Click on (ENTER).
In the Select View(s) pop-up, highlight the Basic Data 1 row.
Highlight the Purchasing row.
Highlight the MRP1 row.
Highlight the General Plant Data / Storage 1 row.
Highlight the Accounting 1 row.
Highlight the Costing 1 row.
Click on (SAVE AS DEFAULT VALUES).
Click on (CONTUNUE (ENTER)).
In the Organizational Levels pop-up, enter the following information:
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Stor. Location The storage location at which the material is stored. Your Raw Materials
Copy from Plant Plant of the reference material. DL00
Copy from Stor. Location Storage location of the reference material. RM00
You will receive a message that says The material already exists and will be extended.
In the Create Raw Material BOLT10## screen, enter the following information:

Material Description (Short Text) Material Description ## Socket Head Bolt 5x20mm
Purchasing Group A buyer or a group of buyers. Your Purchasing Group
Click on (ENTER).

MRP Controller Specifies the number of the MRP Controller or group Your DL Controller
of MRP controllers responsible for material planning.
Click on (ENTER) until you reach the last tab.
Click on (ENTER).
In the Last data screen reached pop-up, click on the icon.
You will receive a message that says Material BOLT10## created.
You have just created your Socket Head Bolt in the steps above. Appendix G contains data about all of
the Raw Materials in GBI. Use the data in appendix G to create the following Raw Materials:
BOLT10##, BRKT10##, CHAN10##, DGAM10##, HXNT10##, LWSH10##, PCKG10##, PEDL10##,
TRFR30##, TRHB10##, TRSK10##, TRTB10##, TRTR10##, TRWH10##, WDOC10##. Create each of
the materials with the same views you used above.
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IV.3.7: Create Semi-Finished Good

Description: This is the second of three steps in which you create materials for testing the Production
process.
You will create a Semi-Finished Good by copying from the material master in Company Code US00.
Semi-Finished Goods (Material Type = HALB) are produced in-house from other materials (raw
materials and/or semi-finished goods) and are used in the production of Finished Goods. The material
master for Semi-Finished Goods therefore contains both production data and MRP data.
You will copy the Touring Aluminum Wheel Assembly (TRWA1000) from Company Code US00,
renumber the original assembly, and change the description. You will associate your Semi-Finished
Good with your MRP Controller (0##) and Production Scheduler (0##) created earlier in this Phase.

Create (Special) Semifinished Product

In the Create Semifinished Product (Initial Screen) screen, enter the following information:

Material Key identifying the material. TRWA10##
Copy fromMaterial Material you want to copy from. TRWA1000
Click on (ENTER).
Highlight the Work Scheduling row.
Click on (CONTUNUE (ENTER)).

Stor. Location Location at which the material is stored. Your Semi-Finished Goods
Copy from Stor. Location Storage location of the reference material. SF00
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In the Create Semifinished Product TRWA10## screen, enter the following information:

Material Description (Short Text) Material Description ## Touring Aluminum Wheel Assembly
MRP Controller Controller responsible Your DL Controller
for material planning.
Click on (ENTER).

In-house production The time in workdays needed to produce the material in-house. 1
Click on (ENTER).

Prodn Supervisor Responsible for materials in production. Your DL Production Scheduler
Click on (ENTER).
You will receive a message that says Material TRWA10## created.
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IV.3.8: Create Finished Good

Description: This is the third of three steps in which you create materials for testing the Production
process.
You will create a Finished Good by copying from the material master in Company Code US00.
Finished Goods (Material Type = FERT) are produced in-house from other materials (raw materials
and/or semi-finished goods) and are sold to a Customer. The material master for Finished Goods
therefore contains production data, MRP data, and sales data.
You will copy the Deluxe Touring Bike (red) (DXTR3000) from Company Code US00, renumber the
original assembly, and change the description. You will associate your new Finished Good with your
MRP Controller (0##) and Production Scheduler (0##) created earlier in this Phase.

Create (Special) Finished Product

In the Create Finished Product (Initial Screen) screen, enter the following information:

Material Key identifying the material. DXTR30##
Copy fromMaterial Material you want to copy from. DXTR3000
Click on (ENTER).
Highlight the Work Scheduling row.
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Stor. Location Location at which the material is stored. Your Finished Goods
Copy from Stor. Location Storage location of the reference material. FG00
In the Create Finished Product DXTR30## screen, enter the following information:

Material Description (Short Text) Material Description ## Deluxe Touring Bike (red)
MRP Controller MRP Controller responsible for Your DL Controller
material planning for the material.
Click on (ENTER).

In-house production The time in workdays needed to produce the material in-house. 1
Click on (ENTER).

Prodn Supervisor Responsible for materials in production. Your DL Production Scheduler
Click on (ENTER).
You will receive a message that says Material DXTR30## created.
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IV.3.9: Create Bills of Materials

Description: You will create Bills of Material (BOM) for use at Dallas by copying from Company
Code US00.
A BOM is a structured list of all the components and their quantities that make up a manufactured
good. You will create BOMs for both your Semi-Finished Good and your Finished Good. Note that
the Bill of Material is developed for an individual plant, so GBI can use different Bills of Materials for
the same manufactured good as local plant needs dictate.
You will copy the BOM from the Dallas Plant (DL00) in Company Code US00; and change each
component from the original material (example, BOLT1000) to your material (example, BOLT10##).
Navigation: SAP menu Logistics Production Master Data Bills of Material Bill of
Material Material BOM Create

In the Create material BOM: Initial Screen screen, enter the following information:

Material Key uniquely identifying the material. Your Touring Aluminum Wheel Assembly
BOM Usage Defines the area where a BOM can be used. Production
Click on (COPY FROM).
In the Copy From pop-up, enter the following information:

Material Key uniquely identifying the material. Original Touring Aluminum Wheel Assembly
Plant Key uniquely identifying a plant. Original Plant Dallas
In the Create material BOM: Copy From screen, click on the icon.
Click on (COPY).
You will receive an error that says Material TRTR1000 not maintained in plant DL##.
In the Create material BOM: Item: General data screen, enter the following information:

Component Material number of the components that you enter. Your Touring Tire
Click on (ENTER).
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You will receive an error that says Material TRTB1000 not maintained in plant DL##.
Repeat this to add the rest of your raw materials to your touring wheel assembly bill of materials.
You are now in the Create material BOM: General Item Overview screen.
Click on (SAVE). You will receive a message that says Creating BOM for material TRWA10##.
In the Create material BOM: Initial Screen screen, enter the following information:

Material Alphanumeric key uniquely identifying the material. Your Deluxe Touring Bike (red)
In the Copy From pop-up, enter the following information:

Material Alphanumeric key uniquely identifying the Original Deluxe Touring Bike (red)
material.
In the Create material BOM: Copy From screen, click on the icon.
Click on (COPY).
You will receive an error that says Material TRWA1000 not maintained in plant DL##.
In the Create material BOM: Item: General data screen, enter the following information:

Component Number of the components that you enter. Your Touring Aluminum Wheel Assembly
Click on (ENTER).
You will receive an error that says Material TRFR3000 not maintained in plant DL##.
Repeat this to add all of your raw materials to your deluxe touring bike (red) bill of materials.
You are in the Create material BOM: General Item Overview screen.
Click on (SAVE). You will receive a message that says Creating BOM for material DXTR30##.
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IV.3.10: Create Product Routings

Description: This is the third of three steps in which you will define the labor needed to manufacture
products.
You will create Product Routings for use at Dallas by copying from Company Code US00.
A Product Routing describes the sequence of operations required to produce a manufactured good.
Examples of operations include assembly, inspection, and packing. Each operation is associated with
a Work Center.
Note that:
the Routing is developed for an individual plant, so GBI can use different Routings for the
same manufactured good as local plant needs dictate.
each operation includes setup time, machine time, and labor time. This data allows GBI to do
capacity planning and product costing.
You will copy the Routing from the Dallas Plant (DL00) in Company Code US00; and change each
Work Center from the original Work Center (example, ASSY1000) to your Work Center (example,
ASSY10##).
Navigation: SAP menu Logistics Production Master Data Routings Routings Standard
Routings Create

In the Create Routing: Initial Screen screen, enter the following information:

Material Key uniquely identifying the material. Your Touring Aluminum Wheel Assembly
In the Select Type pop-up, click on the icon.
You are in the Create Using Copy Function: Select Object to be Copied pop-up.

Material Key uniquely identifying the material. Original Touring Aluminum Wheel Assembly
In the Create Routing: Header Data Check screen, enter the following information:
SAP AG Page 38
Status You use the status key to indicate the processing status of a task list. Released (general)
Click on (ENTER).
You will receive an error that says Work center ASSY1000 does not exist in plant DL##.
In the Create Routing: Operation Check screen, enter the following information:

Click on (ENTER).
In the Information pop-up, click on the icon.
You will receive a message that says Enter standard value Setup.
In the Create Routing: Operation Check screen, click on the icon.
Click on (ENTER).
Repeat this to add the rest of your work centers to your touring wheel assembly product routing.
In the Create Routing: Operation Overview screen, click on the icon.
You will receive a message that says Routing was saved with group and material TRWA10##.
In the Create Routing: Initial Screen screen, enter the following information:

Material Alphanumeric key uniquely identifying the material. Your Deluxe Touring Bike (red)
Make sure to clear the group field in the Create Routing: Initial Screen before creating the
DXTR30## routing.
In the Select Type pop-up, click on the icon.
You are in the Create Using Copy Function1: Select Object to be Copied pop-up.
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Material Alphanumeric key uniquely identifying the Original Deluxe Touring Bike (red)
material.
In the Create Routing: Header Data Check screen, enter the following information:

Status You use the status key to indicate the processing status of a task list. Released (general)
Click on (ENTER).
You will receive an error that says Work center ASSY10## does not exist in plant DL##.
In the Create Routing: Operation Check screen, enter the following information:

Click on (ENTER).
In the Information pop-up, click on the icon.
In the Create Routing: Operation Check screen, click on the icon.
Click on (ENTER).
Repeat these steps to add the rest of your work centers to your deluxe touring bike (red) product routing.
In the Create Routing: Operation Overview screen, click on the icon.
You will receive a message that says Routing was saved with group and material DXTR30##.
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Part IV.4 Process Execution

Master Data
Table of Contents
IV.4.1: Create Initial Inventory Balances....................................................................................42
IV.4.2: Create Planned Order for Semifinished..........................................................................44
IV.4.3: Convert Planned Order for Semifinished ........................................................................45
IV.4.4: Issue Materials to Production Order I .............................................................................46
IV.4.5: Confirm Production for Semifinished ..............................................................................47
IV.4.6: Receive Semifinished Into Inventory ..............................................................................48
IV.4.7: Create Planned Order for Finished Goods .....................................................................49
IV.4.8: Convert Planned Order for Finished...............................................................................50
IV.4.9: Issue Materials to Production Order II ............................................................................51
IV.4.10: Confirm Production for Finished Goods .......................................................................52
IV.4.11: Receive Finished Goods into Inventory ........................................................................53
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IV.4.1: Create Initial Inventory Balances

Description: Testing of the production process is organized into three parts:
Create raw material inventory balance (IV.4.1)
Produce semi-finished good (Touring Aluminum Wheel Assembly) (IV.4.2 6)
Product finished good (Deluxe Touring Bike (red) (IV.4.7 11)
In this step, you create the raw material inventory balance required to produce 10 bikes. Normally, the
material planning process would create purchase requisitions for the necessary raw materials. You
would then execute the procurement process and receive these materials into inventory.
However, for the purpose of this exercise, we will take a shortcut and create inventory from heaven
using a special movement type (561). Recall that earlier in this Phase, you create the General Ledger
accounts required for this special movement type.
Navigation: SAP menu Logistics Materials Management Inventory Management Goods

Movement Goods Receipt Other

In the Enter Other Goods Receipts: Initial Screen screen, enter the following information:

Movement Type Goods Movement Type Receipt per initial entry of stock balances into unr.-use
Storage Location Location at which the Your Raw Materials
material is stored.
Click on (ENTER).
In the Enter Other Goods Receipts: New Items screen, enter the following information:
Material Quantity UnE Plant

BOLT10## 20 EA Your Plant Dallas
BRKT10## 10 EA Your Plant Dallas
CHAN10## 10 EA Your Plant Dallas
DGAM10## 10 EA Your Plant Dallas
HXNT10## 20 EA Your Plant Dallas
LWSH10## 40 EA Your Plant Dallas
PCKG10## 10 EA Your Plant Dallas
PEDL10## 10 EA Your Plant Dallas
TRFR30## 10 EA Your Plant Dallas
TRHB10## 10 EA Your Plant Dallas
TRSK10## 10 EA Your Plant Dallas
TRTB10## 20 EA Your Plant Dallas
TRTR10## 20 EA Your Plant Dallas
TRWH10## 20 EA Your Plant Dallas
WDOC10## 10 EA Your Plant Dallas
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You may need to press the (NEW ITEMS) button in order to get to another screen where you can
enter the rest of the materials.
Click on (SAVE). You will receive a message that says Document posted.
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IV.4.2: Create Planned Order for Semi-finished

Description: This is the first of five steps to test production of your Semi-Finished Good (Touring
Aluminum Wheel Assembly).
You will manually create a planned production order for your wheel assembly. Normally, the material
planning process (MRP) would evaluate the demand for bikes, and create planned production orders
for the correct quantity of wheel assemblies. However, for the purpose of this exercise, you have
manually determined that you need 10 bikes (DXTR30##). To manufacture the bikes, you need 20
wheel assemblies (TRWA10##).
The planned production order for 20 Wheel Assemblies is sent to the Dallas production schedulers
specifying when the wheel assemblies must be available in inventory.
Navigation: SAP menu Logistics Production MRP Planned Order Create

In the Create Planned Order: Initial Screen screen, enter the following information:

Planned order profile Profile that determines the order type, the procurement Stock Order
type, the special procurement type, and the account
assignment type for processing the planned order.
Click on (ENTER).
In the Create Planned Order: Stock order screen, enter the following information:

Material Number of the material for the order. Your Touring Aluminum Wheel Assembly
Order quantity Quantity to be produced or ordered 20
according to the planned order.
Ord.finish Date that you should expect either the One Week from Today
completion or the delivery of the order.
Producing plant Plant in which the order quantity of the Your Plant Dallas
internally produced material is to be
produced according to the planned order.
Stor. Location Location at which the material is stored. Your Semi-Finished Goods
Click on (SAVE). You will receive a message that says Planned order will be created.
SAP AG Page 44
IV.4.3: Convert Planned Order for Semi-finished

Description: This is the second of five steps to test production of your Semi-Finished Good (Touring
You will manually convert your planned production order (PldOrd) into a production order (PrdOrd).
This authorizes that production may begin.
Note that after conversion, the production scheduler is able to change components, quantities, or
dates.
Navigation: SAP menu Logistics Production MRP Evaluations Stock/Requirements List
Be sure that the system defaults your wheel assembly into the material field.
In the Stock/Requirements List: Initial Screen screen, click on the icon.
In the Stock/Requirements List screen, double-click on PldOrd.
In the Additional Data for MRP Element pop-up, click on the icon.
You will receive a message that says Release carried out.
In the Production order Create: Header screen, click on the icon.
You will receive a message that says Order number saved.
SAP AG Page 45
IV.4.4: Issue Materials to Production Order I

Description: This is the third of five steps to test production of your Semi-Finished Good (Touring
You will manually release (issue) the raw materials needed to produce the 20 wheel assemblies. This
goods issue transaction posts the raw material costs to the production order, and decreases inventory
from the Raw Materials storage location.
Navigation: SAP menu Logistics Production Shop Floor Control Goods Movements
Goods Issue

In the Enter Goods Issue: Initial Screen screen, enter the following information:

Movement Type Number the system uses to determine the Consumption for order from
rules for updating quantities and values warehouse
in the relevant general ledger accounts.
Storage Location Location at which the material is stored. Raw Materials
Click on (TO ORDER).
In the Reference: Order pop-up, enter the following information:

Order Number of production order to which you issue the materials. Production Order Number
In the Enter Goods Issue: Selection Screen screen, click on the icon.
You will receive a message that says Document posted.
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IV.4.5: Confirm Production for Semi-finished

Description: This is the fourth of five steps to test production of your Semi-Finished Good (Touring
In the previous step, you released raw material to the production order. You will now confirm the
completion of the wheel assemblies. Your Dallas plant completed all 20 wheel assemblies, so you
verify a yield of 20.
Navigation: SAP menu Logistics Production Shop Floor Control Confirmation Enter
For Order

In the Enter Production Order Confirmation: Initial Screen screen, enter the following information:

Order Number which identifies an order number. Production Order Number
Click on (ENTER).
In the Confirmation of Production Order Enter: Actual Data screen, enter the following information:

Yield to conf. Yield that you want to confirm for the operation. 20
Click on (SAVE). You will receive a message that says Confirmation of order saved.
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IV.4.6: Receive Semi-finished Into Inventory

Description: This is the last of five steps to test production of your Semi-Finished Good (Touring
In the previous step, you confirmed the yield of the production process. You will now receive the 20
wheel assemblies into inventory. This goods receipt transaction increases inventory in the Semi-
Finished Goods storage location.
Goods Receipt

In the Goods Receipt for Order: Initial Screen screen, enter the following information:

Movement Type Goods Movement Type Good receipt for order into warehouse
Order Identifies an order within a client. Production Order Number
Storage Location Location at which the material is stored. Your Semi-Finished Goods
Click on (ADOPT + DETAILS).
In the Goods Receipt for Order: New Items 0001 screen, enter the following information:

Deliv. Compl. Indicates that the item is to be regarded as closed. Selected
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IV.4.7: Create Planned Order for Finished Goods

Description: This is the first of five steps to test production of your Finished Good (Deluxe Touring
Bike (red)).
You will manually create a planned production order for your touring bikes. Normally, the material
planning process (MRP) would evaluate the demand for bikes, and create planned production orders
for the correct quantity of red touring bikes. However, for the purpose of this exercise, you have
manually determined that you need 10 bikes (DXTR30##).
The planned production order for 10 bikes is sent to the Dallas production schedulers specifying when
the bikes must be available in inventory.
Navigation: SAP menu Logistics Production MRP Planned Order Create

In the Create Planned Order: Initial Screen screen, click on the icon.
In the Create Planned Order: Stock order screen, enter the following information:

Material Number of the material. Your Deluxe Touring Bike (red)
Order quantity Quantity to be produced or ordered 10
according to the planned order.
Ord.finish Date, according to the planned order, that One Week from Today
you should expect either the completion or
the delivery of the planned order quantity.
Producing plant Plant in which the order quantity of the Your Plant Dallas
internally produced material is to be
produced according to the planned order.
Stor. Location Location at which the material is stored. Your Finished Goods
Click on (SAVE). You will receive a message that says Planned order will be created.
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IV.4.8: Convert Planned Order for Finished

Description: This is the second of five steps to test production of your Finished Good (Deluxe
Touring Bike (red)).
You will manually convert your planned production order into a production order. This authorizes that
production may begin.
Navigation: SAP menu Logistics Production MRP Evaluations Stock/Requirements List

In the Stock/Requirements List: Initial Screen screen, click on the icon.
In the Stock/Requirements List screen, double-click on PldOrd.
In the Additional Data for MRP Element pop-up, click on the icon.
You will receive a message that says Release carried out.
In the Production order Create: Header screen, click on the icon.
You will receive a message that says Order number saved.
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IV.4.9: Issue Materials to Production Order II

Description: This is the third of five steps to test production of your Finished Good (Deluxe Touring
Bike (red)).
You will manually release (issue) the raw materials and semi-finished goods needed to produce the 10
bikes. This goods issue transaction posts the raw material and semi-finished goods costs to the
production order, and decreases inventory from the Raw Materials storage location and from the
Semi-Finished Goods storage location.
Goods Issue

In the Enter Goods Issue: Initial Screen screen, enter the following information:

Movement Number the system uses to determine the rules for updating Consumption for order
Type quantities and values in the relevant ledger accounts. from warehouse
Storage Number of the storage location at which the material is stored. Your Raw Materials
Location A plant may contain one or more storage locations.
Click on (TO ORDER).
In the Reference: Order pop-up, enter the following information:

Order Order Number Production Order Number
In the Enter Goods Issue: New Item 0001 screen, enter the following information:
Material Quantity SLoc

Your Touring Aluminum Wheel Assembly 20 Your Semi-Finished Goods
Click on (ADOPT).
In the Enter Goods Issue: New Item 0002 screen, click on the icon.
Repeat this for the remaining materials.
Keep in mind that the rest of the materials are all raw materials.
In the Enter Goods Issue: Overview screen, click on the icon.
You will receive a message that says Document posted.
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IV.4.10: Confirm Production for Finished Goods

Description: This is the fourth of five steps to test production of your Finished Good (Deluxe
Touring Bike (red)).
In the previous step, you released raw materials and semi-finished goods to the production order. You
will now confirm completion of the bikes. Your Dallas plant completed all 10 bikes, so you verify a
yield of 10.
Navigation: SAP menu Logistics Production Shop Floor Control Confirmation Enter
For Order

In the Enter Production Order Confirmation: Initial Screen screen, enter the following information:

Order Order of which you wish to confirm production. Production Order Number
Click on (ENTER).
In the Confirmation of Production Order Enter: Actual Data screen, enter the following information:

Yield to conf. Yield that you want to confirm for the operation. 10
Click on (SAVE). You will receive a message that says Confirmation of order saved.
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IV.4.11: Receive Finished Goods into Inventory

Description: This is the fifth of five steps to test production of your Finished Good (Deluxe Touring
Bike (red)).
In the previous step, you confirmed the yield of the production process. You will now receive the 10
bikes into inventory. This goods receipt transaction increases inventory in the Finished Goods storage
location.
Goods Receipt

In the Enter Receipt for Order: Initial Screen screen, enter the following information:

Movement Type Movement Good receipt for order into warehouse
Order Number which identifies an Production Order Number
order within a client.
Storage Location Number of the storage location Your Finished Goods
at which the material is stored.
In the Goods Receipt for Order: Items 0001 screen, enter the following information:

Deliv. Compl. Indicates that the item is to be regarded as closed. Selected
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CASE STUDY

SAP ERP Configuration Phase IV

Product MOTIVATION PREREQUISITES

Also, thanks to Corrie Fiedler

Overview and Table of Contents

Enterprise Rules and Process

General Notes and Cautions

In the Customizing: Execute Project screen, click on the icon.

Attribute Description Data Value

Click on (CONTINUE (ENTER)).

Attribute Description Data Value

Click on (CONTINUE (ENTER)).

Attribute Description Data Value

Part IV.1 Enterprise Structure

Enterprise Rules and Process

IV.1.1: Determine Work Center Location

Warning: See General Notes and Cautions about table locks.

Navigation: SAP Customizing Implementation Guide Enterprise Structure Definition Logistics

Tasks and Data Entry:

In the Change View Locations: Overview screen, click on the icon.

Plnt Location Name

Attribute Description Data Value

In the Street Address part, click on the icon.

Enter the following information:

Attribute Description Data Value

You will receive a message that says Data was saved.

Part IV.2 Rules and Parameters

Enterprise Rules and Process

IV.2.1: Define Production Scheduling Profile

automatically released and scheduled without manual intervention.

Warning: See General Notes and Cautions about table locks.

Tasks and Data Entry:

Attribute Description Data Value

IV.2.2: Define Production Scheduler

Warning: See General Notes and Cautions about table locks.

Tasks and Data Entry:

Attribute Description Data Value

IV.2.3: Configure Automatic Postings

Inventory Raw Materials (specified in a previous step)

Warning: See General Notes and Cautions about table locks.

Navigation: SAP Customizing Implementation Guide Materials Management Valuation and

Tasks and Data Entry:

In the Maintain FI Configuration: Automatic Posting Procedures screen, double-click on GBB.

You are in the Maintain FI Configuration: Automatic Posting Accounts screen.

Enter the following information:

Val. modif. Gen. modif. Valuation class Account

IV.2.4: Activate Material Requirements Planning

Warning: See General Notes and Cautions about table locks.

Navigation: SAP Customizing Implementation Guide Materials Management Consumption-Based

Tasks and Data Entry:

In the Activation screen, click on the icon.

Enter the following information:

Plnt Activate requirements planning

IV.2.5: Define Checking Control

Warning: See General Notes and Cautions about table locks.

Navigation: SAP Customizing Implementation Guide Production Shop Floor Control

Tasks and Data Entry:

Highlight the DL00 Plant PP01 2 row.

Attribute Description Data Value

Enter the following information:

Attribute Description Data Value

You will receive a message that says Data was saved.

IV.2.6: Define Scheduling Parameters

orders are backwards scheduled, rather than forward scheduled.