ABSTRACT

THIS PORTFORLIO ASSIGNMENT IS DESIGNED

TO PROVE MY SAP SKILLS WHICH I LEARNED
THROUGHOUT THE COURSE
Saravanan Jeyakanthan

SAP PORTFOLIO
Intro to Business Processes

Saravanan Jeyakanthan
Contents
Overview ................................................................................................................................................. 2
Project steps ........................................................................................................................................... 2
Inquiry ..................................................................................................................................................... 2
Post Outgoing payments ......................................................................................................................... 4
Production Orders................................................................................................................................... 6
Credit Management .............................................................................................................................. 10
Bill of Materials ..................................................................................................................................... 12
Conclusion ............................................................................................................................................. 17
 SAP Final Portfolio
Overview
Fitter Snackers is the company we designed on SAP server to work on SAP. We are a
snack bar company producing two types of energy bars NRG-A and NRG-B with different
combination. We have two workstations Mixer and bake line. First the raw materials are
brought to the mixer where dough is prepared in batches (500 pounds per batch) and then
the dough is taken to the bake line where 7 cases of bars are produced. We record
everything in SAP from purchasing to production and also sales to keep our business
updated and inform everyone in the system

Project steps

Inquiry
 Meijer Inc., one of our customer calls and asks about the availability of NRG-B bars.
We record this in our SAP to be informed of the inquiry and also to have this inquiry
for future reference. To do this we will just create a new inquiry in our SAP system.

The Item conditions tab gives us the information about the cost associated with the
order.

 This step is regarding our purchasing of raw materials from the vendor. We are
ordering honey to be delivered two weeks in the future and we start by checking the
stock requirements list for Honey.
The next step is placing our requisition for the order to inform our department about
the purchase.

After the requisition is placed, we have to create a purchase order selecting one of
the vendor based on best terms.
 After the goods are received goods receipt is issued to indicate that the goods have
been received by us. Then the next step is to ensure the invoice receipt which is
done to indicate SAP that we have to pay for the 500 gallons of honey we received.

After posting the invoice document it is our duty to pay for the invoice and record it
in our SAP to keep our business informed.

Post Outgoing payments

 We are going to now create a Sales order for our customer Meijer Inc. from their
previous inquiry. To do this we must create an order with reference to their previous
inquiry.
 After creating the order, we need to inform the warehouse about the delivery for the
Order. This is done by creating an outbound delivery.

The next step is picking the order where we ensure that the goods are picked from
the warehouse and the current inventory level is updated to avoid any discrepancies.
 The nest part is shipping the product to the customer which is simply done by clicking
on the post goods issue on the Change outbound delivery screen.

Finally we ensure that the customer is notified about the payment by sending an
invoice to them.

Production Orders
 In this step I am recording the production process of NRG-A bars. I am starting by
showing the initial inventory of NRG-A bars.
 We can see that after creating the production order for NRG-A dough, now the
stock requirements lists updated the first planned order into production order.

The goods issue is done to ensure that the raw materials are being brought to the
mixer for preparing NRG-A dough.
 After producing the dough for NRG-A bars, goods receipt is done to ensure the
amount of goods received.
After creating the dough for NRG-A we have to create the production order for 7
cases of NRG-A bars. Here in stock requirements list, we have converted our first planned
order into production order for NRG-A bars.
 Goods issue is done to ensure that the dough is brought to the bake line for the
production of NRG-A bars.

In the next step the confirmation of order is saved to indicate that the bars are now
being produced.

After receiving the goods we update in our SAP to indicate that now we have 7 cases
of NRG-A bars produced from our bake line.
 Finally after the production of NRG-A bars when we check the stock requirements
list, we can now see that we have 14 cases of NRG-A in stock.

 We are going to record the payment for the previous order from our customer
Meijer Inc. for 4 cases of NRG-B bars. We have to update this in the SAP using the
Post incoming payments to inform our business that the payment is received.

Credit Management
 We can edit the customer’s credit limit by using master data change option in credit
management menu. Changing the credit limit helps us to ensure that the customer is
not placing orders over the limit and helps us to keep an account on every customer.
  While creating the credit limit, we can also set the messages we get when a
customer tries to place an order above the credit limit, the Sales order also won’t go
through unless someone from the credit department releases the blocked Sales
Order documents that are over the limit provided.

In this case, we get an error message that says dynamic credit check exceeded when
our customer, Health express tries to place an order that’s above limit.

 To release the blocked Sales order, we need to find the document under blocked SD
documents in credit management to review the document and release the
document so that the order will now be processed over the limit.
 The next step is now to create the outbound delivery for our order to ensure that
the people in warehouse are informed about this order and make the order ready for
delivery.

After the outbound delivery is created, we now know that the order is ready for
picking from the warehouse.

Bill of Materials
 Bill of Materials involves all the materials that are required in production for the
product. Here our BOM for NRG-A shows the materials and levels in the production
process.
  Firms create product groups to ensure that similar products are grouped together
and their production and forecast plan is initially done by product group to reduce
complexity and then the plan and forecasting is done for individual products. Here
we are displaying our product group “50 NRG Group” which consists of NRG-A and
NRG-B bars.

 In this step we have forecast for our NRG product group as follows
1 month in future – 25 cases (17 NRG-A, 8 NRG-B)
2 months in future – 35 cases (24 NRG-A, 11 NRG-B)
3 months in future – 15 cases (10 NRG-A, 5 NRG-B)
Our production strategy is synchronous sales which means we will be producing
goods only when we need them. While creating our forecast we entered the product
forecast for NRG-A as 70% of total and for NRG-B as 30% total therefore when we
disaggregate the plan, SAP transfers production plan for each products based on 70/30 split.
 Here we are creating our production plan synchronous to sales based on our forecast
for the nest three months. Note that SAP transfers this data while disaggregating the
plan for each products.

 The next step is to run MRP which gives a report and also calculates and plans
production based on our split and our requirements.
 After running the MRP, when we check the stock requirements list for NRG-A our
system shows the planned order for production of NRG-A bars to meet the
requirements based on the forecast.
 Similarly when we check for NRG-B bars we can see that only independent demand
is there and no planned orders are there as we have enough stock to meet the
requirements.
 The stock requirements list/ Collective display displays all the materials and products
in inventory and their status (red/yellow/green) based on the requirements. It is
usually done after running MRP to get an overview of our products and decide our
purchases and production based on the status. The status lights are customizable
and can be adjusted according to the business needs.
Conclusion
This course helped me understand the business process overall. And using SAP for
every step in the process and benefits of keeping our organisation informed and keeping the
data transactions in real time can make an effective business. I was able to understand the
business from different sections such as planning, purchasing, production and follow up like
payments. I am looking forward to use the skills that I learned in this course on SAP to a
deeper level in future.