Introduction to SAP ERP using GBI Summer Workshop Series 2014 California State University, Chico

Transcription

1 Introduction to SAP ERP using GBI Summer Workshop Series 2014 California State University, Chico Global Bike Incorporated An SAP University Alliances Fictional Company

2 STORY Global Bike Inc. Background and overview of GBI strategy and operations. Product SAP ERP G.B.I. Release 6.04 Level Undergraduate Beginner Focus Company Background Authors Simha Magal Stefan Weidner Simha Magal Version 2.01 MOTIVATION A general understanding of GBI (the company) prior to embarking on hands-on exercises and case studies in the SAP ERP client is critical for success. This narrative provides a historical background for how GBI began and an overview of its operations and strategy. This information will be used extensively throughout the curriculum material. PREREQUISITES None. NOTES None. SAP AG

3 GBI Company History Task Get to know the company s history. Short Description Read the below narrative to learn about the company s history. Time 15 min Global Bike Inc. has a pragmatic design philosophy that comes from its deep roots in both the off-road trail racing and long-distance road racing sports. Nearly 20 years ago, its founders designed their first bikes out of necessity they had races to win and the bikes that were available at the time did not perform to their extremely high standards. So, they took matters into their own hands and built legendary bikes that would outlast and outperform the competition. From these humble origins, Global Bike Incorporated was born and continues to deliver innovative highperformance bicycles to the world s most demanding riders. This heritage of entrepreneurial spirit and quest for design perfection is still the cornerstone of GBI s corporate philosophy. GBI produces bikes for the most demanding competitors whether the competition is on pavement or dirt, for money, fame or just bragging rights. John Davis earned his racing scars in the mountain racing circuit in America, where he won numerous downhill and cross-country championships. Early on, John realized that the mass-produced bicycles available were inadequate in many ways for the type of racing he was doing. So, John stripped four of his old bikes down to the bare metal and rebuilt them into a single Frankenstein bike that he rode to win the national championship. Once news of his Frankenstein bike got out, John s friends and even his competitors began asking him to build them a Frankenstein bike too. While recovering from an injury in 1990, John started producing the first series of Frankenstein bikes in his garage each one custom-built from cannibalized parts from other bikes. As more and more orders came in, John successfully expanded Frankenstein Bikes from his garage operations into a full-blown manufacturing facility in Dallas and began producing custom trail bikes which he sold through a network of specialized bike dealers throughout the country. At nearly the same time, halfway around the world in Heidelberg, Germany, Peter Schwarz was studying engineering and competing in regional touring races on weekends. In between his races and studies, Peter worked at a bike shop in Heidelberg, fixing student bikes and tuning the touring bikes that he and his friends rode for competitions. As Peter s reputation as a fierce competitor and mechanical wizard grew, he also began to design and build road bikes based on an ultra-light composite frame that he had created for one of his engineering courses. Peter s Notes SAP AG Page 2

4 innovative use of carbon composite materials allowed him to build a frame that was significantly stronger and one tenth the weight of competing frames. As a student, Peter did not have a great deal of financial resources, so he partnered with a local company that manufactured his frame designs as a contract manufacturer. Soon, Peter s frames were being used by racers all over Europe and he started Heidelberg Composites to market and design frames which would be fabricated by a contract manufacturer on a larger scale. Heidelberg Composites sold its frames to specialized bike stores throughout Europe and directly to racing teams, eventually becoming the leader in lightweight touring frames in Europe. Through a twist of fate, Peter and John met each other in 2000 and immediately recognized their mutual passion for performance and complimentary business models. Each had been looking for a partner in another racing field and each had been looking for a partner in a different market. They quickly realized that a merger between their two companies would be extremely synergistic and that the combination of their product lines and regional distribution channels would generate a great deal of efficiencies. So, in 2001, Heidelberg Composites and Frankenstein Bikes merged to form Global Bike Incorporated. Today, John and Peter share the responsibilities for managing GBI s growing organization as co-ceo s. John is responsible for sales, marketing, service & support, IT, finance and human resources groups and Peter is responsible for research, design, procurement and manufacturing groups from an organizational reporting perspective. Figure 1: Organizational Structure However, GBI is a process-centric organization, so John and Peter prefer to think of the processes that they are responsible for, rather than the functional areas of the company that report to them. From this perspective, Peter is responsible for Idea-to-Market and Build-to-Stock and John is responsible for Order-to-Cash and Service & Support, as well as the supporting services for all four key processes. The simple way to look at their responsibilities would be to say that Peter spends money and builds products and John sells products and brings in money. SAP AG Page 3

5 Figure 2: Enterprise Process Map SAP AG Page 4

6 GBI Corporate Overview Task Develop an organigram for GBI s enterprise structure. Time 15 min Short Description Read the below narrative to gather all relevant information for sketching GBI s current company structure. Due to several tax and export issues, GBI s headquarters is located in Dallas and GBI is registered as a US company, following US GAAP accounting standards. GBI operates a subsidiary company, GBI Europe, which is based in Heidelberg and is subject to IFRS accounting standards and German tax regulations. Material planning, finance, administration, HR and IT functions are consolidated at the Dallas headquarters. The Dallas facility manufactures products for the US and export markets and its warehouse manages product distribution for the central US and internet retailers. GBI also has warehouses for shipping and export in both San Diego and Miami. San Diego handles West Coast distribution and exports for Asia, while Miami handles East Coast distribution and Latin America exports. GBI Europe has its headquarters in Heidelberg Germany. The majority of research and development is housed in the Heidelberg offices. Heidelberg is also the main manufacturing facility for GBI in Europe. The Heidelberg warehouse handles all shipping for southern Europe. The Hamburg warehouse handles all shipping for the UK, Ireland, Middle East and Africa. GBI sells its bikes throughout the world and employs approximately 100 people, 2/3rds of the employees are in the US and the remaining 1/3 in Europe. Notes Organigram SAP AG Page 5

7 GBI Product Strategy Task Get familiar with GBI s product strategy. Short Description Read the below narrative about GBI s product strategy. Time 15 min GBI is a world class bicycle company serving the professional and prosumer cyclists for touring and off-road racing. GBI s riders demand the highest level of quality, toughness and performance from their bikes and accessories. Product development is the most critical element of GBI s past and future growth. GBI has invested heavily in this area, focusing on innovation, quality, safety and speed to market. GBI has an extensive innovation network to source ideas from riders, dealers and professionals to continuously improve the performance, reliability and quality of its bicycles. In the touring bike category, GBI s handcrafted bicycles have won numerous design awards and are sold in over 10 countries. GBI s signature composite frames are world-renowned for their strength, low weight and easy maintenance. GBI bikes are consistently ridden in the Tour de France and other major international road races. GBI produces two models of their signature road bikes, a deluxe and professional model. The key difference between the two models is the type of wheels used, aluminum for the basic model and carbon composite for the professional model. GBI s off-road are also recognized as incredibly tough and easy to maintain. GBI trail bikes are the preferred choice of world champion offroad racers and have become synonymous with performance and strength in one of the most grueling sports in the world. GBI produces two types of off-road bike, a men s and women s model. The basic difference between the two models is the smaller size and ergonomic shaping of the women s frame. Notes Figure 3 GBI Finished Products GBI also sells an accessories product line comprised of helmets, t-shirts and other riding accessories. GBI partners with only the highest quality suppliers of accessories which will help enhance riders performance and comfort while riding GBI bikes. SAP AG Page 6

8 Figure 4 GBI Trading Goods SAP AG Page 7

9 GBI Manufacturing Strategy Task Get familiar with GBI s manufacturing strategy. Short Description Read the below narrative about GBI s manufacturing strategy. Time 10 min GBI operates two production facilities, Dallas and Heidelberg. Each facility has three assembly lines and can produce around 1000 bikes per year. Total production capacity is roughly 6000 bikes per year, but can be increased by 15%-20% by using overtime hours and part-time workers. GBI has outsourced the production of both off-road and touring frames and the carbon composite wheels to trusted partners who have specialty facilities to fabricate the complex materials used. GBI maintains very collaborative research and design relationships with these specialty partners to ensure that innovations in both material and structural capabilities are incorporated into the frames. GBI primarily assembles semi-finished goods into finished goods at its production facilities. Finished goods are either stored in the local warehouse or shipped to other regional distribution centers to fulfill customer orders. Notes Figure 5 GBI Raw Materials GBI Semi-Finished Goods SAP AG Page 8

10 GBI Distribution Network Task Get familiar with GBI s distribution network. Short Description Read the below narrative about GBI s distribution network. Time 10 min Given the highly specialized nature of GBI s bicycles and the personalized needs of riders, GBI sells its bikes exclusively through well-known and respected Independent Bicycle Dealers (IBDs). These dealers employ staff members who are experts in off-road and tour racing to help consumers choose the right GBI bike and accessories for their individual needs. Notes Figure 6 GBI Customers in US and Germany Due to the highly technical nature of its products, GBI has embraced the Internet primarily as an information channel, maximizing its potential for educating consumers and partners and marketing its products to a large audience. Since GBI s main sales channel is through specialty resellers and there are complex tax issues associated with selling in multiple states and countries, they have a limited amount of internet sales. SAP AG Page 9

11 GBI Partner Network Task Get familiar with GBI s partner network. Short Description Read the below narrative about GBI s partner network. Time 10 min GBI has established an extensive partner operation to ensure process continuity between GBI and its partners to deliver best-in-class products for its customers. Special attention has been paid to nurturing strong relationships with suppliers and GBI is generally the largest customer of its main suppliers. Notes Figure 7 GBI Vendors in US and Germany SAP AG Page 10

12 GBI IT Strategy Task Get familiar with GBI s IT strategy. Short Description Read the below narrative about GBI s information technology stratey. Time 5 min During 2009, GBI integrated a shared services model for all IT functions, located in the Dallas office. Along with this move to centralized IT, GBI also implemented SAP ERP (version 6.0). Prior to this, divisions were running multiple, independent application environments. All ERP functions are centralized with the primary objectives to reduce costs and deliver bestin-class technology to all divisions globally. This centralized approach offers GBI an advanced business platform under a highly controlled environment, which enables consistency of operations and process integrity across the globe. Notes SAP AG Page 11

13 NAVIGATION Navigation Course Introduction to Navigation in SAP Solutions and Products Product SAP Business Suite 7.0 Level Undergraduate Beginner Focus SAP ERP 6.0 EhP4 Navigation Author Stefan Weidner Version 2.11 MOTIVATION This material explains how to navigate in SAP systems. It is aimed at students at universities, universities of applied sciences and other educational institutions with no previous experience of SAP software. It can be used in the classroom or for self-study. On completion of the course, students will be able to navigate through the user interface to work on business processes and case studies on their own. The material also serves as a reference for occasional users of SAP systems. LEARNING METHOD The learning method used is guided learning. This is a suitable method because navigating in SAP systems is a fundamental skill but also very complex. The benefit of this method is that knowledge is imparted quickly. Students also acquire practical skills and competencies. Similar to a case study, this method explains a process or procedure in detail. Exercises at the end enable students to put their knowledge into practice and remember it better. SAP AG

14 NAVIGATION Logging on Task Log on to the system. Short Description Use the SAPGui to log on to the SAP system. Time 10 min Find and double-click this icon on your desktop. If it is not there, choose Start All Programs SAP Front End SAP Logon SAP Logon A dialog box similar to the one shown on the right appears. The list of systems may be longer than in the dialog box shown here. Select the SAP system specified by your lecturer and choose Log on or Enter. The logon screen appears. The system requests the client, your user, password, and preferred language. Client: _ User: _ Password: _ Language: Before you log on, you need to know the definition of the term client. SAP systems are client systems. With the client concept several separate companies can be managed in one system at the same time. Client SAP AG Page 2

15 NAVIGATION Clients are the highest organizational level in the system. In business terms, each client can represent a group of companies, a company, or a firm regardless of the size of the organization. In commercial, organizational and technical terms, a client is therefore a self-contained unit with separate master records and its own set of tables. In SAP systems, different clients are identified by their client numbers. Use the client number given by your instructor. For you to be able to log on as a user, a user master record must be created for you in the relevant client. For reasons of access protection, you must enter a password when you log on. Your password entry is case-sensitive. SAP systems are multilingual. Choose the language for your session in the Language field. Then choose or Enter. Logon screen When you log on for the first time, the system requests you to change your password. To confirm your new password, choose or Enter. The first time you log on you will see a copyright note. Confirm it with or Enter. The initial screen with the SAP Easy Access menu appears. SAP AG Page 3

16 NAVIGATION Initial Screen Task Get familiar with the SAP system screen. Short Description Identify and familiarize with each element of the SAP system screen. Time 10 min This is the initial screen as described in more detail below. Initial Screen Menu Bar Menu Bar Menus shown in the menu bar are related to the application you are using; that is, they are context-sensitive. Most menus have submenus. Standard Toolbar Standard Toolbar Icons in the standard toolbar are available on all screens. Icons that you cannot use in the current application are grayed out. When you hover the cursor over an icon, a quick info text appears. Title Bar Title Bar The title bar displays the name of the transaction you are currently using. SAP AG Page 4

17 NAVIGATION Application Toolbar Application Toolbar The application toolbar contains icons applicable to the transaction you are currently using. SAP Easy Access Menu The SAP system displays the SAP Easy Access menu on the start screen as standard. It enables you to navigate in the system using a clear tree structure. Click on the small arrows to expand the menu tree. The menu tree is specific to your role (business function in the company). Status Bar SAP Easy Access Menu Status Bar The status bar shows information about the current system status as well as warning and error messages. SAP AG Page 5

18 NAVIGATION Logging off Task Log off the system. Short Description Log off the SAP system. Time 5 min Choose System Log off to end the current session. The confirmation prompt shown on the right informs you that unsaved data will be lost. Once you are certain that you have saved all entries, you can confirm the prompt by choosing Yes. Log off SAP AG Page 6

19 NAVIGATION Introduction to ERP systems Task Get familiar with the terminology of ERP systems. Short Description Get familiar with the terminology of ERP systems. Time 5 min Before you get started in the SAP system, you need to know the definition of various terms in the ERP context. Business scenario: a group of related business transactions belonging to a particular organizational area that fulfill a related purpose in the company, for example preparation of the balance sheet, personnel administration, purchasing, service, or production. Organizational unit: organizational grouping of areas of the company that belong together for legal or other business reasons. Examples of organizational units are company, sales office, and plant. Master data: data stored in the system over a long period of time for business processes. Examples are customer, material, and supplier. Transaction data: transaction-specific data that is short-lived and assigned to certain master data, for example a customer. Transaction data created when executing transactions is stored as documents. Examples of documents are sales order, purchase order, material document, and posting document. Transaction: an application program that executes business transactions in the system, such as create sales order or post incoming payments. ERP terminology Business scenario Organizational unit Master data Transaction data Transaction SAP AG Page 7

20 NAVIGATION Practical work with the SAP system Task Get familiar with SAP s transaction and session concept. Short Description Run SAP transactions using three different ways. Create and close sessions. Time 10 min There are three ways of calling transactions in the SAP system. SAP Easy Access Menu You use the tree structure of SAP s Easy Access menu to navigate to a transaction. You then double-click on the transaction to run it. Transaction concept SAP Easy Access Menu Favorites If you use a transaction frequently, you can use drag&drop to add it to your favorites (or choose Favorites Add). You can then double-click it to run it without having to navigate through the SAP Easy Access menu. Read the Favorites chapter for more hints on the Favorites folder. Transaction code A transaction code is assigned to each transaction (not each screen) in the SAP system. The Transaction code chapter has more hints on displaying and finding these codes and other navigation options. Favorites Transaction code Note: The command field in which you enter transaction or codes can be found in the top-left corner. Click the small arrow symbol to display/hide it. The standard toolbar features five important icons: Icons (also ) Corresponds to the Enter key and confirms your entries Saves your entries on the current screen/transaction Corresponds to the Escape key and takes you to the previous screen Exits the current transaction (also ) Cancels the transaction (in case of system problems) SAP AG Page 8

21 NAVIGATION When you leave a transaction by choosing,, or, this dialog box may appear. Make sure that there is no unsaved data in your current session and choose Yes to acknowledge the message. In some cases it makes sense to work with two or more transactions at the same time. In SAP systems, you can open up to six sessions simultaneously with real parallel processing. Sessions To open a new session, choose or System Create Session. To close a session, choose or System End Session. SAP AG Page 9

22 NAVIGATION Help Task Get familiar with SAP s help functions. Short Description Use the F1 and F4 help as well as the SAP Help Portal. Time 10 min Several types of help are available in the SAP system. The most frequently used ones are the F1 and F4 keys. F1 and F4 help F1 provides you with explanations for fields, menus, functions, and messages. In the F1 help, you can choose to get technical information. F4 gives you information and possible entries. You can also use the F4 help by choosing directly right of a selected field. F1 F4 The Help menu contains more help. Choose Application Help for contextsensitive help on the transaction you are currently using. Choose SAP Library to open the online SAP Library. You can find it on the Internet at help.sap.com. Choose Glossary to open the extensive glossary of SAP terminology. SAP AG Page 10

23 NAVIGATION Favorites Task Get familiar with the SAP Favorites folder. Short Description Learn how to add and delete objects to the SAP Favorites folder. Time 5 min Besides adding transactions to your favorites, as described in the Practical work chapter, you can add objects such as folders, reports, files, and Web addresses. Other Objects By clicking Favorites with the right mouse button, you can create your own hierarchical folder structure. You can also add other objects (URL, BSP, mail system, SAPscript). You choose the applicable objects in the dialog box and enter the relevant data in the fields. Here is an example of how to add a website to your favorites. Website To add the SAP UA Community Portal link to your favorites, click Favorites with the secondary mouse button. Choose Add other objects then Web Address or File. In the dialog box, enter a name and the URL shown below. To confirm, choose. SAP AG Page 11

24 NAVIGATION Transaction codes Task Get familiar with SAP transaction codes. Short Description Learn how to effectively make use of SAP transaction codes. Time 10 min The quickest way to run a transaction in the SAP system is to enter the transaction code. Every transaction has a code, which generally has four characters. To find these, make the following settings. Transaction code If you know the code for a transaction, you can enter it in the command field in the upper left corner of your screen. After choosing Enter the initial screen of the transaction appears. Transaction code field You can use various control parameters to influence what happens to the session when you call a transaction. /n Exits the current transaction /i Closes the current session /o Opens a new session /n /i /o You may combine these with the transaction codes. For example, /omm03 opens a new session and calls transaction Display Material. You can also search for transactions (or transaction codes) in the SAP system using transaction SEARCH_SAP_MENU. SEARCH_SAP_MENU SAP AG Page 12

25 NAVIGATION Choose a text you would like to search for in the SAP Easy Access Menu and click on. The search results are displayed in a list. There you find the transaction code (in some cases there are none assigned) and the path in the SAP Easy Access Menu (read from bottom to top). SAP AG Page 13

26 NAVIGATION Exercises Task Get familiar with navigation using practical exercises. Short Description Apply what you have learned in the SAP system. Time 20 min After completing these exercises you will be able to log on to an SAP system, identify transaction codes, access information in the SAP library, use the F1 and F4 help, make various user-defined settings and maintain your Favorites folder. 1. Log on to the system Choose the system used for this course in your SAPGui. Use the client, user name, initial password, and logon language given by your instructor. When you log on for the first time, a dialog box appears in which you enter your new individual password twice. Client: _ User: GBI-### Password: (from your instructor) Learning objectives Log on 2. User-defined settings 2.1 In the menu bar, choose Extras Settings and select the indicator Display technical names. 2.2 In the standard toolbar, choose (far right). Under Options, select both check boxes Show Success Messages in a dialog box and Show warning messages in a dialog box 2.3 In the status bar, on the far right bottom click on the triangular symbol and choose Transaction. After doing so, the code of the transaction you are currently using is always displayed. User-defined settings SAP AG Page 14

27 NAVIGATION 3. Sessions What is the maximum number of sessions (windows in the SAP system) that you can open in parallel? Number: Close all but two sessions. Sessions 4. Transactions What are the names of the transactions that you reach from the SAP Easy Access Menu and what are the transaction codes for calling them? Logistics Materials Management Material Master Material Display Display Current Transaction title: Transaction code: Accounting Financial Accounting Accounts Receivable Master Records Display Select Customer 1000 in Company Code US00 and press Enter or. Transaction title: Transaction code: Transactions 1000 US00 What transactions do you call with the following transaction codes? VA03: MMR1: ME01: MM02: VA03 MMR1 ME01 MM02 5. Favorites To organize your favorites in folders you first need to create folders (topic areas): Favorites Insert Folder. Give the folder a name. You can create as many folders as you like. You can move folders using drag&drop. To create favorites, find particular functions (transactions) in the SAP Easy Access menu you need for your daily work. Select a transaction and choose Favorites Add to add entries to your favorites list. You can also move them (Favorites Move). Moreover, you can add and move favorites using drag&drop. Favorites Insert folder Add favorites Move favorites SAP AG Page 15

28 NAVIGATION Add the following transactions to your favorites. MMR1 Create Raw Material using menu path: Logistics Materials Management Material Master Material Create (Special) Raw Material MM03 Display Material using menu path: Logistics Materials Management Material Master Material Display Display Current MMR1 MM03 To add URLs click on Favorites in the SAP menu with the secondary mouse button and choose Add other objects. Choose Web Address or File and confirm by pressing Enter. Create a link to the SAP UA Community portal! Add other objects 6. Help F1 help Run transaction VA01 and click in the Sales Organization field. Then, press the F1 key. What is a sales organization (in a few key words)? Help VA01 F4 help Close the dialog box with the definition of a sales organization. Do not leave the initial screen of transaction VA01. Click in the Distribution Channel field. What are the names of the first three distribution channels listed and which sales organization are they assigned to? SOrg DChl Name SAP AG Page 16

29 NAVIGATION OPTIONAL 7. Parameter settings Choose System User Profile Own Data. On the Maintain User Profile screen, choose the Parameters tab. Parameters In a second session, choose: Logistics Materials Management Inventory Management Goods Movement Goods Issue In the Enter Goods Issue: Initial Screen, click in the Plant field and choose F1. In the Performance Assistant screen that is displayed next, click on the symbol to view technical information. Note down the parameter ID given in the Technical Info screen. Switch to the first session. Enter the parameter ID and the associated plant (ask your instructor). Confirm by choosing Enter. Do not leave the screen. Repeat the procedure above for the Storage Location field. Ask your instructor for the correct value again. Plant Storage Location SAP AG Page 17

30 NAVIGATION Solutions Task Get familiar with navigation using practical exercises. Short Description Apply what you have learned in the SAP system. Time 10 min 1. Log on to the system Log on to the client indicated by your instructor and change your initial password. Log on 2. User-defined settings Make the user-defined settings described in the exercise. 3. Sessions To open and close sessions, choose System Create Session (or ) and System End Session. Depending on the SAP system settings between 2 and 30 sessions can be opened in parallel. The default value is set to a maximum of six parallel sessions per user. 4. Transactions Logistics Materials Management Material Master Material Display Display Current Transaction title: Transaction code: Display Material (Initial Screen) MM03 Accounting Financial Accounting Accounts Receivable Master Records Display User-defined settings Sessions Transactions SAP AG Page 18

31 NAVIGATION Transaction title: Transaction code: Customer Display (Initial Screen) FD03 VA03: Display Sales Order: Initial Screen MMR1: Create Raw Material (Initial Screen) ME01: Maintain Source List: Initial Screen MM02: Change Material (Initial Screen) 5. Favorites Choose Favorites Insert Folder to create a folder with a name of your choice. Add transactions MMR1 and MM03 to your favorites. Create a link to the SAP UAC portal ( in your favorites. 6. Help F1 help A sales organization is an organizational unit responsible for the sale of certain products or services. The responsibility of a sales organization may include legal liability for products and customer claims. Favorites Help F4 help SOrg DChl Name DN00 IN Internet DN00 WH Wholesale DS00 WH Wholesale DN00 is the sales organization for Northern Germany, DS00 for Southern Germany. Accordingly, UE00 is GBI s sales organization for the Eastern US and UW00 for the West. Please note that GBI s distribution channels are not always assigned to all sales organizations. OPTIONAL 7. Parameter settings To determine the parameter IDs of the Plant and Storage Location fields, proceed as described in the exercise. Enter the parameter IDs and the values given by your instructor in the parameter list. Parameters SAP AG Page 19

32 Sales and Distribution (SD) Case Study This case study explains an integrated sales and distribution process in detail and thus fosters a thorough understanding of each process step and underlying SAP functionality. Product SAP ERP G.B.I. Release 6.04 Level Undergraduate Graduate Beginner Focus Sales and Distribution Authors Bret Wagner Stefan Weidner Version 2.11 MOTIVATION The data entry requirements in the sales & distribution exercises (SD 1 through SD 8) were minimized because much of the data was stored in the SAP system. This stored data, known as master data, simplifies the processing of business transactions. In the sales order process, we used master data for customers, materials (the products we sold) and pricing to simplify the sales order process. In this case study, we will create the master data for a new customer. PREREQUISITES Before you use this case study, you should be familiar with navigation in the SAP system. In order to successfully work through this case study, it is not necessary to have finished the SD exercises (SD 1 through SD 8). However, it is recommended. NOTES This case study uses the Global Bike Inc. (G.B.I.) data set, which has exclusively been created for SAP UA global curricula. SAP AG

33 Process Overview Learning Objective Understand and perform an integrated order-to-cash cycle. Time 120 min Scenario In order to process a complete order-to-cash process you will take on different roles within the GBI company, e.g. sales agent, warehouse worker, accounting clerk. Overall, you will be working in the Sales and Distribution (SD), the Materials Management (MM) and the Financial Accounting (FI) departments. Employees involved David Lopez (East Rep. Miami) Maria Diaz (Sales Person 1) Matthias Dosch (Sales Person 2) Sandeep Das (Warehouse Supervisor) Sergey Petrov (Warehouse Employee) Stephanie Bernard (Billing Clerk) Jamie Shamblin (Cost Accountant) You start the sales order process by creating a new customer (The Bike Zone) in Orlando. Then, you receive an inquiry which you will process into a quotation. Once the quotation is accepted by the customer you create a sales order referencing the quotation. As you will have enough bikes in stock, you deliver the products sold to your customer, create an invoice and receive the payment. The graphic below displays the complete process (17 tasks). Process description SAP AG Page 2

34 Ex. 1 Create New Customer Task Create a new customer. Short Description Use the SAP Easy Access Menu to create a new customer. Name (Position) David Lopez (East Rep. Miami) Time 10 min In this case study, we will create the master data for a new customer. Two types of customer data are stored about a customer sales data and accounting data. The customer master data is created in three groups, or views general, accounting, and sales. Customers can be created centrally, meaning that all views are generated concurrently, or responsibility can be distributed so that different personnel in the accounting and sales areas are responsible for creating and maintaining the data in their respective views. For this task, central creation will be used to enter all of the needed data to define a new customer. To create a new customer, follow the menu path: Logistics Sales and Distribution Master Data Business Partner Customer Create Complete This will produce the following screen. Menu path SAP AG Page 3

35 Select Sold-to Party for the Account group. Enter US00 for Company code, UE00 for Sales Organization, WH for Distribution Channel, and BI for Division. After clicking on, the following screen will appear. US00 UE00 WH BI Select Company as Title, enter The (insert your last name here) Bike Zone for Name and ### for Search term 1. Remember to replace ### with your three-digit number, e.g. 003 if your number is 003. Then, enter N Orange Ave for Street, ### for house number, for Postal Code, Orlando for City, US for Country, and FL for Region. Then click on the expand icon to access additional street address fields. Company The Bike Zone ### N Orange Ave./ ### Orlando, FL US Scroll down and click on the search icon next to the Transportation Zone field. This will produce the following pop-up window. Double-click on Region East to select it. Clicking on Company Code Data will produce the following screen. Region East SAP AG Page 4

36 Enter for Recon. account (reconciliation account) and 001 for Sort key. Then click on the Payment Transactions tab. After entering 0001 for Terms of payment and clicking on the Sales Area Data button, the following screen will appear Make sure USD is entered for Currency and 1 is entered for Cust.pric.proc. Enter 1 for Cust.Stats.Grp, and then click on the Shipping tab. Fill in the following data. USD 1 1 SAP AG Page 5

37 As shown above, enter 02 (normal) for Delivery Priority, 01 (standard) for Shipping Conditions, MI00 for Delivering Plant, and 3 for Max. partial deliveries. Then click on the Billing Documents tab. Enter FOB and Miami for Incoterms, 0001 for Terms of payment, 01 for Acct.assgmt group and 0 for Tax classification for all three categories. Then click on the save icon. FOB MI00 3 Miami The SAP system will create the master record for the new customer and assign the customer a unique customer number. Customer number Record your new customer number Click on the cancel icon to return to the SAP Easy Access screen. SAP AG Page 6

38 Ex. 2 Create Contact Person for Customer Task Create a contact person for a customer. Short Description Use the SAP Easy Access Menu to create a contact person. Name (Position) Maria Diaz (Sales Person 1) Time 5 min Now that we have created the master data for our new customer, The Bike Zone, we can create the master data for a contact person. A contact person is an employee/representative of the new customer s company. The contact person defines a specific person to communicate with when dealing with The Bike Zone. To create a contact person, follow the menu path: Logistics Sales and Distribution Master Data Business Partner Contact Person Create This will produce the following screen. Menu path If your customer number is not entered by default, then search for your new customer using the F4 help with search term ###. When your customer number is entered, click on which will produce the following screen. ### SAP AG Page 7

39 Enter 1 for VIP (management), 0002 for Department (Purchasing), 02 for Function (head of purchasing), and 0002 for call frequency (weekly). Enter whatever name you wish, and fill in any other data you like, then click on. Your contact person will be given a unique number Contact person number Record the number for the Contact Person Click on the exit icon to return to the SAP Easy Access screen. SAP AG Page 8

40 Ex. 3 Change Customer Task Change a customer. Short Description Use the SAP Easy Access Menu to change a customer. Name (Position) Maria Diaz (Sales Person 1) Time 5 min The contact person created for The Bike Zone needs to be assigned as a business partner within the customer master. To change the customer master data, follow the menu path: Logistics Sales and Distribution Master Data Business Partner Customer Change Sales and Distribution This will produce the following screen. Menu path If the customer number is not entered by default, search for it using the F4 help and the search term ### (your number). Make sure that following values are entered: UE00 for Sales Organization, WH is entered for Distribution Channel, and BI for Division. Then, press Enter. UE00 WH BI On the Sales Area Data screen, select the Partner Functions tab. The following screen will appear. SAP AG Page 9

41 In the next empty row, enter CP for PF (partner function). Click in the Number field and then on the search icon, which will bring up the following search window. CP Your customer number is entered automatically. Make sure that all other fields are empty like it is shown in the screenshot above. Then, click on the enter icon to begin the search and find your newly created contact person. Double-click on the partner to enter the partner number. Click on save. to Click on the cancel icon to return to the SAP Easy Access screen. SAP AG Page 10

42 Ex. 4 Create Customer Inquiry Task Create a customer inquiry. Short Description Use the SAP Easy Access Menu to create a customer inquiry. Name (Position) Matthias Dosch (Sales Person 2) Time 10 min Now we will enter an inquiry from our new customer, The Bike Zone. An inquiry is a customer s request to be provided with a quotation or sales information without obligation. An inquiry can relate to materials or services, conditions, and if necessary delivery dates. To create an inquiry, follow the menu path: Logistics Sales and Distribution Sales Inquiry Create This will produce the following screen. Menu path Enter the following information: IN for Inquiry Type, UE00 for Sales Organization, WH for Distribution Channel and BI for Division. Then click on. This will produce the following screen. IN UE00 WH BI SAP AG Page 11

43 Click on the Sold-to party field, then click on the search icon will bring up the following search screen., which Because you have defined a search term when we created our new customer, we can now use it to find your The Bike Zone. Click on the Customers (general) tab, enter ### for search term and Orlando for City. Then, click on. This will produce the new customer. ### Orlando Double-click on The Bike Zone to select it. Enter ### for PO Number, today s date for the PO date (F4, then Enter), today s date for the Valid from date (F4, then Enter) and a date one month from today for the Valid to date (F4, then select the date). The Bike Zone wants a quote on two products the Deluxe Touring Bike (black) and the Professional Touring Bike (black). To find these products, we need to use the search function. Click on the material field, then click on the search icon. Make sure you are on the Sales material by description tab. ### today s date one month from today SAP AG Page 12

44 On the Sales material by description tab, enter Sales Organization UE00, Distribution Channel WH and Material *### (e.g. *005 if your number is 005). Then click on to get the list of bicycles. UE00 WH *### Double-click on the Deluxe Touring Bike (black) to select it and enter an order quantity of 5 pieces. DXTR1### 5 Repeat the process to enter a quantity of 2 of the Professional Touring Bike (black). Click on the enter icon to determine the price for this order. PRTR1### 2 SAP AG Page 13

45 The total price for these 7 bikes to The Bike Zone is 21,400.00, which is given by the net value. The Expect.ord.val (6,420.00) is a calculated value which takes the net value of the order and multiplies it by the probability of having an inquiry from this customer turn into an actual order. Use the scroll icon to get to the Order probability column (two columns right of the Net value column). The order probability of 30% is the default value that was set for GBI for inquiry documents. The expected order value is then 0.30 x 21, = 6, We can change the order probability for an inquiry, which makes sense as different customer inquiries would have different probabilities of becoming an actual sales order. Change the order probabilities to 75%, then click on the enter icon update the inquiry and note the new Expect.ord.val of 16, to 75 Click on to save the inquiry. The SAP system will assign a unique number to the inquiry. Inquiry number Record the Inquiry number Click on the exit icon to return to the SAP Easy Access screen. SAP AG Page 14

46 Ex. 5 Create Customer Quotation Task Create a customer quotation. Short Description Use the SAP Easy Access Menu to create a customer quotation. Name (Position) David Lopez (East Rep. Miami) Time 10 min An inquiry presents the terms (price, delivery schedule) to a customer considering a purchase. A quotation is similar, except that it is a legally binding offer for delivering the requested product or services. The Bike Zone would like a firm quote for the items in the inquiry created before. We can do this easily by copying the details from the inquiry into the new quotation. To do this, follow the menu path: Logistics Sales and Distribution Sales Quotation Create This will produce the following screen. Menu path Enter QT for Quotation Type, then click on Create with Reference. This will produce the following screen. QT SAP AG Page 15

47 Make sure the Inquiry tab is selected, click on the Inquiry field, then on the search icon. This will produce the following search window. In the Sales documents by customer tab, enter your Purchase order no. (###), then click on. This will produce a list with the inquiry for The Bike Zone. ### SAP AG Page 16

48 Double-click on the inquiry to select it, and the inquiry number will be copied in the Create with Reference window. Click on the Copy button to copy information from the inquiry into the quotation screen. Enter ### as PO number again, today s date for the PO date, a date one month from today for the Valid to date, and a date one month from today for the Req. deliv.date. Then click on the enter icon, which will produce the following warning. ### today s date one month from today one month from today Click on the enter icon an information message. to acknowledge the warning. This will produce SAP AG Page 17

49 Click on the enter icon to acknowledge this information. To encourage The Bike Zone to become a loyal customer, you have been authorized to give a $50.00 discount on each Deluxe Touring bike, as well as a 5% discount on the entire order. To add the $50.00, select the Deluxe Touring bike line in the order, then click on the Item conditions icon. You will get a screen that shows the pricing details for your Deluxe Touring Bike. In SAP, pricing is done using conditions. The pricing procedure defines which condition types are to be used to calculate the final price. Condtion type PR00 is a gross price condition. To add a discount, we can add condition type K004 (material discount) with a value of 50 to the pricing procedure. K After clicking on the enter icon bikes will be calculated., a new price for the 5 Deluxe Touring SAP AG Page 18

50 Note that the discount is now applied to the order. Click on the back icon to return to the main quotation screen. To apply a 5% discount to the entire order, follow the pull-down menu path: Goto Header Conditions This will produce the following screen. To apply the 5% discount, enter CnTy (condition type) RA00 (Net Discount) with an amount of 5, then click on. Note that the price does not yet include the 5% discount. RA00 5 SAP AG Page 19

51 To include the 5% discount, click on the activate icon. The 5% discount is now applied. Note that it is applied to the price after the $50 discount per Deluxe Touring bike. Click on to save the new quotation. Record the Quotation number Click on the exit icon to return to the SAP Easy Access screen. SAP AG Page 20

52 Ex. 6 Create Sales Order Referencing a Quotation Task Create a sales order with reference to a quotation. Short Description Use the SAP Easy Access Menu to create a sales order. Name (Position) David Lopez (East Rep. Miami) Time 10 min The Bike Zone has agreed to the terms and conditions in the quotation, and wants to order the bikes in the quotation. As a result, we can simplify the order creation process by copying the quotation into a sales order. To create a sales order, follow the menu path: Logistics Sales and Distribution Sales Order Create This will produce the following screen. Menu path Enter Order Type OR. The other fields do not necessarily need to be filled. Then, click on the Create with Reference icon. This will produce the following pop-up search window. OR SAP AG Page 21

53 Make sure that the Quotation tab is selected, click on the Quotation field, then on the search icon. On the following search window, make sure you select the Sales document according to customer PO number tab, enter ### for PO number, then click on the enter icon. ### After double-clicking on the quotation, the number for the quotation will be entered into the Create with Reference window. With the Quotation number entered, click on the Copy icon to copy the information from the quotation into the sales order screen. Enter ### for PO number and today s date (F4, then Enter) for the PO date. Note that the Req.deliv.date is copied from the quotation. Click on to save the sales order. The SAP system will assign a sales order number. ### today s date Record the Sales Order number Click on the exit icon to return to the SAP Easy Access screen. SAP AG Page 22

54 Ex. 7 Check Stock Status Task Check the inventory. Short Description Use the SAP Easy Access Menu to check the stock status. Name (Position) David Lopez (East Rep. Miami) Time 5 min We can check on the inventory level of the bikes in the sales order for The Bike Zone. To do this, follow the menu path: Logistics Materials Management Inventory Management Environment Stock Stock Overview This will produce the following screen. Menu path To find the material number for your bikes, click on the Material field, then click on the search icon. Use the far-right icon to select the tab Sales material by description. Enter UE00 for Sales Organization, WH for Distribution Channel and Material *### (e.g. *002 if your number is 002). Then click the enter icon to find the list of materials. UE00 WH *### SAP AG Page 23

55 Double-click on the Deluxe Touring Bike (black) to select it. With the material number entered from the search list, enter MI00 for Plant. Then click on the execute icon to look at the stock level. MI00 This report gives stock levels for the DC in Miami. You can get more detail on the stock of black Deluxe Touring bikes. Select the Miami DC, then click on the Detailed Display icon. This will give you very specific information about the inventory of black Deluxe Touring bikes. SAP AG Page 24

56 Note the 5 bikes that are part of the sales order. Click on the enter icon to close the Detailed Display window, then click on the back icon to return to the main screen. Use the search function to enter the material number for the Professional Touring bike (black). Click on the execute icon and review the stock level for this bike. Click on the exit icon to return to the SAP Easy Access screen. SAP AG Page 25

57 Ex. 8 Display Sales Order Task Display a sales order. Short Description Use the SAP Easy Access Menu to display a sales order. Name (Position) Sandeep Das (Warehouse Supervisor) Time 10 min With relatively little user input, the sales order for The Bike Zone has been created. The Display Sales Order transaction provides the opportunity to review the order in detail. To display a sales order, follow the menu path: Logistics Sales and Distribution Sales Order Display This will produce the following screen. Menu path To make sure you have the correct sales order number, use the search function to find it. Click on the order field, then click on the search icon. This will bring up the search pop-up window. After entering your PO number ###, click on the enter icon to get a list of sales orders. You can also use the Created By search field and your user name. ### SAP AG Page 26