SAP Best Practices for SAP S/4HANA Scope 1511 On-premise edition Business Priority view. last update:

Transcription

1 SAP Best Practices for SAP S/4HANA Scope 1511 On-premise edition Business Priority view last update:

2 Enterprise Management Product Map Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Enhanced Request to Service Supplier Management Production Engineering and Planning Order and Contract Management Service Master Data Management Sourcing and Contract Management Production Operations and Execution Inventory and Basic Warehouse Management Service Management Operational Procurement Inventory and Basic Warehouse Management Receivables Processing Service Parts Management Inventory and Basic Warehouse Management Product Development and Project Control Service Agreement Management Invoice and Payables Management Maintenance Management Quality Management and Compliance Core Human Resources Cross Application Time Management Core Finance Accounting and Financial Close Cost Management and Profitability Analysis 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 2

3 SAP Best Practices for On-premise edition 2015/11 Value Proposition The SAP Best Practices for SAP S/4HANA are tailored specifically to accelerate and simplify the adoption of SAP S/4HANA, on-premise edition for faster time to value, by providing pre-configured content for core business processes with role specific, responsive and simple UX. The Guided Configuration allows a simplier configuration, automated testing and life-cycle management to support agile adoption of continuous innovation even after go-live. Analytical content like operational reporting is now included as well as UX Fiori content providing the infrastructure for the deployment, testing and extension of S/4 HANA user interface components. SAP Best Practices for Migration, complements the foundation and offers customers a non-disruptive, simplified transition to SAP S/4HANA. SAP Best Practices offers integration to SAP cloud solutions like SuccessFactors Employee Central and Ariba. Business Benefits Reduce cost of operations with using standardizing processes delivered by SAP Best Practices Manage multiple geographies, divisions, subsidiaries, ledgers with global and country specific content Drive operational efficiencies and comply with regulations Empower business and IT users with guided configuration allow a first-hand experience of SAP S/4HANA with instant guided trials Update and change customer specific configuration using S/4 HANA life cycle management tools 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 3

4 SAP Best Practices for Scope Coverage in 1511: On-premise edition SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Supplier Information and Master Data Sourcing and Contract Management Operational Procurement Inventory & Basic Warehouse Management Invoice and Payables Management Accelerated Plan to Product Production Engineering and Planning Manufacturing Operations Inventory & Basic Warehouse Management Product Development and Project Control Maintenance Management Quality Management and Compliance Optimized Order to Cash Order and Contract Management Inventory & Basic Warehouse Management Receivables Processing Enhanced Request to Service *) Service Master Data Management Service Management Service Parts Management Service Agreement Management CORE INDUSTRY PRIORITIES Core Human Resources *) Cross Application Time Management Employee Central Connectivity CROSS ENTERPRISE PRIORITIES Core Finance Accounting and Financial Close Cost Management and Profitability Analysis ANALYTICAL CONTENT Analytics *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 4

5 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Streamlined Procure to Pay SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Supplier Information and Master Data Sourcing and Contract Management Operational Procurement Inventory & Basic Warehouse Management Invoice and Payables Management Accelerated Plan to Product Operational Contract Management (S/4HANA) Purchase Order Processing (S/4HANA) Basic Warehouse Management (S/4HANA) Accounts Payable (S/4HANA) Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Procurement Contract Procurement & Consumption of Consigned Inventory Procurement of Direct Materials Service Purchasing (S/4HANA) External Procurement of Third-party Resources Purchase Order Collaboration (S/4HANA) Stock Handling - Rework, Scrap, Blocked Stock Return to Vendor Physical Inventory - Inventory Count and Adjustment Accounts Payable Invoice Collaboration (S/4HANA) Integration Ariba Business Network Integration Core Finance Integration Ariba Business Network Integration Analytics *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 5

6 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Accelerated Plan to Product SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product Production Engineering and Planning Production Operations and Execution Inventory & Basic Warehouse Management Product Development and Project Control Maintenance Management Material Requirements Planning (S/4HANA) Production Processing (S/4HANA) Basic Warehouse Management (S/4HANA) Quality Management and Compliance Optimized Order to Cash Enhanced Request to Service *) Make-to-Stock Production - Discrete Industry Make-to-Stock Production - Process Industry Rework Processing (Stock- Manufactured Material) Stock Handling - Rework, Scrap, Blocked Stock Return to Vendor Physical Inventory - Inventory Count and Adjustment Core Human Resources *) Rework Processing (Work-in- Process) Material Requirements Planning Core Finance Basic Subcontracting (S/4HANA) Analytics Production Subcontracting - External Processing Repetitive Manufacturing (S/4HANA) Repetitive Manufacturing *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

7 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Optimized Order to Cash SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Order and Contract Management Inventory & Basic Warehouse Management Receivables Processing Enhanced Request to Service *) Sales Order Management and Processing (S/4HANA) Billing and Invoicing (S/4HANA) Basic Warehouse Management (S/4HANA) Accounts Receivable (S/4HANA) Sales Processing using Third- Returnables Processing Debit Memo Processing Stock Handling - Rework, Accounts Receivable Core Human Party with Shipping Notification Free Goods Processing Scrap, Blocked Stock Resources *) Sell from Stock Sales Order Processing with Claims, Returns, and Return to Vendor Free of Charge Delivery Customer Down Payment Refund Management Physical Inventory - Inventory Sales Quotation Sales Period End Closing Core Finance Count and Adjustment Operations Customer Returns Sales Order Processing for Prospect Sales Processing using Third- Credit Memo Processing SEPA Direct Debit handling Party without Shipping in SD Analytics Notification Sales Order Processing with Sales of Nonstock Item with Collective Billing Order specific Procurement *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

8 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Core Finance SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Entity Close (S/4HANA) Accelerated Plan to Product Accounts Payable (S/4HANA) General Ledger (S/4HANA) Cost Management (S/4HANA) Accounts Payable Accounting and Financial Close Internal Order Actual Optimized Order to Cash Accounts Receivable (S/4HANA) Inventory Accounting (S/4HANA) Product Cost Management (S/4HANA) Enhanced Request to Service *) Core Human Resources *) Credit Management Accounts Receivable Asset Accounting (S/4HANA) Asset Accounting Inventory Valuation for Year End Closing Revenue and Cost Accounting (S/4HANA) Overhead Cost Accounting Standard Cost Calculation Profitability and Cost Analysis (S/4HANA) Plant - Period End Closing Profitability & Cost Analysis CORE INDUSTRY PRIORITIES CROSS ENTERPRISE PRIORITIES Core Finance Accounting and Financial Close Cost Management and Profitability Analysis Analytics *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 8

9 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Analytics SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance Analytics Analytical content for S/4HANA ANALYTICAL CONTENT *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

10 SAP Best Practices for SAP S/4HANA Scope 1511 On-premise edition SAP Best Practices Process Descriptions

11 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Streamlined Procure to Pay SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Supplier Information and Master Data Sourcing and Contract Management Operational Procurement Inventory & Basic Warehouse Management Invoice and Payables Management Accelerated Plan to Product Operational Contract Management (S/4HANA) Purchase Order Processing (S/4HANA) Basic Warehouse Management (S/4HANA) Accounts Payable (S/4HANA) Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Procurement Contract Procurement & Consumption of Consigned Inventory Procurement of Direct Materials Service Purchasing (S/4HANA) External Procurement of Third-party Resources Purchase Order Collaboration (S/4HANA) Stock Handling - Rework, Scrap, Blocked Stock Return to Vendor Physical Inventory - Inventory Count and Adjustment Accounts Payable Invoice Collaboration (S/4HANA) Integration Ariba Business Network Integration Core Finance Integration Ariba Business Network Integration Analytics *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 11

12 Sourcing and Contract Management Procurement Contract Contracts are differentiated as follows: Quantity contracts are an agreement for a company to order a certain quantity of a product during a specified period. In source determination, contracts replace the purchasing info records and can be assigned in the source list as the fixed source for MRP. Target groups are purchasing managers as well as buyers. Purchase requisitions and purchase orders are created after the contract if they do not exist yet. Create a basic agreement (quantity contract) Create a purchase requisition Assign requisition and creating purchase order Approve purchase orders Monitor contract Goods receipt Invoice receipt by line item Reduction of procurement costs Securing of supplies Transparency of supplier agreements 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 12

13 Operational Procurement Procurement & Consumption of Consigned Inventory In consignment processing, the vendor provides material and stores it on the customer site. The vendor remains the legal owner of the material until material is withdrawn from the consignment stores. Once withdrawn, the vendor requires payment. The invoice is due at predefined periods, such as monthly. In addition, customers can also arrange with the vendor that they take over ownership of the remaining consignment material after a certain period. The daily MRP run creates purchase requisitions for parts that are to be procured on a consignment basis. Goods receipt to vendor consignment stock Transfer posting of vendor consigned stock to own stock Invoice verification Outgoing payment Automatic posting of goods into vendor consignment stock Fewer manual FI postings required: Upon goods issue from consignment storage, the relevant invoice data is transferred to FI. Periodic invoicing generates and releases the vendor invoices SAP SE or an SAP affiliate company. All rights reserved. Customer 13

14 Operational Procurement Procurement of Direct Materials This purchasing process uses purchase requisitions that are generated either via the Material Requirements Planning (MRP) process or manually by a requester. A purchasing administrator validates the accuracy of the purchase requisition and converts the purchase requisition into a purchase order. Alternatively, the purchase orders can be generated manually. The purchase order is subject to approval based on a predefined amount before being issued to a vendor. Goods are shipped from the vendor and the goods receipt is prepared with reference to the purchase order. The invoice is received from the vendor. Invoices are entered with reference to a purchase order. Manage sources of supply Display and assign purchase requisitions Convert assigned requisitions to purchase orders Purchase order management Receive goods from supplier Stock management Invoice receipt and management Outgoing payments Purchasing and inventory analytics Operate more efficiently and cost-effectively with streamlined procurement that brings more spend under management Ensure highly automated procurement processes for direct materials 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 14

15 Operational Procurement External Procurement of Third-party Resources The business process starts with a purchase order. You can create a purchase order with or without a reference to a purchase requisition. The goods receipt is booked with the incoming delivery. The invoice is booked with reference to the purchase order. Create a purchase order Confirm the goods receipt Enter the invoice for external maintenance Leverage of purchase order management for the third-party resource procurement 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 15

16 Operational Procurement Business Network Integration Purchase Order & Invoice Automation on the Ariba Network enables you to seamlessly connect from SAP S/4HANA to your suppliers on the Ariba Network. You can send electronic purchase orders to your suppliers using the Ariba Network, and receive electronic supplier invoices from the Ariba Network in SAP S/4HANA. You can use Business Network Integration in the procurement of direct materials and in the procurement for project-based services processes. Collaboration with your suppliers in the Ariba Network supports you in speeding up the procurement processes and in reducing manual process steps during invoice verification, reducing the costs involved in the transactions with your suppliers. Purchase order processing Invoicing Reduce transaction costs Increase visibility Speed up procurement processes Reduce manual process steps during invoice verification 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 16

17 Inventory & Basic Warehouse Management Stock Handling - Rework, Scrap, Blocked Stock This scope item covers the returns from customer, rework from production, and other logistic business processes. The target group is warehouse clerks. Customer returns scrapping: goods issue to CO-PA General stock scrapping: goods issue to cost center Block material - stock transfer unrestricted to blocked Unblock material - stock transfer blocked to unrestricted Unblock material - stock transfer blocked to quality inspection stock Support of process-related transfer postings Support of legally required transfer postings 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 17

18 Inventory & Basic Warehouse Management Return to Vendor The return to vendor process begins with a requirement to return an item to a vendor. You first request a Returns Material Authorization (RMA) from the vendor, which is entered into a text field in the return purchase order. The buyer creates a return purchase order in the system. The return purchase order is similar to a standard purchase order except the return flag that sets up the return delivery to enable shipment of the items back to the vendor. The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the items are picked and shipped back along with a delivery note. When the shipping department creates the delivery the items are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor. Return purchase order creation Delivery due list for purchase orders Confirmation of picking Goods issue Manual review of pending credits Goods can be returned with a return reason captured in the document All information for follow-on FI functions is provided invoice reduction, rejection, cancellation, and so on 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 18

19 Inventory & Basic Warehouse Management Physical Inventory - Inventory Count and Adjustment The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Afterwards, the count result is entered in the system and any discrepancies against the system quantities are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted. ŸCreate physical inventory documents Print physical inventory documents Execute physical count or recount Enter physical count List and post physical count differences ŸTransparent view on the stocks currently available Efficient processing of inventory adjustments 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 19

20 Invoice and Payables Management Accounts Payable With Accounts Payables, you can manage your open payables invoices that are automatically created from purchasing processes. You can manage and control open items with various analytical tools to optimize accounts payable handling. You can process payments automatically, ensure approval of all payments before payment, and monitor payment progress. Manage and complete supplier master data Create invoice from logistics Pay invoice Approve payment Optionally forward payment via Financial Services Network (FSN) Accounts payable are an integral part of the purchasing system Accounts payable postings are recorded directly in the general ledger Payment program can automatically perform bank transfers and down payments Simplified and secure connectivity for transacting with multiple financial institutes 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 20

21 Invoice and Payables Management Business Network Integration Purchase Order & Invoice Automation on the Ariba Network enables you to seamlessly connect from SAP S/4HANA to your suppliers on the Ariba Network. You can send electronic purchase orders to your suppliers using the Ariba Network, and receive electronic supplier invoices from the Ariba Network in SAP S/4HANA. You can use Business Network Integration in the procurement of direct materials and in the procurement for project-based services processes. Collaboration with your suppliers in the Ariba Network supports you in speeding up the procurement processes and in reducing manual process steps during invoice verification, reducing the costs involved in the transactions with your suppliers. Purchase order processing Invoicing Reduce transaction costs Increase visibility Speed up procurement processes Reduce manual process steps during invoice verification 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 21

22 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Accelerated Plan to Product SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product Production Engineering and Planning Production Operations and Execution Inventory & Basic Warehouse Management Product Development and Project Control Maintenance Management Material Requirements Planning (S/4HANA) Production Processing (S/4HANA) Basic Warehouse Management (S/4HANA) Quality Management and Compliance Optimized Order to Cash Enhanced Request to Service *) Make-to-Stock Production - Discrete Industry Make-to-Stock Production - Process Industry Rework Processing (Stock- Manufactured Material) Stock Handling - Rework, Scrap, Blocked Stock Return to Vendor Physical Inventory - Inventory Count and Adjustment Core Human Resources *) Rework Processing (Work-in- Process) Material Requirements Planning Core Finance Basic Subcontracting (S/4HANA) Analytics Production Subcontracting - External Processing Repetitive Manufacturing (S/4HANA) Repetitive Manufacturing *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 22

23 Production Engineering and Planning Material Requirements Planning This process enables your material requirements planning department to automate the procurement planning. The main function of material requirements planning is to guarantee material availability and to avoid delays in order fulfillment. The system checks the availability of each material in the planning run and creates purchase requisitions in case of shortages. Remaining shortages are displayed in the appropriate apps where the material planner can analyze the situation. In many cases, the procurement lead time is longer than the time available to fulfill a customer demand. In this case, you must procure the material in advance and cover your customer demand from stock. You start this process by creating forecast demands that are interpreted by the planning run as expected customer demands and are used to replenish stock levels. You then schedule the MRP run. The system creates purchase requisitions that trigger external procurement on completion of MRP. You can evaluate the results and make manual adjustments. Manage forecast demand Schedule MRP run Monitor MRP run (material issues and key figures) Follow up on change requests Monitor and manage material shortages Monitor and manage external requirements Accelerated creation of purchase requisitions Automatic detection of shortages Higher accuracy of purchased quantities Cost savings through process automation 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

24 Production Engineering and Planning Make-to-Stock Production Discrete Industry The typical planning process starts with sales quantity planning. The previous period`s actual sales figures can be used as a basis for future planning. Demand Management generates independent requirements that are used in the subsequent Material Requirements Planning (MRP) run. In MRP, the bill of materials (BOM) for the top-level material demand is exploded and production is planned down to the procured component level. MRP results in planned orders being generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing). Create planned independent requirements Plan material requirements at plant level Produce in-house (subassembly) Final assembly in-house (finished good) Confirm assembly activities Production execution triggered by a production plan Automatic explosion of the bill of material when running the material requirements planning Target costs are calculated while the order is created 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 24

25 Production Engineering and Planning Make-to-Stock Production Process Industry Independent requirements are used in material requirements planning (MRP). Planned orders are converted to process orders for manufacturing execution. Material provisioning to the shop floor follows a similar process to that of repetitive manufacturing, leveraging automatic goods issues and goods receipts at time of order confirmation. Customer orders decrease the planned independent requirements at time of order entry and cost of sales is recognized in profitability at time of invoicing. Planned independent requirements creation Material requirements planning (MRP) Make-to-stock production using process orders for semi-finished and finished products Recipe-oriented production Materials handled in batches according to a recipe specified for the appropriate production quantity Cost object controlling 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 25

26 Production Engineering and Planning Repetitive Manufacturing Repetitive Manufacturing is commonly used when a production process meets the following criteria: The same or similar products are produced over a lengthy period. The products produced are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate. The products produced always follow the same sequence through the machines and work centers in production. Routings tend to be simple and do not vary much. Creation of planned independent requirements Material requirements planning at plant level In-house production Confirmation of assembly activities Make-to-stock production based on run schedules without reference to sales orders Simplified handling of the production process with full cost control Confirmation of assembly activities without using production or process orders 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 26

27 Production Operations and Execution Make-to-Stock Production Discrete Industry The typical planning process starts with sales quantity planning. The previous period`s actual sales figures can be used as a basis for future planning. Demand Management generates independent requirements that are used in the subsequent Material Requirements Planning (MRP) run. In MRP, the bill of materials (BOM) for the top-level material demand is exploded and production is planned down to the procured component level. MRP results in planned orders being generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing). Create planned independent requirements Plan material requirements at plant level Produce in-house (subassembly) Final assembly in-house (finished good) Confirm assembly activities Production execution triggered by a production plan Automatic explosion of the bill of material when running the material requirements planning Target costs are calculated while the order is created 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 27

28 Production Operations and Execution Make-to-Stock Production Process Industry Independent requirements are used in material requirements planning (MRP). Planned orders are converted to process orders for manufacturing execution. Material provisioning to the shop floor follows a similar process to that of repetitive manufacturing, leveraging automatic goods issues and goods receipts at time of order confirmation. Customer orders decrease the planned independent requirements at time of order entry and cost of sales is recognized in profitability at time of invoicing. Planned independent requirements creation Material requirements planning (MRP) Make-to-stock production using process orders for semi-finished and finished products Recipe-oriented production Materials handled in batches according to a recipe specified for the appropriate production quantity Cost object controlling 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 28

29 Production Operations and Execution Rework Processing (Stock-Manufactured Material) This scope item focuses on rework activities and material postings after production execution for the original material (including goods receipt of the product) with an additional rework production order. Issues with the produced material are observed after it has been posted into inventory. In this scope item, the rework process of stock manufactured material is realized in creating a new production order, using the material to be reworked as input, and the same material as output. Costs are collected within the new production order, and are settled into controlling as production variances. The input component and product have the same material number. Creation of rework production order Goods issue for defective material Confirmation of rework production activities Posting goods receipt for rework production order Transparent costs for rework activities Use of all standard shop-floor control functionalities is possible 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 29

30 Production Operations and Execution Rework Processing (Work-in-Process) This scope item focuses on a rework process within production. All required rework activities are related to the parent production order. For this reason, errors are recognized and corrections initiated such as insertion of a rework operation within the same production order. The additional rework operation is confirmed and settled within the original production order, causing production variances within controlling and price differences for the dedicated product. Confirm production activities Confirm scrap defective material Confirm parent order at rework operation Continue shop-floor activities Scraps at defined operation automatically trigger rework process After rework, additional activity and material consumption can be confirmed Scope is fully integrated in the production process 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 30

31 Production Operations and Execution Material Requirements Planning This process enables your material requirements planning department to automate the procurement planning. The main function of material requirements planning is to guarantee material availability and to avoid delays in order fulfillment. The system checks the availability of each material in the planning run and creates purchase requisitions in case of shortages. Remaining shortages are displayed in the appropriate apps where the material planner can analyze the situation. In many cases, the procurement lead time is longer than the time available to fulfill a customer demand. In this case, you must procure the material in advance and cover your customer demand from stock. You start this process by creating forecast demands that are interpreted by the planning run as expected customer demands and are used to replenish stock levels. You then schedule the MRP run. The system creates purchase requisitions that trigger external procurement on completion of MRP. You can evaluate the results and make manual adjustments. Manage forecast demand Schedule MRP run Monitor MRP run (material issues and key figures) Follow up on change requests Monitor and manage material shortages Monitor and manage external requirements Accelerated creation of purchase requisitions Automatic detection of shortages Higher accuracy of purchased quantities Cost savings through process automation 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 31

32 Production Operations and Execution Production Subcontracting - External Processing During the manufacturing process, when a planned order for production is converted to a production order, the system checks if any routing or work center operations require external processing. This type of processing is particularly important for subcontracting, as it provides a company with a feasible alternative to in-house processing if capacity bottlenecks occur. When a production order is scheduled, external operations must be taken into account. The duration of an external operation is calculated by either using the planned delivery time or using the standard values. The system automatically creates a purchase requisition for the operation or sub-operation that requires external processing. The production scheduler should inform the buyer to check the workload for requisitions that require external processing. ŸCreation of purchase order for external processing Goods receipt for subcontracting purchase order An outline agreement can specify that a certain operation of the production order is executed by an external subcontractor on a regular basis Entry of invoice In the case of capacity bottlenecks, the Periodic payment assembly procedure of the finished product can be assigned to a subcontractor Benefits An outline agreement can specify that a certain operation of the production order is executed by an external subcontractor on a regular basis In the case of capacity bottlenecks, the assembly procedure of the finished product can be assigned to a subcontractor 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 32

33 Production Operations and Execution Repetitive Manufacturing Repetitive Manufacturing is commonly used when a production process meets the following criteria: The same or similar products are produced over a lengthy period. The products produced are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate. The products produced always follow the same sequence through the machines and work centers in production. Routings tend to be simple and do not vary much. Creation of planned independent requirements Material requirements planning at plant level In-house production Confirmation of assembly activities Make-to-stock production based on run schedules without reference to sales orders Simplified handling of the production process with full cost control Confirmation of assembly activities without using production or process orders 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 33

34 Inventory & Basic Warehouse Management Stock Handling - Rework, Scrap, Blocked Stock This scope item covers the returns from customer, rework from production, and other logistic business processes. The target group is warehouse clerks. Customer returns scrapping: goods issue to CO-PA General stock scrapping: goods issue to cost center Block material - stock transfer unrestricted to blocked Unblock material - stock transfer blocked to unrestricted Unblock material - stock transfer blocked to quality inspection stock Support of process-related transfer postings Support of legally required transfer postings 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 34

35 Inventory & Basic Warehouse Management Return to Vendor The return to vendor process begins with a requirement to return an item to a vendor. You first request a Returns Material Authorization (RMA) from the vendor, which is entered into a text field in the return purchase order. The buyer creates a return purchase order in the system. The return purchase order is similar to a standard purchase order except the return flag that sets up the return delivery to enable shipment of the items back to the vendor. The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the items are picked and shipped back along with a delivery note. When the shipping department creates the delivery the items are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor. Return purchase order creation Delivery due list for purchase orders Confirmation of picking Goods issue Manual review of pending credits Goods can be returned with a return reason captured in the document All information for follow-on FI functions is provided invoice reduction, rejection, cancellation, and so on 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 35

36 Inventory & Basic Warehouse Management Physical Inventory - Inventory Count and Adjustment The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Afterwards, the count result is entered in the system and any discrepancies against the system quantities are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted. ŸCreate physical inventory documents Print physical inventory documents Execute physical count or recount Enter physical count List and post physical count differences ŸTransparent view on the stocks currently available Efficient processing of inventory adjustments 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 36

37 SAP Best Practices for Scope Coverage in 2015: On-premise edition, Optimized Order to Cash SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Order and Contract Management Inventory & Basic Warehouse Management Receivables Processing Enhanced Request to Service *) Sales Order Management and Processing (S/4HANA) Billing and Invoicing (S/4HANA) Basic Warehouse Management (S/4HANA) Accounts Receivable (S/4HANA) Sales Processing using Third- Returnables Processing Debit Memo Processing Stock Handling - Rework, Accounts Receivable Core Human Party with Shipping Notification Free Goods Processing Scrap, Blocked Stock Resources *) Sell from Stock Sales Order Processing with Claims, Returns, and Return to Vendor Free of Charge Delivery Customer Down Payment Refund Management Physical Inventory - Inventory Sales Quotation Sales Period End Closing Core Finance Count and Adjustment Operations Customer Returns Sales Order Processing for Prospect Sales Processing using Third- Credit Memo Processing SEPA Direct Debit handling Party without Shipping in SD Analytics Notification Sales Order Processing with Sales of Nonstock Item with Collective Billing Order specific Procurement *) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability SAP Best Practices 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 37

38 Order and Contract Management Sales processing using third-party with Shipping Notification In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor. The vendor sends a shipping notification. After that a statistical goods receipt is posted. The incoming invoice from the vendor updates the billing quantity, so that a customer billing document can only be created once the vendor has entered the invoice. Create third-party sales order Convert purchase requisitions to purchase order Approve purchase orders Post statistical goods receipt Enter vendor invoice Create billing document Convert purchase requisitions to purchase order Approve purchase orders Post statistical goods receipt Enter vendor invoice Create billing document Reduces stock and cost, increases efficiency Hands over the customer s requirements directly to external supplier Invoices from trader to customer bases on quantities from supplier invoice Fulfills customer s requirements despite material shortage 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 38

39 Order and Contract Management Sell from Stock The process starts with the creation of a customer and standard sales order. Depending on the customer and the material, various special events take place during order entry, such as customer or material pricing. If enough material exists in the required storage location, the process proceeds normally. If not, a stock movement takes place. Picking slips are generated to stage the product for shipment to the customer. Once picked, the physically shipped quantity must be registered in the system to ensure that there are no differences between the sales order and the delivery document. After the completion of picking, the shipping specialist relieves the inventory. This inventory relief is the actual recording of the physical quantity that is being shipped to the customer. The cost of goods sold is recorded in financial accounting. Once the inventory is relieved, the delivery can be invoiced. The revenue and the cost of goods sold is recorded in management accounting. Create sales order Print order confirmation Create delivery Execute picking Post goods issue Create billing document When an order is entered, an availability check is performed and a shipping point is determined automatically A billing document is created and postings to FI and CO are made 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

40 Order and Contract Management Free of Charge Delivery A unique sales order type is created that is non-billing relevant. The order is confirmed based on the availability of goods. A delivery is created. The goods are then picked, confirmed, and delivered to the customer. Create sales order with free of charge items Execute picking post goods issue Execute picking Post goods issue System integrated Free of Charge sales order processing 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 40

41 Order and Contract Management Sales Quotation The process starts when a request for quotation (RFQ) is received from a customer. A quotation is then created in the SAP system. After that, the customer can either accept or reject the quotation. Create quotation Send quotation to customer You can assure your business partners that you will deliver a certain product configuration and quantity at a specific time and price During sales order processing, the sales employee can use a variety of sales functions and special quotation functions 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 41

42 Order and Contract Management Sales Order Processing for Prospect In this scope item, you process sales order documents without having a customer master record for the prospect available at the beginning of the order process. A dummy customer is used when your sales order processors need to investigate an order for a prospect. The sales order is saved, but remains incomplete until a valid customer account number is entered in the sales order. This function is particularly useful for companies that take phone orders. For example, a prospect calls and requests pricing and information on a catalog item. The internal sales representative can build the entire order without needing an account number until the end. Your external sales representative can ask the prospect for the data needed to create the customer master record (such as asking for name and address). The customer account number - part of the customer master record - is assigned to the sales order, replacing the dummy customer entry. Create sales order without having the customer s account number Create customer master record Assign customer number to sales order Create delivery Execute picking Post goods issue Create billing document Sales order processing without the customer s account number Sales order entry with material determination 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 42

43 Order and Contract Management Sales Processing using Third-Party without Shipping Notification In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor. The incoming invoice from the vendor updates the billing quantity, so that the customer billing document can only be created after entering the invoice from the vendor. Create third-party sales order Convert purchase requisition to purchase order Approval of purchase order Enter vendor invoice Create billing document Reducing stock and cost, increasing efficiency Handover of customer s requirements directly to external supplier Invoice from trader to customer bases on quantities from supplier invoice Fulfillment of customer s requirements despite material shortage 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 43

44 Order and Contract Management Sales of Non-stock Item with Order specific Procurement In this scope item, a customer orders a material that is currently not in stock. The material is therefore procured from an external supplier. During sales order creation, a purchase requisition is generated. In the next step, the purchase requisition is converted into a purchase order for the supplier. The goods receipt is created on customer and special stock. The delivery and the customer invoice follow from here. Finally, the vendor invoice for the goods receipt is created. Create sales order Convert purchase requisitions to purchase order Approve of purchase orders Post goods receipt Enter vendor invoice Process outbound delivery Post goods issue Create billing document Hands over customer s requirements directly to external supplier Sends material from external supplier to trader. The trader stays in charge for the complete delivery process. Fulfills customer s requirements despite material shortage 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 44

45 Order and Contract Management Returnables Processing When you create a standard sales order, the delivery is automatically created based on this sales order. During the pick and ship steps of this process, a pallet (returnable packaging) is added to the delivery during the pick and ship steps of the process. During the billing step, pallets can be returned using a pallet return order with pallet return delivery and goods receipt, or a pallet return delivery without reference and goods receipt. If a customer does not return the pallets, a debit memo request can be issued. Triggered by billing, the system issues the debit memo based on the debit memo request. Once done, you synchronize the consignment stock quantity and value, then post a manual goods issue for the unreturned pallet. Create sales order Create delivery Execute picking Add returnable packaging to deliveries Create returnable packaging return order Post goods receipt for returnable packaging Debit unreturned packaging Post goods issue for unreturned packaging The process comprises the management of returnables using the ERP returnable packaging logistics function Tracking of returnables 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 45

46 Order and Contract Management Free Goods Processing The process starts with the creation of a customer's standard sales order. A free goods condition record is created for the used material. The customer receives a certain amount of free goods depending on the ordered quantity. If enough material does not exist in the required storage location, a stock movement takes place. Picking slips are generated and sent to the shipping specialist to stage the product for shipment to the customer. Once picked, the physically shipped quantity is registered in the system to ensure that there are no differences between the sales order and the delivery document. If there are differences, this can be documented to ensure correct postings. After the completion of picking, the shipping specialist systematically relieves the inventory. This relief of inventory is the actual recording of the physical quantity that is being shipped to the customer. This results in the recording of the cost of goods sold in financial accounting. Once the inventory has been relieved, the delivery can be invoiced and the revenue, together with the cost of goods sold, is recorded in management accounting. This step signifies the end of the business transaction in Sales and Distribution. As a final step, invoices are posted, customer statements are prepared and printed, and the incoming payments are recorded, and then cleared to ensure that the open customer account balance is reconciled. Create sales order Print order confirmation Create delivery Execute picking Post goods issue Create billing document Upon order entry, an availability check is performed and a shipping point is determined automatically Inclusive free goods are determined automatically A billing document is created and postings to FI and CO are made 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 46

47 Order and Contract Management Sales Order Processing with Customer Down Payment In this process, you create requests for down payment, record the receipt of the down payment, and create a final invoice after the deduction of the down payment received and a receipt of the final amount due on the invoice. The process uses the billing plan functionality in Sales and Distribution. The integrated process allows maintenance of proper document flow between the sales and financial transactions. Create sales order Remove billing block Create billing document Post down payment Create delivery Execute picking Post goods issue Create billing document and down payment clearing System integrated sales order processing with customer down payment 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 47