SAP Best Practices for Subsidiary Integration in One Client with Intercompany Replenishment SAP Best Practices
Purpose, Benefits, and Key Process Steps Purpose This scenario covers collaboration within a corporate group where the headquarters and the subsidiaries act as an occasional supplier between each other. looks for a temporary source of supply due to Material shortage (any material type) or lack of production capacity (finished or semi-finished product). Buyer from the requesting manually requests a material transfer from another. Each belongs to different organization and different company code. Benefits Automation of the collaboration between headquarters and its subsidiaries Transactional focus, providing fully integrated business processes Based on existing well-tried Best Practice Scenarios Transparent view of outstanding stock transfers, stock-in-transit Efficient Processing of intercompany stock transfers Sales order BOM processing and Order Change Management integrated in intercompany processing. 2011 SAP AG. All rights reserved. 2
Scenario Overview Flow and key points Process flows covered Stock overview between s Planning overview between s Capacity analysis Purchase order (manually) Data changes Costing run BOM compare Order BOM Management Order Change Management (OCM) Key Points Integrated collaboration between headquarters and associated subsidiaries Rapid ROI by reusing existing data exchange capabilities Built upon established SAP Best Practices Baseline package scenarios 2011 SAP AG. All rights reserved. 3
Required SAP Applications and Company Roles Required SAP Applications Headquarter with SAP ECC 6.0 EHP5 with related country BAiO Baseline Solution V1.605 installed Purchase Organization (Subsidiary 1 and 2) with the solution SAP BAiO for Subsidiary Integration V1.605 installed with related country Baseline Solution V1.605 variant files on the same SAP ECC 6.0 EHP5 instance and client as the headquarter Company roles involved in the process flows Purchaser Planner Manager Billing Administrator Accounts Payable Accountant Engineering Specialist Sales Department Enterprise Controller 2011 SAP AG. All rights reserved. 4
Business Process: with Intercompany Replenishment (Variant 1) with Intercompany Replenishment Stock Availability Process: 1. checks stock availability 2. creates and prints intercompany purchase order 3. creates cross company delivery a. posts the Goods Issue (GI) and prints delivery note b. posts the Goods Receipt (GR) 4. creates the intercompany billing 5. processes the intercompany payment 1 Stock availability check (Headquarter or Subsidiary) Intercompany Purchase Order 2 / / 3b GR Delivery process Billing GI 3a 4 (Headquarter or Subsidiary) 5 Intercompany Payment 2011 SAP AG. All rights reserved. 5
Business Process: with Intercompany Replenishment (Variant 2) with Intercompany Replenishment Capacity analysis and manufacturing Process: 1. asks Capacity Analysis a. confirms available Capacity 2. creates and prints intercompany purchase order 3. creates and confirms production order 4. creates cross company delivery a. posts the Goods Issue (GI) and prints delivery note b. posts the Goods Receipt (GR) 5. creates the intercompany billing 6. processes the intercompany payment 1 Capacity check Available Capacity 1a (Headquarter or Subsidiary) / Intercompany Purchase Order 2 / 4b GR Delivery process Billing GI 4a 5 (Headquarter or Subsidiary) 3 order and confirmation 6 Intercompany Payment 2011 SAP AG. All rights reserved. 6
Business Process: with Intercompany Replenishment (Variant 3) with Intercompany Replenishment Manufacturing Process with Data Changes: 1. changes Data 2. Costing Run and dispatched information by the Headquarter to Subsidiaries 3. BOM Comparison and Costing Comparison in the 4. asks Capacity Analysis a. confirms available Capacity 5. creates and prints an intercompany purchase order 6. creates and confirms the production order 7. a. creates cross company delivery and posts the Goods Issue (GI) b. posts the Goods Receipt (GR) 8. creates the intercompany billing 9. processes the intercompany payment / (Headquarter or Subsidiary) 3 4 5 7b BOM and Costing Comparison Capacity check Intercompany Purchase Order GR Available Capacity Delivery process Billing GI 4a 7a 8 / 1 2 (Headquarter or Subsidiary) Change Data Costing Run + information spread 6 order and confirmation 9 Intercompany Payment 2011 SAP AG. All rights reserved. 7
Business Process: with Intercompany Replenishment (Variant 4 Step 1) with Intercompany Replenishment Manufacturing Process with Order Change Management: 1. Customer Request for Quotation to the (not demonstrated in this scenario) 2. Quotation Generation and acceptance (not demonstrated in this scenario) 3. Sales Order Generation in the 4. creates and releases Order 5. changes the initial Sales Order 6. changes the Order using Order Change Management 7. a. produces, confirms production, post Goods Issue for the components and posts Goods Receipt for the produced material b. creates delivery to Customer and posts the Goods Issue (GI) 8. creates the Customer billing 9. Customer processes the payment 10. creates the intercompany billing 11. processes the intercompany payment Request for Quotation 1 Customer 9 (Headquarter or Subsidiary) 8 11 7b / GR 5 Sales Order 2 Order Change Management 4 Sales Order Change Intercompany Payment Intercompany Billing Delivery process 2011 SAP AG. All rights reserved. 8 GI 10 7a 3 / Order (Headquarter or Subsidiary) 6 Change Order and Order Confirmation
Business Process: with Intercompany Replenishment (Variant 4 Step 2) with Intercompany Replenishment Manufacturing Process with Order Change Management: 1. Customer Request for Quotation to the (not covered in this scenario) 2. Quotation Generation and acceptance (not covered in this scenario) 3. Sales Order Generation in the 4. Order BOM Generation in the 5. creates and releases Order 6. changes the Order BOM and the Order using Order Change Management 7. produces, confirms production, post Goods Issue for the components and posts Goods Receipt for the produced material 8. creates delivery to Customer and posts the Goods Issue (GI) 9. creates the Customer billing 10. Customer processes the payment 11. creates the intercompany billing 12. processes the intercompany payment Request for Quotation 1 Customer 10 (Headquarter or Subsidiary) 9 12 8b / GR 2 Sales Order Intercompany Payment Intercompany Billing Delivery process 2011 SAP AG. All rights reserved. 9 GI Order BOM Management 3 5 Change Order BOM 11 8a 4 Order Change Management / Order 6 (Headquarter or Subsidiary) 7 Change Order and Order Confirmation
with Intercompany Replenishment - Stock Availability Process Business Process in Detail: with Intercompany Replenishment (Variant 1) Process Description in Detail: / / Check Material stock availability Create/Print/Send Intercompany Purchase Order Post the Goods Receipt Verify invoice Process outgoing payment Material stock available for manufactured product Create Delivery Pick Material on stock Post the Goods Issue and print delivery note Create/Send/Print Billing Document 2011 SAP AG. All rights reserved. 10
with Intercompany Replenishment - Manufacturing Process Business Process in Detail: with Intercompany Replenishment (Variant 2) Process Description in Detail: / / Request Capacity Check Check potential Capacity Create/Print/Send Intercompany Purchase Order Post the Goods Receipt Verify invoice Process outgoing payment Release Manufacturing Process Confirm Manufacturing Process Post Manufacturing Goods Receipt Post Components Consumption Goods Issue Create Delivery Pick Material from stock Post the Goods Issue and print delivery note Create/Send/Print Billing Document 2011 SAP AG. All rights reserved. 11
with Intercompany Replenishment - Manufacturing Process with Data Changes Business Process in Detail: with Intercompany Replenishment (Variant 3) Process Description in Detail: / / BOM and Costing Comparison Request Capacity Check Create/Print/Send Intercompany Purchase Order Change Data Costing Run + information spread Check potential Capacity Release Manufacturing Process Confirm Manufacturing Process Post Manufacturing Goods Receipt Post Components Consumption Goods Issue Create Delivery Pick Material from stock Post the Goods Receipt Post the Goods Issue and Verify invoice print delivery note Create/Send/Print Billing Process outgoing Document payment 2011 SAP AG. All rights reserved. 12
with Intercompany Replenishment - Manufacturing Process with Order Change Management without Order BOM Business Process in Detail: with Intercompany Replenishment (Variant 4 - Step1) Process Description in Detail: / / Customer Request for Quotation Quotation Sales Order Creation Requirements Change Post the Goods Receipt Verify invoice Sales Order Change Create/Send/Print Billing Document Release Manufacturing Process Setting Order Change Management Change Order Post Manufacturing Goods Receipt, Confirm Manufacturing Process Post Components Consumption Goods Issue Create Delivery Pick Material from stock Post the Goods Issue and print delivery note Process outgoing Verify invoice Create/Send/Print Billing payment Document Process outgoing payment 2011 SAP AG. All rights reserved. 13
with Intercompany Replenishment - Manufacturing Process with Order Change Management with Order BOM Business Process in Detail: with Intercompany Replenishment (Variant 4 - Step2) Process Description in Detail: / / Customer Request for Quotation Post the Goods Receipt Verify invoice Quotation Sales Order Creation Create/Send/Print Billing Document Order BOM Management Release Manufacturing Process Change Order BOM Setting Order Change Management Change Order Post Manufacturing Goods Receipt, Confirm Manufacturing Process Post Components Consumption Goods Issue Create Delivery Pick Material from stock Verify invoice Post the Goods Issue and print delivery note Process outgoing payment Process outgoing Create/Send/Print Billing 2011 SAP AG. All rights reserved. payment Document 14
Accounts Payable Accountant Manager Purchaser Supervisor Event Process Flow Diagram with Intercompany Replenishment Stock Availability Process Missing Parts in Manufacturing Receives Purchase Order Manager Ship Material to Invoice Check Stock availability in Create/Print/Send Intercompany Purchase Order Create Delivery Note from Intercompany PO Pick Material from Stock Goods Receipt and Stock Material Sales from local stock (B22) Invoice Receipt and Payment 2011 SAP AG. All rights reserved. 15
Accounts Payable Accountant Manager Purchaser Supervisor Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process Missing Parts or lack of in Manufacturing Receives Purchase Order Supervisor Manager Ship Material to Invoice Check Potential Capacity in Release Manufacturing Process in Confirm Manufacturing Process + Goods Receipt Create/Print/Send Intercompany Purchase Order Create Delivery Note from Intercompany PO Pick Material from Stock Goods Receipt and Stock Material Sales from local stock (B22) Invoice Receipt and Payment 2011 SAP AG. All rights reserved. 16
Headquarter Enterprise Controller Engineering Specialist Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process with Data Change Asynchronous Flow Prerequisite New Product Introduction Enterprise Controller Information Headquarter Information Change Data Costing Run New Validated Manufacturing Reference 2011 SAP AG. All rights reserved. 17
Accounts Payable Accountant Manager Purchaser Supervisor Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process with Data Change Missing Parts or lack of in Manufacturing Receives Purchase Order Supervisor Manager Ship Material to Invoice Check Potential Capacity in Release Manufacturing Process in Confirm Manufacturing Process + Goods Receipt Create/Print/Send Intercompany Purchase Order Create Delivery Note from Intercompany PO Pick Material from Stock Goods Receipt and Stock Material Sales from local stock (B22) Invoice Receipt and Payment 2011 SAP AG. All rights reserved. 18
Engineering Specialist Supervisor Sales Department Customer Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process with Order Change Management without Order BOM Manufacturing Flow with OCM Receives Request for Quotation Supervisor Customer Request for Change Department Request for Quotation After Approval Sales Order Creation Sales Order Change Release Manufacturing Process in Change Order Confirm Manufacturing Process + Goods Receipt Set Order Change Management 2011 SAP AG. All rights reserved. 19
Accounts Payable Accountant Customer Department Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process with Order Change Management without Order BOM Delivery Flow Manager Ship Material to Customer Invoice Customer Invoice Create Delivery Note from Intercompany Sales Order Pick Material from Stock Goods Receipt and Stock Material Invoice Receipt and Customer Payment Sales from central stock (B21) Invoice Receipt and Intercompany Payment 2011 SAP AG. All rights reserved. 20
Engineering Specialist Supervisor Sales Department Customer Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process with Order Change Management with Order BOM Manufacturing Flow with OCM Receives Request for Quotation Supervisor Engineering Specialist Engineering Specialist Request for Change Department Request for Quotation After Approval Sales Order Creation Release Manufacturing Process in Change Order Confirm Manufacturing Process + Goods Receipt Order BOM Creation Order BOM Change Set Order Change Management 2011 SAP AG. All rights reserved. 21
Accounts Payable Accountant Customer Department Event Process Flow Diagram with Intercompany Replenishment Manufacturing Process with Order Change Management with Order BOM Delivery Flow Manager Ship Material to Customer Invoice Customer Invoice Create Delivery Note from Intercompany Sales Order Pick Material from Stock Goods Receipt and Stock Material Invoice Receipt and Customer Payment Sales from central stock (B21) Invoice Receipt and Intercompany Payment 2011 SAP AG. All rights reserved. 22
External to SAP <Function> Legend Symbol Description Usage Comments Symbol Description Usage Comments Band: Identifies a user role, such as Accounts Payable or Sales Representative. This band can also identify an organization unit or group, rather than a specific role. The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario. External Events: Contains events that start or end the scenario, or influence the course of events in the scenario. Role band contains tasks common to that role. Diagram Connection Hardcopy / Document To next / From last Diagram: Leads to the next / previous page of the Diagram Hardcopy / Document: Identifies a printed document, report, or form Flow chart continues on the next / previous page Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow. Connects two tasks in a scenario process or a non-step event Financial Actuals Financial Actuals: Indicates a financial posting document Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines Business Activity / Event Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario Does not correspond to a task step in the document Budget Planning Budget Planning: Indicates a budget planning document Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines Unit Process Process Reference Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario Process Reference: If the scenario references another scenario in total, put the scenario number and name here. Corresponds to a task step in the document Corresponds to a task step in the document Manual Process Manual Process: Covers a task that is manually done Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow. Sub- Process Reference Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here Corresponds to a task step in the document Existing Version / Data Existing Version / Data: This block covers data that feeds in from an external process Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines Process Decision Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond. Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution System Pass/Fail Decision System Pass / Fail Decision: This block covers an automatic decision made by the software Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed. 2011 SAP AG. All rights reserved. 23
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