SAP
Exercise 4 -- Preparing for Make-to-Order Order Processing:
Building Master Table Entries, B of Ms, Routings and Price Conditions
Make-to-order processing takes place when inventory is not generally stocked, but instead
the firm waits until an order has been placed and then produces just what has been ordered.
In this case we will have a deluxe motorcycle gas tank that must be produced from an
unpainted gas tank, paint, and gas cap. There are two processes that must be completed in
the production – paint the tank, and then when the tank is dry, attach the gas cap. The Bill
of Materials (or BOM) is the information (a document or in this case a computer record)
that records what raw materials (or partially produced materials) are needed to create a
given product. The Routing information tells what processes need to be carried out, in
what order, and even how long each process should take. All this information together can
be used to determine what the total cost of the product is, which can be used in deciding the
price, and in determining the profitability of the product.
In a future lab session (Exercise 5), we will need to process a make-to-order order. Our
experience has been that when many students all attempt to process orders on the same
product with a multilevel bill of material (and the same underlying raw materials), SAP
slows to a crawl (i.e. an hour passes and nobody gets done!) This is because of contention
for the same database records – if one order puts a lock on one of the underlying materials,
and another order puts a lock on another of the underlying materials, we are in what is
called a “deadly embrace”. Our version of SAP apparently does not handle this well!
Therefore in this session, we will all define our own materials, copying from the original
materials. This avoids the database contention problem and will also give you more
experience in creating and copying master table entries. In general, because of the
complexity of master table entries, SAP recommend that wherever possible you copy
existing master table entries and customize them rather than creating new entries from
scratch. You’ll see the mechanics of that (four times!) Even more valuable, you will see
how SAP handles the concepts of bill of materials and routings.
A – Creation of materials
Note: In all of this exercise, whenever you see “XXX” in the text, substitute your
three digit user number. In the writeup below you will also sometimes see transaction
IDs listed (i.e. “Transaction MM01”). These are in effect shortcuts to the desired
screens, but you can ignore them – the menu paths are also shown.
Creating: 1400-700-XXX, 1400-705-XXX, 1400-710-XXX and 1400-715-XXX by
duplicating: 1400-700 and components 1400-705, 1400-710 and 1400-715. These are,
respectively, the finished painted tank, the unpainted tank, the paint, and the gas cap. We
will copy complete master table information for each in turn.
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Creating the material 1400-700-XXX:
1.
(Transaction MM01) Logistics/Materials management/Material master
/Material/Create (general)/Immediately
2.
Enter following data:
Material:
Industry Sector:
Material type:
1400-700-XXX
M
FERT
(Mechanical engineering)
(Finished product)
Copy From: 1400-700
3.
Enter.
4.
Select all views. (use the
icon at the bottom of the window).
Deselect Classification and Forecasting by clicking on those boxes.
5.
Enter the following data for Organizational Levels:
Copy from:
Plant:
1000
1000
StorageLocation:
0001
0001
Sales Organization: 1000
1000
Distr. Channel:
12
12
Don't forget the "Copy From" information above!
In addition to the information above, you may need the following:
Warehouse Number 010
Storage Type
005
6.
You must navigate through each of the views in order to have the values be
copied. Subject to the caution below, just page through using the tabs.
If you get stuck on one view, it's probably because there is a “warning” at the
bottom of the screen (i.e. W: XXXXXXXXX). Just click enter and proceed.
7.
8.
Save.
Display the material 1400-700-XXX to verify that the several views have been
copied (transaction MM03) Logistics/Materials management/Material master
/Material/Display/Current
You will not have entries in the “Plant Stock” and the “Stor. Location Stock”
views.
8a.
In case only some views have been copied, start again from step (1) and in step
(4) just select the views that are missing. You will be notified that the material
already exists and will be extended. Save it again.
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9.
Repeat the same procedure from step (1) to step (8) for each one of the
components of the bill of materials to be copied, doing the following changes in
step (2):
Material to create
1400-705-XXX
1400-710-XXX
1400-715-XXX
Material type
ROH
ROH
HAWA
Copy from
1400-705
1400-710
1400-715
The system will propose the FERT material type (or the last one used).
Don't forget to make sure the information above is entered.
B – Creation of the bill of material. The BOM shows what materials are necessary to
produce the painted deluxe gas tank.
10.
(Transaction CS01) Logistics/Production/Master data/Bills of material/Bill of
material/Material BOM/Create
Material: 1400-700-XXX
Plant: 1000
BOM usage: 1
11.
Select the button
<copy from> (F7)
12.
Enter 1400-700 for Material.
13.
Select all the materials
14.
Select the button <Copy> (F5)
15.
Change the components from the original designation adding the suffix –XXX.
16.
Enter.
If the system indicates that one of the materials is missing or not defined, then
(unfortunately!) you must return to the step 8a for that material.
17.
Save. BOM is created for material 1400-700-XXX. There is not a bill of
materials for the lower level materials
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C – Set up routing. The routing shows the processes needed to produce the painted deluxe
gas tank. There is already a routing for material 1400-700. In this process we will indicate
that material 1400-700-XXX should be added to the materials that share the same routing
as 1400-700. In case you can’t read German, the two processes are “paint it”, and “attach
the gas cap”.
18.
(Transaction CA02) Logistics/Production/Master data/Routings/Routing/Change
Material:
Plant:
19.
Select
20.
Select
21.
Add to the list:
Grc
1
1400-700 (the original material)
1000
Material
1400-700-XXX
Plant
1000
22.
23.
Enter.
Save. Routing was saved with group 50000143 and material 1400-700.
24.
Go back and look at some details of the routing. Use:
Logistics/Production/Master data/Routings/Routing/Display
enter material 1400-700 and plant 1000, and click enter.
You will see there are two operations for this routing. Click on the "Sequences"
button. Then, next to the "Operations" button click on the "Operation Graphic".
(You will have put the cursor on the graphic to see the label.) Click on the
"Expand All" button, then on the "+" magnifying glass.
How long is allotted for painting the tank (Lackieren in German)? _______
How long for attaching the gas cap? _________
These numbers are for cost accounting purposes.
You have now set up the master records, BOM and routing for the new
materials.
Back out using the green right arrow. Log off of SAP.
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SAP
D - Creating Price Conditions
SAP has very sophisticated pricing capabilities -- prices can be determined based on a
variety of "conditions". This make it possible to customize the way pricing is done to meet
the needs of most organizations. Here we will use the simplest of schemes -- for our new
material we will specify the price to be used for a given sales organization and a given
distribution channel. By implication, the price might be different for a different sales
organization or distribution channel.
25.
(Transaction V-41) Logistics/Sales and Distribution/Master data/
Conditions/Prices/Material price/Create
26.
Enter the following data:
Sales organization:
Distribution channel:
Material:
Rate:
Unit:
Per:
UoM:
27.
28.
1000
12
1400-700-XXX
300
DEM
1
PC
Enter.
Save (condition records saved).
E - Purchasing materials
Before we can actually use the materials we have added to our tables, we need to order
them from a vendor, and actually receive them (i.e. record that they have been placed on
our loading docks and moved into our warehouses.) That is what the next two steps
accomplish.
Before we can purchase the three raw materials, we need to know who the vendor is. You
can find out by searching for any past purchase orders that refer to the original materials.
28. (Transaction ME2M) Information systems/Logistics/Purchasing/Purchasing
documents/Purchase orders/By material
29. Enter the following data:
Material:
Plant:
1400-705
1000
This will give you purchase orders that were used to purchase this particular
material in the past. You can get more detail by looking at the actual purchase order
document. If you have time, you can get the purchase orders for each of the components
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(1400-705, 1400-710, and 1400-715) and note the corresponding net prices, noticing that
the vendor has been the same for each one of the materials.
Now create a new purchase order requesting all three components from the vendor.
30. (Transaction ME21) Logistics/Materials management/Purchasing/
Purchase order/Create/Vendor known
31. Enter the following data:
Vendor: 1011
Purchase organization:
Purchase group:
Plant:
Storage location:
1000
002
1000
0001
32. Enter.
33. Enter the following materials:
Material
1400-705-XXX
1400-710-XXX
1400-715-XXX
Purchase Order Quantity
30
25
20
Net Price
65
44
11
34. Enter.
Note: If at this point you receive messages like “Material 1400-710-XXX not
maintained by Purchasing”, you have to go back to the creation of the material
and only select the view Purchasing for copy.
35. Save. Record the number of the purchase order.
F – Receiving materials
36. (Transaction MB00) Logistics/Materials management/Inventory management
37. Select button <For Purchase Order>
38. Enter the following data:
Movement type:
Purchase order:
Plant:
Storage location:
101
number recorded in step (35)
1000
0001
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39. Enter
40. Select the items
41. Save.
42. The stock for each one of the components may be confirmed by looking at the Stock
Overview screen (transaction MMBE): Logistics/Materials Management/Physical
Inventory/Environment/Stock Overview. Remember that after entering the material
ID you will have to click on the "Check Mark with Clock" icon.
Can you figure out how to cycle through all three materials without having to back
out of the Stock Overview screen?
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