Exercise 5
Make-to-Order Production with Prompt Delivery
This exercise shows the make-to-order production (assembly) of gasoline tanks for motorbikes.
The exercise mainly focuses on a close integration of sales and distribution, production and
shipment to be able to dispatch the sales order to the customer as quickly as possible after the
production completion.
Data Used
Field
Data
Description
Order type
OR
Standard order
Sales organization
1000
Sales organization Frankfurt/Germany
Distribution channel
12
Sold for resale
Division
00
Cross-division
Customer
1900
J & P, Dusseldorf
Material
1400-700-1XX
Gasoline tank "Deluxe" - red
Where XX is your group number.
Process Chain

Creating a Sales Order for a product not kept in inventory. This will automatically
generate the relevant production order. In this case it is a red deluxe gas tank
that much be produced from an unpainted gas tank, red paint, and a gas cap.

We assume production is done ahead of schedule. After production has been
completed, you will confirm the Production Order as fully completed

Newly Determining the Availability of the Sales Order

Shipment

Creating the Transfer Order for the Delivery

Billing

Record the payment
Creating a Sales Order
In this first process step you play the role of an employee in sales order processing working in the
sales organization Germany/Frankfurt. A customer orders goods that have to be specifically
produced in make-to-order production and is to be delivered as quickly as possible.
1. On the SAP R/3 System screen, select Logistics  Sales and distribution  Sales.
2. On the Sales screen, select Order  Create.
3. On the Create Sales Order: Initial Screen, enter the following data:
Field
Data
Order type
OR
Sales organization
1000
Distribution channel
12
Division
00
4. Confirm your entries. (By clicking on the "Green Check Mark" icon.)
5. On the Create Standard Order: Overview - screen, on the tab page Sales enter the
following data:
Field
Data
Sold-to party
1900
PO number
GTD-XXX
PO date
current date
Req.deliv.date
current date + 2 weeks
Pricing date
current date
Material
1400-700-XXX
Order quantity
1 (piece)
Where XXX = 1 followed by your group number.
6. Confirm your entries. Press Enter. The following messages will be presented at the bottom
of the screen: “Copy routing”, “Copy BOM”, “Schedule order”, “Check material availability”
and “Release carried out”.
7. To determine the urgency of the order for a later delivery processing, select the material.
8. Select Goto  Item Shipping.
9. The system displays the Create Standard Order: Item data screen. In the section
Shipping in the field Delivery prior. enter the value 1 (high).
10. Select Goto Overview.
11. On the Create Standard Order: Overview screen, select the tab page Shipping. In the
section All Items you can see the material availability date, the loading date, the delivering
plant and the shipping point among others.
According to screen size, you have to scroll right in the table All Items and broaden
the columns with the cursor.
12. Select Save.
The system issues a sales order number. Note this document number. _______________
13. To display the number of the corresponding production / assembly order for the further
steps, select Sales document Display, on the Create Standard Order: Overview
screen.
14. On the Display Sales Order: Initial Screen confirm the default number of the sales order
previously created. The system displays the Display Standard Order XXXX: Overview
screen.
15. Select the order item and then select Sched.lines (Quantities/dates). (You may have to
scroll down.)
16. On the Display Standard Order XXXX: Item data screen, mark the schedule line with the
confirmed quantity and then select Sched. line-detail. (i.e. click on the magnifying glass.)
17. On the Display Standard Order XXXX: Schedule Line Data screen select the tab page
Procurement. In the section Assembly/Process you find the corresponding
production/assembly order.
Note this number. __________________________
18. The basic dates of this assembly order automatically determine the shipping date (material
staging or transportation planning) of the sales order. To display the assembly order and its
basic dates, select Header in the section Assembly/Process. The system displays the
Production order Display: Header screen.
When is production scheduled to start (date and time)? _______________ _______
When is it scheduled to finish (date and time)?
_______________ _______
19. Return to the main SAP R/3 System screen.
Processing and Confirming a Production Order
After the production order has been processed and delivered to the warehouse, an employee of the
motorbike assembly reports the completion of the respective production order. The production
procedure is displayed in a short version on purpose.
1. On the SAP R/3 System screen, select Logistics  Production  Production control.
2. On the Production Control screen, select Confirmation  Enter  For order.
3. On the Create Production order Confirmation: Initial Screen, enter the following data.
Field
Data
Production order
Your production order number
4. Press Enter to confirm your entry.
The system displays the production order.
5. On the Confirmation of Production Order Create: screen, enter the following data.
Field
Data
Personnel no.
1276 (Randy Mamola)
Confirm. text
"Completed early, as requested" (optional)
6. Mark the selection field Final conf. [DON'T OMIT THIS!]
7. Save your entries. The following messages will be displayed: “Calculate Costs”, “Post
goods movements” and “ Confirmation saved (goods movements:1; failed: 0)
8. To check whether the production order has been completed by now and has been send to
the warehouse, press Exit return to the Production Control screen.
9. Select Order Display.
10. On the Production Order Display: Initial Screen, enter the following data.
Field
Data
Order
Your production order number
11. Press Enter to confirm your entry.
12. On the Production order Display: Header screen, please note the finish date of the
production order on the tab page Header for the ensuing comparison with the dates of the
sales order.
13. To check the order status, on the Production order Display: Header screen, select Order
 Functions  Status information  Status.
On the Display Status screen, you will find the status DLV in the column System status
which shows that the order has been completely produced and delivered to the warehouse.
The respective sales order can therefore be dispatched.
14. Return to the main SAP R/3 System screen.
Newly Determining the Availability of the Sales
Order
In this exercise, we assume that the sales person converses with the customer and thus is informed
that the gasoline tanks are to be delivered as soon as possible. To determine the most recent
shipping date, the sales person executes an availability check and confirms (or modifies) the newly
calculated date. After that the shipment can take place.
1. Select Logistics  Sales and Distribution  Sales  Order  Change.
2. Enter your original sales order number. Press Enter.
3. On the Change Standard Order XXXX: Overview screen, mark the first order item and
select Sched.lines.
4. On the Change Standard Order XXXX: Item data screen, mark the schedule line that
contains a confirmed quantity and select Sched. Line-detail (the magnifying glass).
5. On the Change Standard Order XXXX: Schedule Line Data screen select the tab page
Sales.
You can now see the planned delivery date and the tab page Shipping shows the formerly
planned material availability date and the transportation planning date. You see that the
material availability has been planned in accordance to the former order finish date of the
production order.
6. Select Back to return to the Change Standard Order XXXX: Item data
7. To determine the shipping dates based on the new availability situation, change Deliv. Date
to the current date.
8. Select Availability (item availability). The system now checks the availability of the
necessary materials taking into consideration the confirmed actual dates of the respective
production order.
After the availability check has been completed, you can see that the system created a
second schedule line and that the delivery can be dispatched earlier than planned.
9. To check the new material staging date, mark the schedule line with the confirmed quantity
on the Change Standard Order XXXX: Item data screen and then select Sched. line detail.
10. On the tab page Shipping you can see the new dates. Set the Transport.plan.date. to the
current date. The shipping point is 1000 in plant 1000 (Hamburg).
11. Save the sales order.
Shipment
After confirming the delivery date brought forward by the sales person, the delivery for the sales can
be created.
1. Select Logistics  Sales and Distribution  Shipping  Outbound Delivery  Create
2. Enter the Shipping Point: 1000
3. Enter the order number: XXXX
4. Press Enter.
5. Save.
6. The delivery is created. Take note of the document number. ______________
7. Exit to the main menu.
Creating the Transfer Order for the Delivery
1. On the SAP R/3 System screen, select Logistics  Sales and distribution  Shipping.
2. On the Shipping screen, select Picking  Warehouse Management.
3. On the Picking with Warehouse Management screen, select Transfer order  Create.
4. On the Create Transfer order for Delivery Note: Initial Screen, enter the following data:
Field
Data
Whse number
010
Plant
1000
Delivery
default
Foreground/backgrnd
D
Adopt pick.quantity
2
5. Press Enter to confirm your entries.
The system creates a transfer order for the picking of the delivery quantities. The
option 2 (adopt picking quantity) has the effect that the goods issue posting for the
delivery is done at the same time.
6.
Return to the SAP R/3 screen.
Billing
To complete the business process, you need to create the billing document with reference to the
delivery created earlier.
1. On the SAP R/3 System screen, select Logistics  Sales and distribution  Billing.
2. On the Billing screen, select Billing document  Create.
3. On the Create Billing Document screen, enter the following data:
Field
Data
Document number
Delivery document number
4. Confirm your entry.
On the Invoice (F2): Overview of Billing Items screen, the system displays the billing
items for the gasoline tanks delivered.
5. Select Save. The system now automatically forwards the billing data to financial accounting
and profitability analysis and the make-to-order production has been completed.
6. Return to the SAP R/3 screen.
Displaying the Document Flow
To integrate all the information in the logistics chain, the individual Sales and Distribution
documents build on each other and form a network of interrelated documents. You can access the
document flow from any of the Sales and Distribution documents involved in the entire business
transaction. In the case below, the document flow is accessed from the sales order.
1. Select Logistics  Sales and distribution  Sales.
2. On the Sales screen, select Order  Display.
If the R/3 System does not automatically propose it, enter the sales order number from the
first transaction or search for the order using a matchcode.
3. On the Display Sales Order: Initial Screen , select Display Document flow.
The R/3 System displays the different documents involved in the business transaction and
their overall processing status. From this list, you can branch to any of the documents
shown by placing the cursor on the corresponding line and pressing Display document.
Note that the accounting document for the invoice has an "open" status.
4. Return to the main SAP R/3 screen.
Payment
Locate the outstanding invoice records for Customer 1900 doing business in Company code 1000.
Verify that the delivery and associated accounting document for the sales order you processed are
displayed.
1. Select Accounting  Financial accounting  Accounts receivable  Account  Display
line items
2. Enter 1900 for Customer and 1000 for Code company. Press Enter.
3. On Display Customer Line Items: Basic List, the delivery document is listed under the
Allocation column and the accounting document is listed under the Doc.no. Write them
down.
4. Exit (to screen Accounts Receivable).
Post payment to the invoice you have been tracking and record payment document number. Enter
the requested information, verify the “Not assigned” value is zero and save the transaction.
5. Select Document Entry  Incoming Payment
6. At the Post Incoming Payments: Header Data screen, enter the data shown below:
Field
Data
Document date
Today’s date
Company code
1000
Posting date
Today’s date
Currency
DEM
(Bank Data) Account
100009
Amount
340.6 (This is 348.0, less a cash discount)
Value date
Today’s date
(Open Item selection) Account
1900
Additional selections
Select “Document number”
The value date is used Treasury application for defining the times of cash inflow
and outflow.
7. Select the button “Process open items”
8. On the Post Incoming Payments: Enter selection criteria, enter your accounting
document number in both fields “From” and “To”
9. Select the button “Process open items”
10. Select Save
11. Exit to the Main Menu (answer Yes in the Dialog box)
Verify that the accounting document has been cleared.
12. Select Logistics  Sales and Distribution  Sales  Order  Display
13. Enter your Order number.
14. Select the button “Document flow”.
Note that now the accounting document has a "cleared" status.
15. Exit to the Main menu.
16. Log off.
17.