General Overview
SAP Best Practices for Apparel and Footwear
India V1.603
SAP Best Practices
Overview of Scenarios
This package comprises predefined business scenarios that handle the most
important business requirements in Apparel and Footwear Industry, covering
the following key functional areas of SAP Enterprise Resource Planning
(ERP):
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Warehouse and Inventory Management
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Forecast-to-Stock
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Order to Cash
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Procure-to-Pay
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Accounting
Scenario Overview - Apparel and Footwear
Warehouse and Inventory Management
 134
Stock Transfer with Delivery
 624
Warehouse Management with Allocation Run
Forecast-to-Stock
 630
Make-to-Stock for Apparel and Footwear Industry
 631
Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry
 632
Inter-company and Cross-plant Production
 634
Production Subcontracting (External Processing) for Apparel and Footwear Industry
 635
Combined Production Orders
Order-to-Cash
 107
Sales Processing using Third Party (w. Shipping Notification)
 115
Sales of Nonstock Item with Order Specific Procurement
 611
Sales Order Processing with Allocation Run: Sale from Stock
 612
Cross-Company Sales Order Processing with Allocation Run
 613
Pre-Order Processing (Sales)
 614
Rush Order Processing (Sales)
 615
Sales Order Processing with Export Control
 616
Order to Cash with Packing and Transport Management
Procure-to-Pay
 620
Finished Goods and Raw Materials Sourcing
 621
Materials Subcontracting for Apparel and Footwear Industry
Accounting
 645
Activate Document Splitting for Apparel and Footwear Industry
Other
 154
Prereq. Process Steps
Scenario Overview-Baseline
Warehouse and Inventory Management
Key Business Scenarios:
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124 - Lean Warehouse Management
126 - Serial Number Management
131 - Stock Handling: Scrap and Blocked Stock
135 - Stock Transfer without Delivery
137 - Physical Inventory / Inventory Count & Adjustment
117 - Batch Management
Scenario Overview-Baseline
Time-to-Market
Key Business Scenarios:
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210 - Internal Product Development
Scenario Overview-Baseline
Forecast-to-Stock
Key Business Scenarios:
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144 - Logistics Planning
145 - Make-to-Stock Production - Discrete Industry
146 - Make-to-Stock Production - Process Industry
147 - Make-to-Order Production with Variant Configuration
148 - Make-to-Order Production w/o Variant Configuration
149 - Repetitive Manufacturing
150 - Production Subcontracting (External Processing)
151 - Rework Processing (Stock-Manufactured Material)
202 - Rework Processing (Work-in-Process)
Scenario Overview-Baseline
Order to Cash
Key Business Scenarios:
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108 - Credit Management
109 - Sales Order Processing – Sale from Stock
110 - Free of Charge Delivery
111 - Returns and Complaints
112 - Sales Quotation
113 - Sales Order Processing for Prospect
114 - Sales Processing using Third Party (without Shipping Notification)
116 - Debit Memo Processing
201 - Sales Order Processing with Customer Down Payment
203 - Sales: Period End Closing Operations
204 - Credit Memo Processing
118 - Foreign Trade Export Processing
119 - Customer Consignment Processing
120 - Returnables Processing
122 - Batch Recall
123 - Cross-Company Sales Order Processing
Scenario Overview-Baseline
Procure-to-Pay
Key Business Scenarios:
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128 - Quotation for Procurement
129 - Consumable Purchasing
130 - Procurement w/o QM
133 - Procurement Contract
136 - Return to Vendor
127 - Quality Management for Procurement with Vendor Evaluation
138 - MM Subcontracting
139 - Procurement & Consumption of Consigned Inventory
141 - Internal Procurement: Cross-Company Stock Transfer
Scenario Overview-Baseline
Financial and Management Accounting
Key Business Scenarios:
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156 - General Ledger
157 - Accounts Receivable
158 - Accounts Payable
159 - Period End Closing in Financial Accounting
160 - Cash Management
162 - Asset Accounting
164 - Asset Acquisition for Constructed Assets (Invest. Orders)
184 - Overhead Cost Controlling – Actual
185 - Internal Order R&D Actual
186 - Internal Order for Marketing and Other Overhead Actual
163 - Asset Acquisition through Direct Capitalization
165 - Activate Document Splitting
161 - Cost of Sales Accounting
166 - Segment Reporting
Scenario Overview-Baseline
Annual Operating Plan & Forecast and Simulation
Key Business Scenarios:
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175 - General Cost Center Planning
177 - Internal Order R&D Planning
180 - Internal Order for Marketing and Other Overhead Planning
172 - Revenue Planning
173 - SOP through Long Term Planning Transfer to LIS/PIS/Capacity
174 - Purchased Material Price Planning
176 - Manufacturing Cost Center Planning
178 - Standard Cost Calculation
179 - Quarterly Plan - Sales Quantity Forecast with CO-PA
187 - Reference and Simulation Costing
Scenario Overview-Baseline
Integration Processes
Key Business Scenarios:
Period End Closing Integrated
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181 - Period End Closing General Plant
182 - Inventory Valuation for Year End Closing
224 - Period End Closing Activities
Analytics
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221 – SAP ERP Reports for Accounting
222 – SAP ERP Reports for Logistics Multi-area scenario
Scenario Overview –
Summary for all existing Scenarios
SAP Applications Required:
Required
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EHP3 for SAP ERP 6.0
SAP Enterprise Portal
Company roles involved in process flows
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Sales Administration
Sales Billing
Warehouse Clerk
Warehouse Monitoring
Warehouse Manager
Transportation Planning
Purchasing Manager
Buyer
Business Analyst Purchaser
Product Cost Controller
Production Planner
Shop Floor Specialist
Accounts Payable Accountant 1
Finance Manager
General Ledger Accountant
Assets Accountant
Process Flow Diagram
Event
AFS: Stock Transfer with Delivery
Daily Shipment
Worklist,
Enough Inventory
Prod.
planne
r
Need for
material
MRP
RUN
?
Yes
Forecast, Plan
& Run MRP
Process Delivery
Due List for Pos
(Create Outbound
Delivery)
Delivery
Warehouse Clerk
Material
Arrival at
Plant Dock
Picking
Confirmation
Delivery Note
No
Check Status of
Stock Transfer
Post Goods
Issue
Buyer
Excis Custome
e
clerk r Service
GR Slip
Creating Billing
Document
Creating Excise
Invoice
Create Stock
Transport Order
Delivery (w/o MRP)
Printing Excise
Invoice
Check Stock
Process Stock
Transport
Requisition Delivery
MRP = Material Requirements Planning, GR = Goods Receipt
Change Stock
Transport
Order Delivery
Enter PO
confirmation
Post Goods
Receipt for
Delivery
Process Flow Diagram
Warehouse Management with Allocation Run
Warehouse
manager
Warehous
e Monitor
Warehouse clerk
Event
Initial Stock, Stock Transfer and Physical Inventory management:
Physical
Inventory
requirement
Replenishme
nt
requirement
Stock
Transfer
Requirement
Initial Stock
Requirement
Posting Initial
stock
Create TO for
material
document
Confirm TO
Stock Transfer
Create TR
Create TO
Create Transfer
Requirement
Create TO for TR
Confirm TO
Create Physical
Inventory
Counting Result
Clearing Different
WM
Displaying
Storage Bin
Stock
Confirm TO
Clearing
Differences
Inventory
Management
Process Flow Diagram
Warehouse Management with Allocation Run
Customer
order goods
Order goods
from Vendor
Create PO
Warehouse clerk
Sales
Administratio
n
Purchasing
Manager /
Buyer
Event
Purchasing & Sales processing:
Create Sales
Order
Create Inbound
Delivery
Create TO
Confirm TO
Good receipt
Executing
Allocation Run
Create outbound
delivery
Create TO
Confirm TO
Post goods issue
Process Flow Diagram
Ware-house
Clerk
Shop Floor
Specialist
Production Planner (AFS)
Event
Make-to-Stock for Apparel and Footwear Industry
Beginning of
Planning
Cycle
Maintain
Distribution of
Requirement
Creating Planned
Independent
Requirements
Create Planned
Order in MRP
Inventory
Consumption
@ Standard.
Cost
Convert
Planned Order to
Production Order
Release
Production
Order
Goods Issue
Confirming
Assembly
Activities
/ Final
Confirmation
Finished Goods
Receipt
Inventory @
Standard. Cost
Process Flow Diagram
Customer
Requirement
Sales Order
Entry
Creating
Planned Order
in MRP
Converting a
planned order
to production
order
Release
Production
Orders
Shop
Floor
Specialist
Sales
Productio Administ
n Planner ration
Event
Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry
Confirmation of
Production
Order
Operations
Warehouse Clerk
Sales
Billing
Follow
up
process
Comparing
Planned and
Actual Costs
Manually
Issue
Goods
Good receipt
for
Manufactured
Goods
Delivery
Processing
FI account
document
Billing
Accounts
Receivable(157)
Period End
Closing General
Plant(181)
Sales: Period
End Closing
Operations
(203)
Process Flow Diagram
Assigning
Distribution
Profile to
Finished goods
Production
Demand
Maintaining
Distribution of
Requirements
Creating
Planning
Independent
Requirements
Convert
Purchase
Requisition to
Purchase Order
Convert
Planned Order
to Purchase
Requisition
(semi)
Creating
Planned Order
in MRP
Warehous
e Clerk
(plant 1,2)
Converting
Planned Order
to a Production
Order (finish
goods)
Release
Purchasing
Order
Release
Production
Order (finish
goods)
MRP Running
Release
Production
Order
Materia
l
staging
On-site
Produc
tion
Production
Order
Confirmation
(finished
goods)
Converting
Planned Order
to a Production
Order (semifinish)
Shop
Floor
Specialist
(plant 2)
Producti
on
Planner
(plant 2)
Shop
Purchas
Floor
e
Specialist Manager
(Plant1)
Production
Production
Planner
Planner
(Plant 1)
(plant1)
Engineer
ing
Specialis
t
Inter-company and Cross-plant Production
Goods Receipt
(semi-finish)plant 2
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
Delivery and
Picking
On-site
Produc
tion
Display stock
in Transit
Production
Order
Confirmation
Entering Goods
Receipt for
Purchase Order
Goods Receipt
(finish)-plant 1
Process Flow Diagram
Production
Demand
Maintaining
Distribution of
Requirements
Creating
Planning
Independent
Requirements
Checking
Subcontracting
Purchase
Requisition
from
Production
Order
Shop Floor
Specialist
Production Planner
Production Subcontracting (External Processing) for Apparel and Footwear Industry
Converting
Planned Order
to Production
Order
Buyer
Purchasi
ng
Manager
Release
Production
Order
Create
Purchase order
for external
processing
Release
Purchasing
Order
Confirm
Production
Order
Creating
Delivery
Document
through
Subcontract
Stock Monitor
Sending
Components to
Subcontractor
with Delivery
Document
Accounts
Payable
Accounta
nt 1
Warehouse Clerk
Creating
Planned Order
in MRP
Goode receipt
for production
Order
Post Goods
receipt for
Purchase Order
Material
Document
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
Material
Document
Material
Document
Process Flow Diagram
Event
Combined Production Orders
Creating Planned
Independent
Requirements
Creating Planned
Order in MRP
Convert
Planned Order to
Production
Orders
Combine the
Production
Orders
Release
Combine Order
Confirm
Combine Order
Cost
Contr
oller
Warehouse
Clerk
Shop Floor
Specialist
Production Planner
Creating
Distribution
Profile
Confirm
Production Order
Operation/Back
Flush
Goods Receipt
Slip
Compare
Planning Cost
and Actual Cost
Order Print
Back Flush
Component in
Background
Finished Goods
Receipt
Period End
Closing
“General”
Plant
(181)
Inventory
Consumption @
Standard. Cost
Inventory @
Standard. Cost
Process Flow Diagram
Send
Shipping
Notification/
Confirmation
Drop Ship
Product to
3rd Party
Customer
Request for
Material
Create Sales
Order
Quotation
for
Procuremen
t (128)
Incoming
Vendor
Invoice
Order
Confirmation
(Optional)
Change Order
Quantity
Auto-generates a
Requisition
Display List of
Purchase
Requisitions to
Be Assigned
Convert
Assigned
Requisitions to
Purchase Orders
Billing
Document
Approval of
Purchase
Orders
Warehouse
Clerk
Purchasing
Manager /
Buyer
Sales
Administration Customer
Vendor
AFS: Sales Processing using Third Party (w. Shipping Notification)
Sales
Billing
Post Statistical
Goods Receipt
Accounts
Payable /
Receivable
Billing
AP–Outgoing
Payment
(158)
COGS Vendor
Invoice Receipt
AR–Incoming
Payment
(157)
Closing
Operations
SD (203)
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
Process Flow Diagram
Delivery of
Items to
Trader’s
Warehouse
Customer
Request for
Material
Credit
Managemen
t
(108)
Create Sales
Order
(Optional)
Change Order
Quantity
Quotation
for
Procuremen
t
(128)
Display List of
Purchase
Requisitions to
be Assigned
Incoming
Vendor
Invoice
Order
Confirmation
Credit
Managemen
t
(108)
Billing
Document
Auto-generates a
Requisition
Convert
Assigned
Requisitions to
Purchase Orders
Approval of
Purchase
Orders
Sales
Billing
Purchasing
Manager /
Buyer
Sales
Administration
Customer
Vendor
AFS: Sales of Nonstock Item with Order Specific Procurement
Accounts
Payable/
Receivable
Warehouse
Clerk
Billing
Print GR Slip
Delivery Due
List
Post Goods
Receipt
Post Goods
Issue
Pick List
AP-Outgoing
Payment
(158)
AP = Accounts Payables, AR = Accounts Receivables, COGS = Cost of Goods Sold, GR = Goods Receipt
COGS Vendor
Invoice Receipt
AR-Incoming
Payment
(157)
Process Flow Diagram
Customer
Needs to Buy
Product
Order
Confirmation
Sales Order
Entry
Delivery Note
Billing
Document
Allocation Run
Sales
Billing
Warehouse Clerk
Sales
Administration Customer
Event
Sales Order Processing with Allocation Run : Sale from Stock
Delivery&
Picking
Post Goods
Issue
Pick List
Inventory
COGS
Accounts
Receivable
Billing
AR–Incoming
Payment
(157)
AR= Accounts Receivable, COGS = Cost of Goods Sold
Closing
Operations
SD (203)
Process Flow Diagram
Sales Need to
Be Processed
Across
Different
Company Code
Delivery Note
Create Sales
Order
Warehouse Clerk
Sales
Administration Customer
Event
Cross-Company Sales Order Processing with Allocation Run
Bill of Lading
Allocation Run
Check EDI
Transmission
Pick List
Accounts
Receivable
Sales Billing
Delivery
Picking
Post Goods
Issue
Display Billing
Document
Create
Intercompany
Document
Create Billing
Document
Display
Intercompany
Document
AR–Incoming
Payment
(157)
AR = Accounts Receivable
Closing
Operations
SD (203)
Process Flow Diagram
Customer
Request for
Material
Delivery Note
Billing
Document
Create Purchase
Order
Approve Purchase
Order
Create
Customer
Order
Displaying
Customer Order
Confirmation
Reallocation
against Early
Allocation
Allocation
against Future
Receipts
AFS
Stock/Requirem
ents List
Wareho
use
Clerk
Productio
Sales
Pur.
n
Administr
Manager
Planner
ation
Buyer
Custo
mer
Pre-Order Processing (Sales)
Sales
Billing
Goods receipt
of Purchase
Order
Creating
Delivery incl.
Picking and
Goods Issue
Billing
Accounts
Payable /
Receivable
AR–Incoming
Payment
(157)
Closing
Operations
SD (203)
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
Process Flow Diagram
Event
Rush Order Processing (Sales)
Order
Confirmation
Delivery Note
Delivery Due
List
Post Goods
Issue
Pick List
Inventory
COGS
Billing
Document
Sales Order
Entry
Sales
Billing
Warehouse Clerk
Sales
Administr
ation
Customer
Customer
Needs to Buy
Product
Accounts
Receivabl
e
Billing
AR= Accounts Receivable, COGS = Cost of Goods Sold
AR–Incoming
Payment
(157)
Closing
Operations
SD (203)
Process Flow Diagram
Customer Needs
to Buy Product
Order Confirmation
Sales Order Entry
Valid
legal
control
?
Yes
No
Warehouse Clerk
Sales
Administration
Customer
Event
Sales Order Processing with Export Control
Order
Confirmation(Print
Sales Order)
Delivery Note
Billing Document
Allocation Run
Release Sales Order
Delivery plus Pick
and Post Goods
Issue
Sales
Billing
Billing
Accounts
Receivabl
e
Inventory COGS
AR–Incoming
Payment
(157)
AR= Accounts Receivable, COGS = Cost of Goods Sold
Closing
Operations
SD (203)
Process Flow Diagram
Event
Order to Cash with Packing and Transport Management
Customer
Customer Needs
to Buy Product
Sales
Administration
Order Confirmation
Sales Order Entry
Delivery Note
Billing Document
Order
Confirmation(Print
Sales Order)
Output
with
EDI?
Check IDOC
Processing for
Shipping Notification
No
Create Delivery plus
Picking and Packing
Create & Complete
Shipment Document
Post Goods Issue
Inventory
COGS
Sales
Billing
Wareho
use
Clerk
Allocation Run
Yes
Accounts Transpor
tation
Receivable Planning
Billing including
Freight Cost
AR= Accounts Receivable, COGS = Cost of Goods Sold
Determine Shipment
Cost
AR–Incoming
Payment
(157)
Closing
Operations
SD (203)
Process Flow Diagram
Send Shipping
Notification/
Confirmation
Incoming Vendor
Invoice
Customer Request
for Material
Create Sales Order
Display Stock
Requirement list
Run MRP
Create Purchase
Requisition manually
Create Purchase
Requisition
Convert Assigned
Requisitions to
Purchase Orders
Warehouse
Clerk
Purchase Employe Productio Sales
Custom Vendor
Manager/
e
n Planner Adminis
er
Buyer
tration
Finished Goods and Raw Materials Sourcing
Approval of Purchase
Orders
Accounts
Payable/
Material Document
AP–Outgoing
Payment
(158)
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
Enter PO
Confirmation
Post Statistical
Goods Receipt
COGS Vendor
Invoice Receipt
Process Flow Diagram
Customer
Request for
Material
Incoming
Vendor Invoice
Create Sales
Order
Display Stock
Requirement list
Run MRP
Enter PO
Create Purchase
Order
(Component)
Confirmation
Create Purchase
Order (Header)
Confirmation
Enter PO
Warehouse Clerk
Purchasing
Manager/Buyer
Producti
Sales
Vendor/
on
Administrat Custome
Planner
ion
r
Materials Subcontracting for Apparel and Footwear Industry
Approval of
Purchase Order
(Component)
Approval of
Purchase Order
(Header)
Accounts
Payable/
Create
Outbound
Delivery for
Remain
Components
AP
Outgoing
Payment
(158)
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
Create
Inbound
Delivery
Post Goods
Receipt direct
to
Subcontractor
Goods Issue
for Outbound
Delivery
Create
Inbound
Delivery
COGS Vendor
Post Goods
Receipt
Invoice Receipt
for Two
Purchase Orders
Process Flow Diagram
Finance Manager / General Ledger Accountant
Event
Activate Document Splitting for Apparel and Footwear Industry
G / L Account
Document
with Different
Segments
Display a
General Ledger
Document
Reporting
Process Flow Diagram
Event
Roll MM Period
to Current
Period
Assets Engineeri
Producti
Warehou Account
ng
on
se Clerk
Specialis
ant
Planner
t
Product Cost
Controller
Updating
Finance
Manager
AFS: Prereq. Process Steps
Product
Costing:
Costing Run
Master Data
Preliminary
Cost Estimate
Create Product
Cost Collectors
Preliminary
Cost for the
Product Cost
Collector
Create and
Schedule Job
Posting
Product
Costing:
Costing Run for
Configured
Materials
Run Materials
Requirements
Planning (MRP)
Set Up
Planning File
Entry
Routings:
Material Update
Asset: Create
Asset Master
Asset:
Acquisition
with Automatic
Offsetting Entry
Initial Stock
Posting