CASE STUDY
SAP ERP Configuration Phase IV
– Production
Product
MOTIVATION
PREREQUISITES
SAP ERP GBI
Release 6.04
You will configure the
enterprise structure and
business processes for
Production.
You should be familiar with
navigation in the SAP system.
Revised
6/24/2014
Focus
Production
Authors
Simha R. Magal
Stefan Weidner
Tom Wilder
Version
2.23
After setting up the
organization units and
process parameters, you
will create necessary
master data and test the
business process.
It is also recommended that
you have gone through the
fulfillment exercise.
ACKNOWLEDGEMENT
This material was prepared
with the assistance of student
interns at the Seidman ERP
program at Grand Valley
State University and the SAP
Club at CSU Chico as well as
student and research
assistants at SAP UCC
Magdeburg.
Also, thanks to Corrie Fiedler
(Senior Lecturer, Information
& Decision Sciences, Carlson
School of Management,
University of Minnesota) for
her assistance in improving
this exercise.
© SAP AG
Phase IV – Production
CASE STUDY
Overview and Table of Contents
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
General Notes and Cautions ...................................................................................................... 1
Part IV.1 – Enterprise Structure ................................................................................................. 3
Part IV.2 – Rules and Parameters .............................................................................................. 5
Part IV.3 – Master Data.............................................................................................................21
Part IV.4 – Process Execution...................................................................................................41
© SAP AG
Phase IV – Production
CASE STUDY
General Notes and Cautions
Warning: When working with other classmates at the same time in the same transactions within
“SPRO”, tables will tend to lock up and you will only be able to display them. This is due to the fact that
the system does not allow multiple users in the same transaction at the same time. To get passed this
message, simply wait until the current user in the transaction is finished and then proceed.
Attributes: At times, certain attributes or fields may not appear to have the name of them in front of the
user. To display the full name of the attribute or field, simply click within the field and then press the F1
key. This will bring up not only the title of the field, but it will bring up the full description of it to read.
The ## Symbol: When working with other classmates at the same time, you will be assigned your own
unique identifier which is called the ## Symbol or the “Pound Pound” Symbol. This will be your
identifier and is ASSIGNED FOR YOUR OWN USE ONLY!!! Please be cautious about other classmates
attempting to use your identifier whether it is on purpose or not and if you suspect other classmates using
it, inform your professor immediately so that fixes can be made accordingly. For example, if Ashley has
an identifier of 09, Ashley’s company code will be US09.
The Search Tool: At times in this document, the instructions will ask you to search for something to put
in a field. When it does this, simply click on the field itself and click on the icon to the right of it (it looks
like a white square). Clicking on it will bring up another window and you will search from there. You
may also search other field by clicking on the downward arrow that may be on the left or right of the
field. It will bring up a drop down menu that will have options to choose from and click.
Where do I start? : There are three ways to proceed within the SAP system: Using the “SAP Easy
Access” menu, using the “SAP Menu Bar”, and using the “SAP Customizing Implementation Guide”
menu. All three of these are explained below:
1. The SAP Easy Access menu appears when you start a new session.
2. The SAP Menu Bar also appears when you start a new session at the very top of the screen.
3. In the SAP Customizing Implementation Guide, there are two ways you may use to get here:
a. The first is to simply type “SPRO” in the transaction field at the top of the screen.
b. Proceed through the path to get there. The path consists of the following:
(In the main menu of SAP, click on the black arrows on the left of these names) SAP menu ► Tools ►
Customizing ► IMG ► Execute Project (double-click on “Execute Project”)
In the “Customizing: Execute Project” screen, click on the
icon.
Saving: When the instructions to tell you to save data, always press the “Enter” key to validate. If there
are error(s) that occur, they must be corrected before continuing to the next task. You will find errors
from a transaction when there are red icons that appear in the message area. Messages that are yellow
contain warnings and not errors. At times, these must be fixed in order to move on. However, most of the
time, they do not need to be fixed and you can simply enter through them. Green messages are obviously
showing that nothing went wrong with the transaction and that you may proceed to the next task.
© SAP AG
Page 1
Phase IV – Production
CASE STUDY
Set Controlling Area Pop-Up: At times throughout this phase, there will be times when the system asks
you enter your controlling area to clarify which controlling area you are configuring for.
If this should happen, in the “Set Controlling Area” pop-up, enter the following information:
Attribute
Controlling Area
Click on
Description
Uniquely identifies a controlling area.
Data Value
NA##
(CONTINUE (ENTER)).
This will get you into the next screen where the instructions will then tell you what to do for the task.
Enter Chart of Accounts Pop-Up: At times throughout this phase, there will be times when the system
asks you enter your chart of accounts to clarify which chart of accounts you are configuring for.
If this should happen, in the “Enter Chart of Accounts” pop-up, enter the following information:
Attribute
Chart of Accounts
Click on
Description
Key that uniquely identifies a chart of accounts.
Data Value
GL##
(CONTINUE (ENTER)).
This will get you into the next screen where the instructions will then tell you what to do for the task.
Differences in Font: Throughout this phase you will see tables with different fonts used in the Data
Value column. The normal Times New Roman indicates you enter exactly what is typed out except for
the ## Symbol where you would put in your identifier. The italicized Times New Roman font indicates the
data is looked up or found.
Attribute
Times New Roman
Times New Roman
(Italicized)
© SAP AG
Description
Font that tells you to enter what is written.
Font that tells you the data that needs to be
looked up.
Data Value
Times New Roman
Times New Roman
(Italicized)
Page 2
Phase IV – Production
CASE STUDY
Part IV.1 – Enterprise Structure
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
IV.1.1: Determine Work Center Location .................................................................................... 4
© SAP AG
Page 3
Phase IV – Production
CASE STUDY
IV.1.1: Determine Work Center Location
Description: You will define a Work Center Location within the city of Dallas, TX. A Work Center
Location contains Work Centers and identifies the physical location where work is carried out. A
Work Center Location can be a general place description (Philadelphia) or a very specific place
description (office 105, desk III).
Please note that a Work Center Location ≠ Work Center. Rather a Work Center Location contains
Work Centers.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Logistics –
General ► Define Location
Tasks and Data Entry:
In the “Change View “Locations”: Overview” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Plnt
Your Plant Dallas
Click on
Location
DALLAS TX
Name
GBI N42##
(ENTER).
In the “Edit address: DL## DALLAS TX” pop-up, enter the following information:
Attribute
Country
Region
Description
The country key contains information which the system uses to check
entries such as the length of the postal code or bank account number.
In some countries, the region forms part of the address.
In the “Street Address” part, click on the
Data Value
USA
Texas
icon.
Enter the following information:
Attribute
Jurisdict. code
Click on
Description
Specifies the tax jurisdiction.
Data Value
Texas Jurisdiction Code
(ENTER (CONTINUE)). You will receive a message that says “One entry chosen”.
In the “New Entries: Overview of Added Entries” screen, click on the
icon.
You will receive a message that says “Data was saved”.
© SAP AG
Page 4
Phase IV – Production
CASE STUDY
Part IV.2 – Rules and Parameters
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
IV.2.1: Define Production Scheduling Profile .............................................................................. 6
IV.2.2: Define Production Scheduler .......................................................................................... 7
IV.2.3: Configure Automatic Postings ......................................................................................... 8
IV.2.4: Activate Material Requirements Planning........................................................................ 9
IV.2.5: Define Checking Control ................................................................................................10
IV.2.6: Define Scheduling Parameters ......................................................................................11
IV.2.7: Define Order Dependent Parameters .............................................................................12
IV.2.8: Define Confirmation Parameters ....................................................................................13
IV.2.9: Carry Out Maintenance of Materials ...............................................................................14
IV.2.10: Carry Out Maintenance of Production ..........................................................................18
IV.2.11: Define Valuation of Goods Received ...........................................................................20
© SAP AG
Page 5
Phase IV – Production
CASE STUDY
IV.2.1: Define Production Scheduling Profile
Description: You will create the Production Scheduling Profile used at your Dallas plant.
GBI management wants to improve plant efficiency by automatically taking the following action
when a production order is created. The order is:


automatically released and scheduled without manual intervention.
not scheduled unless all materials are available (e.g., partial orders are not allowed).
A production scheduling profile can be associated either with specific materials or to a production
scheduler.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ► Master
Data ► Define production scheduling profile
Tasks and Data Entry:
In the “Change View “Production Scheduling Profile”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Prod. Sched. Profile
Description
Release
Schedule Order
Click on
© SAP AG
Description
Key uniquely identifying a plant.
Specifies which transactions are carried out in
parallel, can trigger an automatic goods receipt, or
specify an overall profile for capacity leveling.
Description of production scheduler profile.
Specifies an order is to be released when it is created.
Specifies an order is to be scheduled as it is released.
Data Value
Your Plant Dallas
10
## Release & Schedule
Selected
Selected
(SAVE). You will receive a message that says “Data was saved”.
Page 6
Phase IV – Production
CASE STUDY
IV.2.2: Define Production Scheduler
Description: You will create a Production Scheduler and associate this scheduler with the production
schedule profile created in the previous step. The Production Scheduler is responsible for the day-today scheduling activities for a set of manufactured materials across a plant or plants.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ► Master
Data ► Define production scheduler
Tasks and Data Entry:
In the “Change View “Production Scheduler”: Overview” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute
Plant
ProdSched.
Description
ProdProfile
Click on
© SAP AG
Description
Uniquely identifies a plant
Scheduler responsible for a material in production.
Description of Production Scheduler
Specifies which transactions are carried out in
parallel, can trigger automatic goods receipt, or
specify an overall profile for capacity leveling.
Data Value
Your Plant Dallas
0##
## DL Production Scheduler
10
(SAVE). You will receive a message that says “Data was saved”.
Page 7
Phase IV – Production
CASE STUDY
IV.2.3: Configure Automatic Postings
Description: This is the first of two steps in which you configure SAP to automatically post General
Ledger transactions associated with the Production business process.
You will specify the General ledger accounts associated with the Issue Materials process step.
For example, when Raw Materials (Valuation Class = 3000) are issued to a production order
(Transaction Key = VBR) financial transaction will post to


Inventory – Raw Materials (specified in a previous step)
Raw Material Consumption (the offsetting account, specified in this step).
Notice that the general ledger account for ‘inventory from heaven’ is also specified here.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Valuation and
Account Assignment ► Account Determination ► Account Determination Without Wizard ► Configure
Automatic Postings
Tasks and Data Entry:
In the “Automatic Posting” screen, click on the
icon.
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on GBB.
You are in the “Maintain FI Configuration: Automatic Posting – Accounts” screen.
Enter the following information:
Val. modif.
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
Click on
© SAP AG
Gen. modif.
AUF
AUF
VBR
VBR
VBR
BSA
BSA
BSA
BSA
Valuation class
3000
3030
3100
7900
7900
7920
3000
3100
7900
3000
3100
7920
7900
Account
Your Raw Material Consumption Expense
Your Supplies Expense
Your Trading Good Consumption Expense
Your Semi-Finished Consumption Expense
Your Manufacturing Output settlement
Your Manufacturing Output Settlement Variance
Your Raw Material Consumption Expense
Your Trading Good Consumption Expense
Your Semi-Finished Consumption Expense
Your Inventory-Suspense (Heaven)
Your Inventory-Suspense (Heaven)
Your Inventory-Suspense (Heaven)
Your Inventory-Suspense (Heaven)
(SAVE). You will receive a message that says “Changes have been made”.
Page 8
Phase IV – Production
CASE STUDY
IV.2.4: Activate Material Requirements Planning
Description: You will activate your three Plants to use material resource planning (MRP).
MRP is used to plan manufacturing, purchasing, and delivering activities. MRP’s basic functions
include inventory control, bill of material processing, and scheduling. This activation allows for the
execution of single-item and multi-level planning in each of the three plants.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Consumption-Based
Planning ► Planning ► Activate Material Requirements Planning
Tasks and Data Entry:
In the “Activation” screen, click on the
icon.
You are in the “Change View “Activate Requirements Planning”: Overview” screen.
Enter the following information:
Plnt
Your Plant Dallas
Your DC Miami
Your DC San Diego
Click on
© SAP AG
Activate requirements planning
Selected
Selected
Selected
(SAVE). You will receive a message that says “Data was saved”.
Page 9
Phase IV – Production
CASE STUDY
IV.2.5: Define Checking Control
Description: This is the first of four steps in which you specify parameters guiding the creation and
release of production orders in your Dallas plant.
You will copy checking control parameters from Company Code US00 to your Company Code
US##.
These parameters identify which inventory should be considered as available for use in a production
order. GBI management has determined that production orders should be checked for inventory
availability at both creation and release. This ensures that no order will be sent to the plant floor for
production unless all materials (both raw materials and semi-finished goods) are available.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ►
Operations ► Availability Check ► Define Checking Control
Tasks and Data Entry:
In the “Change View “Order Control”: Overview” screen, highlight the “DL00 PP01 1” row.
Highlight the “DL00 Plant PP01 2” row.
Click on
(COPY AS…). You will receive a message that says “Specify target entries”.
In the “Change View “Order control”: Details of Selected Set” screen, enter the following information:
Attribute
Plant
Click on
Description
Key uniquely identifying a plant.
Data Value
Your Plant Dallas
(ENTER). You will receive a message that says “Specify target entries”.
Enter the following information:
Attribute
Plant
Click on
Description
Key uniquely identifying a plant.
Data Value
Your Plant Dallas
(ENTER). You will receive a message that says “Number of entries copied: 2”.
In the “Change View “Order control”: Overview of Selected Set” screen, click on the
icon.
You will receive a message that says “Data was saved”.
© SAP AG
Page 10
Phase IV – Production
CASE STUDY
IV.2.6: Define Scheduling Parameters
Description: This is the second of four steps in which you specify parameters guiding the creation
and release of standard production orders in your Dallas plant.
You will specify scheduling parameters associated with the Dallas Plant and your Production
Scheduler. This step implements GBI management’s strategic decisions regarding production order
scheduling:



orders are backwards scheduled, rather than forward scheduled.
orders cannot be scheduled to begin in in the past (and hope that production can ‘catch up’).
order lead time will not be automatically reduced (in the case the order is ‘running late’).
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ►
Operations ► Scheduling ► Define Scheduling Parameters for Production Orders
Tasks and Data Entry:
In the “Change View “Specify scheduling parameters”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Order type
Prodn Superv.
Scheduling Type
Automatic Scheduling
Click on
© SAP AG
Description
Key uniquely identifying a plant.
Identifies the usage of the orders.
Scheduler responsible for a material.
Specifies the scheduling type.
Specifies that orders or networks are
automatically scheduled when saved.
Data Value
Your Plant Dallas
Standard Production order
Your DL Production Scheduler
Backwards
Selected
(SAVE). You will receive a message that says “Data was saved”.
Page 11
Phase IV – Production
CASE STUDY
IV.2.7: Define Order Dependent Parameters
Description: This is the third of four steps in which you specify parameters guiding the creation and
release of standard production orders in your Dallas plant.
You will specify production order parameters associated with the Dallas plant. This step implements
GBI management’s tactical decisions regarding standard production orders:


production orders require a routing
both planned (standard) costs and actual production costs are calculated for each production
order.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ► Master
Data ► Order ► Define order type-dependent parameters
Tasks and Data Entry:
You are in the “Change View “Order Type-Dependent Parameters: Overview”: Overview” screen.
Click on
(NEW ENTRIES).
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Order Type
Description
Key that uniquely identifies a plant.
Key that differentiates orders according to their purpose.
Routing Selection
Controls per plant and order type how the selection of a
routing/reference operation set is to be carried out.
Represents a process for automatic determination of
alternatives in the different areas within a company.
BOM Application
Data Value
Your Plant Dallas
Standard Production
order
Routing Mandatory
(automatic selection)
Production – General
Click on the “Cost Accounting” tab.
Enter the following information:
Attribute
Cstg variant planned
Cstg variant actual
Click on
© SAP AG
Description
Key that specifies which costing variant
is used to determine the planned costs.
Key that specifies the costing variant that
is used to determine the actual costs.
Data Value
Production Order: Planned
Production Order: Actual
(SAVE). You will receive a message that says “Data was saved”.
Page 12
Phase IV – Production
CASE STUDY
IV.2.8: Define Confirmation Parameters
Description: This is the fourth of four steps in which you specify parameters guiding the creation and
release of standard production orders in your Dallas plant.
You will specify confirmation parameters associated with the Dallas Plant. This step implements GBI
management’s tactical philosophy regarding the confirmation of standard production orders:

at final confirmation, all production order components (raw materials and semi-finished
goods) are ready for issue and thus open reservations are cleared.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ►
Operations ► Confirmation ► Define Confirmation Parameters
Tasks and Data Entry:
You are in the “Change View “Parameters for Order Confirmation”: Overview” screen.
Click on
(NEW ENTRIES).
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Order Type
Description
Key that uniquely identifies a plant.
Key that differentiates orders according to their purpose.
Data Value
Your Plant Dallas
Standard Production order
Click on the “Individual Entry General” tab.
Enter the following information:
Attribute
Confirmation Type
Clear Open
Reservations
Click on
© SAP AG
Description
Specifies what sort of confirmation is to be automatically
proposed.
Specifies that with a final confirmation the indicator “Final
issue” is also set for components that are not backflushed.
Data Value
Final
Confirmation
Selected
(SAVE). You will receive a message that says “Data was saved”.
Page 13
Phase IV – Production
CASE STUDY
IV.2.9: Carry Out Maintenance of Materials
Description: This is the first of two steps in which you specify MRP parameters.
In this step you will:
 specify the number scheme by which production orders and other production-related
transaction will be numbered. For example, your first Planned Production Order in Dallas
will be Planned Order #1,
 create an MRP controller (0##). The MRP controller is a planner (or group of planners)
responsible for the day-to-day planning activities,
 specify other analytical measures (float, for example) that guide the MRP algorithm.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Consumption-Based
Planning ► Plant Parameters ► Carry Out Overall Maintenance of Plant Parameters
Tasks and Data Entry:
You are in the “Plant Parameters for Material Requirements Planning” screen.
Click on
(CREATE).
In the “Create Plant Parameters” pop-up, enter the following information:
Attribute
Plant
Description
Key that uniquely identifies a plant.
Click on
Data Value
Your Plant Dallas
(CREATE).
In the “Create Plant Parameters” pop-up, click on the
icon.
You will receive a message that says “Plant Parameters for Plant DL## can now be maintained”.
In the “Plant Parameters for Material Requirements” screen, click on the
In the “Maintain Plant Parameters” pop-up, click on the
icon.
icon.
In the “Maintain Plant Parameters” screen, click on the
In the “Assign Number Ranges” screen, click on the
icon.
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Number Ranges for Planned Orders”: Overview” screen.
Enter the following information:
© SAP AG
Page 14
Phase IV – Production
Plnt
Your Plant Dallas
CASE STUDY
Name 1
## Plant Dallas
NRge pl.orders
01
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Assign Number Ranges” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Number Ranges for Reservations”: Overview” screen.
Enter the following information:
Plnt
Your Plant Dallas
Name 1
## Plant Dallas
NR: StkTrns Res.
01
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Assign Number Ranges” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Number Ranges for Purchase Requisitions”: Overview” screen,
Enter the following information:
Plnt
Your Plant Dallas
Name1
## Plant Dallas
NR - PReq
01
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Assign Number Ranges” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Number Ranges for MRP Lists”: Overview” screen.
Enter the following information:
Plnt
Your Plant Dallas
Click on
© SAP AG
Name 1
## Plant Dallas
No. Range –MRP
01
(SAVE). You will receive a message that says “Data was saved”.
Page 15
Phase IV – Production
Click on
CASE STUDY
(BACK).
In the “Assign Number Ranges” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Number Range for Sim. Dependent Requirements”: Overview” screen
Enter the following information:
Plnt
Your Plant Dallas
NR. SimDepRs
01
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Assign Number Ranges” screen, click on the
icon.
In the “Maintain Plant Parameters” screen click on the
icon.
You will receive a message that says “No entries found that match selection criteria”.
In the “Change View “MRP Controllers”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
MRP Controller
Name of MRP Controller
Description
Key uniquely identifying a plant.
Specifies the number of MRP controller
or group of MRP controllers responsible
for material planning for the material.
Specifies the name of the MRP controller
or group of MRP controllers responsible
for material requirements planning.
Data Value
Your Plant Dallas
0##
## DL Controller
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK). You will receive a message that says “Only one entry chosen”.
In the “Change View “MRP Controllers”: Details” screen, click on the
In the “Change View “MRP Controllers”: Overview” screen, click on the
icon.
icon.
In the “Maintain Plant Parameters” screen click on the
In the “Change View “Floats for Scheduling”: Overview” screen, click on the
© SAP AG
icon.
icon.
Page 16
Phase IV – Production
CASE STUDY
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Plnt
Your Plant Dallas
Marg.
001
Opening Period
1
Fl Bef.
1
Fl After
1
Rel. Per.
1
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK). You will receive a message that says “Only one entry chosen”.
In the “Change View “Floats for Scheduling”: Overview” screen, click on the
icon.
In the “Maintain Plant Parameters” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
In the “Change View “Availability Check”: Overview” screen, enter the following information:
Plnt
Your Plant Dallas
Rule for Availability Check
PP Checking Rule
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Maintain Plant Parameters” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Default Values Purchasing/MRP”: Details” screen.
Enter the following information:
Attribute
Scheduling: Info Rec/Agreemt
Schedule lines
Unknown Acct Assignment
Click on
© SAP AG
Description
Determines whether the planned delivery time in the
record is used for scheduling in the planning run.
Indicator controls whether, during the planning run,
the system never creates schedule lines, only creates
schedule lines in the opening period, or whether it
creates schedule lines in the planning horizon.
Account assignment for materials not valuated.
Data Value
Selected
Schedule lines
Unknown
(SAVE). You will receive a message that says “Data was saved”.
Page 17
Phase IV – Production
CASE STUDY
IV.2.10: Carry Out Maintenance of Production
Description: This is the second of two steps in which you will specify MRP parameters.
You will specify that:
 planned production orders will be converted to Production Orders with Order Type =
Standard.
 if multiple Bills of Materials (BOM) or Routings are available, SAP will automatically
assign the production BOM and the production Routing.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Material Requirements Planning
► Plant Parameters ► Carry Out Overall Maintenance of Plant Parameters
Tasks and Data Entry:
You are in the “Plant Parameters for Material Requirements Planning” screen.
Click on
(MAINTAIN).
In the “Maintain Plant Parameters” pop-up, enter the following information:
Attribute
Plant
Description
Key uniquely identifying a plant.
Click on
Data Value
Your Plant Dallas
(MAINATIN).
In the “Maintain Plant Parameters” screen, click on the
icon.
In the “Conversion” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
You are in the “Change View “Conv. Planned Ord. -> Prod.Ord., MRP Customizing”: Overview screen.
Enter the following information:
Attribute
Production order
Description
Key that differentiates orders
Data Value
Standard Production Order
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK) twice.
In the “Conversion” screen, click on the
© SAP AG
icon.
Page 18
Phase IV – Production
CASE STUDY
In the “Maintain Plant Parameters” screen click on the
icon.
In the “Plant Parameters: Reporting” screen, click on the
icon.
You will receive a message that says “One entry chosen”.
In the “Change View “Run-Time Statistics”: Overview” screen, enter the following information:
Attribute
Display list
Frequency
Description
Instructs the system to create a list of the planned materials.
Determines if an entry is made in the runtime statistics.
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Plant Parameters: Reporting” screen, click on the
Data Value
Selected
1
icon.
In the “Maintain Plant Parameters” screen click on the
icon.
You will receive a message that says “One entry chosen”.
In the “Change View “BOM/Routing Selection”: Overview” screen, enter the following information:
Attribute
BOM Sel ID
Routing Sel ID
Description
Determines which BOM is to be used and
with which priority for BOM selection.
Determines which routing is to be used and
with which priority for routing selection.
Data Value
01 Production
01 Released (general)
Click on
(SAVE). You will receive a message that says “Maintain selection ID in the parameters”.
Click on
(ENTER). You will receive a message that says “Data was saved”.
© SAP AG
Page 19
Phase IV – Production
CASE STUDY
IV.2.11: Define Valuation of Goods Received
Description: This is the first of two steps in which you configure SAP to automatically post General
Ledger transactions associated with the Production business process.
You will specify the General ledger accounts associated with the Receive Finished Goods process
step.
For example, when a Production Order is completed, and Finished Goods are received, the inventory
is valued at:


the actual cost as posted to the production order (if the Finished Good has moving average
price control), or
standard cost (if the finished good has standard price control).
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor Control ►
Integration ► Define Valuation of Goods Received
Tasks and Data Entry:
You are in the “Change View “Valuation variants for order costing”: Overview” screen.
Click on
(NEW ENTRIES).
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute
Val. Area
Val. Var.
Click on
© SAP AG
Description
Organizational level at which the material is valuated.
Determines the price of goods receipts for materials.
Data Value
Your Plant Dallas
Production Order: Actual
(SAVE). You will receive a message that says “Data was saved”.
Page 20
Phase IV – Production
CASE STUDY
Part IV.3 – Master Data
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
IV.3.1: Create Activity Type .......................................................................................................22
IV.3.2: Change Activity Output/Prices .......................................................................................23
IV.3.3: Determine Person Responsible .....................................................................................25
IV.3.4: Create Capacity .............................................................................................................26
IV.3.5: Create Work Centers .....................................................................................................28
IV.3.6: Create Raw Materials ....................................................................................................30
IV.3.7: Create Semi-Finished Good...........................................................................................32
IV.3.8: Create Finished Good ....................................................................................................34
IV.3.9: Create Bills of Materials .................................................................................................36
IV.3.10: Create Product Routings ..............................................................................................38
© SAP AG
Page 21
Phase IV – Production
CASE STUDY
IV.3.1: Create Activity Type
Description: This is the first of three steps in which you will define the labor needed to manufacture
products.
You will create activity types which describe the various forms of activity that can be performed at a
cost center. For simplicity, GBI uses only one activity type: LABOR.
You will implement GBI management’s tactical decisions that LABOR is: measured in Hour (H),
evaluated for each cost center, and distributed to the Labor secondary cost element for management
accounting.
Navigation: SAP menu ► Accounting ► Controlling ► Cost Center Accounting ► Master Data ►
Activity Type ► Individual Processing ► Create
Tasks and Data Entry:
In the “Create Activity Type: Initial Screen” screen, enter the following information:
Attribute
Activity Type
Valid From
Click on
Description
Key uniquely identifying an activity type.
Date indicating as of when an entry is valid.
Data Value
LABOR
First Day of Current Year
(ENTER).
In the “Create Activity Type: Basic Screen” screen, enter the following information:
Attribute
Name
Activity Unit
CCtr categories
ATyp category
Allocation cost elem
Price indicator

Description
General description of the object.
Time or quantity unit used to post the
consumed activity quantities.
Indicator determining for which cost center
types an activity type is allowed for planning
and as a sender in activity allocation.
Determining the method of activity planning
and allocation.
A secondary cost element under which the
activity type business process is allocated.
Indicator showing how the system calculates
the price of a business process or activity type.
Data Value
## Labor Hours
Hour
All Cost Center Cate
Manual entry, manual
allocation
Your Labor Allocation
Plan price, automatically
based on activity
Make sure to use Hour(H) and not Hours(HR) for the Activity Unit.
Click on
© SAP AG
(SAVE). You will receive a message that says “Activity type has been created”.
Page 22
Phase IV – Production
CASE STUDY
IV.3.2: Change Activity Output/Prices
Description: This is the second of three steps in which you will define the labor needed to
manufacture products.
You will specify how the LABOR activity is distributed between – and among – Cost Centers.
In Phase I, you created an Operations Cost Center Group composed of several Cost Centers. For each
of these Cost Centers, you will define the price of LABOR which will be used for product cost
calculations.
Navigation: SAP menu ► Accounting ► Controlling ► Cost Center Accounting ► Planning ► Activity
Output/Prices ► Change
Tasks and Data Entry:
In the “Change Activity Type/Price Planning: Initial Screen” screen, enter the following information:
Attribute
Version
From Period
To Period
Fiscal year
Cost Center group
Activity Type
Click on
Description
A collection of year-dependent indicators for planning data.
A planning period is the smallest closed unit of a fiscal year
in which plan data can be entered and stored in the system.
A planning period is the smallest closed unit of a fiscal year
in which plan data can be entered and stored in the system.
Period when a company creates inventory.
Organizational unit for grouping together cost centers.
A description of the activity produced by a cost center.
Data Value
Plan/Act – Version
1
12
Current Year
Your Operations
LABOR
(OVERVIEW SCREEN).
In the “Change Activity Type/Price Planning: Overview Screen” screen, enter the following information:
Activity
LABOR
Click on
Plan Activity
100000
Distribution key
Distribution key
Distribution as before Distribution as before
Variable price
10
(NEXT COMBINATION).
Repeat this for the rest of the cost centers within the group.
Click on
(SAVE). You will receive a message that says “Changed data has been posted”.
In the “Change Activity Type/Price Planning: Initial Screen” screen, enter the following information:
Attribute
Fiscal year
Click on
© SAP AG
Description
Period for which a company creates its inventory and balance sheet.
Data Value
Year After Current
(OVERVIEW SCREEN).
Page 23
Phase IV – Production
CASE STUDY
In the “Change Activity Type/Price Planning: Overview Screen” screen, enter the following information:
Activity
LABOR
Click on
Plan Activity
100000
Distribution key
Distribution key
Distribution as before Distribution as before
Variable price
10
(NEXT COMBINATION).
Repeat this for the rest of the cost centers within the group.
Click on
© SAP AG
(SAVE). You will receive a message that says “Changed data has been posted”.
Page 24
Phase IV – Production
CASE STUDY
IV.3.3: Determine Person Responsible
Description: You will create a person (## Steve Barton) responsible for maintaining Work Center
master data. Note that this person is not responsible for Work Center planning, but rather for
maintaining Work Center parameters.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Production ► Basic Data ► Work Center ►
General Data ► Determine person responsible
Tasks and Data Entry:
You are in the “Change View “Person Responsible for Work Center”: Overview” screen.
Click on
(NEW ENTRIES).
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Plnt
Your Plant Dallas
Click on
© SAP AG
Pers. Respons.
0##
Person responsible for work center
## Steve Barton
(SAVE). You will receive a message that says “Data was saved”.
Page 25
Phase IV – Production
CASE STUDY
IV.3.4: Create Capacity
Description: In order to plan production, GBI must understand the manufacturing capacity at each
Plant and Work Center.
GBI has two types of capacity: person hours and machine hours. GBI’s Dallas plant has three people
and three machines, both available during day shift only.
Navigation: SAP menu ► Logistics ► Production ► Master Data ► Work Centers ► Capacity ►
Create
Tasks and Data Entry:
In the “Create Capacity: Initial Screen” screen, enter the following information:
Attribute
Plant
Capacity
Capacity category
Click on
Description
Key uniquely identifying a plant.
Description by which the capacity is created.
Key which describes capacity in more detail.
Data Value
Your Plant Dallas
SHIFT
Person
(ENTER).
In the “Create Capacity: Header” screen, enter the following information:
Attribute
Capacity short text
Capacity planner grp
Base unit of meas.
Start
Finish
Length of breaks
Capacity utilization
No. of indiv. cap.
Relevant to finite
scheduling
Click on
Description
Describes the capacity in more detail.
Key referring to the capacity planner group.
Unit in which capacity is maintained.
Start of the shift.
End of the shift.
Total break time per shift.
The relationship between a machine’s actual
capacity and its theoretical capacity.
Number of elements which make up a group.
Specifies that the system should take the
available capacity and the load of this
capacity into account during finite scheduling.
Data Value
## Standard Day Shift
Planner group A
Hour
08:00:00
17:00:00
01:00:00
100
3
Selected
(SAVE).
You will receive a message that says “Capacity SHIFT plant DL## category 002 created”.
In the “Create Capacity: Initial Screen” screen, enter the following information:
Attribute
Capacity category
© SAP AG
Description
The capacity category enables you to determine
whether it is machine or labor capacity.
Data Value
Machine
Page 26
Phase IV – Production
Click on
CASE STUDY
(ENTER).
In the “Create Capacity: Header” screen, enter the following information:
Attribute
Capacity short text
Capacity planner grp
Base unit of meas.
Start
Finish
Length of breaks
Capacity utilization
No. of indiv. cap.
Relevant to finite scheduling
Click on
Description
Describes the capacity in more detail.
Key referring to the capacity planner group.
Unit in which capacity is maintained.
Start of the shift.
End of the shift.
Total break time per shift.
The relationship between a machine’s actual
capacity and its theoretical capacity.
Number of elements which make up a group.
Specifies that the system should take the
available capacity and the load of this
capacity into account during finite scheduling.
Data Value
## Standard Day Shift
Planner group A
Hour
08:00:00
17:00:00
01:00:00
100
3
Selected
(SAVE).
You will receive a message that says “Capacity SHIFT plant DL## category 001 created”.
© SAP AG
Page 27
Phase IV – Production
CASE STUDY
IV.3.5: Create Work Centers
Description: You will create Work Centers at your Dallas plant and associate each Work Center with
a Work Center Location, Cost Center, and Person Responsible.
Work Centers are locations at which value-added work associated with the manufacturing process is
carried out. GBI has identified five work centers at the Dallas plant. Each Work Center is associated
with Activity Types and Capacity Categories in order to carry out production and capacity planning.
Navigation: SAP menu ► Logistics ► Production ► Master Data ► Work Centers ► Work Center ►
Create
Tasks and Data Entry:
In the “Create Work Center: Initial Screen” screen, enter the following information:
Attribute
Plant
Work center
Work center cat.
Click on
Description
Key uniquely identifying a plant.
Key identifying the work center.
Key which distinguishes the work centers.
Data Value
Your Plant Dallas
ASSY10##
Labor
(ENTER).
In the “Create Work Center: Basic Data” screen, enter the following information:
Attribute
Description
Person responsible
Location
Usage
Standard value key
Click on
Description
Description
The person or group who is
responsible for the work center.
Physical location of the work center.
Controls which type of task list used.
Dimension to one of up to six values.
Data Value
## DL Assembly
Your Person Responsible
DALLAS TX
Only routings
Normal production
(ENTER).
Enter the following information at the bottom of the screen:
Key Word
Setup
Labor
Rule for Mant.
should be entered
should be entered
Click on the “Default Values” tab.
In the “Create Work Center: Default Values” screen, enter the following information:
Attribute
Control key
© SAP AG
Description
Determines which business transactions should be
executed for the object that belongs to the order.
Data Value
Routing/Ref. op. set – internal proc.
Page 28
Phase IV – Production
CASE STUDY
Enter the following information at the bottom of the screen:
Parameter
Setup
Labor
Standard Value Unit
Minute
Minute
Click on the “Scheduling” tab.
In the “Create Work Center: Scheduling” screen, enter the following information:
Attribute
Capacity category
Capacity
Setup formula
Processing formula
Description
Enables the determination of whether it is machine or labor.
Capacity name
Formula used in scheduling to calculate the setup time.
Formula used in scheduling to determine the processing time.
Data Value
Person
SHIFT
Prod.: Setup time
Prod.: Labor time
Click on the “Costing” tab.
In the “Create Work Center: Cost Center Assignment” screen, enter the following information:
Attribute
Cost Center
Description
Key uniquely identifying a cost center.
Data Value
Your Production Costs
Enter the following information at the bottom of the screen:
Alt activity descr.
Setup
Labor
Click on
Activity Type
LABOR
LABOR
Formula key
Prod.: Setup time
Prod.: Labor time
(SAVE).
You will receive a message that says “Work center ASSY10## in plant DL## was created”.
You have just created your Assembly work center in the steps above. Appendix F contains data about all
of the Work Centers in GBI. Use the data in appendix F to create the following Work Centers:
INSP10##, MANT10##, PACK10##, and SERV10##. Create each of the work centers using the steps
above.
© SAP AG
Page 29
Phase IV – Production
CASE STUDY
IV.3.6: Create Raw Materials
Description: This is the first of three steps in which you create materials for testing the Production
process.
You will create Raw Material by copying from the material master in Company Code US00.
Raw Materials (Material Type = ROH) are materials purchased from an external source and used in
the production process. The material master for Raw Materials therefore contains both purchasing
data and MRP data.
You will begin by copying Socket Head Bolt 5x20mm (BOLT1000) from Company Code US00. You
will renumber the original bolts and change the description. You will associate your Raw Materials
with your Purchasing Group (N##) created in Phase II and your MRP Controller (0##) created earlier
in this Phase.
Navigation: SAP menu ► Logistics ► Materials Management ► Material Master ► Material ►
Create (Special) ► Raw Material
Tasks and Data Entry:
In the “Create Raw Material (Initial Screen)” screen, enter the following information:
Attribute
Material
Industry sector
Copy from…Material
Click on
Description
Key uniquely identifying the material.
Industry to which the material is assigned.
Material you want the system to copy.
Data Value
BOLT10##
Mechanical engineering
BOLT1000
(ENTER).
In the “Select View(s)” pop-up, highlight the “Basic Data 1” row.
Highlight the “Purchasing” row.
Highlight the “MRP1” row.
Highlight the “MRP2” row.
Highlight the “General Plant Data / Storage 1” row.
Highlight the “Accounting 1” row.
Highlight the “Costing 1” row.
Click on
Click on
(SAVE AS DEFAULT VALUES).
(CONTUNUE (ENTER)).
In the “Organizational Levels” pop-up, enter the following information:
Attribute
© SAP AG
Description
Data Value
Page 30
Phase IV – Production
Plant
Stor. Location
Copy from Plant
Copy from Stor. Location
Click on
Click on
CASE STUDY
Key uniquely identifying a plant.
The storage location at which the material is stored.
Plant of the reference material.
Storage location of the reference material.
Your Plant Dallas
Your Raw Materials
DL00
RM00
(SAVE AS DEFAULT VALUES).
(CONTINUE (ENTER)).
You will receive a message that says “The material already exists and will be extended”.
In the “Create Raw Material BOLT10##” screen, enter the following information:
Attribute
Material Description (Short Text)
Purchasing Group
Click on
Description
Material Description
A buyer or a group of buyers.
Data Value
## Socket Head Bolt 5x20mm
Your Purchasing Group
(ENTER).
Enter the following information:
Attribute
MRP Controller
Description
Specifies the number of the MRP Controller or group
of MRP controllers responsible for material planning.
Click on
(ENTER) until you reach the last tab.
Click on
(ENTER).
In the “Last data screen reached” pop-up, click on the
Data Value
Your DL Controller
icon.
You will receive a message that says “Material BOLT10## created”.
You have just created your Socket Head Bolt in the steps above. Appendix G contains data about all of
the Raw Materials in GBI. Use the data in appendix G to create the following Raw Materials:
BOLT10##, BRKT10##, CHAN10##, DGAM10##, HXNT10##, LWSH10##, PCKG10##, PEDL10##,
TRFR30##, TRHB10##, TRSK10##, TRTB10##, TRTR10##, TRWH10##, WDOC10##. Create each of
the materials with the same views you used above.
© SAP AG
Page 31
Phase IV – Production
CASE STUDY
IV.3.7: Create Semi-Finished Good
Description: This is the second of three steps in which you create materials for testing the Production
process.
You will create a Semi-Finished Good by copying from the material master in Company Code US00.
Semi-Finished Goods (Material Type = HALB) are produced in-house from other materials (raw
materials and/or semi-finished goods) and are used in the production of Finished Goods. The material
master for Semi-Finished Goods therefore contains both production data and MRP data.
You will copy the Touring Aluminum Wheel Assembly (TRWA1000) from Company Code US00,
renumber the original assembly, and change the description. You will associate your Semi-Finished
Good with your MRP Controller (0##) and Production Scheduler (0##) created earlier in this Phase.
Navigation: SAP menu ► Logistics ► Materials Management ► Material Master ► Material ►
Create (Special) ► Semifinished Product
Tasks and Data Entry:
In the “Create Semifinished Product (Initial Screen)” screen, enter the following information:
Attribute
Material
Copy from…Material
Click on
Description
Key identifying the material.
Material you want to copy from.
Data Value
TRWA10##
TRWA1000
(ENTER).
In the “Select View(s)” pop-up, highlight the “Basic Data 1” row.
Highlight the “MRP1” row.
Highlight the “MRP2” row.
Highlight the “Work Scheduling” row.
Highlight the “General Plant Data / Storage 1” row.
Highlight the “Accounting 1” row.
Highlight the “Costing 1” row.
Click on
Click on
(SAVE AS DEFAULT VALUES).
(CONTUNUE (ENTER)).
In the “Organizational Levels” pop-up, enter the following information:
Attribute
Stor. Location
Copy from Stor. Location
© SAP AG
Description
Location at which the material is stored.
Storage location of the reference material.
Data Value
Your Semi-Finished Goods
SF00
Page 32
Phase IV – Production
Click on
Click on
CASE STUDY
(SAVE AS DEFAULT VALUES).
(CONTINUE (ENTER)).
You will receive a message that says “The material already exists and will be extended”.
In the “Create Semifinished Product TRWA10##” screen, enter the following information:
Attribute
Material Description (Short Text)
MRP Controller
Click on
Description
Material Description
Controller responsible
for material planning.
Data Value
## Touring Aluminum Wheel Assembly
Your DL Controller
(ENTER).
Enter the following information:
Attribute
In-house production
Click on
Description
The time in workdays needed to produce the material in-house.
Data Value
1
(ENTER).
Enter the following information:
Attribute
Prodn Supervisor
Description
Responsible for materials in production.
Click on
(ENTER) until you reach the last tab.
Click on
(ENTER).
Data Value
Your DL Production Scheduler
In the “Last data screen reached” pop-up, click on the
icon.
You will receive a message that says “Material TRWA10## created”.
© SAP AG
Page 33
Phase IV – Production
CASE STUDY
IV.3.8: Create Finished Good
Description: This is the third of three steps in which you create materials for testing the Production
process.
You will create a Finished Good by copying from the material master in Company Code US00.
Finished Goods (Material Type = FERT) are produced in-house from other materials (raw materials
and/or semi-finished goods) and are sold to a Customer. The material master for Finished Goods
therefore contains production data, MRP data, and sales data.
You will copy the Deluxe Touring Bike (red) (DXTR3000) from Company Code US00, renumber the
original assembly, and change the description. You will associate your new Finished Good with your
MRP Controller (0##) and Production Scheduler (0##) created earlier in this Phase.
Navigation: SAP menu ► Logistics ► Materials Management ► Material Master ► Material ►
Create (Special) ► Finished Product
Tasks and Data Entry:
In the “Create Finished Product (Initial Screen)” screen, enter the following information:
Attribute
Material
Copy from…Material
Click on
Description
Key identifying the material.
Material you want to copy from.
Data Value
DXTR30##
DXTR3000
(ENTER).
In the “Select View(s)” pop-up, highlight the “Basic Data 1” row.
Highlight the “MRP1” row.
Highlight the “MRP2” row.
Highlight the “Work Scheduling” row.
Highlight the “General Plant Data / Storage 1” row.
Highlight the “Accounting 1” row.
Highlight the “Costing 1” row.
Click on
Click on
© SAP AG
(SAVE AS DEFAULT VALUES).
(CONTINUE (ENTER)).
Page 34
Phase IV – Production
CASE STUDY
In the “Organizational Levels” pop-up, enter the following information:
Attribute
Stor. Location
Copy from Stor. Location
Click on
Click on
Description
Location at which the material is stored.
Storage location of the reference material.
Data Value
Your Finished Goods
FG00
(SAVE AS DEFAULT VALUES).
(CONTINUE (ENTER)).
You will receive a message that says “The material already exists and will be extended”.
In the “Create Finished Product DXTR30##” screen, enter the following information:
Attribute
Material Description (Short Text)
MRP Controller
Click on
Description
Material Description
MRP Controller responsible for
material planning for the material.
Data Value
## Deluxe Touring Bike (red)
Your DL Controller
(ENTER).
Enter the following information:
Attribute
In-house production
Click on
Description
The time in workdays needed to produce the material in-house.
Data Value
1
(ENTER).
Enter the following information:
Attribute
Prodn Supervisor
Description
Responsible for materials in production.
Click on
(ENTER) until you reach the last tab.
Click on
(ENTER).
Data Value
Your DL Production Scheduler
In the “Last data screen reached” pop-up, click on the
icon.
You will receive a message that says “Material DXTR30## created”.
© SAP AG
Page 35
Phase IV – Production
CASE STUDY
IV.3.9: Create Bills of Materials
Description: You will create Bills of Material (BOM) for use at Dallas by copying from Company
Code US00.
A BOM is a structured list of all the components and their quantities that make up a manufactured
good. You will create BOMs for both your Semi-Finished Good and your Finished Good. Note that
the Bill of Material is developed for an individual plant, so GBI can use different Bills of Materials for
the same manufactured good as local plant needs dictate.
You will copy the BOM from the Dallas Plant (DL00) in Company Code US00; and change each
component from the original material (example, BOLT1000) to your material (example, BOLT10##).
Navigation: SAP menu ► Logistics ► Production ► Master Data ► Bills of Material ► Bill of
Material ► Material BOM ► Create
Tasks and Data Entry:
In the “Create material BOM: Initial Screen” screen, enter the following information:
Attribute
Material
Plant
BOM Usage
Click on
Description
Key uniquely identifying the material.
Key uniquely identifying a plant.
Defines the area where a BOM can be used.
Data Value
Your Touring Aluminum Wheel Assembly
Your Plant Dallas
Production
(COPY FROM…).
In the “Copy From…” pop-up, enter the following information:
Attribute
Material
Plant
Click on
Description
Key uniquely identifying the material.
Key uniquely identifying a plant.
Data Value
Original Touring Aluminum Wheel Assembly
Original Plant Dallas
(CONTINUE (ENTER)).
In the “Create material BOM: Copy From” screen, click on the
Click on
icon.
(COPY).
You will receive an error that says “Material TRTR1000 not maintained in plant DL##”.
In the “Create material BOM: Item: General data” screen, enter the following information:
Attribute
Component
Click on
© SAP AG
Description
Material number of the components that you enter.
Data Value
Your Touring Tire
(ENTER).
Page 36
Phase IV – Production
CASE STUDY
You will receive an error that says “Material TRTB1000 not maintained in plant DL##”.
Repeat this to add the rest of your raw materials to your touring wheel assembly bill of materials.
You are now in the “Create material BOM: General Item Overview” screen.
Click on
(SAVE). You will receive a message that says “Creating BOM for material TRWA10##”.
In the “Create material BOM: Initial Screen” screen, enter the following information:
Attribute
Material
Click on
Description
Alphanumeric key uniquely identifying the material.
Data Value
Your Deluxe Touring Bike (red)
(COPY FROM…).
In the “Copy From…” pop-up, enter the following information:
Attribute
Material
Description
Alphanumeric key uniquely identifying the
material.
Key uniquely identifying a plant.
Plant
Click on
Data Value
Original Deluxe Touring Bike (red)
Original Plant Dallas
(CONTINUE (ENTER)).
In the “Create material BOM: Copy From” screen, click on the
Click on
icon.
(COPY).
You will receive an error that says “Material TRWA1000 not maintained in plant DL##”.
In the “Create material BOM: Item: General data” screen, enter the following information:
Attribute
Component
Click on
Description
Number of the components that you enter.
Data Value
Your Touring Aluminum Wheel Assembly
(ENTER).
You will receive an error that says “Material TRFR3000 not maintained in plant DL##”.
Repeat this to add all of your raw materials to your deluxe touring bike (red) bill of materials.
You are in the “Create material BOM: General Item Overview” screen.
Click on
© SAP AG
(SAVE). You will receive a message that says “Creating BOM for material DXTR30##”.
Page 37
Phase IV – Production
CASE STUDY
IV.3.10: Create Product Routings
Description: This is the third of three steps in which you will define the labor needed to manufacture
products.
You will create Product Routings for use at Dallas by copying from Company Code US00.
A Product Routing describes the sequence of operations required to produce a manufactured good.
Examples of operations include assembly, inspection, and packing. Each operation is associated with
a Work Center.
Note that:
 the Routing is developed for an individual plant, so GBI can use different Routings for the
same manufactured good as local plant needs dictate.
 each operation includes setup time, machine time, and labor time. This data allows GBI to do
capacity planning and product costing.
You will copy the Routing from the Dallas Plant (DL00) in Company Code US00; and change each
Work Center from the original Work Center (example, ASSY1000) to your Work Center (example,
ASSY10##).
Navigation: SAP menu ► Logistics ► Production ► Master Data ► Routings ► Routings ► Standard
Routings ► Create
Tasks and Data Entry:
In the “Create Routing: Initial Screen” screen, enter the following information:
Attribute
Material
Plant
Click on
Description
Key uniquely identifying the material.
Key uniquely identifying a plant.
Data Value
Your Touring Aluminum Wheel Assembly
Your Plant Dallas
(COPY FROM…).
In the “Select Type” pop-up, click on the
icon.
You are in the “Create Using Copy Function: Select Object to be Copied” pop-up.
Enter the following information:
Attribute
Material
Plant
Click on
Description
Key uniquely identifying the material.
Key uniquely identifying a plant.
Data Value
Original Touring Aluminum Wheel Assembly
Original Plant Dallas
(CONTINUE (ENTER)).
In the “Create Routing: Header Data Check” screen, enter the following information:
Attribute
© SAP AG
Description
Data Value
Page 38
Phase IV – Production
Status
Click on
CASE STUDY
You use the status key to indicate the processing status of a task list.
Released (general)
(ENTER).
You will receive an error that says “Work center ASSY1000 does not exist in plant DL##”.
In the “Create Routing: Operation – Check” screen, enter the following information:
Attribute
Work center
Click on
Description
Key identifying the work center.
(ENTER).
In the “Information” pop-up, click on the
Click on
Data Value
ASSY10##
icon.
(CONTINUE (ENTER)).
You will receive a message that says “Enter standard value Setup”.
In the “Create Routing: Operation – Check” screen, click on the
icon.
You will receive a message that says “Enter standard value Setup”.
Click on
(ENTER).
Repeat this to add the rest of your work centers to your touring wheel assembly product routing.
In the “Create Routing: Operation Overview” screen, click on the
icon.
You will receive a message that says “Routing was saved with group and material TRWA10##”.
In the “Create Routing: Initial Screen” screen, enter the following information:
Attribute
Material
Plant

Description
Alphanumeric key uniquely identifying the material.
Key uniquely identifying a plant.
Data Value
Your Deluxe Touring Bike (red)
Your Plant Dallas
Make sure to clear the “group” field in the “Create Routing: Initial Screen” before creating the
DXTR30## routing.
Click on
(COPY FROM…).
In the “Select Type” pop-up, click on the
icon.
You are in the “Create Using Copy Function1: Select Object to be Copied” pop-up.
© SAP AG
Page 39
Phase IV – Production
CASE STUDY
Enter the following information:
Attribute
Material
Description
Alphanumeric key uniquely identifying the
material.
Key uniquely identifying a plant.
Plant
Click on
Data Value
Original Deluxe Touring Bike (red)
Original Plant Dallas
(CONTINUE (ENTER)).
In the “Create Routing: Header Data Check” screen, enter the following information:
Attribute
Status
Click on
Description
You use the status key to indicate the processing status of a task list.
Data Value
Released (general)
(ENTER).
You will receive an error that says “Work center ASSY10## does not exist in plant DL##”.
In the “Create Routing: Operation – Check” screen, enter the following information:
Attribute
Work center
Click on
Description
Key identifying the work center.
(ENTER).
In the “Information” pop-up, click on the
Click on
Data Value
ASSY10##
icon.
(CONTINUE (ENTER)).
You will receive a message that says “Enter standard value Setup”.
In the “Create Routing: Operation – Check” screen, click on the
icon.
You will receive a message that says “Enter standard value Setup”.
Click on
(ENTER).
Repeat these steps to add the rest of your work centers to your deluxe touring bike (red) product routing.
In the “Create Routing: Operation Overview” screen, click on the
icon.
You will receive a message that says “Routing was saved with group and material DXTR30##”.
© SAP AG
Page 40
Phase IV – Production
CASE STUDY
Part IV.4 – Process Execution
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
IV.4.1: Create Initial Inventory Balances....................................................................................42
IV.4.2: Create Planned Order for Semifinished..........................................................................44
IV.4.3: Convert Planned Order for Semifinished ........................................................................45
IV.4.4: Issue Materials to Production Order I .............................................................................46
IV.4.5: Confirm Production for Semifinished ..............................................................................47
IV.4.6: Receive Semifinished Into Inventory ..............................................................................48
IV.4.7: Create Planned Order for Finished Goods .....................................................................49
IV.4.8: Convert Planned Order for Finished...............................................................................50
IV.4.9: Issue Materials to Production Order II ............................................................................51
IV.4.10: Confirm Production for Finished Goods .......................................................................52
IV.4.11: Receive Finished Goods into Inventory ........................................................................53
© SAP AG
Page 41
Phase IV – Production
CASE STUDY
IV.4.1: Create Initial Inventory Balances
Description: Testing of the production process is organized into three parts:
 Create raw material inventory balance (IV.4.1)
 Produce semi-finished good (Touring Aluminum Wheel Assembly) (IV.4.2 – 6)
 Product finished good (Deluxe Touring Bike (red) (IV.4.7 – 11)
In this step, you create the raw material inventory balance required to produce 10 bikes. Normally, the
material planning process would create purchase requisitions for the necessary raw materials. You
would then execute the procurement process and receive these materials into inventory.
However, for the purpose of this exercise, we will take a shortcut and create “inventory from heaven”
using a special movement type (561). Recall that earlier in this Phase, you create the General Ledger
accounts required for this special movement type.
Navigation: SAP menu ► Logistics ► Materials Management ► Inventory Management ► Goods
Movement ► Goods Receipt ► Other
Tasks and Data Entry:
In the “Enter Other Goods Receipts: Initial Screen” screen, enter the following information:
Attribute
Movement Type
Storage Location
Click on
Description
Goods Movement Type
Location at which the
material is stored.
Data Value
Receipt per initial entry of stock balances into unr.-use
Your Raw Materials
(ENTER).
In the “Enter Other Goods Receipts: New Items” screen, enter the following information:
Material
BOLT10##
BRKT10##
CHAN10##
DGAM10##
HXNT10##
LWSH10##
PCKG10##
PEDL10##
TRFR30##
TRHB10##
TRSK10##
TRTB10##
TRTR10##
TRWH10##
WDOC10##
© SAP AG
Quantity
20
10
10
10
20
40
10
10
10
10
10
20
20
20
10
UnE
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
Plant
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Your Plant Dallas
Page 42
Phase IV – Production

CASE STUDY
You may need to press the
(NEW ITEMS) button in order to get to another screen where you can
enter the rest of the materials.
Click on
© SAP AG
(SAVE). You will receive a message that says “Document posted”.
Page 43
Phase IV – Production
CASE STUDY
IV.4.2: Create Planned Order for Semi-finished
Description: This is the first of five steps to test production of your Semi-Finished Good (Touring
Aluminum Wheel Assembly).
You will manually create a planned production order for your wheel assembly. Normally, the material
planning process (MRP) would evaluate the demand for bikes, and create planned production orders
for the correct quantity of wheel assemblies. However, for the purpose of this exercise, you have
manually determined that you need 10 bikes (DXTR30##). To manufacture the bikes, you need 20
wheel assemblies (TRWA10##).
The planned production order for 20 Wheel Assemblies is sent to the Dallas production schedulers
specifying when the wheel assemblies must be available in inventory.
Navigation: SAP menu ► Logistics ► Production ► MRP ► Planned Order ► Create
Tasks and Data Entry:
In the “Create Planned Order: Initial Screen” screen, enter the following information:
Attribute
Planned order profile
Click on
Description
Profile that determines the order type, the procurement
type, the special procurement type, and the account
assignment type for processing the planned order.
Data Value
Stock Order
(ENTER).
In the “Create Planned Order: Stock order” screen, enter the following information:
Attribute
Material
Order quantity
Description
Number of the material for the order.
Quantity to be produced or ordered
according to the planned order.
Ord.finish
Date that you should expect either the
completion or the delivery of the order.
Producing plant Plant in which the order quantity of the
internally produced material is to be
produced according to the planned order.
Stor. Location
Location at which the material is stored.
Click on
© SAP AG
Data Value
Your Touring Aluminum Wheel Assembly
20
One Week from Today
Your Plant Dallas
Your Semi-Finished Goods
(SAVE). You will receive a message that says “Planned order will be created”.
Page 44
Phase IV – Production
CASE STUDY
IV.4.3: Convert Planned Order for Semi-finished
Description: This is the second of five steps to test production of your Semi-Finished Good (Touring
Aluminum Wheel Assembly).
You will manually convert your planned production order (PldOrd) into a production order (PrdOrd).
This authorizes that production may begin.
Note that after conversion, the production scheduler is able to change components, quantities, or
dates.
Navigation: SAP menu ► Logistics ► Production ► MRP ► Evaluations ► Stock/Requirements List
Tasks and Data Entry:

Be sure that the system defaults your wheel assembly into the material field.
In the “Stock/Requirements List: Initial Screen” screen, click on the
icon.
In the “Stock/Requirements List” screen, double-click on PldOrd.
In the “Additional Data for MRP Element” pop-up, click on the
icon.
You will receive a message that says “Release carried out”.
In the “Production order Create: Header” screen, click on the
icon.
You will receive a message that says “Order number saved”.
© SAP AG
Page 45
Phase IV – Production
CASE STUDY
IV.4.4: Issue Materials to Production Order I
Description: This is the third of five steps to test production of your Semi-Finished Good (Touring
Aluminum Wheel Assembly).
You will manually release (issue) the raw materials needed to produce the 20 wheel assemblies. This
goods issue transaction posts the raw material costs to the production order, and decreases inventory
from the Raw Materials storage location.
Navigation: SAP menu ► Logistics ► Production ► Shop Floor Control ► Goods Movements ►
Goods Issue
Tasks and Data Entry:
In the “Enter Goods Issue: Initial Screen” screen, enter the following information:
Attribute
Movement Type
Storage Location
Click on
Description
Number the system uses to determine the
rules for updating quantities and values
in the relevant general ledger accounts.
Location at which the material is stored.
Data Value
Consumption for order from
warehouse
Raw Materials
(TO ORDER…).
In the “Reference: Order” pop-up, enter the following information:
Attribute Description
Order
Number of production order to which you issue the materials.
Click on
Data Value
Production Order Number
(CONTINUE (ENTER)).
In the “Enter Goods Issue: Selection Screen” screen, click on the
icon.
You will receive a message that says “Document posted”.
© SAP AG
Page 46
Phase IV – Production
CASE STUDY
IV.4.5: Confirm Production for Semi-finished
Description: This is the fourth of five steps to test production of your Semi-Finished Good (Touring
Aluminum Wheel Assembly).
In the previous step, you released raw material to the production order. You will now confirm the
completion of the wheel assemblies. Your Dallas plant completed all 20 wheel assemblies, so you
verify a yield of 20.
Navigation: SAP menu ► Logistics ► Production ► Shop Floor Control ► Confirmation ► Enter ►
For Order
Tasks and Data Entry:
In the “Enter Production Order Confirmation: Initial Screen” screen, enter the following information:
Attribute
Order
Click on
Description
Number which identifies an order number.
Data Value
Production Order Number
(ENTER).
In the “Confirmation of Production Order Enter: Actual Data” screen, enter the following information:
Attribute
Yield to conf.
Click on
© SAP AG
Description
Yield that you want to confirm for the operation.
Data Value
20
(SAVE). You will receive a message that says “Confirmation of order saved”.
Page 47
Phase IV – Production
CASE STUDY
IV.4.6: Receive Semi-finished Into Inventory
Description: This is the last of five steps to test production of your Semi-Finished Good (Touring
Aluminum Wheel Assembly).
In the previous step, you confirmed the yield of the production process. You will now receive the 20
wheel assemblies into inventory. This goods receipt transaction increases inventory in the SemiFinished Goods storage location.
Navigation: SAP menu ► Logistics ► Production ► Shop Floor Control ► Goods Movements ►
Goods Receipt
Tasks and Data Entry:
In the “Goods Receipt for Order: Initial Screen” screen, enter the following information:
Attribute
Movement Type
Order
Storage Location
Click on
Description
Goods Movement Type
Identifies an order within a client.
Location at which the material is stored.
Data Value
Good receipt for order into warehouse
Production Order Number
Your Semi-Finished Goods
(ADOPT + DETAILS).
In the “Goods Receipt for Order: New Items 0001” screen, enter the following information:
Attribute
Deliv. Compl.
Click on
© SAP AG
Description
Indicates that the item is to be regarded as closed.
Data Value
Selected
(SAVE). You will receive a message that says “Document posted”.
Page 48
Phase IV – Production
CASE STUDY
IV.4.7: Create Planned Order for Finished Goods
Description: This is the first of five steps to test production of your Finished Good (Deluxe Touring
Bike (red)).
You will manually create a planned production order for your touring bikes. Normally, the material
planning process (MRP) would evaluate the demand for bikes, and create planned production orders
for the correct quantity of red touring bikes. However, for the purpose of this exercise, you have
manually determined that you need 10 bikes (DXTR30##).
The planned production order for 10 bikes is sent to the Dallas production schedulers specifying when
the bikes must be available in inventory.
Navigation: SAP menu ► Logistics ► Production ► MRP ► Planned Order ► Create
Tasks and Data Entry:
In the “Create Planned Order: Initial Screen” screen, click on the
icon.
In the “Create Planned Order: Stock order” screen, enter the following information:
Attribute
Material
Order quantity
Ord.finish
Producing plant
Stor. Location
Click on
© SAP AG
Description
Number of the material.
Quantity to be produced or ordered
according to the planned order.
Date, according to the planned order, that
you should expect either the completion or
the delivery of the planned order quantity.
Plant in which the order quantity of the
internally produced material is to be
produced according to the planned order.
Location at which the material is stored.
Data Value
Your Deluxe Touring Bike (red)
10
One Week from Today
Your Plant Dallas
Your Finished Goods
(SAVE). You will receive a message that says “Planned order will be created”.
Page 49
Phase IV – Production
CASE STUDY
IV.4.8: Convert Planned Order for Finished
Description: This is the second of five steps to test production of your Finished Good (Deluxe
Touring Bike (red)).
You will manually convert your planned production order into a production order. This authorizes that
production may begin.
Navigation: SAP menu ► Logistics ► Production ► MRP ► Evaluations ► Stock/Requirements List
Tasks and Data Entry:
In the “Stock/Requirements List: Initial Screen” screen, click on the
icon.
In the “Stock/Requirements List” screen, double-click on PldOrd.
In the “Additional Data for MRP Element” pop-up, click on the
icon.
You will receive a message that says “Release carried out”.
In the “Production order Create: Header” screen, click on the
icon.
You will receive a message that says “Order number saved”.
© SAP AG
Page 50
Phase IV – Production
CASE STUDY
IV.4.9: Issue Materials to Production Order II
Description: This is the third of five steps to test production of your Finished Good (Deluxe Touring
Bike (red)).
You will manually release (issue) the raw materials and semi-finished goods needed to produce the 10
bikes. This goods issue transaction posts the raw material and semi-finished goods costs to the
production order, and decreases inventory from the Raw Materials storage location and from the
Semi-Finished Goods storage location.
Navigation: SAP menu ► Logistics ► Production ► Shop Floor Control ► Goods Movements ►
Goods Issue
Tasks and Data Entry:
In the “Enter Goods Issue: Initial Screen” screen, enter the following information:
Attribute
Movement
Type
Storage
Location
Click on
Description
Number the system uses to determine the rules for updating
quantities and values in the relevant ledger accounts.
Number of the storage location at which the material is stored.
A plant may contain one or more storage locations.
Data Value
Consumption for order
from warehouse
Your Raw Materials
(TO ORDER…).
In the “Reference: Order” pop-up, enter the following information:
Attribute
Order
Description
Order Number
Click on
Data Value
Production Order Number
(ADOPT + DETAILS).
In the “Enter Goods Issue: New Item 0001” screen, enter the following information:
Material
Your Touring Aluminum Wheel Assembly
Click on
Quantity
20
SLoc
Your Semi-Finished Goods
(ADOPT).
In the “Enter Goods Issue: New Item 0002” screen, click on the
icon.
Repeat this for the remaining materials.

Keep in mind that the rest of the materials are all raw materials.
In the “Enter Goods Issue: Overview” screen, click on the
icon.
You will receive a message that says “Document posted”.
© SAP AG
Page 51
Phase IV – Production
CASE STUDY
IV.4.10: Confirm Production for Finished Goods
Description: This is the fourth of five steps to test production of your Finished Good (Deluxe
Touring Bike (red)).
In the previous step, you released raw materials and semi-finished goods to the production order. You
will now confirm completion of the bikes. Your Dallas plant completed all 10 bikes, so you verify a
yield of 10.
Navigation: SAP menu ► Logistics ► Production ► Shop Floor Control ► Confirmation ► Enter ►
For Order
Tasks and Data Entry:
In the “Enter Production Order Confirmation: Initial Screen” screen, enter the following information:
Attribute
Order
Click on
Description
Order of which you wish to confirm production.
Data Value
Production Order Number
(ENTER).
In the “Confirmation of Production Order Enter: Actual Data” screen, enter the following information:
Attribute
Yield to conf.
Click on
© SAP AG
Description
Yield that you want to confirm for the operation.
Data Value
10
(SAVE). You will receive a message that says “Confirmation of order saved”.
Page 52
Phase IV – Production
CASE STUDY
IV.4.11: Receive Finished Goods into Inventory
Description: This is the fifth of five steps to test production of your Finished Good (Deluxe Touring
Bike (red)).
In the previous step, you confirmed the yield of the production process. You will now receive the 10
bikes into inventory. This goods receipt transaction increases inventory in the Finished Goods storage
location.
Navigation: SAP menu ► Logistics ► Production ► Shop Floor Control ► Goods Movements ►
Goods Receipt
Tasks and Data Entry:
In the “Enter Receipt for Order: Initial Screen” screen, enter the following information:
Attribute
Movement Type
Order
Storage Location
Click on
Description
Movement
Number which identifies an
order within a client.
Number of the storage location
at which the material is stored.
Data Value
Good receipt for order into warehouse
Production Order Number
Your Finished Goods
(ADOPT + DETAILS).
In the “Goods Receipt for Order: Items 0001” screen, enter the following information:
Attribute
Deliv. Compl.
Click on
© SAP AG
Description
Indicates that the item is to be regarded as closed.
Data Value
Selected
(SAVE). You will receive a message that says “Document posted”.
Page 53