LO Sap

LO Component Short
Description
HELP.CACOMPLO
Release 4.6B

LO Component Short Description SAP AG
Logistics General
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2 December 1999
SAP AG LO Component Short Description
Logistics General
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
Tip
December 1999 3
Logistics General
Contents
LO Component Short Description .....................................................................6

Logistics General........................................................................................................................... 7
Logistics Basic Data...................................................................................................................... 8
Material Master........................................................................................................................... 9
Article Master Data ................................................................................................................... 10
Product Catalog........................................................................................................................ 11
Merchandise Category ............................................................................................................. 13
Assortment ............................................................................................................................... 15
Pricing....................................................................................................................................... 17
Promotion ................................................................................................................................. 20
Season...................................................................................................................................... 23
Documentation not Available in Release 4.6B ......................................................................... 25
Documentation not Available in Release 4.6B .................................................................... 26
Documentation not Available in Release 4.6B .................................................................... 27
Bills of Material ......................................................................................................................... 28
Sales Order BOM ................................................................................................................ 29
Serial Numbers......................................................................................................................... 30
Business Partners .................................................................................................................... 31
Batches ......................................................................................................................................... 32
Environment Management.......................................................................................................... 33
Product Safety .......................................................................................................................... 34
Substance Data................................................................................................................... 35
Substance Reports.............................................................................................................. 36
Dangerous Goods Management .............................................................................................. 37
DG Material Master ............................................................................................................. 38
DG Checks .......................................................................................................................... 39
DG Papers........................................................................................................................... 40
Forecast ........................................................................................................................................ 41
Forecast Models ....................................................................................................................... 42
Model Selection ........................................................................................................................ 43
Forecast Procedures ................................................................................................................ 44
Model Monitoring ...................................................................................................................... 45
Reference Material in Forecast ................................................................................................ 46
Variant Configuration .................................................................................................................. 47
Object Dependencies ............................................................................................................... 48
Confuguration Profile................................................................................................................ 49
Engineering Change Management............................................................................................. 50
Change Master Management................................................................................................... 51
Linked Objects.......................................................................................................................... 52
Reporting .................................................................................................................................. 53
Change Documents.................................................................................................................. 54
Logistics Information System (LIS) ........................................................................................... 55
Reporting .................................................................................................................................. 56
Planning.................................................................................................................................... 57
Data Collection ......................................................................................................................... 58
Logistics Information Library..................................................................................................... 59
4 December 1999
Logistics General
Early Warning System .............................................................................................................. 60

Retail Information System (LO-RIS)......................................................................................... 61
Supply Chain Planning Interfaces ............................................................................................. 63
Production Optimization Interface ............................................................................................ 64
Demand Planning, Distribution Resource Planning Interface .................................................. 65
Additionals ................................................................................................................................... 66
December 1999 5
Logistics General
LO Component Short Description
6 December 1999
Logistics General
Logistics General
Definition
Under Logistics General, you will find the following key Logistics functions:
Logistics Basic Data
Environment Health and Safety
Forecast
Variant Configuration
Engineering Change Management
Logistics Information System (LIS)
December 1999 7

Definition
Logistics Basic Data includes the material master and business partners.
8 December 1999
Material Master
Material Master
Purpose
The material master contains information on all the materials that a company procures or
produces, stores, and sells. It is the company's central source for retrieving material-specific
data. This information is stored in individual material master records.
Integration
The material master is used by all components in the SAP Logistics System. The integration of
all material data in a single database object eliminates redundant data storage. In the SAP
Logistics System, the data contained in the material master is required, for example, for the
following functions:
In Purchasing for ordering
In Inventory Management for goods movement postings and physical inventory
In Invoice Verification for posting invoices
In Sales and Distribution for sales order processing
In Production Planning and Control for material requirements planning, scheduling, and work
scheduling
In Customizing for the Material Master [Ext.], you can configure the material master to suit your
specific requirements. You do this in the section Configuring the Material Master [Ext.].
Additional Information
CA Data Transfer Workbench Transfer of Material Master Data (Industry) to the R/3 System
[Ext.].
December 1999 9
Article Master Data
Article Master Data

Purpose
The article master contains information on all the articles that a company procures or produces,
stores, and sells. It is the company's central source for retrieving article-specific data. This
information is stored in individual article master records.
Features
In Customizing for the Article Master [Ext.], you can configure the article master to suit your
specific requirements. You do this in the section Configuring the Article Master [Ext.].
Constraints
You can use the article master only if you use SAP Retail [Ext.].
Additional Information
Articles: Transfer and Distribution of Master Data [Ext.]
Assortments [Page 15]
10 December 1999
Product Catalog
Product Catalog
Purpose
The Product Catalog function allows you to store, retrieve, and manage data to be used in
advertising materials such as catalogs, promotional flyers, CD-ROM disks, on-line services
(WWW, Compuserve, etc.), and multimedia kiosks at the point-of-sale.
Data that can be managed includes:
From the SAP Retail database: article master data, prices, assortments
Structure information (which includes rough placement of articles within the catalog)
From the SAP Document Management System: multimedia objects (images, sound,
video, animation, etc.)
Text, which can be created and edited via SAPscript
R/3
Product catalog functionality
Article master Text
data
Images/multimedia
Prices objects
Ranges Structure/page
sequence
IDoc
Product
BAPI catalog
You can then combine this data as desired using the Product Catalog component. This has
several advantages:
You can manage everything through a single system, rather than having to keep track of
some objects in R/3 and some elsewhere.
You can use the same data for several different media (print, Internet, and so on).
You can export data from R/3 for use with your own or other third-party production
software to produce a camera-ready (or multimedia) catalog.
You can easily produce a new version of the catalog whenever desired (e.g., Summer
catalog, Winter catalog, and so on).
December 1999 11
Product Catalog
You reduce the possibility of errors (for example, since pricing is automatically calculated
and the latest price is always in the database, you cant insert the wrong price).
Implementation Considerations
Use this component if you want to:
Manage data for product catalogs or other advertising materials
Manage data for online stores for the Internet
Export up-to-the-minute article and pricing data to an external production software
package
Integration
To create product catalogs or other advertising materials, you must first configure the Article
Master Data and Pricing components.
In addition, if you want to integrate images, audio, or video in your product catalog, then you
enter this data in the Document Management component. Text can be entered either in
SAPscript, or in a document produced with third-party word processing software and then
managed in the SAP Document Management System.
Features
Ability to create variants of a product catalog based on language or foreign currency (for
example, an English catalog in $US, a German catalog in DM).
Ability to create Internet online stores with integrated customer master record creation,
order entry, and choice of payment (invoice or credit card).
Ability to create a catalog in hierarchical format, where users can drill down from general
categories to more specific ones (for example, home electronics > televisions > specific
TV models). This is especially useful for on-line catalogs.
Products can appear more than once. For example, computers can be sold under both
home electronics and office equipment. You can, of course, have the same article
appear in different sections with different pictures, yet ensure that the price will be
consistent wherever the article appears.
Product catalogs can be created and maintained in a multiuser environment, meaning
that several people can work on the same piece in parallel.
Product catalog data can be exported to third-party systems, either in IDoc format from
the Product Catalog menu, or via a BAPI.
Constraints
This component does not produce a final product catalog for print purposes. Instead, it provides
the data relevant for the catalog, along with the BAPI which allows you to export data, then
import it into the production software of your choice. Product catalog data can also be exported in
IDoc format.
However, the R/3 software is itself sufficient to produce an on-line product catalog for the Internet
with no additional software.
12 December 1999
Merchandise Category
Purpose
Merchandise categories allow you to classify and to structure the entire range of goods offered
for sale by your company. Every article is assigned to a merchandise category across a whole
company.
Merchandise categories can be assigned to stores and store departments. You can also group
merchandise categories into hierarchies. A well-structured merchandise category hierarchy is an
essential tool for efficient merchandise category management (Category Management). The
main focus for the management of your merchandise then shifts from individual articles to
merchandise groupings. The aim of merchandise category management is the better
coordination of various customer considerations at each business location (for example, store),
including elements such as variety, price structures and advertising.
Store
assortments
Food Non Food
Fruit/ Household
Perishables Fashion
vegetables goods
Dairy products Fruit Mens clothing Kitchenware

Ladies
Beef Vegetables DIY
clothing
Generic article
Blouses
Variant: red Variant: green

Size 12 Size 10
Implementation considerations
Make use of merchandise categories if you wish to:
Structure your assortment and departments
Perform structured analyses in the Information System and plan target and actual values
Store common data (conditions, for example) at a higher level
December 1999 13
Integration
Merchandise category maintenance should only be used for articles maintained using the Retail
article maintenance function.
Features
Articles in a merchandise category can be listed automatically in stores to which that
merchandise category is assigned, taking the chosen listing procedure into account.
Sales at the POS need not be on an article basis: they can be processed via the
merchandise category (using a merchandise category article).
Articles belonging to different merchandise categories can be sold under the umbrella of a
common value-only article (the hierarchy article). This can be useful if, for example, a store
has cash registers with fewer merchandise category keys than there are merchandise
categories.
Depending on the merchandise category, you can define specific characteristics which have
a classifying function and/or which influence the creation of variants; these characteristics
can be useful when you are creating articles and especially useful for defining variants of
generic articles.
Below the merchandise category level, structures (characteristics profiles) are provided
which allow a technical segmentation of merchandise categories to aid new article listings
or help in creating generic articles and variants.
See also:
Classification [Ext.]
CA: Classification (CA-CL) [Ext.]
CA: CA Characteristics [Ext.]
14 December 1999
Assortment
Assortment
Purpose
This component allows you to create merchandise assortments modules and assign articles to
them. Assortment modules can then be assigned to assortments, which enables these articles to
be sold. Additional articles can be assigned automatically to assortments as a result of checking
rules during article maintenance or assortment maintenance functions.
A site cannot sell an article that is not contained in its assortment.
When you create assortment modules, you also specify a listing period. This determines the
timeframe during which sites can procure and sell the articles in this assortment.
This component is required for SAP Retail.
SAP recommends that you use the automatic listing procedures in the integrated
article maintenance function (as opposed to creating assortment modules or listing
procedures manually in the assortment function) in order to establish listing
conditions. Listing articles manually or creating assortment modules manually
requires significant processing time and can have a severe impact on system
performance.
Integration
To create assortments, you must also configure the Merchandise Category, Article Master Data,
and Site Master Data components.
In addition:
If you want to Then you must use
Create assortment modules specifically for Promotion component
promotions
Determine whether certain wholesale customers Customer Master Data component
can purchase certain articles
Features
Creation of standard assortments for different sites
Creation of assortment modules and assignment to assortments
Creation of specialized or temporary assortment modules (for example, valid for rack
jobbers or for the duration of a specific promotion)
Creation of exclusion modules (articles not allowed to be sold in certain stores) in order
to prevent inadvertent listing of articles
Ability to assign the same assortment modules to multiple assortments (copy feature)
Automatic assortment correction when changes in article master data affect assortments
December 1999 15
Assortment
Ability to either enter a generic article and thereby automatically include all variants, or
specify only some variants of an article (for example, separate sizes for misses and
womens clothing departments)
Choice of manual assignment of articles to assortments, or automatic assignment using
predefined listing procedures
Ability to search for articles that are nearing the end of their valid listing periods and
determine whether or not to extend the listing
Ability to determine whether articles delivered to a site for which they are not listed
should be automatically listed (subsequent listing), not listed and therefore returned to
the supplier, or left to the user to decide at time of goods receipt
Procedures for discontinuing articles (disabling them but keeping them in the database)
and deleting them (removing them from the database)
Ability to block purchases from a specific supplier by deleting the entire assortment for
that supplier.
Ability to associate customers with assortments when creating customer orders or
deliveries by having the system check the article listings. You can have the system
control whether the customers can receive only those articles in their assigned
assortments, or any articles in the entire assortment, or have the checking take place
through a user exit.
Constraints
This component does not:
Create merchandise categories. That is controlled by the Merchandise Category
component.
Evaluate sales performance of various assortments. To do this, you would need to create
an appropriate analysis in the Retail Information System using flexible planning.
See also:
Article Master [Page 10]
16 December 1999
Pricing
Pricing
Purpose
This component contains various functions for managing sales prices in your company's value
chain. In particular, this component allows you to maintain sales prices in the sales price
calculation function.
Integration
Required function: Required component:
Calculate sales prices for promotions Promotion
Establish seasonal markdowns and have these automatically Season component
take effect at preplanned intervals (Markdown Planning)
Automatically transfer pricing information to site POS systems POS Interface
Print sales prices and supplementary conditions on merchandise Ticketing component
tickets or shelf-edge labels
Send sales prices in an assortment list Assortment lists
Features
Sales prices can be calculated for several articles and organizational levels in a single
operation.
You can calculate prices for retail and wholesale distribution chains, sites, distribution
centers, site price lists and price lists for customers.
Purchasing and sales price determination can be structured to suit your requirements
Different purchase and sales price determination types allow you to create flexible
purchase price and sales price determination.
See also: Purchase Price Determination [Ext.] and Sales Price Determination [Ext.].
Two-step price calculation
You can use two-step price calculation to calculate both the distribution centers transfer
price for the store, and the sales prices for the stores supplied by that distribution center
at the same time. In this type of price calculation, the purchase price for the stores
supplied is calculated on the basis of the distribution centers transfer price.
See also: Two-Step Calculation for Stores [Ext.].
Calculating sales prices for site groups
You can use site groups to carry out standardized calculations for flexible groups of sites.
See also: Calculating Prices for Site Groups [Ext.].
Referencing sales prices for the variants of a generic article
December 1999 17
Pricing
In the article master, you can define whether the variants of a generic article are to inherit
the sales price of the generic article or that of another variant. You cannot calculate
separate sales prices for variants in the sales price calculation function.
See also: Price Calculations for Generic Articles and Variants [Ext.].
Creating condition records
Calculated sales prices are stored in the system as condition records when you save
them. You can create condition records as well as sales prices for various list fields in the
sales price calculation screen (pricing table).
Customizing the calculation table
You can define list variants to structure the calculation to suit your individual
requirements.
See also: List Variants [Ext.].
Interactive sales price calculation screen
See also: Pricing Table [Ext.].
Rounding sales prices to price points.
See also: Rounding To Price Points [Ext.].
Supporting planned markups/planned margins using the condition technique.
See also: Planned Markups [Ext.].
Pricing documents
You can save information on the sales price calculation in a pricing document.
See also: Pricing Documents [Ext.].
Cancelling sales price changes
You can cancel sales prices if they can contain errors.
See also: Canceling Sales Prices [Ext.]
Authorizations
To be able to create sales prices, a user must have appropriate authorization. The
system distinguishes between authorization to carry out calculations and authorization to
activate prices.
You can maintain authorizations for carrying out calculations separately for the
Distribution chain, Price list and Site pricing levels. You can also assign authorizations by
merchandise category.
Pricing worklist function
The Pricing function also guides you through the follow-on processes that result when
parameters affecting pricing are changed. A pricing worklist is generated, flagging sales
price condition records for subsequent processing.
For further information, see Pricing Worklist [Ext.].
Pricing overview screen
18 December 1999
Pricing
You can use the Pricing overview screen to display standard and promotion prices as
well as additional information (supplementary conditions and parallel prices in euros, for
example) on various articles and organizational levels at the same time.
See also: Pricing Overview Screen [Ext.]
Archiving pricing documents
You can archive pricing documents and their associated sales price conditions.
See also: Archiving Pricing Documents (LO-MD-RPC) [Ext.].
Support for conversion to the new European currency (Euro).
See also: Pricing: Currency Conversion [Ext.]
Market-basket pricing
The market-basket price calculation function allows you to calculate sales prices for a
group of articles and sites, taking into account the total profit of these articles in the sites
entered. The market-basket price calculation function is an enhancement to the sales
price calculation function.
See also: Market-Basket Pricing [Ext.].
Taking competitor prices into account in the sales price calculation function
You can enter your competitors' sales prices in the system and use these for determining
your own sales prices in the sales price calculation function.
See also: Competitor Prices [Ext.].
Constraints
Establish seasonal markdowns and have these automatically take effect at preplanned
intervals
This feature is handled through the Markdown Planning component rather than through
Pricing.
Send sales prices in an assortment list.
This can be done through the Assortment List component.
See also:
Promotion [Page 20]
POS Interface - Outbound [Ext.]
Season: Markdown Planning [Ext.]
December 1999 19
Promotion
Promotion
Purpose
This component allows you to create promotions in order to sell articles at lower-than-normal
price. Promotions can be either for merchandise purchased at a particularly good price from a
supplier or for inventory reduction.
You can create both retail promotions (for anonymous, off-the-shelf purchases) or wholesale
promotions (with special pricing for known customers in your customer master data). Promotions
are planned at the corporate level, with data being downloaded to various sites at the appropriate
time.
If you plan to have wholesale promotions involving known customers, then for each
such customer you must create the following records (if they do not already exist):
Customer master record
Site master record (maintained the same way as for retail sites)
This way, the same subsequent processing functions that are available for retail
promotions are also available for wholesale promotions.
The exact scope of a promotion and the results you expect to achieve can be carefully planned in
advance. The projected business volume - both for the promotion as a whole and for individual
articles - can be planned in terms of key figures, such as purchase price, sales price,
merchandise quantity, and logistic units (for example, pallets), and then compared with previous
promotions.
Sequence
Clearance
Specials
9.99
On promotion
4711 Meal
4712 Red wine
Assortment list
4713 Bicycle
4714 Camera
M
Prices
X Store M
In stores
Vendor New York Merchandise
Boston
Los Angeles
Miami
20 December 1999
Promotion
Use this component if you want to:
Be able to override normal prices temporarily for certain articles for a certain period of
time.
Plan and control promotions at the corporate level for various stores.
Automate various aspects of promotion processing
Monitor the success of a promotion real-time against the projected sales volume.
Better evaluate and fine-tune your promotion strategy by comparing past promotions to
each other and to projected sales volumes.
Integration
To create promotions, you must first configure the Article Master Data and Pricing components.
In addition:
If you want to Then use
Automatically allocate promotion merchandise to Allocation component
sites
Have special text and photos associated with Document Management component
promotion articles for use in advertising
Take promotions into account when replenishing Replenishment component
stock
Create wholesale promotions for known Customer Master Data component
customers
Features
Automatic download of promotion prices to POS on specified validity date and automatic
resetting of normal prices when the promotion is over.
Ability to control the degree of store participation (mandatory quantities of merchandise
per store, optional quantities, optional participation)
Assignment of special purchasing or sales agreements to promotions
Assignment of themes and advertising collateral to promotions
Ability to set different validity periods and/or delivery dates for stores taking part in the
promotion
Ability to set validity periods for purchasing, sales, and deliveries, for both retail and
wholesale customers.
Announcement of upcoming promotion (optional)
Automatic allocation of merchandise to stores (optional)
Split valuation of promotion and normal stock (optional)
Automatic update of sales volume and other promotion data (during POS inbound
processing) while a promotion is running.
December 1999 21
Promotion
Automatic resetting of prices back to the normal prices when a promotion ends (unless
another promotion follows immediately or overlaps the first one).
Automatic promotion determination when creating sales orders and purchase orders as
well as during POS inbound processing.
Variety of reports and analyses available for evaluating promotions.
Constraints
Automatically trigger markdowns on seasonal goods. Although this feature exists in SAP
Retail, it is handled through the Markdown Planning component instead of through
Promotion.
Automatically trigger purchase orders when promotion stock is depleted. Replenishment
planning does take promotions into account, but quantities are merely suggested by the
system.
See also:
Assortment [Page 15]
Allocation [Ext.]
POS Interface - Outbound [Ext.]
Season [Page 23]
Pricing: Currency Conversion [Ext.]
22 December 1999
Season
Season
Purpose
Currently the Season component consists of markdown planning.
Markdown planning allows you to establish dates for scheduled markdowns before the start of a
season and monitor planned vs. actual sales on a regular basis to see how well the markdown
strategy is working. It is also possible to schedule markups as well as markdowns, although this
is less common.
To create markdown plans, you must first configure the Article Master Data, Pricing, and Retail
Information System components.
You must first create markdown rules (standard discount schedules you use most frequently) in
the Markdown Planning function, then create markdown types in Customizing (to associate the
rules with specific distribution chains). Then you will be able to create markdown plans.
Integration
Markdown Planning passes markdown information on scheduled dates to the Pricing
component, so that prices for clearance merchandise can be automatically recalculated.
The system may round prices to print points you have established, if applicable.
Markdowns do not take effect until you activate them.
New prices are subsequently downloaded to the store POS systems via the POS
interface.
During the season, sales data is passed from the Retail Information System to Markdown
Planning so that you can monitor planned vs. actual revenues.
Features
Ability to schedule dates for multiple markdowns based on percentages of the original
sale price.
Ability to create standard markdown rules that reflect your pricing policies, then assign
them to merchandise, thus streamlining the markdown planning function.
Ability to enter plans for a range of articles and stores.
Ability to assign a standard markdown rule to an article while you are entering plan data,
then modify the rule at that time. The modifications only apply to this instance, and do not
affect other articles to which that rule has been or may be assigned.
An interactive planning screen allows you to create plans and see how they affect
expected revenues. If you modify a markdown percentage, expected revenues are
automatically recalculated on the screen. You can continue to make adjustments until
you are satisfied with the results.
The system warns you if you have accidentally assigned overlapping markdown validity
periods to a single article (which would have resulted in two different sales prices for that
article at the same time).
December 1999 23
Season
Although you can include several articles in your plan, you can choose to activate some
and not others, or activate only certain markdown phases for a specific article.
Actual data is updated automatically. This includes not only sales revenue, but also
weeks-on-hand, current inventory and value, mount of open purchase orders, etc.
Ability to make modifications at any time, even adding or deleting price phases (dates
when markdowns are to occur).
Constraints
The system does not suggest markdown percentages or any changes to your plan based on
actual results. Instead, you decide, based on sales revenues, whether to modify your plan or not.
SAP also provides a seasonal model with weighting factors that can be used to
forecast seasonal consumption in planning. Weighting factors for forecasts are
calculated on the basis of weekly consumption figures in the previous year and are
taken into account when forecast values are determined.
For more information on the seasonal model with weighting factors, see the
corresponding general documentation.
See also:
Pricing [Page 17]
Promotion [Page 20]
24 December 1999
Documentation not Available in Release 4.6B
December 1999 25
26 December 1999
December 1999 27
Bills of Material
Bills of Material
Definition
A bill of material is a complete, formally structured list of the components that make up an object.
It contains the name, quantity, and unit of measure of each component.
Different forms of bills of material are used wherever an end product is assembled from several
component parts or materials. Depending on the industry sector, they may also be referred to as
recipes, lists of ingredients, and so on.
Bills of material (BOMs) contain important master data for a number of organizational areas
within a company, such as:
materials planning
staging of materials for production
product costing
plant maintenance
In the SAP System, you can create the following bills of material:
material BOM
equipment BOM
functional location BOM
document structure
sales order BOM
Selection criteria
You require this component if you want to use the SAP R/3 System to plan production, or if you
want to maintain bills of material for technical objects in plant maintenance. You also require this
component if you want to organize comprehensive documents in the form of document
structures.
28 December 1999
Sales Order BOM
Sales Order BOM

Definition
If you create a sales order BOM, you can make changes directly to the BOM. For example, you
can add or delete items for a specific sales order. The changed BOM is linked to this particular
sales order.
You can also use this functionality to create a sales order for a configurable material.
There are two steps to maintaining a sales order BOM:
1. You create a sales order for a configurable material.
Only the header material is configured in the sales order.
2. You process the BOM for the sales order using a special function.
This function allows you to do a multi-level, interactive configuration of the BOM.
Selection criteria
You require this component if you have to adapt the BOMs for your products to sales orders and
therefore cannot design them completely in advance.
December 1999 29
Serial Numbers
Serial Numbers
Definition
You give material serial numbers to individuals item of material in order to differentiate that
individual item from all the other items of the material.
You can include material serial numbers in various business operations in logistics. In all cases,
a movement history is compiled for the serialized items of material and the status is maintained
automatically.
Selection criteria
The inclusion of the Serial Numbers component is possible with the following business
operations:
Goods receipt/goods issue and other inventory postings
Here you must also select the Materials Management component.
Original value entry of inspection lots
Here you must also select the Quality Management component.
Sales order, delivery note
Here you must also select the Sales and Distribution component.
Access from repetitive manufacturing
Here you must also select the Production Planning and Control component.
Maintenance contracts
Here you must also select the Plant Maintenance component.
Expansion to full equipment master record and usage of maintenance processing and
history
Here you must also select the Plant Maintenance component.
30 December 1999
Business Partners
Business Partners
Definition
Business partners are the different legal persons or natural persons with whom a company has a
business relationship:
Customers
Vendors
Own company personnel
For example, a customer orders goods from the company. To supply the goods on time, the
company hires a forwarding agent to make the delivery. The transaction is carried out by a sales
and distribution employee.
An individual business partner record master record is created for every customer.
Selection Criteria
You cannot deselect this component if you have installed the SD module.
December 1999 31
Batches
Batches
Definition
A batch is a quantity of a certain material produced in a specific manufacturing process and thus
represents a unit with unique specifications. A batch is managed separately from other subsets
of the same material. The main characteristic of a batch is its homogeneity.
Batch management can be used throughout the entire logistics chain, that is, from the raw
materials point of entry into the manufacturing process through processing during production
until the finished product is sold and delivered to the customer.
The following batch management functions are available
batch number assignment
batch status management
batch determination
batch tracking
32 December 1999
Environment Management
Environment Management
Purpose
This component covers the following areas: environment, health & safety (EHS).
Integration
With the other environment management components
If you want to Then you must install

Manage substance data and create substance reports Product Safety
Manage the dangerous goods material master, carry out Dangerous Goods Management
dangerous goods tests, and create dangerous goods
papers
With the other components in the R/3 System
If you want to Then you must install

Manage substance reports Document Management System (CA-DMS)
Set up substance characteristic categories Classification System (CA-CL)
Send substance reports Sales and Distribution (SD)
Manage dangerous goods
Maintain substances and send substance Materials Management (MM)
reports
Manage dangerous goods
Implement engineering change management Engineering Change Management (LO-ECH)
December 1999 33
Product Safety
Product Safety
Definition
The EH&S component is used to manage and define all EH&S-relevant information on pure
substances and products. This information is stored under the general term substances. The
component enables a flexible analysis of substance data using substance reports.
34 December 1999
Substance Data
Substance Data
Definition
Substance data is all data contained in the
substance database
source management
phrase management
The substance database is used to define and manage substance data. It integrates information
on substance identifications, material allocations, compositions, substance listings, and
substance properties.
Source management guarantees a low entry and maintenance outlay for sources and enables
the central definition of sources.
Phrase management allows you to record standard text with a low entry and translation outlay.
Phrases are managed in libraries.
December 1999 35
Substance Reports
Substance Reports
Definition
You create substance reports using a report template and data from the substance database.
Subsequently, you can automatically ship the reports. When you create a substance report in
the S&D shipping component, you can also integrate shipping data. Examples for substance
reports are material safety data sheets, TREMcards, labels, and product descriptions.
36 December 1999
Dangerous Goods Management
Dangerous Goods Management

Implementation considerations
You use this component to:
create material data for dangerous goods
define checks for dangerous goods, and carry out these checks in the sales and
distribution process
define transport papers for dangerous goods, and output them manually or automatically
Integration
To use this component, you must install the following R/3 components:
Sales and Distribution (SD)
Materials Management (MM)
SAPscript
Features
LO-EH&S Dangerous Goods Management consists of the following components:
Dangerous Goods Material Master (LO-EHS-DGP-MM)
Dangerous Goods Checks (LO-EHS-DGP-CHK)
Dangerous Goods Papers (LO-EHS-DGP-DOC)
Constraints
Currently, only ADR regulations and some national legislation are represented in the System.
December 1999 37
DG Material Master
DG Material Master
Integration considerations
You use this component to create and maintain master data for dangerous goods.
Integration
Dangerous Goods Papers (LO-EHS-DGP-DOC)
Features
The dangerous goods material master contains most of the data necessary to create dangerous
goods papers, and carry out dangerous goods checks according to currently applicable law. To
use these dangerous goods components, you require additional data from the material master
and delivery note.
In this component, you can use the functions of engineering change management.
Constraints
Currently, only ADR regulations and some national legislation are represented in the System.
38 December 1999
DG Checks
DG Checks
You use this component to carry out checks for dangerous goods.
Integration
Features
This component enables you to carry out dangerous goods checks. You can use data from the
dangerous goods material master, the material master, and delivery note in these checks.
You can carry out these checks manually or automatically.
The results of the check are entered in the delivery document, and trigger System reactions as
defined by the user.
December 1999 39
DG Papers
DG Papers
You use this component to create transport papers for dangerous goods.
Integration
To use this component, you must have installed the following R/3 components:
Features
You carry out an integrated output of dangerous goods papers within the SD sales and
distribution process using SAPscript forms and the accompanying R/3 print programs.
Standardized forms and print programs are delivered with the System. You can then tailor these
to fit your requirements.
You can use this component to generate a packing list for a delivery note.
The papers can be output manually or automatically.
40 December 1999
Forecast
Forecast
Definition
The forecast is a component that estimates the future progression of values in a time series. The
results of the forecast
are used as a planning tool in Sales & Operations Planning (SOP)
may serve as the basis for determining material requirements in Consumption-Based
Planning
The basis for forecasting is provided in SOP by any key figures from the Logistics Information
System, in Materials Planning by consumption values.
The results of the forecast can be processed further in SOP or passed on directly to Demand
Management. It is possible to maintain several forecast versions of a key figure in parallel.
In Materials Planning, the forecasted data can generate purchase requisitions or planned orders,
and be used to set the safety stock and the reorder point automatically.
December 1999 41
Forecast Models
Forecast Models
Definition
The forecast is based on forecast models that determine how the forecast values are calculated.
A number of different patterns may be detected when the values in a time series are analyzed.
The different forecast models are derived from these patterns:
constant model
trend model
seasonal model
seasonal trend model
This component is central to the functionality of the forecast.
42 December 1999
Model Selection
Model Selection
Definition
Model selection determines which forecast model the system uses to calculate the forecast
values.
Where model selection is automatic, the system examines the time series for different patterns
and chooses the forecast model accordingly. If no clear pattern can be detected, the system
selects the constant model.
The forecast model can also be selected manually.
December 1999 43
Forecast Procedures
Forecast Procedures
Definition
Forecasting in the R/3 System is carried out with the following procedures:
first-order exponential smoothing
first-order exponential smoothing with optimization of the alpha factor
moving average
weighted moving average
second-order exponential smoothing
second-order exponential smoothing with optimization of the alpha factor
Winters procedure
historical values are taken as future values
44 December 1999
Model Monitoring
Model Monitoring
Definition
Examination of a time series for changes in structure and, therefore, for the need to change the
forecast model. The choice of forecast model is monitored automatically every time the forecast
is run.
The pattern of the values in a time series may change over the course of time. To identify such
changes at an early stage, the system calculates a tracking signal. This indicates whether the
prediction made using this particular forecast model can still be accepted.
December 1999 45
Reference Material in Forecast
Reference Material in Forecast

Definition
If no consumption data exists for a material, then a reference material can be used instead. The
forecast is then based on the consumption data of the reference material up to a specified date.
A multiplier can also be specified such that only a certain percentage of the consumption quantity
of the reference material is used.
Selection criteria
Select this component if you intend to run the forecast in Materials Planning.
46 December 1999
Definition
Variant configuration is used to describe complex products with several variants (for example,
cars, doors, computers). The features of a variant product (or configurable material) are
represented by characteristics in the SAP System. To set up a variant, you assign values to the
various characteristics of the product.
You can define object dependencies to ensure that the configuration of a material is complete
and consistent.
December 1999 47
Object Dependencies
Object Dependencies
Definition
Before you can configure a material or standard network, you must maintain the relevant master
data. This means that you have to maintain object dependencies, create one or several
configuration profiles for a configurable object, and maintain tables and tool functions for object
dependencies.
Another precondition for configuring objects is that you install the Classification (CA-CL)
component. You use classification functionality to allocate characteristics to the configurable
object to describe it. You can also classify configurable objects.
48 December 1999
Confuguration Profile
Confuguration Profile
Definition
In preparation
SAP is planning to create a central maintenance environment for the product model of a
configurable material, and to support the distribution of the data of the knowledge base via ALE.
December 1999 49

Definition
Engineering change management is a central logistics function which can be used to change
various production master data (for example, bills of material, task lists, materials, documents)
with history.
Changes with history have the following features:
They become valid on a defined date.
The changed object is stored twice in the system: in its status before and after the
change.
The changes made are documented in a change master record.
Selection criteria
You should install this component if you frequently have to make complex changes to master
data and want to document the changes.
50 December 1999
Change Master Management
Change Master Management

Definition
Changing an SAP object with history means changing it with reference to a change master
record. The change master records contains data that describes and controls changes.
For example, you define in the change master record which objects are changed as per which
date. In certain processing situations, you can activate business operations defined specifically
for your company.
December 1999 51
Linked Objects
Linked Objects
Definition
You can change the following SAP object types with reference to a change number:
Bills of material of various BOM categories
Task lists of various task list types
Document
Material
Characteristics
Characteristics in classes
Classification
Object dependencies
Configuration profile
Substance changes (Environment, health & safety system)
Phrase changes (Environment, health & safety system)
52 December 1999
Reporting
Reporting
Definition
Any changes made to change objects are stored in the system. However, the data stored varies
for the different object types (for example, bill of material, task list, document). Therefore the
system produces a different list for each object type.
You can display lists for:
BOM changes
Task list changes
Documents
Materials
Classification objects
December 1999 53
Change Documents
Change Documents
Definition
Major changes to a change master record are stored in change documents. You can define the
scope of information you want to see in the current processing situation.
You can display the following information:
All documents
Document header
Object types
Object management data
Alternative dates
54 December 1999

Definition
The Logistics Information System (LIS) consists of the following information systems:
Sales Information System
Purchasing Information System
Inventory Controlling
Shop Floor Information System
Plant Maintenance Information System
Quality Management Information System
The information systems that belong to LIS have a modular structure, yet have a variety of
techniques that you can use to evaluate data. This type of structure also allows the individual
information systems to retain their special features.
The information systems can be used at a variety of levels in the decision-making process as an
instrument for monitoring, controlling and planning your business operations.
It is a flexible tool for collecting, aggregating and analyzing data from the respective application.
The information systems allow you to view all information in the operative application from a wide
range of perspectives. You can also define the level of detail in which you wish to see the
information.
Informative key figures help you to permanently monitor key criteria and enable you to take
necessary action in good time.
The data is evaluated either by means of standard analyses or flexible analyses. Flexible
planning, the Early Warning System and the Logistics Information Library are integrated in the
information systems.
Tools are available in Customizing, which allow you to apply a self-defined structure to your
information system and tailor it to meet your own specific requirements.
Selection criteria
If you select the Logistics Information system via Logistics General, then you are given all
information systems that belong to LIS.
You can, however, call up the information systems separately via the respective applications
(e.g. the Sales Information system via Sales and Distribution). You should use this method if you
only want to call up one or more specific information systems. If you select the information
systems while you are in the respective application itself, then you should not in addition select
the Logistics Information System component from the level Logistics General.
December 1999 55
Reporting
Reporting
Definition
The reporting component comprises the standard analyses and flexible analyses of the Logistics
Information System. The standard and flexible analyses enable you to analyze and evaluate data
which is written to the LIS information systems.
Standard analyses
The standard analyses are based on statistical data from the operative application and
provide a wide range of options for evaluating data. A great variety of functions are
available as part of the standard analyses. These functions enable you to target specific
key figures and to analyze them in detail (e.g. ABC analysis, cumulative frequency curve,
correlation curve, previous year comparison, planned/actual comparison, etc.). You can
specify the level of detail in which you wish to view the information. The values for each
list can also be viewed graphically.
Flexible analyses
Flexible analyses allow you to group together and aggregate key figures yourself, and to
create reports very easily. This makes use of functionality in the Report Writer. Different
display types enable you to vary the layout of your reports.
56 December 1999
Planning
Planning
Definition
The planning functionality of the LIS information systems is integrated into the central component
Sales & Operations Planning (SOP).
Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales,
production, and other supply chain targets can be set on the basis of historical, existing, and/or
estimated future data. Rough-cut planning can also be carried out to determine the amounts of
the capacities and other resources required to meet these targets.
SOP supports both the high-level planning of complex planning hierarchies and the detailed
planning of finished products. Thus, either a top-down or a bottom-up approach to planning is
possible. The system can be configured either such that target key figures set at one
organizational level are distributed automatically and consistently to all the other organizational
levels in the hierarchy (for example, to all distribution channels, materials, and plants in a
particular sales organization), or such that each level is planned separately.
Sales & Operations Planning is made up of two elements: standard SOP and flexible planning.
Standard SOP comes largely preconfigured with the system. Flexible planning offers multiple
options for customized configuration. Planning in standard SOP is based on product group
hierarchies and is always carried out level by level. Flexible planning is carried out on hierarchies
containing any chosen organizational levels (for example, sales organization, distribution
channel, material, and plant). Moreover, in flexible planning the content and layout of planning
screens can be defined by the users.
Selection criteria
This component focuses on flexible planning.
To run SOP in a distributed environment, select also Application Link Enabling (ALE).
December 1999 57
Data Collection
Data Collection
Definition
The data collection component (Logistics Data Warehouse) is central to the Logistics Information
System (LIS) and is integrated in all LIS information systems.
The functionality in this component allows you to define and construct your own Logistics Data
Warehouse. This takes place in the data collection component. Variable data structures are used
to ensure that the varying requirements of different user groups and applications are satisfied.
The so-called self-defined information structures play a key role in this process. A variety of tools
allow these structures to be filled with customer-specific data (even external data).
In addition, the data collection component contains functions which allow you to define the way in
which statistical data from the application is written to the information system. Update groups and
update rules are also available to help you with your definition.
Selection criteria
Selection of the data collection component is a prerequisite for using all other components in the
logistics information systems.
58 December 1999
Logistics Information Library
Logistics Information Library

Definition
The Logistics Information Library (LIL) helps you to create, classify and find key figures in the
area of Logistics and is integrated in all information systems of the Logistics Information System
(LIS) as an individual menu option.
The Logistics Information Library uses simple search strategies which enable you to access all
key figures in the LIS information systems. The LIL also offers you the option of cataloging and
structuring key figures.
The LIL also allows you to access key figures that are not integrated in any key figure system
and those that have been created specifically for your business purposes. The LIL enables you to
integrate reports, transactions, information systems and tables from different areas of Logistics,
such as Purchasing, Sales and Production.
It is possible to search for and call up a specific key figure, without knowing the exact name of
the report, the transaction code or the menu path.
December 1999 59
Early Warning System
Early Warning System

Definition
The Early Warning System aids the decision-making process by enabling you to select and
monitor weak points in logistics processes. The Early Warning System is integrated in all LIS
information systems. The key figures form the basis for the analysis.
The Early Warning System allows you to search for exceptional situations and thus helps you to
detect and rectify potential problems at an early stage.
You can define your own exceptional situations in the form of exceptions, as well as the
conditions for subsequent follow-up processing. If an exceptional situation occurs, then you can
be informed automatically by mail or fax, for instance, or you can view the critical data in the
system. The display of the critical data is supported by various visualization techniques.
60 December 1999
Retail Information System (LO-RIS)

Purpose
The Retail Information System (RIS) is a flexible tool that enables you to collect, aggregate and
analyze data from retailing activities.
Integration
The Retail Information System is a component of the Logistics Information System [Ext.]. The
Logistics Information System is divided into the following information systems:
Sales Information System (SIS)
Purchasing Information System (PURCHIS)
Inventory Controlling (INVCO)
Quality Management Information System (QMIS)
Retail Information System (RIS)
These information systems are available in the SAP Retail menu for controlling your business
processes.
The Logistics Information System (LIS) also includes the following information systems:
Production Information System
Plant Maintenance Information System
You can access both these information systems from the SAP menu by choosing Info Systems
Logistics.
All the information systems mentioned use the following core techniques (reporting tools) to
evaluate data. These are all described in the documentation for the Logistics Information System:
Standard Analyses [Ext.] with a variety of options for list processing and using graphics in
presentations
Flexible Analyses [Ext.] which allow you to define your own list layouts and formulas
Flexible Planning [Ext.] with a planning table that you can structure yourself, various different
planning methods, distribution functions, support for forecasts, and interactive graphics
The Early Warning System [Ext.], which allows you to spot weak points and exceptions more
easily.
The Logistics Information Library [Ext.], which uses simple search strategies to allow you to
access and catalog key figures within LIS.
The Retail Information System integrates data from the areas of Purchasing, Sales and
Distribution, and Inventory Management, and also enables you to evaluate data that is
particularly significant for Retail (data relating to retail price change documents or the POS
interface, for example).
December 1999 61
You will find further information on the RIS under LIS Components: Retail
Information System [Ext.].
Logistics Data Warehouse

The Logistics Data Warehouse in Customizing allows you to tailor the structure of the Logistics
Information System to suit your own requirements. This tool enables you to customize the setup
of the data basis for your Information System, define update rules for the data and generate
standard analyses for evaluating the data.
You will find Further Information on This Tool [Ext.] in the Implementation Guide for
the Logistics Information System in the Data Basis and Updating sections.
The Logistics Data Warehouse allows you to use the comprehensive evaluation levels of the
SAP BW component to evaluate operative processes in Retail.
You will find further information on BW and on the reporting tools of the Business
Explorer in the documentation for the Business Information Warehouse.
Features
The RIS enables you to analyze all the information from the supply chain that is relevant to
retailing. It provides you with a wide variety of views on all the information from the operative
application. You can also define the level of detail in which the information is displayed.
The data that is updated in the RIS documentation structures form the basis for
Merchandise and Assortment Planning [Ext.].
No new developments will be added to the RIS from Release 4.6B. New
developments for evaluating operational data from Retail will be made in BW Content
in the future.
See also:
Background Processing: Information and Planning System [Ext.]
Flexible Planning System [Ext.]
62 December 1999
Supply Chain Planning Interfaces
Supply Chain Planning Interfaces

See Supply Chain Planning Interface [Ext.]
December 1999 63
Production Optimization Interface
Production Optimization Interface

See Production Optimization Interface [Ext.]
64 December 1999
Demand Planning, Distribution Resource Planning Interface
Demand Planning, Distribution Resource Planning

Interface
See Demand Planning, Distribution Resource Planning Interface [Ext.]
December 1999 65
Additionals
Additionals
Use
You can assign additionals to articles to ensure their effective presentation at sale. Alternatively,
additionals can serve as logistics supports for your merchandise. Price tickets, security tags,
clothes hangers, and shipping materials (in particular for private labels) are all examples of
additionals. You can use the additionals function to, for example, ask a vendor to attach price
tickets to merchandise which you have ordered.
Services provided by vendors can also be regarded as additionals: pre-packing, pressing or
arranging clothing on hangers for display can all be classified as additionals. Pre-packing is a
Supplementary Logistics Service (SLS) that supports logistics processes in Floor Ready
Merchandise. For further information about SLS, see also: Supplementary Logistics Services
(SLS) [Ext.].
The additionals component enables you to manage master data for additionals, transfer this data
as an IDoc, and generate purchase orders for additionals. You can define a variety of events (for
example, goods receipts) that will automatically trigger the generation of IDocs and purchase
orders.
Use this component if you wish to do the following:
Transfer price ticket data.
Generate purchase orders for labels automatically and place them with a labels vendor
(imprinter).
Manage packaging, gum tabs or swing tickets that identify private labels with your own
companys logo or assign articles to the merchandise categories available in your distribution
chains.
Order pre-packed merchandise from vendors.
Integration
Assign additionals to merchandise Article
Assign additionals to articles in a promotion Promotion
Generate additionals IDocs for purchase orders or delivery Ordering
notes
Generate additionals purchase orders for merchandise
purchase orders
Automatic enhancement of data and sub-items for SLS Merchandise Distribution
(for example, pre-packing) in a collective purchase order
Generate additionals IDocs for goods movements Inventory Management, goods
receipts
Generate additionals IDocs for deliveries Logistics Execution
66 December 1999
Additionals

Generation of additionals IDocs for transport orders for Warehouse Management (WM)
deliveries
Generate additionals IDocs for sales orders Sales order processing
Assign additionals manually to a sales order item
Transfer data for additionals to stores via an assortment Assortments
list IDoc
Update the costs and time required for processing RIS
additionals
Group sites and customers Classification
Features
The following functions available for additionals allow you to:
Assign more than one additional in article maintenance to every article that is to be sold. You
can create multiple lines of text for every additional.
Define procedures for additionals in Customizing. These define how data for an additional is
generated and where the additional is procured. They also define who is to affix additionals
to merchandise (or combine them in some other way).
Have the system generate additionals IDocs when certain events occur (for example,
Creating purchase orders or Posting goods receipts). The IDocs can be sent to a
communications partner such as a distribution center, a vendor or a label supplier (imprinter).
If you want to place purchase orders for articles to be pre-packed using collective purchase
orders, assign a relevant SLS for this in the additionals data in the article master. When you
generate collective purchase orders, data and sub-items are automatically added to the SLS.
Transfer additionals data to stores using assortment list IDocs.
Have the system automatically generate purchase orders for additionals (for example, for
sending to an imprinter).
Have an external system retrieve additionals data in a partner SAP system using BAPIs. This
allows an imprinter, for example, to request the most up-to-date data for the tickets directly
from the retailer.
Query the planned purchase order volume for an additional using BAPIs.
Analyze additionals documents in the additionals monitor.
Automatically analyze changes centrally that affect additionals.
Constraints
To prepare additionals IDocs for printing, you require an external program that converts data into
the relevant printer format. You can find further information about this in SAPNet
(www.sap.com) by choosing Solutions Complementary Software Scenarios/interfaces
Retail. Here you will find the IS-ADP (Retail - Additionals Printing) interface for additionals.
See also:
December 1999 67
Additionals
Background Processing: Additionals [Ext.]
68 December 1999

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LO Component Short

Copyright 2000 SAP AG. All rights reserved.

SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com

LO Component Short Description .....................................................................6

Early Warning System .............................................................................................................. 60

LO Component Short Description

Logistics Basic Data

Article Master Data

Food Non Food

Dairy products Fruit Mens clothing Kitchenware

Variant: red Variant: green

Send sales prices in an assortment list Assortment lists

Documentation not Available in Release 4.6B

Documentation not Available in Release 4.6B

Documentation not Available in Release 4.6B

Sales Order BOM

If you want to Then you must install

With the other components in the R/3 System

If you want to Then you must install

Dangerous Goods Management

Reference Material in Forecast

Engineering Change Management

Change Master Management

Logistics Information System (LIS)

Logistics Information Library

Early Warning System

Retail Information System (LO-RIS)

Logistics Data Warehouse

Supply Chain Planning Interfaces

Production Optimization Interface

Demand Planning, Distribution Resource Planning

Required function: Required component:

Background Processing: Additionals [Ext.]

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