SAP Term Project

Garrett Duncan

Jackie Shemko

COMP 3204

8 December 2019
 Contents
Overview of Fitter Snacker and Purpose of SAP ........................................................................................... 3
Meijer, Inc.: Creating Inquiry ........................................................................................................................ 4
Purchasing Honey ......................................................................................................................................... 6
Meijer, Inc.: Creating Sales Order from Inquiry .......................................................................................... 10
Production of NRG-A bars ........................................................................................................................... 15
Meijer, Inc.: Invoice Receipt ....................................................................................................................... 20
Health Express: Credit Limit Adjustment .................................................................................................... 21
Health Express: Sales Order ........................................................................................................................ 22
Health Express: Releasing Blocked Sales Order .......................................................................................... 23
Bill of Material: NRG-A Bars ........................................................................................................................ 24
NRG Bars Product Group............................................................................................................................. 25
Independent Requirement Calculations: NRG Bars .................................................................................... 26
NRG Bar Product Group: Creating Rough-Cut Plan..................................................................................... 27
NRG Bar Product Group: Transferring Planning to Individual Products ..................................................... 28
Running MRP............................................................................................................................................... 29
Stock/Requirements List: NRG-A and NRG-B Bars ...................................................................................... 30
Collective Access Stock/Requirements List................................................................................................. 31
Conclusion ................................................................................................................................................... 32
Bibliography ................................................................................................................................................ 33

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 Overview of Fitter Snacker and Purpose of SAP

The purpose of this course, Introduction to Business Processes, is to introduce students to

enterprise resource planning (ERP) systems. ERP systems are a vital part of a company. They integrate
different areas of the business to make processes much easier and prevent mistakes from happening, by
only having one source for data. Knowing how to navigate and use any ERP system is a very useful skill,
because so many employers look for it. We use SAP in this class because it is the most widely used ERP
system. The skills from SAP are transferrable to another system, if an employer was to use another. The
main purpose of ERP systems is to help execute business processes, hence the course title. These
processes can include almost anything within the company, from sales, to production, to credit
management.

Fitter Snacker is a snack bar manufacturer who sells two types of bars, NRG-A and NRG-B. We
sell our products to two divisions, wholesale and direct sales. The wholesale divisions sell the bars to
intermediaries, who then sell them to other stores. The direct sales division sells bars straight to stores.
All orders are placed on credit, but the wholesale division can offer incentives for customers who place
larger orders. Fitter Snacker produces all of their products in house, making their dough and baking their
snack bars (Shemko). They use SAP to complete their company’s business processes, such as sales and
production, which is what ties their company to this course.

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 Meijer, Inc.: Creating Inquiry

The line in blue shows the current total stock in the warehouse, below that is a customer order,
and then below that are next quarter’s sales forecasts. We currently have 913 NRG-B available
for order. There is 916 in total stock, but 3 of those have been purchased by a customer,
therefore there are 913 available.

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The price of four cases of NRG-B bars is $1,180. Meijer, Inc. is not eligible for any discounts.

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 Purchasing Honey

The top line in the stock/requirements list shows our total stock. We currently have 490 gallons
of honey.

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The purchase requisition has been created. This is an internal document that will be sent to the
purchasing department. It is a request for them to purchase an item for you.

The purchase requisition has been approved by the purchasing department and the purchase
order has been created. They have placed the order for 500 gallons of honey, and the price is
$3,200.

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This is the goods receipt. This is a confirmation that the items delivered are the correct items,
and in the right quantity. The goods receipt here confirms that 500 gallons of honey have been
delivered, so there are no issues.

Battle Creek has sent us an invoice for the honey we ordered. We must now pay them for it.

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The balance under “Not assigned” is $0.00. This means that the invoice has been paid.

The stock level has changed from 490 gallons to 990 gallons. This confirms that we have the
honey in our stock now.

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 Meijer, Inc.: Creating Sales Order from Inquiry

The sales order has been created with reference to Meijer Inc.’s inquiry. The items, quantity and
information of buyer are all put into the order.

The order is still open. It has been completed, but because the responsibility has not yet been given to
the warehouse, the document flow says it is still open.

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The outbound delivery has been created. This is where the responsibility of the sales order moves from
the sales team to the warehousing team.

Now that the outbound delivery has been created, the standard order has been completed, and the
outbound delivery is now open.

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The items have been picked. This means they are now ready to be shipped out to Meijer, Inc.

The document flow confirms that the items have been picked.

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I clicked on “Post Goods Issue”. Posting the goods issue means that the items ordered have been
shipped to the customer. It is no longer the warehouses responsibility, and the NRG-B bars are on their
way to Meijer, Inc.

The goods issue is complete, the NRG-B bars have been delivered to Meijer, Inc.

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The invoice has been created.

This is the invoice. It sends notice to the customer that they need to pay us for the bars they ordered. It
has been sent to Meijer, Inc.

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 Production of NRG-A bars

This is the stock/requirements list for

NRG-A bars. The top line on the list
displays the total stock of an item.
We currently have 7 in stock.

The planned order (Labelled on the screen as ‘PldOrd’) has become a production order (Labelled on the
screen as ‘PrdOrd’). This means that the bars are going to be made now.

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To make the NRG-A bars, we first need to produce NRG-A dough. I changed a planned order of the
dough to a production order, to create the dough.

This is the goods issue for NRG-A

dough. All of the listed items here
need to be sent to the ‘MIXER’
workstation to create the dough.

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 This confirms that the proper amount
of NRG-A dough was made, 500 lbs.

The goods receipt confirms that the correct product, NRG-A dough, in the correct amount, 500 lbs, has
been sent to the correct location, storage location 200.

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 This is now the goods issue to create
the NRG-A bars. The only item that is
required to make them is NRG-A
dough. It needs to be sent to the
‘BAKELINE’ workstation.

The confirmation of production order confirms that 7 bars of NRG-A have been produced.

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The goods receipt for the NRG-A bars confirm that 7 bars of NRG-A bars have been produced, and they
are now in their proper storage location, which is 300.

In the stock/requirements list, the stock of NRG-A bars has increased by 7. This confirms that we have
produced the bars.

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 Meijer, Inc.: Invoice Receipt
The amount next to “Not assigned” is
$0.00. That means that Meijer Inc.
has paid their invoice.

The accounting document has been cleared, more proof that the invoice has been paid.

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Health Express: Credit Limit Adjustment

By going into change customer credit

limit, I adjusted Health Express’ credit
limit to $2500. This means that they
cannot order anything that exceeds
the price of $2500.

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 Health Express: Sales Order

This is the sales order of 9 cases that is going to Health Express.

Health Express’ order is $155.00 over their credit limit, which means it cannot be placed unless the
order is released.

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 Health Express: Releasing Blocked Sales Order

The order has been released. This means that the order will continue to be processed, even though
Health Express exceeded their credit limit when they placed it.

The credit limit change screen will

display how much credit a customer
is using. I used this screen to confirm
that the order has been released. If it
was not, the credit usage would be at
$0, because an order that exceeds
the limit would be blocked from
further processing.

By creating and saving an outbound delivery, the responsibility of the order has been given to the
warehousing team.

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 Bill of Material: NRG-A Bars

The bill of materials is the ‘recipe’ for a finished good. It displays what materials and what amount of
those materials go into the production of an item. It also gives a level to each item, level 0 is the finished
product, level 1 are semi-finished goods, and level 2 are raw materials.

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 NRG Bars Product Group

This is the product group for NRG-A and NRG-B bars. It is structured so that when NRG bars are to be
produced, 70% of them are NRG-A bars, and the other 30% of them are NRG-B bars. The purpose of
creating a product group is because when a company sells similar products, it is easier for them to plan
production for those products by grouping them.

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 Independent Requirement Calculations: NRG Bars

The calculations used to determine the independent requirements is simple multiplication. The product
group splits the production of the product group into a 70% for NRG-A bars and 30% for NRG-B bars. To
find the amount of each bar in each independant requirement, the sales forecast must be multiplied by
0.7 or 0.3. The sales forecasts for January, February and March are 25, 35 and 15, respectively.

NRG-A: January- 25 x 0.7 = 17.5 = 18 cases

February- 35 x 0.7 = 24.5 = 25 cases

March- 15 x 0.7 = 10.5 = 11 cases

NRG-B: January- 25 x 0.3 = 7.5 = 8 cases

February- 35 x 0.3 = 10.5 = 11 cases

March- 15 x 0.3 = 4.5 = 5 cases

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NRG Bar Product Group: Creating Rough-Cut Plan

This is the new rough-cut plan for the

NRG group. The plan is synchronous
to sales, which means that we match
our production level with our
forecasted sales for each month.
There is no target stock level.

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 NRG Bar Product Group: Transferring Planning to Individual Products

The production plan for the product

group is about to be transferred to
the products. This is done by selecting
the ‘Prod. Plan for mat. or PG
members as a proportion of PG’.
Selecting that option means that the
materials in our product group will be
produced with the 70%/30% split that
was previously set up.

The error message that was given means that the materials are already available. We currently have
NRG-A and NRG-B bars in stock, but the company will still need to create more in the near future, so this
message can be disregarded.

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 Running MRP

By running material requirements planning (MRP), SAP performs the calculations that plan production of
the bars to meet the sales forecasts.

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 Stock/Requirements List: NRG-A and NRG-B Bars

After running MRP for the NRG bars product group, the stock/requirements list has changed to add the
planned production orders (PldOrd) for NRG-A bars, and has added the independent requirements,
which is forecasted sales. They are called independent requirements because sales demand does not
rely on any factors aside from sales.

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 Collective Access Stock/Requirements List

This is the stock/requirements collective access page. The lights that are on the left signal if there is not
enough of an item to continue with production. All the lights are currently green, which means there are
no issues. There is no production for any bars to happen until January, which is why the lights are still
green despite there being no dough for NRG-A and NRG-B bars.

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 Conclusion

In conclusion, the completion of the course ‘Introduction to Business Processes’ has added a lot of
marketability to me as an employee. Understanding and knowing how to use an ERP system is a highly
applicable skill, because most businesses have one. SAP is the most commonly used system, so
understanding how to use that specific application will most likely provide an advantage when looking
for employment. If a company uses a different type of ERP system, the skills learned in this class will be
transferrable to another application, such as Microsoft dynamics. This course has also very much
furthered my understanding of how business processes work. Before taking this class, I had not put
much thought into how the different areas of businesses are linked together. During the course, I
learned how the sales, logistics, and accounting department work together when orders are placed, how
the purchasing and logistics departments work together when they order materials, and much more.
Introduction to Business Processes has been a very insightful course, and has given me experience I
need to help me find employment when I graduate.

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 Bibliography
Shemko, J. (n.d.). Week 2 - Business Processes and Intro to the Sales Order Process CRN 13036.

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