BPI I StudentBook

BPI - I Student Book
Business Process Integration - I Student Books
rg
The Rushmore Group, LLC
Version 3.2
January 2006
Business Process Integration I
Presented by The Rushmore Group, LLC
Welcome
SAP introductions Instructor introductions Student introductions Course schedule Classroom materials Housekeeping issues Introduction to SAP
January 2006
SAP AG and The Rushmore Group, LLC 2006
Introductions
Your name My background [briefly] Your SAP role/experience/courses attended Your objectives/expectations with respect to this course...
January 2006
The Rushmore Group, LLC and SAP 2006 1
Version 3.2
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Course Materials
Business Process Integration Slides Business Process Integration Exercises
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Schedule of Exercises
Day One 20 Day Two 68 Day Three 106 Day Four 151 Day Five 190
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An Introduction to the Basics of SAPs R/3 Client / Server Integrated Business Solution
Version 3.2
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SAP
Systems, Applications, and Products in Data Processing (SAP) Name of the company
SAP AG SAP America
Name of the software

SAP R/2 Mainframe version SAP R/3 Client/Server version
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SAP AG
Founded in Germany (1972) Worlds third largest software provider Worlds largest provider of Integrated Business Solutions software Company stock trades on the Frankfurt and New York exchanges
January 2006
SAP R/3
World-wide usage Designed to satisfy the information needs for business sizes (small local to large all international)
Multi-lingual Multi-currency
Designed to satisfy the information needs for all industries (industry solutions)
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Version 3.2
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SAP R/3
Enables a company to link its business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible
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Integrated Business Solutions Software Vendors

SAP Oracle (Peoplesoft and J.D. Edwards) Microsoft Great Plains, Axapta, Solomon IBM BAAN
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Architecture
Central relational database (e.g., Oracle, Informix, Microsoft SQL and many others) Client/Server three-tiered ERP Component Oriented towards common identifiable business modules (FI, MM, SD, CO, PP, HR) Add-ons:
Customer Relationship Mgmt (CRM) Supply Chain Mgmt (SCM) Product Lifecycle Mgmt (PLM)
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Version 3.2
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Relational Database
Tables: Defines and links thousands of tables of information (25,000+) Advantages
Consistent and accurate data Common definitions for terms Shared, but restricted usage (e.g., profiles) Eliminates data redundancy
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Client/Server Environment
Client
Software/hardware combination that can make a request for services from a central repository of resources
Server
Software/hardware combination that can provide services to a group of clients in a controlled environment
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Three-Tier SAP Structure

GUI Graphical User Interface or Web Interface Application server (one or many) Database server (one single location)
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Version 3.2
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SAP Enterprise System

PCs, Laptops, etc. Browser Client
Network
Presentation
Internet Transaction Server
Web Server
Application
Application Servers
Database
Database
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mySAP Business Suite

mySAP PLM
mySAP SRM
mySAP ERP
mySAP CRM
mySAP SCM
SAP NetWeaver
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mySAP ERP Modules

SD MM PP
Sales and Distribution
FI
Financial Accounting
CO AM
Fixed Assets Mgmt. EC
Materials Mgmt. Production SM Planning Service Mgmt.
R/3
HR IS
Controlling
Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution PM WF System Plant Maintenance Workflow
Human Resources
Industry Solutions
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Version 3.2
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Business Modules
Collections of logically related transactions within identifiable business functions
MM (Buy) PP (Make) SD (Sell) FI and CO (Track) HR
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SAP R/3 Basics

Instance each install of the SAP R/3 software on an individual application server Configurable each instance can be distinctively configured to fit the needs and desires of the customer (within limits) Most of the infrastructure decisions, including configuration decisions, occur during project implementation
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Configuration
The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access) DOES NOT involve changes to the underlying software code
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Version 3.2
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Programming Code Modifications

Changes to the delivered code ABAP/4 Advanced Business Application Programming (ABAP) This should be done sparingly and carefully as it can make migration to new versions of the software much more difficult
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SAP R/3 Document Principle

Each business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as
Responsible person Date and time of the transaction Commercial content
Once created, a document can not be deleted from the database

Review
SAP and SAP R/3 Integrated Business Solution Architecture Client/Server Software Relational Database SAP R/3 Modules Configurable Software Programming Code Modifications Be Careful!! SAP R/3 Document Principle
Version 3.2
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Unit 1
Business Processes, Integration, and Configuration in the SAP R/3 Environment
Two Differing Learning Approaches

Standard SAP training
Level 1: Introductory Level 2: Business processes Level 3: Configuration
Our Approach
Cross functional Understand business processes and their relationships to SAP's organizational structure Highlight integration/configuration!!
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Learning by Creating a Model Business

Understanding business processes and their integrative nature Understanding SAP organizational structures Combining business processes and SAP organizational structure (i.e., configuration) Test the newly configured system View system outputs - statistics, reports, and graphics
Version 3.2
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Pen Incorporated
Start-up company in the promotional pen business Initially buys and re-sells different lines of promotion pens Sells to both wholesale and retail procure and distribute Later acquires a production facility to manufacture its own product produce and distribute
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SAP R/3 and Business Processes

- Overview -
Pen Incorporated Procure for Sales Order

Pre-Sales Activity Sales Order Delivery Billing Accounts Receivable
Availability Check In Inventory

YES
Goods to Delivery Plant or Warehouse Inventory Postings General Ledger Accounts
NO
Goods from Purchase Order Purchase Order Goods Receipt Invoice Receipt Accounts Payable
Purchase Requisition
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Version 3.2
January 2006
Pen Incorporated Produce for Sales Order

Pre-Sales Activity Sales Order Delivery Billing Accounts Receivable
Availability Check In Inventory

YES
Goods Issued to Delivery Plant or Warehouse Inventory Postings General Ledger Accounts
NO
Issue Goods to Production Order Production Order
Goods from Production Order
Planned Order
Completion Confirmation
Accounts Payable
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SD MM
FI
CO AM
Materials PP Mgmt. Production SM Planning Service Mgmt.
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Logistics
Materials Management (MM) Sales and Distribution (SD) Production Planning (PP) Quality Management (QM) Plant Maintenance (PM) Service Management (SM)
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Version 3.2
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Accounting and Finance

Financial Accounting (FI) Controlling (CO) Enterprise Controlling (EC) Fixed Asset Management (AM) Project Systems (PS)
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Human Resources
Human Resources (HR)
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Materials Management (MM)
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Version 3.2
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Components of Materials Management

Valuation Logistics Invoice Verification Purchasing Material Master Inventory Mgmt. Physical Inventory MRP Service Entry Sheet Service Master Product Catalog Foreign Trade/ Customs
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Integration
Procurement Process
(Procure-to-Pay)
Purchase Requisition Purchase Order
Notify Vendor Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt
38
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Sales and Distribution (SD)
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Version 3.2
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Components of Sales and Distribution

Shipping Transport Sales Support Master Data Sales Credit Mgmt. Billing Foreign Trade Sales Information System
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Integration
Sales Order Process

(Order-to-Cash)
Sales Order Entry Check Availability Pick Materials
Receipt of Customer Payment Invoice Customer
Pack Materials
Post Goods Issue

41
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Financial Accounting (FI)
SD MM PP SM
Service Mgmt. Production Planning Sales and Distribution
FI
CO AM
Materials Mgmt.
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Version 3.2
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Components of Financial Accounting
Accounts Receivable
General Ledger Accounts Payable
Fixed Assets Banks Special Purpose Ledger
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Integration
Procurement Process
(Procure-to-Pay)
Notify Vendor Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt
44
January 2006
Integration
Sales Order Process

(Order-to-Cash)
Pack Materials
Post Goods Issue

45
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Version 3.2
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SAP R/3 Configuration

- Overview -
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Business Process Integration

The Stool
Components Organizational Data Master Data Rules Transactions
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Version 3.2
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Business Process Integration FI

Org Data
MM
SD
Master
Rules
Data
FI MM SD
FI
FI MM SD
MM SD
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Organizational Data
A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
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Master Data
Master data is relatively fixed
Material master data Vendor master data Purchasing information record General Ledger master data
Before making the master data configurations, you must have completely defined the organizational structures
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Version 3.2
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Rules
Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes
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Transaction Data
Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
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Functional Areas Where and When

Business Process Integration I
Financial Accounting (FI) Materials Management (MM) Sales and Distribution (SD)
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54
Version 3.2
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Functional Areas Where and When

Business Process Integration II
Financial Accounting (FI) Controlling (CO) Materials Management (MM) Production Planning (PP) Quality Management (QM) Sales and Distribution (SD)
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Version 3.2
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Unit 2 The Basics

- An Introduction to Accessing and Navigating the SAP R/3 System -
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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59
Unit 2 Overview
Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off
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Version 3.2
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SAP R/3 System Standard Features

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Logging On - SAP R/3 Initial Screens
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Logging On - The Client

This is a numeric field This number defines a whole business entity
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Version 3.2
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Logging On - User

Enter the name of the SAP user Users of SAP system are client-specific
User identification on
one client will only allow access to that client on that server
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Logging On - Password Rules

Letters Numbers Easy to remember 3-8 Characters long No 3 Characters can be the same Do not start with a ? or an ! Do not use previous 5 passwords
SAP AG and The Rushmore Group, LLC 2006 65
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Logging On - Language
SAP supports multi-national character sets and languages on the same system, at the same time Default languages are English and German
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Version 3.2
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Logging On - Data Record

Table Client 400 400 400 410 410 410 User STEVE BOB JERRY STEVE BOB JERRY Password ******** ******** ******** ******** ******** ******** Valid From 1/1/2000 1/1/2000 1/1/2000 1/1/2005 1/1/2005 1/1/2005 Valid To 12/21/2000 12/21/2000 12/21/2000 12/31/2008 12/31/2008 12/31/2008
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SAP R/3 System - Standard Features

Logging On SAP R/3 Screens Basics of Data Entry Working with Multiple Sessions Reporting On-line Help and System Messages Setting User Defaults Logging Off
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SAP R/3 Screens - The Topics

Easy Access desktop System menus System navigation Transaction name Transaction icons Transaction work area Status messages
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69
Version 3.2
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SAP R/3 Screens - Easy Access Desktop

System Menus System Navigation Transaction Name Transaction Icons Transaction Work Area
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Status Messages
70
SAP R/3 Screens - Easy Access Desktop
Favorites Folder and Sub-Folder Transactions
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71
SAP R/3 Screens - System Menus
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Version 3.2
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SAP R/3 Screens - System Navigation
Save Back Exit Canc el Print Find/E xpand icons
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Create te a new se a des ktop s ssion hortc ut
Comm
Scroll ic
Crea
Help icon Optio ns
Enter
and F
ons
ield
73
SAP R/3 Screens - Transaction Name
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SAP R/3 Screens - Transaction Name
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Version 3.2
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SAP R/3 Screens - Transaction Icons

Screen or view dependant
(e.g. materials master will differ from sales order entry will differ from the main menu)
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SAP R/3 Screens - Transaction Work Area
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SAP R/3 Screens - Status Messages

System Message
System Information
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Version 3.2
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SAP R/3 Transaction Screen
Tabs
Header
Line Item Detail Line Item
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SAP R/3 Master Data Screen

Tabs
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Version 3.2
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Basics of Data Entry

Using menus Using transaction codes System > status Using /n Multiple sessions Using /o
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Types of entry fields Moving between fields Radio buttons and check boxes Possible entry fields Match-codes Saving data Canceling data
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Save Cancel
Tab Check Box
Entry (Input) Field
Pull Down
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Version 3.2
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There are three types of entry fields:
Required Default entry Optional entry field
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Working with Multiple Sessions

Opens another session
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Version 3.2
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Working with Multiple Sessions

An SAP session is a window in which the user may perform a particular task Users may have up to six sessions open at one time
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Reporting
Three basic steps to running a report
Access the report Enter selection criteria Execute the report
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90
Version 3.2
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Reporting
Access Selection
Execution
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91

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On-line Help
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93
Version 3.2
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On-line Help
Help on screen fields - F1
Extended help Reference information Technical information
Displaying possible entries - F4 Using the Help menu

Extended help R/3 library Getting started
On-line Help
F1 - Key
F4 - Key
System Messages
E = Error
An invalid entry has been made The cursor moves to the field where the error has occurred
W = Warning
A possible error has been made The user can continue without changing
I = Information
Feedback from the system
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Version 3.2
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January 2006
Setting User Defaults
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98

January 2006
Version 3.2
January 2006
Logging Off
System > logoff
Exit button Control box
For security purposes it is important to log off SAP whenever you leave your PC. Your user name is linked with all transactions you perform providing an audit trail.
BPI I
Exercise Roadmap
Check Availability
Purchase Requisition
Purchase Order
Run MRP
Procurement Process
Sales Order Entry
Goods Receipt
Sales Order Process
Pick Materials
Invoice Receipt
Payment to Vendor Receipt of Payment Post Goods Issue

January 2006
Invoice Customer
Sales Process Exercise Part 1

Order-to-Cash
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Enterprise Client / Server Controlling Integrated Business PS Project Solution PM WF System Workflow
Human Resources
Industry Solutions
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103
Integration
Sales Order Process

(Order-to-Cash)
Pack Materials
Post Goods Issue

104
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Unit 2, Group 1 Exercises

1. 2. 3. 4. 5. 6. Logging on the SAP System Create Vendor Master Create Material Master Create Customer Master Create Customer Quotation Create Sales Order with Reference to Customer Quotation 7. Check Stock Status
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105
Version 3.2
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Procurement Process Exercise

Procure-To-Pay
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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107
Integration
Procurement Process
(Procure-to-Pay)
3-Way Match Payment to Vendor Invoice Receipt
Notify Vendor
Vendor Shipment Goods Receipt

108
January 2006
Version 3.2
January 2006

8. Run Materials Requirement Planning Single Item, Single Level 9. Convert Purchase Requisition to Purchase Order 10. Create Goods Receipt 11. Create Invoice Receipt from Vendor 12. Post Payment to Vendor
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Sales Process Exercise Part 2

Order-to-Cash
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Version 3.2
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Integration
Sales Order Process

(Order-to-Cash)
Pack Materials
Post Goods Issue

112
January 2006

13. 14. 15. 16. 17. 18. 19. 20. Create Delivery Note for Sales Order Check Stock Status Pick Materials on Delivery Note Post Goods Issue Check Stock Status Bill Customer Post Receipt of Customer Payment Review Document Flow
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114
Version 3.2
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Unit 3
Financial and Managerial Accounting (FI and CO)
- Overview -
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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116
Controlling (CO)
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Version 3.2
January 2006
Controlling (CO)
Unit 3, Part 1 Overview

Goals and Objectives Target Audience Components
Managerial Accounting (CO)

Goals and Objectives Target Audience Components
Comparisons and Relationships

SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Goals and Objectives

Financial accounting is designed to collect all of the data needed to support the preparation of financial statements for external users
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Version 3.2
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Target Audience
Internal
Executives Senior Management Accounts Administration Staff Employees
External
Legal Authorities Banks Auditors Shareholders Insurance Taxing Authorities Media Financial Analysts
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Components of Financial Accounting
Accounts Receivable
General Ledger Accounts Payable
Fixed Assets Banks Special Purpose Ledger
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Controlling (CO)
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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123
Version 3.2
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Controlling (CO)
Goals and Objectives

Managerial accounting is designed to collect data for the preparation and analysis of reports for use by internal users
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Controlling (CO)
Target Audience
Executives Senior Management Department Managers Controllers Cost Accountants
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Controlling (CO)
Components of Managerial Accounting

Internal Orders Cost Element Acct Profitability Analysis Activity Based Costing
Controlling (CO)
Cost Center Acct
Product Cost Controlling
Profit Center Acct
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Version 3.2
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Controlling (CO)
Comparison
External Accounting Balance Sheet Profit & Loss Statement Legal Requirements Standards
Managerial Accounting
Cost Center Accounting Profit Center Accounting Product Costing Profitability Analysis Different Valuations Flexibility
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Controlling (CO)
Comparative Reporting
Liquidity Calculation Retained Earnings Report

External Reporting
Balance Sheet
Income Statement
Managerial Accounting (CO)

Internal Reporting
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Product Costs Reports
Cost Center Reports Profit Center Reports Profit Margin
128
Controlling (CO)
Interrelated and Closely Connected

(FI) Transaction Document Amount G/L Account # Cost Center 1900012432 (CO) Transaction Document Cost Center Cost Element 20000657
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Income Statement
Supplies Exp. 100 Bank
Bal. Sheet
100
Cost Center
100
Controlling
Version 3.2
January 2006

- The Basics -
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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131
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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132
Version 3.2
January 2006

General Ledger Chart of Accounts Balance Sheet
Assets Liabilities Equity
Income Statement
Revenues Expenses
General Ledger
The General Ledger provides a complete record of all "acceptable" business transactions from the viewpoint of an accountant An acceptable business transaction has the following traits
Affects the financial position of the entity Measurable in a currency Affects at least two accounts Assets = Liabilities + Equity Debits = Credits
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Chart of Accounts
The foundation for the General Ledger is the Chart of Accounts A Chart of Accounts contains a complete list of all of the accounts utilized in the General Ledger for a given company Financial accounting reports are prepared from the balances contained in the General Ledgers Chart of Accounts
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Version 3.2
January 2006
Chart of Accounts (continued)

There are five types of accounts contained in a Chart of Accounts
Assets Liabilities Equity Revenues Expenses
There are two primary accounting reports prepared from the General Ledger Chart of Accounts
Balance Sheet Income Statement
Balance Sheet Assets

Things of value that a company owns or controls that accountants have agreed to measure in monetary terms. Examples of these accounts include:
Cash Accounts receivables Plant and equipment Inventory
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Balance Sheet Liabilities

Things that a company owes or must provide services in order to settle that accountants have agreed to measure in monetary terms. Examples of these accounts include:
Accounts payable Notes payable Bonds payable Unearned revenue
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Version 3.2
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Balance Sheet Equity

Equity is simply the mathematical difference between assets and liabilities. Includes the monetary amounts collected with respect to all preferred and common stock transactions, the aggregate net income reported since organization of the company, and a reduction for dividends that have been paid to stockholders.
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Balance Sheet
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140
Income Statement Revenues

The monetary amounts collected from customers in settlement for goods purchased from our company or services rendered by our firm to them during the current fiscal year.
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141
Version 3.2
January 2006
Income Statement Expenses

The monetary amounts paid to vendors in settlement for goods purchased by our company or services rendered to our firm by other companies during the current fiscal year.
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Income Statement
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- Organizational Structures -
Version 3.2
January 2006
FI
Org Data
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Organizational Data
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Integration

Organizational Structures
Client Company Chart of accounts Company code Credit control area
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Version 3.2
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Client
Highest hierarchical level in an SAP environment A complete database containing all the tables necessary for creating a fully integrated information system Master records are created at the client level
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Client
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Company
Consolidated financial statements are created at the company level A company can include one or more company codes All company codes must use the same chart of accounts and fiscal year Company is not required in the definition of an enterprise (optional)
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Version 3.2
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Client
Company
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Company Code
A legally independent entity The smallest organizational unit for which accounting can be carried out Business transactions are processed at this level Accounts are managed at this level Legal financial statements, such as the balance sheet and the income statement, are generated at this level using the General Ledger balances
Client
Company
Company Code
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Version 3.2
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Chart of Accounts
A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are contained in the General Ledger A chart of accounts must be assigned to every company code in order to create the General Ledger for that company Several company codes can use the same chart of accounts
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United States Chart of Accounts
Canadian Chart of Accounts
Company Code 010

January 2006
Company Code 038
Company Code 110
Company Code 117

155
Client Chart of Accounts
Company
Company Code
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156
Version 3.2
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Fiscal Year Variant

Specifies the accounting fiscal year for reporting purposes Special periods are created to aid in the quarterly or year-end adjusting process completed prior to preparing financial statements A single fiscal year variant is assigned to each company code
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Client Chart of Accounts Fiscal Year Variant
Company
Company Code
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158
Credit Control Area

An organizational unit or area of responsibility created to control customer credit limits A company code is assigned to one and only one credit control area Multiple company codes can be assigned to one credit control area
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Version 3.2
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Client Chart of Accounts Credit Control Area Company Code

Company
Fiscal Year Variant
Client Chart of Accounts Credit Control Area Company Code

Company
Fiscal Year Variant
Consolidation and Business Areas

Company
A company is an organizational unit in Financial Accounting which represents a business organization according to the requirements of commercial law in a particular country.
Business Areas
A unit in an enterprise that groups product and market combinations as homogeneously as possible for the purpose of developing unified business policy.
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Version 3.2
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GM Corp. Chart of Accts GMCorporate Credit CA
Client General Motors Corporate Fiscal Year Var.
Consolidation of Company Codes Chevrolet GMC Business Areas Cars Trucks Trucks
Cadillac
Cars Trucks
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Client 100
Credit Control Area Chart of Accounts
Pen Inc.
Fiscal Year Variant
Company Code
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- Rules -
Version 3.2
January 2006
Rules
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Integration

Rules
Account groups BS Balance Sheet Account Group PL Income Statement Account Group RA Reconciliation Account Group Field status variant Field status groups Fiscal year variant Tax version
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Account Groups
Chrt/accts CHRT CHRT CHRT Acct group BS PL RA Description Balance Sheet Income Sheet Reconciliation From 100000 400000 110000 To 399999 999999 310000
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Version 3.2
January 2006
So What is a Reconciliation Account?

Postings to sub-ledgers (such as accounts receivable or accounts payable) are automatically concurrently posted to the corresponding reconciliation account in the General Ledger In this way, the General Ledger is automatically updated and remains in balance with the customer and vendor individual account totals
Account Groups
Identifier that controls which fields must be entered when an account is created Determine a valid number interval for each of the groups (types) of General Ledger accounts that have common attributes Must be created before General Ledger Chart of Accounts master records can be created You must assign each account to an appropriate account group
Account Group BS
Account control Account management Document entry Bank/financial details Interest calculation Joint venture Account control
Currency Tax category Reconciliation account
Suppress
Req. entry
Opt. entry
Display
Version 3.2
January 2006
Field Status
Field status controls how the data will be entered for a field when an accounting master record is being used in a transaction Determining whether a field is required, optional, suppressed, or display only Field status controls are also relevant to a specific activity create, change, or display
Field Status Variant

Fld status group ZBSA ZEXP ZGRI ZRCN ZREV Text Balance Sheet Accounts Expense Accounts Material Management (GR/IR) Accounts Reconciliation Accounts Revenue Accounts
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Field status variant (V000) - Group ZBSA - Balance Sheet Acct. General data Additional account assignments Materials management Payment transactions Asset accounting Taxes
...
General Data
Assignment number Text Invoice reference
Suppress
Req. entry
Opt. entry
Display
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Version 3.2
January 2006
Integration

21. Create Company Code (C---) 22. Copy General Ledger Accounts to Company Code 23. Define Retained Earnings Account 24. Create Account Groups 25. Create Field Status Variant 26. Assign Company Code to Field Status Variant
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175
Integration

27. Assign Company Code to Chart of Accounts (C---) 28. Assign Company Code to Fiscal Year Variant (K1) 29. Create Credit Control Area (C---) 30. Assign Company Code to Credit Control Area 31. Assign Permitted Credit Control Area to Company Code 32. Open
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Version 3.2
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Unit 4 Materials Management (MM)

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MM
Org Data
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179
Organizational Data
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Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
181
Integration
Unit 4 Overview
Unit Concept Purchasing and SAP R/3 Procurement Process Organizational Structures Organizational Relationships Warehouse Management
January 2006
182
Unit Concept
The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization In this unit the structure required for the purchasing process is presented
January 2006
183
Version 3.2
January 2006
Integration
Purchasing and SAP R/3

The purchasing process exists in the Materials Management (MM) module of SAP R/3 and Finance (FI) module The structure includes elements of the Materials Management (MM) and Finance (FI) modules Master data for the purchasing process exists in the (MM) and (FI) modules The purchasing process can and does interface with the Production Planning (PP), Warehouse Management (WM), and Quality Management (QM) modules
Components of Materials Management

Valuation Logistics Invoice Verification Purchasing Material Master Inventory Mgmt. Physical Inventory MRP Service Entry Sheet Service Master Product Catalog Foreign Trade/ Customs
January 2006
185
Integration
Procurement Process
(Procure-to-Pay)
Notify Vendor

186
January 2006
Version 3.2
January 2006
Integration
Organizational Structures
Plant Valuation Area Storage Locations Purchasing Organizations Purchasing Groups
January 2006
187
Integration
Plant
Lowest valuation area Organizational level where Material Requirements (MRP) runs Generally used to describe a production site, a distribution center or centralized warehouse May be a physical or logical unit
January 2006
188
Integration
Valuation Area
The valuation area determines at which level a material is valuated (inventory value is established) SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level
January 2006
189
Version 3.2
January 2006
Storage Location
Subdivision of a plant Where materials are managed (inventory management)
Raw Materials Maintenance, Repair, and Other (MRO) Finished Product
May be a physical or logical unit
January 2006
190
Organizational Relationships
Plant/Storage Location
Plant P001
Storage Location 10 - Inventory
Storage Location 20 - Quality
January 2006
191
Integration
Purchasing Organization
Organizational unit responsible for the procurement of materials and services. SAP requires that purchasing organizations be assigned at the plant level A purchasing organization can be assigned to more than one plant A purchasing organization can be assigned to a company code
Version 3.2
January 2006
Plant/Purchasing Organization (1)
Plant P001
Purchasing Organization P001
One plant multiple purchasing organizations

Organizational Relationships (continued)

Plant P001 Plant P002
Each plant has its own purchasing organization


Plant P001
Plant P002
One purchasing organization for multiple plants

Version 3.2
January 2006

Company Code C001 Plant P001
Company Code C002 Plant P002
One purchasing organization for multiple company codes

Purchasing Group
Responsible for specified purchasing activities Often used to identify individual buyers Used for reporting
January 2006
197
Purchasing Organization/Purchasing Group
Purchasing Group 001
January 2006
198
Version 3.2
January 2006
Organizational Structure
Company Code C001
Plant P001
Storage Location 10 - Inventory
Storage Location 20 - Quality
January 2006
199
Integration
Warehouse Management
Not required for the purchasing functionality of SAP R/3 A separate module in the SAP R/3 environment Many functions and elements can be performed outside of the module
January 2006
200
Integration
Warehouse Management Elements

Receiving, identifying and sorting goods Placing goods into storage bins Taking inventory Monitoring and inspecting goods in storage Preplanning distribution of materials Picking and accumulating orders Packaging, loading and shipping goods
Version 3.2
January 2006
Integration
Warehouse Management Relationships

Inventory Management (MM)
Storage Loc. 10 Company C001
Company Code Plant Storage Loc.
Plant P001
Plant P002
Storage Loc. 20
Storage Loc. 30
Storage Loc. 40
Warehouse 1
Warehouse 1
Warehouse Aisle
Aisle 1 Rack 1
Aisle 2 Rack 1
Aisle 3
Aisle 1 Rack 1
Aisle 2
Storage Rack Quantity

202
Warehouse Management (WM)

January 2006
ABC123 SAP AG and The Rushmore Group, LLC 2006
Integration
Unit 4 Exercises
33. Define Valuation Area 34. Define Plant (P_ _ _) 35. Define Storage Locations for Inventory and Quality 36. Define Purchasing Organization 37. Create Purchasing Groups 38. Assign Plant to Company Code 39. Assign Purchasing Organization to Company Code 40. Assign Purchasing Organization to Plant 41. Setup Parameter ID
January 2006
204
Version 3.2
January 2006
Unit 5 Financial Accounting (FI)

- Master Data -
Master Data
FI
January 2006
206
Master Data
January 2006
207
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
208
Integration
Unit 5 Overview
General Ledger Master Data
Chart of Accounts Data Company Code Data Reconciliation Accounts Accounts Receivable Accounts Payable Goods Receipt/Invoice Receipt
General Ledger Account Balances
January 2006
209
General Ledger Master Data

A unique master record is created for each General Ledger account General Ledger accounts are created at the client level Business transactions are posted to the portfolio of General Ledger accounts made available to a company through the assignment of a specific Chart of Accounts
January 2006
210
Version 3.2
January 2006
General Ledger Master Data (continued)

Contains control information for:
Data entry Data processing
Specifies the account type:

Balance sheet Income statement
January 2006
211
General Ledger Organization of the Data

Contains one or more Chart of Accounts specific information areas Contains one or more Company Code specific information areas In this way, a General Ledger master account can be shared by several combinations of Charts of Accounts and Company Codes
January 2006
212
General Ledger Chart of Accounts Data

Account number Name of the Chart of Accounts Account group provides information that controls the creation of the master record for a company code
Account number Chart of accounts
100101 CPEN
BS Account group P&L statement acct type Balance sheet account
January 2006
213
Version 3.2
January 2006
General Ledger Company Code Data

Local currency Foreign currency Tax category Open item management Line item display Sort key
January 2006
214
General Ledger Company Code Data (continued)

Local currency
Specify the currency in which the account is to be posted Transaction figures are always updated and displayed in local currency
January 2006
215

Foreign currency
Specify the alternative currency in which the account is to be posted It is possible to select up to two alternative currencies Transaction figures will be updated in both the local and alternative currencies
January 2006
216
Version 3.2
January 2006

Tax category
Specify the type of tax on purchase and sales (input or output taxes) that can be posted to the account If the account is not tax relevant, do not make a specification in this field
January 2006
217

Open item management
Indicates that the account is subjected to an affirmative clearing process involving the matching of debits to credits with the purpose of closing each individual line item For example, reconciliation accounts You can only archive an accounting document if all of its individual line items have been cleared
January 2006
218

Line item display
Select if it is desirable to view all the debit and credit detail for the account Remember that when posting items to such accounts and displaying line items, additional storage space and system time are required
January 2006
219
Version 3.2
January 2006

Line item display should not be used for the following accounts:
Reconciliation accounts Accounts that have a summation function and are analyzed by another application such as revenue or stock accounts Output and input tax accounts, since tax information is required only in connection with the document
January 2006
220

Sort Key
Necessary when line item display is selected Determines the data field that will be used to sort the line items Posting date Document date Cost center
January 2006
221

Reconciliation accounts
When you post to a sub-ledger, the system automatically concurrently posts to the corresponding reconciliation account in the general ledger In this way, the general ledger is automatically updated and remains in balance with the individual account totals
January 2006
222
Version 3.2
January 2006

General Ledger
Debit Credit
$$ $$
General Ledger Reconciliation Accounts A/R, A/P, GR/IR
A/R
A/P
GR/IR
Debit Credit
Debit Credit
Debit Credit
$$ $$
$$ $$
$$ $$
Subsidiary Ledger Accounts A/R, A/P, GR/IR

223
January 2006
Financial Accounting (FI) Integration
Accounts Receivable Reconciliation Account

Customer 189 Customer 142
100
300
Accounts Receivable Reconciliation
950
Customer 135 Customer 123
400
150
January 2006
224
Accounts Receivable Integration

MM
Materials Mgmt.
Goods Issue
Sales Order
SD
FI
FI
CGS Decrease to Inventory
FI
Revenue Increase to A/R Income Statement Balance Sheet
January 2006
225
Version 3.2
January 2006
Accounts Payable Reconciliation Account

Vendor 100234 Vendor 100435
200
250
Accounts Payable Reconciliation
950
Vendor 100621 Vendor 100846
100
300
January 2006
226
Accounts Payable Integration

MM
Materials Mgmt.
Goods Receipt
Invoice Receipt
MM
Materials Mgmt.
FI
FI
Increase to Inventory Increase to GR/IR
FI
Increase to A/P Decrease to GR/IR
Balance Sheet
January 2006
227
Line Item Display

Account number 100999 Bank Account Company code C999
Period C/f bal. Period 1 Period 2 Period 1 Doc. no. 1500000013 1500000014 100000012 1400000342
January 2006
Debit 5,250.00 25,000.00
Credit 3,540.00 15,000.00
DC bal. 1,710.00 10,000.00
Balance 750,000.00 751,710.00 761,710.00
DT KZ KZ SA DZ
Doc.date 01/05/04 01/06/04 01/08/04 01/14/04
Currency USD USD USD USD
Amount 1,800.00 990.00 750.00 5,250.00

228
Version 3.2
January 2006

42. 43. 44. 45. 46. 47. 48. 49. Create Retained Earnings Account Create Bank Account Create Common Stock Account Create Trading Goods Inventory Account Create Operating Supplies Inventory Account Create Output Tax Account Create Input Tax Account Create Goods Receipt / Invoice Receipt Reconciliation Account 50. Create Accounts Payable Reconciliation Account 51. Create Accounts Receivable Reconciliation Account

52. Create Trading Goods Consumption Expense Account 53. Create Operating Supplies Expense Account 54. Create Utilities Expense Account 55. Create Purchase Price Difference Expense Account 56. Create Information Technology Expense Account 57. Create Miscellaneous Expense Account 58. Create Cost of Goods Sold 59. Run General Ledger List of Accounts Report
January 2006
231
Version 3.2
January 2006

- Master Data and Rules -
Master
MM
January 2006
Master Data
January 2006
Rules
Data
MM
233
234
Version 3.2
January 2006
SD MM MM
Sales and Sales and Distribution Distribution Materials Materials Mgmt. PP Mgmt. Production SM Planning Service Mgmt.
FI
CO AM
R/3
IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Enterprise Client / Server Controlling Integrated Business PS Project Solution PM WF System
HR
Human Resources
Workflow
Industry Solutions Solution s
January 2006
235
Integration
Unit 6, Part 1 Overview (Master Data)

Unit Concept Procure-to-Pay Process Vendor Master Data Purchasing Information Record
January 2006
236
Unit Concept
The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization Master data and rules required for the purchasing process is presented
January 2006
237
Version 3.2
January 2006
Integration
Procurement Process
(Procure-to-Pay)
Notify Vendor

238
January 2006
Integration
Master Data General

Business rules and supportive information are stored in master data records Each master data record is unique in name or number Internal or external number ranges are possible Usually created or converted (legacy system) in the beginning Maintained by numerous organizations
Integration
Master Data General (continued)

Vendor master records are maintained by both accounts payable (A/P) and purchasing Material master records are maintained by purchasing, sales, production, accounting, etc. Purchasing information records are maintained primarily by purchasing
January 2006
240
Version 3.2
January 2006
Integration
Vendor Master Organization of the Data

General Data
ta: l Da era Gen ddress A
Pu rc ha Da sing ta
Company Code Data Financial Accounting (FI) Purchasing Organization Data (MM)
Vendor 10001
January 2006
241
Integration
Vendor Master Data

A master record must be created for every vendor General data, Company Code data (Financial Accounting - FI), and Purchasing Org data (Material Management - MM)
General data Address Control data Payment transactions
January 2006
Company code data Account management Payment transactions

Purch. org data Purchasing data Partner functions
242
Integration
Vendor Master
Includes all data necessary for processing business transactions and corresponding with vendors Information is shared between the accounting and purchasing departments
January 2006
243
Version 3.2
January 2006
Integration
Vendor Master Typical Screens

Address Control Payment Transactions Accounting Information Correspondence Purchasing Data Partner Functions
January 2006
244
Vendor Master General Data Address
General Data Address Address Vendor Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail
Integration
Vendor Master General Data Control Data

Account Control
Customer Authorization Trading partner Group key Tax codes Fiscal address Country code City code
Tax Information
Reference Data / Area

International locator number Industry Transport zone
Version 3.2
January 2006
Vendor Master General Data Payment Transactions

Bank Details
Bank Key Bank Account Account Holder Partner Bank Type
Payment Transactions
Alternative Payee Instruction Key
January 2006
247
Vendor Master Company Code Accounting Information

Accounting Information
Reconciliation Account Sort Key Release Group
Interest Calculation
Interest Calculation Indication Interest Calculation Frequency
Withholding Tax
Withholding Tax Code Exemption Number
Vendor Master Company Code Payment Transactions

Payment Data
Payment Terms Tolerance Group Check Double Invoice Check Cashing Time
Automatic Payment Transactions

Payment Methods Alternate Payee Payment Block
Invoice Verification
Tolerance Group
Version 3.2
January 2006
Vendor Master Company Code Corr. Accounting

Dunning Data
Dunning Procedure Dunning Block Dunning Recipient Date of Legal Dunning Procedure
Correspondence
Local Processing Accounting Clerk Account With Vendor
Vendor Master Purch. Org. Data Purchasing Data

Conditions Order Currency Terms of Payment Incoterms Minimum Order Value Sales Data Salesperson Control Data Acknowledgement Required Returns to Vendor Automatic Purchase Order Default Data Material Purchasing Group Planned Delivery Time
January 2006
Vendor Master Purch. Org. Data Partner Functions

Partner Functions
Partner Function Partner Name
January 2006
252
Version 3.2
January 2006
Vendor Master Purch. Org. Data Account Group

Vendor masters are assigned to a vendor account group Through field status maintenance, vendor account groups can be setup for one-time vendors, regional vendors, and internal vendors The vendor account group controls both type and number range assignment for vendors
Purchasing Info Record

The purchasing info record provides continuously updated information about the relationship of a specific material with a specific vendor Order unit, price, price changes, tolerances, reminder infos, historic data, statistics, texts Choice of automatic or manual updating
January 2006
254
Integration
Source List
The source list stores information about where to acquire a given material for a given period of time It specifies whether this source should be used by Materials Requirement Planning (MRP)
January 2006
255
Version 3.2
January 2006
Integration

60. Create Vendor Master Accounting Record for Promotions, Ltd. 61. Create Vendor Master Purchasing Record for Promotions, Ltd. 62. Create Vendor Master Record Centrally for Slick Pens 63. Create Vendor Master Record Centrally for Premier Pens 64. Create Vendor Master Record Centrally for Boxes, Inc.
January 2006
256
Integration
Unit 6, Part 2 Overview (Rules)

Fiscal Period Plant Parameters MRP
January 2006
257
Rules
January 2006
258
Version 3.2
January 2006
Integration
Fiscal Period
In order to execute any material postings, the current fiscal period has to be activated By initializing the company code for material management, the first major integration between Financial Accounting (FI) and Logistics is completed
January 2006
259
Plant Parameters
Material Requirements Planning (MRP) controllers
Individuals responsible for running and maintaining Material Requirements Planning data and reports
Negative stock allowance

If a material is allowed to go negative for inventory stock
January 2006
260
Plant Parameters (continued)

Purchasing
Special purchasing rules External purchasing only settings
Planned orders
Rescheduling Conversion to purchase requisitions
January 2006
261
Version 3.2
January 2006
Plant Parameters (continued)

Document number ranges
Planned orders Purchase requisitions Material Requirements Planning (MRP) lists Reservations
January 2006
262
Integration
Material Requirements Planning

Detailed planning level Primary Functions
Monitor inventory stocks Determine material needs Quantity Timing Generate purchase or production orders
January 2006
263
Integration
Materials Requirements Planning (continued)

Integrates Production Planning (PP) module with the Materials Management (MM) module Prerequisites for Materials Requirement Planning (MRP)
Activate Material Requirements Planning (MRP) for a plant Material Master created Material Requirements Planning view Material Requirements Planning type
January 2006
264
Version 3.2
January 2006
Integration
Material Requirements Planning Basic Process

Exploding the Bill of Material (if using production) Netting Out Inventory Lot Sizing Time-phasing requirements
January 2006
265
Integration
Material Requirements Planning Net Requirements

Material Requirements Planning (MRP) calculates the quantity of material needed, if any, based on
Sales Orders Material Reservations Repair Parts Inventory Purchase Orders Etc
January 2006
266
Integration
Material Requirements Planning Net Requirements (continued)

If adequate inventory is not available to meet Material Requirements Planning (MRP) needs then the system generates
Planned Production Orders Planned Purchase Orders
January 2006
267
Version 3.2
January 2006
Integration
Material Requirements Planning Lot Sizing

Static
Based on fixed values in the Material Master
Periodic
Groups net requirements together from multiple periods
Optimum
Calculates the optimum lot size for a several periods of net requirements
January 2006
268
Integration

65. 66. 67. 68. Display Material Groups Initialize Fiscal Period for Company Code Maintain Plant Parameters for Planning Activate Materials Requirements Planning
January 2006
269
Unit 6, Part 3 Overview (Material Master)

Industry Sector Material Type Maintenance Features Organizational Levels Primary Views
January 2006
270
Version 3.2
January 2006
Material Master Industry Sector

Records are grouped according to industry sector and material type Determines the industry specific data that will appear on the master record
January 2006
271
Material Master Material Type

Material types group materials with the same attributes Material type information determines:
What views are maintained Whether internal or external procurement is allowed If changes in material quantity are updated Which general ledger accounts are updated
January 2006
272
Material Master Material Types

Standard material types are used in all industries. ROH: Raw Materials
Purchased externally only No sales view HAWA: Trading Goods Always purchased externally Sold without any change to the material No manufacturing views exist
January 2006
273
Version 3.2
January 2006
Material Master Material Types (continued)

FERT: Finished Products
Are produced internally Normally no purchasing views exist
January 2006
274
Material Master Additional Material Types

HIBE: VERP: LEER: KMAT: ERSA: DIEN: Operating Supplies Customer returnable packaging Empty containers Configurable material Spare parts Services
January 2006
275
Material Master Additional Material Types (continued)

NLAG: Non-stock, non-valuated material UNBW: Non-valuated, stocked material FHMI: Production resources/tools WETT: Competitive products PROD: Product group IBAU: Maintenance assembly (Plant Maintenance)
Version 3.2
January 2006
Material Master Maintenance

Defaults - speeds entry of data by using the most frequently used field values (plant, purchasing organization, etc.) Reference Material - speeds entry of data by copying data from existing material master
January 2006
277
Material Master Maintenance (continued)

Profiles - speeds entry of data by copying standard data created in a profile into a selected view Materials Requirements Planning (MRP) Collective entry of storage location data speeds creation of multiple storage locations
January 2006
278
Material Master Data

Material master data can be related to all organizational levels General information of a material (description, number, base unit of measure)
Has to be related to the highest level of organization - the client
January 2006
279
Version 3.2
January 2006
Material Master Levels

Client
Description Units of measure Material number Engineering data
Plant
Planning data Manufacturing data Purchasing data
January 2006
280
Material Master Levels (continued)

Storage Location
Stock quantities
January 2006
281
Material Master Views

Basic data 1, 2 Classification Sales: sales organization data 1, 2 Sales: general/plant data Sales text Purchasing Purchase order text Forecasting
January 2006
Version 3.2
January 2006
Material Master Views (continued)

MRP 1, 2, 3, 4 Work scheduling Storage Warehouse management Quality management Accounting 1, 2 Costing 1, 2
January 2006
283
Material Master Material Management

Basic Data Purchasing MRP 1,2,3 General Plant Data/Storage Accounting 1
sin cha Pur iew V g
MR P Vie 1 w
Barrel Pen
January 2006
284
Material Master Basic Data

General data Basic Unit of Measure
Unit of measure in which stocks of the material are managed
Material Group
Key that you use to group together several materials or services with the same attributes
Division
Used to determine the sales area and the business area for a material, product, or service
January 2006
285
Version 3.2
January 2006
Material Master Basic Data (continued)

Dimensions/EANs
Gross weight Used to check storage capacity in warehouse Net weight Weight excluding packaging and extras this is needed for sales and distribution
Weight Unit
Unit of Measure for weight
Volume
The space that the material occupies per unit of volume
January 2006
286
Material Master Purchasing View

General Data Order Unit
The unit of measure in which a company purchases the product
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities.
Purchasing Values Purchasing Value Key

Define the reminder days and tolerance limits for purchasing
January 2006
287
Integration
Material Master Plant Data/Storage 1

General Data Container Requirements
Define the regulations that govern which type of container the material must be stored and shipped in
Storage Conditions
Defines the conditions on how a material must be stored or warehoused
Shelf Life Data Minimum remaining shelf life

Minimum time the material must keep upon goods receipt for the goods receipt to be accepted by the system
Total Shelf Life

Period of time the material will keep in total, from the date of production or receipt to the shelf life expiration date
Version 3.2
January 2006
Material Master MRP 1

General Data Purchasing Group
The buyer(s) who are responsible for certain purchasing activities
MRP Procedures MRP Type

Determines whether and how the material is planned
Reorder Point
If stock falls below this point, the system is flagged to
create a planned order MRP Controller

The person(s) responsible for the material planning
January 2006
289
Material Master MRP 1 (continued)

Lot Size Data Lot Size
The lot sizing procedure to calculate the quantity to be produced or procured
Minimum Lot Size

The smallest order quantity
Fixed Lot Size

The quantity to be ordered
January 2006
290

Scheduling
Planned Delivery Time Number of calendar days needed to obtain the material Scheduling Margin Key Used to determine the floats required for scheduling
Net Requirement Calculation

Safety Stock Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period
January 2006
291
Version 3.2
January 2006

Availability Check
Specifies whether and how the system checks availability and generates requirements for materials planning
January 2006
292
Material Master Accounting 1

Current Valuation
Valuation Class Allows the stock values of materials of the same material type to be posted to different G/L accounts. Allows the stock values of materials of different material types to be posted to the same G/L account. Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (Material Movements) Price Unit Number of units to which the price refers
January 2006
293
Material Master Accounting 1 (continued)

Current Valuation
Price Control Indicator The price control used to valuate the stock of a material (e.g, Standard or Moving Average Price) Standard Price The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period Moving Average Price The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned
January 2006
294
Version 3.2
January 2006
Integration

69. Define Attribute of Material Types (Set Updating/Deselect Classification) 70. Create Material Master for Trading Goods 71. (Optional Exercise) Create Material Master for Operating Supplies
January 2006
295
January 2006
296
January 2006
297
Version 3.2
January 2006

- Rules -
FI
January 2006
Rules
January 2006
Rules
299 300
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
301
Unit 7 Overview
Posting Periods Tolerance Groups for Account Postings Accounts Payable Settlement Document Numbers
January 2006
302
Posting Periods
Before it is possible to post documents, it is necessary to define posting periods Fiscal years are divided into one or more posting periods Each posting period is delimited by both a start and finish date A common division of a fiscal year involves defining 16 posting periods -- 12 months and 4 quarter ending posting periods
Version 3.2
January 2006
Tolerances Groups for Account Postings

Internal control amount limits that serve to define the maximum authorization levels for your employees
Must be at least one entry for every company code Can be defined for an employee group with employees being assigned to a given group to effect the control Can be undefined at the group level meaning that the control is effective for everyone who is not a member of a group
January 2006
304
Tolerances Groups for Account Postings (continued)

Internal control amount limits that serve to define the maximum authorization levels for your employees with respect to:
A single transaction A customer or vendor account line item Discount percentage granted to a line item Payment differences that can be accepted in settlement of an account (e.g., accounts payable)
January 2006
305
Accounts Payable Settlement

Purchase Order Payment Program Invoice Receipt
Debit Credit
Verification
Goods Receipt
January 2006
306
Version 3.2
January 2006
Accounts Payable Settlement (continued)

Select payment method and bank Select items for payment Calculate the payment amount, taking account of cash discount periods Post the payment document Print payment medium
January 2006
307
Document Numbers
All posted transactions must have a unique number assigned to it Usually these numbers are system generated The numbers serve to specifically identify the business content of a transaction so that it may be recalled at a later time The actual system stored document number includes information respecting the year, date, and company codes
Document Numbers (continued)

Before any documents can be posted to a company or company code, there must be a number range assigned to the document type New transaction document number ranges must be created at the start of each new fiscal year
January 2006
309
Version 3.2
January 2006
Unit 7 Exercises
72. Define Posting Periods Variant 73. Open and Close Posting Periods 74. Assign Posting Periods Variant to Company Code 75. Create Tolerance Groups for Account Postings 76. Setup Payment Program 77. Create Tolerance Groups for Accounts Receivable and Accounts Payable 78. Create Financial Accounting (FI) Document Numbers
January 2006
310
January 2006
311
January 2006
312
Version 3.2
January 2006

- Transactions -
January 2006
314
SD MM PP
Sales and Distribution Materials Mgmt. Production SM Planning Service Mgmt.
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solution s
January 2006
315
Version 3.2
January 2006
Transaction Data
January 2006
316
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
January 2006
317
Unit 8 Overview
Document Principles Document Types Posting Keys
January 2006
318
Version 3.2
January 2006
Document Principles
Each completed accounting transaction writes data to the database and creates a unique electronic document Each document contains information such as:
Responsible person Date and time of the transaction Commercial content including company codes
January 2006
319
Document Principles (continued)

An accounting document captures the entire transaction in a manner that facilitates recall for reporting purposes It remains as a complete unit in the system until archived Once created, a document can not be deleted from the database
January 2006
320

The SAP R/3 document principle provides a solid framework for a strong internal control system Audit trails allow an accountant to begin with an account balance on a financial statement and trace through the accounting records to the transactions that support the account balance or to trace individual transactions to the effected account balance(s) on a financial SAP AG and statement
January 2006 The Rushmore Group, LLC 2006 321
Version 3.2
January 2006

Each posted accounting document has a header
January 2006
322

Each posted accounting document has at least two lines (e.g., debit and credit)
January 2006
323
Document Types
A way to categorize different transactions
Many different document types are supplied in the system
Document types are associated with number ranges

All documents of the same document type are stored in the system by document number
Determine the type of account that can be posted to

Version 3.2
January 2006
Document Types (continued)

SA General ledger account documents DR Customer invoices DG Customer credit memos DZ Customer payments KR Vendor invoices KG Vendor credit memos KZ Vendor payments KN Vendor net invoices and credit memos
January 2006
Posting Keys
Determine whether the item to be posted is a debit or a credit Determine the type of account that can be posted
January 2006
326
Posting Keys (continued)

The posting key (PK) has a control function that pertains to the document line items. It determines the following: Account type for posting the line item Debit or credit posting of line items Field status for additional information
January 2006
327
Version 3.2
January 2006
Posting Keys (continued)

General Ledger 40 50
Common Posting Keys

2
Vendors 3
Assets 70 75 89
Material 99
Customers 0 1
January 2006
328
Unit 8 Exercises
79. 80. 81. 82. Review Document Types Post Initial Cash Investment by Owners Post Purchase of Operating Supplies Display and Review General Ledger Account Balances and Individual Line Items
January 2006
329
January 2006
330
Version 3.2
January 2006

- Transactions -
January 2006
332
Transaction Data
January 2006
333
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
334
Unit 9 Overview
Monthly Rent Cycle Invoice Receipt Invoice Entry Accounts Payable Settlement
January 2006
335
Monthly Rent Cycle
Rental Agreement
Invoice Receipt Accounts Payable
January 2006
336
Version 3.2
January 2006
Invoice Receipt
Invoice Receipt
January 2006
337
Financial Accounting (FI) Invoice Header Type of Transaction
Invoice Entry
Vendor Information
Line Items

Select payment method and bank Select items for payment Calculate the payment amount, taking account of cash discount periods Post the payment document Print payment medium
January 2006
339
Version 3.2
January 2006
Integration
Unit 9 Exercises
83. 84. 85. 86. Create Vendor Master Record for Landlord Create Rent Expense Account Create Invoice Receipt for Rent Expense Display and Review General Ledger Account Balances and Individual Line Items 87. Post Payment to Landlord 88. Display and Review General Ledger Account Balances and Individual Line Items
January 2006
340
January 2006
341
January 2006
342
Version 3.2
January 2006

- Rules -
MM
January 2006
Rules
January 2006
Rules
344 345
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
346
Unit 10 Overview
Reservations Tolerances
Purchasing Goods Receipt Invoice Receipt
Automatic Account Assignment Invoice Verification
January 2006
347
Reservations
A request to have a material ready for issue at a future date for a production order, sales order, etc. The purpose of a reservation is to ensure that a material is available when required and not assigned to another use
January 2006
348
Version 3.2
January 2006
Purchasing Tolerances
A tolerance limit is set for allowed variance before a warning/error message is displayed
Price variance Compares the price in the purchase order with the valuation price stored in the material master Maximum cash discount This tolerance limit is set to assure that cash discounts do not exceed allowable discounts
Goods Receipts Tolerances

Purchase order price quantity there are two tolerance levels maintained per item
The maximum percentage variance before a goods receipt postings is not allowed A percent variance that generates a warning message but allows posting
Moving average price variance the maximum allowable moving average price change allowed
January 2006
350
Integration
Invoice Receipts Tolerances

Many tolerance limits that can be configured for invoice receipts: price, quantity, and blanket purchase orders These tolerances include:

January 2006
Amount for item with or without order reference Form small differences automatically Percentage Over/Under Quantity Variance Exceed amount: quantity variance Blanket purchase order value and time limit Price variance
Version 3.2
January 2006
Integration
Automatic Account Assignment

Automatic account assignment is created to avoid manual postings of financial transactions which follow goods movements to reflect the values of transferred materials Automatic account assignment is used across all modules to keep track of the values of materials that are being consumed (e.g., production), or transferred into other valuation areas of the company
Integration
Automatic Account Assignment (continued)

Automatic account assignment is a set of rules and master data which enable the financial tracking of logistics movement
January 2006
353
Integration
Automatic Account Assignment Components

Components of Automatic Account Assignment
Chart of Accounts Valuation Grouping Code Transaction Key Modifier for Transaction Key Valuation Class
January 2006
354
Version 3.2
January 2006
Integration
Automatic Account Assignment Valuation Grouping Code

Valuation grouping code - groups valuation areas together
Example: valuation area is plant, five plants exist in the company, all five plants use the same accounts. Multiple valuation groups are possible
January 2006
355
Integration
Automatic Account Assignment Valuation Grouping Code

Grouping Code G001 Plant P001 Grouping Code G002 Plant P004
Plant P002
Plant P005
Plant P003
January 2006
356
Integration
Automatic Account Assignment Transaction Keys

Transaction Keys
The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system. The transaction keys are defined in the system.
January 2006
357
Version 3.2
January 2006
Integration
Automatic Account Assignment Transaction Keys

Transaction Keys
Inventory Postings BSX Offsetting Entry for Inventory Postings GBB Materials Management Small Differences DIF Cost (price) differences (PPV) PRD Goods receipt / inv. receipt clearing acct WRX
January 2006
358
Integration
Automatic Account Assignment Modifier

Modifier modifies the transaction key for various movement types
Blank Goods receipt from purchase order with account assignment VBR Goods issue to consumption VAX Goods issue to sales post to cost of goods sold AUF Goods receipt from a production order post to production settlement Etc. Many others
January 2006
359
Integration
Material Types & Valuation Classes

Account category reference:
Builds the link between material types and the valuation class(es)
Material Type ROH HIBE HAWA FERT Account Category Reference 0001 Reference for Raw Materials 0002 Reference for Operating Supplies 0005 Reference for Trading Goods 0009 Reference for Finished Products Valuation Class 3000/3001/3002/3003 3030/3031 3100 7920
January 2006
360
Version 3.2
January 2006
Integration
Material Types & Valuation Classes
Valuation Class 3000 (Steel)
Material Type ROH (Raw Material)
Acct Cat. Ref 0001 Raw Materials
Valuation Class 3001 (Paper)
Valuation Class 3003 (Plastics)
January 2006
361
Integration

Valuation Class 3100 (Trading Good) Valuation Class 3100 (Trading Good) Valuation Class 3100 (Trading Good)
Plant P001
Plant P002
Plant P003
Grouping Code G000
Grouping Code G000
Grouping Code G001
Goods Movement GBB (Goods Issue)
Account Modifier VBR (Iss. To Cons.)
Account 790000
January 2006 SAP AG and The Rushmore Group, LLC 2006
Account 790001
362
Integration

What: Where Valued: Why 1: Goods Movement Transaction Event Key Why 2: Additional Information Account Modifier Where Value is recorded: Chart of Accounts
Material Represented By: Points To: Valuation Class Material Type
Valuation Area Valuation Grouping Code Plant
G/L Account
What:
Where Valued:
Why 1:
Why 2: Issued to Consumption VBR
Where Value is recorded: Chart of Accounts C000 790000
BPEN000 Represented By: Points To: January 2006 3100 HAWA
Plant P001 G000
Good Issue GBB
Plant P001 SAP AG and The Rushmore Group, LLC 2006
363
Version 3.2
January 2006
Goods Receipt
Materials can be received as stock items or non-stock items Receipt is possible from external or internal sources Individually / collectively Tolerance limits can be set for goods receipt Special movement type for initial inventory load
Integration
Goods Receipt (continued)

Stock items can be received into restricted or unrestricted stock Non-stock items are received into orders, projects, cost centers Materials that are usually received into inventory can also be received into orders, projects, cost centers
January 2006
365
Integration
Set parameters for invoice verification
Quantity, price, receiving date, P/O quantity Updates material master if moving average price Automatic account assignment for price differences - if allowed
Verify actual versus target
January 2006
366
Version 3.2
January 2006
Integration
3-Way Match
Purchase order - Target quantity - Target price -
Invoice receipt - Actual price -
Goods receipt - Actual quantity -
January 2006
367

Purchase Order Payment Program Invoice Receipt Verification
Debit Credit
Goods Receipt
January 2006
368
Integration

89. Set Default Values for Inventory Management Reservations 90. Maintain Purchasing Tolerance Limits 91. Maintain Goods Receipt Tolerances 92. Maintain Invoice Receipt Tolerances 93. Set (Review) Valuation Control 94. Assign Valuation Area Grouping 95. Define (Review) Valuation Classes
January 2006
369
Version 3.2
January 2006
Integration

96. Configure Automatic Postings for Goods Movement 97. Configure Automatic Postings for Taxes 98. Set Parameters for Invoice Verification 99. Create Default Values for Invoice Verification 100. Open Exercise
January 2006
370
January 2006
371
January 2006
372
Version 3.2
January 2006

- Transactions -
Business Process Integration MM
January 2006
374
Transaction Data
January 2006
375
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
376
Integration
Procurement Process
(Procure-to-Pay)
Notify Vendor

377
January 2006
Integration
Basic Procurement Process

Requirements Determination - Purchase Requisition Vendor Selection Order Processing - Purchase Order Order Tracking Goods Receipt and Inventory Management Invoice Verification Payment
Version 3.2
January 2006
Purchase Requisitions
Internal document Requesting a certain quantity of material or service on a certain date Can be created:
Manually Automatically (Materials Requirements Planning (MRP), sales orders, etc.)
Release approval procedures are optional
January 2006
379
Purchase Requisitions Sources

Manually created by user department
Office supplies Projects Prototype materials
Automatically created by
Planning (Material Requirements Planning (MRP), Master Production Schedule (MPS)) Plant Maintenance Production Orders Sales Orders
January 2006
380
Purchase Requisitions Processing

Create purchase requisition (manually or automatically) Determine source of supply Release procedure (optional) Assign vendor and process
January 2006
381
Version 3.2
January 2006
Integration
Purchase Requisitions Creating

Default data for line items
Delivery dates, plants, purchasing groups, etc.
Maintain line item data

Materials, quantities, delivery dates, etc.
Maintain account assignment (if required)

Cost center, General Ledger accounts, project number, etc.
Check data Save
January 2006
382
Purchase Orders
Purchase Orders are:
A formal request to a vendor to provide materials or services An internal planning and tracking tool
Purchase Orders identify:

Vendor Material and/or service Quantity and price Delivery dates Terms of payment
January 2006
383
Purchase Order Structure

Header - information specific to the entire purchase order
Vendor Currency Payment terms
January 2006
384
Version 3.2
January 2006
Purchase Order Structure (continued)

Line item details
Account assignment Delivery schedule Materials or services quantity Price Description Item category
January 2006
385
Purchase Order
Request for Quotations Purchase Order Order Acknowledgment
January 2006
386
Purchase Order Output Format

Printed and mailed E-mail Electronic Data Interchange (EDI) Faxed (hardcopy or electronic) eXtensible Markup Language (XML)
January 2006
387
Version 3.2
January 2006
Integration
Goods Receipt
Goods receipt with reference to a purchase order
Copy data from purchase order Delivery notification Invoice verification Updates purchase order history Inventory update Automatic update of General Ledger (G/L) accounts
January 2006
388
Integration
Goods Receipt (continued)

You can search for the purchase order number with
Material number, vendor number, etc.
January 2006
389
Goods Receipt Destinations

Stock - given a storage location, can be posted to three different stock statuses
Unrestricted-use Quality inspection Blocked stock (valuated)
Consumption - can be assigned a recipient or unloading point Goods receipt for blocked stock - updates inventory, but material is not valuated (conditional acceptance)
Version 3.2
January 2006
Integration
Goods Receipt Movement Types

Movement types - stock transactions
Goods receipt Goods issue Stock transfer
Movement type determines which

Quantity fields are updated Stock types are updated General Ledger (G/L) stock or consumption accounts are updated Fields are displayed during document entry
Goods Receipt Movement Types (continued)

101 - goods receipt for purchase order into warehouse/stores 102 - reversal of goods receipt for purchase order into warehouse/stores 122 - return delivery to vendor 501 - receipt w/o purchase order into unrestricted-use stock
January 2006
392
Integration
Goods Receipt Account Postings

Inventory account is debited at standard price Goods Receipt/Inventory Receipt (GR/IR) clearing account is credited at purchase order price Price difference account is debited (credited) with difference between standard price and purchase order price
January 2006
393
Version 3.2
January 2006
Integration
Goods Receipt Effects

Purchase Order (PO) history and Purchase Order (PO) updated Material Master - stock and value updated Notification of goods receipt issued (optional) Transfer request to Warehouse Management system (if active)
January 2006
394
Integration
Goods Receipt Effects (continued)

Material and financial documents created and/or updated Stock and consumption accounts updated Inspection notification in Quality Management (QM) - if active
January 2006
395
Integration
Matches the vendors invoice to the purchase order and the goods receipt (3rd part of 3-way match) Matches price and quantity Updates the purchase order and its history Updates accounting information
January 2006
396
Version 3.2
January 2006
Integration
Invoice Payment
Selects invoices for payment based on the payment terms in the vendor master or purchase order Generates payment for released invoices Updates accounting information
January 2006
397
3-Way Match for Payment

Purchase Order Payment Program Invoice Receipt Verification
Debit Credit
Goods Receipt
January 2006
398
Integration
Accounts Payable Settlement Process

Determines:
Open items to be paid When they will be paid Bank from which payment will be made Payment medium Who will get paid
Payment process creates a financial accounting document to record the transaction

Version 3.2
January 2006
Goods Receipt / Invoice Receipt Reconciliation Account

Purchase requisition Purchase order Goods receipt No impact on Financial Accounting (FI) Materials Management (MM) and Financial Accounting (FI) via automatic account assignment GR / IR Dr Cr $100
Inventory Dr $100 Cr
January 2006
400
Goods Receipt / Invoice Receipt Reconciliation Account

Invoice receipt Amount owed is assigned and transferred to vendor account payable
GR / IR Dr $100 Cr
Vendor A/P Dr Cr $100
January 2006
401
Vendor Payment
Amount owed is paid to vendor and account payable is reduced
Bank
Bank Dr Cr $100
Vendor A/P Dr $100 Cr
January 2006
402
Version 3.2
January 2006
Integration
Financial Accounting (FI) Materials Management (MM) Integration Points

Goods Receipt
Inventory
Dr Cr Dr
Invoice Receipt
GR / IR
Cr Dr
Payment Program
Bank
Dr Cr Cr
AP (Vendor) $100 $100
$100
$100
$100
$100
January 2006
403
Integration

Debit posting $100 BSX - inventory posting to trading goods inventory account 201XXX Credit posting $100 WRX goods receipt posting to GR/IR account 310XXX
January 2006
404
Integration
Unit 11 Exercises
101. Create Purchase Order for Slick Pens 102. Create Purchase Order for Premier Pens 103. Create Purchase Order for Promotions, Ltd. 104. Create Goods Receipt for Purchase Order 105. Create Invoice Receipts from Vendors 106. Post Payment to Vendors
January 2006
405
Version 3.2
January 2006

- Transactions -
Business Process Integration MM
January 2006
407
Transaction Data
January 2006
408
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
409
Unit 12 Overview
A company may want to establish a long term purchasing relationship with a vendor Its is accomplished through a purchasing contract (outline agreement or blanket order) Purchases of that material from that vendor are then simplified and streamlined
January 2006
410
Buyer/Supplier Relationships Four Types

Antagonistic parties view each other as the enemy (lose/lose) Adversarial each party attempts to maximize their gain (win/lose) Cooperative parties understand the benefits of working together (win/win) Collaborative parties look for opportunities to create value (win/win)
January 2006
411
Version 3.2
January 2006
Buyer/Supplier Relationships
Long term partnerships are the objective of the supplier evaluation and selection process for contracts Traditional purchasing process
Creates an environment of mistrust and low bidder mentality Leads to higher total purchasing costs
January 2006
412
Supplier Evaluation and Selection

Identify need for long term supplier contract Determine specific sourcing requirements Identify potential suppliers Determine method of evaluating suppliers Select supplier for contract Negotiate and execute contract
January 2006
413
Benefits of Managing the Supply Base

Contract with only world-class suppliers The fewer suppliers the lower the purchasing overhead Purchasing can pursue strategic sourcing issues, instead of clerical functions Streamline the supply chain Improved overall quality Improved delivery performance
January 2006
414
Version 3.2
January 2006
Outline Agreement
Long-term purchase agreements Outline agreements can be subdivided into the following types:
Contracts Scheduling agreements
Outline agreements can be subject to a release (approval or clearance) procedure
January 2006
415
Contract Process Overview

Step one is to identify and evaluate suppliers It may involve supplier development The goals are:
Develop partnerships with good suppliers Reduce total cost of purchased materials and services
January 2006
416
Contracting Questions
How will potential suppliers be evaluated and selected? What procedures will be required to manage the contracts (and suppliers)? How will performance be measured? How many are too many suppliers?

January 2006
Too many suppliers cost money Supplier integration Collaborative agreements Supplier development Without material production shuts down
What is the risk?
Version 3.2
January 2006
Contract Management
Supplier performance metrics
On-time delivery Material and/or service quality Returned materials Expedite issues Pricing analysis
Problem resolution procedures

Improve or else Continuous improvement process
When to end the contract

Creating a Contract
Is a long-term agreement with a vendor to provide a material or service
For an agreed upon period of time At a negotiated price or quantity
Can be created manually or with reference to purchase requisition, Request for Quote (RFQ)/quotation etc.
January 2006
419
Two Types of Contracts

Quantity contracts are agreements with a particular vendor to purchase a specific quantity of materials. Example: Target quantity of 50,000 meters of electrical wire at $2/meter. (MK) Value contracts are similar to quantity contract except the agreement is to purchase an established monetary value of materials. Example: Target value of $100,000 for electrical wire. (WK)
Version 3.2
January 2006
Quotations/Contracts Process
Requirement for material is identified Process followed to select a vendor
Request for Quotation (RFQ) Maintaining a Quotation Comparison of Prices Creating a Contract Creating a Release Order
January 2006
421
Request for Quotation (RFQ)

Is an invitation to a vendor to indicate their terms and conditions (in particular, their price) for the supply of a material or the provision of a service by submitting a quotation Identifies the required material, quantity, and delivery dates
January 2006
422
Quotation
A quotation contains the vendor's pricing and conditions for providing the material or service stated in the Request for Quotation (RFQ) In the SAP component Materials Management (MM) Purchasing, the RFQ and quotation are the same document. You enter the vendor's pricing and conditions in the original RFQ.
Version 3.2
January 2006
Maintaining a Quotation
Enter each vendor's quotation in the associated Request for Quotation (RFQ) Compare prices using the price comparison list Store the best quote in an info record Optionally, send rejection letters to the losing bidders
January 2006
424
Comparison of Prices
You can compare the prices from all quotations from the competitive bidding process using the price comparison list The comparison list ranks the quotations by item from lowest to highest price
January 2006
425
Creating a Release Order

Purchase order that references a contract is called a release orders, they specify:
Number of the contract Quantity to be released Delivery date
Release order documentation (open quantity, quantity released to date, total value) is automatically updated against the contract when a release order is created
Version 3.2
January 2006
Integration
Creating a Release Order (continued)

The vendor data, price data, and the delivery terms and conditions are copied directly to the release order Release orders can be created from a proposed purchase requisition generated off an Materials Requirement Planning (MRP) run (net requirements)
Manually Automatically
January 2006
427
Integration
Unit 12 Exercises
107. Create Purchase Outline Agreement (Contract) for Stock Items 108. Run Materials Requirements Planning Single Item, Single Level 109. Convert Proposed Purchase Requisition to Release Order 110. Create Goods Receipt 111. Review Outline Agreements 112. Create Invoice Receipt from Vendor 113. Post Payment to Vendor
January 2006
428
January 2006
429
Version 3.2
January 2006
Unit 13 Sales and Distribution (SD)

SD
January 2006
Org Data
431
Organizational Data
January 2006
432
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
433
Components of Sales and Distribution

Shipping Transport Sales Support Master Data Sales Credit Mgmt. Billing Foreign Trade Sales Information System
January 2006
434
Sales Organization
Sales Organization
Sells and distributes products Negotiates terms of sales Responsible for these business transactions
Critical organization element to the definition of business markets A sales transaction is linked to only one Sales Organization
January 2006
435
Version 3.2
January 2006
Sales Organization (continued)

US Sales S000
January 2006
436
Distribution Channel
Identifies how products and services reach the customer Can be assigned to one or more Sales Organizations
January 2006
437
Distribution Channel (continued)

US Sales S000
Retail Dist Channel (RE)
Wholesale Dist Channel (WH)
January 2006
438
Version 3.2
January 2006
Division
Often times used to define product line distribution Organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery) Assigned to one or more Sales Organizations
January 2006
439
Division (continued)
US Sales S000
Medical Division
Chemical Division
January 2006
440
Sales Area
Sales Area comprised of:
Sales Organization Distribution Channel Division
Will be used to link together the organizational aspects of sales to customers Used for statistical analysis
January 2006
441
Version 3.2
January 2006
Sales Area (continued)

US Sales S000
Medical Division
Chemical Division
Medical Division
Chemical Division
January 2006
442
Sales Area (continued)

US Sales S000
Medical Division
Chemical Division
Medical Division
Chemical Division
January 2006
443
Internal Sales Organization

Typically defines a territory or market Linked to one or more Sales Areas Optional organization structure
January 2006
444
Version 3.2
January 2006
Sales Office
US Sales S000
Eastern Sales
Western Sales
January 2006
445
Sales Group
Sales Group
Sub-division of a sales office, territory or market
January 2006
446
Integration
Sales Person
Sales Person
Defined in Human Resources (HR) Personnel Admin. Specifically defines an individual rather than a position (sales rep.) in sales processing
January 2006
447
Version 3.2
January 2006
Internal Sales Organization

US Sales S000
Eastern Sales
Western Sales
Northeast Sales Group

Salesperson 1 Salesperson 2
January 2006
Southeast Sales Group

Northwest Sales Group

Southwest Sales Group

448
Shipping and Loading Points

Shipping Point
Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point
Loading Point
A subdivision of the shipping point used for more specialized handling
January 2006
449
Shipping Organization
Plant P000
Freight Dock FD00
Express Dock ED00
Rail Dock RD00
Loading Point 1
Loading Point 2
Loading Point 3
Loading Point 4
January 2006
450
Version 3.2
January 2006

114. Create Sales Organization 115. Assign Sales Organization to Company Code 116. Define Distribution Channels 117. Assign Distribution Channels to Sales Organization 118. Define Division 119. Assign Division to Sales Organization 120. Setup Sales Areas
January 2006
451

121. Define Loading Groups 122. Create Shipping Point 123. Assign Plant to Sales Organization and Distribution Channel 124. Assign Shipping Points to Plant
January 2006
452
January 2006
453
Version 3.2
January 2006

- Master Data -
Master Data
SD
January 2006
455
Master Data
Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data
Before making the Master Data configurations, you must have completely defined the organizational structures
January 2006
456
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
457
Integration
Master Data Core Elements

Customer
Master Data
Material
Pricing
458
Material Master Sales Views

Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text
1 rg. sO Sale iew V
Sa l es O Vie rg. 2 w
Barrel Pen
January 2006
459
Version 3.2
January 2006
Material Master Sales: Sales Org. 1 View

General Data
Base Unit of Measure
The Base Unit of Measure is the unit of measure in which stocks are managed within your company.
Division
You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen).
Material Group
A key thats used to group several materials or services for analysis/reporting as well as search by match code.
Sales Unit
The unit of measure in which the material is sold, if left blank then uses the base unit of measure.
January 2006
460
Material Master Sales: Sales Org. 1 View (continued)

General Data (continued)
Delivering Plant
Plant from which the material is available for sale.
Cash discount
Indicator used for materials, which allow for a cash discount. Conditions Pricing procedure for the material
Tax Data
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distributionspecific documents
January 2006
461
Integration

Quantity Stipulations
Minimum Order Quantity
Minimum quantity a customer may order.
Minimum Delivery Quantity

Minimum quantity that may be delivered to a customer
Delivery Unit
The delivery unit consists of a number and a unit of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
January 2006
462
Version 3.2
January 2006
Material Master Sales: Sales Org. 2 View

Grouping Terms
Material Statistics Group
Determine which data the system updates in the logistics information system
Material Pricing Group

A way of grouping materials to which you want to apply the same conditions
Volume Rebate Group

Group definition used for rebate settlement.
General Item Category Group

Materials grouping that helps the system to determine item categories during sales document processing.
January 2006
463

Grouping Terms
Item Category Group
A grouping of materials that the system uses to determine item categories during the processing of sales documents.
Commission Group
Commission group to which the material is assigned.
January 2006
464
Integration
Material Master Sales: General/Plant

General Data
Base unit The unit of measure in which items are managed in the company Gross weight Used to check storage capacity in warehouse Net weight Weight excluding packaging and extras this is needed for sales and distribution Avail. Check Option to do an availability check for orders and MRP
Version 3.2
January 2006
Integration
Material Master Sales: General/Plant (continued)

Shipping Data (times in days)
Transportation Group Group materials that have the same transportation requirements. For example, bulk stock materials Loading Group Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.
January 2006
466
Integration
Material Master Sales: General/Plant (continued)

Packaging Material Data
Material group Pack Materials Materials that require similar packaging materials
General Plant Parameters

Negative stock Indicates if negative stocks of the material are allowed at the plant Profit Center Identifies the profit center in the current controlling area
Material Master Sales Texts View

Sales Texts
Exchange of information throughout the logistics chain In sales and distribution, this exchange of information is supported by texts in master records and documents You can define as many text types as you require (sales texts, shipping texts, internal notes, supplement texts etc.) for master records and documents
January 2006
468
Version 3.2
January 2006

125. Create Sales Views for Trading Goods 126. Create Sales Revenue Account 127. Create Sales Revenue Deduction Account
January 2006
469
Integration

Customer
Master Data
Material
Pricing
470
Customer Master
Customer Master Data is created by Sales Area
Sales Organization Distribution Channel Division Sales Area
US Sales S000
Distribution Channel - RE
Division - 01
January 2006
471
Version 3.2
January 2006
Integration
Customer Master (continued)

General Data
ta: l Da era Gen ddress A
Sa le s Sa Data : le s
Company Code Data Financial Accounting (FI) Sales Data Sales and Distribution (SD)
Customer 43
January 2006
472
Integration
Customer Master
A master record must be created for every customer General data, Company Code data (Financial Accounting - FI), and Sales Org. data (Sales and Distribution - SD)
General data Address Control data Payment transactions
January 2006
Company Code data Account Mgmt Payment transactions Correspondence

Sales Org. data Sales Shipping Billing Partner Usage

473
Customer Master General Data Address
General Data Address Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail
Version 3.2
January 2006
Integration
Customer Master General Data Control Data

Account Control
Vendor Authorization Trading partner Group key Tax codes Fiscal address Country code City code
Tax Information
Reference Data / Area

Customer Master General Data Payment Transactions

Bank Details
Country Bank Key Account holder Bank Account Control Key Collection
January 2006
476
Customer Master General Data Marketing

Classification
Nielsen ID Customer classification Industry Industry codes
Operating Figures
Annual sales Number of employees Fiscal year variant
Sales Prospecting
Legal status
Version 3.2
January 2006
Customer Master General Data Unloading Point

Unloading Points
Unloading point Default Calendar key Default Unloading Point Goods receiving hours
January 2006
478
Customer Master General Data Foreign Trade

Export Data
Country key TDO Date (Table of Denial Orders) SDN Date (Specially Designated Nationals) Boycott Date
Usage
Mainly civilian usage Mainly military usage
Classification
Biochemical warfare Nuclear nonproliferation National security
January 2006
479
Customer Master General Data Contact Persons

Contact Person
Name First name Department Function
January 2006
480
Version 3.2
January 2006
Customer Master Company Code Accounting Information

Accounting Information
Rec. Account Sort key Head office
Interest Calculation
Interest indicator Interest cycle Interest calculation frequency in months Last interest run
Reference Data
Previous account number Buying group
January 2006
481
Customer Master Company Code Payment Transactions

Payment Data
Terms of Payment Tolerance group
Automatic Payment Transactions

Payment methods Payment block Alternative payer Grouping key Lockbox
January 2006
482
Integration
Customer Master Company Code Correspondence

Dunning Data
Dunning procedure Dunning block Dunning recipient
Correspondence Accounting clerk Acct at customer Customer user Payment Notices To

January 2006
Customer Sales Accounting Legal

Version 3.2
January 2006
Customer Master Company Code Insurance

Export Credit Insurance
Policy Number Institution Number Amount Insure Valid Until Lead Months Deductible
January 2006
484
Customer Master Sales and Distribution Sales

Sales Order
Sales District Sales Office Sales Group Order Probability Item Proposal
Pricing / Statistics
Price Group Customer Pricing Procedure Price List Type Customer Statistical Group
January 2006
485
Customer Master Sales and Distribution Shipping

Shipping
Delivery Priority Shipping Conditions Delivering Plant Order Combination Complete Delivery Required By Law Partial Delivery per Item Max Part Deliveries Under-delivery Tolerance Over-delivery Tolerance
Partial Delivery
General Transportation Data

Transportation Zone
January 2006
486
Version 3.2
January 2006
Integration
Customer Master Sales and Distribution Billing

Billing Section
Subs. Invoice Processing Rebate Price Determination Invoicing Dates Invoice List Dates
Delivery and Payment Terms

Incoterms Payment Terms
Accounting
Account Assignment Group
Taxes
Tax Classification
January 2006
487
Customer Master Sales and Distribution Partner Functions

Partner Functions
Partner Function (PF) Number Partner Description
Sample Listing of Partner Functions Types

SP Sold-to-party BP Bill-to-party PY Payer SH Ship-to-party
January 2006
488
Business Partners
Defines all of the parties involved in a business transaction Differentiates between their roles
Customer Carrier Employees Etc.
January 2006
489
Version 3.2
January 2006
Business Partners
The system will automatically assign a business partner to the customer master and to any transaction There are four default business partner
Sold-to Ship-to Bill-to Payer
They may be the same or different. More business partners can be added to carry out additional business transactions
Customer Account Group

Customer masters are assigned to a customer account group Through field status maintenance, account groups can be setup for one-time customers, regional customers, internal The customer account group controls both type and number range assignment for customers
January 2006
491
Field Status
Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity create, change, or display
January 2006
492
Version 3.2
January 2006
Business Partners Sold-to Party

Customer who orders Can default for all partner functions sold-to, ship-to, payer, bill-to Primary type of business partner Independent and cannot be linked to other sold-to partners
Sold-to
Ship-to
Bill-to
Payer
493
Business Partners Ship-to Party (continued)

Receive delivery Can be linked to more than one sold-to address
Sold-to
Ship-to
Bill-to
Payer
January 2006
494
Business Partners Bill-to Party

Partner who is delivered the invoice Can be linked to more than one sold-to address
Sold-to
Ship-to
Bill-to
Payer
January 2006
495
Version 3.2
January 2006
Business Partners Payer

Partner who pays the bill Can be linked to more than one sold-to address
Sold-to
Ship-to
Bill-to
Payer
January 2006
496
Single and Multiple Ship-to Parties

Single ship-to
Ship-to: 10 Sold-to: 10
Bill-to: 10
Payer: 10
Multiple ship-tos Single payer

Ship-to: 11 Ship-to: 10
Sold-to: 10
Bill-to: 10
Payer: 10
January 2006
497
Business Partners
Sold-to Sold-to
Ship-to
Bill-to
Ship-to
Ship-to
Payer
Ship-to
Ship-to
Ship-to
January 2006
498
Version 3.2
January 2006

128. Review Sold-to, Ship-to, and Bill-to Account Groups 129. Create Customer 130. Create Ship-to Party 131. Assign Ship-to Party to Customer
January 2006
499
January 2006
500
January 2006
501
Version 3.2
January 2006

- Master Data -
Master Data
SD
January 2006
503
Master Data
Master Data is relatively fixed
Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data
Before making the Master Data configurations, you must have completely defined the organizational structures
January 2006
504
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
505
Integration

Customer
Master Data
Material
Pricing
506
Pricing
Highly touted world-class functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material
January 2006
507
Version 3.2
January 2006
Standard Pricing Process

Standard Pricing
Calculates the gross price Then applies Discounts Surcharges Applicable Taxes Calculates the final price
Final price = gross price - discounts + surcharges + taxes

Cost-Plus Pricing Process

Cost-plus pricing
Captures the base cost Then applies Markup Discounts Surcharges Applicable Taxes Calculates the final price
Final price = cost + markup - discounts + surcharges + taxes

Pricing Components
Pricing uses tables to match the condition of order to the applicable pricing routine These routines can
Add/Subtract amounts, percentages Give dollar, weight, quantity breaks/additions Accrue
January 2006
510
Version 3.2
January 2006
Pricing Procedure
Pricing uses one of possibly many procedures based upon
Item Customer Order type Sales Area Prices (Gross) Discounts & Surcharges Freight Taxes
The procedure will then apply
January 2006
511
Pricing Procedure (continued)

Pricing conditions for each item on the order Pricing condition uses
Pricing procedure Access sequence Conditions type
Determines adjustments and price
January 2006
512
Pricing Process
Line Item in Sales Order Pricing Procedure Determination Pricing Procedure Contains List of Condition Types Condition Types Point to Access Sequence Access Sequence Provides the Search Order for Pricing
January 2006
PPEN000 Sales Area S000-RE-01 Doc. Pric. Proc. OR=A Cus. Pric. Proc. 43 = 1
Pricing Procedure = RVAJUS Condition Type PR00 = Price Access Sequence PR02 = Price 10 Customer/material 20 Price list cat./currency/material 30 Material 30 Material Price = $9.50
Version 3.2
January 2006

Line Item Pricing Proced. Det. CTyp points to Access Seq. Access Seq. points to Cond. Tbls. Cond. Tbls. contain the Item Pricing
PPEN000
Sales Area Doc. PP Cust. PP
PR00 Points to PR02
PR02 Points to Cond. Tables
Cust. / Mat. Price List / Cur / Mat. Material
N/A N/A $ 9.50
Sales Org. 0001 0001 0001 0001 S000 S000
Doc. Cust. Price Dist. Div PP PP Prod. Chan. 01 01 A 1 RVAA01 01 01 A 2 RVAB01 01 01 B 1 RVWIA1 01 01 C 1 RVCA01 RE 01 A 1 RVAJUS WH 01 A 1 RVAJUS
Price Prod. Ctyp Description RVAJUS PR00 Price PB00 Price (Gross) KA00 Sales deal K007 Customer Discount K004 Material K005 Customer/Material
Acces seq. PR02 K305 K307 K304 K305
Access Access Seq. No. Description PR02 10 Customer/material with release status 20 Price list cat./cur/mat with rel status 30 Material with release status K305 10 Customer/material with release status K307 10 Customer with Release Status K304 10 Material with release status
January 2006
514
Price Agreements
Standard price agreements
Product Customer Customer & material Customer group & material group
Detailed price agreements

Pricing scales Rebates Customer expected price
January 2006
515
Integration
Credit Limits and Checking

Define automatic credit limit checks to your companys requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on) A credit representative is automatically alerted to a customers critical credit situation as soon as order processing starts Employees can be automatically notified of critical credit situations via internal mail
Version 3.2
January 2006
Integration
Credit Limits and Checking (continued)

Credit representatives are able to check a customers credit situation to decide whether the customer should be granted credit Works in distributed systems
Central financial accounting Non-central sales and distribution on several sales and distribution computers
January 2006
517
Integration
Credit Check
You can use this function at any time within service processing to call up information about the current credit status of a customer Credit limit can be checked manually or automatically The system generally checks the planned costs without tax If a customer has exceeded their credit limit, the system issues a warning
Integration
Credit Check (continued)

The checks can be carried out at various times during the sales order cycle, from order receipt to delivery You can define a credit check for any valid combination of the following data:
Risk category Document credit group Credit control area
January 2006
519
Version 3.2
January 2006
Unit 15 Exercises
132. 133. 134. 135. Create Material Prices Create Customer Specific Material Price Create Customer Discount Establish Credit Limit for Customer
January 2006
520
January 2006
521
January 2006
522
Version 3.2
January 2006

- Rules -
SD
Rules
January 2006
Rules
525
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
526
Assign Sales Area to Pricing Procedure

Pricing Procedure Assignment uses a combination of: Sales Area Document Pricing Procedure Customer Pricing Procedure Each combination of these has a pricing procedure assigned
January 2006
527
Availability Check
In determining the material availability date the system can include specific stocks if selected, such as:
Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock All movements of stock
January 2006
528
Version 3.2
January 2006
Integration
Credit Checking
Static Credit Limit Check
Open Orders Open Deliveries Open Billing documents Open Items (accounts receivable)
Dynamic credit limit with credit horizon check (future dates) Credit check to maximum document value (per order)
Shipping Functions
Shipping Point Determination
The shipping point is selected for each line item based on the shipping point determination process Shipping point based on: Shipping condition Loading group Delivering plant
January 2006
530
Shipping Functions (continued)

Route Definition
Delivery method and the transit time Dummy routes can be used to easily define transit time
Route Determination Proposed route is chosen using

January 2006
Shipping point Destination country Transportation zone Shipping condition

Version 3.2
January 2006
Revenue Assignment Determination

Transfers billing values from the Sales and Distribution to Finance Used to recognize revenue Keys used to allocate revenue to the proper account
January 2006
532
Integration

Defines the G/L accounts that billing entries are posted to revenue, sales deductions, surcharges, freight charges, etc.
Application V Sales
Condition Type KOFI Condition Tables
Chart of Accounts C001 Sales Document
Sales Customer Organization Account Group S001 Sales Document 01 Customer Master
Account Key ERL Pricing Procedure
General Ledger Account 600999 Chart of Accounts
January 2006
533
Unit 16 Exercises
136. 137. 138. 139. 140. 141. Assign Sales Areas to Pricing Procedure Define Availability Check for Sales Orders Assign Sales Document to Credit Check Create Shipping Point Determination Create Revenue Account Assignment Key Check Stock Status
January 2006
534
Version 3.2
January 2006

- Transactions -
Business Process Integration SD
January 2006
536
Transaction Data
January 2006
537
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
538
Document Types
Inquiry Quotation Returns Contract
Sales Order
Cash Sales
Consignment
Scheduling Agreement Credit Memo

539
Rush Order
Debit Memo
Returnable Packaging
January 2006
Order Processing Functionality

Delivery scheduling Availability check Transfer of requirements to Material Requirements Planning Pricing Credit check Shipping point and route determination Foreign trade and license processing Document flow
Version 3.2
January 2006
Delivery Scheduling
Automatic scheduling of essential shipping activities Calculated using defined activity times Resulting in scheduled activity dates Determined using backward and forward scheduling rules
January 2006
541
Delivery Scheduling (continued)

Structure of sales documents Header Line Item # 1 Schedule Line # 1 Schedule Line # 2 Line Item # 2 Schedule Line # 1
January 2006
542
Delivery Scheduling Terminology

Transportation lead time
Time required to schedule transportation
Pick/Pack time
Time required for picking and packing
Load time
Time required to load
Transit time
Time required to transport goods from shipping point to ship-to
Version 3.2
January 2006
Backward Scheduling
Order Date
Material Availability
Transp. Sched.
Loading
Goods Issue
Requested Delv. Date
1st
2nd Pick & Pack Time (2 days)
3rd Transp. Sched. Time (1 day)
4th Loading Time (1 day)
5th
6th Transit Time (2 days)
January 2006
544
Forward Scheduling
Order Date
Transp. Material Availability Sched.
Loading
Goods Issue
Requested Delv. Date
New Delv. Date
1st
2nd Pick & Pack Time (2 days)
3rd
4th Transp. Sched. Time (1 day)
5th Loading Time (1 day)
6th
7th
Transit Time (2 days)
January 2006
545
Availability Check
Determines the material availability date Considers inward and outward movement of inventory customizable Influences partial deliveries by
Proposing a quantity that can be delivered on the requested date (complete delivery) Determines earliest date for full delivery Determines the number and dates for partial deliveries to fulfill the order
January 2006
546
Version 3.2
January 2006
Availability Check (continued)

In determining the material availability date the system can include specific stocks if selected, such as:
Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock All movements of stock
January 2006
547
Transfer Requirements to Material Requirements Planning

Ordered quantities are passed to Material Requirements Planning Controlled by the schedule line category Blocking of documents can affect requirements passing delivery block
January 2006
548
Pricing
Highly touted world-class functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material
January 2006
549
Version 3.2
January 2006
Credit Check
Efficient means to implement credit management Integrated with Financial Accounting (FI) - Via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting
January 2006
550
Shipping Point and Route Determination

A shipping point is determined for each line item shipping point determination A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time
January 2006
551
Foreign Trade and License Processing

Predefined trade areas NAFTA, EU Automated reporting for trade areas Automated controls
License management Embargo lists Control by customer, country, product, point in time
January 2006
552
Version 3.2
January 2006
Document Flow
The document flow feature allows you to find the status of an order at any point in time. The SAP system updated the order status every time a change is made to any of the documents created in the customer order management cycle (Order to Cash).
January 2006
553
Integration
Unit 17 Exercises
142. 143. 144. 145. 146. 147. 148. 149. 150. 151. Create Sales Order Check Stock Status Create Delivery Note for Sales Order Check Stock Status Pick Materials on Delivery Note Post Goods Issue Check Stock Status Bill Customer Post Receipt of Customer Payment Review Document Flow
January 2006
554
January 2006
555
Version 3.2
January 2006

- Transactions -
January 2006
557
Transaction Data
January 2006
558
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
559
Material Listing and Exclusion

Inclusions or exclusions (availability) of material for a customer or a customer group Material Listing products that can be sold Material Exclusion products that cannot be sold
January 2006
560
Product Substitution Material Determination

Substitution of materials during sales order processing
Automatic Manual
Examples:
Substitute a standard product with an appropriate replacement material Substitute based on a customer preference Substitute based on selection list (manual)
January 2006
561
Version 3.2
January 2006
Customer Material Info Record

Data on a material defined for one specific customer is stored in the customer material information records
Customer-specific material number Customer-specific material description Customer-specific data on deliveries and delivery tolerances
January 2006
562
Integration
Unit 18 Exercises
152. Create Customer Material Info Record 153. Create Sales Order Using Customer Info Record 154. Create Delivery Note for Sales Order 155. Pick Materials on Delivery Note 156. Post Goods Issue 157. Bill Customer 158. Run Customer Credit Check 159. Post Receipt of Customer Payment
January 2006
563
January 2006
564
Version 3.2
January 2006

- Transactions -
January 2006
566
Transaction Data
January 2006
567
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
568
Scheduling Agreements
Defines specific product quantities and delivery dates for a customer Schedule lines and processed through standard delivery processing Availability check is performed during creation and quantities are passed to MRP System automatically updates delivered quantities
January 2006
569
Scheduling Agreements (continued)

Scheduling Agreement Date 02/15 05/15 08/15 11/15
January 2006
Delivery 02/10 150 Delivery 05/10 150 Delivery 08/10 150 Delivery 11/10 300
570
Qty 150 150 150 300

Version 3.2
January 2006
Unit 19 Exercises
160. Create Scheduling Agreement 161. Process Deliveries for a Scheduling Agreement 162. Display Scheduling Agreement 163. Check Stock Status
January 2006
571
January 2006
572
January 2006
573
Version 3.2
January 2006

- Transactions -
Business Process Integration FI MM SD
January 2006
575
Transaction Data
January 2006
576
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
577
Item Proposal
Frequently occurring combinations of material and quantities used by a customer System can suggest the item proposal during order entry
Transferred into a sales order document Selected from a selection list
Can be assigned to more than one customer master records

Unit 20 Exercises
164. 165. 166. 167. 168. 169. 170. 171. 172. 173.
January 2006
Create Item Proposal Assign Item Proposal to Customer Create Sales Order Using Item Proposal Create Sales Order Value Discount Promotional Products (In Excess Inventory) Run Material Requirements Planning Single Item, Single Level Display Stock/Requirements List Convert Purchase Requisition to Purchase Order Create Goods Receipt Create Invoice Receipt from Vendor Post Payment to Vendor
579
Version 3.2
January 2006

- Transactions -
January 2006
581
Transaction Data
January 2006
582
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
583
Shipping Overview
Comprehensive functionality to support picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management
January 2006
584
Shipping Overview (continued)

Order 1 Order 4 Order 5
Order 2
Delivery 813
Delivery 816
Order 3
Delivery 814
Delivery 812
Delivery 815
Order Combination
January 2006
Partial Delivery
Complete Delivery
585
Version 3.2
January 2006

Delivery creation activities
checks order and materials to determine if a delivery is possible delivery block, incompleteness confirms availability confirms export/foreign trade requirements determines total weight & volume
January 2006
586

Delivery creation activities
generates packing proposal considers partial deliveries updates route assignment assigns picking location determines lot batches updates sales order: status, delivery qty
January 2006
587
Delivery Notes
Initiates the delivery process Control mechanism for the process Changes to delivery are allowable products, quantities
Picking
Delivery Note Each step in the delivery process updates the delivery note status
Packing Loading Post Goods Issue

January 2006
588
Version 3.2
January 2006
Delivery Due List

Produces a work-list of deliveries Encompasses deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries
January 2006
589
Picking
Quantities based on delivery Assigned date when picking should begin Automated storage location assignment Supports serial number tracking and batch management Integrated with Warehouse Management (WM)
January 2006
590
Packing
Identifies which packaging is to be used for specified products Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced
January 2006
591
Version 3.2
January 2006
Integration
Goods Issue
Event that indicates the change in ownership of the products Reduces inventory Automatically updates the G/L accounts Ends the shipping process and prevents changes to the shipping documents
January 2006
592
Integration
Goods Issue (continued) General Ledger

Cost of Goods Sold
Debit Credit
Inventory
Debit Credit
1000
1000
January 2006
593

174. Run Delivery Due List 175. Pick Materials on Delivery Note 176. Post Goods Issue
January 2006
594
Version 3.2
January 2006
Integration
Billing Overview
Automated invoicing based on sales orders and/or deliveries Functionality for processing credit/debit memos and rebates Integration with Financial Accounting (FI) and Controlling (CO) Updates customers credit data Can create pro forma invoices
January 2006
595
Integration
Billing Overview (continued)

Sales Invoice Sold To: Rushmore Group Sales Org: S001 Dist Channel: RE Division: 01 Conditions/Price: $500
General Ledger Account Assignment
Customer
Debit
Credit
A/R Recon
Debit Credit
Debit
Revenue
Credit
500
500
500
January 2006
596
Integration
Billing Methods
Delivery based Invoicing
Delivery 820 Order 6 Delivery 821 Invoice 946 Invoice 945
Delivery 833
Collective Invoicing
Order 9 Delivery 834 Order 14 Delivery 856 Invoice 968
Split Invoicing
Invoice 991 Order 32 Delivery 886 Invoice 992
January 2006
597
Version 3.2
January 2006
Integration
Billing Plans
Periodic total amount for a planned billing period Milestone distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment evenly proportioned amounts and defined payment dates Resource related consumed resources such as service or consulting
Integration
Billing Documents
Explicitly specify documents Billing due list builds a work list of invoices that should be generated Automatic posting to Financial Accounting (FI)
January 2006
599

177. Run Billing Due List, Invoice Customers 178. Post Receipt of Customer Payment
January 2006
600
Version 3.2
January 2006

- Transactions -
January 2006
602
Transaction Data
January 2006
603
Version 3.2
January 2006
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
January 2006
604
Integration
Customer Return
Customer Return Order received Delivery Note
Goods Receipt
Payment to Customer
Create Credit Memo

Quality Inspection
605
Integration
Customer Return (continued)

1 2 3
Order 14 Delivery 856 Invoice 968
Return Order
Return Delivery
Quality Inspection
Return to Inventory
Credit Memo
Payment
January 2006
606
Version 3.2
January 2006
Integration

Returns document
Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price
Return delivery
Issues a goods receipt to place material into inventory
January 2006
607
Integration

Credit memo
Billing block must be cleared from Return Posts to Financial Accounting (FI) Can be processed in batch (background) Can be processed collectively (grouped)
January 2006
608
Integration

179. 180. 181. 182. 183. Create Goods Return Order Create Delivery Note for Return Order Receive Materials from Goods Return Order Check Document Flow Review Stock Overview
January 2006
609
Version 3.2
January 2006
Integration

184. 185. 186. 187. 188. 189. 190. Transfer Returned Stock to Unrestricted Use Post Customer Credit Process Billing Due List Release Billing Document to Accounting Check Document Flow Post Payment of Customer Refund Check Document Flow
January 2006
610
January 2006
611
The End!
SD MM
Production Planning Sales and Distribution Materials PP Mgmt.
FI
CO
SM
R/3
Client / Server Integrated Business
HR
Controlling
AM
Fixed Assets Mgmt.
Service Mgmt.
EC
QM
Quality Mgmt.
PS WF IS
Workflow
Enterprise Controlling
PM
Project System
Plant Maintenance Human Resources
Industry Solutions
Business Process Integration I Exercises

(Version 3.2 Release January 2006)
Version 3.2 January 2006
BUSINESS PROCESS INTEGRATION I (BPI I) Unit 2: Customer Order Management Business Cycle Including Procurement Process for Replenishment of Goods
Purpose of Unit The purpose of Unit 2 is to demonstrate the Customer Order Management Business Cycle beginning with a quotation and ending with recording final payment received from the customer. This process will include the procurement cycle as you will need to procure the items for sale.
Version 3.2 Release January 2006
Page 1
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 1: Logging on to the SAP System

Enter the following: Select server name provided by the course lead Click on
Client number provided by course lead User ID (e.g., User-100) provided by course lead Password (e.g., init) provided by course lead
Select EN as the language
(Enter) Once you have pressed enter, the system will prompt you to change your password the first time you log on to the system.
Page 2
BUSINESS PROCESS INTEGRATION I (BPI I)

The following pop-up screen will appear.
Enter your new password Repeat your new password
Select
(Enter)
This will log you onto the system. The following page is a screen shot of the SAP Easy Access Menu you should see if you have been successful. If you can not get logged on to the system, please notify the course instructor.
Page 3

This is the SAP Easy Access Menu. It is from here that most all of your exercises will begin.
Page 4
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 2: Create Vendor Master

Navigation Menu Path Logistics Materials management Purchasing Master data Vendor Central Create
Trans Code Enter the following: Leave vendor field blank Company code: C999 Purchasing organization: P999 Account Group: KRED Reference Vendor: 100001 Company Code: C999 Purch. Organization: P999
(Enter) Name Enter the vendors name Search term Search term = Address Postal code = City = Country = Region = Communication Language =
Your Name _ _ _ _ _ _(Your Student Number) 57069 Vermillion US SD English
Note: Control
(Enter) Page forward past views that do not contain relevant information N/A (Enter)
Payment transactions (Enter) Accounting Information Accounting Rec. Account =
N/A
300999
Page 5

(Enter) Payment Transactions Accounting Payment term = Select (Enter) Correspondence Accounting (Enter) Purchasing data Order Currency = Terms of payment = (Enter) (Save) Record the Vendor Number: _______________ (Exit) To return to SAP Easy Access Menu Record the system message: Message USD 0001 N/A 0001 Check double inv.
Page 6
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 3: Create Material Master

Navigation Menu Path Logistics Materials management Material master Material Create (special) Trading goods
Trans Code Enter the following information: Defaults Industry sectors Select: Retail Check Hide industry sector (Enter) Default Views Select the views:
Basic data 1 Sales: Sales Org. Data 1, Sales: Sales Org. Data 2 Sales: General/Plant Data Purchasing MRP 1, MRP 2, MRP 3 General Plant Data/Storage 1 Accounting 1
Make sure these are checked (Enter) Default Organization levels Select: Company code: Plant: Sales org: Distribution channel: Copy from C999 P999 S999 RE Make sure this is checked (Enter) C999 P999 S999 RE
Material
SPEN_ _ _
Change Number:
Leave Blank
Copy from Material:
SPEN999
Page 7
(Enter) Basic data 1 TAB Change Name of Material from Stick Pen 999 to Stick Pen _ _ _ (Enter) Sales: Sales Org. 1 TAB Information will be defaulted into the correct fields with the exception of the pricing data. To input the pricing data: Select In the Screen: Create pricing conditions (PR00) Scale Enter the following: Scale quantity: 1 Amount: 2.00
(Save) (Exit) To return to SAP Easy Access Menu Record the system message: Message
Page 8
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 4: Create Customer Master

Navigation Menu Path Logistics Sales and distribution Master data Business partners Customer Create Complete
Trans Code Enter the following information:
Account group: Sold-to party Customer: (Leave blank)
Company code: C999
Sales organization: S999 Distribution channel: RE Division: 01
Customer: 1 Company code: C999 Sales organization: S999 Distribution channel: RE Reference division: 01
(Enter) You will create the following customer: Address TAB Name Name: Search term Search Term: Address Postal Code: City: Country: Region: Transportation zone
Customer _ _ _ ___ 57069 Vermillion US SD 0000000001
Page 9

Communication Language: Select Account Management TAB Rec. Account: Sort key: Payment transactions TAB Terms of payment: Select Sales TAB Sales order Currency: Pricing/statistics Cust. Pric. Proc.: Cust. Stats. Grp: Shipping TAB Shipping Delivery priority: Order Combination: Shipping Conditions: Delivering Plant: Partial deliveries Max.part.deliveries: Billing Document TAB Delivery and payment terms Incoterms: Payment terms: Accounting Account Assign Group: Accounting Tax Classification: o UTX2 o UTX3 o UTXJ (Save) (Exit) To return to SAP Easy Access Menu Record Customer Number ________________________ Record the system message: Message English (Financial Accounting) 110999 001
0001
USD
1 1
02 Selected 01 P999 3
FOB, Origin Shipping Dock 0001 01
0 0 0
Page 10
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 5: Create Customer Quotation

Navigation Menu Path Trans Code Enter the following information: Quotation type: Sales Organization: Distribution channel: Division: (Enter) The Item Overview screen of the quotation appears. Enter the following information: Quotation: Leave blank (system assigns number) Sold-to party: Number from Creating a Customer Ship-to party: Leave blank PO number: Any number or text Valid to date: Date = one month ahead of todays date Material: SPEN_ _ _ Order quantity: 150 (Enter) (Save) Record Quotation Number: __________________ Record the system message: Message QT S999 RE 01 Logistics Sales and distribution Sales Quotation Create
Page 11
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 6: Create Sales Order with Reference to a Quotation
Navigation Menu Path Trans Code Enter the following information: Order type: Sales Organization: Distribution channel: Division: Click on the OR S999 RE 01 button. Logistics Sales and distribution Sales Order Create
Enter the number of the quotation created in the previous exercise. Note that the system defaults to the Offer Tab. This is the same as the quotation. Select The system copies the details of the quotation into the Sales order.
Select the option that gives you a complete delivery on the proposed date. Enter Purch. Order no.: PO Date: Delivering plant Enter any number or text. Todays date P999
(Enter) Enter through any warnings Verify details of: Field Name Net value Value $
(Save) Record Order Number _______________________________ Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 7: Check Stock Status

Navigation Menu Path Logistics Materials management Inventory management Environment Stock Stock overview
Trans Code Enter the following information: Material: Plant: Display version: (Execute) In the column Unrestricted use the current inventory is displayed Double click on Unrestricted Use. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Check the sales orders quantity (Sales orders) stock type Now check the delivery quantity (Scheduled for delivery) stock type (Exit) To return to SAP Easy Access Menu Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Scheduled for Material Use Sales Orders Delivery SPEN _ _ _ SPEN_ _ _ P999 1
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 8: Run Material Requirements Planning Single Item, Single Level
Navigation Menu Path Logistics Materials management Materials requirements planning (MRP) MRP Planning Single-Item, Single-Level
Trans Code Enter the following information: Enter material number: Enter plant: Processing key: Create pur. req.: Deliv. schedule: Create MRP list: Planning mode: Scheduling: Select SPEN_ _ _ P999 NETCH 2 3 1 1 1 Display results before they are saved
(Enter) A warning message appears - please check input parameters (Enter) again to confirm and check the warning message Review the MRP list (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 9: Convert Purchase Requisition to Purchase Order
Navigation Menu Path Logistics Materials management Materials requirements planning (MRP) MRP Evaluations Stock/requirements list
Trans Code Enter the following information: Material: Plant:
SPEN_ _ _ P999
(Enter) Double click on the purchase req to be converted. Click on the Enter Purchasing Organization Purchasing Group Company Code Enter Vendor (Enter) Single Click on Open Requisitions line in the left window button P999 999 C999 (From the Vendor you created 100???)
Then Select
(Adopt)
Enter a Net Price: Increase the PO quantity to:
1.25 1000
(Enter) Record the amount of the purchase order $__________________ (Save)
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Record the new purchase order number._____________________ (Refresh) button to refresh the Stock/Reqmts List Select the Notice the MRP elements change from the old PurReq to display the new POitem. Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 10: Create Goods Receipt

Navigation Menu Path Logistics Materials management Inventory management Goods movement Goods receipt For purchase order GR for purchase order (MIGO)
Trans Code
Enter the following information: Enter your PO # (Execute) Ensure each line item OK is checked Enter storage location 10 4500000???
Notice that the quantity from the PO defaults as the quantity to receive. Select or (Save)
Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 11: Create Invoice Receipt from Vendor
Navigation Menu Path Logistics Materials management Logistics invoice verification Document entry Enter invoice
Trans Code Enter the following information: Invoice Date: Check your Company Code: Enter Currency: PO number: (Enter) Enter amount: Tax code: (Enter) Use the (Post) Record the system message: Message button to see if the postings are correct. Enter amount from invoice XI (Enter today's Date) C999 USD (Enter your purchase order number 4500000???)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 12: Post Payment to Vendor

Navigation Menu Path Accounting Financial accounting Accounts payable Document entry Outgoing payment Post
Trans Code Enter the following information: Document date: Today Bank data: Account: 100999 Amount: Enter the amount of the outgoing payment from invoice Text: Invoice Number or other text Open item selection: Account: Enter your Vendor # (Created in Exercise 2) All other settings remain unchanged. Select Review the balance. Double click on your gross amount from the Invoice Receipt unit Not assigned is $0.00 (if necessary) (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 13: Create Delivery Note for Sales Order
Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Create Single document With reference to sales order
Trans Code Enter the following information: Shipping point: Selection date: Order: (Enter) The system defaults the items and quantities from the sales order that are scheduled to be delivered. Click on the line item 10 (Details) (Back) Picking Tab: Verify system selected: (Enter) (Save) Record the system message: Message Plant/Sloc: = P999 / 10 for each item S999 Enter a date 7 days from today Enter the order number of the sales order created earlier
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Trans Code Enter the following information: Material: Plant: Display version: (Execute) In the column Unrestricted use the current inventory is displayed Double click on the line with your Plants stock. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Check the sales orders quantity (Sales orders) stock type Now check the delivery quantity (Scheduled for delivery) stock type (Exit) To return to SAP Easy Access Menu Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Sales Orders Use SPEN _ _ _ SPEN_ _ _ P999 1
Scheduled for Delivery
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 15: Picking Materials on Delivery Note
Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Enter the delivery note number from the previous exercise. (Enter) The material delivery quantity is proposed. Enter Pick quantity to match the proposed delivery quantity Verify that the storage location is for inventory
(Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 16: Post Goods Issue

Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Enter the delivery note number. Select The system returns a message indicating change to the delivery note. Record the system message: Message
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Trans Code Enter the following information: Material: Plant: Display version: (Execute) In the column Unrestricted use the current inventory is displayed Double click on the line with your Plants stock. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Check the sales orders quantity (Sales orders) stock type Now check the delivery quantity (Scheduled for delivery) stock type (Exit) To return to SAP Easy Access Menu Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Sales Orders Use SPEN _ _ _ SPEN_ _ _ P999 1
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 18: Bill Customer

Navigation Menu Path Trans Code The system will default the last delivery document created. (Execute) The system displays the customer and the materials on the delivery with total values to be billed. Record the total amount billed to the customer: $____________________ (Save) The billing document number is displayed at the bottom of the screen. Record the system message: Message Logistics Sales and distribution Billing Billing document Create
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 19: Post Receipt of Customer Payment
Navigation Menu Path Accounting Financial accounting Accounts receivable Document entry Incoming payment
Trans Code Enter the following information: Document date: Company code: Currency/rate: Bank data: Account: Amount: Open item selection Account: Select Double-click on the USD Gross amounts until black and the not assigned amount = 0.00 (Save) Record the document number for this posting ________________ Record the system message: Message Todays date C999 USD 100999 Enter the amount of the payment (from sales order) Enter Your customer # (Created in Exercise 4)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 20: Document Flow

Navigation Menu Path Trans Code Enter your order number. Select Menu: Environment Display Document flow The system displays a list of documents associated with the order. Click on the line of the GD goods issue: delvy 49000.### Select Select to view the account postings for this goods movement. Logistics Sales and distribution Sales Order Display
(Back) to the overview screen It can be seen from the document flow that: 1. The entire document flow is shown.
2. There are no open documents. 3. The business cycle is complete. Note: You can view the document flow from the Sales Order, Delivery or Billing screens. Click on the line of the Standard Order # Select the The document flow can be seen in greater detail. Click on the line of the Outbound Delivery # Select the The Document Header Status can be viewed
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Unit 3:
Purpose of Unit The purpose of Unit 3 is to establish the Organizational Structure and some Rules for Financial Accounting (FI). Once the various organizational elements are defined they will need to be assigned. This unit will establish the core structure necessary to conduct financial transactions within the system.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 21: Create Company Code

Purpose of Exercise The purpose of this exercise is to define a company code. A company code represents a legal organizational entity and a separate accounting unit in Financial Accounting (FI). This organizational element is often referred to as a balanced set of books. The company code is the level at which all accounting transactions are captured. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Financial accounting Edit, copy, delete, check company code
Trans Code Double click on Edit Company Code Enter the following information: Click on the Company code = Company name = City = Cntry = Curr. = Language = Select Name Name = Search Term Search term = Address Street = Postal code = City = Country key = Region = (Enter) (Save) (Enter) Record the system message: Message button. C_ _ _ (where _ _ _ is your student number) (Your Name) Pen Inc. (e.g., John Pen Inc.) Vermillion US USD EN (Address) (Your Name) Pen Inc. (e.g., John Pen Inc.) _ _ _ (Your student number) 123 Forest Avenue 57069 Vermillion US SD
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 22: Copy Chart of Accounts

Purpose of Exercise The purpose of this exercise is to copy an existing Chart of Accounts into your own Chart of Accounts. This is necessary due to the complicated process of establishing the linkages necessary to create your own retained earnings account. A Chart of Accounts (CPEN) was established as the basis for your Chart of Accounts CPEN contains only a retained earnings account with all the linkages already established. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting General ledger accounting G/L accounts Master records G/L accounts creation and processing Alternative methods Copy G/L accounts Copy chart of accounts
Trans Code (Deselect all) options Select only (Enter) Chart of accounts Chart of accounts name Reference Chart of accounts (Enter) (Copy) to acknowledge the print request Record the system message: Message Accts in chart/accts
C_ _ _
(where _ _ _ is your student number)
Chart of Accounts Pen Inc_ _ _ CPEN
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 23: Define Retained Earnings Account
Purpose of Exercise The purpose of this exercise is to designate an account as the retained earnings account in financial accounting. The retained earnings account is tied to a variety of accounts and is used in closing the fiscal year. At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. Navigation Menu Path:
Tools Customizing IMG Edit project Financial accounting General ledger accounting G/L accounts Master records Preparations Define retained earnings account
Transaction Code: Chart of Accounts (Enter) P&L statmt RE Account 330000 C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 24: Create Account Groups

Purpose of Exercise The account group is a classifying feature within the G/L account master records. The account group is a required entry. The account group determines the fields for the entry screens if you create or change a master record in the company code. In the account group a number range interval is defined to which accounts can be assigned. Field statuses for each account group control the behavior of the fields when you are creating a general ledger account such as whether or not the field is required, suppressed, optional, or display only. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting General ledger accounting G/L accounts Master records Preparations Define account group
Trans Code
Enter your chart of accounts (Enter) Select
C_ _ _
C_ _ _, Group BS Balance Sheet Accounts
100000 399999
Position Cursor on Account Control (Choose) Account Control Currency Tax category Reconciliation account Exchange rate difference key Account managed in ext. system Only balances in local crcy Alternative account number Inflation key Tolerance group (NEXT) Account management Line Item Management Open item management Sort key Authorization group Administrator (Accounting Clerk) Suppress Req. entry Opt. entry X X Display
X X X X X X X
Suppress
Req. entry
Opt. entry X X X
Display
X X
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(Next) Document entry Reconcil.acct ready for input Field status group Post automatically only Supplement automatic postings (Save) Select C_ _ _, Group PL Profit & Loss Accounts 400000 999999
Suppress X
Req. entry X
Opt. entry
Display
X X
Position Cursor on Account Control (Choose) Account Control Currency Tax category Reconciliation account Exchange rate difference key Account managed in ext. system Only balances in local crcy Alternative account number Inflation key Tolerance group (Next) Account management Line Item Management Open item management Sort key Authorization group Administrator (Accounting Clerk) (Next) Document entry Reconcil.acct ready for input Field status group Post automatically only Supplement automatic postings (Save) X X X X X X X X X X X X Suppress Req. entry Opt. entry X X Display
Suppress
Req. entry
Opt. entry X
Display
Suppress X
Req. entry X
Opt. entry
Display
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Reconciliation Accounts
Chrt/accts Acct Group Name From acct To account (Enter) (Save) Select
C_ _ _ RA Reconciliation Accounts 110000 310000
C_ _ _, Group RA - Reconciliation Accounts 110000 310000
Position Cursor on Account Control (Choose) Account Control Currency Tax category Reconciliation account Exchange rate difference key Account managed in ext. system Only balances in local crcy Alternative account number Inflation key Tolerance group (Next) Account management Line Item Management Open item management Sort key Authorization group Administrator (Accounting Clerk) (Next) Document entry Reconcil.acct ready for input Field status group Post automatically only Supplement automatic postings (Save) (Back) (Back) X X X X Suppress X X X X X X X X Suppress X X Req. entry Opt. entry X Display Req. entry Opt. entry X Display
Suppress X
Req. entry X
Opt. entry
Display
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 25: Review Field Status Variant
Purpose of Exercise A field status variant groups together several field status groups. You assign a field status variant to each company code. The field status group specifies which fields are ready for input, which fields must be filled or which fields are suppressed when entering documents. Specifying which fields are required, suppressed, optional, or display only when using the various general ledger accounts. A field status group is assigned to a general ledger account when it is created. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Line item Controls Maintain field status variants
Trans Code Select Double click Select VPEN Field status groups ZALL, All Accounts
Position Cursor on General Data (Choose) General Data Assignment number Text Invoice Reference Hedging Collective Invoice Reference specification 1/2 Reference specification 3 Inflation Index Suppress Req. entry Opt. entry X X X X X X X X
View fields statuses (Do not change only review) (Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 26: Assign Company Code to Field Status Variant
Purpose of Exercise The purpose of this exercise is to assign your company code to the field status variant you just created. By doing this you will allow your company code to use the field status variant and the groups that you created within the variant. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Line item Controls Assign company code to field status variants
Trans Code Click on the line with your Company code Fld stat. var. (Save) Record the system message: Message C_ _ _ VPEN
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 27: Assign Company Code to Chart of Accounts
Purpose of Exercise The purpose of this exercise is to assign your company code to your chart of accounts. A company code can have only one chart of accounts. A chart of accounts can have more that one company code. If you have several legal entities within your enterprise, it would make sense to have all of the entities use the same chart of accounts. This would facilitate the creation of consolidated financial statements. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting General ledger accounting G/L accounts Master records Preparations Assign company code to chart of accounts
Trans Code Enter the following information: Select your company code C_ _ _ Chart of Accounts C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 28: Assign Company Code to Fiscal Year Variant
Purpose of Exercise
The purpose of this exercise is to assign your company code to a fiscal year variant. A fiscal year variant is used to define the following: how many posting periods a fiscal year has how many special periods you need how the system is to determine the posting periods when posting When defining your fiscal year, you have the several options: Your fiscal year is the calendar year Your fiscal year is not the same as the calendar year and is not year-dependent Your fiscal year is not the same as the calendar year and is year-dependent
Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Fiscal year Assign company code to a fiscal year variant
Trans Code
Enter the following information: Click on the line with your Company code Fiscal year variant field (Save) Record the system message: Message C_ _ _ K1 (Calendar year, 1 spec. period)
Please notify your instructor if you encounter problems in saving your entry due to the table locking mechanism.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 29: Create Credit Control Area
Purpose of Exercise The purpose of this exercise is to create an organizational structure that is used to specify and control the credit limits for customers. A credit control area can include one or more company codes. Including more than one company code in an enterprise allows for the control of a customers credit across all company codes assigned to that credit control area. It is not possible to assign a company code to more than one credit control area. The credit limits must be specified in the same currency for all company codes in a credit control area. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Financial accounting Define credit control area
Click on the Credit control area = Currency = (Back) Description = (Save) Record the system message: Message
button. C_ _ _ USD
Pen Inc. Credit Control Dept._ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 30: Assign Company Code to Credit Control Area
Purpose of Exercise This exercise has you assign your company code to the credit control area you created to manage your customers credit limits. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Financial accounting Assign company code to credit control area
Trans Code Enter the following information: Click on the line with your Company code CCAr field (Save) Record the system message: Message C_ _ _ C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 31: Assign Permitted Credit Control Areas to Company Code
Purpose of Exercise In this activity you can enter additional credit control areas which are allowed for each company code, in addition to this default credit control area. The control area assigned to the company code only acts as a default value and is used, for example, for crediting commitments in the case of non-assignable incoming payments from customers. Otherwise, with every payment, the credit amount is deducted in the control area in which it was also added (as previously). Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Account receivable and accounts payable Credit management Credit control account Assign permitted credit control areas to company code
Trans Code Enter the following information: Click on the button. C_ _ _ C_ _ _
Enter your Company code = Enter your Credit Control Area =
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 32: Open

Purpose of Exercise
Navigation Menu Path Trans Code
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BUSINESS PROCESS INTEGRATION I (BPI I) Unit 4:

Purpose of Unit The purpose of Unit 4 is to establish the Organizational Structure for Material Management (MM). Once the various organizational elements are defined they will need to be assigned. This unit will establish the core structure necessary to conduct material management transactions within the system.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 33: Verify Valuation Area

Purpose of Exercise The purpose of this exercise is to verify that the valuation area is set to plant level. Having the valuation set at the plant level facilitates plant level materials requirements planning. Navigation Menu Path:
Tools Customizing IMG Edit project Enterprise structure Definition Logistics General Define valuation level
Transaction Code:
The defined valuation level is preset at the plant level.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 34: Define Plant

Purpose of Exercise This exercise will allow you to create a plant. A plant is an organizational structure within our company. As an organizational structure, the plant is assigned to a company code. However a company code can have several plants. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Logistics general Define, copy, delete, check plant
Trans Code Double click on the Define plant line. Enter the following information: Click on the Enter plant code: Enter factory calendar: Select Name Name Name 2 Search Term Search term Address Street City Postal code Country key Region (Enter) (Save) (Enter) Record the system message: Message (Address) Pen Inc Warehouse_ _ _ Your First Name _ _ _ (Your student number) 123 Glen Avenue Vermillion 57069 US SD button. P_ _ _ US (_ _ _ = your student number)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 35: Define Storage Locations (Inventory and Quality)
Purpose of Exercise This exercise will have you create the locations where our inventory will be physically kept. A storage location is where the quantity of inventory is managed not the value. The value is managed at the plant level. A plant can have more than one storage location. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Materials management Maintain storage location
Trans Code Enter the following information: Enter your Plant: (Enter) Click on the Storage Location: 10 20 Inventory Quality button. P_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 36: Define Purchasing Organization

Purpose of Exercise The purpose of this exercise is to create the Purchasing Organization. The purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions. The purchasing organization is the organizational unit that subdivides an enterprise according to the requirements of purchasing. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Materials management Maintain purchasing organization
Trans Code Enter the following information: Click on the Enter the following: Purch Organization: Purch. Org. Descr.: (Save) Record the system message: Message button.
P_ _ _ Purchasing Org. _ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 37: Create Purchasing Group

Purpose of Exercise This exercise has you create a purchasing group. A purchasing organization (such as created in the previous exercise) can be subdivided into purchasing groups, which consist of buyers responsible for certain day-to-day purchasing activities (e.g., precious metals, services, etc.). Navigation Menu Path Tools Customizing IMG Edit project Materials management Purchasing Create purchasing groups
Trans Code There are three examples provided by the system. Students 001, 002, and 003 will need to type their name over the word Einkaufer and save.
All other students follow the instructions below: Enter the following information: Click on the Purchasing Group Description Tel. no. purch. Group button. ___ Type in Your Name 605 555 1414
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 38: Assign Plant to Company Code
Purpose of Exercise This exercise has you assign your plant to your company code. This will facilitate the recording or tracking of transactions at the plant level. Each plant must be assigned to a company code. A plant can only belong to one company code. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Logistics general Assign plant to company code
Trans Code Enter the following information: Select your company code Click on the button. P_ _ _
Select the your plant to assign (Enter) Scroll up to review assignment. (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 39: Assign Purchasing Organization to Company Code
Purpose of Exercise The purpose of this exercise is to assign your purchasing organization to your company code. The assignment can be done differently based on the type of purchasing your organization does. For example: You can assign a purchasing organization to several company codes. This facilitates corporate-group-wide purchasing. You can assign a purchasing organization to one company code. This facilitates companyspecific purchasing. You can assign a purchasing organization to no company code. This purchasing organization can then procure for all plants assigned to it, without regard to the company code to which it belongs. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Materials management Assign purchasing organization to company code
Trans Code Select your company code Click on the button. P_ _ _
Select your purchasing organization (Enter) to assign Scroll up to review (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 40: Assign Purchasing Organization to Plant
Purpose of Exercise This exercise allows you to assign your purchasing organization to a plant for plant specific purchasing. A purchasing organization can be assigned to one or more plants. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Materials management Assign purchasing organization to plant
Trans Code Select your purchasing organization Click on the Select your plant (Enter) to assign it (Save) Record the system message: Message button. P___
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 41: Setup Parameter ID

Purpose of Exercise The purpose of exercise is to establish standard default entries for your user ID. The parameters established in this exercise provide the default information for your transaction screens. When establishing defaults for your ID, you would generally not want to create default parameter values for entries that change frequently. Navigation Menu Path Trans Code Select the Parameter tab Enter the PID and Parameters in ALL CAPITALS as the code values are case sensitive! Enter the following Values: Parameter Value (PID) WRK P_ _ _ BUK EKG EKO FWS GJR KPL C_ _ _ ___ P_ _ _ USD 2006 C_ _ _ Description Plant Company Code Purchasing Group Purchasing Organization Currency Units Fiscal Year Chart of Accounts Comments System User profile Own data
(Enter) to display the short text description (Save) Record the system message: Message
To find the Parameter IDs: Navigate to the screen that holds the field that requires the parameter and hit F1 Select (Technical information) Then look for the three digit Parameter ID code on the Technical information screen. Enter this code in the parameter column followed by your most common value for that entry.
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BUSINESS PROCESS INTEGRATION I (BPI I) Unit 5: Create General Ledger Accounts

Purpose of Unit The purpose of Unit 5 is to create the General Ledger Accounts necessary for the legal reporting requirements associated with a Balance Sheet and an Income Statement. This includes: Balance Sheet accounts for assets, liabilities and retained earnings Income Statement for revenues and expenses
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 42: Create Retained Earnings Account
Purpose of Exercise This exercise will extend this account as well as add additional information to the Retained Earnings account created when you copied the CPEN accounts into your C_ _ _ Chart of Accounts. A Retained Earnings account is a Balance Sheet account that records values to be carried forward from one period to the next. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Select: 330000 C_ _ _
Balance Sheet Account Balance Sheet Account
Retained Earnings Retained Earnings
USD Only balances in local currency
Account Management in Company Code Select: Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Select Post automatically only (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 43: Create Bank Account

Purpose of Exercise This exercise will create a general ledger account for your bank account. This is an asset balance sheet account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create/Anlegen) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Select: 100_ _ _ C_ _ _
BANK (enter your bank name)
Account Management in Company Code Select: Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 44: Create Common Stock Account
Purpose of Exercise This exercise will create a general ledger account for your common stock account. This is an asset balance sheet account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Select: 350_ _ _ C_ _ _
Common Stock (Common Stock _ _ _)
Account Management in Company Code Select: Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 45: Create Trading Goods Inventory Account
Purpose of Exercise This exercise will create a general ledger account for your trading goods inventory account. This is an asset balance sheet account that records the value of the current inventory. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Inventory - Trading Trading Goods Inventory
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 46: Create Operating Supplies Inventory Account
Purpose of Exercise This exercise will create a general ledger account for your operating supplies inventory account. This is an asset balance sheet account that records the value of the current inventory. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Operating Supplies Operating Supplies Inventory
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 47: Create Output Tax Account
Purpose of Exercise This exercise will create a general ledger account for your output tax account. This is an asset balance sheet account that records the value tax that has been accrued in this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Accrued Tax - Output Accrued Tax - Output
Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 48: Create Input Tax Account
Purpose of Exercise This exercise will create a general ledger account for your input tax account. This is an asset balance sheet account that records the value tax that has been accrued in this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Accrued Tax - Input Accrued Tax - Input
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 49: Create Goods Receipt / Invoice Receipt Account
Purpose of Exercise This exercise will create a general ledger account for your Goods Receipt / Invoice Receipt account. This is an asset balance sheet account that records the value of a goods receipt from a vendor in the purchasing process prior to matching it up with and invoice from the vendor. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Check box Tax category Select 310_ _ _ C_ _ _
GR/IR Account Goods Receipt / Invoice Receipt Account
USD Only balances in local currency * (All tax types allowed) Posting without tax allowed
Account Management in Company Code Select Open Item Management Check Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Check Post automatically only (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 50: Create Accounts Payable Reconciliation Account
Purpose of Exercise This exercise will create the Accounts Payable Reconciliation account. This account is used to sum up vendor accounts. Multiple reconciliation accounts could be used you wanted to keep track of different vendor accounts. This type of account is normally used wherever there is a high volume of transactions that can be summarized into a single account for reporting on the Balance Sheet. This is a liability on the Balance Sheet. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Recon. acct for acct type: 300_ _ _ C_ _ _
Reconciliation Account Balance Sheet Account
AP Recon Accounts Payable Reconciliation
USD VENDORS
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 51: Create Accounts Receivable Reconciliation Account
Purpose of Exercise This exercise will create the Accounts Receivable Reconciliation account. This account is used to sum up customer accounts. Multiple reconciliation accounts could be used you wanted to keep track of different customer accounts. This type of account is normally used wherever there is a high volume of transactions that can be summarized into a single account for reporting on the Balance Sheet. This is an asset on the Balance Sheet. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Recon. acct for acct type: 110_ _ _ C_ _ _
Reconciliation Account Balance Sheet Account
AR Recon Accounts Receivable Reconciliation
USD CUSTOMERS
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 52: Create Trading Goods Consumption Expense Account
Purpose of Exercise The purpose of this exercise is to create a Trading Goods Consumption Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Select 721_ _ _ C_ _ _
Profit and loss accounts P&L statement account
Trading Good Expense Trading Goods Consumption/Expense
USD Posting without tax allowed
Account Management in Company Code Select Line item display Sort Key 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 53: Create Operating Supplies Expense Account
Purpose of Exercise The purpose of this exercise is to create an Operating Supplies Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code (Create) Type/description TAB Control in Chart of Accounts Account Group Select Radio Button Description Short text: G/L acct long text Control data TAB Account Control in Company Code Currency Tax category Select 740_ _ _ C_ _ _
Supplies Expense Supplies Expense
USD * (All tax types allowed) Posting without tax allowed
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 54: Create Utilities Expense Account
Purpose of Exercise The purpose of this exercise is to create a Utilities Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Utilities Expense Utilities Expense Account
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 55: Create Purchase Price Difference Expense Account
Purpose of Exercise The purpose of this exercise is to create a Purchase Price Difference Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Pur Price Dif Acct Purchase Price Difference Account
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 56: Create Information Technology Expense Account
Purpose of Exercise The purpose of this exercise is to create a Information Technology Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
IT Expense Information Technology Expense
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 57: Create Miscellaneous Expense Account
Purpose of Exercise The purpose of this exercise is to create a Miscellaneous Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Misc. Expense Miscellaneous Expense
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 58: Create Cost of Goods Sold Expense Account
Purpose of Exercise The purpose of this exercise is to create a Cost of Goods Sold Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Cost of Goods Sold Cost of Goods Sold Expense
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 59: Run General Ledger List of Accounts Report
Purpose of Exercise This exercise will provide you with a report that summarizes all accounts assigned to your company code. Use this accounts to verify that you have indeed created all the accounts you needed to create for your company. Navigation Menu Path Accounting Financial accounting General ledger Information system General ledger reports Master data G/L account list SAP minimal variant
Trans Code Enter the following information: Enter your Company code (Execute) Review the list of accounts Verify details of: Account Number 100_ _ _ 110_ _ _ 201_ _ _ 203_ _ _ 300_ _ _ 310_ _ _ 320_ _ _ 321_ _ _ 330000 350_ _ _ 721_ _ _ 740_ _ _ 750_ _ _ 760_ _ _ 770_ _ _ 781_ _ _ 790_ _ _ C_ _ _
Description Short Text Bank AR Recon Inventory Trading Operating Supplies AP Recon GR/IR Account Accrued Tax - Output Accrued Tax - Input Retained Earnings Common Stock Trading Goods Expense Supplies Expense Utilities Expense Pur Price Dif Acct IT Expense Misc. Expense Cost of Goods Sold
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Purpose of Unit The purpose of Unit 6 is to create the Master Data necessary for Material Management. This includes: Vendor Master Data who do you buy from Material Master Data what do you buy
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 60: Create Vendor Master Accounting Record
Purpose of Exercise This exercise has you create the general and financial views of a vendor master record. Business transactions are posted to accounts and managed using those accounts. A master record must be created for each account that you require. Vendor master records have three primary views: General Data Financial Accounting Data often referred to as company code data and Purchasing Data The master record can be created by financial accounting or purchasing. The record can be created with only that departments view along with the general view or it can be created centrally if all the information is known. Navigation Menu Path Accounting Financial accounting Accounts payable Master records Create
Trans Code Enter the following information: Vendor: Company code Account group (Enter) Name Name: Search Term Search term Address Postal code City Country Region Communication Language Promotions Ltd. _ _ _ _ _ _(Your Student Number) 95929 Chico US CA English
Leave blank C_ _ _ KRED
(Enter) Note: Page forward past views that do not contain relevant information Accounting Information Accounting Recon. account Payment transaction Accounting Payment term Select 300_ _ _ 0001 Check double inv.
(Save) Record the vendor number Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 61: Create Vendor Master Purchasing Record
Purpose of Exercise This exercise has you create the purchasing view for the vendor master you created in the previous exercise. Since you have a vendor number, this will be needed to complete the creation of the purchasing view. Navigation Menu Path Logistics Materials management Purchasing Master data Vendor Purchasing Create
Trans Code
Create a purchasing view for your Promotions Ltd _ _ _ vendor. Vendor # for your Promotions Ltd : ___________ Purchasing organization: P_ _ _ Account Group: KRED. (Enter) Create Vendor: Purchasing Data Conditions Order Currency: Terms of payment: (Save) Record the system message: Message USD 0001
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 62: Create Vendor Master Record Centrally
Purpose of Exercise This exercise has you create all three views of the vendor master (general, financial, and purchasing). Navigation Menu Path Logistics Materials management Purchasing Master data Vendor Central Create
Trans Code Create all views for a new vendor called Slick Pens _ _ _. Leave vendor field blank (system will generate the new number) Company code: C_ _ _ Purchasing organization: P_ _ _ Account Group: KRED. (Enter) Name Enter the vendors name Search Term Search term = Address Postal code = City = Country = Region = Communication Language = Slick Pens _ _ _ _ _ _(Your Student Number) 53201 Milwaukee US WI English
(Enter) Note: Page forward past views that do not contain relevant information Control Payment transactions Accounting Information Accounting Recon. Account = Payment transactions Accounting Payment term = Select Correspondence Accounting Purchasing data Order Currency = Terms of payment = (Save) Record the system message: Message N/A N/A 300_ _ _ 0001 Check double inv. N/A USD 0001
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Trans Code Create all views for a new vendor called Premier Pens _ _ _. Address Leave vendor field blank (system will generate the new number) Company code = C_ _ _ Purchasing organization = P_ _ _ Account Group = KRED. (Enter) Name Enter the vendors name = Search Term Search term = Address Postal code = City = Country = Region = Communication Language = Premier Pens _ _ _ _ _ _ (Your Student Number) 70803 Baton Rouge US LA English
(Enter) Note: Page forward past views that do not contain relevant information Control Payment transactions Accounting Information Accounting Recon. Account = Payment transactions Accounting Payment term = Select Correspondence Accounting Purchasing data Order Currency = Terms of payment = (Save) Record the system message: Message N/A N/A 300_ _ _ 0001 Check double inv. N/A USD 0001
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Trans Code Create all views for a new vendor called Supply Box _ _ _. Address Leave vendor field blank (system will generate the new number) Company code = C_ _ _ Purchasing organization = P_ _ _ Account Group = KRED. (Enter) Name Enter the vendors name = Search Term Search term = Address Postal code = City = Country = Region = Communication Language = Boxes Inc _ _ _ _ _ _ (Your Student Number) 51031 LeMars US IA English
(Enter) Note: Page forward past views that do not contain relevant information Control Payment transactions Accounting Information Accounting Recon. Account: Payment transactions Accounting Payment term: Select Correspondence Accounting Purchasing data Order Currency: Terms of payment: (Save) Record the system message: Message N/A N/A 300_ _ _ 0001 Check double inv. N/A USD 0001
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 65: Display Material Groups

Purpose of Exercise This exercise has you look at material groups. Material groups allow you to group together materials with the same attributes or purpose. You can use material groups to limit the scope of analyses and systematically search for material master records using matchcodes. Material Group 01 will be used for all materials in this class. Navigation Menu Path Tools Customizing IMG Edit project Logistics general Material group Display material group
Trans Code Review the following information: Material Group: (Enter) 01 (Material Group 1)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 66: Initialize the Fiscal Period for Company Code
Purpose of Exercise The purpose of this exercise is to initialize the fiscal period for your company code. This allows for the movement of materials and will facilitate your ability to conduct transactions. Great care needs to be utilized when carrying out this exercise. Note: If you create an initial posting period in the future, no transactions will be possible until that period. You will then need to start over at the beginning of the exercises. Navigation Menu Path Tools Customizing IMG Edit project Logistics general Material master Basic settings Maintain company codes for materials management
Trans Code
Enter current year and current period for your company code C_ _ _ Select (Save) Record the system message: Message ABp (allow posting to previous period)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 67: Maintain Plant Parameters for Materials Management
Purpose of Exercise In this exercise you will specify the plant parameters you will need for material requirements planning. Navigation Menu Path Tools Customizing IMG Edit project Materials management Consumption-based planning Plant parameters Carry out overall maintenance of plant parameters
Trans Code Enter the following information: Select Enter your plant: Select Select Enter your plant: Select Environment Select Number Ranges Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant (Save) (Back twice) (Save) (Back) (Save) (Back) (Save) (Back) (Save) (Back) P_ _ _ P_ _ _
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Master data Select Select Plant: MRP controller (Save) Select Select Plant: Scheduling margin key: Op.Pd: FlBefPro: FlAftProd: ReleasPer: (Save) Planned Orders Select Number of Planned Orders (Save) Select Select your plant Enter checking rule: (Save) Reporting Select Select Enter 1 for frequency (Save) Planning Run Select Plant Parameters Check scheduling info record/agreem. Creation of Delivery schedules. Account assign. of Non-Valuated Material (Back) Display List 1 (Back) (Back) 1 (Back twice) P_ _ _ _ _ _ ( Your Student Number) 5 (Workdays prior to order start) 1 (Workdays between order start and scheduled start) 1 (Workdays between order due date and scheduled finish date) 1 (Workdays in release period) (Back twice) P_ _ _ _ _ _ and description (Your name)
PP
3 (Schedule Lines) U (Unknown)
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(Save) Select Planning Horizon (Save) (Back three times) (Back two times)
15
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 68: Activate Material Requirements Planning
Purpose of Exercise This exercise activates Material Requirements Planning for your plant. Navigation Menu Path Tools Customizing IMG Edit project Materials management Consumption-based planning Planning Activate material requirements planning
Trans Code Enter the following information: Select Select Activate requirements planning for your plant
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 69: Define Attributes for Material Types
Purpose of Exercise The purpose of this exercise is to define the attributes for the material types. The attributes for a material type determine the functions allowed for materials of that category (HAWA, HIBE, etc.). Each material type has specific functions and views required to maintain the data. Since this is client level configuration is shared by everyone, therefore in this exercise you will only have to review the settings established by the Instructor. Navigation Menu Path Tools Customizing IMG Edit project Logistics general Material master Basic settings Material types Define attributes of material types
Trans Code Verify the following information is set. Trading Goods Select material type HAWA (Trading Goods) (Details) Internal/external purchase orders: Ext. purchase orders Int. purchase orders 2 (allowed) 0 (none allowed)
User Department: Deselect the Classification view Valuation: Notice the moving average has been selected.
Quantity/Value updating: Notice "In all valuation areas" for both quantity updating and value updating has been selected. (Back) Operating Supplies Select the material type HIBE (Operating Supplies) (Details)
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Internal/external purchase orders: Ext. purchase orders Int. purchase orders Valuation: Notice the moving average has been selected. 2 (allowed) 0 (none allowed)
Quantity/Value updating: Notice "In all valuation areas" for both quantity updating and value updating has been selected. (Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 70: Create Material Master for Trading Goods
Purpose of Exercise This exercise will have you create the trading good materials that will be necessary for your company. The Material Master has several views as you saw in the previous exercise when looking at the material type attributes. The views required are dependent on the type of material and the functionality required by the company. This exercise will also introduce you to the use of defaults in the creation of material master data. Navigation Menu Path Logistics Materials management Material master Material Create (special) Trading goods
Trans Code First set the defaults (you may need to select the industry sector prior to setting the defaults) Select industry sector Defaults Industry Sector (Enter) Defaults Views Select the following views: Retail Retail
Basic data 1 Purchasing MRP 1 MRP 2 MRP 3 General Plant Data/Storage 1 Accounting 1 (Deselect the Sales Views if selected) Create views selected
Select (Enter) Default Organization levels Company code: Plant:
Copy from C_ _ _ P_ _ _ C_ _ _ P_ _ _
Leave storage location blank (storage locations will be created automatically) (Enter) Enter the following information to create the materials: Enter material: BPEN_ _ _
(You may need to press enter once or twice to pass the views and organization level selections if you did not indicate that you only wanted to view these on request) Use the information following table for the inputs into the material master. Repeat the process for each of the materials.
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Use your student number for all entries where _ _ _ is indicated. Use the following information to create the materials Material Name BPEN_ _ _ Description Unit of Measure Material Group Gross & Net Weight / Unit Purchasing Group MRP Type MRP Controller Lot Size Min lot size Planned delivery time Schedule Margin key Safety Stock Availability check Value Class Moving Price Price Unit Barrel Pen EA 01 1 Oc ___ PD ___ EX 12 MRP 2 View 3 ___ 500 MRP 3 View 02 3100 $ 0.65 1 02 3100 $ 1.50 1 02 3100 $ 3.00 1 02 3100 $ 0.20 1 Accounting 1 View 3 ___ 150 6 ___ 20 3 ___ 500
CPEN_ _ _ Click Pen EA 01 1 Oc ___
PPEN_ _ _ Premium Pen EA 01 2 Oc ___ PD ___ EX
Box_ _ _ Pen Box EA 01 1 Oc ___ PD ___ EX 144
Basic data 1 View
Purchasing View MRP 1 View PD ___ EX 12
(Save after each material) Record the system messages: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 71: (Optional) Create Material Master for Operating Supplies
Purpose of Exercise This exercise will have you create the operating supplies that will be necessary for your company. The Material Master has several views as you saw in the previous exercise when looking at the material type attributes. The views required are dependent on the type of material and the functionality required by the company. Use the same default information for this exercise that you used when creating the trading good material master data. Navigation Menu Path Logistics Materials management Material master Material Create (special) Operating supplies
Trans Code Enter the following information: Enter material: TAPE_ _ _
(Enter twice past the views and plant selections) Use the following information to create the materials Material Description Unit of Measure Material Group Gross & Net Weight / Unit Order Unit Conversion factor for U of M Purchasing Group MRP Type Reorder point MRP Controller Lot Size Minimum lot size Fixed lot size Continue on next page 12 ___ FX ___ EX 1 10 ___ FX Tape_ _ _ Tape Each 01 8 Oc Purchasing Dozen 1 = 12 ___ MRP 1 View PD PD PD VB 1 ___ EX 1 ___ Case 1 = 10 ___ ___ Tissue _ _ _ Tissue Carton 01 1 lb Paper_ _ _ Paper Each 01 1 lb Forms_ _ _ Forms Carton 01 30 lb
Basic data 1 View
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Planned delivery time Schedule Margin key Safety Stock Availability check Value Class Moving Price Price Unit
MRP 2 View 1 ___ 10 MRP 3 View 02
1 ___ 10 02
2 ___ 2 02 3030 $ 35.50 10
5 ___ 1 02 3030 $ 52.50 1
Accounting 1 View 3030 3030 $ 9.60 12 $ 2.50 1
(Save after each material) Record the system message: Message
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Purpose of Unit The purpose of Unit 7 is to establish some of the rules that will control the financial accounting (FI) transactions. In addition to the rules document number ranges will be established and a payment program will be established. Once these rules and other parameters are established you will test your system in the next unit.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 72: Define Posting Periods Variant
Purpose of Exercise This exercise will define the variant to which the posting period will be assigned. Finanacial accounting (FI) posting periods will be opened to allow transactions to be tracked by period. This variant will then be assigned to a your company code. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Posting periods Define variants for open posting periods
Trans Code Enter the following information: Click on Variant = Name = (Save) (Back twice) Record the system message: Message
V_ _ _ Posting Period Variant
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 73: Open and Close Posting Periods
Purpose of Exercise The purpose of this exercise is to establish when the posting periods will be effective. In addition to establishing the open posting periods for financial accounting, you will also define the additional special closing periods. This will be in accord with the fiscal year variant (K1 calendar year with 1 special closing period) you set up earlier. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Posting periods Open and close posting periods
Trans Code
Click on Enter the following information: Type in the variant you just created Select Leave account columns blank
V_ _ _ + (Valid for all accounts)
Open periods 1 to 12 plus one extra period for current fiscal year by typing the following: From per 1 = 1 Year = 2006 To period = 12 Year = 2010 From per 2 = 13 Year = 2006 To period = 13 Year = 2010 (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 74: Assign Posting Period Variant to Company Code
Purpose of Exercise This exercise will have you assign the posting period variant to your company code. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Posting periods Assign variants to company code.
Trans Code Enter the following information: Enter variant for Company Code = Variant = (Save) Record the system message: Message
C_ _ _ V_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 75: Create Tolerance Groups for Account Postings
Purpose of Exercise The purpose of this exercise is to set up the tolerances you will use for the entry of financial accounting (FI) documents. A blank group is a valid tolerance group. By creating a blank group code the system will apply these rules as defaults unless a specific group is entered resulting in any person not assigned to another group by default will be assigned to this group Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Line item Define tolerance groups for employees
Trans Code Enter the following information: button. Click on the Group Enter your company code Upper limits for posting procedures Amount Per Doc Amount Per Open item Cash discount per line item Permitted payment differences Revenue Expense (Enter) (Save) Record the system message: Message Leave blank C_ _ _
1,000,000 100,000 5%
100 100
10% 10%
10 10
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 76: Setup Payment Program

Purpose of Exercise The payment program allows the company to have flexibility in paying bills. Example 1 Company code 0001 pays its own items and the items of company codes 0002 and 0003. All items are grouped into one payment. Company code 0001 0002 0003 Paying company code Sending company code 0001 0001 0001 0001 0001 0001
Example 2 Company code 0001 pays its own items and the items of company codes 0002 and 0003. However, a separate payment is created for each company code. Company code 0001 0002 0003 Paying company code Sending company code 0001 0001 0001 0001 0002 0003
Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Accounts receivable and accounts payable Business transactions Outgoing payments Automatic outgoing payments Payment method/bank selection for Payment Program Setup All Company Codes for Payment Transactions
Trans Code Enter the following information: button. Click on the Select your Company code (Enter) Enter Sending company code: Enter Paying company code: (Save) Record the system message: Message C_ _ _ (your company code) C_ _ _ (your company code)
C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 77: Create Tolerance Groups for Accounts Receivable and Accounts Payable
Purpose of Exercise This exercise will create tolerance groups that contain rules that affect cash discount and payment difference processing. These rules become effective during payment entry. As with earlier tolerances, a blank group field means that these rules will apply to all persons not assigned to a specific group. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Accounts receivable and accounts payable Business transactions Outgoing payments Manual outgoing payments Define tolerances (Vendors)
Trans Code Enter the following information: button. Click on the Enter your company code Tolerance group Tolerance group description Permitted payment differences Gain = Loss = C_ _ _ Leave blank DEFAULT _ _ _
10 and 1% 1 and 1%
Specifications for Posting Residual Items from Payment Differences Select Payment term from invoice Select Only grant partial cash disc (Enter) (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 78: Create Financial Accounting (FI) Document Numbers
Purpose of Exercise The purpose of this exercise is to have you establish which number ranges are assigned to the company code. Each document in the system is unique based on the following: Company Code Fiscal Year Document Number Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Document number ranges Copy to company code
Trans Code Enter the following information: Source Company Code Details Company Code: Target Company Code Details Company Code: (Execute) to accept the message. Review the information (Back) Record the system message: Message
US01 C_ _ _
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Purpose of Unit The purpose of Unit 8 is to post your initial cash investment and conduct and initial test on the system by posting the purchase of some supplies.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 79: Review Document Types

Purpose of Exercise The purpose of this exercise is to review the different type of documents you will be using. A document type is used to; distinguish between different types of business transactions, the document type controls which account type that you are allowed to post (G/L account, customer, vendor, fixed assets.), and a document type is assigned to a specific document number range. Below are listed a few of the document types that we will be using throughout this course. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Document Document header Define document types
Trans Code
(Change -> Display) Make sure the title of the screen is: Display View Document Types; Overview Select the following document types and record the Document Number Ranges Review the details of: Document type DR DZ KR KZ RE SA WA WE
Document Customer invoice Customer payment Vendor invoice Vendor payment Invoice Gross G/L account document Goods issue Goods receipt
Document Number Range
(Details) list the Documents Number Range in the table above.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 80: Post Initial Cash Investment by Owners
Purpose of Exercise The purpose of this exercise is to test your initial FI setup. The business scenario is that you ingest $750,000 to start up your business. You need to account for this transaction in your Financial Accounting System. Navigation Menu Path Accounting Financial accounting General ledger Document entry Enter GL account document
Trans Code Enter the following information: Document date: Currency/rate: Company code: On the first line Enter: G/L Account: D/C Amount in Doc Curr On the second line Enter: G/LAccount D/C Amount in Doc Curr (Enter) Today USD (Your code should default)
100_ _ _ (Bank Account) Debit $ 750,000
350_ _ _ (Common Stock) Credit $ 750,000
Use the (Back) (Save)
button to see if the postings are correct.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 81: Post Purchase of Operating Supplies
Purpose of Exercise The purpose of this exercise is to test your initial FI setup. The business scenario is that you need some office supplies immediately. You drive down to Office Supply Depot and buy $75 of supplies (paper, folders, etc) and pay for the purchase with a company check. Navigation Menu Path Accounting Financial accounting General ledger Document entry Enter GL account document
Trans Code Enter the following information: Document date: Currency/rate: Company code: On the first line Enter: G/L Account: D/C Amount in Doc Curr On the second line Enter: Account D/C Amount in Doc Curr (Enter) Today USD (Your code should default)
740_ _ _ (Supplies Expense Account) Choose Debit $ 75
100_ _ _ (Bank) Choose Credit $ 75
Use the (Back) (Save)
button to see if the postings are correct.
(Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 82: Display and Review General Ledger Account Balances and Individual Line Items
Purpose of Exercise
Navigation Menu Path Accounting Financial accounting General ledger Account Display balances
Trans Code Enter the following information: Account number: Company Code Fiscal Year (Execute) Record the entry below (Back) Account number: (Execute) Record the entry below (Back) Account number: (Execute) Record the entry below Verify details of: Account 740_ _ _ 350_ _ _ 100_ _ _ C_ _ _ 2006
Debit
Credit
Comments
(Back) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Business Case Scenario

Purpose of Exercise Pen Inc. has rented more warehouse space and is about to receive the invoice for the first months lease. In order to do this, you must create a new vendor and add an expense account for rent.
Unit 9:
Purpose of Unit The purpose of Unit 9 is to test your systems ability to receive invoices from vendors and post payment to the vendors account.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 83: Create Vendor Master Record for Landlord
Purpose of Exercise The purpose of this exercise is to create a new vendor. The Chief Financial Officer has requested you create a new vendor account for Tanager Leasing the firm from which you are renting your new office and warehouse space. Navigation Menu Path Accounting Financial accounting Accounts payable Master records Create
Trans Code Vendor Company code Account group Reference Company code (Enter) Create Vendor: Address Name Search term City Postal code Country Region Language (Enter three times) Create Vendor: Accounting information Accounting Accounting Information Rec. Account 300_ _ _ (Enter) Create Vendor: Payment transactions Accounting Payment data Payment terms 0001 Select Check Dbl. Inv. (Save) Record the system message: Message Tanager Leasing _ _ _ ___ Vermillion 57069 US SD EN Leave blank C_ _ _ KRED (one of your other vendors) C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 84: Create Rent Expense Account
Purpose of Exercise This exercise has you create and new expense account for rent in your chart of accounts using a previous account as a template for the new account. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code
Enter the following information:
Account number: Company code Click on Account number Company code (Enter)
780_ _ _ C_ _ _
781_ _ _ C_ _ _
Change the description to Rent expense All other settings remain unchanged. (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 85: Create Invoice Receipt for Rent Expense
Purpose of Exercise The purpose of this exercise is to log the invoice that Tanager Leasing, Inc. has sent for the first months rent of $1,500.00 total. Please post the invoice using the accounts you have created in your Company code.
INVOICE # 123 CURRENT Month Rent Total

Navigation Menu Path
Tanager Leasing, Inc.
$1,500.00
Accounting Financial accounting Accounts payable Document entry Invoice
Trans Code Enter the following information: Vendor (# for Tanager Leasing just created) Invoice Date Today Amount of Invoice $ 1,500 If your Company Code did not default in: Select Edit Set Company Code and enter yours. G/L Account D/C Document amount (Enter) Use the Verify details of: Account 100_ _ _ 780_ _ _ (Save) Record the system message: Message button to see if the postings are correct. Description Tanager Leasing Rent Expense Amount 15001500 Comments 780_ _ _ (rent expense) Debit $ 1,500
(Exit) to exit
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Purpose of Exercise The purpose of this exercise is to Display the Vendor account balance and line item. You can switch between the sessions (Alt +Tab) to view the document from both the debit and credit perspectives. Menu Path
Accounting Financial accounting General ledger Account Display balances
Trans Code Enter the following information: Account number: Company Code Fiscal Year 780_ _ _ C_ _ _ 2006
(Execute) Record the information in the ledger below. Double click on month balance to see line items. Create another session by the Navigation Menu Path Accounting Financial accounting Accounts payable Account Display balances button or (SystemCreate session)
Trans Code Enter your Tanager Leasing vendor account #______ Company code C_ _ _ Fiscal Year 2006
(Execute) Record the information in the ledger below. Double click on period balance to see document. Verify details of: Account
Debit
Credit
Comments
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 87: Post Payment to Landlord

Purpose of Exercise This exercise will have you pay the invoice from Tanager Leasing which is due for payment now. You are requested to clear the invoice amount by posting an outgoing payment using the bank account of your chart of accounts. Navigation Menu Path Accounting Financial accounting Accounts payable Document entry Outgoing payment Post
Trans Code Enter the following information: Document date: Today Account: 100_ _ _ (Bank) Amount: 1500 Text: Invoice # 123 Open items selection: Account: (Vendor # for Tanager Leasing _ _ _) All other settings remain unchanged. Select Review the line item information. Double click on the line item you want to post payment against. When assignment has been made correctly the Not assigned value on the bottom should equal $0.00 (Save) Record the system message: Message
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Purpose of Exercise To Display the Vendor account balance and line item Now you can switch between the sessions (Alt +Tab) to view the document from both the debit and credit perspectives.
Navigation Menu Path Accounting Financial accounting General ledger Account Display balances
Trans Code Enter the following information: Account number: Company Code Fiscal Year Verify details of: Document # Type 780_ _ _ C_ _ _ 2006 Amount Comments
(Execute) Double click on month balance to see line items. Navigation Menu Path Accounting Financial accounting Accounts payable Account Display/Change line items
Trans Code Enter the following information: Vendor Company code Select Verify details of: Document # (Vendor # for Tanager Leasing _ _ _) C_ _ _ All items
Type
Amount
Comments
(Execute) Double click on individual document to see additional information.
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Purpose of Unit The purpose of Unit 10 is to establish some of the rules that will control the material management (MM) transactions. Included in these rules is the configuration of automatic account assignment. Once these rules and other parameters are established you will test your system in the next unit.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 89: Set Default Values for Inventory Management Reservations
Purpose of Exercise This exercise will enable the system to automatically create a storage location upon goods receipt. The movement allowed indicator must be turned on to allow goods movements for reservations. The Days movement allowed limits the goods movements to a specific number of days prior to the reservation date. The Retention period is the number of days after the reservation date the system will hold the reservation before setting the deletion indicator. Navigation Menu Path Tools Customizing IMG Edit project Materials management Inventory management and physical inventory Plant parameters
Trans Code Enter the following information: Click on the Enter your plant Goods movements Select Select Reservations Select Days mvt. allow Retention period (Save) Record the system message: Message button. P_ _ _
Create SLoc.automat. Del. Compl. Default
Mvt.allowed 15 days 15 days
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 90: Maintain Purchasing Tolerance Limits
Purpose of Exercise The purpose of this exercise is for you to decide how much variation from the data in the purchase order will be allowed. Navigation Menu Path Tools Customizing IMG Edit project Materials management Purchasing Purchase order Set tolerance limits for price variance
Trans Code
Enter the following information: Click on the button. PE Price variance: Purchasing C_ _ _
Select tolerance keys: Enter your company code Select Do not check for all limits. (Next Entry) Select tolerance keys: Enter your company code Select Do not check for all limits. (Save) Record the system message: Message
SE Max. cash disc. Ded. purchasing C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 91: Maintain Goods Receipt Tolerance Limits
Purpose of Exercise The purpose of this exercise is for you to decide how much variation from the data in the purchase/production order will be allowed. Navigation Menu Path Tools Customizing IMG Edit project Materials management Inventory management and physical inventory Goods receipt Set tolerance limits
Trans Code Enter the following information: Click on the button. B1 Order price Qty. variance (GR)/E-Msg C_ _ _
Select key: Enter your company code: Select Do not check for all limits. (Next Entry) Select key: Enter your company code: Lower limit Percentage Select Tolerance limit Upper limit Percentage Select Tolerance limit (Next Entry) Select key: Enter your company code: Select Do not check for all limits. (Save) Record the system message: Message
B2 Order price Qty. variance (GR)/W-Msg C_ _ _
Check limit 10 %
Check limit 0%
VP Moving average price variance C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 92: Maintain Invoice Receipt Tolerance Limits
Purpose of Exercise The purpose of this exercise is for you to decide how much variation from the data in the purchase order will be allowed. Navigation Menu Path Tools Customizing IMG Edit project Materials management Logistics invoice verification Invoice block Set tolerance limits
Click on the
button.
Select tolerance keys: Description Amount for item without order reference Amount for item with order reference Form small differences automatically Percentage OPUn Variance (IR before GR) Percentage OPUn Variance (GR before IR) Exceed amount: quantity variance Var. from condition value Price variance Price variance: estimated price Date variance (value x days)
Tolerance Key AN AP BD BR BW DQ KW PP PS ST
Use the (Next Entry) button to move to the next blank screen Enter your company code C_ _ _ for each of the entries. Select Do not check for all limits on each tolerance key. (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 93: Set (review) Valuation Control
Purpose of Exercise This exercise will have you activate the valuation grouping code, you can group together valuation areas allowing multiple plants to share the same rules. This makes the configuration of automatic postings much easier. Navigation Menu Path Tools Customizing IMG Edit project Materials management Valuation and account assignment Account determination Account determination without wizard Define valuation control
Trans Code
Enter the following information: The valuation grouping code default is set as active Verify that the valuation grouping code is active. (Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 94: Assign Valuation Area Grouping
Purpose of Exercise This exercise has you group together valuation areas and use the same rules for account determination. Within the chart of accounts, you assign the valuation grouping code to the valuation areas you want to assign to the same account. Navigation Menu Path Tools Customizing IMG Edit project Materials management Valuation and account assignment Account determination Account determination without wizard Group together valuation areas
Trans Code Enter the following information: Assign valuation grouping code to your valuation area Recommended valuation grouping code: (Save) Record the system message: Message G_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 95: Define (review) Valuation Classes
Purpose of Exercise The purpose of this exercise is to review which valuation classes are assigned to each material type and account category reference. Navigation Menu Path Tools Customizing IMG Edit project Materials management Valuation and account assignment Account determination Account determination without wizard Define valuation classes
Trans Code
Enter the following information: Click on the button.
Note the account category reference assigned to each of the material types used in this case study. Verify details of: Material Type HAWA HIBE (Exit) Click on the button.
Valuation class 3100 3030
Account Category Ref 0005 0002
Description Trading Goods Operating Supplies
Comments
Note of which valuation classes are linked to the account category references you noted from above. Why do Operating Supplies have more than one valuation class? (Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 96: Configure Automatic Postings for Goods Movement
Purpose of Exercise This exercise will have you establish the system settings controlling automatic postings to G/L accounts for Inventory Management and Invoice Verification transactions. Navigation Menu Path Tools Customizing IMG Edit project Materials management Valuation and account assignment Account determination Account determination without wizard Configure automatic postings
Trans Code Follow the next few pages to create the automatic postings rules for the following functions: Verify details of: Field Name Inventory Posting Materials Management Small Differences Offsetting Entry for Inventory Postings Cost (price) Difference GR/IR clearing account
Key BSX DIF GBB PRD WRX
Click on the Inventory Posting
button.
Double click on Transaction Event Key Select your Chart of accounts: (Enter) Select Select (Save) Transaction Event Key BSX
BSX C_ _ _
Valuation Modif. Valuation Class
Enter the following automatic account assignments (use F4 to lookup the account number): Valuation +Valuation Class Enter Account Modifier Account Name Number G_ _ _ 3100 Trading Goods Inventory Account G_ _ _ 3030 Operating Supplies Inventory
(Save)
(Back)
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Offsetting Entry for Inventory Posting Double click on Transaction Event Key GBB
Note: See the spreadsheet on the next page for additional information on Account Modifiers. Select Select Select (Save) Transaction Event Key GBB Enter the following automatic account assignments(use F4 to lookup the account number): Valuation General Valuation Enter Account Modifier Modification Class Account Name Number G_ _ _ (Blank) 3030 Supplies Expense Account G_ _ _ (Blank) 3100 Trading Goods Expense Account G_ _ _ VAX 3100 Cost of Goods Sold Account G_ _ _ VBR 3030 Supplies Expense Account G_ _ _ VBR 3100 Trading Goods Expense Acct General Modification Valuation Modif. Valuation Class
(Save) Cost (price) difference
(Back)
Double click on Transaction Event Key Select Select (Save) Transaction Event Key PRD
PRD Valuation Modif. Valuation Class
Enter the following automatic account assignments (use F4 to lookup the account number): Valuation Valuation Class Enter Account Modifier Account Name Number G_ _ _ 3030 Pur Price Dif Acct G_ _ _ 3100 Pur Price Dif Acct
(Save)
(Back)
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Materials Management Small Differences Double click on Transaction Event Key (Save) Verify details of(use F4 to lookup the account number): Enter Account Account Name Number Pur Price Dif Account DIF
(Save)
(Back)
Goods receipt / inv. receipt clearing acct Double click on Transaction Event Key Select Select (Save) Transaction Event Key WRX Verify details of (use F4 to lookup the account number): Valuation Valuation Class Enter Modifier Account Number G_ _ _ 3030 G_ _ _ 3100 Account Name GR/IR Account GR/IR Account WRX Valuation Modif. Valuation Class
(Save)
(Back)
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Transaction Event Key: GBB Inventory Posting Offsetting Entries General Account Modifier Description of Usage of Account Modifier Key Goods Receipt From Purchase Order with Account Assignment post to consumption (exp.>rev.) i.e., non-inventory purchases Goods Receipt From Production Order post to production settlement Goods Receipt Into Initial Stock only used once for posting inventory off-set for initial stock data load Material Movement Type
101>102 GR from Purchase Order>Reverse
AUF BSA
INV
MM Physical Inventory Posting MM goods receipt for increase count in stock, goods issue for decrease count in stock WMS Physical Inventory Posting WMS goods issue to difference (i.e., loss) for decrease count in stock, goods receipt from difference for increase count in stock Goods Issue To Sales - post to Cost of Goods Sold (COGS)
101>102 GR from Production Order>Reverse 122 RE return to order 561>562 GR to Initial Stock Unrestricted>Reverse 563>564 GR to Initial Stock Quality Insp>Reverse 565>566 GR to Initial Stock Blocked>Reverse 701>702 GR to Physical In. Unrestricted>GI from 703>704 GR to Physical In. Quality I>GI from 707>708 GR to Physical In. Blocked>GI from 711>712 GI to Inventory diff.>GR from diff. 713>714 GI to Inventory diff. QI>GR from diff. 717>718 GI to Inventory diff. Blocked>GR from 231>232 GI to Sales Order (MM)>Reverse MM 531> GD, goods issue to delivery 623>624 GI cust. Returnable packaging>Reverse 633>634 GI customer consignment>Reverse 531> GD, goods issue to delivery 623>624 GI cust. Returnable packaging>Reverse 633>634 GI customer consignment>Reverse 641>642 TR to Stock in Transit Order>Reverse 543>544 GI to Subcontracting Stock>Reverse 201>202 GI to Cost Center>Reverse 221>222 GI to Project>Reverse 251>252 GI to Sales>Reverse 261>262 GI to Order>Reverse 291>292 GI to All Acct. Assignments>Reverse 401>402 TP Own from Sales Order>Reverse 551>552 GI to Scrap Unrestricted>Reverse 553>554 GI to Scrap Quality Insp.>Reverse 555>556 GI to Scrap Blocked Stock>Reverse 331>332 GI to Sampling Quality Insp.>Reverse 333>334 GI to Sampling Unrestricted>Reverse 453>454 TP Returns to Own>Reverse 501>502 GR w>o P.O. to Unrestricted>Reverse
VAX
VAY
Goods Issue To Sales for Consumption (e.g., goods issue to free sales samples)
VBO VBR
Goods Issue To Subcontracting Stock Goods Issue to Consumption - post to material consumption (i.e., expense>revenue) (e.g., goods issue to job or production order) Goods Issue to Scrap post to scrapping material consumption (i.e., expense>revenue) Goods Issue to Sampling post to sampling material consumption (i.e., expense>revenue) Transfer Returns Own (unrestricted) post valuated returned stock from customer Goods Receipt w>o Purchase Order post expense>revenue account as offset to inventory received without purchase order
VNG
VQP
ZOB
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 97: Configure Automatic Postings for Taxes
Purpose of Exercise This exercise will have you establish the system settings controlling automatic postings to G/L accounts for taxes. Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Financial accounting global settings Tax on sales/purchases Posting Define tax accounts
Trans Code
Instructions & Details: Select Sales Tax 1 MW1
(Choose) (Save) Account (Save) (Back) Select Sales Tax 1 VS1 320_ _ _
(Choose) (Save) Account (Save) Record the system message: Message 321_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 98: Set Parameters for Invoice Verification
Purpose of Exercise The objective of this exercise is to link the company code to the valuation elements within materials management. The Price Carry Over indicates whether price changes in the previous period or previous year are to affect the prices in the current period. If you do not select this field, the price changes in the previous period or previous year have no effect on the prices in the current period. Navigation Menu Path Tools Customizing IMG Edit project Materials management Valuation and account assignment Configure price change in previous period/previous year
Trans Code Select your Company code Check (Save) Record the system message: Message C_ _ _ Price Carry Over
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 99: Create Default Values for Invoice Verification
Purpose of Exercise The purpose of this exercise is for you to maintain the default values for the tax codes used in invoice verification. Navigation Menu Path Tools Customizing IMG Edit project Materials management Logistics invoice verification Incoming invoice Maintain default values for tax codes
Trans Code Enter the following information: Click on the Enter your company code Default for domestic: Enter the input tax code (Save) Record the system message: Message XI button. C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 100: Open Exercise

Purpose of Exercise
Navigation Menu Path Trans Code
Page 125

Purpose of Unit The purpose of Unit 11 is to test the integration of your Material Management and Financial Accounting systems. With both configured, it is time to create purchase orders for trading goods and operating supplies, receive the invoices and post payment to the vendors for goods provided to your company.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 101: Create Purchase Order for Slick Pens
Purpose of Exercise The purpose of this exercise is to create a Purchase Order from a know supplier (Slick Pens). This is the first order and you need to evaluate their pens and timeliness of delivery. Navigation Menu Path Logistics Materials management Purchasing Purchase order Create Vendor/supplying plant known
Trans Code Enter the following information: Vendor Verify details of: Material BPEN_ _ _ CPEN _ _ _ BOX _ _ _ (# for SLICK PENS)
Quantity 500 250 1000
Delivery Date (Future date) (Future date) (Future date)
Net Price .65 1.50 0.29
Currency USD USD USD
(HEADER)
Conditions tab Record the total value of the Purchase order $__________(990)
(Save)
Save anyway past the message indicating that no output device (ie. Printer, FAX) was found to communicate this PO to the vendor. Record Purchase Order Number _________________________ Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 102: Create Purchase Order for Premier Pens
Purpose of Exercise This exercise will have you create a Purchase Order from a know supplier (Premier Pens). This is the first order and you need to evaluate their pens and timeliness of delivery. Navigation Menu Path Logistics Materials management Purchasing Purchase order Create Vendor/supplying plant known
Trans Code Enter the following information: Vendor Verify details of: Material CPEN_ _ _ PPEN _ _ _ (# for PREMIER PENS)
Quantity 250 10
Delivery Date (Future date) (Future date)
Net Price 1.60 3.00
Currency USD USD
(Header)
Conditions tab Record the total value of the Purchase order $__________(430)
(Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 103: Create Purchase Order for Promotions Ltd.
Purpose of Exercise The purpose of this exercise is to create a Purchase Order from a know supplier (Promotions Ltd.). This is the first order and you need to evaluate their pens and timeliness of delivery. Navigation Menu Path Logistics Materials management Purchasing Purchase order Create Vendor/supplying plant known
Trans Code Enter the following information: Vendor Verify details of: Material BPEN_ _ _ PPEN _ _ _ (# for Promotions Ltd.)
Quantity 500 5
Delivery Date (Future date) (Future date)
Net Price .50 3.50
Currency USD USD
(Header)
Conditions tab Record the total value of the Purchase order $__________(267.50)
(Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 104: Create a Goods Receipts for the Purchase Orders
Purpose of Exercise The purpose of this exercise is to receive the stock items into inventory that were ordered from the three vendors. Navigation Menu Path Logistics Materials management Inventory management Goods movement Goods receipt For purchase order GR for purchase order (MIGO)
Trans Code Enter the following information: Settings Default values Select Select (Adopt) (Enter) Enter the PO number 4500000???( next to the Purchase order field) (Execute) Ensure each line item OK is checked Make sure you have entered your storage location 10 Select or (Save) Receive the goods for all three POs Record the system message: Purchase order
Propose the OK function Propose all items.
Message
Instructor note: Check T169P (OMRL) & T169V (SM30)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 105: Create an Invoice Receipts from Vendors
Purpose of Exercise The purpose of this exercise is to record the information from the invoice sent to you by the vendor. The following vendor invoices for the stock items ordered should be entered.
INVOICE #567 ITEMS: BPEN _ _ _ CPEN _ _ _ BOX _ _ _ TOTAL Thank you for your order
(Todays date) QUANTITY 500 250 1,000
PER $0.65 $1.50 $0.29
Slick Pens PRICE: $325.00 $375.00 $290.00 $990.00
INVOICE #3245 ITEMS: CPEN_ _ _ PPEN _ _ _ TOTAL Thank you for your order
(Todays date) QUANTITY 250 10
PER $1.60 $3.00
Premier Pens PRICE: $400.00 $ 30.00 __________ $430.00
INVOICE #7890 ITEMS: BPEN_ _ _ PPEN _ _ _ TOTAL Thank you for your order
(Todays date) QUANTITY 500 5
PER $0.50 $3.50
Promotions Ltd PRICE: $250.00 $ 17.50 __________ $267.50
Navigation Menu Path Logistics Materials management Logistics invoice verification Document entry Enter invoice
Trans Code Enter the following information: Invoice Date: Check your Company Code: PO number: (Enter) Enter amount: $ 990.00 (or whatever the amount from the physical invoice above) (Enter today's Date) C_ _ _ (Enter your purchase order number)
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Tax code: (Enter) Use the Verify details of: GL Description Account button to see if the postings are correct. XI
Amount
Comments
Verify details of: GL Description Account
Amount
Comments
Verify details of: GL Description Account
Amount
Comments
(Post) Record the system message: Purchase order Vendor
Invoice #
Message
(Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 106: Post Payments to Vendors

Purpose of Exercise The purpose of this exercise it to make payment to the vendors for the goods received. You will post a payment to each of the three vendors from which you have purchase trading goods. Since the invoices are due for payment now. You are requested to clear the invoices by posting outgoing payments to the vendors using the bank account (100_ _ _) of your chart of accounts. Navigation Menu Path Accounting Financial accounting Accounts payable Document entry Outgoing payment Post
Trans Code Enter the following information: Document date: Today Account: 100_ _ _ (Bank) Amount: Enter the amount you are going to pay Text: Invoice # 567 Open items selection: Account: (# for Slick Pens_ _ _) All other settings remain unchanged. Select Review the balance. (Save) Record the system message: Purchase order Vendor
Invoice #
Message
Select Repeat this process for the other two vendors
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Display vendor line items Navigation Menu Path Accounting Financial accounting Accounts payable Account Display/Change line items
Trans Code Enter the following information: Vendor Company code Select (Execute) Review for Open items (Enter the vendor number range from the lowest to the highest) C_ _ _ All items
Page 134

Purpose of Unit The purpose of Unit 12 is to have you run Material Requirements Planning to generate a purchase requisition that you will convert to a purchase order. Following conversion of the requisition you will change the quantity and complete the purchasing (procurement) cycle.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 107: Create Purchase Outline Agreement (Contract) for Stock Items
Purpose of Exercise The purpose of this exercise is to create a contract for the premium pen from Premier Pens for 100 pens in the next three months. Navigation Menu Path Logistics Materials management Purchasing Outline agreement Contract Create
Trans Code Enter the following information: Vendor Agreement type (Enter) Validity end (Overview) Material Target Quantity Net Price Storage location PPEN_ _ _ 300 $ 3.00 10 (3 months from today) (# for Premier Pens) Quantity
(Save) Record the system message: Message No message record could be found for output of message. to accept the message. Record the system message: Message
(Back) Note: Check the material type attributes if account assignment problems occur.
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Purpose of Exercise The purpose of this exercise is to allow the system to plan the availability and requirements for the premium pen. Navigation Menu Path Logistics Materials management Materials requirements planning (MRP) MRP Planning Single-item, single-level
Trans Code Enter the following information: Enter material number: Enter plant: Processing key: Create pur. req.: Deliv. schedule: Create MRP list: Planning mode: Scheduling: Select (Enter) A warning message appears - please check input parameters (Enter) again to confirm and check the warning message Review the MRP list (Save) Record the system message: Message
PPEN_ _ _ P_ _ _ NETCH 2 3 1 1 1 Display results before they are saved
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 109: Convert Proposed Purchase Requisition to Purchase Order
Purpose of Exercise In this exercise you will accept the system generated replenishment proposal for PPEN_ _ _. After you have adopted the system proposal you will increase the quantity to 100 for PPEN_ _ _. Navigation Menu Path Logistics Materials management Materials requirements planning (MRP) MRP Evaluations Stock/requirements list
Trans Code Enter the following information: Enter material number: Enter plant: (Enter) Double click the MRP element (Change Element) Delivery Date Storage Location Source of Supply Change to Todays Date 10 PurRqs
PPEN_ _ _ P_ _ _
Select your line with your contract number
Quantity (Save) Double click the MRP element
100
PurRqs
to convert the MRP generated purchase requisition to a PO. Vendor (Enter) In the Document Overview window on left side of screen Click once on Open Requisitions (Adopt) (Item overview) (Header) (# for Premier Pens)
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Conditions Tab Record the value of the Purchase Order (Save) Gross Price $__________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 110: Review Outline Agreements

Purpose of Exercise Review the outline agreement you assigned to the purchase order. Navigation Menu Path Logistics Materials management Purchasing Outline agreements List displays By agreement number
Trans Code Enter the following information: Purchase Doc Purch Org (Execute) Examine your open target quantity Record the system message: Message Leave Blank P___
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 111: Create a Goods Receipt

Purpose of Exercise The purpose of this exercise is to receive the pens into inventory. Navigation Menu Path Logistics Materials management Inventory management Goods movement Goods receipt For purchase order GR for purchase order (MIGO)
Trans Code Enter the following information: Enter the PO number 4500000???( next to the Purchase order field) It should turn red on the left column when selected (Execute) Ensure each line item OK is checked Make sure you have entered your storage location Select or (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 112: Create an Invoice Receipt from Vendor
Purpose of Exercise The purpose of this exercise is to record the invoice sent by the vendor for the PO for the pens ordered. Premier Pens, Inc. ITEMS: PPEN _ _ _ TOTAL We appreciate your business QUANTITY 100 PER $ 3.00 INVOICE #203-45879 PRICE: $ 300.00 __________ $ 300.00
Navigation Menu Path Logistics Materials management Logistics Invoice verification Document entry Enter invoice
Trans Code Enter the following information: Invoice Date: Check your Company Code: Enter Currency: PO number: (Enter) Enter amount: Tax code: (Enter) Use the (Post) Record the system message: Message button to see if the postings are correct. $ 300 (from the physical invoice) XI (Enter today's Date) C_ _ _ USD (Enter your purchase order number)
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Purpose of Exercise This exercise has you post payment to the vendor for the pens. Since the invoice for Premier Pens is due for payment. You are requested to clear the invoice amount by posting an outgoing payment using the bank account (100_ _ _). Navigation Menu Path Accounting Financial accounting Accounts payable Document entry Outgoing payment Post
Trans Code Enter the following information: Document date: Today Account: 100_ _ _ (Bank) Amount: $ 300 Text: Invoice # 203-45879 Open items selection: Account: (for Premier Pens _ _ _) All other settings remain unchanged. Select Review the balance. (Save) Record the system message: Message
Again display vendor line items Navigation Menu Path Accounting Financial accounting Accounts payable Account Display/change line items
Trans Code Enter the following information: Vendor Company code Select (Execute) Review for Open items Premier Pens _ _ _ account number C_ _ _ Cleared items
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Purpose of Unit The purpose of Unit 13 is to create the organizational structure necessary to carry out the customer order management functions of your company.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 114: Create Sales Organization

Purpose of Exercise This exercise will have you create the Sales Organization. This is the highest level organizational structure in Sales and Distribution. Your pen company will have one Sales Organization. The sales organization is the unit or structure responsible for the terms and conditions for the sale of products or services. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Sales and distribution Define, copy, delete, check sales organization
Trans Code Double click on: Define sales organization. Select Enter Sales Organization: Enter Description Address text name Letter header text Footer lines text Greeting text name Sales org.calendar Rebate proc.active Select the address Postal Code City Country Region Language (Enter) (Save) (Enter) to verify the address information. (Alternatively) Select (Copy As) Sales Organization (Enter) Record the system message: Message button 57069 Vermillion US SD English
S_ _ _ (use your team number) Pen Inc _ _ _ ADRS_SENDER ADRS_HEADER ADRS_FOOTER ADRS_SIGNATURE US Checked
S999 S_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 115: Assign Sales Organization to Company Code
Purpose of Exercise This exercise will tie your Sales Organization to Finance Accounting (FI) by assigning it to your Company Code.
Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Sales and distribution Assign sales organization to company code
Trans Code Enter the following information: Select your company code C_ _ _
A window appears listing the unassigned Sales Orgs. Check the box next to your Sales Org (Enter) S_ _ _
Scroll up to review the new assignment (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 116: Define Distribution Channels

Purpose of Exercise This exercise will have you review the two distribution channels you will be using. Since distribution channels are created at the client level, once they are create everyone has access to them for use in their own organizational structure. Distribution channels are used to define the way in which products or services reach your customer. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Sales and distribution Define, copy delete, check distribution channel
Trans Code
*The instructor, as a demonstration will complete this task. All students will use these Distribution Channels throughout the remainder of the course. Select: Select Create distribution channels: RE WH (Save) Retail Wholesale Define distribution channel
Students review distribution channels: RE WH (Enter)
Retail Wholesale
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 117: Assign Distribution Channels to Sales Organization
Purpose of Exercise This exercise has you assign the different ways in which your products reach your customer to your Sales Organization.
Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Sales and distribution Assign distribution channel to sales organization
Trans Code Enter the following information: Select your Sales Organization S_ _ _
A window appears listing all the available distribution channels Select the distribution channels (Enter) Scroll up to review the new assignment (Save) Record the system message: Message RE and WH
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 118: Define Division

Purpose of Exercise This exercise will have you review the division you will be using. Since divisions are created at the client level, once they are create everyone has access to them for use in their own organizational structure. Divisions are a way of grouping materials, products, or services. A product can exist in only one division. It is a way in which you could further divide you distribution channels if you desired to do so. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Logistics general Define, copy, delete, check division
Trans Code
*The instructor will complete this task as a demonstration. All students will use these same Divisions throughout the remainder of the course. The instructor will select: Define Division General Products
Change Division 01 Name from Product Division 01 to: (Save)
Students review divisions 01 (General Products) (Enter)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 119: Assign Division to Sales Organization
Purpose of Exercise This exercise will have you tie your Divisions, or groupings of materials, to your Sales Organization.
Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Sales and distribution Assign division to sales organization
Trans Code Enter the following information: Select your Sales Organization S_ _ _
A window appears listing all the available divisions Select the division (Enter) Scroll up to review the new assignment (Save) Record the system message: Message 01 (General Products)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 120: Set up Sales Areas

Purpose of Exercise This exercise will have you create Sales Areas. Sales Areas are made up of a Sales Organization, a Distribution Channel and a Division. Sales Areas are crucial in pricing.
Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Sales and distribution Set up sales area
Trans Code Assign all the Distribution channels and Divisions to the Sales Organization as follows: Double-click on your Sales Organization S_ _ _ A pop-up window appears with all available Distribution Channels Select the distribution channels RE and WH
(Enter) Double-click on the first Distribution Channel under your Sales Org. A pop-up window appears with the available Divisions. Select division (Enter) (Repeat for each distribution channel.) Review the new Sales Area assignment to verify both Distribution Channels have the Division assigned (Save) Record the system message: Message 01 (General Products)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 121: Define Loading Groups

Purpose of Exercise The purpose of this exercise is to have you review the loading groups that have been established. Loading Groups are created at the client level and once created are available for all to use. Loading groups are a way of grouping of materials that share the same loading requirements. They are also used in determining the shipping point in a plant. Navigation Menu Path Tools Customizing IMG Edit project Logistics execution Shipping Basic shipping functions Shipping point and goods receiving point determination Define loading groups
Trans Code *The instructor, as a demonstration will complete this task. These loading groups will be available to all users on this client. Select LGrp / Description LGrp / Description (Enter) (Save) Student review: LGrp LGrp (Back) HAND CART HAND, Load by Hand CART, Handcart
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 122: Create Shipping Point

Purpose of Exercise This exercise has you create a shipping point within your plant. A shipping point is a physical location inside your plant, from which you will ship items. Based on different loading and/or shipping requirements, you can create one or more shipping points to meet your business requirements. Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Definition Logistics execution Define, copy, delete, check shipping point
Trans Code Double click on Define shipping point Select Enter the following: Shipping point: Factory calendar: Leave all other fields blank (Address) Enter the following: Postal code: City: Country key: Region Language: (Enter) (Save) (Enter) to verify the address information. Record the system message: Message 57069 Vermillion US SD English S_ _ _ (Description of your Shipping point) US
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 123: Assign Plant to Sales Organization and Distribution Channel
Purpose of Exercise This exercise will enable the integration between the Material Management (MM) and the Sales and Distribution (SD) modules. You will need to assign your plant to all combinations of a Sales Organization and a Distribution Channel.
Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Sales and distribution Assign sales organization distribution channel plant
Trans Code Assign the Plant to each of the Sales Org. / Distribution channel combinations as follows: Double-click one of your Sales organization /distribution channel combinations From the pop-up window, select your plant P_ _ _ (Enter) Repeat for all your Sales organization / Distribution channel combinations Scroll up to review the assignments Verify that each combination has your plant assigned (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 124: Assign Shipping Point to Plant
Purpose of Exercise The purpose of this exercise is to assign your shipping point to your plant. A shipping point can only exist in one plant. However, a plant can have many shipping points. The number of shipping points will be dependent on your business requirements. Remember that a shipping point is a physical location within a plant from which items are shipped.
Navigation Menu Path Tools Customizing IMG Edit project Enterprise structure Assignment Logistics execution Assign shipping point to plant
Trans Code Enter the following information: Select your plant by double-clicking P_ _ _
From the pop-up window, select the shipping point to be assigned to your plant (Enter) (Save) Record the system message: Message
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Purpose of Unit The purpose of Unit 14 is to create additional master data needed for conducting the customer order management cycle. This will include creating the additional views needed for the material master, creating additional General Ledger accounts, creating customers and assigning a pricing procedure.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 125: Create Sales Views for Trading Goods
Purpose of Exercise This exercise will have you create (extend) the trading good materials created in earlier material management exercises. These new views for the material masters must now be created (extended) to include the sales views in order to make the materials available for sale. Additionally, materials must have sales views created (extended) for both distribution channels where they will be sold; RE and WH. Navigation Menu Path Logistics Sales and distribution Master Data Products Material Trading goods Create
Trans Code Enter the following information: Defaults Organization levels Company code: Plant: Sales org: Distribution channel:* Repeat this process for Distribution channel: C_ _ _ P_ _ _ S_ _ _ RE WH Copy from C_ _ _ P_ _ _ S_ _ _ RE
(*Create the above materials for distribution channel Direct then change the defaults and continue this process to create each material for distribution channel Wholesale.) (Enter) Defaults Views Select the views: Sales: Sales Org. Data 1 Sales: Sales Org. Data 2 Sales: General/Plant Data
(Enter) Material (Repeat for each material) Details on next page BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _
Use the following information to create each of the materials (Enter) Sales: Sales org. 1 View General data Division Delivering Plant
01 (General Products) P__ _
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Tax Data Tax Jurisdiction Code County Sales Tax City Sales Tax (Enter) Sales: Sales org. 2 View Grouping terms Mat. Statistics Group (Enter) Sales: General/plant View Shipping data (time in days) Trans. grp.: Loading Grp.: (Save)* *Remember to change the defaults from RE and create the WH views for all the materials Hint: To expedite the Sales view creation process use the copy method by entering a material (that has already been extended) in the Copy from field. Then continue as instructed, noticing that the initial materials data defaults into the new materials fields. (Save after each material) Record the system messages: Material Message BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _ UTXJ UTX2 UTX3 0 (Exempt) 0 (Exempt) 0 (Exempt)
1 (A materials)
0001 Pallets (for route determination) HAND Load by Hand (for shipping point determination)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 126: Create Sales Revenue Account
Purpose of Exercise This exercise will have you create the two general ledger accounts you will need to record revenues and discounts from revenues. Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/descripton TAB Control in chart of accounts Account Group Check Description Short text* G/L acct long text Control data TAB Account control in company code Currency Posting without tax allowed 600_ _ _ C_ _ _
PROFIT & LOSS ACCOUNT P&L STATEMENT ACCOUNT
Sales Revenue Sales Revenue
USD Selected
Account management in company code Check Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Check Post automatically only (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 127: Create Sales Revenue Deductions Account
Purpose of Exercise To process billing we will need Profit & Loss Statement accounts for Sales Revenue and Sales Discounts
Navigation Menu Path Accounting Financial accounting General ledger Master records Individual processing Centrally
Trans Code Enter the following information: Account number: Company code: (Create) Type/descripton TAB Control in chart of accounts Account Group Check Description Short text* G/L acct long text Control data TAB Account control in company code Currency Posting without tax allowed 610_ _ _ C_ _ _
PROFIT & LOSS ACCOUNT P&L STATEMENT ACCOUNT
Revenue Deductions Revenue Deductions
USD Selected
Account management in company code Check Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Check Post automatically only (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 128: Review Sold-to, Ship-to, Payer & Bill-to Account Groups
Purpose of Exercise This exercise is to have you review the different account groups that you will use to create your customers. Account groups control the data required to create customers (business partners) This is a review only exercise (Do not change or save). Navigation Menu Path Tools Customizing IMG Edit project Financial accounting Accounts receivable/payable Customer accounts Master data Preparations for creating customer master data Define account groups with screen layout (Customers)
Trans Code (Change-->Display) Select (Details) Select Select Review the required fields by double clicking on the various groups (Back) Select Select Review the required fields of the various groups (Back) Select Select Review the required fields of the various groups (Back) Twice Select (Details) Select Select Review the required fields of the various groups (Back) General Data 0002 Goods Recipient (Ship-to) Sales data Company code data General Data 0001 - Sold-to Parties
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 129: Create Customer

Purpose of Exercise The purpose of this exercise is to have you create customers. You have already created business partners (Vendors) in both Financial Accounting (FI) and Material Management (MM). Since you are in the Sales and Distribution (SD) module now, you will create general, company code (FI) and sales and distribution (SD) views for your customers. When you created vendors you could create them centrally this created all three views from a single point. The same functionality is available for customers. In Sales and Distribution (SD) it is called Create Complete indicating that you want to create the General Data, Company Code (FI) and Sales and Distribution views at the same time. In this exercise you will create five customers. Three of these will be in your retail distribution channel and two will exist in your wholesale distribution channel. Navigation Menu Path Logistics Sales and distribution Master data Business partners Customer Create Complete
Trans Code Enter the following information: Account group Customer: Company code: Sales organization: Distribution channel: Division: (Enter) You will create the following customers: The Rushmore Group, LLC Vermillion, SD 57069 SAP, America Newtown Square, PA 19073 Promotional Products, Inc. Sacramento, CA 95814 Pleasure Boats Buying Group Miami, FL 33010 Tanagers Leasing Vermillion, SD 57069 Address TAB: Name Name: Search term Search Term: Street Address Postal Code: City: Country: Region: Transportation zone Communication Language: Sold-to party (Leave blank) C_ _ _ S_ _ _ as listed below for each customer 01
Dist.Ch: Dist.Ch: Dist.Ch: Dist.Ch: Dist.Ch:
RE RE WH WH RE (Customer and Vendor)
Customers name (see above list) ___ Customers zip code Customers city US Customer's State Enter appropriate Transportation zone (used for route determination)
English
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Control data TAB (only when creating for Tanager Leasing): Vendor Enter the vendor number for Tanager Leasing remember that Tanager Leasing is not only a customer but also a vendor Select Account Management TAB: Accounting Information Rec. Account: Sort key: (Financial Accounting)
Enter your A/R reconciliation account number (110_ _ _) 001 (posting date)
Payment transactions TAB: Payment Data Terms of payment: 0001 (Payable immediately, Due net) Select Sales TAB: Sales order Currency: Pricing/statistics Cust. Pric. Proc.: Cust. Stats. Grp: Shipping TAB: Shipping Delivery priority: Order Combination: Shipping Conditions: Delivering Plant: Partial deliveries Max.part.deliveries: Billing Document TAB: Delivery and payment terms Incoterms: Payment terms: Accounting Acct assgmt group: Taxes Tax Classification:
USD 1 (standard) 1 A material. (This field helps determine which data are updated in the Logistics Information System)
02 (normal item) Selected (default) 01 (standard) P_ _ _ 3 (9 is the default)
FOB, Origin Shipping Dock (note the both are necessary) 0001 01 (Domestic Revenues) 0 (for all 3 tax categories)
(Save) Repeat the process for each of the new customers and record the customer numbers of the new customers. Record the system message: Customer The Rushmore Group, LLC SAP, America Promotional Products, Inc. Pleasure Boats Buying Group Tanagers Leasing
Customer Number
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 130: Create Ship-to party

Purpose of Exercise In this exercise you will create an alternative ship-to location or goods recipient. SAP, America has an organization to which they wish to have you ship directly. This new ship-to or goods recipient party is SAP, America UAP (University Alliance Program). In order to do this you will create a specific ship-to customer for this separate address. Navigation Menu Path Logistics Sales and distribution Master data Business partners Customer Create Complete
Trans Code Enter the following information Account group Customer: Company Code Sales organization: Distribution channel: Division: (Enter) Address TAB: Name Name: Search term Search Term: Street Address Postal Code: City: Country: Region: Transportation zone Communication Language: Select Account Management TAB: Accounting Information Rec. Account: Sort key: Goods Recipient Leave blank C_ _ _ S_ _ _ RE 01
SAP, America UAP _ _ _ Customer 19073 Newtown Square US PA 000000001 English (Financial Accounting)
Enter your A/R reconciliation account number (110_ _ _) 001 (posting date)
Payment transactions TAB: Payment Data Terms of payment: 0001 (Payable immediately, Due net) Select
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Shipping TAB: Shipping Delivery priority: Order Combination: Shipping Conditions: Delivering Plant: Partial deliveries Max.part.deliveries: Billing Document TAB: Taxes Tax Classification: (Save) Record the system message: Customer SAP, America - UAP
02 (normal item) Selected (default) 01 (standard) P_ _ _ 3 (9 is the default)
0 (for all 3 tax categories)
Customer Number
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 131: Assign Ship-to party to Customer
Purpose of Exercise In this exercise you will assign the newly created good recipient to the sold-to party created in an earlier exercise. Please note that the purpose of this exercise is to end up with an additional ship-to party not to replace the old ship-to party with a new one. You will complete this by changing the original SAP, America customer by adding SAP, America UAP customer as an additional ship-to party on the Partner Functions Tab of the sold-to party. Navigation Menu Path Logistics Sales and distribution Master data Business partners Customer Change Complete
Trans Code Enter the following information: Customer: Company Code: Sales Organization: Distribution channel: Division: (Enter) Select Partner functions TAB: Partner function (add new line) Number (Enter) Ship to Party and the name will appear. (Save) Record the system message: Message SH for Ship-to party Customer # for SAP, America - UAP Customer # for SAP, America C_ _ _ S_ _ _ RE 01
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Purpose of Unit The purpose of Unit 15 is to define prices for materials, specific customer prices, and discounts. In this unit you will also establish credit limits for your customers and define those material stocks that will be considered when you are conducting an availability check for a sales order.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 132: Create Material Prices

Purpose of Exercise In this exercise you will create material prices that any customer would pay. In determining price this would be the last price that would be used to determine pricing for an item. Prices are defined by Sales Organization and Distribution Channel. Navigation Menu Path Logistics Sales and distribution Master data Conditions Create Prices Material price Trans Code Enter the following information to set up retail prices: Select Cnty SOrg. DChl Material ReSt Sales Organization: S_ _ _ Distribution channel: RE Enter the following materials and prices: Pricing information: Condition PR00 PR00 PR00 PR00
Material BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _
Amount $ 1.09 $ 2.29 $ 9.95 $ 0.49
(Enter) The system will automatically enter the material descriptions and units of measure (Save) Record the system message: Message
Enter the following information to set up wholesale prices: Double click on Select Cnty SOrg. DChl Material ReSt Sales Organization: S___ Distribution channel: WH Enter the following materials and prices:
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Pricing information: Condition PR00 PR00 PR00 PR00
Material BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _
Amount $ 0.89 $ 1.99 $ 7.50 $ 0.49
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 133: Create Customer Specific Material Price
Purpose of Exercise In this exercise you will create a special price that a specific customer receives for a specified validity period. This allows you to create special customer/material pricing. Navigation Menu Path Logistics Sales and distribution Master data Conditions Create Prices Individual prices Trans Code Enter the following information: Select CnTy SOrg. DChl Customer Material Sales Organization: S_ _ _ Distribution channel: RE Customer: SAP, America Enter the following materials and prices: Verify details of: Condition PR00 PR00 ReSt
Material CPEN_ _ _ PPEN_ _ _
Amount $ 2.09 $ 8.50
Valid on Todays Date Todays Date
Valid to 3 months from today 3 months from today
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 134: Create Customer Discount

Purpose of Exercise The purpose of this exercise is to show how a customer specific discount is created. This also serves to introduce you to the concept of a pricing scale. This condition type is currently set for Item condition (line item), but could be changed to Header condition in configuration. If it is set to a Header condition, the discount would apply to the order as a whole rather than to the individual line items in the order. Navigation Menu Path Logistics Sales and distribution Master data Conditions Create Discounts/surcharges By customer Trans Code Enter the following information: Select Sales Organization: Distribution channel: Condition Customer: (Enter) Select line button to give the customer a discount of 5% for order values between Click on the scales $1,000 and $1,900.00 and a discount of 8% for order values between $2,001 and $2,999.99 and a discount of 10% for orders larger than $2,999.99. Scale value 1000.00 Scale value 2000.00 Scale value 3000.00 (Save) Record the system message: Message Amount 5 Amount 8 Amount 10 CnTy SOrg. DChl Customer ReSt S_ _ _ WH K007 Promotional Products, Inc.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 135: Establish Credit Limit for Customers
Purpose of Exercise The purpose of this exercise is to establish credit limits for your customers. Each customer has an established credit limit. How the system reacts to a customer that has exceeded the credit limit you established is determined in configuration. The current setting is to provide a warning message, but not stop the processing of an order or delivery. Navigation Menu Path Logistics Sales and distribution Credit management Master data Change
Trans Code
Customer: Credit Control Area: Check the following:
Customer # for The Rushmore Group, LLC C_ _ _ Overview Central Data Status
(Enter) Page forward to: Customer Credit Management Change: Central Data Maximum permitted credit limits Total Amounts 5000 Individual limit 5000 Currency USD Customer Credit Management Change: Status Credit limit data Credit Limit 5000 (Save)
Repeat this for the other four customers Customer The Rushmore Group, LLC SAP, America Promotional Products, Inc. Pleasure Boats Buying Group Tanager Leasing Credit limit $ 5,000 $ 25,000 $ 2,500 $ 5,000 $ 1,000 Currency USD USD USD USD USD
(Save AFTER EACH CUSTOMER) Record the system message: Message
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Purpose of Unit The purpose of Unit 16 is to complete some final details necessary to prepare you for the comprehensive system test that begins in the next unit. This unit will have you create some specialized master data as well as complete the final configuration steps of shipping point and revenue account assignment determinations.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 136: Assign Sales Areas to Pricing Procedure
Purpose of Exercise The purpose of this exercise is to link your sales area to a pricing procedure. The RVAJUS pricing procedure is the standard USA pricing procedure with jurisdiction code. The pricing procedure which will be discussed in detail in the next unit is the manner in which prices are assigned to individual line items in your order as well as discounts, surcharges, etc. Navigation Menu Path Tools Customizing IMG Edit project Sales and distribution Basic functions Pricing Pricing control Define and assign pricing procedures
Trans Code Double click on Define Pricing Procedure Determination Select Verify details of: Sorg S_ _ _ S_ _ _
DChl RE WH
Dv 01 01
DoPr A A
CuPP 1 1
PriPr RVAAPC RVAAPC
(Enter) Check the assignment (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 137: Define Availability Check for Sales Orders
Purpose of Exercise This exercise will have you review the stocks that are to be included when you conduct and availability check at time of inquiry, quotation, order, delivery, etc. This is completed at the client level and as such you will only need to review this. It is important to note the type of stock and their status as to whether or not they are considered during the availability check. Navigation Menu Path Tools Customizing IMG Edit project Sales and distribution Basic functions Availability check and transfer requirements Availability check Availability check with ATP logic or against planning Carry out control for availability check
Trans Code
*The instructor, as a demonstration will complete this task. This availability check rule will be available to all users on this client. The instructor will complete the following information: Select Select (Display) 02 for A (SD orders)
Replenishment Lead time Deselect Check without RLT
(Back)
Student select Select (Display) (Back)
02 for A (SD orders)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 138: Assign Sales and Delivery Documents to Credit Check
Purpose of Exercise The purpose of this exercise is to assign sales and delivery documents to a Credit Check. Navigation Menu Path Tools Customizing IMG Edit project Sales and distribution Basic functions Credit management/risk management Credit management Assign sales documents and delivery documents
Trans Code
Verify the following information Double click on Credit limit check for order types For Order type Credit Check (Back) OR A
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 139: Create Shipping Point Determination
Purpose of Exercise In this exercise you will create the table that will determine the shipping point to be used in your plant. While you have only created one shipping point, you still need to create the determination table. In determining the shipping point, the following are considered: The Plant from the (1) Customer Ship-to Master or the (2) Material Master, The Shipping Conditions from the customer master, and The Loading Group from the material master. Navigation Menu Path Tools Customizing IMG Edit project Logistics execution Shipping Basic shipping functions Shipping point and goods receiving point determination Assign shipping points
Trans Code Enter the following information: Select Verify details of: SC (Shipping condition): 01 (Standard) 01 (Standard)
LGrp (Loading group): HAND (Load by Hand) CART (Handcart)
Plnt (Plant): P_ _ _ P_ _ _
PrShP (Proposed Shipping point): S_ _ _ S_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 140: Create Revenue Account Assignment Key
Purpose of Exercise This exercise creates the automatic posting of revenues when the billing document is created. At time of billing revenues are posted to the General Ledger Account. Which account to be posted is determined by a combination of: The Sales Organization, The Account assignment key, and The Account Assignment Group (Customer Master) Navigation Menu Path Tools Customizing IMG Edit project Sales and distribution Basic functions Account assignment/costing Revenue account determination Assign G/L accounts
Trans Code Select Table 002: (Details) Select Enter the following: App (application): CndTy. (Condition type): ChAc (Chart of accounts): S Org.(Sales organization): AAG (Account assignment group): ActKy (Account key): G/L acct (G/L account): Enter a second line entry: App (application): CndTy. (Condition type): ChAc (Chart of accounts): S Org.(Sales organization): AAG (Account assignment group): ActKy (Account key): G/L acct (G/L account): On completion of both entries Record the system message: Message (Save) V (Sales/Distribution) KOFI (Acct Determination) C_ _ _ S_ _ _ 01 (domestic revenue) ERL (revenue) G/L account for Revenue from Sales (600_ _ _) Cust. Grp/Account Key
V (Sales/Distribution) KOFI (Acct Determination) C_ _ _ S_ _ _ 01 (domestic revenue) ERS (sales deductions) G/L account for Revenue Discounts (610_ _ _)
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Purpose of Exercise The purpose of this exercise is to obtain current inventory information about your products. Navigation Menu Path Logistics Materials management Inventory management Environment Stock Stock overview
Trans Code Enter the following information: Material: Plant: Display version: Chose a material from the sales order P_ _ _ 1
(Execute) In the column Unrestricted use the current inventory is displayed Double click on the line with your Plants stock. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Note the stock types and the quantities Exit the detailed display window Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Sales Orders Use BPEN_ _ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Comprehensive Test of Business Case Scenario Unit 17:
Purpose of Unit The purpose of Unit 17 is to provide a comprehensive testing of the organizational and master data, you have set up using a series of transactions. These transactions will provide you with an understanding of how the options you selected during configuration impact your transactions.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 142: Create Sales Order

Purpose of Exercise This exercise will have you create a sales order. Navigation Menu Path Trans Code Order type: Sales organization: Distribution channel: Division: OR S_ _ _ RE 01 Customer # for The Rushmore Group, LLC (any number) (todays date) Logistics Sales and distribution Sales Order Create
(Enter) Enter the sold-to party Enter a purchase order number Enter a PO date Sales TAB Req. deliv. date Enter the following: Material BPEN_ _ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _
Enter date 3 days from today QTY 250 100 50 150
(Enter) Review Overview Data: Select line item 10 (Conditions) Review item pricing (Back) Select line item 20 (Schedule lines for item) Review Schedule line (Back) (Display availability) Review Stock overview (Back)
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Header Data: Goto Header Sales Sales TAB Note and record the pricing procedure ______________________ Conditions TAB Note and record the net value for the order this is the total of all line items $____________________ (Back) (Save) Record the system message: Message
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Purpose of Exercise The purpose of this exercise is to update the current inventory information about your products. Open a new session (or System Create session) Navigation Menu Path Logistics Materials management Inventory management Environment Stock Stock overview
Trans Code Enter the following information: Material: Plant: Display version: (Execute) In the column Unrestricted use the current inventory is displayed Double click on the line with your Plants stock. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Note the sales orders quantity appears in the Sales orders stock type Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Sales Orders Use BPEN_ _ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _ the material numbers of the item on the sales order P_ _ _ 1
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 144: Create Delivery Note for Sales Order
Purpose of Exercise The purpose of this exercise is to create a delivery based on the customers order. Creating the delivery brings your order to the point where stock availability is re-determined, and the quantity of ordered items are moved to a scheduled for delivery stock status. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Create Single document With reference to sales order
Trans Code Enter the following information: Shipping point: Selection date: Order: (Enter) The system defaults the items and quantities from the sales order that are scheduled to be delivered. Click on the line item 10 (Details) (Back) Picking Tab: Verify system selected: (Save) Record the system message: Message Plant/Sloc: = P_ _ _ / 10 for each item S_ _ _ Enter a date 7 days from today Enter the order number of the sales order created earlier
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Purpose of Exercise The purpose of this exercise is to update the current inventory information about your products. Open a new session (or System Create session) Now go to your other session (Alt + Tab), and leave this session open. Click on the REFRESH icon or if the Stock Overview is no longer displayed enter the menu path and information below. Navigation Menu Path Logistics Materials management Inventory management Environment Stock Stock overview
Trans Code Enter the following information: Material: Plant: Display version: (Execute) In the column Unrestricted use the current inventory is displayed Double click on the line with your Plants stock. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Note that the quantity from the Sales Order stock type has moved to the Schd. for delivery stock type Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Use Sales Orders BPEN_ _ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _ Exit the detailed display window Now go to your other session, leaving this session open. (Alt + Tab or select on the bottom bar of your screen) the material numbers of the item on the sales order P_ _ _ 1
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 146: Picking Materials on Delivery Note
Purpose of Exercise The purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the proposed materials per delivery. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Enter the delivery note number from the previous exercise. (Enter) The material delivery quantity is proposed. Enter Pick quantity to match the proposed delivery quantity Enter the storage location that contains the inventory (check stock status if you dont remember) Pick quantity = (Save) Recheck the stock status of the materials. Note that no change has occurred in the stock status - the quantities are still in the Schd. for delivery stock type field. Record the system message: Message Delivery quantity
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Purpose of Exercise This exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect the inventory shipped. This is the time at which the ownership of the goods changes from you to the customer. These goods have left your plant and are now owned by your customer. Both inventory and costs of goods sold are impacted by this transaction. If you have shipped or sold the goods FOB Destination, the actual change of ownership takes place at the time the goods are received at the customers location. However, the system reflects the materials are no longer available in your stock at the time of post good issue. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Enter the delivery note number. Select The system returns a message indicating change to the delivery note. To recheck the stock status (see earlier exercises): Switch back to your other session that is still on the Stock overview. Check the stock status of the materials (Execute)
Note the quantity from the Schd. for delivery stock type has disappeared and the Unrestricted use stock quantity has been reduced. Record the system message: Message
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Purpose of Exercise The purpose of this exercise is to update the current inventory information about your products. Now go to your other session (Alt + Tab), and leave this session open. Click on the REFRESH icon or if the Stock Overview is no longer displayed enter the menu path and information below. Navigation Menu Path Logistics Materials management Inventory management Environment Stock Stock overview
Trans Code Enter the following information: Material: Plant: Display version: (Execute) In the column Unrestricted use the current inventory is displayed Double click on the line with your Plants stock. (A pop-up window is displayed showing the details of the inventory by stock type at the plant.) Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Sales Orders Use BPEN_ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _ the material numbers of the item on the sales order P_ _ _ 1
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 149: Bill Customer

Purpose of Exercise This exercise will create the billing document for the customer. It is at this time when the revenue is recognized and posted to the general ledger. Once the post goods issue has been completed, you can bill your customer for those goods. Navigation Menu Path Trans Code The system will default the last delivery document created. (Execute) The system displays the customer and the materials on the delivery with total values to be billed. Record the total amount billed to the customer.__$_____________________ (Save) The billing document number is displayed at the bottom of the screen. Record the system message: Message Logistics Sales and distribution Billing Billing document Create
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Purpose of Exercise This exercise will see your customer paying the invoice you created in the billing exercise. The payment will be posted to the general ledger accounts. This entry will increase the bank account, reduce the customers account receivable balance as will as the account receivable reconciliation account. Navigation Menu Path Accounting Financial accounting Accounts receivable Document entry Incoming payment
Trans Code Enter the following information: Document date: Company code: Currency/rate: Bank data: Account: Amount: Open item selection: Account: Select (Save) Record the document number for this posting ________________ Return to the Sales Order and review the Document flow for the customer orders that you just processed. Record the system message: Message Todays date C_ _ _ USD The G/L account for your bank account Enter the amount of the payment (from sales order) Customer # for The Rushmore Group, LLC
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 151: Review Document Flow

Purpose of Exercise This exercise provides you with exposure to a powerful tool in customer order management. The document flow provides a look at the entire transaction from beginning to the end. In this example, you have created an order, a delivery, posted goods issue, billed the customer and received payment. To examine the flow, you can begin with any one of these document numbers and the document flow will show an audit trail of all documents tied to that number. Navigation Menu Path Trans Code Enter your order number. Select Menu: Environment Display Document flow The system displays a list of documents associated with the order. Click on the line of the GD goods issue: delvy 49000.### Select The system displays the material document with a goods movement 601, which is the movement type for goods issue to a delivery note (Post Goods Issue). Select to view the account postings for this goods movement. Logistics Sales and distribution Sales Order Display
(Back) to the overview screen It can be seen from the document flow that: 4. The entire document flow is now shown.
5. There are no open documents. 6. The business cycle is complete. Note: You can view the document flow from the Sales Order, Delivery or Billing screens. Click on the line of the Standard Order # Select the The document flow can be seen in greater detail. Click on the line of the Outbound Delivery # Select the The Document Header Status can be viewed
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Purpose of Unit The purpose of Unit 18 is to create a sales order using your customer info record for Pleasure Boats Buying Group and then complete the order to cash business process.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 152: Create Customer Material Info Record
Purpose of Exercise This exercise introduces you to the concept of Customer Material Information Records. When a customer wishes to order materials from us using a different naming convention than you do, you can set up a Customer Material Info Record which allows us to enter materials by the customer's specific naming convention. This is especially true in the wholesale area. Customers order products by their product number not necessarily your product number. SAP provides for the translation of these materials into your material names, which enables the customer and your sales representative to communicate clearly. Navigation Menu Path Logistics Sales and distribution Master data Rebate arrangements Customer material information Create
Trans Code Enter the following information: Customer number: Sales organization: Distribution channel: (Enter) Enter the following materials and the corresponding customer material name as indicated: Verify details of: Material BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _ Customer # for Pleasure Boats Buying Group S_ _ _ WH
Pleasure Boats Buying Group Material Number Dinghy Bow Rider Yacht Slip
(Enter) (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 153: Create Sales Order Using Customer Info Record
Purpose of Exercise This exercise will have you create a sales order using Pleasure Boats Buying Group material info record (their part numbers/name). Navigation Menu Path Trans Code Order type: Sales organization: Distribution channel: Division: OR S_ _ _ WH 01 Logistics Sales and distribution Sales Order Create
(Enter) Enter the sold-to party number for Pleasure Boats Buying Group Enter a purchase order number (any number) (Enter) Select Ordering party tab A new field appears in the Sales Order line item: Customer material no. Enter the following customer materials and quantities: Materials and Quantities for order Customer material no Dinghy Bow Rider Yacht Slip (Enter) Note: The system references the customer material numbers and copies our equivalent material number and all relevant data. Check the pricing to see that wholesale pricing was applied. Go to the header and record the Sales Orders Net Value $________________________ (Save) Record the system message: Message
QTY 250 100 30 150
Material (Leave blank)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 154: Create Delivery for Sales Order
Purpose of Exercise The purpose of this exercise is to create a delivery based on the customers order. Creating the delivery brings your order to the point where stock availability is re-determined, and the quantity of ordered items are moved to a scheduled for delivery stock status. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Create Single document With reference to sales order
Trans Code Enter the following information: Shipping point: S_ _ _ Selection date: Enter a date 7 days from today Order: Enter the order number of the sales order created earlier (Enter) The system defaults the items and quantities from the sales order that are scheduled to be delivered. Click on the line item 10 (Details) (Back) Picking Tab: Verify system selected: (Save) Record the system message: Message Plant/Sloc: = P_ _ _ / 10 for each item
To recheck the stock status (see previous exercises): Switch back to your other session that is still on the Stock overview. (Back) Check the material number and check the plant number
(Execute) again The updated stock level is now displayed. Note that the quantity from the Sales Order stock type has moved to the Schd. for delivery stock type.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 155: Pick Materials on Delivery Note
Purpose of Exercise The purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the proposed materials per delivery. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Enter the delivery note number from the previous exercise. (Enter) The material delivery quantity is proposed. Enter Pick quantity to match the proposed delivery quantity Enter the storage location that contains the inventory (check stock status if you dont remember) Pick quantity = (Save) Recheck the stock status of the materials. Note that no change has occurred in the stock status - the quantities are still in the Schd. for delivery stock type field. Record the system message: Message Delivery quantity
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Purpose of Exercise This exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect the inventory shipped. This is the time at which the ownership of the goods changes from you to the customer. These goods have left your plant and are now owned by your customer. Both inventory and costs of goods sold are impacted by this transaction. Navigation Menu Path: Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document Trans Code: Enter the delivery note number. Select The system returns a message indicating change to the delivery note. To recheck the stock status (see earlier exercises): Switch back to your other session that is still on the Stock overview. Check the stock status of the materials (Execute) Note the quantity from the Schd. for delivery stock type has disappeared and the Unrestricted use stock quantity has been reduced. Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 157: Bill customer

Purpose of Exercise This exercise will create the billing document for the customer. It is at this time when the revenue is recognized and posted to the general ledger. Once the post goods issue has been completed, you can bill your customer for those goods. Navigation Menu Path Trans Code The system will default the last delivery document created. (Execute) The system displays the customer and the materials on the delivery with total values to be billed. . Record the total amount billed to the customer Logistics Sales and distribution Billing Billing document Create
(Save) The billing document number is displayed at the bottom of the screen. Record the system message: Message
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Purpose of Exercise This exercise will see your customer paying the invoice you created in the billing exercise. The payment will be posted to the general ledger accounts. This entry will increase the bank account, reduce the customers account receivable balance as will as the account receivable reconciliation account. Navigation Menu Path: Accounting Financial accounting Accounts receivable Document entry Incoming payment Trans Code: Enter the following information: Document date: Company code: Currency/rate: Bank data: Account: Amount: Open item selection: Account: Select (Save) Record the system message: Message Todays date C_ _ _ USD
The G/L account for your bank account Enter the amount of the payment Pleasure Boats Buying Group
Return to the Sales Order and review the Document flow for the customer orders that you just processed.
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Purpose of Unit The purpose of Unit 19 is to create a sales order using a scheduling agreement for The Rushmore Group and deliver against the scheduling agreement.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 159: Create a Scheduling Agreement

Purpose of Exercise This exercise will have you create a scheduling agreement for The Rushmore Group. Navigation Menu Path Logistics Sales and distribution Sales Scheduling agreement Create
Trans Code Sched. agreement type: Sales organization: Distribution channel: Division: (Enter) Scheduling agreement: Sold-to party: Ship-to party: PO number: PO Date: Item Overview TAB: Description: Valid-from date: Valid-to date: Material: Target quantity: (Enter) Select the item line for DS S_ _ _ RE 01
(leave blank) The Rushmore Group, LLC leave blank any number or text Todays date
Scheduling Agreement _ _ _ Todays date Six months from todays date CPEN_ _ _ 250
CPEN_ _ _
Select Schedule lines for items button from the button bar on the bottom Enter three schedule lines First line 6 days from today for 50 pens Second line 14 days from today for 100 pens Third line: 2 months from today for 100 pens (Enter) (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 160: Process Deliveries for a Scheduling Agreement
Purpose of Exercise This exercise will have you create a delivery with reference to the scheduling agreement. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Create Single document With reference to sales order
Trans Code Shipping point: Selection date: Order: Pick and post goods issue. S_ _ _ 7 days from todays date The Schedule agreement number
Repeat the exercise using a selection date 14 days from todays date Note that by selecting dates after the due date of each schedule line, only the material scheduled as due by that date is selected Record the system message from 7 day delivery: Message
Record the system message from 14 day delivery: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 161: Display Scheduling Agreement

Purpose of Exercise This exercise has you display the scheduling agreement you created earlier to review the current status. Navigation Menu Path Logistics Sales and distribution Sales Scheduling agreement Display
Trans Code
Enter the scheduling agreement number (Enter) Select the line item Select (Schedule lines for items)
Note the Delivered qty field now has the quantity of the material delivered filled in for those deliveries that have been made. Select (Display flow)
Review the document flow you will see one schedule agreement followed by first outbound delivery, the picking request and the post goods issue then the second outbound delivery, the picking request and the post goods issue.
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Purpose of Exercise The purpose of this exercise is to update the current inventory information about your products. Navigation Menu Path Logistics Materials management Inventory management Environment Stock Stock overview
Trans Code Enter the following information: Material: Plant: Display version: (Execute) Record the storage location and quantity of inventory for each material: Stock Type Unrestricted Material Storage Location Sales Orders Use BPEN_ _ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _ CPEN_ _ _ (check for all materials and record below) P_ _ _ 1
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 163: Run Customer Credit Check
Purpose of Exercise The purpose of this exercise is to review the customer credit profile. Navigation Menu Path Logistics Sales and distribution Credit management Credit management info system Overview
Trans Code Enter the following information: Credit Account Credit Control Area (Execute) Place cursor on customer name Credit Master Sheet Environment Error message will ask you to enter required information Credit Account Area C___ (Execute) Review information Enter your customer number for Rushmore Group C_ _ _
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Purpose of Unit The purpose of Unit 20 is to create two sales orders. One sales order using the item proposal and the second sales order that will result in a credit warning, as well as request more goods than you have for sale. This will require you to run Material Requirements Planning, convert purchase requisitions to purchase orders, receive the goods, receive the invoices, and post payment to the vendors. The deliveries for these sales orders will be completed in the next unit.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 164: Create Item Proposal

Purpose of Exercise The purpose of this exercise is to allow for situations where a customer often places an order with the same line items, an Item Proposal (order template) can be created with the standard line items and quantities already filled in. You can then pull the standard items in as you create the sales order by referencing the Item Proposal. Once referenced and pulled into the order quantities can be changed, line items can be deleted or added. Navigation Menu Path Logistics Sales and distribution Master data Products Item proposal Create
Trans Code Enter the following information: Item proposal type: Sales organization: Distribution channel: Division: (Enter) Item proposal: Description: Valid-from date: Valid-to date: PV S_ _ _ RE 01 leave blank SAP Promotion Set todays date date a year from today
Enter the following materials and quantities: BPEN_ _ _ 100 CPEN_ _ _ 75 PPEN_ _ _ 25 BOX_ _ _ 100
(Enter) (Save) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 165: Assign Item Proposal to Customer
Purpose of Exercise In this exercise you will now assign that item proposal to the customer master. Whenever you ask for an Item Proposal in a sales order for that customer, the system will default this Item Proposal. Navigation Menu Path Logistics Sales and distribution Master data Business partners Customer Change Complete
Trans Code Enter the following information: Customer: Sales org: Distribution channel: Division: (Enter) Select Sales TAB Enter the number of the newly created item proposal. (Save) Record the system message: Message SAP America S_ _ _ RE 01
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 166: Create Sales Order Using Item Proposal
Purpose of Exercise This exercise will have you create a sales order using the item proposal we created and assigned to SAP, America. We will use the materials and quantities in the item proposal. Navigation Menu Path Trans Code Enter the following information: Order type: Sales organization: Distribution channel: Division: (Enter) Standard order: Sold-to party: Ship-to party: Purch. order no: PO date: (Enter) A pop-up window appears with the two ship-to addresses for this customer. Select (Enter) To find the item proposal for this customer, select: In the pop-up window, the system copies the number of the product proposal for this customer Select You may also need to select the delivery you wish: One-time del. On req. del. dte. Complete delivery Dely proposal Select (Copy) for a Complete delivery SAP, America UAP OR S_ _ _ RE 01 leave blank SAP, America leave blank any entry leave blank Logistics Sales and distribution Sales Order Create
Review the pricing options: Select the line item CPEN_ _ _ Click and note the pricing
(Back) Select the line item PPEN_ _ _ Click and note the pricing
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(Back) Select the line item BPEN_ _ _ Click and note the pricing (Back) The material pricing includes the special customer pricing that was established for SAP, America. Record the Sales Orders Net Value :
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 167: Create Sales Order Value Discount
Purpose of Exercise This exercise will have you create a sales order that will demonstrate the discounts prices we established for Promotional Products, Inc. Navigation Menu Path Trans Code Logistics Sales and distribution Sales Order Create
Order type: Sales organization: Distribution channel: Division:
OR S_ _ _ WH 01 Customer # for Promotional Products, Inc. (any number) (todays date)
(Enter) Enter the sold-to party Enter a purchase order number Enter a PO date Sales tab: Req. deliv. date Enter the following: Material BPEN_ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _
Enter date 3 days from today QTY 1000 550 275 825
(Enter) You will need to select the delivery you wish: One-time del. On req. del. dte. Complete delivery Dely proposal Select (Copy) for a Complete delivery
You will receive one or more warnings that credit limit is exceeded Note: This is only an information message or warning; as such you will be able to continue processing the order. Select the line item CPEN_ _ _ Click and note the pricing and discount (Back) Select the line item PPEN_ _ _ Click and note the pricing and discount
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Review The material pricing includes the 5% discount from the customer-specific material pricing record for >$1,000 and <$2,000 and the 8% discount for items with an extended value of >$2,000 and <$3,000 and the 10% discount for items with an extended value of >$3,000. Change the quantity of the line item for PPEN_ _ _ from 275 to 420 and verify that the discount changed. Select the line item PPEN_ _ _ Click and note the pricing and discount (Back) Record the Sales Orders Net Value :
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Purpose of Exercise Allow the system to plan the availability and requirements for the barrel pen.
Navigation Menu Path Logistics Materials management Materials requirements planning (MRP) MRP Planning Single-item, single-level
Trans Code Enter the following information: Enter material number: Enter plant: Processing key: Create pur. req.: Deliv. schedule: Create MRP list: Planning mode: Scheduling: Select (Enter) A warning message appears - please check input parameters (Enter) again to confirm and check the warning message Review the MRP list (Save) Complete this activity for each Item (BPEN_ _ _ ; CPEN_ _ _ ; and BOX_ _ _) Record the system message: Message PPEN_ _ _ P_ _ _ NETCH 2 3 1 1 1 Display results before they are saved
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 169: Display Stock/Requirements List

Purpose of Exercise In this exercise you will review the stock requirements list for PPEN_ _ _. Navigation Menu Path Trans Code Enter the following information: Material Plant (Enter) Logistics Production MRP Evaluations Stock/Reqmts List
PPEN_ _ _ P_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 170: Convert Purchase Requisition to Purchase Order
Purpose of Exercise The purpose of this exercise is to convert the MRP recommended purchase requisitions to satisfy the stock requirement by converting the planned purchase requisition to a purchase order. Navigation Menu Path Logistics Materials management Materials requirements planning (MRP) MRP Evaluations Stock/requirements list
Trans Code Enter the following information: Material: Plant: (Enter) Double click on the purchase req to be converted. Click on the Enter Purchasing Organization Purchasing Group Company Code Enter Vendor (Enter) Single-Click on Open Requisitions line in the left window button P_ _ _ ___ C_ _ _ Vendor # for Premier Pens PPEN_ _ _ P_ _ _
Then Select (Adopt) Verify the details of the purchase order Increase the PO Amount by 150 Note the amount of the purchase order $__________________ (Save) Record the new purchase order number._____________________ (Refresh) button to refresh the Stock/Reqmts List Select the Notice the MRP elements change from the old PurReq to display the new POitem.
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Repeat this process for: BPEN_ _ _ CPEN_ _ _ BOX _ _ _ Item PPEN _ _ _ CPEN _ _ _ BPEN _ _ _ BOX _ _ _ PO Number Dollar Amount
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 171: Create Goods Receipt

Purpose of Exercise This exercise has you receive the pens that have arrived at your receiving dock and are ready to be received into inventory. Navigation Menu Path Logistics Materials management Inventory management Goods movement Goods receipt For purchase order GR for purchase order
Trans Code
Enter the following information: Enter your PO # (Execute) Ensure each line item OK is checked Enter storage location 10 (Inventory) 4500000???
Notice that the quantity from the PO defaults as the quantity to receive. Select or (Save)
Complete for all POs Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 172: Create Invoice Receipt from Vendor
Purpose of Exercise This exercise has you enter the Vendors invoiced for the items ordered. Navigation Menu Path Logistics Materials management Logistics invoice verification Document entry Enter invoice
Trans Code Enter the following information: Invoice Date: Check your Company Code: Enter Currency: PO number: (Enter) Enter amount: Tax code: (Enter) Use the (Post) Record the system message: Message button to see if the postings are correct. Enter amount from invoice XI (Enter today's Date) C_ _ _ USD (Enter your purchase order number)
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Purpose of Exercise The purpose of this exercise is to post payment to the vendors. The invoices are now due for payment. You are requested to clear the invoices by posting an outgoing payments using the bank account (no. 1000_ _) of your chart of accounts. Navigation Menu Path Accounting Financial accounting Accounts payable Document entry Outgoing payment Post
Trans Code Enter the following information: Document date: Today Account: 100_ _ _ (Bank) Amount: Enter the amount of the outgoing payment Text: Invoice Number or other text Open items selection: Account: Vendor # for Premier Pens All other settings remain unchanged. Select Review the balance. (Save) Record the system message: Message
Again display vendor line items Navigation Menu Path Accounting Financial accounting Accounts payable Account Display/Change line items
Trans Code Enter the following information: Vendor Company code Select (Execute) Review for All items Vendor # for Premier Pens C_ _ _ All items
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Purpose of Unit The purpose of Unit 21 is to look at the functionality of delivery and billing due lists. Delivery and billing due list provide you the opportunity to create your deliveries and billings collectively, rather than one at a time.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 174: Run Delivery Due List
Purpose of Exercise The purpose of this exercise is to have you run a delivery due list. In normal daily operation, creating delivery notes for each individual sales order is the exception rather than the rule. In most companies, the shipping department would run the delivery due list, which, creates delivery notes for any material with deliverable items. Items which are due for delivery are defined by the following parameters: Material is available and scheduled The date of due delivery has arrived Material is delivered for the chosen shipping point (determined from shipping point determination) Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Create Collective processing of documents due for delivery Sales orders
Trans Code Enter the following information: Shipping point: Delivery creation date: General data TAB: Sales organization: S_ _ _ (OR furnish your specification via, Sold to Party, Delivery Priority etc.) (Execute) Select the desired line(s) In some cases, the system has combined deliveries from different orders on the Select same delivery note number. This is set in the customer master, by selecting Order combination. (Save) Record the delivery note document numbers:______________________________________________ Record the system message: Message S_ _ _ Enter a spread of dates from one week ago to 14 days from today
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 175: Pick Materials on Delivery Note
Purpose of Exercise In this exercise you will update the delivery documents created by entering the picked quantities into the delivery note. When saved, the delivery has changed to a picked status. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Enter a delivery note number from the previous exercise. (Enter) Picking TAB: Note: Material delivery is displayed, enter Pick quantity (next to Delivery quantity) Select the storage location for the individual materials. Enter the Pick quantity the same as the Delivery quantity for each material. (Enter) (Save) Record the system message: Message
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Purpose of Exercise This exercise will have you create the post goods issue which reduces unrestricted stock to reflect the inventory has shipped. This needs to be completed for all delivery notes. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Outbound delivery (Enter) Storage location Select The system returns a message indicating change to the delivery note. Now go to your other session, leaving this session open. (Alt + Tab or select on the bottom bar of your screen) Recheck the stock status of the materials: Notice the quantity from the Schd. for delivery stock type has disappeared and the Unrestricted use stock quantity has been reduced. Stock Type Unrestricted Use (Select from available inventory) (Select the delivery document )
Material BPEN_ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _
Storage Location
Sales Orders
Update the stock status of the materials by selecting: (Execute) Note the quantity from the Schd. for delivery stock type has disappeared and the Unrestricted use stock quantity has been reduced.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 177: Run Billing Due List, Invoice Customers
Purpose of Exercise This exercise introduces you to the concept of collective billing. The Billing due list is a collective display of all bills due in a specified period of time. This allows you to then individually or collectively create all the invoices. Navigation Menu Path Logistics Sales and distribution Billing Billing document Maintain billing due list
Trans Code In the Billing data section: Billing date from: Billing to date: Billing type: SD document: In the Organization data section: Sales organization: Documents to be selected: Select Order-related Select Delivery-related Click The system lists all the documents (Delivery numbers) due for invoicing Now we complete the invoices as follows: Click on an individual SD document number Click on (Save) Record the system message: Message S_ _ _ a week ago todays date is defaulted as the to date leave blank leave blank
The system automatically generates the listed invoices and displays the number of invoices created.
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Purpose of Exercise This exercise will have you go through and post receipt of payment from all of our customers for all the orders you have created to date. You post the incoming payment to the customer's account. Navigation Menu Path Accounting Financial accounting Accounts receivable Document entry Incoming payment
Trans Code Enter the following information: Document date: Company code: Currency/rate: Bank data: Account: Amount: Open item selection: Account: Todays date C___ USD
Your Bank Account Enter the amount of the payment
Customer number
Select Note: The not assigned amount should be 0.00 (Save) Record the system message: Message
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Purpose of Unit The purpose of Unit 21 is to introduce you to the return process. In this unit you will create a goods return order, receive the goods, and complete the process by transferring them back into unrestricted stock, issuing a credit and pay the customer for the goods they returned.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 179: Create Goods Return Order
Purpose of Exercise In this exercise you will create a return for fifty (50) Barrel Pens due to a quantity discrepancy. The process of creating a goods return order is no different from that of creating a standard sales order. Navigation Menu Path Trans Code Enter the following information: Order Order # From Promotion Products, Inc Logistics Sales and distribution Sales Order Change
(Enter) Acknowledge Information pop-up window: Consider the subsequent documents Sales Document Create Subsequent Order Order type: Sales organization: Distribution channel: Division: Select Select (Deselect All) Select Material Change Quantity to Select Order Reason Verify Material Quantity BPEN_ _ _ 50 This will return you to the Create Returns Overview Screen Quantity Discrepancy BPEN_ _ _ 50 RE S_ _ _ WH 01
Record the Return Order Net Value $________________________ (Save) Record Return Order Number __________________ Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 180: Create Delivery Note for Return Order
Purpose of Exercise This exercise will have you create the goods receipt for the returned pens. The menu path for a goods receipt of a return order is no different from that of a delivery creation for sales order. A goods receipt is issued for blocked (inspection) stock. Promotional Products, Inc. Return Merchandise Authorization RMA1234 Reason for rejection: ITEMS: BPEN_ _ _
Quantity Discrepancy QUANTITY: 50
Navigation Menu Path Logistics Sales and distribution Sales Order Subsequent functions Outbound delivery
Trans Code
Enter the following information: Shipping point: S_ _ _ Selection date: Today + 2 days Order: the returns order number (Enter) Check the material, customer etc. If correct (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 181: Receive Materials from Goods Return Order
Purpose of Exercise The purpose of this exercise is to pick the goods and post goods issue. Navigation Menu Path Logistics Sales and distribution Shipping and transportation Outbound delivery Change Single document
Trans Code Outbound delivery Change Enter the delivery note number from the previous exercise. (Enter) On the Picking Tab Enter the storage location: (Save) Select Record the system message: Message 10 (Inventory)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 182: Check Document Flow

Purpose of Exercise This exercise will have you review the document flow up to this point in the return process. Navigation Menu Path Trans Code Enter the following: Document Logistics Sales and distribution Sales Order Change
Return Order Number
Environment Display Document flow Display the GD document A material document displaying a single goods movement, movement type 651 is displayed. Since we havent accepted ownership yet, there is no accounting document. Movement type 651 moves material into a Returns stock type. Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 183: Review the Stock Overview
Purpose of Exercise This exercise will have you look at the stock overview and record the types of BPEN_ _ _ stock.
Trans Code Material Plant Storage Location Select (Execute) BPEN_ _ _ P_ _ _ Leave Blank
Double click on a line item Record the total stock in unrestricted use ______________ Record the total stock in Returns_______________ Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 184: Transfer Return Stock to Unrestricted Use
Purpose of Exercise The purpose of this exercise is to transfer the returned goods to unrestricted stock. The movement results in a debit to the trading goods account and a credit to the COGS account. Navigation Menu Path Logistics Material management Inventory management Goods movement Transfer posting Movement type Transfer posting Stock to stock Own from returns
Trans Code Enter the following: Movement type: Plant: Storage location: (Enter) Enter Quantity Unit of Measure (Enter) (Save) Record the material document number _____________________ Display the material and accounting documents. Re-check the stock status of the material to confirm the return stock has been transferred to unrestricted stock Record the system message: Message BPEN_ _ _ 50 EA
453 is defaulted P_ _ _ 10
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 185: Post Customer Credit

Purpose of Exercise This exercise will have you prepare to issue a credit, the Billing block must be removed from the Returns sales order to proceed with issuing the credit. Navigation Menu Path Trans Code Enter the following information: Order: Return sales order number Logistics Sales and distribution Sales Order Change
(Enter) Acknowledge Information pop-up window: Consider the subsequent documents.: (Enter) Delete the entry in the field Billing block (Save) Record the system message: Message
Once this process has been completed the credit memo can be generated
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 186: Run Billing Due List
Purpose of Exercise The purpose of this exercise is to create the account payable to the customer for the returned goods. Navigation Menu Path Trans Code Enter your Return Order number Document (Enter) Record the total amount billed to the customer. $____________________ (Save) The billing document number is displayed at the bottom of the screen. Record the system message: Message Return order number Logistics Sales and distribution Billing Billing document Create
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 187: Release Billing Document to Accounting
Purpose of Exercise The purpose of this exercise is to release the billing document to accounting. Before the billing document can be processed, Sales must release it to Accounting. All credits are automatically blocked for processing so that they may be reviewed prior to being released to Accounting for payment. Navigation Menu Path Trans Code Enter Billing Document number Billing Document Release to accounting Logistics Sales and distribution Billing Billing document Change
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Purpose of Exercise This exercise will have you review the document flow up to this point in the return process. Navigation Menu Path Trans Code Enter the following: Document Logistics Sales and distribution Sales Order Change
Return Order Number
Environment Display document flow Review the accounting document created by billing
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 189: Post Payment to the Customer Refund
Purpose of Exercise This exercise will have you post a payment to your customer. Now that they have received the invoice with the credit you will need to send them a payment. The payment will be reflected in their account. Navigation Menu Path Accounting Financial accounting Accounts receivable Document entry Other Outgoing payments
Trans Code Enter the following information: Document date: Company code: Currency/rate: Bank data: Account: Amount: Open item selection: Account: Select (Save) Record the document number for this posting ________________ Return to the Sales Order and review the Document flow for the credit orders that you just processed. Record the system message: Message Todays date C_ _ _ USD
The G/L account for your bank Enter the amount of the payment (from sales order) Customer # for Promotional Products, Inc.
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Purpose of Exercise This exercise will have you review the document flow now that the process is complete. Navigation Menu Path Trans Code Enter the following: Document Logistics Sales and distribution Sales Order Change
Return Order Number
Environment Display document flow Review the accounting document has it been cleared.
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The Rushmore Group, LLC

Business Process Integration I

Presented by The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2006

SAP AG and The Rushmore Group, LLC 2006

The Rushmore Group, LLC and SAP 2006 1

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SAP AG and The Rushmore Group, LLC 2006

The Rushmore Group, LLC and SAP 2006 4

SAP AG and The Rushmore Group, LLC 2006

SAP AG and The Rushmore Group, LLC 2006

Three-Tier SAP Structure

SAP AG and The Rushmore Group, LLC 2006

The Rushmore Group, LLC and SAP 2006 5

SAP Enterprise System

Internet Transaction Server

SAP AG and The Rushmore Group, LLC 2006

SAP Enterprise System

mySAP Business Suite

SAP AG and The Rushmore Group, LLC 2006

SAP Enterprise System

mySAP ERP Modules

Materials Mgmt. Production SM Planning Service Mgmt.

SAP AG and The Rushmore Group, LLC 2006

The Rushmore Group, LLC and SAP 2006 6

SAP AG and The Rushmore Group, LLC 2006

SAP R/3 Basics

SAP AG and The Rushmore Group, LLC 2006

SAP AG and The Rushmore Group, LLC 2006

The Rushmore Group, LLC and SAP 2006 7

Programming Code Modifications

SAP AG and The Rushmore Group, LLC 2006

SAP R/3 Document Principle

Once created, a document can not be deleted from the database

The Rushmore Group, LLC and SAP 2006 8

Business Processes, Integration, and Configuration in the SAP R/3 Environment

SAP Enterprise System

Two Differing Learning Approaches

SAP AG and The Rushmore Group, LLC 2006

SAP Enterprise System

Learning by Creating a Model Business

The Rushmore Group, LLC and SAP 2006 9

SAP Enterprise System

SAP R/3 and Business Processes

SAP Enterprise System

Pen Incorporated Procure for Sales Order

Availability Check In Inventory

Goods to Delivery Plant or Warehouse Inventory Postings General Ledger Accounts

SAP AG and The Rushmore Group, LLC 2006

The Rushmore Group, LLC and SAP 2006 10

SAP Enterprise System