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LO925 Cross-Application Business Processes in SD and MM PDF
LO925 Cross-Application Business Processes in SD and MM PDF
in SD and MM
LO925
LO925
Cross-Application
Business Processes in
SD and MM
SAP AG 1999
R/3 System
Release 4.6C
November 2000
Material Number 50040301
Copyright
SAP AG 2002
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Sales and Distribution
LO610 2 days
Proposal @
Delivery Processes
@LO605b 1,5 h
LO611 3 days
Transportation
Cross Selling
@
LO615 2 days
LO650 3 days
Billing
LO150 5 days Cross Functional
Processes in Sales Customizing in SD
LO620 3 days
and Distribution
Pricing in SD
LO640 3 days
Foreign Trade
LO645 2 days
Credit and Receivables
Risk Management
LO925 2 days
Cross Application
Business Processes
in SD and MM
SAP AG 1999
Materials Management
Level 2 Level 3
LO510 3 days
Inventory Management
LO515 3 days
LO550 5 days
Invoice Verification
Cross-Functional
LO520 3 days Customizing in MM
Purchasing Details and LO521 2 days
Optimization Pricing in Purchasing
LO020 5 days
LO525 2 days
Processes in Consumption-Based
Procurement Planning and
LO955 3 days
Forecasting
Batch Management
LO540 2 days
Procurement of
External Services
LO925 2 days
Cross-Application
Business Processes in
SD and MM
LO640 3 days
Foreign Trade LO235 2 days
KANBAN
LO715 2 days
QM in Procurement
SAP AG 1999
Course Prerequisites
SAP AG 1999
Target Group
Participants:
Staff in the project team who are responsible for
implementing cross-application business processes in
sales and materials management
Duration: 2 days
SAP AG 1999
Contents:
Course Targets
Course Objectives
Table of contents
Course Overview Diagram
Main Business Scenario
SAP AG 1999
SAP AG 1999
SAP AG 1999
Introduction
Unit 7 Conclusion
Appendix
SAP AG 1999
delivers delivers
Customer Vendor Customer Plant
Sales Sales
organization organization
Company 1
Company code
delivers delivers
orders delivers
orders delivers
Plant
SAP AG 1999
delivers
Customer Vendor
orders orders
Sales
organization
Company
SAP AG 1999
In third-party order processing, the goods ordered by the customer are not delivered by your
company (in the diagram above, your company is represented by the term “company”). Instead, you
pass on the order to an external vendor, who then sends the goods directly to the customer and sends
the invoice to you.
The purchase order of your customer is entered in a sales organization of your company as a sales
order.
Afterwards, a purchase order for the external vendor is created in your company.
Contrary to a cross-company sales activity, the vendor is not an associated company that operates in
the same R/3 client.
Customer delivers
Plant
orders
Company 2
Sales
organization
Company 1
SAP AG 1999
In the case of cross-company sales activities, you also have a different company delivering the
ordered goods. The selling and the delivering companies are associated partners that work in the
same R/3 client.
The cross-company sale is characterized by the fact that the sales organization in which the sales
order is entered and the plant from which the goods are to be delivered are in different companies
(company codes).
Since both companies create their own separate financial statements, the delivering company must
bill the ordering company for the goods.
Plant 2 Plant 2
Plant 1 Plant 1
Company Company
1
Intra-company Cross-company
SAP AG 1999
In a corporate enterprise, goods movements do not refer exclusively to goods receipts and goods
issues from or to an external business partner (vendor, customer). Due to the different organization
methods that may exist (for example, you have a de-centralized warehouse in your company) or the
sales policies of the company, internal stock transfers within the company can occasionally be
required.
In such cases, the goods exchange takes place between 2 plants or between two storage locations
within a plant. However, the stock transfer “storage location to storage location” will not be dealt
with in this course.
The plants involved in the stock transfer can also belong to two different companies within the
enterprise (cross-company stock transfer).
You have different methods available for processing a stock transfer between 2 plants. Some of these
methods use SD and LE functions in addition to the MM component. In the units on stock transfers,
we use the Logistics Execution component, and the stock transfer process is initiated by a purchase
order.
orders Subcontractor
(vendor)
delivers delivers
Plant
Company
SAP AG 1999
In subcontracting, the vendors receive materials (components) from which they manufacture finished
products.
This process is initiated by a purchase order for a finished product at the subcontracting company.
Then the components are supplied to the vendor.
The components that are delivered to the vendor are managed as “stock of material provided to
vendor”.
As soon as the vendor has produced the ordered material or refined it in some way, he/she returns it
to the ordering plant. At this point, the consumption of the components is usually posted.
Contents:
Creating a Sales Order
Creating a purchase order
Posting goods receipt
Posting invoice receipt for purchase order
Invoicing the sales order
SAP AG 1999
SAP AG 1999
delivers Customer
delivers
Customer Vendor Plant
Sales Sales
organization organization
Company 1
Company code
delivers delivers
orders delivers
orders delivers
Plant
SAP AG 1999
delivers
Customer 2004 Vendor 1010
2 3 4
5
1 Sales
organization
1000
Company 1000
SAP AG 1999
The purchase order of the customer is first entered in a sales organization of your company as a sales
order (application SD). A purchase requisition is automatically created from the order.
Afterwards, a purchase order for the external vendor is created in the MM purchasing application.
This order states that all goods are to be delivered directly to the customer.
As soon as the vendor confirms to you that the outbound delivery is complete, you post a goods
receipt so that this information is recorded in the system.
In the application MM Invoice Verification, you enter the invoice issued by the vendor to your
company for the goods delivered by the vendor to the customer.
Finally, you generate the SD billing activities to your customer.
delivers
Customer 2004 Vendor 1010
2 3 4
5
1 Sales
organization
1000
Company 1000
SAP AG 1999
Third-party order processing is initiated when you enter a sales order with a third-party item. Either
the order consists partially of third-party items or all the items in the order are third-party items.
Depending on how your system is configured in Customizing, third-party item categories can be
determined automatically by the system for the respective materials. ("Automatic third-party order
processing")
However, so that you can process materials that you normally deliver yourself as third-party items,
you can manually change a standard item into a third-party item by entering the respective item
category. ("Manual third-party order processing")
During automatic scheduling of third-party order items, the system takes into consideration the
planned delivery time from the material master, that is, the time the vendor requires to deliver the
goods. The purchasing department processing time, that is, the time the purchasing department
requires to process the third-party orders, is also included. The purchasing department processing
time is assigned to the plant in Customizing.
Order
Customer
Item
category TAS
Purchase
requisition
Vendor
Release Item category S Source
procedure AcctAssgmtCat. X determination
SAP AG 1999
In standard Customizing for sales (IMG), the system is configured so that a purchase requisition is
automatically created in purchasing when you save the sales order to the database.
Here, a separate purchase requisition item is automatically created for each third-party item. While
creating the purchase requisition, the system automatically determines a vendor for each requisition
item. If a third-party order item has more than one schedule line, the system creates a purchase
requisition item for each such line.
You can branch to the display of created purchase requisition items from the schedule line of the
sales order.
In the sales order, you can make subsequent changes to the quantity and delivery date for a third-
party order item. The changes you make are automatically copied into the respective purchase
requisition, provided the release status of the purchase requisition still allows this.
The purchase requisition has the account assignment for the sales order. This account assignment
cannot be changed in the purchase requisition.
Order
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The sales document consists of the document header and an arbitrary number of items. Each item can
have any number of schedule lines. At the schedule line level you find the procurement and the
distribution data.
The sales documents are customized for header, item, and schedule-line settings, in accordance with
the respective structure. The control instruments involved include the sales document type, the item
category, and the schedule line category.
You create third-party order items by creating a standard sales order (for example, sales document
type OR for a standard order).
Item category TAS is defined for third-party order items in standard Customizing. Also, the system
is configured so that schedule line category CS ("third-party") is determined for third-party order
items.
The sales order can consist of further third-party order items or items with other item categories.
Order Purchase
requisition
Save order
SAP AG 1999
In the standard system, schedule line category CS (“third-party”) is used to process third-party order
items.
Since third-party order items are not supplied by your company, you do not have to post the goods
issue in your system. Therefore, the schedule line category CS in Customizing does not contain a
movement type and is not set as being relevant for delivery.
In the standard system version, a purchase requisition is automatically created for third-party items
from the sales order as soon as the sales order is saved to the database. Also, the Customizing
settings for schedule line category CS contain the specification of a document type for the purchase
requisition, as well as the item category (with internal character representation) and the account
assignment category.
delivers
Customer 2004 Vendor 1010
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
SAP AG 1999
In third-party order processing, purchase orders are created from purchase requisitions in the normal
way.
When a purchase order is created, the system automatically adopts the address of the goods recipient
from the respective sales order as the delivery address.
You can enter order texts in the sales order for each third-party order item. These are automatically
copied into the purchase order when it is created.
The number of the created purchase order appears in the document flow for the sales order. From
there you can also branch to the purchase order.
Third-party order items in purchase orders are marked with item category S.
Third-party items must have an account assignment; in the standard version, account assignment
category X (“all auxiliary account assignments”) is used.
delivers
Customer 2004 Vendor 1010
2 3 4
5
1 Sales
organization
1000
Company 1000
SAP AG 1999
You can set the business process in such a way that the entry of the vendor invoice receipt is only
possible if a goods receipt for the purchase order was entered in the system beforehand.
You post the goods receipt only when the vendor reports to you that they have performed the
delivery. Alternatively, you can have the receipt of the delivery confirmed by the customer.
To be able to use this monitoring feature, set the GR indicator in the purchase order item or perform
the required settings in Customizing.
Since no goods flow takes place in your company, the goods receipt posting serves solely as a value
update for your system.
delivers
Vendor 1010
Customer 2004
bills orders reports
delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
SAP AG 1999
You enter an invoice receipt for the respective invoice from the vendor using the Logistics invoice
verification module.
If goods receipt is provided for in your business process for third-party order processing, you can
only post the invoice receipt after you have entered the goods receipt into the system.
delivers
Vendor 1010
Customer 2004
bills orders reports
delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
SAP AG 1999
As soon as the invoice receipt is recorded in the system, the customer is billed.
The sales order is then contained in the billing due list and is processed in the next multiple
processing run for billing documents.
The billing date relevant for this due list corresponds to the posting date of the invoice receipt
document.
Since no outbound delivery exists in the system for third-party order items, you set the indicator for
order-related billing during selection of the documents to be billed.
Invoice Invoice
receipt to customer
M-03 9 PC M-03 9 PC
SAP AG 1999
If the billing-relevance indicator in Customizing is set to F ("relevant for order-related billing: Status
according to IR quantity"), the system includes the order in the billing due list only when the vendor
invoice has been received and entered into the system.
In the copying control for sales document to billing document, the standard setting for the third-party
order item category defines that the quantity from the invoice receipt document, not the order
quantity, for example, is copied into the billing document (Billing quantity field).
SAP AG 1999
You and a vendor have agreed that the vendor will deliver a certain
material directly to your customer when you receive a purchase order for
it. This arrangement is particularly useful for this material because you
only receive orders for it occasionally and you would normally need a
delivery to ship it. So essentially, this arrangement saves you a step.
1-1 A material master record already exists for the material (T-AUC##) described
in the above enterprise scenario. The same applies for the vendor 1010. Since
you have occasionally obtained this material from this vendor before, a
purchasing info record also exists in the system.
Display the purchasing info record and use it to complete the following list:
Vendor: 1010
Material: T-AUC##
Purchasing organization: 1000
Plant: 12##
1-2 Now maintain vendor 1010 in the source list for material T-AUC## in plant 12##
as the preferred source of supply. The entry should be valid from today until the
end of the year.
One of your customers orders the material for which you have set up
third-party order processing.
A purchase requisition is to be generated automatically from the sales
order. The purchase requisition can later be easily changed to a third-
party purchase order.
2-1 You receive the following purchase order for the material that is to be shipped
directly from your vendor to the customer:
Purchase order
Customer: 2004
Purchase order number: ##-tp
Requested delivery date: current date + 1 workday
Material Quantity
T-AUC## 10 PC
Order type: OR
2-1-2 Can the material be delivered by the requested delivery date? List the
reason(s) for the system response.
_________________________________________________________
__________________________________
2-1-5 What is the net price of the order item?
_________________________
2-1-6 Save the sales order.
Write down the document number.
2-2 Check to make sure that a purchase requisition was automatically generated from
the sales order.
Write down the document number.
_____________________
_____________________
2-4 In order for third-party order processing to be triggered, the order must include item
categories and schedule line categories that correspond to third-party order
processing.
2-4-1 Which item category has the system determined in the sales order?
________________________________
2-4-2 Which entry in the item category assignment was responsible for the
determination of this item category?
____________________________________________________________
____________________________________________________________
You should only display the Customizing settings for item and
schedule line categories, and for their determination rules. Do not
make any changes.
*2-5 Optional:
The schedule line category settings result in automatic creation of a purchase
requisition.
2-5-1 What schedule line category is determined in the sales order?
________________________________
2-5-2 What document type is used for the purchase requisition (resulting from the
settings in the schedule line category)?
________________________________
________________________________
____________________________________________________________
2-5-4 Which entry in schedule line category assignment defines the schedule line
category in your sales order?
The next step is to have your vendor deliver the goods directly to the
customer, who ordered them through you.
3-1 For the next step, imagine you are the employee responsible for plant 12## in the
purchasing department.
3-1-1 Create a purchase order for the purchase requisition that was
generated in the previous exercises by accessing the purchase
requisition assignment list.
3-3 How can you display the delivery address directly from the purchase order
document display?
__________________________________________________________________
__________________________________________________________________
You have agreed with the vendor that, in the case of third-party order
processing with your company, he will inform you when he has made the
delivery to your customer.
4-1 As soon as your vendor informs purchasing that outbound delivery of the
goods listed in the purchase order is complete, the goods receipt can be posted.
Post the goods receipt for the purchase order.
*4-2 Optional:
Display the accounting document for goods receipt.
4-2-1 Which accounts were involved in posting?
______________________________________________
______________________________________________
4-2-2 Explain how the system arrived at this amount.
______________________________________
The vendor sends you an invoice for the goods that you have ordered
from him and that he has delivered to your customer.
INVOICE
Sunny Electronics GmbH (vendor 1010)
Invoice date: (current date)
Invoice 950031##
Invoice for your purchase order 4500....
Invoice: _____________________________
______________________________________________
______________________________________________
Once your company has received the invoice for the goods that were
delivered directly to your customer by your vendor, you can send your
own invoice to the customer. Under normal circumstances, you can use
the multiple processing run for billing documents for this step. In some
cases, you may need to create invoices individually.
6-1 Create the invoice for your customer with detailed reference to the sales order. As
an exception, use the individual billing procedure.
6-1-1 What is the net value?
____________________________
Where have you seen this value before in this business process?
_________________________________________________
6-2 You have created the customer invoice on the basis of the sales order.
6-2-1 Explain why this is the necessary course of action for third-party order
processing.
____________________________________________________________
6-2-2 Where can you make the settings in Customizing that define whether a
business transaction is to be billed based on the sales order or the delivery?
List the menu path you used to get to this part of Customizing.
____________________________________________________________
(C) SAP AG LO925 2-29
6-2-3 What would change if you chose “B” as the appropriate indicator?
____________________________________________________________
____________________________________________________________
Vendor: 1010
Material: T-AUC##
Purchasing organization: 1000
Plant: 12##
Leave the info category set to Standard.
Choose Purch. org. data 1 on the Display Info Record screen. Net price: 1240 UNI
Material: T-AUC##
Plant: 12##
Material: T-AUC##
Choose Sales:Sales Org. Data 2.
Sales organization: 1000
Distribution channel: 12
Note that you do not have to enter BANS in the field General item category group.
2-1
2-1-1 Logistics Sales and Distribution Sales Order Create
Order type: OR
Document type: NB
Vendor: 1010
This is made possible by the available alternative item categories for manual
entry stored in the item category assignment.
The appropriate line in the item category assignment is the following:
Sales document type: OR
Item category group: NORM
Item category (DfItC field): TAN
*2-5 Optional:
2-5-1 Logistics Sales and Distribution Sales Order Display
Select the item.
Choose Schedule lines for item.
Yes, you found out earlier that the purchase requisition generated in your
example has document type NB.
2-5-3 In the definition of schedule line category CS, no movement type has been
stored.
This would not make sense, since the issue does not originate from your
stocks in third-party order processing. Therefore, you will create neither an
outbound delivery nor a goods issue, so the system does not need the
movement type.
Since you did not specify the MRP type in the schedule line category
assignment for item category TAS, you do not need to check the MRP type
in the material master of material T-AUC##.
3-1
3-1-1 Logistics Materials Management Purchasing Purchase Order
Create Via Requisition Assignment List
Position the cursor on the bottom line and select Process assignment.
3-1-2 The data given in the exercise text has already been entered in the Process
assignment: Create PO screen.
Then select Enter.
In the left side of the screen (document overview), select the purchase
requisition you have created. Then copy it to the current purchase order in
the right side of the screen, using the Adopt button. Alternatively, you can
drag the purchase requisition onto the shopping basket symbol, using the
left mouse buttton.
3-1-3 Choose Save.
or
*4-2 Optional:
Logistics Materials Management Inventory Management Material
document Display
*5-2 Optional:
Logistics Materials Management Logistics Invoice Verification
Further Processing Display Invoice Document
Document: Document number of the sales order you wrote down previously
Select Execute.
6-1-1 Net value: 17300 UNI
Yes, because it would not be a good idea to copy the amount from your
purchase order that you sent to the vendor since otherwise you would not
earn anything with this business procedure!
6-1-2 Choose Save.
6-2
6-2-1 During third-party order processing, your vendor sends the goods directly to
your customer. Therefore, you did not create an outbound delivery for the
sales order with third-party item. Delivery-related billing is thus not
possible.
6-2-2 IMG: Sales and Distribution Sales Sales Documents Sales
Document Item Define Item Categories
Select Details for item category TAS.
Contents:
Creating a Sales Order
Executing Shipping Activities
Creating an Invoice for the End Customer
Creating an Internal Invoice
Posting Invoice Receipt
SAP AG 1999
SAP AG 1999
SAP AG 1999
delivers delivers
Customer Vendor Customer Plant
Sales Sales
organization organization
Company 1
Company code
delivers delivers
orders delivers
orders delivers
Plant
SAP AG 1999
delivers 2
Customer 2500 Plant 1200
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
SAP AG 1999
When the goods in the purchase order have been ordered by the customer, you enter a sales order in
sales organization 2200. This belongs to the so-called ordering company code (company 2200).
The plant from which the goods to be delivered are taken is referred to as the delivering company
code (company 1000).
As soon as the order is due for delivery, the delivering company creates the outbound delivery. The
goods issue is posted at the end of the shipping activity, and the goods are delivered to the customer.
Afterwards, the invoice for the end customer is created in sales organization 2200, that is, in the
ordering company code.
In order for inter-company billing to take place between the two companies involoved, the delivering
company issues an internal invoice, through ist sales organization 1000, to the ordering company.
Depending on the agreement between the two connected companies, the entry of receipt of invoice
may take place automaticaly. If not, the received invoice is entered manually in the financial
accounting system of the ordering company.
delivers 2
Customer 2500 Plant 1200
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
SAP AG 1999
The process for cross-company sales processing is initated when standard sales order is created.
In a sales order, the system determines the delivering plant for each order item, or this data is entered
manually by the processor.
The system can propose the delivering plant from the following master records (sequence according
to priority):
Customer-material info record
Customer master for goods recipient
Material master
If the delivering plant in the order item belongs to a company that is not in the sales organization
creating the order, the system recognizes that this is a cross-company sales activity.
Plant 1000
Plant 1100
Sales
organization
2200
Plant 1300
When you create the order, the system checks whether the combination of sales organization,
distribution channel and delivering plant is allowed.
Depending on the sales organization, the plants allowed for sales activities are defined in connection
with the distribution channel. Here it is possible for a sales organization to sell goods from several
plants. Conversely, a plant can be assigned to several sales organizations.
In Customizing, a plant is uniquely assigned to one company code. A sales organization, too, belongs
to exactly one company code.
Sales organizations and plants assigned to one another do not have to belong to the same company
code. Otherwise, cross-company sales activities would not be possible.
The distribution channel provides a further means of differentiation of plants in a sales organization
from a sales viewpoint. A distribution channel, for example, can be allowed for certain plants within
a sales organization, but not for others.
Item 10
Material: M-01 Quantity: 1 PC
Net value: 2000 UNI
Price for
PR00 Price 2000 UNI customer
(Revenue)
Price for
Price
supplying plant
PI01 intercompany 1500 UNI (costs)
billing [statistical]
Profit
500 UNI
margin
SAP AG 1999
In the order itself, the system automatically executes pricing, whereby the stored condition master
data is evaluated.
Condition type PR00 specifies the price that is billed to the customer. This price appears, possibly
with surcharges and discounts, in the invoice for the customer, provided no change has taken place in
the meantime. This price, therefore, stands for the revenue.
For information purposes, instead of the moving average price for the material you have the price
that the ordering company has to pay to the delivering company (price for intercompany billing). It
will be relevant for intercompany billing and represents the costs of the ordering company.
To represent the internal price, there are 2 condition types in the standard system:
- PI01 (quantity-dependent)
- PI02 (percentage)
- Condition records are entered in connection with the sales organization entering the order, the
delivering plant, and, if necessary, the material.
The amount for intercompany billing appears on the condition screen of the sales order as a
statistical value (it is only displayed, and has no effect on the pricing results for the customer).
delivers
Customer 2500 2 Plant 1200
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
SAP AG 1999
The shipping activity is initiated as soon as the outbound delivery has been created. This can take
place with the help of the standard collective processing function for delivery of orders due,or with
explicit reference to the sales order.
As a rule, the outbound delivery is created as soon as the first workstep in the shipping process is
imminent.
The individual worksteps in the shipping process (picking, packing, printing the delivery note, and so
on) are executed on the basis of the outbound delivery and also documented in the delivery.
The outbound delivery is created and the shipping activities executed in the shipping point specified
in the order. This shipping point is assigned in Customizing to the delivering plant.
(optional:) Pack
SAP AG 1999
For picking purposes, a transfer order with reference to the outbound delivery is created. The list
printout of the transfer order is given to the picker so that he/she can pick the required goods from
the warehouse.
Depending on the settings in Customizing, the pick may have to be confirmed (confirmation
requirement). During this confirmation of the transfer order, you can enter possible quantitiy
differences.
If the goods are to be packed in shipping into larger boxes or placed onto pallets, for example, the
appropriate information can be stored in the outbound delivery.
Using the output control and output processing functions, you can print out delivery notes.
The goods issue posting is the closing activity in the shipping process. Here a quantity and value
update of the stock takes place.
delivers
Customer 2500 2 Plant 1200
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
SAP AG 1999
The invoice for the end customer is created in the sales organization that created the sales order.
Invoicing includes a reference to the outbound delivery. Here it is not of importance that the
outbound delivery was taken from another company code.
With the goods issue posting, the outbound delivery is automatically entered into the billing due list.
The invoice is created either right away, or in a billing collective processing run.
The goods issue date of the outbound delivery is the relevant billing date for the billing due list.
Invoice 90005623
Doc.
Doc.type of order Billing type F2
SAP AG 1999
The invoice for the end customer is a “normal” invoice. In the standard version, you can use billing
types F2 or F1, whereby in the case of standard orders (sales document type OR) the system
automatically used billing type F2 as the default type.
In contrast to an internal invoice, the payer as well as the sales units and the company code are taken
directly from the order.
In the order, the company code was derived from the sales organization that entered the order. This
is, therefore, called the ordering company.
delivers
Customer 2500 2 Plant 1200
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
SAP AG 1999
For intercompany billing for the services rendered to the customer in sales organization 2200, the
delivering company issues an invoice to the ordering company.
The internal invoice is created by sales organization 1000. In customizing, you assign the sales
organization responsible for inter-company billing to the delivering point.
Likewise, in the case of an invoice to the end customer, the billing has a reference to the outbound
delivery. You set the indicator “intercompany billing” during the selection of the documents for
billing.
The outbound delivery is only entered in the billing due list of the respective sales organization of
the delivery company when the invoice is issued to the end customer.
Doc.
Doc.type of order Billing type IV
Sales organization
Payer 22000
in order
SAP AG 1999
In the standard version, billing type IV is used for the internal invoice. This is automatically
proposed on the basis of the order.
The payer of the internal invoice is usually the ordering company, which is like a customer with
respect to the delivering company. For this you create a customer master record in the delivering
company in which you enter the data relevant for billing. Afterwards, you assign the respective
customer number to the sales organization of the ordering company in Customizing (field "Customer
intercompany").
The company code in the internal invoice comes from the company code to which the delivering
plant belongs. It is therefore the same as the delivering company.
In Customizing, you assign the sales area required for creating the internal invoice to the delivering
plant (fields “Sales organization IV”, “Distribution channel IV”, “Division IV”). Make sure that the
same settings are also used for stock transfer activities.
SAP AG 1999
The sales organization in the company code in which the sales order is generated takes on the role of
the payer for intercompany billing.
A customer master record must exist for the payer, in order that an intercompany invoice can be
generated. This is assigned to the sales organization in the company code which delivers the order.
A minimum of information must be contained in the customer master record. This information
includes data that is relevant for the role of the payer (for example, address, reconciliation account).
Also, you should store here the currency in which the intercompany billing is to take place.
The company code data is created in the delivering company.
The sales area data is entered in connection with the sales area for intercompany billing (sales
organization IV, distribution channel IV, division IV).
Price By reference to
IV01 intercompany 1500 UNI PI01
billing
Profit
200 UNI
margin
SAP AG 1999
Condition type PR00 in the internal invoice displays the amount billed to the end customer. It serves
as an information item and is inactive.
The active price for internal billing is given by condition type IV01. It is determined by reference to
condition type PI01 and therefore is the value that the delivering company has to receive from the
ordering company.
For the delivering company, condition type IV01 stands for the revenue. The costs are given by the
moving average price of the material.
Sales
Sales organization
organization
Document
Document Distribution
Distribution channel
channel Customer
Customer
procedure
procedure Division
Division procedure
procedure
Calculation schema
ICAA01
PR00 Price
IV01 Price intercompany billing
VPRS Cost
SAP AG 1999
In the internal invoice, the system uses a pricing procedure (standard version ICAA01) different
from that in the sales order and the customer billing documents. Utilizing this, condition type PI01 is
replaced by condition type IV01.
IV01, in contrast to PI01, is not marked as a statistical value.
Through the reference to condition type PI01 defined in the definition of condition type IV01, you
finally get the same condition values for both condition types. Here condition PI01 stands for the
costs of the ordering company, and IV01 for the revenue of the delivering company. The use of
different condition types for intercompany billing is necessary to ensure that data is transmitted
correctly to the financial statement (component CO-PA).
The determination of the pricing procedure in the internal invoice takes place in connection with the
document procedure defined in the billing type, the sales area, and the customer pricing procedure
stored in the customer master.
With the sales area you refer to the sales area assigned to the delivering plant.
delivers
Customer 2500 2 Plant 1200
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
SAP AG 1999
The invoice issued by the delivering company (company code) to the ordering company must be
entered in the financial accounting of the ordering company code in order for payment to take place.
This can be done manually.
Cross-company sales processing can be set up so that the creation of an internal invoice in the
delivering company automatically generates the creation of an incoming invoice in the ordering
company.
It is possible, for example, to have an agreement between the two parties involved that for invoices
issued by sales organization 1000 to sales organization 2200 there is immediately a posting to the
vendor account in the ordering company (company code 2200).
Invoice
RD00
Intercompany Manual
billing Print-out invoice entry
90005734
Creditor 10000
RD04
1500
Automatic
invoice receipt
SAP AG 1999
If the ordering company enters the incoming invoice manually, the delivering company can print out
an invoice document with the help of output type RD00, which is then sent to the payer.
If automatic invoice receipt has been agreed upon, you must use the SD output control functions to
ensure that output type RD04 is found in internal billing. In the R/3 System, output determination
procedure V40000, which includes this output type, is assigned to billing type IV.
The automatic posting to the vendor account is initiated when output type RD04 is processed. The
technical conversion is carried out using the EDI technology. The EDI output category INVOIC is
used in the F1 variant. For specifications on the required system settings (partner profiles, and so on),
refer to the Implementation Guide for Intercompany Billing.
So that the payable can be posted in financial accounting of the ordering company, the delivering
company must be created as a vendor (vendor 10000).
SAP AG 1999
SAP AG 1999
SAP AG 1999
1-1 Assign a sales area for intercompany billing to the delivering plant 12##.
1-2 Now, authorize the French sales organization to at least sell goods from plant 12##
to end customers:
1-2-1 Which menu path should you follow to make the appropriate setting in
Customizing?
____________________________________________________________
____________________________________________________________
1-2-2 If it has not been done, make the setting for the combination of sales
organization 2200 and distribution channel 10.
Material: T-AUD##
Sales organization: 2200
Distribution channel : 10
*1-4 Optional:
What do you have to do so that the system does not determine another delivering
plant for material T-AUD## in the customer order item?
1. ________________________________________________________________
2. ________________________________________________________________
You receive a purchase order for a material from your customer, which
will be delivered directly to the customer by the German branch. In
contrast to the purchase order of a "regular" material, the process of
cross-company code sales will be triggered automatically.
2-1 You receive a purchase order for a material that is to be sent to your customer
directly from the German branch.
Purchase order
Ship to Customer: 2500
PO number: ##-ic
Requested delivery date: current date + 3 workdays
Material Quantity
T-AUD## 10 PC
Order type: OR
Sales organization: 2200
Distribution channel: 10
Division: 00
____________________________
____________________________________
1. _______________________________________________
2. _______________________________________________
1. _______________
2. _______________
______________
____________________________________________________________
3-1 To carry out the shipping activities, you play the part of an employee at shipping
point X0## related to plant 12##. Use the same standard functions for collective
processing that you use for sales activities within the same company code in
shipping.
3-1-1 Supply the order created above for purchase order ##-ic by processing the
delivery due list for sales and purchase orders for shipping point X0##.
Note: If your order does not appear in the worklist, set the delivery creation
date to a later date in the selection screen.
3-1-3 When the picking process is complete, you can post the goods issue to the
outbound delivery you created earlier. The settings have been made in such
a way that it is not necessary to confirm picking in advance (no obligation to
confirm).
To do this, use the collective processing function.
Once the goods issue for the outbound delivery to your French customer
has been posted in the German branch, you can create the invoice to the
customer.
4-1 Create the billing document – this time without using collective processing - with
explicit reference to the outbound delivery you created above. You are playing the
part of an employee in the French sales organization.
4-1-1 To which company code and to which sales organization has the invoice
been assigned?
____________________________________________________________
4-1-2 Save the billing document and write down the document number.
5-1 Create the billing document – this time without using collective processing - with
explicit reference to the outbound delivery you created above. You are playing the
part of an employee in the German sales organization.
5-1-1 To which company code has the internal invoice been assigned?
____________________________________________________________
__________________________________________________
5-1-2 Save the internal invoice and write down the document number.
Division: __________________
5-2-2 This sales area is used for intercompany billing. Which factor does this
depend on?
__________________________________
5-2-3 Where in Customizing does the appropriate assignment take place?
____________________________________________________________
This setting is essential for cross-company code processes. Who made this
setting?
__________________________________________
5-3 In the internal invoice, a business partner appears as a payer who has not been
involved in the business transaction up to this point.
5-3-1 Determine the payer of the internal invoice:
__________________________
5-3-2 Which factor does this payer depend on?
_______________________________________
5-3-3 Which menu path did you follow to find this setting in the system?
____________________________________________________________
____________________________________________________________
Division: _____________
5-4-2 Which currency is used to bill the customer according to his master data and
which terms of payment have been defined?
Currency: __________________
5-5 Display the condition screen for the item in the internal invoice.
5-5-1 Which condition type reflects the price the receiving company has to pay to
the delivering company?
______________
*5-5-2 Optional:
To which price does condition type PR00 in the internal invoice refer?
____________________________________________________________
Does this amount assigned to this condition type contribute to the net value?
_____________________
*5-6 Optional:
5-6-1 Which billing document type does the internal invoice have?
_______________
5-6-2 In which Customizing object has the proposed billing type for intercompany
billing been stored?
______________________________________
The two companies involved have agreed that the invoices from the
German sales organization to the French sales organization are
automatically posted as invoice receipts in the accounting department of
the French company.
This means that you do not have to enter the invoice manually.
6-1 Having made the appropriate setting, automatic posting to the vendor’s account can
take place directly when you save the internal invoice. However, if it is not
necessary for the posting to take place immediately, it may not be a good idea since
it may cause an unnecessary system load. In our case, it has therefore been decided
to initiate automatic credit-side posting for the existing internal invoices
collectively. This could, for example, be carried out using a background program.
6-1-1 Check the internal invoice to see if the system determined output type RD04
and if the output has already been processed.
____________________________________________________________
Note:
Process the output only for the internal invoice you created!
1-2
1-2-1 IMG: Enterprise structure Assignment Sales and distribution
Assign sales organization – distribution channel - plant
1-2-2 Position the cursor on the line with sales organization 2200 and distribution
channel 10 and choose Assign.
Select plant 12##.
Material: T-AUD##
Choose Sales:Sales Org. Data 1.
Sales organization: 2200
Distribution channel: 10
2. The customer master for sales organization 2200 and distribution channel 10
must not contain a deviating delivering plant.
During the determination of the supplying plant in the order item, the system
accesses the master data in the following sequence:
1. Customer material info
2. Customer master
3. Material master
Order type: OR
Sales organization: 2200
Distribution channel: 10
Division: 00
2-1-1 Scroll over, if necessary, until you reach the right-hand side in the item in
the Sales overview screen.
Plant: 12##
Since there is no customer material info record and since the supplying plant
has not been maintained in the customer master, the system determined the
plant on the basis of the material master entry you made above.
2-1-2 1. Sales organization in which the customer order is stored
2. Supplying plant
2-1-3 1. IMG: Enterprise Structure Assignment Sales and Distribution
Assign sales organization to company code
*2-2-2 Optional:
Select Condition Details for condition type PI01:
Since the condition is marked as Statistical, it does not affect the net value.
This is appropriate since the price for intercompany billing should not have
the effect that the amount to be paid by the customer is increased or
decreased.
3-1
3-1-1 Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Create Collective Processing of Documents Due
for Delivery Sales orders and Purchase Orders
If your order does not appear in the worklist, set the delivery creation date to
a later date in the selection screen.
In the list, select the line which refers to the sales order your created above.
Choose Create delivery in background.
Then choose Log for Delivery creation, select the entry and choose
Documents, in order to determine the outbound deliver number.
3-1-2 Logistics Sales and Distribution Shipping and Transportation
Picking Create Transfer Order Via Outb. Delivery Monitor
Select the outbound delivery you created in the list of daily workload for
picking, and choose Create TO in background.
Select the delivery you created above in the goods issue for outbound
deliveries list and then select Post goods issue.
Document: Document number of the outbound delivery you wrote down earlier
Choose Execute.
4-1-1 Choose Display Doc. Header details.
Since this is the invoice for the end customer, it is assigned to the company
code in which the order has been entered (that is, the receiving company).
4-1-2 Choose Save.
Document: Document number of the outbound delivery you wrote down earlier
Choose Execute.
5-1-1 Choose Display Doc. Header details.
The supplying company creates the internal invoice which is directed to the
receiving company. Therefore, the company code that is displayed is that of
the supplying company.
The supplying company corresponds to the company code that has been
assigned to the supplying plant.
5-1-2 Choose Save.
You have maintained the entries for plant 12## yourself in a preceding
exercise.
5-3
5-3-1 GoTo Header Header Partners
Payer in the internal invoice: 22000
5-3-2 The payer in the internal invoice generally corresponds to the receiving
company, that is, the company in which the customer order has been
created.
It depends on the sales organization that enters the order.
(C) SAP AG LO925 3-42
5-3-3 IMG: Sales and Distribution Billing Intercompany Billing
Define Internal Customer Number by Sales Organization
Customer: 22000
5-4-1 The system accesses the customer master for the payer with the supplying
company code and the sales area which is assigned to the delivering plant.
Currency: UNI
Terms of payment: ZB01
Billing document: Document number of the internal invoice you wrote down
earlier
Select the item in the internal invoice and select Item price conditions.
5-5-1 Condition type: IV01
The given condition value corresponds to the net value of the internal
invoice.
*5-5-2 Optional:
Condition type PR00 refers to the price relevant for the customer.
The condition value of PR00 does not contribute to the net value since the
condition is inactive due to the following price.
6-1
6-1-1 Logistics Sales and Distribution Billing Billing Document
Display
Go To Header Output
The output type RD04 was automatically created by the system on account
of the existing settings in output determination, and has not yet been
processed.
6-1-2 Logistics Sales and Distribution Billing Output Issue Billing
Documents
Contents:
Creating a Stock Transport Order
Creating a Replenishment Delivery
Executing Picking and Posting Goods Issue
SAP AG 1999
Sales Sales
organization organization
Company 1
Company code
delivers delivers
orders delivers
orders delivers
Plant
SAP AG 1999
Through Through
stock transfer posting stock transport order
Intra-company Cross-company
SAP AG 1999
The stock transfer between 2 plants can be executed using different procedures.
The procedures in which a stock transfer posting is executed solely use the MM Inventory
Management component. In contrast to these, you have procedures where the stock transfer process
is initiated automatically when a purchase order is entered in the MM Purchasing component (stock
transport order).
If you are working with the stock transfer procedure with LE outbound delivery, this has the
advantage that the shipping activities can also be processed with the R/3 System (picking, packing,
printing the delivery note, and so on).
If you wish to use R/3 shipping functions for stock transfer processing, use the procedure “For stock
transport order with LE outbound delivery” for intra-company activities and the procedure “For
stock transport order with LE outbound delivery and SD billing” for cross-company stock transfers.
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
SAP AG 1999
The process described in this unit uses the procedure for “stock transport order with LE outbound
delivery”, which is provided for intra-company stock transfers.
First we enter a stock transport order for goods for plant 1400, possibly also with reference to a
purchase requisition. In this order, plant 1400 orders goods from plant 1200. Within this stock
transfer procedure, plant 1400 is the receiving plant.
When the purchase order is due for shipment, you create an outbound delivery. You can have this
delivery packed or assign it to an outbound shipment.
As soon as the shipping procedure is finished, you post the goods issue. The goods are now
transferred from plant 1200 to plant 1400. Plant 1200 is termed as the delivering or supplying plant.
If, as in this case, you are using the one-step procedure, the goods receipt does not have to be posted
in the receiving plant when the goods arrive there.
Goods
receipt
Unrestricted- Unrestricted-
for
use stock Transit provided use
PO
from vendor stock
B B Goods issue B
B B C B B C B B C
A A
A
SAP AG 1999
In the two-step procedure for a stock transport order with shipping processing, a stock in transit is
created when the goods issue is posted from the sending plant. This enables you to monitor the
stocks that are being transferred. You can display the stocks in the stock overview for the material.
As soon as the goods arrive, the goods receipt is posted in the receiving plant. A transition takes
place - depending on your choice - to the unrestricted-use stock, to the blocked stock or to the stock
in quality inspection.
The stock in transit is evaluated, but not available. The stock is managed at the level of the receiving
plant.
The goods are withdrawn from the unrestricted-use stock.
SAP AG 1999
As of Release 4.0, there is a one-step procedure available -- in addition to the two-step procedure --
for stock transfer procedures with a stock transport order and shipping processing.
In the one-step procedure, no stock in transit is created. The stock is posted at the time of goods issue
directly into the unrestricted-use stock in the receiving plant. The goods receipt posting is not
required in the receiving plant.
The one-step procedure can be appropriate if the plants involved are not far away from each other, or
if the receiving plant does not have a technical link-up.
You define in Customizing whether you wish to work with the one-step or the two-step procedure.
The setting is made in connection with the delivering plant and the receiving plant.
If you are using the stock transfer posting as the stock transfer procedure, you also have the one-step
or the two-step procedure at your disposal.
As a rule, you can only post stock transfers in one step from one plant to another with unrestricted-
use stock that is posted from the delivering plant to the receiving plant's unrestricted-use stock.
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
SAP AG 1999
The stock transfer is initiated when you create a stock transport order with document type UB
(“stock transport order”). You enter the delivering plant as well as the receiving plant.
The system uses item category U ("stock transfer").
The items cannot be assigned to accounts if the goods are ordered for consumption and not for the
warehouse.
If the material in the receiving plant is not evaluated, it is not possible to enter an account
assignment. The goods can only be assigned for the warehouse.
If you are working with the one-step procedure, you must specify the stock location in the receiving
plant already in the purchase order.
Receiving Delivering
Plant Plant
Stock transport
order
Purchase
requisition Order type UB
Item category U
Acct.assgmt.cat. _
SAP AG 1999
The stock transport order is included in requirements planning both in the receiving as well as in the
delivering plant. Here the goods receipt in the receiving plant and the goods issue in the delivering
plant are preplanned.
The stock transfer activity can also be initiated by a purchase requisition or a stock transport
scheduling agreement.
The purchase requisition can be created in the user department or by requirements planning.
For the purchase requisition you use document type NB ("purchase requisition") and item category U
("stock transfer").
You use the stock transport scheduling agreement if stock transfers are to take place at regular
intervals, or if you wish to schedule the delivery deadlines of a stock transfer exactly.
In addition, you can set your Customizing to define whether an availability check is executed in the
delivering plant when a purchase order is created.
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
SAP AG 1999
To supply the materials ordered by plant 1400, an outbound delivery is first created. This is referred
to, in the case of stock transfer activity, as a „replenishment delivery".
Replenishment deliveries are created solely using the collective processing run for deliveries. In the
selection screen, you can extend your selection to include purchase orders.
The reference document of the replenishment delivery is the stock transport order.
The document flow of the outbound delivery shows the referenced purchase order.
The outbound delivery is created and processed in the shipping point responsible for the respective
stock transfer activity. This shipping point must be assigned in Customizing to the delivering plant.
Receiving plant
Delivering plant
SAP AG 1999
The ship-to party in the replenishment delivery stands for the receiving plant.
In order for the stock transfer procedure with LE outbound delivery to take place, a customer master
record must exist. The system derives the address as well as other information important for
shipping, such as the transportation zone and the shipping conditions, from this master record.
The master record is created in the sales area that corresponds to the organizational units, distribution
channel and division for intra-company billing. These sales organizations are assigned to the
delivering plant in Customizing and are valid for cross-company sales as well as for cross-company
stock transfers.
The company code data does not need to be entered as long as the respective plant is the receiving
plant for intra-company stock transfers only.
The customer number is then assigned to the receiving plant in Customizing.
Order type UB
Delivery type NL
Delivering plant 1200
Delivery type NL
SAP AG 1999
Since the replenishment delivery does not refer to a sales order, the system must determine important
information about the outbound delivery parameters using other means.
The delivery type to be used is derived from the document type of the stock transport order and the
delivering plant. Here you assign the delivery type NL („replenishment delivery") in Customizing.
If you do not assign a delivery type, stock transfer activities that are initiated by a stock transport
order are executed without outbound delivery (different stock transfer procedure).
The item category is derived from the item category search of the delivery, whereby the delivery
type, the item category group of the material, and perhaps also the item category of the higher level
item play a role here. Usage V serves as an internal indicator. In standard Customizing, item
category NLN is assigned.
With the item category, for example, you can customize how picking must take place.
The shipping point is determined in connection with the delivering plant, the shipping condition of
the customer master record belonging to the receiving plant, and the loading group of the material.
In the delivering plant, the shipping data (view „Sales & Distrib.: General/Plant data" in the material
master) and the accounting data for the material must be maintained.
The purchasing and accounting data from the material master are required for the receiving plant.
Also, sales area data of the sales organizational units for intercompang billing must be stored for the
material.
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
SAP AG 1999
The replenishment delivery is processed in the usual manner in shipping, that is, just like an
outbound delivery that was created with reference to a sales order.
Here you include the replenishment deliveries in your selection if you are using a special number
range for them.
You also post the goods issue in the LE Shipping application. There you refer to the replenishment
delivery.
In procedures that do not use shipping processing, you post the goods issue in MM Inventory
Management.
Supplying Receiving
Plant Plant
Goods issue
with reference to Unrestricted-use +
Unrestricted-use stock
stock - replenishment deliv.
Open order qty -
Material
Stock transport
document
order
Accounting
document Purch.order history
Material master
Purch.order qty
Stock value
(moving price)
SAP AG 1999
During the goods issue posting in MM Inventory Management, the system creates a material
document. This means that the quantity is deducted in the delivering plant. At the same time, the
quantity is posted to the unrestricted-use stock of the receiving plant if you are using the one-step
procedure. The order stock is then reduced by the stock putaway.
However, if you are working with the two-step procedure, the system creates a stock in transit in the
receiving plant. At the time of goods receipt, this stock is reduced again. For technical reasons, this
movement of stock in transit appears also in the material document for the one-step procedure.
If the plants belong to different company codes, an accounting document is created parallel to the
material document.
The stock transfer is evaluated with the valuation price of the material in the delivering plant. As a
result, there can be a price change in the receiving plant.
A purchase order history record is automatically created in purchasing for the replenishment delivery
as well as for the closing goods issue posting, as in this case. In this way, the receiving and the
delivering plants can follow up the actual stock transfer procedure.
In the two-step procedure, the process is closed by a goods receipt posting. Here, too, a purchase
order history record is automatically created.
Intercompany Cross-company
One-step
647 645
procedure
Two-step
641 643
procedure
SAP AG 1999
The overview shows which movement types are used in the standard version for the individual stock
transfer procedures with LE outbound delivery.
So that you can post the goods issue from the outbound delivery, the respective movement types for
one-step and two-step procedures must be assigned to schedule line category NN (for intercompany
stock transfers) and to schedule line category NC (for cross-company stock transfers).
During the stock transfer procedure, the system determines the schedule line category using the item
category in the replenishment delivery and the MRP type in the material master.
1-1 Your company decides to introduce intra-company code stock transfers with stock
transport orders and to use the LE outbound delivery for the execution of the
delivery process.
1-1-1 Where in Customizing can you make the setting for creation of an LE
outbound delivery for stock transfers via stock transport order?
____________________________________________________________
____________________________________________________________
_________________________________
1-2 In addition, make the appropriate settings so that the system uses the one-step
procedure for stock transfers with supplying plant 12## and receiving plant 14##.
1-3 For the stock transfer, the receiving plant is the ship-to party. To do this, a customer
master record is necessary. During the stock transfer process, the system copies
various shipping data, such as the address of the ship-to party, from the
corresponding customer master data.
Create the customer master record which represents plant 14##.
Please note that you do not necessarily have to enter company code data
to ensure that the intra-company stock transfer process works.
Reference
Customer: 14000
Sales organization: 1000
Distribution channel: 12
Division: 00
______________________________________
(C) SAP AG LO925 4-22
Exercises
3-1 To carry out the shipping activities, you play the part of an employee at shipping
point X0## related to plant 12##. Use the collective processing function to create
the replenishment delivery.
3-1-1 Supply the stock transport order created above by processing the deliveries
due list for shipping point X0##.
_____________________________
3-1-3 To which address will the replenishment delivery be sent?
___________________________________________
___________________________________________
3-2 On the basis of which assignment does the system determine the ship-to party in the
replenishment delivery?
__________________________________________________________________
1. __________________________
2. __________________________
3-3-2 Find the setting in the system.
____________________________________________________________
4-1 Initiate picking by creating a transfer order for the replenishment delivery you
created earlier.
Depending on the menu path you use to create the transfer order, you
may have to enter the warehouse number (012).
4-2 Post the goods issue for the above replenishment delivery using the one-step
procedure or collective processing.
______________________________________________________
4-5 In the purchasing department of the receiving plant, there is an inquiry on the
progress of the stock transfer procedure.
Display the purchase order history.
1-1
1-1-1 IMG: Materials Management Invoice Verification Purchasing
Purchase Order Set Up Stock Transport Order
Select Assign delivery type/checking.
Sales area
Sales organization: 1000
Distribution channel: 12
Division: 00
The System uses the item category “stock transfer”. The system will not accept a
different item category.
Choose Save.
Material: T-AUE##
Delete the default entries for Plant and Storage location.
Choose Execute.
2-2-1 Plant 12##: 2000 M
Plant 14##:50 M
2-2-2 Double-click on the line for plant 12##.
The quantity released by stock transport order in plant 12## is listed under
the StckTrsptOrderRel stock type:- 300 M
3-1
3-1-1 Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Create Collective Processing of Documents Due
for Delivery Sales Orders and Purchase Orders
In the list, select the line which refers to the purchase order your created
above.
Choose Create delivery in background.
Then choose Log for Delivery creation, select the entry and choose
Documents, in order to determine the outbound delivery number.
3-1-2 Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Display
3-2 At the beginning of the exercises for this unit, you made the following settings:
IMG: Materials Management Purchasing Purchase Order Set Up Stock
Transport Order
Choose Plant and then Details for plant 14##.
Select the outbound delivery you created in the list of daily workload for picking,
and choose Create TO in background.
Select the delivery you created above in the deliveries list for goods issue and then
choose Post goods issue.
Material: T-AUE##
Delete the default entries - if there are any - for Plant and Storage location.
Choose Execute.
4-3-1 Plant 12##: 1700 M
Plant 14##:350 M
4-3-2 If you were to use the two-step procedure, the unrestricted-use stocks would
be in:
Plant 12##: 1700 M
Plant 14##: 50 M
The Stock in transit stock type would have an entry of 300 M in plant 14##
The outbound delivery document is displayed in the purchase order history, along
with the material document.
Contents:
Creating a Stock Transport Order
Creating a Replenishment Delivery
Executing Picking and Posting Goods Issue
Creating an Internal Invoice
Posting goods receipt
Posting invoice receipt for a purchase order
SAP AG 1999
SAP AG 1999
SAP AG 1999
delivers delivers
Customer Vendor Customer Plant
Sales Sales
organization organization
Company 1
Company code
delivers delivers
orders delivers
orders delivers
Plant
SAP AG 1999
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
In contrast to the intra-company stock transfer, the two plants in the process described in this unit
belong to different company codes.
At the beginning of the unit "Intra-company Stock Transfer" we described the different stock
transfer procedures. Here in this unit we will describe the procedure "with LE outbound delivery and
SD billing". This procedure is used for cross-company stock transfers if R/3 shipping and billing
functions are to be used.
In the receiving plant (plant 2200), a purchase order is created first.
As soon as the purchase order is due for shipping, an outbound delivery is created. As soon as the
shipping activities have been executed, the goods issue is posted in the delivering plant (plant 1200).
Then the goods are shipped between plant 1200 and plant 2200.
Finally, the internal invoice is created in sales organization 1000, that is, in the delivering company.
Intercompany billing between the two company codes can now take place.
Since the two-step procedure is to be used, the goods receipt is posted as soon as the goods are
received in the receiving plant.
When the invoice is received, it can be entered in the logistics invoice verification department of the
receiving company.
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
The stock transfer procedure begins with the entry of a purchase order in the purchasing department
of the receiving plant. If required, there is a reference to a purchase requisition or a delivery plan.
In the standard version, you use the order type NB ("standard purchase order"). In Customizing you
can define whether a warning or error message is issued if an unsuitable order type (for example,
UB) is entered.
The stock transport purchase order is included in the planning activities of the delivering and the
receiving plants.
Depending on the system setting, it is possible to have an availability check run in the delivering
plant to check whether or not the requested goods can be delivered on time.
Plant 1200
Deliver.plant
Deliver.plant 1200 Vendor 10000
Intra-company Cross-company
SAP AG 1999
In contrast to the intra-company stock transfer, order type UB is not used for the cross-company
stock transfer with outbound delivery and billing. You create a standard order (order type NB) with
item category blank ("Normal"). For the intra-company stock transfer, you use item category U
("stock transfer").
When you create the stock transport purchase order with order type NB, you specify a vendor. A
plant is assigned to this vendor in the vendor master rccord. This plant is called the delivering plant.
However, if you create a stock transport order with order type UB, you enter the delivering plant
immediately.
The plant specified in the order item is the receiving plant.
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
In the same way as the procedure for intra-company stock transfers, a replenishment delivery is
created at the beginning of the sales activities.
The replenishment delivery is created solely in a delivery collective run in the respective shipping
point. The purchase orders are used as selection criteria here.
The determination of the ship-to party and the other outbound delivery parameters takes place in the
same way as for intra-company stock transfers:
A customer number is assigned to the receiving plant in Customizing. The same setting as for
intra-company stock transfers is used.
The combination of order type NB and the delivering plant refers to a delivery type. For this
purpose, use delivery type NLCC ("Replenishment Cross-company").
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
With cross-company stock transfers, the replenishment delivery is processed in shipping as usual.
However, if you wish to have different processing compared to outbound deliveries for sales orders
or replenishment deliveries for intra-company stock transfers, you can define this in Customizing for
the delivery type and the item category.
If required, the replenishment delivery can also be packed, or planned into an outbound shipment.
As soon as the shipping activities are closed, the goods issue is posted in LE shipping for the
replenishment delivery.
Order type NB
Delivery type NLCC
Delivering plant 1200
Usage V
When the goods issue for the replenishment delivery is posted, the system must know the movement
type to use. This is determined from the schedule line category, which, in turn, is itself determined
from other factors.
In Customizing, you assign delivery type NLCC to the combination of order type NB and the
delivering plant.
With the help of the delivery type and the item category group of the material, the item category
determination procedure for the delivery ensures that item category NLC is found for standard items,
that is, materials with item category group NORM..
In the standard version, the system determines schedule line category NC for item category NLC and
materials with any MRP type. If you have different settings, maintain the schedule line category
search accordingly.
The standard setting for schedule line category NC defines that, in the case of the two-step
procedure, movement type 643 is used.
The movement types for the two-step and one-step procedures for intra-company stock transfers are
also determined with the help of the assignment of the delivery type as well as the item and schedule
line category search.
Delivering Receiving
Plant Plant
Unrestricted- Unrestricted-
use stock - use stock =
Stock in transit +
SAP AG 1999
When the goods issue is posted, the stock types "unrestricted-use stock" and "Deliv. to customer"
change in the stock overview of the delivering plant because the goods have left the plant as the
result of an outbound delivery (in this case, the replenishment delivery). Also, the stock accounts and
material expense accounts in the financial accounting of the delivering company code are updated.
Here the valuation price of the material flows into the delivering plant.
In the two-step procedure for the cross-company stock transfer , the goods have not yet been posted
in the receiving plant at this point. From the accounting viewpoint, they do not yet belong to the
company code of the receiving plant.
The unrestricted-use stock and the open order quantity remain unchanged.
The quantity that is "in transit" is shown in the stock overview of the receiving plant as "Stock in
transit CC" (cross-company stock in transit).
The value of the cross-company stock in transit can also be displayed as an accumulated value for a
plant or a company code.
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
The delivering company code (company 1000) issues an invoice for intra-company billing of the
goods delivered to the receiving plant.
The internal invoice is generated by sales organization 1000. This involves the relevant sales
organization for internal billing, which is assigned to the delivering plant in Customizing. The same
setting is also relevant for intra-company billing for cross-company sales activities.
The internal invoice is created with direct reference to the replenishment delivery, or it is created in a
collective run. When you process the delivery due list, set the indicator for “Intra-company billing”.
If there is an agreement between the parties involved, you can set the system so that when the
internal invoice is created, invoice receipt is automatically triggered in the logistics invoice
verification of company code 2200.
Similar to cross-company sales, the automatic invoice receipt is initiated by the output control for
billing in connection with the EDI technique. In this case, the EDI output category INVOICE is used
in the MM variant.
SAP AG 1999
The default for the billing type for the internal invoice is derived from order type DL, which is
assigned in Customizing to delivery type NLCC as the “Default order type for deliveries without
order reference”.
The payer results from the assignment of a customer number to the receiving plant. This setting is
also used for determining the ship-to party in the replenishment delivery.
The company code in the internal invoice is the delivering company code, that is, the company code
of the delivering plant.
The sales area is assigned in Customizing to the delivering plant. It applies to company-internal
stock transfers as well as to cross-company sales.
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
When the goods arrive in the receiving plant, a goods receipt for the purchase order is posted there
with movement type 101, with the specification of the replenishment delivery number.
If the purchase order is known, this can also be entered.
There is no goods receipt posting if the stock transfer is being made using the one-step procedure.
With the goods receipt posting, the system creates a purchase order history record and an entry in the
document flow for the replenishment delivery.
Delivering Receiving
Plant Plant
Unrestricted- Unrestricted-
use stock = use stock +
Stock in transit CC -
SAP AG 1999
With the goods receipt posting, the unrestricted-use stock in the receiving plant increases. The open
order quantity is reduced since the delivery for the stock transport order has been received.
The “stock in transit CC” in the stock overview of the receiving plant is reduced.
From the accounting viewpoint, the goods are now assigned to the company code of the receiving
plant. For this purpose, an accounting document has been created in which the order price is the price
of the material.
The stock information in the delivering plant is not influenced by the goods receipt.
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
As soon as the invoice of the delivering company code has been received, the invoice receipt is
posted in the logistics invoice verification of the receiving company code.
If the invoice receipt has already taken place automatically in internal billing, the invoice is assigned
a payment block.
When the quantity and, if planned, the quality of the received goods have been checked, the invoice
can be released for payment. Then the payment block is removed in accounting.
SAP AG 1999
SAP AG 1999
SAP AG 1999
...
Determine which company code the internal
invoice is assigned to
Explain the origin of the sales area
Explain how the system determines the payer
Post goods issue for a replenishment delivery
Post the invoice receipt in invoice verification
SAP AG 1999
Your company decides to introduce cross-company code stock transfers with stock
transport orders and to use the LE outbound delivery for the execution of the delivery
process. An SD billing document is used for internal settlement.
1-1 Make an entry that determines the delivery type to be used for replenishment
delivery for cross-company code stock transfer in supplying plant 12##.
1-2 In addition, make the appropriate settings so that the system uses the two-step
procedure for stock transfers with supplying plant 12## and receiving plant 22##.
Make an appropriate entry:
1-3 In this scenario, the plant 22## is the ship-to party and the payer. To do this, a
customer master record is necessary. During the stock transfer process, the system
Reference
Customer: 22000
Company code: 1000
Sales organization: 1000
Distribution channel: 12
Division: 00
Tax classification: 0
1-5 The supplying plant 12## should be represented by the vendor master record T-
S100##.
Make an appropriate specification in the vendor master.
*1-6 Optional:
Do you have to enter a sales area for intercompany verification for receiving plant
22## to ensure that your cross-company code stock transfer process functions
smoothly?
Give reasons for your answer.
__________________________________________________________________
__________________________________________________________________
Vendor: T-S100##
Document type: current date
Is the plant you entered in the purchase order the supplying or the receiving plant?
_________________________________________
__________________________________________________
3-1 To carry out the shipping activities, you play the part of an employee at shipping
point X0## related to plant 12##. Use the collective processing function to create
the replenishment delivery.
3-1-1 Deliver the purchase order created earlier by processing the delivery due list
for shipping point X0##.
_____________________________
3-2 Determine the delivery type and the item category in the replenishment delivery:
1. __________________________
2. __________________________
Once you have executed the shipping activities and goods issue, this issue
should be entered in inventory management for the supplying plant.
Posting to the receiving plant should not be carried out before the actual
receipt of the material in the receiving plant.
4-1 Initiate picking by creating a transfer order for the replenishment delivery you
created earlier.
Depending on the menu path you use to create the transfer order, you
may have to enter the warehouse number (012).
4-2 Post the goods issue for the above replenishment delivery using the one-step
procedure or collective processing.
Plant: ___________________________
4-4 Go to your replenishment delivery in the material document display via document
flow.
4-4-1 Which movement type did the system use for the goods issue?
__________________
4-4-2 Which Customizing object does the movement type belong to?
_________________________________________
*4-5 Optional:
You want to check why the system used the movement type you found in the above
exercise.
4-5-1 Which parameters does the system use to determine the schedule line
category?
1. ______________________________________
2. ______________________________________
4-5-2 Look up the relevant entry in the schedule line assignment:
________________
5-1 Create the internal invoice with explicit reference to the replenishment delivery you
created earlier, using the one-step procedure this time.
5-1-1 Find out to which company code and to which sales area the internal invoice
has been assigned.
Division: __________________
5-1-2 Who is the payer and which terms of payment are set?
Payer: ____________________
5-2 You want to find out the origin of several entries in the internal invoice:
5-2-1 Where does the system get the terms of payment?
___________________________
Division: __________________
____________________________________________________________
6-1 Your are an employee at the goods receiving point of the receiving plant. Post
goods receipt with reference to the replenishment delivery utilized earlier.
6-2 Display the stock overview for material T-AUD## in plant 22##.
6-2-1 How much unrestricted-use stock does the receiving plant contain now?
____________________
6-2-2 How much cross-company code stock in transit does it contain?
____________________
The two companies involved have agreed that for stock transfer
procedures, the invoice will be sent by mail from the German to the
French branch. Therefore, posting to the vendor’s account in the French
company does not automatically take place during the creation of the
internal invoice.
You are to post the invoice receipt manually.
INVOICE
IDES AG (vendor T-S100##)
Invoice date: (current date)
Invoice 590013##
Invoice for your purchase order 4500....
Invoice: _____________________________
Sales area
Sales organization 1000
Distribution channel: 12
Division: 00
Reference
Customer: 22000
Company code: 1000
Sales organization: 1000
Distribution channel: 12
Division: 00
Vendor: T-S100##
Purchasing organization: 2200
Select the Purchasing Data view.
Choose Enter
Extras Add. purchasing data
Plant: 12##
*1-6 Optional:
To make sure the stock transfer procedure via LE outbound delivery and SD billing
document functions smoothly, you have to assign the sales organization,
distribution channel and division for intercompany billing to the supplying plant
only.
For the receiving plant, these organizational units do not have to be assigned since
the receiving plant appears as a customer in the process. Instead, it is more
important that the corresponding customer master record is available in the
appropriate sales areas.
Vendor: T-S100##
Document date: current date
The plant you explicitly specified in the purchase order is the receiving plant.
Choose Save
Choose the Shipping tab page in the lower screen area (Item detail).
Material: T-AUD##
Delete the default entries for plant and storage location.
Choose Execute.
2-3-1 Plant 12##: 10000 PC
Plant 22##: 5 PC
2-3-2 Double-click on the line for plant 12##.
The quantity released by stock transport order in plant 12## will also be
listed under the StckTrsptOrderRel stock type in the case of cross-company
code stock transfer: 30 PC
3-1
3-1-1 Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Create Collective Processing of Documents Due
for Delivery Sales Orders and Purchase Orders
In the list, select the line which refers to the purchase order your created
above.
Choose Create delivery in background.
Then choose Log for Delivery creation, select the entry and choose
Documents, in order to determine the outbound delivery number.
3-1-2 Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Display
Select the outbound delivery you created in the list of daily workload for picking,
and choose Create TO in background.
Select the delivery you created earlier in the deliveries list for goods and then
choose Post goods issue.
Material: T-AUD##
Delete the default entries - if there are any - for Plant and Storage location.
Choose Execute.
4-3-1 Plant 12##: 9970 PC
Plant 22##: 5 PC
4-3-2 Double-click on the line for plant 22##.
Position the cursor on the material document in the document flow and choose
Display document.
4-4-1 Movement type: 643
4-4-2 Schedule line category
*4-5 Optional:
4-5-1 1. Item category
2. MRP type (stored in the material master)
4-5-2 IMG: Sales and Distribution Sales Sales Documents Schedule
Lines Assign Schedule Line Categories
Since you did not specify the MRP type in the schedule line category
assignment for item category NLC, you do not need to look up the MRP
type in the material master of material T-AUD##.
4-5-3 IMG: Sales and Distribution Sales Sales Documents Schedule
Lines Define Schedule Line Categories
Select Details for schedule line category NC.
The Movement type 1-step field contains the movement type that the system
would use for the one-step procedure.
5-2
5-2-1 The system copies the terms of payment from the customer master record of
the payer.
5-2-2 The payer results from the assignment of a customer number to the
receiving plant.
This is the sales area that is assigned to the supplying plant in Customizing.
Choose Outbound delivery in the upper screen area, to enter the outbound delivery
number.
Material: T-AUD##
Plant: 22##
Choose Execute.
6-2-1 Plant 22##: 35 PC
6-2-2 Double-click on the line for plant 22##.
Contents:
Creating a subcontract order
Monitoring provision stock and creating a delivery
Executing sales activities and posting goods issue
Posting goods receipt
Posting invoice receipt for a purchase order
SAP AG 1999
SAP AG 1999
Sales Sales
organization organization
Company 1
Company code
delivers delivers
orders delivers
orders delivers
Plant
SAP AG 1999
orders Subcontractor
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination of Company 1000
requirements
SAP AG 1999
You order the product to be produced or finished at the vendor. In the purchase order, you enter the
components that you are going to provide to the vendor.
In the system, you enter the issue of the components to the vendor. You enter a goods receipt for the
product manufactured by the vendor. This is when you also post the consumption of goods.
You enter the invoice of the vendor with reference to the purchase order. When you do so, you can
also enter a subsequent adjustment for excess consumption or under-consumption.
orders Subcontractor
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination of Company 1000
requirements
SAP AG 1999
If there is a requirement for the finished product marked with the special procurement type
"Subcontracting", the planning run generates a purchase requisition with item category L
("Subcontracting") or a planned order with item category L. This planned order is converted to a
purchase requisition with the item category L. You see the item category, that is the special
procurement type L, when you call up the MRP element in the requirement list or the MRP list.
At the same time, the bill of material for the finished product is exploded. Dependent requirements
are created for the planned start date of the planned order or for the release date of the purchase
requisition at the finished product level.
orders Subcontractor
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination of Company 1000
requirements
SAP AG 1999
The subcontracting items in the purchasing documents have their own item category. Each SC item
has one or several subitems that contain the components to be provided to the vendor.
You can enter the components manually or determine them through the BOM explosion.
Reservation items are generated for the components that are relevant for requirements planning.
The order price is the price for the subcontracting service of the vendor.
You can store conditions for subcontract orders in a subcontractor purchasing info record.
As of release 4.0.A it is possible to attach service lists to subcontract order items. In this way, you
can transmit detailed specifications to your vendor on which services are to be rendered. The service
specifications have an informative character. They have no effect on the value of the item.
Purch.
docum.
Purchase order
Allowed item categories
PReq Item category
B
Item category Subcontr. _______
K
L - Subcontracting Comp. __
Stand. ___
Doc.type S
Subcontr. ___ Comp. __
Subcontr. _______
SAP AG 1999
Separate document types are set for each purchasing document type. In the document type
assignment, you can store follow-on relationships between document types of different purchasing
document categories.
The allowed item categories are assigned to the individual document types in Customizing. In the
standard definition, item category L for subcontracting is allowed for document type NB (standard
order).
Item categories rule how a material is to be procured. The item category “subcontracting” defines
that components are provided for a material that is ordered at the vendor.
orders Subcontractor
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination Company 1000
of requirements
SAP AG 1999
The components at the subcontractor site are managed in a special stock for vendor. This stock is
valuated and available for planning purposes.
The goods consumption of the components can only be issued from the supply stock for the
respective vendor.
Using an evaluation function, you can monitor the stocks supplied to the vendor.
Vendor Subcontr.A
Comp X4
SAP AG 1999
Before Release 4.0, a transfer posting could only be triggered directly with movement type 541 from
the monitoring list for stock of material provided to vendor.
As of release 4.0, you can also create an LE outbound delivery for a subcontractor from the SC stock
monitor. In this way, you can deliver material supplies to the subcontractor in connection with a
subcontract order.
This procedure has the advantage that shipping documents and delivery notes are available for
shipping the materials supplied. You can also use the standard functionalities for shipping and
shipment processing such as, for example, picking, packing and planning in transportations.
You can provide the subcontractor with components, without a subcontract order being available as a
reference. To do so, you execute a transfer posting with movement type 541. For the ease of input,
you can, for example, refer to a bill of material.
Vendor
Subcontract
Subcontr. order material
Material provision
Subcontr.rqmnt
SAP AG 1999
The net requirements calculation for the components to be provided in subcontracting takes into
consideration that the stock of material provided by customer can only be used as a coverage for the
corresponding requirement of material provided. The provision stock already available to a vendor
(subcontractor) can therefore only be used as a coverage for the requirement of material provided to
this subcontractor.
Only the stock that is not assigned to a subcontractor can be used as unrestricted-use stock to cover
all requirements.
SAP AG 1999
A sales organization, a distribution channel, and a division must be assigned to the plant from which
the components are to be supplied.
A delivery type must be entered for the purchase order. In the standard version, delivery type LB is
available. The indicator for "Predecessor required" must be set to L.
A partner procedure should also be assigned to the delivery type. This procedure contains the partner
role.
Shipping condition
Plant
SAP AG 1999
In the delivering plant, the shipping data (View „Gen. sales / Plant data" in the material master) must
be entered for the component materials.
A customer must be assigned to the SC vendor in the master record; the customer must be created for
the sales organization, distribution channel, and division of the delivering plant.
A shipping point must be assigned to the combination of shipping condition (from the master record
of the customer assigned to the SC vendor), loading group (from the material master of the
component), and plant.
Delivery type LB
Item category LBN
Item category group NORM
SAP AG 1999
Since the outbound delivery does not refer to a sales order, the system must determine important
information about the outbound delivery parameters using other means.
The vendor to be used is derived from the Customizing settings for subcontract orders. If there is no
setting in Customizing, delivery type LB is used in the standard version.
The item category is the result of the item category search for the delivery. Here the criteria for the
delivery type and the item category group of the material play a role. In the standard Customizing
settings, item cateogry LBN is assigned.
When you post the goods issue for the outbound delivery to the SC vendor, the movement type to be
used must be known to the system. This is derived from the schedule line category that is determined
via the item category.
In the standard version, schedule line LB is determined for item category LBN and materials with an
arbitrary MRP type.
The standard setting for schedule line category LB defines that movement type 541 is used.
orders Subcontractor
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination Company 1000
of requirements
SAP AG 1999
orders Subcontractor
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination Company 1000
of requirements
SAP AG 1999
The invoice for a SC order item refers solely to the labor costs for subcontracting. The labor costs,
together with the value of the used components, gives the valuation price with which the SC material
is valuated.
If the vendor reports excess consumption or under-consumption of components after the goods
receipt posting, you must then perform a subsequent adjustment. This subsequent adjustment is
entered with reference to a purchase order.
The subsequent adjustment results in a valuation correction of the material produced.
Invoice verification for a subcontracting item is the same as invoice verification for a standard item.
Subcontracting
Cost of goods mfd Consumption acct account
OP + VP (1) (1) VP (1) OP
Vr (2) (2) Vr
SAP AG 1999
The postings shown apply to a semi-finished product with a moving average price.
Sched. agt
Item category BOM
SAP AG 1999
In the scheduling agreement item, you enter the material to be produced as a subcontracting item.
In the schedule lines, you enter the components that are required for production of the quantities
given. Reservation items are created for these component quantites.
The scheduling of the scheduling agreements can be executed using requirements planning in the
MRP run.
SAP AG 1999
SAP AG 1999
Unit: Subcontracting
Topic: Subcontract order
With subcontracting, you provide your vendor (that is, the subcontractor)
with components from which he manufactures a product. The end product
is requested by your company via a purchase order.
1-1 Vendor T-L10A## produces material T-F1## using subcontracting. You make the
necessary components, which are listed in the bill of materials for this material,
available to the vendor.
1-1-1 Display the bill of material for material T-F1## in plant 1000, BOM usage
1. What quantity of which materials do you need to make available for
material T-F1##?
Component Quantity
1-1-2 Display the stock overview for the components in plant 1000. What
quantity of these materials is marked for unrestricted use in storage
location 0001? How many does subcontractor T-L10A## already have?
T-B1##
T-B2##
T-B3##
T-B4##
1-1-3 How would the stock look for the subcontractor in the current
stock/requirements list?
__________________________________
1-1-4 Since you have had material T-F1## produced by subcontractor T-L10A##
many times before, you have recorded the conditions in a purchasing info
record for subcontracting.
Display the purchasing info record for plant 1000 and purchasing info
record 1000 and use that information to complete the following:
1-2 100 pieces of material T-F1## are to be produced for plant 1000 (Hamburg).
Inform purchasing of this in a purchase requisition using a subcontracting item.
1-3 Check in Customizing whether the item category is allowed for subcontracting for
the purchasing document type (standard purchase order).
1-4-1 What price is suggested for the subcontracting costs per piece? How is this
price calculated?
1-5 Did this action affect the available quantity of the components in the current
stock/requirement list?
Unit: Subcontracting
Topic: Monitoring material provided to vendor and
transfer posting of the components
The components that the vendor needs to produce the product that has
been ordered are provided to the subcontractor. The components can be
determined by the system through a bill of material. The provision of
materials may occur via an SD delivery.
2-1 Display the vendor SC inventory for your subcontracted vendor T-L10A## . What
materials and what quantities do you still need to send to the vendor so that he can
complete the order?
2-2-1 Display the material master records for the bill of material components and
check whether the material master records were created for sales
organization 1000 and distribution channel 12.
2-2-2 Which transportation group and loading group are entered for each material?
T-B1## ____________________________________
T-B2## ____________________________________
T-B3## ____________________________________
T-B4## ____________________________________
Customer: __________________
2-3 You must provide subcontractor T-L10A## with the components that he needs to
produce material T-F1##. Initiate the sending of the components by creating an
outbound delivery for an open quantity. Use the SC stocks for vendor report to help
you.
2-4 Check the outbound delivery created for the components and corresponding
quantities in shipping.
Unit: Subcontracting
Topic: Executing sales activities and posting goods issue
3-1 Initiate picking by creating a transfer order for the outbound delivery you created
earlier.
Depending on the menu path you use to create the transfer order, you
may have to enter the warehouse number (010).
3-2 Post the goods issue for the above outbound delivery using the one-step procedure
or collective processing.
3-3 Check the document flow for your outbound delivery and note the document
number used for posting goods issue to the subcontractor.
_________________________________________________________
_________________________________________________________
__________________________
Display the stock overview for the component materials and use the
information to complete the following table, which will give you an idea of
the current inventory:
3-3-5 Compare this data to the inventory situation at the start of this exercise.
What has changed?
_____________________________________________________________
_
_____________________________________________________________
_
3-4 Run another SC stocks for vendor report for vendor T-L10A## . What has
changed?
__________________________________________________
__________________________________________________
Unit: Subcontracting
Topic: Transfer posting to material provided to vendor
4-1 You know that in the near future there will be many orders for your subcontractor
T-L10A## to produce material T-F1##. Therefore, you want to send the vendor a
certain amount of the components in the bill of material for this material beforehand
so that he can start processing immediately when the orders are received.
Make a transfer posting of another 100 pieces of component materials from plant
1000, storage location 0001 to your subcontractor T-L10A##. Use a transfer
posting in the inventory management system to carry out this step. Create the
transfer posting with reference to the bill of material and include BOM material T-
F1## .
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Unit: Subcontracting
Topic: Goods receipt for subcontract order
Your vendor (the subcontractor) delivers the finished product and you
record goods receipt in the subcontract order.
5-1 Vendor T-L10A## delivers material T-F1##. Record goods receipt for your
purchase order in plant 1000, storage location 0001.
Which movement type does the system use?
5-3 Your subcontractor tells you that he needs one more piece of component T-B4## in
order to produce all the pumps. Record the subsequent adjustment.
Enter your purchase order and press ENTER. Then choose Copy in
order to display the material components.
Unit: Subcontracting
Topic: Invoice receipt for subcontract order
Your vendor (the subcontractor) sends you the invoice for services
rendered (producing the material you requested using the components
you provided). Record the vendor’s invoice.
6-1 Vendor T-L10A## sends you the invoice for the subcontracting costs for your
purchase order. He calculates 10000 UNI plus 10% tax (tax code 1I) for 100 pieces.
This corresponds to a total amount of 11000 UNI. Record the vendor’s invoice.
6-2 Display the invoice document and the accounting document. Which accounts were
changed?
6-3 Display the purchase order history for your subcontract order.
Unit: Subcontracting
Topic: Subcontract order
Component Quantity
T-B1## 1
T-B2## 1
T-B3## 1
T-B4## 1
Material: T-F1##
Quantity requested: 100 PC
Delivery date: current date + 4 weeks
Plant: Hamburg
The system calculates the requirement date for the components by using
delivery date minus planned delivery time of the finished product from the
material master.
Choose Save.
1-2-3 Logistics Materials Management Inventory Management
Environment Stock Stock/Requirements List
Vendor: T-L10A##
Choose Enter.
1-4-1 The system proposes the price of 100 UNI and copies it from the
subcontractor info record.
Environment Info record
1-4-2 In the lower screen section (Item detail), choose the Material data tab page
and then Explode BOM.
This takes you to the component overview.
To create the purchase order with item category L, the system explodes the
BOM for material T-F1## in the background and proposes the items from
the bill of material as components in the purchase order.
The materials are the following: T-B1##, T-B2##, T-B3## and T-B4##.
1-4-3 In the components overview screen, select Component list Component
Availability.
Unit: Subcontracting
Topic: Monitoring material provided to vendor and
transfer posting of the components
2-2
2-2-1 Logistics Materials Management Material Master Material
Display Display Current
Choose the Sales: Sales Org. Data 1 und Sales: Sales Org. Data 2 views.
The material master records are created in the sales organization 1000 and
distribution channel 12.
2-2-2 Logistics Materials Management Material Master Material
Display Display Current
Plant 1000
Vendor: T-L10A##
Purchasing organization: 1000
Select the Control view.
Customer: T-L10A##
In order to be easily identified, the same customer number is assigned to the
subcontractor-vendor in the current system.
Confirm the Create delivery dialog box four times with Enter (without further
entries).
2-3-1 The system generates 1 outbound delivery.
2-3-2 The vendor receives 100 pieces of the T-B1##, T-B2## and T-B4##
components each and 80 pieces of the T-B3## component.
Unit: Subcontracting
Topic: Executing shipping activities and posting goods
issue
Select the outbound delivery you created in the list of daily workload for picking,
and choose Create TO in background.
Select the delivery you created above in the deliveries list for goods issue and then
select Post goods issue.
3-3-1 Position the cursor on the material document in the document flow and
select Display document.
3-3-5 The unrestricted-use stock has been reduced by the quantity you have just
delivered to the subcontractor.
Unit: Subcontracting
Topic: Transfer posting to material provided to vendor
Vendor: T-L10A##
Material: T-F1##
Quantity: 100
Unit: Subcontracting
Topic: Goods receipt for subcontract order
Choose Purchase order in the upper screen area, to enter the purchase order.
Purchase order: document number created earlier for the purchase order
Document date: current date
Posting date: current date
Choose Enter or Execute.
5-2-1
Purchase order: document number created earlier for the purchase order
Choose Enter.
Choose Adopt.
Item 4: Quantity 1
Choose Post.
Unit: Subcontracting
Topic: Invoice receipt for subcontract order
Choose the Purchase order history tab page in the lower screen area (Item detail).
Sales Sales
organization organization
Company 1
Company code
Cross-Company Sales
Third-Party Order Processing
orders Subcontractor
Plant 2 Company 2 (vendor)
Plant 2
delivers delivers
orders delivers
orders delivers
Plant
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Repeat the exercises! For this purpose, use the IDES data
or your own data.
Read the online documentation!
Read the IMG documentation!
Read the release notes!
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Contents:
Menu paths
Additional slides
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Third-Party Order
Processing
Definition of a third-party item category Sales and Distribution Sales Sales
Define Item Categories
Maintenance of item category determination Sales and Distribution Sales Sales
Assign Item Categories
Definition of a schedule line category for Sales and Distribution Sales Sales
third-party order processing Define Schedule Line Categories
Maintenance of the schedule line category Sales and Distribution Sales Sales
determination Assign Schedule Line Categories
Maintenance of copying control for sales Sales and Distribution Billing Bil
document to billing document Control for Billing Documents Copying
Document
Cross-Company Sales
Assignment of a sales area to intercompany Sales and Distribution Billing Int
billing for the delivering plant Organizational Units by Plant
Maintenance of assignment between sales Enterprise Structure Assignment
organization, distribution channel, and Organization - Distribution Channel - Assi
supplying plant
Assignment of a customer to the sales Sales and Distribution Billing Int
organization Customer Number by Sales Organization
Maintenance of billing type for intercompany Sales and Distribution Billing Int
billing in the sales document Types for Intercompany Billing
Maintenance of settings required for Sales and Distribution Billing Int
automatic posting to vendor account to Vendor Account (SAP-EDI)
Intercompany Stock
Transfer
Assignment of a sales area to the delivering Materials Management Purchasing
plant Transport Order Plant
Assignment of a customer to the receiving Materials Management Purchasing
plant Transport Order Plant
Assignment of the delivery type to the Materials Management Purchasing
replenishment delivery Transport Order Assign Delivery Type
Decision on one-step or two-step procedure Materials Management Purchasing
Transport Order Purchasing Document
Shipping point determination Logistics Execution Shipping Bas
Determination Assign Shipping Points
(C) SAP AG LO925 8-2
Maintenance of item category determination Logistics Execution Shipping Del
in the delivery Determination in Deliveries
Maintenance of the movement type in the Sales and Distribution Sales Sales
schedule line category Define Schedule Line Categories
Maintenance of the schedule line category Sales and Distribution Sales Sales
determination Assign Schedule Line Categories
Cross-company
stock transfer
Assignment of a sales area to the delivering Materials Management Purchasing
plant Transport Order Plant
Assignment of a customer to the receiving Materials Management Purchasing
plant Transport Order Plant
Assignment of the delivery type to the Materials Management Purchasing
replenishment delivery Transport Order Assign Delivery Type
Decision on one-step or two-step procedure Materials Management Purchasing
Transport Order Purchasing Document
Shipping point determination Logistics Execution Shipping Bas
Determination Assign Shipping Points a
Maintenance of settings required for Materials Management Invoice Veri
automatic invoice receipt
Maintenance of item category determination Logistics Execution Shipping Del
in the delivery Determination in Deliveries
Maintenance of the movement type in the Sales and Distribution Sales Sales
schedule line category Define Schedule Line Categories
Maintenance of the schedule line category Sales and Distribution Sales Sales
determination Assign Schedule Line Categories
Maintenance of the billing type for Sales and Distribution Billing Int
intercompany billing in the default order type Types for Intercompany Billing
Subcontracting
Assignment of a sales area to the plant Materials Management Purchasing
Transport Order Plant
Shipping point determination Logistics Execution Shipping Bas
Determination Assign Shipping Points a
Allow item category L for purchasing order Materials Management Purchasing
document Types Allowed Item Categories
Assignment of delivery type for supply of Materials Management Purchasing
material to the plant Order
A B
XX XX
Double-Entry Accounting
Balance sheet accounts
P&L accounts
Example SD
Example MM
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Name of Account
Debit Credit
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The basic principle of double-entry accounting is that each business transaction is always posted to at
least two different accounts, that is, posted as a double entry. In the simplest case, there are only two
accounts involved.
The basic idea is Debit to Credit.
In this way, one account is posted to on the debit side, and the other account is posted to on the credit
side.
Basic principle:
Irrespective of the number of accounts involved, the total of debit postings is always the same as the
total of credit postings.
Asset Accounts
Capital/Debt Accounts
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Business transactions are posted to accounts (= invoices on two pages where the value movements
are also registered).
In double-entry accounting, you can assign the accounts to different groups of basic accounts. These,
in turn, are divided into two categories:
Balance-sheet accounts (revenue accounts and capital/debt accounts) to which stocks and their
changes are posted.
P&L accounts (expense/cost and revenue/sales accounts) to which profit activities are posted.
All accounts are similar in structure and have the following basic equation:
Initial balance + inward movement - outward movement = Final balance
The basic accounts mentioned above differ from one another with respect to the account side to
which the initial balance, the inward and outward movements, and the final balance are posted.
Revenue accounts
Expense accounts
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100 100
120 120
Receivables Bank
Payment receipt: (Assets) (Assets)
120 120
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With an SD business transaction, for example, an accounting document is created at the time of the
goods issue and invoice creation.
At the time of the goods issue, the goods physically leave the warehouse. In this way, you have a
stock (balance) and value posting. The stock is reduced and the material consumption increased. The
posting is therefore material consumption to stock.
At the time of billing, receivables are increased at the customer, and stock issues are posted to sales
revenue (posting record: receivables to sales revenue).
When the payment is received in FI, the receivables are reduced again and the money amount is
posted to a bank account (posting record: bank to receivables).
In this simple example, we have ignored the posting of the output tax.
Vendor
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Stock
Goods receipt: (Assets) GR/IR Clearing account
100 100
Vendors
Invoice: (Liabilities) GR/IR Clearing account
100 100
Vendors Bank
Payment: (Liabilities) (Assets)
100 100
SAP AG 1999
In the example of an MM business transaction, an inward stock movement follows at the time of the
goods receipt. As far as the technical side of posting is concerned, clearing entry takes place using a
specific goods receipt/invoice receipt-clearing account (stock to GR/IR clearing account).
As far as it can be valuated with standard prices, posting of the existing difference amount between
costs for purchase and valuation can, under some circumstances, be necessary for a price difference
account.
When the invoice is created, the GR/IR clearing account is credited and liabilities are created for the
corresponding vendor (GR/IR clearing account to vendors).
The liabilities are compared using the payment run, and an issue should be recorded on the bank
account (liabilities to bank).
In this simple example, we have ignored the posting of the accrued tax.