TOWEREX

EXTRUSION
SAP System review
document
Sep 2017
Agenda
oExecutive Summary
oIntroduction
oScope and Objectives
oCourse Structure
oOrganisation Structure MM and PP
oProcess Overview MM and PP
oKey Learning Points
 SOLUTION IN SCOPE IN TOWEREX

Material Production Sales and

SAP LOGISTICS Management Planning Distribution

General Accounts Account Asset Bank and

SAP FINANCIALS ledger Payable Receivable Accounting Cash

System and Authorisation

SAP TECHNICAL Landscape and Access
Review Management
 Course Structure

• In this course we will be providing an overview of Financial and

controlling module, and also reviewing the following processes in the
Financial accounting

• Master Data – General Ledger, Vendor master ,Cost center ,profit center
• General Ledger
• Accounts payable
• Account Receivables
• Asset Accounting
• Bank and Cash
Training Objectives
The objective of End User Training is to ensure staff are equipped with the skills and
knowledge to perform his/her business role using the system and processes. This course
will enable you to:

• Understand the high level business process in Financial Accounting ;

• Identify your role within the process;

• Identify any changes (system and process) that will affect how you do your job

• Understand key concepts, terminology and sub-processes related to the ;

• Perform SAP transactions relevant to your role.

 Key Learning Points
-Organizational Structures

1. Company Codes 2. General Ledger Account groups

Company Name Company Code General Ledger Account groups Code

Towerex Aluminium Limited TWX1

Towerex Purchasing Organization TWX1
Key Learning Points
-Organizational Structures

Plant

Towerex

Plant Name Plant Code

Towerex Plant TWX1

 Key Learning Points
-Organizational Structures
4. Material Types

Material Type Description Material Type Description

ABF Waste ERSA Spare Parts

CAPT Capital goods FERT Finished Product

CH00 CH Contract Handling FGTR Beverages

CONT Kanban Container FHMI Production Resource/Tool

COUP Coupons FOOD Foods (excl. perishables)

DIE Die Material FRIP Perishables

DIEN Service External HALB Semifinished Product

EPA Equipment Package HAWA Trading Goods

 Key Learning Points
-Organizational Structures
4. Material Types

Material Type Description Material Type Description

HIBE Operating supplies MPO Material Planning Object

IBAU Maintenance assemblies NLAG Non-stock materials

INTR Intra materials NOF1 Nonfoods

KMAT Configurable materials PIPE Pipeline materials

LEER Empties PLAN Trading goods (planned)

LEIH Returnable packaging PROC Process materials

LGUT Empties (retail) PROD Product groups

HERS Manufacturer Part MODE Apparel (seasonal)

Key Learning Points
-Organizational Structures
4. Material Types
Material Type Description 5. Storage Locations
ROH Raw materials
Storage Location Description
UNBW Nonvaluated materials
AGSL Ageing
VERP Packaging
ANSL Anodizing
VKHM Additionals

VOLL Full products CSL1 Central Storage

WERB Product catalogs CSSL Comp Scrap St. In

WERT Value-only materials

DSSL Die Stock

DUSL Die Usage

EXSL Extrution Storage

5. Storage Locations

Storage Location Description Storage Location Description

MSSL Maintenance stock SCSL Scrap storage

MUSL Maintenance Usage WFSL Wood finish

NBC Billet

PCSL Powder coating

PRM1 Prod. RM(Billet)

PRM2 Prod. RM(Powder)

RWSL Rework Storage

Key Learning Points
-Organizational Structures

6. Purchasing Groups

Purchasing Group Description

PGD Domestic Purchasing group

PGI Import Purchasing group

Key Information
PP Organization Structure
Logistic Organizational Structure needs to be defined in SAP first as a based for all
Logistic activities including Production Planning.

• A Company Code represents an independent financial unit

• A Company Code has its own “Balance Sheet and Profit &
Loss Statement

• A plant is an organizational unit within a company.

• In SAP, a plant represents a production facility of a grouping of locations where stock is kept

• A plant produces goods, renders services or makes goods available for distribution.

• A storage location is a sub division of a plant and a logical area where inventory is stored

Storage Location 0001

Storage Location 0003

Storage Location 0002

Key Information
Production Planning Structure
The Logistics Organization Structure described in Production Planning / Material Master can
be broken down into three levels: Company Code, Plant, and Storage Location.

Company Company Code: XXXX

Code

Plant Plant:
XXXX

Storage Location 1:
YYYYYYYY

Storage Location 2:
YYYYYYYY

Storage Storage Location 3:

Location YYYYYYYY

Storage Location 4:
YYYYYYYY

Storage Location 5: Storage Location

Storage Location 0004
YYYYYYYY
0001
Storage Location 6: Storage Location Storage Location
YYYYYYYY 0002 0003
Logistics Process flow – Purchase
MODULE MM PRE-REQUISITE PROCESS PLANNING

Purchase to Pay
Procurement of Materials

Create purchase
Sta rt
requisition

Approve/Release
purchase requisition

Convert PR to Release purchase Gate Pass

Create purchase
PU RC H A SE

purchase order order

requisition

Issue PO to vendor

Post
Goods
Receipt
Weigh laden vehicle Weigh unladed vehicle
on weighbridge on weighbridge
Offload the delivery
from the vehicle

End
 Materials Management Training Overview
- Master Data 1

 Master Data are the records containing all the data necessary for processing business transactions.
 Master data forms the basis of all Materials Management transactions processing.
 Maintaining the master data reduces business transaction processing time because the system proposes the
relevant master data in the business transaction
 Some of the Key master data in MM are:
o Materials Master Data
o Vendor Master Data
o Service Master Data
Materials Management Training Overview
- Master Data 2

Vendor
Master
Data

Material
Master
Data

Service
Master
Data
 Materials Management Training Overview
- Procurement 1
The procurement process is triggered by a purchase requisition which can be
initiated across any unit in a Company Code

Purchase • Purchase Requisitions will be raised by a Requisitioner in the User

Requisition department when goods / services are required

Request for
• A quotation is sent to Vendors requesting for their terms on the
Quotation prospective purchase; and one or more vendors are picked to
supply goods/service needed

• Purchase Orders will be created by respective buyers based on

Purchase
Order transactions and sent to the selected vendor
 Materials Management Training Overview
- Procurement 2

 Procurement process is also responsible for

• Selecting potential vendors and negotiating conditions
• Setting up outline agreements with vendors
• Converting requisitions into actual purchase orders
• Maintaining vendor and material master data
• External procurement of raw materials / trading goods
• “Make or Buy” decisions

Procurement process integrates with the Finance and Controlling Module for Invoice
Verification and Payment
Materials Management Training Overview
- Inventory Management

 SAP Inventory Management system allows you to manage stocks on a quantity

and value basis in order to plan, enter, check goods movements and carry out
physical inventories

 Inventory Management covers all the business and transactional processes

associated with:

− Goods Receipt
− Quality Inspection of Delivered Materials
− Return of materials to vendors (Material Rejection)
− Goods Issue
− Stock Transfer
 Materials Management Training Overview
- Outputs and Reports

• Output for the following purchasing documents will be obtainable from SAP
• PR
• PO
• Contracts
• RFQ
• GRN- Goods Receipt Note

• Each form will contain details unique to its transaction E.g. the Contracts (Outline Agreement)
forms will include Vendor Address, Vendor, Delivery Address, Agreement Validity period and other
transaction details.

• Forms can either be saved in a system folder or printed – i.e. the PO Output which may be hand delivered
to the Vendor

• Forms will not have manually editable fields as they will capture details already inputted into the system
 Key reports executed in Materials Management
Key Report functions
User Module Tcode Access

Material Master MM01, MM02, MM03, Create material master,

change material master
and display material
1 master.

Vendor Master XK01, XK02, XK03 Create vendor master,

change vendor master
2
and display vendor
master

Inventory MMBE, MB5B, MB52 Stock overview, List of

stock on posting date,
Display warehouse Stock
3 of Single and Multiple
Materials.
 Key reports executed in Materials Management
Key Report functions
User Module Tcode Access

Material Document flow MB51 Display Material

Document List ( GR,
4
GR reversal, GI and GI
reserval)

Purchase order ME2L, ME2N List of Purchase Orders

per vendors, List of
Purchase orders per
5 Purchase order document
numbers.
Training Objectives
The objective of End User Training is to ensure staff are equipped with the skills and
knowledge to perform his/her business role using the system and processes. This course
will enable you to:

• Understand the high level business process in Production Planning;

• Identify your role within the process;

• Identify any changes (system and process) that will affect how you do your job

• Understand key concepts, terminology and sub-processes related to the Production Planning
process;

• Perform SAP transactions relevant to your role.

Course Structure

• In this course we will be reviewing the following processes in the

Production Planning Overview.
• Production Planning Overview
• Production Planning Master Data
• Production Planning
• Production Control
PP Overview
Integration to other SAP modules

(Production Planning is fully integrated to other SAP modules)

• Sales & Distribution
o Sales Order created will be treated as “Demand”.
o Planned Order/Production order is created to generate stock for delivery.
• Materials Management
o Purchase Requisition / Delivery Schedule is generated as the result of MRP
o Materials received into unrestricted stock will be treated as available stock for planning.
o Confirming a Production Order will increase the stock of the end item while decreasing the stock of the
components Goods issue.
• Financial and Controlling
o Product costing will determine the standard cost of a production.
• Quality Management
o Controlling inspections during production GR and GR from PO.
o Processing internal problem notifications – notification type Q3
PP Overview
Production planning concepts
Production Planning concepts in SAP can be divided into 3 major sections, i.e. PP Master Data, Production
Planning, and Production Control.

• PP Master Data
o Master data is the basic data that is needed to perform a transaction in SAP.
o The relevant master data in PP are:
– Material Master,
– Bills of Material,
– Work center
– Routing
– Production Version.

Production PP Master Production Production

Planning Data planning Control
PP Master Data
Material Master
• Material Master is a database, that stores all information regarding the materials that a company procures,
produces stores and sells.
• Material master contains all the relevant information regarding the material ((FG, SFG, Raw material,
Packaging material etc.) including the planning information.
• A material master data consists of several views.
• Every view in material master stores department specific information regarding the material.
• Two views which are relevant to production planning are:
• MRP views (1,2,3,4) and
• Work scheduling.

Material Bill of Production

Master Work center Routing
Material Version
PP Master Data
Bill of Material:

• The Bill of Material (BOM) is a complete, formally structured list of

components that make up a product or assembly. Each BOM contains the item
number of each component, together with the component quantities and units of measure.
• The Bill of Material (BOM) consists of, BOM header and BOM item.
• Manufacturing BOM is created for 2 purposes:
o Production and
o Cost calculation.

Material Bill of Production

Master Work center Routing
Material Version
PP Master Data
Bill of Material – Structure:
• BOM data is maintained at header level for the entire BOM, and at item level for each specific
component.
• A BOM consists of BOM Header and BOM Item.

Header A

Item B Item C Item D

Header D

Item X Item Y

In the illustration above, BOM is maintained level by level. Item D has its own BOM which comprises of items
X and Y.
PP Master Data
Work Center:

• Work center is location in the plant where the production process is carried out.
• Each is assigned to work center category.
• Work center consists of capacity, scheduling and costing data.
• Work center are used in Routing.
• Work center data are managed in different views;
o Basic data,
o Default data,
o Scheduling data,
o Capacity data and
o Costing data.

Material Bill of Production

Work center Routing
Master Material Version
PP Master Data
Routing:

• Routing is a detail description of steps to produce the product.

• A Routing includes the following information:

o The standard values (times) for activities such as setup and processing activity,
o Routing, where the operations are performed,
o Material components, which are allocated to the operation/phase,
o Instructions for, what to do at operation and
o Inspection plan for, In-process quality inspection if require

• Routing is defined at the plant level.

Material Bill of Production

Work centre Routing
Master Material Version
PP Master Data
Production Version:

A production version represents the selection criteria for the BOM and master recipe.

+
Production Version =
Routing

BOM

Material Bill of Production

Work center Routing
Master Material Version
Logistics Process flow – Production
MODULE PP PRE-REQUISITE PROCESS Procurement of Materials

Finished Goods production

Profiles production

Display/ Print
Create production Production order Release production
Start Production order
order order
PR O DU CTIO N

Confirmation of
Technical
Execute production production order
completion of
as specified on the (Automatic goods
production
production order issue & goods
order
receipt)

Quality inspection

End

Settlement of
production order
Key Learning Points
This is a summary of the key learning points of this training session.

• Production Planning concept in SAP is divided into 3 major sections, i.e.

• PP Master Data,
• Production Planning and
• Production Control .

o The relevant master data in PP are:

• Material Master,
• Bills of Material,
• Work center,
• Routing,
• Production Version

o The following manufacturing elements are used to accomplish

production ;
• Production Order.
Towerex User and authorisation- Production Planning

User ID Tcode Access Key functions in SAP

Production Planning CS01,CS02, CS03 Create, Change, Display

BOM
1

Production Planning CR01, CR02, CR03 Create, Change, Display

Work center
2

Production Planning CA01, CA02, CA03 Create, Change, Display

Routing
3
Towerex User and authorisation- Production Planning
User ID Tcode Access Key functions in SAP

Production Planning CO01,CO02,CO03 Create, Change and Display

Production Order
4

Production Planning CO11N, CO13 Production

Confirmation, Reversal
5
of Production
Confirmation
Production Planning MB1B, Zpress, Stock posting, Production
reports, Order Information
COOIS,COGI,C223
System, Goods
6 Movement Error,
Production Version
Towerex User and authorisation- Production Planning

User ID Tcode Access Key functions in SAP

Production Planning MM60 Material List

Production Planning CS11, CS12 BOM Level by level,

Multilevel BOM
8

Production Planning MB51 Display Material

Document List ( GR, GR
9
reversal, GI and GI
reversal)
Towerex User and authorisation - Production Planning

User ID Tcode Access Key functions in SAP

Production Planning MMBE Stock Overview

10

Production Planning MB52 Display Material list

11

Production Planning MCRE Material Usage Analysis

12
Support Process

Communicate to first
Review by MD or Finance level support person on
User Raise an manager site
Issues

Ticket raised to
First level review and fix issues Where issue is specilised and
remore support
require modular skills
consultant

Isssues are logged and sign off in issues

resolution register
 Key Learning Points
-Material Management Overview
This is a summary of the key learning points of this training session.
• Materials Management module in SAP helps to process
transactions from procurement to Inventory Management.

• There is a logical flow in the processes from Purchase

Requisition to Goods Receipt, Inventory Count and Stock
Transfer

• All the processes are documented through the appropriate

documents

• The processes are handled and processed according to

the business requirements

• Materials Management (MM) is integrated with other SAP

modules, such as Financial Accounting (FI) and Sales &
Distribution(SD)
Questions and Answers
Thank you
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