Business Process A&D

The BP role BLANK is automatically assigned to all BPs

'General Business Partner' (i.e., BP General Role)

Make to stock vs Make to order

5 vs 7 steps

PIR

=Planned Independent Requirements (sales forecasts)

Work Center

A location within a plant where value-added work (operations or activities) are performed

Shipping Point

A physical location from which outbound deliveries are dispatched

A plant must have at least one storage location AND

A storage location can belong to only one plant

Transaction data

A transaction is a business event the organization wants to record for legal obligations or management; no undo button; high volume; examples include situational data (e.g., client, sale org), master data (e.g., customer), org data (e.g., date, time, person)

Distribution Chain

A unique combination of Sales Organization & Division

Each entry in the G/L will be associated with a unique

Accounting Document.

Business Area

An optional accounting organizational unit that represents a separate area of operations or responsibilities

The Universal Journal (single point of truth)

Brings together the once-separate components Financial Accounting (FI) and Controlling (CO) into one pool of relevant business data

Generic Production Planning Process

Capacity planning (strategy for new facilities) => Aggregate planning (# of bikes) => Master Schedule (production schedule) => Short term scheduling (work assigned)

G/L Accounts are grouped into

Chart of Accounts (COA).

BLANK is the highest level in an SAP system (top of the enterprise structure)

Client

Optional FI organizational units

Company, business area, functional area, financial management area, profit center, segment

BLANK is the process of allocating incoming Sales Orders against PIRs - i.e., PIRs are 'absorbed' by Sales Order

Consumption

Vendor Master Data

Contains all the necessary information needed to do business with an external supplier

Functional areas are used to create a P&L using

Cost of Sales Accounting.

Master data

Defines the key entities within an organization; known as material master; entered once and not updated often

Organizational data

Defines the organizational structure/enterprise structure (how organizational units are related to each other) of the enterprise

SOP supports manual entry of

Demand Plan, or generation of a demand plan

The Demand Management process produces

Demand Program.

Unit of measure

Description of measurement

The MPS process consists of

Determining Gross Requirements, Subtracting what you have, Calculating net requirements and determining when you need them.

A Sales Organization must have at least one

Distribution Channel

The accounting process is divided into two major categories

Financial accounting (FI)

Silo Effect

Focusing on functional objectives without regard to process objectives

SAP's version of Generic Production Planning Process

Forecasting => S&OP => Demand management => MPS => MRP => Manufacturing Execution (procurement process/order fulfillment)

The enterprise structure (organizational structure) will be impacted by

Industry, Business unit requirements, Business and accounting policies, Business functions performed by business units, Locations of facilities

ES focuses on

Integration, standardization, sharing a common data model, supporting core business processes

An SAP Client has a single default main (primary) G/L which is shared by all company codes

Leading Ledger

Bill of Materials (BOM)

List of components (materials) that make up a product or assembly

Items (materials) included in the MPS planning run are called BLANK

Master Schedule Items (MSI)

BLANK are a way to group together materials that share common attributes or are used in a similar way, but they are more about procurement and reporting

Material groups

Production Resource Tools (PRT)

Movable required objects, documents, materials, equipment

When a Goods Movement takes place, it is represented by a specific code

Movement Type

NETCH

Net change to total planning horizon; Planning for all materials for which MRP-relevant changes (e.g., to the BOM or component mappings) have been made

The Enterprise Structure (often called Organizational Structure) of a company is mapped to SAP applications using BLANK

Organizational units (organizational elements) which are organized by levels

A Shipping Point can be assigned to many

Plants

The outcome of an MRP planning run is

Procurement Proposal

When products are manufactured the value of inventory will change

Product Costing (CO-PC) - standard costing

Product Groups

Products can be grouped together to create a multi-level product group (a product hierarchy)

Customization of SAP

Purchase a system and bolt-on to the SAP system by writing a Gateway, Extend the SAP warehouse system through coding

Purchasing Information Record (PIR)

Purchase info records are information about terms for purchasing a specific material from a specific vendor.

MM Organizational Structure

Refers to client, company code, plant, storage location

NEUPL

Regenerative planning; Planning of all MRP-relevant items

A division can be assigned to multiple BLANK

Sales Organizations.

Type of planning

Strategic Planning, Tactical Planning (support strategic planning), operational planning (day to day), Contingency Planning (for the unexpected)

BLANK (measured in days) determines how far into the future the MRP planning process looks to create Production Orders

The planning horizon

Inventory management may also track the value of inventory through 3 ways

Value based, quantity based, consumables

Material Master Data contains all the information a company needs to manage about a material through segments called

Views

Procured materials may be stored in a BLANK, used for BLANK, and need to be valued and managed BLANK

Warehouse (WM), production (PP), (FI/CO)

The Production Planning and Execution (PP) module

addresses the planning for, and actual execution of production

Vendor vs supplier

an external entity (retailer) that supplies goods vs those that manufacture

Purchasing Organization

an organization unit (part of the organizational structure) responsible for procuring & negotiating services & materials.

Segment

an organizational unit that was introduced to meet new requirements regarding external segment reporting

Distribution Channel includes

being Responsible for getting materials to customers, Differentiate distribution strategies or approaches, Different pricing, responsibilities,Wholesale sales, retail sales, Internet sales

So, in SAP, the G/L serves as a repository for all

business transactions that have an accounting (including CO) impact

Obligatory FI organizational units

client, company code (legal/logical entity), credit control area

Reference data

datasets used as reference;established in the system during configuration

Planned Dependent Requirements

demand that is dependent on another material

Disaggregation is moving to

detailed planning level by translating Demand Plans for groups of finished products down the different product branches of the product group hierarchy

MRP converts the master schedule of production into a

detailed schedule, so the organization knows what raw materials and components to purchase, how much to purchase, and when to buy.

The system does provide the flexibility for multiple operating COAs but

each CoCd must be assigned one (and one only) Operating COA.

A Client can have multiple Company Codes (CoCd), but

each company code must belong only to one client and company codes are grouped into a company

MRP Objectives

ensure availability of materials, maintain lowest level of inventory, plan manufacturing activities, reduce lead time

Master Schedule Items (MSI)

finished goods and important assemblies that greatly influence company profits or dominate the entire production process by taking critical resource; class A items; priority to resources; important

The S&OP Process

focus on answering key tactical planning questions (what-if analysis; scenarios)

MRP Process includes

generating a master production schedule (MPS) and running MRP

To options to address shortfall in materials are MRP planning run

in house production, external procurement

Customer Requirements (materials needed to fulfill sales orders) will usually be BLANK

independent requirements - i.e., their demand is not dependent on the requirements of other materials.

Purchasing Information Record (PIR)

information about terms for purchasing a specific material from a specific vendor; includes pricing and conditions

Enterprise systems

integrated, organization wide systems that provide solutions and addresses multiple needs through business processes; complete puzzle

Three fundamental structures in enterprise

legal, managerial, functional

G/L accounts not in the operating COA (e.g., local accounts) must be

mapped to the accounts in the Operational COA.

Procuring for consumption

not received in inventory, used immediately;cost assigned to cost object

Non leading ledgers (aka. Parallel Ledgers) enable

parallel accounting (multiple sets of accounting records using different accounting principles or standards)

Vendors are business partners

person, organization, group of persons, or group of organizations in which a company has a business interest; BP data is master data

Material Requirements Planning (MRP) is a

planning and control system for inventory, production, and scheduling.

MRP and inventory management is done at the

plant level

BP Roles

reflect the functions & business transactions related, and rights & obligations; examples include prospect, contact person, sold to party, bill to party, payer

Enterprise Application Software (EAS)

satisfy the needs of an organization rather than individual users (employees, depts); individual peices

Routings

sequence of steps (operations) that are necessary to produce a given product, and the work centers at which the operations are to be executed; used at templates, basis for cost, and planning

Component Assignment

specifies the relationship between a BOM and a Routing.

Procuring for stock

stored; considered current asset

Material Ledger (inventory ledger)

subsidiary ledger for materials; value impacting transaction are recorded in this

Conditions

terms of payment that are negotiated with vendors or customers (surcharges, discounts & cash discounts, for example).

Purchasing

the actual act of buying goods and services.

The operating COA is used for

the day-to-day posting of an organization's operational transactions

A Plant (Delivering Plant)

the physical location or facility from which goods are delivered to customers; A Company Code must have at least one Plant; Can be assigned to deliver products or services for multiple Distribution Chains

Procurement

the process of finding and agreeing to the terms of a purchase

The Document Principle

there is at least one document recorded for every business transaction; Transaction => Electronic Document => Traceable number => Cannot be deleted; In SAP, no accounting document can be posted without a document type

Different planning types focus on different

time horizons

Some G/L entries are posted directly in FI, but most entries will come via

transactions processed in other SAP modules - e.g., recording a sale.

Credit Control Area

used in Accounts Receivable & Sales & Distribution;responsible forgranting and monitoring customer credit

MIGO (Movement In, Goods Out)

used to Goods Movement transactions; includes goods receipt, goods issue, stock transfer, transfer posting

Sales & Distribution includes

• Fulfillment Process • Order-to-Cash process • Lead-to-Cash process

ERP 'challenges' can be broadly categorized across 3 primary dimensions

• Technological • Organizational • Human