BPI - I - Student Book PDF

BPI - I Student Book
Business Process Integration - I Student Books
rg
The Rushmore Group, LLC
Version 4.1
July 2007
Business Process Integration I
Presented by The Rushmore Group, LLC
Welcome
Introductions
Student Instructor
Course schedule Classroom materials Housekeeping issues
July 2007
SAP AG and The Rushmore Group, LLC 2007
Introductions
Your name My background [briefly] Your SAP role/experience/courses attended Your objectives/expectations with respect to this course...
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Course Materials
Business Process Integration Slides Business Process Integration Exercises
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Schedule of Exercises
Day One Day Two Day Three Day Four Day Five
1 to 20 21 to 68 69 to 106 107 to 151 152 to 190
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An Introduction to the Basics of SAPs R/3 Client / Server Integrated Business Solution
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SAP
Systems, Applications, and Products in Data Processing (SAP) Name of the company
SAP AG SAP America
Name of the software

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

SAP Oracle (Peoplesoft and J.D. Edwards) Microsoft Great Plains, Axapta, Solomon IBM BAAN
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Architecture
Central relational database (e.g., Oracle, Informix, Microsoft SQL and many others) Client/Server three-tiered ERP Component Oriented towards common identifiable business modules (FI, MM, SD, CO, PP, HR) Add-ons:
Customer Relationship Mgmt (CRM) Supply Chain Mgmt (SCM) Product Lifecycle Mgmt (PLM)
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Relational Database
Tables: Defines and links thousands of tables of information (25,000+) Advantages

Consistent and accurate data Common definitions for terms Shared, but restricted usage (e.g., profiles) Eliminates data redundancy
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Client/Server Environment
Client
Software/hardware combination that can make a request for services from a central repository of resources
Server
Software/hardware combination that can provide services to a group of clients in a controlled environment
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Three-Tier SAP Structure

GUI Graphical User Interface or Web Interface Application server (one or many) Database server (one single location)
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SAP Enterprise System
PCs, Laptops, etc.
Browser Client
Network
Web Server
Presentation Application Database

Database
Internet Transaction Server
Application Servers
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mySAP Business Suite
mySAP PLM
mySAP SRM
mySAP ERP
mySAP CRM
mySAP SCM
SAP NetWeaver
mySAP ERP Modules

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

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

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

Each business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as
Responsible person Date and time of the transaction Commercial content
Once created, a document can not be deleted from the database
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Review
SAP and SAP R/3 Integrated Business Solution Architecture Client/Server Software Relational Database SAP R/3 Modules Configurable Software Programming Code Modifications Be Careful!! SAP R/3 Document Principle
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Unit 1 Unit 1
Business Processes, Integration, and Configuration in the SAP R/3 Environment
Two Differing Learning Approaches
Standard SAP training

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

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

YES
Goods to Delivery Plant or Warehouse Inventory Postings General Ledger Accounts
NO
Goods from Purchase Order Purchase Order Goods Receipt Invoice Receipt Accounts Payable
Purchase Requisition
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Pen Incorporated Produce for Sales Order
Pre-Sales Activity
Sales Order
Delivery
Billing
Accounts Receivable
Availability Check In Inventory

YES
Goods Issued to Delivery Plant or Warehouse Inventory Postings General Ledger Accounts
NO
Issue Goods to Production Order Production Order
Goods from Production Order
Planned Order
Completion Confirmation
Accounts Payable
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SD MM
FI
CO AM
Materials PP Mgmt. Production SM Planning Service Mgmt.
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Logistics
Materials Management (MM) Sales and Distribution (SD) Production Planning (PP) Quality Management (QM) Plant Maintenance (PM) Service Management (SM)
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Accounting and Finance
Financial Accounting (FI) Controlling (CO) Enterprise Controlling (EC) Fixed Asset Management (AM) Project Systems (PS)
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Human Resources
Human Resources (HR)
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Materials Management (MM)
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Components of Materials Management
Valuation Logistics Invoice Verification Purchasing Material Master Inventory Mgmt. Physical Inventory MRP Service Entry Sheet Service Master
Foreign Trade/ Customs
Product Catalog
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Procurement Process
(Procure-to-Pay)
Integration
Purchase Order
Notify Vendor Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt
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Sales and Distribution (SD)
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Components of Sales and Distribution
Shipping Transport Sales Support Master Data Sales Credit Mgmt. Billing Foreign Trade Sales Information System
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Sales Order Process

(Order-to-Cash)
Integration
Sales Order Entry
Check Availability Pick Materials
Receipt of Customer Payment Invoice Customer

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Pack Materials
Post Goods Issue

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

(Order-to-Cash)
Integration
Sales Order Entry

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Pack Materials
Post Goods Issue

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

The Stool
Components Organizational Data Master Data Rules Transactions
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FI
Org Data
MM
SD
Master
Rules
Data
FI MM SD
FI
FI MM SD
MM SD
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Organizational Data
A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
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Master Data
Master data is relatively fixed

Material master data Vendor master data Purchasing information record General Ledger master data
Before making the master data configurations, you must have completely defined the organizational structures
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Rules
Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes
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Transaction Data
Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
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Functional Areas Where and When
Business Process Integration I

Financial Accounting (FI) Materials Management (MM) Sales and Distribution (SD)
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Functional Areas Where and When
Business Process Integration II

Financial Accounting (FI) Controlling (CO) Materials Management (MM) Production Planning (PP) Quality Management (QM) Sales and Distribution (SD)
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Unit 2
The Basics
- Navigation -
Overview
Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off
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SAP R/3 System Standard Features

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Logging On - SAP R/3 Initial Screens
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Logging On - The Client
This is a numeric field This number defines a whole business entity
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Logging On - User
Enter the name of the SAP user Users of SAP system are client-specific
User identification on one client will only allow access to that client on that server
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Logging On - Password Rules
Letters Numbers Easy to remember 3-8 Characters long No 3 Characters can be the same Do not start with a ? or an ! Do not use previous 5 passwords
Logging On - Language
SAP supports multinational character sets and languages on the same system, at the same time Default languages are English and German
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Logging On - Data Record
Table Client 400 400 400 410 410 410 User STEVE BOB JERRY STEVE BOB JERRY Password ******** ******** ******** ******** ******** ******** Valid From 1/1/2000 1/1/2000 1/1/2000 1/1/2005 1/1/2005 1/1/2005 Valid To 12/21/2000 12/21/2000 12/21/2000 12/31/2008 12/31/2008 12/31/2008
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SAP R/3 System - Standard Features
Logging On SAP R/3 Screens Basics of Data Entry Working with Multiple Sessions Reporting On-line Help and System Messages Setting User Defaults Logging Off
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SAP R/3 Screens - The Topics
Easy Access desktop System menus System navigation Transaction name Transaction icons Transaction work area Status messages
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SAP R/3 Screens - Easy Access Desktop

System Menus System Navigation Transaction Name Transaction Icons Transaction Work Area
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Status Messages
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SAP R/3 Screens - Easy Access Desktop

Favorites
Folder and Sub-Folder Transactions
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SAP R/3 Screens - System Menus
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SAP R/3 Screens - System Navigation
Save Back Exit Canc el Print Find/E xpand icons
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Create te a new se a des ktop s ssion hortc ut
Comm
Scroll ic
Crea
Help icon Optio ns
Enter
and F
ons
ield
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SAP R/3 Screens - Transaction Name
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SAP R/3 Screens - Transaction Name
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SAP R/3 Screens - Transaction Icons
Screen or view dependant

(e.g. materials master will differ from sales order entry will differ from the main menu)
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SAP R/3 Screens Transaction Work Area
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SAP R/3 Screens Status Messages
System Message
System Information
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SAP R/3 Transaction Screen
Tabs
Header
Line Item Detail Line Item
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SAP R/3 Master Data Screen
Tabs
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Basics of Data Entry
Using menus Using transaction codes System > status Using /n Multiple sessions Using /o
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Types of entry fields Moving between fields Radio buttons and check boxes Possible entry fields Match-codes Saving data Canceling data
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Save Cancel
Tab Check Box
Entry (Input) Field
Pull Down
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There are three types of entry fields:

Required Default entry Optional entry field
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Working with Multiple Sessions
Opens another session
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Working with Multiple Sessions
An SAP session is a window in which the user may perform a particular task Users may have up to six sessions open at one time
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Reporting
Three basic steps to running a report

Access the report Enter selection criteria Execute the report
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Reporting
Access Selection
Execution
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On-line Help
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On-line Help
Help on screen fields - F1

Extended help Reference information Technical information
Displaying possible entries - F4 Using the Help menu

Extended help R/3 library Getting started
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On-line Help
F1 - Key
F4 - Key
System Messages
E = Error
An invalid entry has been made The cursor moves to the field where the error has occurred
W = Warning
A possible error has been made The user can continue without changing
I = Information
Feedback from the system
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Setting User Defaults
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Logging Off
System > logoff
Exit button Control box
For security purposes it is important to log off SAP whenever you leave your PC. Your user name is linked with all transactions you perform providing an audit trail.
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BPI I - Exercise Purchase

Roadmap
Check Availability Requisition
Purchase Order
Run MRP
Procurement Process
Sales Order Entry
Goods Receipt
Sales Order Process
Pick Materials
Invoice Receipt
Payment to Vendor Receipt of Payment Post Goods Issue Invoice Customer SAP AG and The Rushmore Group, LLC 2007
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Sales Process Exercise Part 1
Order-to-Cash
SD MM PP
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Sales Order Process

(Order-to-Cash)
Sales Order Entry

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Pack Materials
Post Goods Issue

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Unit 2, Group 1 Exercises

1. 2. 3. 4. 5. 6. Logging on the SAP System Create Vendor Master Create Material Master Create Customer Master Create Customer Quotation Create Sales Order with Reference to Customer Quotation 7. Check Stock Status
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Procurement Process Exercise
Procure-To-Pay
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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Enterprise Client / Server Controlling Integrated Business PS Project Solution PM WF System Workflow
Human Resources
Industry Solutions
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Procurement Process
(Procure-to-Pay)
Purchase Order
3-Way Match Payment to Vendor Invoice Receipt
Notify Vendor
Vendor Shipment Goods Receipt

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8. Run Materials Requirement Planning Single Item, Single Level 9. Convert Purchase Requisition to Purchase Order 10. Create Goods Receipt 11. Create Invoice Receipt from Vendor 12. Post Payment to Vendor
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Sales Process Exercise Part 2
Order-to-Cash
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Sales Order Process

(Order-to-Cash)
Sales Order Entry

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Pack Materials
Post Goods Issue

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

Goals and Objectives Target Audience Components
Managerial Accounting (CO)

Goals and Objectives Target Audience Components
Comparisons and Relationships

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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
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Goals and Objectives
Financial accounting is designed to collect all of the data needed to support the preparation of financial statements for external users
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Target Audience
Internal
Executives Senior Management Accounts Administration Staff Employees
External
Legal Authorities Banks Auditors Shareholders Insurance Taxing Authorities Media Financial Analysts
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Components of Financial Accounting
Accounts Receivable
General Ledger Accounts Payable
Fixed Assets Banks Special Purpose Ledger
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Controlling (CO)
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Goals and Objectives
Managerial accounting is designed to collect data for the preparation and analysis of reports for use by internal users
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Target Audience
Executives Senior Management Department Managers Controllers Cost Accountants
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Components of Managerial Accounting
Internal Orders Cost Element Acct Profitability Analysis Activity Based Costing
Controlling (CO)
Cost Center Acct
Product Cost Controlling
Profit Center Acct
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Comparison
External Accounting
Balance Sheet Profit & Loss Statement
Managerial Accounting
Cost Center Accounting Profit Center Accounting Product Costing Profitability Analysis Different Valuations Flexibility
Legal Requirements Standards
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Comparative Reporting
Liquidity Calculation

External Reporting
Balance Sheet
Retained Earnings Report
Income Statement
Managerial Accounting (CO)

Internal Reporting
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Product Costs Reports
Cost Center Reports Profit Center Reports Profit Margin
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Interrelated and Closely Connected

(FI) Transaction Document Amount G/L Account # Cost Center 1900012432 (CO) Transaction Document Cost Center Cost Element 20000657
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Income Statement
Supplies Exp. 100 Bank
Bal. Sheet
100
Cost Center
100
Controlling
- The Basics -
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Unit 3, Part 2 Overview

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

There are five types of accounts contained in a Chart of Accounts
Assets Liabilities Equity Revenues Expenses
There are two primary accounting reports prepared from the General Ledger Chart of Accounts
Balance Sheet Income Statement
Balance Sheet Assets
Things of value that a company owns or controls that accountants have agreed to measure in monetary terms. Examples of these accounts include:
Cash Accounts receivables Plant and equipment Inventory
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Balance Sheet Liabilities
Things that a company owes or must provide services in order to settle that accountants have agreed to measure in monetary terms. Examples of these accounts include:
Accounts payable Notes payable Bonds payable Unearned revenue
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Balance Sheet Equity
Equity is simply the mathematical difference between assets and liabilities. Includes the monetary amounts collected with respect to all preferred and common stock transactions, the aggregate net income reported since organization of the company, and a reduction for dividends that have been paid to stockholders.
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Balance Sheet
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Income Statement Revenues
The monetary amounts collected from customers in settlement for goods purchased from our company or services rendered by our firm to them during the current fiscal year.
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Income Statement Expenses
The monetary amounts paid to vendors in settlement for goods purchased by our company or services rendered to our firm by other companies during the current fiscal year.
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Income Statement
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- Organizational Structures -
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FI
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Org Data
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Organizational Data
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Unit 3, Part 3 Org Structures
Organizational Structures
Client Company Chart of accounts Company code Credit control area
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Client
Highest hierarchical level in an SAP environment A complete database containing all the tables necessary for creating a fully integrated information system Master records are created at the client level
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Client
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Company
Consolidated financial statements are created at the company level A company can include one or more company codes All company codes must use the same chart of accounts and fiscal year Company is not required in the definition of an enterprise (optional)
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Organizational Structure
Client
Company
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Company Code
A legally independent entity The smallest organizational unit for which accounting can be carried out Business transactions are processed at this level Accounts are managed at this level Legal financial statements, such as the balance sheet and the income statement, are generated at this level using the General Ledger balances
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Client
Company
Company Code
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Chart of Accounts
A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are contained in the General Ledger A chart of accounts must be assigned to every company code in order to create the General Ledger for that company Several company codes can use the same chart of accounts
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Chart of Accounts
United States Chart of Accounts Canadian Chart of Accounts
Company Code 010

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Company Code 038
Company Code 110
Company Code 117

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Client Chart of Accounts
Company
Company Code
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Fiscal Year Variant
Specifies the accounting fiscal year for reporting purposes Special periods are created to aid in the quarterly or year-end adjusting process completed prior to preparing financial statements A single fiscal year variant is assigned to each company code
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Client Chart of Accounts Fiscal Year Variant
Company
Company Code
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Credit Control Area
An organizational unit or area of responsibility created to control customer credit limits A company code is assigned to one and only one credit control area Multiple company codes can be assigned to one credit control area
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Client Chart of Accounts Credit Control Area Company Code
Company
Fiscal Year Variant
Client Chart of Accounts Credit Control Area Company Code
Company
Fiscal Year Variant
Consolidation and Business Areas
Company
A company is an organizational unit in Financial Accounting which represents a business organization according to the requirements of commercial law in a particular country.
Business Areas
A unit in an enterprise that groups product and market combinations as homogeneously as possible for the purpose of developing unified business policy.
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Optional Organizational Structures

GM Corp. Chart of Accts GMCorporate Credit CA Client General Motors Corporate Fiscal Year Var.
Consolidation of Company Codes Chevrolet GMC Business Areas Cars Trucks

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Cadillac
Cars Trucks
Trucks
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Client 100
Credit Control Area Chart of Accounts
Pen Inc.
Fiscal Year Variant
Company Code
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Unit 3 Exercises
21. 22. 23. 24. 25. 26. 27. Create Company Code Create Chart of Accounts Assign Company Code to Chart of Accounts Assign Company Code to Fiscal Year Variant Create Credit Control Area Assign Company Code to Credit Control Area Assign Permitted Credit Control Area to Company Code
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Unit 4
Material Management (MM)
MM
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Org Data
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Organizational Data
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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
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Unit 4 Overview
Unit Concept Purchasing and SAP R/3 Procurement Process Organizational Structures Organizational Relationships Warehouse Management
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Unit Concept
The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization In this unit the structure required for the purchasing process is presented
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Purchasing and SAP R/3

The purchasing process exists in the Materials Management (MM) module of SAP R/3 and Finance (FI) module The structure includes elements of the Materials Management (MM) and Finance (FI) modules Master data for the purchasing process exists in the (MM) and (FI) modules The purchasing process can and does interface with the Production Planning (PP), Warehouse Management (WM), and Quality Management (QM) modules
Components of Materials Management
Valuation Logistics Invoice Verification Purchasing Material Master Inventory Mgmt. Physical Inventory MRP Service Entry Sheet Service Master
Foreign Trade/ Customs
Product Catalog
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Procurement Process
(Procure-to-Pay)
Purchase Order
Notify Vendor

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Organizational Structures
Plant Valuation Area Storage Locations Purchasing Organizations Purchasing Groups
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Plant
Lowest valuation area Organizational level where Material Requirements (MRP) runs Generally used to describe a production site, a distribution center or centralized warehouse May be a physical or logical unit
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Valuation Area
The valuation area determines at which level a material is valuated (inventory value is established) SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level
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Storage Location
Subdivision of a plant Where materials are managed (inventory management)

Raw Materials Maintenance, Repair, and Other (MRO) Finished Product
May be a physical or logical unit
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Organizational Relationships
Plant/Storage Location
Plant P001
Storage Location 10 - Inventory
Storage Location 20 - Quality
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Purchasing Organization
Organizational unit responsible for the procurement of materials and services. SAP requires that purchasing organizations be assigned at the plant level A purchasing organization can be assigned to more than one plant A purchasing organization can be assigned to a company code
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Plant/Purchasing Organization (1)
Plant P001
Purchasing Organization P001
One plant multiple purchasing organizations

Organizational Relationships (Continued)

Plant P001
Plant P002
Each plant has its own purchasing organization

Organizational Relationships (Continued)

Plant P001
Plant P002
One purchasing organization for multiple plants

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Organizational Relationships (continued)

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

Purchasing Group
Responsible for specified purchasing activities Often used to identify individual buyers Used for reporting
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Purchasing Organization/Purchasing Group
Purchasing Group 001
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Company Code C001

Plant P001
Storage Location 10 - Inventory
Storage Location 20 - Quality
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184
Warehouse Management
Not required for the purchasing functionality of SAP R/3 A separate module in the SAP R/3 environment Many functions and elements can be performed outside of the module
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Warehouse Management Elements
Receiving, identifying and sorting goods Placing goods into storage bins Taking inventory Monitoring and inspecting goods in storage Preplanning distribution of materials Picking and accumulating orders Packaging, loading and shipping goods
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Warehouse Management Relationships

Company C001
Inventory Management (MM)

Storage Loc. 10
Company Code
Plant P001 Plant P002
Plant
Storage Loc. 20 Storage Loc. 30 Storage Loc. 40
Storage Loc.
Warehouse 1 Warehouse 1
Warehouse
Aisle 1 Rack 1 Aisle 2 Rack 1 Aisle 3 Aisle 1 Rack 1 Aisle 2
Aisle Storage Rack

ABC123
Warehouse Management (WM)

July 2007
Quantity
187
Unit 4 Exercises
28. Verify Valuation Area 29. Define Plant (P_ _ _) 30. Define Storage Locations for Inventory and Quality 31. Define Purchasing Organization 32. Create Purchasing Groups 33. Assign Plant to Company Code 34. Assign Purchasing Organization to Company Code 35. Assign Purchasing Organization to Plant 36. Setup Parameter ID
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July 2007
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Unit 5
- Rules (Internal Controls) -
Rules
July 2007
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Unit 5 Rules
Rules
Account groups
BS Balance Sheet Account Group PL Income Statement Account Group RA Reconciliation Account Group
Field status variant

Field status groups
Fiscal year variant
July 2007
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Account Groups
Chrt/accts CHRT CHRT CHRT
Acct group BS PL RA
Description Balance Sheet Income Sheet Reconciliation
From 100000 400000 110000
To 399999 999999 310000
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Account Groups
Identifier that controls which fields must be entered when an account is created Determine a valid number interval for each of the groups (types) of General Ledger accounts that have common attributes Must be created before General Ledger Chart of Accounts master records can be created You must assign each account to an appropriate account group
Account Groups
Account Group BS
Account control Account management Document entry Bank/financial details Interest calculation Joint venture Account control
Currency Tax category Reconciliation account
Suppress
Req. entry
Opt. entry
Display
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Field Status
Field status controls how the data will be entered for a field when an accounting master record is being used in a transaction Determining whether a field is required, optional, suppressed, or display only Field status controls are also relevant to a specific activity create, change, or display
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Field Status Variant
Fld status groupText ZALL All Accounts ZBSA Balance Sheet Accounts ZEXP Expense Accounts ZGRI Material Management (GR/IR) Accounts ZRCN Reconciliation Accounts ZREV Revenue Accounts
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Field Status Variant

Field status variant (V000) - Group ZBSA - Balance Sheet Acct. General data Additional account assignments Materials management Payment transactions Asset accounting Taxes
...
General Data
Assignment number Text Invoice reference
Suppress
Req. entry
Opt. entry
Display
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So What is a Reconciliation Account?

Postings to sub-ledgers (such as accounts receivable or accounts payable) are automatically concurrently posted to the corresponding reconciliation account in the General Ledger In this way, the General Ledger is automatically updated and remains in balance with the customer and vendor individual account totals
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Unit 5 Exercises
37. 38. 39. 40. Create Account Groups Define Retained Earnings Account Review Field Status Variant Assign Company Code to Field Status Variant
July 2007
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Unit 6
- Master Data -
Master Data
FI
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203
Master Data

July 2007
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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
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Unit 6 Overview
General Ledger Master Data
Chart of Accounts Data Company Code Data Reconciliation Accounts
Accounts Receivable Accounts Payable Goods Receipt/Invoice Receipt
General Ledger Account Balances
July 2007
206
General Ledger Master Data
A unique master record is created for each General Ledger account General Ledger accounts are created at the client level Business transactions are posted to the portfolio of General Ledger accounts made available to a company through the assignment of a specific Chart of Accounts
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General Ledger Master Data (continued)

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

Balance sheet Income statement
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General Ledger Organization of the Data

Contains one or more Chart of Accounts specific information areas Contains one or more Company Code specific information areas In this way, a General Ledger master account can be shared by several combinations of Charts of Accounts and Company Codes
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209
General Ledger Chart of Accounts Data

Account number Name of the Chart of Accounts Account group provides information that controls the creation of the master record for a company code
Account number Chart of accounts
100101 CPEN
BS Account group P&L statement acct type Balance sheet account
July 2007
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General Ledger Company Code Data

Local currency Foreign currency Tax category Open item management Line item display Sort key
July 2007
211
General Ledger Company Code Data (continued)

Local currency
Specify the currency in which the account is to be posted Transaction figures are always updated and displayed in local currency
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212

Foreign currency
Specify the alternative currency in which the account is to be posted It is possible to select up to two alternative currencies Transaction figures will be updated in both the local and alternative currencies
July 2007
213
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Tax category
Specify the type of tax on purchase and sales (input or output taxes) that can be posted to the account If the account is not tax relevant, do not make a specification in this field
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214

Open item management
Indicates that the account is subjected to an affirmative clearing process involving the matching of debits to credits with the purpose of closing each individual line item For example, reconciliation accounts You can only archive an accounting document if all of its individual line items have been cleared
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Line item display
Select if it is desirable to view all the debit and credit detail for the account Remember that when posting items to such accounts and displaying line items, additional storage space and system time are required
July 2007
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Line item display should not be used for the following accounts:
Reconciliation accounts Accounts that have a summation function and are analyzed by another application such as revenue or stock accounts Output and input tax accounts, since tax information is required only in connection with the document
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217

Sort Key
Necessary when line item display is selected Determines the data field that will be used to sort the line items
Posting date Document date Cost center
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218

Reconciliation accounts
When you post to a sub-ledger, the system automatically concurrently posts to the corresponding reconciliation account in the general ledger In this way, the general ledger is automatically updated and remains in balance with the individual account totals
July 2007
219
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General Ledger
Debit Credit
$$ $$
General Ledger Reconciliation Accounts A/R, A/P, GR/IR
A/R
A/P
GR/IR
Debit Credit
Debit Credit
Debit Credit
$$ $$
$$ $$
$$ $$
Subsidiary Ledger Accounts A/R, A/P, GR/IR

220
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Accounts Receivable Reconciliation Account
Customer 189
Customer 142
100
300
Accounts Receivable Reconciliation
950
Customer 135 Customer 123
400
150
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221
Accounts Receivable Integration

MM
Materials Mgmt.
Goods Issue
FI
Sales Order
SD
FI
CGS Decrease to Inventory
FI
Revenue Increase to A/R Income Statement Balance Sheet
July 2007
222
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Accounts Payable Reconciliation Account
Vendor 100234
Vendor 100435
200
250
Accounts Payable Reconciliation
950
Vendor 100621 Vendor 100846
100
300
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223
Accounts Payable Integration

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

Account number 100999 Bank Account Company code C999
Period C/f bal. Period 1 Period 2 Period 1 Doc. no. 1500000013 1500000014 100000012 1400000342
July 2007
Debit 5,250.00 25,000.00
Credit 3,540.00 15,000.00
DC bal. 1,710.00 10,000.00
Balance 750,000.00 751,710.00 761,710.00
DT KZ KZ SA DZ
Doc.date 01/05/04 01/06/04 01/08/04 01/14/04
Currency USD USD USD USD
Amount 1,800.00 990.00 750.00 5,250.00

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41. Create Bank Account 42. Create Accounts Receivable Reconciliation Account 43. Create Trading Goods Inventory Account 44. Create Operating Supplies Inventory Account 45. Create Accounts Payable Reconciliation Account 46. Create Goods Receipt / Invoice Receipt Reconciliation Account 47. Create Output Tax Account 48. Create Input Tax Account 49. Create Retained Earnings Account 50. Create Common Stock Account
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226

51. Create Trading Goods Consumption Expense Account 52. Create Operating Supplies Expense Account 53. Create Utilities Expense Account 54. Create Purchase Price Difference Expense Account 55. Create Information Technology Expense Account 56. Create Miscellaneous Expense Account 57. Create Cost of Goods Sold 58. Run General Ledger List of Accounts Report
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Unit 7
- Master Data and Rules -
Master
MM
Rules
Data
MM
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230
Master Data
July 2007
231
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SD MM MM
Sales and and Sales Distribution Distribution Materials Materials Mgmt. PP Mgmt. Production SM Planning Service Mgmt.
FI
CO AM
R/3
IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Enterprise Client / Server Controlling Integrated Business PS Project Solution PM WF System
HR
Human Resources
Workflow
Industry Solutions Solution s
July 2007
232
Unit 7, Part 1 Overview (Master Data)

Unit Concept Procure-to-Pay Process Vendor Master Data Purchasing Information Record
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233
Unit Concept
The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization Master data and rules required for the purchasing process is presented
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Procurement Process
(Procure-to-Pay)
Purchase Order
Notify Vendor

235
July 2007
Master Data General
Business rules and supportive information are stored in master data records Each master data record is unique in name or number Internal or external number ranges are possible Usually created or converted (legacy system) in the beginning Maintained by numerous organizations
July 2007
236
Master Data General (continued)
Vendor master records are maintained by both accounts payable (A/P) and purchasing Material master records are maintained by purchasing, sales, production, accounting, etc. Purchasing information records are maintained primarily by purchasing
July 2007
237
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Vendor Master Organization of the Data
General Data
ta: l Da era Gen ddress A
Pu rch a Da sing ta
Company Code Data Financial Accounting (FI) Purchasing Organization Data (MM)
Vendor 10001
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238
Vendor Master Data
A master record must be created for every vendor General data, Company Code data (Financial Accounting - FI), and Purchasing Org data (Material Management - MM)
General data Address Control data Payment transactions
July 2007
Company code data Account management Payment transactions
Purch. org data Purchasing data Partner functions
239
Vendor Master
Includes all data necessary for processing business transactions and corresponding with vendors Information is shared between the accounting and purchasing departments
July 2007
240
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Vendor Master Typical Screens
Address Control Payment Transactions Accounting Information Correspondence Purchasing Data Partner Functions
July 2007
241
Vendor Master General Data Address
General Data Address Address Vendor Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail
July 2007
242
Vendor Master General Data Control Data

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

International locator number Industry Transport zone
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Vendor Master General Data Payment Transactions

Bank Details
Bank Key Bank Account Account Holder Partner Bank Type
Payment Transactions
Alternative Payee Instruction Key
July 2007
244
Vendor Master Company Code Accounting Information

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

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

Payment Methods Alternate Payee Payment Block
Invoice Verification
Tolerance Group
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Vendor Master Company Code Correspondence Accounting

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

Conditions
Order Currency Terms of Payment Incoterms Minimum Order Value
Control Data
Acknowledgement Required Returns to Vendor Automatic Purchase Order
Sales Data
Salesperson
Default Data Material

Purchasing Group Planned Delivery Time
July 2007
248
Vendor Master Purch. Org. Data Partner Functions

Partner Functions
Partner Function Partner Name
July 2007
249
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Vendor Master Purch. Org. Data Account Group

Vendor masters are assigned to a vendor account group Through field status maintenance, vendor account groups can be setup for one-time vendors, regional vendors, and internal vendors The vendor account group controls both type and number range assignment for vendors
July 2007
250
Purchasing Info Record
The purchasing info record provides continuously updated information about the relationship of a specific material with a specific vendor Order unit, price, price changes, tolerances, reminder infos, historic data, statistics, texts Choice of automatic or manual updating
July 2007
251
Source List
The source list stores information about where to acquire a given material for a given period of time It specifies whether this source should be used by Materials Requirement Planning (MRP)
July 2007
252
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59. 60. 61. 62. 63. 64. Vendor Account Groups Create Vendor Master Accounting Record Create Vendor Master Purchasing Record Create Vendor Master Record Centrally Create Vendor Master Record Centrally Create Vendor Master Record Centrally
July 2007
253
Unit 7, Part 2 Overview (Rules)

Fiscal Period Plant Parameters MRP
July 2007
254
Rules
July 2007
255
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Fiscal Period
In order to execute any material postings, the current fiscal period has to be activated By initializing the company code for material management, the first major integration between Financial Accounting (FI) and Logistics is completed
July 2007
256
Plant Parameters
Material Requirements Planning (MRP) controllers

Individuals responsible for running and maintaining Material Requirements Planning data and reports
Negative stock allowance

If a material is allowed to go negative for inventory stock
July 2007
257
Plant Parameters (continued)
Purchasing
Special purchasing rules External purchasing only settings
Planned orders
Rescheduling Conversion to purchase requisitions
July 2007
258
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Plant Parameters (continued)
Document number ranges

Planned orders Purchase requisitions Material Requirements Planning (MRP) lists Reservations
July 2007
259
Material Requirements Planning

Detailed planning level Primary Functions
Monitor inventory stocks Determine material needs
Quantity Timing
Generate purchase or production orders
July 2007
260
Materials Requirements Planning (continued)

Integrates Production Planning (PP) module with the Materials Management (MM) module Prerequisites for Materials Requirement Planning (MRP)
Activate Material Requirements Planning (MRP) for a plant Material Master created
Material Requirements Planning view Material Requirements Planning type
July 2007
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Material Requirements Planning Basic Process

Exploding the Bill of Material (if using production) Netting Out Inventory Lot Sizing Time-phasing requirements
July 2007
262
Material Requirements Planning Net Requirements

Material Requirements Planning (MRP) calculates the quantity of material needed, if any, based on
Sales Orders Material Reservations Repair Parts Inventory Purchase Orders Etc
July 2007
263
Material Requirements Planning Net Requirements (continued)

If adequate inventory is not available to meet Material Requirements Planning (MRP) needs then the system generates
Planned Production Orders Planned Purchase Orders
July 2007
264
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Material Requirements Planning Lot Sizing

Static
Based on fixed values in the Material Master
Periodic
Groups net requirements together from multiple periods
Optimum
Calculates the optimum lot size for a several periods of net requirements
July 2007
265

65. Initialize Fiscal Period for Company Code 66. Display Material Groups 67. Maintain Plant Parameters for Material Management 68. Activate Materials Requirements Planning
July 2007
266
Unit 7, Part 3 Overview (Material Master)

Industry Sector Material Type Maintenance Features Organizational Levels Primary Views
July 2007
267
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Material Master Industry Sector
Records are grouped according to industry sector and material type Determines the industry specific data that will appear on the master record
July 2007
268
Material Master Material Type
Material types group materials with the same attributes Material type information determines:
What views are maintained Whether internal or external procurement is allowed If changes in material quantity are updated Which general ledger accounts are updated
July 2007
269
Material Master Material Types
Standard material types are used in all industries.

ROH: Raw Materials
Purchased externally only No sales view
HAWA: Trading Goods

Always purchased externally Sold without any change to the material No manufacturing views exist
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Material Master Material Types (continued)

FERT: Finished Products
Are produced internally Normally no purchasing views exist
July 2007
271
Material Master Additional Material Types

HIBE: VERP: LEER: KMAT: ERSA: DIEN: Operating Supplies Customer returnable packaging Empty containers Configurable material Spare parts Services
July 2007
272
Material Master Additional Material Types (continued)

NLAG: UNBW: FHMI: WETT: PROD: IBAU: Non-stock, non-valuated material Non-valuated, stocked material Production resources/tools Competitive products Product group Maintenance assembly (Plant Maintenance)
July 2007
273
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Material Master Maintenance

Defaults - speeds entry of data by using the most frequently used field values (plant, purchasing organization, etc.) Reference Material - speeds entry of data by copying data from existing material master Profiles - speeds entry of data by copying standard data created in a profile into a selected view Materials Requirements Planning (MRP) Collective entry of storage location data - speeds creation of multiple storage locations
Material Master Data
Material master data can be related to all organizational levels General information of a material (description, number, base unit of measure)
Has to be related to the highest level of organization the client
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275
Material Master Levels
Client
Description Units of measure Material number Engineering data
Plant
Planning data Manufacturing data Purchasing data
92
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Material Master Levels (continued)

Storage Location
Stock quantities
July 2007
277
Material Master Views
Basic data 1, 2 Classification Sales: sales organization data 1, 2 Sales: general/plant data Sales text Purchasing Purchase order text Forecasting
July 2007
Material Master Views (continued)
MRP 1, 2, 3, 4 Work scheduling Storage Warehouse management Quality management Accounting 1, 2 Costing 1, 2
July 2007
279
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Material Master Material Management

Basic Data Purchasing MRP 1,2,3 General Plant Data/Storage Accounting 1
g sin cha Pur iew V
MR P Vie 1 w
Barrel Pen
July 2007
280
Material Master Basic Data

General data
Basic Unit of Measure
Unit of measure in which stocks of the material are managed
Material Group
Key that you use to group together several materials or services with the same attributes
Division
Used to determine the sales area and the business area for a material, product, or service
July 2007
281
Material Master Basic Data (continued)

Dimensions/EANs
Gross weight
Used to check storage capacity in warehouse
Net weight
Weight excluding packaging and extras this is needed for sales and distribution
Weight Unit
Unit of Measure for weight
Volume
The space that the material occupies per unit of volume
July 2007
282
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Material Master Purchasing View

General Data
Order Unit
The unit of measure in which a company purchases the product
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities.
Purchasing Values
Purchasing Value Key
Define the reminder days and tolerance limits for purchasing
July 2007
283
Material Master Plant Data/Storage 1

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

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

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

General Data
Purchasing Group
The buyer(s) who are responsible for certain purchasing activities
MRP Procedures
MRP Type
Determines whether and how the material is planned
Reorder Point
If stock falls below this point, the system is flagged to create a planned order
MRP Controller
The person(s) responsible for the material planning
July 2007
285
95
Version 4.1
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Material Master MRP 1 (continued)

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

The smallest order quantity
Fixed Lot Size

The quantity to be ordered
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Scheduling
Planned Delivery Time
Number of calendar days needed to obtain the material
Scheduling Margin Key

Used to determine the floats required for scheduling
Net Requirement Calculation

Safety Stock
Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period
July 2007
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Availability Check
Specifies whether and how the system checks availability and generates requirements for materials planning
July 2007
288
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Material Master Accounting 1

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

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

69. Define Attribute for Material Types (Set Updating/Deselect Classification) 70. Create Material Master for Trading Goods 71. (Optional Exercise) Create Material Master for Operating Supplies
July 2007
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Unit 8
- Rules -
FI
Rules
July 2007
293
Rules
July 2007
294
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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
295
Unit 8 Overview
Posting Periods Tolerance Groups for Account Postings Accounts Payable Settlement Document Numbers
July 2007
296
Posting Periods
Before it is possible to post documents, it is necessary to define posting periods Fiscal years are divided into one or more posting periods Each posting period is delimited by both a start and finish date A common division of a fiscal year involves defining 16 posting periods -- 12 months and 4 quarter ending posting periods
99
Version 4.1
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Tolerances Groups for Account Postings

Internal control amount limits that serve to define the maximum authorization levels for your employees
Must be at least one entry for every company code Can be defined for an employee group with employees being assigned to a given group to effect the control Can be undefined at the group level meaning that the control is effective for everyone who is not a member of a group
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298
Tolerances Groups for Account Postings (continued) Internal control amount limits that serve to define the maximum authorization levels for your employees with respect to:
A single transaction A customer or vendor account line item Discount percentage granted to a line item Payment differences that can be accepted in settlement of an account (e.g., accounts payable)
July 2007
299
Accounts Payable Settlement
Purchase Order Payment Program Invoice Receipt

Debit Credit
Verification
Goods Receipt
100
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Accounts Payable Settlement (continued)

Select payment method and bank Select items for payment Calculate the payment amount, taking account of cash discount periods Post the payment document Print payment medium
July 2007
301
Document Numbers
All posted transactions must have a unique number assigned to it Usually these numbers are system generated The numbers serve to specifically identify the business content of a transaction so that it may be recalled at a later time The actual system stored document number includes information respecting the year, date, and company codes
Document Numbers (continued)
Before any documents can be posted to a company or company code, there must be a number range assigned to the document type New transaction document number ranges must be created at the start of each new fiscal year
July 2007
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Version 4.1
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Unit 8 Exercises
72. Define Posting Periods Variant 73. Open and Close Posting Periods 74. Assign Posting Periods Variant to Company Code 75. Create Tolerance Groups for Account Postings 76. Setup Payment Program 77. Create Tolerance Groups for Accounts Receivable and Accounts Payable 78. Create Financial Accounting (FI) Document Numbers
July 2007
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Version 4.1
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Unit 9
- Transactions -
FI
July 2007
308
Transaction Data
July 2007
309
103
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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
310
Unit 9 Overview
Document Principles Document Types Posting Keys
July 2007
311
Document Principles
Each completed accounting transaction writes data to the database and creates a unique electronic document Each document contains information such as:
Responsible person Date and time of the transaction Commercial content including company codes
July 2007
312
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Document Principles (continued)
An accounting document captures the entire transaction in a manner that facilitates recall for reporting purposes It remains as a complete unit in the system until archived Once created, a document can not be deleted from the database
July 2007
313
The SAP R/3 document principle provides a solid framework for a strong internal control system Audit trails allow an accountant to begin with an account balance on a financial statement and trace through the accounting records to the transactions that support the account balance or to trace individual transactions to the effected account balance(s) on a financial statement
Each posted accounting document has a header
July 2007
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Each posted accounting document has at least two lines (e.g., debit and credit)
July 2007
316
Document Types
A way to categorize different transactions

Many different document types are supplied in the system
Document types are associated with number ranges

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

Document Types (continued)
SA General ledger account documents DR Customer invoices DG Customer credit memos DZ Customer payments KR Vendor invoices KG Vendor credit memos KZ Vendor payments KN Vendor net invoices and credit memos
July 2007
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Version 4.1
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Posting Keys
Determine whether the item to be posted is a debit or a credit Determine the type of account that can be posted
July 2007
319
Posting Keys (continued)
The posting key (PK) has a control function that pertains to the document line items. It determines the following: Account type for posting the line item Debit or credit posting of line items Field status for additional information
July 2007
320
Posting Keys (continued)

General Ledger 40 50
Common Posting Keys

2
Vendors 3
Assets 70 75 89
Material 99
Customers 0 1
July 2007
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Version 4.1
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Unit 9 Exercises
79. 80. 81. 82. Review Document Types Post Initial Cash Investment by Owners Post Purchase of Operating Supplies Display and Review General Ledger Account Balances and Individual Line Items
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July 2007
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108
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Unit 10
- Transactions -
FI
July 2007
326
Transaction Data
July 2007
327
109
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July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
328
Unit 10 Overview
Monthly Rent Cycle Invoice Receipt Invoice Entry Accounts Payable Settlement
July 2007
329
Monthly Rent Cycle
Rental Agreement
Invoice Receipt
Accounts Payable
July 2007
330
110
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Invoice Receipt
Invoice Receipt
July 2007
331
Invoice Entry
Vendor Information
July 2007
332
Select payment method and bank Select items for payment Calculate the payment amount, taking account of cash discount periods Post the payment document Print payment medium
July 2007
333
111
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Unit 10 Exercises
83. 84. 85. 86. Create Vendor Master Record for Landlord Create Rent Expense Account Create Invoice Receipt for Rent Expense Display and Review General Ledger Account Balances and Individual Line Items 87. Display and Review Vendor Account Balances and Individual Line Items 88. Post Payment to Landlord 89. Display and Review General Ledger and Vendor Account Balances and Individual Line Items
July 2007
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July 2007
335
July 2007
336
112
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Unit 11
- Rules -
MM
Rules
July 2007
338
Rules
July 2007
339
113
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SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
340
Unit 11 Overview
Reservations Tolerances
Purchasing Goods Receipt Invoice Receipt
Automatic Account Assignment Invoice Verification
July 2007
341
Reservations
A request to have a material ready for issue at a future date for a production order, sales order, etc. The purpose of a reservation is to ensure that a material is available when required and not assigned to another use
July 2007
342
114
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Purchasing Tolerances
A tolerance limit is set for allowed variance before a warning/error message is displayed
Price variance
Compares the price in the purchase order with the valuation price stored in the material master
Maximum cash discount

This tolerance limit is set to assure that cash discounts do not exceed allowable discounts
July 2007
343
Goods Receipts Tolerances
Purchase order price quantity there are two tolerance levels maintained per item
The maximum percentage variance before a goods receipt postings is not allowed A percent variance that generates a warning message but allows posting
Moving average price variance the maximum allowable moving average price change allowed
July 2007
344
Invoice Receipts Tolerances Many tolerance limits that can be configured for invoice receipts: price, quantity, and blanket purchase orders These tolerances include:
Amount for item with or without order reference Form small differences automatically Percentage Over/Under Quantity Variance Exceed amount: quantity variance Blanket purchase order value and time limit Price variance
July 2007
115
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Automatic Account Assignment

Automatic account assignment is created to avoid manual postings of financial transactions which follow goods movements to reflect the values of transferred materials Automatic account assignment is used across all modules to keep track of the values of materials that are being consumed (e.g., production), or transferred into other valuation areas of the company
July 2007
346
Automatic Account Assignment (continued)

Automatic account assignment is a set of rules and master data which enable the financial tracking of logistics movement
July 2007
347
Automatic Account Assignment Components

Components of Automatic Account Assignment
Chart of Accounts Valuation Grouping Code Transaction Key Modifier for Transaction Key Valuation Class
July 2007
348
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Automatic Account Assignment Valuation Grouping Code

Valuation grouping code - groups valuation areas together
Example: valuation area is plant, five plants exist in the company, all five plants use the same accounts. Multiple valuation groups are possible
July 2007
349
Automatic Account Assignment Valuation Grouping Code

Grouping Code G001 Plant P001 Grouping Code G002 Plant P004
Plant P002
Plant P005
Plant P003
July 2007
350
Automatic Account Assignment Transaction Keys

Transaction Keys
The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system. The transaction keys are defined in the system.
July 2007
351
117
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Automatic Account Assignment Transaction Keys Transaction Keys

Inventory Postings
BSX
Offsetting Entry for Inventory Postings

GBB
Materials Management Small Differences

DIF
Cost (price) differences (PPV)

PRD
Goods receipt / inv. receipt clearing acct

WRX
Automatic Account Assignment Modifier

Modifier modifies the transaction key for various movement types
Blank Goods receipt from purchase order with account assignment VBR Goods issue to consumption VAX Goods issue to sales post to cost of goods sold AUF Goods receipt from a production order post to production settlement Etc. Many others
July 2007
353
Material Types & Valuation Classes
Account category reference:

Builds the link between material types and the valuation class(es)
Material Type ROH HIBE HAWA FERT Account Category Reference 0001 Reference for Raw Materials 0002 Reference for Operating Supplies 0005 Reference for Trading Goods 0009 Reference for Finished Products Valuation Class 3000/3001/3002/3003 3030/3031 3100 7920
July 2007
354
118
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Material Types & Valuation Classes
Valuation Class 3000 (Steel)
Material Type ROH (Raw Material)
Acct Cat. Ref 0001 Raw Materials
Valuation Class 3001 (Paper)
Valuation Class 3003 (Plastics)
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355
Valuation Class 3100 (Trading Good)
Plant P001
Plant P002
Plant P003
Grouping Code G000
Grouping Code G000
Grouping Code G001
Goods Movement GBB (Goods Issue)
Account Modifier VBR (Iss. To Cons.)
Account 790000
July 2007 SAP AG and The Rushmore Group, LLC 2007
Account 790001
356

Where Value is recorded: Chart of Accounts
What:
Where Valued:
Why 1: Goods Movement Transaction Event Key
Why 2: Additional Information Account Modifier
Material Represented By: Points To: Valuation Class Material Type
Valuation Area Valuation Grouping Code Plant
G/L Account
What:
Where Valued:
Why 1:
Why 2: Issued to Consumption VBR
Where Value is recorded: Chart of Accounts C000 790000
BPEN000 Represented By: Points To:

July 2007
Plant P001 G000 Plant P001
Good Issue GBB
3100 HAWA
357
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Goods Receipt
Materials can be received as stock items or nonstock items Receipt is possible from external or internal sources Individually / collectively Tolerance limits can be set for goods receipt Special movement type for initial inventory load
July 2007
358
Goods Receipt (continued)
Stock items can be received into restricted or unrestricted stock Non-stock items are received into orders, projects, cost centers Materials that are usually received into inventory can also be received into orders, projects, cost centers
July 2007
359
Set parameters for invoice verification

Quantity, price, receiving date, P/O quantity Updates material master if moving average price Automatic account assignment for price differences if allowed
Verify actual versus target
July 2007
360
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3-Way Match
Purchase order - Target quantity - Target price -
Invoice receipt - Actual price -
Goods receipt - Actual quantity 361
July 2007
Purchase Order Payment Program Invoice Receipt Verification

Debit Credit
Goods Receipt
July 2007
362

90. Set Default Values for Inventory Management Reservations 91. Maintain Purchasing Tolerance Limits 92. Maintain Goods Receipt Tolerances 93. Maintain Invoice Receipt Tolerances 94. Set (Review) Valuation Control 95. Assign Valuation Area Grouping 96. Define (Review) Valuation Classes
July 2007
363
121
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97. Configure Automatic Postings for Goods Movement 98. Configure Automatic Postings for Taxes 99. Set Parameters for Invoice Verification 100. Create Default Values for Invoice Verification
July 2007
364
July 2007
365
July 2007
366
122
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Unit 12
- Transactions -
MM
July 2007
368
Transaction Data
July 2007
369
123
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July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
370
Procurement Process
(Procure-to-Pay)
Purchase Order
Notify Vendor

371
July 2007
Basic Procurement Process
Requirements Determination - Purchase Requisition Vendor Selection Order Processing - Purchase Order Order Tracking Goods Receipt and Inventory Management Invoice Verification Payment
124
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Purchase Requisitions
Internal document Requesting a certain quantity of material or service on a certain date Can be created:
Manually Automatically (Materials Requirements Planning (MRP), sales orders, etc.)
Release approval procedures are optional
July 2007
373
Purchase Requisitions Sources

Manually created by user department
Office supplies Projects Prototype materials
Automatically created by
Planning (Material Requirements Planning (MRP), Master Production Schedule (MPS)) Plant Maintenance Production Orders Sales Orders
Purchase Requisitions Processing
Create purchase requisition (manually or automatically) Determine source of supply Release procedure (optional) Assign vendor and process
July 2007
375
125
Version 4.1
July 2007
Purchase Requisitions Creating

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

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

Cost center, General Ledger accounts, project number, etc.
Check data Save
July 2007
376
Purchase Orders
Purchase Orders are:
A formal request to a vendor to provide materials or services An internal planning and tracking tool
Purchase Orders identify:

Vendor Material and/or service Quantity and price Delivery dates Terms of payment
July 2007
377
Purchase Order Structure Header

Header - information specific to the entire purchase order
Vendor Currency Payment terms
July 2007
378
126
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Purchase Order Structure Line Items

Line item details
Account assignment Delivery schedule Materials or services quantity Price Description Item category
July 2007
379
Purchase Order
Request for Quotations Purchase Order Order Acknowledgment
July 2007
380
Purchase Order Output Format
Printed and mailed E-mail Electronic Data Interchange (EDI) Faxed (hardcopy or electronic) eXtensible Markup Language (XML)
July 2007
381
127
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Goods Receipt
Goods receipt with reference to a purchase order

Copy data from purchase order Delivery notification Invoice verification Updates purchase order history Inventory update Automatic update of General Ledger (G/L) accounts
July 2007
382
Goods Receipt (continued)
You can search for the purchase order number with

Material number, vendor number, etc.
July 2007
383
Goods Receipt Destinations

Stock - given a storage location, can be posted to three different stock statuses
Unrestricted-use Quality inspection Blocked stock (valuated)
Consumption - can be assigned a recipient or unloading point Goods receipt for blocked stock - updates inventory, but material is not valuated (conditional acceptance)
128
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Goods Receipt Movement Types
Movement types - stock transactions

Goods receipt Goods issue Stock transfer
Movement type determines which

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

101 - goods receipt for purchase order into warehouse/stores 102 - reversal of goods receipt for purchase order into warehouse/stores 122 - return delivery to vendor 501 - receipt w/o purchase order into unrestricted-use stock
July 2007
386
Goods Receipt Account Postings
Inventory account is debited at standard price Goods Receipt/Inventory Receipt (GR/IR) clearing account is credited at purchase order price Price difference account is debited (credited) with difference between standard price and purchase order price
July 2007
387
129
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Goods Receipt Effects
Purchase Order (PO) history and Purchase Order (PO) updated Material Master - stock and value updated Notification of goods receipt issued (optional) Transfer request to Warehouse Management system (if active)
July 2007
388
Goods Receipt Effects (continued)
Material and financial documents created and/or updated Stock and consumption accounts updated Inspection notification in Quality Management (QM) - if active
July 2007
389
Matches the vendors invoice to the purchase order and the goods receipt (3rd part of 3-way match) Matches price and quantity Updates the purchase order and its history Updates accounting information
July 2007
390
130
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Invoice Payment
Selects invoices for payment based on the payment terms in the vendor master or purchase order Generates payment for released invoices Updates accounting information
July 2007
391
3-Way Match for Payment
Purchase Order Payment Program Invoice Receipt Verification

Debit Credit
Goods Receipt
July 2007
392
Accounts Payable Settlement Process

Determines:
Open items to be paid When they will be paid Bank from which payment will be made Payment medium Who will get paid
Payment process creates a financial accounting document to record the transaction
July 2007
393
131
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Goods Receipt / Invoice Receipt Reconciliation Account
Purchase requisition Purchase order Goods receipt
No impact on Financial Accounting (FI) Materials Management (MM) and Financial Accounting (FI) via automatic account assignment GR / IR Dr Cr $100
Inventory Dr $100 Cr
July 2007
394
Goods Receipt / Invoice Receipt Reconciliation Account
Invoice receipt
Amount owed is assigned and transferred to vendor account payable
GR / IR Dr $100 Cr
Vendor A/P Dr Cr $100
July 2007
395
Vendor Payment
Bank
Amount owed is paid to vendor and account payable is reduced
Bank Dr Cr $100
Vendor A/P Dr $100 Cr
July 2007
396
132
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(FI MM) Integration Points
Goods Receipt
Inventory
Dr Cr Dr
Invoice Receipt
GR / IR
Cr Dr
Payment Program
Bank
Dr Cr Cr
AP (Vendor) $100 $100
$100
$100
$100
$100
July 2007
397
Debit posting $100 BSX - inventory posting to trading goods inventory account 201XXX
Credit posting $100 WRX goods receipt posting to GR/IR account 310XXX
July 2007
398
Unit 12 Exercises
101. 102. 103. 104. 105. 106. Create Purchase Order for Slick Pens Create Purchase Order for Premier Pens Create Purchase Order for Promotions, Ltd. Create Goods Receipts for Purchase Orders Create Invoice Receipts from Vendors Post Payment to Vendors
July 2007
399
133
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July 2007
Unit 13
- Transactions -
MM
July 2007
401
Transaction Data
July 2007
402
134
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
403
Unit 13 Overview
A company may want to establish a long term purchasing relationship with a vendor Its is accomplished through a purchasing contract (outline agreement or blanket order) Purchases of that material from that vendor are then simplified and streamlined
July 2007
404
Buyer/Supplier Relationships
Antagonistic parties view each other as the enemy (lose/lose) Adversarial each party attempts to maximize their gain (win/lose) Cooperative parties understand the benefits of working together (win/win) Collaborative parties look for opportunities to create value (win/win)
July 2007
405
135
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Buyer/Supplier Relationships
Long term partnerships are the objective of the supplier evaluation and selection process for contracts Traditional purchasing process
Creates an environment of mistrust and low bidder mentality Leads to higher total purchasing costs
July 2007
406
Supplier Evaluation and Selection
Identify need for long term supplier contract Determine specific sourcing requirements Identify potential suppliers Determine method of evaluating suppliers Select supplier for contract Negotiate and execute contract
July 2007
407
Benefits of Managing the Supply Base

Contract with only world-class suppliers The fewer suppliers the lower the purchasing overhead Purchasing can pursue strategic sourcing issues, instead of clerical functions Streamline the supply chain Improved overall quality Improved delivery performance
136
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Outline Agreement
Long-term purchase agreements Outline agreements can be subdivided into the following types:
Contracts Scheduling agreements
Outline agreements can be subject to a release (approval or clearance) procedure
July 2007
409
Contract Process Overview
Step one is to identify and evaluate suppliers It may involve supplier development The goals are:
Develop partnerships with good suppliers Reduce total cost of purchased materials and services
July 2007
410
Contracting Questions
How will potential suppliers be evaluated and selected? What procedures will be required to manage the contracts (and suppliers)? How will performance be measured? How many are too many suppliers?
Too many suppliers cost money Supplier integration Collaborative agreements Supplier development Without material production shuts down
What is the risk?

137
Version 4.1
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Contract Management
Supplier performance metrics
On-time delivery Material and/or service quality Returned materials Expedite issues Pricing analysis
Problem resolution procedures

Improve or else Continuous improvement process
When to end the contract

Creating a Contract
Is a long-term agreement with a vendor to provide a material or service

For an agreed upon period of time At a negotiated price or quantity
Can be created manually or with reference to purchase requisition, Request for Quote (RFQ)/quotation etc.
July 2007
413
Two Types of Contracts
Quantity contracts are agreements with a particular vendor to purchase a specific quantity of materials. Example: Target quantity of 50,000 meters of electrical wire at $2/meter. (MK) Value contracts are similar to quantity contract except the agreement is to purchase an established monetary value of materials. Example: Target value of $100,000 for electrical wire. (WK)
138
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Quotations/Contracts Process
Requirement for material is identified Process followed to select a vendor

Request for Quotation (RFQ) Maintaining a Quotation Comparison of Prices Creating a Contract Creating a Release Order
July 2007
415
Request for Quotation (RFQ)
Is an invitation to a vendor to indicate their terms and conditions (in particular, their price) for the supply of a material or the provision of a service by submitting a quotation Identifies the required material, quantity, and delivery dates
July 2007
416
Quotation
A quotation contains the vendor's pricing and conditions for providing the material or service stated in the Request for Quotation (RFQ) In the SAP component Materials Management (MM) Purchasing, the RFQ and quotation are the same document. You enter the vendor's pricing and conditions in the original RFQ.
July 2007
417
139
Version 4.1
July 2007
Maintaining a Quotation
Enter each vendor's quotation in the associated Request for Quotation (RFQ) Compare prices using the price comparison list Store the best quote in an info record Optionally, send rejection letters to the losing bidders
July 2007
418
Comparison of Prices
You can compare the prices from all quotations from the competitive bidding process using the price comparison list The comparison list ranks the quotations by item from lowest to highest price
July 2007
419
Creating a Release Order
Purchase order that references a contract is called a release orders, they specify:
Number of the contract Quantity to be released Delivery date
Release order documentation (open quantity, quantity released to date, total value) is automatically updated against the contract when a release order is created
140
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Creating a Release Order (continued)
The vendor data, price data, and the delivery terms and conditions are copied directly to the release order Release orders can be created from a proposed purchase requisition generated off an Materials Requirement Planning (MRP) run (net requirements)
Manually Automatically
Unit 13 Exercises
107. Create Purchase Outline Agreement (Contract) for Stock Items 108. Run Materials Requirements Planning Single Item, Single Level 109. Convert Proposed Purchase Requisition to Release Order 110. Review Outline Agreements 111. Create Goods Receipt 112. Create Invoice Receipt from Vendor 113. Post Payment to Vendor
July 2007
422
July 2007
423
141
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Unit 14
SD
July 2007
Org Data
425
Organizational Data
July 2007
426
142
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
427
Components of Sales and Distribution
Shipping Transport Sales Support Master Data Sales Credit Mgmt. Billing Foreign Trade Sales Information System
July 2007
428
Sales Organization
Sales Organization
Sells and distributes products Negotiates terms of sales Responsible for these business transactions
Critical organization element to the definition of business markets A sales transaction is linked to only one Sales Organization
July 2007
429
143
Version 4.1
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Sales Organization (continued)
US Sales S000
July 2007
430
Distribution Channel
Identifies how products and services reach the customer Can be assigned to one or more Sales Organizations
July 2007
431
Distribution Channel (continued)
US Sales S000
Retail Dist Channel (RE)
Wholesale Dist Channel (WH)
July 2007
432
144
Version 4.1
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Division
Often times used to define product line distribution Organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery) Assigned to one or more Sales Organizations
July 2007
433
Division (continued)
US Sales S000
Medical Division
Chemical Division
July 2007
434
Sales Area
Sales Area comprised of:

Sales Organization Distribution Channel Division
Will be used to link together the organizational aspects of sales to customers Used for statistical analysis
July 2007
435
145
Version 4.1
July 2007
Sales Area (continued)
US Sales S000
Medical Division
Chemical Division
Medical Division
Chemical Division
July 2007
436
Sales Area (continued)
US Sales S000
Medical Division
Chemical Division
Medical Division
Chemical Division
July 2007
437
Internal Sales Organization
Typically defines a territory or market Linked to one or more Sales Areas Optional organization structure
July 2007
438
146
Version 4.1
July 2007
Sales Office
US Sales S000
Eastern Sales
Western Sales
July 2007
439
Sales Group
Sales Group
Sub-division of a sales office, territory or market
July 2007
440
Sales Person
Sales Person
Defined in Human Resources (HR) Personnel Admin. Specifically defines an individual rather than a position (sales rep.) in sales processing
July 2007
441
147
Version 4.1
July 2007
Internal Sales Organization

US Sales S000
Eastern Sales
Western Sales
Northeast Sales Group

Salesperson 1 Salesperson 2
July 2007
Southeast Sales Group

Northwest Sales Group

Southwest Sales Group

442
Shipping and Loading Points
Shipping Point
Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point
Loading Point
A subdivision of the shipping point used for more specialized handling
July 2007
443
Shipping Organization
Plant P000
Freight Dock FD00
Express Dock ED00
Rail Dock RD00
Loading Point 1
Loading Point 2
Loading Point 3
Loading Point 4
July 2007
444
148
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114. 115. 116. 117. 118. 119. 120. 121. 122. Create Sales Organization Assign Sales Organization to Company Code Define Distribution Channels Assign Distribution Channels to Sales Organization Define Common Distribution Channels Define Division Assign Division to Sales Organization Define Common Divisions Setup Sales Areas
July 2007
445

123. Define Loading Groups 124. Create Shipping Point 125. Assign Plant to Sales Organization and Distribution Channel 126. Assign Shipping Points to Plant
July 2007
446
July 2007
447
149
Version 4.1
July 2007
Unit 15
- Master Data -
Master Data
SD
July 2007
449
Master Data

Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data
Before making the Master Data configurations, you must have completely defined the organizational structures
July 2007
450
150
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
451
Master Data Core Elements

Customer
Master Data
Material
Pricing
July 2007
452
Material Master Sales Views

Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text
1 rg. sO Sale iew V
Sa les O Vie rg. 2 w
Barrel Pen
July 2007
453
151
Version 4.1
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Material Master Sales: Sales Org. 1 View

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

Delivering Plant
Plant from which the material is available for sale.
Cash discount
Indicator used for materials, which allow for a cash discount.
Conditions
Pricing procedure for the material
Tax Data
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents

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

Minimum quantity that may be delivered to a customer
Delivery Unit
The delivery unit consists of a number and a unit of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
July 2007
456
152
Version 4.1
July 2007
Material Master Sales: Sales Org. 2 View

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

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

Group definition used for rebate settlement.
General Item Category Group

Materials grouping that helps the system to determine item categories during sales document processing.
July 2007
457

Grouping Terms
Item Category Group
A grouping of materials that the system uses to determine item categories during the processing of sales documents.
Commission Group
Commission group to which the material is assigned.
July 2007
458
Material Master Sales: General/Plant View

General Data
Base unit
The unit of measure in which items are managed in the company
Gross weight
Used to check storage capacity in warehouse
Net weight
Weight excluding packaging and extras this is needed for sales and distribution
Avail. Check
Option to do an availability check for orders and MRP
July 2007
459
153
Version 4.1
July 2007
Material Master Sales: General/Plant View (continued)

Shipping Data (times in days)
Transportation Group
Group materials that have the same transportation requirements. For example, bulk stock materials
Loading Group
Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.
July 2007
460
Material Master Sales: General/Plant View (continued)

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

Negative stock
Indicates if negative stocks of the material are allowed at the plant
Profit Center
Identifies the profit center in the current controlling area
July 2007
461
Material Master Sales: Sales Texts View

Sales Texts
Exchange of information throughout the logistics chain In sales and distribution, this exchange of information is supported by texts in master records and documents You can define as many text types as you require (sales texts, shipping texts, internal notes, supplement texts etc.) for master records and documents
July 2007
462
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127. Create Sales Views for Trading Goods 128. Create Sales Revenue Account 129. Create Sales Revenue Deduction Account
July 2007
463

Customer
Master Data
Material
July 2007 SAP AG and The Rushmore Group, LLC 2007
Pricing
464
Customer Master
Customer Master Data is created by Sales Area

Sales Organization Distribution Channel Division
Sales Area
US Sales S000
Distribution Channel - RE
Division - 01
July 2007
465
155
Version 4.1
July 2007
Customer Master - (continued)
General Data
ta: l Da era Gen ddress A
Sa les Sa Data les :
Company Code Data Financial Accounting (FI) Sales Data Sales and Distribution (SD)
Customer 43
July 2007
466
Customer Master
A master record must be created for every customer General data, Company Code data (Financial Accounting - FI), and Sales Org. data (Sales and Distribution - SD)
General data Address Control data Payment transactions
July 2007
Company Code data Account Mgmt Payment transactions Correspondence
Sales Org. data Sales Shipping Billing Partner Usage

467
Customer Master General Data Address
General Data Address Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail
156
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Customer Master General Data Control Data

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

Customer Master General Data Payment Transactions

Bank Details
Country Bank Key Account holder Bank Account Control Key Collection
July 2007
470
Customer Master General Data Marketing

Classification
Nielsen ID Customer classification Industry Industry codes
Operating Figures
Annual sales Number of employees Fiscal year variant
Sales Prospecting
Legal status
157
Version 4.1
July 2007
Customer Master General Data Unloading Point

Unloading Points
Unloading point Default Calendar key Default Unloading Point Goods receiving hours
July 2007
472
Customer Master General Data Foreign Trade Export Data

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

Name First name Department Function
July 2007
474
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Version 4.1
July 2007
Customer Master Company Code Acct Information Accounting Information

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

Terms of Payment Tolerance group
Automatic Payment Transactions

Payment methods Payment block Alternative payer Grouping key Lockbox
July 2007
476
Customer Master Company Code Correspondence

Dunning Data
Dunning procedure Dunning block Dunning recipient
Correspondence
Accounting clerk Acct at customer Customer user
Payment Notices To
Customer Accounting
July 2007
Sales Legal
477
159
Version 4.1
July 2007
Customer Master Company Code Insurance

Export Credit Insurance
Policy Number Institution Number Amount Insure Valid Until Lead Months Deductible
July 2007
478
Customer Master Sales and Distribution Sales

Sales Order
Sales District Sales Office Sales Group Order Probability Item Proposal Price Group Customer Pricing Procedure Price List Type Customer Statistical Group
Pricing / Statistics
July 2007
Customer Master Sales and Distribution Shipping

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

Transportation Zone
160
Version 4.1
July 2007
Customer Master Sales and Distribution Billing

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

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

Partner Function (PF) Number Partner Description
Sample Listing of Partner Functions Types SP Sold-to-party BP Bill-to-party PY Payer SH Ship-to-party

Business Partners
Defines all of the parties involved in a business transaction Differentiates between their roles
Customer Carrier Employees Etc.
July 2007
483
161
Version 4.1
July 2007
Business Partners
The system will automatically assign a business partner to the customer master and to any transaction There are four default business partner
Sold-to Ship-to Bill-to Payer
They may be the same or different. More business partners can be added to carry out additional business transactions
Customer Account Group
Customer masters are assigned to a customer account group Through field status maintenance, account groups can be setup for one-time customers, regional customers, internal The customer account group controls both type and number range assignment for customers
July 2007
485
Field Status
Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity create, change, or display
July 2007
486
162
Version 4.1
July 2007
Business Partners Sold-to Party Customer who orders Can default for all partner functions sold-to, ship-to, payer, bill-to Primary type of business partner Independent and cannot be linked to other sold-to partners
July 2007
Sold-to
Ship-to
Bill-to
Payer
487
Business Partners Ship-to Party

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

Sold-to
Partner who is delivered the invoice Can be linked to more than one sold-to address
Ship-to
Bill-to
Payer
163
Version 4.1
July 2007
Business Partners Payer
Sold-to
Ship-to
Partner who pays the bill Can be linked to more than one sold-to address
July 2007
Bill-to
Payer
490
Single and Multiple Ship-to Parties
Single ship-to
Ship-to: 10
Sold-to: 10
Bill-to: 10
Payer: 10
Multiple ship-tos Single payer

Ship-to: 11 Ship-to: 10
Sold-to: 10
Bill-to: 10
Payer: 10
July 2007
491
Business Partners
Sold-to
Sold-to
Ship-to
Bill-to
Ship-to
Ship-to
Payer
Ship-to
Ship-to
Ship-to
July 2007
492
164
Version 4.1
July 2007

130. Review Sold-to, Ship-to, and Bill-to Account Groups 131. Create Customer 132. Create Ship-to Party 133. Assign Ship-to Party to Customer
July 2007
493
July 2007
494
July 2007
495
165
Version 4.1
July 2007
Unit 16
- Master Data -
Master Data
SD
July 2007
497
Master Data
Master Data is relatively fixed
Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data
Before making the Master Data configurations, you must have completely defined the organizational structures
July 2007
498
166
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
499

Customer
Master Data
Material
Pricing
July 2007
500
Pricing
Highly touted World-class functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material
July 2007
501
167
Version 4.1
July 2007
Standard Pricing Process

Standard Pricing
Calculates the gross price Then applies Discounts Surcharges Applicable Taxes Calculates the final price
Final price = gross price - discounts + surcharges + taxes
July 2007
502
Cost-Plus Pricing Process

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

Pricing Components
Pricing uses tables to match the condition of order to the applicable pricing routine These routines can
Add/Subtract amounts, percentages Give dollar, weight, quantity breaks/additions Accrue
July 2007
504
168
Version 4.1
July 2007
Pricing Procedure
Pricing uses one of possibly many procedures based upon
Item Customer Order type Sales Area Prices (Gross) Discounts & Surcharges Freight Taxes
The procedure will then apply
July 2007
Pricing Procedure (continued)

Pricing conditions for each item on the order Pricing condition uses
Pricing procedure Access sequence Conditions type
Determines adjustments and price
July 2007
506
Pricing Process
Line Item in Sales Order Pricing Procedure Determination Pricing Procedure Contains List of Condition Types Condition Types Point to Access Sequence Access Sequence Provides the Search Order for Pricing
July 2007
PPEN000 Sales Area S000-RE-01 Doc. Pric. Proc. OR=A Cus. Pric. Proc. 43 = 1
Pricing Procedure = RVAJUS Condition Type PR00 = Price Access Sequence PR02 = Price 10 Customer/material 20 Price list cat./currency/material 30 Material 30 Material Price = $9.50
169
Version 4.1
July 2007
Pricing Process
Line Item Pricing Proced. Det.
Sales Area Doc. PP Cust. PP
CTyp points to Access Seq.

PR00 Points to PR02
Access Seq. points to Cond. Tbls.

Cust. / Mat. Price List / Cur / Mat. Material
Cond. Tbls. contain the Item Pricing

N/A N/A $ 9.50
PPEN000
PR02 Points to Cond. Tables
Sales Org. 0001 0001 0001 0001 S000 S000
Doc. Cust. Price Dist. Div PP PP Prod. Chan. 01 01 A 1 RVAA01 01 01 A 2 RVAB01 01 01 B 1 RVWIA1 01 01 C 1 RVCA01 RE 01 A 1 RVAJUS WH 01 A 1 RVAJUS
Access Access Price Acces Seq. No. Prod. Ctyp Description seq. Description PR02 10 Customer/material with release status RVAJUS PR00 Price PR02 20 Price list cat./cur/mat with rel status PB00 Price (Gross) 30 Material with release status KA00 Sales deal K305 K305 10 Customer/material with release status K007 Customer Discount K307 K307 10 Customer with Release Status K004 Material K304 K304 10 Material with release status K005 Customer/Material K305 July 2007 SAP AG and The Rushmore Group, LLC 2007 508
Price Agreements
Standard price agreements
Product Customer Customer & material Customer group & material group
Detailed price agreements

Pricing scales Rebates Customer expected price
July 2007
509
Credit Limits and Checking

Define automatic credit limit checks to your companys requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on) A credit representative is automatically alerted to a customers critical credit situation as soon as order processing starts Employees can be automatically notified of critical credit situations via internal mail
170
Version 4.1
July 2007
Credit Limits and Checking (continued)
Credit representatives are able to check a customers credit situation to decide whether the customer should be granted credit Works in distributed systems
Central financial accounting Non-central sales and distribution on several sales and distribution computers
July 2007
511
Credit Check
You can use this function at any time within service processing to call up information about the current credit status of a customer Credit limit can be checked manually or automatically The system generally checks the planned costs without tax If a customer has exceeded their credit limit, the system issues a warning
Credit Check (continued)
The checks can be carried out at various times during the sales order cycle, from order receipt to delivery You can define a credit check for any valid combination of the following data:
Risk category Document credit group Credit control area
July 2007
513
171
Version 4.1
July 2007
Unit 16 Exercises
134. 135. 136. 137. Create Material Prices Create Customer Specific Material Price Create Customer Discount Establish Credit Limit for Customer
July 2007
514
July 2007
515
July 2007
516
172
Version 4.1
July 2007
Unit 17
- Rules -
SD
Rules
Rules
July 2007
519
173
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
520
Assign Sales Area to Pricing Procedure

Pricing Procedure Assignment uses the combination of: Sales Area Document Pricing Procedure Customer Pricing Procedure Each combination of these has a pricing procedure assigned
Availability Check
In determining the material availability date the system can include specific stocks if selected, such as:
Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock All movements of stock
July 2007
522
174
Version 4.1
July 2007
Credit Checking
Static Credit Limit Check
Open Orders Open Deliveries Open Billing documents Open Items (accounts receivable)
Dynamic credit limit with credit horizon check (future dates) Credit check to maximum document value (per order)
July 2007
523
Shipping Functions
Shipping Point Determination
The shipping point is selected for each line item based on the shipping point determination process Shipping point based on: Shipping condition Loading group Delivering plant
July 2007
524
Shipping Functions (continued)

Route Definition
Delivery method and the transit time Dummy routes can be used to easily define transit time
Route Determination
Proposed route is chosen using
Shipping point Destination country Transportation zone Shipping condition
July 2007
525
175
Version 4.1
July 2007
Revenue Assignment Determination

Transfers billing values from the Sales and Distribution to Finance Used to recognize revenue Keys used to allocate revenue to the proper account
July 2007
526

Defines the G/L accounts that billing entries are posted to revenue, sales deductions, surcharges, freight charges, etc.
Application V Sales Condition Type KOFI Condition Tables Chart of Accounts C001 Sales Document Sales Organization S001 Sales Document Customer Account Group 01 Customer Master Account Key ERL Pricing Procedure General Ledger Account 600999 Chart of Accounts
July 2007
527
Unit 17 Exercises
138. 139. 140. 141. 142. 143. Assign Sales Areas to Pricing Procedure Define Availability Check for Sales Orders Assign Sales Document to Credit Check Create Shipping Point Determination Create Revenue Account Assignment Key Check Stock Status
July 2007
528
176
Version 4.1
July 2007
Unit 18
- Transactions -
SD
July 2007
530
Transaction Data
July 2007
531
177
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
532
Document Types
Inquiry
Quotation
Returns
Contract
Sales Order
Cash Sales
Consignment
Scheduling Agreement Credit Memo

533
Rush Order
Debit Memo
Returnable Packaging
July 2007
Order Processing Functionality

Delivery scheduling Availability check Transfer of requirements to Material Requirements Planning Pricing Credit check Shipping point and route determination Foreign trade and license processing Document flow
178
Version 4.1
July 2007
Delivery Scheduling
Automatic scheduling of essential shipping activities Calculated using defined activity times Resulting in scheduled activity dates Determined using backward and forward scheduling rules
July 2007
535
Delivery Scheduling (continued)

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

Transportation lead time
Time required to schedule transportation
Pick/Pack time
Time required for picking and packing
Load time
Time required to load
Transit time
Time required to transport goods from shipping point to ship-to
July 2007
537
179
Version 4.1
July 2007
Backward Scheduling
Order Date
Material Availability
Transp. Sched.
Loading
Goods Issue
Requested Delv. Date
1st
2nd Pick & Pack Time (2 days)
3rd Transp. Sched. Time (1 day)
4th Loading Time (1 day)
5th
6th Transit Time (2 days)
July 2007
538
Forward Scheduling
Requested Delv. Date New Delv. Date
Order Date
Transp. Material Availability Sched.
Loading
Goods Issue
1st
2nd Pick & Pack Time (2 days)
3rd
4th Transp. Sched. Time (1 day)
5th Loading Time (1 day)
6th
7th
Transit Time (2 days)
July 2007
539
Availability Check
Determines the material availability date Considers inward and outward movement of inventory customizable Influences partial deliveries by
Proposing a quantity that can be delivered on the requested date (complete delivery) Determines earliest date for full delivery Determines the number and dates for partial deliveries to fulfill the order
July 2007
540
180
Version 4.1
July 2007
Availability Check (continued)
In determining the material availability date the system can include specific stocks if selected, such as:
Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock All movements of stock
July 2007
541
Transfer Requirements to Material Requirements Planning

Ordered quantities are passed to Material Requirements Planning Controlled by the schedule line category Blocking of documents can affect requirements passing delivery block
July 2007
542
Pricing
Highly touted world-class functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material
July 2007
543
181
Version 4.1
July 2007
Credit Check
Efficient means to implement credit management Integrated with Financial Accounting (FI) -- Via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting
July 2007
544
Shipping Point and Route Determination

A shipping point is determined for each line item shipping point determination A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time
July 2007
545
Foreign Trade and License Processing

Predefined trade areas NAFTA, EU Automated reporting for trade areas Automated controls
License management Embargo lists Control by customer, country, product, point in time
July 2007
546
182
Version 4.1
July 2007
Document Flow
The document flow feature allows you to find the status of an order at any point in time. The SAP system updated the order status every time a change is made to any of the documents created in the customer order management cycle (Order to Cash).
July 2007
547
Unit 18 Exercises
144. 145. 146. 147. 148. 149. 150. 151. 152. 153. Create Sales Order Check Stock Status Create Delivery Note for Sales Order Check Stock Status Pick Materials on Delivery Note Post Goods Issue Check Stock Status Bill Customer Post Receipt of Customer Payment Review Document Flow
July 2007
548
July 2007
549
183
Version 4.1
July 2007
Unit 19
- Transactions -
SD
July 2007
551
Transaction Data
July 2007
552
184
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
553
Material Listing and Exclusion
Inclusions or exclusions (availability) of material for a customer or a customer group Material Listing products that can be sold Material Exclusion products that cannot be sold
July 2007
554
Product Substitution Material Determination

Substitution of materials during sales order processing
Automatic Manual
Examples:
Substitute a standard product with an appropriate replacement material Substitute based on a customer preference Substitute based on selection list (manual)
July 2007
555
185
Version 4.1
July 2007
Customer Material Info Record
Data on a material defined for one specific customer is stored in the customer material information records
Customer-specific material number Customer-specific material description Customer-specific data on deliveries and delivery tolerances
July 2007
556
Unit 19 Exercises
154. Create Customer Material Info Record 155. Create Sales Order Using Customer Info Record 156. Create Delivery Note for Sales Order 157. Pick Materials on Delivery Note 158. Post Goods Issue 159. Bill Customer 160. Post Receipt of Customer Payment
July 2007
557
July 2007
558
186
Version 4.1
July 2007
Unit 20
- Transactions -
SD
July 2007
560
Transaction Data
July 2007
561
187
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
562
Scheduling Agreements
Defines specific product quantities and delivery dates for a customer Schedule lines and processed through standard delivery processing Availability check is performed during creation and quantities are passed to MRP System automatically updates delivered quantities
July 2007
563
Scheduling Agreements (continued)

Scheduling Agreement Date 02/15 05/15 08/15 11/15 Qty 150 150 150 300
Delivery 02/10 150 Delivery 05/10 150 Delivery 08/10 150 Delivery 11/10 300
564
July 2007
188
Version 4.1
July 2007
Unit 20 Exercises
161. Create Scheduling Agreement 162. Process Deliveries for a Scheduling Agreement 163. Display Scheduling Agreement 164. Check Stock Status 165. Bill Customer 166. Run Customer Credit Check 167. Post Receipt of Customer Payment
July 2007
565
July 2007
566
July 2007
567
189
Version 4.1
July 2007
Unit 21
- Transactions -
FI
MM SD
July 2007
569
Transaction Data
July 2007
570
190
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
571
Item Proposal
Frequently occurring combinations of material and quantities used by a customer System can suggest the item proposal during order entry
Transferred into a sales order document Selected from a selection list
Can be assigned to more than one customer master records
July 2007
572
Unit 21 Exercises
168. 169. 170. 171. 172. 173. 174. 175. Create Item Proposal Assign Item Proposal to Customer Create Sales Order Using Item Proposal Create Sales Order Value Discount Run Material Requirements Planning Create Purchasing Information Record for PPEN Assign Source of Supply Create Purchase Order via Requisition Assignment List 176. Create Goods Receipt 177. Create Invoice Receipt from Vendor 178. Post Payment to Vendor
191
Version 4.1
July 2007
Unit 22
- Transactions -
FI
MM SD
July 2007
575
Transaction Data
July 2007
576
192
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
577
Shipping Overview
Comprehensive functionality to support picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management
July 2007
578
Shipping Overview (continued)
Order 1
Order 4
Order 5
Order 2
Delivery 813
Delivery 816
Order 3
Delivery 814
Delivery 812
Delivery 815
Order Combination
July 2007
Partial Delivery
Complete Delivery
579
193
Version 4.1
July 2007
Delivery creation activities

checks order and materials to determine if a delivery is possible delivery block, incompleteness confirms availability confirms export/foreign trade requirements determines total weight & volume
July 2007
580
Delivery creation activities

generates packing proposal considers partial deliveries updates route assignment assigns picking location determines lot batches updates sales order: status, delivery qty
July 2007
581
Delivery Notes
Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities
Picking
Delivery Note Each step in the delivery process updates the delivery note status
582
Packing Loading Post Goods Issue
July 2007
194
Version 4.1
July 2007
Delivery Due List
Produces a work-list of deliveries Encompasses deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries
July 2007
583
Picking
Quantities based on delivery Assigned date when picking should begin Automated storage location assignment Supports serial number tracking and batch management Integrated with Warehouse Management (WM)
July 2007
584
Packing
Identifies which packaging is to be used for specified products Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced
July 2007
585
195
Version 4.1
July 2007
Goods Issue
Event that indicates the change in ownership of the products Reduces inventory Automatically updates the G/L accounts Ends the shipping process and prevents changes to the shipping documents
July 2007
586
Goods Issue (continued)
General Ledger
Cost of Goods Sold
Debit Credit
Inventory
Debit Credit
1000
1000
July 2007
587

179. Run Delivery Due List 180. Pick Materials on Delivery Note 181. Post Goods Issue
July 2007
588
196
Version 4.1
July 2007
Billing Overview
Automated invoicing based on sales orders and/or deliveries Functionality for processing credit/debit memos and rebates Integration with Financial Accounting (FI) and Controlling (CO) Updates customers credit data Can create pro forma invoices
July 2007
589
Billing Overview (continued)
Sales Invoice Sold To: Rushmore Group Sales Org: S001 Dist Channel: RE Division: 01 Conditions/Price: $500
General Ledger Account Assignment
Customer
Debit
Credit
A/R Recon
Debit Credit
Debit
Revenue
Credit
500
500
500
July 2007
590
Billing Methods
Delivery based Invoicing
Delivery 820 Order 6 Delivery 821
Invoice 945 Invoice 946
Delivery 833
Collective Invoicing
Order 9 Delivery 834 Order 14 Delivery 856 Invoice 968
Split Invoicing
Invoice 991 Order 32 Delivery 886 Invoice 992
July 2007
591
197
Version 4.1
July 2007
Billing Plans
Periodic total amount for a planned billing period Milestone distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment evenly proportioned amounts and defined payment dates Resource related consumed resources such as service or consulting
Billing Documents
Explicitly specify documents Billing due list builds a work list of invoices that should be generated Automatic posting to Financial Accounting (FI)
July 2007
593

182. Run Billing Due List, Invoice Customers 183. Post Receipt of Customer Payment
July 2007
594
198
Version 4.1
July 2007
Unit 23
- Transactions -
FI
MM SD
July 2007
596
Transaction Data
July 2007
597
199
Version 4.1
July 2007
SD MM
FI
CO AM
R/3
HR IS
Controlling
QM
Quality Mgmt.
Plant Maintenance
Human Resources
Industry Solutions
July 2007
598
Customer Return
Delivery Note
Customer Return Order received
Goods Receipt
Payment to Customer
Create Credit Memo

July 2007
Quality Inspection
599
Customer Return (continued)
1 2 3
Order 14
Delivery 856
Invoice 968
Return Order
Return Delivery
Quality Inspection
Return to Inventory
Credit Memo
Payment
July 2007
600
200
Version 4.1
July 2007
Returns document
Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price
Return delivery
Issues a goods receipt to place material into inventory
July 2007
601
Credit memo
Billing block must be cleared from Return Posts to Financial Accounting (FI) Can be processed in batch (background) Can be processed collectively (grouped)
July 2007
602

184. 185. 186. 187. 188. Create Goods Return Order Create Delivery Note for Return Order Receive Materials from Goods Return Order Check Document Flow Review Stock Overview
July 2007
603
201
Version 4.1
July 2007

189. 190. 191. 192. 193. 194. 195. Transfer Returned Stock to Unrestricted Use Post Customer Credit Create Billing Document Release Billing Document to Accounting Check Document Flow Post Payment of Customer Refund Check Document Flow
July 2007
604
The End!
202
mySAP PLM
mySAP SRM
mySAP ERP ECC 6.0
mySAP CRM
mySAP SCM
SAP NetWeaver
Business Process Integration I Exercises

(Version 4.1 Release July 2007)
Version 4.1 July 2007
2007 SAP AG and The Rushmore Group, LLC
Version 4.1 July 2007
2007 SAP AG and The Rushmore Group, LLC
BUSINESS PROCESS INTEGRATION I (BPI I) Unit 2: Customer Order Management Business Cycle Including Procurement Process for Replenishment of Goods
Purpose of Unit The purpose of Unit 2 is to demonstrate the Customer Order Management Business Cycle beginning with a quotation and ending with recording final payment received from the customer. This process will include the procurement cycle as you will need to procure the items for sale.
Version 4.1 Release July 2007
Page 1
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 1: Logging on to the SAP System

Enter the following: Select server name provided by the course lead Click on

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

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

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

Navigation Menu Path Logistics Materials Management Purchasing Master Data Vendor Central Create XK01
Trans Code
Enter the following: Leave vendor field blank Company code: C999 Purchasing organization: P999 Account Group: KRED
Reference Vendor: 100001 Company Code: C999 Purch. Organization: P999
(Enter) Your Name _ _ _ _ _ _(Your Student Number) 57069 Vermillion US SD English
Name Enter the vendors name Search term Search term = Address Postal code = City = Country = Region = Communication Language = Note:
(Enter) Page forward past views that do not contain relevant information N/A
Create Vendor: Control (Enter)
Create Vendor: Payment transactions (Enter)
N/A
Page 5

Create Vendor: Accounting Information Accounting Rec. Account = 300999 (Enter)
Create Vendor: Payment Transactions Accounting Payt = 0001 Select Check double inv. (Enter) N/A
Create Vendor: Correspondence Accounting (Enter)
Create Vendor: Purchasing data Order Currency = Terms of Payment = (Enter)
USD 0001
Create Vendor: Partner Functions (Enter) (Save)
N/A
Record the Vendor Number: _______________ (Exit) To return to SAP Easy Access Menu
Record the system message: Message
Page 6
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 3: Create Material Master

Navigation Menu Path Logistics Materials Management Material Master Material Create (Special) Trading Goods MMH1
Trans Code
Enter the following information: System Menu: Defaults Industry sectors (Enter) Basic data 1 Sales: Sales Org. Data 1, Sales: Sales Org. Data 2 Sales: General/Plant Data Purchasing MRP 1, MRP 2, MRP 3 General Plant Data/Storage 1 Accounting 1 Make sure these are checked (Enter) Copy from C999 P999 S999 RE Select: Retail Check Hide industry sector
System Menu: Default Views Select the views:
System Menu: Default Organization levels Select: Company code: C999 Plant: P999 Sales org: S999 Distribution channel: RE Make sure this is checked (Enter) Material
SPEN_ _ _ Leave Blank
Change Number:
Copy from Material:
SPEN999
Page 7
(Enter)
Basic data 1 TAB Change Name of Material from Stick Pen 999 to Stick Pen _ _ _ (Enter)
Sales: Sales Org. 1 TAB Information will be defaulted into the correct fields with the exception of the pricing data. To input the pricing data: Select
In the Screen: Create pricing conditions (PR00) Scale Enter the following: Scale quantity: 1 Amount: 2.00

(Save) (Exit) To return to SAP Easy Access Menu
Page 8
BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 4: Create Customer Master

Navigation Menu Path Logistics Sales and Distribution Master Data Business Partner Customer Create Complete XD01
Trans Code
Enter the following information: Account group: Sold-to party Customer: (Leave blank) Company code: C999

Sales organization: S999 Distribution channel: RE Division: 01
(Enter)
Customer: 1 Company code: C999 Sales organization: S999 Distribution channel: RE Reference division: 01
You will create the following customer: Address TAB Name Name: Search term Search Term: Address Postal Code: City: Country: Region: Communication Language:
Customer _ _ _ ___ 57069 Vermillion US SD English
Page 9

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

Navigation Menu Path Trans Code Logistics Sales and Distribution Sales Quotation Create VA21
Enter the following information: Quotation type: QT S999 RE 01
Organizational Data Sales Organization: Distribution channel: Division: (Enter)
The Item Overview screen of the quotation appears. Enter the following information: Quotation: Leave blank (system assigns number) Sold-to party: Number from Creating a Customer Ship-to party: Leave blank PO number: Any number or text Item overview Tab Valid to date: Material: Order quantity: (Enter) (Save) Date = one month ahead of todays date SPEN_ _ _ 150
Record Quotation Number: _______________________ (Exit) To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 6: Create Sales Order with Reference to a Quotation
Navigation Menu Path Trans Code Logistics Sales and Distribution Sales Order Create VA01
Enter the following information: Order type: OR S999 RE 01 button.
Organizational Data Sales Organization: Distribution channel: Division: Click on the
Note that the system defaults to the Quotation Tab. Enter the number of the quotation created in the previous exercise.
Select The system copies the details of the quotation into the Sales order.
Select the option that gives you a complete delivery on the proposed date. PO Number: PO Date: 123-_ _ _ Todays date P999
Sales Tab Delivering plant
(Enter) Enter through any warnings
Record the Net Value of the Sales Order: _____________________ (Save)
Record Order Number: _________________________ (Exit) To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 7: Check Stock Status

Navigation Menu Path Logistics Materials Management Inventory Management Environment Stock Stock Overview MMBE
Trans Code
Enter the following information: Material: Plant: Display version: (Execute) SPEN_ _ _ P999 1

Select the Company Code line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Check the unrestricted use quantity (Unrestricted use) stock type Check the sales orders quantity (Sales orders) stock type Check the delivery quantity (Scheduled for delivery) stock type
Record the storage location and quantity of inventory for each Stock type: Company Code Stock Type Stock Unrestricted Use Sales Orders Scheduled for Delivery (Exit) To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 8: Run Material Requirements Planning Single Item, Single Level
Navigation Menu Path Logistics Materials Management Materials Requirements Planning (MRP) MRP Planning Single-Item, Single-Level MD03
Trans Code
Enter the following information: Enter material number: Enter plant: SPEN_ _ _ P999 NETCH 2 3 1 1 1 Display results before they are saved
MRP control parameters Processing key: Create pur. req.: Deliv. schedule: Create MRP list: Planning mode: Scheduling: Process control parameters Select
(Enter) A warning message appears - please check input parameters (Enter) again to confirm and check the warning message Review the MRP list
Note: Your MRP list may appear different depending on dates and orders. (Save) (Exit) To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 9: Convert Purchase Requisition to Purchase Order
Navigation Menu Path Logistics Materials Management Materials Requirements Planning (MRP) MRP Evaluations Stock/Reqmts List MD04
Trans Code
Enter the following information: Individual access Tab Material: Plant: (Enter) Select Purchase Requisition to be converted and click or Double click on the purchase req to be converted. Click on the Enter Vendor button (From the Vendor you created 100???) P999 999 C999 (Details of Element) SPEN_ _ _ P999
Org. Data Tab Purch. Org. Purch Group Company Code (Enter)
Single Click on Open Requisitions line in the left window
Then Select
(Adopt)

Enter a Net Price: Increase the PO quantity to: (Enter)
1.25 1000
Record the amount of the purchase order from the Conditions Tab on the Header $ _____________
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Record the new purchase order number._____________________ (Refresh) button to refresh the Stock/Reqmts List Select the Notice the MRP elements change from the old PurReq to display the new POitem. (Exit) To return to SAP Easy Access Menu (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 10: Create Goods Receipt

Navigation Menu Path Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order GR for Purchase Order (MIGO) MIGO_GR
Trans Code
Enter the following information: Enter your PO # (Execute) Ensure each line item OK is checked Enter storage location 10 4500000???
Notice that the quantity from the PO defaults as the quantity to receive. Select or (Post)
(Exit) To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 11: Create Invoice Receipt from Vendor
Navigation Menu Path Logistics Materials Management Logistics Invoice Verification Document Entry Enter Invoice MIRO
Trans Code
Enter the following information: Basic data Tab Invoice Date: Check your Company Code: Enter amount: Tax code: PO number: Today's Date C999 Enter amount from invoice XI (Enter your purchase order number 4500000???)

(Enter) Use the (Post) (Exit) To return to SAP Easy Access Menu button to see if the postings are correct.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 12: Post Payment to Vendor

Navigation Menu Path Accounting Financial Accounting Accounts Payable Document Entry Outgoing payment Post F-53
Trans Code
Enter the following information: Document date: Today 100999 Enter the amount of the outgoing payment from invoice Invoice Number or other text
Bank data: Account: Amount: Text:
Open item selection: Account: Enter your Vendor # (Created in Exercise 2) All other settings remain unchanged.
Select
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Review the balance.
Double click on USD gross amount for the Invoice Receipt until Not assigned is $0.00

(Save) Record the document number ______________________ (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 13: Create Delivery Note for Sales Order
Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With Reference to Sales Order VL01N
Trans Code
Enter the following information: Shipping point: S999 Enter a date 7 days from today Enter the order number of the sales order created earlier
Sales order data Selection date: Order:
(Enter) The system defaults the items and quantities from the sales order that are scheduled to be delivered. Item Overview Tab Click on the line item 10 (Item Details) (Back)
Picking Tab: Verify system selected: Plant =
P999
Enter the storage location for each item SLoc = 10 (Enter) (Save) Record the Outbound Delivery number: _________________ (Exit)
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Navigation Menu Path Logistics Materials Management Inventory Management Environment Stock Stock Overview
Trans Code Enter the following information: Database selections Material: Plant: Display version: (Execute) SPEN_ _ _ P999 1

Select the plant line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Check the unrestricted use quantity (Unrestricted use) stock type Check the sales orders quantity (Sales orders) stock type Check the delivery quantity (Scheduled for delivery) stock type
Record the storage location and quantity of inventory for each Stock type: Plant Storage Location Stock Type Stock Unrestricted Use Sales Orders Scheduled for Delivery (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 15: Picking Materials on Delivery Note
Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document VL02N
Trans Code
Enter the following information: Outbound Delivery (Enter) Outbound delivery number from the previous exercise.
The material delivery quantity is proposed. Picking Tab Enter Pick quantity to match the proposed delivery quantity Verify that the storage location is Inventory

(Save) (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 16: Post Goods Issue

Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document
Trans Code Enter the following information: Outbound Delivery Select Outbound delivery number from the previous exercise.
The system returns a message indicating change to the delivery note. (Exit)
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Trans Code Enter the following information: Database selections Material: Plant: Display version: (Execute) SPEN_ _ _ P999 1

Select the plant line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Check the unrestricted use quantity (Unrestricted use) stock type Check the sales orders quantity (Sales orders) stock type Check the delivery quantity (Scheduled for delivery) stock type
Record the storage location and quantity of inventory for each Stock type: Plant Storage Location Stock Type Quantity Unrestricted Use Sales Orders Scheduled for Delivery (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 18: Bill Customer

Navigation Menu Path Trans Code Logistics Sales and Distribution Billing Billing Document Create VF01
The system will default the last delivery document created. (Execute) Record the total amount billed to the customer: $____________________ (Save)
The system displays the customer and the materials on the delivery with total values to be billed.
Record the billing document number that is displayed at the bottom of the screen ________________ (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 19: Post Receipt of Customer Payment
Navigation Menu Path Accounting Financial Accounting Accounts Receivable Document Entry Incoming Payments F-28
Trans Code
Enter the following information: Document Date: Company Code: Currency/Rate: Todays date C999 USD 100999 Enter the amount of the payment (from sales order) Enter Your customer # (Created in Exercise 4)
Bank data: Account: Amount: Open item selection Account:
Select
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Review the balance.
Double click on USD gross amount for the Customer Invoice until Not assigned is $0.00

(Save) Record the document number ______________________ (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 20: Document Flow

Navigation Menu Path Trans Code Logistics Sales and Distribution Sales Order Display VA03
Enter your order number. Select the following from the System Menu: Environment Display document flow
The system displays a list of documents associated with the order. Click on the line of the GD goods issue: delvy 49000.### Select Select to view the account postings for this goods movement.
(Back) twice to get to the overview screen
It can be seen that the: 1. The entire document flow is shown. 2. There are no open documents. 3. The business cycle is complete.
Note: You can view the document flow from the Sales Order, Delivery or Billing screens. Click on the line of the Standard Order Select the The document flow can be seen in greater detail. Click on the line of the Outbound Delivery Select the (Continue) (Exit) Twice To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Unit 3:

Purpose of Unit The purpose of Unit 3 is to establish the Organizational Structure for Financial Accounting (FI). Once the various organizational elements are defined they will need to be assigned. This unit will establish the core structure necessary to conduct financial transactions within the system.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 21: Create Company Code

Purpose of Exercise The purpose of this exercise is to define a company code. A company code represents a legal organizational entity and a separate accounting unit in Financial Accounting (FI). This organizational element is often referred to as a balanced set of books. The company code is the level at which all accounting transactions are captured. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Financial Accounting Edit, Copy, Delete, Check Company Code SPRO
Trans Code
Double click on Edit Company Code Data Enter the following information: Click on the Company Code = Company Name = Additional data City = Country = Currency = Language = Select button. C_ _ _ (where _ _ _ is your student number) (Your Name) Pen Inc. (e.g., John Pen Inc.) Vermillion US USD EN (Address) (Your Name) Pen Inc. (e.g., John Pen Inc.) _ _ _ (Your student number) 123 Forest Avenue 57069 Vermillion US SD
Name Name = Search Term Search term = Address Street = Postal code = City = Country key = Region = (Copy) (Save) (Copy)

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 22: Create Chart of Accounts

Purpose of Exercise The purpose of this exercise is to copy an existing Chart of Accounts into your own Chart of Accounts. This is necessary due to the complicated process of establishing the linkages necessary to create your own retained earnings account. A Chart of Accounts (CPEN) was established as the basis for your Chart of Accounts CPEN contains only a retained earnings account with all the linkages already established. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting General Ledger Accounting G/L Accounts Master Data Preparations Edit Chart of Accounts List SPRO
Trans Code
Enter the following information: Click on the Chart of Accts: Description: button. C_ _ _ Chart of Accounts Pen Inc_ _ _ English 6 Manual creation of cost elements
General specifications Maint. Language: Length of G/L Account Number: Integration Controlling integration (Enter) (Save) (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 23: Assign Company Code to Chart of Accounts
Purpose of Exercise The purpose of this exercise is to assign your company code to your chart of accounts. A company code can have only one chart of accounts. A chart of accounts can have more that one company code. If you have several legal entities within your enterprise, it would make sense to have all of the entities use the same chart of accounts. This would facilitate the creation of consolidated financial statements. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting General Ledger Accounting G/L Accounts Master Data Preparations Assign Company Code to Chart of Accounts SPRO
Trans Code
Enter the following information: Select your company code Chrt/Accts (Save) (Exit) C_ _ _ C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 24: Assign Company Code to Fiscal Year Variant
Purpose of Exercise
The purpose of this exercise is to assign your company code to a fiscal year variant. A fiscal year variant is used to define the following: how many posting periods a fiscal year has how many special periods you need how the system is to determine the posting periods when posting When defining your fiscal year, you have the several options: Your fiscal year is the calendar year Your fiscal year is not the same as the calendar year and is not year-dependent Your fiscal year is not the same as the calendar year and is year-dependent
Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Fiscal Year Assign Company Code to a Fiscal Year Variant SPRO
Trans Code
Enter the following information: Select your Company code Fiscal Year Variant (Save) (Exit) C_ _ _ K1 (Cal. Year, 1 Special Period)
Please notify your instructor if you encounter problems in saving your entry due to the table locking mechanism.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 25: Create Credit Control Area
Purpose of Exercise The purpose of this exercise is to create an organizational structure that is used to specify and control the credit limits for customers. A credit control area can include one or more company codes. Including more than one company code in an enterprise allows for the control of a customers credit across all company codes assigned to that credit control area. It is not possible to assign a company code to more than one credit control area. The credit limits must be specified in the same currency for all company codes in a credit control area. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Financial Accounting Define Credit Control Area SPRO
Trans Code
Enter the following information: Click on the Cred. contr. area Currency (Back) Description (Save) (Exit) Pen Inc. Credit Control Dept._ _ _ button. C_ _ _ USD
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 26: Assign Company Code to Credit Control Area
Purpose of Exercise This exercise has you assign your company code to the credit control area you created to manage your customers credit limits. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Financial Accounting Assign company code to credit control area SPRO
Trans Code
Enter the following information: Select your Company code CCAr field (Save) (Exit) C_ _ _ C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 27: Assign Permitted Credit Control Areas to Company Code
Purpose of Exercise In this activity you can enter additional credit control areas which are allowed for each company code, in addition to this default credit control area. The control area assigned to the company code only acts as a default value and is used, for example, for crediting commitments in the case of non-assignable incoming payments from customers. Otherwise, with every payment, the credit amount is deducted in the control area in which it was also added (as previously). Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Account Receivable and Accounts Payable Credit Management Credit Control Account Assign Permitted Credit Control Areas to Company Code SPRO
Trans Code
Enter the following information: Click on the Company Code Credit contr. area (Save) (Exit) button. C_ _ _ C_ _ _
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Purpose of Unit The purpose of Unit 4 is to establish the Organizational Structure for Material Management (MM). Once the various organizational elements are defined they will need to be assigned. This unit will establish the core structure necessary to conduct material management transactions within the system.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 28: Verify Valuation Area

Purpose of Exercise The purpose of this exercise is to verify that the valuation area is set to plant level. Having the valuation set at the plant level facilitates plant level materials requirements planning. Navigation Menu Path:
Tools Customizing IMG Execute Project Enterprise Structure Definition Logistics General Define valuation level SPRO
Trans Code:
The defined valuation level is preset at the plant level.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 29: Define Plant

Purpose of Exercise This exercise will allow you to create a plant. A plant is an organizational structure within our company. As an organizational structure, the plant is assigned to a company code. However a company code can have several plants. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Logistics General Define, copy, delete, check plant SPRO
Trans Code
Double click on Define Plant
button. Click on the Enter the following information: Plant P_ _ _ Detailed Information Factory calendar Select (Address) US
(_ _ _ = your student number)
Name Name Name 2 Search Term Search term Street Address Street City Postal code Country key Region (Copy) (Save) (Copy)
Pen Inc Warehouse_ _ _ Plant _ _ _ ___ 123 Glen Avenue Vermillion 57069 US SD

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 30: Define Storage Locations (Inventory and Quality)
Purpose of Exercise This exercise will have you create the locations where our inventory will be physically kept. A storage location is where the quantity of inventory is managed not the value. The value is managed at the plant level. A plant can have more than one storage location. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Materials Management Maintain storage location SPRO
Trans Code
Enter the following information: Plant (Continue) Click on the SLoc Description SLoc Description (Save) (Exit) button. 10 Inventory 20 Quality P_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 31: Define Purchasing Organization

Purpose of Exercise The purpose of this exercise is to create the Purchasing Organization. The purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions. The purchasing organization is the organizational unit that subdivides an enterprise according to the requirements of purchasing. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Materials Management Maintain purchasing organization SPRO
Trans Code
Enter the following information: Click on the Purch Organization: Purch. Org. Descr.: (Save) (Exit) button. P_ _ _ Purchasing Org. _ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 32: Create Purchasing Group

Purpose of Exercise This exercise has you create a purchasing group. A purchasing organization (such as created in the previous exercise) can be subdivided into purchasing groups, which consist of buyers responsible for certain day-to-day purchasing activities (e.g., precious metals, services, etc.). Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Purchasing Create Purchasing Groups SPRO
Trans Code
Enter the following information: Click on the Purchasing Group Desc Pur. Grp. Tel. No. Pur. Grp (Save) (Exit) button. ___ Type in Your Name 605 555 1414
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 33: Assign Plant to Company Code
Purpose of Exercise This exercise has you assign your plant to your company code. This will facilitate the recording or tracking of transactions at the plant level. Each plant must be assigned to a company code. A plant can only belong to one company code. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Logistics General Assign plant to company code SPRO
Trans Code
Enter the following information: Click on the CoCd (Company Code): Plnt (Plant): (Enter) (Save) (Exit) button. C_ _ _ P_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 34: Assign Purchasing Organization to Company Code
Purpose of Exercise The purpose of this exercise is to assign your purchasing organization to your company code. The assignment can be done differently based on the type of purchasing your organization does. For example: You can assign a purchasing organization to several company codes. This facilitates corporate-group-wide purchasing. You can assign a purchasing organization to one company code. This facilitates companyspecific purchasing. You can assign a purchasing organization to no company code. This purchasing organization can then procure for all plants assigned to it, without regard to the company code to which it belongs. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Materials Management Assign purchasing organization to company code SPRO
Trans Code
Enter the following information: Select your Purchasing Organization CoCd (Company Code): (Enter) (Save) (Exit) C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 35: Assign Purchasing Organization to Plant
Purpose of Exercise This exercise allows you to assign your purchasing organization to a plant for plant specific purchasing. A purchasing organization can be assigned to one or more plants. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Materials Management Assign Purchasing Organization to Plant SPRO
Trans Code
Enter the following information: Click on the Plnt (Plant): (Enter) (Save) (Exit) button. P_ _ _ P_ _ _
POrg (Purchasing Organization):
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 36: Setup Parameter ID

Purpose of Exercise The purpose of exercise is to establish standard default entries for your user ID. The parameters established in this exercise provide the default information for your transaction screens. When establishing defaults for your ID, you would generally not want to create default parameter values for entries that change frequently. Navigation Menu Path Trans Code Select the Parameters tab Enter the PID and Parameter Value in ALL CAPITALS as the parameter values are case sensitive! Enter the following Values: Parameter (PID) WRK BUK EKG EKO FWS GJR KPL Parameter Value P_ _ _ C_ _ _ ___ P_ _ _ USD 2007 C_ _ _ Description (this comes from the Parameter ID and does not need to be entered by the user) Plant Company Code Purchasing Group Purchasing Organization Currency Units Fiscal Year Chart of Accounts System Menu: System User Profile Own Data

(Enter) to display the short text description (Save)
Note: This process created a new session you may close one session if you wish. Record the system message: Message
To find the Parameter IDs: Navigate to the screen that holds the field that requires the parameter and hit F1 Select (Technical information) Then look for the three digit Parameter ID code on the Technical information screen. Enter this code in the parameter column followed by your most common value for that entry.
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Purpose of Unit The purpose of Unit 5 is to establish some of the Rules (internal controls) for Financial Accounting (FI). You have established the organizational structure for FI and now you can begin to establish some rules with regard to the creation and of Master Data and Transactions.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 37: Create Account Groups

Purpose of Exercise The account group is a classifying feature within the G/L account master records. The account group is a required entry. The account group determines the fields for the entry screens if you create or change a master record in the company code. In the account group a number range interval is defined to which accounts can be assigned. Field statuses for each account group control the behavior of the fields when you are creating a general ledger account such as whether or not the field is required, suppressed, optional, or display only. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting General Ledger Accounting G/L Accounts Master Data Preparations Define Account Group SPRO
Trans Code
Balance Sheet Accounts Position Cursor on Account Control (Choose) Suppress Req. entry Opt. entry X X Display Chrt/Accts Acct Group Name From acct To account (Enter) Select C_ _ _ BS Balance Sheet Accounts 100000 399999 C_ _ _, Group BS Balance Sheet Accounts 100000 399999
Account Control Currency Tax category Reconciliation account Exchange Rate Difference Account managed in ext. system Only balances in local crcy Alternative account number Inflation key Tolerance group (NEXT)
X X X X X X X
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Account management Line Item Management Open item management Sort key Authorization group Administrator (Next) Document entry Reconcil.acct ready for input Field status group Post automatically only Supplement automatic postings (Save) (Back) Suppress Req. entry Opt. entry X X X Display
X X Suppress X Req. entry X X X Opt. entry Display
Income Statement Accounts Position Cursor on Account Control (Choose) Suppress Req. entry Opt. entry X X X X X X X X X Display Currency Tax category Reconciliation account Exchange rate difference Account managed in ext. system Only balances in local crcy Alternative account number Inflation key Tolerance group (Next) Chrt/Accts Acct Group Name From acct To account (Enter) Select C_ _ _ PL Profit & Loss Accounts 400000 999999 C_ _ _, Group PL Profit & Loss Accounts 400000 999999
Account Control
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Account management Line Item Management Open item management Sort key Authorization group Administrator (Next) Document entry Reconcil.acct ready for input Field status group Post automatically only Supplement automatic postings (Save) (Back) X X X X X Suppress Req. entry Opt. entry X Display
Suppress X
Req. entry X
Opt. entry
Display
Reconciliation Accounts Position Cursor on Account Control (Choose) Suppress X X X X X X X X Req. entry Opt. entry X Display Chrt/Accts Acct Group Name From acct To account (Enter) (Save) Select C_ _ _, Group RA - Reconciliation Accounts 110000 300999 C_ _ _ RA Reconciliation Accounts 110000 310000
Account Control Currency Tax category Reconciliation account Exchange rate difference key Account managed in ext. system Only balances in local crcy Alternative account number Inflation key Tolerance group (Next)
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Account management Line Item Management Open item management Sort key Authorization group Administrator (Accounting Clerk) (Next) Document entry Reconcil.acct ready for input Field status group Post automatically only Supplement automatic postings (Save) (Back) (Exit) X X X X Suppress X X Req. entry Opt. entry X Display
Suppress X
Req. entry X
Opt. entry
Display
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 38: Define Retained Earnings Account
Purpose of Exercise The purpose of this exercise is to designate an account as the retained earnings account in financial accounting. The retained earnings account is tied to a variety of accounts and is used in closing the fiscal year. At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. Navigation Menu Path:
Tools Customizing IMG Execute Project Financial Accounting General Ledger Accounting G/L Accounts Master Data Preparations Define Retained Earnings Account SPRO
Trans Code:
Enter the following information: RE (Enter) by pressing Chart of Accounts (Enter) P&L statmt Account 330_ _ _ C_ _ _
Acknowledge the warning (Enter) (Save) (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 39: Review Field Status Variant
Purpose of Exercise A field status variant groups together several field status groups. You assign a field status variant to each company code. The field status group specifies which fields are ready for input, which fields must be filled or which fields are suppressed when entering documents. Specifying which fields are required, suppressed, optional, or display only when using the various general ledger accounts. A field status group is assigned to a general ledger account when it is created. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Line Item Controls Define Field Status Variants SPRO VPEN Field status groups ZALL, All Accounts
Trans Code Select Double click Select
Position Cursor on General Data Suppress Req. entry Opt. entry X X X X X X X X
(Choose) General Data Assignment number Text Invoice Reference Hedging Collective Invoice Reference specification 1/2 Reference specification 3 Inflation Index
View fields statuses (Do not change only review) (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 40: Assign Company Code to Field Status Variant
Purpose of Exercise The purpose of this exercise is to assign your company code to the field status variant you just created. By doing this you will allow your company code to use the field status variant and the groups that you created within the variant. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Line Item Controls Assign Company Code to Field Status Variants SPRO
Trans Code
Enter the following information: Select your Company Code Fld stat. var. (Field Status Variant): (Save) (Exit) C_ _ _ VPEN
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BUSINESS PROCESS INTEGRATION I (BPI I) Unit 6: Create General Ledger Accounts

Purpose of Unit The purpose of Unit 6 is to create the General Ledger Accounts necessary for the legal reporting requirements associated with a Balance Sheet and an Income Statement. This includes: Balance Sheet accounts for assets, liabilities and retained earnings Income Statement for revenues and expenses The General Ledger Accounts will be created using the Rules you created in Unit 5: BS = Balance Sheet Accounts (Assets and Liabilities) PL = Profit & Loss Accounts (Revenues and Expenses) RA = Reconciliation Accounts (Accounts Payable and Accounts Receivable)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 41: Create Bank Account

Purpose of Exercise This exercise will create a general ledger account for your bank account. This is an asset balance sheet account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Enter the following information: G/L Account: Company Code: (Create) 100_ _ _ C_ _ _
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text: G/L acct long text Control Data TAB Account control in company code Currency Select:
Balance Sheet Accounts Balance sheet account Bank (Checking) Bank (Checking Account)
USD Only balances in local currency
Account Management in Company Code Select: Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 42: Create Accounts Receivable Reconciliation Account
Purpose of Exercise This exercise will create the Accounts Receivable Reconciliation account. This account is used to sum up customer accounts. Multiple reconciliation accounts could be used you wanted to keep track of different customer accounts. This type of account is normally used wherever there is a high volume of transactions that can be summarized into a single account for reporting on the Balance Sheet. This is an asset on the Balance Sheet. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text: G/L acct long text Control Data TAB Account control in company code Currency Recon. acct for acct type:
Reconciliation Accounts Balance sheet account AR Recon Accounts Receivable Reconciliation
USD CUSTOMERS
Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 43: Create Trading Goods Inventory Account
Purpose of Exercise This exercise will create a general ledger account for your trading goods inventory account. This is an asset balance sheet account that records the value of the current inventory. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Balance Sheet Accounts Balance sheet account Inventory - Trading Trading Goods Inventory
Account Management in Company Code Select: Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Select Post automatically only (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 44: Create Operating Supplies Inventory Account
Purpose of Exercise This exercise will create a general ledger account for your operating supplies inventory account. This is an asset balance sheet account that records the value of the current inventory. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Balance Sheet Accounts Balance sheet account Operating Supplies Operating Supplies Inventory
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 45: Create Accounts Payable Reconciliation Account
Purpose of Exercise This exercise will create the Accounts Payable Reconciliation account. This account is used to sum up vendor accounts. Multiple reconciliation accounts could be used you wanted to keep track of different vendor accounts. This type of account is normally used wherever there is a high volume of transactions that can be summarized into a single account for reporting on the Balance Sheet. This is a liability on the Balance Sheet. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text: G/L acct long text Control Data TAB Account control in company code Currency Recon. acct for acct type:
Reconciliation Accounts Balance sheet account AP Recon Accounts Payable Reconciliation
USD VENDORS
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 46: Create Goods Receipt / Invoice Receipt Account
Purpose of Exercise This exercise will create a general ledger account for your Goods Receipt / Invoice Receipt account. This is an asset balance sheet account that records the value of a goods receipt from a vendor in the purchasing process prior to matching it up with and invoice from the vendor. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text: G/L acct long text Control Data TAB Account control in company code Currency Check box Tax category Select
Balance Sheet Accounts Balance sheet account GR/IR Account Goods Receipt / Invoice Receipt Account
USD Only balances in local currency * (All tax types allowed) Posting without tax allowed
Account Management in Company Code Select Open Item Management Check Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Check Post automatically only (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 47: Create Output Tax Account
Purpose of Exercise This exercise will create a general ledger account for your output tax account. This is an asset balance sheet account that records the value tax that has been accrued in this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Balance Sheet Accounts Balance sheet account Accrued Tax - Output Accrued Tax - Output
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 48: Create Input Tax Account
Purpose of Exercise This exercise will create a general ledger account for your input tax account. This is an asset balance sheet account that records the value tax that has been accrued in this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Balance Sheet Accounts Balance sheet account Accrued Tax - Input Accrued Tax - Input
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 49: Create Retained Earnings Account
Purpose of Exercise This exercise will extend this account as well as add additional information to the Retained Earnings account created when you copied the CPEN accounts into your C_ _ _ Chart of Accounts. A Retained Earnings account is a Balance Sheet account that records values to be carried forward from one period to the next. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Balance Sheet Accounts Balance sheet account Retained Earnings Retained Earnings
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 50: Create Common Stock Account
Purpose of Exercise This exercise will create a general ledger account for your common stock account. This is an asset balance sheet account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Balance Sheet Accounts Balance sheet account Common Stock Common Stock _ _ _
Account Management in Company Code Select: Line item display Sort key: 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 51: Create Trading Goods Consumption Expense Account
Purpose of Exercise The purpose of this exercise is to create a Trading Goods Consumption Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text: G/L acct long text Control Data TAB Account control in company code Currency Select
Profit & Loss Accounts P&L statement acct Trading Goods Exp. Trading Goods Consumption/Expense
USD Posting without tax allowed
Account Management in Company Code Select Line item display Sort Key 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 52: Create Operating Supplies Expense Account
Purpose of Exercise The purpose of this exercise is to create an Operating Supplies Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Profit & Loss Accounts P&L statement acct Supplies Expense Supplies Expense
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 53: Create Utilities Expense Account
Purpose of Exercise The purpose of this exercise is to create a Utilities Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Profit & Loss Accounts P&L statement acct Utilities Expense Utilities Expense Account
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 54: Create Purchase Price Difference Expense Account
Purpose of Exercise The purpose of this exercise is to create a Purchase Price Difference Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Profit & Loss Accounts P&L statement acct Pur Price Dif Acct Purchase Price Difference Account
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 55: Create Information Technology Expense Account
Purpose of Exercise The purpose of this exercise is to create a Information Technology Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Profit & Loss Accounts P&L statement acct IT Expense Information Technology Expense
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 56: Create Miscellaneous Expense Account
Purpose of Exercise The purpose of this exercise is to create a Miscellaneous Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Profit & Loss Accounts P&L statement acct Misc. Expense Miscellaneous Expense
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 57: Create Cost of Goods Sold Expense Account
Purpose of Exercise The purpose of this exercise is to create a Cost of Goods Sold Expense account. This Income Statement account will track the expenses that are posted to this account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Profit & Loss Accounts P&L statement acct Cost of Goods Sold Cost of Goods Sold Expense
(Exit) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 58: Run General Ledger List of Accounts Report
Purpose of Exercise This exercise will provide you with a report that summarizes all accounts assigned to your company code. Use this accounts to verify that you have indeed created all the accounts you needed to create for your company. Navigation Menu Path Accounting Financial Accounting General Ledger Information System General Ledger Reports Master Data Chart of Accounts SAP Minimal Variant
Trans Code Enter the following information: Company Code: (Execute) Review the list of accounts C_ _ _
Verify details of: G/L Account 100_ _ _ 110_ _ _ 201_ _ _ 203_ _ _ 300_ _ _ 310_ _ _ 320_ _ _ 321_ _ _ 330_ _ _ 350_ _ _ 721_ _ _ 740_ _ _ 750_ _ _ 760_ _ _ 770_ _ _ 781_ _ _ 790_ _ _
Description Short Text Bank (Checking Account) Account Receivable Reconciliation Trading Goods Inventory Operating Supplies Inventory Accounts Payable Reconciliation Goods Receipt / Invoice Receipt Account Accrued Tax Output Accrued Tax Input Retained Earnings Common Stock Trading Goods Consumption / Expense Supplies Expense Utilities Expense Purchase Price Difference Account Information Technology Expense Miscellaneous Expense Cost of Goods Sold Expense
(Back)
(Exit) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Unit 7

Purpose of Unit The purpose of Unit 7 is to create the Rules (internal controls) and Master Data necessary for Material Management. This includes: Rules that control how master data is created and how master data responds when used in transactions. Master Data o Vendor Master Data who you buy from o Material Master Data what you buy
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 59: Vendor Account Groups

Purpose of Exercise This exercise is to have you review the different account groups that you will use to create your vendors. Account groups control the data required to create vendors just as the account groups you created for general ledger accounts controlled the information required to create general ledger accounts. This is a review only exercise (Do not change or save). Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Accounts Receivable and Accounts Payable Vendor Accounts Master Data Preparations for Creating Vendor Master Data Define Account Groups with Screen Layout (Vendors) SPRO
Trans Code
System Menu: Table View Change-->Display Select (Details) General Data KRED - Vendor (int.number assgnmnt)
Select Select
Review the required fields by double clicking on the various groups
DO NOT CHANGE ANY FIELDS

(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 60: Create Vendor Master Accounting Record
Purpose of Exercise This exercise has you create the general and financial views of a vendor master record. Business transactions are posted to accounts and managed using those accounts. A master record must be created for each account that you require. Vendor master records have three primary views: General Data Financial Accounting Data often referred to as company code data and Purchasing Data The master record can be created by financial accounting or purchasing. The record can be created with only that departments view along with the general view or it can be created centrally if all the information is known. Navigation Menu Path Accounting Financial Accounting Accounts Payable Master Records Create FK01
Trans Code
Enter the following information: Vendor: Company code Account group (Enter) Leave blank C_ _ _ KRED
Create Vendor: Address Name Name: Search Term Search term Address Postal code City Country Region
Promotions Ltd. _ _ _ _ _ _(Your Student Number) 95929 Chico US CA English
Communication Language
(Enter) Note: Page forward past views that do not contain relevant information N/A
Create Vendor: Control (Enter) N/A
Create Vendor: Payment transaction (Enter)
Create Vendor: Accounting Information Accounting Recon. Account: 300_ _ _
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(Enter)
Create Vendor: Payment transaction Accounting Payt term (Payment Terms): 0001 Select (Enter) N/A Check double inv.
Create Vendor: Correspondence Accounting

(Save) Record the vendor number _________________
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 61: Create Vendor Master Purchasing Record
Purpose of Exercise This exercise has you create the purchasing view for the vendor master you created in the previous exercise. Since you have a vendor number, this will be needed to complete the creation of the purchasing view. Navigation Menu Path Logistics Materials Management Purchasing Master Data Vendor Purchasing Create MK01
Trans Code
Create a purchasing view for your Promotions Ltd _ _ _ vendor. Vendor Purchasing Organization Account group (Enter) Internal # from previous exercise P_ _ _ KRED.
Create Vendor: Purchasing Data Conditions Order Currency Terms of payment (Save)
USD 0001
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 62: Create Vendor Master Record Centrally
Purpose of Exercise This exercise has you create all three views of the vendor master (general, financial, and purchasing).
Trans Code
Create all views for a new vendor called Slick Pens _ _ _. Vendor Leave Blank (system will generate the number) Company Code C_ _ _ Purchasing Organization P_ _ _ Account group KRED. (Enter)
Create Vendor: Address Name Name Search Term Search term Address Postal code City Country Region Communication Language
Slick Pens _ _ _ _ _ _(Your Student Number) 53201 Milwaukee US WI English
(Enter) Note: Page forward past views that do not contain relevant information
N/A Create Vendor: Control Create Vendor: Payment transactions N/A Create Vendor: Accounting Information Accounting Recon. Account = 300_ _ _ Create Vendor: Payment transactions Accounting Payment term = 0001 Select Check double inv. Create Vendor: Correspondence Accounting N/A Create Vendor: Purchasing data Order Currency = USD Terms of payment = 0001 (Save) Record the vendor number _________________
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Trans Code
Create all views for a new vendor called Premier Pens _ _ _. Vendor Leave Blank (system will generate the number) Company Code C_ _ _ Purchasing Organization P_ _ _ Account group KRED. (Enter)
Premier Pens _ _ _ _ _ _ (Your Student Number) 70803 Baton Rouge US LA English
Create Vendor: Control N/A N/A Create Vendor: Payment transactions Create Vendor: Accounting Information Accounting Recon. Account = 300_ _ _ Create Vendor: Payment transactions Accounting Payment term = 0001 Select Check double inv. Create Vendor: Correspondence Accounting N/A Create Vendor: Purchasing data Order Currency = USD Terms of payment = 0001 (Save) Record the vendor number _________________
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Trans Code
Create all views for a new vendor called Supply Box _ _ _. Vendor Leave Blank (system will generate the number) Company Code C_ _ _ Purchasing Organization P_ _ _ Account group KRED. (Enter)
Boxes Inc _ _ _ _ _ _ (Your Student Number) 57101 Sioux Falls US SD English
N/A Create Vendor: Control Create Vendor: Payment transactions N/A Create Vendor: Accounting Information Accounting Recon. Account = 300_ _ _ Create Vendor: Payment transactions Accounting Payment term = 0001 Select Check double inv. Create Vendor: Correspondence Accounting N/A Create Vendor: Purchasing data Order Currency = USD Terms of payment = 0001 (Save) Record the vendor number _________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 65: Initialize the Fiscal Period for Company Code
Purpose of Exercise The purpose of this exercise is to initialize the fiscal period for your company code. This allows for the movement of materials and will facilitate your ability to conduct transactions. Great care needs to be utilized when carrying out this exercise. Note: If you create an initial posting period in the future, no transactions will be possible until that period. You will then need to start over at the beginning of the exercises. Navigation Menu Path Tools Customizing IMG Execute Project Logistics General Material Master Basic Settings Maintain Company Codes for Materials Management SPRO
Trans Code
Enter the following information for your Company Code: Year Pe (Period) Select (Save) (Exit) Current Year (e.g, 2007) Enter the current period (1=January; 2=February, etc.) ABp (allow posting to previous period)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 67: Maintain Plant Parameters for Materials Management
Purpose of Exercise In this exercise you will specify the plant parameters you will need for material requirements planning.
Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Consumption-Based Planning Plant Parameters Carry Out Overall Maintenance of Plant Parameters SPRO
Trans Code
Enter the following information

Select Plant Select Select Select Plant Select P_ _ _ P_ _ _
Environment Select
Number Ranges Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant Select Assign no. range 01 to your plant (Save) (Back) (Save) (Back) (Save) (Back) (Save) (Back)
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Select Assign no. range 01 to your plant (Save) (Back twice)
Master data Select Select Plant: MRP controller (Save) Select Select Plant Marg. Op.Per. Fl Bef Fl After Rel. Per: (Save) (Back twice) P_ _ _ _ _ _ ( Your Student Number) 1 (Workdays prior to order start) 1 (Workdays between order start and scheduled start) 1 (Workdays between order due date and scheduled finish date) 1 (Workdays in release period) (Back three times) P_ _ _ _ _ _ and description (Your name)
Planned Orders Select Number of planned orders (Save) Select Select your plant Avail. Check Rule (Save) (Back) PP (Back) 1
Reporting Select Select Frequency (Save) (Back) Display list 1
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Planning Run Select Scheduling: Info Rec/Agreemt . 3 (Schedule Lines) U (Unknown)
Plant parameters Select Schedule lines Unknown Acct Assignment (Save) Select Planning horizon (Save) (Back three times) (Back two times)
15
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 68: Activate Material Requirements Planning
Purpose of Exercise This exercise activates Material Requirements Planning for your plant.
Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Consumption-Based Planning Planning Activate Material Requirements Planning SPRO
Trans Code
Enter the following information: Select Select (Save) Activate requirements planning for your plant (Back twice)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 69: Define Attributes for Material Types
Purpose of Exercise The purpose of this exercise is to define the attributes for the material types. The attributes for a material type determine the functions allowed for materials of that category (HAWA, HIBE, etc.). Each material type has specific functions and views required to maintain the data. Since this is client level configuration is shared by everyone, therefore in this exercise you will only have to review the settings established by the Instructor. Navigation Menu Path Tools Customizing IMG Execute Project Logistics General Material Master Basic Settings Material Types Define Attributes of Material Types SPRO
Trans Code
Select HAWA (Training Goods) Double Click Quantity/value updating

Qty updating Value update
Select Select

(Save) (Back
Complete the same set of operations for HIBE (Operating Supplies) after you are done with HAWA. (Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 70: Create Material Master for Trading Goods
Purpose of Exercise This exercise will have you create the trading good materials that will be necessary for your company. The Material Master has several views as you saw in the previous exercise when looking at the material type attributes. The views required are dependent on the type of material and the functionality required by the company. This exercise will also introduce you to the use of defaults in the creation of material master data. Navigation Menu Path Logistics Materials Management Material Master Material Create (Special) Trading Goods MMH1
Trans Code
First set the defaults (you may need to select the industry sector prior to setting the defaults) Select industry sector Retail Retail
System Menu: Defaults Industry Sector (Enter)
System Menu: Defaults Views Select the following views:
Basic data 1 Purchasing MRP 1 MRP 2 MRP 3 General Plant Data/Storage 1 Accounting 1 (Deselect the Sales Views if selected) Create views selected

Select (Enter)
System Menu: Default Organization levels Company code: Plant: C_ _ _ P_ _ _
Copy from C_ _ _ P_ _ _
Leave storage location blank (storage locations will be created automatically) (Enter)
Enter the following information to create the materials: Material BPEN_ _ _
(You may need to press enter once or twice to pass the views and organization level selections if you did not indicate that you only wanted to view these on request)
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Use the information following table for the inputs into the material master. Repeat the process for each of the materials. Use your student number for all entries where _ _ _ is indicated. Use the following information to create the materials Material Name BPEN_ _ _ Description Base Unit of Measure Material Group Gross & Net Weight / Unit Purchasing Group MRP Type MRP Controller Lot size Minimum Lot Size Planned Deliv. Time SchedMargin key Safety Stock Availability check Value Class Moving price Price Unit Barrel Pen Each (EA) 01 1 Oz ___ PD ___ EX 12 3 ___ 500 02 3100 $ 0.65 1
CPEN_ _ _ Click Pen Each (EA) 01 1 Oz ___
PPEN_ _ _ Premium Pen Each (EA) 01 2 Oz ___ PD ___ EX
Box_ _ _ Pen Box Each (EA) 01 1 Oz ___ PD ___ EX 144
Basic data 1 View
Purchasing View MRP 1 View PD ___ EX 12 MRP 2 View 3 ___ 150 MRP 3 View 02 3100 $ 1.50 1 02 3100 $ 3.00 1 02 3100 $ 0.20 1 Accounting 1 View 6 ___ 20 3 ___ 500
(Save after each material)
Record the system messages: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 71: (Optional) Create Material Master for Operating Supplies
Purpose of Exercise This exercise will have you create the operating supplies that will be necessary for your company. The Material Master has several views as you saw in the previous exercise when looking at the material type attributes. The views required are dependent on the type of material and the functionality required by the company. Use the same default information for this exercise that you used when creating the trading good material master data. Navigation Menu Path Logistics Materials Management Material Master Material Create (Special) Operating Supplies MMI1
Trans Code
Enter the following information: Enter material: (Enter) TAPE_ _ _
Use the following information to create the materials Material Description Base Unit of Measure Material Group Gross & Net Weight / Unit Order Unit Conversion factor for U of M Purchasing Group MRP Type Reorder Point MRP Controller Lot size Minimum Lot Size Fixed lot size Continue on next page 12 ___ FX ___ EX 1 10 ___ FX Tape_ _ _ Tape Each (EA) 01 8 Oz Purchasing DZ 1 = 12 ___ MRP 1 View PD PD PD VB 1 ___ EX 1 ___ CV 1 = 10 ___ ___ Tissue _ _ _ Tissue Carton (CAR) 01 1 lb Paper_ _ _ Paper Each (EA) 01 1 lb Forms_ _ _ Forms Carton (CAR) 01 30 lb
Basic data 1 View
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MRP 2 View Planned Deliv. Time SchedMargin key Safety Stock Availability check Value Class Moving price Price Unit 1 ___ 10 MRP 3 View 02 3030 $ 9.60 12 02 3030 $ 2.50 1 02 3030 $ 35.50 10 02 3030 $ 52.50 1 Accounting 1 View 1 ___ 10 2 ___ 2 5 ___ 1
(Save after each material)
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Purpose of Unit The purpose of Unit 8 is to establish some of the rules that will control the financial accounting (FI) transactions. In addition to the rules document number ranges will be established and a payment program will be established. Once these rules and other parameters are established you will test your system in the next unit.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 72: Define Posting Periods Variant
Purpose of Exercise This exercise will define the variant to which the posting period will be assigned. Financial accounting (FI) posting periods will be opened to allow transactions to be tracked by period. This variant will then be assigned to your company code. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Posting Periods Define Variants for Open Posting Periods SPRO
Trans Code
Enter the following information: Click on Variant Name (Save) (Back twice) V_ _ _ Posting Period Variant _ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 73: Open and Close Posting Periods
Purpose of Exercise The purpose of this exercise is to establish when the posting periods will be effective. In addition to establishing the open posting periods for financial accounting, you will also define the additional special closing periods. This will be in accord with the fiscal year variant (K1 calendar year with 1 special closing period) you set up earlier. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Posting Periods Open and Close Posting Periods SPRO
Trans Code
Enter the following information: Click on Var. A V_ _ _ + (Valid for all accounts)
Leave account columns blank Open periods 1 to 12 plus one extra period for current fiscal year by typing the following: From per 1 Year To period Year From per 2 Year To period Year (Save) (Back twice) 13 2010 13 2007 12 2010 1 2007
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 74: Assign Posting Period Variant to Company Code
Purpose of Exercise This exercise will have you assign the posting period variant to your company code.
Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Posting Periods Assign Variants to Company Code SPRO
Trans Code
Enter the following information: Find your Company Code Variant (Save) (Back) C_ _ _ V_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 75: Create Tolerance Groups for Account Postings
Purpose of Exercise The purpose of this exercise is to set up the tolerances you will use for the entry of financial accounting (FI) documents. A blank group is a valid tolerance group. By creating a blank group code the system will apply these rules as defaults unless a specific group is entered resulting in any person not assigned to another group by default will be assigned to this group Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Line Item Define Tolerance Groups for Employees SPRO
Trans Code
Enter the following information: Click on the Group Company code button. Leave blank C_ _ _ 1,000,000 100,000 5% 100 100 10% 10% 10 10
Upper limits for posting procedures Amount per document Amount per open item account item Cash discount per line item
Permitted payment differences Revenue Expense (Enter) (Save) (Back twice)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 76: Setup Payment Program

Purpose of Exercise The payment program allows the company to have flexibility in paying bills. Example 1 Company code 0001 pays its own items and the items of company codes 0002 and 0003. All items are grouped into one payment. Company code 0001 0002 0003 Paying company code Sending company code 0001 0001 0001 0001 0001 0001
Example 2 Company code 0001 pays its own items and the items of company codes 0002 and 0003. However, a separate payment is created for each company code. Company code 0001 0002 0003 Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method/Bank Selection for Payment Program Setup All Company Codes for Payment Transactions SPRO Paying company code Sending company code 0001 0001 0001 0001 0002 0003
Trans Code
Enter the following information: Click on the Company Code (Enter) Sending company code Paying company code (Save) (Back twice) button. C_ _ _ C_ _ _ (your company code) C_ _ _ (your company code)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 77: Create Tolerance Groups for Accounts Receivable and Accounts Payable
Purpose of Exercise This exercise will create tolerance groups that contain rules that affect cash discount and payment difference processing. These rules become effective during payment entry. As with earlier tolerances, a blank group field means that these rules will apply to all persons not assigned to a specific group. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments Manual Outgoing Payments Define Tolerances (Vendors) SPRO
Trans Code
Enter the following information: Click on the Company Code Tolerance group Tolerance group description button. C_ _ _ Leave blank DEFAULT _ _ _
Permitted Payment Differences Gain o Amount o Percent Loss o Amount o Percent
10 1 1 1
Specifications for Posting Residual Items from Payment Differences Select Payment Term from Invoice Select (Enter) (Save) (Back twice) Only grant partial cash disc
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 78: Create Financial Accounting (FI) Document Numbers
Purpose of Exercise The purpose of this exercise is to have you establish which number ranges are assigned to the company code. Each document in the system is unique based on the following: Company Code Fiscal Year Document Number Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Document Number Ranges Copy to Company Code SPRO
Trans Code
Enter the following information: Source Company Code Details Company code Target Company Code Details Company code (Execute) to accept the message. Review the information (Back twice) US01 C_ _ _
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Purpose of Unit The purpose of Unit 9 is to post your initial cash investment and conduct and initial test on the system by posting the purchase of some supplies.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 79: Review Document Types

Purpose of Exercise The purpose of this exercise is to review the different type of documents you will be using. A document type is used to; distinguish between different types of business transactions, the document type controls which account type that you are allowed to post (G/L account, customer, vendor, fixed assets.), and a document type is assigned to a specific document number range. Below are listed a few of the document types that we will be using throughout this course. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Document Document Header Define Document Types SPRO
Trans Code
(Change -> Display)
Make sure the title of the screen is: Display View Document Types; Overview Select the following document types and record the Document Number Ranges
Review the details of: Document type DR DZ KR KZ RE SA WA WE
Document Customer invoice Customer payment Vendor invoice Vendor payment Invoice Gross G/L account document Goods issue Goods receipt
Document Number Range
(Details) list the Documents Number Range in the table above.
(Back twice) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 80: Post Initial Cash Investment by Owners
Purpose of Exercise The purpose of this exercise is to test your initial FI setup. The business scenario is that you ingest $750,000 to start up your business. You need to account for this transaction in your Financial Accounting System. Navigation Menu Path Accounting Financial Accounting General Ledger Posting Enter G/L Account Document FB50
Trans Code
Enter the following information: Basic data Tab Document Date Currency Company Code Todays date USD (Your code should default) 100_ _ _ (Bank - Checking) Debit $ 750,000 350_ _ _ (Common Stock) Credit $ 750,000
On the first line Enter: G/L acct D/C Amount in doc.curr.
On the second line Enter: G/L acct D/C Amount in doc.curr. (Enter) Use the (Post)
button to see if the postings are correct.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 81: Post Purchase of Operating Supplies
Purpose of Exercise The purpose of this exercise is to test your initial FI setup. The business scenario is that you need some office supplies immediately. You drive down to Office Supply Depot and buy $75 of supplies (paper, folders, etc) and pay for the purchase with a company check. Navigation Menu Path Accounting Financial Accounting General Ledger Posting Enter G/L Account Document
Trans Code Enter the following information: Basic data Tab Document Date Currency Company Code Todays date USD (Your code should default) 740_ _ _ (Supplies Expense Account) Debit $ 75 100_ _ _ (Bank - Checking) Credit $ 75
On the first line Enter: G/L acct D/C Amount in doc.curr.
On the second line Enter: G/L acct D/C Amount in doc.curr. (Enter) Use the (Post)
button to see if the postings are correct.

(Exit) (To return to the Easy Access Menu)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 82: Display and Review General Ledger Account Balances and Individual Line Items
Purpose of Exercise The purpose of this exercise is to Display the General Ledger Account balance and line item.
Navigation Menu Path Accounting Financial Accounting General Ledger Account Display Balances
Trans Code Enter the following information: G/L Account Company code Fiscal year (Execute) Record the entry below (Back) G/L Account (Execute) Record the entry below (Back) G/L Account (Execute) Record the entry below 740_ _ _ 350_ _ _ 100_ _ _ C_ _ _ 2007
Record the balances for the current period Account Period Debit Credit 100_ _ _ 350_ _ _ 740_ _ _
Balance
Cumulative Balance
(Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Business Case Scenario

Purpose of Exercise Pen Inc. has rented more warehouse space and is about to receive the invoice for the first months lease. In order to do this, you must create a new vendor and add an expense account for rent.
Unit 10:
Purpose of Unit The purpose of Unit 10 is to test your systems ability to receive invoices from vendors and post payment to the vendors account.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 83: Create Vendor Master Record for Landlord
Purpose of Exercise The purpose of this exercise is to create a new vendor. The Chief Financial Officer has requested you create a new vendor account for Tanager Leasing the firm from which you are renting your new office and warehouse space. Navigation Menu Path Accounting Financial Accounting Accounts Payable Master Records Create FK01
Trans Code
Enter the following information: Vendor Company Code Account group Reference Reference Company code (Enter)
Leave blank C_ _ _ KRED (one of your other vendors) C_ _ _
Create Vendor: Address Name Name Search Term Search term Street Address City Postal code Country Region Language (Enter three times)
Tanager Leasing _ _ _ ___ Vermillion 57069 US SD EN
Create Vendor: Accounting information Accounting Accounting Information Recon. account 300_ _ _ (Enter) Create Vendor: Payment transactions Accounting Payment data Payt Terms 0001 Select Chk double inv. (Save)
(Back) Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 84: Create Rent Expense Account
Purpose of Exercise This exercise has you create and new expense account for rent in your chart of accounts using a previous account as a template for the new account. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally FS00
Trans Code
Enter the following information: G/L Account Company Code Click on G/L Account Company Code (Continue) 781_ _ _ C_ _ _ 780_ _ _ C_ _ _
Type/Description TAB Description Short Text G/L Acct Long Text
Rent Expense Rent Expense
All other settings remain unchanged. (Save) (Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 85: Create Invoice Receipt for Rent Expense
Purpose of Exercise The purpose of this exercise is to log the invoice that Tanager Leasing, Inc. has sent for the first months rent of $1,500.00 total. Please post the invoice using the accounts you have created in your Company code.
INVOICE # 123 CURRENT Month Rent Total

Navigation Menu Path
Tanager Leasing, Inc.
$1,500.00
Accounting Financial Accounting Accounts Payable Document Entry Invoice FB60
Trans Code
Enter the following information: If your Company Code did not default in: System Menu: Edit Change Company Code and enter yours. Basic data Tab Vendor Invoice date Amount G/L acct D/C Amount in doc.curr. (Enter) Use the button to see if the postings are correct. Amount 15001500 Comments (# for Tanager Leasing _ _ _) Today $ 1,500 780_ _ _ (Rent Expense) Debit $ 1,500
Verify details of: Account Description 100_ _ _ Tanager Leasing 780_ _ _ Rent Expense (Post)

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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 86: Display and Review General Ledger Account Balances and Individual Line Items
Purpose of Exercise The purpose of this exercise is to display the Rent Expense account balance and line item.
Menu Path
Accounting Financial Accounting General Ledger Account Display Balances
Trans Code Enter the following information: G/L account Company code Fiscal year (Execute) Record the information in the ledger below. Double click on period balance to see individual line items. 780_ _ _ C_ _ _ 2007
Record the balance of the Rent Expense Account for the current and previous period Period Debit Credit Balance Cumulative Balance
(Exit Twice)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 87: Display and Review Vendor Account Balances and Individual Line Items
Purpose of Exercise The purpose of this exercise is to display the Vendor account balance and line item.
Navigation Menu Path Accounting Financial accounting Accounts Payable Account Display Balances
Trans Code Enter the following information: Vendor Company code Fiscal year (Execute) Record the information in the ledger below. Double click on period balance to see individual line items. Vendor # for Tanager Leasing C_ _ _ 2007
Record the balance of the Vendor Account for the current and previous period Period Debit Credit Balance Cumulative Balance
Sales/ Purchases
(Exit Twice)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 88: Post Payment to Landlord

Purpose of Exercise This exercise will have you pay the invoice from Tanager Leasing which is due for payment now. You are requested to clear the invoice amount by posting an outgoing payment using the bank account of your chart of accounts. Navigation Menu Path Accounting Financial Accounting Accounts Payable Document Entry Outgoing Payment Post F-53
Trans Code
Enter the following information: Document Date Todays date 100_ _ _ (Bank - Checking) 1500 Invoice # 123 (Vendor # for Tanager Leasing _ _ _) Bank data Account Amount Text
Open items selection Account
All other settings remain unchanged. Select Review the line item information. Double click on the line item you want to post payment against. When assignment has been made correctly the Not assigned value on the bottom should equal $0.00
(Post)

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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 89: Display and Review General Ledger and Vendor Account Balances and Individual Line Items
Purpose of Exercise To Display the Vendor account balance and line item
Navigation Menu Path Accounting Financial Accounting General Ledger Account Display Balances
Trans Code Enter the following information: G/L account Company code Fiscal year (Execute) Double click on period balance to see line items. Amount in local cur. Document No 780_ _ _ C_ _ _ 2007
Record details of payment to landlord: Type Doc. Date
Navigation Menu Path Accounting Financial Accounting Accounts Payable Account Display/Change Line Items
Trans Code Enter the following information: Vendor selection Vendor account Company code Line item selection Select (Execute) Double click on individual document to see additional information. Document No Type Amount in doc. curr. (Vendor # for Tanager Leasing _ _ _) C_ _ _ All items
Verify details of: Status
(Exit Twice)
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Purpose of Unit The purpose of Unit 11 is to establish some of the rules that will control the material management (MM) transactions. Included in these rules is the configuration of automatic account assignment. Once these rules and other parameters are established you will test your system in the next unit.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 90: Set Default Values for Inventory Management Reservations
Purpose of Exercise This exercise will enable the system to automatically create a storage location upon goods receipt. The movement allowed indicator must be turned on to allow goods movements for reservations. The Days movement allowed limits the goods movements to a specific number of days prior to the reservation date. The Retention period is the number of days after the reservation date the system will hold the reservation before setting the deletion indicator. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Inventory Management and Physical Inventory Plant Parameters
Trans Code Enter the following information: Click on the Plant button. P_ _ _ Create SLoc.automat. Del. compl. default Movement Allowed 15 days 15 days
Goods movements Select Select Reservations Select Days mvt. allowed Retention period (Save)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 91: Maintain Purchasing Tolerance Limits
Purpose of Exercise The purpose of this exercise is for you to decide how much variation from the data in the purchase order will be allowed. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Purchasing Purchase Order Set Tolerance Limits for Price Variance
Trans Code Enter the following information: Click on the Tolerance key Company Code (Enter) Select Do not check for all limits. (Next Entry) Tolerance key Company Code (Enter) Select Do not check for all limits. (Save) SE (Max. cash disc. deduction purchasing) C_ _ _ button. PE (Price variance: purchasing) C_ _ _
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 92: Maintain Goods Receipt Tolerance Limits
Purpose of Exercise The purpose of this exercise is for you to decide how much variation from the data in the purchase/production order will be allowed. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Inventory Management and Physical Inventory Goods Receipt Set Tolerance Limits
Trans Code Enter the following information: button. Click on the Tolerance key Enter your company code: (Enter) Select Do not check for all limits. (Next Entry) Tolerance key Company Code B1 (Order price qty variance (GR)/E-MSG) C_ _ _
B2 (Order price qty variance (GR)/W-MSG) C_ _ _
(Enter) Lower limit Percentage Select Tolerance limit Upper limit Percentage Select Tolerance limit (Next Entry) Tolerance key Company Code (Enter) Select Do not check for all limits. (Save)
Check limit 10 % Check limit 0%
VP Moving average price variance C_ _ _
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 93: Maintain Invoice Receipt Tolerance Limits
Purpose of Exercise The purpose of this exercise is for you to decide how much variation from the data in the purchase order will be allowed. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Logistics Invoice Verification Invoice Block Set Tolerance Limits
Trans Code Enter the following information: Click on the Tolerance key Company Code (Enter) Select Do not check for all limits. (Save) Use the (Next Entry) button to move to the next blank screen button. Reference table below C_ _ _
Repeat for each tolerance keys in the table below: Description Amount for item without order reference Amount for item with order reference Form small differences automatically Percentage OPUn Variance (IR before GR) Percentage OPUn Variance (GR before IR) Exceed amount: quantity variance Var. from condition value Price variance Price variance: estimated price Date variance (value x days) Record the system message: Message Tolerance Key AN AP BD BR BW DQ KW PP PS ST
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 94: Set (review) Valuation Control
Purpose of Exercise This exercise will have you activate the valuation grouping code, you can group together valuation areas allowing multiple plants to share the same rules. This makes the configuration of automatic postings much easier. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Valuation and Account Assignment Account Determination Account Determination Without Wizard Define Valuation Control
Trans Code
Enter the following information: The valuation grouping code default is set as active Verify that the valuation grouping code is active. (Back)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 95: Assign Valuation Area Grouping
Purpose of Exercise This exercise has you group together valuation areas and use the same rules for account determination. Within the chart of accounts, you assign the valuation grouping code to the valuation areas you want to assign to the same account. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Valuation and Account Assignment Account Determination Account Determination Without Wizard Group Together Valuation Areas
Trans Code Enter the following information: Assign valuation grouping code to your valuation area Val. Grpg Code (Save) G_ _ _
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 96: Define (review) Valuation Classes
Purpose of Exercise The purpose of this exercise is to review which valuation classes are assigned to each material type and account category reference. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Valuation and Account Assignment Account Determination Account Determination Without Wizard Define Valuation Classes
Trans Code
Enter the following information: Click on the button.
Note the account category reference assigned to each of the material types used in this case study.
Verify details of: Material Type HAWA HIBE
Material Type Description Trading Goods Operating supplies
Account Category Reference 0005 0002
Description Reference for trading goods Ref. for operating supplies
(Exit) button. Description Trading Goods Operating supplies Description Reference for trading goods Ref. for operating supplies
Click on the Verify details of: Valuation Account Category Class Reference 3100 0005 3030 0002
Note of which valuation classes are linked to the account category references you noted from above. Why do Operating Supplies have more than one valuation class? (Exit Twice)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 97: Configure Automatic Postings for Goods Movement
Purpose of Exercise This exercise will have you establish the system settings controlling automatic postings to G/L accounts for Inventory Management and Invoice Verification transactions. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Valuation and Account Assignment Account Determination Account Determination Without Wizard Configure Automatic Postings
Trans Code The next few pages will have you create the automatic postings rules for the following transactions: Transaction Description Inventory Posting Materials Management Small Differences Offsetting Entry for Inventory Postings Cost (price) Difference GR/IR clearing account Click on the Inventory Posting Double click on Transaction Event Key Chart of Accounts (Enter) Select Select (Save) Valuation modif. Valuation class BSX C_ _ _ button. Key BSX DIF GBB PRD WRX
Transaction Event Key BSX Enter the following automatic account assignments (use F4 to lookup the account number): Valuation +Valuation Class Enter Account Modifier Account Name Number G_ _ _ 3100 Trading Goods Inventory Account G_ _ _ 3030 Operating Supplies Inventory

(Save) (Back)
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Offsetting Entry for Inventory Posting Double click on Transaction Event Key GBB
Note: See the spreadsheet on the next page for additional information on Account Modifiers. Select Select Select (Save) General modification Valuation modif. Valuation class
Transaction Event Key GBB Enter the following automatic account assignments (use F4 to lookup the account number): Valuation General Valuation Enter Account Modifier Modification Class Account Name Number G_ _ _ (Blank) 3030 Supplies Expense Account G_ _ _ (Blank) 3100 Trading Goods Expense Account G_ _ _ VAX 3100 Cost of Goods Sold Account G_ _ _ VBR 3030 Supplies Expense Account G_ _ _ VBR 3100 Trading Goods Expense Acct (Save) (Back)
Cost (price) difference Double click on Transaction Event Key Select Select (Save) PRD Valuation modif. Valuation class
Transaction Event Key PRD Enter the following automatic account assignments (use F4 to lookup the account number): Valuation Valuation Class Enter Account Modifier Account Name Number G_ _ _ 3030 Pur Price Dif Acct G_ _ _ 3100 Pur Price Dif Acct

(Save) (Back)
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Materials Management Small Differences Double click on Transaction Event Key (Save) DIF
Enter the following automatic account assignments (F4 to lookup the account number): Enter Account Account Name Number Pur Price Dif Account

(Save) (Back)
Goods receipt / inv. receipt clearing acct Double click on Transaction Event Key Select Select (Save) WRX Valuation modif. Valuation class
Transaction Event Key WRX Enter the following automatic account assignments (use F4 to lookup the account number): Valuation Valuation Class Enter Account Modifier Account Name Number G_ _ _ 3030 GR/IR Account G_ _ _ 3100 GR/IR Account

(Save) (Exit back to the IMG Menu)
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Transaction Event Key: GBB Inventory Posting Offsetting Entries General Account Modifier Description of Usage of Account Modifier Key Goods Receipt From Purchase Order with Account Assignment post to consumption (exp.>rev.) i.e., non-inventory purchases Goods Receipt From Production Order post to production settlement Goods Receipt Into Initial Stock only used once for posting inventory off-set for initial stock data load MM Physical Inventory Posting MM goods receipt for increase count in stock, goods issue for decrease count in stock WMS Physical Inventory Posting WMS goods issue to difference (i.e., loss) for decrease count in stock, goods receipt from difference for increase count in stock Goods Issue To Sales - post to Cost of Goods Sold (COGS) Material Movement Type 101>102 GR from Purchase Order>Reverse 101>102 GR from Production Order>Reverse 122 RE return to order 561>562 GR to Initial Stock Unrestricted>Reverse 563>564 GR to Initial Stock Quality Insp>Reverse 565>566 GR to Initial Stock Blocked>Reverse 701>702 GR to Physical In. Unrestricted>GI from 703>704 GR to Physical In. Quality I>GI from 707>708 GR to Physical In. Blocked>GI from 711>712 GI to Inventory diff.>GR from diff. 713>714 GI to Inventory diff. QI>GR from diff. 717>718 GI to Inventory diff. Blocked>GR from 231>232 GI to Sales Order (MM)>Reverse MM 531> GD, goods issue to delivery 623>624 GI cust. Returnable packaging>Reverse 633>634 GI customer consignment>Reverse 531> GD, goods issue to delivery 623>624 GI cust. Returnable packaging>Reverse 633>634 GI customer consignment>Reverse 641>642 TR to Stock in Transit Order>Reverse 543>544 GI to Subcontracting Stock>Reverse 201>202 GI to Cost Center>Reverse 221>222 GI to Project>Reverse 251>252 GI to Sales>Reverse 261>262 GI to Order>Reverse 291>292 GI to All Acct. Assignments>Reverse 401>402 TP Own from Sales Order>Reverse 551>552 GI to Scrap Unrestricted>Reverse 553>554 GI to Scrap Quality Insp.>Reverse 555>556 GI to Scrap Blocked Stock>Reverse 331>332 GI to Sampling Quality Insp.>Reverse 333>334 GI to Sampling Unrestricted>Reverse 453>454 TP Returns to Own>Reverse 501>502 GR w>o P.O. to Unrestricted>Reverse
AUF BSA
INV
VAX
VAY
Goods Issue To Sales for Consumption (e.g., goods issue to free sales samples)
VBO VBR
Goods Issue To Subcontracting Stock Goods Issue to Consumption - post to material consumption (i.e., expense>revenue) (e.g., goods issue to job or production order) Goods Issue to Scrap post to scrapping material consumption (i.e., expense>revenue) Goods Issue to Sampling post to sampling material consumption (i.e., expense>revenue) Transfer Returns Own (unrestricted) post valuated returned stock from customer Goods Receipt w>o Purchase Order post expense>revenue account as offset to inventory received without purchase order
VNG VQP ZOB
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 98: Configure Automatic Postings for Taxes
Purpose of Exercise This exercise will have you establish the system settings controlling automatic postings to G/L accounts for taxes. Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Posting Define Tax Accounts
Trans Code Enter the following information: Select Sales Tax 1 MW1
(Choose) (Save) Account (Save) (Back) Select Sales Tax 1 VS1 320_ _ _
(Choose) (Save) Account (Save) 321_ _ _
(Exit back to the IMG Menu)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 99: Set Parameters for Invoice Verification
Purpose of Exercise The objective of this exercise is to link the company code to the valuation elements within materials management. The Price Carry Over indicates whether price changes in the previous period or previous year are to affect the prices in the current period. If you do not select this field, the price changes in the previous period or previous year have no effect on the prices in the current period. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Valuation and Account Assignment Configure Price Change in Previous Period
Trans Code Enter the following information: Click on the CoCd (Company Code) Check (Save) button. C_ _ _ Price carr. over
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 100: Create Default Values for Invoice Verification
Purpose of Exercise The purpose of this exercise is for you to maintain the default values for the tax codes used in invoice verification. Navigation Menu Path Tools Customizing IMG Execute Project Materials Management Logistics Invoice Verification Incoming Invoice Maintain Default Values for Tax Codes
Trans Code Enter the following information: Click on the Company Code button. C_ _ _ XI
Defaults, domestic: Tax Code (Save)
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Purpose of Unit The purpose of Unit 12 is to test the integration of your Material Management and Financial Accounting systems. With both configured, it is time to create purchase orders for trading goods and operating supplies, receive the invoices and post payment to the vendors for goods provided to your company.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 101: Create Purchase Order for Slick Pens
Purpose of Exercise The purpose of this exercise is to create a Purchase Order from a know supplier (Slick Pens). This is the first order and you need to evaluate their pens and timeliness of delivery. Navigation Menu Path Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known ME21N
Trans Code
Enter the following information: Vendor Quantity 500 250 1000 (# for SLICK PENS) Delivery Date (Future date) (Future date) (Future date) Net Price .65 1.50 0.29 Currency USD USD USD Verify details of: Material BPEN_ _ _ CPEN _ _ _ BOX _ _ _ (Header)
Record the total value of the Purchase order $__________(990)

Save past the message indicating that no output device (ie. Printer, FAX) was found to communicate this PO to the vendor. Record Purchase Order Number _________________________ (Save)
Conditions Tab
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 102: Create Purchase Order for Premier Pens
Purpose of Exercise This exercise will have you create a Purchase Order from a know supplier (Premier Pens). This is the first order and you need to evaluate their pens and timeliness of delivery. Navigation Menu Path Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known ME21N
Trans Code
Enter the following information: Vendor Quantity 250 10 (# for PREMIER PENS) Delivery Date (Future date) (Future date) Net Price 1.60 3.00 Currency USD USD Verify details of: Material CPEN_ _ _ PPEN _ _ _
(Header)
Record the total value of the Purchase order $__________(430)

Conditions Tab
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 103: Create Purchase Order for Promotions Ltd.
Purpose of Exercise The purpose of this exercise is to create a Purchase Order from a know supplier (Promotions Ltd.). This is the first order and you need to evaluate their pens and timeliness of delivery. Navigation Menu Path Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known ME21N
Trans Code
Enter the following information: Vendor Quantity 500 5 (# for Promotions Ltd.) Delivery Date (Future date) (Future date) Net Price .50 3.50 Currency USD USD Verify details of: Material BPEN_ _ _ PPEN _ _ _
(Header)
Record the total value of the Purchase order $__________(267.50)

Conditions Tab
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 104: Create a Goods Receipts for the Purchase Orders
Purpose of Exercise The purpose of this exercise is to receive the stock items into inventory that were ordered from the three vendors. Navigation Menu Path Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order GR for Purchase Order (MIGO)
Trans Code Enter the following information: System Menu: Settings Default Values Select Propose the OK Function in Future Select Propose All Items (Adopt) (Continue) Enter the PO number 4500000???( next to the Purchase order field) (Execute) Ensure each line item OK is checked SLoc (Storage Location) Select or (Save) 10 (Inventory)
Repeat exercise and receive the goods for all three POs individually.
Record the system message: Purchase order
Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 105: Create an Invoice Receipts from Vendors
Purpose of Exercise The purpose of this exercise is to record the information from the invoice sent to you by the vendor. The following vendor invoices for the stock items ordered should be entered.
INVOICE #567 ITEMS: BPEN _ _ _ CPEN _ _ _ BOX _ _ _ TOTAL Thank you for your order
(Todays date) QUANTITY 500 250 1,000
PER $0.65 $1.50 $0.29
Slick Pens PRICE: $325.00 $375.00 $290.00 $990.00
INVOICE #3245 ITEMS: CPEN_ _ _ PPEN _ _ _ TOTAL Thank you for your order
(Todays date) QUANTITY 250 10
PER $1.60 $3.00
Premier Pens PRICE: $400.00 $ 30.00 __________ $430.00
INVOICE #7890 ITEMS: BPEN_ _ _ PPEN _ _ _ TOTAL Thank you for your order
(Todays date) QUANTITY 500 5
PER $0.50 $3.50
Promotions Ltd PRICE: $250.00 $ 17.50 __________ $267.50
Navigation Menu Path Logistics Materials Management Logistics Invoice Verification Document Entry Enter Invoice
Trans Code Enter the following information: Basic data Tab Invoice date Company Code Purchase Order (Enter) Today's date C_ _ _ (Enter your purchase order number)
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Enter amount: (Enter) Use the button to see if the postings are correct. $ 990.00 (or whatever the amount from the physical invoice above)
Verify details of: GL Description Account
Amount
Comments
Amount
Comments
Amount
Comments
(Post)
Record the system message: Purchase order Vendor
Invoice #
Message
(Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 106: Post Payments to Vendors

Purpose of Exercise The purpose of this exercise it to make payment to the vendors for the goods received. You will post a payment to each of the three vendors from which you have purchase trading goods. Since the invoices are due for payment now. You are requested to clear the invoices by posting outgoing payments to the vendors using the bank account (100_ _ _) of your chart of accounts. Navigation Menu Path Accounting Financial Accounting Accounts Payable Document Entry Outgoing Payment Post
Trans Code Enter the following information: Document Date Todays date 100_ _ _ (Bank Checking) Enter the amount you are going to pay (# for Slick Pens_ _ _) Bank data Account Amount Open items selection Account
All other settings remain unchanged. Select Review the balance. Choose the invoice you wish to make payment against by double clicking on the USD Gross amount. Ensure Not assigned field equals zero. (Save)
Repeat this process for the other two vendors Record the system message: Purchase order Vendor
Invoice #
Message

(Exit back to the Easy Access Menu) Select
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Display vendor line items Navigation Menu Path Accounting Financial Accounting Accounts Payable Account Display/Change Line Items
Trans Code Enter the following information: Vendor selection Vendor Company code Line item selection Select (Execute) Review for Open items (Enter the vendor number range from the lowest to the highest) C_ _ _ All items
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Purpose of Unit The purpose of Unit 13 is to have you run Material Requirements Planning to generate a purchase requisition that you will convert to a purchase order. Following conversion of the requisition you will change the quantity and complete the purchasing (procurement) cycle.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 107: Create Purchase Outline Agreement (Contract) for Stock Items
Purpose of Exercise The purpose of this exercise is to create a contract for the premium pen from Premier Pens for 100 pens in the next three months. Navigation Menu Path Logistics Materials Management Purchasing Outline Agreement Contract Create ME31K
Trans Code
Enter the following information: Vendor Agreement Type (Enter) (3 months from today) (# for Premier Pens) MK (Quantity Contract)
Administrative Fields Validity end (Overview)
Outline Agreement Items Material Targ. Qty Net Price SLoc (Save)
PPEN_ _ _ 300 $ 3,00 10
Record the system message: Message No message record could be found for output of message.
Select
to accept the message.
Record Contract Number: ______________________________ (Exit back to the Easy Access Menu)
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Purpose of Exercise The purpose of this exercise is to allow the system to plan the availability and requirements for the premium pen. Navigation Menu Path Logistics Materials Management Materials Requirements Planning (MRP) MRP Planning Single-Item, Single-Level
Trans Code Enter the following information: Material Plant PPEN_ _ _ P_ _ _ NETCH 2 3 1 1 1 Display results before they are saved
MRP control parameters Processing key Create purchase req Delivery schedules Create MRP list Planning mode Scheduling
Display results before they are saved Select (Enter)
A warning message appears - please check input parameters (Enter) again to confirm and check the warning message Review the MRP list (Save)
(Exit back to the Easy Access Menu)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 109: Convert Proposed Purchase Requisition to Purchase Order
Purpose of Exercise In this exercise you will accept the system generated replenishment proposal for PPEN_ _ _. After you have adopted the system proposal you will increase the quantity to 100 for PPEN_ _ _. Navigation Menu Path Logistics Materials Management Materials Requirements Planning (MRP) MRP Evaluations Stock/Reqmts List
Trans Code Enter the following information: Individual access Tab Material Plant (Enter) Double click the MRP element (Change Element) Todays Date 10 PurRqs PPEN_ _ _ P_ _ _
Item Overview section Delivery Date Stor. Loc.
Item section Source of Supply Tab Item Overview section Quantity Vendor (Enter) Click once on Open Requisitions (Adopt) (Save) Double click the MRP element PurRqs 100 Select your line with your contract number (Info/agmt. 460000####)
to convert the MRP generated purchase requisition to a PO. (# for Premier Pens)
In the Document Overview window on left side of screen
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(Item overview) (Header) Gross Price $ __________________
Conditions Tab Record the value of the Purchase Order (Save)
Record the Purchase Order Number _______________________________ (Refresh) You should see the MRP Element Data changes to your Purchase Order Number (Exit back to the Easy Access Menu)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 110: Review Outline Agreements

Purpose of Exercise Review the outline agreement you assigned to the purchase order.
Navigation Menu Path Logistics Materials Management Purchasing Outline Agreements List Displays By Agreement Number
Trans Code Enter the following information: Purchasing document Purchasing organization (Execute) Examine your open target quantity (Exit back to the Easy Access Menu) Leave Blank P___
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 111: Create a Goods Receipt

Purpose of Exercise The purpose of this exercise is to receive the pens into inventory.
Navigation Menu Path Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order GR for Purchase Order (MIGO)
Trans Code Enter the following information: Purchase Order (Execute) Once executed you should see the purchase order appear in the My Documents list on the left of the screen, the document you are working with should be highlight in red. Ensure each line item OK is checked Make sure you have entered your storage location Select or (Save) 4500000???
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 112: Create an Invoice Receipt from Vendor
Purpose of Exercise The purpose of this exercise is to record the invoice sent by the vendor for the PO for the pens ordered. Premier Pens, Inc. ITEMS: PPEN _ _ _ TOTAL We appreciate your business QUANTITY 100 PER $ 3.00 INVOICE #203-45879 PRICE: $ 300.00 __________ $ 300.00
Trans Code Enter the following information: Basic data Tab Invoice date Company Code Currency (behind amount) Purchase Order (Enter) Enter amount: Tax code: (Enter) Use the (Post) button to see if the postings are correct. $ 300 (from the physical invoice) XI Today's date C_ _ _ USD (Enter your purchase order number)
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Purpose of Exercise This exercise has you post payment to the vendor for the pens. Since the invoice for Premier Pens is due for payment. You are requested to clear the invoice amount by posting an outgoing payment using the bank account (100_ _ _). Navigation Menu Path Accounting Financial Accounting Accounts Payable Document Entry Outgoing Payment Post
Trans Code Enter the following information: Document Date Todays date 100_ _ _ (Bank - Checking) $ 300 Invoice # 203-45879 (for Premier Pens _ _ _) Bank data Account Amount Text
Open items selection Account
All other settings remain unchanged. Select Review the balance. Choose the invoice you wish to make payment against by double clicking on the GBP Gross amount. Ensure Not assigned field equals zero. (Post)

(Exit back to the Easy Access Menu) Select
Page 146

Purpose of Unit The purpose of Unit 14 is to create the organizational structure necessary to carry out the customer order management functions of your company.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 114: Create Sales Organization

Purpose of Exercise This exercise will have you create the Sales Organization. This is the highest level organizational structure in Sales and Distribution. Your pen company will have one Sales Organization. The sales organization is the unit or structure responsible for the terms and conditions for the sale of products or services. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Sales and Distribution Define, copy, delete, check sales organization
Trans Code Double click on: Define Sales Organization. Select Sales Organization Description Detailed information Address text name Letter header text Footer lines text Greeting text name Sales org.calendar Rebate proc.active Select the address Postal Code City Country Region Language (Copy (Save) button 57069 Vermillion US SD English S_ _ _ (use your team number) Pen Inc Sales _ _ _ ADRS_SENDER ADRS_HEADER ADRS_FOOTER ADRS_SIGNATURE US Checked
(Copy) verify the address information. Record the system message: Message

(Exit) (Cancel) S999 S_ _ _
(Alternative Option) Select (Copy As) Sales Organization (Enter)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 115: Assign Sales Organization to Company Code
Purpose of Exercise This exercise will tie your Sales Organization to Finance Accounting (FI) by assigning it to your Company Code. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Sales and Distribution Assign sales organization to company code
Trans Code Enter the following information: Select your sales organization Assign it to your company code (Enter) (Save) (Exit) S_ _ _ C_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 116: Define Distribution Channels

Purpose of Exercise This exercise will have you review the two distribution channels you will be using. Since distribution channels are created at the client level, once they are create everyone has access to them for use in their own organizational structure. Distribution channels are used to define the way in which products or services reach your customer. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Sales and Distribution Define, copy delete, check distribution channel
Trans Code
*The instructor, as a demonstration will complete this task. All students will use these Distribution Channels throughout the remainder of the course. Double Click on Select Create distribution channels RE WH (Save) Retail Wholesale Define distribution channel

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 117: Assign Distribution Channels to Sales Organization
Purpose of Exercise This exercise has you assign the different ways in which your products reach your customer to your Sales Organization. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Sales and Distribution Assign distribution channel to sales organization
Trans Code Enter the following information: SOrg DChl S_ _ _ RE S_ _ _ WH (Save)
Next Line SOrg DChl
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 118: Define Common Distribution Channels
Purpose of Exercise This exercise is to define distribution channels which have common master data. The allocation is valid within a sales organization. Navigation Menu Path Tools Customizing IMG Execute Project Sales and Distribution Master Data Define Common Distribution Channels
Trans Code Enter the following information: Locate your Sales Organizations First Line (DChl RE) DCh-Conds DCh-Cust/Mt Next Line (DChl: WH) DCh-Conds DCh-Cust/Mt (Save) RE RE WH WH
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 119: Define Division

Purpose of Exercise This exercise will have you review the division you will be using. Since divisions are created at the client level, once they are create everyone has access to them for use in their own organizational structure. Divisions are a way of grouping materials, products, or services. A product can exist in only one division. It is a way in which you could further divide you distribution channels if you desired to do so. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Logistics General Define, copy, delete, check division
Trans Code
*The instructor, as a demonstration will complete this task. All students will use this Division throughout the remainder of the course. Double Click on Select Create Division 01 (Save) General Products Define Division

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 120: Assign Division to Sales Organization
Purpose of Exercise This exercise will have you tie your Divisions, or groupings of materials, to your Sales Organization. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Sales and Distribution Assign division to sales organization
Trans Code Enter the following information: SOrg: Dv: (Save) S_ _ _ 01
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 121: Define Common Divisions

Purpose of Exercise This exercise is to define the divisions that common master data should apply to. The definition is valid within each sales organization. Navigation Menu Path Tools Customizing IMG Execute Project Sales and Distribution Master Data Define Common Division
Trans Code Enter the following information: Locate your Sales Organization DivCon: Div-Cus: (Save) 01 01
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 122: Set up Sales Areas

Purpose of Exercise This exercise will have you create Sales Areas. Sales Areas are made up of a Sales Organization, a Distribution Channel and a Division. Sales Areas are crucial in pricing. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Sales and Distribution Set up sales area
Trans Code Enter the following information: Assign all the Distribution channels and Divisions to your Sales Organization as follows: SOrg DChl Dv S_ _ _ RE 01 S_ _ _ WH 01 (Enter) (Save)
Next Line SOrg DChl Dv
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 123: Define Loading Groups

Purpose of Exercise The purpose of this exercise is to have you review the loading groups that have been established. Loading Groups are created at the client level and once created are available for all to use. Loading groups are a way of grouping of materials that share the same loading requirements. They are also used in determining the shipping point in a plant. Navigation Menu Path Tools Customizing IMG Execute Project Logistics Execution Shipping Basic Shipping Functions Shipping Point and Goods Receiving Point Determination Define Loading Groups
Trans Code *The instructor, as a demonstration will complete this task. These loading groups will be available to all users on this client. Select Hand Load by Hand Cart Handcart
First Entry LGrp Description Second Entry LGrp Description (Enter) (Save)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 124: Create Shipping Point

Purpose of Exercise This exercise has you create a shipping point within your plant. A shipping point is a physical location inside your plant, from which you will ship items. Based on different loading and/or shipping requirements, you can create one or more shipping points to meet your business requirements. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Definition Logistics Execution Define, copy, delete, check shipping point
Trans Code Enter the following information: Double click on Define shipping point Select Shipping Point Shipping Point Description S_ _ _ Shipping Point _ _ _ US
Times Factory Calendar Leave all other fields blank. Select (Address)
Street Address Postal Code City Country Region (Copy). (Save)
57069 Vermillion US SD
(Copy) to verify the address information.

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 125: Assign Plant to Sales Organization and Distribution Channel
Purpose of Exercise This exercise will enable the integration between the Material Management (MM) and the Sales and Distribution (SD) modules. You will need to assign your plant to all combinations of a Sales Organization and a Distribution Channel. Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Sales and Distribution Assign sales organization distribution channel plant
Trans Code Enter the following information: SOrg: DChCust/Mt: Plnt: S_ _ _ RE P_ _ _ S_ _ _ WH P_ _ _ (Save)
Next Line SOrg: DChCust/Mt: Plnt:
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 126: Assign Shipping Point to Plant
Purpose of Exercise The purpose of this exercise is to assign your shipping point to your plant. A shipping point can only exist in one plant. However, a plant can have many shipping points. The number of shipping points will be dependent on your business requirements. Remember that a shipping point is a physical location within a plant from which items are shipped.
Navigation Menu Path Tools Customizing IMG Execute Project Enterprise Structure Assignment Logistics Execution Assign shipping point to plant
Trans Code Enter the following information: Select your plant by double-clicking P_ _ _ From the pop-up window, select YOUR shipping point to be assigned to your plant (Copy) (Save)
(Exit)
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Purpose of Unit The purpose of Unit 15 is to create additional master data needed for conducting the customer order management cycle. This will include creating the additional views needed for the material master, creating additional General Ledger accounts, creating customers and assigning a pricing procedure.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 127: Create Sales Views for Trading Goods
Purpose of Exercise This exercise will have you create (extend) the trading good materials created in earlier material management exercises. These new views for the material masters must now be created (extended) to include the sales views in order to make the materials available for sale. Additionally, materials must have sales views created (extended) for both distribution channels where they will be sold; RE and WH. Navigation Menu Path Logistics Sales and Distribution Master Data Products Material Trading Goods Create MMH1 Copy from C_ _ _ P_ _ _ S_ _ _ RE C_ _ _ P_ _ _ S_ _ _ RE
Trans Code
Defaults Organization levels Company Code Plant Sales Org Distr Channel* (Continue) System Menu: Defaults Views Select the views: Sales: Sales Org. Data 1 Sales: Sales Org. Data 2 Sales: General/Plant Data

(Continue) Material (Enter) BPEN_ _ _
Sales: Sales org. 1 Tab General data Division Delivering Plant UTXJ UTX2 UTX3 Tax data Tax Jurisdiction Code County Sales Tax City Sales Tax (Enter)
01 (General Products) P__ _ 0 (Exempt) 0 (Exempt) 0 (Exempt)
Sales: sales org. 2 Tab Grouping terms Mat. Statistics Group (Enter)
1 (A materials)
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Sales: General/Plant Tab Shipping data (time in days) Trans. grp.: Loading Grp.: (Save)* Complete for the other materials that you sell using the same settings as BPEN_ _ _: CPEN_ _ _ PPEN_ _ _ BOX_ _ _
0001
Pallets (for route determination)
HAND Load by Hand (for shipping point determination)
Repeat this process for each material that you will sell in the Distribution channel: WH *Remember to change the defaults from RE and create the WH views for all the materials Hint: To expedite the Sales view creation process use the copy method by entering a material (that has already been extended) in the Copy from field. Then continue as instructed, noticing that the initial materials data defaults into the new materials fields. (Save after each material)
Record the system messages: Material Created/Extended BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _ (Exit)
Created/Extended
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 128: Create Sales Revenue Account
Purpose of Exercise This exercise will have you create the two general ledger accounts you will need to record revenues and discounts from revenues. Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally
Trans Code Enter the following information: G/L Account Company Code (Create) 600_ _ _ C_ _ _
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text G/L acct long text Control Data TAB Account control in company code Account currency Posting without tax allowed
Profit & Loss Accounts P&L statement acct Sales Revenue Sales Revenue
USD Selected
Account management in company code Check Line item display Sort key 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Check Post automatically only (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 129: Create Sales Revenue Deductions Account
Purpose of Exercise To process billing we will need Profit & Loss Statement accounts for Sales Revenue and Sales Discounts Navigation Menu Path Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally
Trans Code Enter the following information: G/L Account Company Code (Create) 610_ _ _ C_ _ _
Type/Description TAB Control in chart of accounts Account Group Select Radio Button Description Short text G/L acct long text Control Data TAB Account control in company code Account currency Posting without tax allowed
Profit & Loss Accounts P&L statement acct Revenue Deductions Revenue Deductions
USD Selected
Account management in company code Check Line item display Sort key 001 Create/bank/interest TAB Control of document creation in company code Field status group: ZALL Check Post automatically only (Save)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 130: Review Sold-to, Ship-to, Payer & Bill-to Account Groups
Purpose of Exercise This exercise is to have you review the different account groups that you will use to create your customers. Account groups control the data required to create customers (business partners) This is a review only exercise (Do not change or save). Navigation Menu Path Tools Customizing IMG Execute Project Financial Accounting Accounts Receivable and Accounts Payable Customer Accounts Master Data Preparations for Creating Customer Master Data Define Account Groups with Screen Layout (Customers)
Trans Code (Change-->Display) 0001 - Sold-to Parties
Select (Details)
Select Select
General Data
Review the required fields by double clicking on the various groups (Back) Select Select Review the required fields of the various groups (Back) Select Select Review the required fields of the various groups (Back) Twice 0002 Goods Recipient (Ship-to) Sales data Company code data
Select (Details)
Select Select
General Data
Review the required fields of the various groups (Back)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 131: Create Customer

Purpose of Exercise The purpose of this exercise is to have you create customers. You have already created business partners (Vendors) in both Financial Accounting (FI) and Material Management (MM). Since you are in the Sales and Distribution (SD) module now, you will create general, company code (FI) and sales and distribution (SD) views for your customers. When you created vendors you could create them centrally this created all three views from a single point. The same functionality is available for customers. In Sales and Distribution (SD) it is called Create Complete indicating that you want to create the General Data, Company Code (FI) and Sales and Distribution views at the same time. In this exercise you will create five customers. Three of these will be in your retail distribution channel and two will exist in your wholesale distribution channel. Navigation Menu Path Logistics Sales and Distribution Master Data Business Partner Customer Create Complete XD01
Trans Code
Enter the following information: Account group Customer Company code Sales Area Sales Organization Distribution Channel Division (Continue) Sold-to party (Leave blank) C_ _ _ S_ _ _ as listed below for each customer 01
You will create the following customers: The Rushmore Group, LLC Vermillion, SD 57069 SAP, America Newtown Square, PA 19073 Promotional Products, Inc. Sacramento, CA 95814 Pleasure Boats Buying Group Miami, FL 33010 Tanagers Leasing Vermillion, SD 57069 Address TAB: Name Name: Search term Search Term: Street Address Postal Code: City: Country: Region: Transportation zone Communication Language:
Dist.Ch: Dist.Ch: Dist.Ch: Dist.Ch: Dist.Ch:
RE RE WH WH RE (Customer and Vendor)
Customers name (see above list) ___ Customers zip code Customers city US Customer's State Enter appropriate Transportation zone (used for route determination) English
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Control data TAB (only when creating for Tanager Leasing): Account control Vendor Enter the vendor number for Tanager Leasing remember that Tanager Leasing is not only a customer but also a vendor Select (Financial Accounting) Account Management TAB: Accounting Information Recon. account Enter your A/R reconciliation account number (110_ _ _) Sort key 001 (posting date) Payment transactions TAB: Payment Data Terms of payment Select
0001 (Payable immediately, Due net)
Sales TAB: Sales order Currency: Pricing/Statistics Cust.pric.proc. Cust. Stats. Grp Shipping TAB: Shipping Delivery priority Order Combination Shipping Conditions Delivering Plant Partial deliveries Max.part.deliveries Billing Document TAB: Delivery and payment terms Incoterms Payment terms Accounting Acct assgmt group Taxes Tax Classification
USD 1 (standard) 1 A material. (helps determine which data are updated in the LIS)
02 (normal item) Selected (default) 01 (standard) P_ _ _ 3 (9 is the default)
FOB, Origin Shipping Dock (note the both are necessary) 0001 01 (Domestic Revenues) 0 (for all 3 tax categories)
(Save) Repeat for each of the new customers and record their customer numbers. Record the system message: Customer Customer Number The Rushmore Group, LLC SAP, America Promotional Products, Inc. Pleasure Boats Buying Group Tanagers Leasing
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 132: Create Ship-to party

Purpose of Exercise In this exercise you will create an alternative ship-to location or goods recipient. SAP, America has an organization to which they wish to have you ship directly. This new ship-to or goods recipient party is SAP, America UAP (University Alliance Program). In order to do this you will create a specific ship-to customer for this separate address. Navigation Menu Path Logistics Sales and Distribution Master Data Business Partners Customer Create Complete
Trans Code Enter the following information: Account group Customer Company code Sales Area Sales Organization Distribution Channel Division (Continue) Goods Receipt (Leave blank) C_ _ _ S_ _ _ RE 01
Address TAB: Name Name Search term Search term Street Address Postal Code City Country Region Transportation zone Communication Language Select
SAP, America UAP ___ 19073 Newtown Square US PA 000000001 English (Financial Accounting)
Account Management TAB: Accounting Information Recon. account Sort key Payment Transactions TAB: Payment data Terms of payment
Enter your A/R reconciliation account number (110_ _ _) 001 (posting date)
0001 (Payable immediately, Due net)
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Select Shipping TAB: Shipping Delivery Priority Order Combination Shipping Conditions Delivering Plant Partial deliveries Max. partial deliveries Billing Document TAB: Taxes Tax Classification (Save)
02 (normal item) Selected (default) 01 (standard) P_ _ _ 3 (9 is the default)
0 (for all 3 tax categories)
Record the system message: Customer SAP, America - UAP
Customer Number
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 133: Assign Ship-to party to Customer
Purpose of Exercise In this exercise you will assign the newly created good recipient to the sold-to party created in an earlier exercise. Please note that the purpose of this exercise is to end up with an additional ship-to party not to replace the old ship-to party with a new one. You will complete this by changing the original SAP, America customer by adding SAP, America UAP customer as an additional ship-to party on the Partner Functions Tab of the sold-to party. Navigation Menu Path Logistics Sales and Distribution Master Data Business Partners Customer Change Complete
Trans Code Enter the following information: Customer: Company Code Customer # for SAP, America C_ _ _ S_ _ _ RE 01
Sales area Sales Organization Distribution channel Division (Continue) Select (if needed)
Partner Functions TAB: Partner Functions Partner function (add new line) Number (Enter)
SH (Ship-to party) Customer # for SAP, America - UAP
Ship to Party and the name will appear. (Save)
(Exit)
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Purpose of Unit The purpose of Unit 16 is to define prices for materials, specific customer prices, and discounts. In this unit you will also establish credit limits for your customers and define those material stocks that will be considered when you are conducting an availability check for a sales order.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 134: Create Material Prices

Purpose of Exercise In this exercise you will create material prices that any customer would pay. In determining price this would be the last price that would be used to determine pricing for an item. Prices are defined by Sales Organization and Distribution Channel. Navigation Menu Path Logistics Sales and Distribution Master Data Conditions Create Prices Material Price Trans Code VK31
Enter the following information to set up retail prices: Select Cnty SOrg. DChl Material ReSt S_ _ _ RE
Sales Organization Distribution Channel
Enter the following material and pricing information: (Co) Condition Material PR00 BPEN_ _ _ PR00 CPEN_ _ _ PR00 PPEN_ _ _ PR00 BOX_ _ _ (Enter)
Amount $ 1.09 $ 2.29 $ 9.95 $ 0.49
The system will automatically enter the material descriptions, units of measure, and validity dates. (Save)
Enter the following information to set up wholesale prices: Double click on Select Cnty SOrg. DChl Material ReSt S___ WH
Sales Organization Distribution Channel
Refer the table on the next page
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Enter the following material and pricing information: (Co) Condition Material PR00 BPEN_ _ _ PR00 CPEN_ _ _ PR00 PPEN_ _ _ PR00 BOX_ _ _ (Enter)
Amount $ 0.89 $ 1.99 $ 7.50 $ 0.49
The system will automatically enter the material descriptions, units of measure, and validity dates. (Save)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 135: Create Customer Specific Material Price
Purpose of Exercise In this exercise you will create a special price that a specific customer receives for a specified validity period. This allows you to create special customer/material pricing. Navigation Menu Path Logistics Sales and Distribution Master Data Conditions Create Prices Individual Prices Trans Code VK31
Enter the following information: Select CnTy SOrg. DChl Customer Material S_ _ _ RE SAP, America ReSt
Sales Organization Distribution Channel Customer
Enter the following material and pricing information: (Co) Condition Material Amount PR00 CPEN_ _ _ $ 2.09 PR00 PPEN_ _ _ $ 8.50 (Enter)
Valid From Todays Date Todays Date
Valid to 3 months from today 3 months from today
The system will automatically enter the material descriptions and units of measure (Save)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 136: Create Customer Discount

Purpose of Exercise The purpose of this exercise is to show how a customer specific discount is created. This also serves to introduce you to the concept of a pricing scale. This condition type is currently set for Item condition (line item), but could be changed to Header condition in configuration. If it is set to a Header condition, the discount would apply to the order as a whole rather than to the individual line items in the order. Navigation Menu Path Logistics Sales and Distribution Master Data Conditions Create Discounts/Surcharges By Customer Trans Code VK31
Enter the following information: Select Sales Organization Distribution Channel WH CnTy SOrg. DChl Customer ReSt S_ _ _
Customer with Release Status (Co) Condition K007 Customer (Enter) Select K007 line button to give the customer a discount of 5% for order values between Click on the scales $1,000.00 and $1,999.99 and a discount of 8% for order values between $2,000.00 and $2,999.99 and a discount of 10% for orders larger than $2,999.99. Scale value 1000.00 Scale value 2000.00 Scale value 3000.00 (Save) Amount 5 Amount 8 Amount 10 Promotional Products, Inc.
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 137: Establish Credit Limit for Customers
Purpose of Exercise The purpose of this exercise is to establish credit limits for your customers. Each customer has an established credit limit. How the system reacts to a customer that has exceeded the credit limit you established is determined in configuration. The current setting is to provide a warning message, but not stop the processing of an order or delivery. Navigation Menu Path Logistics Sales and Distribution Credit Management Master Data Change FD32
Trans Code
Enter the following information: Customer Credit control area Check the following Customer # for The Rushmore Group, LLC C_ _ _ Overview Central Data Status
(Enter)
Page forward to: Customer Credit Management Change: Central Data Maximum permitted credit limits Total amount 5000 Individual limit Currency 5000 USD
Customer Credit Management Change: Status Credit limit data Credit Limit 5000 (Save)
Repeat this for the other four customers (amounts need to be in all three places). Customer The Rushmore Group, LLC SAP, America Promotional Products, Inc. Pleasure Boats Buying Group Tanager Leasing Record the system message: Message Credit limit $ 5,000 $ 25,000 $ 2,500 $ 5,000 $ 1,000 Currency USD USD USD USD USD
(Exit)
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Purpose of Unit The purpose of Unit 16 is to complete some final details necessary to prepare you for the comprehensive system test that begins in the next unit. This unit will have you create some specialized master data as well as complete the final configuration steps of shipping point and revenue account assignment determinations.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 138: Assign Sales Areas to Pricing Procedure
Purpose of Exercise The purpose of this exercise is to link your sales area to a pricing procedure. The RVAJUS pricing procedure is the standard USA pricing procedure with jurisdiction code. The pricing procedure which will be discussed in detail in the next unit is the manner in which prices are assigned to individual line items in your order as well as discounts, surcharges, etc. Navigation Menu Path Tools Customizing IMG Execute Project Sales and Distribution Basic Functions Pricing Pricing Control Define and Assign Pricing Procedures
Trans Code Double click on Define Pricing Procedure Determination Enter the following information: Select DChl RE WH Dv 01 01 DoPr A A CuPP 1 1 PriPr RVAAPC RVAAPC
Verify details of: SOrg S_ _ _ S_ _ _

(Enter) (Save)

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 139: Define Availability Check for Sales Orders
Purpose of Exercise This exercise will have you review the stocks that are to be included when you conduct and availability check at time of inquiry, quotation, order, delivery, etc. This is completed at the client level and as such you will only need to review this. It is important to note the type of stock and their status as to whether or not they are considered during the availability check. Navigation Menu Path Tools Customizing IMG Execute Project Sales and Distribution Basic Functions Availability Check and Transfer of Requirements Availability Check Availability Check with ATP Logic or Against Planning Carry Out Control for Availability Check
Trans Code *The instructor, as a demonstration will complete this task. This availability check rule will be available to all users on this client. The instructor will complete the following information: Select Select Deselect (Display) Check without RLT 02 for A (SD orders)
Replenishment Lead time
(Back Twice)

Student select Select (Display) (Back Twice)
02 for A (SD orders)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 140: Assign Sales and Delivery Documents to Credit Check
Purpose of Exercise The purpose of this exercise is to assign sales and delivery documents to a Credit Check.
Navigation Menu Path Tools Customizing IMG Execute Project Sales and Distribution Basic Functions Credit Management/Risk Management Credit Management Assign Sales Documents and Delivery Documents
Trans Code
Verify the following information Double click on Credit limit check for order types For Order type Credit Check (Back) OR A

(Exit) (Cancel)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 141: Create Shipping Point Determination
Purpose of Exercise In this exercise you will create the table that will determine the shipping point to be used in your plant. While you have only created one shipping point, you still need to create the determination table. In determining the shipping point, the following are considered: The Plant from the (1) Customer Ship-to Master or the (2) Material Master, The Shipping Conditions from the customer master, and The Loading Group from the material master. Navigation Menu Path Tools Customizing IMG Execute Project Logistics Execution Shipping Basic Shipping Functions Shipping Point and Goods Receiving Point Determination Assign Shipping Points
Trans Code Enter the following information: Select Plnt (Plant): P_ _ _ P_ _ _ PrShP (Proposed Shipping point): S_ _ _ S_ _ _
Shipping Point Information: SC (Shipping LGrp condition): (Loading group): 01 (Standard) HAND (Load by Hand) 01 (Standard) (Enter) (Save) CART (Handcart)
(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 142: Create Revenue Account Assignment Key
Purpose of Exercise This exercise creates the automatic posting of revenues when the billing document is created. At time of billing revenues are posted to the General Ledger Account. Which account to be posted is determined by a combination of: The Sales Organization, The Account assignment key, and The Account Assignment Group (Customer Master) Navigation Menu Path Tools Customizing IMG Execute Project Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Assign G/L Accounts
Trans Code Select Table 2: (Choose) Cust. Grp/Account Key
Enter the following information: Select SOrg S_ _ _ S_ _ _ AAG 01 01 ActKy ERL ERS G/L Account 600_ _ _ 610_ _ _
Account assignment information: App CndTy ChAc V V KOFI KOFI (Enter) (Save) C_ _ _ C_ _ _
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Purpose of Exercise The purpose of this exercise is to obtain current inventory information about your products.
Navigation Menu Path Logistics Materials Management Inventory Management Environment Stock Stock Overview MMBE
Trans Code
Enter the following information: Database selections Material Plant (Execute) Select the plant line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Record the unrestricted use quantity (Unrestricted use) stock type Record the sales orders quantity (Sales orders) stock type Record the delivery quantity (Scheduled for delivery) stock type Choose any material P_ _ _
Record the storage location and quantity of inventory for each Stock type: Plant BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ Storage Location Quantity Quantity Stock Type Quantity Unrestricted Use Sales Orders Scheduled for Delivery (Exit) To return to SAP Easy Access Menu
BOX_ _ _ Quantity
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BUSINESS PROCESS INTEGRATION I (BPI I) Comprehensive Test of Business Case Scenario Unit 18:
Purpose of Unit The purpose of Unit 18 is to provide a comprehensive testing of the organizational and master data, you have set up using a series of transactions. These transactions will provide you with an understanding of how the options you selected during configuration impact your transactions.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 144: Create Sales Order

Purpose of Exercise This exercise will have you create a sales order. This if the first exercise that will test the configuration of your system as a trading goods company. The other exercises in this unit replicate the sales exercises completed in Unit 2. Navigation Menu Path Trans Code Logistics Sales and Distribution Sales Order Create VA01
Enter the following information: Order type Organizational Data Sales Organization Distribution channel Division (Enter) Sold-to party PO Number PO date OR S_ _ _ RE 01
Customer # for The Rushmore Group, LLC 144-_ _ _ Todays date 3 days from today
Sales TAB Req. deliv. date Enter the following: Material BPEN_ _ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _ (Enter)
QTY 250 100 50 150
Review Item Specific Data: Select line item 10 (Conditions) Review item pricing What is the price per unit for BPEN_ _ _? _____________________ (Back) Select line item 20 (Schedule lines for item) What is the date for the confirmed quantity? _______________________ (Back)
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Select line item 30 (Display availability) What is a simulated Requirement? _____________________________________ (Back)
Header Data: System Menu: Goto Header Sales Sales TAB Note and record the pricing procedure ______________________ Conditions TAB Note and record the net value for the order this is the total of all line items $____________________ (Back) (Save)
(Exit)
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Purpose of Exercise The purpose of this exercise is to update the current inventory information about your products.
Navigation Menu Path
Open a new session (or System Menu: System Create session)
Logistics Materials Management Inventory Management Environment Stock Stock Overview
Trans Code Enter the following information: Database selections Material Plant (Execute) Select the plant line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Record the unrestricted use quantity (Unrestricted use) stock type Record the sales orders quantity (Sales orders) stock type Record the delivery quantity (Scheduled for delivery) stock type Any material from your sales order P_ _ _
BOX_ _ _ Quantity
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 146: Create Delivery Note for Sales Order
Purpose of Exercise The purpose of this exercise is to create a delivery based on the customers order. Creating the delivery brings your order to the point where stock availability is re-determined, and the quantity of ordered items are moved to a scheduled for delivery stock status. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With Reference to Sales Order
Trans Code Enter the following information: Shipping point: S_ _ _ Enter a date 7 days from today Enter the order number of the sales order created earlier Sales order data Selection date: Order: (Enter)
The system defaults the items and quantities from the sales order that are scheduled to be delivered. Item Overview Tab Click on the line item 10 (Item Details) What is the picking status? _______________________________ (Back)
Picking Tab: Enter the Storage location for each item Sloc: (Save) Record the Outbound Delivery number: _________________ 10 (Inventory)
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Open a new session (or System Menu: System Create session) Now go to your other session (Alt + Tab), and leave this session open. Click on the REFRESH icon or if the Stock Overview is no longer displayed enter the menu path and information below.
BOX_ _ _ Quantity
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 148: Picking Materials on Delivery Note
Purpose of Exercise The purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the proposed materials per delivery. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document VL02N
Trans Code
Enter the following information: Outbound Delivery (Enter) Outbound delivery number from the previous exercise.
The material delivery quantity is proposed. Picking Tab Enter Pick quantity to match the proposed delivery quantity Picked Qty = (Save) Recheck the stock status of the materials. Note that no change has occurred in the stock status - the quantities are still in the Schd. for delivery stock type field. Deliv. Qty
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Purpose of Exercise This exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect the inventory shipped. This is the time at which the ownership of the goods changes from you to the customer. These goods have left your plant and are now owned by your customer. Both inventory and costs of goods sold are impacted by this transaction. If you have shipped or sold the goods FOB Destination, the actual change of ownership takes place at the time the goods are received at the customers location. However, the system reflects the materials are no longer available in your stock at the time of post good issue. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document
The system returns a message indicating change to the delivery note. Record the system message: Message
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Now go to your other session (Alt + Tab), and leave this session open. Click on the REFRESH icon or if the Stock Overview is no longer displayed enter the menu path and information below.
BOX_ _ _ Quantity
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 151: Bill Customer

Purpose of Exercise This exercise will create the billing document for the customer. It is at this time when the revenue is recognized and posted to the general ledger. Once the post goods issue has been completed, you can bill your customer for those goods. Navigation Menu Path Trans Code Logistics Sales and Distribution Billing Billing Document Create VF01
The system will default the last delivery document created. (Execute) Record the total amount billed to the customer: $____________________ (Save)
Record the billing document number that is displayed at the bottom of the screen ________________ Record the system message: Message
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Purpose of Exercise This exercise will see your customer paying the invoice you created in the billing exercise. The payment will be posted to the general ledger accounts. This entry will increase the bank account and reduce the customers account receivable balance as well as the account receivable reconciliation account. Navigation Menu Path Accounting Financial Accounting Accounts Receivable Document Entry Incoming Payment
Trans Code
Enter the following information: Document Date: Company Code: Currency/Rate: Todays date C_ _ _ USD 100_ _ _ Enter the amount of the payment (from sales order) Customer # for The Rushmore Group, LLC
Bank data: Account: Amount: Open item selection Account: Select
Double click on USD gross amount for the Customer Invoice until Not assigned is $ 0.00 (Post) Record the document number for this posting ________________

(Exit)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 153: Review Document Flow

Purpose of Exercise This exercise provides you with exposure to a powerful tool in customer order management. The document flow provides a look at the entire transaction from beginning to the end. In this example, you have created an order, a delivery, posted goods issue, billed the customer and received payment. To examine the flow, you can begin with any one of these document numbers and the document flow will show an audit trail of all documents tied to that number. Navigation Menu Path Trans Code Enter your sales order number. Logistics Sales and Distribution Sales Order Display
System Menu: Environment Display Document flow The system displays a list of documents associated with the order. Click on the line of the GD goods issue: delvy 49000.###
Select The system displays the material document with a goods movement 601, which is the movement type for goods issue to a delivery note (Post Goods Issue). Select to view the account postings for this goods movement.
(Back) To the Document Flow Screen It can be seen that the: 1. The entire document flow is shown. 2. There are no open documents. 3. The business cycle is complete.
Note: You can view the document flow from the Sales Order, Delivery or Billing screens. Click on the line of the Standard Order # Select the The document flow can be seen in greater detail. Click on the line of the Outbound Delivery # Select the The Document Header Status can be viewed
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Purpose of Unit The purpose of Unit 19 is to create a sales order using your customer info record for Pleasure Boats Buying Group and then complete the order to cash business process.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 154: Create Customer Material Info Record
Purpose of Exercise This exercise introduces you to the concept of Customer Material Information Records. When a customer wishes to order materials from us using a different naming convention than you do, you can set up a Customer Material Info Record which allows us to enter materials by the customer's specific naming convention. This is especially true in the wholesale area. Customers order products by their product number not necessarily your product number. SAP provides for the translation of these materials into your material names, which enables the customer and your sales representative to communicate clearly. Navigation Menu Path Logistics Sales and Distribution Master Data Agreements Customer Material Information Create VD51
Trans Code
Enter the following information: Customer Sales Organization Distribution Channel (Enter) Enter the following materials and the corresponding customer material name as indicated: Customer # for Pleasure Boats Buying Group S_ _ _ WH
Material Customer Specific Information: Material No Pleasure Boats Buying Group Material Number BPEN_ _ _ Pen-Low CPEN_ _ _ Pen-Med PPEN_ _ _ Pen-High BOX_ _ _ Pen-Box (Enter) (Save)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 155: Create Sales Order Using Customer Info Record
Purpose of Exercise This exercise will have you create a sales order using Pleasure Boats Buying Group customer/material info record (their part numbers/name). Navigation Menu Path Trans Code Enter the following information: Order type Organizational Data Sales Organization Distribution channel Division (Enter) Sold-to party PO Number PO date (Enter) OR S_ _ _ WH 01 Logistics Sales and Distribution Sales Order Create
Customer # for Pleasure Boats Buying Group 155-_ _ _ Todays date
Ordering party tab A new field appears in the Sales Order line item: Customer Material Numb. Enter the following customer materials and quantities: Customer Material Numb Order Quantity Pen-Low 250 Pen-Med 100 Pen-High 30 Pen-Box 130 (Enter)
Material (Leave blank)
Note: The system references the customer material numbers and copies our equivalent material number and all relevant data. Check the pricing to see that wholesale pricing was applied. Go to the header and record the Sales Orders Net Value $________________________ (Save)
Record the order number: _______________________ Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 156: Create Delivery for Sales Order
Purpose of Exercise The purpose of this exercise is to create a delivery based on the customers order. Creating the delivery brings your order to the point where stock availability is re-determined, and the quantity of ordered items are moved to a scheduled for delivery stock status. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With Reference to Sales Order
Trans Code Enter the following information: Shipping point: S_ _ _ Enter a date 7 days from today Enter the order number of the sales order created earlier Sales order data Selection date: Order: (Enter)
The system defaults the items and quantities from the sales order that are scheduled to be delivered. Item Overview Tab Click on the line item 10 (Item Details) What is the picking status? _______________________________ (Back)
Picking Tab: Enter the Storage location for each item Sloc: (Save) Record the Outbound Delivery number: _________________ 10 (Inventory)
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 157: Pick Materials on Delivery Note
Purpose of Exercise The purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the proposed materials per delivery. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document
Trans Code Enter the following information: Outbound Delivery (Enter) Outbound delivery number from the previous exercise.
The material delivery quantity is proposed. Picking Tab Enter Pick quantity to match the proposed delivery quantity Picked Qty = (Save) Deliv. Qty
To recheck the stock status (see earlier exercises): Create new session. Check the stock status of the materials Check the stock status of the materials. Note that the stock status - the quantities are in the Schd. for delivery stock type field.
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Purpose of Exercise This exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect the inventory shipped. This is the time at which the ownership of the goods changes from you to the customer. These goods have left your plant and are now owned by your customer. Both inventory and costs of goods sold are impacted by this transaction. Navigation Menu Path: Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document Trans Code: Enter the following information: Outbound Delivery Select Outbound delivery number from the previous exercise.
The system returns a message indicating change to the delivery note.
To recheck the stock status (see earlier exercises): Switch back to your other session that is still on the Stock overview. Check the stock status of the materials
Note the quantity from the Schd. for delivery stock type has disappeared and the Unrestricted use stock quantity has been reduced. Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 159: Bill customer

Purpose of Exercise This exercise will create the billing document for the customer. It is at this time when the revenue is recognized and posted to the general ledger. Once the post goods issue has been completed, you can bill your customer for those goods. Navigation Menu Path Trans Code The system will default the last delivery document created. (Execute) Record the total amount billed to the customer: $____________________ (Save) Logistics Sales and Distribution Billing Billing Document Create
Record the billing document number that is displayed at the bottom of the screen ________________ Record the system message: Message
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Purpose of Exercise This exercise will see your customer paying the invoice you created in the billing exercise. The payment will be posted to the general ledger accounts. This entry will increase the bank account and reduce the customers account receivable balance as well as the account receivable reconciliation account. Navigation Menu Path: Accounting Financial Accounting Accounts Receivable Document Entry Incoming Payments Trans Code: Enter the following information: Document Date: Company Code: Currency/Rate: Todays date C_ _ _ USD 100_ _ _ Enter the amount of the payment (from sales order) Customer # for Pleasure Boats Buying Group
Review the Not assigned amount. Is it equal to zero? (Post) Record the document number for this posting ________________
Return to the Sales Order and review the Document flow for the customer orders that you just processed.
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Purpose of Unit The purpose of Unit 20 is to create a sales order using a scheduling agreement for The Rushmore Group and deliver against the scheduling agreement.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 161: Create a Scheduling Agreement

Purpose of Exercise This exercise will have you create a scheduling agreement for The Rushmore Group.
Navigation Menu Path Trans Code Enter the following information: Sched. Agreemt Type Organizational Data Sales Organization Distribution Channel Division (Enter) Scheduling Agreeme Sold-to party Ship-to part PO number PO date LP S_ _ _ RE 01 (leave blank) The Rushmore Group, LLC leave blank 161-_ _ _ Todays date Scheduling Agreement _ _ _ Todays date Six months from todays date CPEN_ _ _ 250 Logistics Sales and Distribution Sales Scheduling Agreement Create
Item overview TAB: Description: Valid-from date: Valid-to date: All items Material: Target quantity: (Enter) Select the item line for Select
CPEN_ _ _
Schedule lines for items button from the button bar on the bottom 6 days from today for 50 pens 14 days from today for 100 pens 2 months from today for 100 pens
Enter three schedule lines First line Second line Third line: (Enter) (Save)
Record the Scheduling Agreement Number: ___________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 162: Process Deliveries for a Scheduling Agreement
Purpose of Exercise This exercise will have you create a delivery with reference to the scheduling agreement.
Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With Reference to Sales Order
Trans Code Enter the following information: Shipping point: S_ _ _ Enter a date 7 days from today Enter the order number of the Scheduling Agreement created earlier Sales order data Selection date: Order: (Enter) Performing the steps for Picking and Posting Goods Issue. Record Outbound Delivery Number: _________________________ Repeat the exercise using a selection date 14 days from todays date Record Outbound Delivery Number: _________________________
Note that by selecting dates after the due date of each schedule line, only the material scheduled as due by that date is selected Record any system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 163: Display Scheduling Agreement

Purpose of Exercise This exercise has you display the scheduling agreement you created earlier to review the current status. Navigation Menu Path Trans Code Enter the following information: Scheduling Agreement (Enter) Select the line item Select (Schedule lines for item) Scheduling Agreement # you created Logistics Sales and Distribution Sales Scheduling Agreement Display
Note the Delivered qty field now has the quantity of the material delivered filled in for those deliveries that have been made. Select (Display document flow)
Review the document flow you will see one schedule agreement followed by first outbound delivery, the picking request and the post goods issue then the second outbound delivery, the picking request and the post goods issue.
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Trans Code Enter the following information: Database selections Material Plant (Execute) Select the plant line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Check the unrestricted use quantity (Unrestricted use) stock type Check the sales orders quantity (Sales orders) stock type Check the customer scheduling agreements quantity (Customer Scheduling Agreements) stock type Check the delivery quantity (Scheduled for delivery) stock type CPEN _ _ _ (check for all materials and record below) P_ _ _
Record the storage location and quantity of inventory for each Stock type: Plant BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ Storage Location Quantity Quantity Stock Type Quantity Unrestricted Use Sales Orders Customer Scheduling Agreements Scheduled for Delivery (Exit) To return to SAP Easy Access Menu
BOX_ _ _ Quantity
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 165: Bill customer

Purpose of Exercise This exercise will create the billing document for the customer. It is at this time when the revenue is recognized and posted to the general ledger. Once the post goods issue has been completed, you can bill your customer for those goods. Navigation Menu Path Trans Code Create a billing document for each of the two outbound delivery documents created in exercise 162. Record the billing document number for the 1st delivery: __________________________ Record the billing document number for the 2nd delivery: __________________________ What is the total for both invoices? ___________________________ Logistics Sales and Distribution Billing Billing Document Create
Record any system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 166: Run Customer Credit Check
Purpose of Exercise The purpose of this exercise is to review the customer credit profile.
Navigation Menu Path Logistics Sales and Distribution Credit Management Credit management info system Overview
Trans Code Enter the following information: Credit account Credit control area (Execute) Place cursor on customer number Review information Customer # for The Rushmore Group, LLC C_ _ _
System Menu: Environment Credit Master Sheet
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Purpose of Exercise This exercise will see your customer paying the invoice you created in the billing exercise. The payment will be posted to the general ledger accounts. This entry will increase the bank account and reduce the customers account receivable balance as well as the account receivable reconciliation account. Navigation Menu Path: Accounting Financial Accounting Accounts Receivable Document Entry Incoming Payments Trans Code: Enter the following information: Document Date: Company Code: Currency/Rate: Todays date C_ _ _ USD 100_ _ _ Enter the amount of the payment (total from both invoices) Customer # for The Rushmore Group, LLC
Review the Not assigned amount. Is it equal to zero? (Post) Record the document number for this posting ________________ Note that we can clear more than one invoice with a single incoming payment.
Return to the Scheduling Agreement and review the Document flow for the agreement.
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Purpose of Unit The purpose of Unit 21 is to create two sales orders. One sales order using the item proposal and the second sales order that will result in a credit warning, as well as request more goods than you have for sale. This will require you to run Material Requirements Planning, convert purchase requisitions to purchase orders, receive the goods, receive the invoices, and post payment to the vendors. The deliveries for these sales orders will be completed in the next unit.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 168: Create Item Proposal

Purpose of Exercise The purpose of this exercise is to allow for situations where a customer often places an order with the same line items, an Item Proposal (order template) can be created with the standard line items and quantities already filled in. You can then pull the standard items in as you create the sales order by referencing the Item Proposal. Once referenced and pulled into the order quantities can be changed, line items can be deleted or added. Navigation Menu Path Logistics Sales and Distribution Master Data Products Item Proposal Create
Trans Code Enter the following information: Item Proposal Type PV S_ _ _ RE 01 Organizational Data Sales Organization Distribution Channel Division (Enter) Item proposal Description Valid-from date Valid-to date leave blank SAP Promotion Set Todays date One year from today
Enter the following materials and quantities: BPEN_ _ _ 100 CPEN_ _ _ 75 PPEN_ _ _ 25 BOX_ _ _ 100 (Enter) (Save) Record the Item Proposal Number: _____________________

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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 169: Assign Item Proposal to Customer
Purpose of Exercise In this exercise you will now assign that item proposal to the customer master. Whenever you ask for an Item Proposal in a sales order for that customer, the system will default this Item Proposal. Navigation Menu Path Logistics Sales and Distribution Master Data Business Partner Customer Change Complete
Trans Code Enter the following information: Customer Company Code SAP America C_ _ _ S_ _ _ RE 01
Sales area Sales Organization Distribution Channel Division (Enter) Select
Sales TAB Item proposal (Save)
# of the newly created item proposal.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 170: Create Sales Order Using Item Proposal
Purpose of Exercise This exercise will have you create a sales order using the item proposal we created and assigned to SAP, America. We will use the materials and quantities in the item proposal. Navigation Menu Path Trans Code Enter the following information: Order type Organizational Data Sales Organization Distribution channel Division (Enter) Sold-to party Ship-to party PO Number PO date (Enter) OR S_ _ _ RE 01 Logistics Sales and Distribution Sales Order Create
Customer # for SAP, America Leave Blank 170-_ _ _ Todays date
A pop-up window appears with the two ship-to addresses for this customer. Select (Enter) Select: to search for your item proposal SAP, America UAP
In the pop-up window, the system copies the number of the product proposal for this customer Select
You may also need to select the delivery you wish: One-time del. On req. del. dte. Complete delivery Dely proposal Select (Copy) for a Complete delivery Note: This may happen for multiple items.
Review the pricing options: Select the line item CPEN_ _ _ Click and note the pricing ___________________________ (Back) Select the line item PPEN_ _ _
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Click and note the pricing ____________________________ (Back) Select the line item BPEN_ _ _ Click and note the pricing ___________________________ (Back)
Does the material pricing include the special customer pricing that was established for SAP, United Kingdom? ________________________________________________________________________ Record the Sales Order Net Value: _________________________ (Save) Record the Sales Order Number: _____________________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 171: Create Sales Order Value Discount
Purpose of Exercise This exercise will have you create a sales order that will demonstrate the discounts prices we established for Promotional Products, Inc. Navigation Menu Path Trans Code Logistics Sales and Distribution Sales Order Create
Enter the following information: Order type Organizational Data Sales Organization Distribution channel Division (Enter) Sold-to party PO Number PO date (Enter) 3 days from today OR S_ _ _ WH 01
Customer # for Promotional Products, Inc 171-_ _ _ Todays date
Sales TAB Req. deliv. date Enter the following: Material BPEN_ _ CPEN _ _ _ PPEN _ _ _ BOX _ _ _ (Enter)
QTY 1000 550 275 825
You will need to select the delivery you wish: One-time del. On req. del. dte. Complete delivery Dely proposal Select (Copy) for a Complete delivery
You will receive one or more warnings that credit limit is exceeded Note: This is only an information message or warning; as such you will be able to continue processing the order. Select the line item CPEN_ _ _ Click and note the pricing and discount
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(Back) Select the line item PPEN_ _ _ Click and note the pricing and discount
Review The material pricing includes the 5% discount from the customer-specific material pricing record for >$1,000 and <$2,000 and the 8% discount for items with an extended value of >$2,000 and <$3,000 and the 10% discount for items with an extended value of >$3,000. Change the quantity of the line item for PPEN_ _ _ from 275 to 420 and verify that the discount changed. Select the line item PPEN_ _ _ Click and note the pricing and discount (Back) Record the Sales Order Net Value: ______________________________ (Save) Record the Sales Order Number: ______________________________
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Purpose of Exercise The purpose of this exercise is to have the system plan all MRP relevant materials. Navigation Menu Path Logistics Materials Management Material Requirements Planning (MRP) MRP Planning Total Planning Online
Trans Code Enter the following information: Scope of planning Plant MRP control parameters Processing key Create purchase req Schedule lines Create MRP list Planning mode Scheduling Display results before they are saved Select Leave Blank P_ _ _ NETCH 2 3 1 1 1 Display material list
(Enter) A warning message appears - please check input parameters (Enter) again to confirm and check the warning message An information message appears indicating you will need to press enter to start the planning run. (Continue) To review the MRP list select Material
PPEN_ _ _
Press (Enter) Review the MRP list for PPEN_ _ _ Note that there may be multiple requisitions for each material due to different requirement dates. Review MRP list for BPEN_ _ _ ; CPEN_ _ _ ; PPEN_ _ _; and BOX_ _ _ BPEN_ _ _ Total for all Requisitions Record the system message: Message CPEN_ _ _ PPEN_ _ _ BOX_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 173: Create Purchasing Information Record for PPEN
Purpose of Exercise The purpose of this exercise is to create purchasing information records for PPEN_ _ _. A purchasing information record creates a link between a material and a vendor. Navigation Menu Path Logistics Materials Management Purchasing Master Data Info Record Create
Trans Code Enter the following information: Enter the following information on the Create Info Record: Purch. Organization Data 1 screen Standard Qty.: Net Price: (Enter) (Save) 1 3.25 Vendor Material Purchasing Org. Plant (Enter) Vendor # for Slick Pens PPEN_ _ _ P_ _ _ P_ _ _
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 174: Assign Source of Supply to Purchase Requisitions
Purpose of Exercise The purpose of this exercise is to assign a source of supply for your purchase requisitions. Navigation Menu Path Logistics Materials Management Materials Requirements Planning (MRP) MRP Evaluations Stock/Requirements List MD04
Trans Code
Enter the following information: Individual access Tab Material: Plant:
PPEN_ _ _ P_ _ _
(Enter) Select a requisition (if more than one select the one with the largest quantity) (Detail of element)
(Change element) Item Overview section Enter the Storage Location Item section Source of Supply Tab
10
This provides a list of possible sources of supply. Select Slick Pens _ _ _ by clicking in the Assign Source of Supply box next to the vendor number. There should be a green dot next to the vendor number after you have assigned the source of supply (see below).

(Save)
Assign Slick Pens as the Source of Supply for to largest requisitions for BPEN_ _ _ ; CPEN_ _ _ ; and BOX_ _ _ in the same manner as you have just completed for PPEN_ _ _. Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 175: Create Purchase Order via Requisition Assignment List
Purpose of Exercise The purpose of this exercise is to create a purchase order using a requisition assignment list. Since you have assigned a source of supply to your requisition in the previous exercise, you can now convert these purchase requisitions into a single purchase order as they are all assigned to the same vendor. Navigation Menu Path Logistics Materials Management Purchasing Purchase Order Create Via Requisition Assignment List ME58
Trans Code
Enter the following information: Vendor Plant
Vendor # for Slick Pens P_ _ _
(Execute) Select the line showing the number of purchase orders (there should be 4) Click on the button
Verify the following: Order Type Purchase Order Date Purchase Order Purchasing Group Purchasing Organization (Continue)
NB Todays Date Leave Blank ___ P_ _ _
Single-Click on Open Requisitions line in the left window (see below)

Then Select (Adopt) Enter through warning if delivery date cant be met and the existence of a contract. Verify the details of the purchase order Increase the PO Amount for each item by 150 over the total of all requisitions recorded when you ran MRP online. Record the amounts for the individual lines items as well as the total order in the table below
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Item PPEN _ _ _ CPEN _ _ _ BPEN _ _ _ BOX _ _ _ Total for PO
Number Ordered
Dollar Amount

(Save) Record the new purchase order number._____________________ (Exit )
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 176: Create Goods Receipt

Purpose of Exercise This exercise has you receive the pens that have arrived at your receiving dock and are ready to be received into inventory. Navigation Menu Path Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order GR for Purchase Order (MIGO)
Trans Code Enter the following information: Purchase Order (Execute) Ensure each line item OK is checked Verify storage location was entered 10 (Inventory) 4500000???
Notice that the quantity from the PO defaults as the quantity to receive. Select or (Save)
Record the Material Document Number: _______________________ View the material document by changing the transaction from Goods Receipt to Display. This will bring up your material document. (Execute) You should see your material document record the movement type: _____________

Doc. info Tab Select to view the financial document
Record the Financial Accounting Document Number: _______________________ Record the name of the two G/L accounts posted to in this transaction: _________________________________ _________________________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 177: Create Invoice Receipt from Vendor
Purpose of Exercise This exercise has you enter the Vendors invoiced for the items ordered.
Trans Code Enter the following information: Basic data Tab Invoice date Company Code Currency (behind amount) Purchase Order (Enter) Amount Tax code (Enter) Use the (Post) Record the Document Number: _________________________ button to see if the postings are correct. Enter amount from Exercise 175 XI (This should come in automatically if not, enter it) Today's date C_ _ _ USD (Your Purchase Order #)
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Purpose of Exercise The purpose of this exercise is to post payment to the vendor. The invoice is now due for payment. You are requested to clear the invoice by posting an outgoing payment using the bank account (no. 1000_ _) of your chart of accounts. Navigation Menu Path Accounting Financial Accounting Accounts Payable Document Entry Outgoing Payment Post
Trans Code Enter the following information: Document Date Todays date 100_ _ _ (Bank - Checking) Enter the amount of the outgoing payment Invoice Number or other text Vendor # for Slick Pens Bank data Account Amount Text
Open items selection Account Select
Review the Not assigned balance, ensure that it equals zero. (Post) Record the Accounting Document Number: __________________________
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Purpose of Unit The purpose of Unit 22 is to look at the functionality of delivery and billing due lists. Delivery and billing due list provide you the opportunity to create your deliveries and billings collectively, rather than one at a time.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 179: Run Delivery Due List
Purpose of Exercise The purpose of this exercise is to have you run a delivery due list. In normal daily operation, creating delivery notes for each individual sales order is the exception rather than the rule. In most companies, the shipping department would run the delivery due list, which, creates delivery notes for any material with deliverable items. Items which are due for delivery are defined by the following parameters: Material is available and scheduled The date of due delivery has arrived Material is delivered for the chosen shipping point (determined from shipping point determination) Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Collective Processing of Documents Due for Delivery Sales Orders
Trans Code Enter the following information: Shipping Point/Receiving Pt Deliv. Creation Date S_ _ _ Enter dates from one week ago to 14 days from today S_ _ _
General data TAB: Sales Organization (Execute) Select the desired line(s) Select
In some cases, the system has combined deliveries from different orders on the
same delivery note number. This is set in the customer master, by selecting Order combination. (Save) ______________________
Record the delivery note document numbers: _____________________ Record the system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 180: Pick Materials on Delivery Note
Purpose of Exercise In this exercise you will update the delivery documents created by entering the picked quantities into the delivery note. When saved, the delivery has changed to a picked status. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document
Trans Code Enter the following information: Enter a delivery note number from the previous exercise. (Enter)
Picking TAB: Select the storage location for the individual materials. Enter the Picked quantity (it should be the same as the Delivery quantity for each material). (Enter) (Save)
Repeat for all outbound deliveries created in the previous exercise. Record the system message: Message
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Purpose of Exercise This exercise will have you create the post goods issue which reduces unrestricted stock to reflect the inventory has shipped. This needs to be completed for all delivery notes. Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document
The system returns a message indicating change to the delivery note. Repeat for all outbound deliveries you processed in the previous exercise. Record any system message: Message
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 182: Run Billing Due List, Invoice Customers
Purpose of Exercise This exercise introduces you to the concept of collective billing. The Billing due list is a collective display of all bills due in a specified period of time. This allows you to then individually or collectively create all the invoices. Navigation Menu Path Logistics Sales and Distribution Billing Billing Document Process Billing Due List
Trans Code Enter the following information: Billing Data Billing Date from Billing to date Billing Type SD Document Selection Tab Organizat. Data Sales organization Documents to be selected Select Select
a week ago todays date is defaulted as the to date leave blank leave blank
S_ _ _ Order-related Delivery-related
Click The system lists all the documents (Delivery numbers) due for invoicing Now we complete the invoices as follows: Highlight an individual SD document number Click on (Save) Record Billing Document Number: ________________________ (Back) The next delivery note should be on the Create Billing Document Screen (Execute) (Save) Record Billing Document Number: ________________________
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Purpose of Exercise This exercise will have you go through and post receipt of payment from all of our customers for all the orders you have created to date. You post the incoming payment to the customer's account. Navigation Menu Path Accounting Financial Accounting Accounts Receivable Document Entry Incoming Payments
Trans Code Enter the following information: Document Date Company Code Currency/Rate Todays date C___ USD Your Bank Account Enter the amount of the payment Customer Number
Bank data Account Amount Open item selection Account Select
Note:
The not assigned amount should be 0.00 (Save)
This process will need to be repeated for both customers for which you created invoices.
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Purpose of Unit The purpose of Unit 23 is to introduce you to the return process. In this unit you will create a goods return order, receive the goods, and complete the process by transferring them back into unrestricted stock, issuing a credit and pay the customer for the goods they returned.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 184: Create Goods Return Order
Purpose of Exercise In this exercise you will create a return for fifty (50) Barrel Pens due to a quantity discrepancy. The process of creating a goods return order is no different from that of creating a standard sales order. Navigation Menu Path Trans Code Enter the following information: Order (Enter) Acknowledge Information pop-up window: Consider the subsequent documents Order # from Promotion Products, Inc Logistics Sales and Distribution Sales Order Change
System Menu: Sales Document Create subsequent order Order type RE Organizational Data Sales Organization Distribution Channel Division Select Select (Deselect All) Select Material Change Open Quantity Select BPEN_ _ _ 50 This will return you to the Create Returns Overview Screen Quantity Discrepancy BPEN_ _ _ 50 S_ _ _ WH 01
Sales Tab Order reason Verify Material Quantity
Record the Return Order Net Value $________________________ (Save) Record Return Order Number __________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 185: Create Delivery Note for Return Order
Purpose of Exercise This exercise will have you create the goods receipt for the returned pens. The menu path for a goods receipt of a return order is no different from that of a delivery creation for sales order. A goods receipt is issued for blocked (inspection) stock. Promotional Products, Inc. Return Merchandise Authorization RMA1234 Reason for rejection: ITEMS: BPEN_ _ _ Quantity Discrepancy QUANTITY: 50
Navigation Menu Path Logistics Sales and Distribution Sales Order Subsequent Functions Outbound Delivery
Trans Code Enter the following information: Shipping point S_ _ _ Today + 2 days Returns order number from previous exercise Sales order data Selection date Order (Enter) Check the material, customer etc. If correct (Save)
Record the Returns Delivery number: __________________________
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 186: Receive Materials from Goods Return Order
Purpose of Exercise The purpose of this exercise is to pick the goods and post goods issue.
Navigation Menu Path Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document
Trans Code Enter the following information: Outbound Delivery (Enter) 10 (Inventory) Enter the delivery note number from your Return Order
Picking Tab Enter the storage location: Select
System should respond with message indicating that the Returns Delivery has been saved.
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 187: Check Document Flow

Purpose of Exercise This exercise will have you review the document flow up to this point in the return process.
Navigation Menu Path Trans Code Enter the following: Document Display the GD document Return Order Number System Menu: Environment Display document flow A material document is displayed showing a single goods movement. We see that movement type 651 is displayed. Since we havent accepted ownership yet, there are no accounting documents. Movement type 651 moves material into a Returns stock type. Record the system message: Message Logistics Sales and Distribution Sales Order Change
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 188: Review the Stock Overview
Purpose of Exercise This exercise will have you look at the stock overview and record the types of BPEN_ _ _ stock.
Trans Code Enter the following information: Database selections Material Plant Storage location (Execute) Select the plant line in the display. Select This will open a pop-up window showing the details of the inventory by stock type at the level you selected. Check the unrestricted use quantity (Unrestricted use) stock type Check the returns quantity (Returns) stock type Check the sales orders quantity (Sales orders) stock type Check the delivery quantity (Scheduled for delivery) stock type BPEN_ _ _ P_ _ _ Leave Blank
Record the storage location and quantity of inventory for each Stock type: Plant BPEN_ _ _ Storage Location Quantity Stock Type Unrestricted Use Returns Sales Orders Scheduled for Delivery (Exit) To return to SAP Easy Access Menu
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 189: Transfer Return Stock to Unrestricted Use
Purpose of Exercise The purpose of this exercise is to transfer the returned goods to unrestricted stock. The movement results in a debit to the trading goods account and a credit to the COGS account. Navigation Menu Path Logistics Materials Management Inventory Management Goods Movement Transfer Posting
Trans Code System Menu: Movement Type Transfer Posting Stock to Stock Own from Returns Enter the following: Defaults for Document Items Movement type Plant Storage Location (Enter) BPEN_ _ _ 50 EA 453 is defaulted P_ _ _ 10
Items Material Quantity UnE (Unit of Entry) (Enter) (Save)
Record the material document number _____________________ Display the material and accounting documents. Re-check the stock status of the material to confirm the return stock has been transferred to unrestricted stock
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 190: Post Customer Credit

Purpose of Exercise This exercise will have you prepare to issue a credit, the Billing block must be removed from the Returns sales order to proceed with issuing the credit. Navigation Menu Path Trans Code Enter the following information: Order: (Enter) Acknowledge Information pop-up window: Consider the subsequent documents. Delete the entry in the field Billing block (Save) Return sales order number Logistics Sales and Distribution Sales Order Change
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 191: Create a Billing Document

Purpose of Exercise The purpose of this exercise is to create the account payable to the customer for the returned goods.
Navigation Menu Path Trans Code Enter the following information: Document (Enter) Record the total amount billed to the customer. $____________________ (Save) Record the billing document number: __________________________ Return order number Logistics Sales and Distribution Billing Billing Document Create
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 192: Release Billing Document to Accounting
Purpose of Exercise The purpose of this exercise is to release the billing document to accounting. Before the billing document can be processed, Sales must release it to Accounting. All credits are automatically blocked for processing so that they may be reviewed prior to being released to Accounting for payment. Navigation Menu Path Trans Code Enter the following information: Billing document Billing Document number System Menu: Billing Document Release To Accounting Logistics Sales and Distribution Billing Billing Document Change
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Purpose of Exercise This exercise will have you review the document flow up to this point in the return process.
Navigation Menu Path Trans Code Enter the following: Document Return Order Number System Menu: Environment Display document flow Review the accounting document created by billing Logistics Sales and Distribution Sales Order Change
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BUSINESS PROCESS INTEGRATION I (BPI I) Exercise 194: Post Payment to the Customer Refund
Purpose of Exercise This exercise will have you post a payment to your customer. Now that they have received the invoice with the credit you will need to send them a payment. The payment will be reflected in their account. Navigation Menu Path Accounting Financial Accounting Accounts Receivable Document Entry Other Outgoing Payments
Trans Code Enter the following information: Document Date Company Code Currency/Rate Todays date C_ _ _ USD G/L account for your Bank (Checking Account) Enter the amount of the payment (from sales order) Customer # for Promotional Products, Inc.
Bank data Account Amount Open item selection Account Select
Note:
The not assigned amount should be 0.00 (Save)
Record the document number for this posting ________________
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Purpose of Exercise This exercise will have you review the document flow now that the process is complete.
Navigation Menu Path Trans Code Enter the following: Document Return Order Number System Menu: Environment Display document flow Review the accounting document has it been cleared. Logistics Sales and Distribution Sales Order Change
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Business Process Integration - I Student Books

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Business Process Integration I

Presented by The Rushmore Group, LLC

Course schedule Classroom materials Housekeeping issues

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Integrated Business Solutions Software Vendors

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Tables: Defines and links thousands of tables of information (25,000+) Advantages

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Three-Tier SAP Structure

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SAP Enterprise System

PCs, Laptops, etc.

Presentation Application Database

Internet Transaction Server

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mySAP Business Suite

mySAP ERP Modules

Materials Mgmt. Production SM Planning Service Mgmt.

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SAP R/3 Basics

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Programming Code Modifications

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SAP R/3 Document Principle

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

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Two Differing Learning Approaches

Standard SAP training

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Learning by Creating a Model Business

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SAP R/3 and Business Processes

Pen Incorporated Procure for Sales Order

Availability Check In Inventory

Goods to Delivery Plant or Warehouse Inventory Postings General Ledger Accounts

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Pen Incorporated Produce for Sales Order

Availability Check In Inventory

Issue Goods to Production Order Production Order