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HAL DMD Provisioning of Warehouse Functionality - Business

Blueprint Document

Hitachi America, Ltd.


1000 Marina Boulevard
Brisbane, CA 94005-
1845

Project Name HAL DMD Provisioning of Warehouse Functionality


SAP Area/ SD, MM and WM Phase Blue Print Design
Doc Ref #
Confidentiality Statement:
The information contained in this document is privileged and confidential and protected from disclosure
outside Hitachi America Ltd. The recipient is hereby notified that any dissemination, distribution or copying
of this communication is strictly prohibited with out the prior written approval from IT Management of
Hitachi America Ltd.
_______________________________________________________________________
Hitachi America, Ltd. 2009. All rights reserved.
Classification Confidential Hitachi America, Ltd.
Revision Date Feb 14th, 2011 Blueprint Document

Revision

Prepared by Aravind Chebolu and Date 02/14/2011


Prasad Kambampati
Input by Laurel Vaughn, Deborah Keyler, Susana Aleman, James Dixon &
Brenda Gonzalez.
Brief To optimize and to increase the efficiency of day to day
Description warehouse operations, its decided to implement SAP WH
functionality under the existing SAP organizational structure, in
extension to the inventory management.

A new Warehouse (202) is created under existing Storage


location CRWH under Plant 2202 & Company Code 2200. All the
existing business processes will be extended to the Warehouse
functionality.
Status Version 1
Business Laurel Vaughn
Process
Owners
Approved By Laurel Vaughn Date

Daryl Chambers
Michael Mo Date

Revision History

Versio Author Summary of Change Date


n#

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Table of Contents
1 Background.....................................................................................................................5
2 AS IS Processes...............................................................................................................5
2.1 Order to Cash Cycle:................................................................................................5
2.2 Procurement to Pay Cycle:.......................................................................................6
2.3 Physical Inventory Process:-....................................................................................6
2.4 Vendor Returns........................................................................................................6
2.5 Customer Returns (HITT - Hitechtronic Location)....................................................7
2.6 Customer Consignment...........................................................................................7
2.7 NO CHARGE SAMPLE Order Process (ZDON)...........................................................7
2.8 Credit Memo Request..............................................................................................8
2.9 Debit Memo Request...............................................................................................8
2.10 Transfer Postings with in a Storage Location...........................................................8
3 Business Requirement....................................................................................................9
3.1 Inventory / Warehousing..........................................................................................9
3.2 Additional processes................................................................................................9
3.3 Reporting:..............................................................................................................10
4 Assumptions / Decisions...............................................................................................10
5 TO BE PROCESS............................................................................................................11
SAP Organization Structure.......................................................................................11
5.1....................................................................................................................................11
5.2 Warehouse Management structure........................................................................12
5.3 Order to Cash Cycle: -............................................................................................15
5.4 Cancel Transfer Order and Delete Delivery: -........................................................17
5.5 Customer Returns: - (PDI- Projector Doctor Storage Location under 2203 Plant)..17
5.6 Procure To Pay Cycle ( Goods Receiving Process)..................................................17
5.7 Vendor Return includes hisoft Items......................................................................20
5.8 Cancel / Reverse Goods receipt including Hisoft Items.........................................21
5.9 Material scrapping process (202 WH)....................................................................21

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Classification Confidential Hitachi America, Ltd.
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5.10 Material scrapping process (PDRI under 2203 Plant)............................................21


5.11 Transfer Material to Material process (WH 202)...................................................22
5.12 Transfer Material to Material Process (2203 / PDRI)..............................................22
5.13 Plant to Plant Transfer (2203 Plant / PDRI To 2202 Plant /202 WH).......................22
5.14 Plant to Plant Transfer (2203 Plant / HITT To 2202 Plant /202 WH).......................22
5.15 Material transfer within between storage areas (WH: 202)...................................22
5.16 Internal material transfers within the warehouse..................................................23
5.17 Physical Inventory process....................................................................................25
5.18 Cycle Counting Process.........................................................................................27
5.19 Credit Memo Request............................................................................................27
5.20 Debit Memo Request.............................................................................................27
6 Data Migration (SAP IT / Expeditors)............................................................................27
7 Interface / Background Job Summary...........................................................................28
8 Reports.........................................................................................................................29
9 Roles & Authorizations..................................................................................................30
10 High Level Project Schedule:-....................................................................................32

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1 Background

HAL-DMD is having warehouse at Carson (HTSA) in Los Angeles. Business has


decided to move their warehouse operations physically from HTSA to Expeditors, who
are located in Los Angeles. To optimize and to increase the efficiency of day to day
warehouse operations, HAL-DMD has decided to implement SAP WH functionality
under the existing SAP organizational structure, in extension to the inventory
management.
This initiative will provide integrated view of entire business operations
pertains to inventory management. Additionally it will also provide opportunity to
follow similar consistent business processes in SAP across all operations.

2 AS IS Processes

2.1 Order to Cash Cycle:


The following are the existing process, which is being followed in the SAP system.
Creation of a Sales Order (Manual / EDI / Flat file) from VA01 Transaction.

Creation of Delivery and Print the BOL from VL01N Transaction.

If its a HI soft Item, move the Material from Vendor consignment to Own
Unrestricted use from ZHTSA Transaction.

Manually Pick the items based on the BOL

Scan Serial Nos using RF Scanner using ZRF1 Transaction

Update Delivery document with Preferred Carrier #, BillOfLad / Tracking No,


Ship.type and Seal # from VL02N / ZHTSA Transaction.

Print the Packing List & Commercial Invoice for the Canadian shipments
(CA). For any other International shipments, the Packing List & Commercial
Invoice will be done outside the SAP system.

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Printing of Bar Code UCC Labels from ZSLB Transaction.

Fed Ex label Printing (Outside SAP System)

Print the Lamp (Two Models) / UPC Labels if required (Outside SAP system)

Post Goods issue for the delivery from VL02N / ZHTSA Transaction

Billing document Creation from VF06 through Back Ground Programme.


(Z_III_HHED_BILLING_DAILY)

Note: - Delivery Changes & Cancellations will be handled through VL02N Transaction.
Have the option to reverse the post goods Movement using VL09 Transaction.

2.2 Procurement to Pay Cycle:


The following are the existing process, which is being followed in the SAP system.

Creation of a Standard Purchase Order (NB) using ME21N Transaction.


However in the case of Hisoft Material use the frame work Order Type FO.

Creation of goods receipt against Purchase order (NB) using 101 / 101K
Movement type from MIGO Transaction.

Print the UPC Labels for of Lamps.

Invoice verification from MIRO Transaction

Release Blocked Invoices for Payment from MRBR Transaction.

2.3 Physical Inventory Process:-


Create Physical Inventory Document using MI01 Transaction

Print PI Document from MI21 Transaction

Enter actual count of inventory from MI04 Transaction

If required Change inventory Account from MI05 Transaction

Post inventory differences if any from MI07 Transaction

List of differencesReport from MI20 Transaction

List of physical inventory documents from MI24 Transaction

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2.4 Vendor Returns


Creation of Vendor Returns Purchase Order using ME21N Transaction

Post Material Document against Vendor returns PO from MIGO Transaction.

Do the Invoice verification from MIRO Transaction.(Not applicable in case of


Hisoft Products)

2.5 Customer Returns (HITT - Hitechtronic Location)


Creation of Returns Order using ZRE Document Type from VA01
Transaction.

Creation of Returns Delivery from VL01N Transaction.

Do the Goods Receipt (Plant: 2203 and Sloc: HITT against Returns Delivery
from VL02N Transaction. (The system automatically chooses delivery type
LR)

Creation of Credit Memo for Returns from VF06 Transaction using Back
ground Job (Z_III_HHED_BILLING_DAILY)

2.6 Customer Consignment


Creation of Evaluation Fill-up Order (ZKB) --Demos Order from VA01
Transaction

Enter the required data on the customer, the consignment goods and the
delivering plant.
Enter all other relevant data and save the order.
Create a delivery as the subsequent document for this sales order from
VL01N Transaction and, after picking has been completed successfully,
post goods issue.
The underlying goods movement type is a stock transfer. This ensures that
when goods issue is posted, consignment special stock is created for the
customer concerned. If special stock of this kind already exists in the
delivering plant for this customer, the goods are posted to this special
stock.
Creation of Evaluation Pickup Order (KA) -- from VA01 Transaction

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Enter the required data for the customer, the consignment goods and the
plant to which the goods are to be returned.
Enter all other relevant data and save the order.
Create a returns delivery for the sales order (the system automatically
chooses delivery type LR). The transaction is completed by the goods issue
posting which initiates a transfer posting from the customer's special stock
to your plant stock.
2.7 NO CHARGE SAMPLE Order Process (ZDON)
Create No Charge Sample Order type ZDON from VA01 Transaction. (Order
Reason: SD-No charge sample)

Create Delivery from VL01N Transaction

Do the Post Goods Issue from VL02N Transaction

2.8 Credit Memo Request

A credit memo request is a sales document used in complaints processing to request


credit for a customer. If the price calculated for the customer was too high (for
example, with the wrong scaled prices or because a discount was forgotten), you can
create a credit memo request. The credit memo request can be automatically blocked
for checking. Once it has been approved, you can remove the block. The system uses
the credit memo request to create a credit memo.

Create a Credit Memo Request (Doc Type: CR) from VA01 Transaction
Remove the Billing block in the CMR and system will generate a Billing
document from VF06 transaction using back ground Job
(Z_III_HHED_BILLING_DAILY)

2.9 Debit Memo Request

A debit memo request is a sales document used in complaints processing to request


debit for a customer. You can create a debit memo request if the prices calculated for
the customer were too low (for example, if the wrong scale prices were calculated).
The debit memo request can be automatically blocked for checking. Once it has been

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approved, you can remove the block. The system uses the debit memo request to
create a debit memo.

Create a Debit Memo Request (Doc Type: DR) from VA01 Transaction
System will generate a Billing document from VF06 transaction using back
ground Job (Z_III_HHED_BILLING_DAILY)

2.10 Transfer Postings with in a Storage Location

The following processes will be performed from MB1B, MB1A and MB1C Transactions.

Consumption (Cost Center) Postings, Material to Material Transfer Postings,


Material Stock changes within the Storage Location Movements.

3 Business Requirement

3.1 Inventory / Warehousing


WH to be activated at CRWH storage location level under Plant 2202.
Provision to Store Materials in Racks, Bulk and Vendor Consignments based
on storage type and to track the inventory.
Ability to put away materials in storage type based on storage bin
proposed by the system. For updating the stock automatically after put
away confirmation.
Ability to propose storage bins based on stock availability Vs requirement
in pick document during picking.
Should able to do the transfer of Materials from one Storage Type / bin to
another Storage Type / bin.
Physical inventory twice a year.
Initially the parts which are coming from HTSA will be placed in TEMP bin
locations. Later WH will move the materials manually in to the respective
actual Bin Locations.

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Material can be kept in Racks as well as Bulk locations. At the time of put
away the WH people can change the Bin # proposed by the system.
Plant to plant Transfer scenario to be considered. (2203 HITT / PDRI (Non
WH) To 2202 - CRWH) through MB1B.
Internal warehouse Movements confirmation should happen automatically
without any manual intervention, where there is no generation of
Accounting Document
However in the case of Material to Material Transfers and Goods Issue to
cost centers , the confirmation is required to do by WH.
Each Bin will have only one Material. Never place multiple Materials in to
one bin.
3.2 Additional processes
As the SSG materials (Material Groups 83 & 84) also exists in the CRWH
location, identify and move their inventory including Customer
Consignment Stocks to the newly created Sloc CNWH.
Identify the Materials belongs to 83 & 84 Material Groups and extend the
Sloc View.
Change the Shipping Condition in the Customer Masters (SP and SH) for
the identified SSG customers.
Identify and Change the Sloc from CRWH to CNWH for all the Open SSG
Sales Orders.
New Storage Locations PDRI (Projector Doctor) under Plant 2203 and COSD
& STGE under Plant 2202 to be created and extend all the Materials to the
newly created Storage Locations.
3.3 Reporting:

Provision to extract reports to identify Inventory based on the Materials at bin level and
Outbound / Inbound Delivery Monitoring Reports.

4 Assumptions / Decisions
Addition to Bin Strategy is considered for put away.

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5 TO BE PROCESS

5.1 SAP Organization Structure

HAL-DMD Purchase
Company Code (2200) Organization
22C

Sales Sales
Organization Plant 2202 Plant 2203 Plant 2204
Organization
2200 2204
ABCIN

Storage Storage Storage


Location CNWH Location CRWH Location PDRI

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Ware House
202
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Storage Location Storage Location


COSD STGE

Existing company code 2200 will be used.


New Ware House (202) will be created and assigned to plant 2202.
A new Storage location (CNWH) will be created and assigned to plant 2202 to
handle SSG Materials.
A new Storage location (COSD) will be created and assigned to plant 2202 to
handle DAMAGE Goods Receipts.
A new Storage location (STGE) will be created and assigned to plant 2202 and
WH 202 to handle initial Goods receipt against PO.
A new Storage location (PDRI) will be created and assigned to plant 2203 to
handle Customer Returns.
The Highlighted ones are newly being created Organization elements.

5.2 Warehouse Management structure

Plant
2202

Storage location
CRWH

Ware House
202

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Storage Storage Storage


type type type
RCK BLK CON

Storage Storage
section RCK Storage
section BLK section
CON

Bins Bins
Bins

The figure depicts one plant that is managed with one storage location under WMS.
Warehouse
is assigned to storage locations CRWH under plant 2202. In the ware house
complex .there are 3 storage types. The warehouse structure in Warehouse
Management is hierarchical and consists of the following elements:
Warehouse Number (202) will be configured in the system.
Three (3) Storage Types will be defined such as RCK (Racks), BLK (Bulk)
and CON (Vendor consignments).
Each of the above Storage Type is divided in to one Storage Sections. A
storage section generally includes all bins that have certain characteristics
in common, such as bins for "fast-moving items" near a goods issue area.
Considered four sections such as Racks, Bulk, Vendor Consignments and
Customer Returned Materials
Storage Bin - Each storage type and storage section consists of a row of
storage spaces that are referred to in WMS as storage bins. The

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coordinates of the bins indicate the exact position in the warehouse where
goods can be stored.

The Bin Naming convention will be R (Rack) - XX (No of Racks) XX (Level)


XX (BIN) (E.g.:- R-01-05-01- R represents Rack Storage Type, 01
represents Rack No, 05 represents Level & 01 represents Bin No.)
The Naming convention for Bulk (BLK) will be B-B-001, B-B-002, B-B-003
etc.
Similarly the naming convention for Vendor Consignment (Storage Type:
CON) will be B-C-001, B-C-002, B-C-003 etc.

5.2.1 Put away


Addition to Existing Stock put away strategy has been proposed.
When addition to existing stock has been defined as a put away strategy for a
storage type, the system places goods in storage bins that already contain the
same material. With this strategy, the system searches for a storage bin in
which the material is already being stored. A prerequisite for addition to
existing stock is that sufficient capacity should exist in the respective storage
bin. If the system cannot find a storage bin with the same material then system
switches to the "next empty bin" strategy. That means, it searches for the next
available empty storage bin. Please note, the FIFO principle will violate with
this strategy and mix storage is not possible.
Storage Bins will be maintained through automatic creation (LS10 in
configuration only). Transactions used to for Bins: individual creation (LS01N),
individual change (LS02N), individual display (LS03N).
Storage Bins for interim Storage Types will be created automatically (LX20).
Generic storage sections will be created. Only one Storage Section for each
storage type.
Suitable storage bins will be proposed according to put away strategies as
defined.
Storage Bins might be blocked for stock placements or removals by individual
bin (LS02N), by selection of bins (LS06, LS08), or by Material (LS07), by Storage
Type (LS12). The following blocking reasons will be used:

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Administrative block.
Damaged bin.
Equipment related.
Incorrect material.
Building structure blocks bin.

5.2.2 Transfer Requirement (TR) and Transfer orders (TO) -


The placement of materials in the warehouse locations will be tracked
and printed as well as confirmed utilizing Transfer Requirements and
Transfer Orders.
After Goods Receipt from Purchase document (IM movement type
101), Transfer Order t will be created (WM movement type 101).
Transfer Order will be confirmed manually to place stock in the
Storage Type RCK, BLK and CON.
After receiving and physical checking activities are finished on the
receiving docks, warehouse personnel will execute transaction LT10
(WM movement type 999) to move stock to the adequate Storage
Type, according to the put away strategies.
If storage bin needs to be entered manually, the user can overwrite
the destination storage bin using transaction LT10.
Transfer Orders confirmation will be executed via transactions LT12.

If necessary, Transfer Orders may be cancelled using transaction LT15. This only
works for non-confirmed transfer orders. When a transfer order has been confirmed,
the stock movement needs to be reversed with a new transfer order with transaction
LT10.

5.3 Order to Cash Cycle: -

Standard Orders (OR) / Evaluation Fill-up Order (ZKB) / SD NO CHARGE SAMPLE


(ZDON)

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The following is the To Be process to be followed:

Creation of a Sales Order (Manual / EDI / Flat file) from VA01 Transaction.

Creation of Delivery from VL01N / VL10A Transaction. A Transfer Order (TO)


will be created automatically in back ground.
The BOL is printed on the existing preprinted stationary based on the TO.
In the BOL, the bin no will be Printed just below the each of the line item.
Multiple bins suggested if Delivery Qty is fulfilled from different bins.
The materials are delivered to the interim storage type and bin defined for
the movement type 601 (Movement type for Goods Issue to Sales Order).
If its a HI soft Item, move the Material from Vendor consignment to Own
Unrestricted use from ZHTSA Transaction.

Manually Pick the items based on the BOL (Delivery)

Scan Serial Nos using RF Scanner from ZRF1 Transaction by referring to the
Delivery No, where ever required.

Once Scanning is completed and if the TO / Delivery has only Serialized


Materials we can do the TO Confirmation from the Scanner itself.

Once the TO is confirmed system will update the Qty and Serial Nos in the
Delivery.

However if the delivery / TO has the serialized & Non serialized Materials /
items, then serialized Items can be scanned and the entire TO confirmation
has to be done from LT12 Transaction manually (Not from scanner). The
Non serialized materials Pick Qty to be entered manually from VL02N
Transaction.

If the scanners are not in operation, the TO Confirmation and capturing the
Serial nos can be done from LT12 and VL02N Transactions manually.

Update Delivery document with Preferred Carrier #, BillOfLad / Tracking No.


Ship.type and Seal # from VL02N / ZHTSA Transaction.

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Print the Packing List & Commercial Invoice for the Canadian shipments
(CA). For any other International shipments, the Packing List & Commercial
Invoice will be done outside the SAP system.

Printing of Bar Code UCC Labels from ZSLB Transaction.

Fed Ex label Printing (Outside SAP System)

Post Goods issue for the delivery from VL02N / ZHTSA Transaction. Upon
post goods issue, the materials stock is depleted from the interim storage
type and bin, and the order is now available for billing.
Billing document Creation from VF06 through Back Ground Programme.
(Z_III_HHED_BILLING_DAILY)

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To be Process in SAP

system for goods issue


Create sales order (VA01)

Create delivery (VL01N)

Picking from fixed bin Create transfer


Picking order
(automatically)
technique

Confirm transfer
order

Manual process
Post goods issue

Process to done in SAP

system

Manual Process

5.4 Cancel Transfer Order and Delete Delivery: -

Reverse the delivery items through T Code: LT0G, when we did this the
stocks will reverse and place in to the respective source bins in the
warehouse.

Once reversed, one more TO will be generated by the system and can be
confirmed through transaction Code: LT12, then the stocks will place
respective source BINs in the warehouse

Then using VL02N Transaction, the Delivery can be deleted.

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5.5 Customer Returns: - (PDRI- Projector Doctor Storage Location under 2203
Plant)

Creation of Returns Order in Plant 2203 and Shipping Point / Sloc: PDRI
using ZRE Document Type from VA01 Transaction. (Default Storage location
should be PDRI and can over write with HITT)

Creation of Returns Delivery from VL01N Transaction.

As the Returns delivery is not relevant for Picking, do the Goods Receipt
(Plant: 2203 and Sloc: PDI against Returns Delivery from VL02N
Transaction. (The system automatically chooses delivery type LR)

Creation of Credit Memo for Returns from VF06 Transaction using Back
ground Job (Z_III_HHED_BILLING_DAILY)

5.6 Procure To Pay Cycle (Goods Receiving Process)

Creation of a Standard Purchase Order (NB) using ME21N Transaction.


However in the case of Hisoft Material use the frame work Order Type FO.

Creation of goods receipt against Purchase order (NB) using 101 / 101K
Movement type from MIGO Transaction to a Temporary storage Location
called STGE (Temp Inbound Staging)

In case of Damage Stock, the material will be received in to COSD ( Over


Short Damage)

System will be set to create Transfer requirement and Transfer order


automatically.

Lamp Labels may be printed directly from existing external system and its
not interfaced with SAP system. Label will be attached to the material
(Manual).

Based on the SAP standard Transfer Order output (without Bar code), Place
the material in storage bin as indicated on Transfer Order (Manually).

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Transfer Order will be confirmed by executing transaction LT12 manually.


Then the material will be moved automatically to CRWH from STGE
Temporary storage location (Stock will not be available for Availability
check till TO is confirmed) .If required change the Storage bin while doing
Transfer Order confirmation.

Material Stocks can be displayed with transaction MMBE / MB52 (IM) and
LS26 (WM) Stock overview either in base or alternate unit of measure,
indicating quantity in the respective stock category:

Unrestricted stock: stock available for goods issue.

Blocked stock: stock not available for goods issue, which has been
identified as rejected or reserved.

Vendor Consignment stock: stock not available for goods issue

WM Materials stock can be displayed with transaction LS24 Bin stock per
Material and LS26 Total stock per material.

Invoice verification from MIRO Transaction

Release Blocked Invoices for Payment from MRBR Transaction.

Note: - At the time of Goods Receipt for Vendor consignments, the Material will go to
CON Storage Type.

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To be Process in SAP
system for goods
receipts

Create Purchase Order


ME21N

Create material movement in


MM (GR process using MIGO)

Transfer Requirement (TR)


automatically created by SAP
System

Label will be attached Automatically TO will be created


to the material and destination location will be
(Manual) process) assigned within the warehouse
(LT04)

Place stock at the


destination location in Confirm TO (LT12)
warehouse (Manual
Process)

Process to done in SAP


system

Manual process

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5.7 Vendor Return includes hisoft Items.


Create the Purchase Order from ME21N Transaction by selecting the
Returns Item. You cannot set the returns indicator for items, for which
goods receipts and invoice receipts do not refer to the quantity.

Create Goods Receipt against the Returns Purchase Order with transaction
MIGO_GR with movement type 161. The possible reasons for these
movements are Poor quality, Incomplete, Damaged, Wrong material,
Shipper, Obsolete.

Then the stocks are automatically deleted in quantity and value. The
Transfer Order will be created automatically and the Confirmation
has to be done manually.

The PO history is automatically updated.

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To be Process in SAP
system for goods
receipts
Create Return Purchase Order
ME21N (selecting the Returns check
box)

Create material document in


MM MIGO

Transfer Requirement (TR)


automatically created by SAP
System

Automatically Transfer Order


(TO) will be created

Confirm of Transfer Order (TO) will


be manually LT12

5.8 Cancel / Reverse Goods receipt including Hisoft Items.


Cancel material document or return to vendor with transaction MIGO_GR,
movement types 102, 122 and 161, respectively.

In both cases, reason for movement is mandatory. The possible reasons for
these movements are the following:

For movement type 102: Poor quality, incomplete, damaged, correct GR


error.

For movement type 122: Poor quality, Incomplete, Damaged, Wrong


material, Shipper, Obsolete.

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For movement type 161 Poor quality, Incomplete, Damaged, Wrong


material.

In both cases, stocks are automatically deleted in quantity and value. The
Transfer Order will be created automatically and the Confirmation
will be done manually.

In both cases, PO history is automatically updated.

5.9 Material scrapping process (202 WH)


Goods issue for scrapping with transaction MB1A, movement type 551
(unrestricted stock), or 555 (blocked stock). Reversal movement types are
552 and 556 in each case.

Goods issues to cost center will be done with transaction MB1A, IM


movement type 201, reverse movement type will be 202.

TO will be created with reference to TR automatically indicating source


Storage Type and Storage Bin from which material has to be issued.
However the TO confirmation is a manual process.

5.10 Material scrapping process (PDRI under 2203 Plant)


Goods issue for scrapping with transaction MB1A, movement type 551
(unrestricted stock), or 555 (blocked stock). Reversal movement types are
552 and 556 in each case.

Goods issues to cost center will be done with transaction MB1A, IM


movement type 201, reverse movement type will be 202.

5.11 Transfer Material to Material process (WH 202)


Material to Material transfers will be done with transaction MB1B, IM
movement type 309. A Posting Change Notice will be created with WM
movement type 309.

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Movement type 309 will be configured for immediate creation of a TO in


the background, using the same Storage Bin.

The TO will be confirmed manually.

5.12 Transfer Material to Material Process (2203 / PDRI)


Material to Material transfers will be done with transaction MB1B, IM
movement type 309.

5.13 Plant to Plant Transfer (2203 Plant / PDRI To 2202 Plant / 202 WH)
Material to Material transfers will be done with transaction MB1B, IM
movement type 303 from 2203 Plant and Sloc: PDRI Storage Location.

In 2202 Plant and under 202 WH, the Material can be received by using
Movement type 305 and from transaction MB1B. System will generate a TO
automatically. However the Confirmation of TO is manual Process.

5.14 Plant to Plant Transfer (2203 Plant / HITT To 2202 Plant / 202 WH)
Material to Material transfers will be done with transaction MB1B, IM
movement type 303 from 2203 Plant and Sloc: HITT Storage Location.

In 2202 Plant and under 202 WH, the Material can be received by using
Movement type 305 and from transaction MB1B. System will generate a TO
automatically. However the Confirmation of TO is manual Process.

5.15 Material transfer within between storage areas (WH: 202)


Material transfers between Storage Types or storage bins will be done with
transactions LT10, or LT01, movement type 999.

Definition of one step transfers is maintained at Storage Type and WM


movement type configuration. Currently, all Transfer Orders will be
confirmed with one step.

Component transfer confirmation will be performed in one step using


transaction LT12.

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5.16 Internal material transfers within the warehouse


TO transfer stock from one storage bin to another storage bin within
the same warehouse, you manually create and confirm a
transfer order for the material to be moved. A transfer
requirement is not needed.
Since the total quantity of stock in the warehouse remains the same,
stock movements that take place within the same warehouse number
do not require the use of the Inventory Management system.
There will be a stock transfers between two storage locations and
with in a Plant.
There will be a stock transfers (Qlty - Unrestricted, unrestricted to
Qlty etc) with in a storage location.
The stock postings in Ware House i.e Internal warehouse movements
the TO will be create created and confirmed automatically

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To be Process in SAP
system for goods
receipts

Create material movement in


MM (GR process using MIGO)

Transfer requirement
(automatically created by SAP
System)
Label will be attached
to the material
(Manual process)
Automatically TO will be created
and destination location will be
assigned within the warehouse
(LT04)

Place stock at the


destination location in Confirm TO (LT12)
warehouse (Manual
Process)

Process to done in SAP


system

Manual process

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5.17 Physical Inventory process


Pre requisites:
Convert all open transfer of Requirements if any to Transfer orders
under WH 202 from LB10 Transaction.
Confirm all open transfer orders if any under WH 202 from LT23
Transaction.
Extract IM and WM stock reports from SAP and save details in local
file (can be exported into excel) for further reference
5.17.1 Physical inventory Document Creation & Printing of PI Document
(Operations)
Physical inventory document will be created for count with transaction
(LX16), and will be activated as well. Create a variant which includes all the
Storage Types.
Physical inventory document will be created with transaction LX16 for
storage types RCK and BLK. This will allow individual materials within
the open storage types to be counted. Deactivating the inventory
document will not be possible, thus the count must be entered and
cleared before the materials counted are unblocked.
The physical inventory under warehouse management can only be performed bin wise
but not by material. That is, the Inventory documents would create for entire bin,
but not for material(s).
If there is no Inventory in the Bin, system will exclude those bins while printing the PI
Documents.
Physical inventory document will be printed with transaction LI04. The
output document will include the following data: (Operations)
Physical inventory document number.
Material number and description (material code and description).
Current Storage Type and Storage Bin (current storage location).
Blank space to enter the quantity counted/weighed.

5.17.2 Inventory Counting (Operations)


During the days after creation of the physical inventory document, the stock
will be physically counted and manually registered on the printout.

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Current actual stock adjusted considering all movements performed during


the time elapsed since creation of the inventory document, will be entered
on the physical inventory document with transaction LI11N.
5.17.3 Clear inventory differences (Finance)
Clear differences in WM with transaction LI20. This will adjust quantities on
the storage bins, transferring the positive or negative adjustments to the
Storage Type for inventory differences, which is 999 and storage bin will be
the inventory document number for identification.
Clear differences at the IM level with transaction LI21. This will post
differences in stock and value to offset the quantities on the 999 storage
type. A material document will be created with movement type 711 or 712
which will change the stock accordingly and generate an accounting
document.

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Create system inventory


To be Process record (LI01)

Storage bin will Activate system Enter recount (LI14)


block inventory record

Count material at
warehouse Print inventory list
(manually) (LI04)

Enter physical
inventory count
(LI11)

Storage bin will Clear differences at


Process to unblocked warehouse level
done in SAP (LI20)
system
Manual
process Clear differences at
inventory
management level
(LI21)

5.18 Cycle Counting Process

Cycle counting process will be handled by Expeditor outside of SAP system.


As internal requirement, Expeditor will still ensure that each material will be
counted once within 3 months time frame.
During the manual cycle count process, there will be no system restriction
of order or delivery creation.
Expeditor will run standard SAP WMS inventory report as the reference of
the system inventory data and compare that to the physical count they got
to come up with the differences.
The identified inventory differences will be reported to DMD operation for
adjustment request. And the inventory adjustment will be carried out by

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DMD operation using the same SAP WMS physical inventory process
identified in the previous section.

5.19 Credit Memo Request


Create a Credit Memo Request (Doc Type: CR) from VA01 Transaction
Remove the Billing block in the CMR and system will generate a Billing
document from VF06 transaction using back ground Job
(Z_III_HHED_BILLING_DAILY)

5.20 Debit Memo Request


Create a Debit Memo Request (Doc Type: DR) from VA01 Transaction
System will generate a Billing document from VF06 transaction using back
ground Job (Z_III_HHED_BILLING_DAILY)

6 Data Migration (SAP IT / Expeditors)

Material Master View Extension to the Warehouse Management


Extension of BG Materials (Material Groups 44, 45, 46, 47, 48 and 49) to the
newly created Sloc PDRI under Plant 2203 and COSD & STGE under 2202 Plant
respectively.
Creation of Temp Storage bins to the BLK Storage Type based on the list
provided by Expeditors.
De allocate all the open Sales Orders and ensure that there should not be any
Open Delivery / PI Documents.

Move the Inventory pertains to Material Groups 44, 45, 46, 47, 48 and 49 to the
COSD Storage location from CRWH based on the List Provided by Expeditors.
Move the Inventory pertains to Material Groups 44, 45, 46, 47, 48 and 49 back
to CRWH Storage Location (based on the List Provided by Expeditors.)
Move the Inventory pertains to Material Groups 44, 45, 46, 47, 48 and 49 to the
Temp Storage Bins based on the List Provided by Expeditors.
Creation of Actual Bin Locations based on the list provided by Expeditors.
Move the Inventory pertains to Material Groups 44, 45, 46, 47, 48 and 49 from
BLK Bin Locations to the respective WH bins by Expeditors.

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Extension of Materials (Material Groups: 83 & 84) pertains to SSG to the newly
created Sloc ( CNWH) under Plant 2202
Move the Inventory including Customer Consignment Stocks to the newly
created Sloc CNWH from CRWH for the Material Groups 83 & 84.
Change the Shipping Condition in the Customer Masters (SP and SH) for
the identified SSG customers.
Identify and Change the Sloc from CRWH to CNWH for all the SSG Open
Sales Orders.

7 Interface / Background Job Summary

The following existing Interfaces / Background Jobs will continue to be used without
any Modifications.

Interface / Background Job Process Systems Involved


Des
Z_III_HHED_BILLING_DAILY Billing SAP
Bar Code UCC Labels Shipping SAP
( ZSLB )
Lamp Labels Goods Receipt Desktop (Non SAP)

8 Reports

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T Code Transaction Text


VL06O Outbound Delivery Monitor
VL06I Inbound Delivery Monitor
V_UC Incomplete outbound deliveries
VL22 Display Change documents of Delivery
V_SA Collective Processing Log
LT23 List of Transfer Orders for warehouse
LT22 List of Transfer Orders for Storage Types
LT24 List of Transfer Orders for Material
LT26 List of Transfer Orders for Storage Bin
V_UC_ Incomplete Inbound deliveries
7
LS04 Display Empty Storage Bins
LS01 Display Empty Storage Bins
LX03 Bin Status Report
LS24 Bin Stock per Material
LS26 Total stock per Material (Warehouse
Management)
MMBE Total stock per Material (Inventory
Management)
MB52 warehouse Stocks Per Material
LU04 Display Posting Change Notice
MB53 Plant stock Availability
LX01 list of Empty Storage Bins
LX17 Different list of open inventory documents
LX18 Difference Statistics per storage Type
LX25 Inventory Status

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9 Roles & Authorizations

Besides the following, the necessary warehouse & Reports Transaction Codes
Authorizations will also be provided. Create a single Role with all these Transactions
and assign to the identified WH Users.

T Code Transaction Text


FB00 Accounting Editing Options
IDOC IDoc: Repair and check programs
IQ03 Display Material Serial Number
MB03 Display Material Document
MB1B Transfer Posting
MB51 Material Doc. List
MB52 List of Warehouse Stocks on
Hand
MB59 Material Doc. List
MBST Cancel Material Document
MIGO Goods Movement
MIGO_GR Goods Movement
MM03 Display Material &
MM60 Materials List
MMBE Stock Overview
SBWP SAP Business Workplace
SESSION_MANAG Session Manager Menu Tree
ER Display
SM35 Batch Input Monitoring
SM35P Batch Input: Log Monitoring
SM37 Overview of job selection

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SMEN Session Manager Menu Tree


Display
SMX Display Own Jobs
SO00 SAPoffice: Short Message
SO01 SAPoffice: Inbox
SO10 SAPscript: Standard Texts
SP01 Output Controller
SP02 Display Spool Requests
SU3 Maintain Users Own Data
SU53 Evaluate Authorization Check
SU56 Analyze User Buffer
VA02 Change Sales Order
VA03 Display Sales Order
VL01 Create Delivery
VL01N Create Outbound Dlv. with Order
Ref.
VL02 Change Outbound Delivery
VL02N Change Outbound Delivery
VL03N Display Outbound Delivery
VL06 Delivery Monitor
VL06C List Outbound Dlvs for
Confirmation
VL06F General delivery list - Outb.deliv.
VL06G List of Oubound Dlvs for Goods
Issue
VL06O Outbound Delivery Monitor
VL06P List of Outbound Dlvs for Picking
VL09 Cancel Goods Issue for Delivery
Note
VL10A Sales Orders Due for Delivery
VL22 Display Delivery Change
Documents

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VL71 Output from Outbound Deliveries


VLSP Subsequent Outbound-Delivery
Split
VV23 Display Output: Shipping
ZB52 Display whse stk on hand w/stor.
bin
ZHTSA HTSA Maintenance
ZM02 Change PO
ZM06 Storage location weight/volume
Repor
ZRF1 RF First Screen
ZS05 Serial Number Report
ZSLB Bar code UCC Labels

A new Role to be created for Physical inventory Transactions and to be assigned to


the identified Users.

10 High Level Project Schedule:-

S/ Activity Start End Location


N date date
1 Kick off / Requirement 2/10/20 2/11/20 Chula Vista office
Gathering 11 10
2 Requirement 2/14/20 2/18/20 Chula Vista office
Clarification / 11 11

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Blueprint formation

3 Business Blueprint 2/22/20 2/23/20 Chula Vista office


signoff 11 11
4 System Development 2/19/20 3/25/20 Offsite
activity 11 11

5 Infrastructure setup 3/7/201 3/25/20 Expeditor


(T1 line/ Cabling / 1 11 warehouse
Equipment installation
/ Equipment ,
Network testing )
6 Training 3/28/20 3/30/20 TBD (Proposal -
11 11 Expeditor
Warehouse)
7 UAT 4/4/201 4/8/201 TBD (Proposal -
1 1 Expeditor
Warehouse)
8 Stop shipping from 4/7/201 To be confirmed by
HTSA 1 business
9 Confirm if any Open 4/8/201 4/8/201 To be confirmed by
Del & Billing 1 1 business and IT
Documents in SAP will start migration
activity once
confirmed
10 SAP Data Migration 4/8/201 4/10/20 BG & SSG-
1 11 Material Master
Extensions,
Storage Bins
Creation,
Customer Master
update for SSG

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11 Business to cross 4/11/20 4/11/20


check & Signoff the 11 11
SAP Migrated data
12 Deallocation of Open 4/11/20 4/11/20 Open SO / PO
sales Orders. 11 11 updation for BG &
SSG by business
13 Move products from 4/8/201 4/10/20 Move products into
Carson to Expeditor 1 11 bulk locations of
WH Expeditors WH
14 Physical inventory at 4/11/20 4/15/20 SAP is not reuqired
Expeditors WH 11 11 including printing
documents

15 Physical Inventory 4/15/20 4/15/20 Final adjustment in


adjustment 11 11 existing SAP
Inventory
manually in
HAL/DMD
16 Data migration in to 4/16/20 4/16/20 Expeditors to
Temp Bin location 11 11 prepare bulk
(Busiens locations by
s to material into
advise if spreadsheet and
04/15 is verified by
OK. business before
uploading process
start

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17 Move the Inventory 4/17/20 4/17/20


from CRWH to the 11 11
Temp Storage Location
(COSD) based on the
spraed sheet provided
by Expeditors /
business
18 Move back the 4/17/20 4/17/20
Inventory from COSD 11 11
to CRWH based on the
spraed sheet provided
by Expeditors /
business
19 Create actual bin 4/18/20 4/18/20 Load within 4 to 6
locations into SAP 11 11 hours
20 Business to cross 4/18/20 4/18/20 Business to
check & Signoff the 11 11 validate migration
SAP Inventory at result
CRWH and new WH
Bulk Locations with
respect to the
approevd Excel sheet
provided by Buisness
(Step:16)
21 Go Live (SAP system) 4/18/20 4/18/20 Business to
11 11 approve Go Live

22 Allocate the Stock to 4/19/20 4/19/20 Open SO / PO


the Open sales 11 11 updation for BG &
Orders. SSG by business
23 Data entry to move 4/19/20 4/19/20 Expeditors to
products from Bulk 11 11 move products
locatins into actual bin into bin locations

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locations through data entry


in SAP

24 START SHIPPING 4/20/20


11

25 Support 4/20/20 5/6/201


11 1

For more details, Pl refer to the attachment below.

BG Warehouse
Project Schedule_02 23 2011.xls *********************

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