A1A- Make-to-Stock – Discrete

My SAP ERP 2005 AUTO Dash

A1A
Make-to-Stock – Discrete
Business Process Procedure

SAP Channel Partner

KPIT Cummins Infosystems Ltd
Hinjawadi, Pune

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A1A- Make-to-Stock – Discrete

Process Flow Legend

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Contents / Index

1. Purpose.......................................................................................................4
2. Prerequisite.................................................................................................5
Master Data.................................................................................................5
Required Primary Steps.................................................................................5
3. Process Steps...............................................................................................6
Process Flow Diagram....................................................................................6
Process Overview Table.................................................................................7
4. Scenario: A1A – Make to Stock – Discrete.......................................................9
A1A.10 Execute MRP....................................................................................9
A1A.20 Material Staging................................................................................9
A1A.30 Convert planned order to Production Order..........................................10
A1A.40 Multilevel Order Report / Stock-Requirement List.................................10
A1A.50 Capacity Leveling.............................................................................11
A1A.60 Display List of Purchase Requisition to be assigned...............................12
A1A.70 Convert Assigned Requisition to Purchase Order..................................12
A1A.80 Change Purchase order.....................................................................13
A1A.90 Approval of Purchase Order...............................................................13
A1A.100 Print Purchase order.......................................................................14
A1A.110 Receive Goods from Vendor against Purchase Order...........................14
A1A.120 Goods Issue...................................................................................15
A1A.130 Completion of Order Confirmation....................................................16
A1A.140 Goods Receipt................................................................................17
A1A.150 Month End Processing.....................................................................17

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1. Purpose
The Scenario Discrete Manufacturing – make to stock is typically functioned in
Manufacturing Industries which work on Lot size oriented production. This scenario
can be treated as a component of Forecast to Stock strategy family in which right
from material planning to production with preliminary cost object planning is
executed. Goods issue (consumption of Raw Materials) and Goods Receipts (against
production as well as purchase order) material movement will be carried out during
Make to Stock scenario. Completion of Production order through Order confirmation
and Period end closing activities executed in line to this scenario.

Typical Planning process starts with Sales quantities in previous period based on
which future plans can be made. This plan can be transfer to Demand management
to generate Independent requirements of Finished Products. Sales plan can be in line
with production or can be with pre defined proportion also.

Now after requirements are generated through Demand managements, a MRP

procedure can be carry out which is starting point of Make to Stock Scenario. During
MRP run, system will explode Bill of Material and subsequent planned orders for all
components up to last level will be generated. Here system will consider current
stock and requirements to arrive at actual required component quantities.

A Planner can initiate procedure for Bough out items through releasing Purchase
Requisitions to Purchase Dept. Subsequently after component’s availability through
Purchase order goods receipts, Production orders are released to Production floor to
carry out production.

When the order is created, target costs are calculated for the order lot size
(preliminary costing). During the production process, costs incurred are updated on
the order, which enables you to keep track of and compare target costs and actual
costs at any time.

Period-end-closing activities are applied to the order. This includes Work In Progress
calculation and variance calculation. After this, Work in Progress is settled to financial
accounting and production variances are settled to management and financial
accounting.

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2. Prerequisite
Master Data
You have to Enter Master data to execute this scenario.
Following Master data to be maintain or ensure while going through all Business
Process Procedure of this scenario.
 Material Master
 BOM
 Routing
 Vendor
 Vendor Info Record

Required Primary Steps

Ensure that:
 Initial Stock to be maintained
 Costing run has been performed successfully
 Scenarios for Logistics Planning completed so that demand can be
available.

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3. Process Steps
Process Flow Diagram

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Process Overview Table

Step Step Name External Business Role Transac Expected

Process Condition tion Results
Reference Code
1 Execute MRP Planned Production MDBT Planned orders,
Requirements for Planner purchase
materials need to requisitions and
be updated exception
messages
2 Material Manufacturing MF60 / System transfers
Staging MB1B posting from
component
storage location to
manufacturing
storage location.
3 Convert Production needs Production CO41 / Production
Planned Order to be started Planner CO40 order(s)
to Production
Order
4 Multilevel Production MD04 Multilevel order
Order Report Planner report is displayed
5 Capacity When manual Production CM28 / Capacity leveled
Leveling changes are Planner CM01
required
6 Display list of For any Material Buyer ME5A Purchase
Purchase Shortages requisitions are
Requisitions to displayed
be Process
7 Convert Buyer ME21N / Purchase
Purchase ME59N requisitions are
Requisitions to converted to
Purchase purchase orders
Orders
8 Change Purchase order is Buyer ME22N Purchase order is
Purchase Order not accurate changed
9 Approval of List of POs that Purchasing ME28 / PO is now
Purchase require release Manager ME29N released.
Orders
10 Print Purchase Buyer ME9F The purchase
Order order is printed.
11 Receive Goods Warehouse MIGO Goods are
from Vendor to Clerk received
the Purchase
Order

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12 Goods Issue Once components Warehouse MB1A / Goods issue
have been Clerk MB26 (material
delivered to the document) of
manufacturing components
floor
13 Completion Once all Manufacturing CO11N / Confirmation of all
Confirmation operations have CO12 / operations
been completed
14 Goods Receipt When the Manufacturing MB31 Goods receipt
manufactured (material
material arrives at document)
its Production
storage location
15 Month-End D1L- Period Refer D1L Refer Refer D1L
Closing - Plant End Closing Scenario D1L Scenario
Scenario

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4. Scenario: A1A – Make to Stock – Discrete

A1A.10 Execute MRP
Use
MRP Run can be carried out for a particular Material or at Plant level or
for sales order also. A Typical MRP run is scheduled in background at
every night. A variant can be created and can be scheduled which can
be seen by clicking on tab. To carry out MRP
against sales order MD50, against a material MD02 and against a
planning scope MD01, transaction codes are used. All necessary input
as per requirement is given in all transactions.

Prerequisite
Logistics Planning scenario is been completed

Procedure
SAP ECC Menu Logistics > Production > MRP > Planning > Total
Planning > As Background Job
Transaction code MDBT
Business Role Production Planner

A new variant is created by clicking on if it is not available.

Select variable and click to process MRP.

Result
System will generate planned orders, Purchase requisitions and
exceptional messages. To generate result of this activity MD06 can be
referred. To print or to see total report on MRP run, in MDBT
transaction, user needs to click on required scheduling job to see
details.

A1A.20 Material Staging

Use
This activity is carried out to transfer components from Main store to
Production storage location to execute production Order. Generally this
is carried out for low value items which are kept at re order level at
various production storage locations on the shop floor.

Prerequisite
MRP Run is executed

Procedure
SAP ECC Menu Logistics > Material Management > Inventory
Management > Goods Movements > Transfer
Posting

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Transaction code MB1B
Business Role Materials Stores

Enter Movement type as 311 and required plant from which material
need to be transfer. Click on to copy reservations
made through MRP as well as manual by Production Controller. Select
the required items to post and click on and save.

Result
Materials posted to Production storage location.

A1A.30 Convert planned order to Production Order

Use
Planned Orders created from MRP run are then converted to
production Order individually or collectively. MRP controller and Order
dates are to be taken as selection criteria to restrict selection.

Prerequisite
Planned Orders are generated in system

Procedure
SAP ECC Menu Logistics > Production > MRP > Planned Order >
Convert to Prod. Ord. > Collective Conversion
Transaction code CO41
Business Role Production Planner

On the initial screen, enter Plant, MRP controller and Execute

On next screen, select the row for planned order to convert and click
on .
Also Individual Planned Orders can be converted with transaction code
CO40 in which Planned order number with Order type needs to be
given as Input. Partial Conversion is possible with transaction code
CO48 in which individual planned order is partially converted to
Production order.

Result
System will generate Production Order from planned order which will
be displayed in the same row selected.

A1A.40 Multilevel Order Report / Stock-Requirement List.

Use
In this transaction you can view all Purchase requisitions and planned
orders related to require Production order.

Prerequisite
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MRP run is executed

Procedure
SAP ECC Menu Logistics > Materials Management >MRP >
Evaluations > Stock/Reqmts List
Transaction code MD04
Business Role Production Planner

On the Stock / Requirements List: Initial screen, enter the high level
material and plant, choose Enter.
Select Production Order and click on Order Report on the left side.

Result
The list displayed shows the planned orders, purchase Requisitions and
other details on the Multilevel Order Report

A1A.50 Capacity Leveling

Use
The selection of requirements for leveling is based on the Change Time
Period parameters on the selection screen. The default is 4 weeks out.

Prerequisite
Production Orders are created in system

Procedure
SAP ECC Menu Logistics > Production > Capacity Planning >
Leveling > Individual Capacity View > Planning
Table (Tabular)
Transaction code CM28
Business Role Production Planner

On the Initial screen, make the following entries:

Field Description User action and Comment
name values
Work <work center>
Center
Plant <Plant>
Choose Execute.
For the work center: On the next screen, to change the capacity data
for a work center, select the work center, then from the menu, choose
Goto  Capacity  Change Capacity.
For the production order: To change a production order, select the
order and choose Change order.

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Choose Save.

Result
The capacity is leveled

A1A.60 Display List of Purchase Requisition to be assigned

Use
In this transaction you can view all Purchase requisitions which need to
be assigned to a source of Supply.

Prerequisite
MRP Run is executed

Procedure
Easy Access Path Logistics > Materials Management > Purchasing
> Purchase Requisition > List Display > General
Transaction Code ME5A
Business Role Purchaser / Buyer

Display List of Purchase Requisitions based on filter criteria like Plant,

Buyer etc. Deselect assigned Purchase Requisitions check box.
Choose Execute.

Result
The list displayed shows the list of requisitions to be assigned

A1A.70 Convert Assigned Requisition to Purchase Order

Use
In this transaction you assign the purchase requisition to a source of
supply and then convert the assigned purchase requisition to purchase
order.

Prerequisite
Requisition is created

Procedure
Easy Access Path Logistics > Materials Management >Purchasing
> Purchase Requisition > List Display > General
Transaction Code ME5A
Business Role Purchaser / Buyer

After the List of requisition to be assigned and process is displayed,

select the requisition to be assigned and click on .
The system assigns the source for the requisition in the background
and display the info record for the same.
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Select the requisition and Click on .On the assign and
process requisition: overview of assignments. Select on the line for
source and click on . On the popup select the
document type and click on .
On the create purchase order screen drag and drop the requisition to
the .
Click on to check the purchase order and finally save the purchase
order by clicking

Result
Purchase Order is created

A1A.80 Change Purchase order

Use
In this transaction you can change the purchase order as per
requirements

Prerequisite
Purchase Order is created

Procedure
Easy Access Path Logistics > Materials Management >Purchasing
> Purchase order > change
Transaction Code ME22n
Business Role Buyer

On the screen that appears check whether the same purchase order is
opened, else click on to select the required purchase order. Make
the necessary changes as required and save the purchase order

Result
Purchase order is changed

A1A.90 Approval of Purchase Order

Use
This transaction is used to release or approve the purchase order

Prerequisite
Purchase Order is created

Procedure
Easy Access Path Logistics > Materials Management >Purchasing
> Purchase order >Release > individuals release
Transaction Code ME29N
Business Role Manager

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On the Initial Screen, Select the Purchase Order
Enter
Select the Release Strategy tab page click on Release code .

Save .

Result
Purchase Order is approved

A1A.100 Print Purchase order

Use
In this activity, you can take paper print of Purchase Order

Prerequisite
Purchase Order is created and approved

Procedure
Easy Access Path Logistics > Materials Management >Purchasing
> Purchase order >messages > print/transmit
Transaction Code ME9F
Business Role Buyer

On the Message output screen Select , the list purchase order which
can be printed is displayed .select the purchase order and click on

Result
Purchase order is printed

A1A.110 Receive Goods from Vendor against Purchase Order

Use
In this activity, Goods are received against the Purchase Order and
GRN is made. Stock of Items in Purchase Order is created in inventory.

Prerequisite
Purchase Order is created and approved

Procedure
Easy Access Path Logistics > Materials Management > inventory
management > goods movement > goods
receipt > for purchase order > GR for purchase
order
Transaction Code MIGO
Business Role Store Executive

On the Initial screen

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Select Goods Receipts option with purchase order selection.
Enter Purchase Order number for Goods receipts
Enter
System shows details of Purchase Order

In the Header Data tab page, make following entries

>Delivery Note
>Header text

In the Detail Data screen,

In the Quantity tab page enter Quantity for Goods receipts. Partial
GRN can be done against single Purchase Order. In the Where tab
page enter Storage Location, Goods Recipient name etc.
Check In Item Ok check box .

Click Check . Check for any error or information messages.

Post

Result
Stock of Components are updated in inventory

A1A.120 Goods Issue

Use
After components are bought in against purchase order, they are
issued to production order.

Prerequisite
All components required for Production Order are in Inventory with
required quantity

Procedure
Easy Access Path Logistics > Materials Management > inventory
management > goods movement > goods issue
Transaction Code MB1A
Business Role Store Executive

On the Initial screen, make following entries

Field name Value

Movement Type 261
Plant <production order plant>
Storage Location <Goods Issue S Loc.>

Click on To Order for Production Order reference.

Enter Production Order to Issue Goods.

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Continue .
System shows list of components which are to be issued against this
production order. User can select / deselect materials with quantities
for Issue.
Click on Adopt + Details . System shows details for each
component issued.
Save .

Result
Goods required for Production Order are issued.

A1A.130 Completion of Order Confirmation

Use
After physically completing Production Order Operation work, an
operator needs to enter in the system as Operation done. This activity
is carried out to enter Confirmation of Operation in the Production
Order.

Prerequisite
All components required for operation needs to be issued.

Procedure
Easy Access Path Logistics > Production > Shop Floor Control >
Confirmation > Enter > For Operation > Time
Ticket
Transaction Code CO11N
Business Role Production Supervisor
On the Initial screen, make following entries

Field Description User action and Comment

name values
Order <Production Order
Number>
Operation <0010> Operation to
No confirm
Confirm Partial or Full <Final Confirmation> For Final
Type Confirmation type
clear open
reservation
Yield Good <Quantity>
quantity
produced
Scrap <Scrap Quantity> If any Scrap done
Rework Materials <Rework Quantity> If any rework
which can be
still rework to
produce

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finished
material
Activities- Set Up time <Hours or min > User can refer to
Setup for an Planned activity
operation time
Activities- Machine time <Hours or min > User can refer to
Machine for an Planned activity
operation time
Activities- Labor time <Hours or min > User can refer to
Labor for an Planned activity
operation time
Confirm <text> 40 char text
Text

Click on Goods Movement to check for Backflush

components.
Post .

Carry out Operation confirmation for all operations in production order.

Result
All operations in Production Order are confirmed.

A1A.140 Goods Receipt

Use
After Confirmation of all operations, Header material produced. This
Material is posted into stock against Production Order.

Prerequisite
All operations in Production Order are confirmed

Procedure
Easy Access Path Logistics > Production > Shop Floor Control >
Goods Movements > Goods Receipts
Transaction Code MB31
Business Role Production Engineer

On Goods receipts for Order initial screen make following entries

Field name Value

Movement Type 101
Order <Production Order Number>
Plant <production order plant>
Storage Location <Goods Receipts S Loc.>

Enter

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System shows Production Order quantity for receipts
Post .

Result
Finished Material is updated in Stock.

A1A.150 Month End Processing

Period-end-closing activities are applied to the order. This includes
Work In Progress calculation and variance calculation. After this, Work
in Progress is settled to financial accounting and production variances
are settled to management and financial accounting.

Please refer to D1L- Period End Closing Scenario for further details

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