1 - MM Blue Print Document

BUSINESS BLUEPRINT
for
TATA TOYO RADIATOR LTD., PUNE
mySAP ERP IMPLEMENTATION PROJECT
MATERIALS MANAGEMENT
11th June 2004
_______________ ______________________ ______________________

Sign Off Date Signature Customer Signature Consulting
Tata Toyo mySAP ERP Implementation

DOCUMENT NAME AUTHOR / REVISION ISSUE DATE PAGE
MM Blue Print Hemant Mote 11.06.2004 1
CONTENTS
1. Business Blue Print Document…………………………………………………………………………..1

2. Contents…………………………………………………………………………………..………………..2
3. Executive Summary
3.1. Introduction of TTR…………………………………………………………………………………. 3
3.2. Introduction of TTL…………………………………………………………………………………..3
3.3. Current way of doing business……………………………………………………….…………….4
3.4. Proposed way of doing business………….……………………………………………………….4
3.5. Content Introduction…………………………………………………………………………………4
4. Question & Answer Database (Q&A db)
4.1. Question & Answer database (Q&A db)..………………………………………………………… 6
4.2. Business Process Master List……………………………………………………….……………..61
5. Organisation Structure
5.1. Materials Management organisation structure……………….…………………………………..63
5.2. Description of Organisation Structure………………………………….……………..…………...64
6. To-be Processes / Scenarios……………………………………………………………………………. 65
7. Master Data
7.1. Master data List………………………………………………………………………………………101
7.2. Data Migration Strategy……………………………………………………………………………..102
8. GAP Analysis……………………………………………………………………………….………………103
9. Developments
9.1. Enhancement requirements……………………………………………………………………….. 104
9.2. Reporting requirements……………………………………………………………………………..105
9.3. Layout requirements…………………………………………………………………………………106
9.4. Interface requirements………………………………………………………………………………108
10. User Definition and Roles…………………………………………………………………………………110
11. Training requirements and Plan………………………………………………………………………….111
12. Business Benefits………………………………………………………………………………………….112

3. Executive Summary
3.1 The Tata Toyo Radiator Limited (TTR) is one of the leading TACO group of companies and is
a dynamically growing organization with its head quarters in Pune. Tata Toyo Radiator Limited aims to
integrate the Indian automotive components industry with its global counterparts and establish world-
class engineering, product development and system integration capabilities. Given the expected surge
in outsourcing from India and its own strategy to capture this opportunity, Tata Toyo Radiator Limited
believes that it would emerge as one of the premier suppliers to the global automotive industry.
The company is in the area of Manufacturing of Engine cooling systems, Radiators, Inter coolers and
Heater Core. It manufactures world class Engine cooling systems, Radiators, Inter coolers and Heater
Core with perfection by extensive research and development and supplies these products to leading
customers across the globe. Tata Toyo Radiator Limited is currently operating with full capacity of
500000 units per year. The manufacturing facility with the state of art technology in products &
processes is located in Pune.
To keep pace with the growing business demands and as a step forward to improving their
technological base & efficiency, the company has decided to streamline its business operations with
Information technology as a key enabler for the integration process. Keeping this in mind, the company
is planning to implement ERP - SAP, which will not only help them streamline the process but also bring
along with it the best practiced business process the world over. Having decided to go for ERP in their
organisation, Tata Toyo Radiators Limited has selected Tata Technologies to implement mySAP.
3.2 Tata Technologies (TTL) is a global IT solutions provider with over 7500+ work-years of
experience in developing and implementing high quality systems for manufacturing plants, corporate
offices, sales offices and sales outlets. Tata Technologies Worldwide today has a presence in the Asia
Pacific, USA and in Europe. It specializes in providing end-to-end solutions for its clients that tackle
aspects of an enterprise over a complete business cycle right from Design, Data Management,
Manufacturing, and collaboration over the Web, Distribution and Customer Relationship Management.
TTL employs around 1400 consultants across various practice groups.
Tata Technologies is implementing mySAP at Tata Toyo Radiator Ltd. consisting of Financial Accounting
and Controlling, Sales & Distribution, Materials Management, Production Planning, Quality
Management, Plant Maintenance and Project Systems modules in Phase I.

3.3 Current way of doing business:
Materials function spreads over number of departments currently existing in TTR. Material Requirement
Planning starts from PPC department from production plan. For regular buying of components either
local or import, Purchase Department is performing Purchasing Functions of MM. Vendor Development
department which develops boughtout components with outside vendors also involves in Purchasing
function of MM. Stores department is involved in incoming and outgoing material stores management.
Accounts Department is doing bill passing function of Invoice Verification in MM. Account is also
involved in Excise of MM. These departments are currently working on independent platforms and
system. Purchase function is currently performed using Microsoft Office software. Stores use Octopus
system to do the GR, which is not linked with excise. Account department is working on Talley. There is
no integration of information between these departments.
3.4 Proposed way of doing business:
Implementation of mySAP will integrate these departments with common information and same across
all departments. Same master data such as Material, Vendor, and Excise will be used across all
departments. Vendor Development and Purchase department will be raising purchase order or long-
term agreement on vendors. Stores will receive the goods against these orders and agreement. Excise
will have link against these goods receipt to take the cenvat credit. Account department will do the bill
passing against these goods receipts or gate entries done at gate. Subcontracting process either with
duty paid or without duty paid will be also mapped in mySAP. Service procurement is also mapped in
mySAP.
mySAP will give exhaustive list of reports, which will be useful for management and managerial
decision-making.
This Blueprint document for Material Management explains the scope of module along with existing and
proposed processes in Material Management. This document also gives the list of reports, layouts and
gaps, which needs to be developed additionally. Master data required for MM module is also explained
in this document along with migration strategy and template format in which data needs to be collected.
User roles and training requirements are shown in this document.
3.5 Content Introduction:
 Q&Adb: The Q&Adb provides a link between enterprise-specific requirements and

configuration of SAP System. It allows setting project scope and drawing up Business Blueprint
in a process-oriented manner.
 BPML: The Business Process Master List (BPML) allows to set baseline and final scope.
These are used for baseline and final configuration. With BPML we can Access the Project IMG
and specific IMG activities assigned to structure items.

 Organizational Structure: The definition of organization units is a fundamental step in your
project. It is a critical factor in how the project will be structured. It defines organizational units
and how are they mapped in SAP.
 HLCS: The High level Conceptual Solutions will provide a framework for the seamless process
mapping. The HLCS will also give the objective clarity for individual processes.
 Flow Charts: The Flow Charts are pictorial presentation of proposed mySAP mapping of TTR
business Processes. The process step represents the individual SAP transaction or activity that
needs to be performed.
 Flow Chart Explanation: The Story board gives a descriptive account of the Flowchart
process steps. In SAP environment, these process steps, which are business activities will be
communicated to system in form of transaction. The storyboard portrays who, when, what and
how and other intricacies of the Plot (Process).
 Migration Strategy: The Master data migration strategy gives the policies to be used in data
extraction, final data preparation and migration. The Proposed method of upload and schedules
of data load with sequences gives further clarity of this important activity.
 GAP Analysis: Gap in expectations/requirement and mySAP solution outline if observed is

documented. This document will help implementation team in finding the resolutions and bridge
the GAP in coming phases.
 Enhancement Requirements: This is the list of enhancement required to run the business and
type of enhancement.
 Reporting Requirements: This is the list of report either required to be development and
standard SAP report.
 Layout Requirements: This is the list the layout sets needs to be printed either for external
customer and internal requirements.
 Business Benefits: This gives the list of business benefits achieved by implementing mySAP
ERP.

4.1 Question & Answer Database (Q&Adb)
A. Organization....................................................................................................................... 8
1. Cross-Application/Central Organizational Units..................................................................8
1.1. Plant................................................................................................................................... 8
2. Procurement....................................................................................................................... 9
2.1. Purchasing Group............................................................................................................... 9
2.2. Purchasing Organization.................................................................................................... 9
3. Inventory Management, Warehouse Management and Transportation..............................11
3.1. Storage location............................................................................................................... 11
B. General Settings........................................................................................................................ 12
1. Units of Measurement........................................................................................................ 12
C. Master Data............................................................................................................................... 12
1. General Master Records.................................................................................................... 12
1.1. Material Master................................................................................................................ 12
1.2. Service Master................................................................................................................. 17
1.3. Vendor Master Record..................................................................................................... 17
2. Procurement....................................................................................................................... 19
2.1. Conditions........................................................................................................................ 19
2.2. Source List....................................................................................................................... 20
2.3. Quota Arrangement......................................................................................................... 21
2.4. Release Strategy with Classification................................................................................21
2.5. Vendor Evaluation........................................................................................................... 21
D. Business Processes................................................................................................................... 21
1. Procurement....................................................................................................................... 21
1.1. Procurement of Materials and External Services.............................................................22
1.1.1. Purchase Requisition.................................................................................................... 22
1.1.1.1. Purchase Requisition Processing..............................................................................22
1.1.1.2. Purchase Requisition Assignment.............................................................................23
1.1.1.3. Release Purchase Requisition...................................................................................23
1.1.2. Purchasing.................................................................................................................... 24
1.1.2.1. Purchase Order Processing.......................................................................................24
1.1.2.2. Contract Release Order............................................................................................. 27
1.1.2.3. Release of Purchase Orders.....................................................................................27
1.1.2.4. Transmission of Purchase Orders.............................................................................27
1.1.2.5. Scheduling Agreement Delivery Schedule.................................................................28
1.1.2.6. Transmission of Scheduling Agreements...................................................................29
1.1.2.7. Delivery and Acknowledgment Expediter..................................................................29
1.1.2.8. Processing of Shipping Notifications/Confirmations..................................................30
1.1.2.9. Transmission of Shipping Notifications......................................................................31
1.1.3. Goods Receipt.............................................................................................................. 31
1.1.3.1. Reservation Processing............................................................................................. 31
1.1.3.2. Goods Receipt Processing........................................................................................31
1.1.3.3. Goods Receipt Processing with Reference...............................................................32
1.1.3.4. Automatic Generation of Purchase Orders................................................................34
1.1.4. Service Entry Sheet...................................................................................................... 34
1.1.4.1. Service Entry Sheet................................................................................................... 34

1.2. Procurement via Subcontracting......................................................................................34
1.2.1. Purchase Requisition.................................................................................................... 34
1.2.1.1. Purchase Requisition Processing..............................................................................34
1.2.1.2. Purchase Requisition Assignment.............................................................................35
1.2.1.3. Release Purchase Requisition...................................................................................36
1.2.2. Purchasing.................................................................................................................... 36
1.2.2.1. Purchase Order Processing.......................................................................................36
1.2.2.2. Contract Release Order............................................................................................. 39
1.2.2.3. Release of Purchase Orders.....................................................................................39
1.2.2.4. Transmission of Purchase Orders.............................................................................39
1.2.2.5. Scheduling Agreement Delivery Schedule.................................................................41
1.2.2.7. Delivery and Acknowledgment Expediter..................................................................41
1.2.2.8. Processing of Shipping Notifications/Confirmations..................................................42
1.2.2.9. Transmission of Shipping Notifications......................................................................43
1.2.3. Provision of Components.............................................................................................43
1.2.3.1. Goods Issue Processing............................................................................................43
1.2.3.2. Delivery Processing................................................................................................... 44
1.2.4. Goods Receipt.............................................................................................................. 47
1.2.4.1. Goods Receipt Processing with Reference...............................................................47
1.2.4.2. Subsequent Adjustment of Components...................................................................49
1.3. Source Administration...................................................................................................... 49
1.3.1. RFQ/Quotation............................................................................................................. 49
1.3.1.1. Processing of Requests for Quotations.....................................................................49
1.3.1.2. Release of RFQs....................................................................................................... 49
1.3.1.3. Transmission of RFQs............................................................................................... 50
1.3.1.4. Vendor Quotation Processing....................................................................................50
1.3.2. Outline Purchase Agreements......................................................................................51
1.3.2.1. Contract Processing.................................................................................................. 51
1.3.2.2. Scheduling Agreement Processing............................................................................51
1.3.2.3. Release of Outline Agreements.................................................................................52
1.3.2.4. Transmission of Contracts.........................................................................................52
1.4. Return Deliveries............................................................................................................. 53
1.4.1. Shipping....................................................................................................................... 53
1.4.1.1. Message Transmission for Deliveries........................................................................53
2. Inventory Management, Warehouse Management and Transportation..............................55
2.1. Goods Movements.......................................................................................................... 56
2.1.1. Reservation.................................................................................................................. 56
2.1.1.1. Reservation Processing............................................................................................. 56
2.1.2. Goods Accepted........................................................................................................... 56
2.1.2.1. Return Delivery.......................................................................................................... 56
2.1.2.2. Goods Receipt Processing........................................................................................57
2.1.3. Goods Issue................................................................................................................. 57
2.2. Physical Inventory & Cycle Counting...............................................................................58
2.2.1. Physical Inventory........................................................................................................ 58
2.2.1.1. Determination of Scope for Periodic and Continuous Inventory................................58
2.2.1.2. Definition of Scope of Periodic Inventory...................................................................59
2.2.1.3. Printout of Physical Inventory Document...................................................................59
2.2.1.4. Inventory Count......................................................................................................... 59
2.2.1.5. Physical Inventory Analysis.......................................................................................59
2.2.1.6. Post Inventory Differences.........................................................................................59

A. Organization
1. Cross-Application/Central Organizational Units

1.1. Plant
Questions:
Q: 1) Are all plants in the same country? List the plants and countries.
A: All plants are in India. One manufacturing plant at Hinjewadi, Pune and one plant at
Port, Mumbai where materials are stored and taken to manufacturing plant depending on
requirements.
Q: 2) Will negative Stocks be allowed in any plants? If yes, specify the plants.
A: No negative stocks are allowed in any plants.
Q: 3) Do you need special plants for your maintenance work apart from the common
logistics plants?
A: Special plant for maintenance is not required. Hinjewadi plant is defined as

maintenance plant.
Q: 4) Which enterprise entities carry out production and what do they produce?
A: Hinjewadi plant is a manufacturing plant and it produces radiators, inter coolers, heater
cores and engine cooling systems.
Q: 5) How does material move between plants (for example, using purchase orders or
not)? What are the requirements you have to fulfill concerning reporting, transport papers,
etc.?
A: Materials will be moved from plant to plant under stock transport order. Freight cost will
be captures during this movement.
Q: 6) Outline all facilities/locations that create, distribute, or store inventory.
A: In plant Hinjewadi, raw material stores, boughtout components stores, mtn spares
stores, finished goods stores, returnable trolley stores, packing material stores etc.
In Mumbai port also material is stored and removed after paying duty as per requirements.
Finished materials are moved under sales orders to customers.
Q: 7) Does the manufacturing/distribution process for a product differ such that the
inventory value/cost structure is different at each facility/plant? If so, please explain how.
A: Currently manufacturing is only at Hinjewadi. Goods are distributed only from this plant.

Q: 8) At which level should the balances be assigned to the organizational units?
Explanation: In the SAP system, warehouse stock is managed at the company code or
plant level. This means that within a plant, a material is always assigned to exactly one
profit center.
A: Stock balances are assigned to plant level.
2. Procurement
2.1. Purchasing Group

Questions:
Q: 1) Shall purchasing groups represent individual buyers or groups of buyers? If Groups

of buyers, provide a list of groups.
A: Purchasing group code will be given to Individual buyers.
Q: 2) Provide a list of buyer names.
A: Purchasing buyers are distributed in import, vendor development, regular purchase and
administrative department. List of buyer names will be given later on.
2.2. Purchasing Organization

Questions:
Q: 1) Which purchasing departments exist in your enterprise?
A: Single purchasing organization. Same purchasing organisation will be used for stock
transporting from Mumbai port to Hinjewadi plant.
1000 - TTR Purchasing Organisation
Q: 2) If there is more than one department, which handles all purchasing, specify which
department(s) negotiates pricing terms and conditions with your suppliers.
A: Single department for negotiating pricing terms and conditions with your suppliers.
Q: 3) Do you have departments outside your purchasing department, which handle

purchasing? If so, list these departments and what they purchase.
A: There is no department, which is outside and handles purchasing.
Q: 4) How do the departments share the task of procuring the goods and services
required by the organization?
A: Single department is for procuring goods and services.
Q: 5) Where do you procure materials/services in your enterprise?

A: Materials are procured from local and import vendors. Imported material comes to Port
plant and then moved to manufacturing plant as per requirements. Services and also
procured from either local or imported vendors.
Q: 6) Which material types/external services do you procure?
Explanation: Examples of material types: Raw material semifinished product Trading

goods Empties Packaging
A: Materials - Raw material, Semifinished items, packing, Consumables, capital items,

general supplies, spares
Services - Maintenance services, Civil works, Administrative
Q: 7) For which enterprise entities do you procure materials/services? List these

materials/services.
A: Materials are procured for Plant at Hinjewadi. This includes raw materials (imported or
domestic), bought out finished components, maintenance spares, consumables, packing
materials, returnable trolleys, capital items etc. Service includes testing of equipments,
maintenance services etc.
Q: 8) Do you have corporate and localized purchasing functions?
A: We do not have corporate purchasing functions. All purchasing is done at plant level.
Q: 9) Do you negotiate vendor pricing at a corporate or local level?
A: No corporate level purchasing.
Q: 10) Where do you procure materials/services in your enterprise centrally?
A: All purchasing activities are at plant level.
Q: 11) Which materials/services do you procure centrally?
A: All purchasing activities are at plant level.
Q: 12) For which enterprise areas do you procure materials/external services centrally?
List these materials/services.
A: Purchasing activity at Plant level.
Q: 13) Where do you negotiate centrally agreed contracts for the purchase of
materials/services in your enterprise?
A: No centrally agreed contracts.
Q: 14) For which materials/external services do you negotiate framework contracts?

A: Framework contracts could be used for Office stationery.
Q: 15) Which enterprise entities can release orders against these contracts?
A: Plant releases orders against contracts.
Q: 16) Do you want to have procurement in particular enterprise areas/business areas or

product groups separated?
A: No purchasing is at enterprise areas/business areas or product groups level.
3. Inventory Management, Warehouse Management

and Transportation
3.1. Storage location

Questions:
Q: 1) List the storage locations that you will need for each Plant.
A: BC01 - Boughtout Items

CM01 - Consumables
CP01 – Capital Stores
CR01 - Customer returns
EN01 - Engg Stores
FG01 – Finished Stores
PK01 - Packing material
QM01 - Quality Stores
RJ01 - Rejected Material
RM01 - Raw Material
RT01 - Returnable Material
SC01 - Scrap Yard
SF01 - Semi finished Stores
SP01 - Mtn Spares Stores
TM01 - Temp Stores
WIP1 - WIP Stores
BS01 - Bonded Store
Q: 2) Will negative Stocks be allowed in any storage locations? If yes, specify the storage
locations.
A: No negative stocks are allowed anywhere in plant.
Q: 3) Are there any stocks in your company that you own, but that are not stored in your
company physically?
A: Yes - Subcontracting purchases. Stocks are stored at subcontracting vendors' place.
Q: 4) Explain your strategy(s) regarding material receiving and product picking.
A: FIFO

Q: 5) Do you need to check the capacity of your location?
A: Capacity at stores is not checked.
Q: 6) Does each part have a unique location or can they be stored anywhere?
A: Yes, each part has a unique location in storage location. Stores needs to create the
unique location number for each material.
Q: 7) EH&S: Are your hazardous substances stored in separate storage locations (i.e.
does anything prevent you from storing them together)? How many hazardous substance
warehouses are there in each plant?
A: Yes
Materials like Diesel, Nitrogen
Q: 8) EH&S: Do you assign the hazardous substance warehouses their own picking areas
if you distinguish between: - one hazardous substance warehouse, many storage locations,
one picking area - many hazardous substance warehouses, many picking areas - other?
A: One picking area
B. General Settings
1. Units of Measurement
Questions:
Q: 1) What are the units of measurement used for sales?
Explanation:
A: All SAP standard unit of measurement can be used.
Additional units, which are required, are given below.

Nos - Number.
Pc - Piece.
Kg - Kilogram ( for Scrap )
If any other unit ism required, can be created.
C. Master Data

1. General Master Records
1.1. Material Master

Questions:
Q: 1) Which departments/organizational units are responsible for maintaining the material

data?
A: BOM items are maintained by Engg department; where as other materials are
maintained by respective department depending on requirements. Quality department
maintains quality related information. Accounts department maintains accounting and
costing related information. Purchase department maintains purchasing and MRP data.
Stores department maintains storage related data.
Q: 2) Is master data common across all departments (common master data)?
A: Yes, master data is common across all departments.
Q: 6) Do you group similar products together (for example, in divisions or material

groups)?
A: Yes, different materials are grouped together under material groups.
Q: 8) If you have multiple plants, is your material normally supplied by a specific plant?
A: Although we do not have multiple plants for manufacturing, imported material is stored
at port and withdrawal is as per requirements.
Q: 14) Can a material have different values in one plant? What are the criteria for the
different values?
A: Materials will have only one value in one plant.
Q: 15) According to which criteria, does your material master data let you select with
regard to planned QM processes (for example, goods receipt inspection only for raw
materials etc)?
A: Quality department decides the criteria for inspection of materials.
Q: 17) Are the technical delivery terms stored online, and will you print these terms with
each purchase order?
A: Packing instructions are printed on purchase orders.
Q: 19) Do you require your vendors to provide samples for approval prior to actual
delivery? Please describe.
A: Although vendors give samples before regular supply, will be tracked through QM
module.

Q: 20) Do you block a vendor invoice for payment until the quality inspection has been
successfully completed?
Explanation: Note: The block can be removed manually if required.
A: Yes, vendor invoice is not booked until quality inspection is completed. (User exit is
required.)
Q: 22) How many different materials do you procure on a regular basis?
A: Max 4000 (raw materials, packing, spares)
Q: 23) Do you want to maintain a source list for the material types you will procure?
A: Yes, source list is maintained for certain materials and not on material type basis.
Q: 25) Each material must belong to exactly one material group. Which material groups
do you need to organize your materials?
A: List of material groups will be given later on.
Q: 26) Will you need to run MRP ?
A: Yes
Q: 29) Are separate material master records (perhaps with a separate material type or
numbering system) used in the development and engineering/design processes? How and
when are they converted to operational material number and type)?
A: Separate numbering system is available for BOM items and for other items. Material
number is in alphanumeric form and will be entered externally.
Q: 30) Do you use other systems (such as service management or costing) that need
material master records from R/3 and therefore a permanent interface?
A: No interface
Q: 31) Describe the structure and numbering system for material numbers
(internal/external, specific to material type, other criteria).
A: Material numbering is external. It is not specific to material type.
Q: 32) Which material types do you use (please complete): FERT, HALB, ROH, KMAT,
HAWA, FMHI, ...?
A: Following material types will be used.
FERT - finished materials

HALB - Semi-finished
ROH - Raw Materials

ERSA - Spares
HIBE - Consumables
DIEN - Services.
VERP-Packing Materials
All SAP standard material types will be used. In addition to these some other material type
will be created depending on valuation class.
Q: 33) Do you maintain multilingual descriptions for materials? Which languages are
relevant? How and when are they translated?
A: Material description is only in English language.
Q: 34) What types of texts do you maintain for your materials?
A: Material text could be in the form of packing instructions.
Q: 35) Please describe the process for creating and adding to material data. Include
release procedure/status, important sequences, automatic notifications (workflow),
responsibilities, authorizations, involved systems, and so on.
A: Authorization could be to Accounts, Purchasing, Stores, and Quality department

depending on their functional views.
Q: 37) Which cross-plant and plant-specific material statuses are necessary?
A: Cross plant and plant specific material status is necessary and will be used.
Q: 38) Do you need to customize the appearance of or add data fields to the material
master record (additional fields, customized material master, field selection, customer-
specific field checks)?
A: No need to customize the appearance of material master record.
Q: 39) Do you use classification for your material masters? For what reasons (storing
addition information, search functionality, or variant configuration)?
A: Material is not classified.
Q: 40) Do you classify standardized parts by loading DIN classes and characteristic data
records?
A: Not required.
Q: 42) Do you have inventory valued in different currencies at the same facility?
A: NO
Q: 43) Are your materials taxable?
A: Yes, taxes are applicable while purchasing and selling of materials.

CI template:
1. Requirements/Expectations
The material master database (often referred to simply as the "material master",
comprising all the individual material master records stored in the system) contains
descriptions of all materials that an enterprise procures, produces, and keeps in stock.
It is the central repository of information on materials (such as inventory levels) for the
enterprise.
The integration of all material data in a single materials database eliminates the
problem of data redundancy and permits the data to be used not only by Purchasing,
but by other applications (such as Inventory Management, Materials Planning and
Control, Invoice Verification, and so on).
Descriptions of the individual materials used in an enterprise are stored in material
master records.
2. General Explanations
The following list shows some types of information a material master record contains
and provides examples of each:
 Accounting
· Valuation and costing/price calculation information. Examples: Standard price,
past and future price, and current valuation.
 Materials planning and control
· Information for material requirements planning (MRP) and consumption-based
planning/inventory control. Examples: Safety stock level, planned delivery time, and
reorder level for a material.
 Purchasing
· Data provided by Purchasing for a material. Examples: Purchasing group
(group of buyers) responsible for a material, over- and underdelivery tolerances, and
the order unit.
 Storage
· Information relating to the storage/warehousing of a material. Examples: unit of
issue, storage conditions, and packaging dimensions.
 Forecasting
· Information for predicting material requirements. Examples: How the material is
procured, forecasting period, and past consumption/usage.
 Sales and distribution
· Information for sales orders and pricing. Examples: Sales price, minimum order
quantity, and the name of the sales department responsible for a certain material.
3. Naming/Numbering Conventions
All materials will have the external numbering, that is, whenever a new material is
created, the material number will be given by the person creating the material.
4. Special Organizational Considerations
Stores Personnel will create the Material Master General view, Storage view,
Purchasing View, MRP View, Forecasting View.
Accounting Personnel will create the Accounting and Costing View of Material Master
after getting intimation from stores Personnel.
6. Description of Improvements
The search facility for materials is available in various categories, for example, if a user
knows only the part description of a material or the plant to which this material belongs
or the material group or the material type, he can easily find out material number.
Therefore, the users need not remember any material number for working on SAP.

7. Description of Functional Deficits
Nil
8. Approaches to covering Functional Deficits
Nil
9. Notes on further Improvements
Nil
1.2. Service Master

Questions:
Q: 1) Is it necessary for you to procure services from external suppliers? If so, do you
want to structure and manage these services? What kind of services do you procure?
A: Yes, services are procured from external vendors. Service master records will be
created. Following types of services are procured from vendors.
- Civil works
- Testing of equipments
- Calibration of test equipments and etc.
1.3. Vendor Master Record

Questions:
Q: 1) What types of vendors do you have? (domestic, foreign, payment address, etc.)
A: We have domestic, import, service, transporters vendors.
Q: 2) How many active vendors do you want to transfer to R/3?
A: Around 500 vendor are active for BOM items and around 500 vendors are for other
materials.
Q: 3) How do you want vendor numbers assigned in the R/3 System? Name your criteria
for manual and automatic number assignment. Describe the format of manually assigned
vendor numbers.
Explanation: Ways of assigning numbers: 1. Automatically by the R/3 System 2. Manually

be the user 3. Automatically and manually
A: [ ] Always automatically from the SAP System

[X] Always manually from the user
[ ] Automatic or manual
Q: 4) Do you have plants that supply materials or services to other plants in other
company codes?
A: Currently, we have only one company code. Cross company code transaction are not
present.

Q: 5) Do stock transport orders take place between stores or between the DC and store?
If so, for which sites?
A: Stock transport order will be used to transport imported material from Port to
manufacturing plant.
Q: 6) Do you want to reflect the organizational structure of your vendors in the R/3
System?
A: No
Q: 7) Is it necessary for you to maintain different purchasing vendor master data for
different plants?
A: Yes, different purchasing vendor master data is available for different plants.
Q: 8) When working with your suppliers, do you deal with people with different roles? If
yes, indicate the appropriate roles.
A: [ ] Order recipient
[ ] Goods supplier
[ ] Invoicing party
[ ] Payment recipient
[X] Other, please specify
Q: 9) Do you employ different payment terms by facility?
A: Currently vendor are paid through cheque payment only.
Q: 10) Are there any vendor-specific instructions or information that you want to include in
purchasing documents?
A: No
Q: 12) Do you specify foreign-trade-specific information in your purchasing documents

(such as CIF or FOB)? hose needed.
A: Yes, delivery terms are printed on purchase orders.
Q: 13) Do you have vendors with several/different ordering addresses, payees, carriers,
and so on? If so, what do these depend on (assortment, supply region)?
A: No
Q: 14) Do you need to maintain default data for the article master (such as planned
delivery time, purchasing group) at vendor level?
A: No
Q: 16) How many vendors regularly supply you with goods?

A: Around 500 vendors supply regularly with goods.
Q: 17) Do you have vendors who are subject to withholding tax?
Explanation: Possible to group with different account groups; Maintenance of fields in

master record. in master record.
A: Few vendors are subject to withholding tax.
2. Procurement
Questions:
2.1. Conditions
Questions:
Q: 1) Which price components do you use in purchasing documents (e.g. gross price,
surcharges, discounts, freight, duty, import)?
A: Following price components are used in purchasing documents.

Basic price
Excise duty
Sales tax
Turn over tax,
Surcharge
Freight
Sales tax set off
Service tax
Tooling amortization
Customs duty
CVD
SAD
Insurance
WCT
Packing & forwarding
Q: 2) Do prices depend on the quantity ordered (e.g. quantity discounts or price scales)?
If so, specify price components, quantity, and other factors.
A: No
Q: 3) To which date does the price determination process relate? (E.g. delivery date, PO
date, other.)
A: Price determination is related to PO Date.
Q: 4) Is pricing information from other systems to be used for price computation purposes
in R/3?

A: No
Q: 5) Do you manually change the price at header level for the entire purchasing
document?
A: Price is not changed at header level for entire document.
Q: 6) Do you allow changes to the gross price that is automatically determined by the R/3
System?
A: No
Q: 7) Does the vendor's price include value-added tax?
A: No
Q: 8) Is it possible to change pricing conditions after a PO has been created?
A: Yes - It is possible to change the pricing conditions after a PO has been created.
2.2. Source List

Questions:
Q: 1) Will you maintain specific vendor hierarchies?
A: No
Q: 2) Do you want to maintain a list of approved vendors? This means that if a material is
subject to a source list requirement, it can only be procured from the vendors included on
the source list.
A: Yes
Q: 3) Do you need a source list for: (1) all materials (2) all materials of a plant (3) certain
materials only? Please explain.
A: Source List will be used for certain selected Materials only.
Q: 4) Is there a fixed vendor for some materials? (1) No. (1) Yes, in certain plants
(specify) (2) Yes, across the entire enterprise (3) Yes, everywhere except in certain plants
(specify).
A: Yes, for some materials in plants, fixed vendors exists.
Q: 6) Should it be possible to for purchase orders to be created automatically in the

course of material requirements planning (MRP)?
A: Yes

Q: 7) Should it be possible to for scheduling agreement schedule lines to be created
automatically in the course of material requirements planning (MRP)?
A: Yes
2.3. Quota Arrangement

Questions:
Q: 1) Will you maintain specific vendor quotas (for example 70 % from vendor A, 30%
from vendor B) for your materials? If yes, how many quota arrangements are you currently
maintaining?
A: Yes, few materials are procured from more that one vendor.
2.4. Release Strategy with Classification

Questions:
Q: 1) Will any purchasing documents be subject to approval in SAP? If yes, describe the
criteria that will be needed to determine the appropriate approval policy for purchase
requisitions, RFQs, purchase orders, contracts, scheduling agreements.
A: Purchase requisition
Criteria for approval - Value, Buyer code / Document type
2.5. Vendor Evaluation

Questions:
Q: 1) How do you evaluate vendors in your legacy system?
A: Vendors are evaluated on cost, delivery performance, schedule adherence, quality and
lot of other qualitative factors.
Q: 2) Which criteria do you use to evaluate your vendors?
A: Detailed procedure for evaluation of vendors will be evolved before implementation.
Q: 3) How do you rate the scores for these criteria? If the criteria are not weighted
equally, indicate the individual weightings.
A: Different vendor are evaluated on different criteria.
D. Business Processes
1. Procurement

Questions:
Q: 2) How does material move between plants?
A: Currently we have single plant, which manufactures the material. Mumbai port plant
imports the material and then it is transferred to Pune using stock transport order.
CI template:
- New part should trigger generation of RFQ/PO on existing vendors.

- Price comparison should take into consider the tooling cost investment.
- Activities in development of part such as design, tooling development, sample receipt
should be tracked.
- If vendor has done any tooling correction after sample rejection, it should be recorded
in mySAP.
- Price revision based on raw material prices should be reflected in final price.
- Retrospective price amendments.
- Separate PO series should be available for parts under development.
- Vendor performance while development should be tracked.
- Tooling cost amortization consideration over certain number of pieces.
- Packing materials are initially valuated while receiving from vendor and then not
valuated in regular transactions.
- Purchase requisition should have indicative price.
- Before issuing PO, vendor rating should be shown in terms of financial ratio.
- Vendor capacity should be tracked.
- In case of free supplies for vendor, if item is rejected, then vendor debit should include
cost of free supplies.
- mySAP should handle freight payment to vendors.
3. Explanations of Functions and Events
Part Numbering System.
Parts under development are shown as B0ACI5001D00. Any revision in drawing or

design is incorporated as B0ACI5001D01. When part is transferred to regular
production, then part number becomes B0ACI5001M00. When part is further changed
in regular production, then part number becomes B0ACI5001M01.
1.1. Procurement of Materials and External Services

1.1.1. Purchase Requisition
1.1.1.1. Purchase Requisition Processing
Questions:
Q: 1) How are purchase requisitions created in the case of stock material, material for
direct consumption, external services?
A: [X] Manually
[X] MRP
[ ] Sales order
[ ] Replenishment
[ ] Store order

[ ] Outside R/3
Q: 2) Will you use a purchase requisition to trigger creation of for a contract or scheduling
agreement (Outline Agreement Request)?
A: Yes, a contract or scheduling agreement is created with respect to purchase

requisition.
Q: 3) How many days does it take, typically, before a purchase requisition becomes
demand in a purchasing document given to a supplier? Please indicate processing time per
plant.
Explanation: This would be used by the system to calculate replenishment lead times.
Example : In plant A, within two days the purchasing department will convert a requisition
for widgets into a purchase order issued to a supplier. Please indicate processing times per
plant.
A: Minimum 1 day to 30 days. Specific time is required to indicate the creation of PR prior
to PO.
Q: 4) Will purchase requisitions generated via material/article requirements planning be

manually post-processed?
Explanation: Problematic if dynamic rounding profiles are used, because these only take
effect at the time of conversion into POs. You post-process the result, which is changed
again after the manual post-processing (via rounding profiles). (via rounding profiles).
A: Yes
1.1.1.2. Purchase Requisition Assignment
Questions:
Q: 1) On the basis of which criteria are purchase requisitions assigned to a source of

supply?
A: Purchase requisitions are assigned to a source of supply from list of approved sources.
(Source List)
Q: 2) On the basis of which criteria are purchase requisitions grouped together?
A: Purchase requisitions are grouped together as per Project.
Q: 3) What support (e.g. price simulation) does the buyer need in order to assign the
purchase requisition?
A: Price comparison or approved source list.
Q: 4) Are purchase requisitions converted into requests for quotations?
A: Yes

Q: 5) Which sources of supply will you use for purchase requisitions? Are these sources
of supply internal and/or external to your company?
A: Sources are external to our company (Vendors).
1.1.1.3. Release Purchase Requisition
Questions:
Q: 1) Should requisitions be subject to approval by someone (or possibly several people)

before the requisition can be processed into an RFQ and/or purchase order?
Explanation: Example: all requisitions for over $1000 must be approved by the purchasing
department manager, all requisitions for over $10000 must be approved by the department
manager and the chief financial officer. If yes, describe the approval process, and under
what circumstances the approval process applies - for stock material - for consumable
material - for external services
A: Release strategy is required for purchase requisition
Q: 2) Are the purchase requisitions subject to a release strategy? If so, which criteria
apply?
A: Yes, purchase requisition are subjected to release strategy based on
Value of item
Buyer code or document type
Q: 3) How is the person responsible for releasing the purchase requisition to be notified?
A: [ ] Via workflow
[ ] Other procedure
[X] Approver regularly checks R/3
[ ] By telephone
[ ] By e-mail
1.1.2. Purchasing
1.1.2.1. Purchase Order Processing
Questions:
Q: 1) How will purchase orders be created in your system?
A: [X] Manually
[X] From purchase requisitions (manual or automatic)
[ ] From store order
[ ] From replenishment
[ ] From allocation table
[ ] From load-building run
[ ] From SAP Retail Store
[X] For stock material
[X] For consumable material
[X] For external services
Q: 2) Do you want the system to check whether the purchase price is within a predefined
tolerance in your system, compared with the material valuation price?

A: Yes. Tolerance limit value in % and absolute term on both the side - lower and upper
side is required.
Q: 3) Describe how the source of supply is determined for manually created purchase
requisitions!
A: Source of supply is assigned manually.
Q: 4) Specify the consumption categories for which you will procure external services and
material directly: Asset, cost center, production order, project, sales order, other (please
specify).
A: Cost center, asset, project
Q: 5) Which types of purchase order will you use?
A: [X] Standard
[ ] Consignment
[X] Subcontracting
[X] Stock transfer
Q: 6) How do you transmit purchase orders to your vendors?
A: [ ] via mail
[X] via fax
[ ] By EDI
[X] Other
Q: 7) Do you order material in a unit of measure that differs from the one used for stock
keeping purposes?
A: Yes
Q: 8) Do you pay for material in a different unit of measure than the one that is shown in
the PO/and or used for stock put away?
A: No
Q: 9) Is it necessary to track certificates of origin and/or customs reference numbers for

materials produced in foreign countries?
A: Yes. Certificate of origin needs to be tracked for imported material.
Q: 10) Will you be purchasing material imported from foreign vendors ?
A: Yes
Q: 11) Are purchasing info records to be updated automatically with every purchase
order?

Explanation: If updating is desired and you use rounding profiles in the case of stock
transport orders, after the first purchase order created the logistic data on the article is no
longer read for the rounding profile. Instead the newly created purchasing info records are
read! profile. Instead the newly created purchasing info records are read!
A: Yes
Q: 12) Do you wish to analyze/evaluate purchase transactions according to the reasons

for ordering?
A: Yes
Q: 13) Do you plan and enter freight costs in the PO? If yes, describe the basis of the
costs. Also indicate if any types of costs can be determined automatically (for example,
freight costs per piece, per unit of weight, as a percentage of the value).
A: Freight costs are entered in PO.

Freight costs are
i. per unit basis
ii. per consignment basis.
iii. percentage basis
Q: 14) Do you want to prevent users from changing the account assignment of items in
purchasing documents for which they have no authorizations? If so, for which purchasing
documents?
A: [X] Purchase requisitions

[X] Purchase orders
[X] Contracts
[X] Scheduling agreements
Q: 15) Do you sometimes order stock material directly for a cost center or another
consumption category?
A: Yes
Q: 17) Do you allow overdeliveries? If so, specify the percentage variance for the
individual materials/material types.
A: Yes. percentage to be specified.
Q: 18) On the occasion that a vendor sent you less than the quantity ordered, would you
ever want this shortfall to be considered an under delivery, with no further deliveries
expected? Please list the values for each material/material group.
Explanation: In case of exceeding this value, it will be a partial delivery. In case the value
stayed below, it will be an under delivery
A: Underdelivery tolerance are used in raw materials.
Q: 19) Can the materials you purchase be subject to different tax types? (For example,
based upon the material purchased, based upon the plant for which the material is
purchased, etc)? o

A: Yes. depending on material, Supplier region and supplier name.
Q: 20) Do your POs issued to vendors contain specific transport or packing instructions?
Is vendors' compliance with the transport and packing instructions to be recorded when the
goods are received ?
Explanation: e.g., full compliance, ignored instructions, ...
A: Packing instructions are tracked while doing goods receipt.
Q: 21) Is it to be possible for purchase orders to be generated automatically following a

goods receipt? Specify the criteria for this.
Explanation: Define the movement types for which this should be allowed.
A: Automatic PO generation should not be allowed.
1.1.2.2. Contract Release Order
Questions:
Q: 1) Will contract release orders be created in R/3 manually, with reference to purchase
requisitions, and/or automatically? (For more details, refer to the Source Administration
Scenario.) - for stock material - for consumable material - for external services
A: Contract release order are created with respect to purchase requisition
1.1.2.3. Release of Purchase Orders
Questions:
Q: 1) Are purchase documents to be approved by someone before being issued to

vendors? Describe the approval procedure....
Explanation: Example: all purchase orders for over $100,000 must be approved by the
purchasing department manager, all purchase orders over $1 million must be approved by
the President. Describe the approval process, and under what circumstances the approval
process applies. - for stock material - for consumable material - for external services
A: Yes.
Q: 2) How is the person responsible for approval to be notified? - Approver checks R/3
regularly, by phone, by e-mail, by workflow, other.
Explanation: Background: Workflow for release procedure Background: Workflow for

release procedure
A: Always check through R/3 system
Q: 3) Will you use an electronic signature to release purchasing documents?
A: No
1.1.2.4. Transmission of Purchase Orders

Questions:
Q: 1) How do your vendors transmit shipping notifications?
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Q: 2) What information does the shipping notification contain?
A: Shipping notification consists of material number and quantity, date of shipping.
Q: 3) How are your RFQs and rejection letters to your vendors to be transmitted?
A: [ ] Internet
[X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Q: 4) How long after ordering and before the time of delivery should a shipping notification
have been received?
A: Minimum 1 day earlier shipping notification should have been received.
Q: 5) Are there differences per vendor and/or site? If so, which?
Explanation: Customizing and master data message determination Customizing and

master data message determination
A: All POs are sent through paper only.
Q: 6) How will you transmit your purchasing documents to your vendors?
Explanation: If you are using EDI, note also the EDI process in the reference structure.
A: [ ] Internet
[ ] Other, please describe
[ ] By telephone
[ ] By e-mail
[ ] By fax
[ ] By EDI
[X] By post (in written form)
Q: 7) Do you wish to adopt vendors' own nomenclature for characteristics (color codes,
etc.) on your order form?
A: No
Q: 8) How are purchase orders to be transmitted?

A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
1.1.2.5. Scheduling Agreement Delivery Schedule
Questions:
Q: 1) Are scheduling agreement delivery schedules/SA releases created in R/3 manually,

with reference to requisitions and/or automatically? (Further details in sourcing
administration scenario.)
A: Sometime schedules will created through MRP and sometimes schedules are created
manually.
Q: 2) How do you wish to synchronize (monitor) the delivery schedules/SA releases with
respect to the quantities delivered?
A: Schedule adherence is checked with delivery date and quantity variations
Q: 3) Do you want to offer your vendors the option of viewing the scheduling agreement
releases via the Internet?
Explanation: The prerequisites for using Internet release are that the Supplier Workplace is
installed in your system and that the vendors concerned can access it via the Internet. In
the release creation profile you can specify which release type is to be handled as an
Internet release.
A: No
1.1.2.6. Transmission of Scheduling Agreements
Questions:
Q: 1) How do you wish to transmit scheduling agreements?
A: [ ] Internet
[X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI

A: No
1.1.2.7. Delivery and Acknowledgment Expediter
Questions:

Q: 1) How many days after the due delivery date will you send messages to your vendors
urging delivery of the overdue goods?
A: After 2 days.
Q: 2) Should this deadline monitoring vary for different materials or articles? If so, please
explain.
A: Varying for different materials.
Q: 3) Will you send out reminders regarding outstanding vendor confirmations if the due
date is exceeded? Acknowledgment deadline is exceeded?
A: No
Q: 4) Which kinds of purchasing document do you want to send to vendors? 1) The

complete purchasing document 2) Information re changes 3) Reminders (prior to due date
4) Urging letters/expediters (after due date) 5) Scheduling agreement delivery schedules.
Explanation: What kinds of purchasing document output (for example printouts, fax
messages, EDI) will you send to your vendors? 1) Complete purchasing document 2)
Change notice (When a purchasing document which has already been outputted and sent
to a vendor is changed, you can only output the changes instead of the entire document) 3)
Reminders (send before the due date) 4) Urging letters or "expeditors" (send after a due
date) 4) Urging letters or "expeditors" (send after a due date) If you use order confirmations
and/or shipping notifications: 5) Urging Letter for Outstanding Acknowledgement or
Shipping notification If you use scheduling agreements: 6) Rolling Delivery Schedule 7)
Urging Letter Related to Rolling Delivery schedules
A: 1. Purchasing documents
2. Amendments
3. Reminders before
4. Urging letters after due date
5. Delivery schedules
All documents are sent through letter / paper.
Q: 5) Will you send urging messages (expediters) to your vendors in the case of overdue
deliveries. If so, how many days after the due date will you do this?
A: Urging letters are sent after 2 days
Q: 6) How are reminders and urging letters (expediters) to be sent to your vendors?
A: [X] By post
[ ] By fax
[ ] By EDI
[ ] By e-mail
1.1.2.8. Processing of Shipping Notifications/Confirmations
Questions:
Q: 1) Will you process shipping notifications with the R/3 System?

A: Yes
Q: 2) Once you have issued a purchasing document to a vendor, do you want to track
"confirmations" your vendor may return to you regarding the order?
Explanation: Examples: 1) Order acknowledgements which confirm the order dates and
quantities. 2) Shipping notifications, informing you that the vendor has shipped the goods
(you can have goods receipts with reference to shipping notifications). 3) Any other - please
describe.
A: Yes.
1. Order acknowledgement
2. Shipping notifications
Q: 3) What do you do if the order acknowledgment contains quantity and/or delivery date
variances vis à vis the purchase order or a previous acknowledgment?
A: Yes.
Q: 4) Which type of vendor confirmation do you need and at which time intervals? Which
events should trigger a confirmation?
A: No
1.1.2.9. Transmission of Shipping Notifications
Questions:
Q: 1) Which department or person is to be informed of the shipping notifications?
A: Purchase department
1.1.3. Goods Receipt

1.1.3.1. Reservation Processing
Questions:
Q: 1) Will you maintain specific material reservations (for sales, for production) for your
stock materials?
A: Yes
Q: 2) How far in advance are materials to be allowed to be reserved?
A: 30 days in advance
Q: 3) In which cases would you want to use manual reservations?
A: Spares, office supplies
Q: 4) How long after the reservation date are open reservations canceled?

A: 30 days
1.1.3.2. Goods Receipt Processing
Questions:
Q: 1) The material stock balances shown in your legacy system are to be transferred to
the R/3 System. Will the stocks be valuated at the prices specified in the R/3 e total value
of the former system be taken over?
A: Total value and quantity will be transferred as per legacy system.
Q: 2) If you do not use the R/3 Purchasing functionality, describe the process of receiving
goods from a vendor.
A: Using R/3 purchasing system.
Q: 3) If you do not use production orders of the R/3 System, describe the process of
receiving goods from production.
A: Using production order of R/3 system.
Q: 4) Should the person who posts a goods receipt be able to use a different account
assignment than the one specified via the automatic account determination process?
A: No.
1.1.3.3. Goods Receipt Processing with Reference
Questions:
Q: 1) Describe the process for receiving goods with reference to a purchase order.
Explanation: General introduction to the subject General introduction to the subject
A: Goods are received are gate. Checked with stores person if goods are to be received.
Material is physically taken inside the plant. After unloading physical counting is done as
per invoice and then GR is done for physical quantity.
Q: 2) Name the storage locations to which vendors deliver the goods.
A: Raw materials storage, consumable stores, boughout stores, packing stores,

Maintenance stores.
Q: 3) How do you inform the Purchasing Department that goods have been received?
A: Purchase department is not informed formally.
Q: 4) Do you receive quantities less than the ordered quantity? If yes, is the purchase
order considered complete then or do you receive the missing quantities later?
A: Quantities are received in less quantity. Remaining qty is received at later.

Q: 5) Do you physically store the goods you have received into "stock in quality
inspection" at a different location than those posted to normal stock?
A: Yes
Q: 6) Do you allow every material to be stored at all storage locations? Please describe!
A: Material is stored specific in storage location only.
Q: 7) Do you use a unit of measure for the pricing of the goods other than the unit you
order in? If yes, you can define the variances in customizing.
A: No
Q: 8) Do the materials you receive have to be stored for a certain time before they can be
used or do they have an expiration date that you want to keep in the system?
A: Materials need not be stored for specific period in storage location. Materials have
expiration date.
Q: 9) Do you refuse to accept deliveries if the vendor has not complied with the shipping
instructions? (Can be used to evaluate vendors.)
A: Yes
Q: 10) Which documents are generated with the goods receipt?
Explanation: Note on design of SAPScript documents, message determination Note on

design of SAPScript documents, message determination
A: [X] Goods receipt slip

[ ] Bar code sticker
[ ] Other
[ ] None
Q: 11) Which documents are generated in connection with a goods receipt?

A: Only material receipt document is generated.
Q: 12) If a goods receipt quantity is assigned to a goods issue, do you want the person
who enters the goods receipt to receive a corresponding message?
A: Yes
Q: 13) Will you inspect the material/article at the time of goods receipt? If so, do you enter
the goods receipt and the inspection result or do you only enter the goods receipt after the
inspection has been carried out?
Explanation: QM module

A: Yes
Q: 14) If you are using batch management, how is the batch number determined at the
time of goods receipt?
Explanation: Batch management Batch management
A: Batch is not used .
Q: 15) Do you classify the batches at the time of goods receipt? Please specify the
criteria.
A: Batches are not classified.
Q: 16) Is the automatic account determination process defined by Financial Accounting? If

not, who is responsible within Logistics?
A: Automatic account determination process is defined in Financial Accounting.
Q: 17) Do you wish to print out the material document as evidence of a goods movement?
Which information should be included in the printout?
A: Yes. Format is enclosed in annexure.
1.1.3.4. Automatic Generation of Purchase Orders
Questions:

A: Auto PO generation while goods receipt is not allowed.
1.1.4. Service Entry Sheet

1.1.4.1. Service Entry Sheet
Questions:
Q: 1) Do you wish to process or document completion of the services performed by the

service provider?
1.2. Procurement via Subcontracting

1.2.1. Purchase Requisition
1.2.1.1. Purchase Requisition Processing
Questions:
Q: 1) How are purchase requisitions created in the case of stock material, material for
direct consumption, external services?

A: [X] Manually
[X] MRP
[ ] Sales order
[ ] Replenishment
[ ] Store order
[ ] Outside R/3
Q: 2) Will you use a purchase requisition to trigger creation of for a contract or scheduling
agreement (Outline Agreement Request)?
A: Yes, a contract or scheduling agreement is created with respect to purchase

requisition.
Q: 3) How many days does it take, typically, before a purchase requisition becomes
demand in a purchasing document given to a supplier? Please indicate processing time per
plant.
Explanation: This would be used by the system to calculate replenishment lead times.
Example : In plant A, within two days the purchasing department will convert a requisition
for widgets into a purchase order issued to a supplier. Please indicate processing times per
plant.
A: Minimum 1 day to 30 days. Specific time is required to indicate the creation of PR prior
to PO.
Q: 4) Will purchase requisitions generated via material/article requirements planning be

manually post-processed?
Explanation: Problematic if dynamic rounding profiles are used, because these only take
effect at the time of conversion into POs. You post-process the result, which is changed
again after the manual post-processing (via rounding profiles). (via rounding profiles).
A: Yes
1.2.1.2. Purchase Requisition Assignment
Questions:
Q: 1) On the basis of which criteria are purchase requisitions assigned to a source of

supply?
A: Purchase requisitions are assigned to a source of supply from list of approved sources.
(Source List)
Q: 2) On the basis of which criteria are purchase requisitions grouped together?
A: Purchase requisitions are grouped together as per Project.
Q: 3) What support (e.g. price simulation) does the buyer need in order to assign the
purchase requisition?
A: Price comparison or approved source list.

Q: 4) Are purchase requisitions converted into requests for quotations?
A: Yes
Q: 5) Which sources of supply will you use for purchase requisitions? Are these sources
of supply internal and/or external to your company?
A: Sources are external to our company (Vendors).
1.2.1.3. Release Purchase Requisition
Questions:
Q: 1) Should requisitions be subject to approval by someone (or possibly several people)

before the requisition can be processed into an RFQ and/or purchase order?
Explanation: Example: all requisitions for over $1000 must be approved by the purchasing
department manager, all requisitions for over $10000 must be approved by the department
manager and the chief financial officer. If yes, describe the approval process, and under
what circumstances the approval process applies - for stock material - for consumable
material - for external services
A: Release strategy is required for purchase requisition
Q: 2) Are the purchase requisitions subject to a release strategy? If so, which criteria
apply?
A: Yes, purchase requisition are subjected to release strategy based on
Value of item
Buyer code or document type
Q: 3) How is the person responsible for releasing the purchase requisition to be notified?
A: [ ] Via workflow
[ ] Other procedure
[X] Approver regularly checks R/3
[ ] By telephone
[ ] By e-mail
1.2.2. Purchasing
1.2.2.1. Purchase Order Processing
Questions:
Q: 1) How will purchase orders be created in your system?
A: [X] Manually
[X] From purchase requisitions (manual or automatic)
[ ] From store order
[ ] From replenishment
[ ] From allocation table
[ ] From load-building run
[ ] From SAP Retail Store
[X] For stock material
[X] For consumable material
[X] For external services
Q: 2) Do you want the system to check whether the purchase price is within a predefined
tolerance in your system, compared with the material valuation price?
A: Yes. Tolerance limit value in % and absolute term on both the side - lower and upper
side is required.
Q: 3) Describe how the source of supply is determined for manually created purchase
requisitions!
A: Source of supply is assigned manually
Q: 4) Specify the consumption categories for which you will procure external services and
material directly: Asset, cost center, production order, project, sales order, other (please
specify).
A: Cost center, asset, project
Q: 5) Which types of purchase order will you use?
A: [X] Standard
[ ] Consignment
[X] Subcontracting
[ ] Stock transfer
Q: 6) How do you transmit purchase orders to your vendors?
A: [ ] via mail
[X] via fax
[ ] By EDI
[X] Other
Q: 7) Do you order material in a unit of measure that differs from the one used for stock
keeping purposes?
A: Yes
Q: 8) Do you pay for material in a different unit of measure than the one that is shown in
the PO/and or used for stock put away?
A: No
Q: 9) Is it necessary to track certificates of origin and/or customs reference numbers for

materials produced in foreign countries?
A: No in case of subcontracting
Q: 10) Will you be purchasing material imported from foreign vendors ?
A: No

Q: 11) Are purchasing info records to be updated automatically with every purchase
order?
Explanation: If updating is desired and you use rounding profiles in the case of stock
transport orders, after the first purchase order created the logistic data on the article is no
longer read for the rounding profile. Instead the newly created purchasing info records are
read! profile. Instead the newly created purchasing info records are read!
A: Yes
Q: 12) Do you wish to analyze/evaluate purchase transactions according to the reasons

for ordering?
A: Yes
Q: 13) Do you plan and enter freight costs in the PO? If yes, describe the basis of the
costs. Also indicate if any types of costs can be determined automatically (for example,
freight costs per piece, per unit of weight, as a percentage of the value).
A: Freight costs are entered in PO.
Freight costs are

i. per unit basis
ii. per consignment basis.
iii. percentage basis
Q: 14) Do you want to prevent users from changing the account assignment of items in
purchasing documents for which they have no authorizations? If so, for which purchasing
documents?
A: [X] Purchase requisitions

[X] Purchase orders
[X] Contracts
[X] Scheduling agreements
Q: 15) Do you sometimes order stock material directly for a cost center or another
consumption category?
A: Yes
Q: 17) Do you allow overdeliveries? If so, specify the percentage variance for the
individual materials/material types.
A: Yes. percentage to be specified.
Q: 18) On the occasion that a vendor sent you less than the quantity ordered, would you
ever want this shortfall to be considered an under delivery, with no further deliveries
expected? Please list the values for each material/material group.
Explanation: In case of exceeding this value, it will be a partial delivery. In case the value
stayed below, it will be an under delivery
A: Underdelivery tolerance are used in raw materials.

Q: 19) Can the materials you purchase be subject to different tax types? (For example,
based upon the material purchased, based upon the plant for which the material is
purchased, etc)? o
A: Yes. depending on material, Supplier region and supplier name.
Q: 20) Do your POs issued to vendors contain specific transport or packing instructions?
Is vendors' compliance with the transport and packing instructions to be recorded when the
goods are received ?
Explanation: e.g., full compliance, ignored instructions, ...
A: Packing instructions are tracked while doing goods receipt.

A: Automatic PO generation should not be allowed.
1.2.2.2. Contract Release Order
Questions:
Q: 1) Will contract release orders be created in R/3 manually, with reference to purchase
requisitions, and/or automatically? (For more details, refer to the Source Administration
Scenario.) - for stock material - for consumable material - for external services
A: Contract release order are created with respect to purchase requisition
1.2.2.3. Release of Purchase Orders
Questions:

A: Yes.

release procedure
A: Always check through R/3 system

A: No
1.2.2.4. Transmission of Purchase Orders
Questions:
Q: 1) How do your vendors transmit shipping notifications?
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Q: 2) What information does the shipping notification contain?
A: Shipping notifications are not used in subcontracting process.
Q: 3) How are your RFQs and rejection letters to your vendors to be transmitted?
A: [ ] Internet
[X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Q: 4) How long after ordering and before the time of delivery should a shipping notification
have been received?
A: N/A

A: All POs are sent through paper only.
A: [ ] Internet
[ ] By telephone
[ ] By e-mail
[ ] By fax
[ ] By EDI

A: No
Q: 8) How are purchase orders to be transmitted?
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
1.2.2.5. Scheduling Agreement Delivery Schedule
Questions:
Q: 1) Are scheduling agreement delivery schedules/SA releases created in R/3 manually,

with reference to requisitions and/or automatically? (Further details in sourcing
administration scenario.)
A: Sometime schedules will created through MRP and sometimes schedules are created
manually.
Q: 2) How do you wish to synchronize (monitor) the delivery schedules/SA releases with
respect to the quantities delivered?
A: Schedule adherence is checked with delivery date and quantity variations
Internet release.
A: No
Questions:
A: [ ] Internet
[X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI


A: No
1.2.2.7. Delivery and Acknowledgment Expediter
Questions:
Q: 1) How many days after the due delivery date will you send messages to your vendors
urging delivery of the overdue goods?
A: After 2 days.
Q: 2) Should this deadline monitoring vary for different materials or articles? If so, please
explain.
A: Varying for different materials.
Q: 3) Will you send out reminders regarding outstanding vendor confirmations if the due
date is exceeded? Acknowledgment deadline is exceeded?
A: No
Q: 4) Which kinds of purchasing document do you want to send to vendors? 1) The

complete purchasing document 2) Information re changes 3) Reminders (prior to due date
4) Urging letters/expediters (after due date) 5) Scheduling agreement delivery schedules.
Explanation: What kinds of purchasing document output (for example printouts, fax
messages, EDI) will you send to your vendors? 1) Complete purchasing document 2)
Change notice (When a purchasing document which has already been outputted and sent
to a vendor is changed, you can only output the changes instead of the entire document) 3)
Reminders (send before the due date) 4) Urging letters or "expeditors" (send after a due
date) 4) Urging letters or "expeditors" (send after a due date) If you use order confirmations
and/or shipping notifications: 5) Urging Letter for Outstanding Acknowledgement or
Shipping notification If you use scheduling agreements: 6) Rolling Delivery Schedule 7)
Urging Letter Related to Rolling Delivery schedules
A: 1. Purchasing documents
2. Amendments
3. Reminders before
4. Urging letters after due date
5. Delivery schedules
All documents are sent through letter / paper.
Q: 5) Will you send urging messages (expediters) to your vendors in the case of overdue
deliveries. If so, how many days after the due date will you do this?
A: Urging letters are sent after 2 days
Q: 6) How are reminders and urging letters (expediters) to be sent to your vendors?
A: [X] By post
[ ] By fax
[ ] By EDI
[ ] By e-mail

1.2.2.8. Processing of Shipping Notifications/Confirmations
Questions:
Q: 1) Will you process shipping notifications with the R/3 System?
A: No
Q: 2) Once you have issued a purchasing document to a vendor, do you want to track
"confirmations" your vendor may return to you regarding the order?
Explanation: Examples: 1) Order acknowledgements which confirm the order dates and
quantities. 2) Shipping notifications, informing you that the vendor has shipped the goods
(you can have goods receipts with reference to shipping notifications). 3) Any other - please
describe.
A: No in case of subcontracting process.
Q: 3) What do you do if the order acknowledgment contains quantity and/or delivery date
variances vis à vis the purchase order or a previous acknowledgment?
A: No
Q: 4) Which type of vendor confirmation do you need and at which time intervals? Which
events should trigger a confirmation?
A: No
1.2.2.9. Transmission of Shipping Notifications
Questions:
Q: 1) Which department or person is to be informed of the shipping notifications?
A: Shipping notifications are not used in subcontracting process.
1.2.3. Provision of Components

1.2.3.1. Goods Issue Processing
Questions:
Q: 1) How do you record materials ordered for specific work orders?
A: Goods issue is done against vendor and proportionate material with respect to BOM is
sent to vendor under delivery note.
Q: 2) How will the consumption of these parts be entered and who will post the return in
the system?
A: Stores will post the receipt of final goods and stock at vendor place will be reduced
subsequently.
Q: 3) How do you record which materials were received specifically for a work order?

A: Goods receipt note is created for the materials received for a work order.
Q: 4) How much time elapses between the actual goods issue and its posting in the
system?
Explanation: Info on process steps.
A: On the same day, actual goods issue and posting in the system is done.
Q: 5) Is the posting made online or in batch mode?
Explanation: Steps in system
A: Posting is done online as excise documents needs to be prepared.
Q: 6) Are deliveries posted individually or for each group of goods issues?
A: Deliveries are posted individually in the system.
Q: 7) Which documents are generated in conjunction with this posting and what
information do they contain?
Explanation: 1-step goods issue in which the GR at the receiving site is posted
simultaneously to the GI at the DC. simultaneously to the GI at the DC.
A: Goods issue is done. Excise delivery challan is prepared for dispatching the materials.
Q: 8) Do you want to send the pallet identification information to your customer?
A: For returnable pallets, delivery challan contains the relevant information on the
pallets( i.e no. of pallets for each model )
1.2.3.2. Delivery Processing
Questions:
Q: 1) List all documents required to complete the delivery process (e.g. picking list,
packing list or bill of loading) and what information they contain.
Explanation: Note: For each document, collect sample printouts and decide which
information (data fields) the documents must contain.
A: The documents required are :

Issue Slip
Invoice
Delivery challan for returnable pallets & trolleys from TML Pune
Lorry Receipt given to TTR ( given by transporter )
Q: 2) If you have multiple plants, how do you determine what plant a product is delivered
from?
A: Single Plant.

Q: 3) How do you determine multiple shipping points?
Explanation: Note: In R/3, shipping point determination depends on the following objects: -
Plant - Shipping condition (goods recipient) and - Loading group (material master). Decide
which shipping point you want the system to offer as a default, or the alternative shipping
points you would like to overwrite the default with.
A: There is a single shipping point in TTR.
Q: 4) Do you redetermine routes at the time of delivery?
Explanation: Note: The route with transit time and transit lead time is used for delivery
scheduling, for example. In the delivery, an alternative route for the sales order or
scheduling agreement can be selected depending on different weight groups.
A: Physically routes are redetermined in case of emergency or unavailability of a route.

This is decided by the transporter.
Q: 6) Do you have a standard lead time in days for the customer’s requested delivery
date?
A: Yes.
Q: 7) If you use batches, when do you determine them?
A: No batch are determined in subcontracting process.
Q: 8) How do you determine serial numbers in deliveries, if used?
Explanation: Note: Serial numbers can be assigned at various points such as at the goods
receipt posting (from the production line) or later when the delivery is created.
A: No serial numbers in deliveries
Q: 9) Do you add additional prices at the delivery time (for example, packing or postage
costs)?
Explanation: Note: It is possible to invoice logistics costs depending on objects in the

delivery note, such as shipping conditions, packaging, or route. These price elements are
then copied into the invoice. Decide whether and how these logistics costs are determined
automatically.
A: No.
Q: 10) How do you create deliveries?
A: [X] Online
[ ] Background processing
[ ] Display both

Q: 11) Do you ever group deliveries together for different reason (e.g. freight lists, loading
list, collective picking)?
A: Physical deliveries are grouped together for the same customer and location.
Q: 12) Do you use labels with bar codes? How?
Explanation: Note: With multilevel packing, you can print out labels for different packaging
levels. Examples of packaging levels are boxes, wire baskets, and pallets. Decide on the
information and format for the labels. Note the special printer requirements.
A: No labels with bar codes are used.
Q: 13) Do you allow items that weren't in the sales order to be added to a delivery?
Q: 14) What types of text do you require in your delivery documents, and are they
required on output?
Explanation: Note: Decide how each text type will be filled. For example, a text can be
copied from the customer master, material master, preceding document, or standard text. In
addition, INCLUDE commands must be added to delivery note forms for all text types that
you want to print.
A: Shipping Instruction to be added at the time of delivery creation as text.

eg. for Express delivery , normal delivery, superfast delivery ( matching train transit time ).
Accordingly the freight cost should be captured in the delivery document.
Q: 15) What information do you consider necessary for a delivery and would like to
appear on an incompletion log if missing?
Explanation: Control Incompletion check
A: [X] Address
[X] Incoterms
[X] Terms of payment
[X] Material
[X] Order quantity
[X] Net price
[X] Plant
[X] Shipping point
[X] Pricing date
[X] Others
Q: 16) Do your customers accept partial deliveries in case of lack of availability and what
are the rules for creating them?
A: Yes.
Q: 18) Do you check the available stock of an item in the delivery?

Explanation: Note: When you check the availability, you should also decide what your ATP
quantity should be. For example, should it only include the physical stock quantity, or
should it also include goods receipts, production orders, and purchase orders?
Q: 19) Do you track Over Delivery or Under Delivery tolerance percentages for your
customers?
A: No for subcontracting process.
Q: 20) What should happen if the delivery quantity differs from the order quantity?
A: [X] Nothing
[ ] Warning
[ ] Error message
[ ] Various
Q: 21) What are the reasons you would ever block a sales document from delivery?
A: N/A
1.2.4. Goods Receipt

1.2.4.1. Goods Receipt Processing with Reference
Questions:
Q: 1) Describe the process for receiving goods with reference to a purchase order.
Explanation: General introduction to the subject General introduction to the subject
A: Goods are received are gate. Checked with stores person if goods are to be received.
Material is physically taken inside the plant. After unloading physical counting is done as
per invoice and then GR is done for physical quantity.
Q: 2) Name the storage locations to which vendors deliver the goods.
A: Raw materials storage, consumable stores, boughout stores, packing stores,

Maintenance stores.
Q: 3) How do you inform the Purchasing Department that goods have been received?
A: Purchase department is not informed formally.
Q: 4) Do you receive quantities less than the ordered quantity? If yes, is the purchase
order considered complete then or do you receive the missing quantities later?
A: Quantities are received in less quantity. Remaining qty is received at later.
Q: 5) Do you physically store the goods you have received into "stock in quality
inspection" at a different location than those posted to normal stock?
A: Yes
Q: 6) Do you allow every material to be stored at all storage locations? Please describe!
A: Material is stored specific in storage location only.
Q: 7) Do you use a unit of measure for the pricing of the goods other than the unit you
order in? If yes, you can define the variances in customizing.
A: No
Q: 8) Do the materials you receive have to be stored for a certain time before they can be
used or do they have an expiration date that you want to keep in the system?
A: No expiration check for subcontracting process.
Q: 9) Do you refuse to accept deliveries if the vendor has not complied with the shipping
instructions? (Can be used to evaluate vendors.)
A: Yes
Q: 10) Which documents are generated with the goods receipt?

A: [X] Goods receipt slip

[ ] Bar code sticker
[ ] Other
[ ] None
Q: 11) Which documents are generated in connection with a goods receipt?

A: Only material receipt document is generated.
Q: 12) If a goods receipt quantity is assigned to a goods issue, do you want the person
who enters the goods receipt to receive a corresponding message?
A: Yes
Q: 13) Will you inspect the material/article at the time of goods receipt? If so, do you enter
the goods receipt and the inspection result or do you only enter the goods receipt after the
inspection has been carried out?
Explanation: QM module
A: Yes

Q: 14) If you are using batch management, how is the batch number determined at the
time of goods receipt?
Explanation: Batch management Batch management
A: No batch management for subcontracting receipts.
Q: 15) Do you classify the batches at the time of goods receipt? Please specify the
criteria.
A: No for subcontracting process.

A: Automatic account determination process is defined in Financial Accounting.
Q: 17) Do you wish to print out the material document as evidence of a goods movement?
Which information should be included in the printout?
1.2.4.2. Subsequent Adjustment of Components
Questions:
Q: 1) How do you make adjustments for over-/under consumption of components by the

subcontractor (vendor)?
A: By the specified period, subsequent adjustments are made by posting goods issue or
receipt.
1.3. Source Administration

1.3.1. RFQ/Quotation
1.3.1.1. Processing of Requests for Quotations
Questions:
Q: 1) Do you generally request several vendors to submit prices, terms and conditions in
the form of a tender/bid/quotation?
A: Yes
Q: 2) Do you want to assign a collective number to the different quotations submitted by

several vendors?
Explanation: Use of collective number. Use of collective number.
A: Yes
Q: 3) Can an article be procured from several vendors? If so, is this the rule or an
exception? (Or specify percentage.)
A: No
Q: 4) Do you carry out requirements planning for structured articles (e.g. prepack,
display)?
A: No
1.3.1.2. Release of RFQs
Questions:

A: Release strategy is not required for RFQ.
1.3.1.3. Transmission of RFQs
Questions:
A: [ ] Internet
[ ] By telephone
[ ] By e-mail
[ ] By fax
[ ] By EDI
Q: 2) Will you send rejection letters to unsuccessful bidders? Indicate how such letters
are to be transmitted to the vendor.
A: [ ] By post (in written form)

[ ] By fax
[ ] By EDI
[ ] By e-mail
[ ] Other (please specify)
Rejection letters to unsuccessful bidders are not sent.
1.3.1.4. Vendor Quotation Processing
Questions:
Q: 1) Do you wish to have the system automatically analyze/evaluate quotations

submitted by vendors?
A: Yes
Q: 2) How do you receive the quotations?

A: [ ] Other, please describe
[ ] By telephone
[ ] By e-mail
[ ] By fax
[ ] By EDI
Q: 3) Are the quotations submitted by vendors to be automatically compared by the

system?
Explanation: Use of price comparison list! Use of price comparison list!
A: Yes
1.3.2. Outline Purchase Agreements

1.3.2.1. Contract Processing
Questions:
Q: 1) Will you use contracts in R/3? If so, what will you use contracts for (e.g. stock
materials, consumable materials, external services)?
A: Contracts are used for external services.
Q: 2) Which types of contract do you need (e.g. value contracts, quantity contracts)?
A: Both type of contracts.
Q: 3) Are the contracts to be valid for: - more than one plant - more than one company
code?
A: Single plant
Q: 4) Do you also allow a consumption account in the case of contracts for stock
materials?
A: No
1.3.2.2. Scheduling Agreement Processing
Questions:
Q: 1) Will you use scheduling agreements to procure materials from external suppliers or
supplying plants? If so, which types of scheduling agreement will you use? Should these
scheduling agreements be maintained centrally?
Explanation: Will you maintain scheduling agreements in SAP with either an external
vendor or a plant supplying the materials? If yes, - what type of scheduling agreements are
you maintaining? (for example, standard, subcontracting, consignment, stock transfer. - will
any of these scheduling agreements reference a centrally maintained contract?
A: SA are to be used. SA are raised on external vendors. Standard and subcontracting

type of SA are used.

Q: 2) Do you want to reconcile the quantity requested and the quantity actually delivered
with your vendor (monitoring function)? If so, how are the lines of the scheduling agreement
delivery schedule generated: manually or via materials planning (MRP)? M
A: Would like to monitor quantity. Delivery schedule is created manually as well as

through MRP.
Internet release.
A: No
Q: 5) Do you sometimes assign a consumption category to scheduling agreements for

stock materials?
A: No
1.3.2.3. Release of Outline Agreements
Questions:

A: Yes

release procedure
A: Checked regularly through SAP R/3
A: No
1.3.2.4. Transmission of Contracts
Questions:


A: No
A: [ ] Internet
[ ] By telephone
[ ] By e-mail
[ ] By fax
[ ] By EDI
A: No
Q: 4) How will you transmit your contract release orders?
Explanation: Background: Setting up of message determination. E.g. notification by fax,

EDI, ... fax, EDI, ...
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Q: 5) How do you wish to transmit your contracts to your vendors?
Explanation: Background: Setting up the message determination process.
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Questions:
A: [ ] Internet
[X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI

A: No
1.4. Return Deliveries

1.4.1. Shipping
1.4.1.1. Message Transmission for Deliveries
Questions:
Q: 1) What information do these documents contain?
Explanation: Note: Collect sample printouts for billing documents, credit memos and debit
memos, and decide which information (data fields) these documents should contain.
A: Format copy is enclosed in annexure.
Q: 2) How are deliveries to be transmitted?
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Q: 3) How are shipping documents to be transmitted?
A: [X] Paper
[ ] Telephone
[ ] Fax
[ ] E-mail
[ ] EDI
Questions:
system?
A: Immediate
A: Online

A: Deliveries are posted for each group of goods issue.
A: 1. Delivery challan cum invoice.

2. Quality report for rejection.
format is enclosed.
Q: 5) Do you want to send the pallet identification information to your customer?
A: For returnable pallets, delivery challan contains the relevant information on the
pallets( i.e no. of pallets for each model )
2. Inventory Management, Warehouse Management

and Transportation
Questions:
Q: 1) Who owns the inventory? To whom are the costs of managing the inventory
allocated?
A: Stores Department
Q: 2) At which level do you valuate material (for example, company level, plant level)?
A: Plant Level
Q: 3) Where do you want to be able to analyze the inventory balance sheet?
A: Plant Level
Q: 4) How does material move between plants?
A: Single Plant
Q: 5) Do you use pallet identification for production supply?
A: Yes
Q: 6) Do you use picking and packaging functions with scanners (radio frequency)?
A: No

Q: 7) Do you prepare raw materials for a production order on a scale and do you have to
ensure that exactly this material combination is used in the order?
A: Same material as per BOM is used.
CI template:
- Stock should be tracked where GR is not made.

- Reconciliation of subcontractor’s stock should be done.
- Conversion of unit from weight to numbers should be provided.
- Quality stock should not be considered as available for MRP purpose.
2. General Explanations
- Classify A, B, C, D categorization of items.
5. Special Organizational Considerations
- Managing customer free supplies. Ex- Honda - Fan & Motors Assembly, Customer
special packing.
- Security person has to enter the material received at the gate. This stock will be
blocked stock and can be used only after confirmed GR by stores and quality
clearance.
2.1. Goods Movements

2.1.1. Reservation
2.1.1.1. Reservation Processing
Questions:
Q: 1) Will you maintain specific material reservations (for sales, for production) for your
stock materials?
A: Yes
Q: 2) How far in advance are materials to be allowed to be reserved?
A: 30 days
Q: 3) In which cases would you want to use manual reservations?
A: Spares and office supplies.
Q: 4) How long after the reservation date are open reservations canceled?
A: 30 days
2.1.2. Goods Accepted

2.1.2.1. Return Delivery
Questions:
Q: 1) Will you be required to retain costs for material that is inspected as a result of a
stock purge?
A: Yes
Q: 2) Will you create action plans/tasks for this defective material?
A: Yes
Q: 3) Do you enter data (for example, defects, characteristic results, specific findings) on
the defective material found in the stockroom or on the shop floor?
A: Yes
Q: 4) Do you have to inspect/re-inspect defective material found in your stockroom or on

the production floor?
A: Yes
Q: 5) Which documentation should accompany the goods that are returned to the vendor?
A: Delivery challan cum invoice

Inspection report
Q: 6) Describe the handling of inspection lots where the usage decision has determined
that they are to be rejected and returned to the vendor.
A: Stored in vendor rejection area
2.1.2.2. Goods Receipt Processing
Questions:
Q: 1) The material stock balances shown in your legacy system are to be transferred to
the R/3 System. Will the stocks be valuated at the prices specified in the R/3 e total value
of the former system be taken over?
A: Total value and stock qty are to transferred to SAP R/3 system from legacy system.
Q: 2) If you do not use the R/3 Purchasing functionality, describe the process of receiving
goods from a vendor.
A: Purchasing functionality is used.
Q: 3) If you do not use production orders of the R/3 System, describe the process of
receiving goods from production.
A: Production order is used.
Q: 4) Should the person who posts a goods receipt be able to use a different account
assignment than the one specified via the automatic account determination process?

A: No

A: Automatic account determination process is defined by Financial Accounting
2.1.3. Goods Issue

Questions:
system?
A: Immediate
A: Online
A: Deliveries are posted for each group of goods issue.
A: No document is generated for production material goods issue.
2.2. Physical Inventory & Cycle Counting

2.2.1. Physical Inventory
2.2.1.1. Determination of Scope for Periodic and Continuous
Inventory
Questions:
Q: 1) Do you block the relevant stock during the physical inventory count?
Explanation: Setting of flag when creating physical inventory Setting of flag when creating
physical inventory
A: No

Q: 2) Do you conduct a physical inventory for:
A: [ ] Other
[X] Unrestricted-use material
[X] Stock in quality inspection
[X] Blocked stock
[ ] Consignment stock at customer
[ ] Vendor consignment stock
[X] Vendors' returnable packaging
[ ] Empties
Q: 3) Which types of physical inventory do you wish to use to count the materials in your
warehouses/stores?
Explanation: Linkage via ALE may be necessary Linkage via ALE may be necessary
A: [X] Annual (periodic) inventory

[ ] Continuous inventory
[ ] Cycle counting inventory
[ ] Sample-based inventory
2.2.1.2. Definition of Scope of Periodic Inventory
Questions:
Q: 1) Which types of physical inventory do you wish to use to count the materials in your
warehouses/stores?
Explanation: Linkage via ALE may be necessary Linkage via ALE may be necessary
A: [X] Annual (periodic) inventory

[ ] Continuous inventory
[ ] Cycle counting inventory
[ ] Sample-based inventory
2.2.1.3. Printout of Physical Inventory Document
Questions:
Q: 1) How are physical inventory documents to be printed out?
A: PID are printed on storage locationwise. Format is enclosed.
Q: 2) Are bar codes to be printed out on the physical inventory document?
A: No
2.2.1.4. Inventory Count
Questions:
Q: 1) How do you carry out the physical inventory count (e.g. manually, using bar code
scanners)?
A: Manually

2.2.1.5. Physical Inventory Analysis
Questions:
Q: 1) Are physical inventory differences aggregated at material group level?
A: No
Q: 2) Do you allow physical inventory tolerances? Specify these tolerances.
A: No tolerances
2.2.1.6. Post Inventory Differences
Questions:
Q: 1) Who is responsible for posting physical inventory differences? Specify the persons
responsible and the maximum differences allowed.
A: Stores Department is responsible for posting the differences after approving from CEO.

4.2 Business Process Master List
Level 1 Level 2 Level 3 Level 4 Level 5
General
Settings
Units of
Measurement
Master Data
General Master
Records
Material Master
Service Master
Vendor Master
Record
Procurement
Buyer
Purchasing Info
Record
Conditions
Source List
Quota
Arrangement
Service Condition
Message
Conditions
Release Strategy
with Classification
Vendor Evaluation
Business
Processes
Procurement
Procurement of
Materials and
External Services
Purchase
Requisition
Purchase Requisition Processing
Purchase Requisition Assignment
Release Purchase Requisition
Purchasing
Purchase Order Processing
Contract Release Order
Release of Purchase Orders
Transmission of Purchase Orders
Scheduling Agreement Delivery
Schedule
Transmission of Scheduling
Agreements
Delivery and Acknowledgment
Expediter

Processing of Shipping
Notifications/Confirmations
Transmission of Shipping
Notifications
Goods Receipt
Reservation Processing
Goods Receipt Processing
Goods Receipt Processing with
Reference
Automatic Generation of Purchase
Orders
Service Entry Sheet

Service Entry Sheet
Procurement via
Subcontracting
Purchase
Requisition
Purchase Requisition Processing
Purchase Requisition Assignment
Release Purchase Requisition
Purchasing
Purchase Order Processing
Contract Release Order
Release of Purchase Orders
Transmission of Purchase Orders
Scheduling Agreement Delivery
Schedule
Agreements
Delivery and Acknowledgment
Expediter
Processing of Shipping
Notifications/Confirmations
Transmission of Shipping
Notifications
Provision of
Components
Goods Issue Processing
Delivery Processing
Goods Receipt
Goods Receipt Processing with
Reference
Subsequent Adjustment of
Components
Source
Administration
RFQ/Quotation

Processing of Requests for

Quotations
Release of RFQs
Transmission of RFQs
Vendor Quotation Processing
Outline Purchase
Agreements
Contract Processing
Scheduling Agreement Processing
Release of Outline Agreements
Transmission of Contracts
Agreements
Return Deliveries
Shipping
Message Transmission for
Deliveries
Inventory
Management,
Warehouse
Management
and
Transportation
Goods Movements
Reservation
Reservation Processing
Goods Accepted
Return Delivery
Goods Receipt Processing
Goods Issue
Physical Inventory
& Cycle Counting
Physical Inventory
Determination of Scope for
Periodic and Continuous Inventory
Definition of Scope of Periodic
Inventory
Printout of Physical Inventory
Document
Inventory Count
Physical Inventory Analysis
Recount
Post Inventory Differences
5.1 Material Management Organisation Structure

1000
Company Code TTRL
1000
Purchasing Organization TTRL
Plants 1000 9000

Pune Port, Mumbai
Storage Locations
BC01 – Boughtout Items BS01 – Bonded Store

CM01 – Consumables
CP01 – Capital Materials
CR01 – Customer returns
EN01 – Engg Stores
FG01 – Finished Stores
PK01 – Packing material
QM01 – Quality Stores
RJ01 – Rejected Material
RM01 – Raw Material
RT01 – Returnable Material
SC01 – Scrap Yard
SF01 – Semi finished Stores
SP01 – Mtn Spares Stores
TM01 – Temp Stores
WIP1 – WIP Stores
Purchasing Groups
VD1/2 – Vendor Development

IM1/2 – Import Buyer
AD1/2 – Admin Buyer
DM1/2/3 – Domestic Buyer
5.2 Description of Organization Structure

Company Code –
One company code as one legal entity.
Tata Toyo Radiator Ltd 1000
Plant –
Two plants are defined; one for TTR, Hinjewadi, manufacturing plant and another for Mumbai Port; as
stocks at port are also valuated and stock in transit between these plants and material shipped from
import country needs to be tracked.
Hinjewadi, Pune 1000

Port, Mumbai 9000
Purchasing Organization –
One purchasing organization is defined. For stock transfer from Mumbai port to Hinjewadi, same
purchasing organization is used.
Tata Toyo Radiator Ltd 1000
Storage Locations under Hinjewadi plant (1000) –

Various storage locations are needed for specific purpose as shown below.
Bought Out Components BC01

Consumables CM01
Capital Material Stores CM01
Customer returns CR01
Engineering Stores EN01
Finished Stores FG01
Packing Material PK01
Quality Stores QM01
Rejected Material RJ01
Raw Material Stores RM01
Returnable Material RT01
Scrap Yard SC01
Semi finished Stores SF01
Maintenance Spares Stores SP01
Temporary Stores TM01
WIP Stores WIP1
Storage Locations under Mumbai Port Plant (9000) –

Only one storage location is maintained in this plant.
Bonded Stores BS01
Purchasing Groups –
This reflect the name of buyer (purchaser) as per the department. Following buyer codes are defined.
Vendor Development VD1 / 2 / 3

Import Buyer IM1 / 2
Admin Buyer AD1 / 2
Domestic Buyer DM1 / 2 / 3
6. TO - BE PROCESSES / SCENARIOS
Following is the list showing to-be processes/scenarios in Purchasing and Stores
functions.
1. Purchasing
a. PUR/001: Imported material procurement

b. PUR002: Stock transfer using STO
c. PUR/003: Procurement via scheduling agreement
d. PUR/004: Stock material procurement via purchase order
e. PUR/005: Non-Stock material procurement via purchase order
f. PUR/006: Subcontracting process without duty paid
g. PUR/007: Subcontracting process with duty paid
h. PUR/008: Service procurement
i. PUR/009: Free supply material procurement
j. PUR/010: Retrospective price amendments
k. PUR/011: Deosons Procurement Process
2. Stores
a. IMM/001: Goods issue against Reservation, Project, Network, Asset,

Production order
b. IMM/002: Goods issue against cost center
c. IMM/003: Physical inventory process
d. IMM/004: Returnable trolley management
e. IMM/005: Return delivery (rejection) to vendor

HIGH LEVEL CONCEPTUAL SOLUTION – MM MODULE
Excise Document Condition (Pricing
Material Vendor Source List Quota Master Master ,Output ) Data
Arrangement Legend
master master
Master Data
Buss. Scenarios
SAP Process
Inputs
Output Documents
PUR/001. Import PUR/002. PUR/003. PUR004/005. IMM/005. PUR006/007. IMM/004. IMM/001/002. PUR/010. PUR/008. PUR/009. IMM/003.
procurement STO from Procurement PO Vendor returns Subcontracting Returnable Good issue Retrospecti Service GR for Free Physical
Mumbai to via Processing Process (With Duty trolley ve Price procurement Supplies Inventory
Hinjewadi Scheduling (Stock / Non- paid or Without Duty Management Processing Process
agreement stock) paid)
Quality /
Inventory Reservati
Manual / on
Purchase Stock transport Scheduling Purchase Return Material Subcontracting Transfer posting of Service order PO for free Create physical
MRP MRP New purchase Order &
requisition order Agreement requisition document Order Trolley to vendor Goods issue for Supplies inventory document
Amend Old PO
Cost center/
Asset/
Project/ Vendor
MRP Network/ Agreement for
Goods issue RFQ Reservation/ price change
Purchase Schedules Excise Invoice Goods receipt Report to calculate Service Entry GR for PO Enter count
for STO Transfer posting for Production
orders for trolley credit/debit due to sheet
goods issue order/
Vendor
Shipping
notification Excise Invoice
Inbound delivery Goods receipt at Goods Receipt Price comparison Credit memo Excise Invoice Acceptance Service Compare
Hinjewadi for STO Entry sheet differences
Credit / invoice
Note to Vendor
Excise Invoice for

consumption Post differences
Goods Receipt Invoice verification for Excise Invoice PO Creation Goods Receipt Invoice verification for
Freight service entry sheet
Auto posting in
inventory
Invoice verification for Excise Invoice Invoice Verification Post excise

Goods Receipt Reconciliation /
Import vendor
Excise Invoice
Invoice verification for Excise Invoice

delivery costs Invoice
verification
Invoice Verification
Purchase GR Scheduling RFQ Return Purchase Issue Issue PO Service Excise Physical
orders Document Agreement Purchase Order Document Order Document Document Amendment Order Invoice Inventory
Schedules Reminder Letter Excise Issue Excise Credit/Debit Entry document
Reminder Letter GR Document Invoice Document Invoice Note Sheet Difference
GR Document Excise Invoice document
GR Document Excise Invoice

Business Process Story Board
PROCESS ID: TTRL/MM/PUR/001 Remarks
PROCESS NAME Import Material Procurement
AS-IS PART Import purchasing is done at

Hinjewadi plant
SAP R/3
SHORTFALL / GAP
SOLUTION Purchase requisition and
Purchase order
STANDARD SAP Purchase requisition is created
manually or via MRP
Manual PR is released. As per release strategy
predefined.
Import purchase order is created Pricing conditions are
with reference to purchase entered in import PO along
requisition. with duty and other
charges. Shipping
notification requirement is
entered at item level.
Payment terms and delivery
terms are entered. PO is
printed and sent to vendor.
If advance payment is required to
vendor, then either invoice
verification is done or payment is
done through down payment
request.
Inbound delivery is created with Material dispatched and qty
reference to PO after getting the is entered.
intimation from vendor for
shipment of the material.
Goods receipt is done against Quality is not activated for
inbound delivery after receipt of this plant.
the material in bonded store at
port.
Invoice verification for vendor is
done for payment.
Invoice verification for duty and Proportionate qty is entered
other charges is done as per while doing invoice
required qty, whenever material is verification, which is to be
required to be shipped from removed from bonded
Mumbai to Pune store.
SAP WITH Enhancement in LC and insurance
ENHANCEMENT policy tracking
DEVELOPMENT Layout for purchase order, urging /
reminder letters.
CHANGE
MANAGEMENT
IMPACT
TRYOUT
DECISION
PROCESS OUTPUT Material stock at Bonded store in
(SAP) Port plant

PROCESS NAME Stock Transfer using STO
AS-IS PART
SAP R/3
SHORTFALL / GAP
SOLUTION Stock Transport scheduling
Agreement
STANDARD SAP STO scheduling agreement Planned freight cost is entered
created for the material to be in scheduling agreement.
shipped from Mumbai to Pune.
Delivery schedule in scheduling
agreement in updated either
manually or via MRP.
Qty to be moved is entered as Import PO number is entered
goods issue to STO manually. in text.
GR is done at Pune plant Import PO number is entered
against STO after recording in Text field. GR is printed
gate entry number at Gate. along with GR Tag if required.
Transporters code is entered
while doing GR. Material goes
to Quality.
Excise invoice capturing is
done against GR for CVD.
Invoice verification is done for
transporters payment.
SAP WITH
ENHANCEMENT
DEVELOPMENT Goods Receipt, GR tag
CHANGE
MANAGEMENT
IMPACT
TRYOUT
DECISION
PROCESS OUTPUT Material stock at Pune plant
(SAP)

PROCESS NAME Procurement via scheduling
agreement
AS-IS PART BOF Purchase

SAP R/3
SHORTFALL / GAP
SOLUTION Scheduling Agreement
STANDARD SAP Scheduling agreement is created Pricing conditions,
for material and vendor. payment terms, delivery
terms, tax code is entered
in agreement. Scheduling
agreement can be printed
and sent to vendor.
Source list is updated for automatic If schedules are to be
schedule creation via MRP created via MRP, then this
has to be done.
Schedules are created Manual or Delivery schedules can be
MRP. printed and then sent to
vendor.
GR is done against scheduling GR document is printed
agreement after manual gate entry. along with GR tag.
Transporters code is entered while
doing GR. Material goes to quality if
required.
RG23 Part II is updated.
Excise invoice is created for GR This has to be done prior
document and cenvat is taken. to invoice verification.
done after quality clearance
Invoice verification for transporters
is done.
SAP WITH
ENHANCEMENT
DEVELOPMENT Layout for scheduling agreement,
delivery schedules, urging/reminder
letters, Goods Receipt, GR Tag
CHANGE
MANAGEMENT
IMPACT
TRYOUT
DECISION
PROCESS OUTPUT Material stock is at Pune plant as
(SAP) per schedule.

PROCESS NAME Stock Material procurement via
purchase order
AS-IS PART BOF purchase

SAP R/3
SHORTFALL / GAP Request for Approval
generation, Detailed price
break-up for quotation
comparison
SOLUTION Purchase requisition, request
for quotation, purchase order
via MRP. Plant maintenance
module or manual
Manual purchase requisition is As per release strategy pre-
released. defined.
Request for quotations are Vendor is entered while
created for purchase requisition creating RFQ. RFQ is printed
and quotation comparison is and sent to vendor. Quotations
done after entering quotations are received from vendor and
received from vendor. are entered in SAP for price
comparison.
Purchase order is created with Approved pricing conditions
reference to approved RFQ. are entered in purchase order.
Payment terms, delivery terms
and tax code is entered in PO.
GR is done against scheduling GR document is printed along
agreement after manual gate with GR Tag.
entry. Transporters code is
entered while doing GR.
Material goes to quality if
required.
Excise invoice is created for GR RG23 Part II is updated.
document and cenvat is taken.
Invoice verification for
transporters is done.
SAP WITH Request for Approval
ENHANCEMENT generation, Detailed price
break-up for quotation
comparison
DEVELOPMENT Layout for purchase order,
RFQ, urging/reminder letters,
Goods Receipt, GR Tag
CHANGE
MANAGEMENT
IMPACT
TRYOUT
DECISION
PROCESS OUTPUT Material stock at Pune plant
(SAP)

PROCESS NAME Non-Stock Material
procurement via purchase order
AS-IS PART Non-stock purchasing

SAP R/3
SHORTFALL / GAP
SOLUTION Account assignment purchase
requisition and account
assignment purchase order
via MRP/Plant Maintenance
module or manual
released. defined.
Request for quotations are Vendor is entered while
created for purchase requisition creating RFQ. RFQ is printed
and quotation comparison is and sent to vendor. Quotations
done after entering quotations are received from vendor and
received from vendor. are entered in SAP for price
comparison.
Purchase order with account Approved pricing conditions
assignment is created with are entered in purchase order.
reference to approved RFQ, Payment terms, delivery terms
User needs to give correct and tax code is entered in PO.
account assignment code and
relevant account number.
agreement after manual gate with GR Tag.
entered while doing GR.
done. Relevant accounts are
updated.
SAP WITH
ENHANCEMENT
DEVELOPMENT Layout for purchase order,
Goods Receipt, GR Tag
CHANGE
MANAGEMENT
IMPACT
TRYOUT Testing Completed
DECISION
PROCESS OUTPUT Cost is debited to respective
(SAP) account

PROCESS NAME Subcontracting process without
duty paid
AS-IS PART Subcontracting process

SAP R/3
SHORTFALL / GAP
SOLUTION Subcontracting scheduling
agreement
STANDARD SAP Purchase Order / Scheduling Pricing conditions, payment
agreement is created for terms, delivery terms, tax code
material and vendor and is entered in PO. PO can be
material to be sent out is printed and sent to vendor
entered.
Schedules are created via MRP Delivery schedules are printed
or can be entered manually and and sent to vendor.
transmitted to vendor for
scheduling agreement
Goods issue is done for vendor Transfer posting of stock is done
against subcontracting to vendor.
purchase order.
Subcontracting excise invoice is Excise invoice is printed and
created with respect to goods sent to vendor along with
issue document. material.
agreement/purchase order after with GR Tag. Respective stock
manual gate entry. Transporters at vendor's place is reduced.
code is entered while doing GR.
Material goes to quality if
required.
Subcontracting Excise invoice
is linked while doing GR
document or else later on can
be linked.
transporters is done.
Subcontracting challan is Report is available
reconciled
completed
SAP WITH
ENHANCEMENT
DEVELOPMENT Layout for subcontracting
purchase order, delivery
schedules, Goods Receipt, GR
Tag, 57F4 Challan
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Material stock is at Pune plant
(SAP)

PROCESS NAME Subcontracting process with duty
paid
AS-IS PART Subcontracting process

SAP R/3
SHORTFALL / GAP
SOLUTION
STANDARD SAP Purchase Order / Scheduling Pricing conditions, payment
agreement is created for material terms, delivery terms, tax
and vendor and material to be sent code is entered in PO. PO
out is entered. can be printed and sent to
vendor
Schedules are created via MRP or Delivery schedules are
can be entered manually and printed and sent to vendor.
transmitted to vendor for
scheduling agreement
Goods issue is done for vendor Transfer posting of stock is
against subcontracting purchase done to vendor.
order.
Duty paid excise invoice is created Excise invoice is printed
with respect to goods issue and sent to vendor along
document. with material.
agreement/purchase order after along with GR Tag.
manual gate entry. Transporters Respective stock at
code is entered while doing GR. vendor's place is reduced.
Material goes to quality if required.
document and cenvat credit is
taken.
Invoice verification for transporters
is done.
SAP WITH
ENHANCEMENT
DEVELOPMENT Layout for subcontracting purchase
order, delivery schedules, Goods
Receipt, GR Tag, Excise Challan
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Material stock is at Pune plant
(SAP)

PROCESS NAME Service Procurement
AS-IS PART Service procurement Process

SAP R/3
SHORTFALL / GAP
SOLUTION Purchase order with item
category D-Service
via plant maintenance or
Manual
released. defined.
Service purchase order is Pricing conditions, payment
created with respect to terms, delivery terms, tax code
purchase requisition. is entered. Value limit also can
be entered for service.
Service entry sheet is created Service entry sheet is created
with reference to service order for planned services in PO or
for % of service completed. unplanned. Service entry
sheet is printed and sent for
approval.
Service entry sheet is accepted Approved service entry sheet
and accounting entries are is accepted.
done.
Invoice verification is done with
reference to service entry sheet
SAP WITH
ENHANCEMENT
DEVELOPMENT Layout for service purchase
order, service entry sheet.
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Service is performed and
(SAP) respective account is debited.

PROCESS NAME Free Supply Material
Procurement
AS-IS PART
SAP R/3
SHORTFALL / GAP
SOLUTION Purchase order with Free supply
indicator
STANDARD SAP Purchase order/scheduling Assessable value if excise
agreement is created with Free invoice is to be created has
supply indicator to be entered.
agreement after manual gate along with GR Tag.
entered while doing GR. Material
goes to quality if required.
transporters is done if required.
SAP WITH
ENHANCEMENT
DEVELOPMENT Goods Receipt, GR Tag
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Stock of free supply at Pune
(SAP) plant.

PROCESS NAME Retrospective Price
amendments
AS-IS PART
SAP R/3
SHORTFALL / GAP
SOLUTION Info record and purchase
order change
STANDARD SAP change the info record
effectivity date. Amend PO or
scheduling Agreement with
effectivity date in text.
Print the Po change document Printed document can be sent to
for new price and effectivity vendor.
date in text field.
Run program to calculate
credit/debit note each goods
receiptwise.
Post the consolidated Posting has to be done as
credit/debit note subsequent adjustment for
vendor.
SAP WITH
ENHANCEMENT
DEVELOPMENT Program to calculate gods
receiptwise debit or credit.
CHANGE
MANAGEMENT
IMPACT
TRYOUT
DECISION
PROCESS OUTPUT Debit/Credit note
(SAP)

PROCESS ID: TTRL/MM/IMM/001 Remarks
PROCESS NAME Goods Issue for
reservation/production order
AS-IS PART
SAP R/3
SHORTFALL / GAP
SOLUTION Inventory Management
STANDARD SAP Goods issue is done against Reservation list material is
reservation or production order received from Production.
(movement type 201/261) after Stores person removes
receiving the list of reservation physically required material
from production. User may and then post the document.
change the quantity to be
issued.
SAP WITH
ENHANCEMENT
DEVELOPMENT
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Stock reduced at Pune plant.
(SAP)

PROCESS NAME Goods Issue for cost center /
Asset / Project / Network / scrap
AS-IS PART
SAP R/3
SHORTFALL / GAP
STANDARD SAP Goods issue is done against This goods issue can be also
cost center / asset / project / done if user created reservation.
network / scrap (movement type
201/281/551)
Excise invoice is done for Excise document can be
consumption with respect to printed.
goods issue document
SAP WITH
ENHANCEMENT
DEVELOPMENT Excise invoice.
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Stock reduced at Pune plant.
(SAP)

PROCESS NAME Physical inventory Process
AS-IS PART
SAP R/3
SHORTFALL / GAP
SOLUTION Physical inventory
STANDARD SAP Physical inventory document is User needs to give
created either manually or in parameters before creating
batch process on the date when document in batch mode.
physical inventory is to be done. Document are separate for
each storage location. All
usage decision for quality
lots has to be done before
creating document.
Physical inventory document is
printed.
Physical count is taken from User can change the count if
stores and entered in the required.
document
Differences are compared and Difference list can be printed
posted after CEO approval. and sent to approval.
Excise will be posted for reduced Excise document can be
stock goods movement. printed.
SAP WITH
ENHANCEMENT
DEVELOPMENT
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Book Stock is corrected as per
(SAP) physical at Pune plant.

PROCESS NAME Returnable trolley management
AS-IS PART
SAP R/3
SHORTFALL / GAP
STANDARD SAP Transfer posting is done for This has to be done while
trolley while goods are returnable trolley is going out.
dispatched (movement type This document is printed and
541) sent along with material. User
can enter delivery number in
text.
Transfer posting is done for Document can be printed.
trolley while goods are received
(movement type 542)
SAP WITH
ENHANCEMENT
DEVELOPMENT Returnable packing challan
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Stock for returnable packing is
(SAP) managed at Pune plant.

PROCESS NAME Return Delivery (Rejection) to
vendor
AS-IS PART
SAP R/3
SHORTFALL / GAP
STANDARD SAP Create return delivery for Separate movement
rejection with respect to latest identifies line / GR rejection.
goods receipt document Return delivery document
(separate movement type for line can be printed and sent to
and GR rejection) vendor prior to material
dispatch.
Credit memo is created for return Accounting entries are done.
delivery document
Excise invoice for rejected Excise invoice is printed and
material and printed with respect sent along with material.
to return delivery document
SAP WITH
ENHANCEMENT
DEVELOPMENT Return delivery note, excise
challan
CHANGE
MANAGEMENT
IMPACT
DECISION
PROCESS OUTPUT Rejected material reduced from
(SAP) stock

PROCESS NAME Deosons Procurement Process
AS-IS PART
SAP R/3
SHORTFALL / GAP
SOLUTION Purchasing / Sales &
Distribution / Production Planning
STANDARD SAP Create subcontracting order on Pricing conditions, payment
Deosons for Radiator + Frame terms, delivery terms, tax
Assembly. BOF components, code is entered.
Frame and Radiator is entered as
supplying parts.
Create Standard purchase order Pricing conditions, payment
on Deosons for Frame. terms, delivery terms, tax
code is entered. Purchase
order can be printed and
sent to vendor.
Goods receipt is done when GR Document can be
Deoson confirms the production printed and RG23 Part II is
and paper/invoice is received at updated.
TTR-Hinjewadi. Cenvat credit is
taken.
Goods issue of Frame is done to Transfer posting is done.
subcontracting order (Deosons). Document can be printed.
Subcontracting Challan is Challan can be printed and
prepared with respect to goods sent to vendor.
issue document.
Purchase order is prepared for Pricing conditions, payment
BOF components on other terms, delivery terms, tax
vendor. Delivery address is code is entered. Purchase
mentioned as Deosons. order can be printed and
sent to vendor.
Deosons confirms the receipt of GR document can be
BOF components and sends the printed. RG23 Part II is
paper/invoice to TTR-Hinjewadi updated.
GR is done for this material and
cenvat credit is taken.
Goods issue of BOF components Transfer posting is done.
is done to subcontracting order Document can be printed.
(Deosons).
issue document.
Goods issue of Radiator Transfer posting is done.
manufactured in TTR-Hinjewadi is Document can be printed.
done to subcontracting order
(Deosons). Physically this
material will go to Deosons.
issue document.

Goods receipt for subcontracting Deosons confirm the
order is done. production of Radiator
Assembly. Subcontracting
Challan must be linked while
doing GR.
reconciled.
Completed.
Material transfer is done to Boughout material stock is
finished material to update RG1. reduced and finished
material stock is increased.
Delivery is done against sales Excise invoice is printed and
order/scheduling agreement. sent to Deosons. This
Excise invoice is prepared. invoice goes to customer
along with material.
SAP WITH
ENHANCEMENT
DEVELOPMENT Purchase order, GR document,
57F4 Challan, Sale Excise
invoice
CHANGE
MANAGEMENT
IMPACT
TRYOUT
DECISION
PROCESS OUTPUT Procurement from Deosons and
(SAP) sale to Customer.

7.1 Master Data List
Who
Who
Scheduled Approximate Method will
Data type Source of Method of will
Process date of data Nos of of collect Template Status
(Master/Opening Item) records extraction upload
readiness records upload the
data
data
Octopus /
MMM001 Material Master Engg BOM / 15-Jun-04 8000 Excel LSMW Parag Parag Issued
Manual
MMM002 Vendor Master Octopus 15-Jun-04 1500 Excel LSMW Parag Parag Issued
MMM003 Info Record Manual 15-Jun-04 4000 Excel LSMW Parag Parag Will be issued
MMM004 Source List Manual 15-Jun-04 4000 Excel LSMW Parag Parag before completion
MMM005 Quota Arrangement Manual 15-Jun-04 100 Excel Manual Parag Parag of material master
MMM006 Chapter - ID Manual 15-Jun-04 1000 Excel LSMW Parag Parag Issued
MMM007 Material - Chapter - ID Manual 15-Jun-04 8000 Excel LSMW Parag Parag Issued
Combination
MMM008 Assessable Value Manual 15-Jun-04 1000 Excel LSMW Parag Parag Issued
MMM009 Cenvat Determination Manual 15-Jun-04 8000 Excel LSMW Parag Parag Issued
MMM010 Vendor Excise Details Manual 15-Jun-04 1500 Excel LSMW Parag Parag Issued
MMM011 Excise Tax Rates Manual 15-Jun-04 1000 Excel LSMW Parag Parag Issued
MMM012 Open PO/SA Manual 25-Jul-04 600 Excel BDC Parag Parag
MMM013 Open GR Manual 25-Jul-04 Excel BDC Nayan Nayan To be issued
MMM014 Open PR Manual 25-Jul-04 Excel Manual Parag Parag during Realization
MMM015 Stock Master Manual 25-Jul-04 4000 Excel BDC Nayan Nayan Phase

7.2 Data Migration Strategy
Data type Scheduled TTL
Authorized Tata Toyo
Process (Master/Opening Migration Strategy date of Responsibl
By Responsible
Item) upload e
1 Common to all Master data will be collected in template. Template will be 15-Jun-04 BPO Parag Hemant
Master data designed in such a way that user will select the field values
from selected values only This is to restrict the validation
process and minimize errors.
Each department will be responsible for data collected from
respective department.
Basic Data 1 & 2 - Engg Dept
Purchasing View - Purchase Dept
MRP 1,2,3,4,Work Scheduling - Production Dept
QM view - Quality Dept
Plant/Storage View - Stores Dept
Sales - Marketing Dept
Accounting / Costing View - Accounts Dept.
Once data is collected, then after cleaning, same will be
also made available to check once again if any mistakes.
Data will be uploaded in QA client and will be required to
confirmed by respective BPO. After approval only, data will
be uploaded in production system.
Vendors having balance of payment to be made should be
also created.
2 Open PO/SA/PR Open PO/PR data will be collected in template format and 15-Jul-04 BPO Parag Hemant
Items will be uploaded by BDC in QA client. Same after uploading
needs to be confirmed by BPO so that later on can be
uploaded in production system as this needs to be sent to
vendor well in advance. (could be 15 days earlier than go
live.)
3 Opening Stock, Open GR balance, opening stock, price will be collected in 25-Jul-04 BPO Nayan Hemant
Price, GR balance template and should be confirmed by BPO. Open balances
will be uploaded in QA client and will be verified and if
correct then only will be uploaded in Production system.

8. Functionality GAP Analysis
SAP TTL
Tata Toyo
Process Tata Toyo requirement Available Functionality GAP Proposed Solution Responsi
Responsible
Solution ble
1 Request for Approval Generation No solution No Standard SAP Enhancement Parag Hemant
Functionality
2 Price comparison with detailed price breakup with remarks Net price No possibility of Enhancement Parag Hemant
and delivery, payment terms for items and tooling cost comparison adding any other
comparison. information
3 Blocking of GR GR for all System allows to This could be controlled Nayan Hemant
System should not accept materials over and above next open do the GR for open manually after going through
specified stock level. Specified stock level is dynamic. schedule schedule qty and Expected GR for period
Example: For daily scheduling items, max stock level could qty does not give any report(ABAP Report).
be of current day req.+ next three days schedule. message for over
For weekly scheduling items, max stock level could be of and above receipt
current week req. +next two weeks schedule. for a particular day.
For monthly scheduling items, max stock level could be of
current month req. +next one month schedule
System should also provide some(+/-5%) tolerance limit for
maximum stock level as well as Schedule qty.
If any additional material is received over and above
maximum stock + tolerance limit, then system should
generate return delivery for excess material.
4 Price amendment with effectivity date Change No earlier price and Make prospective Parag Hemant
document effectivity is printed amendment by entering
for PO can in amendment retrospective dates in PO
be printed. text. Enter retrospective
price in Info record and see
Info record for price history
5 Retropricing No solution No Standard SAP Enhancement / Report Parag Hemant
Functionality
6 LOI Printing No solution No Standard SAP Use word document out side Parag Hemant
Functionality SAP
7 Auto Price revision based raw material prices No solution No Standard SAP Enhancement/Report. Can Parag Hemant
Functionality be mapped through RFQ.

9.1 Business Functionality Enhancement Requirements
SAP
Enhancement Tata Toyo Reasons for Criticality Tata Toyo TTL
Solution Enhancement Description
No requirement Enhancement for Go-Live Responsible Responsible
Proposed
MME001 Request for No solution Selected quotation should This document is sent Non-Critical Parag Hemant
approval get printed and should be to TOP management for
generation able to sent to CEO for approval
approval with remarks for
selection.
MME002 Price Net price RFQ comparison sheet One sheet explaining all Non-Critical Parag Hemant
Comparison comparison needs to show detailed price comparison
sheet breakup along with payment
terms, delivery terms, tolling
cost comparison and other
additional information if any
MME003 Retropricing No solution Net debit and credit note No standard solution to Critical Parag Hemant
should be able to calculate track retrospective
along with excise and sales credit/debit
tax differences
MME004 Auto price No solution Prices of boughout finished To get the all material Non-Critical Parag Hemant
revision based material should be able to prices with change in
base material simulate by changing base raw material prices.
price raw material prices
MME005 Block invoice User exit for User exit will be introduced to Liability should not be Critical Parag Hemant
verification LIV block LIV before quality booked before quality
before quality clearance clearance
clearance

9.2 Reporting Requirements
Standard SAP
Type of report Solution (give Reasons for Tata
TTL
Tata Toyo Purpose of Legal / Internal (Standard, Z SAP report id, Development (if Criticality Toyo
Report ID Respon
requirement report Requirement Report, ABAP trans code or Standard is not for Go-Live Respon
sible
query) report menu acceptable) sible
path)
MMR001 Schedule Schedule Internal ABAP Report Schedule Non-Critical Parag Hemant
compliance report Adherence Requirement adherence
control
MMR002 Vendorwise Rejection Internal Standard MB51 Parag Hemant
Itemwise rejection analysis Requirement
analysis
MMR003 List of items below Managing Internal ABAP Report Managing stock Critical Nayan Hemant
Min stock level inventory Requirement level below mark
MMR004 List of items above Managing Internal ABAP Report Managing over Critical Nayan Hemant
max stock level inventory Requirement stock items
MMR005 Pending GR under Quality Internal Standard QA33 Parag Hemant
quality status Requirement
MMR006 Vendorwise Material Internal ABAP Report Tracking of Non-Critical Parag Hemant
Itemwise inwarding Requirement GR/IR/Payment
invoicewise Receipt status status
/ Accept / Reject,
rejection returns,
payment status
MMR007 Letter to vendor for Communica External to vendor ABAP Report Communicate to Non-Critical Parag Hemant
itemwise, tion to vendor about
vendorwise, vendor on status of supply
invoicewise receipts
receipt/accept/rejec
t, rejection returns,
payment status on
monthly
9.2 Reporting Requirements

Standard SAP
Type of report Solution (give Reasons for Tata
TTL
Tata Toyo Purpose of Legal / Internal (Standard, Z SAP report id, Development (if Criticality Toyo
Report ID Respon
requirement report Requirement Report, ABAP trans code or Standard is not for Go-Live Respon
sible
query) report menu acceptable) sible
path)
MMR008 Vendorwise Analysis of Internal Standard MC$4 Parag Hemant
Schedule/ vendor Requirement
receipt/Accept qty, buying
value summary
MMR009 Premium freight Track Internal Standard Item list for GL Parag Hemant
paid premium frt. Requirement account, FS10N
MMR010 Actual/Theoretical Variance of Internal Standard MB51 Nayan Hemant
consumption of actual v/s Requirement
consumables like theoretical
Nitrogen & Others
MMR011 Approved Vendor List of Internal ABAP Report Approved vendor Non-Critical Parag Hemant
List vendors Requirement list
with quality
system
tracking
MMR012 Expected GR for Datewise Receipt monitoring ABAP Report Control Critical Nayan Hemant
period expected overdelivery
delivery qty schedule receipt
MMR013 Master component List of items Internal ABAP Report List of material Non-Critical Nayan Hemant
List with details Requirement with information
9.3 SAP Scripts Requirements

Reasons for
SAP TTL
SAP Solution Preprinted / Development (if Criticality for Tata Toyo
Script Tata Toyo requirement Respons
Proposed Normal Standard is not Go-Live Responsible
ID ible
acceptable)
Vendor Performance Review Vendor Evaluation
MML001 Normal Standard not available Non-Critical Parag Hemant
(Monthly) + Schedule
MML002 Dispatch Advice QM Notification Normal Standard not available Non-Critical Parag Hemant
MML003 Purchase Order Customized Layout Normal Standard not acceptable Critical Parag Hemant
MML004 Scheduling Agreement Customized Layout Normal Standard not acceptable Critical Parag Hemant
MML005 Purchase order/SA Amendment Customized Layout Normal Standard not acceptable Non-Critical Parag Hemant
MML006 Request for Quotation Customized Layout Normal Standard not acceptable Non-Critical Parag Hemant
MML007 Delivery Schedule Customized Layout Normal Standard not acceptable Critical Parag Hemant
ABAP
MML008 Price comparison sheet Normal Standard not acceptable Non-Critical Parag Hemant
development
Request for Approval for ABAP
MML009 Normal Standard not available Non-Critical Parag Hemant
Development development
Reminder Letter (before delivery
MML010 date) Customized Layout Normal Standard not acceptable Non-Critical Parag Hemant
MML011 Quotation followup letter Customized Layout Normal Standard not acceptable Non-Critical Parag Hemant
MML012 Goods Receipt Customized Layout Normal Standard not acceptable Critical Nayan Hemant
MML013 Goods Receipt Tag Customized Layout Normal Standard not acceptable Critical Nayan Hemant
Returnable delivery Challan for
MML014 Customized Layout Normal Standard not acceptable Critical Nayan Hemant
packaging material
MML015 Return Delivery note (122) Customized Layout Normal Standard not acceptable Non-Critical Nayan Hemant
MML016 Service Entry sheet Customized Layout Normal Standard not acceptable Critical Nayan Hemant
MML017 Physical Inventory Document Standard Layout Normal Non-Critical Nayan Hemant
MML018 RG1 Customized Layout Normal Standard not acceptable Critical Nayan D Hemant
MML019 CT2 Form Customized Layout Normal Standard not acceptable Critical Nayan D Hemant
MML020 RT12 Revised Format Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
9.3 SAP Scripts Requirements

Reasons for
SAP TTL
SAP Solution Preprinted / Development (if Criticality for Tata Toyo
Script Tata Toyo requirement Respons
Proposed Normal Standard is not Go-Live Responsible
ID ible
acceptable)
MML021 RT12 Old Format Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML022 Annexure -19 Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML023 TR6 Challan Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML024 Cenvat Returns Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML025 RG23A Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML026 RG23C Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML027 PLA Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML028 57 F(4) Customized Layout Normal Standard not acceptable Non-Critical Nayan D Hemant
MML029 57 F(4) Challan Customized Layout Preprinted Standard not acceptable Critical Nayan D Hemant
9.4 Interface Requirements

Details of
Technical details Impact on
Interface Interface Interface interface Authorized TTL Tata Toyo
of interface (eg. schedules (if
No Source Destination (business By Responsible Responsible
RFC) any)
reasons)

10. SAP USER ROLES
ID Name of person Functional Role Department SAP Role
VD1 Rajendra Shete Manager Vendor Development Vendor Development Buyer,
VD2 Parag Kamtekar Buyer, Vendor selection, Vendor master, Vendor Development Buyer
VD3 C.D.Maltesh Buyer, Vendor selection, Vendor master, Vendor Development Buyer
VD4 Nilesh Kupade Buyer, Vendor selection, Vendor master, Vendor Development Buyer
PR1 Arvind Alur Manager Logistics & Purchase Logistics, Purchase, PPC Buyer, Warehouse Manager
PR2 Anand Dixit Buyer, Purchasing activities Purchase Buyer
PR3 Ashok Patil Buyer, Purchasing activities Purchase Buyer
PR4 Dinesh Jadhav Buyer, Purchasing activities Purchase Buyer
PR5 Sachin Purchasing document maintenance Purchase Buyer
PR6 Nilesh Badhan Import purchasing PPC/Import Purchase Buyer
ST1 Dilip Nair Controlling Stores activities inword/outword Stores Shipping / Warehouse Manager
ST2 Prashant Satanekar Dispatch Stores activities Stores Shipping Clerk
ST3 Nayan Wairkar Receiving/Issuing Stores activities Stores Warehouse Clerk
EX1 Nayan Deshmukh Excise procedures Excise CIN

11. Training Requirements
Srl No Topic Duration Participants Faculty Venue
1 Purchasing - Material, service, 5 Days Buyer, Warehouse Manager Parag
subcontracting procurement, Purchase
requisition, request for quotation, stock
transfer order, import purchasing
2 Stores - Inward, Issue, physical inventory 3 Days Warehouse Manager, Shipping clerk, Nayan
Shipping Manager, Warehouse clerk
3 Excise - Capture and Post excise invoice, 2 Days CIN Parag / Nayan
Other Adjustments, Subcontracting
process
4 Accounts - Logistics invoice verification 2 Days Accounts Manager Hemant

12. Business Benefits
Process Tata Toyo Current Practice SAP Proposed Practice Business Benefits
PUR/001/002/003/00 Procurement of materials and goods Purchasing and Inventory Management Integration of procurement of materials with
4/005/006/007/009 receipt accounting
PUR/008 Procurement of services for plant Integration of Plant maintenance and Visibility of services done for plant maintenance
maintenance purchasing activities
PUR/006 Manual reconciliation of Standard subcontracting process Visibility of stock at subcontractor and reconciliation
subcontracting materials of subcontracting challans
IMM/001/002 Inventory Management Inventory Management Current stock position in all plant
IMM/004 Tracking on returnable packing Inventory Management All stock of returnable packing are managed in
system.
PUR/001/002 Import Purchasing Mumbai port plant Visibility of stock at bonded store and stock in transit,
stock shipped from import country
PUR/001/002/003/00 Gate entry for all materials Gate entry entered while doing GR List of gate entries without gate entry
4/005/006/007/009


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BUSINESS BLUEPRINT

TATA TOYO RADIATOR LTD., PUNE

mySAP ERP IMPLEMENTATION PROJECT

_______________ ______________________ ______________________

Tata Toyo mySAP ERP Implementation

1. Business Blue Print Document…………………………………………………………………………..1

Tata Toyo mySAP ERP Implementation

Tata Toyo mySAP ERP Implementation

3.4 Proposed way of doing business:

3.5 Content Introduction:

 Q&Adb: The Q&Adb provides a link between enterprise-specific requirements and

Tata Toyo mySAP ERP Implementation

 GAP Analysis: Gap in expectations/requirement and mySAP solution outline if observed is

Tata Toyo mySAP ERP Implementation

Tata Toyo mySAP ERP Implementation

Tata Toyo mySAP ERP Implementation

1. Cross-Application/Central Organizational Units

A: No negative stocks are allowed in any plants.

A: Special plant for maintenance is not required. Hinjewadi plant is defined as

Q: 6) Outline all facilities/locations that create, distribute, or store inventory.

Tata Toyo mySAP ERP Implementation

A: Stock balances are assigned to plant level.

2.1. Purchasing Group

Q: 1) Shall purchasing groups represent individual buyers or groups of buyers? If Groups

A: Purchasing group code will be given to Individual buyers.

Q: 2) Provide a list of buyer names.

2.2. Purchasing Organization

Q: 1) Which purchasing departments exist in your enterprise?

Q: 3) Do you have departments outside your purchasing department, which handle

A: There is no department, which is outside and handles purchasing.

A: Single department is for procuring goods and services.

Q: 5) Where do you procure materials/services in your enterprise?

Tata Toyo mySAP ERP Implementation

Q: 6) Which material types/external services do you procure?

Explanation: Examples of material types: Raw material semifinished product Trading

A: Materials - Raw material, Semifinished items, packing, Consumables, capital items,

Services - Maintenance services, Civil works, Administrative

Q: 7) For which enterprise entities do you procure materials/services? List these

Q: 8) Do you have corporate and localized purchasing functions?

Q: 9) Do you negotiate vendor pricing at a corporate or local level?

A: No corporate level purchasing.

Q: 10) Where do you procure materials/services in your enterprise centrally?

A: All purchasing activities are at plant level.

Q: 11) Which materials/services do you procure centrally?

A: All purchasing activities are at plant level.

A: Purchasing activity at Plant level.

A: No centrally agreed contracts.

Q: 14) For which materials/external services do you negotiate framework contracts?

Tata Toyo mySAP ERP Implementation

A: Plant releases orders against contracts.

Q: 16) Do you want to have procurement in particular enterprise areas/business areas or

A: No purchasing is at enterprise areas/business areas or product groups level.

3. Inventory Management, Warehouse Management

3.1. Storage location

A: BC01 - Boughtout Items

A: No negative stocks are allowed anywhere in plant.

A: Yes - Subcontracting purchases. Stocks are stored at subcontracting vendors' place.

Q: 4) Explain your strategy(s) regarding material receiving and product picking.

Tata Toyo mySAP ERP Implementation

A: Capacity at stores is not checked.

A: One picking area

Q: 1) What are the units of measurement used for sales?

Additional units, which are required, are given below.

_ __________