1. SAP R/3 integration model R/3 Client / Server ABAP/4 COControlling AM Správa in- vest. majetku PSProjekčnísystém WFWorkflow ISOdvětvovářešení HRLidskézdroje SDOdbyt PPPlánovánívýroby QMManagementjakosti FIFinanč-nictví PMÚdržba MMMateriálovéhospodářství

2. MM presentation - agenda 1.Material master records – summary 2.Material valuation 3.MM account finding procedure 4.CGS MM processes in detail

3. SAP R/3 basic organization structure logic Client MTP 400 Company code P001 Company code DE01 Company code GB01 Plant 1 (Praha) Plant 2 (Zlín) Plant 1 (Praha) Plant 2 (Zlín) Plant 4 (Otrokovice) Storage location 1 Storage location 2

4. SAP R/3 organization structure status

5. Material master records 1

6. Material master records 2 Numbering convention of materials: 4 0 0 6 0 0 4 6 7 0 0 0 0 Code of the production plant Material type specification 0 – product 1 – raw material 2 - intermediates 3 – trad.goods Quality level 1 – OE 0 - RE Origin specification of the trading goods

7. Batch management – Mitas tyres Mitas tyres:

8. Batch management– Continental tyres Continental OE tyres Continental RE tyres

9. Material valuation 1 Valuation area = PLANT Valuation level = Material

10. Material valuation 2 4006004600000 9,5-32 6PR TT FARMER AC Plant 4 Stor.loc. 4701 Batch no. 1 CZK 1969,28 S price Plant 4 Stor. loc. 4204 Batch no. 99.. CZK 1969,28 S price Plant DE01 Stor. Loc. DE02 Batch no. 1 EUR 65,32 V price

11. Material pricing methods Standard price

12. Material pricing methods Moving average price

13. Material pricing methods Example of the V price

14. Account finding procedure 1 Products Trading goods Material types V001 V002 Z001 Z002 Val. class BSX (Stock account) GBB (Mater. Mov.) WRX (GR/IR clearing) ….. Z003 Operation Plant 1 Plant GB01 Val.area 123100 79100000 DebitCredit 123100

15. Account finding procedure 2 The most important operations in MM Inventory posting79100000 Vendor – acc. payable16400000 GR/IR clearing account 19110000 Price differences 23150000 / 28150000 Revaluation 23250000 / 28250000 Initial stock balance99999999 Goods issue for sales40000000 Physical invent. diff.23300000 / 28300000 Scraping 89010900 GR w/o purchase order19115000

16. Main MM processes General Local stock replenishment process Warehouse operations DE only External procurement Services Office supplies Other Kits handling

17. Local stock replenishment process Step 1 – what should be ordered to Italy ? Step 2 – create purchase order (PO) in Italy Step 3 – transfer PO into sales order in CZ Step 4 – sales activities in CZ Step 5 – post goods receipt to the warehouse in Italy Step 6 – post vendor invoice in Italy

18. Local stock replenishment process Step 1 – what should be ordered ? No SAP standard automatic MRP procedure applied. Plant level - transaction ZSTOCK comparing actual and safety stock Storage location level – manual procedure Future: keep the current procedure expand ZSTOCK to be used on the stor. loc. level implement SAP standard MRP based on MRP Areas

19. Local stock replenishment process Step 2 – Create stock transfer order Future: Keep the standard solution !!! Maintain MTP prices properly (new ZMTP transaction available). Standard SAP transaction ME21N – Create purchase order ST (Stock Transfer) order type should be used

20. Local stock replenishment process Step 3 – Transfer PO into SD order Future: Could be expanded to be used for stock transfer between foreign offices. Small adjustments acc. to the requirements of the users. In order to minimize manual effort transaction ZTRANS has been developed. Basic features: Customer program using standard SAP objects and procedures (BAPI, authorization concept) Creates SD orders in production plants based on the ST orders from foreign offices Serves as the replenishment process monitor

21. Local stock replenishment process Step 4 – Sales activities in CZ Future: To be discussed in SD session Standard SD procedures in production plants. Results: Order confirmation printed and delivered Invoice posted and printed Delivery note containing original ST number Tyres on the road

22. Local stock replenishment process Step 5 – GR to the local warehouse Future: Could Inbound Deliveries be helpful ? Standard SAP transaction MIGO Stock transfer order number must be known A copy of the delivery note must be available Result: Material document saved and printed Accounting document posted

23. Local stock replenishment process Step 6 – Invoice receipt Future: Keep the standard !!! Standard SAP transaction MIRO Stock transfer order number must be known A copy of the invoice must be available Result: Material document saved Accounting document posted

24. Main MM processes General Local stock replenishment process Warehouse operations DE only External procurement Services Office supplies Other Kits handling

25. Warehouse operations 1 Goods receipt: 1.Goods receipt for purchase order (mov.type 101) 2.Initial stock entry (mov.type 561) 3.Return delivery from customer (mov.type 651) 4.Positive physical inventory differences (mov. type 701) 5.Goods receipt without purchase order (mov.type 501)

26. Warehouse operations 2 Goods issue: 1.Goods issue for sales (mov.type 601) 2.Scraping (mov.type 551) 3.Negative physical inventory differences (mov. type 702)

27. Warehouse operations 3 Transfer posting 1. From storage location to stor. loc. in one step (m.t. 311) 2. From storage location to stor. loc. In 2 steps (m.t. 313/315) 3. From storage location to storage location using the Stock Transport Order (m.t. 351/101) 4.From material number to material number (m.t. 301) 5.From batch number to batch number (m.t. 301) 6.From returns of customer to the own stock (m.t. 453)

28. Main MM processes General Local stock replenishment process Warehouse operations DE only External procurement Services Office supplies Other Kits handling

29. Main MM processes General Local stock replenishment process Warehouse operations DE only External procurement Services Office supplies Other Kits handling