1. #4502 – Streamlining the Physical Inventory Process Using a Custom Solution.

2. Introductions Patty McGrogan – SAP Project Manager/Dopaco, Inc. email: patty.mcgrogan@dopaco.compatty.mcgrogan@dopaco.com Brian Tevis – Manager, Business Systems Integration/Dopaco, Inc. email: brian.tevis@dopaco.combrian.tevis@dopaco.com

3. Dopaco – The Company  Consumer packaging manufacturer  Locations: (8) across US and Canada  R/3 Modules: SD, MM, PP, FI, CO, QM  Go-Live: October 1998  Users: (300)  Single SAP instance/4.6C  Limited interfaces & customizations

4. Physical Inventory Environment Materials can be stored in several storage locations (virtual, physical) Two-part inventory tags are used to record counts – 1 part is left on the material the other part is returned to the office 2500-3000 tags are used during each inventory Each tag contains: –Material number or description, count, unit of measure, location and stock type –Multiple measurements are required for certain materials, tag allows up to 20 measurements

5. Why a custom solution? Standard SAP physical inventory batch sessions create documents allowing for one entry, per material, per storage location Side spreadsheets would need to be maintained to consolidate multiple count tags into one total count per material Entering each tag into a spreadsheet and then re-entering a total count for each material into an SAP document was a duplication of efforts and would increase the time required for the inventory process

6. Our Solution: ZTAG Allows for multiple entries per material and location Allows counts in various units of measure, as long as the UOM conversions are maintained in the material master Allows count entry immediately following count – no need to wait for the creation of the PI document batch session

7. Our Solution: ZTAG Allows tag edit listings via material groups or tag numbers to verify data entry Affords ability to generate Book to Physical listings throughout the process (by material groups and tag numbers) to compare inventory count to stated SAP inventory.

8. Our Solution: ZTAG When the inventory has been completed and recounts have taken place, the inventory is then posted to the SAP inventory documents, using a batch session. This batch posting sets the zero count ‘ZC’ indicator on the documents for materials not counted.

9. ZTAG – Main Menu

10. ZTAG – Open Inventory A physical inventory session must be opened prior to entering tags. This can be opened before the SAP PI batch session is created.

11. ZTAG – Unit Conversions For materials with a unit of measure conversion that differs by plant, a conversion can be maintained in this table. Users may then enter tags using this unit of measure, even though it is not maintained in the material master.

12. ZTAG – Enter tags

13. The stated tag quantity is entered. Note: If the count UOM differs from the base UOM the application will process the conversion automatically.

14. ZTAG – Tag listing The tag edit listing can be limited by material group or tag numbers for easy verification of data.

15. ZTAG – Tag listing

16. ZTAG – Book to Physical The Book to Physical listing will show the differences between the inventory count and the SAP inventory. This listing can be run many times before posting the actual inventory. The SAP batch session to create the standard documents must be run before executing this report.

17. ZTAG – Book to Physical

18. The bottom line +/-, if the inventory counts are posted to the SAP documents, at this point.

19. ZTAG – Post Counts This step will post the inventory counts to the SAP inventory documents created in batch. This will not adjust the inventory in SAP. The standard SAP transaction to post documents in batch will be the last step. If you want to post in ‘test mode’, simply leave the ‘Create BDC Session’ blank.

20. ZTAG – Post Counts

21. Security Authorization roles were created limiting users to specific plants, storage locations and transaction codes. Created a few new security objects, but used standard SAP security objects for majority.

22. Background One of the few applications ported from Legacy System Originally a COBOL application developed in house Approach was to build a self contained front end application that functioned like the legacy system but utilized standard SAP processes and development tools.

23. Development Approach Keep development cycle short by using table maintenance generator Validation and control logic in custom dynpro Internal Resources: Abap Programmer, MM Functional Team Lead, Basis Security Administrator External Resources: Abap Consultant and MM Consultant

24. Development Summary Created separate development class ZTAG Custom Dictionary Objects: 4 tables, 3 views, 2 structures Programs: 1 function group with 8 function modules, 12 transactions. Also reports and screen programs. 1 authorization object and 1 lock object Duration of development effort, including integration testing, roughly two months

25. Outcomes/Benefits Multiple users can enter tags simultaneously Allows for count entry immediately following count Reduced inventory timeframe by 8+ hours Upgrade from 3.1I to 4.6C: had to make a minor modification due to the change to batch input sessions, all else was without issue

26. Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 4502