Best Pratictices

General Overview

SAP Best Practices for Apparel and Footwear India V1.603

SAP Best Practices

This package comprises predefined business scenarios that handle the most important business requirements in Apparel and Footwear Industry, covering the following key functional areas of SAP Enterprise Resource Planning (ERP):

Overview of Scenarios

Warehouse and Inventory Management Forecast-to-Stock Order to Cash Procure-to-Pay Accounting

Scenario Overview - Apparel and Footwear

Warehouse and Inventory Management 134 Stock Transfer with Delivery 624 Warehouse Management with Allocation RunForecast-to-Stock 630 Make-to-Stock for Apparel and Footwear Industry 631 Make-to-Order Production w/o Variant Configuration for Apparel and Footwear

Industry 632 Inter-company and Cross-plant Production 634 Production Subcontracting (External Processing) for Apparel and Footwear Industry 635 Combined Production Orders

Order-to-Cash 107 Sales Processing using Third Party (w. Shipping Notification) 115 Sales of Nonstock Item with Order Specific Procurement 611 Sales Order Processing with Allocation Run: Sale from Stock 612 Cross-Company Sales Order Processing with Allocation Run 613 Pre-Order Processing (Sales) 614 Rush Order Processing (Sales) 615 Sales Order Processing with Export Control 616 Order to Cash with Packing and Transport ManagementProcure-to-Pay 620 Finished Goods and Raw Materials Sourcing 621 Materials Subcontracting for Apparel and Footwear IndustryAccounting 645 Activate Document Splitting for Apparel and Footwear IndustryOther 154 Prereq. Process Steps

Scenario Overview-Baseline Warehouse and Inventory Management

124 - Lean Warehouse Management 126 - Serial Number Management 131 - Stock Handling: Scrap and Blocked Stock 135 - Stock Transfer without Delivery 137 - Physical Inventory / Inventory Count & Adjustment 117 - Batch Management

Key Business Scenarios:

Scenario Overview-Baseline Time-to-Market

210 - Internal Product Development


Scenario Overview-Baseline Forecast-to-Stock

144 - Logistics Planning 145 - Make-to-Stock Production - Discrete Industry 146 - Make-to-Stock Production - Process Industry 147 - Make-to-Order Production with Variant Configuration 148 - Make-to-Order Production w/o Variant Configuration 149 - Repetitive Manufacturing 150 - Production Subcontracting (External Processing) 151 - Rework Processing (Stock-Manufactured Material) 202 - Rework Processing (Work-in-Process)


Scenario Overview-Baseline Order to Cash

108 - Credit Management 109 - Sales Order Processing – Sale from Stock 110 - Free of Charge Delivery 111 - Returns and Complaints 112 - Sales Quotation 113 - Sales Order Processing for Prospect 114 - Sales Processing using Third Party (without Shipping Notification) 116 - Debit Memo Processing 201 - Sales Order Processing with Customer Down Payment 203 - Sales: Period End Closing Operations 204 - Credit Memo Processing 118 - Foreign Trade Export Processing 119 - Customer Consignment Processing 120 - Returnables Processing 122 - Batch Recall 123 - Cross-Company Sales Order Processing


Scenario Overview-Baseline Procure-to-Pay

128 - Quotation for Procurement 129 - Consumable Purchasing 130 - Procurement w/o QM 133 - Procurement Contract 136 - Return to Vendor 127 - Quality Management for Procurement with Vendor Evaluation 138 - MM Subcontracting 139 - Procurement & Consumption of Consigned Inventory 141 - Internal Procurement: Cross-Company Stock Transfer


Scenario Overview-Baseline Financial and Management Accounting

156 - General Ledger 157 - Accounts Receivable 158 - Accounts Payable 159 - Period End Closing in Financial Accounting 160 - Cash Management 162 - Asset Accounting 164 - Asset Acquisition for Constructed Assets (Invest. Orders) 184 - Overhead Cost Controlling – Actual 185 - Internal Order R&D Actual 186 - Internal Order for Marketing and Other Overhead Actual 163 - Asset Acquisition through Direct Capitalization 165 - Activate Document Splitting 161 - Cost of Sales Accounting 166 - Segment Reporting


Scenario Overview-Baseline Annual Operating Plan & Forecast and Simulation

175 - General Cost Center Planning 177 - Internal Order R&D Planning 180 - Internal Order for Marketing and Other Overhead Planning 172 - Revenue Planning 173 - SOP through Long Term Planning Transfer to LIS/PIS/Capacity 174 - Purchased Material Price Planning 176 - Manufacturing Cost Center Planning 178 - Standard Cost Calculation 179 - Quarterly Plan - Sales Quantity Forecast with CO-PA 187 - Reference and Simulation Costing


Scenario Overview-Baseline Integration Processes

Period End Closing Integrated 181 - Period End Closing General Plant 182 - Inventory Valuation for Year End Closing 224 - Period End Closing Activities

Analytics 221 – SAP ERP Reports for Accounting 222 – SAP ERP Reports for Logistics Multi-area scenario


Scenario Overview – Summary for all existing Scenarios

Required EHP3 for SAP ERP 6.0 SAP Enterprise Portal

Company roles involved in process flows Sales Administration Sales Billing Warehouse Clerk Warehouse Monitoring Warehouse Manager Transportation Planning Purchasing Manager Buyer Business Analyst Purchaser Product Cost Controller Production Planner Shop Floor Specialist Accounts Payable Accountant 1 Finance Manager General Ledger Accountant Assets Accountant

SAP Applications Required:

Process Flow DiagramAFS: Stock Transfer with Delivery

War

eho

use

Cle

rkE

ven

tB

uye

r

Forecast, Plan & Run MRP

Need for material

Material Arrival at

Plant Dock

Daily Shipment Worklist,

Enough Inventory

Process Stock Transport

Requisition Delivery

Post Goods Receipt for

Delivery

Process Delivery Due List for Pos

(Create Outbound Delivery)

Delivery Note

GR Slip

Change Stock Transport Order

Delivery

MRP = Material Requirements Planning, GR = Goods Receipt

Create Stock Transport Order Delivery (w/o

MRP)

MRP RUN

?

Picking Confirmation

Delivery

Post Goods Issue

Check Status of Stock Transfer

Pro

d.

pla

nn

er

Enter PO confirmation

Cu

sto

mer

S

ervi

ce

Creating Billing Document

Exc

ise

cl

er k

Creating Excise

Invoice

Printing Excise Invoice

No

Yes

Check Stock

Process Flow DiagramWarehouse Management with Allocation Run

War

eho

use

cle

rkW

areh

ou

se

man

ager

Eve

nt

Initial Stock Requirement

Posting Initial stock

Confirm TOCreate TO for material document

War

eho

use

M

on

ito

r

Stock Transfer Create TO Confirm TO

Displaying Storage Bin

Stock

Create TR

Stock Transfer

Requirement

Initial Stock, Stock Transfer and Physical Inventory management:

Counting Result Clearing Different WM

Replenishment requirement

Create Physical Inventory

Clearing Differences Inventory

Management

Physical Inventory

requirement

Create Transfer Requirement Confirm TOCreate TO for TR

Process Flow DiagramWarehouse Management with Allocation Run

War

eho

use

cle

rkP

urc

ha

sin

g

Ma

na

ger

/

Bu

ye

r

Sal

es

Ad

min

istr

ati

on

Eve

nt

Order goods from Vendor

Create PO

Create Inbound Delivery

Create TO Confirm TO

Good receipt

Executing Allocation Run

Create outbound delivery Create TO Confirm TO

Post goods issue

Customer order goods

Purchasing & Sales processing:

Create Sales Order

Process Flow DiagramMake-to-Stock for Apparel and Footwear Industry

Sh

op

Flo

or

Sp

ecia

list

Eve

nt

Create Planned Order in MRP

Beginning of Planning

Cycle

Inventory @ Standard. Cost

Pro

du

ctio

n P

lan

ner

(A

FS

)

Release Production

Order

Confirming Assembly Activities

/ Final Confirmation

Goods Issue

War

e-h

ou

se

Cle

rk

ConvertPlanned Order to Production Order

Inventory Consumption @ Standard. Cost

Finished Goods Receipt

Maintain Distribution of Requirement

Creating Planned Independent

Requirements

Sal

es

Ad

min

ist

rati

on

Process Flow DiagramMake-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry

Sal

es

Bill

ing

Eve

nt

Customer Requirement

Pro

du

cti

on

P

lan

ner

Confirmation of Production

Order Operations

Manually Issue

Goods

Fo

llow

u

p

pro

ces

s Accounts Receivable(157)

Period End Closing General

Plant(181)

Sales: Period End Closing

Operations (203)

Billing

Release Production

Orders

Sh

op

F

loo

r S

pec

iali

st

Sales Order Entry

Creating Planned Order

in MRP

Converting a planned order to production

order

Delivery Processing

Comparing Planned and Actual Costs

FI account document

War

eho

use

Cle

rk Good receipt for

Manufactured Goods

Process Flow DiagramInter-company and Cross-plant Production

Sh

op

F

loo

r S

pec

iali

st(P

lan

t1)

Pro

du

ctio

n

Pla

nn

er(p

lan

t 2)

Release Production

Order (finish goods)

Release Purchasing

Order

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

Maintaining Distribution of Requirements

Creating Planning

Independent Requirements


in MRP

Goods Receipt (semi-finish)-

plant 2

Material staging

Production Demand

Pro

du

ctio

n

Pla

nn

er(p

lan

t1)

Assigning Distribution

Profile to Finished goods

Convert Planned Order

to Purchase Requisition

(semi)

Convert Purchase

Requisition to Purchase Order

MRP Running

Converting Planned Order to a Production

Order (semi-finish)

Release Production

Order

Delivery and Picking

Display stock in Transit

War

eho

use

Cle

rk(p

lan

t 1,

2)

Sh

op

F

loo

r S

pec

iali

st(p

lan

t 2) Production

Order Confirmation

On-site Product

ion

On-site Product

ion

Goods Receipt (finish)-plant 1

Production Order

Confirmation(finished goods)

Pu

rch

ase

M

anag

er

En

gin

eer

ing

S

pec

ial

ist

Pro

du

ctio

n

Pla

nn

er (

Pla

nt

1)

Entering Goods Receipt for

Purchase Order

Converting Planned Order to a Production

Order (finish goods)

Process Flow DiagramProduction Subcontracting (External Processing) for Apparel and Footwear Industry

Sh

op

F

loo

r S

pec

ialis

tB

uye

r

Pu

rch

asin

g

Man

age

r

Release Production

Order

Create Purchase order

for external processing

Release Purchasing

Order


War

eho

use

Cle

rk

Maintaining Distribution of Requirements

Creating Planning

Independent Requirements


in MRP

Creating Delivery

Document through

Subcontract Stock Monitor

Sending Components to Subcontractor with Delivery

Document

Post Goods receipt for

Purchase Order

Confirm Production

Order

Goode receipt for production

Order

Material Document

Material Document

Production Demand

Pro

du

ctio

n P

lan

ner

Converting Planned Order to Production

Order

Checking Subcontracting

Purchase Requisition

from Production

Order

Material Document

Acc

ou

nt

s P

ayab

le

Acc

ou

nt

ant

1

Process Flow DiagramCombined Production Orders

Sh

op

Flo

or

Sp

ecia

list

Eve

nt

Co

st

Co

nt

rolle

r

Inventory @ Standard. Cost

Pro

du

ctio

n P

lan

ner

War

e-h

ou

se

Cle

rk

Period End Closing

“General” Plant(181)

Confirm Production Order Operation/Back

Flush

Confirm Combine Order

Combine the Production

Orders

Order Print

Goods Receipt Slip

ConvertPlanned Order to

Production Orders

Inventory Consumption @ Standard. Cost

Finished Goods Receipt

Creating Planned Independent

Requirements

Creating Distribution

Profile

Creating Planned Order in MRP

Back Flush Component in Background

Compare Planning Cost

and Actual Cost

Release Combine Order

Process Flow DiagramAFS: Sales Processing using Third Party (w. Shipping Notification)

Sal

es

Ad

min

istr

atio

n

Pu

rch

asin

g M

anag

er

/ Bu

yer

Acc

ou

nts

P

ayab

le /

Rec

eiva

ble

Ven

do

rW

are-

ho

use

C

lerk

Cu

sto

mer

Billing

Drop Ship Product to 3rd

Party

Send Shipping

Notification/ Confirmation

Incoming Vendor Invoice

Customer Request for

MaterialOrder

Confirmation

Create Sales Order

Auto-generates a Requisition

Quotation for

Procurement (128)

Display List of Purchase

Requisitions to Be Assigned

Convert Assigned

Requisitions to Purchase Orders

Approval of Purchase

Orders

AP–Outgoing Payment

(158)

COGS Vendor Invoice Receipt

Post Statistical Goods Receipt

(Optional)Change Order

Quantity


AR–Incoming Payment

(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Process Flow DiagramAFS: Sales of Nonstock Item with Order Specific Procurement

Sal

es

Ad

min

is-t

rati

on

Pu

rch

asin

g M

anag

er

/ Bu

yer

Acc

ou

nts

P

ayab

le/

Rec

eiva

ble

Ven

do

rW

areh

ou

se

Cle

rkC

ust

om

er

Billing

Delivery of Items to Trader’s

Warehouse



Material

Order Confirmation

Create Sales Order

Credit Managemen

t(108)

Auto-generates a Requisition

Display List of Purchase

Requisitions to be Assigned

Convert Assigned

Requisitions to Purchase Orders

Approval of Purchase

Orders

Print GR Slip

AP-Outgoing Payment

(158)


Post Goods Receipt

(Optional)Change Order

Quantity

AP = Accounts Payables, AR = Accounts Receivables, COGS = Cost of Goods Sold, GR = Goods Receipt

Post Goods Issue

Delivery Due List

Pick List

Quotation for

Procurement

(128)

Billing Document

AR-Incoming Payment

(157)

Credit Managemen

t(108)

Sal

es

Bill

ing

Cu

sto

me

rProcess Flow DiagramSales Order Processing with Allocation Run : Sale from Stock

Sal

es

Ad

min

istr

atio

nW

areh

ou

se C

lerk

Acc

ou

nts

R

ecei

vab

le

Eve

nt

Sales Order Entry

Customer Needs to Buy

Product

Inventory COGS

AR= Accounts Receivable, COGS = Cost of Goods Sold

Delivery NoteOrder Confirmation

Pick List

Delivery& Picking

Post Goods Issue


(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Billing

Allocation Run

Process Flow Diagram

Cross-Company Sales Order Processing with Allocation Run

Sal

es

Ad

min

istr

atio

nS

ales

Bill

ing

Eve

nt

War

eho

use

C

lerk

Cu

sto

me

r

AR = Accounts Receivable

Create Sales Order

Sales Need to Be Processed

Across Different

Company Code

Delivery

Delivery Note Bill of Lading

Post Goods Issue

Pick List

Picking

Create Billing Document

Create Intercompany

Document

Display Intercompany

Document

Display Billing Document

Allocation Run Check EDI Transmission

Acc

ou

nts

R

ecei

vab

le AR–Incoming

Payment (157)

Closing Operations

SD (203)

Process Flow DiagramPre-Order Processing (Sales)

Sal

es

Ad

min

istr

atio

n

Pro

du

cti

on

Pla

nn

er

Acc

ou

nts

P

ayab

le /

Rec

eiva

ble

Cu

sto

mer


Material

Create Customer Order

Displaying Customer Order

Confirmation

AFS Stock/Requirem

ents List



(157)

Billing Document

Closing Operations

SD (203)

War

eho

use

C

lerk

Allocation against Future

Receipts

Goods receipt of Purchase

Order

Reallocation against Early

Allocation

Creating Delivery incl. Picking and Goods Issue

Sal

es

Bill

ing

Delivery Note

Billing

Pu

r.

Man

ag

er

Bu

yer

Approve Purchase Order

Create Purchase Order

Process Flow DiagramRush Order Processing (Sales)

Cu

sto

mer

Sal

es

Ad

min

istr

atio

nW

areh

ou

se C

lerk

Acc

ou

nt

s R

ecei

vab

le

Eve

nt

Sales Order Entry

Customer Needs to Buy

Product

Inventory COGS


Pick List

Delivery Due List

Post Goods Issue


(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Billing


Cu

sto

mer

Process Flow DiagramSales Order Processing with Export Control

War

eho

use

C

lerk

Acc

ou

nt

s R

ecei

vab

le

Eve

nt

Customer Needs to Buy Product

Inventory COGS



Allocation Run

Delivery plus Pick and Post Goods

Issue


(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Billing

Sal

es

Ad

min

istr

atio

n

Order Confirmation(Print

Sales Order)

Release Sales Order

Valid legal

control?

Yes

No

Sales Order Entry

Cu

sto

me

rProcess Flow DiagramOrder to Cash with Packing and Transport Management

War

eho

use

C

lerk

Acc

ou

nts

R

ecei

vab

le

Eve

nt

Sales Order Entry

Customer Needs to Buy Product


Delivery Note

Create Delivery plus Picking and Packing

Billing Document

Sal

es

Bill

ing

Billing including Freight Cost

Tra

nsp

ort

atio

n

Pla

nn

ing

Determine Shipment Cost

Post Goods Issue


(157)

Closing Operations

SD (203)

Order Confirmation

Inventory COGS

Sal

es

Ad

min

istr

atio

n

Create & Complete Shipment Document

Allocation Run

Order Confirmation(Print

Sales Order)

Check IDOC Processing for

Shipping Notification

Output with EDI?

Yes

No

Process Flow Diagram

Finished Goods and Raw Materials Sourcing

Acc

ou

nts

P

ayab

le/

War

e-h

ou

se

Cle

rk


Pu

rch

ase

Man

age

r/B

uye

r

Create Purchase Requisition

Convert Assigned Requisitions to

Purchase Orders

Approval of Purchase Orders

AP–Outgoing Payment

(158)


Post Statistical Goods Receipt

Sal

es

Ad

min

ist

rati

on

Pro

du

ctio

n

Pla

nn

erV

end

or

Cu

sto

mer

Send Shipping Notification/ Confirmation


Customer Request for Material

Create Sales Order

Run MRPDisplay Stock Requirement list

Create Purchase Requisition manually

Enter PO Confirmation

Material Document

Em

plo

yee

Process Flow DiagramMaterials Subcontracting for Apparel and Footwear Industry

Sal

es

Ad

min

istr

atio

n

Pro

du

ctio

n

Pla

nn

er

Acc

ou

nts

P

ayab

le/

Ven

do

r/

Cu

sto

mer

War

e-h

ou

se C

lerk


Pu

rch

asin

g

Man

ager

/Bu

yer

Invoice Receipt for Two

Purchase Orders


Material

Create Sales Order

Display Stock Requirement list


Run MRP

Create Purchase Order (Header)

Enter PO

Confirmation Approval of

Purchase Order (Header)

AP

Outgoing Payment

(158)

COGS Vendor

Post Goods Receipt direct

to Subcontractor



Create Outbound

Delivery for Remain

Components

Goods Issue for Outbound

Delivery

Post Goods Receipt

Create Purchase Order

(Component)

Enter PO

Confirmation Approval of

Purchase Order (Component)

Process Flow DiagramActivate Document Splitting for Apparel and Footwear Industry

Ev

en

t

G / L Account Document

with Different Segments

Fin

an

ce

Ma

na

ge

r /

Ge

ne

ral

Le

dg

er

Ac

co

un

tan

t

Display a General Ledger

Document

Reporting

Process Flow DiagramAFS: Prereq. Process Steps

Fin

ance

M

anag

er

Pro

du

ctio

n

Pla

nn

er

Ev

en

tP

rod

uct

Co

st

Co

ntr

oll

er

Roll MM Period to Current

Period

UpdatingPreliminary

Cost EstimateMaster Data

Product Costing:

Costing Run

Product Costing:

Costing Run for Configured Materials

Set Up Planning File Entry

Preliminary Cost for the

Product Cost Collector

Create Product Cost Collectors

En

gin

ee

rin

g

Sp

ec

iali

st Routings:

Material Update

Run Materials Requirements

Planning (MRP)

Create and Schedule Job Posting

Ass

ets

A

cco

un

tan

t

Asset: Create Asset Master

Asset: Acquisition with

Automatic Offsetting Entry

War

eh

ou

se

C

lerk Initial Stock

Posting

Best Pratictices

Documents

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