1

SIF 8035 Informasjonssystemer Våren 2001

Øving 6 – SAP

Innlevering: Fredag 6. april

Case description

The company IDES AG is a German-based car producer, which buys car parts (bumpers)from BMW and Volkswagen. The company is managed from Hamburg, though there areproduction facilities in both Hamburg and Frankfurt. The two factories operateindependently of each other and have their own sales and purchasing organizations. Thecurrency they use is DEM.

In order to introduce SAP R/3, the company has to analyze its process flows and decidewhat the flows should be. In terms of procurement processes, two different proposals areconsidered.

(1) Alternative one (Tight control).

A purchasing requisition is generated from the production department and sent to thepurchasing department. The purchasing requisition needs to be approved. There are threelevels of approvals: if the purchasing amount is less than 1000 DEM, a personal approvalis required; if the amount is between 1000 and 10000 DEM, approval of the head of thepurchasing department is required; if the amount is greater than 10000 DEM, it must beapproved by the plant manager. The purchasing department then assigns the requirementto a pre-planned “source of supply”, a contract. If there is no contract available for thatmaterial, the purchasing process is blocked until the purchasing manager negotiates acontract with some vendor. A purchasing order is then issued according to thatpurchasing requisition. After that, the purchasing department sends the purchasing orderto the vendor. For important materials, the company also requires that the vendor returnan acknowledgement telling that they can deliver the goods on the specified date. Alsofor important materials, a reminder will be sent out to the vendor if the material is notarrived on time. Once the goods arrive, with a shipping notification, the goods receipt

2

processing begins. First, the purchasing department has to make sure that the correctnumber of the correct material is delivered. If it is OK, the warehouse people post thegoods receipt and the invoice is sent to the financial department for registration.

(2) Alternative two (Loose control).Main differences are:1) The purchasing requisition is assigned to an info record or a contract. Info records

can be set up directly by purchaser without involving the manager.2) No approval is needed for purchasing requisitions.3) No reminders or acknowledgements are used.

Exercise

1) Construct an ARIS organization model (view) of IDEC AG and EPC models(control view) of the two alternative flows in the company.

2) Assess the two alternatives with respect to cost and speed (which one is morecostly, which is slower). Justify your answer.

3) Run the process on SAP for the second flow (instruction follows).

3

S A P R / 3 E X E R C I S E S

C O U R S E S I F 8 0 3 5 S P R I N G 2 0 0 1

( I N S T R U C T I O N F O R E X E R C I S E 3 )

4

BRIEF INTRODUCTION

This document is the instruction for Exercise 3.

You are supposed to go through the exercise with SAP R/3 client. The server you areusing now is located at Stockholm University. You user name would be ntnu-XX (whereXX is the number of your group, like ntnu-05 for group 5) your initial password would bewmguld . You may need to change your password the first time you log on the system.

This exercise consists of two parts. The first part “Initial exercise” is aimed to help youget acquainted with SAP R/S basic navigation paths and usage of different icons. Noreport is required at this part.

The second part “Procurement” is made to help you run the procurement flow ofalternative two on SAP. You will be required to document some of the numbers duringthe execution, for example, purchase order number. Also some questions are presented.Answering these questions may help you gain some insight of SAP R/3 system.

5

Initial exercise

In this exercise, you will learn the basic navigation in SAP R/3 by displayinginformation about a particular material. This part will help you get acquainted with SAPR/3 user interface style and functions of different icons.

How to log on to SAP

SAP clients are installed in D1, D3, D5 at vm-brakka. There will be an icon SAPlogonon desktop. Run the program by double clicking.

If there is a server in the Description column, then click logon , otherwise you may needto add a connection with SAP server. The server we are using now locates at Sweden.Click on button “new” and fill the dialog box as follow.

Your user name would be ntnu-XX (where XX is the number of your group, like ntnu-05for group 5) your initial password would be wmguld . You may need to change yourpassword the first time you log on the system

6

a) Make sure that the client is 500. Enter your user name and password and click’Enter’. You user name would be ntnu-XX (where XX is the number of yourgroup, like ntnu-05 for group 5) your initial password would be wmguld . Youmay need to change your password the first time you log on the system. Languageis en (for English).

b) Click ’Enter’.

c) In R/3, you can navigate to the transactions by menus. Follow the menu path:

7

Logistics Materials management Material master

d) Follow the menu path:

Material Display Display current

8

e) Double click to execute the command. You will see the Display Material: InitialScreen as follow.

9

f) Click the icon to the right of the yellow material field in order to choose one of theavailable materials. The dialog box below will be displayed.

1 0

g) Click the ’Continue’ icon or press ’Enter’. A list of materials in the IDES systemis displayed as below.

h) Choose material 40-110F by double-clicking it or by marking it and clicking the’Continue’ icon. If this material doesn’t exist for new version of R3, try anotherone that is listed(for example AS-100 ).

1 1

i) After chose the right material, click the ’Enter’ icon or press ’Enter’ to display thatmaterial. In the following dialog box, mark the check boxes as below (we do thisto choose the views we need).

1 2

j) Press ’Enter’ or click the ’Continue’ icon.

k) Click the icon to the right of the yellow plant field to display the plants that storethis material.

1 3

l) Choose plant 1200 by double-clicking it.

m) Press ’Enter’. The material information will be displayed as follow.

1 4

n) Investigate the material by clicking on different tabs. Experiment with the OnlineHelp by clicking in various fields and click F1.

o) In order to return to the main menu, click the ’Back’ icon repeated times (thegreen icon with a back arrow). If you get lost, you can always return to a familiarplace by backing in this way. Sometimes, the back icon is disabled; you can thenuse the ’Exit’ icon (yellow icon) or the ’Cancel’ icon (red icon).

p) Log off the system by choosing

System Log off

1 5

Exercise 2 – Procurment

In this exercise, you will work through a standard purchasing process. The processconsists of several steps:1. An employee requires that a certain material be purchased.2. A purchase order manager selects the most appropriate vendor for the requested

material.3. A purchase order manager accepts the purchase requisition and creates a purchase

order, which is sent to the vendor.4. When the material arrives, a goods receiver registers the goods receipt.5. When the invoice arrives, a financial staff registers the invoice.

You will take on several different roles in this exercise, but note that you will alwayswork with the same underlying data although it may be presented in different viewsdepending on your particular role.

Goods Receiver registers goods receipt

Employee makes a

purchase request

Purchase Order Manager assigns

a vendor

Purchase Order Manager makes a purchase order

Financial staff registers

invoice

1 6

2.1 Creating the Purchase RequisitionYou now play the role of an employee who requests that a particular material bumper bepurchased.

Call up the transaction as follows: You can choose either follow the menu path or use atransaction code to call the transaction directly(Click on the system menu bar: Favorites� Insert transaction)

Menu Path Logistics→ Material Management→Purchasing � Purchase Requisition � Create

Transaction Code ME51

On the Create Purchase Requisition: Initial Screen, enter the following data:

FieldDocument type NBDelivery date Two weeks from todayPlant 1000Storage location 0001Purchasing group 001

Press Enter.

If the system asks whether the delivery date can be met, confirm.

On the Create Purchase Requisition: Item Overview screen, enter the following data:

FieldMaterial BUMPERQuantity requested 100

Confirm your entries by pressing Enter. If any warning messages appear, choose Enter.

Choose Save (an icon looking like a floppy disk).

The system confirms the posting and assigns a purchase requisition number. Make a noteof this number .

Choose Back (the green back arrow at the top).

1 7

2.2 Source Determination for the Purchase Requisition via Price SimulationYou now play the role of a purchase order manager. There are several vendors that cansupply the requested material, and your task is to determine which one to choose. Youwill do this by comparing the prices of all vendors.

Call up the transaction as follows:

Menu Path Logistics→ Material Management→ Purchasing �Purchase Requisition � Follow-on Functions �Assign and process

Transaction Code ME57

On the Assign and Process Purchase Requisitions screen, enter the following data:

FieldMaterial BUMPERPlant 1000Fixed vendor No entry

Press Execute (an icon resembling a clock, positioned leftmost at the top).

Select your purchase requisition number, i.e. mark the check box to the left of thepurchase requisition number, then choose Assign automatically.

The dialog box Source Overview for Purchase Requisition contains a list of all possiblevendors for the material in the purchase requisition.

Choose Price simulation/all.

The dialog box Price Simulation for Material BUMPER that now appears contains theparameters for the price simulation.

Select all three parameters Incl. cash discount, Delivery costs, and Effective price. Pressthe Enter key on your keyboard to confirm your entries.

On the Price Simulation for Sources of Supply screen, make a note of the most favorablevendor name in the list .The first line for this vendor reads: Bestprice in this comparison.

Select the vendor number for the most favorable vendor and then choose Info record.

1 8

Explain the notion of an info record. Use the info record you are looking at inorder to illustrate your explanation with a concrete example.

On the Display Info. Record: Purch. Organization Data 1 screen choose Back.

On the Price Simulation for Sources of Supply screen, choose Back to return to the dialogbox Source Overview for Purchase Requisition ###

Position your cursor on the vendor number of the most favorable vendor, then clickChoose (the green mark to the left at the bottom).

Make sure that the check box is marked. Choose Save.

The information record for the source determination is assigned to the vendor.

Click Back until the overview tree appears.

1 9

2.3 Creating a Purchase Order (from the Purchase Requisition)You continue to play the role of a Purchase Order Manager, but this time your task is toactually create the purchase order.

Call up the transaction as follows:

Menu Path Logistics→ Material Management→ Purchasing� Purchase Order� Create � Via RequisitionAssignment List

Transaction Code ME58

On the Ordering: Assigned Purchase Requisitions screen, enter the following data:

Field

Purchasing group 001Purchasing organization 1000Vendor 20010Plant 1000

Choose Execute.

On the Ordering for Assigned Requisitions: Overview of Assignments screen, positionyour cursor on the second line for your vendor, then choose Process assignment.

If the Process Assignment: Create PO dialog box appears, enter NB in the Order typefield.

What does NB mean? What other order types are there?

Press Enter. Skip any warning messages by pressing Enter.

If the Create Purchase Order: Extension Option dialog box appears, choose NewPurchase Order.

2 0

On the Create Purchase Order: Selection List: Purchase Requisitions screen, select yourrequisition (you do this by marking the leftmost rectangle on the chosen line) and chooseAdopt + details. Skip any warning messages by pressing Enter.

Why are the fields Plant and Storage Location included in a Purchase Order?How will they be used?

Choose Enter.

Make a note of the Net Price .

Write a few sentences in natural language that express the contents of thescreen Create Purchase Order: Item Overview. You need to consider thedifferent tab pages.

Choose Save.

The system confirms the posting and assigns a purchase order document number. Make anote of this number . Skip any warning messages bypressing Enter.

Click Back until the overview tree appears.

2.4 Entering the Goods Receipt for the Purchase Order

2 1

The goods have now arrived at your company. You play the role of a Goods Receiver andyour task is to register the Goods Receipt.

Call up the transaction as follows:

Menu Path Logistics→ Material Management→ InventoryManagement � Goods Movement � Goods Receipts � ForPurchase Order �PO Number Known

Transaction Code MIGO

The Goods Receipt <User> screen appears.Enter the following data:

Field DataPurchase order Your purchase order number

Press Enter.The system copies the header data of the purchase order into the header data area of theGR document.The purchase order items appear in the GR item overview.The PO number you entered appears in the Current purchase order field, and the POnumber field is once again ready to accept input.If you click on individual items, the system displays an item data screen (allowing you tochange the incoming quantity, for example).

In the header data area of the tab page General, enter the following data:Field DataDocument date Today's date (default)Posting date Today's date (default)

Select your item, then choose the tab page Where at the bottom of the screen to checkyour organizational data.

If necessary, enter the following data:Field DataStorage location 0001

Select Item OK,(in the left bottom area) then choose Save.

The system confirms the posting and assigns a material document number. Make a noteof this number ________________________.

2 2

2.5 Entering Invoice for the Purchase OrderThe Invoice have now arrived at your company. You play the role of a FinancialAssistant and your task is to register the Invoice.Call up the transaction as follows:Menu Path Logistics→ Material Management→ Invoice Verification �

Invoice Verification� Document Entry � Enter InvoiceTransaction Code MRHR

The Enter Invoice: Initial Screen screen appears.Enter the following data:Field Date

Document date Today’s dateCompany code 1000Currency DEMPO Your Purchase Order number

Press EnterIn the Enter Invoice: Vendor Items Screen, you will enter the following data

Field DataAmount Net Price from PO (Recorded at 2.3)Blin Date Today's date

Select Enter icon to continue to next screen.

Select the Simulation icon to continue to the next screen. Press Enter. Escape anywarning message by pressing Enter.

In this screen, note the debits and credits should be equal.

Select the Post(Save) icon to complete this transaction. The system confirms the postingand assigns a document number. Make a note of this number________________________. Escape any warning message by pressing Enter.

Till now you have worked through the basic parts of a procurement process. You cancheck the steps you have done and find their positions in the following procurement flow.

---------------------------------------------------END ☺-----------------------------------------------

Goods Receiver registers goods receipt

Employee makes a

purchase request

Purchase Order Manager assigns

a vendor

Purchase Order Manager makes a purchase order

Financial staff registers

invoice