4. 07/24/17 4
Procurement Process Example
In the procurement process, there may be different business
partners for different roles in the transaction. These partner roles
are defined in vendor master data
Vendor
Ordering
Address
Goods
Supplier
Invoice
Presented
By
Payment
Received
By
6. 07/24/17 6
Material Master Data
An advantage of the SAP system is that it maintains one set of
data in real time. Material data is used by many functional areas.
With non-integrated systems, each system may contain material
data, and this data is not always consistent. In the SAP system,
the data is consistently correct or incorrect.
Material Master data is organized by Views. Depending on the
type of material, only certain views need to be used. As the
system is configured, additional views can be added as
necessary.
7. 07/24/17 7
Material Master Views
Basic Data 1
Basic Data 2
Classification
Sales: Sales Org Data 1
Sales: Sales Org Data 2
Sales: General/Plant Data
Foreign Trade: Export Data
Sales Text
Purchasing
MRP 1
MRP 2
MRP 3
MRP 4
Forecasting
Work Scheduling
• General Plant Data/Storage 1
• General Plant Data/Storage 2
• Warehouse Management 1
• Warehouse Management 2
• Quality Management
• Accounting 1
• Accounting 2
• Costing 1
• Costing 2
Basic Data, Classification are
not plant-specific
Other views are plant-specific
8. 07/24/17 8
Material Master Views
Plant 1000
NRG-A Bars
Base unit: CS
Gross wt: 72 lb.
NRG-A Bars
Lead Time: 2 days
Std. Price: 216.80
Plant 2000
NRG-A Bars
Lead Time: 3 days
Std. Price: 223.20
Basic
Data
View
MRP
Views
Non-plant specific
Plant specific
9. 07/24/17 9
Purchasing Process
Create Purchase Requisition
Where analysis/vendor selection occurs
Create Purchase Order from Requisition
Requisition items can be used to generate multiple purchase orders
Create Goods Receipt
Create Invoice Receipt
Post Outgoing Payment
Unfortunately, there is no purchasing “document flow” (BT: why not? )
10. 10
Sales & Credit Management Example
Credit Management is a cross-functional activity between SD and FI
SD FIC
R
E
D
I
T
Sales
People
want to
sell
FI
People
want to
reduce
risk
Credit is an independent function
in the SAP R/3 system
11. 11
Credit/Risk Process
Credit Management SD, FI
Cust: Health Express
Risk: Medium
Credit Limit: $10,000
Ttl. Commit: $6,000
Order: 5923
Order Amount: $5,000
Credit Limit Exceeded
Block order
E-mail to credit rep. (opt.)
Blocked document list
or E-mail (opt.)
Review situation
Release order
Pick, pack & ship order
Bill Customer
Credit control (blocks) can be applied at order entry,
delivery creation or goods issue
12. 12
Static vs. Dynamic Checks
Receivables
Open
delivery value
Open
order
Credit Limit
Open
order
Open
order
Receivables
Open
delivery value
Open
order
Open
order
Open
order
Credit HorizonStatic Check
Dynamic Check
13. 13
Decentralized Credit Management
Each company code sets and monitors a credit limit independently
Credit Control Area 1
Company Code 1
Sales Org.1
Health Express
Limit: $50,000
Credit Control Area 2
Company Code 2
Sales Org.2
Health Express
Limit: $100,000
14. 14
Centralized Credit Management
Transactions with each company code apply to the single credit limit set for the
single credit control area
Credit Control Area 1
Company Code 1
Sales Org.1
Limit: $150,000
Company Code 2
Sales Org.2
Health ExpressHealth Express
15. 15
Exchange Rates
Receivables for Company Code 2 are converted from Euros to US Dollars when
credit is checked
Credit Control Area 1
Currency: USD
Company Code 1
Currency: USD
Sales Org.1
Limit: $150,000
Company Code 2
Currency: EU
Sales Org.2
Health ExpressHealth Express
16. 16
Automatic Credit Control
Determine points at which credit check is carried out (order creation, delivery
creation or goods issue)
Determine type of check
Based on:
Credit control area
Risk category
Document (credit group)
17. 17
Automatic Credit Control
Sales
organization
Company
Code
Credit
Control Area
Customer
Risk
Category
Transaction
Type
Credit group
When Credit is Checked
Why Credit is Checked
What the system does (warning, error)
As of release 4.0, Credit
control area can also be
Determined via:
user exits
payer
sales area
