CWM_6.06_Overview April 2013

SAP Catch Weight Management
Overview

© 2013 SAP AG. All rights reserved. 2
Agenda
1 Introduction
2 Activation Process
3 Customers & References
4 Important Links

Customer Challenges and Business Benefits
1. Introduction of CWM

SAP Catch Weight Management
The Catch Weight Challenge
 Variable weight products – weight changes over
time or is unique per individual
 Parallel quantities in Inventory – e.g. pieces and
weight Valuation based on either quantity
 Different quantities for valuation and planning
Focus Segments
 Livestock, meat, fish, dairy (cheese),
fruits/vegetables, lumber, leather
Solution: SAP Catch Weight Management
 Two quantities with a variable conversion factor
 Fully integrated with Inventory Mgmt + Accounting
 Dedicated valuation unit
Business Benefits
 Improved business insights & margin handling
 Full visibility of inventory
 Increased fulfillment rates

General Information
 SAP Catch Weight Management is general available with the
new architecture since May 2009 (SAP ERP 6.0 with EHP4)
 SAP Business Suite 7 Innovations 2011 have exited Ramp-Up on
May 7th, 2012  EHP6 for ERP 6.0 general available
 CWM is successfully tested, validated and accepted by the market
 50+ customers live, additional implementations ongoing
 Localized for US, Germany, Spain, Denmark and China
 Following language packages are available:
Chinese, Danish, Dutch, English, French, German, Hebrew,
Hungarian, Italian, Japanese, Portuguese, Russian, Spanish
 Ongoing improvements (only new architecture) delivered through
enhancement package concept

The Solution: SAP Catch Weight Management
Increased efficiency, customers satisfaction and profitability through
integrated Catch Weight capabilities
Materials flow
Service flow
Solution:
Invoicing and
Payment based on
Actual Weight
• Increased efficiency
Solution: Inventory visibility in
parallel quantities
• Less out-of-stock situations
• Improved picking accuracy
• Reduced re-measuring
Solution: Accurate
calculation of weight
• Reduced freight costs
• Less Re-/unloading
Solution: Product Costing on
dedicated valuation unit
• Avoid accounting impact on manufacturing
• Better control with reduced correction of
books and accurate profitability information
Solution: Planning based
on relevant unit/quantity
• Reduced overstock
• Reduced sell-off need
Solution: Billing based on
actual weight leads to
• increased customer satisfaction
• fewer disputes, lower costs
• reduced give-away, increased
profitability
Solution: Communcations of
shipped goods in parallel
quantities including packing
• Reduced re-weighing effort
• Increased efficiencies
• Increased customers satisfaction
Solution: Accurate
Production Planning
• Increased yield
• Reduced overstock
• Increased efficiencies

CWM – Units of Measure
Material Master
 You define a material to be catch weight
managed within “Additional Data”.
 Units of measure (UoM) in material master:
– Base Unit of Measure (BUoM)
– Parallel Unit of Measure (PUoM)
Relation between units of measure:
Parallel Units
(measurable)
Logistics Units
(countable)
Fixed conversion
factor
Planned/variable
conversion factor
Valuation Unit
Arbitrary
Parallel Unit
(e.g. pound)
Base Unit
(e.g. each)
Alternative Units
(e.g. gallon)
Alternative Units
(e.g. case)
Fixed conversion
factor

SAP Catch Weight Management in Action
Example Procure-to-Pay and Order-to-Cash
ATP
Inventory mgmt.
and phys. inventory
Delivery
Customer Invoice
GR for purchase
order
Sales OrderPurchase Order
Supplier Invoice
Goods Issue

Inventory Management: Report /CWM/stock_check
• This transaction can be used to analyze cw stock and to perform stock corrections by
creating Physical Inventory Count documents
• Information depends on selected display parameters:
Perform Tolerance check  quantities beyond tolerance limit “S”
Neg. Stock Display  only materials with neg. quantities (BUoM or PUoM)
Zero Stock Display  only materials with 1 unit = 0
CW-specifics:
Button to create the PhyInvDoc in
order to correct stock quantities
CWM Typical Example:
0 EA with 1 KG

New Basic Data in Material Master
Tolerance Group for CWM:
Specifies whether the system performs a
plausibility check during a logistics process
using a tolerance group.

Example of Goods Movement
CW-specifics:
Quantities have to be
entered in both UoMs
CW-specifics:
System checks the values
against the tolerance group
of the Material Master

Parallel Quantities in Handling Units
CW-specifics:
Catch weight might be entered on different
levels like for example on pallet level.
For each HU, the packed qty (logistics UoM) is
defined according to Masterdata, however the
valuation qty (kg) was entered manually in
order to reflect the catch weight.

Example: Billing
CW-specifics:
Invoice amount based
on catch weight

Important differences of the new architecture compared to
the old architecture
Topic New Architecture (started with EHP4) Old Architecture (with EHP3 and before)
Posting Logic for
GR/IR Clearing
Immediate posting of differences between goods
receipts and invoice receipts with receipt of invoice
(traditional SAP ERP logic)
Differences between goods receipts and invoice
receipts are posted in dedicated transaction as
periodical job.
Posting Logic for
Work-in-Process (WIP)
Costs on production orders are posted to profit and
loss account and posted to balance sheet account in
period-end close (traditional SAP ERP logic)
Immediate posting to balance sheet account
No support for period accounting method (GKV)
Joint Production EHP4:Cost distribution only according to
Equivalence Numbers
EHP5: Cost distribution like in old architecture
Preliminary settlement for joint production in period-
end close (e.g. transaction CO8B)
Cost distribution according to
- Equivalence Numbers
- Quantities
- Quantities weighted with Equivalence Numbers
- BadI
No dedicated transaction in period-end close
Actual Costing Supported (Material Ledger) Not supported
Period-End Close
Manufacturing
Processes
Traditional ERP transactions e.g.
- KGI2 Overhead calculation
- CO8B Preliminary settlement for co-products
- KKAX WIP Calculation
- KO88 Settlement of Orders / Activation of WIP
CWM specific transactions in Inventory Accounting
e.g.
- FAIP05 Overhead calculation
- FAIP06 WIP Clearing
- FAIP07 Target Cost Calculation
Balance Sheet
Valuation
EHP4: Not supported
EHP5: Supported as in old architecture
FIFO, Range-of-Coverage, Market-Price-
Determination and Lowest-of-Cost-or-Market / Loss-
free Valuation are supported
eWM EHP5: Supported Not supported
Flexible Material
Prices
EHP4: Periodic calculation of standard prices (but
support of actual costing with Material Ledger); only
SAP-defined price types
EHP5: Customer-defined price types also available
- Up to daily calculation of standard price
- Customer-defined price types
Inventory Reporting
within Logistics
Standard transactions, some enhanced for parallel
quantity: MMBE, MB52, MB54, MB58
EHP5/6: more enhanced transactions (e.g. MB5B,
MB5S, MB5M, MB56 [Batch Where Used List] …)
No standard transactions with parallel quantities,
instead CWM specific inventory report
/CWM/STOCK

Key innovations Key Benefits
 Repetitive Manufacturing (REM) –
Especially backflushing is adapted to catch weight needs
 Reduced TCO as customers can now use CWM and REM in
one single instance.
 CWM Round-Ups (e.g. unified and improved proposal
algorithm for cw-quantities)
 Increased efficiency due to harmonized and enhanced
proposal algorithm in all user interfaces which contain
quantity proposals for cw-materials.
 Enhancement of Financial Extractor • Customers now benefit from the possibility to analyze in BI
the data they get with the Business Function "/CWM/FMP“.
 Localization Support (China) • The external tax reporting system Golden Tax, which has to
be used in China, is now available for customers using a
CWM-system.
 Several Movement Types
(e.g. MVT 107, 108, 109, 671)
 Customers can now benefit from the released MVTs.
For example they can now receive goods from valuated
blocked stock, which enhances usability.
 Initial Load for Handling Units (HUs)  With more efficiency and less risk of errors, CWM customers
can now automatically create existing HUs and the respective
inventory data.
 Net Posting during Goods Receipt  More flexibility gained with the possibility to credit a cash
discount already at goods receipt.
 Balance Sheet Valuation (BSV): Valuation Method LIFO and
release of restricted transactions
 Calculation of balance sheet values based on available
information in the system running SAP for the required
reporting  More accurate reporting with less effort
New innovations for SAP Catch Weight Management in EHP6
Extended capabilities supporting additional transactions

How can a customer activate CWM and what are the consequences?
2. Activation of CWM

SAP CWM must be activated via Switch Framework
SAP ERP
(ECC 6.0)
Business Function Set
“SAP Mining”
Business Function 1
Business Function 2
…
“SAP Retail”
Business Function 1
Business Function 2
…
“/CWM/BFS“
/CWM/APPL_INTEG.
/CWM/BFS
/CWM/CM_1
/CWM/CM_2
/CWM/CM_3
Enterprise Business
Functions
Financial Services
Global Trade Mgmt
Commodity Pricing
…
Only ONE
Industry Business Function Set
can be active in one system
SEVERAL Enterprise Business Functions
can be activated at the same time
and in addition to the
Industry Business Function Set

Activation of CWM with EHP6
How to activate Catch Weight Management
 The CWM functionality can be activated with TA SFW5 (“Switch Framework Customizing”)
 Choose the Business Function Set (BFS) “CWM BFS”
 If CWM was already activated with the old architecture (Business Function “/CWM/BF”) you
have to perform a data migration first (see SAP note 1450225)
 If CWM was active before with the new architecture (EHP4), BF “/CWM/CM_1” is already
switched on and you can just flag + activate “/CWM/CM_2” (EHP5) & “/CWM/CM_3” (EHP6)
 If CWM was not activated before, you have to activate “/CWM/CM_1”, “…_2” and “…_3”
 “/CWM/FMP” is only needed if you want to create your own price types for your materials
 More information is provided within the Documentation and Release Notes that can be
accessed via the blue info icons next to each Business Function
Only one BFS can be chosen
 not possible to activate CWM
with Industry Solutions in parallel!
Activation affects all clients
and is not reversible!

Restriction Documents

Installed Base + Success Stories
3. Customers & References

Further information
4. Important Links

Documentation
Information about CWM
 Documentation (EHP4):
 http://help.sap.com/erp604/  Application Help  English 
Industries in SAP ERP  SAP Catch Weight Management
 SAP Note (EHP4)
 1180040
 SAP Note (EHP5)
 1399197
 SAP Note (EHP6)
 1564572

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CWM_6.06_Overview April 2013

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