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Run Robust sub-contracting processes in SAP-ECC Vishwas Karandikar
Learning Points <ul><li>Sub-contracting shipments with Delivery notes and inventory documents will have referenced Purchas...
Return on Investment <ul><li>Improved inventory accuracy and traceability </li></ul><ul><li>Simplified warehouse operation...
Shipping process in Standard subcontracting process <ul><li>Lists Purchase Orders or MRP </li></ul><ul><li>generated requi...
Receiving process in Standard subcontracting process <ul><li>Vendor Performs </li></ul><ul><li>subcontracting tasks </li><...
Shipping process in Robust subcontracting process <ul><li>Change standard variant to </li></ul><ul><li>improve performance...
Receiving process in Robust subcontracting process Goods Receipt for PO Records consumption of components as automatic mov...
Step 1: Purchase order for subcontracting <ul><li>Subcontracting Purchase order with item type L is created listing compon...
Step 1: Purchase order for subcontracting - continued <ul><li>FT blocked subcontracting PO components are shown in a custo...
Step 2: ME2O <ul><li>Evaluate which choices are required and check others OFF </li></ul><ul><li>Save as variant and update...
Step 3: Delivery Note  <ul><li>Create new data transfer routine 9xx using Tcode VOFM </li></ul><ul><ul><li>The routine has...
Step 4: Picking and Post Goods Issue for Delivery Note <ul><li>Complete picking for delivery note with standard process </...
Step 5: Create Proforma Invoice <ul><li>This step is optional and can be used to generate Export shipping documents such a...
Step 6: Track and reconcile inventory with subcontractor <ul><li>New report to reconcile inventory at subcontractor </li><...
Best Practices <ul><li>Uniform warehouse processes for shipping </li></ul><ul><li>Better inventory accuracy and control </...
Key Learnings <ul><li>Standard SAP sub-contracting process does not reference Purchase orders in shipments </li></ul><ul><...
5002 Session Code:
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Karandikar 5002

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Karandikar 5002

  1. 1. Run Robust sub-contracting processes in SAP-ECC Vishwas Karandikar
  2. 2. Learning Points <ul><li>Sub-contracting shipments with Delivery notes and inventory documents will have referenced Purchase order information </li></ul><ul><li>The link through-out the process will result in improved inventory accuracy of stock at sub-contractors </li></ul><ul><li>Standard shipping process for sub-contracting shipments simplifies warehouse operations </li></ul>
  3. 3. Return on Investment <ul><li>Improved inventory accuracy and traceability </li></ul><ul><li>Simplified warehouse operations due to uniform shipping process </li></ul><ul><li>Reduction in external shipment document systems and cycle time as all required shipping documents can be generated within SAP with standard transactions </li></ul><ul><li>Duty draw-back benefits due to systematic reference to Purchase orders for export (components to sub-contractor) and re-import (receipt of PO line) </li></ul>
  4. 4. Shipping process in Standard subcontracting process <ul><li>Lists Purchase Orders or MRP </li></ul><ul><li>generated requirements with </li></ul><ul><li>special procurement </li></ul>Transaction ME2O to list subcontracting requirements Create Delivery Note Create Proforma Invoice - optional Pick and Post goods issue Delivery Note
  5. 5. Receiving process in Standard subcontracting process <ul><li>Vendor Performs </li></ul><ul><li>subcontracting tasks </li></ul>Goods Receipt for PO Records consumption of components as automatic movement 543 Purchase order is created
  6. 6. Shipping process in Robust subcontracting process <ul><li>Change standard variant to </li></ul><ul><li>improve performance </li></ul>Transaction ME2O to list subcontracting requirements Create Delivery Note Create Proforma Invoice - optional Pick and Post goods issue Delivery Note Purchase order is created User exit to perform Foreign Trade checks for component shipment New Requirements routine to assign PO reference and validate BADI to pass PO number to inventory document
  7. 7. Receiving process in Robust subcontracting process Goods Receipt for PO Records consumption of components as automatic movement 543 Vendor Performs subcontracting tasks New custom report to reconcile inventory at subcontractor
  8. 8. Step 1: Purchase order for subcontracting <ul><li>Subcontracting Purchase order with item type L is created listing components individually or from the BoM </li></ul><ul><li>User exit EXIT_SAPMM06E_013 coded to do Foreign Trade checks by embedding Function module RV_EXPORT_CONTROL or clone </li></ul><ul><li>For component shipments, vendor is ship-to, and component issue plant is ship-from </li></ul><ul><li>Transactions that are blocked for Foreign Trade are recorded in custom table with error message from Function module </li></ul>
  9. 9. Step 1: Purchase order for subcontracting - continued <ul><li>FT blocked subcontracting PO components are shown in a custom report to the Trade department to complete missing data in advance of shipment </li></ul>Best Practice: Information replaces inventory
  10. 10. Step 2: ME2O <ul><li>Evaluate which choices are required and check others OFF </li></ul><ul><li>Save as variant and update this variant as Start with for transaction ME2O in table TSTC (use Tcode SE93 to make this setting) </li></ul><ul><li>For best performance limit selection by vendor, plant and material </li></ul>
  11. 11. Step 3: Delivery Note <ul><li>Create new data transfer routine 9xx using Tcode VOFM </li></ul><ul><ul><li>The routine has code to generate Pop-up box to enter Po number </li></ul></ul><ul><ul><li>Validates the PO entered exists, has the same vendor, components that are selected for delivery creation </li></ul></ul><ul><ul><li>Validates that PO is not blocked for Foreign Trade </li></ul></ul><ul><ul><li>Issues relevant error messages if delivery creation fails </li></ul></ul><ul><ul><li>Transfers the PO number entered to the External delivery field (or any other text field of your choice) for delivery notes created successfully </li></ul></ul><ul><li>Assign the data transfer routine to doc type LB using Tcode VTLA </li></ul>Best Practice: Data validation and tracking with reference to existing document systematically
  12. 12. Step 4: Picking and Post Goods Issue for Delivery Note <ul><li>Complete picking for delivery note with standard process </li></ul><ul><li>In the step Post goods issue for delivery note, use BAdI LE_SHP_GOODSMOVEMNT, method CHANGE_INPUT_HEADER_AND_ITEMS to transfer the PO number from external delivery field on Delivery Note to MSEG- EBELN </li></ul><ul><li>Generate shipping documents using standard processes </li></ul>Best Practice: Uniform shipping process improves efficiency
  13. 13. Step 5: Create Proforma Invoice <ul><li>This step is optional and can be used to generate Export shipping documents such as SED and commercial invoice </li></ul><ul><li>Standard system is configured with Proforma doc type FL assigned to delivery doc type LB </li></ul><ul><li>Adjust copy control for Proforma using Tcode VTFL </li></ul><ul><ul><li>Using requirements 009 on header and 010 on item level prevents the proforma LB from updating the billing due index </li></ul></ul><ul><li>Set up Pricing procedure configuration </li></ul><ul><ul><li>TCode OVTP: Assign document pricing procedure L to billing type FL </li></ul></ul><ul><ul><li>Tcode OVKK: Assign relevant pricing procedure to the combination of Sales org data, customer pricing group and document procedure </li></ul></ul>
  14. 14. Step 6: Track and reconcile inventory with subcontractor <ul><li>New report to reconcile inventory at subcontractor </li></ul><ul><ul><li>Report uses references on each step stored in the system </li></ul></ul><ul><ul><li>Report shows discrepancies due to change in PO quantity, Po cancellation etc. </li></ul></ul><ul><li>Effective tool to trace discrepancies back to exact transactions that caused them </li></ul>Part X 1000 USD vendor
  15. 15. Best Practices <ul><li>Uniform warehouse processes for shipping </li></ul><ul><li>Better inventory accuracy and control </li></ul><ul><li>Information replaces inventory in the supply chain </li></ul>
  16. 16. Key Learnings <ul><li>Standard SAP sub-contracting process does not reference Purchase orders in shipments </li></ul><ul><li>The “Delivery due list” for sub-contracting is accessed through transaction code ME2O </li></ul><ul><li>Enhancements to carry key references and build better validations and control are possible with user-exits, requirement routines and BADIs within SAP ECC </li></ul>
  17. 17. 5002 Session Code:

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