Business Flow

Business Flow of MM
Raw Material Supply Storage Locations Goods Receipt (GR)

Vendor
Ware housing management dept (WM dept) Purchasing dept purchase order create

Account Payables (AP Process)

IR

Business partner

FI dept

MM dept

Lock A | raw mat stock

Lock B | finished goods

Quality Dept

Y Routing Work Center

Z Routing

Plant/prod dept/shop floor/finished goods manufacturing

In SAP material type ROH means Raw material FERT means Finished Goods HALB means Semi Finished Goods. Plant can have work centers across work centers routings can be maintain. Whenever Raw Materials are insufficient then MRP controller can create purchasing requisition to collect those insufficient raw materials. MRP (Material Requirement Planning) is a part of production department. Purchase requisition document can transfer to purchase department. Purchase department can processed purchase requisition and creates order. Later Purchasing Department can approve that purchase order & release to vendor. With reference of purchase order (PO) vendor can supply to raw materials to company. Supply can transfer to quality department for quality check. If quality check successfully completed then raw materials can be maintained in ware housing. Vendor can give invoice to Purchasing Department for payment against GR. With reference of invoice receipt in finance department account document can be generated. Based on account document FI department can make payment to vendor.

WM can supply raw material to plant so that plant can be manufactures finished goods. Those manufacturer finished goods goes to quality department. Pre-define applications related to MM functional transaction codes of applications are: Material Master Application Tcodes are MM01/MM02/MM03. Vendor Master Application Tcodes are XK01/XK02/XK03. Note: Raw materials are insufficient then purchase requisition application Purchase Requisition application Tcodes are ME51N/ME52N/ME53N. To Process Purchase Requisition Tcode is ME57. Purchase Order application Tcode are ME21N/ME22N/ME23N. To approve and Release purchase order Tcode is ME28. Tcode for Goods Receipt is MIGO. Account document application Tcodes are FB01/FB02/FB03. Note: Transaction codes tables is TSTC Customer

Business Flows Of SD 4
ATP Check

1 Place Order

2 Sales Order Create

Finished Goods Materials

Raw

5
Sales Dept

WM Dept

6 A/C Document
generators FI Dept

1. Business partner (customer) can place an order to Sales Department for finished goods. 2. With reference of order Sales Department can create sales order. 3. With reference of sales order Sales Department can do ATP check on finished goods availability to promise. 4. If ATP check OK from Warehouse Management finished goods can be issued to the customer. Goods issue has Picking Packing and Delivery. 5. After Goods issue Sales Department can give Bill/Invoice to the customer for payment. 6. With reference of invoice in FI department account document generates based on A/C document (7) FI dept can receive payment from customer.

SOLD TO PARTY (SP) Place order

Purchase Dept

WM Dept

SH Goods issue

FI Dept

BP
Bill/Invoice

X - Company

Payment (PY)

Y - Company

Y is vendor to X. Y is customer to Y. Purchase department place an order The customer gives the place order to the raw material that is called SOLD TO PARTY (SP). Whichever customer received goods is SHIP TO PARTY customer (SH). Whichever customer received Bill/invoice is Bill TO PARTY (BP) Whichever customer making payment is PAYEE (PY) SOLD TO PARTY customer can be SHIP TO PARTY, BP and PAYEE. But reverse is not possible. Partner Types and partner functions. Partner Types means business partners. Business partners are customer, vendor. Here KU means customer LI means vendor Under KU partner functions are SP,SH,BP,PY Under LI partner function is VN(vendor)

ATP Check Failed

MRP run

SOrder created

FERT

ROH

ATP Check

Planned order BOM (Bill of Material) Finished product (A) Raw Material X

Production

Production

In sales order department sales order created Purchase order placed by customer for finished products with reference of sorder ATP check done on finished products. ATP checks failed means insufficient finished Goods/Products. ATP check failed on finished products then system can run MRP (material requirement planning). Based on MRP run system can find availability of raw materials for manufacturing insufficient finished products. This can happen with reference of BOM. BOM can holds list of raw materials required for manufacturing one finished products. MRP run ATP Check done on raw materials. If ATP checks OK on Raw materials then MRP controller can create planned order. Planned order can maintain time takes to manufacture finished products and time takes to deliver to customer. With reference of planned order production order can be created. Production order copy can transferred to WM and even to production department. With reference of production order production department manufacture finished products those can transfer to WM. After quality check completed. MD01 is a tcode to run MRP. CS01 is a tcode for BOM. MD11 is a tcode to create planned order. CO01 is a tcode to create production order.

Business Flow Related to Production Planning:

For sales business partner is customer. 1. Business Partner place an order to sales Department. 2. With reference of order sales department created sales order. 3. With reference of sales order sales dept done ATP check on finished products. Note: In ATP check failed then MRP runs to check availability of raw materials to manufacture finished products which are not available. 4. MRP runs against BOM (Bill of Materials). BOM can holds list of raw materials required to manufacture one finished products.
Customer place Order

ATP Check failed

MRP run 4 ATP check OK

Sales Order Created

FERT

ROH Y 10 Z-- 50

Planned order

12
ok

WM Dept
Production Order

9
11 Quality Dept

8 8
PLANT

10
Finished Product

5. If ATP check ok on raw material then MRP controlling can create plant order, later MRP controlling can create production order. Note: (Planned order have estimated time to finish the product, estimated time to Quality check finished) 6. Planned order can maintain time to manufacture finished products, estimated to do quality inspection and estimated time to delivery. 7. Production orders of copy can transfer to ware house management can supply raw material to plant. 8. With reference of production order based on raw materials. 9. Plant can manufactured finished products those can. 10. Transfer to quality department. 11. Once quality is ok finally finished products can transfer to warehousing. MD01 is a Tcode to run MRP CO01 is a Tcode to create production order MD11 is a Tcode to create planned order. CS01 is a Tcode to create bill of material.