Enterprise Resource

Planning (ERP)
 ENTERPRISE RESOURCE
ERP is a generic term used to describe a comprehensive information
PLANNING (ERP) -
system designed to integrate all the business processes found in an
DEFINED
enterprise.

Efficiency and productivity are improved through the integration of

information and the removal of non value adding activities,
processes and information.
ERP – The Evolution
(1991-1995)
(1985-1991)
MRP-II
MRP
Business
Business Environment
Environment
Buyers
EvolvingMarket
Manufacturing
(1985-1991)
(1950-1985) Technologies
Increased & Domestic
competition
MRP
Inventory Control Competition
Issues in focus
Business Environment Issues in focus
Product Variety
Business Environment Increasing Volumes
Evolving Manufacturing
Production Efficiency
Technologies
Sellers Markets&with
Domestic
protected Recognition of inadequacies &
Competition
boundaries Just In Time Approach
inefficiencies in business
Issues in focus processes
Nature of IT solutions
Increasing
ConvenienceVolumes
in operations Nature
MRP II of IT solutions
Recognition
Nature of ITof inadequacies &
solutions MRP
inefficiencies in business
Data Processing
processes
Nature of IT solutions
MRP
…
(1995 …)
ERP

Business Environment
International Competition
(1991-1995)
Segmented Markets
MRP-II
Focus on Effectiveness
Business Environment
Issues in focus
Buyers Market
Process Improvement
Increased competition
Decision Support
Issues in focus
Nature of IT solutions
Product Variety
Enterprise Resource Planning
Production Efficiency
Just In Time Approach
Nature of IT solutions
MRP II
What ERP Is not?

 It is important to understand that ROI comes from the process

improvements supported by ERP—not from ERP software alone.
 ERP is not a business driver but an enabler to business
 ERP is a philosophy. It has to be nurtured at all levels in the
organization.
The Road Ahead?

Strategic
Benefits
Strategic Business Benefits
Enterprise Transformation – A framework will be provided to enable
enterprise transformation.
Infrastructure - An infrastructure will support future growth.
Integration - End-users will be on one integrated system. Information
will be entered once and authorized users will have access to real-time,
accurate data. Current systems that continue to be used will be
interfaced for passing information between systems.
Standardization - One integrated system will ensure standardized data
elements for materials management records, standardized reporting,
and standardized business process flows across organization.
Improved Reporting - The reporting structures will enable accurate,
accessible, and timely reporting to end-users at all levels. End-users will
have the tools to create their own queries to capture the data that is
pertinent to them.
Strategic Business Benefits
High-Value Activities - Efficiencies will enable organizational personnel
to devote more time to higher value activities like strategic planning,
financial analysis and business analysis.
Scalability - The system will enable the organization `to adapt and be
flexible to change.
Internet Capabilities - Web-enabled processes will ensure that remote
users & business partners use the system productively with minimal
training requirements. These processes will also provide greater
availability of information across the organization.
Information Flow and Workflow - A single data repository will ensure that
accurate information is routed to the end-users to initiate actions,
approvals, and decisions. A clear and effective transactional audit trail
will enhance data integrity.
The Road Ahead?

The Road Ahead

 Supply Chain Operations Model Overview
The Model is structured around five distinct management processes

Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Return Return Return Return Return

Return Return Return

Group Company Customer’s

Suppliers’ Supplier Customer
Customer
Supplier
Internal or External Internal or External

The Model
Supply Chain Management (Integrated Components)

Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Return Return Return Return Return

Return Return Return

Your Company Customer’s

Suppliers’ Supplier Customer
Customer
Supplier
Internal or External Internal or External

Master
Production
Schedule
Long Range Demand
Planning Planning Logistics
Materials Customer
Planning Order
Product & Management
Supply
Component Chain Procurement
Design Planning Factory
Planning

Mid-Term
Planning / Short -Term
S&OP Planning

Time
Horizons
Years / Quarters Quarters / Months / Weeks Weeks / Days / Minutes
Definition of ERP in LN6.1

Enterprise resource planning (ERP) system that attempts

to integrate several data sources and processes of an
organization into a unified system. A typical ERP system will
use multiple components of computer software and hardware
to achieve the integration. A key ingredient of most ERP
systems is the use of a unified database to store data for the
various system modules.
Start of Training Phase

Let us Start Learning

ERP Ln 6.1 FP5

Merino Services Limited 14

The two key components of
an ERP system are:
• Common database is the system that allows every
department of a company to store and retrieve information in
real-time. Using a common database allows information to be
more reliable, accessible, and easily shared and a modular
software design.

• Modular software design is a variety of programs

that can be added on an individual basis to improve the efficiency
of the business. These modular software designs link into the
common database, so that all of the information between the
departments is accessible in real time.
Key Modules of SSA ERP-L
N6 are:
•Enterprise Modeler
•Common
•People
•Financial
•Taxation
•Project
•Enterprise Planning
•Order Management
•Manufacturing
•Warehouse Management
•Freight Management
•Service
•Quality Management
•ODM
Company Structure
Company Structure
is an organization created to conduct business.

Single Single
Financial Company Logistic
Company Company
Both
What is Logistics Company?

 Logistics is defined as a business planning

framework for the management of material,
service, information and capital flows. It includes
the increasingly complex information,
communication and control systems required in
today's business environment (Logistix Partners
Oy, Helsinki, FI, 1996).
 Logistics - The procurement, maintenance,
distribution, and replacement of personnel and
materiel (Webster's Dictionary).
What is Financial Company?

 A financial company is part of the organization

which records all the transactions in the monetary
form of statement of profit & loss accounts for
knowing the overall health of the business as well
as for reporting purpose to the board of directors
& the shareholders as well as to meet the
statutory requirements of the law.
Three layers of Data
Enterprise Unit (E.U)
A independent unit of the organization that relates between the Financial
company & Entities of a Logistical company.
 Single Logistic Single Finance

Scenario 1 Scenario 2

Finance Finance

E.U 1 E.U 1&2

Entities Entities

Logistic Logistic
Single Logistic Multi Finance

Scenario 1 Scenario 2
Finance

E.U

Entities

Logistic
Multi Logistic Single Finance

Scenario 1 Scenario 2

Finance

E.U

Entities

Logistic
Multi Logistic Multi Finance

Scenario 1 Scenario 2

Finance

E.U

Entities

Logistic
Calendar
Calendar
Calendar

A calendar establishes the times that resources are available for

work. These times are used for planning.
Structure Of the Calendar
Calendar Break Down Structure
Common Data
Menu Browser  Common 
Tables
Logistic Tables
Logistic Table Components

Business Partner Types

Area: It is a Geographical
region

Here area represent the A way to group business

geographical area. This we partners with similar
can use to group characteristics, for
customers, suppliers and example, members of the
employees on geographical E.U.,
basis .
Logistic Table Components

Carrier Channel

An organization that It is basically used in the

provides transport services. planning . Assign goods to
It is Assigned to Ship-to and the customer group (Sold to
Ship-from. business partner ATP).
Logistic Table
Components

Country Country Group

Country are the national It is grouping of the

states where you and your Countries, which you can
business partners are use for tax reporting and
located. for the tax journal.
Logistic Table Components

Department Warehouse

It determines the types of orders It is a place where item are

and transactions that the stored, and inbound and out
department can control. bound of items takes place. The
Enterprise unit: The enterprise warehouse type indicates the
unit to which the department purposes for which you can use
belongs. the warehouse.
Logistic Table Components

Discount Code Number Group

 Maintain discount  A group of first free
codes. You can use number series that
discount codes to
you can assign to a
indicate why a
discount was granted. specific use.
For example, you can  For example, you can
grant a discount
assign a number
because the customer
orders large group to:
quantities, or because  Business partner
the sold items are of codes
an older type, or for  Order Parameters
many other reasons. etc…
Logistic Table Components

Freight Service Level Item Group

Basically its used to define

An entity that expresses the group of item with the
the duration of common characteristic. We
transportation. give item group and its
description here.
Logistic Table Components

Signals Manufacturer

Signal codes are message

appearing on the screen
when you enter an item to
which a signal code is
linked. Signal can also be
used to block the issue
and/or requisition of goods.
We can use a signal code A Manufacturer/Supplier of
for purchase , sales , the Finished Goods.
service , requisition or
production issues.
Logistic Table Components

Point of title passage Price Group

Price Group: Its used to

This is the pt. at which the represent the group of
legal ownership changes items which have same
(seller to buyer). price or discounts.
Logistic Table Components

Language Priorities
 Language: It is the
language code.
 System language: The
number of the
installed (system)
language
corresponding with
this language. It is
usually the same Using this session can be
language as the linked to business partners.
language that you are In the Service package
defining. these priorities are used as
a customer-priority factor.
Logistic Table Components

Price List General Project

Price list : List of default

price and discount for
customers or suppliers. This session is used to list
You can attach a price list the projects.
to an item gr., or for
business partner.
Logistic Table Components

Product types , product class, product

lines

This is the sorting and selecting of the item related data

Logistic Table Components

Setup Class Setup States

It is used determine the An item's characteristic that

minimum changeover time is linked to an operation.
for a machine or a tool Depending on the setup
between two operations. A states of two successive
setup class consists of a operations, a machine's
series of setup states. In a changeover takes longer or
matrix of setup states the less long. A series of setup
specific changeover times states form a setup class.
are defined.
Table Logistics

Terms of delivery Unit Sets and units

Its an agreement The grouping of units which

concerning delivery of the is used by the company in
goods. different functions.
Financial Tables
Financial Table Components

Currency of the company

and the related Business
Partners use to business.

It is the rating of the B.P to This tables used to covert

give credits. And it is also the base currency to the
used where the credit check reporting currency
should be checked.
Financial Table Components

Terms Of Payment Cost Component

 Cost component is
used to break down the
calculated prices into
components.
 Like Material Cost ,
 Operation cost
 Surcharge on operation
It is the agreement of terms  Surcharge on material
related to the payment to  WIP transfer Cost
& from the business
 General Cost
partner.
 Not Applicable.
Financial Table Components

Purchase types Sales Types

 A purchase order  A Sales order
property that enables property that enables
you to identity the you to identity the
kind of purchase kind of Sales mode
mode and in this way, and in this way, the
the kind of payable. kind of Receivables.
This property is used This property is used
to post the purchase to post the sales to
to correct accounts. correct accounts.
ITEM GENERAL
 ITEM NAVIGATION

ITEM GENERAL

55
ITEM IS
M -140

56
 ITEM GENERAL DATA

ITEM GROUP:-
• Item Group is the group of items which have similar
characteristics.
• This is used in combination of item type to setup item
defaults & This is also used in integration of transaction
to finance.
ITEM TYPE:-

Item Type – allow you to classify parts so that they

possess certain attributes within BaaN. In addition we
have set up default data using the combination of item
type and item group.
Manufactured items are end products and sub
assemblies that have a BOM and a routing. You can
also purchase these items
Purchased items are purchased from an outside source
as components, raw materials or maintenance items.
They cannot have a BOM or a routing

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 ITEM GENERAL DATA

Generic items exist in multiple product variants and are non-

physical items. Before any manufacturing activities can be
performed on this item, it must be re-configured

Cost. A cost item is an administrative item which is used to post

extra costs to an order. Extra costs are freight, shipping and
handling charges, and so on.

Service represents services instead of goods

Subcontracting a subcontracting item is an administrative item

used for costs associated with purchasing a service.

List. List items may have multiple components. List items can be
Type, Kit, Menu or Options.

Engineering item - Under Development Items or corresponds

to drawings only (if it doesn’t concern to Physical Product)

UNIT SET:-
A group of unit codes that can be linked to standard or
customized items, or to item defaults. In a unit set, you can
indicate the physical quantities of measure that can be used for
the item, in which modules, and for what purposes.

INVENTORY UNIT:-
The unit in which the inventory of an item is recorded, for
example piece, kilogram, box of 12, or meters.
Inventory units are the base units for inventory management,
standard costing, production planning, and so on.

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Lot controlled:-

A number of items produced and stored together that are

identified by a (lot) code. Lots identify goods.

Serialized Item:-

A physical occurrence of a standard item that is given a unique

lifetime serial number. This enables tracking of the individual item
throughout its lifetime, for example, through the design,
production, testing, installation, and maintenance phases. A
serialized item can consist of other serialized components.
Examples of serialized items are cars (Vehicle Identification
Number), airplanes (tail numbers), PCs, and other electronic
equipment (serial numbers).

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Change Control

The change order that determines the item's effective date.

ERP cannot use the item before the effective date. The change
order is linked to the item in the Change Management module of
Data Management.

Change Management

•To control the item data and to control the effectivity dates of the
item's BOM data and routing data in Common Data.

By default, Common Data selects this check box if you selected

the Object Data Management (DM) check box in the
Implemented Software Components (tccom0100s000) session

Change Management

•Deals with the fundamental concept of change.

•This module controls the processes of product changes.

•Changes, in the real time scenario, the frequent upgrade and

customization of products--due to quality improvements, cost
reductions, manufacturing innovations, and customer satisfaction
issues--requires an accurate and foolproof method to manage
the change implementation process.

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Grouping Data

It is used for sorting and selection purpose

Product type
User-definable item grouping data that is used as a sorting and
selecting criterion. The product type is intended for classifying
items with similar characteristics for production purposes.

Product class
User-definable item grouping data that is used to distinguish
between different groups of items in a product line. The product
class is mainly used as a selection criterion for reporting.

Product line
A group of products made by the same producer, that are similar
but differ in details such as, size, shape, color, and so on. User-
definable item grouping data, mainly used as an item selection
criterion for reporting.

Commodity code
The codes that identify groups of items in order to collect and
report statistical data on the export and import of goods in the
countries of the European Union (EU). The reporting authorities
determine the commodity codes.

Signal
A warning message displayed when you enter or select an item
to which a signal code is linked. Item signals can also be used to
block the issue and/or requisition of items.

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Engineering item

•An item in the process of development.

•You can define multiple revisions of an engineering item.

Typically, the most recent revisions are still in a design or
test phase, another revision may have been taken into
production, and older revisions are obsolete.

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ITEM SUBENTTIES:-

1. SALES DATA
2. PRODUCTON DATA
3. COSTING DATA
4. WAREHOUSE DATA
5. PROJECT DATA
6. TOOL TYPE DATA
7. PURCHASE DATA
8. ORDERING DATA
9. PLANNING DATA
10. SERVICE DATA
11. FREIGHT DATA
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IF ITEM IS PURCHASED THEN WE MAINTAIN THE SUBENTTIES

1. ORDERING DATA
2. PURCHASE DATA
3. SALES DATA
4. COSTING DATA
5. WAREHOUSE DATA

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1. ITEM-ORDERING DATA

Order policy
• The order parameter that controls the way an item is
produced or ordered.
• This can be:
• Anonymous, the item is produced or purchased
independent of customer orders.
• To order, the item is produced or purchased only if
customer orders exist for the item.
Order system
The order parameter that controls the way by which
recommended purchase and production orders are
generated.
Options:
1. FAS (final assembly scheduling).
2. SIC (statistical inventory control).
3. Planned (schedule-based and order-based planning).
4. Manual (manual reordering).
Order method
The order parameter that controls the ordered quantities
of recommended purchase and production orders.
Options:
1. Lot for lot.
2. Economic order quantity.
3. Fixed order quantity.
4. Replenishment to maximum inventory.

WAREHOUSE IS
MANDATORY 65
Service Level [%]:-
The service level percentage determines to what extent the item
can be delivered directly from inventory. Example A service level
of 95% means that in 95% of all cases customer demand must be
satisfied by immediate delivery. In other words, 'no' is accepted in
5% of the cases. Note A service level of 100% is not
recommended, because it causes an infinitely high safety stock.

Safety stock
The buffer inventory necessary to meet fluctuations in demand
and delivery lead time. In general, safety stock is a quantity of
inventory planned to be in inventory to protect against fluctuations
in demand or supply. In the context of master production
scheduling, safety stock is the additional inventory and capacity
planned as protection against forecast errors and short-term
changes in the backlog.

Safety time
The time that you can add to the normal lead time to protect
delivery of goods against fluctuations in the lead time so that an
order can be completed before the order's real need date.

Order costs
The (administrative) costs for placing an order. Order costs include
the handling and transportation costs. The costs of the purchasing
department, production planning department, and control
department incurred by a production order or a purchase order.

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Number of Periods for Forecast:-
The number of days, weeks, or months (the selected period
type) in one period of the selected seasonal pattern.
The unit of time for the period in the selected seasonal pattern.

Seasonal pattern for safety stock and demand

The seasonal pattern indicates the (expected) fluctuations in
sales.
With seasonal pattern for safety stock you can prevent
capacity problems during sales peaks and reduce the risk of
obsolete inventory.
The safety stock is adjusted to the seasonal factor for the
current period. The adjustment in inventory is then added to
the reorder point. Capacity inventory can be built by using
systematic increasing the inventory.

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2. ITEM- PURCHASE DATA

Purchase unit
The unit in which you purchase an item, also referred to as the
purchase quantity unit.
Purchase price unit
The item unit in which an item's purchase price is expressed. This
unit can differ from the item's inventory unit.
Purchase Currency:-
The currency in which the item is purchased or subcontracted.
Note:- When the purchase currency is changed, the purchase
prices are recalculated automatically.
Purchase price
The price you pay for an item, expressed in the purchase
currency.
Tax code
A code that indentifies the tax rate and which determines how
Baan ERP calculates and registers tax amounts.
Price group
A group of items to which the same pricing characteristics apply.
Vendor Rating
If this check box is selected, the item is included at the time of
vendor rating processing.
Vendor rating
A classification of a supplier based on certain criteria. These
criteria can be based on deliveries (on time, sufficient quality, and
so on) as well as other factors.

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Statistics group
A group of items for which statistical information is collected and
represented.
Delivery date tolerance (-)
The number of days early that a supplier can make a delivery.
Delivery date tolerance (+)
The number of days late that a supplier can make a delivery.
Qty. Tolerance (-)
The percentage that the received quantity may be less than the ordered
quantity.
Qty. Tolerance (+)
The percentage that the received quantity may be more than the ordered
quantity.
Hard Stop on Date
The way in which ERP must react to a receipt that does not meet the time
tolerances.+
Hard Stop on Quantity:-
The way in which ERP must react to a receipt that does not meet the
quantity tolerances.
Supply time
The total time required to obtain a purchased item. This time includes
order document preparation, sourcing, and supplier lead time.
Warehouse
A place for storing goods. For each warehouse, you can enter address
data and data relating to its type.
Accessory
A list type that permits the definition of related inventory items or kits that
are offered to business partners when they order an end item.

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Manufacturer Part Number (MPN) : -

To support buying items from several approved manufacturers,

you can specify a number of manufacturers for an item, and
ensure that only approved manufacturers provide goods to your
company.
If this check box is selected, you can maintain alternative
manufacturers for an item - business partner combination.
If this check box is cleared, you can define only one manufacturer
for an item - business partner combination.
Alternative manufacturer items are mostly used by companies that
buy components that have similar or the same specifications or
quality, from various intermediate suppliers

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 4. ITEM- SALES DATA

Sales unit:- The unit in which an item is sold.

Commitment Policy:- Enables you to specify if the ordered quantity for the
item is allocated to the order during order entry. The values are:

• No: default value – indicates no commitments for the item

• Order Line Entry: The inventory is committed to the order during the line
entry.
• Batch: The commitment is not made until the Generate
• Inventory Commitment (whinp2200m000) session is executed.
• Manual: The order quantity is manually committed

Minimum Quantity to Commit :-

Minimum quantity that must be committed in case of a partial allocation.

If both the Minimum Quantity to Commit and the Minimum Rate for
Commitment fields have significant values, the quantity to be committed
is checked against both fields.

Direct delivery :-

The process in which a seller orders the sold goods from a buy-from
business partner, who must also deliver the goods directly to the sold-to
business partner. The goods are not delivered from your own
warehouse, so Warehouse Management is not involved.

A seller can decide for a direct delivery because:

• There is a shortage of available stock.
• The ordered quantity cannot be delivered in time.
• The ordered quantity cannot be transported by your company.

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Sales Price Unit:- The unit on which the sales price is based.

Sales Price Group:-A group of items with corresponding price

and discount agreements.

Statistics group:-

A group of items for which statistical information is collected

and represented.

Upper margin:-

The upper margin is the percentage that the actual sales

price is allowed to exceed the target price.

Lower margin:-

The lower margin is the percentage that the actual sales

price is allowed to be lower than the target price. If this
percentage is negative, the item can only be sold for a price
higher than the target price. This is the case when the target
price is the cost price.
Commission/rebate group

A set of items that is grouped and then linked to an

agreement.

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Over-Delivery

A positive deviation from the original ordered quantity. If this

check box is selected system allows for over delivery for this
particular item

Tolerance Type:-

This field indicates if the tolerance for the over delivery is

expressed either as a percentage or a quantity. You have the
following options:

Percentage:- The tolerance is represented as a percentage of

the order quantity.

Quantity:- The tolerance is a fixed quantity.

No:- No tolerance type is applicable, because the Allow Over

Deliveries check box is cleared.

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5. ITEM-COSTING DATA

Aggregated cost components:-

Cost Components provide the ability to categorize

production and material costs for an item.

Cost components are used to break down calculated prices

into components that are meaningful to the user.

Each item has three aggregated cost components that are

defined in the Items - Costing (ticpr0107m000)
session:

Material Cost :The costs of raw materials.

Operation:
The cost of operations and subcontracting for the
finished end item, and all the required subassemblies.

Aggregated Surcharge Cost Component: All item

surcharges and warehouse surcharges.

Cost Component Chart :-

For detailed reporting of cost accounts, you can define a

cost component chart and link various cost
components to the chart. The chart can then be
assigned to the item.

74
After the
calculation we
can see the cost
price

After the calculation we

can see the material cost, Click on save Then click on calculate
it is purchase price of
item. 75
 6. ITEM-WAREHOUSE DATA

In the Item warehousing data session you can define

warehouse related information.

Item Valuation group

Items can be linked to an Item Valuation Group to assign an

Inventory Valuation Method to the items belonging to the valuation
group.

Package definition

A particular configuration of items and their packaging. A package

definition for an item can, for example, be the following: a pallet
contains 12 boxes and each box contains 4 pieces.

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Inventory-carrying costs
• The costs for holding an item (per inventory unit) in inventory, including
costs for interest, storage space, and risk.

Shelf life
• The amount of time an item may be held in inventory without
deterioration in quality.

Slow-moving percentage
• The limit up to which an item is identified as a slow moving item.

Forecast method
A technique used to forecast the demand for items.
The following forecast methods are available:
1. Moving Average
2. Exponential Smoothing
3. Previous Year's Calculation
4. Last Period's Demand

Outbound Method
1.LIFO
Using the LIFO system for the demand of items, the inventory with the
latest inventory date will be the first inventory to be issued.
2.FIFO
Using the FIFO system for the demand of items, the inventory with the
earliest inventory date will be the first inventory to be issued.
3.By Location
Using the outbound system By Location for the demand of items, the
inventory will be issued from inventory based on the outbound priority
of the locations. The inventory date will not be taken into account.

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ABC code
A code that shows each item's contribution to the total inventory
turnover. A items are high-value items and C items constitute low
value.

Lot Price
If this check box is selected, the item's inventory is valued against
the lot price.

Serials in Inventory
If this check box is selected, the low volume scenario is used,
which means that serial numbers are individually stored in
inventory. You can view the serial numbers in inventory in the Item
- Serials and Warehouses (whltc5100m000) session.

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IF ITEM IS MANUFACTURED TYPE THEN WE MAINTAIN
THE PRODUCTION SUBENTTIES

79
ITEM –PRODUCTION DATA

Bill of material (BOM)

A list of all parts, raw materials, and subassemblies that go into a manufactured item and show the quantity of each of the parts required to make the item.
The BOM shows the single-level product structure of a manufactured item.
BOM quantity
The number of manufactured items to which a bill of materials (BOM) applies. The BOM quantity enables you to specify very small item quantities as BOM
components.
Example
You need very small amounts of certain colors to mix one liter of a specific paint, Cotton White. Therefore, a BOM quantity of 1000 liter is defined. The
component quantities for the paint can then be as follows:
Paint Cotton White, 1000 liter:White999 literYellow0.6 literRed0.2 literBlue0.2 liter Previously known as BOM unit.

SCRAP
Unusable material or rejects of
intermediate products, for example,
because of faulty components, or
products lost in cutting or sawing
operations. The gross material
requirements and/or an operation's input
quantity must be increased to account for
anticipated scrap.
Scrap can be defined as a percentage or
as a fixed quantity.
If scrap is defined as a percentage it is
called the scrap factor. It is defined with
the following formula:
Gross requirement = (scrap factor/100%
+ 1) x net quantity

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Routing
The sequence of operations required to manufacture an item.
For each operation, the task, machine, and work center are specified, as well as information about setup time and cycle time.

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Backflushing
If you do not want to record every issue of a material or every spent production hour individually, you can apply backflushing instead. This saves time,
but some precision is lost.
Backflush Materials
If this check box is selected, you can backflush the material that is required to produce the item.
Backflush Hours
If this check box is selected, you can backflush the hours spent to manufacture the item to a backflush employee.

82
THEN LINK THE ITEM TO WAREHOUSE

83
WAREHOUSE ITEM
84
Here we define the warehouse
in which we want to stock the
item

Here we define the item for link to warehouse

85
Here we click on any one INVENTORY
VALUATION METHOD according to
define policy of organization for know
the warehouse stock inventory value.

86
Thank You
Business Partner
Menu Browser  Common  General
Data
Role of Business Partner

Roles of a Business partner can classified into two types

•Supplier
•Customer
•Both

Role of Supplier and Customer can further be divided into various roles

Customer
Supplier

COMPANY
Roles of supplier

 Buy From :- Consist the details of the supplier from whom the
customer will going to buy the goods

 Ship From:- Consist of the details of the location from where the
customer will going to pick the goods

 Invoice From:- Consists of the details of the supplier office which

will going to raise the invoices

 Pay To:- It consist of the details supplier to whom customer will

going to pay the amount
Roles of the Customers

Sold To:- It consist of the details of customer to whom

supplier is selling the goods

ShipTo:- It consist of the details of the location of the

customer where supplier has to ship the goods

Invoice To:- It consist of the details of the customer to whom

supplier has to send the invoice

PayFrom:- It consist of the details of the customer from

whom supplier will receive the payments
Taxation
Introduction

A Duty Levy by government on a product, income, or activity

 Localisation

Service

Custom
Break Down Of Tax
Procedure
Purchase Cycle
 Purchase Cycle

er
pp li
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g
icin

oV
v o
e In
has

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PO
Pu

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s
cha Rele
o pur ase
To
T War
nd
Se eho
use
Purchase
Approval Process Approving Department
Requisition
SALES CYCLE
 SALES ACTIVITIES

PRE SALES SALES POST SALES

SALES PROCESS

GPD
Central Invoicing
Menu Browser  Central Invoicing  Processing
of Invoices  Billing Requests
Steps of Invoicing

 Once the Material has been shipped

from warehouse the order is released
to invoicing.
 Under Central Invoicing in processing
of invoices we access billing requests
& create a new request.
 Defining the billing request template,
billing request addition, B.P. & order
no. we generate the final invoice.
 Final step is to compose/print/post
invoice to financial accounting.
Warehouse
A warehouse is a place where inventory are store.
Warehouses are used by manufacturers, importers,
exporters, wholesalers, transport businesses,
customs and many more…

Purchased and produced inventories can be stored

in warehouses. These goods are retrieved from the
warehouse later on for production, sales, service or
transport to another warehouse.
 Use of Warehouse

Inward Transaction Outward Transaction

Warehouse Type
Warehouse classification on basis of
Excise

se
W a r eh ou
Excise working w.r.t
Warehouse
Warehouse
Management
Master Data
 Warehouse Order
Sales Shipment

Sales Order
Delivery Customer
Warehouse

Purchase
Shipment

Purchase
Order
Warehouse Supplier
Production Raw Material Finished
Product

Production
Order Warehouse Production
Dept.

Transfer
Transferable
Goods

Warehouse 1 Warehouse 2
 Shipment Process

Shipment freeze Shipment Confirm

Shipment
Detail Good Pass
Documents
Pricing/Discounting/
Promotion
What is an Implication of
Pricing/Discounting/Promotion

 Itis useful in assigning the particular

Price/Discount/Promotion on the basis of
certain criterion
 This helps in picking the particular
Price/Discount/Promotion while booking
sales/purchase order
STEPS OF PRICING /
DISCOUNTING
 Maintain the Matrix Definitions
 Maintain the Matrix Sequence
 Maintain Price Book Code/Maintain
Discount Schedule Code/Promotion Code
 Maintain Price Book/Maintain Discount
Schedule/Promotion Code
 Maintain Price Matrices/Maintain Discount
Matrices/Promotion Code
Matrix
 Matrix Definitions
definition codes defines the group of
element (Matrix Attributes) that a pricing control
matrix uses to determine a price/discount
For e.g.:- suppose mobile manufacturing co.
decides to maintain sales price on two elements
1)The specific item it sells.
2)The B.P. channel through which it sells.
Then Matrix Type is Sales Price, The Matrix
Definition is Mobile and Matrix Attribute will be
Item and Chanel.
Price Book Codes/Price Book

 Price book codes are used to identify

Price Book
 Price book

It is the place where we can store

 The base sales price
 The base purchase price
 The price unit for item

Prices are defined by currency and valid

for limited time.
Price Matrices

 InPrice Matrices we define the

Matrix Type, Matrix definitions.
 We link the Price Matrices with
the Price book
 Lastly,we maintain the
Attributes.
Order System
 Order System

Lot for Lot EOQ Replenishment Fix Order

to Max. Qty
Order System


is where item is ordered
Lot for Lot:
as per predefined quantity.


is calculated taking in
EOQ:
consideration the Annual
Requirement(R), Cost of Placing
(Cp) order, Cost of holding
(Ch)item.
Order System

is where the order is placed
Replenishment to Max:
of the difference amount of max. order
level & current level.


is where a prefixed amount is
Fix Order Qty:
ordered & not guided by the requirement.
Thank You.