7058 TSCM 50 2 parte (6 11)

E-MSG

MÁSTER EN SOFTWARE DE GESTIÓN DE EMPRESA
SAP R/3

2003-2004
Certificación MM (7058)
Juan Carlos Sarrasi-Xavier Rovira
TSCM 50-2ª parte (6-11)

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Planning Run

Executing the planning run

Planning file

Control parameters for materials planning

Contents

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Distinguish between the various planning run
types and creation indicators for the MRP run

Explain other important factors influencing the
MRP run

Carry out MRP as single-item planning

At the conclusion of this unit, you will be able to:

Planning Run: Unit Objectives

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Planning Run: Overview Diagram

Planning Run

Planning Prerequisites

Lot-Size Calculation

Planning Result and Evaluation

Reorder Point Planning

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Executing the Planning Run

Requirements planning for a plant - background

processing (total planning)

Planning run for one plant - online (total planning)

Planning run for one material - online

(single-item planning)

Plant

Material

Plant

The scope of planning enables materials requirements
planning across plants or for each MRP area

You can carry out the planning run as a total planning run for one specific plant. With this procedure,
all the materials that are relevant for planning for a particular plant are planned. It includes BOM
explosion for BOM materials.

The total planning run can be carried out online or in the background processing mode. If you want
to execute the total planning for several plants and/or MRP areas, use the scope of planning function.
You define a scope of planning in Customizing, by specifying its plant and MRP area.

You can carry out the requirements planning run as single-item planning for an individual material.
In this case, the planning run is carried out for one particular material either single or multi-level. In
single-level, single-item planning, the system only plans the BOM level of the selected material. In
multi-level, single-item planning, the system plans the level of the selected material plus all the
lower BOM levels.

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Planning File Entry

Customizing

Material master record

Materials planning
Plant 1000

Active
X

Material 1, Plant 1000
MRP type VB

Planning file entry

Low-level
code

Material

Plant

NETCH

NETPL

...

005

...

1000

MRP-relevant
change

MRP-relevant
change in
planning horizon

Material

The planning file contains entries for all the materials in a plant relevant to planning, provided that
MRP is activated for the plant.

The planning file controls the planning run and the scope of the planning.

When a change relevant to planning (for example, creation of a purchase order) occurs, a change
indicator is set in the planning file for the respective entry (file entry NETCH). When a change
relevant to planning occurs within the planning horizon, another change indicator is set (file entry
NETPL).

In Customizing, you can define the planning horizon as a plant parameter or as a MRP group
parameter.

Changes relevant to planning can be:

- Changes involving stocks, provided they change the stock/requirements situation of the

material.

- The addition of purchase requisitions, purchase orders, planned orders, sales requirements,

forecast requirements, dependent requirements, or reservations.

- Changes to fields relevant to planning of these goods receipts or issues, or of the material

master record.

- The deletion of goods receipts or goods issues.

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Planning Run Types

NEUPL - Regenerative planning

NETCH - Net change planning

NETPL - Net change planning in the planning horizon

Planning file entry

Low-level
code

Material Plant

...

005

...

1000

Planning file entry

Low-level
code

Material Plant

005

...

1000

Planning file entry

Low-level
code

Material

Plant

005

...

1000

NETCH

...

NETPL

...

Requirements planning can be carried out for various numbers of materials. The planning run type
controls the scope of the materials to be planned. You can specify the planning run type in the
Processing key field on the initial screen.

The following types of MRP runs are possible:

- Regenerative planning (processing key NEUPL): The system plans all materials that are

included in the planning file, irrespective of all indicators.

- Net change planning (processing key NETCH): The system only plans those materials that are

provided with the change indicator NETCH.

- Net change planning in the short-term planning horizon (processing key NETPL): The system

only plans those materials provided with the change indicator NETPL.

On completion of the planning run, the appropriate indicator is automatically deleted in the planning
file:

- The system deletes the total change indicator and the net change indicator for a regenerative

planning run and a net change planning run.

- The system only deletes the net change planning indicator for a net change planning run in the

planning horizon.

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Planning in the Planning Horizon

NETPL:
Material is planned

Planning horizon

Time

Planning horizon

!!!

Time

NETPL:
Material is
not planned

Today

In order to accelerate planning, it can be limited to a certain planning horizon. Only those
requirements that are within the planning horizon are covered by receipts.

As time passes, requirements can occur in the planning horizon that have not yet been covered by
receipts. If no other changes relevant to planning occur, these requirements will only be covered
during the next planning run over the entire time frame. This is why this kind of planning run should
be carried out on a regular basis.

In Customizing, the planning horizon is defined as a plant or MRP group parameter.

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Control Parameters Materials Planning

Processing key

NEUPL

NETCH

NETPL

Create purchase
requisition

1
2
3

in the opening period

Schedule lines

1
2
3

in the opening period

Create MRP list

1
2
3

only if exception message

no MRP list

Planning mode

1
2
3

New BOM and routing

Delete planning data

Adjust data

basic

When starting the planning run, specify the following control parameters for materials planning:

- Processing key: Determine the planning type as regenerative planning or net change planning in the

complete horizon, or limited in the planning horizon.

The

Create purchase requisition and Schedule lines indicators are only relevant for externally-

procured materials. You can determine if and when purchase requisitions and schedule lines are
required as a result of the planning run.

- You can also determine whether the planning run is to create MRP lists. It is therefore possible to

create MRP lists depending on whether certain exception messages appear. (You can define the
exception messages that mean a MRP list will be created in the Customizing step Define and Group
Exception Messages).

- Finally, determine with the planning mode, whether the existing planning just needs to be adjusted,

or whether BOMs and routings need to be exploded again, or whether the planning should be
recreated from scratch.

The creation indicators for purchase requisitions, schedule lines and MRP lists can also be set in the
MRP group. The materials assigned to this MRP group are planned accordingly in the total planning
run.

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Plant Parameters / MRP Group Parameters

Plant

Indicator for schedule lines

Purchasing processing time

Rescheduling horizon

Planning horizon

Available stock

Number ranges and item numbers

Opening period

...

MRP group

Plant

Creation indicator

Rescheduling horizon

Planning horizon

...

Plant parameters are control parameters for material requirements planning and are defined in
Customizing for each plant.

The MRP group is an organizational object used to allocate certain control parameters for MRP to a
group of materials. If your company requires more detailed control of the planning for each plant and
you want to allocate control parameters to certain material groups that are different from the plant
definition, you can maintain MRP groups and MRP group parameters in Customizing.

You can allocate the MRP group in the material master record.

If an MRP group was allocated to a material type, it will be the default in the material master record.

In total planning, the system checks for each material whether the material was allocated a MRP
group:

- If no MRP group is allocated to the material, it is planned using plant parameters.

- If a MRP group is allocated to the material, it is planned using MRP group parameters.

In single-item planning, the parameters entered in the entry screen are always used for planning.

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MRP group

Material

Material master

Material 002

Material 001

...

Plant parameters

Priority

Settings in Materials Planning

The Customizing settings for the requirements planning are basically controlled on three levels:

Material

master,

- MRP group (Customizing step Carry Out Overall Maintenance of MRP Groups),

- Plant parameters (Customizing step Carry Out Overall Maintenance of Plant Parameters),

The MRP group is an organizational object that is used to allocate certain control parameters for
MRP to a group of materials. This includes the creation indicator for purchase requisitions, schedule
lines, the planning horizon and so on. In Customizing, define the MRP group with these specific
control parameters and assign the material in the material master record (MRP 1 view) to the
corresponding MRP group.

If a setting is possible on several levels, the setting in the material master takes priority over the
setting in the MRP group that the material is assigned to. The setting in the MRP group therefore
takes priority over the setting in the plant parameters.

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Two main options are available for carrying out
material requirements planning: Total planning
online or in background mode for all materials in
a plant that are relevant to planning, or single-
item planning for an individual material.

MRP is based on entries in the planning file.

You can limit the number of materials relevant to
planning by defining the planning run type.

Creation indicators determine the result of the
planning run.

Planning Run: Summary

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Planning Run

Exercises

Unit: Planning Run
Topic: Execute Materials Requirements Planning

At the conclusion of these exercises, you will be able to:
• Display the planning file table
• Carry out requirements planning as single-item planning

You need to consider how the planning run is to be executed, how
the number of materials to be planned can be limited
appropriately and what the result of the planning run should be.

1-1

Display the planning file entry for your material T-RAZ## in plant 1000.
1-1-1 Which low-level code is your material allocated to?

____________________

1-1-2 Which planning indicators are set for your material?

____________________

1-2

Carry out single-item planning for your material T-RAZ## in plant 1000.
1-2-1 Choose the planning procedure Net change for total horizon. Which

processing key do you use? ____________________

1-2-2 Make sure that the requirements planning run creates planned orders. Which

creation indicator do you use for purchase requisitions?
____________________

1-2-3 The result of the planning run should be displayed immediately. Set the

Display results indicator. Start the planning run.

1-2-4 Then check the planning result. Did the system create a planned order for

your material? ____________
How do you explain the receipt quantity of the planned order?
_______________________________________________
Save your planning result.

1-3

Display the planning file entry for your material T-RAZ## in plant 1000. Which
planning indicators are set for your material?
_______________________________

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1-4

Display the MRP data for your material T-RAZ## in the material master record.
1-4-1 Which MRP group is allocated to your material? ____________________
1-4-2 Where does this allocation come from?
__________________________________________________

1-5

Display the control parameters for the MRP group of your material in plant 1000. In
Customizing, choose Carry Out Overall Maintenance of MRP Groups. Which
planning horizon is specified for the MRP group of your material in plant 1000?
____________________

1-6

Display the control parameters for plant 1000. In Customizing, choose Carry Out
Overall Maintenance of Plant Parameters.
1-6-1 Which planning horizon is defined for plant 1000? ____________________
1-6-2 Which planning horizon is relevant for planning the material

T-RAZ## and why?

__________________________________________________

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Planning Run

Solutions

Unit: Planning Run
Topic: Execute Materials Requirements Planning

1-1

Menu path:

Logistics

→ Materials Management → Materials Requirements Planning (MRP) →

MRP

→ Planning → Planning File Entry → Display

1-1-1 MRP

level:

Your material has MRP level 999.

1-1-2 Planning

indicator:

The NETCH and NETPL indicators are set.

1-2 Menu

path:

Logistics

→ Materials Management → Materials Requirements Planning (MRP)

→ MRP → Planning → Single-Item, Single-Level

1-2-1 Processing

key:

Use the NETCH key.

1-2-2 Creation

indicator:

Enter value 3 for the

Create purchase requisitions indicator.

1-2-3

1-2-4

Planned order created: Yes.

Explanation of receipt quantity: In the material master, 500 pc. is entered as the fixed
lot-size.

1-3

Indicators for your material: No indicators are set.

1-4

path:

Logistics

→ Materials Management → Material Master → Material → Display

1-4-1

MRP group in the material: The material is assigned to MRP group 0000.

1-4-2

This assignment depends if the material type of your material is

raw material and can

be set in Customizing. Menu path for this setting:

Customizing

menu:

Materials Management

→ Consumption-Based Planning → MRP

Groups

→ Define MRP Group for Each Material Type

1-5 Customizing

menu:

Materials Management

→ Consumption-Based Planning → MRP Groups

→ Carry Out Overall Maintenance of MRP Groups (for plant 1000, choose Maintain and specify
the MRP group).

Planning horizon for MRP group 0000: No planning horizon is set for this MRP group.

1-6 Customizing

menu:

Materials Management

→ Consumption-Based Planning → Plant

Parameters

→ Maintain all plant parameters (choose Maintain and specify plant 1000)

1-6-1

Planning horizon for plant 1000:

100 workdays is entered.

1-6-2

Relevant planning horizon: The planning horizon determined at plant level is valid, as
no horizon is determined in the MRP group.

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Reorder Point Planning

Exercises

Unit: Reorder Point Planning
Topic: Evaluation of MRP

At the conclusion of these exercises, you will be able to:
• Understand the result of the planning run for the reorder point

planning.

Your material was planned with manual reorder point planning.
Check the results of the planning run.

1-1

In Customizing, display the plant parameters for plant 1000. Determine the
purchasing department processing time. Purchasing department processing
time:___________________________________

Is the purchasing department processing time determined on a workday basis or on
a calendar day basis?_______________________________________________

1-2

Display the MRP list for your material T-RAZ## in plant 1000.
1-2-1 Determine the values in the list header for the following material master

fields:

Reorder point:

____________________

Safety stock:

____________________

Planned delivery time: ____________________

GR processing time:

____________________

MRP type:

____________________

1-2-2 What is the availability date of your purchase requisition?

_______________________________________
How is this date calculated?
_______________________________________________

1-3

Double-click on the MRP type field in the list header, to display the settings of the
MRP type in Customizing. Are external requirements considered in the net
requirements calculation for this material? _______________

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Reorder Point Planning

Solutions

Unit: Reorder Point Planning
Topic: Evaluation of MRP

1-1

Customizing menu:

Materials Management

→ Consumption-Based Planning → Plant

Parameters

→ Carry Out Overall Maintenance of Plant Parameters (choose Maintain and

specify plant 1000; the purchasing department is under External procurement.)

Purchasing department processing time: 1 workday.

1-2

1-2-1 Reorder

point:

50 (pieces)

Safety stock:

0 (pieces)

Planned delivery time:

2 (calendar days)

GR processing time:

0 (workdays)

MRP type:

VB (manual reorder point planning)

1-2-2

Availability date of the purchase requisition: Varied.

The availability date results from the sum of purchasing department processing time,
planned delivery time and GR processing time. Forward scheduling is used in reorder
point planning.

1-3

External requirements considered: No, they are not considered.

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MRP list and current stock/requirements list

Exception messages

Converting planned orders

Contents

Planning Result and Evaluation

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Distinguish between the various functions for
evaluating the planning result and use them

Explain the meaning of exception messages

Convert planned orders into purchase
requisitions

At the conclusion of this unit, you will be able to:

Planning Result and Evaluation: Unit Objectives

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Planning Result and Evaluation: Overview Diagram

Planning Run

Planning Prerequisites

Lot-Size Calculation

Planning Result and Evaluation

Reorder Point Planning

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Process of Consumption-Based Planning

Requirements

planning

Net requirements

calculation

Lot-size calculation

Scheduling

Material master

Forecast

Material

Inventory Management

Purchasing

Define procurement

B C

The main function of requirements planning is to determine material availability, in other words,
what amount of which material is needed on which date.

Net requirements calculation is carried out by the system at plant (or MRP) level during the planning
run, as part of MRP. The system checks whether the requirements can be covered by the available
warehouse stock and planned receipts. If material shortage occurs, the system calculates the shortage
quantity and creates an order proposal.

Lot-size calculation is carried out as part of requirements planning, according to the lot-size
calculation procedure determined in the material master.

When the system creates an order proposal, it checks to see whether the receipt is to be made via in-
house production or external procurement. This is defined per material by the procurement type and,
if necessary, the special procurement type.

The procurement type is preset by the material type in Customizing for the material master.

You use the special procurement type to define 'in-house production' or 'external procurement' in
more detail.

In scheduling, the system calculates the start and finish dates of the procurement elements for in-
house produced or externally-procured materials. When scheduling externally-procured materials,
the following times are taken into account: purchasing department processing time, planned delivery
time, goods receipt processing time.

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Planning Result

Planning

file entry

Planning run

Procurement

proposal

MRP

lists

The creation indicator controls the creation of planned orders or purchase requisitions, schedule
lines, and MRP lists.

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Planned orders
Purchase requisitions
Production orders
Purchase orders

Plant stock/
Storage location stock
Sales orders
Planned ind. reqs

current

Stock / Requirements List and MRP List

Planning

run

General structure

Sele

ion tree

Variable
header

MRP

elements

...

Current stock/

reqmnts list

MRP list

You can evaluate the planning situation or the result of a planning run, by using the current
stock/requirements list or the MRP list. You can use either individual or collective access.

The current stock/requirements list is a dynamic list: It shows the present stock, requirements and
receipts situation. Changes become obvious as soon as you call the current stock/requirements list, or
choose Refresh to read the elements from the database in the display of the stock/requirements list.

The MRP lists shows the result of the most recent planning run and is therefore static: Changes made
after the planning run are not shown. You can decide in the planning run, whether a MRP list is to be
created.

The basic structure of both lists is the same:

- Links (optional) are in the form of a tree in the MRP controller's worklist.

- At the top of the list is the header with the material number. The header details display more

information.

- The list itself contains the individual MRP elements and the corresponding available quantities.

With the user-specific settings, you can adjust both lists to your personal needs (see Customizing:
Evaluation of Requirements Planning, Configure MRP List / Stock/Requirements List). You can use a
customer exit to show additional data that you can then call using a function key (see Customizing,
Customer exit: Program additional columns).

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Layout and Functions of the MRP Lists

Material memo

Find

Stock statistics

Display

Change

Convert

Pegged reqmnt

Order report

Variable header

Planning segments

Receipts

Reqmnts

Material master data

Stocks

Consumption values

Header data

Actions for MRP element

Process

Period totals

Requirements
grouping

Variable date display

Display

user-specific

The individual lists (current stock/requirements lists and MRP lists) have many display options
available: You can display various dates (availability date or the goods receipt date, with or without
safety time), you can use filters, you can work in the period totals display and much more. You can
define the display accordingly in your personal settings.

The 'period totals' is a display variant, where the planning results are periodically summarized. The
individual periodicities are displayed in the period totals display on various tab pages.

You can process individual MRP elements from the list. As well as the standard functions, user-
specific defined functions are also available, via the 'navigation profile' and personal favorites.

The header details show an overview of master and transaction data for each material. This data is
grouped together according to topic in individual screens. The MRP type controls which screens are
displayed in the requirements planning evaluations. For this, the screen sequences have a key that is
then assigned to the MRP type. It is therefore possible to display master data for the evaluation of
consumption-based materials that is different to that displayed for MRP planned materials.

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Collective Access to Current Stock/

Requirements List

Overview of materials

Select materials
Resources:
- Traffic lights

- Sort
- Find
- in the overview
- in the individual
lists

Overview of materials

Select materials
Resources:
- Traffic lights

- Sort
- Find
- in the overview
- in the individual
lists

Current
stock/
requirements
lists

Process

Selection by

Product group
Class
MRP controller
Supplier

- Purchase orders/
SA schedule lines
- Purchase requisitions

Production line

- Production orders
- Planned orders

Further limitation by

Material data

Planning file entries

Selection by

Product group
Class
MRP controller
Supplier

- Purchase orders/
SA schedule lines
- Purchase requisitions

Production line

- Production orders
- Planned orders

Further limitation by

Material data

Planning file entries

Lists already

structured?

Collective access to the current stock/requirements list is possible with many selection criteria. For
example, you can display all lists for which you are responsible (as MRP controller).

Firstly, a material overview is displayed with all selected materials. If you accessed with the Set up
lists in background indicator, this orientation help is available: Traffic lights (you can determine the
criteria for the display), diverse search functions in the overview and in the individual lists, sort
function (also for individual customer segments according to date or number). With the search
function, it is possible to specifically select materials according to particular exception messages.

From the overview, goto the individual lists and process the materials there. If, for example, you
have used the search function to select several lists for processing, you can go from one list directly
into the next selected list.

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Collective Access to MRP Lists

Overview of materials

Select materials
Resources:
- Traffic lights
- Processing indicator
- New exceptions

- Sort
- Find
- in the overview
- in the individual
lists

Overview of materials

Select materials
Resources:
- Traffic lights
- Processing indicator
- New exceptions

- Sort
- Find
- in the overview
- in the individual
lists

MRP list

Process

Selection by

MRP controller
Product group

Further limitation by

MRP date

Processing date
Days' supplies
Exception groups
Processing indicator
Material data

Selection by

MRP controller
Product group

Further limitation by

MRP date

Processing date
Days' supplies
Exception groups
Processing indicator
Material data

The selection criteria for collective access in the MRP lists are not the same as those in the current
stock/requirements lists. Here, for example, the MRP or processing date and/or the processing
indicator for the selection are available.

The orientation guides in the material overview correspond with the current stock/requirements list.
It is also possible to search for processing indicators or new exceptions.

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Material Tree

Tr.light Mat.no.

P-100
100-100

100-200
100-300

...

Worklist

tree

... all materials in the

current session ...

Order tree

... all materials

of an order ...

Product group

tree

... all materials of a

product group ...

In selection and sequence

configurable

Configurable in selection

and sequence

Displaying the material tree is optional (this can be set in the user settings). Press the Material tree
button.

You can change the layout of the tree and display the following:

- Worklist tree: all materials in the current session are displayed (more so when the initial access is

via collective access).

- Order tree: all components and assemblies of a selected MRP element are displayed according to

the order report.

- Product groups tree: all materials of a product group (only if using collective access via a product

group) are displayed.

By double-clicking on a material in the tree, the corresponding material is displayed.

For the worklist tree and product group tree, you can set which fields are to be displayed in which
order (from the menu Settings). User-defined groupings can be shown according to processing
indicators, for example.

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Navigation Profile

List

Details of element

Navigation profile

General transaction calls

Transaction calls per
MRP element

Context-

sensitive

Context-

sensitive

...

Own favorites

A navigation profile contains transaction calls for transactions that can be called directly from the
current stock/requirements list, or the MRP list. The transactions are either general (actions on a
material level) or they refer to a particular MRP element.

A navigation profile is defined in Customizing Define navigation profiles, and the user is assigned to
a profile in the user-specific settings (on the General Settings tab page).

In a navigation profile, you can determine any number of transaction calls. The list display is limited
to five general transaction calls and two transaction calls for each MRP element. However, the first
five or first two transaction calls relevant for the particular context are shown.

You can preassign three parameters for each transaction call for the initial screen of this transaction.
You can also link the transaction to particular parameters from the material master: Procurement
type, material type, MRP group, MRP type.

A function similar to the navigation profiles is available with the selection of personal favorites,
where you can also activate up to five general transaction calls (choose Environment - Own
favorites).

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Exception Messages

Exceptions may indicate the following:

New order proposals created by MRP
Dates in the past (start date, finish date or opening date)
Problems during BOM explosion
Problems during scheduling
Rescheduling

Priority: Determines which exception message is displayed in the MRP list if
several exceptions were created during the planning run for an MRP element.
Creation of a MRP list, depending on the exception messages that appeared.

Various exception messages are grouped together for selection.

In Customizing, you can make the following settings:

Exception messages depend on the procedure and indicate exceptional situations that have to be
considered (for example, start date in the past, stock level falling below safety stock).

Exception messages occur during the planning run, in situations that need to be checked by the MRP
controller. In most cases, you will need to manually process the planning result.

Exception messages are used to control the planning results. The MRP controller is able to select
materials from the planning result that have to be processed manually.

Exception messages refer to an individual MRP element.

In Customizing, you can define

- Whether an exception message should be created

- The priority of the exception messages, if several exception messages were created during the

planning run for an MRP element

- Which exception messages are to be grouped together into an exception group

- Which exception messages lead to the creation of a MRP list if you set the creation indicator

Create MRP list depending on exception messages.

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Customizing of the Evaluations

Task function

Customizing

Planning run and revision

Specific period splits

Receipt elements for calculation

Screen sequence

Create?

Priority

Allocation to

selection group

Create MRP list?

Exception

messages

Define navigation profile

MRP list / Current

stock/requirements list:

Display period totals

Display receipt days' supply

Display extended header

Display additional

transactions

During the planning run, exception messages occur in situations that need to be checked by the MRP
controller. According to the message groups defined in Customizing, you can carry out the
processing in the collective display of the MRP list(s).

The SAP standard system displays the period totals with the period splits represented on a standard,
daily, weekly, and monthly basis. You can define new period splits.

The receipt days' supply indicates how many days the stock will last. This includes the current plant
stock and the specified receipt elements.

The extended header displays master and transaction data for the respective material. This data is
grouped together into individual screens. You can define screen sequences and allocate them to the
MRP types.

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Converting a Planned Order

Purchase
requisition

Production
order

Collective conversion

Plant

MRP controller

Opening date

Procurement type

Planned order

Plant

Material

Amount/Date

Procurement type

Firming

X Material 1
. . .
X

Conversion

Production

MRP

Purchasing

A planned order is an internal document used by the MRP controller, specifying how much of a
certain material is needed when. A planned order is only used within the company and it is not
binding. The planned order is used to identify how the required material is to be procured.

Planned orders are generally created automatically during a planning run.

For in-house production, the planned order can be converted into a production order. For external
procurement, the planned order can be converted into a purchase requisition.

You have two ways of converting the planned orders into purchase requisitions:

- Individual conversion

- Collective conversion

In collective conversion, you can select specific planned orders that have a start date within the
opening horizon.

The opening horizon is the time available for the MRP controller to convert a planned order into a
purchase requisition or a production order. The horizon key in the material master record controls the
opening horizon.

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Using various functions, it is possible to have an
individual or collective evaluation of the planning
result.

Exception messages indicate particularly critical
situations. Manual processing is necessary in
such cases.

A planned order is an internal order proposal for
both in-house and external procurement. The
planned order has to be converted into a purchase
requisition or a production order at a later date.

Planning Result and Evaluation: Summary

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SAP AG 2002

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SAP AG 2002

Course: Purchasing Details and Optimization

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

SAP AG 1999

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:

Course Overview

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SAP AG 2002

Course Goals

Recognize the various options for optimizing and
simplifying processes in purchasing, and their
prerequisites.

Outline additional special functions in purchasing.

This course will prepare you to:

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Course Objectives (1)

Recognize that master records contain default
values that simplify purchasing operations.

Create different types of info records and
contracts.

Describe the special advantages of working with
scheduling agreements.

Create source lists and quota arrangements and
execute the process of automatic source
determination.

At the conclusion of this course, you will be able to:

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Use the optimized purchasing functions

Demonstrate the release (approval) procedure for
requisitions and external purchasing documents

Purchasing Details and Optimization:

Course Objectives (2)

At the conclusion of this course, you will be able to:

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SAP AG 2002

Purchasing Details and Optimization:

Course Content

Unit 1 Master Data for Purchasing

Unit 2 Sources of Supply 1: Info

Records

Unit 3 Sources of Supply 2: Outline

Purchase Agreements

Unit 4 Source Determination

Unit 5 Optimized Purchasing

Unit 6 Document Release

(Approval) Procedure

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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Purchasing Details and Optimization: Course

Overview Diagram

Master Data for

Purchasing

Sources of Supply 1:

Info Records

Sources of Supply 2:

Outline Purchase Agreements

Source Determination

Optimized Purchasing

Document Release

(Approval) Procedure

Purchasing

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SAP AG 2002

Your organization would like to generate purchase
orders and other external purchasing documents
from requisitions with as much system support as
possible. You’d want to optimize your purchasing
processes.

This includes starting with a requisition,
determining and assigning sources, generating
purchase orders, contracts or scheduling
agreements, approving the documents (if
necessary) and evaluating your vendors.

Main Business Scenario

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SAP AG 2002

PReq.

Material
Quantity
Deliv. date

(Source)

Materials

planning

User dept.

Conversion

Approval of

requisition

Pur. order

Vendor
Material
Quantity
Delivery date

Price

Source of supply

Info

record

Contract

item

Scheduling

agmt. item

Automatic

source

determin-

ation

Source list

Quota

arrangement

Vendor

evaluation

Pur. order

Transmission

to vendor

Approval of

purchase order

Optimized Purchasing

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Master Data for Purchasing

Material Master Records

Vendor Master Records

Contents:

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Master Data for Purchasing: Unit Objectives

Explain that material master records contain
default values that simplify purchasing
processes.

Recognize that material and vendor master
records contain important control parameters
for optimized purchasing.

At the conclusion of this unit, you will be able to:

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Master Data for Purchasing: Overview Diagram

Master Data for

Purchasing

Sources of Supply 1:

Info Records

Sources of Supply 2:

Outline Purchase Agreements

Source Determination

Optimized Purchasing

Document Release

(Approval) Procedure

Purchasing

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Master Data for Purchasing: Business Scenario

In order to streamline your purchasing operations
and permit the use of optimization functions, you
decide to create master records for your most
frequently used vendors and materials. You also
want to do this for those materials you do not
stock, or cannot keep in stock, as well as simple
services.

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Optimized purchasing

Material

Plant

Purchasing data

Order unit
Tolerances
Reminder levels
...

Purchasing group
PO text
...

Info rec.

Pur. order

Automatic PO
Source list require-
ment
Quota arrangement
usage

Pc.

Conditions

Pc.

Conditions

Purchasing Data in the Material Master Record

Material master records contain descriptions of all the articles and parts that an enterprise procures,
manufactures or stores. To the enterprise, the material master record represents the central source of
information on a specific material. It is used by all components of SAP Logistics.

All the information necessary for the administration of a material is stored in its master record. Since
different user departments of an enterprise work with a material, and each one needs to store
different information relating to it, the material master record contains separate data blocks for each
department. Each department has its own view of a material master record and is responsible for the
correctness of the data within its block.

From the Purchasing view, a material master record has the organizational levels client and plant. At
client level, you can specify the purchase order unit, under- and over-delivery tolerances, and
reminder levels.

The Source list requirement, Quota arrangement usage, and Automatic PO allowed indicators are set
at plant level.

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SAP AG 2002

Material

Material type: NLAG

Basic data
Purchasing
Materials planning
Sales/distribution

Material type: DIEN

Basic data
Purchasing
Materials planning
Sales/distribution
Accounting

Optimized

purchasing

Optimized

purchasing

Master Record for Consumable Material

When you create a material master record, you must assign the material to a material type. The
material type defines certain attributes of the material and has important control functions.

For example, the material type defines the procurement type for a material. The procurement type
indicates whether the material is produced in-house, procured externally, or both.

Together with the plant, the material type determines the inventory management requirement for a
material. It determines:

Whether changes in quantities are updated in the material master record.

Whether changes in the value of the material are also updated in the stock accounts of Financial

Accounting.

Furthermore, the material type determines which accounts are to be posted when a material enters or
leaves the warehouse or store.

The standard material types NLAG and DIEN are available for materials that cannot be stored (kept
in stock) and for simple services, as follows:

NLAG: Non-stock material is material that is not stored but is used or consumed immediately.

DIEN: Services are procured externally. Since they obviously cannot be stored, they are also
regarded as being consumed immediately. A material master record belonging to this material type
can contain purchasing data.

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SAP AG 2002

Optimized purchasing

Purchasing data

PO currency
Terms of payment
Incoterms

...

Automatic PO

...

Info rec.

Pur. order

Pc.

Conditions

Pc.

Conditions

Purchasing

organization

Vendor

Purchasing Data in the Vendor Master Record

Vendor master records contain information on the vendors (external suppliers) of an enterprise.

From the Purchasing view, a vendor master record has the organizational levels client and
purchasing organization. Control parameters for purchasing operations are defined at the purchasing
organization level.

Accounting data in the vendor master record is defined at the company code level.

Data that applies to a purchasing organization can be maintained differently for a specific plant. Such
data includes the Automatic PO allowed indicator.

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SAP AG 2002

Master Data for Purchasing: Summary

You are now able to:

Explain that material master records contain
default values that simplify purchasing
processes.

Recognize that material and vendor master
records contain important control parameters for
optimized purchasing.

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SAP AG 2002

Sources of Supply 1: Info Records

Purchasing Information Records

Contents:

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SAP AG 2002

Create and illustrate the uses of info records
with and without material master records

Create and illustrate the uses of cross-plant
and plant-specific info records

At the conclusion of this unit, you will be able to:

Sources of Supply 1: Info Records: Unit Objectives

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SAP AG 2002

Sources of Supply 1: Info Records: Overview

Diagram

Master Data for

Purchasing

Sources of Supply 1:

Info Records

Sources of Supply 2:

Outline Purchase Agreements

Source Determination

Optimized Purchasing

Document Release

(Approval) Procedure

Purchasing

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SAP AG 2002

Sources of Supply 1: Business Scenario

You want to optimize your work processes in
purchasing and want to create the necessary
prerequisites in the system.

You also need a place to store prices and other
purchasing information that you will use repeatedly
when buying certain items from a vendor.

Use info records or contracts to satisfy the above requirements. You create central contracts for
agreements that are valid for more than one plant. You can create contract items for material groups
for contracts covering all materials that belong to a particular material group.

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Vendor
Material
Purch. org.
(Plant)

Info record

Price

...

Vendor

Outline agreement item

Contract

Sched. agmt.

Vendor
Purch. org.
Validity period

Item10 :

Item20 :

Material
Quantity
Price
...

Item10 :

Item20 :

Material
Quantity
Price
...

Source

Pc.

Conditions

Pc.

Conditions

Sources of Supply: Overview

In MM Purchasing, the term source of supply (or source) can mean a vendor (external supplier) or
an outline purchase agreement.

An info record (short for purchasing information record) provides information for Purchasing. It
contains data on a certain material and the vendor (supplier) of that material. For example, the
vendor’s current price for the material is stored in an info record.

An outline purchase agreement is a longer-term arrangement with a vendor regarding the supply of
materials or performance of services according to predefined terms and conditions. The latter apply
for a prearranged period and a predefined total purchase quantity or value.

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Piece

Conditions

UNI

Piece

Conditions

UNI

General conditions

Vendor
Condition group
Material type
Incoterms
Invoicing party

Price 1

Price 2

01.01.

12.31.

Prices

Discounts/Surcharges

Surcharge 5%

from 100 pcs 3%
from 500 pcs 1%

Conditions

Info record

07.01.

UNI

Conditions

Outline

agreement

Conditions are stipulations agreed with vendors concerning prices, discounts and surcharges, and so
on. The effective net price in purchase orders is determined on the basis of these conditions.

You can maintain conditions when you create quotations, info records, outline agreements, and
purchase orders.

Conditions in info records, contracts, and extended conditions, are time-dependent conditions.
Conditions in purchase orders are time-independent conditions.

Time-dependent conditions are also available for quotations and scheduling agreements if you set the
time-dependent conditions indicator for the document type in Customizing.

Extended conditions provide you with the option of specifying time-dependent conditions
independently of outline agreements and info records.

Time-dependent conditions can be restricted to a certain period of validity.

If, for example, a vendor's prices vary according to quantity, you can enter the pricing data in the
form of a price/quantity scale.

You can enter conditions in the document header or in the item details. Item conditions apply to one
item only. Header conditions apply to all the items in the document.

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SAP AG 2002

Vendor
Material
Purch. org.

Info record

10.00

Price
PO text

...

1000

Vendor
Material
Purch. org.
Plant

Info record

9.00

Price
PO text

...

1000
3000

Vendor
Purch. org.
Plant
Material

Pur. order

10.00

Price

1000
1000

Vendor
Purch. org.
Plant
Material

Pur. order

9.00

Price

1000
3000

Material

Purchasing

data

Pc.

Conditions

Pc.

Conditions

Pur. order

Purchasing Info Record

A purchasing info record serves as a source of information for Purchasing. It contains data on a
certain material and the vendor (external supplier) of that material. For example, the vendor’s current
price is stored in the info record.

Data from the info record is used as default data in documents such as purchase orders.

Purchasing info records enable the buyer to determine:

Which materials a certain vendor has offered or supplied to date.

Which vendors can offer or supply a certain material.

A purchasing info record can be valid for all the plants covered by a purchasing organization or for a
single plant within a purchasing organization.

Info records can be created manually or automatically during the maintenance of a quotation, a
purchase order or an outline purchase agreement. Ordering data is updated automatically in the info
record.

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Material group
Short text
Sort string

Price
PO text

OFFICE
Note pad, white
Pad

2.50
Note pad, size A4,
recycling paper
white, 50-leaf

:
:
:

:
:

Vendor
Purch. org.
(Plant)

Info record

standard

Info cat.:

1000

Optimized

purchasing

Info Record Without Material Master Record

There are two types of info records:

Info record with material master record (for example, stock material):

This represents the relationship between a material or service (with a material master record) and a
vendor.

Info record without material master record (for example, material for direct consumption):

This represents the relationship between a material or service (without a material master record)
and a vendor.

For an info record with reference to a material master record, you can specify the following for each
purchasing organization:

Whether only the info record PO text is to be displayed and printed in purchasing documents (to

do so, set the No MText indicator in the purchasing organization data of the info record).

Whether the info record PO text and the purchase order text from the material master record are to

be displayed and printed in purchasing documents. If the No MText indicator is not set, both texts
are displayed and printed out.

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SAP AG 2002

You are now able to:

Create and illustrate the uses of info records with
and without material master records

Create and illustrate the uses of cross-plant and
plant-specific info records

Source of Supply 1: Info Records: Unit Summary

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Exercise Data Sheet

Key to Icons in Exercises and Solutions

Exercises

Solutions

Objectives

Business Scenario

Hints and Tips

Warning or Caution

Data Used in Exercises
Type of Data

Data in Training System

Company Code

1000 (IDES AG 1000)

Purchasing Organization

1000 (IDES Deutschland)

Plants

1000 (Werk Hamburg)
1100 (Berlin)
1300 (Frankfurt)

Storage location

0001 (Materiallager)

Purchasing Group

Z## (##-LO520)

Materials

T-REA## T-REB##
T-REC## T-RED##
T-REE## PK-080
Create:
T-ZN1## T-REZ##
T-REE##-A T-REE##-B

Material Group

ZT## (Office Supp LO520)
008 (Packaging)
010 (Consumables)
LO520 (Material Group
LO520)
007 (Services)
001 (Metal processing)

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Vendors

T-L20A## T-L20B##
T-L20C## T-L20D##
T-L20E## T-L20F##

G/L account

400000

Cost center

T-L20

Currency

UNI

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Sources of Supply 1

Exercises

Unit: Sources of Supply 1
Topic: Info Records

At the conclusion of this exercise, you will be able to:
• Create and illustrate the use of info records with and without

material master record

• Create and illustrate the uses of cross-plant and plant-specific

info records

You wish to optimize your work processes in purchasing and
want to create the necessary prerequisites in the system. You also
need a place to store prices and other purchasing information that
you will use repeatedly when buying a certain item from a
particular vendor.

1-1

Your company procures non-stock materials as well as raw materials used in the
production process.
1-1-1 Create a new material master record for a non-stock material with the

following data:
Material number: T-ZN1##
Industry sector: Mechanical Engineering
Material type:

Non-stock material (NLAG)

Views:

Purchasing, Purchase order text

Plant:

1000

Material short text:

Photocopying paper 5x500, size DIN A4

Base unit of measure:

Carton

Purchasing group: Z##
Material group: ZT##
Purchase order text:

Photocopying paper,

White, suitable for laser and inkjet printers

1-1-2 Add the material master record task that you used in the preceding exercise

to your Favorites.

1-2

Now create an info record relating to your new material T-ZN1## and vendor T-
L20E## for purchasing organization 1000.
1-2-1 Create the info record with the following information:

• The planned delivery time is 7 days
• Purchasing group Z## is responsible for procurement
• 20 cartons are usually ordered each time at a price of 30/carton

1-2-2 Add the task from the above exercise into your Favorites.

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1-3

Your firm buys other office supplies that are assigned to material group ZT##.
However, no material master records are to be created. Descriptive information on
these office supplies is to be stored in an info record for vendor T-L20E##.
1-3-1 Create an info record without a material master record using the following

data:
Vendor: T-L20E##
Purchasing organization: 1000
Short text: Mechan. pencils 0.5 - 1.00 mm
Material group: ZT##
Order unit: Carton
Sort string: Pencil##
Planned delivery time: 7 days
Purchasing group: Z##
Standard quantity: 5 cartons
Price per 1 carton: 60
Price from 10 cartons upwards: 55

1-4 Vendor

T-L20A## supplies you with material T-REA##, for which a material

master record exists. Create the info record for purchasing organization 1000 with
the following data:

Planned delivery time:

10 days

Purchasing group: Z##
Standard quantity: 100
Price per pc.:

Freight per pc.: 1 (condition type FRC1)

1-5 Material

T-REA## is supplied freight prepaid by vendor T-L20A## when ordered

for plant 1000.
1-5-1 Create an info record for purchasing organization 1000, plant 1000 with the

following data:

Planned delivery time:

7 days

Purchasing group: Z##
Standard quantity: 100
Price:

PO text: Rocker bearing,
With official test certification,
Individually packed,
Freight prepaid

Ensure that the PO text from the info record is used in purchase orders and
other purchasing documents instead of the PO text from the material master
record.

1-5-2 How do you ensure this?

______________________________________________________

1-6

Now create a purchase order with two items:

Vendor: T-L20E##

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Purchasing organization: 1000 (IDES Deutschland)
Purchasing group:

Z## (##-LO520)

1-6-1 First

item:

Order

20 cartons of your non-stock material T-ZN1## for plant

1000, to be delivered in 4 weeks time. Using account assignment category
K, enter G/L account 400000 and cost center T-L20.

1-6-2 Do you have to enter an order price?

______________________________________________________

1-6-3 Second item: Order 10 cartons of mechanical pencils 0.5 mm for plant

1000, to be delivered in 4 weeks time, assigned to G/L account 400000 and
cost center T-L20. There is no master record for this material, so assign the
item to material group ZT##. Select your info record without a material
master record from the Info rec. field.

1-6-4 How do you find the info record?

______________________________________________________

1-6-5 What order price does the system suggest?

______________________________________________________

Purchase order number:______________________________

1-6-6 Add the task for creating purchase orders to your Favorites.

1-7

Create another purchase order with two items:

Vendor: T-L20A##
Purchasing organization: 1000 (IDES Deutschland)
Purchasing group: Z## (##-LO520)

1-7-1 First

item:

Order

100 pc of material T-REA## for plant 1000, to be

delivered in 4 weeks time.

1-7-2 What actual price is

calculated?_____________________________________________

1-7-3 Check the PO text for this item. Which text was adopted?

______________________________________________________

1-7-4 Second item: Order 100 pc of material T-REA## for plant 1100, to be

delivered in 4 weeks time.

1-7-5 Which actual price is

suggested?_____________________________________________

1-7-6 Check the PO text for this item. Which text was adopted?

______________________________________________________

Purchase order number: __________________________________

1-8

Change your user master record parameter IDs to default purchasing organization
1000 (IDES Deutschland) and purchasing group Z## (##-LO520).

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Sources of Supply 1

Solutions

Unit: Sources of Supply 1
Topic: Info Records

1-1

1-1-1

SAP menu

→ Logistics → Materials Management → Material Master

→ Material → Create (General) → Immediately

1-1-1

Favorites

→ Add

1-2

1-2-1

SAP

menu

→ Logistics → Materials

Management

→ Purchasing → Master Data → Info Record → Create

After completing the initial screen, choose Enter.

Choose Purch org data 1 and enter the remaining data.

1-2-2

Favorites

→ Add

1-3

Favorites

→ Purchasing → Master Data → Info Record → Create

After completing the initial screen, choose Enter.
Enter the short text, material group, order unit and sort string on the General

datascreen.

Choose Purch org data 1 and enter the remaining data.
To enter the price for 10 cartons and above, first enter 60 in Net price, then choose
Conditions. From there, select the condition type PB00 and choose Scales.

1-4

Favorites

→ Purchasing → Master Data → Info Record → Create

After completing the initial screen, choose Enter, then choose Purch org data 1.

To enter the freight condition, first enter 20 in Net price, then choose Conditions.

1-5

1-5-1

Favorites

→ Purchasing → Master Data → Info Record → Create

After completing the initial screen, choose Enter, then select Purch org data
1To enter the text, choose Text and change the text that defaults.

Since this vendor ships freight prepaid, make sure there is no freight
condition entered. Select Conditions if you need to remove it.

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1-5-2 Select

No mat. txt on the Purch org data 1 screen.

1-6

1-6-1 SAP

→ Logistics → Materials Management → Purchasing →

Purchase Order

→ Create → Vendor/Supplying Plant Known

1-6-2 You do not have to enter an order price because the 30 UNI price defaults

from the info record.

1-6-3 Since there is no material master, leave Material blank and enter the short

text.

1-6-4 Choose

Possible entries from the Info rec field and choose Info Records

per Material Group.

1-6-5 The order price of 55 is suggested from the info record for ordering 10 or

more.

1-6-6

Favorites

→ Add

1-7

1-7-1 Favorites

→ Purchasing → Purchase Order → Create →

Vendor/Supplying Plant Known

1-7-2 To see the actual price, select your line item, then choose the Conditions

tab. An actual price of 20 UNI is suggested.

1-7-3 Choose

the

Texts tab in the item details screen area. The text from the info

record should appear.

1-7-4 The actual price of 21 UNI is suggested. To see this, select the item, then

choose the Conditions tab.

1-7-5 Choose

the

Texts tab in the item details screen area. The text from the

material master PO text view should appear.

1-8

System

→ User profile → Own data

Choose the Parameters tab
Enter EKO (Purchasing organization) and a value of 1000
Enter EKG (Purchasing group) and a value of Z##. Use an upper case Z.

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SAP AG 2002

Contracts

Scheduling Agreements

Contents:

Sources of Supply 2: Outline Purchase Agreements

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Recognize the different types of contracts

Explain the use of item categories M and W in
contracts

Create a centrally agreed contract

Create release orders for different types of contracts

List the advantages of using scheduling agreements

Explain the various types of scheduling agreements

Create scheduling agreements, standard delivery
schedules

At the conclusion of this unit, you will be able to:

Sources of Supply 2: Outline Purchase

Agreements: Unit Objectives

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SAP AG 2002

Sources of Supply 2: Outline Purchase Agreements:

Overview Diagram

Master Data for

Purchasing

Sources of Supply 1:

Info Records

Sources of Supply 2:

Outline Purchase Agreements

Source Determination

Optimized Purchasing

Document Release

(Approval) Procedure

Purchasing

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You wish to use scheduling agreements to procure
certain materials that are to be delivered on a just-
in-time basis.

Sources of Supply 2: Outline Purchase

Agreements: Business Scenario

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SAP AG 2002

JIT

sched.

FRC

sched.

Contract
release
order

Quantity

Delivery date

Quantity contract

Value contract

Centr.-agr. contract

Distributed contract

Contract

Validity period

Material

Total quantity/

total value

Conditions

Scheduling agmt.

Scheduling agmt.
with release docu.

Delivery
schedule

Quantity
Deliv. date

Sch. agmt.

Validity period

Material

Total quantity

Conditions

Outline Purchase Agreements: Overview

In the SAP R/3 System, an outline agreement is a longer-term purchase arrangement made with a
vendor concerning the supply of materials or the performance of services according to predetermined
conditions. These are valid for a certain period of time and cover a predefined total purchase quantity
or value.

Specific dates or quantities for individual deliveries are not set out in the outline agreement. This
information is provided separately in release orders or rolling delivery schedules (comprising a
number of individual schedule lines), depending on the type of agreement.

An outline agreement can be a contract or a scheduling agreement.

There are two types of contracts:

Quantity contract: This type of contract is regarded as fulfilled when the agreed total quantity has

been supplied on the basis of individual release orders issued against the contract.

Value contract: This type of contract is regarded as fulfilled when the agreed total value has been

supplied on the basis of individual release orders issued against the contract.

The items of a contract can relate to a single plant or all the plants covered by a purchasing
organization (centrally agreed contract).

Distributed contracts are centrally agreed contracts that are made available to other SAP R/3 systems
for the purpose of issuing release orders against them.

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SAP AG 2002

Standard item
Consignment item
Material unknown
Material group
External service item

Item/item category

Statistics

Cost center

Project

Order

Asset

Unknown

Single/multiple
account assgt.

W/o material

With material

opt.

mand.

Vendor

One-time

vendor

Contract

requisition

Reference
contract

RFQ

Purchase

requisition

Contract
release order

Contract

Contracts: General

Contracts can be created with or without reference to an outline agreement requisition, an RFQ or
another contract.

Contract release orders can be created with or without reference to a purchase requisition.

The release order documentation comprises details of ordering activities relating to a contract. The
system supplies the following data on each release order:

Number of the contract release order

Order date

Order quantity

Order value

Quantity released to date

Target quantity

Open target quantity

Note that in addition to describing a method of ordering against a longer-term purchase agreement
(as above), the term release is also used in MM within the context of document approval.

You can list all contracts that are due to expire in the immediate future. The analysis is carried out
using the Target value and Total value released fields in the contract header, based on a suitable
selection parameter.

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

SAP AG 2002

Item category

material unknown

Item category

material group

Contract

ICat

Mat.

Short text

Mat. group

Qty.

Price

Notepads

Office

1000 pcs. 2.50

Contract

ICat

Mat.

Short text

Mat. group

Qty.

Price

Office materials

Office

Contract release order

AACat Mat.

Short text

Price

B100

Notepad ruled
Notepad unruled

2.50
2.50

Contract release order

AACat Mat.

Short text

Price

B900

Calendar
Ball-point pens

9.80
0.50

Mai

Item Categories M and W

In contracts, you can use the special item categories M (material unknown) and W (material group).

Item category M is recommended for similar materials with the same price but different material
numbers. When you create the contract item, you enter the short text, material group, quantity, and
unit of measure, but no material number. This is not specified until a release order for such a material
is created against the contract.

Item category W is recommended for materials belonging to the same material group but with
different prices. When you create the contract item, you enter the short text and the material group,
but no price. This and the material number are not entered until a release order is created against the
contract.

Item category W can be used only in value contracts.

You can enter a material number in the contract release order. The corresponding material master
record must be assigned to the same material group as the contract item that is referenced. If the
contract release order does not contain a material number, it must have a valid account assignment
(such as a cost center).

The item categories M and W are not allowed in contract release orders and must be cancelled if a
release order referencing such a contract item is created.

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SAP AG 1999

Plant 1000

Plant 2000

Plant 3000

Contract 2

Item Mat.

Plant

3000

Contract 1

Item Mat.

Plant

Plant Contract/Centrally Agreed Contract

Contract items can relate to a single plant or to all plants covered by a purchasing organization
(centrally agreed contract).

All the plants of a purchasing organization can order against a centrally agreed contract.

An enterprise working with a central purchasing organization covering several plants can negotiate
better conditions at a high level.

Centrally agreed contracts can be entered into with a vendor’s entire corporate group. The individual
contract release orders can be issued to different individual companies belonging to the vendor
corporate group. This is made possible by the partner functionality.

You can stipulate that certain plants are to be supplied by certain companies belonging to the vendor
corporate group.

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SAP AG 1999

Plant conditions

Plant 1000: surcharge 5%

Plant 2000: surcharge 3%

Plant 5000: surcharge 3%

Release
order

Vendor

Material
Plant
Qty.
Price

: A

: 1
: 1000
: 100 pcs.
: 105.00

Contract

Vendor
Period

Material
Total qty.
Price

: A
: 01.01.-
12.31.
: 1
: 10,000 pcs.
: 100.00

Plant Conditions in Centrally Agreed Contracts

Items of a centrally agreed contract do not relate to just one specific receiving plant.

All the plants covered by a purchasing organization can order against a centrally agreed contract.

An enterprise that works with a central purchasing organization covering several plants can negotiate
better conditions at a high level.

Using the Plant conditions function, the centrally agreed contract allows you to stipulate separate
prices and conditions for each receiving plant. Among other things, you can take account of differing
transport costs for different supply routes.

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SAP AG 2002

Working with Scheduling Agreements

Cost center
Project
Order
Asset

Single/multiple
account assgt.

Delivery
schedule

Vendor

One-time

vendor

RFQ

Purchase

requisition

Sch. agmt.

requisition

Central

contract

(4.0)

Reference

sch. agmt.

Standard item
Consignment item
Subcontracting item
Third-party item
Text item

Stock transfer item

Item/item category

W/o material

With material

Opt.

Mand.

Statistics

Sched. agmt.

A scheduling agreement is a longer-term purchase arrangement with a vendor covering the supply of
materials according to predetermined conditions. These apply for a predefined period and a
predefined total purchase quantity.

Scheduling agreements can be created with or without reference to an outline agreement requisition,
an RFQ or another scheduling agreement.

You can create scheduling agreements with reference to a centrally agreed contract, thus taking
advantage of prices negotiated centrally.

Neither the item categories M and W nor the account assignment category U (account assignment
unknown) are allowed in scheduling agreements.

Details of delivery dates and quantities are communicated to the vendor in the form of delivery
schedules.

Delivery schedule lines can be created with or without reference to a purchase requisition. Schedule
lines can also be generated automatically using the MRP system.

Such delivery schedules or schedule lines do not constitute separate documents, but form part of the
scheduling agreement. Procurement using scheduling agreements helps to reduce the volume of
documents in use.

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SAP AG 2002

MRP

Control data for planning run:
Delivery schedule lines = three

Purchasing

Source list

Material 1
Plant 1000

Vendor A
Sched. agmt.
no. 36
MRP ind. 2

Delivery

schedule

Prerequisites

Requirements planning

Material

requirements planning

Planning file entry

Automatic Generation of Schedule Lines

A particular advantage of working with scheduling agreements is that delivery schedule lines can be
generated by the MRP system automatically, provided that certain prerequisites are fulfilled:

The scheduling agreement must be uniquely defined as the source of supply.

Automatically generated schedule lines must be allowed by the source list (MRP indicator two).

Automatically generated schedule lines must be allowed in the MRP system.

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SAP AG 2002

Firm zone (zone 1): 7 days
Trade-off zone (zone 2): 14 days

Today

+7 days

+14 days

Sched. line 1 (1)
Sched. line 2 (1)
Sched. line 3 (2)
Sched. line 4 ( )

Firm zone

Trade-off zone

Firm and Trade-Off Zones

Firm and trade-off zones define the degree to which schedule lines are to be regarded as binding.

Scheduled delivery dates that lie in the near future can represent a firmer commitment than those that
are further away in time.

You can define a firm zone and a trade-off zone for an item of a scheduling agreement:

The firm zone defines the point in time (calculated from the current date) at which the period when

the vendor has the go-ahead for production ends. The firm zone begins on the current (today’s)
date. Delivery schedule lines falling within this zone count as firm and fully binding.

The trade-off zone defines the point in time (calculated from the current date) at which the period

when the vendor has the go-ahead for the purchase of input materials ends. The trade-off zone
begins at the end of the firm zone. Delivery schedule lines falling within this zone count as semi-
firm.

Delivery schedule lines lying beyond the firm and trade-off zones fall within the planning zone.

The firm and trade-off zones are printed out in the delivery schedule for information purposes. It is
assumed that procurement with respect to each delivery schedule line is carried out on the terms
applicable to the zone in which the line in question falls.

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SAP AG 2002

Sched.

agmt.

JIT delivery schedule

Delivery schedule

Scheduling agreement
Agreement type LP

Scheduling agreement with release documentation
Agreement type LPA

Sched.

agmt.

Sched.

agmt.

Scheduling agreement with release documentation
Agreement type LPA

Delivery schedule

Forecast del. schedule

Delivery schedule

Forecast del. schedule

Release documentation

( Rel. 3.0D )

( Rel. 4.0A )

Types of Scheduling Agreement

When using scheduling agreements for procurement purposes, you can work with or without release
documentation. Working with release documentation has the advantage in that at any time you can
see when you sent specific scheduling information to your vendor.

If you work with scheduling agreements without release documentation, the current schedule lines
are transmitted to the vendor automatically after creation using the message output control program.

If you use scheduling agreements with release documentation, the delivery schedule lines are not
transmitted to the vendor automatically as soon as they are created. Instead, you initially record
schedule lines that are final in character in a scheduling agreement release. Transmission of
scheduling data can take place only after you have created such a release.

There are two kinds of scheduling agreement release:

Forecast (FRC) delivery schedules are used to give the vendor a medium-term overview of your

requirements.

Just-in-time (JIT) delivery schedules are used to inform your vendor of your requirements in the

near future. Such schedules may comprise a daily or even hourly breakdown of your requirements
over the next few days or weeks.

Whether you create a scheduling agreement with or without release documentation is determined
using the release documentation indicator for the document type.

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You are now able to:

Sources of Supply 2: Outline Purchase

Agreements: Unit Summary

List the advantages of using scheduling
agreements

Explain the various types of scheduling
agreements

Create scheduling agreements, standard delivery
schedules

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Sources of Supply 2

Exercises

Unit: Sources of Supply 2
Topic: Contracts

At the conclusion of this exercise, you will be able to:
• Recognize the different types of contracts
• Explain the uses of item categories M and W in contracts
• Create a centrally agreed contract
• Create release orders for different types of contracts

1-1

You have entered into a contractual agreement with vendor T-L20B## regarding
the purchase of material T-REB##.
As purchasing group Z##, you have agreed to purchase 10000 pc over a period of 2
years starting today. The agreement is to be valid for all plants covered by
purchasing organization 1000. However, different prices apply to two plants.
1-1-1 Create a centrally agreed quantity contract (agreement type MK).

Make sure that you do not specify a plant on either the initial
screen or the overview screen.

The following prices apply:
General price:

9.90

Plant Conditions

Plant 1000:

9.20

Plant 1100:

9.50 plus 10 UNI freight (Value) (condition type FRB1)

Contract number: __________________________________________

1-1-2 Add the task from above to your Favorites.

1-2

Three of your plants need material T-REB##. You want one release order with
reference to your centrally agreed contract:
1-2-1 First activate the Document overview and create a selection variant for

contracts of your vendor T-L20B##.

1-2-2 Now create the release order:

• 100 pc for plant 1000, delivery in 4 weeks

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• 120 pc for plant 1100, delivery in 8 weeks
• 80 pc for plant 1300, delivery in 8 weeks

1-2-3 What net prices are suggested by the system?

Plant 1000: ____________________________________________

Plant 1100: ____________________________________________

Plant 1300: ____________________________________________

Purchase order number: __________________________________

1-3

As purchasing group Z##, you have also entered into a contractual agreement with
vendor T-L20C##. Create the contract.
This agreement covers the purchase of a total of 5000 pc. of packaging materials,
and is valid only for plant 1000. It is to be in force for 12 months as of today's date.
The materials are assigned to material group 008 (packaging materials) and have a
uniform price of 1/pc.
1-3-1 Which agreement type do you use? ________________________
1-3-2 Which item category do you use for the contract item _________
1-3-3 Explain why you chose this item category.

______________________________________________________
Contract number: ___________________________________________

1-4

Now create a release order against your second contract for the following two
items.
1-4-1 First, activate the Document overview and create a selection variant for

contracts of your purchasing group Z## 2-4-2 You need 50 pc of material
PK-080 for storage location 0001. Delivery is to take place in four weeks.
Order with reference to your second contract.

Item category M is not allowed in the contract release order.
If it appears it must be removed.

1-4-3 On the same delivery date, you also need 80 pc of Size 5 Packing cases.

There is no master record for this material. Order this item with reference to
your second contract, too, and assign it to G/L account 400000 and cost
center T-L20. Use account assignment category K.

Purchase order number ___________________________________

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1-5

You enter into an additional contractual agreement with vendor T-L20C##
covering two items. The agreement is to:
• Apply to plant 1000 only
• Take effect as of the first day of the current month
• End on December 31 of the coming year
• Have a target value of 10000
1-5-1 Which agreement type do you use? _________________________
1-5-2 First item: you have negotiated a particularly favorable price of 340 for

material T-RED##.

1-5-3 Second item: various small parts belonging to material group 010. The

prices of the various small parts vary and therefore cannot be recorded in the
agreement.

1-5-4 Which item category do you choose for the second item? ________
1-5-5 Explain why you chose this item category.

______________________________________________________
Contract number: ___________________________________________

1-6 Order

2 pc of material T-RED## with reference to your third contract. The material

is needed for plant 1000 and is to be delivered in six weeks. Search for the correct
contract using the material number T-RED## and your purchasing group Z##.

Purchase order number ____________________________________________

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Sources of Supply 2

Exercises

Unit: Sources of Supply 2
Topic: Scheduling Agreement

At the conclusion of this exercise, you will be able to:
• List the advantages of using scheduling agreements
• Explain the various types of scheduling agreements
• Create scheduling agreements, standard delivery schedules
•

You wish to use scheduling agreements to procure certain
materials that are to be delivered on a Just-in-Time (JIT) basis.
The vendor is to be provided with a overview of the quantities
that you need over the next few weeks.

2-1

You have entered into a scheduling agreement covering your material
T-REC## with vendor T-L20B##. The vendor wishes to be informed of required
quantities some months in advance. Create the scheduling agreement.

Make sure you enter the plant on the initial screen of the
scheduling agreement.

2-1-1 Which agreement type do you choose?

Agreement type: _______________________________________

2-1-2 The agreement begins on today's date and is valid for 12 months. It is

effective for plant 1000.
The agreement covers a total quantity of 10000 pc. You have negotiated a
price of 9.80/pc. If necessary, overwrite the default net price taken from the
info record.
Goods receipts are expected in storage location 0001.

Scheduling agreement number: ___________________________________

2-1-3 Add this task to your Favorites.

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2-2

Maintain a delivery schedule for your scheduling agreement as follows:

Delivery date

Scheduled quantity Time

1) Today 50