aco mm tbp 018 general warehouse management

Responsable :

To Be Process

ACO-MM-TBP-18 General Warehouse

Date last Update : DD/MM/YYYY

General warehouse

Table of content

21Document updates and validations

22Scope

22.1Process scope description

22.2Application architecture (global)

22.3Cross references

23Process

23.1Core model - process flow and description

23.2Country or customer specific - process flow and description

34Business Rules

34.1Core model Business rules

34.1.1Goods receipts

34.1.2Transfers

34.1.3Reservations

44.1.4Goods issue : consumption

54.1.5Goods issue: scrap

54.1.6Cancellation of a stock movement

54.1.7Purchasing flows

74.2Country or customer specific Business Rules

74.2.1Country specific Business rule - Components consumption in Spain Service Centers

84.2.2Country specific business rule France, Germany

84.2.3Country specific business rule Italy

84.2.4Asset flows

84.2.5Services flows

94.2.6Batch Management

95Key elements of system implementation

95.1Core model Key elements of system implementation

95.1.1Goods receipts

95.1.2Transfers

105.1.3Reservations

115.1.4Goods issue : consumption

135.1.5Goods issue : scrap

135.1.6Cancellation of a stock movement

135.2Country or customer specific Key elements of system implementation

135.2.1Consumptions

145.2.2Batch Management

145.3Summary

156Organizational roles and impacts

157Application specific development requirements

158Key volume & performance indicators

159Added value for the Business and economical considerations

1 Document updates and validations

The table below lists all modifications and updates done on the considered document. Fill in Date, Author and a summary of the documents update content, reason and/or objectives.

Updates

DateVersionAuthorComment

v0Document creation

19/08/2005v1C. ChoubardDocument update

6/09/2005V2A.GuessabDocument update (page 9 & 14 :Batch management), (page 4 Reservations)

The table below lists all the successful validations done on the document ; if the document was asked for validation but not validated then there is no entry in this table (status by default is OK).

Validations

DateVersionValidation Resp.Comment

v0Validated.

2 Scope

2.1 Process scope description

This document refers to materials of the general warehouse (whatever the material type, STRA, HIBE, ERSA or VERP), managed in SAP only.

Flows for PVB and raw glass are therefore not described here.Materials not managed in stock (material type NLAG) are only described in the part goods receipt, since they are declared consumed at the goods entry: in SAP, we have no stock for them, and therefore no stock movements.2.2 Application architecture (global)

2.3 Cross references

Mention eventual other linked To Be Process or any related document.

ACO-PDC-TBP-04 Components consumption

ACO-MM-TBP-44 Process goods receipt (WMS)ACO-MM-TBP-15 Purchasing process Subcontracting

ACO-MM-TBP-22 Purchasing process Consignment flow

3 Process

3.1 Core model - process flow and description

3.2 Country or customer specific - process flow and description

4 Business Rules

4.1 Core model Business rules

4.1.1 Goods receipts

All receptions must be performed against a purchase order or a schedule line.Whatever the material type (so, included the NLAG), the goods receipt should be performed in the system in order to proceed to the invoice verification (and pay the vendor).To do so, the specific SAP transaction ZB01 must be used. It has been developed in reference to the standard MB01 transaction and includes a screen that enables vendor quotation for the materials for which vendor evaluation is made.

The delivery note of the vendor and a text can be indicated during the goods receipt, in order to help the invoice verification.

Remark : if a material is purchased against a schedule line, this schedule line has to be situated at the current date or in the past, otherwise the system does not take it into account as a valid line and the goods receipt can not be posted.

4.1.2 Transfers

When a material had been received physically, it is stocked in a storage location, in a specific stock status (Unrestricted/ Quality inspection / Blocked).The transfer transaction allows changing the status of the material (ex: Quality Inspection => Unrestricted), or transferring the stock from one storage location to another one.Both operations cannot be performed in one step, its necessary to do it in two successive steps.4.1.3 ReservationsReservations can be created in SAP in order to prepare a stock movement that will occur later on.Reservations can be either created in automatic (for PM purpose, see documentation on PM use), or manually : normal MM reservations.

Reservations are only foreseen for materials from the general warehouse that are only managed in SAP (no reservations for raw glass or PVB).Reservations can be posted on :

transfers

goods issue

They help anticipating the flows.

Reservations are taken into account by MRP : they are seen in the MRP analysis as the real movement they anticipate : reservations for goods issue are analyzed as a planned goods issue.

The reservation is then transformed by handling the transaction it contains :

transfer referring to the reservation goods issue referring to the reservation

There is no obligation to create reservations.

Remark : Reservations can only occur for materials with availability check 01.

BelgiumTo simplify process, a picking list is created by the report. ZRES4.1.4 Goods issue : consumption

See related To be : ACO-PDC-TBP-04 Components consumption

4.1.4.1 Components not managed in stock

For components not managed in stock, the consumption occurs automatically at the goods receipt, according to the account assignment indicated in the purchasing document.

Account assignment for these materials (type NLAG) is either cost center or internal order.

4.1.4.2 Components managed in normal stock

For components managed in stock, the component consumption is declared manually in SAP, on PC terminals.

The real stock issues are tracked for each component, with handling unit quantities:When the handling unit is opened for production, for silver paste / enamels / polymers

When the handling unit is issued from the raw materials warehouse for other components

The real stock issues are collected for each production line, and consumption costs are distributed to materials produced:- For components in BOM (STRA), the consumptions are collected on cost objects defined at production line level, and consumption costs are dispatched on the basis of produced quantities and BOM factors.- For components not in BOM, the consumptions are collected on cost centers, and consumption cost variances are dispatched on the basis of consumed activities other consumables.Risks if the consumption is not made in SAP right after real consumption:

stocks in SAP do not reflect the reality > impact for the replenishments responsible : he does not have the right information to order the components.

for materials in BoM : consumptions might not reflect the real workcenter where they have been consumed (if they can be consumed on several lines at the same time)4.1.4.3 Components managed in vendors consignment stockMaterials managed in vendors consignment stock are consumed:

either directly from the consignment stock

or after a transfer to the own stock

When the material managed in vendors consignment stock is directly from the consignment stock, the goods issue must contain the indication of the special stock, and the vendor code must be entered, in order for the correct vendors stock to be decreased.4.1.4.4 Components used in subcontracting flowsFor Subcontracting, the consumptions of the components is automatically posted when the reception of the finished product is performed (according the quantity indicated in the Bill of Materials or directly in the purchasing document (purchase order or schedule line); the movement is 543-O. 4.1.5 Goods issue: scrap

For each scrap, an account assignment (on cost center) must be indicated, and a reason code must be given.Scrap from normal stock : movement 551

Scrap from stock in quality inspection : movement 553

Scrap from blocked stock : movement 555

Scrap from consignment stock in unrestricted use : movement 551 K, indication of the vendorScrap from consignment stock in quality stock : movement 553 K indication of the vendorScrap from consignment blocked stock : movement 555 K indication of the vendorReason code :

0001 Poor quality

0002 Demaged

0003 Absolete model

0004 Shelf life ended

0005 Partial scrapping

0006 Shrinkage

0011 SC:Poor quality

0013 SC: Damaged

4.1.6 Cancellation of a stock movement

A standard transaction enables to post the exact contrary of a material document. 4.1.7 Purchasing flowsThere have different purchasing flows, those flows are linked to services and assets. The great part of those flows must be managed on the system.

Except the followings which are directly integrated in the system by the accounting department by postings :

Energy

Expenses (car rental, hotels,.)

Interim people

The different purchasing flows are the followings :

Services

Assets

Maintenance for the productive materials

Maintenance at a define time (example maintenance visit twice a year for control)

All those flows must respected some rules regarding to the validation, the amounts allowed for the people who have right to ask for material.

The way to purchase depend from the way to work with the suppliers (use of contract, use of request for quotation,.).The purchasing flows will be described hereafter, this flow is only managed with non-stocked materials (generic material), respecting the followings steps :

Request for Quotation is mandatory (for the Asset purchasing), for others flows like maintenance (RFQ is note required), or,

Purchase requisition (this document will be transformed by the purchasing department in a Request For Quotation for the purchasing analyze.

Choice of the best supplier (management of the Request of Quotation Price and delays), in some case use of a specific report for the analyze of the best proposal,

Creation of the purchase document (Purchase order or scheduling line), in regard the previous document (Purchase requisition or RFQ).

Goods receipt

Invoice verification (standard IV or ERS)

4.1.7.1 Purchasing Processes Asset FlowFor the asset flow the material used will be generic material, the articles are specific to this flow in regard the valuation class included in it. The integration with the accounting department is specific, so the material will always begin as GE10xx in this range there are different materials linked to the family of the asset purchased.

The flow is :

In the asset flow the its necessary to create in the system several Request For Quotation, the number of document is linked to the amount of the asset. When the suppliers answer to those document an analyze by the system can be performed in order to classify the proposals.

When the choice is done the RFQ is transformed in a Purchase Order. In the asset flow there are some texts to apply in the document (explanation of the rights of the suppliers, the penalties possible if the PO is not respected in terms of delays and qualities,.)

Goods receipt of the purchase order is managed in the regard the payment condition term negotiate with the supplier, (example : Payment 20% when the Po is created, 30% payment when the a part of the asset is receipt, 30 % payment after 3 months use of the new material and the last part 20% for the guaranty of material).

Invoice verification4.1.7.2 Purchasing Processes Services Flow

This flow use only generic material, the range of those material is GE08xx, in this range there are all kinds of services families with their correspondent accounting integration.

For the services the flow is as follows :

Creation manually or by the system of a Purchase Requisition, (this part is linked to the internal organization). In this document a description of the services and the delay is indicated for the purchase department.

The purchase requisition managed in a Request For Quotation in order to negotiate the best price, the number of RFQ is linked to the amount of the purchase to do. As its services the requester have to explain what he need by a text.

When the supplier is selected the RFQ is transformed in a purchasing document.

Goods receipt, when its done, the requester validate the quality of the services done by the supplier.

Invoice verification.4.1.7.3 Purchasing Processes Maintenance Flow

Regarding the maintenance of the equipments there 2 kinds of flows :

1st concern the regular maintenance negotiate when the equipment is installed, so its the number of visits forecast in the contract. For this kind of maintenance its a purchase order in which its fixed the number of visit, when and the spare parts considered with this maintenance. The goods receipt are performed each time the visit is done by the supplier, the invoice verification is the end of the flow.

2nd concern the repairs done on the work centers, in this case the purchasing flow is the same than the flow used for the services, with the different steps (RFQ, Purchase requisition, Purchase Orders).

4.2 Country or customer specific Business Rules

Linked with the BFR project, the use of consignment flows is increasing in most countries.4.2.1 Country specific Business rule - Components consumption in Spain Service Centers

The following business rules have been defined for components in Spain Service Centers:

Components in Service Centers are managed by Devisa, in Devisa stock.

The BoM of the finished product in Service Centers contains only the glass product.

For components not in BOM (all components excluding glass product):

The consumption declaration is nearly the same than activity

In order to take the cost of these components into account, their cost is included in Other variable costs in the routing.

All these components are consumed on cost center (one cost Center is defined by Service Center), with transaction MB1A and mvt code 201.

The consumption declaration is performed at least one a month (frequency to be defined according to the stock level accuracy requirement):

In Service Centers (if Service Centers are equipped with SAP terminals), or in Devisa plant (if Service Centers have no SAP terminal)

The component is issued from the warehouse defined in Devisa plant for the relevant Service Center.

4.2.2 Country specific business rule France, GermanyConsumptions :

For France and Germany, the proposed process is considered as less reliable as a consumption is posted directly when stock is issued from raw materials warehouse. France : use of reservationsGermany : in Stolberg and Herzogenrath, reservations are used in the general warehouse : once the material leaves the warehouse, the warehouse manager scans the reservation, which posts automatically the goods issue, according to the account assignment included in the reservation. The consumption is therefore posted in SAP before the real consumption on the line.

4.2.3 Country specific business rule ItalyAs for France and Germany, the material consumptions are posted directly when the stock is issued from the general warehouse. The reservations are not used.

Management of the service centers components: the components used in the service centers are purchased by Savigliano and then sold to the Pozzilli subcontractor. So the materials are issued from the warehouse, thanks a specific movement 994 (Reverse 993) with the transaction MB1C (its triggering automatically the imputation on the cost center 600STRSALE and the account 603205). A Miscellaneous sales should be entered linked to this movement (Sales order type ZMSD + sales invoice ZMSD). 4.2.4 Asset flows In all countries management of the texts by the standard texts of SAP in order to avoid to key each the text in the system when the PO is created.

4.2.4.1 France

In France a specific range of number is managed (Purchase order type I number range 4700000000 to 4799999999)

4.2.4.2 Spain

In Spain due to the use of the ERS its necessary to manage the asset flow by a specific order type named ZIN with a number range 5000000000 to 5099999999. The objective of this order type is to allow the accounting department to change the account to a specific asset account with the treatment of the ERS.4.2.5 Services flows

4.2.5.1 Germany

1. In Germany for the management of the services, the standard flow of the services is used in a light version only for the optimization of the invoice verification (there are no goods receipt done in the system).

4.2.5.2 Spain

2. In Spain, for the services it was created a specific unit of measure which name is MO, this one is used for considering the services an amount. So, when they create a purchase order they precise an amount which correspond to the service they need, and when the supplier has finished his job the goods receipt is done in regard the real amount gave by the supplier.4.2.6 Batch Management4.2.6.1 Italy

In order to be able to manage efficiently the expiration date of chemical products and enamels, the batch management functionality is used. For this purpose the Batch management field should be flagged in the material master.After that, each movement performs on those materials (reception, consumption) will required to precise the batch concerned.

The batch should be created correctly, with the information of the expiration date.A specific transaction, ZMBR, allows following easily the batches and their expiration date.4.2.6.2 Belgium

In addition to Italy functionality, The batch management is used for two purposes:

Batch management to manage expiration date.

Batch management to manage materials with a FIFO strategy (to separate different receipt on stock)Business rules:

1 The SAP batch Number = Delivery number.

2 The vendor batch = real vendor batch number3 Expiration date for materials managed by expiration date.A standard transaction is used to monitor expiration date (MB5M); gives alerts by remaining days before expiration date.A report (BATCHMANGT2) is used to provide a ranked list for issue priority (Expiration date & FiFo sequence), it allow also to prevent preliminary operations before issuing material by displaying actual stocks in the warehouse.

5 Key elements of system implementation

5.1 Core model Key elements of system implementation

5.1.1 Goods receipts

TransactionsMovement typeUse

ZB01101Goods receipt with Purchase Order or Schedule LineRegular movement to perform a reception, it has to be done in reference to a Purchase Order or a Scheduling agreement

102Cancellation for movement 101Movement used to correct a receipt error

5.1.2 Transfers

5.1.2.1 Transfers between 2 storage locations

Logistics > Material management > Inventory management

Goods movement > Transfer posting

Transaction MB1B

Each case of transfer between 2 storage locations gets a specific movement code. Thanks the menu Movement type > Transfer posting (or reverse transfer posting for the reversal movements) > Storage loc. To Storage loc., its easy to get the right movement code.Storage loc. to storage loc. - Stock in status Unrestricted : Mvt 311

Storage loc. to storage loc. - Stock in status Quality: Mvt 323

Storage loc. to storage loc. - Stock in status Blocked: Mvt 325

If the transfer concerns a material that is managed in consignment, the code K should be indicated in the field special stock indicator

5.1.2.2 Transfer from material to material



Transaction MB1B

Material to material

In some cases, it is possible to transfer the stock of one material to another one :

for materials managed at standard price, price of both materials must be identical in order to proceed to this transfer. If not, an error message blocks the transaction.

5.1.2.3 Transfers from a status to an other one



Transaction MB1B

Stock to stock : Quality inspection to unrestricted : 321Stock to stock : Blocked to unrestricted : 343

Stock to stock : Blocked to Quality inspection : 349If the transfer concerns a material that is managed in consignment, the code K should be indicated in the field special stock indicator

5.1.3 Reservations

Reservations can be created in SAP in order to prepare a stock movement that will occur later on.

Reservations can be either created in automatic (for PM purpose, see documentation on PM use), or manually : normal MM reservations.

Reservations are only foreseen for materials from the general warehouse that are only managed in SAP (no reservations for raw glass or PVB).Step 1 : Creation of the reservation


Reservation > Create

Transaction MB21

Remark : Reservations can only occur for materials with availability check 01.

Enter the date of the anticipated movement, movement type, plant.

Reservations can be posted on :

Transfers

Goods issue

According to the movement type indicated, the data to enter are different (data for the flow indicated have to be entered).

Step 2. MRP

Reservations are taken into account by MRP : they are seen in the MRP analysis as the real movement they anticipate : reservations for goods issue are analyzed as a planned goods issue.

Step 3 : Proceed to the foreseen movement

The reservation is then transformed by handling the transaction it contains :

transfer referring to the reservation (MB1B) goods issue referring to the reservation (MB1A)5.1.4 Goods issue : consumption

See related To be : ACO-PDC-TBP-04 Components consumption

5.1.4.1 Components not managed in stock

For components not managed in stock, the consumption occurs automatically at the goods receipt, according to the account assignment indicated in the purchasing document.

Account assignment for these materials (type NLAG) is either cost center or internal order.

5.1.4.2 Components managed in normal stock

For components managed in stock, the component consumption is declared manually in SAP, on PC terminals.

5.1.4.2.1 For components included in BOM

Step 1 : Collection of the real consumptions on the lines

Each production line collects the information of the components consumed (and their quantity), and gives it to the warehouse manager (or the person in charge of entering it in the system).

The real stock issues are tracked for each component, with handling unit quantities

Step 2 : Post the goods issue in the system For components in BOM (STRA), the consumptions are posted on cost objects defined at production line level


Goods Issue

Transaction MB1A

Risks if the consumption is not made in SAP right after real consumption :

stocks in SAP do not reflect the reality > impact for the replenishments responsible : he does not have the right information to order the components.

for materials in BoM : consumptions might not reflect the real workcenter where they have been consumed (if they can be consumed on several lines at the same time)

5.1.4.2.2 For components not included in BOMFor components not in BOM, consumptions are usually posted when the material leaves the general warehouse.

Step 1 : Post the goods issue when the material leaves the general warehouse


Goods Issue

Transaction MB1A

They are posted on cost centers or internal order, and consumption cost variances are dispatched on the basis of consumed activities other consumables.5.1.4.3 Components managed in vendors consignment stockMaterials managed in vendors consignment stock are consumed :

either directly from the consignment stock

or after a transfer to the own stock

5.1.4.3.1 Consumption from vendors consignment stock

Same way and transaction to post the goods issue :

But on the first screen the special indicator must be set K for consignment, so that the vendor code will be entered in the second screen, to decrease its consignment stock.

5.1.4.3.2 Consumption after a transfer to own stockFirst, proceed to a transfer from vendors consignment stock to own stock (transaction MB1B).

Then, a normal goods issue (from own stock) must be made.5.1.4.4 Components used in subcontracting flowsFor Subcontracting, the consumptions of the components is automatically posted when the reception of the finished product is performed (according the quantity indicated in the Bill of Materials or directly in the purchasing document (purchase order or schedule line); the movement is 543-O. 5.1.4.5 Goods issue in reference to a reservation

To transform the reservation into the transaction it contains :

In a case of a goods issue :

Post the goods issue in the systemLogistics > Material management > Inventory management

Goods Issue

Goods issue > Create with reference > to reservation

Transaction MB1AIndicate the reservation, and post the movement (the reservation already contains all information needed for the goods issue).5.1.5 Goods issue : scrap


Goods Issue

Movement type > Issue > to Scrap >

Scrap from normal stock : movement 551

Scrap from stock in quality inspection : movement 553

Scrap from blocked stock : movement 555

Scrap from consignment stock in unrestricted use : movement 551 K, indication of the vendor

Scrap from consignment stock in quality stock : movement 553 K indication of the vendor

Scrap from consignment blocked stock : movement 555 K indication of the vendorFor each scrap, an account assignment (on cost center) must be indicated, and a reason code must be given : Reason code used :

0001 Poor quality

0002 Damaged

0003 Obsolete model

0004 Shelf life ended

0005 Partial scrapping

0006 Shrinkage

0011 SC:Poor quality

0013 SC: Damaged

5.1.6 Cancellation of a stock movement

Transaction MBST enables to post the exact contrary of a material document : when a movement has to be cancelled, this transaction is the best way to do it : the first document does still exist, and a second one (exact contrary) is posted. Via this transaction, no error can be made to reverse a movement.5.2 Country or customer specific Key elements of system implementation

5.2.1 Consumptions

5.2.1.1 France and Germany

For France and Germany, a consumption is posted directly when stock is issued from raw materials warehouse (even for strategic materials). France : use of reservations

Germany : in Stolberg and Herzogenrath, reservations are used in the general warehouse : once the material leaves the warehouse, the warehouse manager scans the reservation (with a local scanning tool and software), which posts automatically the goods issue, according to the account assignment included in the reservation. The consumption is therefore posted in SAP before the real consumption on the line.

5.2.1.2 Italy

the components used in the service centers are purchased by Savigliano and then sold to the Pozzilli subcontractor. So the materials are issued from the warehouse, thanks a specific movement 994 (Reverse 993) with the transaction MB1C (its triggering automatically the imputation on the cost center 600STRSALE and the account 603205). A Miscellaneous sales should be entered linked to this movement (Sales order type ZMSD + sales invoice ZMSD). Logistics > Material management > Inventory management

Goods movements > Goods receipt > other

Transaction MB1AConsumption movement: 994 (Reversal: 993)

5.2.2 Batch Management

Prerequisite: its necessary to flag the Batch management field in the material master (view Purchasing or Storage 1)During the goods entry (ZB01, movement 101), the batch number (field Batch) and the expiration date (field shelf life expiration date) should be entered.The expiration data and others data of the batch can also be managed directly in the Batch master, via the transaction MSC2.

The specific report ZMBR allows getting a general view of the batches and their status (according the expiration dates)A standard report allows monitoring of expiration date by remaining days (positive or negative)( Positive: Expiration date in the future

( Negative: Expiration date in the past.5.3 Summary

Table(s)6 Organizational roles and impacts

If relevant, summarize the main organizational roles involved in this process and the eventual organizational impacts and evolutions.

7 Application specific development requirements

This section lists all the specific developments that are necessary to support the process

Specific SAP transactionIn Bound InterfacesFormsJob Aids (other : Excel,)

Modified SAP transactionOut Bound InterfacesEDI transactionsOther

Modified SAP program (other)ReportsLegacy Change Requirements

8 Key volume & performance indicators

Mention here key figures of volumes and requested performance indicators.

9 Added value for the Business and economical considerations

Mention here factual business related figures and economical data that illustrate : the "weight" of the process and its economical impact ; example : average turnover, inventory value, ROI,

206/09/05 - 11:09

aco mm tbp 018 general warehouse management

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