General Overview

SAP Best Practices for Apparel and Footwear China V1.603

SAP Best Practices

This package comprises predefined business scenarios that handle the most important business requirements in Apparel and Footwear Industry, covering the following key functional areas of SAP Enterprise Resource Planning (ERP):

Overview of Scenarios

Warehouse and Inventory Management Forecast-to-Stock Order-to-Cash Procure-to-Pay Accounting

Scenario Overview - Apparel and Footwear

Warehouse and Inventory Management 134 AFS: Stock Transfer with Delivery 624 Warehouse Management with Allocation RunForecast-to-Stock 630 Make-to-Stock for Apparel and Footwear Industry 631 Make-to-Order Production w/o Variant Configuration for Apparel and Footwear

Industry 632 Inter-company and Cross-plant Production 634 Production Subcontracting (External Processing) for Apparel and Footwear Industry 635 Combined Production Orders

Order-to-Cash 107 AFS: Sales Processing using Third Party (w. Shipping Notification) 115 AFS: Sales of Nonstock Item with Order Specific Procurement 611 Sales Order Processing with Allocation Run: Sale from Stock 612 Cross-Company Sales Order Processing with Allocation Run 613 Pre-Order Processing (Sales) 614 Rush Order Processing (Sales) 615 Sales Order Processing with Export Control 616 Order to Cash with Packing and Transport ManagementProcure-to-Pay 620 Finished Goods and Raw Materials Sourcing 621 Materials Subcontracting for Apparel and Footwear IndustryAccounting 645 Activate Document Splitting for Apparel and Footwear IndustryOther 154 AFS: Prereq. Process Steps

Scenario Overview - Baseline Warehouse and Inventory Management

124 - Lean Warehouse Management 126 - Serial Number Management 131 - Stock Handling: Scrap and Blocked Stock 135 - Stock Transfer without Delivery 137 - Physical Inventory / Inventory Count & Adjustment 117 - Batch Management

Key Business Scenarios:

Scenario Overview - Baseline Time-to-Market

210 - Internal Product Development

Key Business Scenarios:

Scenario Overview - Baseline Forecast-to-Stock

144 - Logistics Planning 145 - Make-to-Stock Production - Discrete Industry 146 - Make-to-Stock Production - Process Industry 147 - Make-to-Order Production with Variant Configuration 148 - Make-to-Order Production w/o Variant Configuration 149 - Repetitive Manufacturing 150 - Production Subcontracting (External Processing) 151 - Rework Processing (Stock-Manufactured Material) 202 - Rework Processing (Work-in-Process)

Key Business Scenarios:

Scenario Overview - Baseline Order-to-Cash

108 - Credit Management 109 - Sales Order Processing – Sale from Stock 110 - Free of Charge Delivery 111 - Returns and Complaints 112 - Sales Quotation 113 - Sales Order Processing for Prospect 114 - Sales Processing using Third Party (without Shipping Notification) 116 - Debit Memo Processing 201 - Sales Order Processing with Customer Down Payment 203 - Sales: Period End Closing Operations 204 - Credit Memo Processing 118 - Foreign Trade Export Processing 119 - Customer Consignment Processing 120 - Returnables Processing 122 - Batch Recall 123 - Cross-Company Sales Order Processing

Key Business Scenarios:

Scenario Overview - Baseline Procure-to-Pay

128 - Quotation for Procurement 129 - Consumable Purchasing 130 - Procurement w/o QM 133 - Procurement Contract 136 - Return to Vendor 127 - Quality Management for Procurement with Vendor Evaluation 138 - MM Subcontracting 139 - Procurement & Consumption of Consigned Inventory 141 - Internal Procurement: Cross-Company Stock Transfer

Key Business Scenarios:

Scenario Overview - Baseline Financial and Management Accounting

156 - General Ledger 157 - Accounts Receivable 158 - Accounts Payable 159 - Period End Closing in Financial Accounting 160 - Cash Management 162 - Asset Accounting 164 - Asset Acquisition for Constructed Assets (Invest. Orders) 184 - Overhead Cost Controlling – Actual 185 - Internal Order R&D Actual 186 - Internal Order for Marketing and Other Overhead Actual 163 - Asset Acquisition through Direct Capitalization 165 - Activate Document Splitting 161 - Cost of Sales Accounting 166 - Segment Reporting

Key Business Scenarios:

Scenario Overview - Baseline Annual Operating Plan & Forecast and Simulation

175 - General Cost Center Planning 177 - Internal Order R&D Planning 180 - Internal Order for Marketing and Other Overhead Planning 172 - Revenue Planning 173 - SOP through Long Term Planning Transfer to LIS/PIS/Capacity 174 - Purchased Material Price Planning 176 - Manufacturing Cost Center Planning 178 - Standard Cost Calculation 179 - Quarterly Plan - Sales Quantity Forecast with CO-PA 187 - Reference and Simulation Costing

Key Business Scenarios:

Scenario Overview - Baseline Integration Processes

Period End Closing Integrated 181 - Period End Closing General Plant 182 - Inventory Valuation for Year End Closing 224 - Period End Closing Activities

Analytics 221 – SAP ERP Reports for Accounting 222 – SAP ERP Reports for Logistics Multi-area scenario

Key Business Scenarios:

Scenario Overview – Summary for all existing Scenarios

Required EHP3 for SAP ERP 6.0 SAP Enterprise Portal

Company roles involved in process flows Sales Administration Sales Billing Warehouse Clerk Warehouse Monitoring Warehouse Manager Transportation Planning Purchasing Manager Buyer Business Analyst Purchaser Product Cost Controller Production Planner Shop Floor Specialist Accounts Payable Accountant 1 Finance Manager General Ledger Accountant Assets Accountant

SAP Applications Required:

Process Flow Diagram134 AFS: Stock Transfer with Delivery

War

eho

use

Cle

rkE

ven

tB

uye

r

Need for material

Material Arrival at Plant Dock

Daily Shipment Worklist, Enough

Inventory

Process Stock Transport

Requisition (with MRP)

Post Goods Receipt for

Delivery

Process Delivery Due List for Pos

(Create Outbound Delivery)

Delivery Note

GR Slip

Change Stock Transport Order

MRP = Material Requirements Planning, GR = Goods Receipt

Create Stock Transport Order

(w/o MRP)

Picking Confirmation

Delivery

Post Goods Issue

Check Status of Stock Transfer

Pro

d.

pla

nn

er

Enter PO confirmation

Check Stock

Process Flow Diagram624 Warehouse Management with Allocation Run

War

eho

use

cle

rkW

areh

ou

se

man

ager

Eve

nt

Initial Stock Requirement

Posting Initial stock

Confirm TOCreate TO for

material document

War

eho

use

M

on

ito

r

Stock Transfer Create TO Confirm TO

Displaying Storage Bin

Stock

Create TR

Stock Transfer Requirement

Initial Stock, Replenishment, Stock Transfer and Physical Inventory management:

Counting Result Clearing Different WM

Replenishment requirement

Create Physical Inventory

Clearing Differences Inventory

Management

Physical Inventory

requirement

Create Transfer Requirement Confirm TOCreate TO for TR

Process Flow Diagram624 Warehouse Management with Allocation Run

War

eho

use

cle

rkB

uy

er

Sal

es

Ad

min

istr

ati

on

Eve

nt

Order goods from Vendor

Create PO

Create Inbound Delivery Create TO Confirm TO

Good receipt

Executing Allocation Run

Create outbound delivery Create TO Confirm TO

Post goods issue

Customer order goods

Purchasing & Sales processing:

Create Sales Order

Pu

rch

asi

ng

Ma

nag

er

Release PO

Process Flow Diagram630 Make-to-Stock for Apparel and Footwear Industry

Sh

op

Flo

or

Sp

ecia

list

Eve

nt

Create Planned Order in MRP

Beginning of Planning Cycle

Pro

du

ctio

n P

lan

ner

Release Production Order

Confirming Assembly Activities

/ Final Confirmation

War

e-h

ou

se

Cle

rk

ConvertPlanned Order to Production Order

Semi-Finished Goods Receipt

Maintain Distribution of Requirement

Creating Planned Independent

Requirements

Finished Goods Receipt

Release Production Order

Confirming Assembly Activities

/ Final Confirmation

ConvertPlanned Order to Production Order

Sal

es

Ad

min

ist

rati

on

Process Flow Diagram631 Make-to-Order Production w/o Variant Configuration for Apparel and Footwear Industry

Sal

es B

illin

gE

ven

t

Customer Requirement

Pro

du

ctio

n P

lan

ner

Confirmation of Production Order

Operations

Manually Issue Goods

Billing

Release Production

Orders

Sh

op

F

loo

r S

pec

ialis

t

Sales Order Entry

Creating Planned Order in MRP

Converting a planned order to production order

Delivery Processing

Comparing Planned and Actual Costs

War

eho

use

Cle

rk

Good receipt for Manufactured

Goods

FI account document

Process Flow Diagram632 Inter-company and Cross-plant Production

Sh

op

F

loo

r S

pe

cia

lis

t(P

lan

t1)

Pro

du

cti

on

P

lan

ne

r(p

lan

t 2

)

Release Production Order

(finish goods)

Release Purchasing

Order

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

Maintaining Distribution of Requirements

Creating Planning

Independent Requirements

Creating Planned Order in MRP

Goods Receipt (semi-finish)-

plant 2Material staging

Production Demand

Pro

du

ctio

n

Pla

nn

er(p

lan

t1)

Assigning Distribution

Profile to Finished goods

Convert Planned Order to Purchase

Requisition(semi)

Convert Purchase

Requisition to Purchase Order

MRP Running

Converting Planned Order to

a Production Order (semi-

finish)

Release Production Order

Delivery and Picking

Display stock in Transit

War

eh

ou

se

Cle

rk(p

lan

t 1

,2)

Sh

op

F

loo

r S

pe

cia

list

(pla

nt

2)

Production Order Confirmation

On-site Producti

on

On-site Producti

on

Goods Receipt (finish)-plant 1

Production Order Confirmation

(finished goods)

Pu

rch

as

e

Ma

na

ge

r

En

gin

ee

rin

g

Sp

ec

iali

st

Pro

du

ctio

n

Pla

nn

er

(Pla

nt

1)

Entering Goods Receipt for

Purchase Order

Converting Planned Order to

a Production Order (finish

goods)

Process Flow Diagram634 Production Subcontracting (External Processing) for Apparel and Footwear Industry

Sh

op

F

loo

r S

pec

ialis

tB

uye

r

Pu

rch

asin

g

Man

age

r

Release Production Order

Create Purchase order for external

processing

Release Purchasing

Order1

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

War

eho

use

Cle

rk

Maintaining Distribution of Requirements

Creating Planning

Independent Requirements

Creating Planned Order in MRP

Creating Delivery Document

through Subcontract

Stock Monitor

Sending Components to Subcontractor with Delivery

Document

Post Goods receipt for

Purchase Order

Confirm Production Order

Goode receipt for production Order

Material Document

Material Document

Production Demand

Pro

du

ctio

n

Pla

nn

er

Converting Planned Order to Production Order

Checking Subcontracting

Purchase Requisition from Production Order

Material Document

Acc

ou

nts

P

ayab

le

Acc

ou

nta

nt

Process Flow Diagram635 Combined Production Orders

Sh

op

Flo

or

Sp

ecia

list

Eve

nt

Co

st

Co

ntr

olle

r

Inventory @ Standard. Cost

Pro

du

ctio

n P

lan

ner

War

e-h

ou

se

Cle

rk

Period End Closing

“General” Plant(181)

Confirm Production Order Operation/Back

Flush

Confirm Combine Order

Combine the Production

Orders

Order Print

Goods Receipt Slip

ConvertPlanned Order to

Production Orders

Inventory Consumption @ Standard. Cost

Finished Goods Receipt

Creating Planned Independent

Requirements

Creating Distribution

Profile

Creating Planned Order in MRP

Back Flush Component in Background

Compare Planning Cost

and Actual Cost

Release Combine Order

Process Flow Diagram107 AFS: Sales Processing using Third Party (w. Shipping Notification)

Sal

es

Ad

min

istr

atio

n

Pu

rch

asin

g

man

ager

/ B

uye

r

Acc

ou

nts

P

ayab

le /

Rec

eiva

ble

Ven

do

rW

are-

ho

use

C

lerk

Cu

sto

mer

Billing

Drop Ship Product to 3rd

Party

Send Shipping Notification/ Confirmation

Incoming Vendor Invoice

Customer Request for

Material

Order Confirmation

Create Sales Order

Auto-generates a Requisition

Quotation for

Procurement (128)

Display List of Purchase

Requisitions to Be Assigned

Convert Assigned

Requisitions to Purchase Orders

Approval of Purchase Orders

AP–Outgoing Payment

(158)

COGS Vendor Invoice Receipt

Post Statistical Goods Receipt

(Optional)Change Order

Quantity

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

AR–Incoming Payment

(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Process Flow Diagram115 AFS: Sales of Nonstock Item with Order Specific Procurement

Sal

es

Ad

min

istr

atio

n

Pu

rch

asin

g M

anag

er

/ Bu

yer

Acc

ou

nts

P

ayab

le/

Rec

eiva

ble

Ven

do

rW

areh

ou

se

Cle

rkC

ust

om

er

Billing

Delivery of Items to

Customer’s Warehouse

Incoming Vendor Invoice

Customer Request for

Material

Order Confirmation

Create Sales Order

Credit Manageme

nt(108)

Auto-generates a Requisition

Display List of Purchase

Requisitions to be Assigned

Convert Assigned

Requisitions to Purchase

Orders

Approval of Purchase

Orders

GR Slip

AP-Outgoing Payment

(158)COGS Vendor Invoice Receipt

Post Goods Receipt

(Optional)Change Order

Quantity

AP = Accounts Payables, AR = Accounts Receivables, COGS = Cost of Goods Sold, GR = Goods Receipt

Post Goods Issue

Check Delivery Due List

Quotation for

Procurement

(128)

Billing Document

AR-Incoming Payment

(157)

Credit Manageme

nt(108)

Sal

es

Bill

ing

Print Order Confirmation

Picking List

Cu

sto

me

rProcess Flow Diagram611 Sales Order Processing with Allocation Run : Sale from Stock

Sal

es

Ad

min

istr

atio

nW

areh

ou

se C

lerk

Acc

ou

nts

R

ecei

vab

le

Eve

nt

Sales Order Entry

Customer Needs to Buy

Product

Inventory COGS

AR= Accounts Receivable, COGS = Cost of Goods Sold

Delivery NoteOrder

Confirmation

Pick List

Delivery& Picking

Post Goods Issue

AR–Incoming Payment

(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Billing

Allocation RunOrder Confirmation

Process Flow Diagram612 Cross-Company Sales Order Processing with Allocation Run

Sal

es

Ad

min

istr

atio

nS

ales

Bill

ing

Eve

nt

War

eho

use

C

lerk

Cu

sto

me

r

AR = Accounts Receivable

Create Sales Order

Sales Need to Be Processed

Across Different

Company Code

Delivery

Delivery Note Bill of Lading

Post Goods Issue

Pick List

Picking

Create Billing Document

Create Intercompany

Document

Display Intercompany

Document

Display Billing Document

Allocation Run Check EDI Transmission

Acc

ou

nts

R

ecei

vab

le

AR–

Incoming Payment

(157)

Closing Operations

SD (203)

Process Flow Diagram613 Pre-Order Processing (Sales)

Sal

es

Ad

min

istr

atio

n

Pro

du

cti

on

Pla

nn

er

Acc

ou

nts

P

ayab

le /

Rec

eiva

ble

Cu

sto

mer

Customer Request for

Material

Create Customer Order

Displaying Customer Order

Confirmation

AFS Stock/Requireme

nts List

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

AR–Incoming Payment

(157)

Billing Document

Closing Operations

SD (203)

War

eho

use

C

lerk

Allocation against Future

Receipts

Goods receipt of Purchase Order

Reallocation against Early

Allocation

Creating Delivery incl. Picking and

Goods Issue

Sal

es

Bill

ing

Delivery Note

Billing

Pu

r.

Man

ag

er

Bu

yer

Approve Purchase Order

Create Purchase Order

Process Flow Diagram614 Rush Order Processing (Sales)

Cu

sto

mer

Sal

es

Ad

min

ist

rati

on

War

eho

use

C

lerk

Acc

ou

nt

s R

ecei

vab

le

Eve

nt

Sales Order Entry

Customer Needs to Buy

Product

Inventory COGS

Delivery NoteOrder Confirmation

Pick List

Delivery Due List Post Goods Issue

AR–Incoming Payment

(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Billing

AR= Accounts Receivable, COGS = Cost of Goods Sold

War

eho

us

e M

on

ito

rin

g Checking status of Stock

Cu

sto

mer

Process Flow Diagram615 Sales Order Processing with Export Control

War

eho

use

C

lerk

Acc

ou

nt

s R

ecei

vab

le

Eve

nt

Customer Needs to Buy

Product

Inventory COGS

AR= Accounts Receivable, COGS = Cost of Goods Sold

Delivery NoteOrder Confirmation

Allocation Run

Delivery plus Pick and Post Goods Issue

AR–Incoming Payment

(157)

Billing Document

Closing Operations

SD (203)

Sal

es

Bill

ing

Billing

Sal

es

Ad

min

istr

atio

n

Order Confirmation(Print Sales Order)

Release Sales Order

Valid legal

control?

Yes

No

Sales Order Entry

Cu

sto

me

rProcess Flow Diagram616 Order to Cash with Packing and Transport Management

War

eho

use

C

lerk

Acc

ou

nts

R

ecei

vab

le

Eve

nt

Sales Order Entry

Customer Needs to Buy

Product

AR= Accounts Receivable, COGS = Cost of Goods Sold

Delivery Note

Create Delivery plus Picking and

Packing

Billing Document

Sal

es

Bill

ing

Billing including Freight Cost

Tra

nsp

ort

atio

n

Pla

nn

ing

Determine Shipment Cost

Post Goods Issue

AR–Incoming Payment

(157)

Closing Operations

SD (203)

Order Confirmation

Inventory COGS

Sal

es

Ad

min

istr

atio

n

Create & Complete Shipment Document

Allocation Run

Order Confirmation(Print Sales Order)

Check IDOC Processing for

Shipping Notification

Output with EDI?

Yes

No

Process Flow Diagram620 Finished Goods and Raw Materials Sourcing

Acc

ou

nts

P

ayab

le/

War

e-h

ou

se

Cle

rk

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

Pu

rch

ase

Man

age

r/B

uye

r

Create Purchase Requisition

Convert Assigned

Requisitions to Purchase Orders

Enter PO Confirmation

AP–

Outgoing Payment

(158)

COGS Vendor Invoice Receipt

Post Statistical Goods Receipt

Sal

es

Ad

min

ist

rati

on

Pro

du

ctio

n

Pla

nn

erV

end

or

Cu

sto

mer

Send Shipping Notification/ Confirmation

Incoming Vendor Invoice

Customer Request for

Material

Create Sales Order

Run MRPDisplay Stock Requirement list

Create Purchase Requisition manually

Approval of Purchase Orders

Material Document

Em

plo

yee

Process Flow Diagram621 Materials Subcontracting for Apparel and Footwear Industry

Sal

es

Ad

min

istr

atio

n

Pro

du

ctio

n

Pla

nn

er

Acc

ou

nts

P

ayab

le/

Ven

do

r/

Cu

sto

mer

War

e-h

ou

se C

lerk

AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt

Pu

rch

asin

g

Man

ager

/Bu

yer

Invoice Receipt for Two

Purchase Orders

Customer Request for

Material

Create Sales Order

Display Stock Requirement list

Incoming Vendor Invoice

Run MRP

Create Purchase Order (Header)

Enter PO

Confirmation Approval of

Purchase Order (Header)

AP

Outgoing Payment

(158)

COGS Vendor

Post Goods Receipt direct to Subcontractor

Create Inbound Delivery

Create Inbound Delivery

Create Outbound Delivery for

Remain Components

Goods Issue for Outbound Delivery

Post Goods Receipt

Create Purchase Order

(Component)

Enter PO

Confirmation Approval of

Purchase Order (Component)

Process Flow Diagram645 Activate Document Splitting for Apparel and Footwear Industry

Eve

nt

G / L Account Document with

Different Segments

Fin

ance

Man

ager

/ G

ener

al L

edg

er A

cco

un

tan

t

Display a General Ledger

Document

Reporting

Process Flow Diagram154 AFS: Prereq. Process Steps

Fin

ance

M

anag

er

Pro

du

cti

on

P

lan

ner

Eve

nt

Pro

du

ct C

ost

C

on

tro

ller

Roll MM Period to Current Period

UpdatingPreliminary

Cost EstimateMaster Data

Product Costing: Costing Run

Product Costing: Costing Run for

Configured Materials

Set Up Planning File Entry

Preliminary Cost for the Product Cost Collector

Create Product Cost Collectors

En

gin

eeri

ng

S

pec

ialis

t

Routings: Material Update

Run Materials Requirements

Planning (MRP)

Create and Schedule Job Posting

Ass

ets

Acc

ou

nta

nt Asset: Create

Asset MasterAsset

Acquisition

War

eho

use

C

lerk Initial Stock

Posting

Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.

Corresponds to a task step in the document

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Budget Planning: Indicates a budget planning document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

<F

unct

ion>

Ext

erna

l to

SA

P

Business Activity /

Event

Unit Process

Process Reference

Sub-Process

Reference

Process

Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Proces

s

Existing Version /

Data

System Pass/F

ail Decisio

n