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Make-To-Stock Scenario with Production Versions and Kanban Processing

The objective of this tutorial is to provide an overview of the extended functions in the Make-To-Stock Scenario with Production Versions and Kanban Processing in the IM&C industry.

The scenario Make-to-Stock (MTS) with Production Versions and Kanban Processing focuses on two production control methods in a make-to-stock environment: the use of production versions and Kanban processing.

  • Creation of independent requirements
  • Material Requirement Planning to calculate the requirements of the finished product as well as for the different components.
  • Production order processing with
    • Production Versions and Kanban
  • Creation of Sales Order
  • Execution of Delivery and Billing

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What is Split Valuation ? What is it Necessary ?

Split Valuation’ allows substocks of the same material to be managed in different stock accounts. This allows substocks to be valuated separately, and every transaction is carried out at the substock level. So, when processing a transaction, it is necessary to mention the substock.
The ‘split valuation’ is necessary if the material has:

  • Different Origins
  • Various Levels of Quality
  • Various Statuses

It is also required in situations where you need to make a distinction between ‘in-house produced materials’ and ‘materials procured externally,’ or if there is a distinction between ‘different deliveries.

Stock Transfer Between Plant Using STO with Delivery Order

This process used to transfer goods between plants using Stock transport order with Delivery order. Before doing this function the Material must be maintained in both supplying and receiving plants. And in sales organization data 1 screen the delivering plant must be maintained. This process has the following stages.

  1. Creation of stock transport order (STO) at receiving plant (T code – ME21N)
  2. Transfer posting of Material to Material (T Code MB1B)
  3. Creation of Replenishment order (Outbound delivery order) at Supplying plant with reference to the Stock transport order(STO) (T code – VL10B)
  4. Changing of the Replenishment order delivery .i.e. Goods issue at supplying plant (T code – VL02N)
  5. Goods Receipt at receiving plant (T Code MIGO)

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Materials Management (MM) Integration in Other Modules

  • Integration in Financial Accounting

Purchasing maintains data on the vendors that are defined in the system jointly with Finance. Information on each vendor is stored in a vendor master record that contains both accounting and procurement information. The vendor master record represents the creditor account in Finance.

  • Integration in Sales and Distribution

Within the framework of materials planning and control, a requirement that has arisen in the Sales area can be passed on to purchasing. In addition, when a requisition is created, it can be directly assigned to a sales order. As soon as you enter a sales order, you can initiate a dynamic availability check of on hand stock. Read more

Materials Management: User Training Manuals

Find below end user training manual for overall processes of the following topics

  • Generate Differences List
  • Goods Issuance of Bill Production Materials
  • GR for Materials Directly Charged on Projects
  • Goods Receipt for PO STO
  • GR for Initial Entry of Stock Balances
  • Stock Transport Order (PO STO)
  • Partial Acceptance & Setting of Delivery Completion Indicator
  • Material Reservation for Maintenance & Operation
  • Goods Receipt of Scrap Lots (In Batches)

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Transaction Keys in Materials Management

Also known as ‘process keys,’ the ‘Transaction Keys’ are pre-defined in the system to enable transaction postings in Inventory Management and Accounting (Invoice Verification). For each of the movement types in MM, there is a value string that stores these possible transactions.
The pre-defined transaction keys are:
  • BSX (used in Inventory Postings)
  • WRX (used in GR/IR Clearing Postings)
  • PRD (used to post Cost/Price differences)
  • UMB (used to post Revenue/Expenses from revaluation)
  • GBB (used in offsetting entries in Stock postings)

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Inventory Turnover: Concept And Use with Real Life Scenarios

Inventory Turnover is a prominent KPI in a lot of businesses. Kowboy, who runs SAP Mental Notes site, has posted a topic which you will get understanding the concept of Inventory turnover. Giving the formula, he also presents very clear real life scenarios for insight . You can read post from HERE