Exam 2 Flashcards
responsible for the sale and distribution of goods and services for a particular geographical area
Sales Organization
means by which a company delivers its goods and services to its customers
Distribution Channel
Sales Organization + Distribution Channel where pricing and material conditions are determined
Distribution Chain
consolidates materials and services with similar characteristics typically by product line
Division
Sales Organization + Distribution Channel + Division
Sales Area
Facility which company delivers products and services
Plant
physical or logical location from which outbound deliveries are sent
Shipping Points
determines customer’s credit worthiness, established credit limits, and monitors and manages the actual extension of credit
credit control areas
What are the four key organizational elements of material master data?
Client, Sales Organization, Distribution Channels, and Plant
information needed to conduct business with customers and to execute transactions related to the fulfillment processes
Customer Master
Customer Data is divided into what three segments?
i. General: Client (enterprise) - customer name, account #, address
ii. Accounting/Financial: Company Code - reconciliation account
iii. Sales Area: Sales Area - pricing, currency, Shipping data – delivering plant, methods. Billing data – Tax-related data.
What are the four required partner functions for customers in the fulfillment process?
Sold-to party, Ship-to party, Bill-to party, Payer
comprised of master data specific to one customer and one material.
Customer Material Information Record
What are some examples of Pricing Conditions?
Gross Price Discounts Freight Surcharges Taxes
determine the method employed to communicate outputs of the fulfillment process to the customer
Output Conditions
master data used by companies to determine the price of their conditions, can be fixed amounts, percentages, or sliding, can be independent, or relative
Pricing Conditions
Data in the output condition include:
Medium, Partner function, and transmission time.
extension of customer master record, and includes data relevant to managing credit for the customer in three segments: General Data, Credit Control Area Data, Overview
Credit Management Master Record
When is credit checked?
Sales order is created or changed
Delivery is created or changed
Post Goods Issue is performed during Shipping
request for information regarding a potential order that the customer might place with the company
Inquiry
binding agreement to sell the customer specific products under clearly defined delivery and pricing terms.
Quotation
Binding agreements made by customers to purchase specific quantities or values of materials
Contracts
Binding agreements, valid for a given time period, to sell a given quantity with specific delivery schedules
Scheduling Agreements
procedure that determines whether the required materials can be made available per the schedule lines in the sales order
Availability Check
internal document that contains information necessary to fill the customer purchase order in a standardized form.
Sales Order
A Sales Order defines:
What
When
How much
materials and quantities
Delivery dates and shipping information
pricing conditions and billing information
determines how the item is handled with regard to pricing, billing, and shipping. ex) standard, text, free-of-charge
Item Category
specify delivery quantities and dates
Schedule Lines
company begins with the required delivery date and then works in reverse order to determine when each process step must be performed.
Backward Scheduling
identifies which materials are to be shipped to which partner and from which plant.
Delivery Document
commercial document issued for an undercharge
Debit Memo
commercial document issued for a refund the company has issues to the customer typically for return of material or to adjust for an overcharge
Credit Memo
commercial document indicating products or services the company provided to the customer and the amount the customer must pay according to the payment terms
Invoice
payment posted to the customer account and the original invoice remains open
partial payment
original invoice is closed and a new invoice is created for the balance in the customer account
residual item
What are the four work lists for fulfillment?
- Preparing Deliveries
- Picking
- Post Goods Issue
- Billing
identifies raw materials or semi-finished goods that are necessary to produce a finished good.
Bill of Materials
material for which stock inventory is maintained, therefor it must have a material master
Stock Item (L)
material for which inventory in not maintained, therefore no material master
Nonstock Item (N)
used to include documents such as engineer drawling or assembly instructions
Document Item (D)
transient (not stocked) item created during manufacturing that has engineering significance; logically grouped set of materials that could collectively be considered a single material.
Intra Material or Phantom (M)
defines how operations are scheduled, costs confirmed, and operations confirmed.
control key
defines the specific capacity to be utilized for production
Scheduling basis
Defines how much work can be performed during a specified time
Available Capacity
time taken configuring the work center and equipment, typically fixed duration.
set up time
time that machine and/or labor needed to perform the operation; typically variable duration
processing time
time taken returning the machines to their original state; typically fixed.
teardown time
Movable resources that are shared among different work centers
Production Resource Tools (PRTs)
assigns components in a BOM to either a routing or a specific operating within the routing
Component Assignment
measure of how many units of a material a plant can produce within a given timeframe (uses data from BOM, work center, and routing)
Production Capacity
formal request for production that indicates: What material is needed When they are needed How many are needed (remains in system until acted upon)
Planned Order
An actual commitment to produce a specific quantity of materials by a certain date that includes three additional things from a planned order
Production Order
Where will they be produced?
What resources are to be used?
How much is it expected to cost?
In addition to defining what material will be created when and how many, the production order also defines
i. Where will they be produced?
ii. What resourced are to be used?
iii. How much is it expected to cost?
value when order is initially saved
Created (CRTD)
release of a partial quantity to manufacturing
Partially Released (PREL)
release of the full quantity to manufacturing
Released (REL)
the order is partially completed
Partially confirmed (PCNF)
the order is fully completed
Confirmed (CNF)
the order is associated with a sales order or project and partially delivered
Partially Delivered (PDLV)
the order is associated with a sales order or project and is fully delivered
Delivered (DLV)
used to how the work should be distributed, or split, among the machines or people of the work center
Capacity Splits
if production order requires non-stock materials or subcontracting, then SAP automatically create ____________
purchase requisitions
What are four things that cannot be done until a production order is released?
- Goods movement not possible
- Confirmations not possible
- Documents cannot be printed
- Settlement not possible
technique that automatically records the goods issue when the order is confirmed.
Backflushing
the process that issues (or moves) materials or components from inventory to the production order
Goods Issue
confirmation that records setup, processing, and teardown times.
time event confirmation
confirmation that records confirmations periodically.
time ticket confirmation
confirmation that periodically indicates the total progress of an operation at a time of the confirmation
progress confirmation
confirmation that confirms multiple operations at the same time
collective fast entry confirmation
confirmation that records the completion of an operation that automatically confirms preceding operations
milestone confirmation
Example: 30 units on an order; shift 1 confirms 20, shift 2 confirms 10, total confirmation is 30
Time ticket confirmation
Example: 30 units on an order; shift 1 confirms 20, shift 2 confirms 30, total confirmation is 30
progress confirmation
places the material confirmed on the production order into inventory
Goods Receipt
when the time span between goods issue and goods receipt is long, or material value is high, then the value of the material issued to production is periodically calculated and posted to the GL so the financial statements accurately reflect the current inventory.
work-in-process
indirect costs (overhead) are accumulated in cost centers and periodically allocated to production orders based on pre-established rules examples
Overhead allocation
ex) utilities, maintenance, salaries
either periodically or when the production order is compete, the variances on the production order must be posted to the GL
Order Settlement
production order is ______ when it is no longer necessary or possible to continue with production,
all resources reservations are deleted
purchase requisitions are removed
financial financial postings still need to be made
technically complete (TECO)
production order is ______ when technically complete and fully settled
Closed (CLSD)
Production specific reporting that identifies all of the activities in the system that can potentially impact the quantity of material in inventory.
stock/requirements list
What are the four goods movements?
- Goods Receipt (+ inventory, material doc, FI/CO docs)
- Goods Issue (- inventory, material doc, FI/CO docs)
- Stock Transfer (+/- inventory, material doc, sometimes FI/CO docs)
- Transfer Posting
When do companies use the two-step transfer procedure?
when there is lag time between two steps
Stock transfer within one plant: Example? One Step: Two-Step: Documents:
Storage location to Storage location
ex) inspection area –> raw materials
1) any stock status –> any stock status
2) unrestricted use –> in transit –> unrestricted use
Docs) Material Docs, NO FINANCIAL DOCUMENTS
Stock transfer within one company code Example? One Step: Two-Step: Documents:
Plant to Plant
ex) manufacturing plant –> distribution center
1) unrestricted –> unrestricted
2) unrestricted –> in transit –> unrestricted
Docs) Material Docs, Financial Docs
Stock transfer within one client Example? One Step: Two-Step: Documents:
Company Code to Company Code
Ex) intercompany sale from US to Germany
1) unrestricted use –> unrestricted use
2) unrestricted use –> in transit –> unrestricted use
Docs) Material Docs, TWO financial documents (one FI document for each company code)
What are the limitations of One Step and Two Step Stock Transfer Procedures?
- Cannot account for transportation cost
- Cannot track the progress of the stock transfer
- Cannot handle inter-company profit (uses book value of sending)
Priorities and sequences in which storage types and storage sections/picking areas are searched
Stock Placement and Removal
WM can have ______ units of measure
different
“each” in IM but “dozen” in WM
specific quantity of materials with similar characteristics that are stored in a single bin
Quant
used to plan movement of materials in and out of a warehouse
Transfer Requirement
used to change the status of a material
Posting Change Notice
what are the three source requirements for warehouse movement?
material document
delivery document
production order
what is used to execute warehouse movement?
transfer order
Warehouse must be linked to _____ storage location and can be linked to storage location across _____ plants
Storage location can be linked to only _____ warehouse and not all storage locations must be linked to a warehouse
One; multiple
one
Division of a warehouse based on the characteristics of the space, materials, or activity
Can be based on how materials are stored on material specification
Storage Type
Groups bins with similar characteristics
examples?
Storage Section
Fast moving, slow moving, heavy, light, small
Division of storage area based on removing or picking materials
Picking area
Smallest unit of space in WM, uniquely addressed and can vary in size and are grouped based on similar packing strategies
Storage Bins
What are the 4 benefits of material planning?
- Better response to customer orders
- Faster response to market changes
- Improved utilization of facilities and labor
- Reduced inventory levels
Demand that is calculated based on forecasted sales and actual sales
example of good?
forecasted sales = ?
actual sales = ?
Independent (finished goods, trading goods)
forecasted = planned independent requirements (PIR)
actual sales = customer independent requirements (CIR)
demand that is dependent upon demand for some other item
example of good?
dependent
semi-finished goods, raw materials
Procedure to determine the lot size of each procurement proposal generated by material planning
lot size key
Three types of Static Procedures (fixed quantity based on):
Fixed lot size = predetermined fixed quantity
lot-for-lot = exact quantity required
replenishment up to max. stock level
combine requirements from multiple time periods
period lot sizing procedures
EOQ, EPQ
optimum lot sizing procedures
What are the three common time estimates for material planning?
In house production time
planned delivery time
GR (goods receipt) processing time
In house production time can be further divided into three segments:
Setup time
processing time
Interoperation time
Used to prevent ERP systems from automatically changing procurement proposals during a specific period of time
Planning Time Fence
Make to Stock strategy in which the system generates procurement proposals based on calculated PIRS without regard to CIRs
Strategy #
Net Requirements Planning
Strategy 10
customer orders are fulfilled from an existing inventory of finished goods.
Make-to-Stock (MTS)
Make to Stock strategy based on PIRS, takes into account actual sales orders through a procedure called consumption
Planning with final Assembly
Strategy 40
production of finished goods and any needed semi-finished goods is triggered by a sales order - (CIR) based planning
Make-to-Order (MTO)
inventory of components (semi-finished goods) needed to make the finished good is procured or produced to stock
Assemble-to-Order (ATO)
Assemble-to-Order strategy where the finished product is made to order (CIR) and the components are made to stock (PIR)
strategy #
Planning without final assembly
strategy 50
when a strategy includes both PIRs and CIRs, and the CIRs are said to consume the PIRs
Consumption
Consumption period =
days, before or after, from the CIR that PIRs can be consumed
products with similar planning characteristics or similar manufacturing processes
product groups
lowest-level product group in any hierarchy consists of ______
materials (finished or traded)
CIR
Actual Sales
Customer Independent Requirements
PIR
Forecasted Sales
Planned Independent Requirements
