In this unit, we will cover the following:
Client Definition
Company Code Definition
Plant Definition
Storage Location Definition
Demonstration: Configuration of Plant and Storage Location
Exercise: Configuration of Plant and Storage Location
Demonstration: Plant Parameters Configuration for Inventory Management
Exercise: Plant Parameters Configuration for Inventory Management
Definitions of Enterprise Structure Values
The Enterprise Structure is often the first area to define when implementing your SAP solution.
As you configure your solution, you may need to adjust the Enterprise Structure you defined early in your project.
Definitions for all of the Enterprise Structure settings appear in this section because they are all used in some way in Inventory Management, even though not all fall specifically under the Inventory Management module.
The Enterprise Structures are:
Client
Company Code
Plant
Client
In SAP, Client represents a self-contained SAP system. The client has its own master records, configuration, and tables. Most small to mid-size companies have one Production client that runs the „live‟ environment. Larger companies may choose to have multiple clients by division or corporate group.
Company Code
A company code contains a complete set of General Ledger accounts. Create a Company Code for each entity that requires you to create unique Balance Sheets and Profit and Loss statements.
Financial Accounting Business Analysts typically configure Company Code. For your reference, the configuration for Company Code shown below is maintained in the Implementation Guide (known as IMG to the SAP system).
To access the Implementation Guide, execute Transaction Code SPRO and click on .
Menu Path: Enterprise Structure Definition Financial Accounting Edit, copy, check, delete Company Code
Plant
Many considerations exist when determining what to call a „plant‟ within a company.
Think of a Plant as a physical location – it does not have to produce or store anything. The Delivery Address that appears in the Purchasing and Inventory Management documents comes from the Plant. So, if you have goods delivered to a different address, consider setting up another Plant.
The address can be maintained in the Storage Location or the Plant.
48 Rev. 01/10/10 Inventory Management ECC 6.0 You can have more than one plant represent the same physical site. For
example, if you need to divide up the plant for other reasons, like having different MRP and forecast data. Also, materials may be valuated either at the company code or plant level; so, if you need to segregate material valuation, you can create multiple plants for that purpose.
Would a sales office or administrative office be set up as a Plant as well? Ask yourself the following questions before deciding whether to create one or multiple plants:
1. Do your materials need different MRP and forecast data? 2. Do your materials require different valuation methods? 3. Do you ship from or to more than one physical location?
Here‟s how a plant relates to other organizational elements:
The plant is assigned to only one company code.
A company code can have multiple plants.
Multiple storage locations can belong to a single plant.
A single business area is assigned to a plant and to a division. (Division is defined when we cover the Sales area enterprise structure.)
A plant can be assigned to several combinations of sales organizations and distribution channels.
A plant can have several shipping points. (Shipping points are defined when we cover the Sales and Distribution enterprise structure.)
The configuration for Plants shown here is maintained in the IMG:
Enterprise Structure Definition Logistics-General Define, copy, delete, check plant
The assignment of plants to company codes is maintained here:
Enterprise Structure Assignment Logistics-General Assign plant to company code
The following illustrations show the right and wrong ways to associate a plant to company codes. Plant 1000 Plant 2000 Company SP01 Plant 1000 Company SP01 Company SP02
Storage Location
Within a plant, you can have multiple storage locations. A storage location is where stock is physically kept in a plant. You must always create at least one storage location for a plant, whether you are storing inventory there or not.
The address for a storage location is only used for internal purposes and does not appear on purchasing and some inventory management documents. (An address on a purchasing document comes from the Plant field.)
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You carry out physical inventory at the storage location level. Stocks are managed by quantity at the storage location and by value (also called the valuation level) at the plant or company code level.
If you use Warehouse Management (WM), you can assign one or more storage locations to a warehouse.
The quantity of the inventory exists at the storage location level, the value is at the plant level, and the physical location of the inventory is at the Warehouse/Storage Type/Storage bin level.
Finally, you must create at least one storage location for a plant, whether you are storing inventory there or not.
Ask yourself the following questions to help determine how to set up your storage locations:
1. How do you want to perform physical inventory? 2. How will you assign storage locations to warehouses?
The following relationships apply to Storage Locations within the Enterprise Structure:
More than one storage location can exist in a plant.
A storage location has at least one address.
Stock is managed at the storage location level.
Physical Inventory is carried out at the storage location level.
A storage location can be assigned to one or many warehouses.
The configuration for Storage Locations is maintained in the IMG here:
Enterprise Structure Definition Materials Management Maintain Storage Location
The ways to associate a storage location to plants are shown in the following illustrations. Plant 1000 Plant 2000 Food Mart Storage Location 0010 Food Mart Storage Location 0020 Plant 1000 Plant 2000 Food Mart Storage Location 0010 Food Mart Storage Location 0020
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Demonstration: Plant and Storage Location
Configuration
In this section, we will configure the following structures:
Plant
Storage Location
For each of these configurations, the instructor demonstrates how to perform it, followed by a student exercise based on step-by-step instructions.
Configuration of Plant
To configure a new Plant, follow these steps:
1. Navigate to the IMG and execute the following transaction:
Transaction Code: (no unique transaction code, must use menu)
Menu Path: Enterprise Structure Definition Logistics-General
Define, copy, delete, check plant
The following pop-up box appears with the instruction: Perform the
activities in the specified order.
The first step is to click on Copy, delete, check Plant, then click on .
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Field Value
From Plant 3000
To Plant XXXX (where XX is the number assigned to you by the instructor)
3. Click to complete the copy.
You may receive the following pop-up message. Just click to acknowledge. For further information about the message, click the Help icon.
4. Click on the Completed Activities tab to verify the Plant was copied successfully.
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5. Click the green arrow to navigate back to the following screen:
6. Click on Define Plant and click .
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9. Enter the following information on the Change View "Plants": Details of Selected Set screen.
Field Value
Plant XXXX (where XX is the number assigned to you by the instructor)
Name 1 Plant XXXX
Name 2 <your choice>
Yo
10. Click . The Edit Address screen appears. Complete the Address for your Plant with the values shown here:
Field Value
Name 1/2 PLANT XXXX
Field Value
Postal Code <your choice> City <your choice>
Country US
Region <your choice>
Jurisdiction Code <Select from drop-down list based on your chosen Region>
Telephone 303-555-1212
60 Rev. 01/10/10 Inventory Management ECC 6.0 To assign your Plant to a Company Code, follow these steps:
If you copied from one plant to your plant, SAP will copy the Company Code assignment and you only need to verify it is attached to the correct company code.
1. Follow the transaction path in the IMG:
Menu Path: Enterprise Structure Assignment Logistics-General
Assign plant to company code OR
Transaction Code: OX18
2. Click on the button.
3. Enter Company Code 3000 and your Plant, click and .
Make sure you select your Plant and not one assigned to another student.
Configuration of Storage Location
To configure a new Storage Location for your Plant, follow these steps:
1. Navigate to the IMG and execute the following transaction:
Transaction Code: OX09
Menu Path: Enterprise Structure Definition Materials Management
Maintain Storage Location
When you create a Storage Location, you are prompted for the Plant for which you are creating the Storage Location.
2. Enter your Plant and click . .
Field Value
Plant XXXX (where XX is the number assigned to you by the instructor)
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3. Since you copied from another plant when you created your plant, you will
first need to delete the existing entries. To do so, click the Select All icon and then click the Delete icon. Click before continuing.
4. Click on the icon. Enter values based on this table:
Field Value
Storage Location 00XX (where XX is the number assigned to
you by your instructor)
Description Storage Loc XX (where XX is the number
assigned to you by your instructor)
You can maintain an address that is different than the address of the plant by selecting your Storage Location and double clicking on Addresses of
Storage Locations. However, you will need to work with your development
team to ensure this address overrides the address of the Plant on transfer documents, purchasing documents, and any other documents on which you print the physical address.
To add an address, select the Storage Location and double-click on in the dialog structure pane. Click on , enter a '1' in the No. column and click on the address icon to maintain the address.
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Exercise: Plant and Storage Location Configuration
Complete the configuration for both the plant and storage location using the steps described in the previous demonstration section.
Write your plant number: ____________
Write your storage location number: ____________
Describe how your company has set up your plants and storage locations:
________________________________________________________________
________________________________________________________________
________________________________________________________________
Demonstration: Plant Parameters Configuration for
Inventory Management
In this section, we will cover some key configuration parameters for the plant using in Inventory Management. The instructor will demonstrate how to perform the configuration and provide details of the key settings found in this
configuration.
When you create a new Plant, as you did in the previous section, you must maintain the Plant Parameters for Inventory Management. If you used the Copy function to create your plant, it has the plant parameters of the reference plant.
The plant parameters can be found in a single, consolidated transaction, which we will demonstrate here. However, the same parameters can also be found individually throughout the Inventory Management IMG node.
1. Navigate to the IMG and execute the following transaction:
Transaction Code: (no unique transaction code, must use menu)
Menu Path: Materials Management Inventory Management and Physical
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2. Select the plant and click or double-click on the plant to display the details.
The following chart explains some of the key settings of the plant parameters.
Field Description
Goods Movements Create SLoc Automatically
Select this indicator if you want to allow automatically extending a material to a storage location for which it has not already been extended in the Create Material Master transaction.
BBD/Prod. Date Best Before Date/Production Date – Select the indicator if you want to employ shelf life expiration dates in this plant. The indicator is used for
materials that have been flagged with a shelf life in the material master or purchase order. The
movement type being used must also be flagged as relevant for shelf life expiration procedures.
Del. Compl. Default Select this indicator if you want to default the delivery complete indicator on the goods receipt transaction. Otherwise, the user will have to manually select it at the time of goods receipt to indicate that no further deliveries will be made against this line item. It is automatically selected if the full ordered quantity is delivered.
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Field Description
BOM Usage The BOM Usage field defines the areas in which a BOM is used, such as production or sales. This field can be used to restrict only BOMs created with a specific BOM Usage.
Miss. Parts active If selected, the missing parts check is active when performing the goods receipt. The missing parts check will issue a warning or error message at the time of goods receipt and also can be set up to notify the material planner. The transaction must be set up with a checking rule for this function to work.
BOM Application The BOM application is a configuration function that determines which alternatives to the proposed BOM exist and prioritize the alternatives.
Summarize Miss. Parts
This indicator drives whether the materials planner receives a summary of missing parts per
transaction or a single message per missing part. Trans./Event Type Transaction/event type determines the document
storage and number assignment. It differentiates between events that occur in Inventory
Management (goods issues, goods receipts, etc.). Possible Transaction/event types:
Field Description
BaWU deactivated Batch Where Used List – if the indicator is selected, the batch where used list is not active and the users will not be able to execute the 'batch where used list' function to determine where else in the plant the batch is in use.
GR/GI slip number If you wish to assign numbers to goods receipt and goods issue slips, select this indicator and maintain a number range and output determination for these slips.
BaWU
synchron.postng
Selecting this indicator will update the batch where used list at the time the inventory management movement is completed.
BchNo. Auto GR AcAsst
Select this indicator if you want SAP to
automatically generate a batch number for batch managed materials at time of goods receipt. Physical Inventory
Stock Type This is the stock type for which the physical inventory is carried out. Here are the options:
Alternative Unit If the indicator is set, you can carry out physical inventory in a unit of measure other than the standard stockkeeping UoM.
Batch in Background
SAP can run the physical inventory material selection in the background to propose a batch of inventory to be counted. Select this indicator if you would like this option. Otherwise, you will have to select the materials to be counted from a selection screen.
Change Document Select this indicator if you want SAP to create a change document when you change a physical inventory count or document.
Adj. Book Inventory The following selections are possible in this setting:
This indicates if the book inventory balance adjustment is active in the physical inventory documents.
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Field Description
Reason for Difference
Provides a reason for physical inventory differences.
Reservations
Movement allowed Indicator that specifies if movements are allowed for reserved items.
Days mvt. Allowed If movements are allowed, this indicates the number of days from the requirement date
maintained on the reservation that the movements are allowed. For example, if the reservation has a date of requirement of 9/10/09, and the value of '10' is in this field, a movement can be made up to 10 days earlier – or as early as 9/1/09.
Retention period This is the number of days for which a reservation remains active after the requirements date. Negative stocks With the indicators under the Negative stocks tab,
you can allow negative stocks for the materials in this plant. You may want to allow negative stocks to not hinder the movements of materials in your warehouse. It is possible to have stock on hand, but SAP may show an incorrect stock quantity due to human error.
To allow negative stocks, you must also set the XBKNG indicator in another customizing step found in the IMG under Goods
Issue/Transfer Postings Allow Negative Stock
Exercise: Plant Parameters Configuration for
Inventory Management
In this exercise, you will be asked to set some of the Inventory Management Plant indicators for the plant you created.
1. Execute the transaction to modify the indicators for plants in Inventory Management.
2. Allow storage locations to be automatically created. What did you do to indicate this?
_____________________________________________________________
_____________________________________________________________
3. Allows movements within 15 days of a reservation requirement date. What did you do to indicate this?
_____________________________________________________________
_____________________________________________________________
4. Allow negative stocks for sales order stocks. What did you do to indicate this?
_____________________________________________________________
_____________________________________________________________
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