MRP P2P - Second mindmap

MRP P2P - Second mindmap

1. Material master

   • MRP
     • According to Jurgen, APO is used to plan everything, only minor things like packaging material is used in mrp run.
     • MRP types
       • X0
         • External planning (APO)
           • used for all materials used in BOMs
       • P1
         • MRP, fixing type1
           • used for VERP materials
     • Selection method
       • 2 if material has BOM assigned
     • Prod ver
       • used for the identification of the BOM in APO
         • mandatory if material has a BOM assigned
         • higher number of prod vers means lower priority of the BOM. Normal is 9500
       • also assigned in PIR
         • table CMPDS1 if multiple BOMs linked to one PIR
     • MPS=MRP for production is not used at Lily. It is done in APO
     • Planning mode (MD02)
       • 1-adapt planning
       • 2-re explode
       • 3-delete and recreate
     • Total planning (MD01)
       • netch, netpl, neupl
       • use parallel processing
       • MDBT
         • to check schedule of background plan mrp
     • Exception report
       • Zs0001
       • MD06
   • Prfit center is mandatory. Needs to be the same in all plants

2. Release Purchase orders

   • SAP Business Workplace
   • Approver inbox portal
     • also information is received by email
     • substitution rule can be created in the portal

3. Additional purchasing costs

   • zb00 after po is sent, does it trigger new release?
   • Objective minimize invoice discrepancies
   • Include known costs (batch change, tool costs, klischee, etc) at time of PO acknowledgment
   • Costs should not be posted as unplanned costs
   • BSM will add the additional cost with cond type ZB00. Option to maintain the ZB00 in PIR is not used

4. Invoicing

   • HP process the invoices in SAP
   • When posted it is placed on payment block,
     • release
       • with payment approval from requisitioner
       • PO discrepancy is resolved
         • Unplanned delivery charges Agreed-upon (planned) delivery charges need to be included in the purchase order. Normally per Lilly standards, the standard price of a material already includes delivery costs.  However, if this is not the case, planned delivery charges can be accounted for by  adding delivery charges to the price per unit via a price condition or by adding a separate purchase order item with item category ‘1’ (G/L account) in the purchase order for these charges. In the case of adding price conditions for freight or customs, this should be done for the purchasing info record whenever possible so that it is automatically copied into the purchase order item. Otherwise the price conditions can also be entered manually in the purchase order item itself. In the case of adding a separate item, the ‘goods receipt’ flag on the ‘Delivery’ tab of the purchase order item has to be removed. Otherwise the invoice item will be flagged for quantity variance (because no goods receipt has been posted), and therefore the whole invoice will be blocked for payment and the PO item will be included in the GR/IR reconciliation process. If unplanned delivery charges occur and are manually entered during invoice posting, they are automatically spread across all purchase order items and not charged to a separate cost element. If the applicable thresholds are exceeded, this will lead to price variance blocks even if the invoiced price per unit exactly matches the purchase order price per unit. If the unplanned delivery charges by the vendor are justified, how can this invoice block be resolved? It will be necessary to add a separate item to the purchase order as described above, reverse the invoice and reenter it by assigning the unplanned delivery costs to the additional purchase order item.
         • 3-way Match ensures the PO, GR, and Inv match within certain tolerances, with respect to price and quantity Three blocks for this process, set by Company Code Quantity Tolerance (tolerance key = DW) Definition: If no GR has been posted, what Qty tolerance is allowed? All affiliates have this set to “0,” meaning Inv always blocked if no GR Quantity Variance (tolerance key = DQ) Definition: If Inv Qty > GR Qty, what Qty tolerance is allowed? CC 860: Absolute 480 CHF or 5% Tolerance is cumulative for the line; so system looks at all GR and Inv quantities for that line Positive tolerance (only applies when Invoice over tolerance, not under) Line Price Variance (tolerance key = PP) Definition: If Inv line value > PO line value, what tolerance is allowed? CC 860: Absoult 960 CHF or 10% Calculation: Inv Qty * PO unit price compared to Inv value without freight Positive tolerance (only applies when Invoice over tolerance, not under)