Saturday, March 28, 2009

SAP Tutorial - Part 4 - Sequential Walk Through

Sequential Walk Through


Pre-sales activity--planning and availability support for the sales personnel
Sales Order--The actual entry of the sales order into the system done by the salesperson at the point of sales perhaps using a PC and Internet connections.
Determining where the most efficient source of the ordered product is in inventory and shipping it.
Customer Billing
Customer Payment


Sales and Operations Planning SOP where the sales forecasts are used in a production planning model to check feasibility.
Master Production Scheduling MPS--The actual plan for the whole production process
Material Requirements Planning MRP--Where the production plan is actually converted into raw materials input requirements.
Planned Order--When materials are available and capacity exists this plan is created
Production Order.
Shop Floor Control where the actual production takes place and is registered into the system as finished goods.


Requisition--Once the Production manager plans to manufacture something a requisition for the raw materials required but not on hand must be prepared.
Vendor Selection--made by the purchasing department
Purchase order sent
goods receipt increasing inventory
Invoice verification as it is received from vendor
Payment to vendor.

Finance and Accounting

Sales events must be captured at the proper time into the ledger system
Inventory must be adjusted to match goods shipped
Inventory must be adjusted to match raw materials received
Inventory must be adjusted to move value from raw materials to work in process
Inventory must be adjusted to increase finished goods when they are produced
Accounts Payable must be set up for purchases
Accounts Receivable must reflect goods billed but not yet paid for
Business Process Engineering must not only identify all these steps but must also find the most efficient way to minimize redundant actions. For example, when sales are made, inventory and manufacturing plans should be automatically updated. When manufacturing plans are updated raw materials should be automatically ordered from vendors. When finished goods are shipped customers should be automatically billed at the same instant. Real situations are far more complex than the simple explanation above. c

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