Week 4: The Integrated Supply Chain

Unit 1: Inventory Management

Inventory Management
Physical Inventory Management: business overview

The Physical Inventory Management business scenario enables you to count and adjust the physical
inventory in your warehouse.

Apart from being a legal requirement, inventory counting Inventory adjustments are necessary when stock balances
is important for the maintenance of accurate inventory and in the warehouse need to be adjusted because inventory on
the long-term profitability of your company hand does not match the inventory recorded in the system

Reduce
Inventory
1 Add
Inventory

3 2
3
2 1

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Inventory Management
Inventory count: variants
Logistics Area Count
LOA 1 LOA 2
Product A 3 9
Counting can be performed at the logistics area Product B 3
(LOA) or product level :

Logistics Area Count:

Logistics area count enables counting of all or some
products within a logistics area. AA
AA
A
A

AA
B
Product Count and Product Cycle Count: BB B A
A
A
A
A product count allows customers to count single B B

products when stored in a common location. A A AA

product cycle count allows customers to specify a A AA
A AA
count interval, so that products are regularly counted
on a rotational basis.
Product Count
Product A Product B
LOA 1 3
LOA 2 9 3
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Inventory Management
Inventory count: process overview

For midsize companies that want to optimize the management of their physical inventory, the count scenario
enables you to perform item counting, including approval processes and automatic financial postings, more
efficiently.

Initiate Fulfill Approve Analyze

Recount
Create a Confirm a Approve Print Stock
Count Count
Count Task Count Task Count Items Overview
Items

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Physical Inventory Management

After performing the Approval is done

Creation of count document In case of issues identified
count task after confirmation of
facilitates the system to during approval, a recount
manually, same is count tasks in order
automatically create count could be initiated or the task
confirmed in the to capture any
tasks could be totally rejected.
system via the task inconsistencies

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Inventory Management
System demo

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Inventory Management
Internal Logistics overview

Goods Movement
Internal Logistics covers two important aspects of
internal inventory management within a
Change of Stock
site/location of a company:

Consumption for Cost

▪ Ad-hoc movements that allow to update the inventory Center

Internal Logistics
with changes that are the result of unforeseen
circumstances. Reversal of ad-hoc postings is also Consumption for
possible via the common task Display/Reverse Project
Unplanned Confirmations.
▪ Replenishment and removal, to facilitate easy and Scrapping
efficient movement of raw material and finished
goods within a warehouse.
Replenishment

Removal

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Inventory Management
Process overview: ad-hoc movements

Check stock Unplanned goods Check stock Reverse goods

1 overview
2 movement
3 overview 4 movement
Goods Movement

X
Internal Logistics

e.g. moving stock from one logistics area (bin) to another logistics area (bin)

Check stock Change stock Check stock Change stock Change stock
1 overview 2 status (restricted/ 3 status (material 4 status (batch  5 overview
unrestricted)  material) batch)
Change of Stock

X X X
e.g. you have a stock marked as restricted for checking suspected damage. After checking, you
want to move it to unrestricted.

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Inventory Management
Process overview: ad-hoc movements

Unplanned goods Unplanned goods Check stock

Check stock Check journal
1 overview
2 issue to cost center 3 return from 4 overview 5 entries
Consumption for Cost cost center
Center

€ € $
Internal Logistics

$
e.g. goods have been issued to cost center, and after usage, excess/unused need to be returned

Check stock Unplanned goods Unplanned goods Check stock Check journal
1 overview
2 issue to project
3 return from project 4 overview 5 entries

Consumption for Project

€ $ € $

e.g. goods have been issued to project, and after usage, excess/unused need to be returned

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Inventory Management
Process overview: replenishment and removal

Maintain Check projected

New Request Task
1 replenishment 2 replenishment
3 replenishment 4 material flow 5 execution
rules
Replenishment
10041
10041
100330
Internal Logistics

e.g. replenishment of raw materials to production supply area or from high rack to low rack

Maintain New Request Check projected Task

1 removal rules
2 removal
3 removal 4 material flow 5 execution
Removal
10041
10041
100330

e.g. removal of finished goods from production to shipping area

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Inventory Management
System demo

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Inventory Management
Summary

▪ Inventory management via physical inventory counting

▪ How to execute counting
▪ Inventory management via various Internal Logistics activities
▪ How to manage Internal Logistics activities

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 4: The Integrated Supply Chain
Unit 2: The Extended Supply Chain
The Extended Supply Chain
Intracompany Stock Transfer: business overview

The Intracompany Stock Transfer business scenario enables you to transfer stock from one site to another
site within the same company. Stock transfers enable smooth operations in order fulfillment and
manufacturing. You can improve customer service levels while reducing overall inventory levels.

Distribution Center Factory

Site 1 / Planning Area 1 Site 2 / Planning Area 2

Production
Proposal
STO STO
Sales Order
Requirements
MRP Proposal
STO Requirement MRP
Purchase
Proposal

Inbound delivery at receiving site Outbound delivery from sending site

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The Extended Supply Chain
Intracompany Stock Transfer: business process

▪ The process allows for planning, initiating, and executing a stock transfer within sites/locations.

▪ You could initiate the process as an outcome of planning or directly create stock transfer orders for
execution.
▪ Its also possible to check goods in transit in the stock overview.

Planning Supply Initiate Fulfill Outbound Fulfill Inbound

Receive Execute
Check and Create Check Initiate Execute Create Warehouse
Plan Advised
Resolve an Stock Product Outbound Warehouse Outbound Inbound Tasks
Material Transfer Tasks (Optional)/ (Optional)/
Exception Availability Delivery Delivery Delivery
Order Post Goods Issue Notification Post Goods
Issue

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The Extended Supply Chain
System demo

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The Extended Supply Chain
Intercompany Logistics: business overview

Intercompany Logistics (a.k.a.

Intercompany Stock Transfers) are SAP ByD SAP ByD
used to transfer stock in-between Selling Company Buying Company

partner companies in order to fulfill Purchase order

Sales order
stock requirements. Creation

Sales order Purchase order

When required products are not in confirmation acknowledgement
stock in the receiving company,
they can be ordered from the Outbound delivery Inbound delivery
sending partner company.
Stock in transit
Customer invoice Supplier invoice

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The Extended Supply Chain
Intercompany Logistics: business process

The scenario combines the purchasing process of the receiving company with the selling process of the sending company

Buying Company Selling Company

Planning proposal Planning proposal PO creation with

creation release SO creation

Supply Supply Purchasing/

Planning Planning Sales

Post goods receipt Post goods issue Customer demand

based on ASN for delivery request release
and send ASN
Customer invoice with
Inbound Outbound Outbound
supplier invoice creation
Logistics Logistics Logistics

Invoicing Payment run

Receipt of payment

Accounting

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The Extended Supply Chain
System demo

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The Extended Supply Chain
Projects Integration: business overview

The Materials in Projects (Projects Integration) business scenario is relevant for project-based service
providers who handle materials in addition to services (for example, infrastructure service providers, IT, or
energy infrastructure as gas pipeline or wind power). They need to plan and schedule materials on projects,
procure these materials from within the project, and sell these materials along with the project services within
one project invoice.

Order Plan Plan Allocate Consume Bill

Project Demand

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The Extended Supply Chain
Projects Integration: business process

Especially for companies that handle long-running projects, there is a general need to store the inventory
allocated to a project and capture the expenses only when the goods are consumed by the project. This
scenario helps to achieve the same by integrating the projects, supply chain planning, and warehousing
operations.
You can increase customer satisfaction and grow profits by using planning capabilities to make sure that the
right amount of inventory is available for a project when required, and invoice for the goods that are
consumed.

Plan Initiate Execute Invoice

Plan Create project Plan against

Release Allocate the stocks Project consumes Project invoices
Plan materials stock order to the project
project/ against the project the goods from against the
project to consume initiate material stock order
project stock order allocated stock component
from request to and build
tasks consumed
inventory Supply Chain inventory
Management

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

The Extended Supply Chain
Projects Integration: business process details

Project
Management Supply Planning

Creating
Planning Project Planning
Project Stock Material
Order

Outbound Logistics Control

Project Customer
Supply Planning
Management Invoicing
Outbound Logistics

Allocating Consuming
Invoicing
Inventory Inventory

•Consumption at site
•Pick-up
•Pre-delivery

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

The Extended Supply Chain
Summary

▪ Integrated supply chain via Intracompany Stock Transfers

▪ Extended and integrated supply chain via Intercompany Stock Transfers
▪ Overview of the integration between projects and supply chain

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 4: The Integrated Supply Chain
Unit 3: Returns Processes
Returns Processes
Customer Returns: business overview

Customer Returns are requests made by customers for a company to take back the products they delivered
because the products either fail to meet the customers needs or lack quality.

Sales Delivery Invoice

Company Customer

Returns initiated by the customer

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Returns Processes
Customer Returns: business process

SAP Business ByDesign supports the entire customer returns management cycle, from delivery notification
and the physical product return through to payment based on a credit memo.

You can increase customer loyalty with efficient returns processes.

Initiate Manage Settle

Receive Create Post goods Release Manage

Initiate Post to
customer customer receipt with proposal payment
inbound ledger
return return or without for payment based on
processing
delivery notification tasks credit memo

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Returns Processes
Customer Returns: business process details

Inbound Sales Customer Payables

Logistics Orders Invoicing Payment Management

Processing Processing
Processing Processing Creating a
Inbound Receivables
Inbound Customer Customer
Delivery and Payments
Delivery Return Credit Memo
Notification

• With Credit Memo

• Based on ASN w/o • Without Credit Processing Payments with
Order-to-Cash task control Memo Accounts Maintenance -
(Sell-from-Stock) • Based on ASN w/ task Standard Variant
control
• Based on ASN from Quality Planning
Order-to-Cash Warehouse Provider
(with Specified Products) Order-to-Cash
(Sell-from-Stock)
Order-to-Cash (Third-Party Processing
Order Processing – Inspections Order-to-Cash
Material) (with Specified Products)

Over-the-Counter Sales Order-to-Cash (Third-Party

Order Processing –
Service and Repair Material)

Over-the-Counter Sales
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
Returns Processes
System demo

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Returns Processes
Returns to Suppliers: business overview

There is a great need to maximize customer service levels by carrying the right inventory at the same time as
being able to manage returns to the vendor if there is overstock, customer returns, or a product quality
problem.
Using this process consistently reduces the risk of holding obsolete inventory or losing visibility on returns,
thereby resulting in greater efficiency and profits.

Purchase Delivery Invoice

Supplier/Vendor Company

Returns initiated by the company

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Returns Processes
Returns to Suppliers: business process

The Returns to Suppliers scenario in SAP Business ByDesign enables you to manage product returns in a
simple manner that ensures that communications with the vendor match the physical return of the product and
subsequent financial settlement.
The entire supplier returns cycle from initiation of a supplier return request to shipment and settlement is
managed seamlessly in the system.

Initiate Fulfill Settle

Create Execute
Initiate Create
return to warehouse Post to
outbound outbound
supplier tasks (optional)/ ledger
processing delivery
request post goods issue

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Returns Processes
Returns to Suppliers: business process details

Outbound Outbound
Logistics Logistics

Initiating Processing
Return to Outbound
Supplier Delivery

• Without Tasks
Procure-to-Pay • With Tasks
(Stock) With Warehouse
Provider

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Returns Processes
System demo

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Returns Processes
Summary

▪ Handling of goods returned by customers

▪ Handling of goods that need to be returned to suppliers
▪ How to process customer and supplier returns in the system

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 4: The Integrated Supply Chain
Unit 4: Third-Party Processes
Third-Party Processes
Third-party order processing: business overview

The third-party order processing scenario enables companies to sell products that will be shipped directly from
the vendor/supplier to the customer without the need to carry the product in stock.

Order Company Order

Supplier/Vendor Direct Shipping Customer

Vendor  Customer

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Third-Party Processes
Third-party order processing: process overview

SAP Business ByDesign supports all the required process steps to execute and monitor the third-party order
processing process.
The process mainly consists of three parts: Order, Procure, and Settle.

Order Procure Settle

Receive
Send third- Acknowledge a Create Process
Create Create Create supplier Post to
party third-party third-party payables
opportunity sales sales invoice and ledger
purchase purchase delivery and
quotes order create
order order notification payments
invoice

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Third-Party Processes
Third-party order processing: process details

Purchase Sourcing Purchase Third-Party Receivables /

Supplier
New Sales Requests and Requests Order Cash &
Invoicing
Business Orders and Orders Contracting and Orders Fulfillment Liquidity Mgt

Processing
Processing
Payables
Supplier
and
Invoices
Payments

Creating Processing Processing Processing

Creating Processing
Sales Requests for Purchase Third-Party
Sales Purchase
Order Quotation Orders Delivery
Quote Requests Receivables /
Notifications Customer Cash
Invoicing & Liquidity Mgt

Creating Processing
Customer Receivables and
Invoices Payments

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Third-Party Processes
System demo

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Third-Party Processes
Third-party logistics: business overview

ByDesign Third-Party Logistics

ByDesign Third-Party
Provider
Logistics Provider
▪ Selling / Purchasing Site managed by
▪ Release to execution ▪ Shipping / Receiving
▪ Invoicing *3PL provider ▪ Quality checks
▪ Physical inventory
B2B ▪ Value-added services
▪ Definition of external
warehouse provider by ▪ etc…
site
▪ Message mapping
Site managed by done by warehouse
▪ Communication provider
own company
arrangements to define
connections with
warehouse provider

▪ Manual postings in the

absence of automatic
communication

*Third-Party Logistics
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
Third-Party Processes
Third-party logistics: process overview

The third-party logistics scenario in SAP Business ByDesign supports the following processes that
are physically carried out at the warehouse provider:
▪ Outbound: Sell from Stock, Returns to Suppliers, and Stock Transfers
▪ Inbound: Procure to Pay, Customer Returns, and Stock Transfers
▪ Inventory Changes: Inventory changes in externally-managed locations via scrapping, consumption/return
for cost center or projects, changes of stock attributes and inventory alignment postings with the externally-
managed location

Sales Order Outbound

Delivery Proposal 3PL Request 3PL Execution
Outbound Returns to Suppliers Delivery
Stock Transfer

Purchase Order Inbound

Inbound Delivery
Inbound Customer Returns
Notification
3PL Execution
Delivery
Stock Transfer

Inventory
Inventory 3PL Execution
Notification

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Third-Party Processes
Third-party logistics: process details

ByDesign Third-Party Logistics Provider

1:1
3PL
Sales Order Request Wave Management
n:m Internal Routing
ODER
Delivery
Yard Management
Customer Outbound Delivery
Proposals Picking
Execution Request
n:m Packing
VAS
3PL Request
Print Staging
Out Reference 1:n Loading
Export Papers
Outbound 1:1 Outbound
ASN Outbound Deliveries
option Delivery Delivery
ODEC Shipments
al
Inventory
Outbound Delivery ASN
Update
Execution Confirmation …

Customer
Invoice
Goods shipped
ASN optional to customer

Delivery Note

Third-Party Logistics – Sell from Stock process view

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Third-Party Processes
System demo

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Third-Party Processes
Summary

▪ How to process an end-to-end third-party order processing (TPOP) scenario

▪ How to process end-to-end third party logistics (3PL): sales and purchasing scenarios
▪ The different capabilities for 3PL in SAP Business ByDesign

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 4: The Integrated Supply Chain
Unit 5: Repair Processes
Repair Processes
Business overview

The Service and Repair scenario enables the service department of a company to provide repair and
maintenance services to their customers and handle them efficiently in the system.

These processes help increase customer satisfaction, decrease response time, lower cost to service, eliminate
field service inefficiencies, reduce spare parts inventory, and improve long-term customer loyalty.

1 Service request/order from customer

On-Site (customer site)

2 Carry out repairs Company Service Center

Supplier Service Center

3 Financial settlement

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Repair Processes
Business process overview

SAP Business ByDesign helps efficiently manage the service and repair business: from service request,
assignment of personnel, and service fulfillment through to settlement of invoices.

Moreover, the process is fully integrated into the supply chain, demand planning, and logistics control for spare
parts. The process can be divided into the following steps:

Order Assign Resolve Settle

Create Plan & Assign Release Dispatch Create

Perform Create Collect Post to
Service Dispatch Spare Service Spare Confirm-
Service Invoice Payment Ledger
Order Order Parts Order Parts ation

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Repair Processes
On-site: customer location (1)
Pick-Up
As mentioned earlier, SAP Business ByDesign
supports processes that enable service technicians to
carry out repairs at a customer’s own location.
There are two possibilities here: Service Requested

Pick-up
Pre-delivery
Pick-Up of Spare Parts

Customer Company

Unconsumed Parts  Goods Movement

Used Parts  Tech. Confirms

Financial Settlement

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Repair Processes
On-site: customer location (2)
Pre-Delivery
As mentioned earlier, SAP Business ByDesign
supports processes that enable service technicians to
carry out repairs at a customer’s own location.
There are two possibilities here: Service Requested

Pick-up
Pre-delivery
Spare Parts Pre-Delivered

Technician Visits
Customer Company
Used Parts  Tech. Confirms

Unconsumed Parts  Returns Delivery

Financial Settlement

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Repair Processes
On-site: customer location – Process details
Collaboration Receivables /
Window/ Service Service and Customer Cash &
Groupware Orders Repair Invoicing Liquidity Mgt
Client

Handling an Creating
Dispatching Processing
Incoming and Confirming Creating
and Executing Receivables
Customer Planning Service Customer
Scheduling Services and
Inquiry Service Execution Invoice
Orders Payments
Orders
▪ with central
▪ telephony scheduling ▪ using a service ▪ processing
channel ▪ with decentral confirmation Expense externally-initiated
▪ fax/e-mail scheduling ▪ within order Reimbursement payments by
channel Outbound incoming bank
Logistics Outbound Internal Inbound transfer
Control Outbound
Logistics Logistics Logistics ▪ processing
Logistics externally-initiated
Request to
Resolve payments by
incoming check
Goods
Movement ▪ … (7 more
Initiate Outbound variants)
Outbound Delivery
Processing Processing
Inbound
Delivery Inbound
▪ with task Notification Delivery
Processing Processing
control
▪ without task
control ▪ parts return ▪ based on ASN with task control
notification (pre- ▪ based on ASN without task
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC delivery) control 6
Repair Processes
System demo

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Repair Processes
At a company’s own service center

▪ In case of repair at a company’s service

center, the equipment to be repaired is shipped Service Requested
over by the customer.

▪ The repairs are carried out in the company’s

service center, after which the goods are
shipped back to the customer. Equipment for repair shipped by customer
Customer Returns @ Company Location
▪ In the entire process flow, the ownership of the
goods always remains with the customer. Customer Company

After repairs, equipment shipped back

Outbound Delivery @ Company Location

Financial Settlement

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Repair Processes
At a company’s own service center – Process details

Customer
Customer Customer Outbound
Return Service Invoice
Service Order Return Return Delivery
Inbound Confirmation Processing
Notification Document Processing
Delivery

Marked for ▪ Link to Service Return Serviced

Servicing at Order Equipment to
Company Site Customer
▪ Initiate Outbound
Delivery

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Repair Processes
System demo

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Repair Processes
At a supplier’s own service center

▪ In case of repair at a supplier’s service

center, the equipment to be repaired is
shipped over by the customer to the supplier
Service Requested
directly.

▪ The repairs are carried out in the supplier’s Customer Company

service center, after which the goods are
shipped back to the customer.

▪ The service order processing is carried out in

▪ Shipping for Purchasing of Service
the SAP Business ByDesign system. Servicing and Spare Parts
Supplier/ Required for Servicing
▪ Receiving after
Servicing Vendor

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Repair Processes
At a supplier’s own service center – Process details

Goods & Customer

Purchase Service Supplier
Service Order Service Invoice
Order Confirmation Invoicing
Receipt Processing

Marked for Servicing To Customer Based

at Supplier Site on Service Order

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Repair Processes
Summary

▪ Overview of the different types of repair processes supported

▪ How to process the repair scenarios within the system
▪ The relationship between repair and returns processes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13

Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 4: The Integrated Supply Chain
Unit 6: Supporting Concepts
Supporting Concepts
Kits (product bundles)

▪ Product bundling is the offering of several products

for sale as one combined product. It is a common
feature in many competitive product markets.
Industries engaged in the practice include healthcare,
fast moving consumer goods, wholesale, and
component manufacturing.

▪ Product bundling is offered in SAP Business

ByDesign via a feature called ‘kits’. Kits are defined
as a logical group of items that can be sold together
as one single unit.

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Supporting Concepts
Kits: business process overview

▪ In SAP Business ByDesign, kits are supported only in the following business processes:
– Order to Cash
– Procure to Pay
– Third-Party Order Processing
– Third-Party Logistics: Sales (Order to Cash)
– Third-Party Logistics: Purchasing (Procure to Pay)
– Over-the-Counter Sales
▪ Kits are supported only for materials.
▪ The process flow for each of the above processes remains
the same, the only difference being that kits are used in these processes.

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Supporting Concepts
Kits: process details (1)

To use kits in the relevant business processes, it is necessary to set them up correctly and also maintain the
kit components in a ‘kit list’. The basic steps are described below.

Create Material ID Description Quantity

Create Activate 1001 Laptop KIT 1
New Kit
Kit List Kit List 2001 Laptop 1
Material
2010 Mouse 2
2034 Laptop Bag 1

Setup for Kits

Kit Header Kit Components

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Supporting Concepts
Kits: process details (2)

A typical sales process flow with kits is shown below.

Kit explosion into ATP at component Inventory at Pricing at kit header

components level component level level

Create Sales Initiate

Outbound Customer Receivable and
Quote/Sales Outbound
Delivery Invoicing Payment
Orders Delivery

Kits flow through the entire

process as any other
normal material

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Supporting Concepts
System demo

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Supporting Concepts
Serial numbers

Serial numbers are unique identifiers that you can assign to a single item of a tangible product. They are used
to differentiate that item from other items of the same product.

Serial numbers in SAP Business ByDesign are represented by registered products. These are integrated into
subsequent service scenarios, for example, warranty handling.

Currently, the serial numbers feature is very loosely coupled across all scenarios. However, with future
releases, this is set to change, with tight coupling and integration provided for serial numbers across all supply
chain processes*.

*This is the current state of planning and may be changed by SAP at any time

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Supporting Concepts
Roadmap overview

Serial numbers will be supported across all major scenarios. Some of the key
benefits are listed below:
▪ Validations in the system across logistics operations in relation to serial
numbers, e.g.
– A same serial number cannot be issued any number of times across documents
– A serial number can be taken as a return with a warning, if the serial number has
never been issued before
▪ Traceability / Tracking of serial number
▪ Possibility to identify the serial number up to a bin level in inventory
▪ Provision to transfer serial numbers between bins
▪ Provision to capture serial numbers in production processes
▪ Provision to identify the serial numbers parent – child relationship
▪ Linkage between the batch and the serial numbers in a particular batch

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Supporting Concepts
Summary

▪ Overview of kits in SAP Business ByDesign

▪ How to set up, configure and use kits in the system
▪ A quick overview of the upcoming feature of Serial Number Management

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.