Exercise 1
A. A sales company wants to process a sales order and the steps involved in a sales
order process are as follows:
1. Enter Sales order
2. Check the availability of stock
3. If material is available, pick up the material, else issue a purchase requisition
(perform step 8 to step 12)
4. Pack the material
5. Post the goods issue
6. Issue the invoice to customer
7. Receive the customer payment and update the system
8. Issue the purchase order
9. Notify the vendor
10. Vendor will ship the products
11. Receive the Goods and the Invoice
12. Pay the vendor on the basis of the invoice.
On the basis of the above-mentioned steps indicate the steps involved for completing the
transaction on SAP. Indicate the Organisational data, Master entries, Rules and
transactions that needs to be created.
B. Brit Foods is into the manufacturing of food and confectionary products. The company has its
operations in India. Recently the management has decided to implement an Enterprise
solution to integrate the various functions. The company has purchased SAP license, and the
client number is 725. You are a SAP implementation consultant and have been given an
assignment to understand the structure and help Brit Foods with SAP implementation.
The product range includes Biscuits, Cookies and chocolates. Sales are managed from their
Delhi office and they sell their products through wholesalers only except some gift packs,
which they sell through the retailers. The company has the main manufacturing units at
Bangalore and Pune. The delivery of their products is done using their own delivery vehicles.
Using the above description define the complete sales module structure.
Exercise 2
Fin Cables hired Brittlecone Ltd. as a consultant in the area of implementing an
ERP package for the company. Their first task was to study the 'as is' processes.
After mapping the various processes they came to a conclusion that SAP would
be the best ERP solution for their requirement and the company thus started
SAP implementation. Mr. Gaurav was made in charge of the Material
Management implementation. His first task was to map the Material Management
Organizational structure of the company. He met the various people in charge of
the Material function and made a summary of the "as is" processes which are
mentioned below. You, the junior consultant is handed over the task to draw the
organizational structure along with the identification codes based on the
information provided.
a. Fin Cables has three manufacturing Plants located at Pimpri, Urse and
Goa. All the three plants produce House wire. The headquarters' of the
company’ is located at the Pune's administrative office and it directly sells
to distributors in Pimpri region. The company also has a department who
is looking after export market and selling in neighboring countries like
Nepal, Bangladesh, Srilanka and a few south east Asian countries. They
have branch offices in each of the four regions that is North, South, East
and west. All the manufacturing plants have three storage locations that
are Raw material inventory, Quality check and finished goods inventory,
which are allocated an identification code 10, 20 and 30 respectively.
The client code is 800 and company code is C000.
b. The company has a Purchasing Organization(P000) located at the pimpri
which buys raw material for all the three plants headed by Ms. Anjali. She
has two people under her that is Ram and Rahim looking after purchase of
PlasticGranules (100) and Copper(200) respectively. Ram always buys
the material from Dinesh Enterprises and Rahim buys the material either
from Sonia Enterprises or from Gupta cables.
c. Mr. Gaurav was discussing the reliability and robustness of the purchase
function of Fin Cables. During the discussions it came out that Ms.Anjali
could do a good job as far as the pimpri and Urse plants are concerned
but could not manage the purchase function of Goa plant well. Based on
this suggestion the company decided to recruit Mr. Hariharan (P001) as
the head of purchasing function - Plant Goa. He was assisted by a
person(300) in charge of purchasing both plastic granules as well copper.
d. After a month or so Ms. Anjali resigned and Ram was made head of
plastic Granules and Rahim was made head of copper for both the plants.
Nobody was reporting to them.
e. Fin Cables decided to sell its products across India through distributors
and created a network of distributors in Delhi, Mumbai, Chennai and
Kolkata to cater to all four regions of the country. The sales in the
respective regions are being managed by the Sales Teams headed by
Regional Managers – Rahul (North), Ravi (South), Sachin (West) and
Sourav (East). Fin Cables while selling the Cables also wanted to
know the region wise sales and also across neighboring countries.
f. Rahul hires Sunil and Vinay in his team to drive retail sales. A year
later, Fin Cables set-up an ecommerce website to handle online sales.
g. Cable manufacturing process includes wire drawing, stranding,
insulating, degassing, screening, lead sheathing if required, outer
sheathing and testing. Wire drawing is the thinning process of copper
and aluminium wires, which is done at Shed-A of Plant at Pimpri. The
annealing unit at Shed-2 on the line is used to soften the wire again,
making it suitable for cable production process. This unit consists of
two conductive pulleys having an electrical potential. The wire passing
through them forms a short circuit. Joule effect increases the wire
temperature up to approximately 400 °C. The temperature is affected
by rotational speed of pulleys, ambient temperature and applied
voltage. The voltage is controlled by adjusting the line speed in order
not to anneal the wire excessively. After it is cooled down, annealed
wire is wound on a spool at take-up.
h. Take this case as a stand-alone situation. Fino Cables (C000) started
a new venture and named it Fin Wheels. Being a new enterprise Fin
Cables decided to make all purchases for Fin Wheels till the venture
grows to a considerable size. Fin Wheels was allotted a company code
C001 Assume the identification code for the purchasing organization is
P111 headed by Mr. Natrajan
Exercise-3
ABC International is into the manufacturing of IT products. The
company has its operations in US and India. Recently the
management has decided to implement an Enterprise solution to
integrate the various functions. The company has purchased SAP
license, and the client number is 500. You are a SAP
implementation consultant and have been given an assignment
to understand the structure and help ABC Int. with SAP
implementation.
The US operations look after the Desktops and Laptops
production and in Servers and Networking Equipments are
manufactured in India. Sales in India is managed from Mumbai
and from New York in USA. In India they sell their products
through wholesalers and retailers whereas in USA they sell
directly to customers and through the web. In India the
company has tied up with DHL and in US with FedEx for the
delivery of their products. Both India and US operations have
production, warehouse and distribution plant. The raw material
and semi-finished goods procurement is done at Pune, finished
goods at Bangalore and Quality Testing at Hyderabad. The
procurement for raw material, semi-finished and finished goods
are done at Texas in US and also the quality testing. In India,
the procurement of raw material for Desktops and Laptops is
done from two companies namely Sahara Technologies and Ace
Technologies. In US, the procurement is done through Amex
Technologies. Define the configuration structure for ABC in terms
of: Company Code, Sales Area, Business Area, Plant, Storage
Location and Purchasing Organization etc. You can choose your
own codes for identification. You may also answer by drawing
the organization structure/flow diagram. Also indicate the list of
Master Data that needs to be maintained for carrying out any
transaction.
INTEGRATED EXERCISE -4
BSA (US00) is a bicycle company based in India. It has recently purchased an ERP solution to
handle procurement and sales process. Company procures raw material, semi-finished and
finished components from various vendors. The bestselling trading product of the company is
BSA### (BSA Racer ###). The company purchases bicycles in knocked down state from
primarily three local vendors (Ram Cycles###, Rahim Cycles### and Anthony Cycles###). After
assembly, quality testing and branding the product, it sells it to its customers through a wide
dealer network.
Laxmi Cycles### wants to buy 400 units of BSA### at an offered price of USD 35 per unit. The
head of purchasing department (Mr. Tandon) is the contact person for Laxmi cycles. You have
been hired as an ERP consultant and have been asked to test a complete sales and procurement
cycle. You check the stock to find that you don’t have enough units in stock and decide to procure
the material from the existing list of vendors. You create a purchase requisition for BSA### with
the header “BSA is formally inviting quotes for the above item. The last date for submitting quote
is Oct 1, 2015”. Quantity 400, delivery date is 1 months from today and Plant MI00, Stor. Loc.
TG00 and PGr. N00. To handle the Purchase process company has created a position Purchase
Officer and Purchase Manager.
You evaluate the quotations and give order to the vendor who has quoted lowest price. You
create purchase order referencing an RFQ and receive the goods. You also receive the invoice
from the vendor and create a receipt for the same. After physically receiving the units, stores the
material in the designated storage location for onward delivery. You need to fulfill the order
requirements and bill the customer to receive the customer payment and make necessary
payments to the vendor. BSA offers volume discount of 5% to all its customers, if the order is
above 300 units. While executing the first sales order for 400 units make sure 350 units are
delivered immediately and remaining 50 units will be delivered after 2-days.
Suppose the price quoted by three vendors based on your RFQ is as below.
Ram Cycles – Net price quoted is 32 USD per unit
Rahim Cycles – Net price quoted is 33.5 USD per unit
Anthony Cycles– Net price quoted is 31 USD per unit
You may refer to GBI exercise and assume the same codes where not explicitly mentioned in the
case.
Carry out all the steps in SAP to complete the sales transaction including the creation of Invoice.
