Produce and Sell Standard Products - Inventory Management (54U)

Produce and Sell Standard Products - Inventory Management (54U)

This scope item enables production planning and execution for a serial-number-managed finished good in make-to-stock scenarios, as well as prompt reactions to incoming sales orders (sell from stock).

The process starts with the creation of a demand forecast for finished goods, represented by planned independent requirements (PIRs). Based on PIRs, material requirements planning (MRP) creates a production plan for finished goods and explodes the entire bill of material (BOM). As a result, raw material demand is planned. Production planners can analyze and manually change the planned order-based production plan.

The process of capacity leveling (scheduling) enables production planners to assign orders and operations from the production plan to available timeslots of capacities, letting the planners schedule the best option for their manufacturing. 

Raw material demand leads to component demands that trigger procurement scenarios (external procurement via purchase orders and inbound delivery as well as procurement based on scheduling agreements and Kanban). At point of goods receipt, the materials are quality inspected.

The production process itself covers the conversion of planned orders into production orders, order release, material staging and picking, confirmation of order operations, and goods receipt posting. 

Raw materials within production can be replenished by Kanban procurement. A semifinished good is produced via a repetitive manufacturing scenario integrated with in-process inspection and Kanban.

Order-based target and actual cost is created, ensuring fully integrated material and value streams. For an additional subassembly, repetitive manufacturing is executed.

The process continues with the creation of a sales order, performing the delivery with picking and quality inspection at goods issue, invoicing, ending with the clearing after incoming payment.

Key Process Steps Covered

  • Process planned independent requirements
  • Perform material requirements planning and evaluation of stock requirement list
  • Capacity leveling
  • Procure components including inbound delivery
  • Perform quality inspection in procurement
  • Replenish material with Kanban
  • Handle production order processing: Material staging, order release, order confirmation, material movement postings for goods issue and goods receipt including available-to-promise checks
  • Perform in-process inspection (Quality Management) for repetitive manufacturing
  • Execute purchasing, facilitating direct procurement, and procurement using scheduling agreements
  • Create and confirm sales orders
  • Perform process delivery, quality management, and pick and ship items
  • Post goods issue
  • Execute billing
  • Post incoming and outgoing payments

Benefits

  • Trigger production execution with a production plan
  • Showcase repetitive manufacturing
  • Explode the bill of material automatically when running the material requirements planning
  • Calculate target costs during order creation
  • Perform availability check and automatically determine a shipping point when an order is entered
  • Integrate quality management in outbound delivery processing, procurement, and repetitive manufacturing
  • Create billing document and postings for financials and controlling

Software Products

  • SAP S/4HANA Cloud 2108

Where is Produce and Sell Standard Products - Inventory Management(54U) being used?

This Scope item is used in the following way:

  • As a support function of Financial Operations within Finance Scope Item Group
  • As a core function of Operational Procurement within Sourcing and Procurement Scope Item Group
  • As a core function of Production Planning within Manufacturing Scope Item Group
  • As a core function of Production Operations within Manufacturing Scope Item Group
  • As a core function of Quality Management within Manufacturing Scope Item Group
  • As a core function of Order Promising within Supply Chain Scope Item Group
  • As a core function of Inventory within Supply Chain Scope Item Group
  • As a core function of Order and Contract Management within Sales Scope Item Group
  • As a management function of Enterprise Information Management within Database and Data Management Scope Item Group

Process flow of Produce and Sell Standard Products - Inventory Management (54U)

Find below the process flow of the scope item Produce and Sell Standard Products - Inventory Management as it is defined for release s4hc-2111.


Download Process Flow of Best Practice scenario Produce and Sell Standard Products - Inventory Management (54U) - S/4HANA Cloud
Ref: Database and Data Management of SAP S4HC-2111
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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