Produce and Sell Standard Products - Warehouse Managed (54V)

This scope item enables production planning and execution for a 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. As a result, raw material demand is planned. Production planners can analyze and manually change the planned order-based production plan.

Raw material demand leads to component demands that trigger external procurement via purchase orders and inbound delivery.

The semifinished product is produced via repetitive manufacturing into the warehouse. With the repetitive manufacturing confirmation, semifinished material is received into the specified warehouse goods receipt bin and raw material is issued from stock. The goods receipt (movement type 131) and the goods issue (movement type 261) are posted synchronously in one material document. In addition a warehouse task is generated automatically.

The production process itself covers the conversion of planned orders to production orders, order release, material staging and picking, confirmation of order operations, and goods receipt posting. Upon acceptance of quality inspection results, finished product is moved to unrestricted stock.

The process continues with sales order creation, performance of the delivery satisfied from the stock present in a warehouse-managed location, invoicing, and clearance after incoming payment.

All products used in this scenario use warehouse-managed storage locations. Quality inspection is triggered during goods receipt for production order.

Key Process Steps Covered

• Create demand forecast for finished goods represented by Planned Independent Requirements (PIR)
• Execute production plan created by material requirements planning (MRP) for finished goods and raw material demands
• Perform repetitive manufacturing for semifinished product
• Purchase raw materials based on material requirements
• Receive goods from supplier into a warehouse-managed location
• Execute billing
• Perform production process and quality inspection
• Perform outbound delivery based on sales orders
• Receive payment from customer

Benefits

• Trigger production execution with a production plan
• Use warehouse-managed stock in production and outbound deliveries
• Trigger production execution with a production plan
• Explode the bill of material automatically when running the material requirements planning
• Purchase raw materials from external supplier
• Create billing document and postings for financials and controlling
• Integrate quality management in production

Additional Information

• This scope item is excluded from the default activation

This scope item is only relevant for customers that want to use warehouse management capabilities including storage bin management in the SAP S/4HANA Cloud. 

Caution:

Additional organizational entities (for example, storage location, warehouse number, warehouse, and storage types) are activated as part of the warehouse management scope items.

Before activation of this scope item, the following scope items must be set in scope and activated: 

Warehouse Inbound Processing (3BR)

Warehouse Outbound Processing (3BS)

Warehouse Production Integration (3DV)

Warehouse Ad Hoc Goods Issue (3BT)

Warehouse Internal Repacking (3BW)

Warehouse Goods Receipt from Repetitive Manufacturing (41U)

Software Products

• SAP S/4HANA Cloud 2108

Where is Produce and Sell Standard Products - Warehouse Managed(54V) 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 Production Planning within Manufacturing Scope Item Group
• As a core function of Production Operations within Manufacturing Scope Item Group
• As a core function of Order Promising within Supply Chain Scope Item Group
• As a core function of Warehousing 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 - Warehouse Managed (54V)

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management