UNI REM

REQUIREMENT AS PER JD
1. MRP against Forecast of customer wise sales where actual sales happen only
against confirmed customer Release
2. FIFO management and FIFO lot determination by SAP.
3. Batch management in rem / discreet manufacturing.
4. Batch management in manufacturing to order and manufacturing to stock
scenario.
5. Inter plant profit management for sales / purchase / sto amongst plant in same
company code.
6. Purchase Scheduling agreement for weekly release for next 3 months to vendors
with release history
7. scheduling agreement type LZ, LZJ, LZJQ, LZM, LK ie with release history and
comparison and sales against :
a. EDI based weekly releases for next 6 months with confirm and forecast release
type
b. Determination of in transit stock between us and customer based on information
in EDI based release for last receipt by customer.
c. Release + JIT delivery order,
d. Consignment stock sales,
e. Confirm release and forecast releases
f. Self-billing scenario.
MD81
Sure! When you enter transaction code MD81 in SAP, you will be taken to the initial
screen for creating a sales order with reference to a quotation. Here are the steps to
follow:
Enter the quotation number for which you want to create a sales order in the "Quotation"
field.
If necessary, you can change the sales organization, distribution channel, and division
in the corresponding fields.
Click on the "Copy" button to proceed.
On the next screen, you will see the copied information from the quotation, such as the
customer, material, quantity, and pricing details. You can make any necessary changes
or additions to the sales order.
Once you have made the required modifications, you can save the sales order by
clicking on the "Save" button. The system will generate a sales order number, and you
can proceed with further processing, such as delivery and billing.
Please note that the exact fields and steps may vary depending on the specific SAP
system and configuration in your organization.

MRP AGAINST FORECAST OF CUSTOMER WISE SALES

To summarize, performing Material Requirements Planning (MRP) against the forecast
of customer-wise sales in SAP involves the following steps:
 Create a sales forecast using transaction code MC74 or MC93, specifying the material,
customer, and forecasted quantities.
  Run MRP using transaction code MD02 or MD01, providing the material and plant
details.
 Set MRP parameters such as planning horizon, MRP type, MRP controller, and forecast
consumption method.
 Review the MRP results in transaction code MD04, which will generate planned orders
or purchase requisitions based on the forecasted sales and MRP parameters.
 Convert planned orders to production orders if necessary, using transaction code CO40
or CO41 for make-to-order production.
 Monitor MRP exception messages in transaction code MD06 to identify and resolve any
issues or discrepancies in the MRP results.
Please note that the specific transaction codes and steps may vary depending on your
SAP system configuration.
FIFO (FIRST-IN, FIRST-OUT) MANAGEMENT
SAP provides functionality for FIFO (First-In, First-Out) management and lot
determination. Here's a summary:
 Material Master: Maintain FIFO-relevant data, such as valuation class and price
control indicator, in the material master record.
 Goods Receipt: Record receipt date, quantity, and value, considering FIFO-
relevant data.
 Goods Issue: Determine cost of goods sold based on FIFO principle, selecting
oldest inventory based on receipt date.
 Batch Management: Use batch management to manage FIFO lots, assigning
batches to goods receipts and issues.
 FIFO Valuation: Access reports and tools like the FIFO Valuation Report
(transaction code MB5B) to view FIFO stock and values. Utilize valuation methods
like moving average price (MAP) and standard price.
Implementing these features in SAP enables accurate inventory tracking and cost
calculation based on the principle of first-in, first-out.

BATCH MANAGEMENT IN REM / DISCREET MANUFACTURING

Batch management in REM (Repetitive Manufacturing) and discrete manufacturing in
SAP involves tracking and managing materials in batches or lots throughout the
manufacturing process. Here's a summary:
Material Master: Configure batch management settings in the material master record
for relevant materials.
Production Order: Create production orders specifying material, quantity, and other
details.
Batch Determination: Automatically determine batches based on criteria like shelf life,
FIFO, or specific requirements.
Production Execution: Execute production orders while tracking material usage in
batches.
Goods Receipt: Record receipt of finished goods into inventory, including the assigned
batch.
Goods Issue: Determine batch for goods issued based on predefined rules or manual
selection.
Batch Traceability: Utilize SAP tools and reports to trace batch usage, ensuring
traceability and compliance.
By implementing batch management, SAP enables effective tracking, traceability, and
compliance in REM and discrete manufacturing processes.

BATCH MANAGEMENT IN MANUFACTURING TO ORDER AND MANUFACTURING TO STOCK

SCENARIO.

Batch management in manufacturing to order (MTO) and manufacturing to stock (MTS)

scenarios in SAP involves tracking and managing materials in batches or lots based on
the specific manufacturing strategy.
In MTO, production orders are created based on sales orders, and batch determination
is done during order creation.
In MTS, planned orders are converted into production orders, and batch determination
is also performed during order creation.
Both scenarios involve production execution, goods receipt, and goods issue, with SAP
enabling effective tracking, traceability, and compliance of batches throughout the
manufacturing process.

INTER-PLANT PROFIT MANAGEMENT

Inter-plant profit management for sales, purchases, and stock transfer orders (STOs)
among plants within the same company code in SAP involves managing and controlling
the transfer of goods between plants while considering profit calculations.
Sales:
Inter-Company Billing: When a plant sells goods to another plant within the same
company code, an inter-company billing process is triggered.
Transfer Pricing: The transfer price is determined, which reflects the cost or market
value of the goods being transferred.
Profit Calculation: The system calculates the profit or loss based on the transfer price
and the cost of the goods.
Inter-Company Invoice: An inter-company invoice is generated to record the sale and
transfer of goods, including the profit or loss.
Purchases:
Inter-Company Purchase Order: When a plant purchases goods from another plant
within the same company code, an inter-company purchase order is created.
Transfer Pricing: The transfer price is determined, reflecting the cost or market value
of the goods being transferred.
Profit Calculation: The system calculates the profit or loss based on the transfer price
and the cost of the goods.
Inter-Company Invoice: An inter-company invoice is generated to record the purchase
and transfer of goods, including the profit or loss.
Stock Transfer Orders (STOs):
STO Creation: A stock transfer order is created to transfer goods from one plant to
another within the same company code.
Transfer Pricing: The transfer price is determined, reflecting the cost or market value
of the goods being transferred.
Profit Calculation: The system calculates the profit or loss based on the transfer price
and the cost of the goods.
Goods Receipt and Goods Issue: The receiving plant records a goods receipt, while
the sending plant records a goods issue, both reflecting the transfer of goods and the
associated profit or loss.
By implementing inter-plant profit management in sales, purchases, and STOs, SAP
enables the company to track and control the transfer of goods between plants within
the same company code while considering profit calculations. This ensures accurate
financial reporting and facilitates effective cost management.

PURCHASE SCHEDULING AGREEMENT FOR WEEKLY RELEASE

A purchase scheduling agreement is a procurement document in SAP that allows for the
creation of a long-term agreement between a buyer and a supplier. It defines the terms and
conditions for the supply of materials or services over a specified period.
In the case of a weekly release, the scheduling agreement is set up to release a specific
quantity of goods on a weekly basis.
1. Creation of Scheduling Agreement: The buyer creates a scheduling agreement in
SAP, specifying the supplier, material, and terms of the agreement, such as pricing,
delivery schedule, and payment terms.
2. Weekly Release Schedule: Within the scheduling agreement, a release schedule is set
up to indicate the quantity of goods to be released on a weekly basis. This schedule can
be predefined or adjusted as per the buyer's requirements.
3. Release Creation: On a weekly basis, the buyer creates a release against the
scheduling agreement in SAP, indicating the specific quantity of goods needed for that
week.
4. Supplier Confirmation: The supplier receives the release and confirms their ability to
fulfill the order. They may also provide updated delivery dates or quantities if necessary.
5. Goods Receipt: When the goods are delivered, the buyer records a goods receipt in
SAP to confirm the receipt of the released quantity.
6. Invoice Processing: After the goods receipt, the supplier can issue an invoice to the
buyer based on the agreed pricing and payment terms.
By using a purchase scheduling agreement with weekly releases, both the buyer and supplier
have a clear understanding of the expected quantity and delivery schedule. It enables better
planning, reduces lead times, and ensures a smooth flow of goods between the parties.

THE SCHEDULING AGREEMENT TYPES

The scheduling agreement types LZ, LZJ, LZJQ, LZM, and LK in SAP are used for different
purposes and have specific features. Here is a summary of each type and their characteristics:
LZ (Scheduling Agreement without Release Documentation): This type of scheduling
agreement does not have a release history or documentation. It is typically used for simple
agreements where there is no need to track release quantities or dates.
LZJ (Scheduling Agreement with Release Documentation): LZJ is similar to LZ, but it
includes release documentation. It allows for the creation of release orders to specify the
quantity and delivery dates for each release.
LZJQ (Scheduling Agreement with Release Documentation and JIT Call): LZJQ is an
extension of LZJ and includes Just-in-Time (JIT) call functionality. It enables the creation of JIT
call releases to trigger deliveries based on specific requirements or demand.
LZM (Scheduling Agreement with Delivery Schedule): LZM is used for scheduling
agreements that have a predefined delivery schedule. It allows for the creation of delivery
schedules with specific quantities and dates for each delivery.
LK (Consignment Scheduling Agreement): LK is specifically designed for consignment
agreements, where the supplier retains ownership of the goods until they are consumed or sold.
It includes features for tracking consigned stock and settlement processes.

Sales against these scheduling agreement types involve creating sales orders that reference
the scheduling agreements.
The sales orders are created to fulfill customer demand based on the agreed terms and
quantities in the scheduling agreements. The sales orders can be linked to the scheduling
agreements to ensure proper tracking and accuracy in the sales process.
Overall, these scheduling agreement types provide flexibility and functionality for managing
different types of agreements, release documentation, delivery schedules, JIT calls, and
consignment processes in SAP.

EDI BASED WEEKLY RELEASES FOR NEXT 6 MONTHS

EDI (Electronic Data Interchange) can be used to facilitate the exchange of information
and automate the process of weekly releases for the next six months
Setup EDI Integration: Establish EDI integration between the buyer and supplier
systems to enable the electronic exchange of data. This involves setting up
communication protocols, message formats, and data mapping between the systems.
Data Exchange: Define the specific data elements and format required for the weekly
release information. This includes details such as release dates, quantities, delivery
locations, and any other relevant information.
Automated Release Generation: Set up an automated process to generate the weekly
releases based on the scheduling agreement. This can be done by extracting the
required information from the scheduling agreement and converting it into the EDI
format.
Transmission of EDI Messages: Transmit the EDI messages containing the weekly
release information from the buyer's system to the supplier's system. This can be done
through a secure EDI network or via direct system-to-system communication.
Supplier Confirmation: The supplier's system receives the EDI messages and
processes them. The supplier confirms their ability to fulfill the release quantities and
may provide updated delivery dates or quantities if necessary.
Acknowledgment and Confirmation: The supplier's system generates an EDI
acknowledgment message to confirm the receipt of the release information. This
message can include details such as the confirmed quantities, delivery dates, and any
other relevant information.

By utilizing EDI for weekly releases, the process becomes more efficient, accurate, and
automated. It eliminates the need for manual data entry and reduces the chances of
errors or delays. Both the buyer and supplier can have real-time visibility into the
release information, enabling better planning and execution of the supply chain activities
for the next six months.
DETERMINE THE IN-TRANSIT STOCK

To determine the in-transit stock between you (the supplier) and the customer based on the
information in the EDI-based release for the last receipt by the customer, you would need to
consider the following steps:
1. Retrieve EDI Release Information: Access the EDI release information that contains
details about the last receipt made by the customer. This information should include the
release date, quantities, and any other relevant data.
2. Determine Shipment Date: Identify the shipment date of the goods based on the
release information. This is typically the date when the goods were dispatched from your
location to the customer.
3. Calculate Transit Time: Determine the average transit time for the goods to reach the
customer's location. This can be based on historical data or agreed-upon transit times
between you and the customer.
4. Calculate In-Transit Period: Subtract the shipment date from the current date to
determine the number of days the goods have been in transit. This will provide an
estimate of the in-transit period for the last receipt.
5. Verify Delivery Status: Check with the customer or the logistics provider to confirm the
delivery status of the goods. This will help ensure that the goods have indeed been
received by the customer.
6. Calculate In-Transit Stock: Multiply the average daily consumption rate by the
number of days the goods have been in transit to estimate the in-transit stock. This will
give you an approximation of the quantity of goods that are still in transit between you
and the customer.
It's important to note that the accuracy of the in-transit stock calculation depends on the
availability and reliability of the data in the EDI release and the accuracy of the transit time
estimation. Regular communication with the customer and logistics partners can help validate
the information and ensure accurate calculations.

A release and JIT (Just-in-Time) delivery order

A release and JIT (Just-in-Time) delivery order is a combination of two processes in supply chain
management. Here's how it works:

1. Release: A release, also known as a scheduling agreement release, is a document that

specifies the quantities, delivery dates, and other relevant details for a specific order or set of
orders. It is typically created by the buyer and sent to the supplier to communicate their
demand.

2. JIT Delivery Order: JIT is a strategy that aims to minimize inventory levels by delivering
goods or materials just in time for production or customer demand. A JIT delivery order is
created based on the release and specifies the exact timing and quantities for each
delivery to align with production needs or customer requirements.

The process of creating a release and JIT delivery order involves the following steps:
 1. Release Creation: The buyer creates a release document, either manually or through an
automated system, specifying the quantities, delivery dates, and any other relevant details for
the order.

2. Communication: The release is sent to the supplier, typically through electronic means such
as EDI or email. The supplier receives the release and acknowledges its receipt.

3. JIT Planning: The supplier reviews the release and plans the production or procurement
activities to fulfill the order. They consider factors such as lead time, production capacity,
inventory levels, and transportation logistics.

4. JIT Delivery Order Creation: Based on the release, the supplier creates a JIT delivery order
that specifies the exact timing and quantities for each delivery. This order is typically created
closer to the delivery date to ensure optimal timing.

5. Delivery Execution: The supplier prepares and delivers the goods according to the JIT
delivery order. This involves coordinating with logistics providers, ensuring proper packaging
and labeling, and adhering to any specific requirements from the buyer.

6. Confirmation: Once the goods are delivered, the buyer confirms the receipt and verifies that
the delivery aligns with the specifications in the JIT delivery order.

By combining the release and JIT delivery order processes, companies can achieve efficient inventory
management, reduce carrying costs, minimize stockouts, and improve overall supply chain
performance. It allows for a synchronized flow of materials or products, ensuring that they arrive just
in time for production or customer demand.

CONSIGNMENT STOCK SALES,

Consignment stock sales refer to a business arrangement where a supplier (consignor) places
their products in the possession of a retailer or distributor (consignee) who sells the products on
behalf of the supplier. In this arrangement, the consignee does not initially pay for the
goods but only pays the consignor for the sold items or a predetermined commission.
Here's how consignment stock sales typically work:
1. Agreement: The consignor and consignee enter into a consignment agreement that
outlines the terms and conditions of the arrangement, including the duration, pricing,
commission, and responsibilities of each party.
2. Transfer of Goods: The consignor delivers the products to the consignee's location,
where they are kept in the consignee's inventory but still owned by the consignor. The
consignee usually takes physical possession but does not take ownership of the
goods.
3. Sales and Promotion: The consignee actively promotes and sells the consignor's
products to customers. They display the goods, market them, and handle the
sales process, including collecting payments.
 4. Inventory Management: The consignor retains ownership of the goods until they are
sold. They may periodically check the inventory levels at the consignee's location and
restock as needed to ensure sufficient supply.
5. Sales Reporting and Settlement: The consignee provides regular sales reports to the
consignor, detailing the quantities sold and any relevant information. Based on these
reports, the consignor invoices the consignee for the sold items or calculates the
commission owed.
6. Payment and Reconciliation: The consignee pays the consignor based on the agreed-
upon terms, either for the sold items or the commission. Any unsold items may be
returned to the consignor or further discussed between the parties, as per the
consignment agreement.
Consignment stock sales can benefit both parties.
 For the consignor, it allows them to expand their market reach without the risk of
unsold inventory.
 The consignee benefits from having a wider product range to offer customers
without the upfront cost of purchasing inventory.
It's important for both parties to have clear communication, accurate reporting, and trust in the
consignment stock sales process to ensure a successful partnership.

CONFIRM RELEASE AND FORECAST RELEASES

Confirm Release:
Confirming a release refers to the process of verifying and acknowledging the details of a
purchase order or release document received from a buyer.
 When a supplier receives a release from a buyer, they review the document to ensure
that all the information is accurate and aligns with the agreed-upon terms and
conditions. This includes verifying quantities, delivery dates, pricing, and any other
relevant details.
 Once the supplier has reviewed and confirmed the release, they typically send an
acknowledgment or confirmation back to the buyer to indicate their acceptance of the
order.
Forecast Releases:
Forecast releases, also known as blanket releases or scheduling releases, are purchase
orders or release documents that provide a long-term forecast of the buyer's anticipated
demand over a specific period.
Rather than specifying exact quantities and delivery dates for each order,
forecast releases provide estimated quantities and a timeframe within which the
buyer expects to receive the goods.
This allows the supplier to plan their production or procurement activities accordingly. As the
actual demand becomes clearer, the buyer may issue specific releases or updates to the
forecast release to provide more precise details.
Both confirming a release and using forecast releases are important steps in supply chain
management to ensure effective communication between buyers and suppliers.
Confirming a release helps to avoid any misunderstandings or discrepancies in the order,
while forecast releases provide a broader view of the buyer's requirements, allowing the supplier
to plan their operations more efficiently.

SELF-BILLING SCENARIO.
In a self-billing scenario, the buyer takes on the responsibility of generating and issuing
invoices to the supplier on behalf of themselves (supplier Invoice). This approach is commonly used
in business-to-business transactions, where the buyer has a strong control over the purchasing
process and wants to streamline the invoicing process.

Here's how a self-billing scenario typically works:

1. Agreement: The buyer and supplier agree to implement a self-billing arrangement. This is
usually outlined in a contractual agreement or a separate self-billing agreement.

2. Purchase Orders: The buyer generates and sends purchase orders to the supplier for
the goods or services they require. The purchase order includes all the necessary details, such
as product description, quantity, price, and any other relevant information.

3. Invoice Generation: Based on the purchase order received, the buyer generates an
invoice on behalf of the supplier. The invoice is created electronically or manually,
following the agreed-upon format and including all the required information for legal and
accounting purposes.

4. Invoice Delivery: The buyer sends the self-billed invoice to the supplier, either electronically
or through traditional mail. The supplier receives the invoice and reviews it for accuracy and
completeness.

5. Payment: The supplier, upon receiving the self-billed invoice, processes it as if it were
their own invoice. They verify the details, reconcile it with their records, and initiate the
payment process according to the agreed payment terms.

6. Reconciliation: Both the buyer and supplier maintain their own records of the self-billed
invoices and payments made. Regular reconciliation between the two parties is necessary to
ensure accuracy and resolve any discrepancies or issues that may arise.

Self-billing can offer several benefits, including streamlined invoicing processes, reduced
administrative burden for the supplier, and improved accuracy in invoice generation. However, it
requires a high level of trust and strong communication between the buyer and supplier to
ensure that the self-billed invoices are accurate and align with the agreed-upon terms.

It's important to note that self-billing arrangements may have legal and tax implications, and
it's advisable for both parties to consult with their legal and accounting advisors to ensure
compliance with applicable regulations and laws.