Project Systems: Materials

Enterprise Project Systems – BCO6179

Presented To: Stephen Paull Presented By:

Neha Bachani - s3835526

Hardik Vasavada - s3835122

Jarrod Fong-Lim - s3640887

SAP PS - Materials

Business Scenario

Materials in Project

Integration with MM and PP

Procurement

Third Party Purchase Orders

Advance Procurement

Delivery

Agenda

SAP PS - Materials

Material: Business Scenario

• We are manufacturing the turbine project in the workshops. The project is made up of different components. Procure the components required by purchasing them or producing them in your facilities. Ensure that the turbine is delivered to your customer.

SAP PS - Materials

Sales and Distribution, Materials Management and Production Planning and Control are lined to projects by Materials.

SAP PS - Materials

• The system differentiates between stock (item category L) and non-stock (item category N).

• Stock items are entered for materials kept in stock (warehouse, sales order, or project stock). Reservations are generated for stock items.

• Non-stock items are entered if materials are to be procured directly for the network (that is, not using MRP). Purchase Requisitions are created for non-stock items.

SAP PS - Materials

The simplest scenario involves assigning components directly to the network or directly to the activity on an overview screen.

The item detail screen includes the Procurement parameters tab that contains information on the item category, the characteristics of the material, and the account assignment of the component.

SAP PS - Materials

The way in which components are procured depends on both the item category and the attributes of the material.

The material master stores information on whether:• The material is

purchased or manufactured internally (or both)

• Individual or collective requirements (or both) are possible for the material

• The material can be procured in advance

SAP AG 2003

Selecting the Procurement Type (2)

Item category:Item category:Stock item/non-stock item

Material:Material:Sales order/collective stock, or bothInternal/external procurement, or bothWith or without mixed MRP

Project definition:Project definition:With or without project stock

BOM:BOM:Special procurement key

Sales order:Sales order:With or without sales order stock

1

2

3

4

5

SAP PS - Materials

Non-stock item (N): • Non-stock items

cannot be managed as project stock or sales order stock.

• When the goods are received, non-stock items are not placed into stock, but posted to the activity.

SAP PS - Materials

If you choose direct procurement with item category N, you can choose between two procurement types:

• Purchase requisition for the network

• Third-party requisition for the network

SAP PS - Materials

As soon as you have activated the requirements in your network (for the entire network, the individual activity, or the individual component), a purchase requisition is generated when you save data.

SAP PS - Materials

The main function of MRP is to ensure material availability.

The procurement element for requirements planning is a planned order and, for external procurement, a purchase requisition.

Once quantities and dates have been planned in requirements planning, these planned procurement elements are converted to "exact" procurement elements: For production, this is the production order and, for external procurement, the purchase order.

SAP PS - Materials

The reservation either takes effect a) immediately, b) after release, or c) never. Case c) is possible as of Release 4.6.

This enables you to release the activity but leave the reservation inactive for planning. You can make the reservation active for planning at a later stage.

SAP PS - Materials

3rd party purchase orders allow the purchased material to be delivered directly from the vendor to the customer.

When assigning material components to network activities the system asks you to maintain the address of the customer to which the vendor is to ship the goods.

You can use addresses from:

• Central address management• Customer master data• Purchasing master data

SAP PS - Materials

For critical components with long and unreliable delivery times to be purchased, these will be acquired at an early stage in the project, well before the project activities where these components will be consumed. Preliminary procurement is used to this end.

Use preliminary procurement if you are working with sales order or project stock.Category L is selected when you assign your components to ensure that stock can be managed.

SAP PS - Materials

The delivery information is transferred from the superior object to the subordinate objects.

If a component has no delivery information but the upper-level activity does, this information is transferred to the component. If a subordinate object has delivery information, then it does not take the information from the superior object.

For example: A component and the upper-level activity have different delivery information. Priority is given to the delivery information that the component already has.

SAP PS - Materials

Select material components to be delivered to the customer. This creates an SD delivery note automatically.

You can select components by specifying the project definition, the WBS element, a sales order, or a network.

SAP PS - Materials

Detail screens for each component display the various quantities related to the component (requirement quantities, item quantities, quantity in delivery, open quantities, available open quantities, for example).

You can deliver materials from stock, project stock, or sales order stock. Every item in the delivery is directly related to the reservation or purchase requisition.

SAP PS - Materials

After the material is selected, the delivery note is created with reference to the network component.

If a delivery note (document type LP) is created from a project, every delivery item (item category DLP) has a direct reference to a reservation or purchase requisition in the network. This is used for availability checks and for updating actual data for the goods issue.

SAP PS - Materials

The system checks the availability of all material components in the network. If there is a material shortage, the network receives the status material shortage. A dialog box appears from which you can go directly to the check log, the missing parts list or missing parts overview.

To check material availability for the network, we have to choose all the activities from Project Planning Board and go to EditFunctionsMaterial Availability (Network).

SAP PS - Materials

Availability Check Log: Overview about errors in the availability check or information about material components which are not available.

The log remains available until you leave the transaction. To call up the log, choose ExtrasLogsMaterial Availabilty.

The log presents an overview of the collected messages. You can display individual messages by double clicking on them.

Thank You

Questions?