A Case based approach on SAP Business by Design

A Case based approach on SAP Business by Design Devesh Kumar Mathur, Mamta Kumawat, Kunal Borse, S Vijayakumar Bharathi Symbiosis Centre for Information Technology, Symbiosis International University, Pune, India Email: [email protected], [email protected],[email protected],[email protected]

Abstract This research paper covers a case based approach to demonstrate the work ing of SAP Business ByDesign (ByD).The paper underlines the functional, technical and organizational perspectives of introducing SAP ByD to its prospective SME client(s) or any subsidiary(s) of a large company. It also highlights the need for SAP offering over cloud. In this case-based approach a fictitious company data set ALMIKA Inc acts as a reference system. The data-set has pre-configured master data rules which help in underlining organization structure and in testing the various business transactions involved in the company. Business configurations act as a building block in realizing the business cycles at enterprise level which are discussed to give an overall understanding of ByD as a product. This paper also demonstrates the SAP by Design using an order-to-cash cycle to validate the advantages of ERP functionalities. Keywords: SAP ByD, ALMIKA, Business Configurations, Order to Cash cycle, Multi-Tenancy, SaaS.

Electronic copy available at: http://ssrn.com/abstract=2348739

1. Introduction SAP Business by Design (ByD) is an integrated software suite that runs end-to-end business processes across an enterprise on cloud. It spans across functional units such as Financials, Human Resources, Sales, Procurement, Customer Service and Supply Chain. [1]. This two-tier cloud based business management software is ideally suited for SMEs and large corporations with subsidiaries, as the product can help in consolidating the resources and in gaining insight over the business operation of various subsidiaries of a company. [2] In the rest of the paper, Business by Design shall be referred to as ByD. SAP ByD is meant to collaborate across departments with business processes that streamline work and minimize data entry. It leverages integrated information for realtime insight into all aspects of an organization’s business. At the same time, SAP ByD helps in avoiding the cost and complexity of on-premise software and a large scale IT infrastructure. [3]

involved, viz. Finance, Sales and Marketing, Project Management, etc.

1.1 Research Question Can a cloud based ERP system enable an endto-end business process integration?

1.2 Research Objectives This paper covers the following objectives:    

To introduce SAP ByD to its readers. Understand the different perspectives of SAP ByD. Insight on business configurations involved in SAP ByD. Understand the execution of activities in demo run of order to cash cycle in the reference system.

2 Review of Literature This paper is intended to introduce SAP ByD with primary focus on making the reader aware of the drivers and benefits of SAP ByD. Our review of literature cover areas such as need for SaaS based ERP, introduction of SAP ByD & outline how it can affect the organization in its business. We have also compared businesses on TCO (Total Cost of Ownership) front which highlights the benefits of ERP offering on cloud.

2.1 Drivers of SaaS (Software As A Service)

Figure 1. SAP By Design Block Diagram [4]

Figure 1 above shows the various elements of SAP ByD and the different functional units

In this dynamic business environment, there is a need of a software model which could serve the business’ core functions and operations and can also help in real-time decision making. SaaS, or Software as a Service, is one such model which caters to the above need and gives beneficial solutions to all relevant businesses.

Electronic copy available at: http://ssrn.com/abstract=2348739

According to CDW Whitepaper [5], SaaS is referred to as a software suite that is accessed via a web browser and follows utility based model of subscription. Different from the traditional model where a customer buys a license to software and assumes ownership for its maintenance and installation, SaaS presents significant advantages to the customer. Some key adoption drivers for SaaS are shown in figure 2.

The Determinant of cloud adoption outlines all the positive and negative factors for cloud adoption as shown in figure 3 below [6]

• Relative Advantage (+) • Complexity (-) • Compatibility (+)

c

SAP ByD solution was developed to be adaptive so that business people and not just IT staff can quickly change the software to support changes in their business operations. [7] Officially launched in September 2007, the product focuses on mid-size organization with 100 – 500 employees.



Higher Security & Lower Risk

• Easy to use interface aids in quick user adoption • Try & Buy approach is also provided by some vendors • Supports anytime, anywhere access • Provide applications that are very rich in features with interactive help

Figure 2:- Drivers of SaaS [Self-compiled and adopted from [5]]

Technology



Flexibility & Better Application

Financial Benefits • Lowers the total cost of ownership since majority of the resources are provided by service provider • Saves administration & support cost

2.2 Review of SAP ByD

• Inherent capability to support safe computing environment. • Flexibility to stop or switch business software need with minimum financial cost

In order to avoid any negative effect on the customer base of SAP Business One and SAP All in One, SAP ByD is designed to differentiate in terms of Less Complexity, SOA (Service-Oriented Architecture) and SaaS Deployment model from the other SAP products. [8]

Organization

Environment

• Top Management (+) • Firm Size (+) • Technology readiness (+)

• Competitive Pressure (+) • Trading Pressure (+)

Figure 3:- Determinant of cloud Adoption (Self Compiled and Adapted from [6])

Cloud Adoption

2.3 Comparison of TCO of SME on Premises & SAP ByD [9] David Bradshaw in 2010 [10] conducted a detailed study to analyze and compare the TCO of on-premises solutions and cloud based solutions offered by SAP. The scope of his study covered mid-sized businesses from 100 to 500 employees. Only direct costs (for a period of seven years) were considered and solution dependent costs such as temporary staff, facilities, etc. were ignored. For the purpose of analysis, the entire lifecycle was divided in various activities like initial implementation, scope enhancement, minor and major version updates, annual costs revision, etc. Table 1 shown below summarizes the results of the study carried out.



staff costs, support costs of on – premises solution. All the above factors leads to 33% lower TCO in SAP ByD v/s SAP on – premise solution.

2.5 Customer Success Story 



SAP ByD has helped many organizations to satisfy the needs of the changing market & streamlined their internal activities. One such company is OneVision Solutions of Dallas which was able to reduce overhead and increase transparency. Brent Walters, CFO of OneVision Solutions said, “We don’t have an IT

Table 1:- TCO over 7 years, $000 [10]

2.4 Interpretation 







Since SAP ByD implementation does not require to buy the necessary hardware & software capability, the initial implementation cost is significantly lower when compared to on – premises solutions. Similarly, costs associated with scope enhancement work are also less since integration & technical implementation is not required. Also, minor updates cost is minimized & all major updates are typically given to client as a series of minor updates. Although, SAP ByD has a significant annual subscription fee over seven year period, it is still less than cumulative sum of maintenance costs, annual technical







department, and we don’t want to have an IT department. With SAP Business By Design, we can keep overhead down and continue to grow without worrying about software updates, databases, or servers” The company chose SAP ByD for its ‘Appeal of on-demand software’ and ‘committed involvement in its business’. Challenges faced by the customer were to ‘Focus on core business competency and not on IT or the back office‘ and ‘Keep the overhead low’. Benefits of implementing SAP ByD were ‘Increased Efficiency’, ‘Reduced time and effort required to input data’, and ‘Gained scalability for global expansion’. [11]

3 Research Methodology This research conducted is exploratory in nature wherein authors acted as respondents and got an opportunity to pursue hands-on experience on SAP ByD with ALMIKA Inc (Refer section 4.2 for more details) as a reference master data set. Before the execution of testing cycles, business configurations were understood which helped in deciding the configurations to be used in the testing phase. Testing of business cycles could only be achieved once the business configurations were understood. Authors also played different roles, viz. Supply Planner, Sales Representative, Financial Executive, Warehouse Manager, etc. thereby emulating real-world scenario of business operations which follows workflow mechanisms and approval cycles in a given context.



This research also provides its readers different perspectives of looking at a cloud based product (SAP ByD in this case) and provides findings and learnings from the hands-on experience of using ByD as a product. The tenant used for our research work is ALMIKA Inc. India version. (URL: http://mysap.068029.sapbydesign.com). This URL is subject to access under subscription from SAP UA only.

4. Analysis of work done 4.1 Putting SAP on Cloud into three perspectives – Functional, Organizational and Technical 4.1.1 Functional Perspective At the time of writing this paper, SAP offers below cloud solutions at enterprise level [12]:

Cloud Based Business Management

Suite – SAP Business By Design 

Business Intelligence on Demand – SAP Business Objects BI On Demand



ERP on Demand – SAP Business One On Demand



SAP HANA in the Cloud – SAP HANA One 

Figure 4. Sales Order Work Center in SAP ByD [13]

Aligning with the scope of this paper, we shall focus on the functional perspective of SAP ByD product. It covers the integration of all business scenarios in the form of Work Centers. A Work Center is a business area which is responsible for defining, configuring, maintaining, removing and testing all tasks required to execute an integrated business cycle. Some of the examples of work centers are: Business Configurations, Sales Orders, Customer Invoicing, Sourcing and Contracting, etc. As shown in Figure 4 above, Work Center of Sales Orders gives us the functionality to create and edit sales orders, generate reports and other useful features. Overview tab (Figure 5 below) gives a dashboard view of purchase requests and orders in terms of order volume, etc.

Figure 5. Dashboard view of Purchase Requests and Orders [14]

At the same time, SAP ByD works on Rolebased Access Control (RBAC) and activities under different work centers are to be carried out by authorized users only. We shall be covering this in more detail under Organizational Perspective.

4.1.1.1 BI Analytics in SAP ByD Integrated Analytics and reporting software solutions provides fully-integrated and real time analytics across all business areas for a given role. As per SAP SDN community, users can access role-based dashboards, graphical information embedded in transaction screens and ad hoc reporting options using SAP Crystal Reports and Microsoft Excel. Overview section of each work center gives a summarized view of various activities pertaining to that work center.

4.1.1.2 Employee self-service and workflow mechanism Employee Self Service which is a part of ‘Home’ work center (Refer Figure 6 below) gives the end user a flexibility to carry out activities such as Apply for Leave, Edit Personal Information, Re-imbursement claims, Bank Account information, etc. This feature of SAP ByD not only transfers the control at employee’s end to carry out the above listed activities but also avoids the burden on an employee’s supervisor. He (supervisor) is meant to approve and validate the appropriate request which falls under his workflow bucket. This principle of workflow mechanism is governed by the principle of Segregation of Duties (SoD) wherein no conflicting transactions can be executed by the same personnel.

4.1.2 Organizational Perspective Organization Structure of any company defines the reporting structure and governance policies followed in that company. Below organization chart of ALMIKA Inc (Figure 7) mentions the various functional units of company in Manufacturing and IT division. Codes are used to specify the area codes or location codes where letter ‘P’ is for Manufacturing division and ‘S’ is for Services division. Organization structure is comprised of organization units that represent departments or divisions and provides a unified, graphical representation of one’s organizational data. The information entered here is used by the different business areas in the system to support business processes that require organizational information. At the same time, organizational chart in the ALMIKA system also gives employee details under each business unit. This helps the prospective client in understanding who reports to who in the context of ALMIKA reference system. Creation of organization structure as shown in figure 7 is a required activity in the ‘Fine Tune’ phase and can be accessed from business configuration work center. As shown in figure 8, we could browse the hierarchies in the organization structure (on the left) and clicking on each rectangular box will populate the associated details on the right. Looking at the figure 8, we can infer that this functionality of SAP ByD product gives its prospective client a detailed understanding of employee information, roles and the associated hierarchies. Once the above understanding is clear, the administrator could define access rights to the roles in a company. This complies with the Role Based Access Control (RBAC) feature in any organization.

Figure 6. Self-Services under Home Work Center [15]

Figure 9 gives administrator the privilege to modify the access rights to view certain work centers for a particular user. This functionality is provided under Account and User Management Work Center.

Figure 7. Organizational Structure of ALMIKA Reference Company [16]

Figure 8. Organization Chart and other details for ALMIKA Inc. [17]

Figure 9. Access Rights to Work Center for a User [18]

4.1.3 Technical Perspective This section gives an overview of technical perspective of SAP ByD as a product and helps us understand its various components. Business ByDesign has quickly advanced from a single-tenant sales focused module to a broad multi-tenant CRM and ERP suite. The Business ByDesign Feature Pack 2.5 release was largely a technology upgrade that delivered a multitenant architecture, mobile support, an upgraded (Microsoft Silverlight) user interface and T-Rex in-memory analytics processing. Feature Pack 2.6 delivered in February 2011 included enhancements to the SDK (Software Development Kit), early methods for financial consolidation with SAP Business Suite and R/3 systems and global availability beyond the initial six countries of China, France, Germany, India, UK and US to include Austria, Canada and Switzerland. [19] As per the article by ZDNet on SAP Business By Design [20], multi-tenancy means that a vendor, like SAP, could issue one code patch and have it simultaneously be applied to all of its customers. The goal of multi-tenancy is to reduce maintenance costs for the vendor and the customer. The web interface, cloud delivery model, web services, and SOAP provide integration methods to ByDesign. With By Design’s newest release, development tools play an important part of system extensibility. The ByDesign SDK (software development kit) is object oriented, Visual Studio-like, based on .NET C#, uses Silverlight and ABAP is not a prerequisite. [21] SAP's NetWeaver™ technology foundation, a service-oriented integration framework, is the underlying platform for Business ByDesign as well as SAP's flagship Business Suite products. NetWeaver provides the development and runtime environment for SAP applications and can be used for custom development and integration with other applications and systems. Another key technology important to SaaS customers and partners is SAP River—a cloudbased development environment which supports lightweight extensions to the company's on-premises ERP application. It has contributed to SaaS applications such as Sales On Demand. [21]

So, the objective of putting SAP on Cloud and specifically SAP ByD into three perspectives is to make reader aware about the different spheres of this technology and help them evaluate the fitment of this product into their technology stack. Such perspectives help us look at the product through different angles which could be understood by employees at various levels of an organization.

4.2 ALMIKA Inc – Reference System in SAP ByD ALMIKA Inc. is a fictitious model company for SAP Business by Design Reference System. It basically aids in understanding the various business scenarios & their implementation in the SAP ByD System. After discussing about the reference system, we’ve shared our findings related to execution of order to cash cycle. The focus is to understand how the cycle was tested with the help of system along with key roles & their interactions involved in the complete business cycle. [22] ALMIKA is a midsize company founded in 1954, with lines of business in Manufacturing and Services, employee strength of 80 and annual revenue of about 600 million INR, with business across four locations in India. In manufacturing the company focuses on production and wholesale of commercial and residential heating equipment and in Services the company provides IT products and services including consulting, software and customer service. ALMIKA P vt. Lt d. has its organization structured under the following units across Mumbai and Bangalore. Innovat P vt. Ltd. is a small affiliated company from Mysore, which belongs to the same holding company and exchanges products, services and resources with A LMIKA using intercompany processes. Preconfigured master data settings are being provided for the business functions: Procurement, Product Development, Financials, Manufacturing, SCM, HR, Sales & Marketing, PM, Service and Support.

Work Center(s) are assigned to the corresponding role, which are allocated to a particular employee thereby making him accountable & responsible for corresponding activity. For instance, Warehouse manager (WAREHOUSE01P) would have access to various work centers (such as Home, Managing My Area, Warehousing and Logistics Master Data, Outbound Logistics Control, Inbound Logistics, Outbound Logistics, Internal Logistics, Physical Inventory, Quality Control, Product Data, Third-P arty Logistics) & any employee working as Warehouse Manager will be responsible to perform all the corresponding activities such as Acceptance of goods from Supplier, Creation of inbound delivery note,etc.

4.3 Advantages of Pre-configured Data Set SAP Business by Design gives the functionality to test business scenarios with the help of preconfigured data set (ALMIKA Inc, a fictitious model company in this case). This helps any prospective client to understand the product well without uploading its own company’s data. All necessary pre-requisites for configuring the available options and testing various use cases are very well documented within the system itself. Presence of pre-configured master data set also gives client a clear understanding of the various business activities carried out in a typical business process and helps the client in mapping with their Lines of Business (LOB). LOBs are the functional units of an organization which carries out the core business operations aligned to their areas of concern. Examples include Sales Department, Human Resource function, Supply Chain and Distribution, etc. A pre-configured data set gives try-before-youbuy evaluation model which is meant to validate expectations, reduce risks and speed up the evaluation process of SAP ByD product. The provision of providing a reference company was followed successfully in the case of Global Bike Inc 2.0 [23], which demonstrated the capabilities of SAP ERP as a part of University Alliances Program [24]. It covered all the key functional areas of ERP with lecture notes,

exercises, case studies, etc. which resulted in a holistic view of enterprise software for university business and IT programs.

4.4 Business Configurations Business Configurations enable us in evaluating and setting up the SAP Business ByDesign (SAP ByD) solution to meet up the requirements of the company. It allows adapting and upgrading the solution as per our needs at any point in time. Business Configuration Work Center(WC) has three main functions - Overview, Implementation Projects and Reports, each of these are explained below. The Business Configuration Work Center structure in terms of the various functions is shown in Figure 10 below.

4.4.1 Overview [25] The overview function of Business Configuration Work Center provides Quick Links and Business Configuration search based on the following options:    

All Configuration Elements Scoping Elements Activities SAP Store Add-On Solutions

4.4.2 Implementation Project [26] The implementation project function of Business Configuration Work Center provides functionality for ‘Edit Project Scope’ that selects the initial scope of solution and ‘Open Activity List’ sets the Activity List to get the solution up and running.

4.4.3 Edit Project Scope [27] Edit Project Scope defines the scoping for the solution through First Implement ation Project by providing predefined content that enables to make business decisions by selecting from available features and functions to meet unique requirements of the company. Project Scope is edit ed in six phases, the main functionality of each phase is explained in Figure 11

Business Configurations

Implementation Project

Overview

1. All Configuration Elements 2. Scoping Elements 3. Activities 4. SAP Store AddOn Solutions

Edit Project Scope

1. Country and Type of Business 2. Implementation Focus 3. Scoping 4. Questions 5. Review 6. Confirmation

Open Activity List

1. Prepare Phase 2. Fine-Tune Phase 3. Integrate and Exetnd 4. Test 5. Go-Live

Reports

1. Configuration Change History 2. Solution Proposal Executive Summary 3. Solution Prosposal Detailes

Figure 10: Business Configuration Work Center – [Self Compiled and adapted from [25]]

Country and Type of Business

• Based on the country where the solution would be implemented, specific options are included such as language and financial settings. • Type of business provides best practices based on the selection made and the relevant scoping elements are pre-selected accordingly.

Implementation Focus

• It provides option for selecting capabilities from complete solution or with limited focus in case of phased approach.

Scoping

• This phase has the Scoping Elements based on the business areas selected in the scope. • Details specific to each elements includes ‘Overview’, ‘Relevance’, ‘Benefits’, ‘Dependency’, ‘Your Notes’, ‘SAP Store’.

Questions

• This section has decision-relevant questions based on the solution scope selected and also provides preselected answers by SAP based on best practices for country and type of business.

Review

• Based on the inputs and decisions made in the previous sections, reports are generated related to Scoping Results namely ‘Your Solution Proposal – Executive Summary’, ‘Your Solution Proposal’, ‘Your Notes Summary’ which can be reviewed.

Confirmation

• This section confirms the completion of scoping successfully and provides the result in documents mentioned in Review section.

Figure 11: Edit Project Scope Phases - [Self Compiled and adapted from [27]]

4.4.4 Open Activity List [28] Activity List is generated based on the scoping decision made. It consists of mandatory implementation and project management activities to be completed before the solution can go live. The main attributes on the Activity List screen are:  Activity Type  Activity Group  Prerequisite Exist  Repetition Required

executed sequentially, viz. ‘Prepare’, ‘FineTune’, ‘Integrat e and Extend’, ‘Test’ and ‘Go Live’ as shown in Table 2.

4.4.5 Reports [29] The Report function of Business Configuration contains report for references. The reports available are:  

Configuration Change History Solution Propos al – Executive Summary Solution Proposal – Detailed



Activity List includes all activities and milestones structured by project phases which are Table 2 Phases in Activity List – [Self Compiled and adapted from [30]]

PHASE

INTRODUCTION

MAIN ACTIVITIES

1.



Contains all the preliminary activities mainly related to project management which makes the company ready to use the solution productively. Project status is set to ‘Started’ on confirming the design and scope.

     

Preparing the project Verify scope and confirm the milestone Define the key users for the project team Prepare organizational structure setup Prepare data migration Transfer knowledge to key users

All the mandatory configurations to be completed in logical sequence are organized in this phase. Completion of organization structure and acceptance of solution milestone indicates completion of this phase. Confirming ‘Solution Accepted’ milestone indicates fine-tuning settings have been tested properly and meet business requirements.

    

Prepare fine-tuning. Prepare the organizational structure setup. Confirm the solution acceptance milestone. Finalize forms, reports, UI requirements . Perform data extraction.

The configured solution is transferred to the company for use by integrating other existing third party applications and moving basic, master and transaction data from legacy systems to the new solution



Migrate master data and maintain basic data Adapt forms, reports, user interfaces, and third-party connectivity

Prepare



2.

Fine-Tune

  

3.

Integrate and Extend





4.

Test

 

Test scenarios and guides are defined Go-live readiness milestone acceptance indicates completion of integration tests and project status is set to Tested.

   

Prepare integration tests Transfer knowledge to end users Perform integration tests Confirm the milestone

5.

Go-Live



Acti vities in this phase enable solution to be used productively in the company. At the end of this phase all mandatory and outstanding issues are resolved. The final activity confirms the status of the project to Closed and it is set to read-only.

    

Prepare Cutover Request Go Live Perform Cutover and Go Live Complete the activity for Go Live Complete the activity to close the project

 

4.5 Demo Run of Order to Cash Cycle The Order to Cash cycle involves multiple roles performing their respective tasks in a sequence. SAP ByD binds the processes under various Work Centers and helps in accomplishing the cycle.

Figure 12 gives ‘Document Flow’ view of the complete cycle. Sales Quote and Customer Invoice have associated .pdf files with them and hence could be downloaded from this view. It also gives the timestamp details which can help user for review of work and also the current status of major activities are shown.

Figure 12 : Document Flow of Order to Cash Cycle [31]

Order to Cash cycle is explained in Table 3 which includes the main steps of the cycle, roles responsible for execution, the main activities undertaken, access to Work Centers and the documents generated in the process. The customer ‘SilverStar Wholesale Corp.’ orders for 3 units of ‘Cylinder customized’, 1 unit with the existing specifications in the company and 2 units with new specifications. Cylinder customized has three components namely ‘Assembled Cylinder’, ‘Insulation customized’ and ‘Safety Valve Type 75’. SAP ByD offers “Product Specification” feature to capture customer specific requirements related to products and make the data available to manufacturers. Figure 12 shows the documents generated in the Order to Cas h cycle. This feature helps the user find the stage at which the process is irrespective of his role. The main advantage of Document Flow is to access documents at any point and dig out for furt her det ails without any dependence on t he department or personnel involved.

5 Conclusions and Future Work It can be concluded that SAP ByD offers a comprehensive coverage of all possible business operations which could be realized in an enterprise. Hands-on experience on this software suite is a good example of abstraction as the end user is not concerned about the technicalities involved in background and can very well experience the business operations with a user-friendly GUI. Dashboard view of home screen of every work center gives clear information on pending tasks and approval to the authorized user. Such provisions in this product save time in navigation and also give user the confidence in using the product. We also conclude that documentation serves as a backbone for the project and document flow principle of SAP helps us in understanding the complete cycle and in visiting the various artifacts, viz. Sales Quote, Sales Order, Purchase Order, Customer Invoice generated. GUI is very user-friendly and we feel that the easy navigation steps in the product do not require any training. The three perspectives discussed give us a good understanding on the product which can be used by middle and senior management

levels of a company in deciding the fitment of SAP ByD product in their business scenario.

study on the same topic could be done in future work.

With such testability, learning environment can be enhanced and more roles and responsibilities could be assigned to the end user to carry out the hands-on experience with real time learning. We also find a good scope in understanding BI analytics in SAP ByD and

6 Acknowledgements We acknowledge the support of Symbiosis Centre for Information Technology, Pune (SCIT) through SAP University Alliance [24] in collaboration with Technical University Munich, Germany.

Table 3: Order to Cash Cycle – [Self Compiled and adapted from [32] [33]] PROCESS STEPS

ROLE

ACTIVITIES

WORK CENTER

DOCUMENT GENERATED

Create Sales Quote

Sales Representative



New Business

Sale Quote

Create Sales Order with reference to Sales Quote

Sales Representative



A new sales quote is created with two items: For first item an existing product specification is used and for the second item a new product specification is created. A sales order is created with reference to the newly created sales quote.

Sales Order

Sales Order

Run MRP, Release Production and Purchase Proposal

Supply Planner

 

Supply Planning

1.Production Proposal 2.Purchase Proposal

Submit Order

Purchaser

A multi-level MRP run is performed. An additional input product according to the product specification is added. The production proposal for the output product and the purchase proposal for the input product is released. The automatically generated purchase order contains the product specification. The purchase order is submitted after confirming the product specification in the purchase order. Goods receipt is posted for the component as identified stock.

Purchase Order and Requests

Purchase Order

Inbound Logistics

None

Production order is reviewed with reference to the product specification. The production order is released.

Production Control

Production Order

Components are supplied to the production and the supply tasks are confirmed. The production order gets executed and the production tasks are confirmed.

Execution

None

Execution

None

Purchase

  

Post Goods Receipt

Warehouse Manager



Review and Release Production Order

Production Planner



Supply Components

Warehouse Operator



Confirm Task

Production Operator



Request Removal to Warehouse

Warehouse Manager



The produced goods are requested to be removed from production to warehouse.

Internal Logistics

None

Confirm Task

Removal

Warehouse Operator



The removal task is executed and confirmed.

Execution

None

Release Delivery

Customer

Warehouse Manager



The delivery of the produced goods is released to the customer.

None

Warehouse Manager Sales Representative



Goods issue is posted.



The customer invoice is created based on the delivered sales order.

Outbound Logistics Control Outbound Logistics Customer Invoicing

Financial Accounting



The journal entries in the general ledger for the goods issue and goods receipts are reviewed.

General Ledger

None



Production

Post Goods Issue Create Invoice

Customer

Check Journal Entries

Outbound Delivery Customer Invoice

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