Introducing Make-to-Stock with Co- and By-Products – Process Manufacturing (3L7)

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce make-to-stock with co- and by-products – process manufacturing (3L7)

Introduction to Make-to-Stock with Co- and By-Products – Process Manufacturing (3L7)

How to Access SAP S/4HANA Cloud, public edition Scope Item Process Flows and Test Scripts

  1. Navigate to SAP Best Practices for SAP S/4HANA Cloud, public edition for Enterprise Management.
  2. Select a country localization from the Version dropdown list.
  3. If necessary, select the Login icon in the upper left corner to log in.
  4. Go to the Accelerators section and, under General Documents, choose the link SAP Best Practices content library.
  5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.
Note
Ignore the BPMN2 version of process flows.

Description

This scope item enables the process of manufacturing of co- and by-products along with the main product.

The process starts with the creation of a demand forecast for semifinished goods represented by Planned Independent Requirements (PIRs). Based on PIRs, Material Requirements Planning (MRP) creates a production plan for semifinished components and raw materials. Production planners can analyze and change the planned-order-based production plan manually.

Raw material demand leads to purchase requisitions that trigger alternative procurement scenarios referenced in this scope item.

The production process itself is entirely covered via conversion of planned into process orders, order release, direct material issue or backflush, confirmation of operations and goods receipt posting for main, co- and by-products. Order-based target and actual costs are created, ensuring fully integrated material and value streams.

Key Process Steps

  • Process planned independent requirements

  • Cover material requirements planning and evaluation of stock requirement list

  • Create process order, material staging, order release, order confirmation, material movement postings for goods issue and goods receipt along with co- and by-products

  • Run scrap reports optionally after production

Benefits

  • Supports management of batch-oriented process manufacturing with co- and by-products

  • Distribute costs to the individual co-products using equivalence numbers and apportionment structure

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