Distribution of planned independent requirements can be key in getting your MRP results exactly right. This post is about how to break down your Sales and Operations Plan and schedule it for MRP. E.g. Assume your SOP is planned in monthly buckets, but you plan your production in weekly buckets and you use forward scheduling for your production orders. In this case you want independent requirement quantities show on the first day of the week. Another example: since you plan production on a daily basis you want your monthly forecast spread out on a daily basis throughout the month. Distribution of planned independent requirements can help you achieve this.
In MC44 – Inventory Turnover (1) I explained the concept of Inventory Turnover and how it can be used. In this post I will explain the transaction itself. The transaction is mostly self-explanatory, but there is one option of particular importance.
Inventory Turnover is a prominent KPI in a lot of businesses. This post will give you some understanding on the concept. In another post I will give details on how the SAP report MC44 can be used to measure inventory turns and what data is used to calculate this ratio.
Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory at value
If you are not familiar with the term Cost of Goods Sold, this is the cost of your revenues.
Average Inventory is measured in value and not in volume.
If you divide both elements you know how often you sold you’re average inventory. “So what?” you ask. I will explain next.
Immediately a new overview opens up that may look less attractive than the overview you are used to. On the screen ‘Print list – variable’ you can change the lay-out and save it as a variant like you are used to in standard SAP reporting.
To get the best Excel results export the report directly to an Excel table, as opposed to first store it as a local file and then open it in Excel. This way the lay-out is optimized for direct filtering and sorting.
This is all there is to it. Sometimes SAP life is that easy.
This blog offers a quick guide on how to use standard SAP Batch Determination for a material transfer. For an internal goods movement we need SAP to pick the batch from stock with the earliest Shelf Life Expiration Date (SLED). We don’t want our fresh products terminate themselves from stock…
1. For this we will be using standard IM search strategy ME001 – Standard Search Procedure.
IMG > Logistics > Batch Management > Batch Determination and Batch Check > Batch Search Procedure Definition > Define Inventory Management Search Procedure
A good way of tightening authorization in your procurement organization is using mandatory source lists. In a previous post I explained how you can use source list in a central procurement organization together with MRP. Setting source list as a requirement for procurement you block any Purchase Order from being created if the material/vendor combination is not known to the source list for the purchasing organization, purchasing group and, or plant. This is excellent if rogue buying (i.e. buying without taking advantage of negotiated company discounts) in SAP is an issue in your company. This is how you implement mandatory source lists in your organization: Continue reading
Stock in previous periods can be a useful indicator in analyzing your stock positions through time per material or material group. Standard SAP report MC.9 offers this functionality: