Industry scenarios for SAP S/4HANA Public Cloud for consumer products industry – CE2308
In this blog, you will get a consolidated view of all the 11 industry scenarios for Consumer Products Industry with CE2308 release for SAP S/4HANA Public Cloud.
Let me also quickly touch upon – What are industry scenarios?
Industry scenarios are end-to-end industry-specific processes that are built by stitching the SAP S/4HANA Cloud core LOB scenarios. Unlike LOB scenarios, in industry scenarios, a single demo master data set can be leveraged to run the end-to-end industry processes and it brings standardization with optimum data footprint.
These industry scenarios will help our customers jumpstart their cloud journey, transform and simplify their business processes by adapting industry best practices and innovative technologies.
The end-to-end scenarios are available for Discrete industry, Consumer Products Industry, Retail and Professional Services.
Now we will specifically have a brief on Consumer Products Industry with SAP S/4HANA Public Cloud CE2308 release. I have also provided process navigator links for ready reference.
The common master data used across all scope items is as follows-
- 5OI – Production Capacity Evaluation and Leveling – Consumer Products
This scope item enables quick capacity evaluation for a Consumer Products Industry flavored Make-to-stock process and supports capacity leveling functionality for their demands. It describes a two-stage production process for coffee displays. The first stage reflects the roasting and packaging process of medium dark roasted beans under consideration of a fixed capacity of the roasting drums. The second stage reflects a display packaging process where two different finished products (medium and dark roasted coffee beans bags) are packed into a display.
More details – Process Navigator – 5OI
- 5W3 – Procurement with and without QM – Consumer Products
This scope item describes purchasing process in the Consumer Products industry for the procurement of batch-managed raw materials and packaging materials that are needed for production.
The process is realized as a procure-to-stock scenario that uses purchase requisitions (PRs) that are generated either by the Material Requirements Planning (MRP) process or manually by a requester. The conversion from a PR to a purchase order (PO) can either be done manually or automatically. Alternatively, the POs can be created manually. Goods are shipped from the supplier.
For the raw coffee beans, a quality inspection is performed. For packaging material, it isn’t necessary in this scope item. At goods receipt, the material is posted to quality inspection stock and an inspection lot is created based on an inspection plan. The quality technician records the inspection results and the quality engineer makes a usage decision.
More details – Process Navigator – 5W3
- 5HK – Quality Management in Discrete Manufacturing – Consumer Products
This scope item describes a Consumer Products Industry flavored production process with full integration of Quality Management into discrete Manufacturing. The process is realized as a Make-to-stock scenario for batch-managed goods with QM integration for In-Process Control and (early) goods receipt inspection. The Consumer Industry process describes a two-stage production process for coffee displays. The first stage reflects the roasting and packaging process of medium respective dark roasted beans under consideration of a fixed capacity of the roasting drums. During the roasting, cooling and packaging steps, the process is permanently monitored by quality inspection. Moreover, the functionality of an early goods receipt inspection is used to handle the End-Product Control of the unpacked, finished product as flexible as possible. This means that the end-product control can be started during the production process, or alternatively after goods receipt into quality stock. The second stage reflects a display packaging process where two different finished products (bags of medium and dark roasted coffee beans) are packed into a display carton. In this second process step, a quality inspection after goods receipt from production with quality inspection stock is set up.
More details- Process Navigator – 5HK
- 5W4 – Subcontracting – Consumer Products
This business process describes a Consumer Products Industry flavored subcontracting process with the usage of Subcontracting MRP Areas for disposition and Quality Inspection during goods receipt from subcontractor. A typical display packaging process executed by a subcontractor with the provision of components is described. Workflow functionalities are optional.
More details – Process Navigator – 5W4
- 5HL – Sell from Stock – Consumer Products
The process described in this scope item is a sales process for Consumer Products Industry flavored products with seamless integration to the production process described in the Quality Management in Discrete Manufacturing – Consumer Products (5HK) scope item. The process starts with the creation of customer standard sales orders. A pricing condition may become relevant via the customer hierarchy. When the inventory is decided, the shipping specialist releases the inventory. The inventory is shipped to the customer, and the actual recording of the physical quantity is recorded. When the goods issue is posted, cost of goods sold is recorded in Financial Accounting. Once goods are delivered and the proof of delivery (POD) has been confirmed by the ship-to-party, you can invoice the delivery. When the invoices are created, an invoice list is created for the central payer for both customers. An EDI invoice message is sent to the buyer when the billing document is saved.
More details- Process Navigator – 5HL
- 61V – Customer Returns Management – Consumer Products
This scope item covers the Return to Seller process for a customer return scenario in the Consumer Products industry. A return order is created in reference to the original billing document. Once saved, a return delivery is automatically generated. The goods, once received, are inspected at the warehouse. The user can influence when the refunding documents are created: either directly, when releasing a return order, or after the inspection. Finally, the user can decide on the compensation for the customers: full or partial refund. The progress of the return process can be monitored using a returns overview
More details – Process Navigator – 61V
- 62R – Excise Tax – Consumer Products
This scope item handles the tracking of excisable coffee products. Relevant movements for the excise tax reporting are
- Goods Issues for Production (Movement Type 261)
- Receipts from Production (Movement Type 101)
- Sale to Customer (Movement Type 601)
- Returns (e.g. Movement Type 657)
All these business processes and its movements are already available in different scope items like 5HL, 5HK ,61V .Once a business process has been perfomed and these movements are posted, Excise Tax Management will handle them within the document selection. Within the document selection different criteria are checked. For Movements that are relevant, an Excise Tax Document is created. Those documents are visible in the Stock Ledger, which is the key report for a Tax Responsible user to verify the movements. In case there are e.g. some configuration errors, the Tax Responsible User can view the errors and decide, what needs to be done to resolve them.
More details – Process Navigator – 62R
- 6A6 – Vendor Performance – Consumer Products
You can evaluate your company’s suppliers to obtain a basis for your business relationship with them and to optimize your supply base. Based on the feedback you gather through questionnaires, you obtain a scorecard for each supplier evaluated. The scorecard helps you to assess a supplier’s strengths and shortcomings and to initiate measures for improvement. Evaluation scorecards also enable you to easily compare suppliers within a peer group. Ultimately, a combined real-time view across operational and questionnaire-based scores provides a holistic view of your supplier’s performance. This business process provides two different use cases for the category manager: Evaluate supplier performance and analyze KPIs based on the evaluation.
More details- Process Navigator – 6A6
- 61W – Product Cost Related Master Data Changes – Consumer Products
This scope item gives you an example of possible handling options for updating standard costs outside of the annual operations planning within a Consumer Products industry process. Updates in standard costs are necessary when unforeseen events influence the material valuation significantly. As examples, the valuation-related changes are based on the following business situations:
- A quantity structure change in the Bill of Material (BOM) is needed because of quality problems with a component. A change-master-controlled update of a production BOM is used for the exchange of a production component. The change-number-controlled approach allows a date-effectivity-based attribute management on both the BOM header and BOM items levels. The BOM header and items can only be changed with a new active change number. Setting the change number status to active releases the scope per change number. Once the status becomes inactive, changes are no longer possible.
- Significant price change for a raw material. After the unforeseen valuation-related changes are done, a new off-cycle costing run is created and executed to reflect the changes accordingly in the master data. Analytics, such as material price analysis and costing run comparison, complete the process.
More details – Process Navigator – 61W
- 6A9 – Rework with Quality Management – Consumer Products
This scope item focuses on two alternative Consumer Products flavored rework processes handled by production orders with or without Quality Management:
- Rework production orders triggered during production execution of the original order (rework process 1)
- Rework production orders created after goods receipt of original production order with integration to QM (rework process 2).
More details – Process Navigator – 6A9
- 6AA – From Planning to Fulfillment – Consumer Products
This scope Item describes how to combine stand-alone Consumer Products flavored scope items to an end-to-end scenario starting with production and capacity planning followed by the procurement of components, production with quality management, subcontracting, sale of the produced materials and is ending with customer returns processes. For this 9 stand-alone scope items are incorporated in a scenario which can be executed with the same set of master data for all areas (the master data of a two-stage coffee roasting and packaging process for coffee displays are used as an example). This scope item combines 5OI, 5W3, 5HK, 5W4, 5HL, 61V, 62R, 6A6 and 61W
More details – Process Navigator – 6AA
New scope items will be incorporated as well as existing ones will be enhanced. Please keep a watch for blog on CE2402 release.