TS410-99 S/4HANA 2023 Suggested Answers to Quiz

TS410-01 S/4HANA Enterprise Management: Overview

Question 01: D

Question 02: B, C
Question 03: A, B, C, E
Question 04: A, B, C, D, E
Question 05: E
Question 06: A, B, C, D, E
Question 07: A, B, D, E
Question 08: C

TS410-02 SAP Fiori

Question 09: A, C

Question 10: A, B, C, D, E

Question 11: A, B, C, D, E

Question 12: A
Question 13: A, B, C, D

TS410-03 System-Wide Concepts

Question 14: A, B
Question 15: A, C, E
Question 16: A
Question 17: A, B, C, D, E
Question 18: A, B, C
Question 19: B, C, E

TS410-04 Record-to-Report Processing

Question 20: A, B, C, D, E
Question 21: A, B, C, E
Question 22: A
Question 23: C
Question 24: A, B, C, D, E
Question 25: A, B, D
Question 26: B, C
Question 27: B, C, D, E
Question 28: A, B, C, D
Question 29: B, C, E

TS410-05 Recruit-to-Retire Processing

Question 30: B

Question 31: E

Question 32: A, B, C, D, E

Question 33: A, B, C, D, E

Question 34: A, B, D, E

TS410-06 Source-to-Pay Processing

Question 35: B, C, E

Question 36: C, D

Question 37: B, C

Question 38: C, D

Question 39: A, B, C, D, E

Question 40: C, E

Question 41: B, C, D

Question 42: A, B, C, E

Question 43: B

Question 44: B, C, D

TS410-07 Warehouse and Inventory Management

Question 45: C, D, E

Question 46: A, B, C, D, E

Question 47: A, B, C, D, E

Question 48: B, C, D, E

TS410-08 Design-to-Operate Processing

Question 49: A, B, C, D

Question 50: E

Question 51: A, B, D, E

Question 52: D

Question 53: A

Question 54: B

Question 55: B, D, E

Question 56: A, B, C, D, E

Question 57: C

TS410-09 Lead-to-Cash Processing

Question 58: A, B, C

Question 59: B, E

Question 60: E

Question 61: A, B, D, E

Question 62: D

Question 63: B, C, E

Question 64: A, B, C, D, E 

Question 65: B, C, D

TS410-10 SAP Project Systems (PS)

Question 66: A, B, D, E

Question 67: B, C, E

Question 68: B, C

Question 69: A, B, C, D, E

Question 70: A, B, C, D, E

Question 71: B

Question 72: B, C, D, E

TS410-11 SAP Enterprise Asset Management (EAM)

Question 73: A, C, D, E

Question 74: E

Question 75: A, C, E

Question 76: A, B, C, D

Question 77: C

Question 78: A, B, D, E

Question 79: A, B, C, D, E

Question 80: A, B, C

SAP S/4EWM2023-ECC6 - Serial Numbers (create WT before enter Serial Numbers)

 

CLICK here to view the Presentation

SAP MM - Purchase Order Reminder Letter

 

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SAP CO - Internal Order Settlement

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SAP S/4EWM-ECC6 - Delivery-based Staging Part 2 Set-Up the EWM Staging for Production Orders

 CLICK here to view the Presentation

Question no 4059 : Quota Arrangement Usage

In SAP Quota Arrangement as at S/4 1909, Quota Arrangement can be setup for the following types of Procurement EXCEPT ?

(only one answer)

A) External Procurement via Subcontracting.
B) External Procurement via Third Party.
C) External Procurement via Consignment.
D) External Procurement without Special Procurement.
E) External Procurement via Stock Transfer from another Plant.
.

Answer: B

PP MRP - Planning Table for Discrete Manufacturing with Quota Arrangement

CLICK here to view the Presentation

SAP PP - Safety Stock share S/4HANA 2023

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SAP PP - Goods Issue of Component Stocks reduce the Planned Independent Requirement

CLICK here to review the Presentation

Question no 4058 : Movement Types

In SAP Materials Management, Inventory Management "Movement Type" can be configured for which of the following Except ?

(only one answer)

A) "Reason Code" Mandatory.

B) "Create Storage Location" Automatically at Goods Receipt movement.

C) "Automatic PO Creation".

D) "Negative Stock" allowed at Goods Issue movement.

E) Account Grouping for determination for Value String for Account Determination.

Answer: D

The configuration for A, B, C, E can be found in OMJJ for the Movement Type

Negative Stock setting is not via the Movement Type but activated for the Plant + SLoc and the Material Master level as below

Q&A in Class (2023-07-25) SCM240

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Questions: Definitions of Planning components in ECC Production Planning review.

Answer: SAP Production Plannning & Execution is divided into 2 areas that is Planning & Execution, and for the Planing area illustration in SCM240 are:  

• Sales & Operations Planning (SOP) - SAP Sales & Operations Planning (S&OP) is a process within SAP's Supply Chain Management (SCM) that helps companies align their supply chain with market demand to improve business performance. I

• It's a cyclical process, typically monthly, that brings together various departments like sales, marketing, product development, manufacturing, procurement, and finance to achieve a consensus plan for balancing supply and demand. 
• This collaborative approach aims to optimize resources, maximize revenue and profit, and improve overall supply chain resilience. 
• SOP is important for Planning for Factory, Capacity & Production Line Expansion which can be 3 to 5 years plan for some industries for longer-term decision planning purpose.

Production Planning:

• Demand Management (DM) - In SAP, Demand Management is a crucial function within the Production Planning (PP) module that focuses on forecasting and planning for the production and procurement of finished goods. It acts as a bridge between sales and production, ensuring that manufacturing aligns with anticipated customer demand. The core of Demand Management involves managing Planned Independent Requirements (PIRs) and Customer Independent Requirements (CIRs) to optimize inventory and resource utilization. 
• Long-Term Planning (LTP) - In SAP, Long-Term Planning (LTP) is a simulation of the Material Requirements Planning (MRP) process, used to assess future capacity, material needs, and vendor capabilities without affecting actual planning data. It allows businesses to proactively plan production, purchasing, and capacity needs by simulating scenarios based on sales forecasts and other factors.
• Master Production Scheduling (MPS) - In SAP, Master Production Scheduling (MPS) is a crucial planning process focused on high-level production planning for key items, like finished products and important assemblies, that significantly impact profitability or require substantial resources. It's a separate planning process that precedes Material Requirements Planning (MRP) and helps determine when and how much of these key items should be produced. 

• Materials Requirement Planning MRP) - In SAP, MRP (Material Requirements Planning) is a system designed to plan and manage the procurement and production of materials needed to meet customer demand and production schedules. It helps determine when and how much of each material is needed, considering factors like sales orders, forecasts, current inventory, and production plans. Essentially, MRP ensures that the right materials are available at the right time, minimizing shortages and optimizing inventory levels. 

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Questions: Review of Strategy "10".

Answer: In SAP, Strategy "10" is a Make-to-Stock (MTS) Strategy which contain the following Characteristics: 

• Material Master Setting: The Strategy is assigned to the Finished Product.

• PIR is allowed for the Material. 

• PIR Consumption Control: The PIR is not consumed by the incoming Sales Order and like-wise the Sales Order will not consume the PIR.

• MRP Run: Finished Product stocks are considered in the MRP run, Sales Order will be displayed in MD04 but not calculated (display only), and MRP run do not consider the Sales Order in Planning.

• PIR Reduction Control: The Sales Order will reduce the PIR.

• Suitable for: In SAP, planning strategy 10, also known as Net Requirements Planning, is particularly useful for industries involved in mass production of standardized products where production is driven by a production plan rather than individual sales orders. It's commonly used in make-to-stock scenarios, especially in industries with repetitive manufacturing processes.

See the following Blog post:

https://froggysap.blogspot.com/2010/02/sap-what-is-5-what-is-strategy-10.html

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Questions: Review of Strategy "30".

Answer: In SAP, Strategy "30" is a Make-to-Stock (MTS) Strategy which contain the following Characteristics: 

• Concept: SAP planning strategy 30, also known as "Production by Lot Size," is a mixed make-to-stock (MTS) and make-to-order (MTO) strategy. It allows for both planned production based on lot sizes and production triggered by sales orders. This strategy is useful when a company produces for stock but also needs to accommodate specific customer requirements or smaller sales orders. 

• Material Master setting: Assign strategy 30 to the Finished Product. 

• Combined PIR and Sales Order Planning: Planning is done based on both planned independent requirements (PIRs) and customer requirements (sales orders).

• Lot Sizing Procedure: Typically use Periodic Lot-sizing rule like Weekly or Monthly Lot-sizing to combine the requirements of Sales Order and PIR into a Single Production.

• Suitable for: dThis strategy is particularly useful for industries that produce in batches for stock for many smaller customer will small requirements but also need to fulfill custom orders that comes with larger quantities. 

See the following Blog post:

https://froggysap.blogspot.com/2025/05/blog-post_5.html

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Questions: Review of Strategy "40".

Answer: In SAP, Strategy "40" is a Make-to-Stock (MTS) Strategy Planning at with Final Assembly which contain the following Characteristics: 

• Concept: SAP Make-to-Order strategy 40, also known as "Planning with Final Assembly," is a production strategy that combines features of both make-to-stock and make-to-order approaches. It focuses on reacting flexibly to customer demand by triggering production based on planned independent requirements (PIRs) while also considering and consuming those requirements with incoming sales orders. This means that while you produce based on a forecast, you also adjust your production plan to meet actual sales orders. 

• Hybrid Approach: Strategy 40 is not purely make-to-stock or make-to-order. It leverages both, using a forecast to initiate production and then adjusting the plan to incorporate sales orders. Regardless, it is primarly an MTS strategy scenario. 

• Final Assembly Triggered by PIRs: Production of the finished product, including final assembly, is initiated by planned independent requirements (PIRs) set in Demand Management.

• Sales Orders Consume PIRs: When a sales order is created, it consumes the corresponding PIR. If the sales order quantity exceeds the PIR, the system generates a new planned order in the next MRP run to cover the difference.

• Sales Orders Reduce PIRs: Based on the Consumption Mode (MRP4 view setting), the MTS Sales Order will consume the PIR.

• Flexibility and Responsiveness: This strategy allows for quick adjustments to changes in demand, as the system can accommodate both forecast-based production and customer-specific requirements. 

• Suitable for: This is the most widely used strategy, Products with a modular design where the final assembly is customizable but components can be standardized are well-suited for strategy 40

 
See the following Blog post:

https://froggysap.blogspot.com/2014/04/pp-strategy-40.html

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Questions: Review of Strategy "70".

Answer: In SAP, Strategy "70" is a Make-to-Stock (MTS) Strategy Planning at the Assembly level which contain the following Characteristics: 

• Concept: SAP planning strategy 70, also known as "planning at the assembly level," is used for make-to-order production scenarios where sub-assemblies are planned and produced in advance of finished goods orders. This strategy allows for forecasting and planning of common sub-assemblies that are used in multiple finished products, while still allowing finished products to be produced based on specific customer orders. 

• Sub-Assembly Planning: Strategy 70 focuses on planning and producing sub-assemblies based on forecasts or planned independent requirements (PIRs) rather than directly reacting to sales orders. 

• Strategy for the Finished Product: Can be either MTS or MTO.

• Consumption of PIRs: The planned independent requirements (PIRs) for the sub-assemblies are consumed by the production orders created for the finished goods, not by the sales orders directly. 

• Flexibility: This strategy allows for flexibility in responding to customer demands by having a stock of common sub-assemblies available while still allowing for customized finished products. 

• Suitable for: Strategy 70 is particularly useful when there are multiple variants of a finished product that share common sub-assemblies; in this case it is difficult to manage PIR at the finished product level and more practical to manage PIR at the Sub-Assemby level. 

See the following Blog post:

https://froggysap.blogspot.com/2011/01/sap-pp-planning-strategy-70.html

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Questions: Review of Strategy "20".

Answer: In SAP, Strategy "20" is a Make-to-Order (MTO) Strategy which contain the following Characteristics: 

• Concept: SAP planning strategy 20, also known as "Make-to-Order Production," is a production planning strategy where goods are produced specifically in response to a customer sales order, rather than being produced based on forecasts. This strategy is characterized by production being triggered solely by a sales order, no planned independent requirements (PIRs) are used, and typically no finished goods inventory is held. 

• Order-drivern Production: Production is initiated only when a sales order is received. No production planning is done in advance based on forecasts. 

• No Forecasting: Unlike other strategies, planning strategy 20 does not utilize planned independent requirements (PIRs) for the finished product. 

• No Finished Goods Inventory: Generally, no finished goods are held in stock. The product is produced specifically for the sales order and delivered upon completion. However, if after the MTO stocks are completed and the Customer cancel the MTO sales Order; then the MTO stocks can be transferred to "Common Stocks" to sell to MTS customers if applicable. 

• Individualized Production: The production process can be tailored to meet specific customer requirements, including customized products. This means that the MTO production order is cross-reference to the MTO sales order. 

• Material Master Setting: The strategy is defined in the material master record (MRP 3 view) for the finished product. 

• Individual/Collective Indicator: The individual/collective indicator on the component materials in the BOM or in the MRP 4 view determines whether they are procured for a specific sales order (Individual/Collector indicator set to "1") or as part of a collective requirement (stock)  (Individual/Collector indicator set to "2"). 

• Suitable for: This strategy is ideal for situations with low and unpredictable demand, highly customized products, expensive products, and slow-moving items.

See the following Blog post:

https://froggysap.blogspot.com/2021/08/mrp-make-to-order-strategy-20-basics-in.html

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Question: What is the purpose of % Share of Safety Stock set in the configuration for the Plant & MRP Group combination ?

Answer: In SAP, "share of safety stock" refers to the portion of safety stock that is available for planning purposes, meaning it can be used to cover requirements during the MRP (Material Requirements Planning) process. By default, SAP does not consider safety stock for planning. However, you can configure a "Shared Safety Stock" (SSS) percentage in the MRP group, which determines what portion of the safety stock is included in planning calculations. 

1. Shared Safety Stock (SSS):

• The concept of Shared Safety Stock (SSS) allows you to define a percentage of the safety stock that should be considered available for planning.

• For example, if you set the SSS to 50%, then half of the safety stock will be treated as regular stock and can be used to cover requirements. 

2. Configuration:

• You can configure the Shared Safety Stock percentage in the MRP group (transaction OPPR).

• Also set the Safety Stocks to materials in the material master (MRP 2 view). 

3. Purpose:

• The purpose of Shared Safety Stock is to provide a way to balance the need for safety stock to buffer against uncertainties with the need to utilize available stock for meeting demand.

• By allowing a portion of the safety stock to be used for planning, you can potentially reduce the need to hold as much safety stock, which can free up capital and storage space.

• It's important to set the Shared Safety Stock percentage appropriately based on the specific business needs and risk tolerance. 

4. Example:

• If a material has a safety stock of 100 units and the Shared Safety Stock is set to 50%, then the system will consider 50 units of the safety stock as available for planning.

• If there is a requirement for 120 units of the material, the system will use the 50 units of shared safety stock and create a planned order for the remaining 70 units. 

See the Blog Posts below: 

https://froggysap.blogspot.com/2025/07/sap-pp-safety-stock-share-s4hnana-2023.html

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Question: Demonstrate Dynamic Safety Stock Calculations (or Range of Coverage) ?

Answer: In SAP, dynamic safety stock is a method for calculating safety stock levels that adjusts to fluctuating demand, rather than using a static figure. It uses a coverage profile to determine safety stock based on average daily requirements and a target period, helping to maintain appropriate stock levels despite variations in demand.

How it works:

• Coverage Profile: The core of dynamic safety stock is the coverage profile, which is maintained in the material master's MRP (Material Requirements Planning) settings. 

• Average Daily Requirements: The system calculates the average daily requirement for a material based on historical or planned demand. 

• Target Period: The coverage profile also defines the target period (e.g., number of days or weeks) for which the safety stock should be maintained. 

• Calculation: The dynamic safety stock is calculated by multiplying the average daily requirement by the target period. 

Example:

• If the average daily requirement is 10 units and the target period is 5 days, the dynamic safety stock would be 50 units.

• If demand increases and the average daily requirement becomes 15 units, the dynamic safety stock will automatically adjust to 75 units. 

Benefits:

• Improved responsiveness to demand fluctuations: Dynamic safety stock ensures that safety stock levels are appropriate for current demand patterns. 

• Reduced inventory costs: By avoiding overstocking, dynamic safety stock helps to minimize inventory holding costs. 

• Enhanced customer service: Maintaining sufficient safety stock helps to avoid stockouts and improve customer satisfaction. 

• Better inventory planning: Dynamic safety stock provides a more accurate and responsive approach to inventory planning. 

See the Blog Posts below: 

https://docs.google.com/presentation/dynamicsafetystocks42023review/

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Question: Why did the system reduce the PIR when Goods Issue using movement type 201 ?

Answer: In SAP, a goods issue reduces planned independent requirements (PIRs) when it consumes materials against a sales order or production order, particularly in make-to-stock scenarios. This reduction ensures that the PIRs, which represent anticipated demand, are adjusted to reflect actual consumption, preventing over- or under-production.

In the above scenario, the reason for the PIR reduction is due to the "PIR Reduction" indicator in the Movement Type used to perform the Goods Issue. 

See the following Blog Posts: 

https://froggysap.blogspot.com/2025/07/pp-mrp-goods-issue-of-component-stocks.html

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Question: The Planning Calendar's effect on Lot Size determination in MRP run ?

Answer: In SAP, a Planning Calendar can be used with a Period lot-sizing procedure to group requirements within defined periods for procurement. The lot size, when using a planning calendar, is determined by the periods specified in the calendar, rather than fixed lot sizes or other standard lot-sizing procedures. This allows for more flexible lot sizing based on specific scheduling needs or vendor delivery schedules.

Here's a more detailed explanation:
1. Planning Calendar and Period Lot Sizing:

• The planning calendar allows you to define flexible periods for grouping requirements.

• These periods can be based on days, weeks, months, or freely definable periods defined in the calendar.

• The period lot-sizing procedure then groups all requirements falling within a period into a single lot.

2. Using a Planning Calendar for Lot Sizing:

• You can assign a planning calendar to a material in the material master (MRP2 view).

• When MRP is run, it will use the periods defined in the planning calendar to determine the lot sizes for • procurement proposals.

• This means that instead of fixed lot sizes or other procedures, the system will group requirements based on the calendar's periods.

3. Example:

• Imagine a vendor delivers only on Mondays and Tuesdays.

• You can create a planning calendar that defines periods from Monday to Tuesday each week.

• When using a period lot-sizing procedure with this calendar, all requirements for that material will be grouped into lots based on these Monday-Tuesday periods.

4. Benefits:

• Flexibility: Adapts lot sizing to specific scheduling needs and vendor constraints.

• Reduced Order Costs: May reduce order frequency by grouping requirements into larger lots based on the calendar.

• Improved Scheduling: Aligns procurement with delivery schedules and production planning.

5. Lot Size Indicator:

• In the material master, you would typically set the lot-sizing procedure to "P" (period lot size) and the lot-size indicator to "K" (planning calendar) when using a planning calendar.

• This tells SAP to use the periods defined in the assigned planning calendar to determine the lot sizes.

Click below to Blog Posts for SAP screen setup and demo for Plannd Calendar Period Lot Sizing:

https://docs.google.com/presentation/PlanningCalendarZ2-Weekly-WednesdayToTuesday/

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Question: How to setup for Planning Table view of the Production Schedule for Discrete Manufacturing for Planned Production Orders ? 

Answer: In SAP, a planning table is a tool used in repetitive and flow manufacturing for planning and controlling production quantities, particularly in a period-oriented manner. It provides a visual overview of production lines and materials by period and quantity, allowing planners to check production quantities, monitor capacity, and manage product availability. Although it is primarily designed for Repetitive Planned Orders, the Planner can also use the Planning Table for prodution schedules for Descrete Manufacturing Planned Production Orders. 

Click below to view steps to setup Planning Table to view Production Order for Discrete Manufacturing (for Planned Production Orders):

https://froggysap.blogspot.com/2025/07/pp-mrp-planning-table-for-discrete.html

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SAP PM - Phased-Based Process Part 2 Plan, Approve, and Prepare

 

CLICK here to view the Presentation

SAP PP - REM Planning Table for Non Repetitive Manufacturing Material

CLICK here to view Presentation

Q&A in Class (2025-07-18) S4120

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Questions: How to we know which Project Profile to use when creating a Project ?

Answer: To determine the appropriate Project Profile in SAP when creating a project, consider the project's nature, organizational requirements, and the desired functionality. Project profiles act as templates, predefining key settings for dates, costs, and other aspects, streamlining the project creation process. Choosing the correct profile ensures consistency and efficiency throughout the project lifecycle. The project profile serves as a blueprint for your project in SAP, predefining key settings and configurations based on the project's nature and organizational requirements. By carefully selecting the appropriate profile, you can ensure a smooth and efficient project setup and execution. 

Here's a breakdown of factors to consider:
1. Project Type and Nature:

Investment Projects: If the project involves creating or upgrading fixed assets (like buildings or machinery), select a profile that supports investment management, asset creation, and cost settlement to assets under construction (AuC).
Internal Projects: For internal projects like process optimization or product development, choose a profile that aligns with internal cost accounting and resource management.
External Projects: If the project is related to external contracts or customer projects, select a profile that integrates with sales and distribution, billing, and revenue recognition.
Development Projects: If the project involves development, use a profile that allows for versioning, change management, and testing.

2. Organizational Requirements:

Controlling Area: Ensure the profile aligns with the controlling area relevant for cost and revenue accounting.
Company Code: Select a profile compatible with the relevant company code for financial reporting.
Functional Area: Consider the functional area to which the project belongs for reporting and analysis.
Currency: Make sure the project currency is consistent with the organization's policies and the project's financial requirements.

3. Functional Needs:

Planning Profile: If cost planning and scheduling are required, link the profile to appropriate planning profiles.
Graphic Profile: If you need graphical representations of project progress, ensure the profile allows for the use of graphic profiles.
Version Profile: If project versions are needed, select a profile that supports versioning and data transfer between versions.
Information System Profile:
If you need to analyze project data, ensure the profile is compatible with the desired information system.

4. Streamlining Project Creation:

Default Settings: The project profile should contain default settings for key fields, such as project ID structure (coding mask), responsible organizational unit, and default dates.
Consistency: A well-defined project profile promotes consistency across all projects of a similar type.
Efficiency: Using a project profile minimizes the need to manually enter data for each new project.

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Questions: Why is there a Network Header ?

Answer: In SAP Project System, a Network Header acts as a central control point for a network, which represents the flow of activities within a project. It holds default organizational and control data that applies to all activities within that network, similar to how a project definition does for WBS elements. This simplifies management by allowing you to define settings once at the header level and have them applied to the entire network. 

Reasons for the Network Header: 

Default Settings: The network header provides a place to define default values for the entire network, such as organizational assignments (company code, plant), control indicators (scheduling parameters), and basic start/finish dates. 

Centralized Management: Instead of maintaining these settings individually for each activity, you can manage them at the network header level, making it easier to ensure consistency and efficiency. 

Integration Points: The network header can be linked to a Work Breakdown Structure (WBS) element or a sales order, providing a structured way to integrate the network with other project management objects. 

Scheduling: The network header's scheduling indicators (forward/backward) determine how the network's activities are scheduled. 

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Questions: Why doo we need to enter Planned Revenues for the Project despite having a Billing Plan with Revenue figures in the Sales Order ?

Answer: In SAP Project System (PS), Planned Revenues represent the expected income from a project, while billing plan revenue refers to the specific revenue amounts and dates defined within a billing plan, typically associated with a sales order or WBS element. SAP PS offers various methods to manage and plan revenues, including manual planning, integration with sales documents, and the use of billing 
plans.

Notes:
1. Planned Revenues:

Definition: This refers to the projected revenue that a project is expected to generate.

Methods in SAP PS: Manual Revenue Planning: Allows for direct input of planned revenue values for WBS elements.

Automatic Update from Sales Documents: If a sales document (like a sales order) is linked to a WBS element, the planned revenue can be automatically updated based on the sales document's pricing and billing plan.

Revenue Planning with Billing Plans: Billing plans define a schedule of billing dates and associated revenue amounts for a project or sales order item, impacting the overall planned revenue.

2. Billing Plan Revenue:

Definition: This is the revenue specifically defined within a billing plan.

Functionality: Billing plans are used to structure invoicing schedules, breaking down the total project revenue into specific billing dates and amounts.

• They can be created at the WBS element level or within sales documents, and they determine when payment requests or invoices are sent to the customer.

• The system records the planned revenue based on the billing plan in the relevant WBS element and commitment item.

• Relationship with Planned Revenue: If a billing plan is used in conjunction with a sales order and WBS element, the system may combine the planned revenues from both sources, or it may prioritize one source over the other.

Revenues planned via the Billing Plan in the Sales Order can be displayed in this report
S_ALR_87013565
See the following Blog Posts:

https://froggysap.blogspot.com/2015/02/plan-revenue-to-project-via-sales-order.html

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Questions: When scheduling the Project, does the system use the Work Center work hours or the Durations ?

Answer: In SAP Project System (PS), Work represents the planned effort (usually in hours or other units) required to complete an activity, while Duration is the length of time an activity is scheduled to take. They are interconnected, as the duration is often calculated based on the work and the capacity (number of resources) assigned to the activity. 

Notes:

Work:

Represents the amount of effort needed to complete an activity. 

Typically expressed in work units (e.g., hours, man-hours). 

Can be assigned to internal activities (performed by internal resources) or external activities (performed by external vendors). 

Duration:

Indicates the length of time an activity is scheduled to last. 

Calculated based on the planned work, work center capacity, and available working hours. 

For example, if an activity requires 10 hours of work and the work center has a capacity of 2 people, the duration might be 5 hours if both work at the same time. 

Relationship:

SAP PS allows you to calculate duration based on the work and work center capacity. 

You can specify a calculation key in the system settings to automatically calculate the duration based on the entered work and work center details. 

If you change the work or capacity, the duration will be recalculated accordingly. 

See the following Blog Posts:

https://froggysap.blogspot.com/2016/09/project-system-create-network.html

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Questions: What are the purpose of the Network Control Keys ?

Answer: In SAP Project System (PS), Network Activities are individual tasks or steps within a project that define the work to be done and how it relates to other tasks. They are fundamental components used to plan, execute, and monitor project progress, resources, and costs. Networks, composed of these activities and their relationships, represent the project's workflow.

Some note: 

Definition: Network activities are the specific tasks or steps within a project that need to be completed to achieve project goals. 

Purpose: They serve as the building blocks for project planning and execution, allowing for detailed scheduling, resource allocation, and cost tracking

Types: Internal, External Activities, and Costs

Internal Processing: ZPS1 (or PS01) for Activities done by Internal Work Centers (Technicians)

External Processing; ZPS2 (or PS02) for Work by 3rd Party via PR - PO - GR - Invoice

Cost: ZPS4 (or PS04) for Cost Planning

Service: ZPS5 (or PS05) for Work by 3rd Party via PR - PO - SES - Approval - Invoice

Control Key are user-defined (the above are the standard provided by SAP)

Relationships: Activities are linked together using relationships, which define the sequence and dependencies between them, forming the project's network structure. 

Key Features:

• Network activities enable features like: Scheduling: Determining planned dates for activities based on their duration and dependencies. 

• Resource Planning: Assigning resources (personnel, materials, etc.) to activities. 

Cost Planning and Tracking: Calculating and monitoring costs associated with each activity. 

• Progress Monitoring: Tracking the completion status of activities and the overall project progress. 

• Procurement: Facilitating the procurement of materials or services required for specific activities. 

See the following Blot Post:

https://froggysap.blogspot.com/2016/12/create-project-structure-using-project.html

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Questions: How do we schedule a Project with Network ?

Answer: To schedule a project in SAP, you'll primarily use the Project Builder (transaction CJ20N) and the Project Planning Board (accessed through CJ20N). The process involves defining the project's structure (using WBS elements), scheduling activities within that structure, and managing dates using the planning board. 
See the following Blog Posts:

https://froggysap.blogspot.com/2016/12/perform-scheduling-of-network-and.html

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Questions: When a Project is rescheduled, can the Billing Plan dates generated earlier in the Sales Order also rescheduled according to new Milestone dates ?

Answer: Yes, Billing Plan dates in SAP can be rescheduled based on the latest SAP PS (Project System) milestone dates. This is achieved by linking the milestones in the project to the billing plan dates within the sales document. When the milestone dates in the project are adjusted, the corresponding billing plan dates in the sales document can be automatically updated to reflect the new schedule. 

Important considerations:

1. Linking Milestones to Billing Plan Dates:

• In SAP PS, milestones are defined within a network and are associated with planned and actual dates for the completion of work.
• These milestones can be linked to the billing plan dates within a sales document.

When the billing plan is created, it can be configured to either copy milestone dates from the network or to manually assign milestones to specific billing dates.

• When a milestone is confirmed (i.e., marked as complete), it can trigger the removal of a billing block and allow for the execution of the billing plan.

2. Automatic Rescheduling:

• When a milestone date in the project is changed, the linked billing plan date in the sales document can be automatically updated to reflect the new date.

• This automatic rescheduling ensures that the billing plan remains aligned with the project's schedule.

3. Important Considerations:

• Milestone Confirmation: Billing plan dates tied to milestones are typically blocked until the milestone is confirmed as completed.

See the following Blog Posts:

https://docs.google.com/Milestone Billing Plan without PS Network/
https://docs.google.com/Milestone Billing Plan with PS Network/

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Q&A in Class (2025-07-17) EWM130

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Questions: Why do consultants recommended "Embedded EWM" over "Distributed EWM" ?

Answer: 

First, the definitions: 

Decentralized SAP EWM (Extended Warehouse Management)

• SAP EWM was initially released in 2005 as a separate system for intralogistics, distinct from the SAP WM (Warehouse Management) module.

• As a separate solution, the Decentralized SAP EWM (Extended Warehouse Management) was introduced alongside SAP ERP ECC 6.0. This means it was available as a standalone system alongside the ERP system, rather than being integrated directly within it. This approach was marketed at the time (20 years ago) as the approach would allowed for better performance and scalability, especially for complex warehouses. 
• is a separate, independent system that manages warehouse operations, distinct from the main SAP ERP or S/4HANA system.
• It communicates with the ERP system through interfaces like RFC or IDocs, enabling a high degree of flexibility and customization for complex warehouse scenarios.

Advantages of Decentralized SAP EWM

• Flexibility and Scalability: Handles complex warehouse structures and high transaction volumes, making it suitable for large, automated warehouses. 

• Integration with Multiple ERP Systems: Connects to various SAP and non-SAP ERP systems, offering a unified view of warehouse operations across different systems. 

• Independent Operation: EWM functions independently of the ERP system, allowing it to continue operating even if the ERP system is down for maintenance or upgrades. 

Disadvantages of Decentralized SAP EWM

• Higher Costs: Requires separate infrastructure, licenses, and maintenance, leading to a higher total cost of ownership compared to embedded EWM. 

• Increased Complexity: Requires separate system administration, data replication, and integration efforts, increasing complexity. 

• Data Replication: Requires robust data replication mechanisms (IDoc, ALE, or DRF) to synchronize data between the ERP and EWM systems. 

Maintenance Overhead:

• Maintenance Overhead: Requires separate maintenance for the EWM system, including updates, patches, and performance monitoring. 

• Potential for Performance Issues: Requires careful monitoring and optimization to prevent performance bottlenecks, especially in high-volume scenarios. 

 

Embedded S/4HANA SAP EWM (Extended Warehouse Management)

• SAP Embedded SAP EWM (Extended Warehouse Management) was introduced with the release of SAP S/4HANA, specifically in the Q4/2016 release, version 1610

• This embedded version brought the EWM functionality directly into the S/4HANA core, eliminating the need for a separate, decentralized EWM system in many cases.

• S/4HANA offers both basic and advanced versions of Embedded EWM, with the basic version included with the S/4HANA license and advanced features available through an additional license.

• Embedded EWM provides functionalities for not just inbound and outbound processing, storage and operations, physical inventory, but also advanced features like value-added-service, kit-to-stock management, yard management, and more.

Advantages of Decentralized Embedded EWM

• Lower Costs: Embedded EWM eliminates the need for separate hardware, software, and integration efforts, resulting in lower overall costs. 

• Simplified System Landscape: A single S/4HANA system reduces complexity and simplifies data management. 

• Seamless Integration: Embedded EWM leverages the same data structures and business processes as S/4HANA, leading to better data consistency and reduced integration challenges. 

• Faster Implementation: The integration with S/4HANA speeds up the implementation process. 

• Reduced Complexity: For organizations with less complex warehouse needs, embedded EWM simplifies warehouse operations

Disadvantages of Decentralized Embedded EWM

• Functionality Limitations: Embedded EWM may not offer the full range of advanced features and customization options available in the decentralized version, particularly for highly specialized or high-volume warehouse operations.

• Potential Performance Bottlenecks: In high-volume scenarios, the embedded EWM might face performance limitations due to its integration with the core S/4HANA system.

• Scalability Issues: For large and complex warehouse networks, embedded EWM might not be as scalable as the decentralized version.

Conclusions: The key difference between decentralized and embedded Extended Warehouse Management (EWM) in SAP S/4HANA lies in their integration and deployment. Decentralized EWM is a separate system, while embedded EWM is integrated directly within the S/4HANA system. The choice depends on factors like warehouse complexity, automation level, and integration needs which can be summarized as below:

• Decentralized EWM is better suited for organizations with large, complex, and potentially growing warehouse operations that require high flexibility and customization.

• Separate system: A distinct system landscape with its own database and application server.

• Flexibility and scalability: Suitable for complex, high-volume warehouses with high automation and multiple ERP connections.

• Independent operation: Can operate even if the ERP system is down.

• Higher complexity: Requires more effort for initial setup and ongoing integration.

• Performance benefits: Can handle high transaction volumes and complex processes.

• Embedded EWM is a good choice for companies with less complex warehouse networks and a focus on seamless integration with S/4HANA.

• Integrated within S/4HANA: Part of the core ERP system, simplifying integration with other modules.Simplified landscape: Reduces IT overhead by eliminating the need for a separate system.

• Real-time data: Uses direct updates for faster data processing.

• Suitable for: Smaller to mid-sized warehouses with simpler processes and less automation.

• Cost-effective: Basic EWM features are included in the standard S/4HANA license.

Factors to consider when choosing: 

• Warehouse size and complexity: Larger, more automated warehouses often benefit from decentralized EWM.
• Integration requirements: Embedded EWM offers seamless integration with other SAP modules. Embedded EWM (Extended Warehouse Management) in SAP S/4HANA is generally considered better than decentralized EWM for many scenarios due to its tighter integration, reduced complexity, and lower total cost of ownership.
• Performance needs: Decentralized EWM is better suited for high-volume, high-transaction environments.
• IT infrastructure and resources: Embedded EWM requires less infrastructure and maintenance.
• Future growth and scalability: Decentralized EWM provides more flexibility for future expansion. 

Useful Reference Resources:

https://youtu.be/Embedded or Decentralized SAP EWM? That's the question!/

https://www.youtube.com/Hallmark Cards UK EWM Deployment/

https://westernacher.com/EWM-integration-with-s4hana/

https://www.ssi-schaefer.com/en-asia/newsroom/company-blog/Sap-the-future-looks-Embedded/

https://www.kagool.com/warehouse-management-deployment-in-s-4-hana

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Questions: New Storage Location (with EWM integration) configuration requirement demonstration.

Answer: Here is a Blog Posts on how to setup a new EWM relevant MM Storage Location for Production Supply to the Shop Floor. The new Storage Locaiton is "PS20" in Plant "SPCW" to be activated for EWM Warehouse "E120":

See the following Blog Post: 

https://froggysap.blogspot.com/2025/07/blog-post_19.html

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Questions: The choice between "Delivery-based" production supply vs "Production material request" production supply?

Answer: The choice between delivery-based and Production Material Request (PMR) based production supply in SAP EWM (Extended Warehouse Management) depends on specific production processes and requirements. PMR-based staging is suitable for advanced production integration, offering features like independent operation from the ERP system and the ability to organize staging within the warehouse. 

Delivery-based staging, on the other hand, is best for scenarios needing exact quantities staged at specific times, especially when space is limited or staging spans a longer period.

PMR-based Production Supply (Advanced Production Integration): 

Pros: 

Independent Operation: Allows for independent operation from the ERP system after PMR creation. 

Enhanced Warehouse Management: Enables organizing staging for production using warehouse management capabilities. 

Quantity Flexibility: Can split large component quantities into smaller, manageable units for the Production Supply Area (PSA). 

Reduced System Load: Sends only goods movements instead of full deliveries, reducing system strain. 

Advanced Search: Features advanced search and retrieval capabilities for process documents. 

Cons: 

Complexity: Can be more complex to set up and manage compared to delivery-based. 

Integration Challenges: May not fully support all advanced production processes like JIT kanban and repetitive manufacturing at the version simulated of of today. 

Potential for Over-staging: If not configured correctly, might stage more material than needed initially, especially for processes with variable consumption. 

Not Ideal for All Processes: May not be the best fit for all production scenarios, particularly those requiring precise, real-time staging. 

Delivery-based Production Supply:

Pros:

Precise Quantity Staging: Best for staging exact quantities at specific times. 

Suitable for Limited Space: Ideal when space in the production area is limited, allowing for staged quantities to be delivered as needed. 

Efficient for Longer Staging Times: Well-suited for processes where staging and consumption occur over a longer duration. 

Simplified Setup: Generally simpler to implement and manage compared to PMR-based. 

Cons: 

Less Flexibility: Less flexible in terms of quantity adjustments during staging. 

Potential for Errors: Might lead to errors if consumption quantities deviate significantly from planned ones. 

Not Ideal for All Production Types: May not be suitable for all production processes, especially those requiring frequent adjustments or real-time adjustments. 

Limited Integration: May not fully integrate with all advanced production processes. 

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Question: Is this possible to block the transfer from one Storage Type to another Storage Type in the classic LE-WM ?

Answer: First of all, Storage Types cannot be mapped to MM Storage Location in LE-WM (However, there is one such possibility to mapped GR-Area Storage Type to the same in MM-SLoc fro GR-Area but this is for MM Goods receipt for Purchase Order scenario). 

In this Question, it is about internal transfer in LE-WM from Bin of One Storage Type to bin that belong to another Storage Type AND the user assume the Storage Types are physically belong to different Storage Type in the Warehouse. The User's question is about is it possible to stop a user from performing this task. 

• To manually transfer stock between different storage types within a warehouse using a transfer order (TO) in SAP WM, you'll use transaction code LT01. This transaction allows you to create a transfer order that specifies the source and destination storage bins, even if they are in different storage types. 
• Step-by-step breakdown: 
• Access LT01: Enter transaction code LT01 in the SAP command field.
• Enter Warehouse Details: Specify the warehouse number, material, quantity, and the source and destination storage bins. Ensure you select the correct storage types for both source and destination.
• Manual Bin Specification: Crucially, you will manually enter the source and destination storage bin details. This is how you move stock between bins in different storage types.
• Create the Transfer Order: After entering all the necessary information, create the transfer order.
• Confirm the Transfer Order (LT12): Once the stock has been physically moved, confirm the transfer order using transaction code LT12.
• The LT01 transaction in SAP WM (Warehouse Management) is primarily designed for bin-to-bin transfers within a single storage location. It does not directly support transfers between storage types that "supposedly" belong to different storage locations, even if those locations are within the same warehouse. 

If the intention is to block user from entering a specific Storage Type in LT01, then consider the following User Exit:

• MWMRFDLV
• EXIT_SAPLLMOBSD_010

Or 

It is possible to implement Authorizations at the storage type level in SAP, specifically within Warehouse Management (WM). The Authorization Object L_LGNUM is used to control access based on Warehouse Number and Storage Type. When a user attempts to perform actions within a warehouse, the system checks for authorization against this object, verifying if the user has the necessary permissions for the specific storage type. 

In order to transfer from Storage Location to Storage Location, whether the 2 SLocs belong to the same or different LE-WM Warehouse, use MIGO. 

• It is then possible to setup Storage Location Authorization Object M_MSEG_LGO  if a user is not allow to process for that Storage Location. 

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Questions: "Delivery-based" Production Supply integration steps review.

Answer: There are two models for production integration available in SAP EWM: 

• Delivery-based model (where deliveries are sent as information from ERP to SAP EWM for requirements and goods issues) 

• Advanced production integration model (which does not use deliveries). 

Both models have specific features and the model used depends on the customer’s requirements.

Delivery-based production integration in systems like SAP EWM (Extended Warehouse Management) refers to a method where production orders are linked to outbound deliveries for material staging and consumption. This means that when a production order is released, an outbound delivery is created and replicated to EWM. This delivery then triggers the necessary warehouse tasks for material staging to the production supply area (PSA). 

Key aspects of delivery-based production integration:

Outbound Delivery as the Key: The outbound delivery acts as the central document that connects production orders and warehouse operations in EWM.

PSA Mapping: ERP PSA must be replicated to EWM as EWM PSA and Mapped together.

ERP Control Cycle determines the methods of Staging:

Staging Strategy "1" - Pick Part 

Staging Strategy "2" - Crate Part (not supported)

Staging Strategy "3" - Release Order Part

Staging Strategy "4" - Manual (this is select to use EWM method for Crate Part)

EWM Assign Bin to Product/Entitled in PSA (it's not really a Control Cycle): 

For Crate Part, assign EWM Bin + Minimum & Replenishment Quantities here

For Others with ERP Control Cycle Strategy "1" and "3", ony assign the EWM Bin here

See the following Blog Posts:

https://docs.google.com/Delivery-Based-Staging

https://docs.google.com/Deliery-Based-Backflush

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Questions: "Production Material Supply" Production Supply steps review.

Answer: In SAP Extended Warehouse Management (EWM), a Production Material Request (PMR) is a document that links production planning and EWM, facilitating the staging of materials for production orders (PPDI) or process orders (PPPI). It contains essential information like the product, quantity, production supply area, and staging date, enabling the system to move materials from storage to the production area. Essentially, the PMR acts as a bridge, connecting the production order in SAP ERP with the material staging and consumption processes in EWM. 

Purpose:

PMRs are created in EWM to manage the staging of materials for production orders. 

Data Source: 

The data required to create a PMR is transferred from SAP ERP to SAP EWM, typically via a qRFC (queued Remote Function Call). 

Key Information: 

A PMR includes details like the product being produced, the quantity of components needed, the production supply area (PSA), and the date for which material staging is planned. 

Material Staging: 

The PMR triggers the movement of materials from the warehouse to the production supply area, ensuring that the necessary components are available when needed for production. 

Advanced Production Integration:

PMRs are a core component of SAP EWM's advanced production integration, enabling efficient material staging and consumption for production. 

Staging Methods: 

PMRs can be used for different staging methods, such as single-order staging or cross-order staging. 

Real-time Integration: 

PMRs allow for real-time synchronization of material staging information between SAP ERP and SAP EWM, ensuring accurate inventory and efficient production. 

See the following Blog Posts:

https://docs.google.com/PMR-Based-Staging

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