SAP PREFI REVIEWER

Production Planning

The process of aligning demand with manufacturing capacity in creating production and procurement schedules for the finished products and component materials.

PP Organizational Structure

Shares some organizational units with the previous modules.

Client

An independent environment in the system.

Company Code

The smallest organizational unit where a legal set of books can be maintained.

Plant

The operating area or branch within the company, such as manufacturing, distribution, purchasing, or maintenance facility.

Storage Location

Allows differentiation between the various stocks of material in a plant.

Work Center Locations

Define where and when the operation is performed.

PP Master Data

Has five (5) types: Material, Bill of Materials (BOM), Routing, Work Center, and Product Group.

Material Master

Contains all the information a company needs to manage a material.

Bill of Materials (BOM)

Lists the components that make up a product or assembly.

Item Category

An object that defines the items in a BOM according to criteria, such as the object type of the component.

Routing

The series of sequential steps or operations that must be carried out to produce a given product.

Control Key

Specifies how an operation or a sub-operation is processed in functions such as orders, costing, or capacity planning.

Activity Type

A unit in a controlling area that classifies the activities performed in a cost center.

Work Center

The location within a plant where Value-added work (operations or activities) is performed.

Product Group

Aggregate planning that groups materials or other product groups (Product Families).

Forecasting

The foundation of a reliable Sales and Operations Planning (SOP).

Sales and Operations Planning (SOP)

Planning that utilizes Sales, Marketing, Manufacturing, Accounting, Human Resources, and Purchasing information with Intra-firm Collaboration.

Demand Management

Serves as the link between the Strategic Planning and Detailed Planning layers in Production Planning and Execution.

Master Production Scheduling (MPS)

Allows a company to distinguish planning methods between materials that strongly influence profit or use critical resources.

Material Requirement Planning (MRP)

Calculates the net requirements while considering available warehouse stock and scheduled receipts from purchasing and production.

Planned Order

A request created in the planning run for material in the future.

Production Order

A request or instruction internally to produce a specific product at a specific time.

Purchase Order

A request or instruction to a vendor for a material or service at a specific time.

Production Proposal

Refers to the output of planning such as a planned order or production order.

Capacity Planning

Determining production capacity needed to meet changing demands.

Schedule and Release

Calculating the production dates and capacity requirements for all operations within an order.

Shop Floor Documents

Printed upon the release of the Production Order.

Goods Issue

References a BOM to determine the necessary components to produce the material when a production order is created.

Confirmations

Used to monitor and track the progression of an order through its production cycle.

Goods Receipt

The acceptance of the confirmed quantity of output from the production order into stock.

Order Settlement

Consists of settling the actual costs incurred in the order to one or more receiver cost objects.

Financial Accounting (FI)

The SAP FI module is designed to collect transactional data for preparing the standard portfolio of reports.

FI Organizational Structure

Consists of various organizational units.

Chart of Accounts

A classification scheme consisting of a group of general ledger (G/L) accounts used by one or more company codes.

Credit Control Area

An organizational entity that grants and monitors a credit limit for customers.

Business Area

Represents a separate area of operations or responsibilities within an organization.

FI Master Data

Has three (3) types: General Ledger (G/L) accounts, Customer Master Data, and Vendor Master Data.

General Ledger (G/L) Accounts

Data storage area created by the unique combination of Company Code and Chart of Account.

Customer and Vendor Accounts

Customer and vendor account balances are maintained through fully integrated accounts receivable and accounts payable sub-ledgers.

Accounts Receivable Sub-ledger (FI-AR)

Information concerning customers who purchase goods and services.

Accounts Payable Sub-ledger (FI-AP)

Information concerning vendors from whom goods and services are purchased.

FI Reporting

Processes involved in Financial Accounting.

Balance Sheet

Presentation of an organization’s assets, liabilities, and equity at a point in time.

Income Statement

Presents an organization’s revenues and expenses for a period.

Statement of Cashflows

Associated changes in cash inflows and outflows over a period.

Audit Trails

Allow an auditor to trace through the accounting records up to the transactions that support account balances.

SAP Document Principle

Provides a framework for a strong internal control system.