SIA Prefi

Production Planning

The process of aligning demand with manufacturing capacity to create production and procurement schedules.

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 operations are performed, which can include machines, people, or production lines.

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.

Single-level BOM

Lists the main components of a product.

Multi-level BOM

Lists the main components and their sub-components.

Variant Bill of Materials

Displays several products with many identical parts.

Item Category

Defines items in a BOM according to criteria, such as type of component.

Routing

The series of sequential steps or operations required to produce a given product.

Control Key

Specifies how an operation or sub-operation is processed.

Activity Type

Classifies activities performed in a cost center.

Work Center

Location within a plant where value-added work is performed.

Product Group

Aggregate planning that groups materials or other product groups.

Strategic Planning

Forecasting and SOP involving executives such as CEO, COO, and marketing directors.

Detailed Planning

MPS and MRP involving line managers, production schedulers, and capacity planners.

Manufacturing Execution

Involves line workers and shop floor supervisors in the production process.

Forecasting

Foundation of reliable Sales and Operations Planning (SOP).

Trend

uses market research and consumer data to predict future trends.

Seasonal

Predicts short-term customer demand at different times of the year.

Constant

Uses actual value of each period to predict the next.

Sales and Operations Planning (SOP)

Collaborative planning across various departments including sales and manufacturing.

Demand Management

Links the strategic planning and detailed planning layers in production.

Demand Program

Result of demand management process incorporating previous planning results.

Master Production Scheduling (MPS)

Distinguishes planning methods between materials that influence profit and critical resources.

Material Requirement Planning (MRP)

Calculates net requirements considering available stock and scheduled receipts.

Static Lot Size Calculation

Based on fixed values in the Material Master.

Periodic Lot Size Calculation

Groups net requirements from multiple periods.

Optimized Lot Size Calculation

Calculates optimum lot size for several periods of net requirements.

Planned Order

Request created for material in the future, later converted to production or purchase order.

Production Order

Instruction to produce a specific product at a specific time.

Purchase Order

Request to a vendor for material or service at a specific time.

Schedule and Release

Calculates production dates and capacity requirements for operations within an order.

Header Level

Entire order and all operations are released for processing, order is given a REL status

Operational Level

Individual operations within an order are released. A REL status is given to the order if the last operation is released. Until then, the order is given a PREL status.

Shop Floor Documents

Printed documents upon release of the Production Order.

Goods Issue

Material withdrawal referencing a BOM to determine components needed.

Confirmations

Track progression of an order through its production cycle.

Goods Receipt

Acceptance of confirmed quantity of output from production order into stock.

Order Settlement

Settles actual costs incurred in the order to one or more receiver cost objects.

Settlement Profile

Specifies receivers and distribution rules for order settlement.

Settlement Structure

Determines assignment of debit cost elements to settlement cost elements.

Financial Accounting (FI) Module

Designed to collect transactional data for preparing accounting reports.

Internal Group

Includes executives, senior management, and employees.

External Group

Comprises external stakeholders like banks and auditors.

Chart of Accounts

Classification scheme consisting of G/L accounts used by one or more company codes.

Credit Control Area

Organizational entity that grants and monitors customer credit limits.

Business Area

Represents separate areas of operations for internal reporting.

General Ledger (G/L) Accounts

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

Accounts Receivable Sub-ledger (FI-AR)

Information concerning customers purchasing goods and services.

Accounts Payable Sub-ledger (FI-AP)

Information concerning vendors from whom goods and services are purchased.

Balance Sheet

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

Assets

Define what the company owns.

Liabilities

Define what the company owes.

Equity

Difference between assets and liabilities; market value after debts are paid.

Statement of Cashflows

Shows changes in cash inflows and outflows over a specified period.

Audit Trails

Allow tracing transactions supporting account balances in financial statements.

SAP Document Principle

Ensures financial documents impacting company position cannot be deleted.

Financial Document

An impactful document that can be changed but not deleted from the SAP database.