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Internal Product Development
SAP Best Practices Baseline package
SAP Best Practices
Scenario Overview – 1
Purpose and Benefits:
Purpose


The business process encompasses all steps necessary to setup and process a project to develop a new
product.
Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary
costing and period-end closing.
Benefits

Project structuring

Simplified preliminary costing for complex projects

Revision levels ensure data consistency
Key process flows covered

Document Management (Easy Document Management)

Assign a document (KPR) to the material masters of the finished product

Project Management

Create a project based on a template

Product Data Management with Engineering CM

Create a change number for the design project

Display the BOM of the new product

Redisplay the BOM (effects of change number)

BOM status management

Assign revision level to the material master of the new product

Product Cost Controlling

Material cost estimate for the new product before and after BOM changes (effects of change on price is
shown)

Material calculation

Project Closing

Record development (engineering) activities

Closing and Settlement of project
Scenario Overview – 2
SAP Applications Required:
Required

SAP enhancement package 4 for SAP ERP 6.0
Company roles involved in process flows






Project Manager
Product Cost Controller
Engineering Specialist
Employee (Professional User)
Enterprise Controller
Asset Accountant
Scenario Overview – 3
Detailed Process Description:
Internal Product Development
This scenario supports companies in designing new products.
SAP Product Lifecycle Management provides the project management functions to collect all costs and
documents for product development. The project provides a central structure for cost collection and
documentation management. Transparent BOM handling and product data management functions help
to turn the product specification into an engineering BOM that can be copied to create the production
BOM. All project activities are recorded.

The internal design department sets up a design proposal for the new product, which serves as the
basis for the product specification.

The new material master and material BOM are created in the backend system. Later, the production
scheduler creates routing as a basis for production and calculation of the product.

To check the price level specified from the marketing department for the new product, the product cost
controller calculates material costs using the BOM and routing. Since the estimated price exceeds the
specified price limit, a component of the new product BOM is exchanged for a less expensive
component using change management. The design department issues an engineering change master
to collect and document all changes according the specification document.

Following a second costing run (cost estimate), the price meets the budget. Now the development
status of the new product can be fixed by assigning a revision level.

At the end of the scenario, the internal design department records the activities it executed during the
project, and finally closes the project.

The manufacturer creates a production BOM (by copying the engineering BOM (usage type 2) to the
production BOM (usage type 1). QM in production, credit management and plant- and company closing.
Process Flow Diagram
Design Request for
a New Product
Receive Design Request
from Your Internal
Marketing Department
Receive Specification from
Internal Marketing Dep. and
Create Doc. Info. Record
Create a Design Project
Approve
Working
Hours
Generate
Settlement
Rule
Transfer
Recorded
Data to
Controlling
Create Engineering
Change Master
(ECM) for CAD
drawing
Assign Revision
Level to Header
Material of New
Product
Create New
Engineering Change
Master
Product Design
Process CAD Interface
Create
Material BOM
(155.37)
Update Doc.Using CAD
Document & assign to
Header Material of New
Product
Create
Document Info
Record
Complete
Project
technically
Project
settlement
to CO-PA
Close
completed
project
Release Project
Create Material
Master for
Header Material
Link Document
Info Record to
Header Material
and Release
Document
Product Cost
Controller
Engineering Specialist
Project
Manager
Marketi
ng
Dept.
Internal Product Development
Create
Routing
(155.39)
Lock Engineering
Change Master
Activate Change
Number
Create Cost
Estimate with
Quantity
Structure
Assign
Revision Level
Lock Engineering
Change Master
Record Working
Hours
Activate
Change
Number
Create Production
BOM from
Engineering BOM
Change BOM and
Display BOM
Product Cost
Estimate too High
Reference and
Simulation
Costing (187)
Make BOM
Costing
Relevant
Proceed
Standard
Cost
Calculation
(154)
Enterprise
Controller
Cost Estimate
Period-End Closing
“General” (181)
BOM = Bill of Material, DM = Document Management
Process Flow Diagram
Assets
Accountant
Enterprise
Controller
Project Manager
Employee
(Professional User)
Project Management
Record Working
Hours
(Optional)
Direct Activity
Allocation
Approve
Working Hours
Complete
Project
Technically
(Optional)
Generate
Settlement Rule
Actual Settlement
of Project to
Profitability
Analysis (CO-PA)
Maintain a
Settlement Rule
Transfer
Recorded Data
to Controlling
(Optional)
Create Asset
Actual
Settlement of
Project to Asset
Management
Close
Completed
Project
Period-End
Closing for
Plant (181)
Legend
<Function>
Symbol
Description
Usage
Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
Role band
contains tasks
common to that
role.
Symbol
Diagram
Connection
The other process flow symbols in this table go into
these rows. You have as many rows as required to
cover all of the roles in the scenario.
Hardcopy /
Document
External
to SAP
External Events: Contains events that start or end the
scenario, or influence the course of events in the
scenario.
Business
Activity /
Event
Flow line (solid): Line indicates the normal sequence
of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can
also lead to documents involved in the process flow.
Connects two
tasks in a
scenario
process or a
non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an outside
Process that happens during the scenario
Does not
correspond to a
task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to
a task step in
the document
SubProcess
Reference
Proces
s
Decisio
n
Usage Comments
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
Financial
Actuals
Budget
Planning
Manual
Proces
s
Unit Process
Process
Reference
Description
Process Reference: If the scenario references another
scenario in total, put the scenario number and name
here.
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario here
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Corresponds to
a task step in
the document
Corresponds to
a task step in
the document
Does not
usually
correspond to a
task step in the
document;
Reflects a
choice to be
made after step
execution
Existing
Version /
Data
System
Pass/F
ail
Decisio
n