JIT Processing with the Next-Generation Just-in-Time in S/4HANA - Part 1 -

[meher_souayeh]

Part 1:  Business scenario and prerequisites

 

Business scenario overview:

In supply chain operations where the logistic flow from supplier to customer operates on a PULL system, through mechanisms such as KANBAN, Pick-Up-Sheet (PUS), or Delivery Order Number (DON), the summarized JIT call in next-generation Just-in-Time solution is the appropriate business object within S/4HANA to support running this process effectively. This blog focus on the 'Supply-to-Customer (S2C)' scenario, explaining how to build this process in the S/4HANA system of the seller (supplier).

In an automotive standard pull-based logistics flow, several EDI messages will be exchanged between the seller and the buyer:

• (1) Forecast Delivery Schedule (Call-off): The buyer forwards a mid to long-term forecast to the seller to run the material requirements planning and production scheduling or procurement of raw materials. In general, this message is sent weekly or daily, depending on the customer’s processes and will update the sales scheduling agreement in the seller system. In the EDIFACT, the worldwide standard, DELFOR is the EDI message used for this communication. Different standards might be applied depending on the region of the customer such as VDA4984 (VDA) in Germany, 830 (ANSI X2) for the US, and DELINS (Odette) for the EU.
• (2) JIT Call (Delivery Order): The buyer sends a JIT call, which prompts the seller to initiate the shipping process. In general, this message is sent daily and will create a JIT Calls in the seller system. In the EDIFACT, the worldwide standard, DELJIT is the EDI message used for this communication. Different standards might be applied depending on the region of the customer such as VDA4986 (VDA) in Germany, 866 (ANSI X2) in the US, and CALDEL (Odette) in the EU.
• (3) Advanced Shipping Notification (ASN): Upon dispatching the goods, the seller notifies the buyer with detailed shipping information such as materials, quantities, handling-units, batch numbers, etc. This message is considered as time critical as it must be sent within a predefined time window after the truck leaves the plant of the sellers. In general suppliers will be penalized in case of delayed or erroneous ASN. In the EDIFACT, DESADV is the EDI message used for this communication. Different standards might be applied depending on the region of the customer such as VDA4987 (VDA) in Germany, 856 (ANSI X2) in the US, and AVIEXP (Odette) in the EU.
• (4) Invoice Submission: The seller invoices the buyer, referencing the delivery and including the delivery order number such as DON, KANBAN, PUS, or JIT Call. It is common that invoices are transmitted to the buyer in EDI format. In the EDIFACT, INVOIC is the EDI message used for this communication. Different standards might be applied depending on the region of the customer such as VDA4938 (VDA) in Germany, 810 (ANSI X2) in the US, and INVOIC (Odette) in the EU.

Prerequisites to build E2E scenario for summarized JIT call processing in the buyer’s S/4HANA system:

To ensure a smooth implementation of end-to-end scenario in the buyer’s S/4HANA test environment, check the availability of the following essential master data for a classical Order-to-Cash process:

• Business Partner, customer. For this demo, the business partner OEMSMJ001 will be used.

• Product Master Data, including the sales views and pricing information. For this demo, the finished product FGSMJIT001 will be used.

• Sufficient stock level for the product at the outbound storage location.

Prior to start with the configuration of the summarized JIT scenario:

• validate your master data by creating a sales order and outbound delivery that you can post, and invoice. Consult the documentation of the scope item BD9 if you encounter any difficulties.
• Verify that the standard SAP configuration of the Next-Generation Just-in-Time is accessible within the client of the test system:
  • Using the transaction “NJIT” to access the configuration nodes of the next-generation just-in-time. Check that the JIT Control “S2C_SUMJ” is available in your system. In case the standard configuration is not available in your test client you can copy it from the reference client “000”.     
  • Use the transaction “/AIF/CUST” to access the configuration nodes of the Application Interface Framework. Check that the name spaces /NJIT and /SDSAR Control are available. In case the standard configuration is not available in your test client you can copy it from the reference client “000”.
• 
  • Using the transaction “NJIT” to access the configuration nodes of the next-generation just-in-time. Enable the switch to activate the next-generation JIT Supply-to-Customer solution.                      

 

By following the configuration steps outlined in this blog series, you will be able to set up the following scenario in the S/4HANA system:

In the upcoming post, we will describe the additional JIT master data and EDI settings required to run the summarized JIT call scenario in the S/4HANA using the next-generation Just-in-Time solution.

[Ethan1]

Nice summary! It helps a lot.