SAP Dealer Business Management

7.0

Parts Management

Overview & Parts Master & OEM Parts Master

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 Agenda

1. Overview
2. Parts Master & OEM Parts Master

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 Parts Management
Objectives, Issues, Capabilities and Benefits

Objective:
Keep inventory levels low by ensuring parts availability for workshop and counter
sales with increased inventory turns

Best practice solution:

Maximize service level by managing all aspects of the service parts delivery process
including parts planning, procurement, storage, fulfillment and delivery

Issues Key business capabilities Benefits

■ Managing high volumes of parts
in multi-brand environments
■ Unpredictable failure & demand
of parts
■ Increasing customer expectations
■ Positioning parts department as a
true source of profitable revenue
■ End-to-end parts processing across all ■ Increased parts availability
dealer group locations
■ Increased parts turnover
■ Advanced replenishment planning
routines ■ Increased inventory accuracy and
reduced write-offs
■ High service level for counter,
workshop and emergency repair (VOR) ■ Decrease average working capital
■ Leverage buying power of a multi-
brand group

■ Increase cash flow for parts counter

sales

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 SAP Dealer Business Management is
an End-to-end, Cross-functional Solution
SAP Dealer Business Management connects processes across departments to enable a
customer-centric and efficient operation of a dealership or dealer group

Dealer Principal Sales Service Parts

Manager Manager Manager
General Vehicle Sales & Parts
Vehicle Service
Management Administration Management

New & Used

Sales & Marketing Vehicle Sales

Appointment Service
Workshop Scheduling Processing

Vehicle
Procurement Parts
Parts & Sales
Logistics

Parts
Procurement Logistics

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 Aligning Stakeholders to Achieve
A Customer-centric & Profitable Dealership
Effective Management of a Dealership or Dealer Group requires alignment of several stakeholders with
differing objectives

Dealer Principal Sales Service Parts

Manager Manager Manager
Vehicle Sales & Vehicle
General Manager Parts Management
Administration Service

How can I grow my business How can I sell more vehicles How do I service customers How do I keep inventory
by improving at better margins right and on time at every levels low by ensuring parts
visit? availability for workshop &
counter sales

„ Cash Flow & Profitability
„ Customer Loyalty
„ Revenue & Margin „ Premium Customer „ Throughput
„ Visibility in Distribution Service „ Margin
Chain „ Upsell opportunities „ Service Level
„ Workshop Efficiency & „ Inventory turns
Utilization

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 Parts Management
SAP Solution

SAP solution

■ End-to-end parts processing

■ OEM- and dealer parts master
Parts
■ Shared services & intergroup parts processes
Sales
■ Advanced planning routines (e.g. consumption based)
■ Parts availability check (ATP)
Parts
Logistics ■ Express order (VOR) processing
■ Backorder processing
■ Parts supersession /interchangeability
■ Integrated cash desk (POS) system

SAP differentiators

■ Complete solution for service parts in an integrated multi-brand dealer group environment, enabling all
aspects of planning, procurement, warehouse management, catalog integration, fulfillment, OEM interfacing,
collaboration and analytics
■ Simple parts counter sales process with full parts data visibility, online availability & pricing check during
order creation, including a simple cash desk module
■ Global OEM parts master and simplified process for dealer parts master creation during the sales process

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 Parts Management
Overview Parts Logistics

Service Level - Increase parts availability and reduce working capital at the same time Parts
Sales

Parts
Logistics
Process overview
1 2 3 4
OEM & dealer Replenishment Inventory Purchase
Gather
parts Inputs
master Statistical Modeling
Planning Publish Forecast
Management & Finalize Forecast
Requisition &
(stock) Physical Inventory Order

■ Lean OEM parts ■ Advanced planning ■ Inventory types and ■ Shared services for
master file with open routines for parts stock handling (e.g. central purchasing
integration to OEM consignment stock)
data ■ Planning with multiple ■ ATP at different
replenishment types, ■ Integrated quantity & planning levels
■ Simplified and partially e.g. consumption- value flow
automated creation of based planning, net
■ External procurement
dealer parts master requirement
■ Return parts of non-original parts
processing
calculation, order- ■ Express (VOR)
■ Easy maintenance and based planning
handling of parts kits ■ Multiple automated purchase orders
including kits pricing inventory processes
(e.g. permanent)
■ Backorder process

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 Parts Management
Overview Parts Sales (Over the Counter)

Parts Sales enables a customer-centric and streamlined counter sales of Parts

Sales
parts from availability check to cash

Parts Logistics
Process overview

1 2 3 4
Parts
Parts Picking & Billing &
Availability
Order Goods Movement Cash- in
Check

„ Online availability ■ Efficient one-screen ■ Workflow and printing ■ Different payment

check navigation with 360° of picking documents methods (cash, credit,
view on customer card, …)
„ Stock overview across ■ Barcode printing &
all dealer sites within ■ Quick customer- reading ■ Down payments
the group specific pricing &
quotation ■ Direct posting into ■ Credit Memos
„ Open interface for accounting
■ Open interface for ■ Cash journal and cash
external 3rd party
balance
inventory systems external catalog
integration OEM or 3rd ■ Realtime update of
„ Parts supersession party AR/AP accounts
■ Trigger Procurement
directly from the order

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 Parts Sales: Process Flow

Cash Desk
• Easy-to-use cash desk for OTC
cash and credit card payments
• Integration with accounting
• Cash receipts
• Printing of sales checks

Parts Sales Order Billing

• Create, post and print billing docs
• Integration with accounting,
profitability analysis, etc.

Delivery and Goods Movements

• Inventory Management
• Print shipping document
Parts Sales
• Order, vehicle, and pricing details
• Standardized catalog interface
• Credit limit check
• Part supersession and availability check
• Trigger purchase requisition for missing
Creation of Parts Master Data parts (external or internal)
• Easy-to-use material master • Print order
maintenance transaction
• Parts master data creation
and change via interface
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 Replenishment Planning

Goods Receipt
• Stock postings
• Backorder Processing for DBM
Orders

Purchasing
• Conversion PREQ into PO
• Conversion Scheduling Lines
into Delivery Schedules
• Transfer to supplier Replenishment Run (MD02, MD03, MD04)

• Based on MRP parameters in material

master
• Based on replenishment strategy of parts
• Creation of PREQ or Scheduling Lines (if
Scheduling Agreements existing)

Definition of MRP parameters

• Definition of purchasing and
replenishment strategies for parts
• Maintain MRP parameters in
material master
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 DBM 7.0 – Scenario Parts Management New in
Backorder Process – with Replenishment DBM 7.0

Parts Sales Order or Service Order

Billing
• Create, post, and print billing
documents
• Integration with accounting,
profitability analysis, etc.

Backorder Processing after

Replenishment and Goods Issue
Goods Receipt Postings
• Inbound Deliveries
• Stock Postings for incoming
parts
• Integration to Finance and
Accounting
• Display Orders with uncofirmed quantities
• Priority Changes
• Redistribution of quantities
• Backorder quantities
• Goods Issue Postings in DBM Orders
• Status Changes in DBM Orders with
confirmed quantities

Parts Sales Order or Service Order Materials Requirement Planning (MRP)

• Order, vehicle, and pricing details • Inventory Management
• Standardized catalog interface • Create Purchase Orders during MRP
• Credit limit check Run for non-stocked parts
• Part Supersession and availability check
• Display of unconfirmed quantities
• Trigger purchase requisition for missing
parts (external or internal)
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 Cash Desk – Process Flow

Cash Desk Reposting

• Allows to repost the
documents with errors

Cash Desk Posting

• Select the invoices to post
• Enter the cash amount
• Check cash journal and
accounting documents

Cash Desk
• Open the cash desk work
center
• List the invoice(s) via customer
Customer Invoice or billing document
• Customer wants to pay for
DBM service or parts
order

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 Parts Returns Processing
Process Flow

Print the Credit Memo

• Choose any of rejection reasons
provided and reject/close the
credit memo/parts return

Invoice Credit Memo

• Invoice via single or collective
billing

Parts Returns Movement

• Post parts back to stock

Add Data
• Add additional data and
make price adjustments
Create Credit Memo
• Create a credit
memo/parts return via
copy functionality
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 Agenda

1. Overview
2. Parts Master & OEM Parts Master

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 Master Data: Spare Parts (Material Master)

„ Based on the standard material master with enhancements for dealer business parts
„ Easy-to-use material master maintenance transaction
„ /DBM/MM01 Create material – DBM
„ /DBM/MM02 Change material – DBM
„ /DBM/MM03 Display material – DBM

„ Parts master data creation and change via interface (optional)

„ Material master has DBM-specific attributes
„ Part to be returned (returned to OEM for technical improvements)
„ Legal retention period
„ Check multiple entries
„ Subject to disposal

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Choose Logistics Æ Logistics Execution Æ Dealer Business Management Æ Master Data

Æ Part
Transaction Description

/DBM/MM01 Create material – DBM

/DBM/MM02 Change material – DBM

/DBM/MM03 Display material – DBM

/DBM/MMXX Create material from /DBM/OMARA

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 Master Data: Spare Parts (Material Master)

„ Prerequisite views: Basic data 1, Sales data, Purchasing, MRP1 and Accounting

Material
master data

Basic Data 1 Purchasing Other ...

Relevant for all areas Relevant for Relevant for,

materials management materials planning,
Valid for all accounting, etc.
organizational units Valid for plant

Sales: Sales Org Sales: General /

Plant Data
Relevant for sales and
distribution Relevant for sales
and distribution
Valid for:
Sales organization Valid for
Distribution channel delivering plant
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The material master is grouped into several views: Basic data, sales and distribution data,
purchasing data, various further data for engineering/design, accounting, costing,
warehouse management, and so on.

Basic data is relevant for all areas. It is valid for all organizational units within a client.

Sales organization data is relevant for sales and distribution. It is valid for the respective
sales organization and the distribution channel.

The sales plant data is also relevant for sales and distribution. It is valid for the respective
delivering plant.

There is additional data for several other areas that is valid for various organizational units.

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 Master Data: Manufacturer Part Number (MPN)

Optionally, in DBM, you can use the 40-character manufacturer part number, where more
than 18 characters are processed.

Example:
18-character manufacturer part number
„ Material number (external): A062115561
„ Manufacturer part number and manufacturer: do not enter

40-character manufacturer part number

„ Material number (external): A0621155610952422
„ External Manufacturer: RAAG
„ The manufacturer part number is displayed in the interface as follows:
A0621155610952422 :RAAG

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The prerequisite for using the manufacturer part number is that the conversion exit in
Customizing is active.

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 MPN: Maintenance in Material Master

„ MPN and manufacturer fields can be maintained in the material master (transaction
/DBM/MM01, View Basic Data)
„ As a prerequisite the external manufacturer has to be maintained in the vendor
master data (transaction XK01, View Control)
„ If the vendor master number and the external manufacturer number is different in
the vendor master a transformation is also done in the material master

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Please see SAP Note 615290: MPN Conversion Exit : FAQ.

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 MPN: Customization

„ For the usage of the Material Parts Number (MPN) an activation of a conversion exit is
mandatory as prerequisite in Customizing.
„ IMG Æ Logistics General Æ Interchangeability of Parts Æ Set Up Conversion Exit
for Material Numbers.
„ In this activity, you can activate a conversion exit and/or set the output length to
more than 18 characters.
„ For the implementation of MPN several important notes are existing.

„ SAP Note 615290: MPN Conversion Exit : FAQ

„ SAP Note 831966: Restrictions when Implementing the Long Material
„ SAP Note 735529: FAQ: DIMP/DI long material number and MPN

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 Original Parts Master

„ The Original Parts Master is the entirety of all parts that an OEM can deliver.
„ For a multi-brand solution like SAP DBM multiple OEM parts masters have to be
maintained and stored in single parts master records although only a small percentage
of parts is actively used in the dealership.
„ To avoid having superfluous parts master records related to different OEM‘s you can
use optionally the functionality OMARA.
„ Therefore it is possible to load the Original Parts Master Data to the DBM system
without creating an active parts master record.
„ Function Group /DBM/PART_ORIGINAL includes several function modules for creating,
updating and deleting original parts master data
„ The parts master record is only created if the part is really required in the DBM order
processing.
„ The active parts master record can be created from the original parts master using
transaction /DBM/MMXX.

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 Example: SAP DBM Interfacing OEM Systems
e.g. Parts Master Data
SAP DEALER BUSINESS
OEM MANAGEMENT

OR
Regular Create Create Original
data updates Parts Master Parts Master
Master Data
Parts Create
Data Parts Master

Prices

Defect Code Service / Parts

Catalogs Order Processing
Parts
Catalogs

Labor Operation
Catalogs

Vehicle
(/Model) Data

Recalls

Ext. Warranty and

Contracts
© SAP 2009 / Page 21

External catalogs can be interfaced.

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 Creation of Parts from Original Parts Master

„ You can use this function to create a parts master from the Original Parts Master by
using a reference material.

„ Prerequisites:
„ Data for the active parts master record to be created must be available in tables
/DBM/OMARA and /DBM/OMAKT.
„ You must have created a suitable reference material.
„ Activities:
„ To access the function for creating a parts master record from the original parts master,
enter the transaction code /DBM/MMXX.
„ The system displays a selection screen with the following subscreens
„ While executing an active parts master record is created with data from suitable ref. mat.

Search in the Original Parts Master with selecting an OEM

Enter a Reference Material which includes the relevant

master data fields

Enter the organizational units for which the new part

should be created

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In a DBM order you can search in the Original Parts Master if a part is not maintained in the
Parts Master. Therefore use the F4-help within item category P002 and step to the second
search tab. You can also create a material from the original parts master when you create a
DBM order. In this case, you have to maintain the reference material by choosing
Environment → Reference Materials.

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 Master Data: Supersession

„ DBM supports the simple Supersession functionality also used in the industry solution
SAP Automotive (IS-DIMP).
„ The supersession of parts takes place automatically in a DBM order.
‹ Example: Part A must be replaced by part B; this replacement creates a
relationship between part A and part B.
„ The supersession takes place based on the order and stock quantity.
„ When you create a new parts item, depending on the Customizing, you can choose
one of the proposed materials displayed in a dialog box.
„ Depending on the Customizing, by selecting the appropriate material the user can
adjust the quantity as required.
„ The quantity can be split into several items based on the supersession chain.

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Order Supersession: When you create a new parts item, you receive the message that
material X has been replaced with material Y.

When you create a new parts item, you can choose one of the alternate materials displayed
in a dialog box.

Supersession takes place based on quantity; in other words, the order quantity is used.

When you create a new parts item, you can choose one or both of the materials displayed
in a dialog box. By double-clicking on a line, you can adjust the quantity as required.

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 Master Data: Supersession

„ To maintain the Supersession Chain, use transaction PIC01.

„ From the SAP menu, choose Logistics Æ Central Functions Æ Engineering Æ
Interchangeability of Parts Æ Maintain.
‹ List of parts, validity date, reason code, and replacement type
‹ Replacement type can be F (Forward only) or I (Interchangeable)

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Maintenance of Supersession transaction PIC01:

Order Supersession: When you create a new parts item, you receive the message that
material X has been replaced with material Y.

When you create a new parts item, you can choose one of the alternate materials displayed
in a dialog box.

Supersession takes place based on quantity; in other words, the order quantity is used.

When you create a new parts item, you can choose one or both of the materials displayed
in a dialog box. By double-clicking on a line, you can adjust the quantity as required.

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 Master Data: Supersession Customizing

„ IMG Logistics Execution Æ Dealer Business Management (DBM) Æ Part Æ Define

Supersession Chain per Manufacturer.
‹ In this activity, assign the external manufacturer from the vendor master (View
Control) to a category by which the system responds to the supersession chain.

„ 1 => 1:1: Supersession in the DBM Order takes place automatically in the background. When
creating a new part item, the user receives the information that part A has been replaced by part B.

„ 2 => 1:1: When creating a new part item, the user can choose one of two parts in a dialog window.
Supersession takes place for the entire order quantity.

„ 3 => 1:N: When creating a new part item, the user can choose one or multiple parts in a dialog
window. By double-clicking on a line, the user can adjust the quantity per item.
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 Pricing for Parts

„ Maintain the spare parts sales prices

„ Use transaction VK11/VK31 for maintaining the parts prices
„ Sales and Distribution: Pricing procedures and concepts used
„ Flexible definition of access sequences as key combinations (e.g.
customer/material, material)
„ Condition Type: QPRT = DBM Parts Price

© SAP 2009 / Page 26

Use transaction code VK11.

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 Pricing

„ In IMG Customizing for Logistics Execution,

choose Dealer Business Management (DBM) Æ
Order Æ Pricing Æ
‹ Æ Define fast entry of condition
z Configure the fields for the fast entry
of pricing conditions in the order

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Pre-requisite:
5 Pricing concept in SAP
5 Sales and Distribution: Pricing procedures and concepts

Define fast entry of conditions:

„ You can define whether the field for fast entry in the order can be changed and whether
the system copies blank values for conditions to the pricing conditions overview. The
item category field remains initial for the following structures:
„/DBM/VBAK_COM
„/DBM/JOB_COM
„/DBM/SPLHDR_COM

The Customizing table is also responsible for the mapping of input and output fields
(communication structure) to the individual condition records. The pricing executed with
these condition records and for the condition types defined for the fields returns the values
via this mapping table to the input/output fields.

If entries for fields of the different communication structures are missing, they are not taken
into account for pricing.

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 Pricing

„ Æ Assign condition types to item price groups

‹ Define whether a pricing condition type should only be valid for specific item
categories, for example, labor value or parts items

DBM job Material Fix

Discount pricing condition for part header

Surcharge labor condition for labor items

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 Optional: Standard Stock/Inventory Queries

Stock/requirements list
„ Transaction MD04
„ The most up-to-date stock and requirements situation is displayed for a part.
Stock overview
„ Transaction MMBE
„ The Stock Overview provides an overview of all part stock over all organizational
levels.
Material document list
„ Transaction MB51
„ This report provides for documents posted in Inventory Management.
List of stock values
„ Transaction MB5L
„ This report is used to display the total stock quantity and the total stock value for a
material at plant and storage location level.

© SAP 2009 / Page 29

List of stock values (MB5L)

„ This report is used to display the total stock quantity and the total stock value for a
material at plant and storage location level.

Consistency check (MB5K)

„ You can use this to check the consistency of your stock at company code level, valuation
area level, and material level.

Managing held data (MBPM)

„ When you enter a goods receipt, this function allows you to display and delete data that
you have held for further processing but not yet posted.

Analysis of rounding differences (MB5U)

„ This function allows you to analyze rounding differences that resulted from conversion
between units of entry and base units. This applies when you work with a material with
metric and non-metric units of measurement, for example.

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