Domtar Inc.

Marlboro Mill
585 Willamette Road
PO Box 678
Bennettsville, SC 29512
Tél. : (843) 479-0200
Fax : (843) 479-6603
Email : [Link]@[Link]

DATE: January 22, 2009

TO: Turbine Generator Planners/Managers
CC:

FROM: Paul Miles

SUBJECT:

SAP Overview and Quick Reference

This intention of this reference is to provide those persons working on the Marlboro Mill Turbine
Generator project with an abbreviated reference for utilizing SAP. The basic outline will cover:

 Overview of Project System

 Overview of the Work Order System in SAP
 Work Orders
 Requisitions/Purchase Orders – ordering materials and/or services
 Service Entries – electronic invoices
 Cost Tracking

Before embarking on this reference, it must be stated that in order to properly track costs
all costs need to be planned and requisitioned through the work order system. This
includes all materials and all labor.

Project System

Project System is a module of SAP. It can be used for cost tracking and/or scheduling. We only
use it for cost tracking the Major and Pool Capital projects. The Project System is basically a
structure built to closely model the project estimate. This can be as detailed as you want it to be.
You can include Budget numbers in the structure so that you can compare your Budget numbers
to values such as:

 Planned Cost
 Actual Cost
 Committed Cost
The values such as Planned/Actual/Committed/ cost come directly from work orders that have
been assigned a “tracking number” that associate the work orders with the proper Project System
Structure.

The project number for the Turbine Generator Project is M.00188. The SAP transaction most
used for cost tracking is S_ALR_87013558. This will be covered in more depth later.

Work Orders

Everything associated with the project is done through the work order system. This is necessary
in order to properly track costs using the Project System module in SAP. In SAP, there are some
work order functionalities that may be different than what you are used to. Some of the keys
ones are:

 There is only one requisition per work order. However, the requisition can have multiple
line items that result in multiple purchase orders. Some of the line items may be for
Components (materials – either store stock or direct purchase) or Operations (which
could be requisitioned labor or material purchases that require partial shipment and/or
invoicing). This will be explained more in depth later.
 Work orders can be in an Open, Planning, Planned, Approved, or Ready status. As long
as they are in the Open, Planning, or Planned state, the requisition (which may have
multiple line items) is not forwarded for approval. A work order requisition is not
forwarded for approval until the work order is Released (which is basically the SAP
wording for “approval to proceed with incurring costs against the work order”).
 There are different work order types. For Capital projects, the work order type should
always be PM06 (modification maintenance order). This differentiates the work order
from being a routine maintenance work order such as a PM01 (corrective maintenance)
or PM02 (preventive maintenance)
 Capital project work orders need to be associated with an Internal Order. An Internal
Order can be looked at as a specific bucket into which all costs associated with a given
capital project are collected. This is done by “settling” the work order cost to the Internal
Order. There is an icon on the work order page that will bring up a pop-up screen that
will allow you to change the cost settlement from a cost center to an Internal Order. This
will be explained in more detail later.

Below are listed the main tabs in a work order and a brief definition of specific fields:

HeaderData
 PlannerGrp – Planner Group. Everybody that has the responsibility for
planning/requisitioning has a planner group number. Once a work order is released, the
requisition (assuming there are requisitioned items) will be placed in the Business
Workplace for the person identified with the Planner Group number. The Business
Workplace is where a person can review/forward/approve requisitions.

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  [Link] – Main Work Center. This is similar to what most people call a crew or team.
All equipment in the mill is associated with a default Main Work Center. This value will
default into the Operations section for labor planning since most routine work would be
handled by a particular team (for example, the R&U Mechanical Day Team would handle
most routine jobs associated with a pump in their area). The value can be changed in the
Operations section to allow you to associate the proper crew/team or outside contractor
with the work to be done. This will be covered in more detail later.
 Bas. Start – Basic fin. – these are basic start/finish dates for the work order.
 Revision – this term initially is confusing. It does not mean that something has been
revised. This term means a specific time window for doing work that can be associated
with a work order. The mill has built Revisions to represent each of the 52 weeks in a
year. We have also built Revisions to represent specific outages such as Paper Machine
shutdowns, Kraft Outages, HFB shutdown, and Annual Shutdown. This allows you to
look for work orders that have been assigned to a specific Revision. When you select a
Revision, it will then populate the Basic Start and Basic Finish dates.
 FunctLoc – Functional Location. The Functional Location is a required field when you
create a work order. This term represents the physical location where a specific piece of
equipment is located. For example, the HFB ID Fan is a fan (equipment) that resides in
the location where the Fan should be located. This would allow you to move equipment
in and out of a location and track where the equipment goes. We don’t do this, but SAP
allows you to do this. It should be noted that there are higher level Functional Locations
that are used to group equipment level Functional Locations into practical groups and
subgroups to make them easier to find in an equipment hierarchy.

Operations

The Operations section is used to plan for services such as: labor (internal or external), services
such as Consultant Engineering, and for material purchases that will have partial shipments
and/or partial payments. Internal labor is considered a PM01 Operation and all others are
considered PM03 operations. This will be covered in more detail later. However, there is one
very, very important thing to remember:

*NEVER USE THE FIRST OPERATION (OPERATION 0010) FOR A PM03*

Always leave the first operation as a PM01. In the time entry system, the default operation that a
technician records his time against is Operation 0010.

Components

The Components section is used to request (reserve) materials from the storeroom or to order
from an outside vendor. Storeroom items will show the material master (store stock) number
under the Component heading. Components are associated with Operations in that an Operation
has to be selected because the Operation is associated with a date. The default is Operation 10.

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This feature is there to allow materials to arrive shortly before they are needed. How to use this
section will be covered later.

Additional Data (Add. Data)

The Additional Data section is where you will associate the work order with the Project System
module in SAP. The three fields you use in this section are:

 WBS Element – Work Breakdown Structure Element. This corresponds to the structure
built in Project System for cost tracking.
 Subnetwrk of/oprtn. – The first field is required to allow the costs to report back to the
project structure. The second field (activity) is used to identify the subordinate parts of
the project system structure such as Electrical, Mechanical, Civil, etc…

How to assign a work order will be covered later in more detail.

This concludes covering some information related to the main tabs within a work order.

Now we will talk briefly about invoices and cost tracking.

Invoices

In previous systems used by the mill, hard copy invoices were sent to accounting, who in turn
sent them to the appropriate person to sign off on the hard copy invoice. This is no longer done.
Invoicing occurs as follows:

 Components – items that are ordered through the Components section of the work order
will be deemed payable once they are received by the storeroom. You will not receive an
invoice. There are ways to see what has been delivered. This will be covered in more
detail later.
 Services – remember that these can be labor (internal or external), services such as
Consultant Engineering, or material purchases that will have partial shipments and/or
partial payments. The invoices are sent to the mill’s accounting department. They
create what is called a “Service Entry Sheet” or SES. You will receive an email from
accounting personnel that asks you to accept the SES. There is a transaction in SAP that
you will use to do this. This will be covered in more detail later.

Cost Tracking

There are a number of ways to track cost. One way is to look at the cost tab for each work order.
However, this would be cumbersome and aggravating. At the Marlboro Mill, we use Project
System to associate every work order (where all costs are planned) with a cost structure that will
allow us to track budgeted costs versus:

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  Planned Cost
 Actual Cost
 Committed Cost

From this same Project System you can then drill down into any of the work orders, requisitions,
purchase orders, components (materials), operations (labor (internal or external), services such as
Consultant Engineering, material purchases that will have partial shipments and/or partial
payments), service entry sheets, and much more.

Now that we have gone through a brief overview, let’s use some screen shots in SAP and some
references to existing job aids (SAP references with screen shots) to help with getting you
started.

Below is a screen shot out of Project System. This screen shot comes from running the
S_ALR_87013558 report.

Network
WBS Number
Work Order
Activity Number
Number

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Note the WBS elements, network number, activity number, and work order. You can also see
the Budget, Plan Cost, Actual, Commitment, Assigned, and Available fields. Note that the costs
roll up from the subordinate WBS elements to the superior WBS elements. The key fields used
for tracking are:

 Budget – a fixed number representing your budgeted number

 Plan Cost – this number comes from all the planned costs in every work order associated
with WBS/Activity that it is assigned to.
 Actual – this is the actual cost that has been absorbed as of the running of the
S_ALR_87013558 report
 Commitment – this represents the costs that you have committed to through the planned
cost (material/labor/services) that have not been invoiced and accepted. It would seem
that Plan Cost minus Actual would equal Commitment but this is not the case. Services
that are handled as PM03 Operation also have sales tax included in the Commitment cost.

The last two fields are not followed at the lower levels because it requires you to have a budget
number associated with each work order.

To begin planning, you will need to create a work order. See Job Aid for IW31, Create a Work
Order, for steps on how to create a work order. Note that the work order needs to be a PM06
type work order. Once you have created a work order, use transaction IW32 “Change Single
Order” to select the work order and follow the steps outlined below to set up the work order prior
to planning:

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 3. Click on this
icon to change
settlement rule

1. Change this
to your planner
group number.

2. Select a
Revision (time
work window)

The next screen will show you the settlement rule screen:

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 3. Click here to back out to the work order screen.

2. Enter the Internal Order Number 8000006250. This

is the Turbine Generator Project Internal Order.

1. Click on this to select

ORD instead of CTR.
Do this for both lines.
The first line is a full
settlement line and the
other allows for partial
settlements.

The next thing to do before you start planning the work order is to assign it to the proper WBS
element. The next screen will show you how to do this. First, from the regular work order
screen, click on the “Add data” tab.

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 Click on the “Add data”
tab.

This will bring you to the screen on the following page. There are search features that will allow
you to look up the values for the fields that you need. We will work with each planner to set
these up in a Personal List so that you don’t have to go through a detailed search. You could
also print out the WBS structure and use it to find the values. We’ll show you both ways.

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 3. This value will auto-
populate when you back out
of this part of the work order
(by clicking on the Green Ball
at the top that has the white
arrow in it).

2. Once you have done the first step (see text

box to the left), you can select this value by
1. Select or type in the clicking on the dropdown.
appropriate value

You now have the work order ready to plan. To recap what you have done so far, you have:

 Created a work order

 Settled the cost to the proper Internal Order (8000006250 for the Turbine Generator Project).

 Assigned the work order to the proper WBS (work breakdown structure) so that all costs
can be tracked in SAP.

Now you are ready to plan the work order. So, lets get started.

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