SAP S4 HANA: Best Software Solution for Better Chocolate & Confectionary

Improvised Chocolate & Confectionary Manufacturing with SAP S4 HANA

Chocolate and Confectionary Manufacturing Industry, being a versatile sector in the world, goes through incessant development. Innovative software solutions are necessary for Chocolate and Confectionary Manufacturing Industries to keep up with the huge and dynamic competition, and also to integrate business processes effectively. SAP S4 HANA comes to the rescue in such a situation, proving to be the best and most powerful ERP Solution for industries like Chocolate and Confectionary Manufacturing. With the help of the SAP S4 HANA system, Chocolate and Confectionary Manufacturing Industries can effectively and efficiently handle every aspect of its business, from any part of the world. And, migrating to SAP S4 HANA Software is the best option to meet the challenges of the Chocolate and Confectionary Manufacturing Industry.

Let us have a look at how SAP S4 HANA benefits the Chocolate and Confectionary Manufacturing Industry:

Order to cash

The Make to Stock & Order process of Chocolate and Confectionary Manufacturing Industry is as follows:

Once the yearly/quarterly or time period-based blanket agreement/contract from the customer is received, the Purchase Order is created as a Blanket agreement or Sales order in SAP S4 HANA, as per which FG is produced continuously in a periodic order. This is then followed by Accounts Receivable Invoices and Incoming payments (Major Reports include Customer receivable, Cash flow, and Sales analysis).

Procure to pay 

Using the MRP function, by the start of the month, we plan for procurement for the month and the purchase request is auto-created. Goods receipt is created against the Purchase Request by the stores, and as per the Accounts, the Payable invoice and Outgoing payment are done (Major Reports include Vendor payables, Cash flow, and Purchase analysis).

Sales order

SO is created from the blanket agreement or once PO is raised or once the quotation is confirmed by the customers of Chocolate and Confectionary Manufacturing Industries. Using DMS, the soft copy of the PO is also attached. Also, the payment terms and delivery date are fixed. And then, we do send the order acknowledgment from SAP S4 HANA by email.

Sales Quote

Once the Sales Quotation from the customers is confirmed by SAP S4 HANA, it is converted to an order and the quote gets closed.

MRP

The MRP is used for Production planning and the procurement of required raw materials, considering the stock and for opening PO (Purchase request for RM is auto-created as per the Order/Demand). This is also a critical aspect of the Plan to produce.

Purchase Request

PR is auto-created by Material Requirements Planning, and even the PR is created manually department-wise as per the requirement of office equipment, consumables, etc. against which the PO is generated.

Purchase Order

On basis of the Purchase request, PO is created by approval procedure.  For items having default supplier, PO is automatically created by MRP, by fetching unit cost from the pricelist set.

GRPO

On basis of the PO, when the vendor delivers the item, the Goods receipt against PO is posted which debits the inventory (Stock adds in the warehouse – WMS).

Supplier Payment

Based on GRPO, a supplier invoice is added against which the outgoing payment is done.

Production

As per the BOM, considering the demand and stock by MRP, production orders are auto-created. RM is issued route stage-wise, and once all the stages are completed, the receipt from production is done, where the Finished goods come to inventory (Product Costing is a critical aspect of SAP S4 HANA).

Invoice

Account Payable invoice is created and the payment entries are posted (Open document system gives proper control).

This is how SAP S4 HANA Software benefits Chocolate and Confectionary Manufacturing Industry and increases its overall efficiency. Also, the overall manufacturing operations of Chocolate and Confectionary Manufacturing Industries can be greatly improved.

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