SAP PP Tutorials -GURU

1) Introduction to SAP PP

2) Bill of Material (BOM)

3) Work Center in SAP PP

4) Create/Change/Display Routing

5) Create Production version

6) Demand management

7) Material Requirement Planning

8) Long Term Planning

9) Capacity Requirement Planning

10) Goods Movement Vs Production

11) Production Order in SAP PP

12) Reports used in SAP PP

13) SAP PP Interview Questions

Introduction to SAP PP (Production Planning)

What is Production Planning?

• Production Planning is the process of aligning demand with manufacturing capacity to

create production and procurement schedules for finished products and component
materials.
• SAP PP is an important module of SAP. It tracks and makes a record of the manufacturing
process flows, for example, the planned and actual costs. Also, goods movements from
the conversion of raw material to semi-finished goods.

• It is fully integrated with the other SAP modules: SD, MM, QM, FICO & PM.

Organization Structure in SAP PP

In any live Production Planning module, locations of manufacturing plants and storage within
the plants, should be available in the system.

Importance of Plant and storage locations in Production Planning-

• All Production master data is created at Plant level.

• Planning activities are also performed at Plant level.
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 • Production Confirmation process and related goods movement occur at plant and
storage location level.

Master Data in SAP PP

Master data is generally static for any company and is very rarely changed depending on the
requirement. There are 5 master data to be maintained in Production Planning module.

1. Material Master

The material master contains information on all the materials that a company procures,
produces, stores, and sells. It is a number uniquely identifies a material master record, and
hence a material.

Materials with the same basic attributes are grouped together and assigned to a material type
such as finished, raw material, etc.

It is used for the following purposes:

1. To purchase materials
2. For Goods Movement postings such as goods issue or receipt in inventory
management and also for physical inventory postings
3. In invoice verification for posting invoices
4. In sales and distribution for sales order fulfillment process
5. In production planning and control for material requirements planning, scheduling, and
production confirmation processes.

2. Bill of Material (BOM)

A bill of material is a complete, formally structured list of the components together with the quantity
required to produce the product or assembly.

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BOM's are used in material requirement planning and product costing.

You can also create up to 99 alternative BOMs for a single product.

For Products having variants, you can create Super BOM, which has all possible types of components
used to manufacture different types of variants, and the appropriate component is selected based on
characteristic chosen in the sales Order.

For example, Product Cycle can contain all types of frames (with different colors and sizes) and desired
frame is selected in production order based on color and size chosen in the sales order.

3. Work Center

A Work Center is a machine or group of machines where production operations are performed. Work
centers are used in task list operations (Routings).

It contains the data for

• Scheduling
• Capacity
• Costing

4. Routing

Routing is nothing but a sequence of operation performed at the Work Center. It also specifies the
machine time, labor time, etc. for the execution of operations.

It is also used for scheduling of operations and used in standard cost calculation of the product.

5. Production version

The production version is a combination of BOM and Routing data for production. It is a linkage between
BOM & Routing and determines the manufacturing process.

There can be multiple production versions as per different manufacturing process to produce the product.

Production Planning Cycle

The Production Planning and Control consist of 2 obvious processes of Planning and Execution.

Planning

Production planning is generally done from budgeted sales plan. Planning is based on the Sales plan to
meet the sales requirements as per the production cycle times. Demand for the Product is entered through
demand management in the form of planned independent requirement (PIR). This data from demand
management becomes the input to Material requirement planning (MRP).MRP checks for the availability of
various raw materials used for production at different stages using the master data such as Bill of material
(BOM) and available current plant stocks.

In case of material shortage, Purchase requisitions are created for materials which are externally
procured, and planned orders are created for in-house produced materials.

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These purchase requisitions and planned orders initiate the Procurement Cycle and the Execution Cycle
of Production respectively.

As MRP works with infinite capacities, capacity leveling must be done in order to avoid any capacity
bottlenecks.

Execution

These Planned orders are converted to Production orders, and are scheduled as per the production
timings using master data such as routings.

Production Orders are released by the Production Supervisor on the shop floor, and material availability
checks can also be carried out to check if there are any missing components.

Production is carried out based on the activities maintained in the Routing where the master data like
Work Center is mentioned against each operation in the Routing.

Once the production is completed, the Confirmations of orders are executed, and goods movement for
material consumptions & goods receipt are posted against the Order. Hence, the Order gets the Delivered
(DLV) status, and the material is received into desired storage location.

Usually at the month end before doing order settlement, production order needs to be set to technically
completed status in order to calculate production variances by the controlling personnel.

Demand Management
The function of Demand Management is to estimate requirement quantities and delivery dates for finished
products and important assemblies. Demand Management uses PIR (planned independent requirements)
and customer requirements.

Planning strategies must be defined for a product. It represents the methods of production for planning
and manufacturing. There are two methods by which we can do this.
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Make to Stock: Production of goods without having sales orders, i.e., stock is produced independently of
orders.

Make to Order: This strategy applies to the production of material for a specific individual sales order or
line item.

Material Requirement Planning (MRP)

MRP determines any shortages and creates the appropriate procurement elements. It does
net requirement calculation and generate planned orders for in-house produced materials and
purchase requisition for raw materials.

It does lead time scheduling and calculate production dates in planned orders.

It explodes the BOM and generates procurement proposals at each BOM levels.

Capacity Planning & Leveling

Capacity Planning is used to analyze the capacity overloads at work center and shift the
orders to avoid any capacity bottlenecks.

Capacity requirements are generated via MRP on Work Center and since MRP works with
infinite capacity and plans everything on work center without considering any capacity
constraints. It is required to level the capacity at the work center.

Capacity can be leveled at each work center through planning table in order to create
constraint production plan.

Production Orders
The output of MRP will be "Planned Orders", which needs to be converted to production
orders for further execution of the process.

The Production Order is firmed receipt element, which is not affected by MRP run, unlike
Planned Orders.

• Production Order is a document which specifies what material needs to be produced

and in what quantity. It also contains the BOM components and routing operation data
to be performed at the work center.
• Production Order is released for execution, and material availability checks can be
carried out which determines if there are any missing components.

Production Order Confirmation

When goods are produced physically at the shop floor, then production order must be
confirmed.
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During confirmation, components materials can be consumed automatically via back flush
mechanism and Goods receipt of material can be performed automatically via operation
Control key in Routing.

However, instead of auto goods movement, manual Goods Issue and receipt can be
performed separately from confirmation.

Any failed goods movement due to a deficit of component stock can be reprocessed
manually.

Activity costs such as machine, labor, etc. will also be updated in the production order during
confirmation on an actual basis.

The order gets CNF (Confirmed) and DLV (Delivered) status after final confirmation and final
Goods receipt.

If confirmation is posted wrongly, then we can cancel the confirmation and post it again with
correct data.

Production Order Close

After the production order is delivered completely or we don't want to execute the order
further then Order should be technically completed.

After Order gets TECO status, it gets deleted from stock/requirement list and is no longer
considered in material requirement planning run. All dependent reservations also get deleted
from the system.

Next, we will look into each phase of SAP PP and learn how to operate SAP PP module.

Bill of Material (BoM) in SAP PP: Create, Change, Display

What is Bill of Material (BOM) and its role?

A bill of material is a complete, formally structured list of the components that make up a
product or assembly. The list comprises of the material number of each component, together
with the quantity and unit of measure.

• BOM can be single level and multi-level. For example, finished material would contain
semi-finished materials as components which in turn would contain raw materials as
components in next level.
• There can be different alternative BOMs for a product depending upon the lot sizes,
validity dates, and different production methods.

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 • BOM is used in production planning for semi-finished and purchase planning for raw
materials.
• BOM's are also used in standard cost calculation for finished Product by rolling up the
cost from raw to semi-finish and then to finished Product.
• Material BOM can be made for material in PP module and equipment BOM are used in
Plant Maintenance module.

In this tutorial – you will learn,

• How to Create BOM

• How to Change BOM
• How to Display BOM

How to create BOM

Step 1) From SAP Easy access screen open transaction CS01

1. Enter parent material for which BOM needs to be created.

2. Enter Plant Code.

3. Enter BOM usage = "1" which is used for Creating Production BOM

4. Enter the valid from the date which means that BOM would be valid from that date.

After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In Next Screen

1. Enter Item Category as "L" which is used for stock item and could be default also.
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 2. Enter Component material code in Component Field.

3. Enter Component quantity as shown below.

4. Some information such as description and a basic unit measure of the component will
be brought out by the system automatically after clicking or pressing enter from the
keyboard.

Useful Notes:

To drill further down through the BOM for one of these components, double click on
the within the Assembly column. If the box is not ticked, then the component has no further
BOM.

Step 3) In this screen,

1. Click on this icon to see the BOM header, the system will then show the BOM
header screen in the next step:

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Step 4) In the BOM header view,

1. Fill the base quantity of parent material. If this is 1 EA (each), then the component
quantity will describe how much is needed to produce 1 item.

2. Click to save the new BOM after check, the system will show
message at the lower left corner.

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Now, in next step we are going to see, how to change BOM?

How to Change BOM

We would change the BOM if there is any change in the list of components or any component
quantity which is used to manufacture the final product.

Step 1) From SAP Easy access screen open transaction CS02.

1. Enter parent material for which BOM needs to be changed.

2. Enter Plant Code.

3. Enter BOM usage = "1" which is used for changing Production BOM.

4. Enter the valid from date which means that BOM would be valid from that date.

Step 2) After filling in all the fields, click to go to the next screen.

1. Change the component code or quantity.

2. After finishing all modifications, click to save BOM. The system will show a message
like changed at the lower left corner.

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How to display BOM
Step 1) From SAP Easy access screen open transaction CS03

1. Enter parent material for which BOM needs to be displayed.

2. Enter Plant Code.

3. Enter BOM usage = "1" which is used for changing Production BOM.

4. Enter the valid from date which means that BOM would be valid from that date.

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Click to go to the next screen.

Step 2) In this screen, a list of components along with quantity would be displayed.

1. Click icon to see the BOM header.

In next step, you will see BOM header.

Step 3) In this step, BOM header would be displayed.

1. Display base quantity of product.

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Troubleshooting

• There might be the case wherein component material does not exist. For this, you need
to create the material master for the component material before creating BOM.
• Some users try to create the BOM again for the same Product, system gives warning
message regarding "Alternative BOM2 is being created" and they tend to ignore the
warning message and move forward and hence end up in creating similar alternative
BOM 2 for same product. This unnecessary creates duplicate data.

Work Center in SAP PP: Create, Change, Display

Work center is an organization unit where manufacturing activities are performed.

In other words, Work Centers are the master data which represent real machines, Production
Lines, Assembly Work Center, etc. Manufacturing activity or Operations are carried out at
Work Center.

• Work Centers are used in task list (routing) operations and is copied to production
orders or process orders for the shop floor planning and execution.
• Work Center data is used for

1. Scheduling

When a production order is created, the duration of an operation can be calculated

based on operating times in routing and formulas which are entered in the Work
Center.

2. Costing

The costs of an operation can be calculated in the production Order based on the
formulas which are entered in the Work Center. Work Center is also linked to a cost
center.

3. Capacity Planning

The available capacity and formulas for calculating capacity requirements are stored in
the Work Center.

• Work Centers are used in routing operation data.

• Work Center is created for a manufacturing plant and is identified by a code.
• Group of similar machines can also be created as a single Work Center. For example,
5 similar machines can be created as 1 Work Center with a number of capacities as 5.

In this tutorial- you will learn

• How to Create Work Center

• How to Change Work Center
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 • How to display Work Center

How to create Work Center

Step 1) From SAP Easy access open transaction CR01

1. Enter your manufacturing Plant code where Work Center needs to be created.

2. Enter Work Center code.

3. Enter the Work Center category as "0001" which means Work Center would be
categorized as machines.

After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In this Screen, Work Center basic data would be entered as given below.

1. Input Work Center description.

2. Enter person responsible code for that Work Center.

3. Enter physical location where Work Center is located in the plant.

4. Enter usage as "009" which means Work Center is valid for all task list types such as
production routing, maintenance task list, etc.

5. Enter standard Value key which contains different activity types used for standard cost
calculation.

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Step 3) In this Screen under "Capacities Tab."

1. Enter Capacity category as "001" which represents machine category.

2. Input processing formula as "SAP006" - It is used to calculate the available capacity of

Work Center.

SAP006 =( Operation quantity* machine time )/ base quantity

3. After filling in the capacity category and processing formula, click on

the button:

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It will open another screen.

Step 4) In this Screen under capacities Tab, capacity data will be entered.

1. Enter Capacity description.

2. Enter details about "Input capacity planner group", which is responsible for machine
capacity.

3. Enter factory calendar ID, which has public holidays listed for your plant. So, on
holidays, capacity for that Work Center would be zero.

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 4. Input base unit of measure as "MIN" which means work center available capacity will
be measured in time i.e. min.

5. Enter the time period (start and finish time) for which Work Center would be available
for operation.

6. Enter capacity utilization percentage %( how much time it is utilized out of the standard
available working time) of the Work Center considering the breakdown and preventive
maintenance of the machine. Input number of capacities which means a number of
similar Work Center.

7. Check "relevant for finite scheduling and "long term planning" flags which indicate if
there is a capacity constraint, then the operation is moved to a certain date where it
can be processed without capacity constraints.

After filling in all the fields, click to go back to the Work Center capacity overview.

Then click on the tab "Scheduling" tab from the menu, the system will show the following
screen:

Step 5) In Scheduling Tab,

1. Enter Capacity category as "001" which represents machine category and hence
machine time would be the basis for calculating schedule time in production order.
2. Input processing formula as "SAP002" which is used to calculate scheduling time.

SAP002 = (Operation quantity* machine time)/ base quantity/no. of splits.

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After filling in all the fields, click on the tab "Costing."

Step 6) In Costing Tab

1. Enter Start and Finish date which represents validity date of the cost center.
2. Input cost center to which operational costs would be booked.
3. Input all activity types along with the formulae, which would be used for calculating the
activity costs.

Click button to save the new Work Center. The system will show
message at the lower left corner.

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How to Change Work Center
We require changes in Work Center if the cost center assigned to the work center has been
changed by the finance team. If Work Center available time for production or its utilization %
has been changed, then also we need to make changes in the work center.

Step 1) From SAP Easy access screen, open the transaction CR02.

1. Enter Plant Code.

2. Enter Work Center code which needs to be changed.

After filling in all the fields, click to go to the overview screen of the Work Center. You can
also directly go to the preferred tab by using
the buttons.

Step 2)

1. Change the Cost Center or do any kind of modifications like a change of available time
or utilization % in any of the tabs.

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After finishing all modifications, click to save Work Center. The system will show a
message like at the lower left corner.

How to display Work Center

Step 1) From SAP Easy Access screen open the transaction CR03

1. Enter Plant Code.

2. Enter Work Center code which needs to be displayed.

After filling in all the fields, press enter from the keyboard to go to the overview screen of the
Work Center. You can also directly go to the preferred tab by using
the buttons.

Troubleshooting

• There might be the case where in Cost Center does not exist. For this, you need to create
the cost center and maintain activity type – cost center relationships.

• If you go to the technology tab you will get stuck on selecting a machine type, if so
click to leave the tab.

• Person responsible, capacity planner groups needs to be configured in order to

proceed with Work Center creation.

How to Create/Change/Display Routing in SAP PP

A routing is a description of which operations or list of activities has to be carried out during
the production and planning process.

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It also tells what order or sequence the activities/operations needs to be carried out at work
centers or machines.

• There may be several alternative routings for a product. For example, product can be
manufactured on 2 manually operated machines (drilling and grinding) and
simultaneously manufactured on 1 automatic machine (which has both drilling and
grinding functions). In this case, Material has 2 alternative routings viz, automatic
machine and manual operated machine.
• Multiple materials can follow same routing group which means a group of materials can
have single routing.
• Routing is used in Production for scheduling and costing of operations for finished and
semi-finished materials.
• Routing's are also used in standard cost calculation for finished Product by calculating
operational cost of finished product.
• Before creating the routing, it is mandatory that Work Centre should be available in the
system.

In this tutorial - you will learn

• How to Create Routing

• How to Change Routing
• How to Display Routing

How to Create Routing

Step 1) From SAP Easy access menu, open Transaction code CA01

1. Enter parent material for which routing needs to be created.

2. Enter Plant Code.

3. Enter the Key date (valid from date) which means that routing would be valid from that
date.

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After filling in all the fields, click or press Enter to go to the next screen. "Header Details"

Step 2) In this step, we will maintain routing header data as given below.

1. Enter Usage as "1" which is meant for Production routing and will be used in
Production Order. There are other task listusages which are meant for Plant
maintenance and inspection plan.

2. Enter Status as "4" which is a released status. It indicates that routing is valid for
material requirement planning and costing.

3. Enter Lot Size as "99999999" which means that routing is valid for order quantity
between 0 and 99999999.

4. Press Operation button to add the sequence of operation and follow next step 3.

Some information such as Description, Group Counter and Basic Unit Measure will be
populated by system automatically.

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Click Operation tab and it will open "Operation Overview" screen.

Step 3) In this step, we will maintain operation data.

1. Enter Work Center code at which operation is carried out.

2. Input Control Key which determines whether operation should be scheduled, costed
and if auto goods receipt is possible while doing production confirmation. It is generally
configured depends upon your business process.

3. Input the operation description.

4. Input the base quantity or output quantity of the material which indicates how much
quantity of material would be produced in machine and labor time mentioned at point
no. 5 & 6.

5. Enter set up time in minutes required for the base quantity.

6. Enter Machine time in minutes required for the base quantity.

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Click to save the new routing, system will show
message at the lower left corner.

How to Change Routing

We would change routing if we have replaced old with new work centers or added one more
operation to our manufacturing process. If our machine productivity is increased then we
need to change the machine time or base quantity.

Step 1) From SAP Easy access menu, open Transaction CA02

1. Enter parent material for which routing needs to be changed.

2. Enter Plant Code.

3. Key date (valid from date) which means that routing would be valid from that date is set
to current date automatically.

Step 2) After filling in all the fields,click (right mark sign) from the top menu to go to the next
screen.

1. Change the control key from PP01 (without auto GR indicator) to PP03 (Auto GR
indicator). Auto Goods Receipt means when you do production confirmation, Goods
receipt of material will happen automatically.

2. Change the Machine time.

After finishing all modifications, click to save Routing.

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How to display Routing
To display the routing, we will follow the following steps.

Step 1) From SAP Easy access screen open in transaction CA03

1. Enter parent material for which routing needs to be displayed.

2. Enter Plant Code.

3. Key date (valid from date) which means that routing would be valid from that date is set
to current date automatically.

After filling in all the fields, click sign from top menu to go to the next screen and display the
routing.

Step 2) In this screen we will see, how the operation data of routing is displayed.
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 1. The screen will display the operation data of routing like – operation carried out by the
work center, base quantity (100 EA), set up time (10 minutes) and machine time (35
minutes.)

Troubleshooting

• There might be the case wherein material master record does not exist. For this, you
need to create the material master for the material before creating routing.
• Some users might get error "work center does not exist". In this case, work center should
be created beforehand.

How to Create Production version in SAP PP C223

The production version is the link between a product BOM (Bill of Material) and the process
Routing. It determines which alternative BOM is used together with which routing to produce
a material or plan a material.

There may be different production versions based on the lot sizes and validity dates.

For example, there may be different versions if you want to produce 1 – 100 liter of paint than
100 – 1000 liter of paint, as such the different composition of BOM may be required in both
cases.

• It comprises of the following data:

1. The assignment of routings to the production version

2. The assignment of the alternative BOM to the production version

• Production versions are used in material requirements planning (MRP), production

order creation, and product costing to select the most suitable routing and the
corresponding bill of material.

In order to create production version, perform the following steps-

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Step 1) From SAP Easy access screen open transaction C223

1. Enter Plant Code.

2. Enter parent material for which production version needs to be created.

3. Enter Material code.

4. Input the production version code and text.

5. Input the validity dates of the production version.

6. Input the lot size range where it would be valid.

7. Input Alternative BOM and BOM usage as "1" for production BOM.

8. Enter Routing Group and Counter.

9. Enter type of task list, i.e., routing.

After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In this screen,

1. Select the line of the newly created production version.

2. Press "consistency check" to check whether BOM and routing are valid.

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Step 3) In this screen, you can see the messages regarding the validity of BOM and routing
for the material.

1. Check whether task list routing exists in the validity period (01.01.2015 – 31.12.9999)
and lot sizes (0 – 99999999) of the production version.

2. Check whether BOM exists in the validity period (01.01.2015 – 31.12.9999) and lot
sizes (0 – 9999999999999) of the production version.

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Click or press F3 from the keyboard to the previous screen.

Step 4) In this screen, you can see the test status is indicated by green color.

1. You can see the consistency check status in green color.

Click to save the new version, the system will show message " Production version saved"
at the lower left corner.

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Troubleshooting

• There might be the case where in BOM and Routing are not valid in production version
validity time frame. Ensure that validity period of production falls between validity period
for both BOM and Routing.

SAP Demand Management : MD61, MD62, MD04, MD74, MD75

What is Planned Independent Requirement(PIR)?

Planned Independent Requirements (PIR) are used to perform Demand Management
functions.

A Planned Independent Requirement contains one planned quantity and one date for a
material, or one planned quantity split over time according to dates.

• PIR version "00" has an active indicator, which specifies that requirements would be
considered in Material Requirement Planning (MRP).
• If you want to maintain a number of versions of planned independent requirements, but
do not want to include all versions in the material requirement planning run, you can
set some versions to active and others to inactive, which could be used for simulations
in Long Term Planning.

• PIR's are associated with requirement type which is driven from planning strategies in
the material master, which determines methods of planning – Make to Stock or Make
to Order.
• PIR's are displayed in stock requirement list so that Planner can see and plan the
production based on it.
• PIR's are generally used in Make to stock environment where business wants to build
the stock based on the forecast and not on sales orders.

Impact of Planning Strategies

• Planning strategies are broadly categorized into Make to Stock (MTS) and Make to
Order (MTO).

Make to Stock

• Make-to-stock production is implemented if you produce stock without waiting for sales
orders to arrive because you want to deliver your customers immediately with materials
from that stock later on. You might even want to build stock without having sales
orders, if you predict that there might be customer demand in the near future.
• Make-to-stock strategies are usually associated with a lot-size key or a rounding value.
For example, you may want to produce the entire amount for the whole month once in
a month only, or you may want to produce for the exact PIR quantity.

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 • In Planning Strategy 10, only PIR quantity is considered for MRP run and sales orders
are completely ignored. PIR is reduced when you deliver the stock to the customer.
PIR has requirement type LSF.
• In Planning Strategy 40, Max of 2 (PIR and sales orders) are considered for MRP and
PIR is reduced as soon as sales orders are entered. PIR has requirement type VSF.

Make to Order

• You do not want to produce finished products until you receive a sales order from the
customer.
• PIR are not considered in MTO, and only sales orders are considered in MRP.
• You produce sales order stock and can deliver to the specific customer only unlike in
MTS scenario.
• Planning strategy (20) is widely used for make to order process and strategy 25 is used
for MTO with variant where customer asks for variants in products.

In this tutorial- you will learn

• How to create Planned Independent Requirement (PIR)

• How to change PIR
• How to display Stock/Requirement List
• How to delete PIR data

How to Create Planned Independent Requirement (PIR)

Step 1) From SAP Easy access screen open transaction MD61

1. Enter single material or Reqmts plan (for multiple materials) for which demand needs
to be created.

2. Enter MRP area and Plant Code "INA2".

3. Enter version as "00", which is active version and requirements would be considered in
MRP run.

4. Enter the Planning horizon dates for which demand needs to be created.

5. Enter planning period as month M.

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After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In this Screen we are going to enter the requirement quantity in monthly buckets,

1. Version "00" and Active check box flagged would come as default which means it is an
active requirement and would be considered in MRP run.

2. Enter the requirement quantity in monthly buckets

Click to save after filling all data, the system will show message .

• If you want to delete the demand of one material, click of the row and click the
delete button .

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How to Change PIR
Step 1) From SAP Easy access screen open transaction MD62

1. Enter parent material for which PIR needs to be changed.

2. Enter Plant Code.

3. Enter version as "00".

4. Input the planning horizon dates with planning period as month M.

Step 2) After filling in all the fields, click to go to the next screen.

1. Change the requirement quantity to 900 as shown below.

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After finishing all modifications, click to save PIR. The system will show a message
like changed at the lower left corner.

How to display Stock/Requirement List

Step 1) From SAP Easy access screen open transaction MD04

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 1. Enter material for which stock/requirement list needs to be displayed.
2. Enter Plant Code.

Step 2) After filling in all the fields, click to go to the next screen and Stock/requirement list
displayed.

1. Display stock/requirements list of the material, where you can see PIR (requirement
type VSF driven from planning strategy 40 in material master MRP3 view ) quantity of
1000 EA reduced to 939 by sales orders.

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How to delete PIR data
Step 1) From SAP Easy access screen open transaction MD74/MD75

1. Enter Plant code

2. Enter Key date before which you need to delete whole PIR data of the plant if no
material is selected in the screen.

3. Flag Record history, delete inactive version and create list check box.

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Click execute button to run the report and move to next screen.

Step 2) In next screen, you will see the messages regarding deletion of PIR.

1. Check the messages regarding deletion of PIR.

Troubleshooting

• There might be the case wherein material master record does not exist. For this, you
need to create the material master for the material before creating PIR.
• Ensure right planning strategy is in place in material master which drives the requirement
type of PIR and based on that PIR is considered in MRP run.

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SAP MRP (Material Requirement Planning) : MD01, MD02, MD04
The main function of MRP is to guarantee material availability on time.

MRP is required to procure or produce the required quantities on time for in- house purpose
or for fulfilling customer demand.

The main objective is to plan the supply based on requirements and considering the current
stock in hand and meets the shortages.

In this tutorial- you will learn

• MRP Process flow

• Master Production Schedule (MPS)
• MRP Planning Parameters
• How to run MRP for all Products
• How to run MRP for single material
• How to run Master Production schedule (MPS)
• How to do MRP evaluation - Stock/Requirement List

MRP Process flow

• With MRP, inventory can be optimized via planning receipts according to the needs so
that surplus inventory could be avoided.
• Sales and distribution give concrete customer requirements from the market.
• In Demand Management, sales are planned in advance via a sales forecast. The sales
forecast is entered in demand management in the form of Planned Independent
Requirement (PIR), i.e., the requirement for the finished product.
• In order to cover these requirements, MRP does net requirement calculation and plans
procurement quantities and dates on which the material needs to be procured or
produced.
• If a material is produced in-house, the system explodes the BOM and calculates the
dependent requirements, that is, the quantity of components required to produce the
finished product.
• If a material shortage exists, planned orders are created at every BOM level to fulfill the
requirements and purchase requisitions are generated for externally procured raw
materials. You can also create planned orders for externally procured materials which
can be converted to purchase requisition.
• MRP does lead time scheduling and calculates planned order dates based on routing
times. Basically, it does backward scheduling starting from requirement date minus
(GR processing times, in-house production time, float time before production ) and
calculates the duration of planned orders.
• Production orders or Purchase orders are created after conversion of planned orders
and purchase requisition respectively.
• MRP type "PD" in material master MRP 1 view is essential to run the MRP for the
materials. If, you don't want to run MRP on the material then MRP type "ND" can be
maintained in the material master.
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Master Production Schedule (MPS)
It is used specifically for critical materials usually high valued products where you do not want
changes in your production plan within planning time fence in next MPS run, and production
plan gets firmed automatically as soon as it comes within planning time fence unlike MRP
run.

• A separate run occurs for the MPS items; they are not included in the MRP run.

• Basically, it ensures the availability of the critical resources, which should not hamper
the production by maintaining the stock.

• Planning time fence (number of days starting from current date) is useful in case of
MPS scenario where one can save the procurement proposals (planned orders) from
undergoing any change since the last MRP run.

• No automatic changes happen to the procurement proposals once they enter in the
planning time fence (PTF is maintained in material master). So, all planned orders in
planning time fence get automatically firmed by the system.

• MRP type " P0" to "P3" in material master should be maintained to run MPS for
materials.

MRP Planning Parameters

MRP parameters are required for MRP run in terms of considering the requirements (PIR) in
planning horizon, scheduling parameters and about the usage of BOM and routing data.

1. Processing Key

1. Net change (NETCH): In this run, the system considers those materials in the planning
run from their last MRP run which have undergone some changes pertaining to
receipts and issues or any stock changes.
2. Net Change in Planning Horizon (NETPL): In this run, the system considers those
materials in the planning run from their last MRP run which have undergone some
changes pertaining to receipts and issues or any stock changes. It considers the
requirements in a pre-defined planning horizon, unlike NETCH key which considers the
total futuristic requirements.
3. Regenerative Planning (NEUPL): It plans all the materials for the MRP Run irrespective
of the changes they undergo. This plan is not so widely used. It takes a long time to
obtain the final result.

2. Planning Mode

1. Adapt planning data: It only processes the changed data.

2. Re explodes BOM and Routing: Read BOM and routing data again for the existing
orders.
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 3. Delete and recreate planning data: It completely deletes the planning data (all receipts)
and creates again.

3. Scheduling

1. Basic Scheduling: MRP calculates only basic dates for the orders and in house
production time for the material master is used.
2. Lead Time Scheduling: The production dates are determined by the lead time
scheduling for planned orders. The routings are read to schedule and calculate the
capacity requirements on work centers.

How to run MRP for all Products

Step 1) From SAP easy access screen, open transaction MD01, we will run MRP at Plant
level.

1. Enter your manufacturing Plant for which you want to take MRP run.

2. Enter Processing key as "NETCH" ( Net change in total horizon)

3. Input "1" in Create Purchase req. Which means for externally procured materials, MRP
will generate purchase requisitions instead of planned orders.

4. Enter "3" for schedule lines which means MRP will generate schedule lines for raw
materials having scheduling agreement.

5. Enter "1" in MRP List and system will create MRP list similar to stock /requirement list
for later analysis of previous MRP run.

6. Enter Planning mode "3" as we will delete and recreate all planning data for all
materials.

7. Enter Scheduling indicator "2" which means MRP will do lead time scheduling and
consider routing times to calculate planned order dates.

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After filling in all the fields, click to go to the next screen.

Press enter to ignore this message.

The system asks you nicely to re-check your input parameter because the MRP run is going
to reschedule and overwrite all existing data. Are you sure??? If so, press enter.

Are you really, really sure that you want to continue??? If so, then again press enter.

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Step 2) System will take some time to calculate the material requirement.

1. After the calculation is done, a report will appear. Here, it is possible to see how many
materials were planned and on what parameters were given during the run.

MRP Run for single material

Step 1) In Transaction MD02, we will run MRP for a single material.

1. Input the material code for which you want to run MRP.

2. Enter your manufacturing Plant code for which you want to take MRP run.

3. Enter Processing key as "NETCH" ( Net change in total horizon)

4. Input "1" in Create Purchase req which means for externally procured materials, MRP
will generate purchase requisitions instead of planned orders.

5. Enter "3" for schedule lines which means MRP will generate schedule lines for raw
materials having scheduling agreement.

6. Enter "1" in MRP List and system will create MRP list similar to stock /requirement list
for later analysis of previous MRP run.

7. Enter Planning mode "3" as we will delete and recreate all planning data for all
materials.

8. Enter Scheduling indicator "2" which means MRP will do lead time scheduling and
consider routing times to calculate planned order dates.

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After filling in all the fields, click to go to the next screen.

The system asks you nicely to re-check your input parameter because the MRP run is going
to reschedule and overwrite all existing data. Are you sure??? If so, press enter.

Are you 100% sure that you really want to continue??? If so, then again press enter.

Step 2) System will take some time to calculate the material requirement.

1. After the calculation is done, a report will appear. Here, you can see how many
materials were planned.

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Note: As there are 22 materials available in the plant, so only these 22 materials were
planned.

Master Production schedule (MPS) run

Step 1) In Transaction MD43, we will run MPS for a single material.

1. Input the material for which you want to run MPS. Here we have taken ID "13967476".

2. Enter your manufacturing Plant "INA2" for which you want to take MPS run.

3. Enter Processing key as "NETCH" ( Net change in total horizon)

4. Input "1" in Create Purchase req. Which means for externally procured materials, MPS
will generate purchase requisitions instead of planned orders.

5. Enter "3" for schedule lines which means MPS will generate schedule lines for raw
materials having scheduling agreement.

6. Enter "1" in MRP List and system will create MRP list similar to stock /requirement list
for later analysis of previous MPS run.

7. Enter Planning mode "3" as we will delete and recreate all planning data for all
materials.

8. Enter Scheduling indicator "2" which means MRP will do lead time scheduling and
consider routing times to calculate planned order dates.
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Click to next screen after filling all the fields, the system will show message
, click again, if everything is O.K.

Step 2) In this step, we are going to generate the interactive planning data by which
simultaneously you can see the planning results.

1. Press "Planning" button which will generate planned orders for the shortage quantity.

2. Check the planned orders generated.

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MRP evaluation - Stock/Requirement List
In this list, you will see the requirements, current stock and planned receipts, i.e., orders for
the material.

Step 1) From SAP easy access screen, open transaction MD04

1. Enter material for which stock/requirement list needs to be displayed.

2. Enter Plant Code.

Step 2) After entering information in all the fields, click to go to the next screen, and
Stock/requirement list displayed.

1. Display stock/requirements list of the material is generated, where you can see

• BOM for material D13967476 was exploded and

• Purchase requisition of 50 (fixed lot size 50 maintained in material master code
A01232589) was generated against the net requirement of – 41.606.

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Troubleshooting

• There might be the case wherein material master record does not exist. For this, you
need to create the material master for the material before running MPS/MRP.
• Ensure BOM and routing data is in place before running MRP to generate procurement
proposals based on requirements at all BOM levels otherwise, planned orders would be
generated without BOM and hence would create issues in further consumption process.

Long Term Planning (LTP) in SAP PP: MS31, MS02, MD61

Long term planning (Simulative MRP) is used to simulate the future demand and supply
situation in all BOM levels. The main function is to check the capacity situation, material
requirement and vendor ability to provide the material in desired time.

This is not an actual run but a simulative run where actual planning situation is not being
affected, and we can see the capacity situation of the work centers well ahead in time. If such
information is available in advance, then we can decide at an early date whether additional
machines will be required to cope with capacity bottlenecks.

• LTP (Long Term Planning) is nothing but MRP run in simulation version to simulate the
production plan for the future.

• It is possible to transfer the plan from simulative version to operative version

"00"(actual planning) if through simulation it is found that all capacity and requirement
can be fulfilled.

• The purchasing department can also utilize the outcome of long-term planning. They
use the information on the future requirement quantities to estimate future purchase
orders. This provides them with an opportunity to negotiate delivery schedules and
contracts with vendors.

• Vendors also have an advantage from long-term planning results as they are sent a
preview of future estimated purchase orders and delivery schedules.

• Generally, Planned Independent Requirement (PIR) version can be either active or

inactive. For LTP planned independent version should be inactive as it is a simulative
version. Only active PIR version is being taken for operative planning (MRP).

• Existing master data can be used for LTP. But to have a different master data (BOM and
Routing) for LTP is also possible.

• If you want to delete the Long-term planning data, then you need to delete the planning
scenario and you can re-run whole cycle again with new requirement again in another
inactive version.

• Long term planning data can also be utilized to transfer routing activity quantities to the
respective cost centers. Controlling department can calculate activity price calculation
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 by dividing the cost center budget value and activity quantity (calculated by LTP run)
which is used for standard cost calculation.

In this tutorial- you will learn

• How to Create Inactive version of Independent requirement (PIR)

• How to Create Planning Scenario
• How to run Long Term Planning
• How to Check Stock/requirement list
• How to check Capacity situation
• How to analyze Simulative Purchase info system

How to Create Inactive version of Independent requirement (PIR)

Step 1) From SAP easy access, open Transaction MD61

1. Enter material code for which requirement needs to be created

2. Enter Plant Code.

3. Enter version as "02" which is inactive version and requirements would be considered
in Long Term planning run and not MRP.

4. Enter the Planning horizon dates for which demand needs to be created.

5. Enter planning period as month M.

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After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In this screen, we will input the requirement quantity of the material in monthly
buckets.

1. Version "02" and Active check box is unflagged which means it is an inactive/simulative
requirement and would be considered in LTP run only.

2. Enter the requirement quantity in monthly buckets.

Click to save after fill all the data, the system will show message .

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How to Create Planning Scenario
Planning scenario creation is required for Long term planning run. Annual simulative
requirements in the form of PIR are assigned to the planning scenario.BOM selection ID is
assigned to the scenario for selection of relevant BOM in LTP run. We can also include or
exclude current stock , existing planned receipts from LTP run.

Step 1) From SAP easy access screen open Transaction MS31

1. Enter Planning scenario (numeric or alphanumeric of your choice) and give the
description of the scenario.

Press enter on the keyboard to move to next screen.

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Step 2) In this screen,

1. Enter planning periods for which LTP run needs to take place.

2. Keep Opening stock as blank which means the current stock will not be considered in
LTP run.

3. BOM selection id "01" means active BOM will be exploded in LTP run.

Step 3) In the same screen,

1. Press "planned Independent requirement" button on top, a small pop-up window will
appear.
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 2. In the small pop up screen, enter version "02" and planning periods.

Step 4) In the same screen,

1. Press "Plants" button on top and a small pop-up screen appears.

2. Enter your manufacturing Plant code.

3. Press button "confirm", after verifying all the details

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Step 5) In the same screen,

1. Press "Release+save" button and planning file entries will be generated.

2. Click "yes" in the pop-up window to release the scenario.

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On clicking yes button, system will ask you to create planning file entries in online mode or
background mode.

Step 6) In this screen,

1. Planning file entries are generated. Click on button "immediately" to generate the
entries.

Messages will be generated regarding planning file entries which means system has
identified number of materials relevant for Long term planning run.

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You can close this screen or can move back to easy access screen.

How to run Long Term Planning (LTP)

Step 1) In Transaction MS02, we will take LTP run.

1. Enter your planning scenario.

2. Enter the material code.

3. Enter your manufacturing Plant code for which you want to take MRP run.

4. Enter Processing key as "NETCH" ( Net change in total horizon)

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 5. Enter "1" in MRP List and system will create MRP list similar to stock /requirement list
for later analysis of previous MRP run.

6. Enter Planning mode "1" as we will take LTP run.

7. Enter Scheduling indicator "2" which means LTP will do lead time scheduling and
consider routing times to calculate the duration of simulative planned order.

8. Enter "1" to use settings from planning scenario i.e. firmed receipts will not be
considered in LTP run.

Press 2 times enter from keyboard to run the LTP. System will take some time to run LTP and
will throw messages regarding planning.

Step 2) In this screen,

1. Check the messages regarding number of procurement proposals created.

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How to Check Stock/requirement list
This list will show you the requirement (inactive PIR) and receipt elements like simulative
planned orders for the planning scenario. This list will show all simulative data and not the
real time operative data.

Step 1) In Transaction MS04

1. Enter Planning scenario.

2. Enter material code.

3. Enter Plant code

Press enter to move to next screen.

Step 2) In this screen,

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 1. Check whether the planned orders got generated against the PIR and check the
rescheduling dates in the planned orders. These are all simulative planned orders and
nothing to do with real time data.

How to check capacity situation

Step 1) From SAP easy access, open transaction CM38 to check the capacity requirement at
the work center ie. Work center will be loaded with simulative planned orders which has
resulted in capacity requirements in terms of time.

1. Enter planning scenario.

2. Enter plant code.

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Capacity Requirement Planning in SAP PP: CM01, CM21
The main function of capacity planning is to check the load at Work Center and do the
capacity leveling i.e. balance the load at Work Center. It helps to calculate the production
capacity based on the requirement of the product against the available capacity of the work
center.

• MRP works with infinite capacity and creates planned orders at the Work Center at the
same time since it assumes that Work Center is available all the time. So, it creates
planned orders on the same date based on the requirements despite capacity
shortages. You can execute those orders on that Work Center in the system which is
not practically feasible in the shop floor.
• The main objective of the capacity leveling includes leveling overloads at Work Center
and to achieve optimum utilization of Work Centers.
• MRP generated planned orders are converted to production orders which determine
which Work Center is to be used, and accordingly the capacity requirements are
generated on that Work Center.
• Capacity leveling at production order level is used for detailed production planning
purpose. This is done through planning table which is used to carry detailed planning of
capacity requirements over time in future.
• The capacity load needs to be checked at Work Center, and if it is overloaded, then we
need to shift the orders ahead to the same Work Center or plan it in different Work
Center to eliminate any capacity constraints.

In this tutorial- you will learn,

• How to check capacity loads

• How to do capacity leveling

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How to check capacity loads
Capacity evaluation is used to analyze the load at Work Center, and you can see the load %
(in step 2), available capacities and the requirements. You can also see the orders which
have generated capacity requirements.

Step 1) From SAP easy access screen, open transaction CM01.

1. Enter your manufacturing Plant for which you want to check capacity load.

After filling in all the fields, click to go to the next screen.

Step 2) In this screen, the capacity situation at Work Center can be seen.

1. Check the capacity requirement (generated from production orders), available capacity
(determined from Work Center master data) and capacity load % at the Work Center.

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How to do Capacity leveling
Capacity leveling is done through planning table, and you need to dispatch the orders to the
Work Center in the sequence in which they are supposed to be processed at shop floor.

Step 1) From SAP easy access screen, open Transaction CM21

1. Input the plant for which you want to level capacity

After filling in all the fields, click execute button on top to go to the next screen.

Step 2) In this screen, you can see orders pool at the bottom and Work Center pool at the
upper half of the screen in the planning table.

1. Check the several orders in the orders pool.

2. Check the list of Work Centers in Work Centers pool.

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Step 3) In the same screen of planning table, select the data as given below.

1. Select one order from orders pool.

2. Click on dispatch button to assign that order to the Work Center.

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Step 4) In the same screen,

1. Check the dispatched order in the Work Center pool. Similarly, you can dispatch the
others orders to the Work Center pool which would shift adjacent to the previously
dispatched orders.

This is how you can do the capacity leveling.

Troubleshooting

• Ensure that right control key with "capacity requirement" indicator is placed in operation
data in routing.
• Ensure that in the capacity tab of the Work Center, "finite scheduling" indicator in flagged.

Goods Movement against Production Order in SAP PP: MIGO

There are two types of goods movement against production order which impacts the
inventory of the material. These movements are done through movement types in SAP.

• Goods Receipt (GR) against Order is executed with movement type 101 which is done
when we produce the material. After goods receipt, the system increases the stock of
the material at the relevant storage location.

• Goods Issue (GI) against Order is executed with movement type 261 which is done
whenever we consume the component materials to produce some other material. After
goods issue, the system decreases the inventory of the components at the relevant
storage location.

In this tutorial- you will learn

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 • How to Create Goods receipt (GR) against Order
• How to create Goods issue (GI) against order

Lets begin-

How to Create Goods receipt (GR) against Order

Step 1) From SAP Easy access screen open transaction MIGO

1. Select Goods Receipt as you are going to do goods receipt.

2. Select Order as you are doing goods receipt against production order.

3. Enter your Production order number.

After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In this Screen

1. Check movement type "101" which is relevant for GR against Order.

2. If the material is subject to quality inspection, then you will see the stock type as
"quality inspection".

3. If the material is handled in batches, then enter the batch number in which inventory
will be updated.

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Step 3) In the same screen,

1. Enter the date of manufacture, i.e., the date when the material was produced.

2. Check flag of "Item Ok ".

3. Click "check" button on top and you will see the message at the bottom of the screen.

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Click to save the document. The system will show a message

like .

How to create goods issue (GI) against order

Step 1) From SAP Easy access screen open transaction MIGO

1. Select "Goods Issue" in the first box.

2. Select "Order" in the second box which means we will do GI against Order.

3. Enter the production order.

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After filling in all the fields, click to go to the next screen

Step 2) In this screen,

1. You can see the list of components automatically fetched from the Order along with
required quantity. You can change the quantity as per the actual consumption.

Step 3)In the same screen,

1. Check flag of "Item Ok ".

2. Click "check" button on top and you will see the message at the bottom of the screen.

3. You can see the green color status which indicates that document is OK for posting.

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Click to save the document. The system will show a message like

Troubleshooting

• For manual goods issue, the material master should not have any back flush indicator
which means we will do manual goods issue rather automatic goods issue during
confirmation.

• For manual goods receipt, routing operation data should have control key without auto
GR flag, which means we will do manual goods receipt rather automatic goods receipt
during confirmation.

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Production Order in SAP: CO01, MD16, CO02, CO15
A production order defines which material is to be processed, at which location, and at what
time and how much quantity is required. It also defines which components and sequence of
operations are to be used and how the order costs are to be settled.

• Planned orders are results of running MRP. Shortages of materials that are set to
internal procurement will create planned orders, which can be converted into
production orders. Production orders are "hard copies"; they cannot be adjusted by an
MRP run anymore.

• BOM and routing data of the materials are copied into the production order which
determines the list of components and operational data in the order.

• Planned Costs also gets updated in the production order via component price and
routing activity price.

• You can run an availability check on production orders which determines any missing
components in the order so that you can bring that missing component for the order
execution at shop floor.

• You can print the production order for shop floor which indicates the list of components
to be consumed and what kind of operations to be performed in sequence at the work
center.

• After you have physically produced the material, you can declare the production
through order confirmation which updates the activities cost such as machine running
price, labor price on the order.

• You can decide to automatically do the backflush (consumption) of components during

order confirmation according to the BOM. The consumption will reduce the inventory of
components and it is carried out with movement type 261 in SAP.

• You can also post goods receipt of the material automatically during order
confirmation. Goods receipt would increase the inventory of the material, and it is
carried out with movement type 101 in SAP.

• After Order Confirmation, all the cost such as the cost of components and activity cost
will be debited on the order, and once you post goods receipt, costs will be credited on
the order.

• Once, production order is fully confirmed and delivered, or business has decided not to
execute that order, then it needs to be technically closed which means order will no
longer be considered in MRP run and will be deleted from stock/requirement list. Order
reservation on components will also be deleted.

In this tutorial- you will learn

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 • How to Create and release Production Order
• How to Create Production Order by converting planned order
• How to Change Production Order
• How to confirm production order
• How to TECO (technically complete) production order

How to Create and release Production Order

Production Order creation is required to produce the material and consume the components
which are used, and it also specifies the sequence of operations to be performed at the work
center.

The release of order signifies that the order is ready to be executed at the shop floor. You can
do an automatic release of order also during creation mode by using relevant production
scheduling profile in the material master with auto release indicator set.

Step 1) From SAP Easy access screen open transaction CO01

1. Enter the material code for which production order needs to be created.

2. Enter Plant Code.

After filling in all the fields, click or press Enter to go to the next screen.

Step 2) In this Screen

1. Input the order quantity.

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 2. Select the option"current date" in scheduling sub-screen.

After filling the entire fields press click to confirm, the system will then copy BOM and
Routing data in the order.

Step 3) In the same screen,

1. Click to release the order. The following message will appear in the bottom left corner:
.

2. Click to check material availability. The system will show the message regarding
the availability of components.

Note: You can also decide not to release the order if there are missing parts found in
availability checks.

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Click button to save, the following message will show in the bottom left
corner: .

How to Create Production Order by converting Planned Order

Planned orders are the result of MRP run and should be converted to production order for
further execution process.

You cannot directly declare production using planned orders and, therefore, it needs to be
converted to Production Order.

Once, planned order is converted to production order, planned order gets deleted from the
system and is no longer available to be considered in MRP (Material Requirement Planning).

Step 1) From SAP Easy access screen open transaction MD16

1. Select radio button "MRP controller" from the list, which is a group of materials.

2. Press right mark sign on top or press enter from your keyboard.

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The system will show the screen as below.

Step 2) In this screen, we will fetch the planned orders based on MRP controller and
selection dates.

1. Enter plant code.

2. Enter MRP controller

3. Enter end selection date till all planned orders will be extracted.

Click right mark sign from the bottom or enter from the keyboard to move to the next screen.

Step 3)In this screen,

1. Select the grid for which you want to convert the planned orders

2. Press "convert to production order" button for the conversion.

Production orders will be created after conversion of planned orders.

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How to Change Production Order
You might require to change production order incase if your business wants to change some
planning quantity or if BOM/Routing has been changed after the order has already been
created.

Step 1) From SAP Easy access screen open transaction CO02

1. Enter production order number which you want to modify.

In the same window you can see "Display Overview" button is selected, it is selected by
default.

After filling in all the fields, click to go to the next screen.

Step 2) In this screen, the order will be modified.

1. Change the Order quantity to 9000 or whatever your requirement is as shown below.

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After finishing all modifications, click button to save the order. The system will show a
message like Order number saved 6600000887 at the lower left corner.

How to confirm production order

Step 1) From SAP Easy access screen open transaction CO15, three activities occur at the
same time with confirmation.

1. Generate confirmation document

2. Consume raw materials or semi-finished goods

3. Good receipt of finished goods or semi-finished goods

1. Enter Production order number

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After filling in all the fields, click to go to the next screen

Step 2) In this screen, we will enter the actual yield quantity to be confirmed.

1. Enter the yield quantity which is the produced quantity you want to declare

2. Press Goods Movement button at the top to check the automatic goods movement
happening along with confirmation

Step 3) In this screen, you will see the goods receipt of parent material and goods issue of
components.

If the control key of the last operation in the order specifies automatic goods receipt, the
system automatically posts the produced material to unrestricted stock.

Automatic goods receipt can also be activated by the production scheduling profile in the
material masterwork scheduling view.

If you confirm an order with components that have the Backflushing indicator set in the
material master MRP1 view, the system automatically posts a goods issue (GI) for these
components.

1. Auto Goods receipt (GR), production of material carried out using movement type 101.

2. Auto Goods issue (GI), consumption of components carried out using movement type
261.

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Click button to save.

The system will show a message like at the lower

left corner, to hint how many goods movement are posted successfully or failure.

Failed goods movements due to a deficit of stock for consumption are reprocessed manually.

How to TECO (technically complete) production order

Technical completion of the order is required when production order is either fully delivered,
or it is not to be processed further at shop floor.

After technical completion order status changes to TECO, no further goods movement can be
done against the order.

Order is no longer available in MRP run and gets deleted from stock/requirement list.

The controlling department can then carry out the variance calculation on the production
Order after TECO status.

Step 1) From SAP easy access, open transaction CO02

1. Enter the order number which you want to TECO.

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Click to next screen after filling all fields,

Step 2) In this screen, we will see how to place production order to TECO status,

1. Click in menu Function-> Restrict processing ->complete technically System will show
message in status- TECO

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2. System will show message in status- TECO

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Troubleshooting

• BOM and Routing must exist before creation of production order else it will not be copied
into the production order and can cause issues in planned costs updation and
consumption of components during confirmation process thereby impacting the
inventory of the components.

• Production order must be released before doing order confirmation as the released
status of the order allows confirmation to happen.

• If you receive any Accounting error during goods movement in the confirmation process,
then ensure the right valuation class is set in the material master Accounting view or
contact Finance team.

• Ensure that standard cost for the material is updated to avoid any costing related errors
such as activity price missing etc. during production order confirmation.

• If some goods movement gets failed during confirmation process due to the stock deficit,
then you should process them separately once components are brought to stock.

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SAP PP Reports Tutorial: COOIS, MB52, CS15, CS12
There are many reports available in SAP pertaining to Master Data, Production Orders and
Goods Movement against orders.

• It helps users to view the overall situation of the plant with ease

• Through PP reports, you can view Production and Consumption data about the
material for the specific time period. Current Plant stock can also be displayed real time

• You can also see target order quantity to be executed and track the orders through
various order status via standard SAP reports

In this tutorial - you will learn,

• How to display order information systems

• How to display material document list
• How to display Stock of multiple materials
• How to display "where-used list" in BOM
• How to display summarized multi-level BOM

How to display order information systems

This order info system displays the list of orders along with the quantity, dates, and their
status. You can also see the goods movement on the orders.

This gives view for the shop floor person to plan and execute the orders which are on priority,
and you can see the actual delivered quantity against the plan.

Step 1) From SAP Easy access screen open transaction COOIS

1. Select the option "Order Headers" in the List field

2. Flag production orders checkbox

3. Enter your manufacturing plant code.

4. Enter your Order type for which you want to fetch the Production Orders.If you don't
enter any order type, the report will show the data for all orders type for the plant.

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After filling in all the fields, click execute button on top or press F8 from keyboard to go to the
next screen.

Step 2) In this Screen, you are going to see the list of Orders.

1. List of orders with material code and target quantity are displayed.

2. Order basic start and finish dates are displayed for the planner.

3. Order status are shown by which you can identify whether the order is delivered or yet
to be executed at shop floor.

Press back button in order to exit from the report.

Step 3)In the Initial screen of Production Order information system( COOIS), you can also
view the goods movement which has occurred against that order.

1. Select "Documented goods movement " from the List field

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 2. Check flag of "Production Orders "

3. Enter your production plant code

4. Enter your Production Order type for which you want to display the documented goods
movement. If you don't enter any order type, the report will show the data for all orders
type for the plant.

Click execute button from the top or press F8 from the keyboard to run the report.

When you run the report, it will open another screen where goods movement are displayed.

Step 4)In this screen, documented goods movement against order are displayed.

1. List of Orders along with parent material and its component material are displayed.

2. You can see the movement type 261 and 101 which occurred against the order along
with the batch number.

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Press back button in order to exit from the report.

How to display material document list

Material Document is generated whenever you do any kind of goods movement such as
goods receipt, goods issue against production order, etc.

We can view the list of the material document which specifies the production and
consumption of data for a plant.

Step 1) From SAP easy access screen, open transaction MB51.

1. Enter your manufacturing plant code.

2. Input the movement type 101 if you want to see Production data (Goods Receipt) for all
materials.

3. Enter the posting periods for which you want to display the production.

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Press execute button on top or press f8 from the keyboard to move to the next screen.

Step 2)In this screen, you will see the production data of all materials.

1. List of material codes along with movement type 101 displayed.

2. Movement quantity is displayed along with the posting date.

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Press F3 from the keyboard to exit the report.Now, we go back to SAP easy access screen to
run other transaction.

Step 3) From SAP easy access screen, open transaction MB51.

1. Enter your manufacturing plant code.

2. Input the movement type 261 to see consumption data (Goods issue) for all the
materials.

3. Enter the posting periods for which you want to display the consumption.

Press execute button on top or press f8 from the keyboard to move to next screen.

Step 2) In this screen, you will see the consumption data for all materials.

1. List of material codes along with movement type 261is displayed.

2. Movement quantity is displayed along with the posting date.

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Press F3 from the keyboard to exit the report.

How to display Stock of multiple materials

After all goods movement are done, it updates the stock of the materials.Real time stock is
available in this report for multiple materials at a single shot.

Step 1) From SAP easy access screen, open transaction MB52.

1. Input single material code or range of material codes or keep it blank to pull the report
for all materials.

2. Enter your manufacturing plant code.

3. Input storage location code or keep it blank to pull the report at plant level for all storage
locations.

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Press execute button from top or press F8 from the keyboard to move to next screen.

Step 2) In this screen, you will see the stock of all materials.

1. List of material codes along with stock quantity and value at the storage location is
displayed.

Press F3 from the keyboard to exit the report.

How to display "where-used list" in BOM

This report is used to find out whether a component exists in the BOM's. With this report, you
can find out the parent material in which a component is used as BOM item.

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It is basically reverse BOM explosion which means through component child code, you can
find out the parent material code. For example Component like Tread is used as an item in
BOM of Tyres.

Step 1) From SAP easy access screen, open transaction CS15.

1. Input single material code for which you want to see the parent material.

2. Flag "Direct" check box.

3. Flag "Material BOM" as you are looking the component up in material BOM.

4. Press Next button to move to next screen.

Step 2) In this screen,

1. Enter required quantity as "1".

2. Input your manufacturing plant.

3. Flag "Multi-level" which means you want to see all upper BOM levels for the
component.

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Press execute button on top or press F8 from the keyboard to move to next screen.

Step 3)In this screen,

1. You can see the different levels of BOM in which this component exists

2. You can see the parent material in which the component exists.

Press F3 from the keyboard to exit the report.

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How to display summarized multi-level BOM
This report is used to explode multi-level BOM for the product. With this report, you can see
all the components at all BOM levels in a single screen.

Step 1) From SAP easy access screen, open transaction CS12.

1. Input single material code for which you want to see the list of components at all levels
of BOM.

2. Input your manufacturing plant code

3. Input BOM application "PP01" which means you are going to explode production BOM.

Press execute button from top or press F8 from the keyboard to move to next screen.

Step 2) In this screen,

1. You will see the list of components along with quantity at all BOM explosion levels.

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Press F3 from the keyboard to exit the report.

Troubleshooting

• If you are unable to execute any report, ensure your selection criterions are correct, and
there are transactions data in the system for which you want to display reports.

• For BOM reports, ensure material master is in place and BOMs already exists in the
system then only you will be able to display such kinds of reports in SAP.

• Ensure that you are aware of movement types before looking at any production or
consumption reports in SAP.

Top 26 SAP PP Interview Questions & Answers

1) Explain what is SAP PP?

SAP PP process is related to production planning of a company and it encompasses all

activities like MRP (Material Requirement Planning), BOM (Bills Of Material), Routing,
Capacity planning, etc. but mainly it contains two segments

• Material Planning: Material requirements planning, long term planning,

• Execution Planning: Creation of production order, workflow, conformations, technical
completion and good movement

2) Mention what are the production process in SAP?

There are three types of production process in SAP

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 • Discrete Manufacturing
• Repetitive Manufacturing
• Production- Process Industries

3) List out the activities carried out in Production Planning?

Activities involved in Production Planning includes

• Processing material master

• Creation of Bill of Material
• Displaying work center and routing
• Maintaining planning calendar
• Maintaining production lot
• Maintaining quota file
• Defining range of coverage profile and profile for safety time
• Defining MRP views

4) Explain what is Routing in SAP PP?

Routing in SAP PP is referred to a list of activities which are required to produce any material.
For example, when you do cost estimation for the material, the system triggers the relevant
routing and activity rates for all those described in routing. Which will helpful to calculate the
processing cost in product costing.

5) What are the steps of Production Execution Process?

Production Execution steps include

• Converting planned order to production order

• Releasing the production order
• Goods issue for production order
• Confirmation of production order
• Goods receipt against production order

6) What are the reports generated in product cost controlling information system?

Product Cost Controlling information system generates information for following areas

• Product cost planning

• Cost object controlling with the subcomponents
o Product cost by period
o Product cost by order
o Product cost by sales order
o Costs for intangible goods and services
• Actual costing / Material Ledger

7) Explain what is "work center" in SAP PP and what is the use of Data in Work
Centers?
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"Work Centers" are business objects in SAP-PP that is used in task list operations ( routings,
maintenance task lists, inspection plans) and work orders.Data in work center is used for

• Scheduling: Formulas and operating time are entered, so that the duration of an
operation can be calculated
• Costing: Formulas are entered so that the costs of an operation can be calculated
• Capacity Planning: The available capacity and formulas for capacity requirements is
entered
• Simplifying operation maintenance: Various default values can be included in the
work center

8) What is the use of MRP PP evaluations?

This role contains a function for evaluating the MRP result. This function can be used to find
information about the availability of material and to identify any material shortage situation.

9) Mention what is the purpose of using Capacity Planning?

Capacity Planning supports planning in all phases

• Long term rough cut planning

• Medium term planning
• Short term planning

It can be integrated with various SAP applications like SAP-SD, PP, PP-SOP, PP-LTP, PP-
SFC, etc.

10) Explain how can you create production order without routing and BOM?

Without BOM and routing you can create a production order by changing the config in OPL8 (
order type dependent parameters) as routing optional. When we try to create an order using
C001 it may ask for a sales order.

11) Explain what happens to planned after it has been converted into production
order?

When planned order is converted to the production order, the planned order are offset by
production order. The planned order reference can be seen in the production order.

12) Mention what is the difference between stock transport order and stock transfer
order?

• Stock transfer order: It is referred to the transfer of stock for the usage in the same
company
• Stock transport order: It is referred to the change of title of stock in the name of the
buyer

13) Explain what is PRT (Production Resource Tools) in SAP PP?

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PRT (Production Resource Tools) are moveable operating objects used to perform repeated
activities in plant or production maintenance, for example, documents such as drawings or
programs for which document management functions are used. Various other PRT
components include

• Engineering drawings
• Jigs
• Fixtures
• Measurement Instruments

14) Explain how to create PRT master records?

To create PRT master records you have to follow the following steps

1. Choose logistics/Accounting -> Project System -> Basic data -> Master data -
> Production resources and tools -> Create
2. The initial screen for creating a PRT appears
3. Enter a number for the PRT and choose continue
4. The basic data screen appears
5. Maintain the basic data
6. Choose Goto -> Defaults and enter the default values
7. Save the PRT

15) Mention what is the t-code for changing production order and to display production
order?

T-code to change the production order = C002

T-code to display the production order = C003

16) Explain what is PLM (Product Lifecycle Management) in SAP PP and what is the
use?

It is a collection of solutions with which you digitally create, maintain and make product
information, available in the whole company and for the entire life cycle of the product.

PLM provides you the function with which you do following things

• The workplace is an open portal in the world wide web and allows you to access all
application and information that you need to work with all external and internal
business partners
• It can link with other internet applications like program management, change and
configuration management and engineering collaboration.

17) In SAP-PP what are the costing parameters?

In SAP-PP, the costing parameters are as below

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 • Work Center: Activity types and the formulas, cost center
• Routing: The time, activity types

18) In cost controlling information system mention the fields that are listed in the list
screen of the report?

Following fields are listed in the list screen of the report

• Key Figures
o Costing/MM
o %Costing/MM
o Revaluation
o VarCstRuns
o %VarCstRuns
• Basic data
• Valuation
• Cost component group 1/ Cost component group 2
• CostCompGr(fix)1 / CostCompGr( fix)2

19) Explain what is the use of SAP Material View and list out other parameters where
SAP Material View is applicable?

SAP Material View is an SAP object that not only hold name of the material, but various other
information related to material like

• Material production related information

• Material planning related information
• Material sales related information
• Material purchase related information
• Material storage and warehousing related information
• Material costing and Accounting related information
• Material batch specification information

20) Mention what are the types of Master Views for Production and Planning?

For production and planning types of Master Views are

• SAP MRP1 View

• SAP MRP2 View
• SAP MRP3 View
• SAP MRP4 View
• SAP Work Scheduling View

21) Mention how MRP (Material Requirement Planning) types are classified?

MRP types are classified in two leagues

• Materials for consumption based planning

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 • Planning based on demand

22) Mention what are the keyfields found in MRP View 1?

MRP views 1 are mostly maintained for production purposes.

• General Data
• MRP Procedure
• Lot size data

23) List out the basic procedure for dispatching operations in capacity leveling?;

For dispatch operations basic procedure includes

• Either the user determines the date of dispatch or else it is specified by scheduling
• A dispatching sequence needs to be determined if several operations need to be
dispatched
• The systems checks for
o The dates to which operations are to be dispatched
o The work center to which operations are to be dispatched
• Finite scheduling is performed
• Operation check is performed
• Status for the operation is set as "dispatched."
• System carries out midpoint scheduling

24) Explain what is the need of MRP list if the stock requirement list is already given?

MRP list displays the result of the last planning run, changes that occurred between planning
runs are ignored in the MRP list. While contrary to this, in the stock or requirement list all
changes that occurred in the stock, issues and receipts are displayed by the system.

25) Mention what are the t-codes for creating, changing and summarizing BOM?

BOM transaction codes for

• Creating BOM= CS01

• Changing BOM= CS02
• Summarized BOM=CS13

26) Mention what is the use of t-code CS20 in BOM?

With t-code CS20 you can do Mass changes to BOM like

• Change the item data

• Creating new material
• Replacing it with another material

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