Variant Configuration

Introduction:

• Variant configuration is useful if you have large number of combination of parts that go in to production.
It means different permutations and combinations of the parts for the same material.
• If you maintain a unique material code for each combination of parts, you require large number of
material numbers.
• Usually involves MTO Production process.
Examples:
• A customer ordering a computer can choose different combinations of monitor, CPU, Keyboard.
• A customer ordering a car can choose different combinations of accessories and colour.
• In a business involving steel manufacturing, the customer may order steel involving different physical
properties like tensile strength, diameter.

Industries for Configurable parts

• Automotive.
• Food.
• Elevators.
• Aerospace.
• Machinery.
• High Tech.
• Steel.
• Chemicals.
• Telecommunications.

Cross Module Integration

Variant configuration is integrated with the following applications.

• CA Classification.
• LO Material Master.
• PP Bill of Material.
• PP Routing.
• PP Material Requirement Planning (MRP).
• PP Production Orders.
• PP-PI Master Recipes.
• CO Costing.
• SD Sales.
• SD Conditions.
• MM Purchasing.

Overview of Terms

• A Configurable material has special Bill of Material called the Super BOM in which all possible
combinations are stored.
• The product is configured in the SO by choosing required Characteristic Values.
• After Production, the material is assigned as Sales Order Stock for delivery to Customer.

MTO Process Overview

MTO Production with a Configurable Product:

In this process Create SO in SD and transfer the requirements to PP. The requirements are checked using
MRP, before Production Order is generated. This Production Order is created in PP. Shipping and billing both
occurs in SD. Finally you check Costs and revenue in CO.
Creating a Sales Order (T.Code: VA01)

After entering sales data, a configuration screen pops up.

Configure the material by selecting the characteristics.
Note that the value of variant conditions changes as per selection.
The System allows analysis of Object Dependencies and Variant Conditions.
Item Category determined in the Sales Order is TAC.
Note the Material Availability date and save the sales order.

Configuration for VC

Configuration Details: Material Type

OMS2: In definition of KMAT Material Type, indicator 'Material is Configurable' is set.

Other Material types like FERT (Finished Product) can also be used if the indicator is set in Material Master.

Configuration Details: Item Category in Sales Order

VOV4: Item Category determination is set to determine item category TAC.

VOV8: Item Category TAC.

Configuration Details: Condition type for pricing

Condition type VA00 and VA01 (%) are available in Standard SAP for Variant Pricing.

Configuration Details: Requirement Type KEK

The requirement class controls the MRP and the Requirements Consumption strategy as well as the
relevancy for planning, settlement profile for costing.
Requirement type KEK is determined for strategy group 25 and also for Item Category TAC.

Classification System: Characteristics

CT04: Create Charecterstics

Data type can be CHAR, NUM, DATE, TIME, CURR.

Reference characteristics

Reference characteristics are characteristics that refer to table fields.

Table /Structures whose field value can be changed by dependencies:

SDCOM - Communication between SD and Variant Configuration.
VCSD_UPDATE - Tables for updating sales documents from the configuration.
MMCOM, STPO, PLPO, PLFH, PLFL.

Tables / Structures whose field value can be read by dependencies:

VBAK, VBAP, VBKD, VBPA_AG, VBPA_ WE, VBPA_RE, VBPA_RG, VEDA, MAEPV, MAAPV.

Object dependencies like pre condition, selection condition, action, procedures can be created for
characteristic values.
Object dependencies like pre condition, action, procedure can be created for characteristic values.

Classification System: Class

CL01/CL02: Create Class under class type 300 for variants.

Assign the characteristics to the class.
During Material Master creation for Super BOM, this class will be used in the Classification View.

Material Master of Super BOM (T.Code: MM02)

Basic Data 2 Screen: Set 'Material is Configurable' Indicator.

To determine item category TAC in Sales Order, maintain a suitable item category group such as 0002.
MRP 2 View: Procurement type: 'E: In house Production'.
MRP 3 View: Strategy Group '25: MTO for Configurable'.
MRP 3 View: Availability check '02: Individual Requirement'
Classification View: Attach the Variant Class.

Bill of Materials (CS01/CS02/CS03)

Object dependency in BOM (CS02)

Components in Production Order can be selected using Object Dependency type Selection Condition.

Routings

Operation in Production Order can be selected using Object Dependency Type Selection Condition.

Configuration Profile: Process

Planned/Production Order: Explosion indicator None (Others Single Level or Multiple Level)
The Material has a BOM that is not relevant to the sales order.
Only characteristics that describe the variant are required.
The components are determined later during MRP or Production, So there is no need to explode the BOM in
the Sales Order.

Sales Order (SET)

In the sales order sales relevant components are shown as sub-items of the header material.
Requirements are transferred and Pricing is calculated at the components Level, not at header material
level.

Order BOM
You create a sales order. In Order BOM, you can insert extra items or delete items manually.
The changed BOM is stored as a separate BOM for the sales order.

Configuration Profile: SET

This processing form means that in the sales order you can only process sales-relevant BOM items.
You can use item category group like 0004 at configurable material level to define that requirements
transfer and pricing are at component level.
For example a PC is made up of components monitor, CPU, Keyboard and Printer. These components are
salable material that are manufactured separately.
In the sales order you want to see the individual components that make up computer as order items, as well
as the whole computer.
In the sales order, these products are grouped together in a SET. For this reason this type of processing is
also referred to as SET Processing.

Configuration Profile: Dependencies

Dependencies like Actions and Procedure can be assigned to Configuration Profile.

Configuration Profile: Variant Table

Tables are used to store combinations of values for different characteristics.

A table HD_1300_COLOR_PR is created in CU62 transaction.
It has two fields: HD_COLOR (key field) and SURCHARGE.
The selected charecterstic HD_COLOR and surcharge to SURCHARGE2

Pricing

Check definition of characteristic SURCHARGE2 - Addition data tab -reference table and field
Simple method to achieve Variant Pricing is given below:
Create multiple value characteristic SURCHARGE2 referring to SDCOM-VKOND
Put this characteristic in class HD-000 which was used for configurable material.
Now go to CT04 and change the Characteristic HD_COLOR
Go to values tab and select Red.
Go to Extras - Object Dependencies - Editor and then select Procedure.
In front of 000010 Enter $self.surcharge2 = 'HD-003_03.
Similarly select Black to Enter $self.surcharge2 = 'HD-003_02'. Same way 'HD-003_01' for silver
VK30: Has description entries for the surcharge column listed above.
VK12: Will pick up pricing value based on condition type VA00.
VK30: Maintain description for variant price conditions
(Optional step; done while creating dependencies for surcharges; maintains consistencies of configuration)

Pricing Factors

Pricing factors can only be maintained on characteristic levels.

The syntax of pricing factor is as follows:
$SET_PRICING_FACTOR ($SELF, < characteristic >, <variant key>, <factor>)
This expression contains the following information:
The characteristic that refers to structure SDCOM, in which variant conditions are defined.
The variant key used to infer the condition for a characteristic value.
The factor by which the surcharge increases.

Material Variant

For variants that are required frequently, create material variants, which can be produced with out a sales
order and kept in stock.
when sales order is in received, check whether the variant is in stock and deliver immediately.
The material master record of a material variant is linked to the configurable material and configured using
characteristics of the configurable material.

Material Variant in Sales Order

On the value assignment screen you can check whether the values assigned match the configuration of a
material variant.

Material Variant

Replacement of configurable material by a material variant.

Item category gets changed to TAN; Pricing will also change as per new MTS product.

Understanding Object dependencies in detail

Dependency Types

The SAP system supports following types of dependencies:

Preconditions
Selection Conditions
Actions(obsolete)
Procedures
Constraints

Global and Local Dependencies

The difference between global and Local dependencies are as follows:

Global dependencies are created centrally and can be assigned to several objects.
Local dependencies are created for one object and can be used with this object.

Pre Condition

Example: Precondition for characteristic Values

When we have configurable material BIKE. The material has characteristic MODEL and GEARS with the
following values.
Characteristic Values Condition
MODEL Racing
Standard
Maintain
Random
GEARS 10
12
17
21 'MODEL-Racing
Only if the model specified is racing, the bicycle can have 21 gears.
1. Create a precondition with the following source code:
Model eq 'Racing' and specified MODEL
Allocate the precondition to value 21 of characteristic gears

Selection Condition

Characteristic HANDLEGEAR is assigned to configurable material BIKE characteristic

The selection condition is allocated to each component and each operation. This selection condition
determines which component and operations are selected for variant.

Changing Master Data and Dependencies

In variant configuration you can use reference characteristics with dependencies to change field values of
tables for Bill of Materials (BOM, task lists and master recipes.
Table names and fields are given below for reference.
Table STPO field MENGE can be used to change component quantities of BOM.
Table PLPOD field VGW01 can be used to change set up time of operation.

Procedures

Procedures can set default values for a characteristic (can be overwritten by the user)
Set default value:
$SET_DEFAULT ($SELF, < characteristic >, <term>)
for example: ($SET_DEFAULT ($SELF, COLOR_CHAR, 'BLUE') $SET_DEFAULT ($SELF, GLOSS_CHAR,
'NONE'))IF $root.PC_CASING_CHAR='TOWER'
Delete default values:
$DEL_DEFAULT ($SELF, < characteristic >, <term>)
Produce a sum of the values for a characteristic in a multilevel configuration:
$SUM_PARTS ($SELF, < characteristic >)
It can be used to calculate the weight of components and transfer the same to structure VCSD_UPDATE,
gross weight field BRGEW.
Add the componets of BOM together.
$COUNT_PARTS (<$SELF>)
Surcharge for variant conditions in pricing
$SET_PRICING_FACTOR ($SELF, < characteristic >, <variant key>, <factor>)

Constraints and Dependency Net

The main purpose of a constraint is to monitor the consistency of a configuration.

There are four sections in a constraint
1. OBJECTS: Declaration of all classes and objects used.
2. CONDITION: Prerequisite for processing the constraint.
3. RESTRICTION: For in-dependencies and consistency check; check and set values.
4. INFERENCES: Enter the characteristic for which the characteristic values are to be inferred.
Constraints are grouped together in dependency nets.
The dependency net can be allocated to a configuration profile.
Example: The hard disc can only have the value '1620' for a tower or '850' for a mini tower.

Actions

Actions can be used to infer values for characteristics.

Actions can also be used to change field values in BOM items or operations in r outings.
Procedures can set default values for a characteristic, which can be over written by the user.
The user can not overwrite values that are set by an action.
For new development use procedures rather than action (to become obsolete)

Object variable used in multilevel configurations

Allowed Dependency types

Preconditions are allowed for characteristics and characteristic values.

Processing sequence for dependencies

Each time you enter a value for a characteristic on the value assignment screen and confirm the value , the
system processes all the dependencies.
The dependencies are processed in the following sequence:
1. All actions several times un till no more values can be inferred
2. All procedures exactly once in the following sequence:
a) Procedures for the configuration profile in the order you defined
b) Procedures for characteristics
c) Procedures for the characteristic values
The procedure for each characteristic or value are processed in the order you defined.
3. Actions
Values set by procedures can also trigger actions. For this reason all actions are processed again.
4. Preconditions
5. Selection conditions for characteristics
Constraints are processed in parallel with points 1-3, if all objects in OBJECTS section are present and all
conditions in CONDITIONS section are fulfilled.

Transfer to Production Planning

Checking Requirements using MRP (T.Code: MD04)

Step 1 to create sales order has already been discussed earlier.

2. Stock Requirements List:
The sales order is displayed as a separate planning segment(sales order stock required on material
availability date and sales order).

Requirements Planning (MD50)

The sales order will now be converted into a planned order. Planned order represent the first step towards
an actual production schedule for the shop floor.

Convert the planned order in to a production order

Planned Orders are a result of MRP Run and serve to provide an initial Production Schedule.
Production Order contain comprehensive information to support a shop floor schedule and provide a method
to confirm operations performed.
Production orders can be created with reference to a Planned Order.
Object Dependency:
BOM selection condition ensures only necessary material components are taken.
Routing selection condition ensures necessary operations are taken.
Prior to release of order, it is not possible for any one to enter confirmations for the operations in the order.
Release the order and Save it.
Display the operation scheduling overview, choose Go to - Graphic - Gannt chart
Display the planned cost, choose Go to - Costs - Analysis.

Confirming the Production Order (CO11N)

Production control - Confirmation - Enter - For Operation - Time Ticket

Back flushing (posting of an issue of components or material withdrawals).
Storage of finished product in the warehouse to sales order stock.
Goods movements are posted (errors if any can be corrected in COGI)
Actual costs are calculated.
Just in case, to close the order with out yielding a product, perform Restrict Processing - Technical
Completion for Production Order in CO02.

Checking Settlement of the Production Order

From the Production control node, choose Period-End Closing - Settlement - Individual Processing (KO88)
Perform Order settlement to transfer the costs of the production order to sales order.
Analyze the current cost situation for the production order.

Creating Delivery (VL10G for delivery due list, VL01N for single delivery)

Assign a serial number to the material. Pick and post the goods issue.
Movement type will be 601 E indicating delivery from sales order stock.
Accounting document will be generated to capture the change in inventory.

Create Billing document (VF04/VF06 for due list, VF01 for single invoice)
VF01: Create the invoice - sample accounting entries (with out tax) are shown below
F-28: Receive the payment from the customer.