RAJA SEKH AR A REDD Y B ANNURU

August 24, 2017 4 minute r ead

Milestone Confirmation of the Process

Order with Multiple Operations & with
Multiple Phases involved
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Dear All,

Business Process with Milestone Confirmation in the Process Order

For a Process Order, with multiple Operations & each Operation contains multiple Phases.
During the confirmation of the last Phase of the last Operation, (which contains Milestone
confirmation) System should automatically confirm all preceding Phases in all the
Operations

Please find the sequence of steps involved in executing this Business Process/Requirement

<<<< Requirements of the Master data settings >>>>

1.Create Material Master for the FG/SFG & Raw Materials required, Transaction code ;
MM01
Created the below Materials for this scenario
For Example : Finished Product: FNP1 & Raw Material: QMATR1
2. Create the BOM for the finished Product, using he Transaction Code: CS01
Created the BOM for the Finished Product : FINP1, with the required set of
components

3. Create the Resource using the Transaction Code: CRC1

Created/Used the below mentioned three Resources: 1111, 1112 & 1113, in the
Plant 1100
Now, all the required Resources were set in the System
4. Create the Master Recipe, using the T Code: C201
Master Recipe settings plays important role, for this Milestone Confirmation, with the Multiple
Operations with Multiple Phases. Need to maintain the Relationship between the Phases of all
the operations involved.
This Mater Recipe creation can be the generic one, which can be used/assigned for multiple
Header Materials that were going to be produced (or) specific to any one of the FG/SFG Material

In the initial screen, that is displayed, enter all the required fields & Press Enter

In the next screen, that is displayed, enter the required fields, then Press Enter
In the Next screen that is displayed, enter the required data
Enter all the sequence of Operations & the Phases of the respective Operations
Look at the details of the Control key settings

Now, maintain the Relationship, between the Phase with Milestone Confirmation
(0080 Phase), in all the other Phases (0020, 0040, 0060, 0070)

How to Maintain the Relationship (for Ex: for the Phase 0020)
Select the Phase & Click on the Relationships Icon (as shown)
In the next screen, that is displayed, enter the required data
Continue the same, for all the remaining Phases: 0040, 0060, and 0070
Make Sure, all the relationships are also updated in the Phase: 0080, as
Predecessors
Click on Materials Tab, Enter the required Data
In the Next Screen, that is displayed, If required, Check for Consistency & then
save
Recipe was saved with group 50000162 and material FINP1.
Make sure, Material Master of the FG, is correctly updated with Production Version details

<<<< Execution of the Transaction data >>>

1. Create the Process Order using the Transaction code: COR1
Create the Process Order using any of the standard steps/methods
Make sure, all the required data is entered, then Click on Save
Make sure, all the required data is entered, then Click on Save

2. Release the Process Order using the Transaction code: COR2

Go to Change mode of the Process Order,Click on Release Flag, then Click on save
3. Goods issue of the required components to the Process Order suing the T Code : MIGO
Material document 4900002598 posted
4. Confirmation of last Phase of the last Operation of Order, using Transaction Code:
COR6N
With Milestone Confirmation
Enter the Process Order Number, Phase & Click on Actual data
In the Next Screen, that is displayed
Click on Save
Confirmation of order 70001034 saved
Look at the Operation confirmation details of the Order Now
5.Goods Receipt of the Header Material, can be done using the Transaction Code: MIGO
Enter the Process Order Number & the required details, press Enter
Click on Check & then Post.
Material document 5000000461 posted. & Process Order is updated with the Status: DLV

6. Confirmation of the Stock update using the Transaction Code: MMBE

If required, some of the above functions, can also be automated ( Like, Release, AUTO GR..etc)
Kindly advise with your valuable inputs/suggestions, for any changes/additions
required,
to make it as, the most useful, with informative & interesting document

Confirmations on SAP
Production Order or
Easy Links
Process order
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SAP PP/PPPI Order Confirmations
SAP PP/PPPI Order Confirmations:
The order in its life cycle goes through the following steps:
Create Order >>> Release Order >>> Issue PRT's to Order for Production >>> issue Goods to
Produce Order >>> Create Operation Level Confirmations (Partial or Final Confirmations at each
operation) >>> Confirm the last Operation for produced quantities >>> jReceive Goods into
Stock >>> Deliver Goods to Customer
Order confirmations is what we will be talking about in this section.
Order confirmations can be carried out on a real time basis or you can record order confirmations
every shift or every day. It is wise to record the order confirmations on a real time basis, but
recording shift wise or day wise isn't bad either. But recording the confirmations weekly or
alternate days does not reflect any real time information for superiors (bosses) who are viewing
reports and information from SAP.
Purpose Of Confirmations:
When you would actually start learning SAP PP/PPPI, you may get confused that order
confirmations is about receiving goods in to stock. But this is a totally wrong perception that
people carry.
Order confirmations is about:
a) declaring the quantity that is produced, the quantity that is scrapped and the quantity that
requires reworking.
b) It is also about confirming the total activity hours put in to producing the sub-assembly or
assembly thereby deriving the order costs through activity based costing procedures.
c) And it is also about recording the personnel data responsible in producing the stock.
In short the following is recorded during order confirmations:
a) Yield Quantities
b) Scrap Quantities
c) Rework Quantities
d) Total Activity Hours utilized at the operations
e) Personnel responsible for production.
f) Actual Dates
g) Along with the above, you can also enter the actual values for any other activity included in the
work centers standard value key, for example you can enter the steam consumed, electricity
consumed, water consumption, if they are declared as one of the 6 allowed activities in the
standard value key of the work center.
h) The system posts automatic goods movements of all the components assigned to the operation
in the order task list. We call this backflushing of components during order/operation
confirmations.
i) The system also post automatic goods receipt of quantities during final confirmation of the final
operation, for the final operation in the order task list which is assigned with a control key for
Auto-GR or for an operation which is a part of an order whose Production scheduler profile is
configured for Auto-GR)
Prerequisites to create Confirmations:
The following are the prerequisites to create confirmations in SAP.
a) The control key assigned to the operation in the task list should allow confirmations as
necessary or possible or as Milestone Confirmations.
b) The Work center associated with the operations may or may not have activities assigned. But if
it has activities assigned (6 or less than 6 activities) you would need to confirm them.
c) To carry out milestone confirmations, you should have a control key marked with "Milestone
confirmations allowed" assigned to the operation. Once you confirm a certain operation in a task
list which is marked for milsetone confirmations, it would automatically confirm all the
operations above it or in other words it will confirm all the operations from this milestone
operation to the earlier milestone operation only.
d) For Backflush of components or automatic goods issue of components from an operation
during operation confirmation, you should assign the components to the operations in the order
task list or the task list master data. (task list means Routing or Master Recipes, Rate Routings, or
reference sets) & mark these components as Backflush components or mark the work center of
the operation as "Backflush Work center".
e) For Auto-GR from the final operation (when you create final confirmation on the final
operation) you should assign the operation with a control key that allows Auto-Goods-Receipt or
you should alternatively have an "Production Scheduling Profile" for the order which is
configured to allow Auto-GR.
Recommendations in creation of Confirmations:
a) To carry out Milestone confirmations, you should always check the sequence of confirmations
and configure the order type to check the sequence of operation confirmations.
b) Checking on, sequence of operation in operation confirmations (configuration) would help
organizations to follow the sequence of operation confirmations as marked in the order's task list.
This is more-so-ever useful when you have too many operations arranged one of the other in the
task list and adhering to their sequence is useful in maintaining records.
c) If you are playing with issue of backflush items, it is recommended that you should error out
confirmations because of errors in backflush goods movements, instead you allow the goods
movements to be re-processed/corrected later on. Such failed movements go and sit in a
transaction called "COGI" in SAP, where you can manually correct them or reprocess such failed
movements.
d) If there is any error in activity costing, it is recommended that you should stop or abort the
confirmations. Only correcting the data through different transactions should allow you to process
the confirmations. This makes sense since errors in activity confirmations means creating errors
in order costing.
e) Configuring for proposing the quantities, dates and activities would help you during creation of
confirmations.
Ways to create Confirmations:
There are different ways to create confirmations:
a) Operation Level Regular Time Ticket confirmations:
In this method, you would be confirming each and every operation for quantities, activities and
personnel, as and when it is produced on the shop floor. You can confirm for partial quantities or
partial activities at an operation or you can confirm for total final quantity and/or activities at an
operation.
Steps in Confirmations:
Use the standard SAP transaction code CO11 in SAP PP and Use the standard SAP transaction
COR6N.
In the case of Process order, the confirmations are created for the Phases and not for the
operations. The operations in Process orders are included in the task list as information or as a
superior place holder for the subordinate phases. The phases are allocated to the operations. All
the Activities and quantities are placed on the phases and therefore we confirm the phases.
Enter Order number, Operation number (Optional), existing confirmation number (optional) >>>
Press Enter >>>
Pop-up Appears to select the operation number that you want to confirm >>>
Select the Operation number that you want to confirm and press enter on the pop-up box >>>
Enter Quantities confirmed like the Yield Quantity (Good Quantity Produced) and/or Enter the
Scrap Quantity (Bad Quantity that is produced and needs to be scrapped and/or the Enter the
Rework Quantity (Bad quantity that needs to be reworked). Opting for planned operation
Quantity Proposals during confirmations (in configuration), can propose quantities and help you
when you are entering actual quantities. Also select the confirmation type in the quantities tab,
whether it is partial confirmation or final confirmations. If you have configured automatic
confirmations, then the system will automatically select based on the quantities confirmed.
Enter the dates, the actual start date (Good Quantity Produced) and the actual finish date in the
dates tab. Opting for planned dates proposals during confirmations (in configurations),
can propose planned dates and help you when you are entering the actual dates.
Enter the Values for the Activities assigned to the operation in terms of unit of Entry. If the
Activity is "Set up Time" enter the actual set-up time consumed. If the activity is "Machine
Time"
enter the actual Machine time required consumed to produce the quantities and if the activity is
something else like the steam consumed or the electricity consumed or water consumed, enter
the actual values for them.Opting for Activity Value Proposals during confirmations (in
configuration), can propose planned activity values (in activity UOM) and help you when you
are entering the actual activity values.
Enter the Personnel Number in the Personnel/additional data tab who was involved in the
production activities, it can be person producing the item or it can be the supervisor. You also
have an option to enter a posting date for the created confirmations. You can enter a future date
if such is allowed in the order type confirmations parameters configurations. >>>
Then Press the Save Button to Save the confirmations. The system generates
a confirmation number when you save >>>
On saving the system generates a counter number for the
confirmations created. Every confirmation that you create will
have a confirmation counter number generated against the
same confirmation number.
Note -
a) In the selection screen, you have an option to enter the order number or the confirmation
number to create the confirmations in SAP.
b) Every Saved confirmations will have a confirmation counter created. The confirmation counter
stores the details of the confirmations. You can retrieve confirmation information on the basis of
an operation, or on the basis of operation & counter or operation.
c) The System posts Goods issues for backflush components assigned to the operation in the
production order task list when you save the confirmations.
If there are any errors in the Goods issues (like the batch is missing, the storage location is
missing, periods closed for goods movements, quantities available in storage locations specified)
you can correct the errors (if you have confirmed for error correction in confirmations screen) or
you can terminate goods issues (if you have configured for termination) or you can allow it to go
for reprocessing which means that the system would successfully create confirmations and would
fail any goods issues for missing data, which would later be grouped together for reprocessing in
an SAP transaction code called COGI.
Here in the COGI transaction code, you can correct the errors for the order goods issues and post
the goods issue again.
d) The System posts Goods Receipts for the header material of the order during the Final
confirmation of the final operation if the final operation in the order task list has a control key
allowing Auto-GR or the order has a production scheduler profile allowing Auto-GR.
If there are any errors in the Goods Receipts (like the batch is missing, the batch has missing
characteristics values for required characteristics, the storage location is missing, periods closed
for goods movements) you can correct the errors (if you have confirmed for error correction in
confirmations screen) or you can terminate goods receipts (if you have configured for
termination) or you can allow it to go for reprocessing which means that the system would
successfully create confirmations and would fail any goods receipts for missing data, which
would later be grouped together for reprocessing in an SAP transaction code called COGI.
Here in the COGI transaction code, you can correct the errors for the order goods receipt and try
posting the goods receipts again.
e) The posting date of the confirmations is used for posting the goods movements.
f) Also if there are any errors in Activity postings, you can configure the system to allow
corrections or to terminate the confirmations. According to me, it looks very sensible to terminate
the confirmations, if there are any issues in activities.
b) Order Level Regular Time Ticket confirmations:
In this method, you would be confirming the whole order in a single given instance for a given
quantity and activity. These confirmations can be partial or final confirmations. When you are
confirming at the order level, the system automatically confirms all the operations in the order.
Every that is discussed in the Operation level Time ticket confirmations in true for Order level
confirmations.
When you confirm an operation at order level, all the operations in the list are proportionately
confirmed for quantities and activities.
Note:
a) If you have already confirmed at the operation level, you cannot confirm at the order level.
b) If you have already confirmed at the order level, you cannot confirm at the operation level.
c) The Order level confirmations are easy in cases where you have just one operation assigned to
the order, or you have many operations assigned to the order with the final operation marked as
Milestone Operation.
d) Also it is much easier for users to record confirmations on the order level.
c) Operation Level Milestone Confirmations:
In this method, the system automatically confirms all the operations from one Milestone
operation (you confirm) till the preceding milestone operation only. As an example if you have 5
operations, 0010, 0020, 0030, 0040, 0050, with operation number 0050 and 0030 declared as
milestone operations and if you confirm operation 0030 with a partial quantity 20 Units, the
operations 0020 and 0010 are also confirmed with partial quantities of 20 Units.
You can mark an operation as milestone operation through the use of control keys inserted in the
order routing.
In other words, Milestone confirmation means that if you confirm a certain operation in a task
list, it would automatically confirm all the operations above it or in other words it will confirm all
the operations from this milestone operation to the earlier milestone operation only.
Illustration:
Explanation to the above example -
If you confirm the milestone Operation 0040 through Order level confirmations or operation level
confirmations, then the system would automatically confirm operations 0040 + operation 0030 +
operation 0020 + operation 0010.
If you confirm the milestone Operation 0070 through Order level confirmations or operation level
confirmations, then the system would automatically confirm operations 0070 + operation 0060 +
operation 0050.
Others
Order status through Confirmations:
When you create partial confirmations, the order gets a status "PCNF" and the Operation gets a
status - "PCNF".
If you have an order with 3 operations - 0010, 0020, 0030 with quantities equal to 100 at each
operation (operation qty = order qty).
Follow the table to know the changes in system status during confirmations:
Canceling Confirmations:
In SAP, you cannot reverse the confirmations, you can only cancel them. You cannot reverse
partial quantities or activities for a confirmation. You can only cancel the confirmation and redo
it.
Confirmations in SAP are stored at counter level. Every counter is a partial confirmation or a
confirmation that you have created in the system.
When you cancel confirmations in SAP, the system cancels the quantities confirmed, the
activities confirmed, the dates confirmed, the personnels confirmed, and any other data that's
lying on the created confirmations counter.
The confirmations Counter that is canceled is marked as canceled in SAP with "Reversed
indicator" assigned to it.
To cancel confirmations you can use CO13 Transaction code in SAP PP and CORS Transaction
code in SAP PPPI, to Cancel Confirmations.
The Following Table in SAP explains Cancellation of Confirmations in SAP.
Note - Canceling the Confirmation Counter in SAP, also reverses all the goods movements that
have been created during the confirmations. If you have posted backflushes (movement type 261)
then cancellation of the confirmation would result in reversals of the goods issues (movement
type 262). If you have created goods receipt during operation confirmation, then the cancellation
of such confirmation would result in posting the reversal of goods receipt (movement type - 102).
The posting date of the confirmations is used for posting the goods movements.
Displaying Confirmations:
You can display confirmations that you have created for an order. In the Display mode, you
should enter the Confirmation number or the order number. Selecting the Operation number is
optional. You can also select the sub-operation number for which you want to display the
confirmations.
Transaction code - C014 in SAP PP and CORT in SAP PPPI.
When you are displaying confirmations in SAP PPPI, you should select the phases instead of the
operations. There is also an option to select the secondary resources for which confirmations are
made.
Did you mark the Wrong Confirmation type during Confirmations?
Don't worry if you have marked the wrong confirmation type during the confirmation creations.
If you have entered a final confirmation as "Partial" and a partial confirmation as "final", you can
rectify the same. Follow the method below to rectify the same.
Note - In the case of SAP PPPI, you should select the phases rather than selecting the operation
number to enter in to confirmations.
Enter the Confirmation number or the order number (you can also enter the operation
number/phase if you want). The system in all likely cases would throw a message, saying that the
order or operation or phase is already confirmed and do you want to proceed. You should press
the yes/proceed button >>>
Select the Operation number/Phase number on the Pop-Up for which you want to change the
confirmation type, if you are confirming at the order level, you will not get this pop-up >>>
Press Enter Button on the Pop-up Screen after selecting Operation/Phase >>>
Enter the Yield as "Zero" Quantity or leave it blank. Then Select the Right
Confirmation Type (in other words correct the confirmation type)
Enter the correct Posting date for the confirmations. You may want to enter
the posting date that was used for the original confirmations you made with
the wrong confirmation type.
You can also enter a Confirmation text to record to comment on the
changes made >>>
Press Save to Save the confirmations. This will change the
Confirmation type for you.
Note -
a) Alternatively you can cancel the wrong confirmations because of the wrong confirmation type
and re-created a new confirmation for the operation or order.
b) You can use this for both Operation confirmation and Order confirmations.
c) The system in all likely cases would throw a message when you press enter on the selection
screen, saying that the order or operation or phase is already confirmed and do you want to
proceed. You should press the yes/proceed button to proceed.
Did you Enter Wrong Activity type during Confirmations
Dont worry if you have missed entering the activities for a certain confirmation created or you
want to correct the data for activities, for confirmations, that you have already entered. Follow the
method below to rectify the same.
Enter the Confirmation number or the order number (you can also enter the operation
number/phase if you want). The system in all likely cases would throw a message, saying that the
order or operation or phase is already confirmed and do you want to proceed. You should press
the yes/proceed button >>>
Select the Operation number/phase on the Pop-Up for which you want to enter/change the
activities
data, if you are confirming at the order level, you will not get this pop-up >>>
Press Enter Button on the Pop-up Screen once you have selected >>>
 Enter the Yield as "Zero" Quantity or leave it blank.
Enter the activities data as you wish to.
Enter the correct Posting date for the confirmations. You may want to enter
the posting date that was used for the original confirmations you made with
the wrong confirmation type
You can also enter a Confirmation text to record to comment on the
changes made >>>
Press Save to Save the confirmations.
Note -
a) Alternatively you can cancel the wrong confirmations because of the wrong activities and re-
created a new confirmation for the operation or order.
b) You can use this for both Operation confirmation and Order confirmations.
c) The system in all likely cases would throw a message when you press enter on the selection
screen, saying that the order or operation or phase is already confirmed and do you want to
proceed. You should press the yes/proceed button to proceed.
Confirmations on a future date:
Future dates can be configured in the confirmation configuration. In configuration OPK4, define
confirmation parameters, When this configuration comes up, in the "Checks" Sections, the last
parameter says "Date in the future." You need to check this box if you want your confirmation
dates to exist in the future. It determines whether dates in the future can be used in a
confirmation. If the indicator is not set, you cannot make any confirmations using dates in the
future.

What is Production Planning?

Production Planning is the process of aligning forecasts with the
manufacturing capability to create production and procurement schedules
for finished products and component materials. It also tracks and records
the detail of the manufacturing process, for example, the planned and
actual costs and material flows. It is fully integrated with the other SAP
modules: SD, MM, LE, QM, CO
Any production planning activities still involves the creation of master data.

Here are the transactions related to master data

maintenance.
 MM03 –Display Material Master
 C203 –Display Master Recipe
 CRC3 –Display Resource
 CR03 –Display Work Center

What is Production Execution?

Production Execution is the final part of the Production Planning process.
The availability of materials for production is checked in the production
location. The transfer of any shortages is requested using the staging
transaction. As orders are completed, order operations are confirmed.
Material and utility usage are recorded by ‘back-flush.

Process Flow for Production Execution

Production Order
A production order defines which material is to be processed, at which
location, at what time and how much work is required. It also defines which
resources are to be used and how the order costs are to be settled.
 Production Order Statuses
 Created–Order is created and changes can be made
 Released–Order released, suggested not to make any change
 Partially confirmed–Production qty/activity partially confirmed
 Fully confirmed–Production qty/activity fully confirmed
 Delivery completed–Entire order quantity has been received
 Technically completed–Order processing is over, ready for month end
processing by accounts

Confirmation of Production Orders

Confirmation for operation–Reporting of yield quantity and consumed
activities and utilities for a specific order and at specific operation.
Milestone confirmation–Reporting of yield quantity and consumed
activities and utilities for a specific order and specific operation. This
confirms all the previous operations in the order.
Collective confirmation-Reporting of yield quantity and consumed
activities and utilities for many orders.
 Manufacturing Month End Processes
WIP calculation – Work in progress are the items which are issued from
the stores and the process is not completed and lying in the shop floor.
WIP is calculated by costing and reported in the inventory value.
Variance calculation – Variance is the difference between planned and
actual consumption of material, activity, and utilities. It is calculated at the
end of the month.
Settlement of order – Calculated variance for each order are settled to the
costing objects according to the costing methodology and procedures

Transactions related to Production Order

 MMBE –Stock overview
 MD16 –Display planned orders
 MD04 –Stock requirement list and convert planned order to production
order
 MIGO –Goods issue to production order
 MIGO –Goods receipt for the production order
 CO15 –Confirmation for order
 C001 Create Production Order
 C005N Collective Release
 C011N Time Ticket
 C012 Confirmation – Collective
 C013 Confirmation – Cancel
 C00IS Production order information system
 C0GI Reprocess Goods Movements
 C223 Maintain production version

Who is Responsible for Production

Execution
Plant Operations are responsible for the detailed control of manufacturing
orders, including material staging, the printing of any shop floor documents
and recording of produced quantities. These quantities will also cause the
issue of the appropriate quantities of raw materials and components via
backflushing.

Understanding Process Manufacturing

Process manufacturing is used in processing areas as it gives greater
control over very complex processes. Process manufacturing allows the
end user to input very specific information across multi-steps easily.
 5 Steps involved in Manufacturing Procedure
1. View Orders
2. Make Product
3. Record consumption & output
4. Record process data & batch characteristics
5. Final Confirmation & Back Flush

Confirmation –Production / Process Orders

Transactions related to Process Order

 MMBE –Stock Overview
 COID –Display Process Order
 MSC1N –Create Batch
 CORK –Process order confirmation
 COR2 –Process Order change
 CORS –Cancel Process Order
 COIO –Process Order Report
 MCRV –Process Order
 MCRE –Material Usage
 KKBC-HOE–Product Cost analysis

Understanding Repetitive Manufacturing

Repetitive manufacturing is used for materials that are produced in a
repetitive environment, where the process is ongoing and is very flexible in
its application and is an excellent tool for repetitive processes.

Transactions related to Repetitive manufacturing

 MMBE –Stock Overview
 MF51 –Production list report
 MSC1N –Create Batch
 MFBF –Back Flushes
 COGI –Post processing components
 MF41 –Month-End Corrections
 MCRE –Material Usage
 MCP6 –Goods Receipt
 KKBC-HOE–Product Cost analysis

Create Work Center Person Responsible

From the IMG screen: Production  Basic Data  Work
center  General data  Determine person responsible

 Click on new entries.

 Enter your plant.
 Enter work center person responsible: 1 _ _.
 Enter a name for the person responsible.
 Click save.

Create Work Center Location

From the IMG screen: Enterprise structure  Definition  Logistics –
General Define location

 Select new entries.

 Enter your plant.
 Enter a location 00 _ _.
 Enter a name for the work center location.
 Click the address button.
 Enter country: US
 Enter Language: English
 Click enter.

Create Work Center Control Keys

From the IMG screen: Production  Basic Data  Work
center  Routing data  Define control key

 Select PP01.
 Click copy.
 Change Control key to ASSY.
 Select Scheduling, and Cost.
 Click save.
This only needs to be completed by one company in each client.

Create Capacity
From SAP Easy Access: Logistics  Production  Master
Data  Work Centers  Capacity  Create

 Enter your plant, SHIFT for capacity, and 002 for capacity category.
 Click enter.

Enter the following:

 Capacity description: Normal Day Shift

 Planner group: A
 Base unit of measure: Hour
 Start: 08:00:00
 Finish: 17:00:00
 Length of breaks: 00:30:00
 Capacity utilization: 100
 Number of individual capacities: 4
 Check: Relevant to finite scheduling and long-term planning
 Click save.
 Create Work Center for Finished Good
From SAP Easy Access: Logistics  Production  Master
Data  Work Centers  Work center  Create

 Enter your plant.

 Enter a Work center name: Area _ _
 Work center category: 0003
 Click the basic data button.
 Enter a work center description: (example: main assembly area)
 Enter your responsible person, and work center location.
 Usage: 001
 Standard value key: SAP1
 Click enter.

Select Should Be Entered for Setup and labor.

On the Default Values tab:

 Control key: ASSY.

Select MIN as defaults units of measure for standard values – Setup and
Labor.
On the Scheduling tab:

 Scheduling basis:
 Capacity category: 002
 Capacity: SHIFT
 Execution time:
 Setup formula: SAP001
 Processing formula: SAP003.

On the Costing tab:

 Select cost center: P010

 Activity type for setup: Labor
 Formula keys for setup: SAP001
 Activity type for labor: Labor
 Formula keys for labor: SAP003

Click save.
BATCH MANAGEMENT TRACEABILITY
Batch Traceability
The batch number will help to trace its entire activity in the system. Batch
number can fetch the Date of Production, Date of the Expiry date,
Ingredients of a product in that batch & Production or ProcessOrder
number. The customer returned products with batch can be traced quickly.
Batch number can help in identifying the vendor by maintaining proper
batch numbering. Prior information about product expiry date of a product
can be obtained through reports.

Shelf life Expiration Date

Shelf Life details are captured in the system. Production Date or Expiry has
to be mentioned in the GR for the system to calculate Shelf life
automatically. Storage view of the material master must have Shelf Life
Expiration Details to perform the above. A standard report will provide the
list of product with the available expiry date.

Terminologies in Batch Management

Batch characteristics
It is the property of the batch which has to be attached to the batch.
Example:-
Fat content is the required property of a dairy product which has to be
displayed with the batch. Fat content becomes the batch characteristic.
Batch class
The class is the carrier of characteristics. The class will be attached to the
material master.
Example:-
Dairy Product Class can contain characteristic Fat content. Dairy Product
class will be attached to all dairy product material code numbers in
classification view of material master.
Production Date
Date when the product was produced.
Expiry Date
Date beyond when the product can no longer be used
Shelf life period
It is the duration of any product when a product can be used.
Recurring inspection
Inspecting the product at the periodic interval to check its shelf life.
Batch Status
The condition of the Batch usability will be known from the batch status.
Restricted Stock status of a batch indicates it can not be used. Unrestricted
stock status of a batch indicates it can be used for consumption.
Batch Search Strategy
While issuing the goods for process order or production order, the batch
number of components can be searched through Batch search strategy.
Batch Number can be searched based on any characteristic value.
Condition Technique –(Condition Table)
The system searches the batch through predefine tables in a sequence
which are known as condition table and Access sequence. Condition table
specifies the fields combination to be searched. Condition table is defined
in the configuration. Condition record contains the value to which the batch
is to be searched. Condition record is a Master Data.
Condition Technique –(Access Sequence)
The system searches the batch through predefine tables in a sequence
which are known as condition table and Access sequence. Accessing
sequence to the defined condition tables is defined in Access sequence

Batch Management in Production Planning

Materials Master (Work Scheduling view) must have a Batch Management
active to the materials which are to be handled in Batches. Batch creation
during process order/production order processing is to be mentioned in
Material Master Work Scheduling view. The batch number of the
components can be searched through batch search. The batch number to
the finished products are assigned.

The planning process in SAP is divided

into several steps.
These steps can be executed independent of each other, or they can
collaborate in one.

Sales and Operations Planning

Sales and Operations Planning (SOP) develops sales plans and production
of plans using forecast values and requirements from Sales Information
System and costing / profitability analysis as inputs for determining
requirements. These requirements are reflected in the system as planned
 amount of product within a given period and are not required to create the
basis for the requirements of the Customer.

Demand Management
Management on Demand forecasting, functionality is connected to
the production scheduling. Requirement number and date for the finished
products and assemblies based on plans from the SOP is determined.

Master Production Scheduling

Master Production Scheduling (MPS) allows for critical resources or top-
level things planned with extra attention. The process ensures that the
instabilities in planning are very minimal. MPS is a just an another optional
step in the process of planning.

Material Requirements Planning

Material Requirements Planning (MRP) is the detailed planning of
replenishment schedules for required elements. The output of MRP is
either a planned order or a purchase request.

Create Requirements for Finished Good

From SAP Easy Access: Logistics  Production  Production
Planning  Demand Management Planned Independent
Requirements  Create

 Enter your finished good.

 Verify your plant, and version = 00.
 Change planning period to W.
 Click enter.
 Click on Schedule Lines tab.
 Enter a date approx one month in the future, and a planned quantity of
finished product to produce (50).
 Click save.

Run MRP – Single Item, Multi level

From SAP Easy Access:
Logistics  Production  MRP  Planning  Single Item/Multi-
Level.
Enter the following:
 Your finished good.
 Your plant.
 Processing key: NETCH
 Create pur. Req.: 2
 Deliv. Schedule: 3
 Create MRP list: 1
 Planning mode: 1
 Scheduling: 1
 Click enter.

You will see a warning which asks you to check your input parameters.
Check to make sure you values are entered correctly, and click enter again.

Review the MRP list.

If MRP does not work, recheck material type attributes.

Display Stock/Requirements List

From SAP Easy Access:
Logistics  Production  MRP  Evaluations  Stock/Reqmts List

 Enter your finished good and plant.

 Click enter.
 Conversion – Planned Order to
Production Order
From SAP Easy Access:
Logistics  Production  MRP  Evaluations  Stock/Reqmts List

 Enter your finished good and plant.

 Click enter.
 Double click on a planned orders (PldOrd).
 Click the  Prod. ord. button.
 Accept all defaults, and click save.
 Record your order number.
 Click the refresh button. Notice the PldOrd changed to PrdOrd.

Goods Issue
From SAP Easy Access: Logistics  Production  Production
Control  Goods Movement  Goods Issue
Enter the following:

 Movement type: 261

 Enter your plant.
 Storage location: 10

Click the To order button and enter your order number. Click Adopt +
Details. Click the adopt button to accept details for each material and save.

Enter Completion Confirmation of

Production
From SAP Easy Access: Logistics  Production  Production
Control  Confirmation Enter  For order

 Enter your order number.

 Click enter.
 Click on final confirmation.
 Yield to conf. Number of finished goods you produced.
 Click save.
 Goods Receipt of Production Order
From SAP Easy Access: Logistics  Production  Production
Control  Goods movement Goods receipt

 Enter movement type 101

 Enter your production number, and plant.
 Storage location: 30
 Select adopt + Details.
 Click on the adopt button, and save.

At this point you may encounter an error asking you to create a G/L
account. Create this account as a P/L account called finished goods. Make
sure you check the post automatically box during creation. This will also
need to be a cost element. While creating the account, click the Edit Cost
Element button.

Make the CElem category equal to 1 and save.

You will now need to edit your account assignments.
From the IMG screen: Controlling  Cost center accounting  Actual
postings  Manual actual postings Edit automatic account
assignments
Click on new entries.
Enter your company code,
Cost element (the account you just created) cost center, and production
order number.
 Click save.
Now return to the Goods Receipt of Production Order exercise and try it
again.

Settle Costs of Production Order

From SAP Easy Access: Logistics  Production  Production
control  Period-end closing Settlement  Individual processing

 Enter your controlling area (if required).

 Enter your production order number.
 Settlement period: Current month. (1)
 Posting period: Current month. (1)
 Click execute.
 Review the run.
Click the back button. Turn off the test run indicator, and click execute.
Review the results by double clicking on objects selected. To see how the
displayed costs break down, highlight the dollar amount total, and choose
environment  Report from the main menu.

Select Actual/Plan/Variance, and click enter.

Review report.