Traffic Lights in SAP

Red = Stock is not available.

Yellow = the stock is in Average level stock.
Green = Stock is available.

Mention the production process in SAP

 Discrete Manufacturing
 Repetitive Manufacturing
 Production- Process Industries (PP-PI)
 Make To Order
 Make To Stock
 External processing (Subcontracting)
 Rework processing

SAP SPRO stand for SAP Reference Project Object, SPRO is a transaction code, which is used for configuration and customize
SAP modules as per client requirements.
In next screen customizing execute project, three options available i.e.
 SAP Reference IMG (Implementation Management Guide)
 IMG Information
 Project Analysis.
SAP Reference IMG: – SAP Reference IMG takes to Implementation Guide (IMG) screen. The IMG screen provides important
settings on configuration that need to be implemented in every module of the SAP system. The Implementation Guide is grouped
by SAP functional modules and business process that occurs in every SAP module. Most of the SAP consultant/ developers works
in design and development phase of a project using SAP SPRO.
IMG Information: – Under IMG information (Implementation Management Guide), we can check all the information about
customizing. Click on IMG Information will get the following screen with detailed customizing information.
Project Analysis: – With project analysis we can analysis, progress and obtain all the information of SAP projects.

Discrete Manufacturing or Shop Floor Control (SFC):

 Deals with lot size manufacturing.
 More varieties are made in small lots.
 Frequently settings are changes to accommodate various types.
 Sub-assemblies are made in small lots of different sizes of components.
 Products change frequently.
 Product costing & settlement done through production orders.
 Master Data includes Material Master, work center, Production version, Routing and BOM.
 Products, which are manufactured, can be easily assembled, dis-assembled & rework.
 E.g., Pumps, Engine, cars, airplanes.
Repetitive Manufacturing:
 Manufacturing of similar product in large quantities.
 Long duration manufacturing takes place.
 Least change or no change in setup to manufacturing.
 Production based on planned orders.
 Planning & manufacturing based on period wise.
 Product costing & settlement done through product cost collector.
 Master data includes Production Line (work center), BOM, production version, rate routing, Product cost collector.
 Products, which are manufactured, can be easily assembled, dis-assembled & rework.
 Backflush, REM profile used.
 E.g. Paper, Steel, Bottle.
Process Industries:
 Batch oriented process manufacturing.
 Process order-based manufacturing.
 Master data includes Resources (Work Center), Master Recipe (Routing), BOM, Material Master.
 Yield is not fixed due to chemical reaction yield values can be varied. E.g. X+Y=Z some 10 kg of X & 1 kg of Y gives yield Z is 10
kg.
 Products, which are manufactured, cannot be easily assembled and dis-assembled.
 It is impossible to be reworked upon these products.
 E.g. Chemical, Pharmaceutical, Food & Beverage industries.

Mandatory Fields in MRP 1,2,3,4 View.

MRP 1 = Base Unit of Measure, MRP Type, Lot Size, MRP Group, Reorder Point, Planning Time Fence.
MRP 2 = Procurement Type, In-house Prod, GR Processing, Schedule Margin Key, Safety Stock, Planning Calendar.
MRP 3 = Strategy Group, Availability Check, Forecast Requirements, Configurable Material.
MRP 4 = BOM Explosion Dependent Requirements, Production Version Tab, Production Version Indicator,
REM Indicator, REM Profile.

The Concept of MRP in SAP:

MRP is the planning tool in SAP, which will look at all aspects of a material and is highly based upon the master data of the
material. It is planning tool which helps in planning the requirement quantities & schedules of given material. It not only ensures
availability of materials, but also ensured availability of components below in the BOM structure. MRP looks at current inventory,
current requirements, and open purchase requisitions/orders etc. So if a material is required to satisfy a sales order and there is
no inventory, MRP will create a planned order if the material is to be produced in house. This planned order converted to a
production order. If the material to be procured, then MRP will create a purchase requisition, which will convert to a purchase
order.
MRP run procedure:
 Create requirement or demand in MD61.
 MRP run by MD01/MD02 for material.
 See the result in stock requirement list in MD04 (will generate planned orders, purchase requisition, schedule lines, scheduling
agreement)

MRP run carry out by:

 MD01 - Total planning Run (Plant Level)
 MD02 - single item multi-level
 MD03 - single item single level
 MD04 - Check stock requirement list
 MD05 - MRP lists
 MD12 - Change Planned Order
 MD13 - Display Planned Order
 MD14 – Individual conversion of planned orders
 MD15 – Collective conversion of planned orders
 MD16 – Collective display of planned orders
Major advantages of MRP:
 It reduces time.
 It reduces Manpower.
 It reduces unwanted Inventory.
 It save the cost of management.

Principles of Material Requirement Planning (MRP): -

In MRP requirements include sales orders, planned independent requirements, dependent requirements, material reservations,
etc. If the MRP run determines shortage quantities, the system creates procurement proposals, such as purchase requisition &
planned orders.
Purchase requisition & planned orders are internal planning elements that can be changed, deleted or rescheduled any time.
With in house production, the system creates planned orders for planning the production quantities. When planning complete,
planned orders are converted to production orders.
With external procurement, the system creates planned order or purchase requisition to plan external procurement quantity.
When planning is complete, planned order converted into purchase requisition which is converted into purchase order.

Settings of MRP: -
 Activate the plant for MRP in customizing.
 Carryout overall maintenance & plant parameters.
 Maintain MRP data in material master.
Precautions: -
 MRP type should not ND.
 Material status is valid.

What is Control Key? What is its use? (T code – OPSU/OP00)

Control Key controls the following keys and indicator to determine how an operation & sub operation is to be processed in task
list. It is used in the Routing.
Scheduling, Capacity Planning, Costing Indicator, Confirmation, Print operation, External Processing, Inspection Characteristics,
Auto GR.

Difference between MRP List & Stock Requirement List.

Stock requirement list (MD04) will show the present situation of any given material. This list is dynamic. MRP List (MD05) shows
results of last MRP run. This MRP list is static.
If MRP List is not dynamically updated, then why we should use it.
 To know exactly when the material was last planned by MRP.
 To see the planning results exactly how they were after MRP Run.
 To check the errors that happened during MRP.
 To analyze the exception message triggered during MRP run.

Planning Time Fence & Planning Horizon: (OPPQ)

Planning time fence is the time during which existing procurement proposals are not disturbed. Any new proposals or
requirement falling within the planning time fence, either system will create that proposal only after the planning time fence or it
will ignore that proposal.
It is depending on the MRP type. P1, P2, P3, P4 MRP type are used to this purpose.
Planning horizon is the period to which entire requirements will be planned by the system.
E.g. 90 days meaning, future requirement of up to 90 days will be planned.

Planning File:
 The Planning file contains the details of the materials that are to be included for the MRP run.
 MRP is to be activated for the plant; an entry for the material is to be made in the planning file for the specific plant for the
MRP run.
 MRP Run for a material occurs taking the information from the planning file.
MD20 = Create Planning File
MDAB = Create Planning File in Background
OMDU = Activate MRP & Setup Planning File

Different parameters that are required to in MRP:

Processing Key =
NetChange (NETCH): In this run, system will consider those materials, which has undergone some changes from the previous
MRP run.
NetChange in Planning Horizon (NETPL): In this run, system will consider those materials, which has undergone some
changes from the last MRP run. This run will consider the requirements in predefined planning horizon & not like the net change,
which check the future requirements.
Regenerative Planning (NEUPL): In this run, system will consider all the material irrespective of changes & it is time
consuming & not common in Production Planning.

Planning Process:
 The system checks the planning file
 The system calculates the net requirements for every material.
 The system calculates procurement proposals.
 Scheduling happens.
 The system determines the type of procurement proposals.
 During MRP run, the system checks some critical situations, which need to be worked manually, and hence it creates
exception messages.
Prerequisite for MRP:
Net Requirement Calculation
BOM Explosion
Lot Size
Scheduling
Activate MRP – OMDU
Setup Planning File – OMDU/MDAB/MD20
Carry out overall maintenance of Plant parameters – OPPQ

MRP control parameters control data.

 Processing key – Net change in the planning horizon. (NETCH, NETPL, NEUPL)
 Create Purchase Requisition – This field has an option for creating purchase requisitions/creating purchase requisitions in
opening period/planned orders.
  Scheduling Agreement (SA) delivery schedule lines – This field has an option for creating schedule lines/ creating
schedule lines in opening period /no schedule lines. To create a scheduling agreement there should be settings maintained in
a source list.
 Create MRP list – MRP list would be created and displayed when the planning run is executed and saved.
 Planning mode – In this field, the planning mode would be maintained whether to run normally or delete and recreate all
planning data or re-explode BOM and routing, if there were any changes made in those master data.
 Scheduling - Determines whether only the basic dates are determined for planned orders, or whether lead-time scheduling is
carried out as well. The indicator refers to all planned orders that are new, have been changed, or have been re-exploded for
the BOM.
Parallel Processing (T code - OMIQ):
The parallel processing use in total planning run in MD01 or MD40 that means planning run for number of plant at a time. By
using parallel processing procedures, you can significantly improve the total planning run. The parallel processing procedures can
run either on several servers or in several sessions. Therefore, we define this setting in OMIQ.
User Exit – Planning Run: Control the selection of materials for the planning run using SAP “User Exit”. With this user exit, total
planning for MRP, MPS or Long-Term Planning can be restricted to the materials. T Code - OMIX

Production Scheduling Profile (T code - OPKP):

In Production Scheduling Profile, we can: Specify certain business transactions are to carried out in production or process order
like
Order release at the time of order opened.
Generation of document link from Material master & BOM when order is open or release
Printing & Scheduling at the time of order release.
Specify that automatic goods receipt take place.
Specify capacity scheduling carried out in the capacity availability check
Specify that in case of confirmation:
 No shortage quantities are to be updated.
 No excess quantities are to be updated.
 Adjust quantities in order to actual values.
Automatic Batch creation when order open or release. Batch classification, extended classification & Batch split
Transfer requirements on order release.
Specify which order type is to be suggested depending upon business process (Like MTO, MTS, ETO)

Explain production-planning lifecycle:

Converting planned order to production order: First step to convert planned order to Production order.
Release Production Order: To start the production process, it is necessary to release the Production order. Until Production
order not released, execution of Production process is not started.
Issue Goods for Production Order: Issue goods is required for providing the goods to execute the Production Order. Once
goods are issue to the Production Order, document number can be updated in the system against that Production Order.
Production Order Confirmation: All the sub processed are executed in accordance with the required operations to confirm the
production as per Production Order.
Goods Receipt with respect to production Order: Once Production Order execution completed, goods produced with respect
to Production Order are received & placed in storage area.

Which all modules are integrated with SAP PP?

SAP PP & SAP MM:
 This involves movement of goods, auto receipt.
 It includes reservation of Production Order.
 Raising Purchase Order with MRP Run.
 Quotations & Vendor selection.
SAP PP & SAP SD:
 This is used to check availability of material for Production Order.
 To perform MRP Run, Requirement Types.
 Bill of Material components and operation.
SAP PP & SAP FICO
 Updating price in material master data.
 Defining Activity Type in Cost Center.
 Assigning Activity Type to Work Center.
 Cost Estimation.
 Production Cost Controlling.
 Posting account activities related to goods movement, material request. Etc….
SAP PP & QM
 Inspection Type 03 for Discrete & Repetitive Manufacturing.
 Inspection Type 04 for both Discrete & Repetitive Manufacturing.
SAP PP & WM
 Material Staging.
SAP PP & Project System
 Assigning the planning activities to WBS in the project.
 Running MRP at Project Level MD51.
 The procured material attached to WBS are reserved at project stock against the project.
 The component attached to network are planned at plant level & are reserved as plant stock.

Difference between Material BOM & Sales Order BOM

Material BOM: A bill of material that create for a material is known as a material BOM. Material BOMs represent the structure of
product manufactured within company.
Sales Order BOM: Sales Order BOM is used especially MTO Production as per requirements of customers. To meet the customer
requirements, we made sales order specific modifications to various assemblies.
Group BOM:
 It is created in engineering/design department and later it assigned to any plant.
 Group BOM is not specific to any plant.
 Group BOM is independent of plant and create the Group BOM using T code CS01, without entering a plant.
 Once created the group BOM, we can assign to individual plants using T code CS07.
 Be aware, if you make any changes in the group BOM it will affects all the plants assigned to it.
 Group BOM is maintained at client level and then we can assign it to various plants, as we want.

BOM Usage Entries:

 Production
 Engineering/Design
 Universal
 Costing
 Plant Maintenance
  Sales & Distribution
 Returnable Packaging
 Stability Study
Component quantity means = the quantity of a component needed to produce the base quantity of a product.
Base quantity means = Quantity to which all component quantities in a BOM relate. Base quantity is produced quantity out of a
production order.
Component quantity will be entered for this quantity. This base quantity will be used in BOM explosion at the time of MRP and
costing.
If we are producing, 100 kg of A finished good, with components of 20 kg B, 30 kg C, and 50 Kg D materials. Here, base quantity
is 100. Ultimately, base quantity should be equal to the quantity of components in the BOM.

MRP Strategies Overview (T code - OPPS)

Make-to-stock
10 - Make to stock production
11 - Make-to-stock production/gross requirements planning
30 - Production by lot size
40 - Planning with final assembly
70 - Planning at assembly level
Make-to-order
20 - Make to order production
50 - Planning without final assembly

Important Fields in Planning Strategy:

 Requirements Type of Independent Requirements (Gross planned indep. Reqmnts, MTO, Planning with Final Assembly,
Planning without Final Assembly, Planning for Assemblies, etc),
 Requirement class
 Consumption (Consume Planning with Assembly, Consume Planning without Assembly, Consume Planning Material),
 Planning Indicator (Net Requirement Planning, Gross Requirement Planning, Single Item Planning)
 Requirements type of Customer Requirements
 Requirement Class
 Allocation Indicator (Consume Planning with Assembly, Consume Planning without Assembly, Consume Planning Material),
 Requirement Planned or requirement not planned but displayed, Requirement neither planned nor displayed.
 Assembly Type, Order Type, Availability Check, Requirement Transfer, Requirement Reduction, Component Availability,
Capacity Check
 Configuration Mandatory, Configuration allowed, Configuration not allowed
 Configuration Consumption

Make To Stock (MTS) Strategy (10/11/30/40/70)

This is Planning strategy where stock is produce without sales order. It is used to meet customer demands in future. It reduces
delivery time. When use planning strategy 10, only PIR quantity will consider for MRP run & sales order are ignored. In this PIR
requirement type is LSF & is reduced when we deliver stock to the customer.
When we use planning strategy 40, for MRP run maximum 2 PIR’s & Sales order can be considered & PIR is reduced when enter
the sales order. PIR requirement type is VSF in this case.
Difference between strategy 10 & 11:
In strategy 10, the system considers the plant stock during net requirements calculation. E.g. The spare parts like Nuts, Bolts
Allen Keys, screws, washer can be stored and later can be sold to customer.
Strategy 11 the system does not consider the plant stock.
E.g. Plant Stock 100 pcs, PIR 200 pcs.
In strategy, 10 planned orders will be created for 100 pcs during MRP Run.
In strategy, 11 planned orders will be created for 200 pcs during MRP Run.
Reduction of PIR:
In the Strategy 10 Goods issue for Delivery reduces the PIR.
In the Strategy 11 Goods Receipt for Production order reduces the PIR.
Strategy 10 Requirement Type = LSF Strategy 11 the Requirement Type = BSF
This strategy 11 is particularly useful if we need to produce, regardless of whether we have stock. This strategy is often found
useful for steel, fertilizer, or cement manufacturing because they cannot shut down production. A blast furnace or a cement
factory must continue to produce, even if this means producing stock.
If the products are made irrespective of market fluctuations and it is always a demanding product, Make To stock strategy of 10
or 11 may be used.
If it is difficult to forecast and the demands are always fluctuating, then strategy 40 may be used.
E.g. Plant stock 200 pcs, PIR 300 pcs, and sales order 600 pcs. In strategy 40, sales order consumes the PIR.
 If sales order does not exist – planned order will created for 100 pcs (PIR- stock)
 If sales order exists – planned order will be created for 400 pcs. (Sales Order – stock)
Make To Order (MTO) Strategy (20/21/25/26/50)
This is planning strategy, finish products are not produced until we received sales order from customer. For MRP run, only
consider Sales Order. In MTO strategy, we can produce sales order stock & can deliver to specific customer. Use planning
strategy 20 for MTO process & planning strategy 25 is used to produce product variants & there were request for variant products
from customer. Each product is specifically produced for an individual customer; therefore the finished product is rarely placed in
stock.

Production by Lot Size for Sales & Stock Order (30)

This strategy is useful for companies that mainly produce for major customers but who also require the option of selling smaller
requirements from stock. Several sales orders, depending on the dates, can be grouped together to be produced in single lot. In
addition to the recognition of Sales Orders, this strategy will also plan to cover PIR’s like MTO.

MRP group (T Code – OPPR):

The MRP group contains all the materials from the point of view of MRP for assigning special control parameters for the total
planning run. MRP group contains control parameters like Planning Horizon, Strategy Group, Order Type, Planning Time Fence,
BOM explosion, safety stock, Direct Procurement, MRP Creation Indicator (Create Purchase Requisition, Create MRP Lists,
Schedule Lines) etc…
All parameters are grouped together under one MRP group and that can be assigned to materials.
Important steps in Legacy System Migration Workbench (LSMW):
LSMW is the workbench to copying data from Non-SAP system to SAP system.
 Maintain Object Attributes
 Maintain Source Structures
 Maintain Source Fields
 Maintain Structure Relations
 Maintain Field Mapping & Conversion Rules
 Maintain Fixed Values, Translations, User Defined Routines.
 Specify Files
 Assign Files
 Read Data
 Display Read Data
 Convert Data
 Display Convert Data
 Create Batch Input Session
 Run Batch Input Session
Types of LSMW: Standard Batch/Direct Input, Batch Input Recording, BAPI (Business Application Programming Interfaces), IDOC
(Intermediate Documents).

PRT (Production Resource Tools) in SAP PP:

PRT (Production Resource Tools) are moveable operating objects used to perform repeated activities in plant or production
process, for example, documents such as drawings or programs for which document management functions are used. Various
other PRT components include:
 Engineering drawings
 Programs
 Jigs
 Fixtures
 Measurement Instruments

Difference between by-product and co-product:

A co-product is produced along with the main product and carries equal importance as the main product. Whereas a by-product is
not a planned product and is produced after carrying out the process. E.g., Ethanol is a byproduct of a sugar industry. We need to
define both in BOM. Co-product must have costing value, settlement rule and mandatory with the main product. By product has
no costing and settlement rule.
If we look at a petro chemical refining industry their main input material will be "Crude oil" during refining will get "Petrol",
"Diesel", "Kerosene", "Naphtha" & "Water" etc...
So the whole of the production cost will goes to all Petrol, Diesel, Kerosene and Naphtha are also sellable. Water is not sold out,
but is being used internal for the operation.
In this scenario "Petrol". "Diesel", "Kerosene" and "Naphtha" are defined as co-products in the material master. And the cost
which needs to be distributed among them are in the ratio 30:30:20:20, so in the joint production details we select the
apportionment structure, and here we define the equivalence number by entering the materials and numbers as required by us
as 30:30:20:20.
Now BOM is defined for the main product "Petrol”, “Diesel", "Kerosene", "Naphtha" and Water are defined in -ve quantity. Here
the definition of water goes as "Byproduct". Crude oil is defined as component in +ve quantity. Now during order costing/product
costing/settlement considers the entire cost of production based on the crude oil cost and infrastructure cost and it splits into the
ratio defined in the equivalence number.

MRP controller: (T code – OMD0)

The MRP controller is a person or a group of persons responsible for monitoring material availability.
Every material that is relevant to the planning run must be assigned an MRP controller number in the material master record.
In addition, we can define a person or a group of persons, who are to be informed if we send a mail from the MRP list or
stock/requirements list to the MRP controller for the material displayed.
We can also determine a special person for backorder processing who receives a mail if a goods receipt was posted for a missing
part. We must enter the mail name of this person in the field entitles, recipient name.

REM Full Cycle in SAP PP in Repetitive Manufacturing:

Company manufactures products in large numbers & quantity based & period based.
1. Master Data -
 Create Material master - MM01
 Create BOM - CS01
 Create Work Center – CR01
 Create Rate Routing - CA21
 Create REM profile - (OPP3/OSP2)
 Assign BOM selection method = 2 & 3 (Prod version) in MRP 4 view
 Repetitive mfg indicator – MRP 4 view in MM01.
 Assign the REM profile to a material – MRP 4 view in MM01.
 Create Valid Production version - MRP view in MM01 & Check REM Mfg. Indicator
 Assign the BOM and routings in Prod. Version
2. For Preliminary Cost Estimate:
Create version specific product cost collector for Header material and preliminary cost estimate - KKF6N as per the settings in
REM profile. -
3. For standard cat Estimate:
Create standard Cost estimation (CK11N)
Standard cost Estimation Mark & release (CK24) we can do any one of the cost estimation as per the settings in REM profile.
4. Create PIR in MD61.
5 .Run the MRP for header material - MD01/MD02 - results run scheduler (PE type Planned order) will be created. Here planned
order cannot be converted to Production order.
6. Use planning table for scheduling and capacity planning - MF50. Here we can assign production quantities to production line.
Line loading use to tell that which planned order has to be executed on which machine/work center.
7. Use Pull list for material staging (if material shortage exists in production location) - MF60
8. Backflush (confirmation) the planned order - MFBF. Results planned order will Reduced and GR,GI, activity cost will be posted.
9. To see Backflush documents MF12
10. Then Go to KKF6N to see the Manufacturing cost.
11. Overhead calculation - (CO42)
12. Variance calculation (KKS6)
13. Settlement (CO88/KO88/KK87)

Parameters in REM Profile:

Goods issue backflush at goods receipt posting, Automatic GR posting when Backflushing, Mandatory/optional Reporting point
backflush, Error correction for Backflushing, Backflush using standard cost estimate or product cost collector, Planned order
reduction, Firming logic (Do not firm/always firm/firm within planning time fence), Create planned orders when reversing, crate
requirements for phantom assemblies, movement types (Goods issue/ goods receipt/Reversal)

Process Flow in Discrete Manufacturing:

 MM01 - Create Material
 CS01 - Create BOM
 CR01 - Create Work Center
 CA01 - Create Routing
 MD61- Create PIR
 Run MRP for the material (MD01 – Total Planning, MD02 – Multilevel, MD03 - Single level)
 Stock Requirement List (MD04) or Evaluation through MRP List (MD05)
 CO40/COHV - Convert Planned Orders to Production Order OR CO01 - Create Production Order
 Production Order confirmation - CO15, Production operation confirmation for Time ticket - CO11N.
 Goods Issue against the production order in MIGO/MB1A – 261 - Movement type.
 Good Receipt against the production order in MIGO/MB31 – 101 - Movement Type.
 TECO or Closed (CLSD) the production order.
 Overhead calculation - (CO42)
 Variance calculation (KKS6)
 (CO88/KO88/KK87)- Order Settlement.
KO88= Individual settlement of production/process order.
CO88= Collective settlement of production/Process orders.

What is Backflush, the places where the backflush is used?

Backflushing is nothing but automatic goods issue at the time of confirmation of production order. System will automatically
posts the goods issue when we confirm the operations/order. No need to do manual issue. It will reduce the effort. It can be done
with 261-movement type.
E.g., when a 4-wheeler automobile is rolled out from assembly line, 4 wheels & Tyres are consumed and issued to production
order automatically through backflush in the system.
Assembly line picks the material from stores/ Assembly line and use. No Physical issue & Manual posting (Goods Issue) by Stores.
Backflush used for material, which are a must and having fixed relationship.
In SAP, Backflushing can be carried out in 5 ways:
 Material Master-MRP 2 View
 Work Centre- Basic data Tab
 Routing - Component assignment
 Production Version – Production version tab in MRP4 view (REM Allowed)
 Production Order- Component overview screen

Difference between Routing & Rate Routing.

Routing:
 It is used for discrete manufacturing.
 It has a set up time, machine time & all other activities.
 Mainly used for order-based costing.
 Use t code CA01 to create routing.
 Use Standard value key SAP1 in work center.
Rate routing:
 It is used for Repetitive manufacturing.
 It has no set up time instead of that it has rate-based timings. ie, quantity & cycle time.
 Mainly used for period-based costing.
 Use t code CA21 to create rate routing.
 Use Standard value key SAP3 in work center.
SAP Rate Routing vs. SAP Routing
SAP rate routing has same behavior and structure as SAP PP routing. However, there is no alternate sequences in SAP rate
routings. SAP routing will be generally used in discrete manufacturing whereas SAP rate routing will be used in repetitive
manufacturing.
Reference Operation Set (ROS) (T code – CA11): Reference operation set is a set of operations, which will be frequently
used in different routings. While creation of routings for different products, & if the operations are common, maintain reference
operation set & call for while creating the routings.
Task List: SAP task list contains general information like operation details, component required for an operation/activity, etc.
Task list shows which operations and list of operations required to produce a product. It involves the work center along with Set
up Time and Base unit Quantities. Different Operations are performed at different work centers. The purpose of task list is to
define the sequence of operations performed to manufacture semi-finished or finished goods.

Types of scrap: There are three types of scraps used in SAP PP:
Assembly Scrap
Component Scrap
Operation Scrap
Assembly Scrap – During the production of an assembly, a certain amount of scrap always occurs due to various reasons. To
produce the required lot size it is always necessary to increase quantities and activities used by the system.
Settings –Maintain the assembly scrap in the material master (MRP1 view) as a percentage.
Component Scrap – Sometimes a particular component always consumed more during the production process than the planned
one. In that case, we use component scrap quantity to achieve the production quantity. Component scrap increases the
dependent requirements quantity of the component.
We can maintain component scrap: In the BOM item – In this case, the component scrap is only relevant for this particular BOM.
Settings – In the MRP 4 view of the material master record – In this case, the component scrap is relevant for all the BOMs that
contain this material.
For example, if component scrap is defined as 10% and the component Quantity is defined as 100 kg, the system
automatically calculates the required component quantity as 110 kg to account for the operation scrap.

Operation Scrap – During Production process after a particular operation, we may get some loss. Need to adjust the quantity,
standard values and other values of the subsequent operations. For this, Operation scrap used in production.
Settings – You can enter operation scrap (in %) in the routing and in the BOM.
For example, if operation scrap defined as 5%, and the component quantity is defined as 100 kg, the system
automatically calculates the required component quantity as 105kg to account for the operation (during
production) scrap.

Need of production version (T code - C223):

A production version determines which alternative BOM used together with which task list or routing or master recipe to produce
a material. In a production version, maintain the combination of BOM and routing. Use the production versions based on:
 Lot size qty.
 BOM explosion dates
 Based on MRP Group

What is MRP profile?

MRP profile defined as a key that contains a set of MRP view field values to be maintained during material master creation. It
helps to minimize the repetitive task of maintaining the MRP fields. This profile has two types of values – fixed values and default
values.
 Create – MMD1
 Change - MMD2
 Delete – MMD6

Difference between Customer Independent requirement (CIR) and Planned Independent requirement (PIR)?
PIR: Planned Independent Requirements are planned production or sales quantities that are based on some sort of forecast
procedure (e.g. Material Forecast or SOP procedure). These values used in MRP to calculate procurement and production
quantities for a material. PIR is not dependent on any requirement. We use T-code MD61/MD62/MD63 for maintaining the
quantity based on the forecast (history and future trend). Mainly used in MTS scenario.
CIR: In Customer, independent requirement the customer details like date and requirement type are required and when planned
order created has assigned to the CIR. It created by using T-code MD81/MD82/MD83. Mainly used in MTO scenario. The customer
requirements that we create in MD81 have the same requirement as the customer order created in T code VA01. This option
mainly used to simulate or when we do not have the SD module.

Schedule Margin key (T Code - OPPQ):

Schedule margin key is used to define the floats to determine the production dates in Order.
Opening period – Number of working days between the order creation date and the planned start date. This time is available for
the MRP controller to convert a planned order into a purchase requisition or a production order.
Float before production– Number of working days between the order start date and the scheduled start date; used as a float in
production.
Float after production – Number of working days between the scheduled finish date and the order finish date; used as a float
in production scheduling.
Release period – Number of workdays between the planned start date and the order release date. If the order release indicator
is set, a background program that takes all dates into account releases the production order.

Steps involved in Variant Configuration:

 Create a material (MM01) – KMAT material type with Item category (002)
 (CT04) - Create a Characteristic
 Create a class (CL01) and assign characteristics to class – In the variant configuration, class type (300) is used.
 Attach the class to KMAT Material.
 Create a Configuration Profile (CU41) – It contains control data for the configuration process and result.
 Create a super BOM (CS01) – Contains the entire component required to manufacture all variants of the product.
 Create a super routing (CA01) – Contains all the operations for producing all variants of the product. Super Routing is combination
of Operations, Operation Sequences & Production Resource Tools (PRT) are needed for all variants of the configurable material.
 Create dependency (CU01) – Create dependency for all the material of BOM.
 Assign the dependency to material in BOM.
 Assign the same object dependency to the super routing operations.
 Scenario testing (CU50) – Check, whether the system is selecting appropriate BOM material and operations for given
characteristic values.
 Maintain pricing and condition record for each variant – use T-code VK11.
 Create a sales order for variant material and select its characteristic value assignment in the sales order.
 Run MRP for the sales order, will get planned order. Convert it to production order.

Dependency types in variant configuration:

Dependencies will Control which components are selected from a bill of material (BOM) and which operations are selected from a
task list.
The system supports the following types of dependencies:
 Preconditions – to hide characteristics and its values
 Selection conditions – to select characteristics or values
 Actions – to infer a value for characteristics but obsolete.
 Procedures – to Infer value for a characteristics
 Constraints – It provides value assignment and consistency check in a single level and multi-level configuration. Additional
reporting options for equations, variant tables, and variant functions.

MRP Types:
MRP type controls which MRP procedure can be used to plan a material and which MRP parameters can be entered when
maintaining material master. We have to enter these MRP type on MRP 1 view of material master record.
ND => No MRP
PD => MRP
VB => Manual reorder point planning
VM =>Automatic reorder point planning
V1 => Automatic reorder point planning including external requirements
V2 => Automatic reorder point planning without external requirements
VV => Forecast-based planning
XO => External Planning
Demand Management: Demand Management is used to determine requirement quantities and delivery dates for finished
products. To create a demand program, Demand management uses PIR’s & Customer requirements.
Demand Management provides a demand program, which is used by MRP to generate production plans. Depending on the
planning strategy chosen in the material master, the demand program can use forecasts of demand, actual demand, or
combinations of both. Actual demand is created in sales order management (customer orders) and materials management
(warehouse replenishment). Forecasts of demand are represented by “planned independent requirements” which are copied
from the Sales and Operations Plan.

Master Production Scheduling (MPS):

MPS is done for the Critical/Final products for which the company depends for Profit sharing or which will effect the Balance
Sheet. MPS is done only for One-level of BOM. MPS is one of the Type of MRP, but MPS is done before MRP.
MRP's purpose is to make sure that the right material is available at the right time. It can plan even the dependent items or
assemblies, based on the requirement or planning from MPS.
1. In the MPS run, the materials marked MRP Type as MPS (i.e. M0, M1, M2, M3, M4) only will be included. The planned orders are
created at the MPS Material level only.
2. The BOM is exploded for next one level down only. Further level will not be exploded, that means Dependent requirements are
created for the BOM components one level down, further level will not processed.
This allows MRP controller can ensure that the MPS items are correctly planned before any MRP run takes place. This allows the
planner to check and change the planning result, before any MRP run takes place for other materials.

For example, consider this business scenario, suppose we wants to do planning for finished Goods once per week, but it is
necessary to do planning for their components on daily basis.
So in this case, we can define Finished Goods with MRP type as MPS and all the components with MRP type as MRP.
MPS run is carried out before the MRP run. So that the Planner can ensure planning result before the MRP run. MRP Run will plan
all BOM level of Materials.
 Maintain MRP Type M0, M1, M2, M3 or M4 depending on the firming type (planning time fence) in MRP 1 view for material –
MM01
 MD61- Create Planned Independent Requirements (PIR).
 Run MRP MD40 – Total Planning MPS MD41 – Single Item Multilevel , MD42 – Single Item Single level
Create MRP Type: T Code - OMDQ
Difference between MRP & MPS:
MRP plan items that have dependent demand. MPS plan items that have direct demand or independent demand. With
independent demand that comes directly from customer. MPS runs at only one level of BOM. System does not plan the MPS items
through normal MRP. MPS aim is to reduce the storage costs & increase the planning stability. MPS can be run weekly based on
forecast.

Consumption Based Planning (CBP):

 It uses the past consumption data to calculate the future requirements.
 It has no relation with the independent or dependent requirement instead; it is triggered when the stock falls below the
reorder point or by forecast requirements.
 E.g. Raw materials.
It has three types of MRP procedures:
 Re-order Point Planning.
 Forecast Based Planning.
 Time Phase Planning.

Re-Order Point Planning: (MRP Type – VB)

 Procurement is triggered when the sum of plant stock and firmed receipts fall below the reorder point.
 Reorder point covers the material requirements during replenishment lead-time.
 The safety stock takes care of both excess material consumption within the replenishment lead-time and any additional
requirements that may occur due to delivery delays.
Re-order point defined by: Safety stock, Replenishment lead-time, Average consumption.
Safety stock defined by: Past consumption data, Vendor/ production delivery timelines, Service level, Forecast error.
For Example: A material with reorder point is 80 units, and then system will try to create planned order, once stock falls below
80 units. Assume that, current stock is 40 units & firmed receipts are 20 units, making 60 units, which is still below 80 units. In
this case, system would create planned order of 20 units to reach back to the level 80 units.
Automatic Reorder Point Planning: (MRP Type –VM)
A type of consumption-based planning, system calculates the reorder point & safety stock using past historical consumption data
to derive the future requirements. In this case, we need to extend the “Forecasting” view in material master with selection of
valid forecasting method.

Forecast Based Planning: (MRP Type - VV)

It is type of consumption-based planning, in which the historical consumption data is used to estimate/conclude future
requirements, which are directly used as requirement figures in next planning run. The forecast suggested by system
periodically.

Time Phased Planning: (MRP Type – R1, R2)

 It is type of consumption-based planning.
 It is used specially in case if the planning cycle is known.
 The materials planned using this is given an MRP date in the planning file.
 This date is set when creating the material.
Planned Independent Requirements (PIR): (T Code – MD61/MD62/MD63)
Planned Independent Requirements are planned production or sales quantities that are based on some sort of forecast procedure
(e.g. Material Forecast or SOP procedure). These values are used in MRP to calculate procurement and production quantities for a
material. PIR is not dependent on any requirement. We use T-code MD61 for maintaining the quantity based on the forecast (Past
history and future trend). It is mainly used in MTS scenario.

Planned Dependent Requirements (PDR):

Dependent requirements is demand that is dependent on another material.
Eg. Plan to sell 200 bicycles in month of January 2020 based on sales in January 2019. These 200 bicycles are PIR for January
2020.
Since every bicycle produces, using two pedals the 200 bicycles plan to sell January 2020 results in 400 pedals need to be
procure. These 400 pedals are PDR for January 2020.

Exception Message in SAP PP (T code OMD3):

During the planning run, the system recognizes exceptional situations where we have to manually reprocess the planning result
and it records these situations as exception messages. Exception messages depend on the transaction being carried out and are
meant to inform an important or critical event (for example, start date lies in the past, safety stock has been exceeded). There
are eight major groups.
Message of group 8 is the termination message, which needs to be attended immediately.
By means of the exception messages, we can easily sort out any materials that we need to reprocess manually. Special search
and selection functions are available for this in the evaluations for MRP.
The system displays the exception messages in the evaluations for MRP. Exception messages refer to an individual MRP element.
If several exception messages occur for one MRP element, the most important ones are stored.

Selectio Excepti
Exception Message
n Group on
69 Recursive BOM components possible
02 New, and opening date in the past
1
05 Opening date in the past
03 New, and start date in the past
2 06 Start date in the past
63 Production start before order start
04 New, and finish date in the past
3 07 Finish date in the past
64 Production finish after order finish
4 01 Newly created order proposal
42 Order proposal has been changed
44 Order proposal re-exploded
46 Order proposal has been manually
changed
 61 Scheduling: Customizing inconsistent
62 Scheduling: Master data inconsistent
80 Reference to retail promotion
82 Item is blocked
50 No BOM exists
52 No BOM selected
5 No BOM explosion due to missing
53
config.
55 Phantom assembly not exploded
25 Excess stock
26 Excess in individual segment
Coverage not provided by master
40
plan
56 Shortage in the planning time fence
Disc. matl partly replaced by follow-
6 57
up
Uncovered reqmt after effective-out
58
date
59 Receipt after effective-out date
70 Max. release qty - quota exceeded
96 Stock fallen below safety stock level
10 Reschedule in
15 Reschedule out
7
20 Cancel process
30 Plan process according to schedule
8 98 Abnormal end of materials planning

Batch Management:
A batch is group of materials combined into one quantity for various reasons. Like materials with same characteristic & values
are grouped into a batch. Batch can be assigned to client level, plant level & material level.
The batch is unique number system generates for the single lot of manufacture. Batch management is an integration between
SD, MM, PP & WM. In Material Master Work Scheduling View, activate Batch Management to the materials, which are to be
handled in batches. A batch is the specific quantity of a material produced in a single manufacturing process, i.e., under the
same conditions, thus featuring identical properties. Each batch of material is given a batch number. Each batch of a material is
tested with regard to relevant characteristics to ensure it meets the values or within the range for those characteristics.
Batch management is an important part of a company's ability to procure, produce, store, and sell material. The batch defines a
quantity of material by characteristics unique to that batch. Those characteristics determine how the material in that batch is
used, sold, or moved.
E.g. In chemical industry a specified number of containers of a specific product may be considered batch if they were produced at
the same time & have same physical & chemical properties.
Batch record indicates that the batch confirms to the current Good Manufacturing Procedures (GMP). The batch info record
contains the specific information about the product like process tested, analytical methods & test results.
This is very essential component in Food & Beverage Industries, Pharmaceutical and chemical industries.
Purpose of Batch:
 To track the defective goods.
 To track the expiry date of goods.
 To track the person responsible.
 Ingredients of a product in that batch.
 Production or Process Order number.
 Customer returned products with batch could be traced quickly.
 Batch number can help in identifying the vendor by maintaining proper batch numbering.
 To track the shelf life of goods.

Batch Determination:
It is important process used in SD, PP, MM & WM. Batch determination uses strategy types, search strategies, and search
procedures for a batch to be identified in the relevant area. We will receive one material in a number of batches, and this will be
kept in storage location stock or in warehouse storage bins. When we want to issue the material to production, we need to have a
strategy to choose different batches. Defining the strategy in the system where the system determines and offers up the right
batch to pick is the process of batch determination. Batch determination uses the condition technique. Batch determination can
be used in Production, production order, goods movement, sales order/delivery, cost center, and transfer order functions.
Create Batch Determination Condition tables: Batch determination condition tables once created become the key
combination fields for searching batches .The Condition Tables are created separately for Inventory Management, Production,
WM and Sales. T Code - OPLB
Create Batch Determination Access sequence: Batch determination access sequences have multiple condition tables (key
combinations) assigned in a sequence of priority. This facility allows creating data for many key combinations so that even if the
search of batches fails on the first key combination condition the rest in the priority would help in search.
Create Batch Strategy Types: The strategy type’s configuration holds the selection criteria and the sort rules used in batch
determination techniques. Strategy types are used ultimately to create the batch search master data or batch search condition
record so that the system would know the exact level at which search for batches is to be carried out along with the
selection/sort rules of these batches.
Create Batch Search Procedure: A Batch Search procedure contains multiple strategy types assigned in sequential priority.
The Batch search procedure thus becomes the final configuration, which includes the total search configuration together. As
before, the Batch Search Procedures are created separately for IM, Production, WM, and Sales.
Batch Search Procedure Allocation and Check Activation: In this step, we allocate the batch search procedure to the
respective modules. In the case of Inventory Management, the Batch search procedures are assigned to the Movement types. In
the case of Production or process orders, the batch search procedures are attached to the production plants and order types.

Number Range (T code – OMID/CO82):

A Number range is a Group of numbers to which the unique-Id created for an SAP Object belongs. In each module we have
master data having SAP objects such as Equipment, Notification, Order, Measuring Point, Maintenance Plans etc. in PM, Material
number, Material Document, Purchase Requisition, Purchase Order in MM, Sales Order, Sold-to-party etc. in SD, Production Order
in PP, Inspection lots in QM.
Types of Number Ranges:
 There are 2 categories of number ranges:
Internal numbers: These are purely numbers. System generates the number (within the range we have specified) next to the
immediate previous allotted number. E.g. 0-100,101-1000, 1001-9999…
External numbers: This is where the person creating the SAP object (e.g., Equipment) is required to enter his choice of number.
This will be as per the alphanumeric pattern that already maintained while creating the number range.

Background Process in Production Order:

When a user creates a production order, the following actions are carried out by the system:
 A routing is selected; its operations are transferred to the production order.
 The bill of materials is exploded and the items in the bill of material are transferred to the order.
 Reservations are generated for bill of material items held in stock.
 The planned costs for the order are generated.
 The capacity requirements are generated for the work centers.
 Purchase requisitions are generated for non-stock items and externally processed operations.

PI Sheet:
A PI sheet is used as an input, output form for plant parameters, and is customizable according to individual production
processes. This customized PI sheet is part of either configuration activity or master data management. Due to its intuitive
features, a PI sheet can be used for many functions, such as calling up a transaction while remaining in a PI sheet, displaying
documents, recording shift highlights, posting GI/GR, undertaking confirmation of a phase, calculating results, and jumping to
record results for quality inspections. The process operator fills in the PI sheet, which contains the provision to record actual
material consumption details and marks the status of the PI sheet as Complete. The PI sheet Process Manufacturing Configuration
contains user-defined details, for example, process notes, process steps, input fields, calculations, options to sign the phases of
the PI sheet, details to enter GI (consumption), and navigation to the confirmation screen or to record in-process quality results.
When the process operator sets the status of the PI sheet to Complete, the system sends the data back to the SAP system in the
form of process messages.

Master Recipe (Same as Routing) (T code – C201/C202/C203):

Master recipes provide the process-specific information that is used to execute detailed scheduling and production of orders.
However, they are independent of concrete dates and contain no equipment control functions. Master recipe is like Routing,
which will process steps to produce a material.
Master recipe will have Operations and Phase, operations are 0010, 0020, 0030 and phases related to operations are 0011, 0022,
0033 respectively. Each operation can have one or more phases attached to it. Phases are like sub operations. Further, we can
attach Process instructions to these phases in master recipe. When we create a Process order, control recipe is created. In PI
Sheet, we can give values to Process instructions attached.

Creation of Order Type:

OPJH - Maintain Production Order Types
OPJK - (Material Availability, PRT Availability, and Capacity Availability at the time of Order Open creation or Release)
OPK4 - Order Confirmations parameters (Control Data, Check Operation Sequence, Under delivery tolerance, Over delivery
tolerance, Inspection Results, Goods Movements, Confirmation Types, Error Handling in Actual costs, goods movements, selection
of quantities, dates, activities)
OPL8 - Order Type-Dependent Parameters (Master Data, Routing, Operation, BOM Application, Batch Determination,
Documentation of Goods Movements, Cost Accounting)
OPU3 - Define Scheduling Parameters for Production Orders (Production Supervisor, Detailed Scheduling, Adjust Scheduling,
Generate Capacity Requirements, Scheduling Control, Reduction Type, %Reduction in Floats)
OPJJ -Scope of Availability Check (Availability Check, Checking Rule, Stock, Future Supply, Requirements, Replenishment Lead
Time, Daily Requirements, Individual Requirements)

Significance in Order Type:

 Decide Production version select manually or automatically.
 Decide how routing are selected.
 Decide how documentation of GR & GI happens an order.
 Decides how status changes happen in order header, operation, materials and for PRT.
 Decides when the costs should be calculated i.e. whether while release or saving.
 Assign the number range to the order type created.
 Decide order type like normal order, rework order, Assembly order.
 Confirmation parameter requires completing the production.

Implementation:
ASAP Methodology (Accelerated SAP Methodology):
ASAP, accelerated SAP implement, means to go through the SAP implementation process efficiently. Accelerated SAP
Methodology is proven, repeatable and successful approach to implement SAP solutions across industries and customer
environments. Accelerated SAP provides content, tools and expertise from thousands of successful implementations. Based
Accelerated SAP (ASAP) Implementation Methodology, there is a timeline which includes five paths.
 Project Preparation
 Business Blueprint
 Realization
 Final Preparation
 Go Live & Support

Phase I - Project Preparation: Kick of meeting is conducted with all the consultants & client. KT (Knowledge Transfer) session
will be done.
Each consultant’s roles & responsibilities will be decided. Project start date & end date and each phase start date & end date and
milestone in each phase will be decided. Project scope will be decided. (Scope means which modules to be implemented). When
workshop sessions conducted will be decided if any new tasks will be training conducted to consultants.
Phase I deliverable or output is Project chart & scope of the project.

Phase II – Business Blue Print Preparation: Each module senior consultants interact with client core team members &
information gathering from them & with that information Blueprints are prepared in MS word document. We can prepare “AS-IS”
business process document which contains how many businesses process procedure client is following and “TO-BE” document
which contains series of Questions & Answers. “TO-BE” documentation will be prepared with the help of standard SAP Q&A DB
(Questions & Answers Data base Table) (T code = SQADB01). At the time of Blue Print Preparation, some “GAP’S” are found &
those are listed in Blue Print “GAP Analysis” phase. We also prepare Blueprint that mentioned all the terms & conditions & get it
signed with Client. Only after client signed off, we start Realization.

Phase III – Realization: In this phase, SAP data is configured in SPRO based on Blue Print. The purpose of this phase is to
implement all the business process requirements based on Business Blueprint.
 Type of Configuration:
 Base Line Configuration
 Final Configuration
Base Line Configuration: Configuring of standard SAP settings without ABAP development.
Final Configuration: Configuring of SAP data with ABAP developments. Such as RICEFW (Reports, Interfaces, Conversions,
Enhancement, Forms, Workflow). In Blue print, whatever “GAP’S” are found that “GAP’S” will be closed in the final configuration
with the help of ABAPER. “GAP’S” can be found out at the time of Blue Print as well as Realization Phase. In Realization phase do
the unit tests at end user side within the module & it will be done in development server.

Phase IV – Final Preparation: In this phase Integration Test “UAT” (User Acceptance Test) Data Upload (Master Data &
Transaction Data) End User Training & Training Manual Preparation & “Cut-Over Activities” will be done.
Cutover activities means when data has to move to Production Server & when Go-Live has to start & when recreation test has to
do.

Phase V – GO-Live & Post Implementation Support: From Go-Live date client starts using SAP system for their business &
whenever user-getting issues we have to give support to rectifying the problems with some cost & time period based on SLA
(Service Level Agreement). Ensuring system performance through SAP monitoring and feedback.

Configuring Shifts Sequences- (T Code – OP4A)

Shifts sequences define the working schedules and patterns of the work center or resources wherever the shift sequence is
assigned. The number of hours a work center or a resource can work is defined through the Shift Sequences.
a) First - define the Break Schedules, in other words define the number of breaks and the exact time of a day when a break is
scheduled. Every break schedule or work break schedule has a name by which it is identified. We have to define the start of
break, end of break and break length.
b) Second - define the Shifts in a day - define the number of shifts in a day, that is the first shift, second shift, third shift etc.;
here we have to enter the shift number with the start time of shift, end of shift, breaks in a shift (breaks are defined through
break schedules defined in step 1).
c) Third - define the Shift Sequence - which means assigning the shifts defined in second step to the days in a week.

Costing:
When create an order, the system performs planned cost calculations within the order. When perform production execution
activities, such as GI, confirmation, GR, and recording of co-products or by-products, the system updates the actual cost and
presents a comparison of planned costs with actual costs.
The product cost controlling functionality is integrates with Controlling (CO) & PP. It helps to ensure that the total cost of goods
manufactured (COGM) and total cost of goods sold (COGS) are completely accounted for. To calculate
the COGM, we need to have information of the cost of all raw materials and components used. Also need to know the activity
rates for each work center (resource). The material and activities costs are also known as direct costs and are individually
assigned to the order without any allocation. Overhead cost is determined by overhead charges. Examples of overhead costs are
the electricity consumed in the production process and the salaries of employees involved in the production of goods.
There is also a method of assigning a costing sheet to an order type, which, for example, may contains details such as 2% of raw
material cost will equal the electricity cost of producing a material.
When an individual order is settled, the system updates the material price based on the price control. If the price control in the
material master (finished or semi-finished good) is a standard price, the system reflects all differences and variances to the price
difference account.
Once the order is crated or released, based on the BOM and Routing planned order cost will be calculated.
Actual cost will be calculated based on the actual component consumption and utility or activity utilization.

Schedule Lines: Schedule lines are created against scheduling agreement. A material, which is procured from subcontract &
we want delivery in particular days with schedule we can maintain scheduling agreement (T code – ME33). In source list, we will
maintain vendor, schedule agreement with validity dates and which agreement is relevant for MRP.
MD61 screen:
 The version number is used for organizational purposes for the creation and further use of the demand program.
 Versions can be set to active and inactive. Only active versions are included in the planning run.
 Using the version compare function, we can compare various versions of a demand program with each other.
Maintain requirements daily, weekly, monthly either for material, Product Group or Requirement plan. There is check box for
version indicator, this selection determines whether the version is active, that is, relevant to MRP. There are version like
Requirement plan, sales plan, Quota from sales plan, production plan, quota from production plan.

Scheduling:
Scheduling is used to calculate start date/start time and finish date/ finish time for a production order or operation.
Methods of Scheduling:
Basic dates scheduling: Basic dates scheduling is calculated by considering the values like goods receipt (GR) processing time, in-
house production time and planned delivery time from material master (MRP 2 view). It calculates basic start date and basic
finish date for an order.
Lead-time scheduling: Lead-time scheduling is calculated by considering values from routing operation times (setup, machine,
labor, etc.) And values from schedule margin key to calculate operation start date, start time, finish date and finish time.
There are different scheduling types commonly used in Production Planning and especially in production orders.
 Forward scheduling
 Backward scheduling
 Current Date Scheduling
 Only capacity requirements
Forward scheduling, system schedules the order based on basic start date and determines the schedule finish date.
Backward scheduling, system schedules the order based on basic finish date and determines schedule start date.
Current date scheduling, system calculates schedule finish date by considering schedule start date as current date.
Only capacity requirements scheduling, the system calculates the capacity requirements only. The individual operations are not
scheduled, and the basic dates are copied as operation dates.

Backward scheduling used when; we want to plan production based on required delivery date.
Forward scheduling used when, customer not demanding on delivery date
Backward Scheduling = Opening Period +In-house Time + GR Processing Time
Forward Scheduling = In-house Time + GR Processing Time

Capacity Planning: (T code CM01)

The main function of capacity planning is to check the load at Work Center & 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.
Capacity planning uses several types of display like evaluation line graphs & Gantt charts.
In capacity evaluation, determine available capacity & capacity requirement.
 T code CM01 – Put plant & work center.
 Capacity planning standard overview screen will appear.
 This screen shows capacity load with respect to week.
 Blue color shows capacity requirement, red color shows overload capacity & yellow color shows remaining available capacity.
 From this, we can analyze in which week capacity had overloaded.
 The detailed capacity list will be appear in graphical form.
 Eg. In 41th week requirement is 75 hours & available capacity is 52 hours & capacity load is 140%, it means that there is
overload on work center in that week.

Capacity Levelling: (T code CM21)

Capacity leveling is done through planning table, and we need to dispatch the orders to the Work Center in the sequence in
which they are supposed to be processed at shop floor.
The main objective of the capacity leveling includes leveling overloads at Work Center and to achieve optimum utilization of Work
Centers. 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.

Goods Receipt (T Code: MIGO) [Movement Type - 101]

Goods receipt is the phase where the ordering party receives the material and its condition and quality are verified. Depending
upon the movement type, stock is posted in inventory with the help of goods receipt. Goods receipt will show the increase in
warehouse stock. Goods receipt has two scenarios −
1. Creation of Goods Receipt
2. Cancellation of Goods Receipt

Reservation (T Code: MB21/MB22/MB23)

Sometimes, stocks are to be blocked in advance so that they can be made available at a particular point of time. This is known as
reservation. Reservation ensures that availability of stock at a particular time.
-MB21 – Create Reservation.
-Enter Date, Movement Type, plant
-Enter the order number against which we want to make a reservation. Provide the details of material and the quantity that is to
be reserved.
-Click on Save. Reservation is now made for the order.

Goods Issue (T Code: MIGO) [Movement Type - 261]

Goods issue means moving a stock out of inventory that may be due to several reasons like withdrawing of material for sampling
or returning the goods back to the vendor. A goods issue results in a decrease quantity in the warehouse stock.

MRP PP Evaluation:
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.
This role contains functions for evaluating the MRP result for in-house production. Use these functions to find information about
material availability and to recognize possible material shortage situations and exception situations quickly.

Product cost Collector (T code => Individual – KKF6N & Mass- KKF6M):
 Product Cost collector is one of the master data in REM scenario.
 Product Cost collector is used as a cost object in REM scenario, which means all the cost will be booked under this product
cost collector for that material.
 Whatever the confirmations that are done in MFBF, MF41, or MF42N, the cost will be debited or credited accordingly for that
material and the impact will be seen in the product cost collector.
 This product cost collector will be having an order number, which will be used for order settlement and variance calculation.
 For creating a product cost collector, we will require a production version.
 Whenever we do an assembly, activity, or component backflush, the cost will be booked under this product cost collector.

Inter Operation Time:

Queue Time: Time required material need to wait before processing in a machine.
Wait Time: Time required for material must wait after processing in a work center.
Move Time: Time required for material move to next work center for further processing.

Rounding Value (Tcode- OWD1):

In some cases, it’s useful to round the quantities of the procurement proposals. The system offers static and dynamic rounding
profiles. The static rounding profiles round up the value after a threshold value has been reached. If the rounding value exceeds
the threshold, the system continuously rounds the value until it reaches the next threshold.
Example: If the rounding value is 30 units, the procurement quantity is 75 units, and the minimum lot size is 15 units, then the
system always rounds up the planned order to a multiple of 30 units, specifying the rounding to a quantity of 30 units. In this
example, the system rounds off the procurement quantity of 75 units to 90.

In continuous production, the product is continuously produced, raw material is continuously supplied to the production line,
and the plant and machinery are in continuous operation. An example of this is fertilizer manufacturing, where the production
process is continuous, starting with production of ammonia from natural gas (methane) and continuing until the final
urea/fertilizer is produced. The process may find an interim storage in the form of bulk urea being stored in the warehouse before
the bagging process starts.
E.g. Tablet, Soft Gel Capsules, Syrups, Capsules, Injection Vials produced in the pharmaceutical industry.

In discontinuous production, the products are not produced in a continuous process. Instead, the material components are
provided and weighed out as required for each step of the production process. E.g. Food Processing.
Regulated production is used if the product quality requirements are very stringent, and specific industry standards must be
met. In regulated production, orders can be created only with approved recipes. If changes need to be made to master recipes,
these are subject to master data change administration procedures. The central master data elements in process manufacturing
are the material, the BOM, the resource, the master recipe, and the production version. E.g. Pharmaceutical or Cosmetics
Manufacturing

Subcontracting:
Process Flow:
 Create material master for Header material (Product) and component materials – MM01
 Make settings in Header material’s material master MRP 2 view for subcontracting. – MM02
 Create BOM for Header material – CS01
 Put requirement for Header material – MD61
 MRP run for Header material – MD02
 Convert Purchase Requisition to Purchase Order – MD04
 Issue component materials to Purchase Order - 541 movement – MB1B
 Goods receipt of the semi-finished material – MIGO

Intermediate Document (IDOC):

IDOC (Intermediate document) is a data file in a specified format exchanged between two systems to interpret data. Data is
stored in character format. Cannot be in binary format. It is also known as a collection of segments. A segment in turn is a
collection of fields. IDOC are stored in database. Tcode: WE02 Display the Idoc structure

Sender triggers the message as Outbound.

Receiver gets the message as Inbound.

IDOC STRUCTURE (WE02 and WE05, WE09 to display IDOC)

1. Control Record
2. Data Record
3. Status Record
Control Record:
 Control data is stored in EDIDC table. Can be identified via IDOC number.
 Direction 1 – Outbound and Direction 2 – Inbound
Data Record consists of the actual data present in all the segments.
 Data record is stored in EDID2 to EDID4 tables with EDIDD being the structure. SDATA field data in table reference
 Contains information like hierarchy of IDOC, name and number of the segment.
Status Record gives information on various stages of IDOCS, whether it is sent/received properly, and error information system.
Contains information like hierarchy of IDOC, name and number of the segment.
 IDOC status is attached at every stage/whenever error occurs
 Status record data is stored in EDIDS table
 Status 1 – 42 represents Outbound direction and status 50 – 75 represents Inbound direction
 Common status 51, 53 - Successful, 68 – Error no further processing for inbound idocs
 Common status 02 Error, 03 - Successful, 68 - Error no further processing for inbound idocs

Application Link & Enabling (ALE):

ALE stands for Application Link & Enabling, which links two systems. ALE is a technology that can enable exchange of data
between two different Systems (SAP to SAP or SAP- Non-SAP).

Electronic Data Interchange (EDI):

EDI is a tool that helps to transfer the data from SAP to Non-SAP or Non-SAP to SAP. We use EDI if the customer is using industry
specific documents. Industry specific docs are ANSI format. If we use EDI as a tool to transfer the data we require translators.
Standard message types from which data is sent from one system to another system:
Material Master MATMAS
Customer Master DEBMAS
Vendor Master CREMAS
Order  ORDERS
Delivery DESADV
Invoice INVOIC
T-Code: WE02/ WE05/WE07/WE09 –To display Idocs
T-Code: BD10 to send Material Master from sender to receiver.
T-Code: BD12 to send Customer Master from sender to receiver.
T-Code: BD14 to send Vendor Master from sender to receiver.
For Outbound Messages Number Range 0 to 49
For Inbound Messages Number Range 50 and above
Success message number in Outbound 03
Success message number in Inbound 53
Failure message in Inbound is 51
Advantages ALE/IDOCS:
Reduced Data entry errors
Reduced processing time
Availability of data in electronic form
Reduced inventories and better planning
Standard means of communications
Better business process

Long Term Planning (LTP): Long term planning (Simulative MRP) 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.
In T code MD61, put plant & version as “02” which as inactive version & requirements are considered in LTP.
 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.
In T code MS31 create planning scenario (numeric or alphanumeric value) with description & select LTP & press enter.
Enter planning periods month wise from date to till date & keep opening stock as blank which means that current stock will not
be considered in LTP.
BOM selection ID – 01 means that active BOM will be exploded in LTP run. In the same screen press Planned Independent
Requirements Tab & enter version 02 & planning periods. Put plant & click on confirm & then press “Release + Save” button
planning file entries will be generated.

In T code MS02 (Multilevel single Item Planning)

 Enter Planning Scenario & plant.
 Enter “NTECH”
 Select “1” for MRP List
 Enter planning mode as “1” for LTP run.
 Enter “2” for scheduling means lead time scheduling
 Enter "1" to use settings from planning scenario i.e. firmed receipts will not be considered in LTP run.
In T code - CM38 check capacity requirement at work center. Enter planning scenario & plant. It will shows capacity planning
standard overview screen. Month wise capacity requirements with available capacity load will be seen.

Sales & Operation Planning (SOP): Sales & Operations Planning (SOP) is the process of aligning forecasts of customer
demand with manufacturing capability. Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which
sales, production, and other supply chain targets can be set based on historical, existing, and estimated future data.
Process Flow of Standard SOP:
 Creation of Product group – MC84
 Create plan in inactive version – MC81
 Disaggregate product group plan – MC76
 Convert Inactive version to active version – MC78
 Transfer SOP plan to Demand management. – MC75

Flexible Planning: Flexible Planning offers multiple options for customized configuration: We can plan on any organizational
level, and define the content and the layout of the planning screens.
We can process your planning data from the standpoint of almost any organizational unit (for example, sales organization,
material group, production plant, product group, material) and even from the standpoint of the entire enterprise.
Steps:
 Create Info structure MC21
 Maintain Planning Parameters MC7F
 Create Planning Type MC8A
 Create Flexible Planning MC93
 Copy to active version MC8V
 Transfer to Demand management
 Create Standard SOP Planning
 Transfer to DM from change mode of Flexible Planning with active version MC94

PP Reports:
CS11 - Multilevel BOM
CR05 - Work Center List
COOIS - Production Order Information Report
COID – Process Order Information Report
MMBE – Stock Overview List
MD04 – Stock Requirement List
MD05 – MRP List
MD06- MRP List Collective Display
COHV – Mass Processing of Orders
CO24- Missing Parts Info System
COGI – Automatic Goods Movement Errors

Work Center Category:

 0001- Machine
 0003- Labor
 0007 – Production Line

Planned delivery and GR processing time:

Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays
required after receiving the material for inspection and placement into storage location.

Shop Floor Control (SFC):

The Shop Floor Control (SFC) is concerned with the detailed management of activities and the flow of materials inside the plant -
including the workers, materials, machines, and time utilized in production. The SFC activity starts after the Planning is done in
APO/ MRP or any other ERP system and once the Planned Orders and Purchase Requisitions gets created. The SAP Production Shop
Floor Control system allows you 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.

 Planned Orders
 Conversion of Planned Order to Process/ Production Orders
 Production/ Process Order Scheduling
 Capacity Requirements Planning
 Material Availability Check
 Release of Production/ Process Order
 Material Withdrawals
 Order Confirmation
 Goods Receipt
 Order Settlement
 Make to Stock Make to Order
S.No.
Strategy 10 Strategy 30 Strategy 40 Strategy 70 Strategy 20 Strategy 50

Production by Lot Planning with Final Planning at Assy. Make to Order Planning w/o
1 Make to Stock Production Size Assy. Level Production final Assy.
Demand program is w/o You can also plan If sales order/cus. If due to sales Every sales The system
ref. to sales order sales order reqmt. Reqmt. Exceeds PIR. order/cus. order is creates a
Then system Reqmt. ,Pln order , planned planned order
automatically creates production order at individually for the newly
planned order in next FERT level, the and managed created sales
MRP run for the depend. Reqmt. Or in its own order in the
unplanned Qty. reservations segment in individual
Exceeds the Assy. the MRP list customer
PIR. Then system or current segment.
2
automatically stock reqmt.
creates planned List
order in next MRP
run for unplanned
Qty.

Sale order is Sale order is

Sale order is Sale order is not covered not covered
3
Sale order is covered by covered by Sale order is covered covered by by warehouse by warehouse
warehouse stock warehouse stock by warehouse stock warehouse stock stock stock
Availability check by ATP Availability check by Availability check by Don't perform No availability No availability
4
logic ATP logic ATP logic availability check check check
PIR reduction is carried PIR / Customer PIR / Customer reqmt. PIR / Customer Customer PIR /
out at goods issue reqmt. reduction is reduction is carried out reqmt. reduction is reqmt. Customer
carried out at goods at goods issue. carried out at goods reduction is reqmt.
5 issue. issue for a carried out at reduction is
production order. goods issue. carried out at
goods issue.
No PIR consumption by No PIR consumption PIR consumption by PIR consumption by No PIR No PIR
customer reqmt. by customer reqmt. customer reqmt. If dependent reqmt. consumption consumption
6
exceeds by PIR Of the finished by customer by customer
product reqmt. reqmt.
Reduction is carried out by Reduction is carried Reduction is carried Reduction is carried
FIFO principle out by FIFO out by consumption out by consumption
7
principle mode 1,2,3,4 mode 1,2,3,4

It supports very closely It supports lot sizing It allows you to focus If it is easier to It is done for This strategy
customer - supplier procedure on flexible and fast specify a reqmt. the high value is useful if a
relationship reaction to customer Forecast for certain items large part of
demand assemblies than it is the value
for the variant added
8 diversity of the process at
finished product. final assy.

Planned orders can be Planned orders can Planned orders can be Planned orders can Planned Planned
converted into prod. be converted into converted into prod. be converted into orders can be orders can't
9 Orders(LA) prod. Orders(LA) Orders(LA) prod. Orders(LA) converted be converted
into prod. into prod.
Orders(LA) Orders(VP)
Reqmt types Reqmt types
Reqmt types and Reqmt types and and classes and classes
10 Reqmt types and classes classes classes Reqmt types and C.R-KE, 040 PIR- VSE,
PIR- LSF, 100 PIR- LSF, 100 PIR- VSF, 101 classes 1003
C.R-KSL, 030 C.R-KL, 041 C.R-KSV, 050 PIR- VSFB, 105 C.R-KEV, 045

The Table Names of SAP PP Module

Work center
CRHH - Work center hierarchy
CRHS - Hierarchy structure
CRHD - Work center header
CRTX - Text for the Work Center or Production Resource/Tool
CRCO - Assignment of Work Center to Cost Center
KAKO - Capacity Header Segment
CRCA - Work Center Capacity Allocation
TC24 - Person responsible for the work center

Routings/operations
MAPL - Allocation of task lists to materials
PLAS - Task list - selection of operations/activities
PLFH - Task list - production resources/tools
PLFL - Task list - sequences
PLKO - Task list - header
PLKZ - Task list: main header
PLPH - Phases / suboperations
PLPO - Task list operation / activity
PLPR - Log collector for tasklists
PLMZ - Allocation of BOM - items to operations

Bill of material
STKO - BOM - header
STPO - BOM - item
STAS - BOMs - Item Selection
STPN - BOMs - follow-up control
STPU - BOM - sub-item
STZU - Permanent BOM data
PLMZ - Allocation of BOM - items to operations
MAST - Material to BOM link
KDST - Sales order to BOM link

Production orders
AUFK - Production order headers
TJ02 - Production Order Status
AFIH - Maintenance order header
AUFM - Goods movement for prod. order
AFKO - Order header data PP orders
AFPO - Order item
RESB - Order component
AFVC - Order operations
AFVV - Quantities/dates/values in the operation
AFVU - User fields of the operation
AFFL - Work order sequence
AFFH - PRT assignment data for the work order(routing)
JSTO - Status profile
JEST - Object status
AFRU - Order completion confirmations

PRT’s production orders

AFFH - PRT assignment data for the work order
CRVD_A - Link of PRT to Document
DRAW - Document Info Record
TDWA - Document Types
TDWD - Data Carrier/Network Nodes
TDWE - Data Carrier Type

Planned orders
PLAF - Planned orders

KANBAN
PKPS - Kanban identification, control cycle
PKHD - Kanban control cycle (header data)
PKER - Error log for Kanban containers

Reservations
RESB - Material reservations
RKPF - Header

Capacity planning
KBKO - Header record for capacity requirements
KBED - Capacity requirements records
KBEZ - Add. data for table KBED (for indiv. capacities/splits)

Planned independent requirements

PBIM - Independent requirements for material
PBED - Independent requirement data
PBHI - Independent requirement history
PBIV - Independent requirement index
PBIC - Independent requirement index for customer req.

Repetitive Manufacturing:
 The production is quantity based & period based.
 Same product usually produced over long period of time on single production line.
 Usually planned order you have done
- Production
- Confirmation with Goods Receipt
-Product cost collector settlement
Master Data for Repetitive Manufacturing:
 Rate Routing (CA21) - All operations ,machine are clubbed in one operation.
 At the time of work center creation you have to select different work center category like (machine -0001,
production line - 0007)
 Line loading, material staging (MF50), Backflushing
 In master data assign Repetitive manufacturing indicator & REM profile in MRP 4 view.
 Create REM profile in OSP2.
 In REM we can not use production orders so production orders not settle, so we create here product cost collector.
 All costs settle via product cost collector (Individual - KKF6N , Collective - KKF6M)
 Line Loading (MF50) - Use to tell that which planned order has to be executed on which machine.
 Now you can see your planned order not assign to production line.
 Production team should know which line is used in which month.
 Once you save your planning loading you can see in MD04 your planned order is assigned to production line.
 Planned order get firmed order.
 Line loading you assign your quantity to production line.

Backflush:
 GR & GI doe simultaneously because you continuously production the same product.
 Confirmation your GR activity by using MFBF.
 In REM, work center also called as production line.

Process Industries (PP-PI Manufacturing):

 Process manufacturing are used in chemical, pharmaceutical, Food Industries.
 Production are happened in batches or lots.
 Both scenarios are work MTS or MTO.
 Main thing production produced in Lots.
 PP-PI is designed for Batch oriented process manufacturing.
 In Process industry, the products, which are manufactured, can not easily dis-assemble once they are
manufactured.
 Impossible to be reworked upon these products.

Master Data for Repetitive Manufacturing:

 Master data with activated Batch management.
 Resource (Work Center CRC1)
 Master Recipe (Routing C201)
Along with operation, we have Sub operation, detailed operation, process instruction, process instruction
characteristics.
Even operation confirmation also done in phases.
Phase - Detailed steps for particular operation. All activities are done in phase level.
Always phase should be assign to superior operation.
Control Recipe Destination also assign to superior operation column.
After save Master Recipe, system create Group or Recipe.
In Master Recipe along with operation, you have operation to maintain Relationships.
Able to identify which sequence of phases are execute & after competition of which phase, which phase will be start
(or next phase going to start)

Production Version (C223):

 It is combination of BOM & Master Recipe (Routing). Production version describes production procedure.
 Created by 3 ways:
- C223 Production Version
- MRP 4 View in Material Master
- C202 (Material Tab)
 After completion of master data give
- Forecast/Demand through MD61
- Create Planned Order
- Convert to Process Order
- Order Execution
- Confirm order through - CORK - Order confirmation, COR6N - Phase wise confirmation.

Process Management:
 Process management serves the interface between PP-PI & system involved in process control.
 Receives control recipes with process instructions from released process orders.
 Here we are doing to secondary data process order to process control system. Whatever data will be update in PI
sheet that will be return by using process management.
 Here use of process instruction to specify which information to be transferred to process control & which
information to be reported back from process control.
 You can allocate the process instruction to master recipe & phase we can assign process instruction. (O12C )
Process instruction comes from configuration. Characteristic pick the values from process order. Characteristic took
data from process order.
Creation of Control Recipe:
 Process order
- Header
- Operation
- Phases 
---- Control Recipe Destination -We have assign 2 process instructions
---- Process Instruction -Then you have to assign phases in master recipe destination column.

Process order Flow:

 Create Process order - COR1
 Material Availability Check - COR2
 Release process order - COR2 After this generation of control recipe.
 CO53 - Sending control recipe to process control system. CO53 & CO54 in real time mostly running background job.
In real time, we have planned background job to send at process control.
 CO60 - Maintain the PI sheet Sending process message to process order. Only end user will do this transaction to
find PI sheet. Once user complete CO60 PI sheet now process messages will be generated.
 Goods Issue
 Process Order Confirmation
 Goods Receipt

Production Scheduling Profile (CORY):

 In Production scheduling profile, we can maintain the automatic control recipes.
 Process message are data structure used to report actual process data from process control to one or more
destination.
 All data have send from process control system to process order by using process message.

What is collective order. Prerequisite of the collective order?

With Special Procurement Key -52 we can create the Collective Orders.
Since suborder material is directly produced, when confirm the "suborder", the produced qty will issued automatically
to "superior order".
There is no separate goods issue is needed for superior order in collective order structure.
After confirming the suborder, u can confirm the superior order, and make GR for finished product.
For above process "Collective order with goods movements" check box should be activated for Order type at OPJH.

What is requirement class and requirement type?

Requirement Class is key link between SD and PP.
Key which specifies the planning strategy internally within the system. Basically, Requirement types is for both
customer requirements as well as PIR requirements. Requirement type for customer is taken care by SD consultants.
but customization of requirements type for PIR is by PP consultants.
This PIR requirements type is ex LSF,VSF,BSF etc.,
These requirements type is linked to requirements class 100,101 etc.,
These requirements class only differentiates with suitable indicators,
Ex It is net requirement, gross requirement for 10 & 11 strategy
PIR as to consume or not for 40

BOM item category you have used?

C Compatible Unit
D Document item
I PM structure element
K Class item
L Stock item
M Intra material
N Non-stock item
R Variable-size item
T Text item

Kanban is a procedure for controlling production and material flow based on the physical material stock in production.
Material that is required on a regular basis is continually kept available in small quantities in production.

Difference between plan cost, Actual cost, and target cost.

Planned cost: - system will take the price based on price control in a material master and multiply with per FG and
Component quantity with respect to the production order.
Actual cost: system will take the price based on price control in a material master and multiply with actual goods
movement qty of the material with respect to the production order. So it will come once you do the confirmation.
Target cost: system will take the price from standard cost estimate - IF you not run the std cost estimate, system
won’t update the target cost in production order.
Example-
Final Material - A,- Qty Planned to Produce - 2 nos
As per Standards, Below Qty of Materials required to Produce A , for 2 Nos
Mat B - 2Nos X INR 50 = INR 100
Mat C - 4Nos X INR 60 = INR 240
Activity Cost = 2 hrs X INR 10 = INR 20
Total Plan Cost = 100+240+20=INR 360
Actual Qty Produced = 1 No
Actual Consumption is as follows.
Mat B - 1.5 Nos (X INR 50 = INR 75)
Mat C - 2 Nos (X INR 60 = INR 120)
Activity Cost = 2 hrs. (X INR 10 = INR 20 )
*So, Actual Cost = INR 75+120+20 = INR 215*
Whereas, Target cost for the Actual Qty ( of Product A - 1 Ns) is , as follows,
Mat B - 1 Nos (X INR 50 = INR 50 )
Mat C - 1.5 Nos (X INR 60 = INR 90 )
Activity Cost = 1 hrs. (X INR 10 = INR 10 )
*Therefore, Target cost = INR 50+90+10 = INR 150*

MRP I view: - Material, Plant, Base Unit Of Measure, MRP Type, Lot Size, MRP Area, MRP controller
MRP II View: -Procurement Type, In house Production, Schedule Margin Key
MRP III View: Strategy Group, Availability Check
MRP IV View: -Material, Plant, REM Profile, Repetitive Manufacturing, Production Version

Production Order: Order, Material, Status,

In General Tab - Quantity, Basic Dates, Scheduling Type, Float Before Production, Float After Production, Released
Period.
In Assignment Tab- MRP controller, Production Supervisor, Production Plant, MRP area.
In Good Receipt Tab--- Stock Type, GR process Time,
In Control Tab---Costing, Scheduling, Production Scheduling Profile
In Dates /Qties Tab---Basic Dates, Quantities
Master Data Tab—Production Version, Routing, Bill Of Material

261 Goods Issue for Prod Order

101 Goods receipt for Prod order/Purchase order

 Planned orders
 Conversion of planned orders to process/production
 Production and process order scheduling
 Capacity requirements planning
 Material availability
 Release of production/process orders
 Material withdrawals
 Order confirmations
 WIP Determination
 Goods receipt documentation
 Order settlement

KANBAN Principle: ---

In Kanban, the material flow is organized using containers that are kept directly at the appropriate work centers in production.
Each box contains the quantity of material that work center need for certain period of time. As soon as a container is emptied by
the demand source, replenishment is generated by Kanban. The supply source for the required material can be another place in
production, an external vendor or warehouse. The demand source can use material from other containers until the actual
container returns full.
Key Benefit: -- By using Kanban with the SAP system, you can automate the transfer of replenishment data.
Material flow organized using containers: -
I. Setting to empty in the system triggers procurement
II. Setting to full in the system posts the goods receipt
Advantages of Kanban: --
 Simplified form of Production control
 As far as possible, replenishment controlled by production.
 Manual posting efforts are minimized.
 Material is directly available for production.
 You are not organizing material staging.
 The production quantities are corresponding to actual requirements.
 Replenishment is only triggered when material is required.

Process steps:
1. Create supply area for Kanban storage location (KN01). TC: PK05
2. Extend the material to Kanban storage location. TC: MMSC
3. Make the necessary changes in the material master as explained above.
4. Create Kanban control cycle. TC: PKMC
5. Print the barcode. TC:PK17
6. Set the Kanban status to EMPTY by scanning the barcode. TC: PKBC. A material reservation will be created for stock transfer
from main stores to KN01.
7. View the demand source view. TC: PK13N
8. Once the Main stores sends the material to shop floor scan the barcode to FULL. TC: PKBC (At the background stock transfer
with 311 movement will happen).

SAP ECC system = Component will be SAP_APPL

SAP S4 HANA system = Component will be S4CORE
SAP S/4 HANA – New user interface called as FIORI, which can be able to open on any browser as well as in mobile as well.

SAP ECC can using HANA Database called as = SAP Business Suite ON SAP HANA
SAP ECC can using HANA Database called as = SAP Business Suite Powered By SAP HANA
SAP S/4 HANA using HANA Database called as = SAP Business Suite FOR SAP HANA
HANA = High Performance Analytical Appliances.

 SAP S4 HANA can run only HANA database. SAP ECC can run-on third-party database like Oracle, IBM, DB2, etc.
 In SAP ECC, MRP runs occur through batch jobs during off peak hours. In SAP S4 HANA, MRP run occur in real time.
 New & advanced functionalities in S4 HANA E.g. Group Reporting in FICO, Advanced ATP in SAP SD, MRP Live in SAP PP/MM.
 Length of material code expended from 18 characters to 40 characters.
 Introduction of Extended Warehouse Management (EWM).
 In Material master Data add tab “Advanced Planning”
 SAP Fiori is a new user experience (UX) for SAP software and applications. It provides a set of applications that are used in
regular business functions like work approvals, financial apps, calculation apps and various self-service apps.

Enhancement Package (EHP):

Enhancement package is a methodology used by SAP to deliver new innovations/functionality or “enhancements” to customers
without disruption. SAP releases enhancement packages for SAP ERP 6.0 on a regular basis. Enhancement packages deliver new
functionality, which can be activated selectively via business functions.

Ticketing Tools in Support Project:

1) Clarify tool
2) Remedy tool
3) IT Solution Manager (ITSM)
4) Radix
5) OVSD
6) EARS
7) Peregrine
8) Omega

 HubSpot
 HappyFox
 Samanage
 Live Agent
 SolarWinds
 Front
 Spiceworks
 AzureDesk

SAP GUI (Graphical User Interface): It is an important ERP tool that allows SAP end users to use various software applications
by providing easy-to-use graphical interface, runs on operating systems.
 A single face GUI for accessing all SAP components such as ERP, BI, CRM, SCM, XI, and SRM.
 Users are allowed to login with their preferred language, as the same GUI can be used in different languages.
 It is very user-friendly and useful for creating favorites, start-up transactions for reducing dialog steps.
 It is compatible for supporting all SAP applications that are below the current GUI Version. The latest version of GUI supports
the lower versions of SAP components with ease.
 It contains user parameters that are defined for more frequently keyed inputs. This enables the automatic population of text
boxes based on specific user logins and reduces the percentage of user inputs in real time.
 SAP GUI offers role based and easy to access SAP menus for reducing the GUI load.
 This SAP module is intelligent enough to determine the server that is least loaded in the event of more than one instances
(application server) being configured.
 It allows access across low speed connections and displays screens without graphics/logos as they tend to consume more
network traffic.
 GUI SAP boasts of ergonomically designed interfaces for configuring GUI font size, colors, logos, visual designs and custom
layouts.
SAP GUI release – 7.60

SAP IDES: IDES is a demo SAP system developed by SAP AG used for learning and training and purpose. IDES stand for Internet
Demonstration and Evaluation System.
SAP IDES is an easy way for end users or consultants to get acquainted with SAP or gain mastery over the SAP ERP.

OSS Notes: (T Code - SNOTE)

OSS NOTES is an online SAP service portal that provides up to date information on SAP notes. It frequently releases bug fixes,
patches, new program developments or enhancements and other miscellaneous updates by SAP. It provides a list of correction
notes for SAP objects. OSS stands for “Online SAP Support."
At times before you begin work, it will be required to check whether a particular note is present in your SAP system.
Go to the T code – SNOTE & click on Note Browser & see list of notes.
For a background, a SAP note could have any of the following status -
 Can be implemented
 Cannot be implemented
 Completely implemented
 Incompletely implemented
 Obsolete
 Obsolete version implemented
 Undefined Implementation State

Purchase Order: (T Code ME21N)

Procurement starts with creating a purchase order, i.e., a formal document given to vendors and it includes a list of goods and
materials that are to be procured. Accordingly, purchase orders can be created for different types of procurement.
For different procurement types, there are four types of purchase orders, which are as follows −
 Subcontracting Purchase Order
 Consignment Purchase Order
 Stock Transfer Purchase Order
 Service Purchase Order

Subcontracting Purchase Order: In subcontracting, the vendor (the subcontractor) receives components from the ordering
party with the help of which it produces a product. The product is ordered by our company through a purchase order. The
components required by the vendor (seller) to manufacture the ordered products are listed in the purchase order and provided to
the subcontractor.
T code ME21N. Item Category L
Provide name of Vendor, Item Category, Material, Plant, and Date of delivery. & save the data. Subcontracting Purchase Order
will be created.

Consignment Purchase Order

In consignment, material is available at the organization store premises; however, it still belongs to the vendor (seller)/Owner of
the material. If you utilize the material from the consignment stocks, then you have to pay to the vendor.
T code ME21N. Item Category K
Provide name of Vendor, Item Category, Material, Plant, and Date of delivery. & save the data. Consignment Purchase Order will
be created.

Stock Transfer Purchase Order

In stock transfer, goods are procured and supplied within a company. One plant orders the goods internally from another plant
(receiving plant/issuing plant). The goods are procured with a special type of purchase order known as the stock transport order.
T code ME21N. Item Category U
Provide name of Vendor, Item Category, Material, Plant, and Date of delivery. & save the data. Stock transfer Purchase Order will
be created.

Service Purchase Order

In service, a third party provides services to a company. These services include maintenance functions such as electricity and
oiling of machines. Follow the steps given below to create a service purchase order.
T code ME21N. Item Category D
Provide name of Vendor, Item Category, Material, Plant, and Date of delivery. & save the data. Service Purchase Order will be
created.

Inventory Management −
Procurement process starts with gathering requirements and ends with procuring goods from vendors. Once the goods are
procured from a vendor, they need to be placed in the company’s premises in correct place so that they can be consumed when
required. Inventory management deals with placing and handling the stock received from the vendors in correct place within the
company’s premises.
Listed below are the points to note about inventory management −
 Inventory management deals with the management of stock, either on value or quantity basis.
 It includes planning, entry, and keeping records of all the movements of goods.
 Goods movement creates a document that updates all the stock quantity and value in the inventory that is known as the
material document.
 A material document is referred by a document number and document year.
We comes across the following terms while doing inventory management −
• Movement Type
• Goods Receipt
• Reservation
• Goods Issue

Movement Type (T Code: MIGO)

Movement type describes the type of stock posting in inventory. It represents whether the posting in stock is against goods
receipt or goods issue. The important movement types in SAP are as follows −
101 Movement Type: It is used for Goods Receipt against the Purchase Order.
102 Movement Type: It is used as a reverse of the material document that was created in 101-movement type.
122 Movement Type: It is used to return goods to the seller.
123 Movement Type: It is used to cancel movement 122 documents.
161 Movement Type: It is used to return products to the seller against a purchase order for
162 Movement Type: It is used to cancel the movement 161 documents.
201 Movement Type: It is used to process Goods issue against the cost center.
202 Movement Type: It is used to cancel the 201-movement document.
221 Movement Type: It is used to process Goods issue against projects.
222 Movement Type: It is used to cancel the 221-movement document.
261 Movement Type: It is used to process Goods issue against the order.
262 Movement Type: It is used to cancel the 261-movement document.
311 Movement Type: It is used when there is a need to transfer posting between storage locations.
312 Movement Type: It is used to cancel the 311-movement document.
321 Movement Type: It is used to transfer goods or products from quality to unrestricted stock.
322 Movement Type: It is used in case of a reverse of 321-movement type.
343 Movement Type: It is used to transfer goods or products from unblocked to unrestricted stock.
344 Movement Type: It is used in case of a reverse of 343-movement type.
349 Movement Type: It is used to transfer goods or products from blocked to quality stock.
350 Movement Type: It is used in case of a reverse of 349-movement type.
411 Movement Type: It is used to transfer their own stock or goods to own.
412 Movement Type: It is used in case of a reverse of 411-movement type.
501 Movement Type: It is used to issue Goods Receipt without any purchase order.
502 Movement Type: It is used in case of a reverse of 502-movement type.
511 Movement Type: It is used to issue free of charge goods receipt.
512 Movement Type: It is used in case of a reverse of the 511-movement type.
551 Movement Type: It is used to process Goods Issue for scrapping.
552 Movement Type: It is used in case of a reverse of 551-movement type.
561 Movement Type: It is used to show the initial entry of stock.
562 Movement Type: It is used in case of a reverse of 561-movement type.
601 Movement Type: It is used to issue Good’s Issue against delivery.
602 Movement Type: It is used in case of a reverse of the 601-movement type.
641 Movement Type: It is used to transfer or send goods to stock in transit.
642 Movement Type: It is used in case of a reverse of 641-movement type.
651 Movement Type: It is used in case of return delivery of goods.
652 Movement Type: It is used in case of a reverse of 651-movement type.
Goods Receipt (T Code: MIGO)
Goods receipt is the phase where the ordering party receives the material and its condition and quality are verified. Depending
upon the movement type, stock is posted in inventory with the help of goods receipt. Goods receipt will show the increase in
warehouse stock. Goods receipt has two scenarios −
1. Creation of Goods Receipt
2. Cancellation of Goods Receipt

Reservation (T Code: MB21/MB22/MB23)

Sometimes, stocks are to be blocked in advance so that they can be made available at a particular point of time. This is known as
reservation. Reservation ensures that availability of stock at a particular time.
-MB21 – Create Reservation.
-Enter Date, Movement Type, plant
-Enter the order number against which we want to make a reservation. Provide the details of material and the quantity that is to
be reserved.
-Click on Save. Reservation is now made for the order.

Goods Issue (T Code: MIGO)

Goods issue means moving a stock out of inventory that may be due to several reasons like withdrawing of material for sampling
or returning the goods back to the vendor. A goods issue results in a decrease quantity in the warehouse stock.

Purchase requisition can be created for the following procurement types −

Standard − Getting finished material from vendor.
Subcontracting − providing raw material to vendor and getting finished/semi-finished material.
Consignment − Procuring material that is kept in company’s premises and paying to vendor for that.
Stock transfer − Getting material from within the organization. (One plant to another plant)
Service − Getting services like maintenance, from third party vendor.

Purchase Return Process in SAP MM:

In case of returns to vendor, please ensure that a new customer should be created and the same should be assigned in the
control data of the respective vendor. This is because we need to ship the material to vendor back. Also, ensure that the shipping
data is maintained in the customer master.
1. Creation of Return P.O. in ME21N put the tick mark in the returns items.
2. Do the goods receipt with respect to Return P.O. in MIGO --- (102-movement type) stock will be reduced from the inventory.
3. Post the Invoice document---MIRO

MRP Process:
The following sequence of Transactions: MRP through Demand Mgmt.
MC87 -- SOP
MC78 --Version Management
MC74 - Transfer Material to Demand Management
MD02 -- MRP RUN
MD04 -Stock Requirement List
Through PIR
MD61 -- Create PIR
MD02 -- MRP run
MD04 -Stock Requirement List

SAP MRP process flow starts with customer requirement, which originates from the sales department or marketing department.
The customer requirements are entered in SAP via sales orders. The customer requirements are entered as demand. The output
of demand management is Planned Independent Requirements.

Demand Management: To understand the customer current requirements. Trend of requirements over a period or business
cycle. Match the customer expectations with organization capabilities of providing services. Assuring services to customer.
Function of recognizing all demands for goods services to support the marketplace. Demand management is used to determine
the requirement quantities and delivery dates for finished product. To create a demand program, Demand management uses
PIR’s & Customer requirements. Demand Management is used to determine requirement quantities and delivery dates for
finished products.
Demand Management provides a demand program which is used by MRP to generate production plans.
Depending on the planning strategy chosen in the material master, the demand program can use forecasts of demand, actual
demand, or combinations of both
Actual demand is created in sales order management (customer orders) and materials management (warehouse replenishment)
Forecasts of demand are represented by ‘planned independent requirements’ which are copied from the Sales and Operations
Plan.
MRP control parameters control data.
 Processing key – net change in the planning horizon. (NETCH, NETPL, NEUPL)
 Create Purchase Requisition – This field has an option for creating purchase requisitions or planned orders.
 Scheduling Agreement (SA) delivery schedule lines – This field has an option for creating schedule lines/no schedule
lines. To create a scheduling agreement there should be settings maintained in a source list.
 Create MRP list – MRP list would be created and displayed when the planning run is executed and saved.
 Planning mode – In this field, the planning mode would be maintained whether to run normally or delete and create all
planning data or re-explode BOM and routing, if there were any changes made to those master data.
 Scheduling - Whether only the basic dates are determined for planned orders, or whether lead-time scheduling is carried out
as well. The indicator refers to all planned orders that are new, have been changed, or have been re-exploded for the BOM.

Material Requirement Planning (MRP):

MRP is the planning tool in SAP, which will look at all aspects of a material and is highly based upon the master data of the
material. It is planning tool which helps in planning the requirement quantities & schedules of given material. It not only ensures
availability of materials, but also ensured availability of components below in the BOM structure.MRP looks at current inventory,
current requirements, and open purchase requisitions/orders etc. So if a material is required to satisfy a sales order and there is
no inventory, MRP will create a planned order if the material is to be produced in house. This planned order converted to a
production order. If the material is to be procured, then MRP will create a purchase requisition, which will convert to a purchase
order.

Master Production Scheduling (MPS):

MPS is done for the Critical/Final products for which the company depends for Profit sharing or which will effect the Balance
Sheet. MPS is done only for One-level of BOM.MPS is one of the Type of MRP, but MPS is done before MRP.
MRP's purpose is to make sure that the right material is available at the right time. It can plan even the dependent items or
assemblies, based on the requirement or planning from MPS.
1. In the MPS run, the materials marked MRP Type as MPS (ie. M0, M1, M2, M3, M4) only will be included. The planned orders are
created at the MPS Material level only.
2. The BOM is exploded for next one level down only. Further level will not be exploded, that means Dependent requirements are
created for the BOM components one level down, further level will not processed.
This allows MRP controller can ensure that the MPS items are correctly planned before any MRP run takes place. This allows the
planner to check and change the planning result, before any MRP run takes place for other materials.
For example, consider this business scenario, suppose we wants to do planning for finished Goods once per week, but it is
necessary to do planning for their components on daily basis.
so in this case, we can define Finished Goods with MRP type as MPS and all the components with MRP type as MRP.
MPS run is carried out before the MRP run. So that the Planner can ensure planning result before the MRP run. MRP Run will plan
all BOM level of Materials.

 Maintain MRP Type M0, M1, M2, M3 or M4 depending on the firming type (planning time fence )in MRP 1 view for material –
MM01
 MD61- Create Planned Independent Requirements.
 Run MRP MD41 – Single Item Multilevel MD42 – Single Item Single level

Planning time fence & planning horizon

 This is especially useful in case of MPS scenario where one can save the procurement proposals from undergoing any change
since the last planning run.
 No automatic changes happen to the procurement proposals once they enter in the planning time fence.
 Planning horizon is the period in which the materials, which have undergone any changes, are taken into MRP run.

Consumption Based Planning (CBP):

 It uses the past consumption data to calculate the future requirements.
 It has no relation with the independent or dependent requirement instead; it is triggered when the stock falls below the
reorder point or by forecast requirements.
 Eg. Raw materials.
 It has three types of MRP procedures:
 Re-order Point Planning.
 Forecast Based Planning.
 Time Phase Planning.

Re-Order Point Planning: (MRP Type – VB)

 Procurement is triggered when the sum of plant stock and firmed receipts fall below the reorder point.
 Reorder point covers the material requirements during replenishment lead-time.
 The safety stock takes care of both excess material consumption within the replenishment lead time and any additional
requirements that may occur due to delivery delays.
Re-order point is defined by :-
•Safety stock
•Replenishment lead-time.
•Average consumption.

Safety stock is defined by:

•Past consumption data.
•Vendor/ production delivery timelines.
•Service level.
•Forecast error.
For Example:
A material with reorder point is 80 units, and then system will try to create planned order, once stock falls below 80 units.
Assume that, current sock is 50 units & firmed receipts are 20 units, making 70 units, which is still below 80 units. In this case
system would create planned order of 10 units to reach back to the level 80 units.

Automatic Reorder Point Planning: (MRP Type –VM)

A type of consumption based planning, system calculates the reorder point & safety stock using past historical consumption data
to derive the future consumption data. In this case, we need to extend the “Forecasting’ view in material master with selection of
valid forecasting method.

Forecast Based Planning: (MRP Type - VV)

It is form of consumption based planning, in which the historical consumption data is used to extrapolate future consumption
data, which are directly used as requirement figures in next planning run. The forecast suggested by system periodically.

Time Phased Planning:

 This is used specially in case if the planning cycle is known.
 The materials planned using this is given an MRP date in the planning file.
 This date is set when creating the material.

Planning file
 The Planning file contains the details of the materials that are to be included for the MRP run.
 MRP is to be activated for that plant; an entry for the material is to be made in the planning file for the specific plant for the
MRP to happen.
 MRP Run for a material occurs taking the information from the planning file.
T-Code for creating planning file ==>MD20
& in the background ==>MDAB
Activate MRP & setup planning file ==>OMDU

Planned Independent Requirements (PIR):

Planned Independent Requirements are planned production or sales quantities that are based on some sort of forecast procedure
(e.g. Material Forecast or SOP procedure). These values are used in MRP to calculate procurement and production quantities for a
material. As the name suggests, PIR is not dependent on any requirement. We use T-code MD61 for maintaining the quantity
based on the forecast (Past history and future trend). It is mainly used in MTS scenario.

Planned Dependent Requirements (PDR):

Dependent requirements is demand that is dependent on another material.
Eg. Plan to sell 200 bicycles in month of January 2020 based on sales in January 2019. These 200 bicycles are PIR for 01/2020.
Since every bicycle produces using two pedals the 200 bicycles plan to sell 01/2020 results in 400 pedals need to be procure.
These 400 pedals are PDR for 01/2020.

Planning Process:
 The system checks the planning file.
 The system calculates the net requirements for every material.
 The system calculates procurement proposals.
 Scheduling happens.
 The system determines the type of procurement proposals.
 During MRP run, the system checks some critical situations, which need to be worked manually, and hence it creates
exception messages.

Scheduling:
Scheduling is used to calculate start date/start time and finish date/ finish time for a production order or operation.

Methods of Scheduling:
Basic dates scheduling: Basic dates scheduling is calculated by considering the values like goods receipt (GR) processing time, in-
house production time and planned delivery time from material master (MRP 2 view). It calculates basic start date and basic
finish date for an order.
Lead time scheduling. Lead-time scheduling takes value from routing operation times (setup, machine, labor, etc.) to calculate
operation start date, start time, finish date and finish time.

There are different scheduling types commonly used in Production Planning and especially in production orders.
 Forward scheduling
 Backward scheduling
 Current Date Scheduling
 Only capacity requirements

Forward scheduling, system schedules the order based on basic start date and determines the schedule finish dates.
Backward scheduling, system schedules the order based on basic finish date and determines schedule start date.
Current date scheduling, system calculates schedule finish date by considering schedule start date as current date.
Only capacity requirements scheduling, basic dates are copied as schedule dates. Operations will not be scheduled.

Capacity Planning: (T code CM01)

The main function of capacity planning is to check the load at Work Center & 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.
Capacity planning uses several types of display like evaluation line graphs & Gantt charts.
In capacity evaluation, determine available capacity & capacity requirement.
 T code CM01 – Put plant & work center.
 Capacity planning standard overview screen will appear.
 This screen shows capacity load with respect to week.
 Eg. In 41th week requirement is 75 hours & available capacity is 52 hours & capacity load is 140%, it means that there is
overload on work center in that week.
 Blue color shows capacity requirement, red color shows overload capacity & yellow color shows remaining available capacity.
 From this we can analyze in which week capacity had overloaded.
 The detailed capacity list will be appear in graphical form.

Capacity Levelling: (T code CM21)

Capacity leveling is done through planning table, and we need to dispatch the orders to the Work Center in the sequence in
which they are supposed to be processed at shop floor.
The main objective of the capacity leveling includes leveling overloads at Work Center and to achieve optimum utilization of Work
Centers. 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.

Batch Management:
A batch is group of materials combined into one quantity for various reasons. Like materials with same characteristic & values
are grouped into a batch. Batch can be assigned to client level, plant level & material level.
The batch is unique number system generates for the single lot of manufacture. Batch management is an integration between
SD, MM, PP & WM. In Material Master Work Scheduling View, activate Batch Management to the materials, which are to be
handled in batches. A batch is the specific quantity of a material produced in a single manufacturing process, i.e., under the
same conditions, thus featuring identical properties. Each batch of material is given a batch number. Each batch of a material is
tested with regard to relevant characteristics to ensure it meets the values or within the range for those characteristics.
Batch management is an important part of a company's ability to procure, produce, store, and sell material. The batch defines a
quantity of material by characteristics unique to that batch. Those characteristics determine how the material in that batch is
used, sold, or moved.
E.g. In chemical industry a specified number of containers of a specific product may be considered batch if they were produced at
the same time & have same physical & chemical properties.
Batch record indicates that the batch confirms to the current Good Manufacturing Procedures (GMP). The batch info record
contains the specific information about the product like process tested, analytical methods & test results.
This is very essential component in Food & Beverage Industries, Pharmaceutical and chemical industries.

Purpose of Batch:
 To track the defective goods.
 To track the expiry date of goods.
 To track the person responsible.
 Ingredients of a product in that batch.
 Production or Process Order number.
 Customer returned products with batch could be traced quickly.
 Batch number can help in identifying the vendor by maintaining proper batch numbering.
 To track the shelf life of goods.

Batch Determination:
It is important process used in SD,PP, MM & WM. Batch determination uses strategy types, search strategies, and search
procedures for a batch to be identified in the relevant area. We will receive one material in a number of batches, and this will be
kept in storage location stock or in warehouse storage bins. When we want to issue the material to production, we need to have a
strategy to choose different batches. Defining the strategy in the system where the system determines and offers up the right
batch to pick is the process of batch determination. Batch determination uses the condition technique. Batch determination can
be used in
Production, production order, goods movement, sales order/delivery, cost center, and transfer order functions.
Create Batch Determination Condition tables: Batch determination condition tables once created become the key combination
fields for searching batches .The Condition Tables are created separately for Inventory Management, Production, WM and Sales. T
Code - OPLB
Create Batch Determination Access sequence: Batch determination access sequences have multiple condition tables (key
combinations) assigned in a sequence of priority. This facility allows creating data for many key combinations so that even if the
search of batches fails on the first key combination condition the rest in the priority would help in search.
Create Batch Strategy Types: The strategy type’s configuration holds the selection criteria and the sort rules used in batch
determination techniques. Strategy types are used ultimately to create the batch search master data or batch search condition
record so that the system would know the exact level at which search for batches is to be carried out along with the
selection/sort rules of these batches.
Create Batch Search Procedure: A Batch Search procedure contains multiple strategy types assigned in sequential priority. The
Batch search procedure thus becomes the final configuration, which includes the total search configuration together. As before,
the Batch Search Procedures are created separately for IM, Production, WM, and Sales.
Batch Search Procedure Allocation and Check Activation: In this step, we allocate the batch search procedure to the respective
modules. In the case of Inventory Management, the Batch search procedures are assigned to the Movement types. In the case of
Production or process orders, the batch search procedures are attached to the production plants and order types.

Procure to Pay (P2P) Cycle:

 Create purchase requisition (MD02 / ME51N): Create purchase requisition. It is internal document. Put material, required
quantity, plant. PR is a demand kind of material for specific quantity to require fulfilment within the time & save the PR. PR
number will be generated.
 Request For Quotation (RFQ) (ME41): Create RFQ. We can create REQ with Purchase Requisition or outline agreement. Put
Purchasing organization, purchasing group, plant, quotation deadline, delivery date & send RFQ to different vendors. Once
save data system will generate RFQ number.
 ME47- Maintain the price in the system in RFQ.
 ME49 – Purchasing department compare the price.
 ME21N – Create Purchase Order. Click on Document overview on button. PR will appear on screen. Then click on PR. all
details can see. Put vendor code, price & save the data. Purchase Order will created & system will generate Purchase Order
number.
 MIGO (Goods Receipt) -Vendor will supply the material to our plant & we will take material into stock with good receipt note
(GRN) through MIGO. GRN is confirmation that a vendor as dispatched the material which mentioned in PO at specific plant.
Select A01 Goods Receipt & R01 Purchase Order & enter purchase order number & movement type -101. Put storage location
& click on “check” button after click on “post” button. System will update inventory & accounting documents. After save PO
system will generate material document number.
 Invoice MIRO – Put T code MIRO. Enter invoice date, Purchase order number, amount & press enter. Document number will
be generated.

Purchasing Tables:
Purchase requisition > EKBN
Purchase requisition account assignment > EBKN
Release documentation > EKAB
History of purchase documents > EKBE

Explain the terms Planned delivery and GR processing time?

Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays
required after receiving the material for inspection and placement into storage location.

Master Recipe (T code – C201/C202/C203):

Master recipes provide the process-specific information that is used to execute detailed scheduling and production of orders.
However, they are independent of concrete dates and contain no equipment control functions. Master recipe is like Routing,
which will process steps to produce a material.
Master recipe will have Operations and Phase, operations are 0010, 0020, 0030 and phases related to operations are 0011, 0022,
0033 respectively.
Each operation can have one or more phases attached to it. Phases are like sub operations you can say. We can attach Process
instructions to these phases in master recipe. When you create a Process order, control recipe is created. In PI Sheet, you can
give values to Process instructions attached.