SAP PP frequently Asked Questions by expert members with experience in SAP PP.

So
get preparation for the SAP PP job interview
1 Can we create Production order without bom and routing?
2 what is the difference between PP and PP-PI?Which one is better and how?
3 If there are some errors in goods movements, and less stock of material consumed, how
can i solve that problem in SAP?
4 If there are some errors in goods movements, and less stock of material consumed, how
can we solve that problem in SAP?
5 Explain why their is need of production version?
6 Explain what is the meaning of exploding a BOM?
7 What are all the different manufacturing scenarios in pp?
8 in sap system, how to get production order record! example: i want to know who lock
my production order!
9 What is the need of pp in sap, what is the flow diagram of sap pp
10 In which context do you use bills of material? [ ] Material Requirements Planning [ ]
Execute Production [ ] Goods Movements (to Help Data Entry) [ ] Product Costing [ ]
Development/Engineering/Design [ ] Documentation [ ] Others?
11 Do you have different BOMs for a material in different plants?
12 What structure do your BOMs have? How many levels are there?How many
components are there on each level?
13 Which BOM maintenance functions do you require (copy functions, mass changes,
and so on)?
14 Do you have products with a large number of variants? Do you need Variant
Configuration?
15 Do you have several alternative BOMs for a material, depending on the manufacturing
procedure or lot size, for example (multiple BOM)?
16 What we will do after the marking andreleasing of standard price in product costing?
17 Tell me the planning steps for 100 products?
18 What is the difference between stock transfer order and stock transport order?
19 What are the costing parameter?
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Caution: more than one answer may be correct.
Please mark ALL correct answers.
Question:
The following control parameters can be set in a long-term planning scenario :
A
B
C
D
E

Planning period
Opening stock
Strategy group
MRP type
Version of available capacity

Question:
What is the name of the planning level for the MRP run?
A.
B.
C.
D.

SOP
MP
MRP
COPA

Question:
What are the main features of the MRP types 'PD' or 'VB'?
A.
B.
C.
D.

'PD' can only be used with 'Net Change Planning'

'VM' can only be used in total planning
'PD' triggers a BOM explosion
'VM' can use the forecast for the calculation of the safety stock

Question:
What is the meaning of the planning time fence?
A. It determines the planning period for the planning run
B. It determines the period in which the planned orders are to be converted into
production orders
C. It determines the period in which no automatic changes are to be made to the
production plan
Question:
In forecast-based planning, which forecast model does SAP support?
A.
B.
C.
D.

dynamic model
seasonal trend model
split trend model
Consumption model

Question:
What conditions must be fulfilled in Customizing if a production order is to be
checked for availability?
A.
B.
C.
D.
E.

Scope of check
Checking group
checking rule
Checking assignment
Inspection period

Answers for SAP PP Certification Sample Questions

Q) Can any body explain me why work scheduling view is required for semi
finished and finished products? (Because we'll mention all details in MRP views)
A) We need to maintain working scheduling view in order to make that finished or semi
finished goods available for production as we assign production scheduler and
production scheduler profile in this view, if not maintained conversion of planned order
to production will not be possible.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
1. Following are valid BOM categories
a) Inspection BOM
b) Material BOM
c) Equipment BOM
d) Costing BOM
Ans : b, c, d
2. Material BOM that is created without plant is called______________
a) Reference BOM
b) Master BOM
c) Group BOM
d) Master group
Ans: c
3. If a Header Material is used as a BOM item in the same BOM the BOM is referred as
___
a) Repetitive BOM
b) Alternative BOM
c) Multiple BOM
d) Flexible BOM
e) Recursive BOM
Ans:
4. Alternative BOMs are grouped under one internal number and are called__________
a) Multiple BOM
b) Variant BOM

c) Variable BOM
d) Super BOM
e) Header BOM
Ans:
5. BOM can be used for the following
a) MRP
b) Costing
c) Inspection data
d) Sales & Distribution
Ans: a, b, c, d
6. The base quantity in the BOM specifies
a) To which amount of the semi finished product the item quantities refer
b) To which amount the item quantities required for two or more finished products
c) To which amount of the finished product the item quantities refer
d) To which amount the item quantities are not calculated.
Ans: a, b, c
7. Work Center is used in
a) Routing
b) BOM
c) Material Master
d) Inspection Plans
Ans: a, d
8. Routing contains information on the following
a) Material Components
b) Operations
c) Capacity for Work Centers
d) Inspection Characteristics
Ans: a, b, c
9. Alternative sequences in routing are created with reference to
a) Parallel Sequence
b) Master Sequence

c) Standard Sequence
d) Reference Sequence
Ans:
10. Work Center requires formulas for the following
a) Move time
b) Scheduling
c) Capacity requirements
d) Cost estimate using activities
Ans:
11. Routings are identified by ____________________
a) Routing Group
b) Routing Status
c) Group Counter Values
d) Routing Group and Group Counter Values
e) Status and use
Ans:
12. You can assign work center to only one cost center in a time period.
a) True

b) False

Ans:
13. Production Planning Module is integrated with the following modules.
a) Material Management
b) Controlling
c) Quality Management
d) Sales & Distribution
Ans: a, b, c, d
14. Movement Type for Goods Receipt in to Ware House
a) 122 b) 123 c) 101 d) 102
Ans: c
15. Movement Type for Transfer Posting to storage location

a) 261 b) 301 c) 311 d) 305

Ans: c
+++++++++++++++++++++++++++++++++++++++++++++++++++++
What are the cutover activities followed for PP module?
I am listing some cut over activities to be followed (for PP - Discrete Manufacturing).
Production Planning / Master data:
For Production planning, only master data shall be migrated to SAP. In the 1st Stage,
there is no master data. Following is the master data elements relevant for PP:
- Bill of materials
- Routing.
- Work Centres.
Transaction data:
As of the cut off date, ideally there should not be any work in process. All the open
production orders should be closed and semi finished goods should be dismantled and
should be added to Raw materials. This strategy should be followed for all production
orders where lead time to complete the production order is not large.
Since, the production orders are for longer duration and it is not possible to dismantle the
product and add it to inventory, following can be the strategy for migrating the data to
SAP:
- Create a material master for the work in process and set the standard price as the cost
incurred for that product (ie. Work in process)
- Create a bill of material (which will be used only for this production order) including
this material and other materials still to be consumed.
- Create Routing for rest of the production process.
- Bring the work in process material into inventory as of the cut off date.
- Create the production orders in SAP for the Work in process and issue materials to
production order.
Complete the production process after the cut off date of the project.
Tips by: K.S.Kulkarni
What happens to planned after it has been converted into production order?

When you convert Planned order to Production order. the planned order are offset by
production order. Reference of planned order can be seen in the production order.
How to attach a drawing for a material to BOM? Is it possible?
Yes, you can attach a drawing.
First create a document using Transaction Code "CV01N - Create Document".
Attach your drawing in that document.
The system will generate a document number. Assign this document in the BOM with
item category D.
Report in Long Term Planning - You use long term planning for your customers,
what they need are very simple, just to calculate future requirements for 1 or 2
years.
Are there any reports in SAP to list of material requirement from LTP?
You need a list of material requirement from long term planning result for each
item.
Use MS70 then use MCEC.
Scheduling planned order - How can you get planned orders scheduled so that you
can do capacity leveling?
MD11 and then Schedule works fine but ideally you would want the the planned
order scheduled automatically on creation? You have tried setting up an action to
schedule the orders but cannot get that to work either.
When running MRP, try selecting "2" in the scheduling box this will bring planned orders
into CM01 and CM21
Capacity planning CM01 - When you run capacity planning T-code: CM01, you
found the plan orders are not included in the pegged requirement, you checked the
profile, the check box for order and plan order are all actived.
Guess that planned orders have been created without capacity requirement indicator in
MRP ("2" - Lead Time scheduling), if this is the case, then when converted to process
orders they will have impact on the Resource. If you want to see them as planned orders,
re-run the MRP or change in every planned order, going to the Menu: Edit -->
Scheduling
Another couple of possibilities are to do with the routing/work centres used and whether
it isactually calculates consumption of capacity of the category at the work centre being
displayed in CM01 (it might consume a capacity pool or it might not consume the
category).

MPS in Backgound/Online - You want to run MPS for a plant either online or in the
background, but you do not get any results. If you run MPS for a single
material/plant, then everything is 100% OK.
You need to run a planning file and a consistency check first, transaction OMDO and
MDRE respectively you'll need to set up two jobs to do it but it is straight forward, once
you've done this set up the background job for MPS to run and do it in NEUPL first time
round and then change to NETCH after that.
What is the output of MPS run?
From MPS run you plan the materials which are of 'A' type in the abc analysis (80%
dollar value) that have to be planned before hand.
MPS is also a type of MRP only in which components just below the materials on which
MPS run is taken place, are planned.
Table for production order status - What is the table for finding status (for Ex
TECO ed prodn orders). We are not able to find from AFKO and AFRU tables the
status of production orders or at least the link tables if known can be mentionned.
You are unable to link the structure caufvd and IOHEADER WITH AFKO and
AFRU.
JEST is the table.
Data dictonary table for SOP planning data - You are using Standard SOP (Info
structure S076), in which table can you see the planning values that you maintained
in MC93 transaction?
You looked under table "S076" and did not see any values there.
Use T.Code MC95 to display your entries under the version which maintained the the
table S076.
Production order operation's component allocation - How does SAP know that an
operation has components as indicated by the component allocation indicator?
Tcode CO08.
Component allocation is done via routing maintenance or BOM maintenance for the
assembly. This is master data maintenance. As soon as a PO is created, the master data is
read into the PO.
How to delete groups of products?
How to delete a group of products that was created in screen MC84?
Delete the members in the product group and then archive the product group in
transaction SARA, object=MM_MATNR.

(The product group is created as a material master record with material type PROD and
this record is deleted in SARA.)
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
1. Which is the highest organisational level in SAP
a) Plant b) Client c) Storage Location
Ans: b
2. For Material Master record PP Data which is the highest organisational level
a) Plant b) Client c) Storage Location
Ans: a
3. What is the difference between F1 Help & F4 Help.
a) F1 is for possible values and F4 is for application help
b) F1 is for Application Help and F4 is for Technical Help
c) F1 is for Field Help and F4 is for possible entries.
d) None of the above
Ans: c
4. Variant Configuration is typically used in
a) Make to stock Environment
b) Make to Order Environment
c) Spare parts Sale
d) Repetitive Manufacturing Environment
Ans: a
5. Configurable Material check for a material is set in _____________
a) Basic Data b) MRP View
c) Sales View d) Classification
Ans:
6. Basic Data screen contains general data such as
a) Material Number
b) Material description

c) Base unit of measure

d) Technical data
Ans: a, b, c
7. Functions of Classification are
a) To find an appropriate object
b) To find similar objects
c) To establish that no appropriate object exists.
Ans:
8. Entering /o in command field
a) Ends current transaction
b) Ends the current cession
c) Opens new cession
d) Opens new transaction
Ans:
9. For creating Material Master the following Transaction Code is used :
a) md01
b) mm01
c) me01
d) mc01
Ans: b
10. The unit in which the stock keeping is done in a company is called
a) Stock unit of measure
b) Base unit of measure
c) Unit of issue
d) Purchase unit of measure
Ans: b
11. Batch is
a) Same as material code
b) Partial quantity of material managed separately from other quantity of same material in
stock
c) A non reproducible homogeneous unit with unique specifications

d) None of above
e) All of above
Ans: b
12. A _____________________________ is a complete, formally structured list of the
components that make up a product or assembly.
Ans:
13. Component in the BOM are allocated to operation in
a) BOM
b) Material Master
c) Routing
d) Work Center
Ans: c
14. BOM contains the following
a) List of Components
b) Qty of Components
c) Operation to which components is attached.
d) Unit of Measure of components
Ans: a, b, d
15. BOMs are always created as
a) Single Level
b) Multi Level
c) Components
d) Along with routings
Ans: a
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
1. A plant can be a physical plant or a logical section of a plant
a) Yes b) No.
Ans: a

Storage locations are areas where materials are stored within a plant
a) Yes b) No.
Ans: a
A purchasing organization can buy for a number of plants
a) Yes b) No.
Ans: a
A purchasing group is a sub-set of a purchasing organization
a) Yes b) No.
Ans: a
2. Strategy Group is relevant for Material Requirement Planning
a) True b) False
Ans: a
3. MRP can be caried out at :
a) Plant Level
b) All Routings
c) Single item single level
d) Single item multiple level
Ans: a, c, d
4. In Material Requirement Planning
a) Material availability is ensured
b) If shortage exists the corresponding elements are planned
c) Stock transfers are also possible
d) The availability of the components is ensured via dependent requirements
Ans: d
5. With Make to Stock strategy 10
a) MRP run considers only Sales Orders
b) MRP run considers only PIR

c) MRP run considers both Sales Order & PIR

d) Sales Order can consume PIR
Ans: b
6. The Individual / Collective indicator in the material Master determines
a) Whether a component is procured for a special customer requirement in the individual
segment
b) Requirement quantities of dependent materials are grouped together during MRP run
c) The Material Requirement Planning
d) The Special Procurement.
Ans: c
7. ATP Available to Promise (Availability check)
a) System checks if all issues are covered by existing receipts
b) Checks if receipts quantity still available to cover newly received issues
Ans: a
8. Availability Check PIRs
System does not check against PIRs
a) True

b) False

Ans: b
No ATP quantities, receipts or stocks are included
a) True

b) False

Ans: b
Determines if sufficient PIRs are planned to cover a SO
a) True

b) False

Ans: b
9. Consumption based planning is usually used for following materials
a) All A & B Class Materials
b) Materials with smooth consumption pattern.

Ans: b
10. For Planning at Phantom Assembly Level planned orders are created for
Phantom assembly
a) True

b) False

Ans: b
11. Stock Requirements List gives ___________________ situation of stock
requirement for the material
a) Static : of the last MRP Run
b) Dynamic : Existing at current situation
Ans: b
12. Is Sales order A Qty. 15 PC and Sales order B Qty. 25 PC are booked on same
date and stock is 0 PC
a) Separate Planned Order for each Sales Order shall be created if individual indicator is
set
b) Only one planned order is created if individual indicator is set
c) Separate Planned Order for each Sales Order shall be created if Collective indicator is
set
d) Only one planned order is created if Collective indicator is set
Ans: a, d
13. Planning can create the following after MRP run
a) Planned Orders
b) Production Orders
c) Purchase Orders
d) Schedule Lines
Ans: a, b
14. NETCH is
a) Used in Demand Management
b) Key to run MRP for Total horizon
c) Key to run MRP for Total Planning horizon
d) Not related to MRP
Ans: c

15. Regenerative Planning

a) Plans all material for a specified plant
b) Plans all material for a specified plant for total planning horizon
c) Stands practical for the first time planning run
Ans:
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Steps of a Typical Production Process

What are the steps of a typical production process?
You can see the steps of a production process scenario as:
Your Client being the Sub-contract vendor for the customers.
A typical process will be as below :
1) Create materials masters for the Raw material and FERT materials in your syste in
tocde : MM01.
2) Create BOM in Tcode ; CS01for the FERT material using the Raw material created as
BOM item.
3) Create Routing in Tcode : CA01for the FERT material with the various operation ./
activities you perform on the raw material to convert it into FERT material.
4) Create Pricing for the FERT material in TCode : VK11 (provide only the Job work
price)
5) Create a Sale order for the FERT Material in Tcode ; VA01
6) Inward the raw material in Tcode : MB1C with movt type 501 E or 521 E (special
Movt Type)
7) Create the Production Order wrt to Sale order in Tcode ; CO08
8) Perform Goods Issue against the production order with the same spl movt 261 E.
9) Carryout the confirmation for the order.

10) Perform Goods receipt for the prod order. It will go to Special stock i.e Sale order
Stock.
11) Perform delivery for the Sale order and PGI
12) Create Invoice
++++++++++++++++++++++++++++++++++++++++++++++++++++

Interview Questions and Anwsers on SAP PP

1. If you have released Prdn order today and it had gone to shop floor. Next day it
was found that there is shortage of material. What will you?
2. How you define Standard Cost and Variable cost in PP?
3. Where can you find Read PP Master in SAP(PP)?
4. What are all the settings done for configuring integration of PP with FICO?
1. Do availability check. You will get missing parts list. Procure those missing parts.
Then confirm the production order. One more thing you can do, change customize setting
so that user cannot release if parts are missing during order release.
2. Standard cost is the cost which is fixed for a period, variable cost is varying with
period. As for example cost of semi finished, finished materials are fixed & cost of raw
materials are varied.
3. You will find in master data tab page of production header data overview, CO02 - Read
PP Master Data. Also from Functions menu you will get Read PP Master Data. This
means that you want the system to re-update the production order with the latest BOM
structure.

4. Assigning of Cost center to work center. Assigning Activity type to work center,
Standard Cost estimate, Costing Run, Order settlement, Product costing. *-- Chandan
Majumdar
---

1. Can MRP be carried out for one particular level of a bom ( Level code : 0001/0002
etc).
Yes it can be done by running for specific materials (Single Material Single Level)
2 How Requiements( PIR,Sles Order, Customer Requirement) are reduced after
they are produced?
Reqmts are reduced automatically after Delivery is made to the Particular Order
(In case of Strategy 11, the PIRs are consumed after the GR for Production Order)
3. Can't one material be assigned to more than one operation in a routing?
One material from a BOM CANNOT be assigned to different Operations.
It can be done by defining the material for so many times as required in the BOM
4. How to insert an inspection checkpoint at the end of an operation?
If in process sample is to be defined, assign inspection type 03 in the Material Master.
Then create MICs and assign them in the Routings.
System automatically generates the Inspection Lots
5. Where we have to specify the teardown time in one operation?
Teardown time can be defined as one of the Standard Parameters...
6. How the process time is calculated in a WC when both labour, Machine categories
exist?
Scheduling is done based on the Capacity Category we define in the Workcenter
7. How to create opbject dependencies in a BOM FOR A CONFIGURABLE
MATERIAL?
Go to Extras -> Object Dependency -> Assign
For this U need to create Characteristics and Class (of Class Type 300) earlier
8. Can any body explain me why work scheduling view is required for semi finished
and finished products?
(Because we'll mention all details in MRP views)
A) We need to maintain working scheduling view in order to make that finished or semi
finished goods available for
production as we assign production scheduler and production scheduler profile in this
view, if not maintained
conversion of planned order to production will not be possible
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
1. What are Traffic Lights in MRP?
red = the stock is not available
yellow - the stock is in average level stock

green = the stock is available

2. What is MRP List and what is the use of it?
Definition of the MRP List
The system creates MRP lists during the planning run according to how you set the
creation indicator. These lists contain the planning result for the material. The MRP list
always displays the stock/requirements situation at the time of the last planning run and it
also provides a work basis for the MRP controller. Changes that are made after the
planning date are not taken into consideration, so the list is static.
MRP lists are stored in the system until they are either deleted manually or replaced by
new lists from a subsequent planning run.
3. What is the use of Stock Requirement List?
In the stock/requirements list, the most up-to-date stock and requirements situation is
displayed.
The main difference between the MRP list and the stock/requirements list is that each
time the stock/requirements list is called up, the system selects the various MRP elements
and displays the most up-to-date situation. You thus always see the current availability
situation of the material in the stock/requirements list. Changes that are made after the
planning date are displayed directly, so the list is therefore dynamic.
Stock/requirements lists are not saved in a fixed state in the system, but are subject to
change and only exist in the working memory.
Comparison
The screen layout of both lists is basically the same.
The system automatically runs the rescheduling check directly when both lists are created
and puts forward rescheduling proposals.
The number of exception messages displayed in each list is roughly the same. The only
difference lies in the fact that, due to the nature of the list, no exception messages can
occur for newly planned MRP elements in the stock/requirements list.
Directly after the planning run, both lists contain the same information. As soon as a
change relevant to MRP is made, the system updates the information in the
stock/requirements list.
As stock/requirements lists are subject to change, they cannot be set with a processing
indicator.
4. What is MRP controller Means?
The MRP controller is a person or a group of persons responsible for monitoring material
availability. You can use the number entered here, for example, to select the planning
results per MRP conroller.
Every material that is relevant to the planning run must be assigned an MRP controller
number in the material master record.
You can also determine a special person for backorder processing who receives a mail if a
goods receipt was posted for a missing part. You must enter the mail name of this person

in the field entitled, recipient name.

In addition, you can define a person or a group of persons, who are to informed if you
send a mail from the MRP list or stock/requirements list to the MRP controller for the
material displayed.
Actions
5. What is MRP group and what is the use of it?
MRP Groups
In this step, you can carry out the total maintenance of the MRP groups and you can
allocate a material type to an MRP group.
The MRP group is an organizational object that can be used to allocate special control
parameters for planning to a group of materials. You can maintain MRP groups if
planning control per plant is not precise enough for your requirements and you want to
allocate certain material groups different control parameters from the plant parameters.
For this purpose, MRP groups are defined with these specific control parameters and are
assigned to the material in the material master record (MRP 1 screen).
For example, the following control parameters can be set for the total planning run:
the creation indicator for the plarequisitions, MRP lists, and so on)
the planning horizon
the consumption mode
The following is valid for total planning and single-item planning:
for all materials without an MRP group, the system uses the plant parameters, or the
entries in the initial screen of the planning run
for all materials with an MRP group, the system uses the parameters recorded in the MRP
groupnning run (creation of purchase
6. What is Purpose of Schedule Margin Key?
In this step, you specify the floats for determining the basic dates of the planned orders.
The floats are allocated to the material via the release period key in the material master
record.
Opening period
The opening period represents the number of workdays that are subtracted from the order
start date in order to determine the order creation date. This time is used by the MRP
controller as a float for converting planned orders into purchase requisitions or into
production orders.
Float before production
The float before production represents the number of workdays that are planned as a float
between the order start date (planned start date) and the production start date (target start
date).
On the one hand, this float is intended to guarantee that delays in staging a material do
not delay the production start. On the other hand, the production dates can be brought
forward by means of the float to cope with capacity bottlenecks.
Float after production
The float after production should provide a float for the production process to cope with

any disruptions so that there is no danger that the planned finish date will be exceeded.
You plan the float after production between order finish date (planned finish date) and
scheduled end (target finish date).
Release period
The release period represents the number of workdays that are subtracted from the order
start date in order to determine the production order release. The release period is only
relevant for production order management.
7. What is opening period?
Opening period
The opening period represents the number of workdays that are subtracted from the order
start date in order to determine the order creation date. This time is used by the MRP
controller as a float for converting planned orders into purchase requisitions or into
production orders.
8. What is SLA ? Service Level Agreements
Service Level Agreements (SLA) define the attributes for service products (for example,
maintenance, Hotline) that have been agreed upon with the customer in service contracts.
The SLA confirms different parameters, such as response time, availability time and
system availability.
9. What are Basic Dates?
Earliest date for the execution of the production order. This date takes into account the
float before production.
If, on order creation, a planned order exists for the production order or process order, then
the order dates are taken from the planned order. When scheduling the production order
the system tries to adhere to the order dates (if necessary, with reduction measures).
If it is not possible to adhere to the basic dates and if the control parameter in
Customizing allows the basic dates to be adjusted, the system adjusts the basic dates of
the order during the scheduling run.
If the control parameter in Customizing does not allow the basic dates to be adjusted, the
order keeps the basic dates of the planned order.
If the production order is created manually, you must enter at least one order date
manually.
The scheduling type determines, which order dates you must enter.
10. What is planning time fence?
The planning time fence specifies a period within which no automatic changes are to be
made to the master plan.
The planning time fence is maintained in workdays.
11. What is Planning Horizon?

In this step, you define the planning horizon. This planning horizon specifies the period
for the "Net change planning in the planning horizon".
In this kind of net change planning, only those materials that have undergone a change
that is relevant to MRP within the planning horizon are included in the planning run.
Such materials receive a net change planning indicator in the planning file.
You make this specification for a plant. You can define an alternative planning horizon
for MRP groups
12. What is Group BOM?
Alphanumeric character string used to uniquely identify a BOM.
Use
If you assign a "meaningful" number to a BOM group, this gives you an additional way
of accessing the BOM.
The system stores the following under a BOM group:
all the alternatives in a multiple BOM
all the BOMs entered for a variant BOM
13. What is costing? How it is affected the PP?
Determining the material costs of a product.
When you calculate production costs using a quantity structure, the system automatically
determines the BOM and all the BOM items that are relevant to costing, in order to
calculate manufacturing costs.
14. What is Meaning of Customized Reports?
The report which is not using SAP standard reports.
15. In Project the Customization is comes under Which Phase?
Realization.
16. How you get the Ticket?
After release order,the reservation will provide the ticke to pick production material.
17. What are GAPS? Some Examples?
The GAPS are some issue in blue print that SAP cannot capture or prividing the client
bussiness process.
18. What is LSMW?

The LSM Workbench is an SAP System tool that supports you when copying data from
non-SAP.
systems.
19. After Doing Realization How we will check whether it is working or not?
Doing Final preparation to check using the test case from user.
20. What do we do in Realization Phase?
Provide ARICEF, Configuration Documents, integration test, BPP, UAT, Unit Test and
implements some SAP notes.
21. How to Move to the Realization Phase?
You must have some blueprints to go in next phase.
22. In LSMW which is most important Step?
Maintain Object Attributes
Maintain Source Structures
Maintain Source Fields
Maintain Structure Relations
Maintain Field Mapping and Conversion Rules
Maintain Fixed Values, Translations, User-Defined Routines
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

The Concept Of MRP In ERP

The Concept Of MRP in SAP
MRP in brief :
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. MRP looks at current inventory, current
requirements, open purchase req/orders and so on. So if a material is required to satisfy a
sales order and there is no inventory, MRP will create a planned order if the item is to be
produced in house. This planned order can then be converted to a production order by the
master scheduler. If the item is to be procured, then MRP will create a purchase req
which the Buyer will convert to a purchase order. This is just one scenario, the system is
highly configurable and will do pretty much whatever you tell based on config and
master data.
Consumption based planning

- Reorder planning
- Forecast based planning
- Time phased planning
Details of re-order planning
Our motive is to maintain optimum stock level of all the material included in the resource
planning. so in this user or system sets a particular quantity of stock as reorder point .
Whenever stock quantity fall below this point(reorder point) mrp comes into action and
generates procurement proposals according to the settings done in implementation guide
MRP run procedure
1. Create requirement or demand in MD61
2. MRP run by MD02 for a single material
3. See the result in stock requirement list in MD04.
MRP run we can carry out by
1. MD02 - single item multi level
2 .MD03 - single item single level
3 .MD01 - Total planning
4. MD04 Check MRP
5. MD05 MRP lists
For PP, you require following Master Data
1. Material master (MM01)
Tips: Create same Material Code in Different Company Codes
2. BOM (CS01)
3. Routing (CA01)
4. Work Center (CR01)
5. CK11N / CK40N - Cost Estimate
Production Cycle: 1. PIR (Planned Independent Reqmt. - MD61)
2. MD02 - MRP Run
3. MD04 - Stock Requirement List
Tips: MD04 - Inconsistencies after PGI - SDRQCR21
4. CO40 - Convert Planned Orders to Production Order OR CO01 - Create Production
Order
5. Here in Production Order - Schedule Order, Release order
6. MIGO / MB1A - Goods Issue against Order (Mvmt Type 261)
7. CO11N - Production Operation confirmation
Tips: Add An Entry Field In CO11n
8. MIGO / MB31 - GR against Prd order

9. CO02 - Technical completion of order

10. KO88 - Order Settlement
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Why used Planning tools like APO or I2?

APO and I2 are Finite PLANNING tools. When MRP runs with APO or I2 (or Red
Pepper or Manugistics), it takes Capacity issues into consideration. MRP in SAP R/3
Core does not, it assumes infinite capacity available. (MRP only looks at material
availablity.)
However, SAP R/3 DOES do finite SCHEDULING, which is where the system
'dispatches" operations on a production order until it fills up the capacity available, then
moves to the next time period and dispatches until that period is filled up. In SAP speak,
that is called capacity leveling.
I believe APO should only be used in very large companies (billions) because of the
amount of master data that must be maintained, and that data better be ACURATE, or
you've wasted a heck of a lot of time. By the way, APO stands for Advanced Planner and
Optimizer tool, obviously a German sort of name!
Differences between planning and scheduling, finite and infinite
R/3 does planning without consideration for capacity situations. So if MRP says you need
500 parts on 3/1/04, it schedules them all to be built at the same time, even though you
can only do 100 at a time. Assume you have a fixed lot size of 100, you'll get 5 planned
orders for 100 to start on the same day. This is "Infinite Planning". APO would recognize
that constraint, and instead schedule out the 5 orders over time. The important part of that
is that it also will schedule out the deliveries of the components for 5 different days. This
is "Finite Planning".
Now, assume old fashion MRP. It schedules all 5 orders for the same day, and the buyers
go out an get all of the components for the same day. Then the planner realizes he can't do
all 5, and manually changes the schedule, and manually spreads out the 5 orders. The
buyers will recieve rescheduling notifications, but not until the scheduler does the manual
rescheduling. You could call this "Infinite Scheduling", but that only means the same
thing as Infinite Planning.
But, SAP has "Capacity Leveling". What that means is you run another program after
MRP (CM27 and CM28), which can be run in batch mode overnight. (There is a ton of
configuration and thinking that will be required to do this!). The capacity leveling
program will recognize the constrant at the work center level, and fill up the first day,

then re-schedule the next order to the next available capacity, then the next order searches
for available capacity, and so on. This is called "Finite Scheduling". The problem with
this is the opposite of Infinite Planning, which is it doesn't take Material availablity into
consideration! The system will re-schedule a production order without thinking about
whether the materials will be available or not.
Finite Planning does Finite Sheduling at the same time. If there is no capacity available
on the desired date, the system looks for when capacity IS available. Then it stops to see
if Materials will also be available (usually based on the lead-time for those components).
If there is a material problem, then the system figures out when the materials WILL be
available, and then
checks to see if capacity is available on THAT day, and if so, it blocks off capacity, and
allocates the materials for that day
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Difference between MRP vs MPS

Explain the difference between MRP & MPS. Though both components gives you
the requirement list, what we gain out of MPS run rather than running MRP. What
is the main idea behind this?
The following might help in explaining the difference between MPS and its counter part
MRP.
Master Production Schedule (MPS) :
MPS operates within only one level of the BOM, While MRP can be utilized throughout
all levels of a materials BOM. If a MPS is run on a material, the necessary orders are
planned at that level. Dependent requirements (if any) are placed on the next BOM level
down, and then the process stops.
Main Idea : Master production scheduling (MPS) is a form of MRP that concentrates
planning on the parts or products that have the great influence on company profits or
which dominate the entire production process by taking critical resources. These items
are marked as A parts (MPS items) and are planned with extra attention. These items are
selected for a separate MPS run that takes place before the MRP run. The MPS run is
conducted without a BOM explosion so that the MRP controller can ensure that the
Master schedule items (MSI) are correctly planned before the detailed MRP run takes
place.
The master production schedule is a line on the master schedule grid that reflects the
anticipated build schedule for those items assigned to the master scheduler. The master
scheduler maintains this schedule, and in turn, it becomes a set of planning numbers that
drives material requirements planning. It represents what the company plans to produce

expressed in specific configurations, quantities, and dates. The master production

schedule is not a sales item forecast that represents a statement of demand. The master
production schedule must take into account the forecast, the production plan, and other
important considerations such as backlog, availability of material, availability of capacity,
and management policies and goals. Syn: master schedule.
Material Requirements Planning (MRP) :
A set of techniques that uses bill of material data, inventory data, and the master
production schedule to calculate requirements for materials. It makes recommendations
to release replenishment orders for material. Further, because it is time-phased, it makes
recommendations to reschedule open orders when due dates and need dates are not in
phase. Time-phased MRP begins with the items listed on the MPS and determines
(1) the quantity of all components and materials required to fabricate those items and
(2) the date that the components and material are required. Time-phased MRP is
accomplished by exploding the bill of material, adjusting for inventory quantities on hand
or on order, and offsetting the net requirements by the appropriate lead times.
MRP Interview Questions:
What is the need of mrp list if stock requirement list is already there?
The MRP list displays the result of the last planning run. Changes that have occurred
between planning runs are ignored in the MRP list. In contrast to this, the system
displays all changes in stock, receipts and issues, which have currently occurred, in the
stock/requirements list.
Which tcode are used to run MRP?
- MD01 is generally used to run the MRP for all the materials in a plant normally just
before go-live.
- MD02 is used to run MRP for materials which have a BOM i.e multi-level.
- MD03 is used to run MRP for materials which do not have a BOM i.e single level.
+++++++++++++++++++++++++++++++++++++++++++++++++++++

SAP Factory Calendar

Factory calendar contain company specific dates such as alternate working Saturdays,
Plant shutdown etc.
You can create your company factory calendar via transaction code 'SCAL'.

Assignment of the factory calendar by plant is done in transaction code 'SM30 V_T001W'.
An example of a SAP application that uses the factory calendar is the SAP MRP modules.
Assuming that you have a specified an alternate working Saturday, MRP will postponed
the planned orders to the next working day if it happened to falls on a non-working
Saturday
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

GR processing time in PP and MM

I have one material number that is procured externally but also produced inhouse.
Now I have one problem with the GR processing time. As far as I can see the
parameter on the material master on MRP2 view and Purchasing view is the same
(MARC-WEBAZ). But in my case the GR processing time should be only used for
goods receipts in MM (from purchase oders). This GR processing time must not be
added to my lead time scheduled in production (when producing the material). How
to solve this conflict?
We have a make to order enviroment, that means our production orders are created
(and scheduled) directly from the sales order. The sales gets back a confirmed date
and quantity from production order scheduling - and here this GR processing time
is also added. Absolutely useless in this scenario, but MM needs this GR processing
time for the external procurement of the material.
I'm hearing at least two problems here. Let me lumber through them as I see them.
#1 - We have a make to order enviroment, that means our production orders are created
(and scheduled) directly from the sales order. The sales gets back a confirmed date and
quantity from production order scheduling - and here this GR processing time is also
added. Absolutely useless in this scenario, but MM needs this GR processing time for the
external procurement of the material.
The GR processing time is quite legitimate, and needful. It represents the time it takes
once a material is 'delivered', before it is usable. If that is instantaneous for you, then this
field is blank. In fact if it is less than one day, the field should be blank. (MARCWEBAZ) If you DO have to do testing or documentation or even just 'checking' to be
sure the proper certificates
have arrived with this material, then it's nice to have a day here for this. --- I may have
overlooked one thing, if you are ONLY thinking of the FERT that your customer ordered,
then maybe this field seems trivial. However, if your process requires that the FERT be
purchased from some other company (or even supplied from within YOUR company),
then there IS a receiving process that has to happen . . . it does take time to back a truck

up, get a fork truck to unload it, the

identification process, and then relocating the item to where it can be shipped to your
customer.
Also, if you produce this item, then there are 'other' items that need to be 'built' into this
item . . . THEY need the GR field, even if you produce the saleable item, it has to be
'received' from production into inventory for you to ship it out.
There is another field that should be considered. This is the procurement lead time. The
time it takes for purchasing to "react" to the requirement. When the sales order is placed,
the signal will come for 'purchasing' to occur (via MRP perhaps). Purchasing MAY take
as long as a day to get that order to a vendor where the vendor can now react. This time is
generally a 'standard' time for any given plant/purchasing org and is included using
OMDT.
Thirdly, the vendor lead time has to be considered. This is what the field "Planned
delivery time" (MARC-PLIFZ) is about. The vendor's turn around time - from the time
they are notified of your intention (via a PO perhaps), until they can put it on your
dock . . . that is what this field is about. And MRP knows the difference between this field
and the others. Between the three fields mentioned, the 'purchased' item is properly
planned for . . . except for the exceptions and the fact that this is all based on "norms" and
averages which never seem to be exactly what is needed, but that's another discussion .
Next we think of the situation where the item requested is produced by us. In this case (as
mentioned before), the GR is STILL legitimate - perhaps not needed if it takes less than a
day for your company to receive material from production, inspect it, certify it, and load
it up.
However, a "0" is a legitimate entry to this field.
What is also needed is a place to locate the time for "producing" this item. That is where
there are options. One option in MRP 2 is the field "in-house production" (MARCDZEIT). This is sometimes useful, but dangerous. It assumes that no matter how large an
order is or how much of a material is needed, it can always be produced in the same
period (in 'days', of course). The number of days fits in this field.
If that doesn't 'do it' for you, you can go to the "Work Scheduling" view of the Material
Master and include the details for the fields under the "in house production time in days"
grouping (Setup time; Interoperation; Processing time; and base quantity). At LEAST this
gives the system a 'shot' at planning longer times for greater quantities. If you fill both
data points in (in
house production time and " in days, the 'in days' will supercede the other).
Now you've put in all the data that you HAVE to input to have the system plan the length
of time needed for telling your customer when you will have their product ready for
them.

In the case of your conflict where you produce OR source the item, then you MAY have a
problem with GR - look at both scenarios and see what your entry should be. You CAN
use the Total Replenishment Leadtime (MARC-WZEIT) field to be the TOTAL TIME
when producing the material in-house, because the external replenishment does not look
at this field. So MRP will run and depending on how you have it set, it will consider
purchasing the material, or making the material, and the fields we've mentioned will
impact the result as mentioned.
+++++++++++++++++++++++++++++++++++++++++++++++++++

Calculation to determine the delivery date and release

date
There have been three parameters that SAP will take it into calculation to determine the
delivery date and release date during material requirement planning. They are 1) Planned Delivery Time which is the vendor-dependent lead time being measured from
the time PO is outputted (for sending to the vendor) till the time the shipment is delivered
at the warehouse.
2) GR processing time represents the necessary period of time being required for
receipting the shipment into the warehouse. This period is, usually, for quality and
quantity inspection.
3) Purchasing Processing Time. This is the internal required time for processing the
purchasing document (Purchase Requisition) till Purchase Order. You can set it up plantwise via Transaction OMI8.
With these three parameters, it is possible that you can set it up correctly in your system
to enable the appropriate planning of your material requirement
+++++++++++++++++++++++++++++++++++++++++++++

Purchasing processing Time OPPQ

Please refer above subject and would like to do following. External Processing Time
I have set in using OPPQ. My client want this time set differently for different
Vendor. Is there any userexit or customization settings?
For MRP to take lead time by supplier, you need to have 3 settings:

1) The config in OPPQ - External procurement at plant level (or OPPR at MRP grp Scheduling/doc. type) should have the check box marked to read
SchedAgreem/Inforecord leadtime (T399D-GTERM)
2) You should have a contract/schedule agreement, or a purchase info record maintained
for that plant-material-vendor combination
3) You should maintain source list (ME01) for the contract/schedule agreement, or info
record. This changes the default behavior of MRP to use leadtime by supplier, rather than
material master leadtime. When both contract and info record exist, the contract will take
precedence.
Please watchout for the case if you're already using contracts/info records in
procurement, but not using them for planning. In this case your leadtime data in these
documents may be incorrect, or may be left blank - this will be interpreted as zero if you
make this change implementation, as mentioned in the steps above
++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Define Safety Stock Availability

The IMG can be set in SM30 - V_438M_S
You define per plant and per MRP group the percentage of the safety stock that is to be
available for planning. This helps to avoid a situation where order proposals are created
unnecessarily by the system to cover small shortage quantities.
For example:

Safety stock:
available for planning:
Shortage quantity

Mat. 1

Mat. 2

Mat. 3

100 pc

100 pc

100 pc

0%

50%

50%

1 pc

1 pc

51 pc

Order proposal quantity

for lot-for-lot order qty 1 pc

0 pc

51 pc

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Questions on MRP Group and MRP Controller

MRP groups are used when the plant division for planning is not enough for the division
of the different materials MRP requirements. You assign different groups according to the
requirements to run MRP (different Settings). These settings will be taken in account
when you run MRP for single item or total planning.
MRP controller is the person in charge of the MRP run for the materials. It is still a
further division on your MRP. This is work load related. You can have one MRP
controller for materials with different MRP groups.
On your MRP group, you will define the parameters for the MRP run. These parameters
are calculated in accordance with the settings on your material master MRP views.
Available stock =
Plant stock - safety stock +
receipts of (purchasing orders + purchasing agreements + production orders) required quantity.
This means that all the requirements are calculated in the bases of your material master
settings and your MRP group settings.
What if nothing happens when you run MRP?
The reasons could be :- You have purchase requisitions that are delayed but the delivery time has not been
updated on the system.
- The settings on your material MRP screens are not correct, i.e. your material have not
yet
entered the re-order point level.
- Your requirements have not been taken in account when running MRP.
Assuming that everything is well and the requirement has been calculated, go to
transaction code MD04 and verify that the different requirements are reflected in the
MRP list and also if there is any purchase requisition scheduled by the system. Verify also
if there is any other delivery schedule that will exceed the actual requirements.
If the purchasing requisition is there, the only thing that you have to troubleshoot is the
message to tell you that the purchasing requirement was calculated.

If the requirement is not there, re-visit your material master and check your settings for
the MRP group.
What is the real meaning and usage of the followings configured in PP:
1. MRP Controller;
2. Schedule margin key;
3. MRP group;
4. MRP profile.
1. MRP Controller
This will help you to group the material for some controlling purpose. You can run mrp
by mrp controller.
you can do evaluation by mrp controller. This will help us if have different people in one
organisation involved in purchasing.
2. Schedule margin key
This will help you to determine the floats. In case if you have production order you can
see the impact of floats
3. MRP group
This will help you for the material to reac in tems of the settings made relavant to each
group. To know more details on the group you can chek the tcode oppr.
4. MRP profile
We can have some prefixed datas in the profile and and we can enter teh profile for diff
material so the values will copied as defaulted in the profile
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Daily Task Of MRP Planner Using MD06

This is to give you an idea of the daily task of a Planner using tcode MD06
Tcode MD06 - MRP List: Initial

Enter plant
Optionally, enter date/exception group/Processing indicator/material data, to
limit the number of records. Execute.
System will create a list of all materials that satisfy the previous selection.
Now, Select Find (binoculars).

If you have a large number of entries (such as 20,000) you will get a popup
asking about statistics. Say yes.
Select 'Find Exceptions' tab.
Here you will get a summary, by exception number, of each exception
contained in the previous list.
If you wish to process ONLY one or more of these exceptions, select the ones
of interest.
Now hit green check (Find exceptions).
You will be returned to the original list.
The items highlighted will be the items that have the exception(s) you selected.
Select glasses (selected mrp lists).
You will be taken to the first HIGHLIGHTED item in the list.
Perform your planning tasks.
When done, select 'next list' icon, or Ctrl-F2.
It will take you to the next HIGHLIGHTED item on the list.
Repeat.
Continue until it is time to go home.
Repeat tomorrow.
This is part of the daily job of becoming a MRP Planner.
++++++++++++++++++++++++++++++++++++++++++++++

Explain MRP profile, MRP group, MRP controller,

MRP type

Please explain what you understand about MRP profile, MRP group, MRP
controller and MRP type.
MRP Profile : All the MRP 1,2,3,4 views in the material master data are entered in this
profile and create MRP profile.
When you are creating Material Master in MM01 while entering the plant and storage
location enter your MRP profile so that you do not need to enter the MRP data again
MRP Group: It is a planning strategy for carrying out the MRP.
In this group there are two types from procurement side
1) MADE TO ORDER
In this once sales order is booked, MRP will run and the P.R will be converted to P.O.
2) MADE TO STOCK: Depends on the forecast model they will plan material and keep
the finished product in STOCK
You can create the MRP Group so that material can be tracked.
MRP groups are used when the plant division for planning is not enough for the division
of the different materials MRP requirements. You assign different groups according to the
requirements to run MRP (different Settings). These settings will be taken in account
when you run MRP for single item or total planning.
Setting --> SPRO --> MM --> Consumption based planning --> Define MRP group.
MRP controllers : It is like a production controller in an industry. He will plan all the
required material for the daily plan.
It will be classified according to the materials & Buyer like
Casting - one MRP controller
Forging - One MRP controller
All Bought Ourt - One MRP controller
Sheet Metal - One MRP controller
MRP controller is the person in charge of the MRP run for the materials. It is still a
further division on your MRP. This is work load related. You can have one MRP
controller for materials with different MRP groups.
Setting --> SPRO --> MM --> Consumption based planning --> Master data --> Define
MRP group.

MRP types : In the MRP types different categories are there

1) Produce to Demand
2) Consumption based planning
3) Forecast based planning
It is procedure that you set in the system on how the Material is planned
- Reorder Point
- Seasonal requirement
- Replenishment
- Vendor Managed
- Forecast Based
- Master production Scheduling
Setting --> SPRO --> MM --> Consumption based planning --> Master data --> Define
MRP types
++++++++++++++++++++++++++++++++++++++++++++++++++

How to Take The MRP Run for Individual MRP

Controller
When you want to run MRP, entry user exit key and put your MRP controller as user exit
parameter

To define the user exit key, goto SPRO -> MRP -> Planning -> 'User exit material
selection - MRP'.
Then, go to SAP enhancement (SMOD) = M61X000, and add this code :
CLEAR: NO_PLANNING, STOP_PLANNING.
CASE USER_KEY.

*----------------------------------------------------------------------*
* select materials for one MRP controller (specified in user_par)
*----------------------------------------------------------------------*
WHEN 'XXX'.
*MRP user exit key define in spro
UXPAR = USER_PAR.
CONDENSE UXPAR.
WRITE UXPAR+0(3) TO DISPO.
IF DISPO IS INITIAL.
EXIT.
ENDIF.
IF MT61D-DISPO <> DISPO.
NO_PLANNING = 'X'.
ENDIF.
ENDCASE.
Definition: MRP controller
In a manufacturing plant, a person will be identified and will be responsible for a group
of materials. Material that takes part in material requirements planning must be assigned
to an MRP controller.
MRP will guarantee material availability and once you run MRP, it will be helpful in
planning as to whether what quantity a component should be procured or what quantity
should be produced in-house. Through MRP, you can automate procurement proposals
for purchase and production.
MRP Controller is assigned in material master MRP1 view
++++++++++++++++++++++++++++++++++++++++++++++++++++++

Individual Collective Requirement Indicator

What is the relevance of individual/Collective Requirement indicator from MRP4 view of
material for Finished product as well as its sub assemblies in case of make to Stock
planning strategies.
Answer:
Individual & collective indicator plays a major role in MRP.

If you set Individual indicator for both header material and dependent material, then if
sale order comes for 100 qty, then During MRP run system will create a plan order with
reference to sale order and for dependent material, system will plan dependent material as
sale order relevant. System won't consider warehouse stock for that sale order.
If you set collective indicator for dependent material system will consider warehouse
stock for dependent material.
MRP-4 as 1 : In individual planning, this indicator is used to display the dependent
requirements of a component separately.
MRP-4 as 2 : In collective requirements, this indicator is used to display the dependent
requirements of a component grouped together.
This Indicator is useful to control the planning of dependent requirements if the main
product is being planned with strategy 20 i.e.; MTO Process.
MARC-SBDKZ indicator controls whether individual or collective customer
requirements planning is allowed for dependent requirements means low level in BOM.
If you define individual requirements for explosion, dependent requirements for a
component are shown individually on the superior low-level code.
If you define collective requirements for explosion, required quantities for the material
are summarized independently of the sales order.
In the MTO scenario, if you want to check the unrestricted raw material stock when you
run the MRP for sales order. Please check by selecting individual/collective requirement
as 2.
Please note:
- If you select individual requirement then system will not consider available stock and
generate Proposals for every single requirements. Also you will find PR and Plan order
with account assignment of Sales order (in case of MD50).
- If you select collective requirement then system will not generate planning proposals
through MD50. In that case you have to go for individual MRP (MD02 / MD03 / MD41 /
MD42).
For FG stock you can assign to sales order through MB1B by 412 E movement type
++++++++++++++++++++++++++++++++++++++++++++++++++

PP - The Common Planning Strategy used

The planning strategies are maintained in Customizing for Demand Management in
SM30 - V_T461S.
Define the Planned Requirement Type and assign the requirement class in OMP1.
Define the requirement class in OMPO.
Check the independent requirement and consumption of requirement class in OMPC.
Maintain the message for invalid requirement type in OMPJ.
You define the strategy group in SM30 - V_T461P.
You define the Plant to MRP group in SM30 - V_T438M_S.
Maintain the consumption mode and period of adjustment in SM30 - V_T438M_V.
Listed here are some common used planning strategies :Strategy 10 in summary :1. Sales Order creation - no impact.
2. Goods Receipt - reduce the planned independent requirement during MRP run
For e.g. if PIR is 100, quantity remained as 100 in PIR, however during MRP run,
100 will not be included in the MRP planned as stock is available.
3. Delivery - minus the quantity for the oldest planned independent in demand
management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).
10 LSF

Make-to-stock production

KSL Sale from stock without independent

requirement reduction

Choose this strategy if you want production to be determined by a production plan

(Demand Management) and if you do not want sales orders to influence production
directly.
You must maintain the following master data for the finished product:
Strategy group 10 on the MRP screen.
Item category group (for example, NORM) on the Sales Organization screen.
Availability check field in Customizing so that you perform an availability check

without replenishment lead times (in the standard system, you must enter 02 here).
In net requirements planning according to strategy 10, the order does not create a
requirement; the sales order is displayed, but does not generate planned orders.
The planned independent requirement is reduced during processing of the goods issue.
Old quantities can still be retrieved by using either
Goto -> Schedule line history in Demand Management, or by using the total requirements
list
(Evaluations -> Display total requirements from the Demand Management menu).
The quantities issued are displayed in the Withdrawal quantity field.
The system always reduces the oldest planned independent requirements unless the
consumption fields (Consumption mode, Fwd consumption per., Bwd consumption per.)
are maintained in the material master or in the MRP group.
11 BSF Gross planned independent requirements KSL Sale from stock without
independent
requirement reduction
Strategy 11 in summary :1. Sales Order creation - no impact.
2. Goods Receipt - minus the quantity for the oldest planned independent in demand
management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).
3. Delivery - no impact as delivery is issue from sales order.
This strategy is particularly useful if you need to produce, regardless of whether you have
stock or not. For instance, steel or cement producers might want to use this strategy
because they cannot shut down production; a blast furnace or a cement factory must
continue to produce, even if this means having to produce to stock.
You need to maintain the following master data for the finished product:
Maintain strategy group 11 on the MRP screen.
Set the Mixed MRP indicator to 2 on the MRP screen.
Maintain the item category group (for example, NORM) on the Sales Organization
screen.
Maintain the Availability check field so that you perform an availability check
without the replenishment lead time (checking group 02 in the standard system).

Strategy

10

11

Stock is taken into account

Yes

No

Reduction of planned independent

requirements takes place during goods issue for ... goods receipt for a
production
the delivery order (discrete
production),
for a planned order (repetitive
manufacturing), or for a purchase
order (trading goods).
20 KE

Individual sales order without

consumption

Strategy 20 in summary :1. Sales Order creation is the only impact.

2. Demand management not in used.
In make-to-order production, a product is produced specifically for an individual sales
order. This planning strategy is used when planning of the (parent) product is not required
or not possible. Neither Demand Management is involved in this process, nor is there an
allocation mechanism. Orders are taken as they come. This strategy represents a
production procedure in which each product is only produced once, although over time
the same or similar production processes are repeated. Each product is specifically
produced for an individual customer so that the finished product is rarely placed in stock.
You also must maintain the following master data settings for the finished product:
Strategy group 20 on the MRP screen
Item category group (such as NORM) on the Sales Organization screen
Sales Order -> MRP -> Customer Stock Finished Product -> Delivery ----+
^
|
|
|
+-------------------------------------------------------------------------+
Reduction
40 VSF

Planning with final assembly

Strategy 40 in summary :-

KSV Sales order with consumption

1. Stocks on hand reduces the PIR during MRP run.

e.g. if stock is 100 and PIR is 100, MRP run will not prompt 100 for procurement.
if stock is 0 and PIR is 100, MRP run will prompt 100 for procurement.
2. Sales order creation reduces the PIR.
e.g. if PIR is 100, sales order 90, PIR becomes 10 (withdrawal 90).
3. Delivery reduces the Sales Order.
This strategy is probably the most widely used make-to-stock strategy. It makes sense to
use this planning strategy if you can forecast production quantities for the final product.
Planned independent requirements are consumed by incoming sales orders so that the
master plan is always adjusted to suit the current requirements situation. This means that
the important feature of this planning strategy is that you can react quickly to customers
requirements. The smoothing of the master plan is less important.
You must maintain the following master data for the finished product in the material
master:
Strategy group 40 on the MRP screen.
Consumption parameters (Consumption mode, Bwd consumption, Fwd
consumption) to allow
consumption of independent requirements. If no consumption parameters are
maintained in the
material master, the system uses default values are taken from the MRP group.
To control consumption, you maintain a consumption mode as well as a
consumption period.
Item category group (for example, NORM) on the Sales Organization Data screen.
Four important points :1. Planned independent requirements are used to trigger the procurement and production
of
the necessary assemblies and components before receipt of the sales orders.
2. As soon as the sales order is received, it consumes the planned independent
requirements.
3. An ATP (available to promise) logic during sales order processing will checks
whether
sufficient planned independent requirements have been planned to cover the sales
order.

4. Requirements from the sales orders are passed on to production and can lead to
changes
made to procurement if the requirements from the sales orders exceed the planned
independent requirement quantities. If there is insufficient coverage of components
(the sales order quantities exceed the planned independent requirement quantities), the
sales orders cannot be confirmed. The system therefore automatically adjusts the
master
plan. Planned independent requirement quantities that are left unconsumed increase
the
warehouse stock of the finished product.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++

Why Planning file entry still Exists?

Does anyone know why a planning file entry would exist for NETCH or NETPL
when there has been NO activity on the material since the last planning run? No
movements, no PO's created, no Orders taken, no activity whatsoever . . . and MRP
ran, created a planned order, which was converted to a requisition and then a PO.
This PO was converted for a date earlier than what MRP recommended.
Now each time MRP runs, we get exception #15 - delay the order until later (gives
date). We don't change it and the planning file entry doesn't go away, even after the
run.
Found a note that seemed to apply, but . . . I guess it doesn't really.
"If the planning run terminates for a material with planning file entry on account of
an error message, the planning file entry is not deleted if this is not explicitly set in
customizing. In transaction OMDY, you can set for which errors (message number)
you want the planning file entry being deleted."
I thought this was my answer. However, after looking in OMDY - the message #015
= Dates incorrect (start date > finish date). And message #15 = Enter value for
version number increment (VersNumIncr.).
Neither of these defines my MRP List exception message 15 = "Postpone process
(28.06.2004/26.06.2004)" - on a current date of 03/06/2004. It's CLOSE, but not the
first message.
So if I set the field for the deletion of the planning file entry, it still wouldn't affect
my real problem - trying to get this entry to 'go away' after doing what it was
supposed to do.

Please Check CS15 - where used list. May be this material has been added to a BOM of a
product/Assy, which has caused an entry in planning file.
Check MD04 for the source of reqt.
Also check MD63, if a PIR exists.
If not, delete from planning file. Try report RMMDVM10 - consistency check.
======================================================

Total Planning & Netch, Netpl, Neupl

What is the difference in between total planning & netch, neupl, netpl?
By : Sankaran
1. Regenerative planning (NEUPL): System plans all the materials that are contained in
the planning file
2. Net change planning (NETCH) or Net change planning in the planning horizon
(NETPL): The system only plans materials that have undergone a change relevant to
MRP since the last planning run.
NETCH: In net change planning only those materials are planned for which the net
change planning indicator in the planning file has been set as a planning file entry. The
system usually sets the indicator automatically as soon as a change is made to the
material that is relevant to MRP.
NETPL: The system only plans materials that have undergone a change that is relevant to
the planning run within the period which you defined as the planning horizon. The system
sets the net change planning horizon indicator automatically for these materials
Remember the following point : The changes cause an entry in the planning file to be
made:

Changes to stock, if these change the stock/requirements situation of the material

Creation of purchase requisitions, purchase orders, planned orders, sales
requirements, forecast requirements, dependent requirements or reservations
Changing to fields that are relevant to the planning run for these receipts and
issues or in the material master
Deleting receipt or issue quantities

=======================================

How The MRP Planning File Works

How this planning file works? I have created a material with MRP type PD for
netch and netpl, both entries are showing in the planning file (MD21). How the
system know which scenario to considers, netch or netpl or neupl?
The first process when you run MRP is that it check for the materials in the planning file
enty with the relevant indicators(NETCH / NETPL).
When the materials are created with the relevant mrp data, then an entry is created
automatically in the planning file(MD21).
In order to create (or to get the entry automatically) in planning file the basic prequisite is
that you need to activate the MRP for the required plant (OMDU).
With respect to the selection criteria you take during the MRP run (MD02) like NETCH /
NETPL, this indicator is checked for the material. if the material is marked for the
relevant indicator than that material is planned.
So in order to plan a material PLANNING FILE ENTRY is must.
If you do not activate MRP (OMDU) then there will not be any entry in MD21.
So as soon as this is activated and you create any new material than the entry of this
material is created automatically in the planning file.
So if you want to create any entry in planning file manullay you can go with transaction
MD20.
The difference between NETCH / NETPL & NEUPL is:
When you select NEUPL (Regenerative planning), the system plans for all the material
which are in the planning file. This is mostly used when you run the MRP for the first
time or in case like after major changes of master data or after mass upload of the
materials.
When you go for NETCH planning, MRP first check for this indicator in the planing file
and plans. This indicator is checked if the material has undergone some changes with
reference to the previous plan.
Changes like:

Changes in stock or in MD04

Changes in purchase requisition, purchase order, sales order, reservations,
dependent requirement, forecast requirement...
Deleting reciepts and issue element

Changes in material master concerned to planning run.

When you go for NETPL (net change planning in planning horizon), those materials are
only planned which has undergone changes for the planning run in the specified horizon.
This is mentioned in the planning horizon
++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Processing Keys In TC MD02

Explain about processing keys in tc md02 ie netch, netpl etc.
By : Jia
Processing Key :MD02
1. Regenerative planning (NEUPL) : System plans all the materials that are contained in
the planning file
2. Net change planning (NETCH) or Net change planning in the planning horizon
(NETPL) :The system only plans materials that have undergone a change relevant to
MRP since the last planning run .
NETCH: In net change planning only those materials are planned for which the net
change planning indicator in the planning file has been set as a planning file entry. The
system usually sets the indicator automatically as soon as a change is made to the
material that is relevant to MRP.
NETPL:The system only plans materials that have undergone a change that is relevant to
the planning run within the period which you defined as the planning horizon. The system
sets the net change planning horizon indicator automatically for these materials
Remember the following point : The changes cause an entry in the planning file to be
made:

Changes to stock, if these change the stock/requirements situation of the material

Creation of purchase requisitions, purchase orders, planned orders, sales
requirements, forecast requirements, dependent requirements or reservations
Changing to fields that are relevant to the planning run for these receipts and
issues or in the material master
Deleting receipt or issue quantities

+++++++++++++++++++++++++++++++++++++++++++++++++++++++

Planning Strategy Selection

Selection priority for planning strategy is:

First material, second MRP group and last plant parameters. E.g. System first checks for
material, if strategy is defined there, that is used, if it's not maintained there, then it
checks if it's defined in MRP group.
That is the same for all MRP parameters, not only strategy.
If you wanna test how it works, try this:
1. create an mrp group, say 0001, and assign strategy group "40 - planning with final
assembly" in the MRP group parameters.
2. create a material, say product1 and define planning strategy as "20 - make to order".
And also enter the MRP group 0001 in material master.
3. Create a sales order and create an order item for product1.
4. In the sales order header, go to the Procurement tab. There, you will see the
requirement type for product1, which is automatically selected by system according to
the planning strategy it uses. That requirement type should be "KE" if strategy 20 is
selected, or it should be "KSL" if strategy 40 is selected by system.
5. In my test, system selected KE requirement type, which indicates that system used
strategy 20, and which I have entered in the material master. It didn't select KSL, which
indicates that system uses strategy 40, which is entered in the mrp group. Finally, this test
shows that system takes the planning strategy in material master (if it's entered), not the
strategy in MRP group.
I think you can now make another test how system uses MRP group's planning strategy.
(hint: Delete planing strategy from the material master and repeat the previous test steps.
That would end up using strategy 40, which is selected using the MRP group parameters.)
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

MRP Monthly lot size

Appreciated if some guide can be provided.
MRP lot size has been set to MB (Monthly lot size)
It is known that with this setting, material are always bring in on the first working
day of the month.
Ex: Dep requirement 26-10-04 100 pcs
Dep requirement 30-10-04 190 pcs

When MRP completion, the PR item shown 1-10-2004 290 pcs, is that any possible
to bring in material just right before dependant requirement 26-10-04 say about 24
or 25 of the month.
Because. we dont tend to keep more stocks until actual requirement.
Any comment are welcome.
In that case you might like to consider lot size key WB (weekly). It will bring in material
at the first working day of the week. In your case it is Oct 25, 2004
But in this case, I will have increase administrative cost on monitoring the material
lot weekly.
I want to have monthly lot size that group all the requirement, but bring in material
as close as possible on the first requirement.
Any comment are welcome..
How about manually change delivery date in PO item
Check your config. in OMI4 - scheduling may by ''1'" for Lot size of MB.
Change to Blank.
Friend PPS is correct, Schedule the "REQUIREMENTS DATE = DELIVERY DATE"
option in Customizing for Lot Size MB (use Blank instead of 1) & your reqt 'll be met...
We have similar problem and when I applied your solution, the proposed
requirement date is perfect.

++++++++++++++++++++++++++++++++++++++++
Reservation Not Created During MRP Run
I have created a planned order thro MRP run, but reservation for raw material is
not created, even though stock is available. After conversion to Production order
reservation is created. After confirmation and goods reciept MB31 final product is
updated in storage location, but raw material quantity is not reducing.
Can any one give solution for this.
Gururaj Hebbar
PART I
After MRP run, based on the demand Planned order will be created and for the BOM
components sytem will create dependent requirement if stock is available. If stock is not
available system creates a planned order or a purchase requistation. Once the planned

order of the Header material is converted into a production order , then system converts
the dependent requirement into reservations.
PART II
After confirmation and goods reciept if the item components are not consumed, it means
you have not defined backflush process. If you want to issue manualy to the order u can
use T-CODE MB1A, for the same.
K. Prasobh
1. Check backflush indicator either in routing /workcenter or in material master.
2. In customization production control -operations-confirmation ( general individual entry
screen ) check-- post open reservation . It will post open reservation while confirmation.
3. After doing this cross check failed goods movements

++++++++++++++++++++++++++++++++++
How to Configure Range Of Coverage Profile
I am trying to configure the range of coverage profile to provide a 6 months safety
stock, in which the 'target cov' field should be populated with 180 days, but the that
field only accepts 2 characters max. Is there another way of accomplishing this or
am I doing something wrong. Please let me know. The current setup is:
- Period Indicator = M (Month)
- Type of Period = 1 (Workdays)
- Range of coverage in the first period:
- Min = blank; Target = 90; Max = blank
In this Target value accepts only digit numbers.
Muthu Chinnadurai
Yes the system accepts only two digits. But since you want stock coverage for 180 days.
Use target as say 60 and the number of periods as 3 . Try it and keep us posted. But the
one other issue is the system calculates the dynamic safety stock.
It easy to calculate the stock for the first period but for the later periods its difficult. So if
later there is a problem with the quantity then its difficult to calculate or cross check what
system has proposed.
Raj
Using target as 60 and number of periods as 3, only results in system maintaining safety
stock for 60 days for first 3 periods. I found out that there is no way out of this. Strange
that SAP wouldn't let the companies plan for inventory coverage more than
99 days. This is a pharmaceutical client whose procurement lead times are more than 5

months for some of the materials, where they want to maintain a 6 month coverage and
SAP wouldn't allow to achieve it. Am I doing something wrong here. Is there another way
of maintaining dynamic safety stock for 180 days requirements coverage? Please share
your knowledge.
Muthu
Please let me know in details how the profile coverage works in SAP. In details means
how it is being calculated and what is being considered. As I am figuring how I could
make use of this function that my customer require us to keep 15 days inventory and
customer forecast flucuates drastically every week.
Thanking all in advance for your kind advice and help.
Alicia
In customizing in MRP calculation menu , you have Range of coverage. Define the range
of coverage you want , as you said 15 days for a period of 3 months. Then in the profile
first fill the Avg. daily req data and then the range of coverage data.
Use this profile in the material master mrp II view(I think), in range of coverage.
As far as calcualtion are concerned its very to calcualte the Qty for the first period and
then for the later periods its difficult.
May be I am wrong, just try and keep us posted
Raj
The Range of Coverage profile is define specific to a plant in IMG and then assigned to
materials in master data MRP 2 view. To define the profile, use menu path
IMG->PP->MRP->MRP Calculation->Define Range of Coverage Profile. In the
definition, there are two sections of data that you need to fill in.
1. Parameters for calculation of average daily requirements and Period indicator.
2. Minimum, Target, and Maximum stock calculation parameters.
PARAMETERS FOR AVERAGE DAILY REQUIREMENTS CALCULATION:
Choose the period indicator as Month, Period, or Week.
Specify the number of periods. This is used by system to calculate the average daily
requirements.
Select the "Type of Period Length", ie. as workdays or calendar days or standard days
(days per period). If the type of period length is selected as standard days, they you have
to specify the "days per period". Using these three parameters, the system calculates
average daily requirements using the formula:
average daily requirements = Sum of requirements in the number of periods / number of
days in the number of periods.
PARAMETERS FOR TARGET STOCK AS DAY'S OF SUPPLY
Then you have to specify how many workdays of supply you want to maintain as target

stock, in your case 15 workdays. If you wanted to maintain a constant 15 days of supply
as inventory through out the planning horizon, just specify the target stock as 15 days and
leave rest of the fields as blank, i.e min, max, and number of periods. The number of
periods in this section simply maintains the target stock for that many periods from the
date of MRP run. This way you can tell the system to maintain different target stock
levels for three different period intervals. For example, if you wanted to maintain 15 days
stock for first 3 periods, then specify the target stock as 15 days and number of periods
corresponding to it as 3. The system then will maintain 15 days supply as inventory for
first 3 periods from the date of MRP run and subsequent months zero inventory will be
maintained. This will allow you to maintain your 15 days supply constantly for 3 periods.
Muthu Chinnadurai

++++++++++++++++++++++++++++++++++++++
Lose of link between sales order and production order
Issue with production order confirmation
Due to lose of link between sales order and production order due to credit check problem
The production order for higher level component lost link and was hanging out in limbo
status.
Now the production order at lower level component also loose track and they were
already released where as production orders at higher level were not released
So now lower level production orders were tecoed with BDC program as there were 1200
production orders to be tecoed at lower level .
So once I deleted lower level, I saw that there were planned orders for same component
and same sales order and item, this was because MRP was running at same time .
So this MRP generated planned orders as the production orders at highrt level were still
hanging there and to full fill those production orders lower level component planned
orders were generated
So now cleared the production orders in top level and ran MRP in display mode and
found that there were no planned orders for lower level component.
But still there were two more planned order created at higher level has I previously
tecoed them and did zero confirmation due to some other reason, So I had to unteco them
to delete these planned orders and also cancel confirmation to get the production order
element on to MD04 screen. Once Iam done with that it show a message 26

So It should be clear that if the exception message is 20 ie cancel process then that
production order must be deleted as there is no requirement to consume this order. As all
this context was made in MTO stock product.
++++++++++++++++++++++++++++++++++++++++++++++++++++++

Batch Characteristics while Running MRP

Can batch characteristics be considered while running a MRP? I have a finished
good that has acid value as its batch characteristics. Based on this acid value I am
trying to pick up a certain batch of raw material that is also batch managed and has
its characteristics as acid value.
While running MRP qty requirements are transferred and stock is reserved but the
required batch qty (having the acid value required) of raw material is not picked.
MRP does NOT use batch data.
Because, while entering PIR, there's no field to enter batch number. When system creates
planned order, also there's no field to enter batch number, both for the header material
and planned order components.
There's one exception in PP-PI, where you can use batch specific unit of measure. That is,
you can define batch level alternative unit of measure. For example, you may have a
liquid, and it may have Liters as base unit of measure, and it may also have the percent
based active ingredient, that is Liters of the Active Ingredient can be an alternative unit of
measure.
So, every movement of material in the system will be done using 2 unit of measures at
the same time. e.g. goods receipt of 100 Lt liquid (which is also 80 Liters of Alcohol,
because of 80% alcohol potency), for the first batch. also goods receipt of another 100 Lt
liquid (which is 60 Liters of Alcohol this time, because of 60% alcohol potency) When
you look at your stock, you will see 200 LT liquid, which is equivalent to 140 LT Alcohol
ingredient.
What's the use of this active ingredient data during MRP?
When you define the batch unit of measure, you define limits for it. Say, our liquid in
previous example can only be between 50% and 90%, therefore we define it like that.
Every time we receive this material from vendor, we make the quality inspection and
determine the Alcohol percentage. however, while running MRP, system will create
purchase requisitions, but it doesn't know the percentage of the liquid our vendor will
send.
How will it determine the correct quantity?

In this case, we define a percentage for MRP, and MRP will use that percentage for
calculation. e.g. if there's an industry standard that all vendors of that liquid produce it at
75%, or if we are always working with a vendor who produces 68%, then we can enter
this data (per material) and MRP will calculate with that percentage
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

What is Firming Type in the MRP Types

The firming type dictates the behavior of planning with PTR (Planning Time Fence), i.e
whether the system should automatically firm the unfirmed planned orders and purchase
requisitions, which are outside the PTF as they move to fall within PTF as days progress
and also if new planning proposals are needed to be created to cover the shortage within
PTF.
There are five firming types, viz. 0, 1, 2, 3, and 4.
Listed below are the characteristics of these four firming types:
0 - PTF has not effect on planning.
1 - All unfirmed planning proposals (planned orders/purch reqs) moving into PTF will
automatically be firmed by the system, thus protecting them from anymore automatica
changes due to subsequent planning runs). At the same time, if the MRP engine identifies
any shortage within PTF, the system will create new planned orders, but schedule them
to lie JUST outside the end of PTF, thus leaving them as unfirmed elements.
2 - All unfirmed planning proposals (planned orders/purch reqs) moving into PTF will
automatically be firmed by the system, thus protecting them from anymore automatica
changes due to subsequent planning runs). BUT, the system will NOT create any new
planning proposals to cover the shortages identified within PTF. The shortage is left as a
-ve qty for the planner to deal with manually.
3 - No automatic firming of any unfirmed planned orders, even if they move into PTF.
They will be moved out to lie JUST outside the PTF. The system will create new
proposals to cover the shortage but schedule them outside the PTF and keep them as
unfirmed.
4 - No automatic firming / No automatic creation of planning proposals to cover shortage.
++++++++++++++++++++++++++++++++++++++++++++++

How MRP Type In MM MRP View 1 Works

Explain how the MRP type works.

MRP Type
The MRP type is a key that controls the MRP procedure to be used for planning a
material.
The MRP type belongs to the plant-specific data (in other words, the MRP area data of a
material).
The MRP type controls which planning parameters must or can be entered when
maintaining the material master record.
You can customize the parameters of the MRP types delivered with SAP R/3 according to
your own requirements. You can also add new MRP types.
MRP Type From SAP Help Menu
Key that determines whether and how the material is planned. You have the following
options:
- Manual reorder point planning
- Automatic reorder point planning
- Forecast-based planning
- Material requirements planning with forecasts for unplanned consumption
- Master production scheduling (MPS)
How to create storage location for MRP area?
To create storage location MRP area, do the following steps:
1. Create MRP area by SPRO -> MRP -> Master data -> MRP area -> Define MRP area.
Select MRP type 02 - storage location
2. Define scope of planning by tcode OM0E
Insert your Plant.
3. In MM02 assign MRP area in MRP1 view.
4. In SPRO -> Define parallel processing in MRP.
5. While MRP run select parallel processing in the initial screen.

What exactly is the use of transaction code OM0E?

In scope of planning you can define
1. Several plants
2. For One MRP area
3. Plant with MRP area
4. Several MRP area.
If you want to run MRP for a plant, you can enter a plant as normal.
But if you want to run multiple plant or other option, you have to create scope of
planning.
So that MRP plan for Multiple plants
+++++++++++++++++++++++++++++++++++++++++++++++++

Functions of Production Version

Can somebody enlighten me on the functions of production version and some tips on
its configuration?
Production Versions are used to describe the production process to be used for planned /
production order.
You can use the production versions based on:
1. Lot size qty
2. Bom explosion dates
3. Based on MRP Group
Why is it required?
Suppose you have 2/3 production lines and 2/3 alternative BOMs to produce one FG.
How system will come to know which BOM and Routing to be used. This is done thru
Prod.Version.
In production version we maintain the combination of BOM and routing.
Also it can be designed with lot size or validity period.
Go to MM02--->MRP4 / Work scheduling view ----> Prod.Version.
Enter the validity period and lot size.

After entering the reqd. routing no. and BOM alternative , carry a check.
After getting the Green signals ,Continue.
Thus you have saved the prod. version.
Mass processing TCode- C223.
Does this mean that I have to activate all the BOMs if in case I have 3 alternative
BOMs? if yes, then, will it these 3 BOMs be exploded in MRP? Im just worried
coz I might bloat our inventory if there are three active BOMs.
No.First of all need not worry about the BOM explosion.
As I told you earlier which BOM and which Routing is decided by Prod.Version.
So in MRP the active prod.version only will be considered. Thus active BOM and active
Routing will be used for MRP.
The question comes: How to deactivate the alternative BOMs and Routing?
Two Ways:
1. You lock all other non-relevant Prod.Versions in MM02 of the FG/SFG material.(Every
alternative BOM and routing forms a Prod.Version) Thus even if there are 2/3
prod.versions System will go and check for Unlocked prod. version and use it.
2. If you don't want to do this business of "Lock & Unlock" just place the required
version at the first place in list of prod.versions in MRP4 view of the material.
Once system finds the first prod.version it will not spend energy in searching other
alternatives.
Also please.don't forget to maintain the selection value of "2" in MRP 4 view for BOM
selection.
This will enable you to start the use of prod. version functionality in SAP-PP.(very good
tool for practical purposes, costing and MRP)
+++++++++++++++++++++++++++++++++++++++++++++++++

Steps To Do Repetative Manufacturing

Repetative manufacturing is period based planning and not based on orders.
Normally same products will be manufactured over longer period of time..products will
not change frequently. Confirmation is from backflushing and settlement is through from
product cost collector for the period. Confirmaton will be without ref to planned orders.
Planned orders are sufficient to carry out shop floor activity. In master data production
versions and cost collector is must where this is not mandatory in discreate.
You do these steps for rem production:

mm01 : Material Master

- MRP - 4 view you click rem
cs01

: Create Bom

cr01

: Create Work Center

ca21

: Create Rate Routing

mm02 : Prodn Version

md61 : Create PIR
mc74 : Transfer PIR to Demand
kkf6n : Create Product Cost Collector
mb1c : Create Stock
md02 : MRP run
mfbf

: Rem Back Flush

The detailed sequence of T.Codes for REM including Std cost estimate.
Material master - MM01
BOM - CS01
Price Planning - KP26
Work Center - CR01
Rate Routing - CA21
Material Master Change, enter production version - MM02 (MRP 4 View)
Product Cost Collector - KKF6N
Costing - CK40N
Backflushing - MFBF
+++++++++++++++++++++++++++++++++++++++++++++++++++

What The Use of Reorder Planning

What the use of reorder planning? How to create reorder planning?

By : Supriyo Sengupta
Reorder planning, when plant stock falls below reorder point procurement is triggered.
Planning can be done by manual or automatic. We maintain reorder point in Material
Master when warehouse stock reaches this level, MRP will trigger procurement for the
same.
AND reorder point planning is used for consumption based planning.
For re-order point planning, you have to put some field in MRP1 View of the Materail
Master.
MRP Type: VB (manual reorder point planning)
Reorder Point: for example 100 ( the level of stock at which u want to trigger
replenishment)
Lot Size: HB (maximum replenishment) / or u can maintain EX / FX also. but it
advisable to go with HB
Maximum Stock Level: for example 400 (as per ur requirement)
For re-order point planning, you can leave blank strategy.
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What Is Planned and Unplanned Consumption

Define what is planned and unplanned consumption?
What is difference between MRP strategies and consumption based planning ?
Unplanned consumption is updated only for materials planned using MRP. This occurs in
the following cases:
1) If goods are withdrawn from the warehouse without a reservation.
2) If goods are withdrawn on the basis of a reservation, but the quantity actually
withdrawn exceeds the reservation.
Planned consumption is not displayed in the material master record. However, you can
calculate it yourself by subtracting unplanned consumption from total consumption.
The system normally updates the consumption values in the material master record
automatically whenever stock is withdrawn from the warehouse.
Material requirements planning is carried out using current and future sales figures.
Consumption-Based Planning uses past consumption data to calculate future
requirements with the help of the material forecast or statistical planning procedures.

The consumption based planning means:

If you are planning your Raw Material not by MRP run, then use Consumption based
planning with reorder point. For this the MRP type is VB. The system will not generate
PR during MRP run. When ever you issue a RM the system will look for reorder point
and if the stock is less than this it will run in planning file entry. The system will raise PR
at that point of time only.
In which Tables can I find:
1. Consumption of material
2. Stock of material
1. Consumption of material: MARC-VMORD
MSEG - MENGE
S026 - ENMNG
2. Stock of material: MARD Table
Choose the following filed
Unrestricted: LABST
Restricted use: EINME
Blocked: SPEME
Return: RETME
Max stock MARC-MABST
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Planning separately via Storage Location or Vendor

with MRP Area
Steps 1 :You must convert the existing planning file (table MDVM) to the new
planning file (table DBVM)
in order to be able to use MRP areas in materials requirements planning.
Transaction OM0F.
1. During the conversion, the system creates a plant MRP area for every
plant.
2. The existing planning file entries are copied from the planning file
used up to now into
the new planning file.
3. The system deletes the planning file that had been used up to now
after the conversion has
taken place.
4. At client level, the indicator Planning file entries for MRP area
converted is set in a
system table. This indicator causes material requirements planning
to be carried out using

planning file entries at MRP area level from this point onwards.
5. The report also converts the individual customer planning file
entries at plant level to
individual customer planning file entries at MRP area level.
Steps 2 :Activate MRP Area in SM30 - T000MD.
(Material requirements planning with MRP areas cannot be reversed once
activated).
Steps 3 :During conversion in Steps 1, SAP will automatically create a MRP area
for all your existing
Plants.
Now, you can start creating the MRP area for storage location or vendor
to be planned
separately. That's is the whole purpose for using MRP area.
Define MRP Area in SM30 - V_MDLV.
Here you define whether the MRP area type :01 - Plant
02 - Storage Location
03 - Vendor
Steps 4 :In Material Master MRP 1, the MPR area section will appear once you
successfully complete
the above Steps.
Assign MRP Areas to Materials
You assign the MRP areas to the materials by creating an MRP area
segment for each MRP area
in the material master. You can assign several MRP areas to one
material.
MRP with MRP areas for the material is not activated until an MRP area
has been assigned to
a material. If you have not assigned an MRP area to a material, that is,
you have not created
an MRP area segment in the material master, the material will continue
to be planned in the
plant MRP area only. If you have assigned an MRP area to the material,
the system can plan it
in the plant MRP area and in the assigned MRP area.
You can display an overview for all materials in an MRP area. To do
this, you go into
Customizing for MRP and choose the IMG activity Define MRP areas. Call
up an MRP area by
double-clicking and choose Material overview for MRP area.
Steps 5 :-

Check Storage Locations

If you have already entered a storage location in the BOM (BOM item), in
the work center
(supply area) or in the production version, you should check whether
this storage location
is the storage location for the MRP area that you have assigned in the
material master.
The materials are assigned to an MRP area via the storage location that
the system
determines during the planning run. You should therefore check the
storage locations that
you have maintained in the material master. The storage location in the
material master
must be a storage location for the MRP area, for which you have created
an MRP area segment
in the material master. You can therefore ensure that material
requirements planning will
be carried out for the correct MRP area

The MRP area represents an organizational unit for which material

requirements planning is
carried out independently.
Basically, there are three types of MRP area:
Plant MRP Area
The plant MRP area initially contains the plant together with all its
storage locations and
stock with subcontractors.
When you have defined MRP areas for storage locations and for
subcontractors and you have
assigned the materials, the plant MRP area is reduced by exactly this
number of subcontractors
and storage locations. This is because they are now to be planned
separately.
MRP Areas for Storage Locations
You can define an MRP area that consists of a particular storage
location, by creating an MRP
area and assigning the storage location to it. Material requirements for
this storage location
are then planned separately from the rest of the plant.
You can also group several storage locations into one MRP area, by
creating an MRP area and
assigning the storage locations to it. These storage locations are then
planned together.
A storage location of a plant may be assigned to only one MRP area.
MRP Areas for Subcontractors

You can also define an MRP area for each subcontractor.

A subcontractor may be assigned to only one MRP area.
An MRP area of the subcontractor type may also only contain one
subcontractor.
MRP areas of the storage location or subcontractor type are only
suitable for:
1. components that are planned and produced for stock
2. finished products that are planned and produced for stock.
By assigning a storage location in a sales order or by entering an MRP
area when creating
the planned independent requirements, you can define whether a material
is planned in the
plant MRP area or in the MRP area of the storage location.

Material requirements planning for each MRP area allows you to have
specific control over
the staging and procurement of parts produced in-house and purchased
parts for each shop
floor and assembly area. If, for example, you define an MRP area for the
production
storage location of an assembly line, the system plans the material
requirements for the
assembly line separately from all other requirements.
Example: Subcontractor
You can also carry out planning for components to be provided in
subcontracting using an
MRP area by defining an MRP area for every subcontractor and assigning
the components to be
provided to the MRP area of the subcontractor. You therefore plan the
requirements to be
provided for these components for one subcontractor separately from all
other requirements.
Depending on the requirements situation, the system creates either stock
transfer reservations
from the plant to the stock of material provided of the subcontractor or
it creates purchase
requisitions within subcontracting/third-party order processing,
according to the special
procurement key settings.

The planning run takes into account the planning with MRP areas as
follows:

If you do not enter a separate scope of planning, the system plans the
whole plant, that is,
all MRP areas in the plant, during the total planning run. If you want
to carry out a total
planning run for a particular MRP area only, you must specify the
required MRP area in the
scope of planning.
During single-item, multi-level planning, the system plans the selected
material in the MRP
area entered. In addition, the system takes into account planning file
entries from other
MRP areas, for example, if the material is to be procured using stock
transfer.
During single-item, single-level planning, the system plans the selected
material in the
MRP area entered only.
You define the MRP areas in Customizing for MRP. You can thereby assign
the following to
an MRP area: one or more storage locations (example: you want to carry
out planning for a
particular assembly line and therefore assign a production storage
location to the MRP area)
a subcontractor.
You assign the various MRP areas to the materials in the material
master. For this, you
create an MRP area segment for a material for every MRP area, in which
it is used. In this
MRP area segment, you can define MRP parameters such as, for example,
the lot size or MRP
type. This allows you to plan the material differently in the MRP area
from how you plan it
in the plant MRP area.
MRP with MRP areas for the material is not activated until the material
has been assigned
to an MRP area. If you have not assigned a material to an MRP area, that
is, you have
not created an MRP area segment in the material master, the material
will continue to
be planned in the plant MRP area only. If you have assigned an MRP area
to it, the system
can plan it in the plant MRP area and in the assigned MRP area.

+++++++++++++++++++++++++++++++++++++++++++++++++++++

MRP Area Customizing and Mass Updating

I have created my storage location as MRP area in the customizing. Now when I am
trying to enter in the MRP 1 view in material master, it is showing the following
error.

Error: MRP area is not assigned to Plant.

But in customizing I have assigned plant while creating the storage location as MRP
area.
To create storage location MRP area, do the following steps:
1. Create MRP area by SPRO -> MRP -> Master data -> MRP area -> Define MRP area.
Select MRP type 02 - storage location
2. Define scope of planning by tcode OM0E.
Insert your Plant.
3. In MM02 assign MRP area in MRP1 view.
4. In SPRO -> Define parallel processing in MRP.
5. While MRP run, select parallel processing in the initial screen.
If you want to run MRP only for one MRP area then only enter the MRP Area there or If
you want to run MRP for Plant with MRP area, several MRP area you can
select there.
Run MRP with MD01 then.
What exactly is the use of transaction code OM0E and What is the use of defining
scope of planning.
In scope of planning (OM0E) :- you can define:
1. Several plants
2. For One MRP area
3. Plant with MRP area
4. Several MRP area.
If you want to run MRP for a plant, you can enter a plant as normal.
But if you want to run multiple plant or other option, you have to create scope of
planning.
So that MRP plan for Multiple plants.
Do you know of a program/transaction (like MASS) that will enable me to update
Material master MRP Area data (table MDMA)?
Try report RMMDDIBE

- Fill in the MRP Area Data

- Fill in the Forecast Data
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