MRP Process in SAP

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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)
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
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
8. MIGO / MB31 - GR against Prd order
9. CO02 - Technical completion of order

10. KO88 - Order Settlement

Running MRP - General Process,

Prerequisites, and Procedure
The Material Requirements Planning (MRP) function lets you plan material requirements for
complex manufacturing and procurement processes. To create and run MRP scenarios, you
use the MRP wizard. The wizard generates recommendations (production orders, purchase
orders, and inventory transfer requests) required to produce or procure the final product on
time and in the required quantity. In the Order Recommendation report, you create
production and purchase orders based on these recommendations.

The MRP Process in SAP Business One

Prerequisites

You have defined the following settings on the Item Master Data: Planning Data tab.
For more information, see Item Master Data: Planning Data Tab.
o
Planning Method

Only items with the Planning Method of MRP are available for selection when you are
running the MRP wizard.
Procurement Method

The procurement method affects the order type MRP recommends for items with
demands.
Order Interval

In MRP calculations, the application automatically groups the recommended orders

into interval periods according to your definition, and arranges orders within the same
period into the first working day of that period. For more information, see Example:
Lead Time, Holidays, and Order Interval in MRP.
Order Multiple

Your definition of order multiple may affect the order quantities MRP recommends.
Minimum Order Qty

Your definition of minimum order quantity may affect the order quantities MRP
recommends.
Lead time
The lead time definition affects the order recommendation calculation.
For more information, see Example: Lead Time, Holidays, and Order Interval in
MRP and Examples: Cumulative Lead Time.