3. Master Data preparation in Production Planning (PP)

Updated: Feb 27

Until this point we are almost done with all the SPRO configuration for running basic PP cycle. Another important aspect in running PP cycle is Master Data which we will discuss in this blog.

PP Master Data

Master data is important component in PP module like the other SAP modules. Master data tends to remain constant and used in same way. Master data helps to maintain integration of business processes/objects. Following are vital master data elements related to SAP Production Planning (PP), as represented in below image-

Material Master

T-code- MM01

The material master contain information on all the materials that a company procures, produces, stores, and sells. It is a number uniquely identifies a material master record, and hence a material. We will create 4 different material for our requirement; 1 each for finished and semi-finished and 2 for raw material.

1. Finish Material

Basic Data


Work Scheduling



2. Semi-finish Material

Basic Data


Work Scheduling



3. Raw Material

Basic Data





Bill Of Material

T-code- CS01

FINISH; Bill of material is as follows for 1 quantity of Finished good.


SEMI-FINISH; Bill of material is as follows for 1 quantity of Semi-Finished good.


BOM Explosion (CS11);-

This transaction will show all the semi-finished as well as raw materials required to ultimately produce finished goods. It will show this material requirement level by level as follows;

Secondary Cost Element

T-code- FS00

Under YCOA chart of accounts, we have already available one GL account as secondary cost element. Open it in FS00 and assign the CElem Cat; as 43 - Internal activity allocation.

Activity Type

T-code- KL01

In this step we will create multiple activities required in production. We need to assign the secondary cost element to this activity type to capture the costing part of the activity.

  • SETUP activity

  • MACHINING Activity

  • LABOUR Activity

Cost Center

T-Code- KS01

Activity Price Planning

T-code- KP26

Here we decide capacity, plan activity and price for different production activities against cost center. Like in below example, we defined 100 Hrs for LABOUR as well as MACHINE activity and 20 Hrs for SETUP activity. The fixed price for each activity is 10 EUR per unit. Following image shows activity price planning for FINISHED & SEMI-FINISHED production cost center.