Updated: Feb 27
Now we are done with all the pre-requisites to run basic process flow for SAP Production Planning (PP), which we will discuss in this blog. Let us discuss the basic MAKE TO STOCK End to End Basic Process flow.
Above image represents one generic production flow. It has two production lines for two different finished products. To understand this flow from SAP point of view, please follow below image. We will go step by step to understand the basic flow.
Due to some technical issues following parametrs have changed going forward-
Stock and requirement list for materials before running the MRP; (MD04)
Create Planned Independent Requirement-
Now we will create the Planned Independent Requirement for FINISH material. We will create requirement of 100 qty on 25.03.2021.
Stock/Requirement status of material after creating Planned Independent Requirement;
Run MRP Live
Material Requirement Planning is a key process in production to maintain optimized level of inventory while producing the product at an expected timeline and cost. New transaction code for MRP Live is MD01N. The vital feature of this transaction code is, it minimizes the volume of the data that has to be copied from database server to application server and back, which considerably improves the performance. Also one material can be planned across multiple plants.
Now lets run MRP for FINISH material then as we can see from below image, after MRP run system has planned 4 materials which include finish material itself as well as other materials required to manufacture finish material.
Stock/Requirement status of materials after MRP run;
MRP run has created one planned order so that material would be available on 25th March for independent requirement. System considering1 day for production as we defined same in material master MRP2 view.
Converting purchase requisition of raw materials into purchase order and recieving the material in stock for dependent material production.
Use ME57 transaction, assign source of supply to all items and create purchase order
Receive the goods using MIGO transaction-
Lets convert the planned order of SEMIFINISH and FINISH material into production order using t-code CO41-
Check the material availability and release the production order of Semifinish material-
Now confirm the Semifinish material production order at header level using t-code CO15
After confirmation also we could not see any movement in goods. Reason- Raw materials are not in storage location RM01 but in RM00
Perform transfer posting of goods and make them available in RM01
Then use MIGO_GR against order and perform the receipt of semi finish good
Now perform Release (CO02) - Confirmation (CO15) process of FINISH material production order same as SEMIFINISH
After this we need to perform TECO and settlement of both the production orders. We can use CO02 for TECO and KO88 for settlement of order as follows-
Now perform settlement of both the orders KO88-
Before settlement check the balance of cost for FINISH production order as follows;
Perform the settlement-
Refer the production order after settlement-
Blogs Series of SAP PP-
Use of Backflush and Auto Goods Receipt Functionality with Example
Planning Strategies in SAP Production Planning (PP) - Part 1
Planning Strategies in SAP Production Planning (PP) - Part 2