PP Master Data Configuration PDF

SAP PP/QM
Configuration
INDEX
1. OVER VIEW:- 4
2. GETTING INTO THE CONFIGURATION AREA OF SAP 8
3. MASTER DATA CONFIGURATION - BOM 12
3.1 Define BOM Usage 12
3.2 Define Default Values for item status 16
3.3 Define Allowed Material type for BOM Header 20
3.4 Define BOM Status 23
3.5 Define Item Category 26
3.6 Define Allowed item type for BOM Item 30
3.7 Define Explosion types 33
3.8 Define Order of Priority 36
3.9 Define Application 40
3.10 Define Alternative Determination for Multiple BOM 44
3.11 Alternative determination in related application Area 46
3.12 Define User-specific setting 47
4. WORK CENTER 50
4.1 Define Work center Category 51
4.2 Define Field Selection 54
4.3 Define Task List usage 58
4.4 Define Parameters 61
4.5 Define Standard Value 65
4.6 Determine Person Responsible 69
4.7 Define Control Key 71

5. CAPACITY PLANNING 76
5.1 Define Capacity Category 76
5.2 Determine Capacity Planner 78
5.3 Define Shift Sequence 81
5.4 Define Formula Parameters for Work centers 88
5.5 Define Formula for Work centers 91
5.6 Define Factory calendar 95
5.7 Define Default Capacity 106
5.8 Define Work center screen sequence 109
6. ROUTING 112
6.1 Define Standard value description in operation over view 113
6.2 Define Routing Status 115
6.3 Define Task List usage 117
6.4 Define Reduction Strategy 119
6.5 Define User Fields 123
6.6 Define Routing Selection Automatic 127
7. SUMMARY:- 130
1. Over view:-
Production Planning module configuration and relevant

reports are demonstrated in this book.
PP module contains three types of manufacturing methods.
o Discrete
o Repetitive
o Process Industries.
Discrete: -
Discrete production method is applicable to the manufacturing

setup where small lots are manufactured with frequent
changes in the settings.
Manufacturing is accounted through Production orders.
Repetitive: -
This method is applicable, where products are manufactured

with least change or no change in the manufacturing process
over a long period of time.
Manufacturing is accounted through backflush.
Process Industries: -
It is similar to the Discrete but instead of routing, It uses

master recipe where in Process messages are maintained.
It is more appropriate to the food industries and processing

units where instructions are used during the process.
Manufacturing is accounted through process orders.
Configuration setting in PP module can be classified as below.
Master Data related settings
Planning Related Settings
Production Execution related settings
We will discuss about the Master data related configuration

setting in detail.
Important Master data in PP module are
Bill Of Material
Work center
Routing
Bill Of Material (BOM):-
BOM can be defined as a list of required components along

with the required quantity essential to make any product.
Important Technical details related to BOM are
Application of BOM
Usage of BOM
Status of BOM
Selection of BOM
Configuration setting related to BOM will enable to align the
BOM master data in line with the business requirement blue
print document.
Work Center:-
Machines, group of labour, processing unit are defined as

work center in SAP.
Work center contains the
Capacity Requirements
Scheduling details
Costing details
Configuration setting related to work center will enable to

define the SAP system according to the business requirement
blue print document.
Routing:-
Sequence of operation, work centers to be used and the

duration required for each operation to manufacture the
product is defined in routing.
Important Technical details related to Routing are
Usage of Routing
Status of Routing
Selection of Routing
Configuration settings related to Routing will enable to align
the Routing master data in line with the business requirement
blue print document.
Friends, the configuration settings related to each master data

are explained in detail.
Example:-
BOM
Item category configuration

Automatic alternate selection of BOM
Configuration of BOM usage
Configuration of allowed item type for BOM
Work Center
Configuration of field selection in work center

Configuration of formula to schedule and calculate cost
Configuration of standard value key
Configuration of shift sequence
Routing
Configuration of Automatic Routing selection

Configuration of Routing usage
Configuration of reduction strategy
Configuration of user defined fields in Routing
2. Getting into the Configuration area of SAP
BACKGROUND
To make the configuration in SAP, one has to have

authorization to perform transaction in configuration mode.
It is the place where every details are maintained to make the

transaction happen as per the business mapping.
SCENARIO
It is required to configure various settings in SAP.
INSTRUCTIONS
To do configuration, first one has to logon to the system, and
go to the IMG mode. How to logon to IMG mode is explained
below. From next document onwards, it is mentioned as IMG.
How to get in to the SAP IMG mode?
1. Type spro in the SAP main screen dialog box,

2. Click
3. Click on
Note:- Production related configurations are available under
Node.
4. Click
5. You are inside the IMG for Production Planning Module.
If the menu path is mentioned as IMG in the further

topics, you have to follow the above step to reach this place.
3. Master Data Configuration - BOM
3.1 Define BOM Usage
BACKGROUND
This configuration setting enables to define Bill Of Material

(BOM) usage.
BOM usage defines the usage of BOM in specific application

area in the SAP.
Example, there can be a separate BOMs for
Design,
Production
Costing.
In this way, each area is dealing only with the specific data it
requires.
Example:
The design BOM includes all the components of the

product and their technical data from the design point of
view. This BOM is generally not linked to any order.
The production BOM contains all the items required from

the production and assembly point of view. Only items
relevant to production, for which production data (such
as the issue storage location) can be entered, are
required. A production BOM does not contain any
packaging materials required in the shipping department.
SCENARIO
Create new BOM usage.
Note:-
Standard BOM usage available with SAP is sufficient. However

any new BOM usage can be created.
INSTRUCTIONS
Follow the Menu Path: IMG Production Basic data Bill
of materials General data BOM Usage Define BOM
Usage
1. Click
2. Click
3. Enter usage value; it can be either numeric or alphabet.

It is suggested to be numeric.
4. Select +,- or . to indicate to which area this BOM is
meant for like Production, Engineering, Spare, Plant
Maintenance, Sales or for costing relevancy.
Note:-Based on this, during BOM explosion, entire

dependent requirements are also planned,
5. Enter Usage text
6. Click Save
Impact of this configuration in Master Data /

Transaction
When creating the BOM, key defined here will appear in the
BOM Usage field.
According to the requirement, BOM usage key has to be

selected during BOM Creation.
Click Match code or F4 in BOM usage field, to select the

desired BOM usage.
Transaction code to create BOM is CS01

3.2 Define Default Values for item status
BACKGROUND
This configuration setting enables to define default values for

item status.
Every item in the BOM can be defined whether it is subjected

to
Costing
Sales
Production
Spare part
This configuration setting is used to indicate whether the BOM

component along with the BOM usage.
is to be considered for costing in this BOM or not,
is relevant to sales (normally used in Variant

configuration),
is a spare part
is related to Production
SCENARIO
Set the default value for items in BOM.
INSTRUCTIONS
Follow the Menu Path: IMGProductionBasic dataBill of
materialsGeneral dataBOM usageDefine default values
for the item status
1. Click
2. Click
3. Enter Usage value
4. Update the following fields

Field Name Description Value
BOM usage Field defining the Enter value e.g. 1
BOM usage
Prod Indicating that the Make tick in the
BOM item is related check box
to Production
Eng/des Indicating that the Leave blank.
BOM item is related
to Engineering and
Design
PM Indicating that the Leave blank
BOM item is related
to Plant
Maintenance
Sales Indicating the item Leave blank.
is related to Sales Normally used in
and it will appear variant
in the sales order. configuration.
Relevan Relevant to costing Select X , indicating
relevant to costing.
5. Click Save .

Transaction
Example:-
BOM usage defined 1 indicating relevant to production. The

item status as configured such that all items
are relevant to production
can be relevant to costing
In this example, the indicators are checked as follows:
The Indicator: item relevant to production cannot be

deselected (required entry). In the BOM maintenance
functions, this indicator is set automatically for all items
and cannot be cancelled.
Since the item can be relevant to costing, the default value

X (fully relevant to costing) can be set for the Indicator for
relevance to costing. This value can be overwritten in the
BOM maintenance functions.
BOM item level default setting will appear as per the setting
done here.
3.3 Define Allowed Material type for BOM Header
BACKGROUND
This configuration setting enables to control the creation of

BOM to the specific material types.
This configuration is done to the combination of BOM usage

and Material type.
When a new bill of material is created, the system checks the

material type as follows:
The fully qualified (non-generic) entries are checked first.

The generic entries are checked afterwards.
You can define that the use of the material type in

combination with Creation of BOM with respect to material
type can be controlled.
Example, it may not be allowed to create BOM for Raw

material. (Material type ROH).
Creation of BOM to material type ROH can be restricted in the

system.
SCENARIO
Creation of BOM for Material type ROH should not be allowed.
INSTRUCTIONS

materials General dataDefine allowed material type for
BOM header
Click
Follow the below steps to create new entries.

1. Click
Update required and optional fields:
Field Name Description Value

BOM Usage ### BOM usage according 1 for production
to the application BOM
Material type Header Material type Enter ROH
header to which BOM
creation has to be
restricted
Allowed Select the symbol Select Negative
indicator to mention symbol to
allowed or not allowed RESTRICT BOM
creation.
### Generic entry * can be made instead of a specific BOM

usage. This indicates, it is applicable to all possible BOM
usages.
2. Click Save .

Transaction
When a new bill of material is created, the system checks the

material type as follows:
Non-generic entries are checked first. The generic entries

are checked afterwards.
Error message will be displayed when creating BOM for RAW

material.
3.4 Define BOM Status
BACKGROUND
This configuration setting enables to define BOM status.
BOM status is used to define whether the BOM can be used by

any application area or not.
Example: -
In the costing areas in a company, the BOM is exploded

according to the application. While defining the BOM
status, usage in costing area will be defined.
In MRP, the following indicators are checked directly from

the definition of the BOM status:
- Explosion in MRP
- Released for orders
MRP only reads BOMs whose BOM status has at least one of
these indicators.
BOM status defines whether
The BOM is active or inactive.
SCENARIO
BOM need to be created for certain for product whose BOM

can be finalized only after some trial and error.
While it is in preparation it is required not to be used by any
application. Status In preparation has to be created.
INSTRUCTIONS

materials General dataDefine BOM status
1. Click
..continuation of the above screens right side balance

portion
2. Click
3. Enter usage value. E.g. 6.

4. Leave all the check box as EMPTY.
5. Mention description as In preparation
6. Click Save .

Transaction
BOM with status 6 can not be used for any application.

3.5 Define Item Category
BACKGROUND
This configuration setting enables to define item category.
The item category defines the attributes and functions of a

BOM item. It controls field and screen selection for detail
screens in BOM maintenance.
BOM can contain different type of items related to

manufacture the finished product. There are
Pipeline items i.e. items which are received

through a pipeline from supplier not related to
inventory
Stock items i.e. materials are always issued from

stock which are relate to inventory
Document item i.e. Documents are referred in the

BOM as a item trough the Document Management
System (DMS)
Text item i.e. brief note about the material usage

can be maintained as a Text item. This will be
useful in a long BOM to indicate any specific
assembly.
The above different items are defined through item category in

the BOM.
SCENARIO
Define item category to meet the situation as per the below

example.
Example: - An Item code may be defined as a normal item in

the material master. The same item code for one specific BOM
has to be treated as a phantom material.
In such a situation, item category inside the item detail of the

BOM will be mentioned as a phantom assembly. It is now
applicable only to this BOM.
Lets look at the standard setting for item category.
Item categories defined by SAP will be sufficient in most of the

cases. If required, any new item category can be created.
INSTRUCTIONS

materials Item dataDefine item category
1. Click
2. click
Field Name Description

Item category Desired item category to be
mentioned in the BOM
Inv.Mgmt Relevant to Inventory
management
TxtItem It is text item
Vsl Variable size item
Document Item To mention Document
Cls Item To mention as Class item,
used in Variant configuration
PM Str To mention as PM structure
element
IntraM To mention Intra Material
normally used in Master
Recipe-PPPI
+/- sign Negative value allowed in the
BOM or not? This is required
to indicate the by product.
SubI To indicate sub items are
supported.
Item Ctrl Sequence of Item detail
screen.
4. Select check boxes according to the business

requirement
5. Mention Item category Text
6. Click Save .
Transaction
While creating the BOM, required item category may be

selected.
3.6 Define Allowed item type for BOM Item
BACKGROUND
This configuration setting enables to control the item type

which can be entered as a component in the BOM.
Restriction to BOM item level can be done.
Example: - It may be required NOT to allow any Finished

Goods material type (FERT) to be a member of the BOM.
SCENARIO
It is required to restrict FERT material to be the member of the

BOM.
INSTRUCTIONS

materials Item dataDefine allowed material type for BOM
items
1. Click
2. Click

BOM usage BOM usage to define the
application area
Mat tpe header Header material type to which
this restriction is to be
applicable
Material type BOM Item type inside the BOM to
item be restricted.
Allowed + sign to permit and sign
NOT to permit
4. Click Save .

Transaction
While creating the BOM, only allowed component type in this
setting are allowed to be a member of the BOM item.
3.7 Define Explosion types
BACKGROUND
This configuration setting enables to define how the

component in Bill Of Material is to be exploded during
processing.
This configuration setting governs BOM Component
To be considered for planning or not
To be considered in Long Term Planning or not
Phantom assembly is to be planned or not
Direct production should be activated or not
SCENARIO
For Long term planning, by default all the BOM items are
considered.
If there are more items in a BOM and it is required to plan

only very specific items in the LTP.
Then at BOM level against the item, LTP off indicator can be
set. Now during LTP run, only relevant items are planned in
LTP and all items are planned in MRP run.
INSTRUCTIONS
materials Item dataDefine Explosion types.
1. Click
2. Click

Explosion type BOM Explosion type, free
entry.
Description Description of the Explosion
type key.
Phan.off Phantom assembly is not
applicable to this item if this
indicator is set.
Plng off Material components are not
planned till the Sales order is
created to this BOM item if this
indicator is set
DP Off Direct production functions are
switched off if this indicator is
set.
LTP Off This will exclude the item in
LTP calculation if this indicator
is set.
Indi/Coll It is to specify, whether to
group the dependant
requirement together or not
4. Maintain the entries in the check box as per the

requirement
5. Click Save

Transaction
BOM Item level explosion type can be defined. Key defined

here will appear in the screen to select.
3.8 Define Order of Priority
BACKGROUND
This configuration setting enables to define order of priority for

Bill Of Material to be selected during MRP and Production or
process order creation.
Different Bill Of Material can be created for
Production
Costing
Engg / Design
Selection priority must be defined to pickup the right Bill Of

Material to the right application.
Link between this configuration and Master Data is

established as below:-
Selection priority will be defined through selection id.
Selection id will have the sequence of BOM usage.
BOM usage will be mentioned in the BOM
Selection id of BOM will be mentioned in the order type

and MRP plant Parameter.
SCENARIO
There are more than one BOM (BOM usage) They are
1 for Production,
2 for Engg/Design
3 for Costing.
It is required to define the order of selection for BOM.
INSTRUCTIONS

materials Alternative determinationDefine order of priority
for BOM usage.
1. Click
Click to create additional order of priority for BOM
usage.
2. Update the Following fields

Field Description
Selection Id Selection ID numeric
number to be entered.
Selection Priority With in this selection
ID, priority to be
mentioned
BOM usage With in this selection
ID and Priority,
relevant BOM usage to
be selected.
3. Click Save .

Transaction
During MRP run, production order or process order creation

BOM selected according to this selection id priority.
3.9 Define Application
BACKGROUND
This configuration setting enables to define BOM Application.
BOM application controls use of BOM in a specific area.
Areas like MRP run, cost estimate calculation etc.. will use the
BOM of its own respective BOM application.
SCENARIO
BOM display at multiple levels (transaction code CS12) can be

done for different BOM application. It is required to display
only the costing BOM to certain users. Separate BOM
application to be created to display the BOM related only to
costing.
Note: - BOM with usage for costing should be available. i.e.

with the right usage for costing.
INSTRUCTIONS

materials Alternative determinationDefine Applications
1. Click
To view the details, select the line and click

Field Description
BOM Application Enter any four digit BOM
application area
Description Enter description
Selectin ID Selection ID through which
BOM selected
Alternative Det.Multi.BOM To select for alternative BOM
if multiple BOM is available.
Tick this check box
Production Version If there is a production
version, that is used as a
selection criteria.
MRP explosion Leave Blank
Rel planned orders Leave Blank
Release costing Tick this check box
Other check boxes Leave Blank
3. Click Save .

Transaction
When displaying the BOM through transaction code CS12,

Right BOM usage will be displayed according to the settings
maintained here. In this example, with BOM application, only
the costing BOM will be displayed.
Press F4 in BOM application, where all the available setting
will be displayed.
3.10 Define Alternative Determination for
Multiple BOM
BACKGROUND
This configuration setting enables to define automatic

selection of right Bill Of Material during MRP and production
order or process order creation, when there are more than one
Bill Of Material to a material.
SCENARIO
Specific alternative BOM for some materials are to be exploded

during the MRP and other production order process for
specific duration.
INSTRUCTIONS

materials Alternative determinationDefine alternative
determination for multiple BOM.
1. Click

Field Description
Material Enter material code number
to which alternate BOM is to
be exploded
Plant Plant where it is applicable
BOM Usg BOM usage
Valid From From date of BOM explosion
Alt BOM Alternate BOM number which
is to be exploded.
3. Click Save .

Transaction
Right BOM according to the setting here will be exploded

during MRP and Production processing.
3.11 Alternative determination in related
application Area
BACKGROUND
Similar to the above alternate defining in production area, for

other areas like Inventory, MRP, Costing, Sales and
Distribution and Plant Maintenance can be maintained.
Only the menu path is given here and the rest of the settings
are similar to above.
INSTRUCTIONS

materials Alternative determinationAlternate
determination in related application area
Define alternate determination for inventory

Production
MRP
Costing
Sales and distribution and
Plant maintenance
3.12 Define User-specific setting
BACKGROUND
This configuration setting enables to configure the parameters

specific to the user.
Following parameters
Item category
Item increment
BOM Reporting specification are can be set for a specific

user.
INSTRUCTIONS

materials Define user-specific settings
Click
To view more details, select the required row and click
Click to create new entries

Select the entries and tick the check box as shown above.
Field name Field value and description

User Name of the user to whom the
default settings are to be
done.
Item increment While creating the BOM,
incremental number to be
displayed.
Mat. Item cat. Item category to be displayed
by default.
While using the where used
list query, this check box in
the selection box will appear
as ticked by default.
While using the where used
list query, this check box in
the selection box will appear
as ticked by default.
Click

Transaction
User SAPUSER when creating the BOM, this default setting

will appear. This will help to reduce BOM creation time.
4. Work Center
Machines may be referred as work center. It is defined as the

place where operations are carried out.
Apart from machine, group of persons (e.g. in maintenance

department, certain group of people may be employed for any
machinery movements etc.) may be treated as a labor work
center.
Data in work center used for
Scheduling start and end of operation
Costing Cost incurred during production
Capacity planning - to plan the required capacity
Lets see the configuration related to Work center.

4.1 Define Work center Category
BACKGROUND
This configuration setting enables to define work center

category.
Work center category is the major classification of work center

by SAP. E.g. Machine, processing unit, labor are defined as a
different work center category.
Work center category controls the field selection inside the

work center.
SCENARIO
Create a work center category to mention skilled labor work

center category.
INSTRUCTIONS
Follow the Menu Path: IMGProductionBasic dataWork

center General Data Define work center category.
1. Click
2. Click

Field Description
Cat Capacity category. Any new
value may be entered. E.g.
ZLAB
Description Description of the desired
capacity category. E.g. Skilled
Labour category
Field Selection Contains the fields required to
this capacity category. Enter
standard SAP value according
to the capacity category. E.g.
0001
Screen sequence Sequence of tab screen to be
appeared in the work center
master data. Enter the
standard SAP value. E.g. 0001
4. Click Enter
5. Select Created capacity category
6. Double Click
7. Click
8. Enter Application Area in SAP where this work center

category can be used. E.g. P Routing; C - Master
Recipe; Q - Quality task list etc.
9. Note:- If this work center category is to be applicable to

all, maintain all the entry in this application field.
10. Click .

Transaction
When creating the work center for skilled labor, work center
category is to be mentioned as it is a mandatory entry.
4.2 Define Field Selection
BACKGROUND
This configuration setting enables to make the field in work

center master data as
Mandatory
Optional
Highlight
Hide
Field selection will be used to make certain field as mandatory

entry or to hide certain fields during creation of work center
master data.
SCENARIO
Make field person responsible for work center category 0007

as mandatory field.
INSTRUCTIONS

center General Data Define field selection.
1. Click
2. Double click Basic data
3. Double click Person responsible
4. Click Field selection Req. radio button for the required

work center category. Contents column indicate the work
center category.
Note:- From this screen it may be noted that person
responsible entry is mandatory for work center category
0001,0002 and 0008
5. Click to add more entry.
6. Enter content 0007 or any work center category.
7. Click radio button Req.

8. Click
9. Click

Transaction
When work center with category 0007 is created, person

responsible field become mandatory.
Note:- Field selection procedure is same for Routing as well.

4.3 Define Task List usage
BACKGROUND
This configuration setting enables to define the task list usage

to the work center.
Usage of work center specific to the task list (i.e. only in the
master recipe or Routing) can be defined to restrict its usage.
SCENARIO
Define the task list usage to the work center category 0007 to
be used in Routing and in Reference Operations set only.
INSTRUCTIONS

center General Data Define task list usage.
1. Click
2. Select
3. Double click Task list type
4. Click
Field Description
Task List type N for Routing and S for
Reference Operation set
6. Click Save .

Transaction
When creating Work center usage is to be mentioned as 001.
Once this is maintained, then it will not be possible to use this

Work center in Master Recipe or in Rate routing.
4.4 Define Parameters
BACKGROUND
This configuration setting enables to define Parameter

(activities) for formula.
Parameter is one of the required settings to calculate the

conversion cost incurred in the Work center during
manufacturing.
Work center while in use can consume
Power
Labour
Setup time
Depreciation
Steam etc.
The above costs incurred during conversion will be captured

through the activity. Parameter is the structure to capture this
activity.
This will be assigned to the standard value key. Standard

value key will be assigned in the work center.
SCENARIO
Create a Parameter. Note:- Standard SAP setting is sufficient.

Let us discuss the creation of new parameter.
INSTRUCTIONS

center General Data Standard ValueDefine Parameters.
1. Click
2. Click
Field Description
Parameter Parameter to hold the value.
Any alphanumeric six digit
may be entered. E.g. LABOUR
Origin Place where from the value is
to be taken. E.g. To indicate
value to be taken from task
list maintain 2 in this field.
Short key word Short description
Key work Key word to identify
Dimension Dimension of the parameter.
E.g. Any thing related to
Duration may have TIME as
dimension.
Standard Value Unit Unit of this parameter. E.g.
Time dimension may have
unit as MIN.
Note: - If any parameter for which there is no unit, it may be

mentioned as no unit.
4. Click Save .

Transaction
Link between the parameter and the master data is as below.
a. This parameter will be assigned to the standard value

key.
b. Standard value key will be attached with the work center.
c. Work center will be attached in the task list. I.e. in the

routing or in the master recipe.
d. Standard value (i.e. duration of labour hours required)

will be maintained in the task list as a master data.
4.5 Define Standard Value
BACKGROUND
This configuration setting enables to define the standard value

key.
Standard value key is very essential to capture the cost

incurred in the work center.
Standard value key will contain the activities. One standard

value key can contain up to six activities. Each activity refers
to the cost.
Example:-
Production cost
Set up cost
Labour cost
Quality Cost
Power cost
Steam cost
One work center can have only one standard value key.
SCENARIO
Create a standard value key to have the activities of setup,

machine, labor, and over head.
INSTRUCTIONS

center General Data Standard ValueDefine standard
value key.
1. Click
2. Click
Field Description
Standard value key Enter any alpha numeric to
indicate standard value key.
E.g. STD1
Description Maintain standard value key
description. E.g.
setup/machine/labor/Power
Parameter Maintain the parameters. Up
to six parameters can be
maintained.
Tick this check box to
generate formula.
4. Click Save .
Transaction
When creating the work center, standard value key STD1 to be

mentioned.
4.6 Determine Person Responsible
BACKGROUND
This configuration setting enables to define the person

responsible for work center.
Every work center will have a responsible person to schedule

the work load to that machine and to monitor the working
hours and output from that work center.
This field can be used for reporting purpose also.
SCENARIO
Create a work center responsible person.
INSTRUCTIONS

center General Data Determine person responsible
Click
Click
Update the Following fields
Field Description
Plant Name of the plant e.g. IND6
Person Responsible Three digit alpha numeric
entry to mention the
responsible person to the
work center. E.g. INP
Person responsible description Detailed description of the
person responsible. E.g. In-
charge Processing Unit
Click Save .

Transaction
When creating the work center, person responsible has to be

entered.
4.7 Define Control Key
BACKGROUND
This configuration setting enables to define control key.
Control key governs
Scheduling of operation
Cost calculation for an operation
Capacity calculation for an operation
Confirmation for an operation
Control key is mapped with the work center in the task list
(i.e. in the routing and in the master recipe).
SCENARIO
Create a control key with confirmation as mandatory and it

should calculate the cost and capacity, it should also schedule
the operation.
INSTRUCTIONS

center Routing Data Define control key
1. Click
2. Click
Field Description
Control Key Enter any alphanumeric four digit
key. E.g. YP01
Description Maintain description of this control
key. E.g.
Sch/Cost/Capreq/Confreq/AutoGR
Indicators Tick the check box as shown above
in the screen.
Tick in the Check box will perform
the respective function to the
operation / phase which is having
this control key.
4. Click Save .
5. Click to maintain any long text to this
control key.
6. Maintain the long text.
7. Click Save .
8. Click
9. Click if you get the Other language screen.
10. Click Save .

Transaction
Link between control key and Transaction:-
Control key is attached in the task list with work center

for each operation
While performing order creation, confirmation, MRP run
system will behave according to this configuration
setting.
5. Capacity Planning
5.1 Define Capacity Category
BACKGROUND
This configuration setting enables to define the capacity

category.
Capacity category will differentiate the type of capacity used in

the work center.
Capacities can be
Machine
Labor
Processing unit
Capacity category and capacity details are assigned to the

work center.
SCENARIO
Create a capacity category.
INSTRUCTIONS

center Capacity Planning Define capacity category
1. Click
2. Click
Field Description
Category Capacity category. E.g 001
Description Description of capacity
category e.g. machine
4. Click Save .

Transaction
Capacity category is to be mentioned in the capacity header

detail in the work center.
5.2 Determine Capacity Planner
BACKGROUND
This configuration setting enables to define the capacity

planner.
Capacity planner is the person who is responsible to plan and

schedule the specified capacity.
SCENARIO
Create a capacity planner.
INSTRUCTIONS

center Capacity Planning Determine capacity planner
1. Click
2. Click

Field Description
Planner Enter capacity planner. E.g.
IN6
Description Enter capacity planner
description. E.g. Processing
unit plan
4. Click Save .

Transaction
Capacity planner is to be mentioned in the capacity header

detail in the work center.
5.3 Define Shift Sequence
BACKGROUND
This configuration setting enables to define shift sequence.
Shift sequence is used to define the specific working pattern.

I.e. weekly holidays, number of shift and working hours of
each shift.
Work center capacity is calculated from its working hours

defined in the capacity header details of the work center.
There are mainly three ways to define capacity for each work
center.
Normal capacity
Available Interval capacity
Interval and shifts
Normal capacity is defined through the working hrs and break

in the capacity header
Available interval capacity is the capacity available for any

specific duration; it is defined at the capacity header detail
Interval and shifts is defining the shifts in which the machine

or industry works.
SCENARIO
Create a shift sequence with two shifts a day and Thursday

and Friday as weekly holiday.
INSTRUCTIONS

center Capacity Planning Available capacity Define shift
sequence
1. Click
2. Click

Field Description
Grouping Enter shifting grouping. E.g.
SG
Description Enter description E.g. Special
Grouping
4. Click two times
5. Select the Grouping
6. Double Click
7. Click

Field Description
Break Enter the Break name. E.g.
IN6B
Break Number Enter the break number E.g. 1
Description Description of break. E.g.
First shift break
Start Break start time
End Break end time
9. Click (Complete all the break required as explained

above)
10. Click
11. Select the break 1 line
12. Double click
13. Click

Field Description
Shift Enter shift name. E.g.1SHF
Shift text Enter shift definition. E.g.
First shift
Start date Starting date of the shift
End date End date of the shift
Start time Starting time of the shift
End Time End time of the shift
Break Enter the Break schedule. E.g.
IND6
15. Click
16. Select the 1SHT line
17. Double click
18. Click
Field Description
Sequence Enter the sequence No. E.g.
01
Shift No. Shift number in the sequence.
E.g. 1
Description Description of the shift
sequence. E.g. Two shift per
day
Day1 to Day 7 Maintain the desired shift
definition the day to follow.
E.g. 1SHT and 2SHT in all
days except Thursday and
Friday.
20. Click
21. Click Save .

Transaction
This shift sequence can be maintained as an interval of

available capacity.
This can be maintained in the work center capacity header
detail.
Once this is assigned, working days and hours to this work

center will be as per this shift sequence.
5.4 Define Formula Parameters for Work centers
BACKGROUND
This configuration setting enables to define the parameter for

the formula.
Formulas are to be defined to calculate
Cost
Capacity requirements
Schedule the operation
Formula parameter will be used in the formulas. Formulas are

used in the work center capacity view, scheduling view and
costing view to
Calculate capacity
Calculate the activity cost.
Note:-
This configuration is similar to defining the parameter

explained above. However it is reproduced for your quick
reference here also.
SCENARIO
Define formula parameter.

INSTRUCTIONS

center Capacity Planning Work center formulas Define
formula parameter for work center
1. Click
2. Click

Field Description
Parameter Parameter to hold the value.
Any alphanumeric six digit
may be entered. E.g. LABOUR
Origin Place where from the value is
to be taken. E.g. To indicate
value to be taken from task
list maintain 2 in this field.
Short key word Short description
Key work Key word to identify
Dimension Dimension of the parameter.
E.g. Any thing related to
Duration may have TIME as
dimension.
Standard Value Unit Unit of this parameter. E.g.
Time dimension may have
unit as MIN.
Note: - If any parameter for which there is no unit, it may be

mentioned as no unit.
4. Click Save .

Transaction
Formula parameter defined here will be used in the formulas.

5.5 Define Formula for Work centers
BACKGROUND
This configuration setting enables to define the formulas.
Formulas are used in
Calculate capacity requirement
Schedule the start and end of the operation
Calculate the cost
Formulas will be assigned in the work center capacity view,

scheduling view and in costing view.
SCENARIO
Create the formula to calculate the machining time.
Note: - standard formula given by SAP will meet many

requirements. Lets discuss the creation of formula.
INSTRUCTIONS

center Capacity Planning Work center formulas Define
formula parameter for work center
1. Click
2. Click

Field Description
Formula Key Enter formula key. E.g.
SAP002
Description of the formula key Enter description
Formula Maintain the formula. Mostly
SAP defined formula would be
sufficient. Let us discuss the
SAP Standard formula and
understand it. Any new
formula can be created similar
to it.
4. Parameter defined here are
SAP_02 Machine value from routing

SAP_09 Operation quantity- value from routing field
operation qty.
SAP_08 Base Quantity value from routing field base
quantity
SAP_11 Operation split value from routing field split
Above formula defined to calculate the machining time,
Machine time * Operation Quantity / Base quantity /

Operation Split
5. Indicators:-
Field name Field description and value

Tick in this check box
indicates, this formula is
generated in the system.
indicates, this formula can be
used to calculate cost.
used to calculate capacity
requirements in MRP.
used to calculate PRT
requirements.
used for scheduling
operations.

Transaction
Formula is used in work center capacity, scheduling and

costing views.
5.6 Define Factory calendar
BACKGROUND
This configuration setting enables to define the Factory

calendar.
Factory calendar will contain the entire working day and

holiday details for a specific plant.
Factory calendar will be attached to the capacity header.

Factory calendar will be referred while scheduling the
operations.
SCENARIO
Define factory calendar for plant IND6.
INSTRUCTIONS
Follow the Menu Path: IMGGeneral settings Maintain

Calendar
Note: - Factory calendar will be defined directly in the client. It

will not be captured and transported through Transport
Management.
Click
First Holiday calendar has to be maintained. There are two
holiday calendar,
1. Public holidays
2. Specific Holiday calendar
Steps involved in Calendar maintenance are
Create public holidays
Create Holiday calendar and assign the public holiday in

the holiday calendar
Create Factory calendar and assign the Holiday calendar

in the factory calendar.
Then the holiday calendar will be assigned to the factory

Calendar.
Lets now maintain public holidays.

Select Radio button Public holidays
Click
Click
Select
Click
Click
Click
Create all public holiday by repeating the above explained

steps.
Click
Select
Click
Click
Enter calendar id. E.g. I6 to indicate it is for IND6 Plant
Enter description of the calendar. E.g. Holiday Calendar for

IND6 plant.
Enter valid from year and To year. E.g. From 2005 to 2025
Click
Select the required public holidays to be assigned to the

holiday calendar.
Click
Click
Note: - Whenever the calendar maintenance are saved, system
will give the message as shown above.
Click
Note: - To delete the assignment select the required holiday

and click
Click two times
Click
Click
Click
Maintain the entry as above.
Click
Click
Click three times to reach the main IMG menu.

5.7 Define Default Capacity
BACKGROUND
This configuration setting enables to define the default

capacity category for a plant.
By defining the default capacity, for work center and resource,

if the capacity is not defined, system will consider this default
capacity detail.
SCENARIO
Define default capacity category for plant IND6.
INSTRUCTIONS

center Capacity Planning Define default capacity
Click
Update the Following fields
Field Description
Plant Enter the name of the plan.
E.g. IND6
Category Capacity category. E.g. 001
Click
Maintain the details as shown above.

Note: - this is the master data can be maintained inside the
each resource or work center in capacity header details.
5.8 Define Work center screen sequence
BACKGROUND
This configuration setting enables to define the screen

sequence for work center.
Screen sequence setting controls the sequence of appearance

of screen while creating the work center master data.
Work center contains the following important tab screens
Basic view
Default values
Capacity
Scheduling
Costing
SCENARIO
Create a different screen sequence for work center category

ZLAB.
INSTRUCTIONS

center Setup work center screen sequence
1. Click
2. Enter work center category ZLAB
3. Click
Field Description
No Sequence number in which
tab screens are to be
displayed
Man Mandatory. Entry to be made
in this tab screen if this check
box is ticked.
Note: - Normally this setting is not at all disturbed, except

making some tab screen as mandatory.
Click
Transaction
While creating the work center the sequence of Tab screen will
appear as per the configuration setting done here.
6. Routing
Routing explains how the product is to be manufactured. It

may be compared to a process sheet in the conventional
system. It contains
Operations to be carried out during manufacturing
Use of material during production
Use of work centers
Quality checks to be carried out during production

6.1 Define Standard value description in
operation over view
BACKGROUND
This configuration setting enables to define a key to hold the

standard text to be used in the routing operation.
If any common operation description is to be referred in the

task list (routing or in the master recipe), a standard key
containing the text can be used.
SCENARIO
Create a standard value key text for Routing.
INSTRUCTIONS
Follow the Menu Path: IMGProductionBasic

dataRouting Control data Define standard value
description in operation over view
1. Click
2. Enter task list type N for routing
3. Click
4. Click

Field Description
Language EN to denote English
1st SV Txt upto 6th SVTxt First standard value text up to
value 6th standard value text value.
Text entered will appear in the
routing operation.
6. Click Save .

Transaction
While confirming the operation these texts will appear against

the activity type.
6.2 Define Routing Status
BACKGROUND
This configuration setting enables to define the routing status.
Routing status helps to use the routing only for specified

purpose. I.e. Routing use can be restricted only for costing
purpose till the costing trial is completed.
Routing status can be
In Process
Released for costing only
Released for production
Selection of routing during production order or process order

creation is based on the routing selection.
Routing status has to be maintained in the routing header.
SCENARIO
Create a routing status.
INSTRUCTIONS

dataRouting General data Define routing statuses
1. Click
2. Click

Field Description
Status number Enter numeric value
Description Description of the status
number. E.g. Under creation,
or only for costing.
RelInd Released Indicator, when this
is set, routing will be used in
Orders.
Costing Indicates, task list is released
for costing.
Consistency Chk Consistency check is carryout
automatically when saving.
4. Click Save .

Transaction
While creating the routing status is maintained.

6.3 Define Task List usage
BACKGROUND
This configuration setting enables to define task list usage.
Task list usage defines the specific purpose of routing.
There are four important usage of Routing.
Production usage
Costing only
Sales and Distribution
Universal ( all purpose)
It is possible to control the usage of routing according to its

usage.
SCENARIO
Define routing usage for multi purpose usage.
INSTRUCTIONS

dataRouting General data Define routing usage
1. Click
2. Click

Field Description
Usage Enter the usage number. Any
numeric number. E.g. 1
Description Description of the usage. E.g.
Universal
4. Click Save .

Transaction
Usage of Routing has to be mentioned while creating routing

6.4 Define Reduction Strategy
BACKGROUND
This configuration setting enables to define reduction strategy.
Reduction strategy defines the sequence of compressing the

time or duration to meet the production dates.
Reduction strategy can reduce the following times which are

involved in scheduling
Queue time
Move time
Over lapping
Split
Reduction strategy will be employed when the calculated lead

time in scheduling is longer than the time between the basic
dates (required start date and finish date is the basic date),
the system will carry out reduction measures to reduce the
lead time.
Reduction is carried out step by step. After each reduction

measure, the system checks whether the calculated dates are
within the basic dates. If this is the case, no further reduction
measures are carried out.
SCENARIO
Create a reduction strategy.

INSTRUCTIONS

dataRouting Operation data Define reduction strategy
1. Click
2. Click

Field Description
Plant Enter the plant to which
reduction strategy is to be
created. E.g. IND6
Reduction strategy key Any number to identify the
reduction strategy. E.g. 1
Reduction strategy Description of Reduction
strategy. E.g. Over al
reduction for IND6
4. Click
5. Select the Reduction strategy key entered above
6. Double click
7. Click

Field Description
Re Reduction Level. E.g. 1
Reduction Queue Enter the % of reduction in
queue time
Transport Tick the check box to indicate
the reduction in move time
Overlap Tick the check box to indicate
Split Tick the check box to indicate
Note: - Repeat the above step as different level as shown

below.
9. Click Save .

Transaction
This reduction strategy can be maintained in the Routing.

6.5 Define User Fields
BACKGROUND
This configuration setting enables to define user fields.
User field can be used in the operation heading in the task list
to define your own reference data.
Maximum of six fields can be defined through the user field.
SCENARIO
Create user defined field.
INSTRUCTIONS

dataRouting Operation data Define user fields
1. Click
2. Click

Field Description
Field Key Enter the name of the field.
E.g. OPERDT
Description of the field key Enter the description. E.g.
Operation detail user field
Maintain the text field as shown above

Transaction
User field may be maintained at Routing operation header

level. Below screen shows the user field, where the details of
created by and other details can be maintained.
6.6 Define Routing Selection Automatic
BACKGROUND
This configuration setting enables to configure the automatic

selection of routing (Task list).
Task list has to be selected automatically during
Production order creation (Routing)

Process order creation (Master recipe)
Cost estimate calculation
MRP run
Routing is essential to
Calculate the conversion cost
Calculate the capacity requirements
To schedule the material at right time in MRP
SCENARIO
Define Automatic routing selection.
INSTRUCTIONS

dataRouting Routing selection Select automatically
1. Click
2. Click
Field Description
ID Selection id. E.g. 01
Selection Priority Priority of selection in this ID.
E.g. enter from 1,2
Task List type Mention the task list type. E.g.
N for routing, 2 for master
recipe
Usage Enter the Usage of this task
list. E.g. 1
Status Enter the status of this task
list. E.g. 4
Note: - Repeat the above with the same id as shown below.

Transaction
In the order type dependant parameter and MRP plant

parameter configuration
Selection id 01 will be mentioned.
While performing the transaction (creation of process order or

production order or MRP run), automatic selection of routing
will be performed in the following sequence:
First system will search task list type routing as per the
sequence 1
System will search for routing with usage 1
System will search for routing with status 4
If the above search fails, system will go to the next sequence in

the same selection id. I.e. sequence no. 2 in our above shown
screen shot.
system will search task list type routing as per the

sequence 2
System will search for routing with usage 1
System will search for routing with status 2

7. Summary:-
We have discussed the Master data related configuration

settings.
You must be able to configure master data in SAP according to

the business requirement in the following areas
Bill Of Material
Work center
Routing
Friends, please note that the most of the configuration settings

related to master data are common to manufacturing types
Discrete
PPPI
Repetitive
The terminology only differs in the various processes.
For E.g. Routing is called as master recipe in PP-PI and in

repetitive routing is called as rate routing.
Discrete PPPI Repetitive
Routing Master Recipe Rate Routing
Work center Resource Production line

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SAP PP/QM

2. GETTING INTO THE CONFIGURATION AREA OF SAP 8

3. MASTER DATA CONFIGURATION - BOM 12

3.1 Define BOM Usage 12

3.2 Define Default Values for item status 16

3.3 Define Allowed Material type for BOM Header 20

3.4 Define BOM Status 23

3.5 Define Item Category 26

3.6 Define Allowed item type for BOM Item 30

3.7 Define Explosion types 33

3.8 Define Order of Priority 36

3.9 Define Application 40

3.10 Define Alternative Determination for Multiple BOM 44

3.11 Alternative determination in related application Area 46

3.12 Define User-specific setting 47

4.1 Define Work center Category 51

4.2 Define Field Selection 54

4.3 Define Task List usage 58

4.4 Define Parameters 61

4.5 Define Standard Value 65

4.6 Determine Person Responsible 69

4.7 Define Control Key 71

5.1 Define Capacity Category 76

5.2 Determine Capacity Planner 78

5.3 Define Shift Sequence 81

5.4 Define Formula Parameters for Work centers 88

5.5 Define Formula for Work centers 91

5.6 Define Factory calendar 95

5.7 Define Default Capacity 106

5.8 Define Work center screen sequence 109

6.1 Define Standard value description in operation over view 113

6.2 Define Routing Status 115

6.3 Define Task List usage 117

6.4 Define Reduction Strategy 119

6.5 Define User Fields 123

6.6 Define Routing Selection Automatic 127

Production Planning module configuration and relevant

PP module contains three types of manufacturing methods.

Discrete production method is applicable to the manufacturing

Manufacturing is accounted through Production orders.

This method is applicable, where products are manufactured

Manufacturing is accounted through backflush.

It is similar to the Discrete but instead of routing, It uses

It is more appropriate to the food industries and processing

Configuration setting in PP module can be classified as below.

Master Data related settings

Planning Related Settings

Production Execution related settings

We will discuss about the Master data related configuration

Important Master data in PP module are

Bill Of Material (BOM):-

BOM can be defined as a list of required components along

Important Technical details related to BOM are

Machines, group of labour, processing unit are defined as

Work center contains the

Configuration setting related to work center will enable to

Sequence of operation, work centers to be used and the

Important Technical details related to Routing are

Friends, the configuration settings related to each master data

Item category configuration

Configuration of field selection in work center

Configuration of Automatic Routing selection

To make the configuration in SAP, one has to have