SAP PP/QM

Configuration Pack
Published by Team of SAP
Consultants at SAPTOPJOBS
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Copyright 2005-06@SAPTOPJOBS

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 INDEX

1. Introduction and Pre-requisite .......................................................................3

2. Basics & Features of SOP................................................................................5
3. Integration in SOP .............................................................................................7
4. Planning Method ................................................................................................8
5. Master Data in SOP:-......................................................................................11
5.1 SOP Master Data creation.......................................................................... 13
5.1.1 Information Structure.......................................................................... 13
5.1.2 Planning Type:-......................................................................................18
5.1.3 Planning Hierarchy:- ............................................................................ 23
5.1.4 Product Group .......................................................................................27
5.1.5 Resource..................................................................................................31
5.1.6 Rough-cut planning profile:-..............................................................32
6. Step by step procedure of Standard SOP:- ............................................... 37
6.1 Create Plan in inactive version .............................................................38
6.2 Disaggregate product group plan & Check capacity.......................40
6.3 Version Management............................................................................... 46
6.4 Transfer Product group to planning....................................................48
7. Step by step procedure of Flexible Planning:-.......................................... 51
7.1 Create Plan in inactive version .............................................................52
7.2 Convert Plan in to Active Version ........................................................54
7.3 Transfer to Demand management .......................................................55
8. Configuration ....................................................................................................57
8.1 Set parameter for Info structure and Key figure:- ...........................58
8.2 Maintain Transfer Profile:-..................................................................... 60
8.3 Define Activity ...........................................................................................62
8.4 Define Key figure assignment ............................................................... 64
8.5 Define copy profile. ..................................................................................68
9. Mass processing:- ............................................................................................69
9.1 Creating Planning Job –Disaggregation:-........................................... 70
9.2 Scheduling a job .......................................................................................74
9.3 Changing and Resetting the Mass processing Job.......................... 75
10. Demand Management:- .............................................................................. 77
10.1 Planning Strategy:- .............................................................................. 78
10.2 Make To Stock:- ....................................................................................79
10.3 Make To Order:-....................................................................................81
10.4 Planned Independent Requirement (PIR):- ....................................82
11. Tips about Info structure creation:-........................................................84
Activities .............................................................................................................84
 1. Introduction and Pre-requisite

Let us first have a conceptual understanding about SOP before

we dig in further to the SAP screens.

Sales & Operations Planning (SOP) is a flexible forecasting and

planning tool with which sales, production, and other supply
chain targets can be set on the basis of historical, existing,
and estimated future data.

SOP may be used to streamline and consolidate company’s

sales and production operations and is also suitable for long
and medium term planning.

SOP is used mainly in a set up where there is

Ø More of product hierarchies

Ø More product ranges
Ø More regional planning are involved

Sales and Operations planning functions are based on

planning function of the LIS information system.

Pre-requisite for SOP

Ø Information structure
Ø Master data like
a. Product group
b. Planning type
c. Planning hierarchy
d. Rough-cut planning profile.

The whole idea of SOP/forecast etc., are to bring the

requirement to Demand management in a more scientific way.

Entire planning action of MRP/MPS run picks up the

requirement from Planned Independent Requirement.
Details about Demand Management are explained at the end
of this book as a kind of refreshing Demand management.
 2. Basics & Features of SOP

The Sales & Operations Planning (SOP) application is based on

information structures. An information structure is a statistics
file containing operational data. This can be either planning
data you anticipate will happen or actual data that happened.

An information structure contains three kinds of information:

characteristics, key figures, and a period unit. Information
structures are used for data evaluation, projection, and
analysis in all the logistics information systems.

Feature of SOP:-

SOP is made of two application components. They are

1. Standard Sales and Operations Planning

2. Flexible Planning

Standard SOP:-

Standard SOP, you work with one organizational unit, the

product group hierarchy, and plan predefined key figures in a
planning table with a set layout. All plans in Standard SOP are
based on the standard information structure S076.

If there are more regions for an organization, planning can not

be done at different region or different sales organization level
using Standard SOP.

Flexible Planning:-

Flexible Planning, on the other hand, can be based on any

information structure of your choice, either a self-defined
information structure or a standard information structure.
If there are more regions for an organization, planning can be
done at different region or different sales organization level
using Flexible planning.
 3. Integration in SOP

SOP constitutes the planning functionality of the LIS

information systems.

You pass on SOP plans to Demand Management (PP-MP-DEM)

in the form of independent requirements. In turn, this data is
fed to Master Production Scheduling (PP-MP-MPS) and
Material Requirements Planning (PP-MRP).

An interface with Profitability Analysis (CO-PA) allows you to

use CO-PA data as the basis for sales planning in SOP.

You can also pass on the results of SOP to Profitability

Analysis (CO-PA), Cost Center Accounting (CO-OM-CCA), and
Activity-Based Costing (CO-OM-CCA).

Application Link Enabling (CA-BFA-ALE) supports the

distribution of data to different operating units in your
enterprise.
 4. Planning Method

Very importance in SOP is the planning method applied to the

information structure. The planning method determines how
data is distributed to different corporate units.

You define your planning methods in Customizing (in Set

parameters for info structures and key figures).

Three planning methods are available:

Ø Consistent planning
Ø Level-by-level planning
Ø Delta planning

Consistent Planning:-

• Data is stored at the most detailed level of the planning

hierarchy.

• Planning levels are interdependent: changes made at one

planning level immediately affect all other planning
levels. The system performs aggregation and
disaggregation at runtime.

• Planning is based on a self-defined information structure.

• You can access planning data from any level.

• Your view on the planning table is non-hierarchical: you

plan one or more characteristic value combinations.

Flexible planning info structure is created with consistent

planning.

Level by Level Planning:-

 • Data is stored at all planning levels.

• You can plan each planning level separately.

• Planning levels are independent of each other; plans at

different levels need not necessarily be consistent.

• Both top-down and bottom-up planning are possible.

• You can have the system predefine the proportional

factors of characteristic values automatically, on the
basis of existing (actual or planned) data.

Standard SOP process uses Level-by-level planning in info

structure S076.

Delta Planning:-

• Data entered at one level is aggregated automatically to

higher levels at runtime.

• Changes made at one level are not automatically

disaggregated. The difference remains between the sum
of the individual values at the lower level and the total
shown at the higher level.

Summary of above three planning methods:-

Function Consistent Level-By- Delta

Level
Automatic Yes No Yes
aggregation
Automatic Yes No No
disaggregation based
on factors saved in
database
Automatic time- Yes No No
dependent
disaggregation based
on previous
planning data
Create planning Yes Yes Not required
hierarchy
Forecast Yes Yes Yes (but not
possible to
save different
forecast
versions)
Resource leveling Yes Yes No
Background Yes Yes No
processing
Fix key figure values Yes No No
in the planning table
Long texts for Yes Yes No
versions and periods
in the planning table
Standard analysis Yes No No
for info structure
Transfer to Demand Yes Yes No
Management

Ok let us discuss the master data required in SOP.

 5. Master Data in SOP:-

There are six important master data required for SOP process.
They are

Information structure
Product group
Resource
Rough-cut planning profile
Planning type
Planning Hierarchy

Information Structure: -

SAP Standard information structure may be used for flexible

planning. Info structure should be planned for consistent
planning and level by level planning. If required new info
structure may also be created.

Planning type:-

Act as a template to maintain data for specific information

structure. It is a customized view of planning table. You may
have one view for sales planner and another view for
production planner. There is no restriction on number of
planning type per info structure.

Planning Hierarchy:-

It is a combination of characteristics value. It provides

framework for planning in flexible planning.

Product group:-
A product group combines other product groups and materials
according to whatever criteria best meet the needs of your
enterprise. Mostly used in Standard SOP.

Resource:-

Machine is normally referred as a work center or resource in

SAP. It is the place where conversion of work takes place. Used
in Rough-cut profile.

Rough-cut Planning profile:-

Rough-cut planning profiles are used in resource leveling.

Rough-cut planning profiles are designed to give you an
aggregate view on your resources.
5.1 SOP Master Data creation

5.1.1 Information Structure

Information systems are flexible tools for collecting,

aggregating and evaluating data from the operative
application. In addition, you can use this data as the basis for
planning. You can therefore use the information systems for
controlling, monitoring and planning purposes.

New information system number should lie between S501 to

S999

Menu Path:- IMGàLogistics GeneralàLogistics Information

system (LIS)àLogistics Data WarehouseàData
basisàinformation structureàMaintain self defined
information structure

1. Click
 2. Update the following fields
Field name Field value
Info Structure Structure Number - any
number between S501 and
S999
Description Enter description
Application 41 – Logistic general
Plng.Possible Tick the check box planning
possible.

3. Click

4. Click
5. field catalog are displayed, Double click the
required field catalog and select the required filed.
Note: - Double click production order field catalog and
single click Plant and MRP controller to select these two fields
as characteristics. i.e planning is to be done based on this two.

6. Click
7. Click
8. Click

9. Double click

10. Left side of the screen select the field by clicking

one time

11. Click
12. Click
13. Click
14. Click Generate through menu in the top of this
screen-- Info structureàGenerate
15. Click
5.1.2 Planning Type:-

It acts as a template to maintain data for specific information

structure. It is a customized view of planning table. You may
have one view for sales planner and another view for
production planner. There is no restriction on number of
planning type per info structure.

Let’s create planning type for the info structure S976

Menu Path:- LogisticsàProductionàSOPàPlanningà Flexible

PlanningàToolsàPlanning typeàCreate MC8A

1. Double click MC8A

2. Enter planning type

3. Click

4. Enter Info structure number S976

5. Click
6. Enter Planning type text
7. Enter planning start date
8. Click

9. Click
10. Select the Sales radio button
11. Click
12. Keep the cursor on next line and assign all key
figure to this structure.

13. Select the row and click to assign control

to each row.
14. Make entry as shown above.
15. Click
16. Click

Let’s create another planning type for production person

17. Repeat from step 1 to 9 , give different name to this

planning type.
18. Click
19. Select
20. Click
21. Click

So there are two planning type one for Sales planner and
another for production planner.
5.1.3 Planning Hierarchy:-

Menu Path:- LogisticsàProductionàSOPàPlanningàFlexible

planningàMaster DataàPlanning HierarchyàMC61 Create

1. Double click MC61 Create

2. Enter Info structure e.g. S976

Note:- Structure S976 characteristics are appearing here. Last

characteristic is material. Planning will be done for material.

3. Maintain the characteristics value as shown to your

organization
4. Click

5. Maintain material code number and proportion as 100

 6. Click
7. Click

Adding Member in planning Hierarchy

Menu Path:- LogisticsàProductionàSOPàPlanningàFlexible

planningàMaster DataàPlanning HierarchyàMC61 Create

1. Click Revise through menu path in the top of the

screen Planning HierarchyàRevise

2. Enter info structure number S976

3. Select Add member radio button
4. Click
 5. Enter New material code number to be added in
the planning hierarchy.
6. Remove tick in Simulation only check box
7. Click
8. Click two times

Deleting member in Planning Hierarchy

1. Repeat step no. 1 and 2 of above adding member

process
2. Select Delete member
3. click

4. Enter the details as above

5. Click
 Task completed.

5.1.4 Product Group

A product group combines other product groups and materials

according to whatever criteria best meet the needs of
enterprise.

Product groups are classified according to whether they are

multi-level or single-level.

A product group is multi-level if it contains other product

groups. However, the lowest level in a product group hierarchy
always consists of materials.

A product group is single-level if its members are materials

only.

Menu Path:- LogisticsàProductionàSOPàProduct

groupàCreate MC84

1. Double click Create MC84

2. Enter the following field

 Field Name Field value
Product group 04-level
Description Product group description
Plant IND6
Base Unit Enter Unit. E.g. Ea
Member of the product group Select product group radio
button.*

* NOTE:- If the product group member is to be another

product group then, select product group radio button
. If it is to be material, select material radio
button .

3. Click
 4. Update the required following field

Field name Field value

Member number Enter the product group
name. e.g.03-level
Aggregate factor 1
Proportion Enter the proportional
quantity. e.g. 40
Member number Enter the product group
name. e.g.03-level-2
Aggregate factor 1
Proportion Enter the proportional
quantity. e.g. 60

5. Click

6. Click

Continue the step till the last product group level.

NOTE: - Remember when you create last product, its member

will be material. Material radio button is to be selected
at that time.

After creation of all required product group and its member,

structure will look as shown below.
5.1.5 Resource

Resource or work center is the standard essential master data

in PP module, which should normally exist already in the
system.

Creation of resource or work center is not discussed in this

book.
5.1.6 Rough-cut planning profile:-

It is a kind of resource leveling tool. One can have a visibility

of target in terms of resource required to meet them. This gives
the input to fine tune the target and optimize the use of
resource.

Let us say, a product has to undergo processing in four

machines. Machine three is a bottleneck operation. It is
essential to check the capacity of this resource to the planned
quantity. Then rough cut planning profile will be created to
this resource and evaluated for capacity.

Let us see how to create Rough-cut planning profile for a

product group.

Menu Path: - LogisticsàProductionàSOPàToolsàRough-cut

planning profileàMC35 Create

1. Double click MC35

3. Enter Product group and Plant
4. Click
 5. Enter the following required and optional fields

Field Name Description Value

Time span Pattern of working Enter 1
days to check
capacity
Base Qty Quantity to which 100
the data are
applicable
From Lot size Lot size from which 1
it is applicable
To Lot size Lot size To which it 2500000
is applicable
Description Brief detail of rough Enter any text
cut profile

6. Click

7. Enter resource name in the resource table.

8. Enter value 1 in column 1. It denotes this resource
will take one Hr to produce 100 units.

9. Click
10. Select Work center radio button as resource type.

11. Click Enter

12. Update the work center name, plant and

UOM of work center.

13. Click Enter

14. Click
Rough cut planning profile created for product group 01-level

Once product group and rough-cut planning profile is ready,

we are all set to do SOP transactions one by one from
planning.
 6. Step by step procedure of Standard SOP:-

Four important steps in Standard SOP Process

1. Create Plan in inactive version

2. Disaggregate product group plan & check capacity
utilization
3. Convert Inactive version to active version
4. Transfer plan to demand management
 6.1 Create Plan in inactive version

Sales department in discussion with planning department

prepares the sales plan for different product range or for
different product groups.

Menu path:-LogisticsàProductionàSOPàplanningàFor
product groupàMC81 Create

1. Double Click MC81 Create

2. Enter Product group and Plant as 04-Level and IND6

respectively as shown above.

3. Click Enter

4. Enter the Version number and Description

5. Click Enter

6. Enter the Sales quantity for the future period

7. Click Click Enter

8. Click

Note:- If you want to create in active version, select active

version A00.
 6.2 Disaggregate product group plan & Check
capacity

Planning is done at the product group level at highest level.

Now it is required to disaggregate the plan to plan the down
level product group and finally the material.

Menu path:-
LogisticsàProductionàSOPàDisaggregationàMC76 Break
Down PG plan
1. Double Click MC76 Break down PG plan

2. Click . (If it is active version, click Active

version)
3. Click Create Sales plan, as it is required to create sales
plan for next group.

4. Click

5. Click Enter
Note: - Next level product group plan is created according to
the proportion maintained in the product group creation
master data.

6. Click enter
7. Click

Note: - Continue this product group disaggregation till the first

level. I.e. a level above the material.
Disaggregating of 01-Level product group

1. Click Inactive Version

2. Click Enter
3. Select EditàCreate production planàSyn.to sales
4. Select Production Line
5. Select ViewàCapacity situationàrough-cut
planningàshow

It shows the capacity load and required capacity.

6. Click Enter
7. Click
 6.3 Version Management

Presently the plan is available in inactive version. With this

version, capacity situation is verified. If it is found
satisfactory, it may be transferred to A00 as a Active
version.

Menu path:-LogisticsàProductionàSOPàPlanningàVersion
ManagementàMC78 Copy

1. Double click MC78 copy

2. Update the following fields.

Field Name Value
Source version 001
Target version A00
Period From 01.08.2005
Period To 01.01.2006

3. Click
4. Click Enter
5. Click
 6.4 Transfer Product group to planning

Menu Path:-
LogisticsàProductionàSOPàDisaggregationàMC75 Transfer
product group to planning

1. Double click MC75

2. Update the following required fields

Field Name Value
Version A00
Transfer strategy and period Select radio button as shown
 above
From period 01.08.2005
To period Enter the end of planning
Invisible transfer Remove the tick mark in the
check box
Requirement Type LSF
Version 00
Active Make the tick mark in the
check box.

3. Click

Plan is transferred to Demand management.

The plan is transferred to Demand Management. Similar to

disaggregation, aggregation can also be done.
 7. Step by step procedure of Flexible Planning:-

Flexible Planning process is one of the components of SOP. It

uses a self designed info structure. It enables to plan for
different organizational unit i.e. for different characteristics.

Three important steps in Flexible planning are

1. Create Plan in inactive version

2. Convert plan in to active version
3. Transfer to demand management
 7.1 Create Plan in inactive version

It is assumed that production planner is to create plan for

a specific characteristic combination for material test-sop-
001

Menu path:-
LogisticsàProductionàSOPàPlanningà Flexible
planningàPlanning à MC93 Create

1. Double click MC93 Create

2. Enter planning type ZTESTPRODFC – Remember this is
the planning type for production person we have created
above.
3. Click

4. Click
5. Enter version number and description
6. Click

7. Enter the planned production quantity.

8. Click
7.2 Convert Plan in to Active Version

Production plan is finalized and it is now required to be

converted in to active version.

Menu Path:-
LogisticsàProductionàSOPàPlanningà Flexible
planningà PlanningàVersion managementà MC8V copy

1. Double click MC8V Copy

2. Enter Info structure number e.g.S976
3. Click
4. Enter source version 001
5. Enter target version A00
6. Enter appropriate period
7. Click
8. Click

9. Click
10. Click
7.3 Transfer to Demand management

It is required to transfer the material to demand

management.

Menu Path:-
LogisticsàProductionàSOPàPlanningà Flexible
planningà EnvironmentàMC90 Transfer material to
demand management

1. Double click MC90 Transfer material to demand

management

2. Maintain the required fields as below

 Field Name Field Value
Material Enter material number
Plant Enter plant number
Info structure Enter info structure no
Version Enter version to be transferred
Key figure Produ – production figures are
to be transferred. If it is
required to transfer any other
field, select appropriate by
pressing F4 button.
From date to To date Maintain planning duration to
which data are to be
transferred
Invisible transfer Remove the tick
Requirement type Depending up on the material
master strategy it has to be
maintained, e.g strategy
Req.type
40 VSF
10 LSF
11 BSF
Active Ensure the tick, PIR quantity
will be active.

3. Click
 Entries are transferred in to demand management.

End of Flexible planning steps

8. Configuration

Standard SOP does not require much configuration. Only SOP

master data like Product group and rough-cut planning profile
is sufficient for standard SOP.

Configurations:-

Ø Create Info structure

Ø Set parameter for info structure and key figure
Ø Maintain planning type
Ø Define Transfer Profile
Ø Define Activity
Ø Define Key figure assignment
Ø Define copy profile
 8.1Set parameter for Info structure and Key figure:-

Create Info structure is explained in the master data creation

session.

When the info structure is created parameters are set to be set

to that info structure.

Menu Path:-
LogisticsàPlanningàMaster DataàSet parameters for info
structure and key figure

1. Click

2. Update the following required field

Field Name Field value

Table
Planning Method
Statistic currency
Basic Unit Of measure
Factory calendar
Zero value to MRP
Key figure restricted database
update
Info structure number
K – for consistent planning
respective country currency
Nos. or according to the
industry
Respective factory calendar
Empty the check box as tick
in this check box will NOT
transfer the plan quantity to
MRP.
Ensure Tick in this check box.

Note: The above info structure parameters are applicable to

SOP and not the general one for any info structure.

3. Click
4. Select the required key figure
5. Click
6. To create new entries click
 8.2Maintain Transfer Profile:-

We have already discussed the way of creating the planning

type; it is available in both easy access as well as in
configuration.

Transfer profile covers the detail regarding transfer of data.

Details maintained during manual transfer of data through
MC75 transaction are maintained here.

Menu path:-IMGàProductionàSales and Operation

PlanningàFunctionsàMass processingàMaintain Transfer
profiles.

4. Click

5. update the following required field

Field Name Value
Transfer Profile Text value e.g. SOPS076
Strategy 9 – to transfer members of the
structure
Table Structure Name S076
Field Name Field name of the structure
 referring Sales plan quantity.
Requirement type LSF- governing the entry in
the demand management.
Version Version of the entry in
demand management 00
Active Indicating Entry in demand
management is active.

3. Click
 8.3Define Activity

Activity has to be defined initially prior to mass processing. It

is used at the time of creating planning job. In SOP, Mass
processing is carried out for Disaggregation, Aggregation,
Copying version and transfer to demand management.

Given below is the example of defining activity to transfer plan

to demand management.

Menu path:-IMGàProductionàSales and Operation

PlanningàFunctionsàMass processingàDefine Activity

1. Click
 2. Update the following required fields
Field Name Value
Key Any text entry
Activity sequence 0
Planning Type Planning type referring the
info structure. It is used in
Flexible planning
Activity* Activity to be performed. By
default, SAP contains the
Following activities.
Transfer Profile Transfer profile Defining how
data to be transferred.
Copy Profile Similar to transfer profile,
profile containing details of
copying information from one
structure to another. Creating
copy profile is explained
below.

*List of standard SAP activities.

3. Click

Note: - Defining profile and Defining Activities can be

accessed through SAP Easy access also.

Menu Path: - LogisticsàProductionàSOPàSettingsàMass

processingà MC8T Activities, MC8S Transfer profiles
 8.4Define Key figure assignment

Copying from one structure and another structure is done in

SOP. When more than one structure is used for planning
purpose in SOP, to make any one plan as live, it may be
required to copy some key figures from one info structure to
another info structure. Before proceeding to copy, it is
mandatory to assign the key figure of one structure to the key
figure of another structure.

This key figure assignment is saved as assignment profile and

referred in the copy profile.

Menu Path:-
LogisticsàProductionàSOPàSettingsàMass
processingàMC8Z Key figure assignment.

1. Double click MC8Z key figure assignment

2. Enter Source info structure and Target info structure
3. Click
4. Select
5. Click
6. Select
7. Click
8. Repeat the above steps till you complete mapping of all
the source key figure with target key figure.
9. Click
10. Enter assignment profile name
11. Click
12. Click
 8.5Define copy profile.

Copy profile is used to copy key figures from one structure to

another structure.

Menu Path:-
LogisticsàProductionàSOPàSettingsàMass
processingàMC9D Copy Profiles.

1. Double click MC9D Copy profiles

2. Click

3. Update the following required fileds

Field Name Field value

Copy Profile Name of copy profile
Target version Enter target version. E.g. A00
Source version Enter source version. E.g BUD
Assignment profile Enter the assignment profile.

4. Click
 9. Mass processing:-

It is the process of carrying out one or sequence of

transactions for multiple values through a single process.

Mass processing in SOP is done by the following steps.

a. Create planning job

b. Schedule job

Activities in Mass processing are

Resetting the job

It is required to be run before scheduling the
job again after a schedule.
Changing the job
It is used to change any activity in the
planning job.

There are four frequently used mass processing in SOP. They

are

1. Disaggregation of product group

2. Transfer inactive version to active version
3. Transfer plan to Demand management
4. Copy plan from one structure to another structure
 9.1 Creating Planning Job Disaggregation:-

Menu Path: - LogisticsàProductionàSOPàPlanningà Mass

processingàMC8D Create

1. Double click MC8D

2. Update the required and optional field

Field Name Field value
Job Number Enter any value e.g
PGDISAGG76
Job name Enter text as shown above

3. Click
 4. update the required fields
Field Name Field value
Info structure S076
Version Enter active version A00

5. Click
6. Select the planning type as “SOPDIS”
7. Enter Variant name
8. Click
 9. Update the following required fields
Field Name Field value
Product group/material Enter 04-level to 01-level
product group
Plant IND6
Planning activity TST. According to the mass
processing job, planning
activity is to be maintained
here. If it is required to create
mass processing for copy
version, that planning activity
has to be mentioned here.
Plant Select plant radio button

10. Click in the product group line.

11. Click

12. Click

13. Enter variant name

14. Click
9.2 Scheduling a job

When the planning is completed, disaggregation is done

through mass processing by scheduling a job.

Menu path: - LogisticsàProductionàSOPàPlanningàMass

processingàMC8G Schedule

1. Double click MC8G Schedule

2. Click

Mass processing will start immediately

 9.3 Changing and Resetting the Mass processing Job

Once the job is run, before running the job for second time,
it is required to reset the job.

Menu path: - LogisticsàProductionàSOPàPlanningàMass

processingàMC8E Change Job

1. Double click MC8E

2. Click

To change the planning job,

2. Click
Change the required fields as per the business requirement.
 10. Demand Management:-

Demand Management is to determine requirement quantities

and date for finished products and for assemblies.

There are two types of Demand in SAP.

1. Customer Demand
2. Planned Independent requirement

Customer Demands are created through sales and distribution

module.

Stock requirements are created through Planned Independent

requirement in Production Planning modules.

Demand Management uses planned Independent requirement

and customer requirement.

Pre-requisite for Demand Management:-

Ø Planning strategy is to be defined for a product.

Planning strategy defines how a product is to be planned

(Whether make to order or make to stock) and produced.
 10.1 Planning Strategy:-

Planning strategies represent the business procedures for the

planning of production quantities and dates.

E.g. whether the material is to be planned

Ø in anticipation of order
Ø only after receiving the firm order
Ø Only assemblies are to be planned

TWO very important strategies are

a. Make To Stock
b. Make To Order

Planning Strategies are denoted by two digit numeric number

in standard SAP.
 10.2 Make To Stock:-

Following strategies represent Make To Stock.

Strategy No. 10 - Make To Stock with Net

requirement.

This strategy will not consider the customer requirement.

Planned stock requirement i.e. planned independent
requirement in the demand management are reduced only
when the sale is made.

Example to strategy No.10:-

Strategy 10

Planned quantity 100

Sales Order requirement 80
Stock available 40
Result of MRP Planned order for 60Nos
Strategy No. 11 - Make To Stock with Gross
requirement.

This strategy will not consider the customer requirement and

warehouse stock while planning. Planned stock requirement
i.e. planned independent requirement in the demand
management are reduced only when the production is
completed.

Example to strategy No.11:-

Strategy 11

Planned quantity 100

Sales Order requirement 40
Stock 25
Result of MRP Planned order for 100Nos

Strategy No. 40 Planning with Final Assembly

This strategy will consider both the customer requirement and

stock requirement i.e. planned independent requirement while
planning. Planned independent requirement in the demand
management are reduced only when the sales is completed.

Example to strategy No.40:-

Strategy 40

Planned quantity 100

Sales order requirement 120
Stock nil
Result of MPR Planned order for 120.

Please note that Sales order will consume the Planned

Independent requirement. i.e. 100nos planned quantity will
not be sufficient to meet the requirement; hence planned order
of 120 will be created by MRP.
 10.3 Make To Order:-

Following strategies represent Make To Order

Strategy No.20 Make To Order

This strategy will consider only the customer requirement

while planning. Planned independent requirement in the
demand management are NOT CONSIDERED during planning.

Example to strategy No.20:-

Strategy 20

Planned quantity nil

Sales order requirement 60
Stock nil
Result of MRP Planned order for 60Nos.

Note:- For a product having strategy 20, it is not possible to

plan through Planned Independent Requirement.

There many other strategies in SAP. I am going to restrict with

these two MTS and MTO. Please note about 70% of the
implementation uses only these strategies.

We have been using the word Planned Independent

Requirement all along. I understand you are all eager to know
the steps in creating the Planned Independent requirement.

Common let’s discuss it.

 10.4 Planned Independent Requirement (PIR):-

Independent requirements are maintained in SAP at this are,

from here

Menu Path:-LogisticsàProductionàProduction
PlanningàDemand ManagementàPlanned Independent
RequirementsàCreate MD61

Enter material – material code number

Enter Version – Version number for identification
Enter Planning Horizon – period of planning

Click Enter
Field name Description
Material Material code number
Plant Production unit where to be planned
DV Version number
AC To indicate it is Active. If this tick is not
maintained it is not ACTIVE. It will not be
included in the planning.
M 06.2005 Planning month where planned stock
quantity are maintained for planning.

Click Save icon

PIR creation Task completed.

 11. Tips about Info structure creation:-

Though the information structure creation is explained with

screen shot, it would be better for you to have a more
information about IMG help on creating Info structure.

Activities

1. In the Info structure field, specify both a name and a

description for the information structure that you wish to
create.
2. Assign the information structure to an application.
3. You use the attribute to determine the type of info
structure, and also to determine if this info structure can be
planned. Once an information structure has been created with
certain attributes, these attributes can not be changed.
4. If you want to create an information structure with
reference to an information structure that already exists,
specify the name of the information structure to which you are
referring in the field Copy from info structure.
The elements of the reference structure are then automatically
copied to the new information structure. You can make
changes to these proposals.
5. Press Enter.
a) If you chose type 'D' (without update), the transaction
structure
(type ' ') and the stock structure (type 'C') must be specified
first.
You now branch into the maintenance screen of the
characteristics and key figures of the information structure.
6. Select Edit -> Characteristics, in order to define the
characteristics for the information structure.
Two dialog boxes for selecting the characteristics are
displayed.
One dialog box (Chosen Characteristics: Sequence) lists the
fields that have already been selected. To select other fields
choose the function Selection list.
The second dialog box (Selection List) consists of two lists.
Only those field catalogs from which you can select
characteristics are displayed. Only the field catalogs that apply
to the selected application are displayed (characteristic
catalogs).
7. If you want to display the characteristics in a certain field
catalog, select it by double-clicking on the catalog.
The list on the left shows the characteristics from the selected
field catalog.
8. If you want to copy a characteristic from the list to your
information structure, position the cursor on the respective
charcteristic name and select the function Copy.
The characteristic you select is marked and is then copied into
the list of the characteristics you have already selected.
Note
When you select field catalogs and characteristics, the
respective descriptions are displayed.
You can use the Switch display function to display the
technical names (field catalog names and field names of the
characteristic from the Dictionary).
9. You can branch into the list of selected characteristics, by
pressing Enter.
You can now edit this list further, i.e. you can change the
sequence of the of the characteristics, delete characteristics
from the list or insert new characteristics from the field
catalogs.
To change the sequence of the selected characteristics,
proceed as follows:
a) Select the characteristic or block of characteristics that
needs to be moved by double clicking or using icon
Select/Deselect or Select block. The icon Move appears.
Position your cursor on another character, and choose Move.
The characteristic or block of characteristics that you marked
first will now be be inserted exactly above this second
characteristic.
An alternative to selecting characteristics from the field
catalogs is to copy the characteristics from an information
structure that already exists.
Select the function Edit -> Chacteristics with reference. In
the dialog box, specify the name of the information structure
from which you want to copy the characteristics.
Caution
If you have already selected characteristics and use the
"Characteristics with reference" function, the characteristics
that you have already selected will be overwritten and not
added.
10. In order to define the key figures for the information
structure, select Edit -> Key figures .
The system displays the field catalogs for key figures and the
catalogs for date fields which correspond to the application.
The procedure for the definition of the key figures is exactly
the same as for the definition of the characteristics.
Note
It is sometimes necessary to define key figures which resemble
characteristics in the key figure area. This is necessary in
cases of information structures that are relatively document-
specific, for example.
The key figure catalogs in the standard system only contain
key figures that can be calculated.
If you want to define key figures that resemble characteristics,
you need to have created your own key figures catalogs.
When defining a key figure, you must also specify a unit. This
causes the unit from the source field of the application to be
proposed.
The unit of the key figure can differ from this proposal. If you
use similar key figures in an information structure whose
source fields have different units (for example, local currency
and document currency), these key figures are not directly
comparable when different document currencies and local
currencies are used in evaluations.
In this case you can assign the unit "local currency" to the key
figure whose source field is in document currency for
statistical purposes.
If the units in the source field and key figure are different, the
units are automatically converted when the statistics update
from the application takes place.
Caution
There is a limited number of ways in which the unit
conversions can be used.
Only very specific conversions are allowed for the statistics
update. These are, as a rule, the unit conversions whose
conversion factors are saved in the document of the
application. This is required to guarantee the consistency of
statistics updates when changes are made to the document.
This will help prevent inconsistencies arising during the time
between the creation of a document and the subsequent
changes to the document. In both cases, the same conversion
rate is used for the unit conversion.
Note
When the information structure is generated, a corresponding
unit field is automatically created in the information structure
in accordance with the selected unit. This unit field is
automatically supplied with the respective unit that
corresponds to the key figure during updating.
The automatic generation of a unit field does not occur for key
figures that do not have a unit or for numerators.
It is possible to use self-defined units for self-defined key
figures. If the log shows missing entries for the table TMC6
and TMC24 after the check or generation, execute maintain
units.
They also play an important role in standard analyses for the
definition of a key figure.
If you use qualitative key figures, it is not recommended to
display these key figures as a percentage.
For example, if the key figure value to be evaluated is greater
than the key figure 3.5 by 1.5, it does not make sense to
illustrate both of the key figures as a percentage of a sum of
5.0.
The indicator "SKz" (summation indicator) indicates whether
the value of the key figure can be properly cumulated. This
information is used in the standard analysis for totals
formation, execution of the ABC analysis, classification and
segmentation. It is also used in Copy Management.
Caution
This key figure does not affect the display of totals in the
flexible analyses.
a) In information structures for which the attribute Planning
possible is set, you can select the indicator "FKz" (Fix
indicator) so that the values of this key figure can be fixed in
the planning table in Flexible Planning.
During generation, an additional field is created, with the
prefix "F".
Example: If the field name is AETNETWR, a field with the
name FAETNETWR is generated in the dictionary table and the
database table. This field is not displayed in the information
structure.
a) In information structures of type 'D' (without update) or type
'E', (standard with valuations) stock values are marked with
the indicator "BWt" (Stock value).
For the stock values with an information structure type 'D'
(without updating) you must define the stock value in the
stock info structure type 'C' (without period), and the
receipt/issue values in the transactional information structure
type ' ' (standard). To do so, choose Edit -> Receipt/issue key
figures.
1. Save the information structure.
2. Choose Info structure -> Generate
During generation, the dictionary table and its database table
for the information structure "Snnn" and the table for the
planning hierarchy "SnnnE" are created ("nnn" is the number
of the information structure).
In order to generate this environment automatically, select the
function "Generate info structure".
First you gain an overview of the most important steps of the
generation (brief summary of the generation log). Position your
cursor on a row in the log and choose Goto -> Detailed log for
a detailed overview of the object created. Alternatively, you can
choose Goto -> Complete log to see the entire log. Using Goto
-> Documentation , you can obtain a message number and
the long text (if available) for the message, which is useful in
solving the problem.
To print the log, select the function Log -> Print.
It is possible to display the generated objects.
Position the cursor on the appropriate line of the log and select
Goto -> Generated object. You then branch to the Dictionary
to display the generated table.