S4 – New features

La prima innovazione è quella relativa ai master data, portando l’estensione dei caratteri ammessi
a 40, è possibile attivare o meno questa funzionalità. Diversi campi sono stati semplificati in
s4hana, come la storage location mrp, uso della quota. Inoltre, è stato introdotto il tipo materiale
SERV, per service materials.

Gestione MRP Area e versione di produzione obbligatorie.

Cosa offre PP/DS:

You can perform the following via the included functionalities:

• Use the new Create Optimal Orders for Shipment app in SAP Fiori to order multiple materials in
one purchase order and to optimize order quantities to best use the means of transport.
• Plan critical products (e.g., long replenishment lead time).
• Optimize and plan the resource schedule by taking the resource and component
availability into account.
• Cover product requirements in procurement proposals for in-house production or
external procurement.
• Create executable production plans.
• Perform constrained-based prod uction planning.
• Make use of the reusable operation list for order scheduling.
• Improve personalization capabilities.
• Access the production scheduling board through a web-based graphical schedul- ing tool or new
SAP Fiori app for PP/DS that allows access to some ofthe new func- tionalities in this list.

Material Requirements Planning

MRP AREA -

Con la release 1610, si può usare pp/ds. Non è più necessaria l’integrazione dei master data e delle
risorse.

PP – MRP type

2-3 h
1h inglese

SAP S/4HANA Logistics

Deployment Options
There are multiple avenues through which SAP S/4HANA
logistics can be deployed. Here’s a brief overview of each.
On-Premise
An on-premise deployment encompasses traditional in-house IT
infrastructure models. This deployment model describes an
instance of SAP S/4HANA logistics that is physically hosted on
company property.
Cloud
There are three cloud options for SAP S/4HANA logistics
deployment, all of which involve the use of external cloud
integration.
1 In a multi-tenant deployment (formerly known as the public
option), a company leases a siloed piece of server space
shared with other clients running SAP S/4HANA.
2 In a single-tenant cloud deployment (formerly known as the
private option), a company places the SAP S/4HANA
infrastructure and hardware in its own data center.
In an SAP HANA Enterprise Cloud deployment, a company is
given space to utilize SAP S/4HANA on SAP’s private cloud.

SAP S/4HANA Release Cycle

SAP S/4HANA receives multiple updates a year. Cloud-deployed
instances will receive quarterly updates, while on-premise
deployments are updated once a year, usually in September.
 
The naming conventions for SAP S/4HANA releases follows this
four-digit format: year/month. For example, the 1909 release of
SAP S/4HANA refers to the release that came out in the year 2019
(19), month of September (09).

In SAP ERP, material documents are stored in two document

tables, MKPF and MSEG. In addition, there are other tables that
store aggregated actual stock quantity and mate- rial master
attributes. On top of these, specific tables with aggregated
actual stock quantity by stock type (e.g., sales order stock)
also exist.
With SAP S/4HANA, material document data isn't stored in
tables MKPF and MSEG any longer. Instead, it's stored in the
new denormalized table MATOOC, which will contain the
header and item data of a material document, as well as many
other attributes. The tables for aggregated actual stock
quantities don't exist any longer; instead, actual stock quantity
will be calculated on the fly from the new material document
table MATDOC. As a result, the new data model will work on
the database level in an INSERT mode without database locks.

Attivazione material ledger obbligatoria in S4 HANA.

AATP (advanced available to promise)

Cost Calculation
Master Recipe

MRP Type

SOP
Xsteps
Interfacce
PPDS

PP – PI:

MRP Strategies (PP-MRP)

La funziona del Demand Management è determinare le quantità richieste e le date di consegna
per il prodotto finito. Per definire il demand program, bisogna definire la strategia di pianificazione
del prodotto.
Strategy group in SAP 

La procedura di business per pianificare le quantità prodotte e le date è la strategia di

pianificazione.
 
A wide range of production planning strategies are available in the SAP R/3 System, offering a
large number of different options ranging from pure make-to-order production [Page 93] to make-
to-stock production [Page 10].  
 
The planning  strategies  available for a  material  are  listed  in  Customizing. You can assign  a planning  strategy  to
a material in the material master record, by  means  of
a strategy group.  Different  requirements  types  are  defined  for  each  of
the  strategies  and  each  requirements  type  contains  important  control  parameters.   
 
 
Quando scegliere una strategia make to stock:
1. Quando il materiale non è assegnato solo ad uno specifico ordine di vendita
2. Quando i costi devono essere tracciati a livello di materiale e non a livello di ordine di
vendita

You should always use make-to-stock production if you produce
stock independently of orders because you want to provide your customers immediately with goo
ds from that stock later on.  
 
This does not mean that you have unreasonably high
stock levels. You can avoid them by doing one of the following:  
 Create a production plan in advance (in Demand Management)
to plan your stock. If you make use of this option, you may also want to
decide whether sales orders exceeding your plan are to affect production or not.  
 Receive sales orders relatively early on (using scheduling agreements,
for example).  
 

Planning with Final Assembly (40) Purpose  

This strategy is probably the most widely used make-to-stock strategy. It makes sense to
use this planning strategy if you can forecast production quantities for the final product.  
 1. Planned independent requirements are consumed by incoming sales orders so that 
the
master plan is always adjusted to suit the current requirements situation. This means th
at the important feature of this planning strategy is that you can react quickly to custo
mers’ requirements. The smoothing of the master plan is less important.  
For a detailed example of the entire process, see Sample Scenario: Strategy 40 [Page 15].  
Planned independent requirements are entered at finished product level and trigger
the procurement and production of
the necessary assemblies and components before receipt of the sales orders.  
It is possible to use information from the sales forecast, the Sales Information System,
or other planning tools to plan production quantities.  
2. As soon as the
sales order is received, it consumes the planned independent requirements. You can th
en compare the planned independent requirements situation with
the actual customer requirements situation.  
3. An accurate availability check is performed according to ATP (available to
promise) logic during sales order processing.
The system checks whether sufficient planned independent requirements have been pl
anned to cover the sales order.  
4. Requirements from the sales orders are passed on to production and
can lead to changes made to procurement if the requirements from the
sales orders exceed the planned independent requirement quantities. If there is insuffic
ient coverage of components (the
sales order quantities exceed the planned independent requirement quantities), the
sales orders cannot be confirmed. The system therefore automatically adjusts the
master plan. For more information see Coping with Insufficient Coverage of
Components [Page
18]. Planned independent requirement quantities that are left unconsumed increase th
e warehouse stock of the finished product.

BILL OF MATERIAL
Le Bom vengono usate in svariati campi della supply chain:
 vendite
 ingegneria
 produzione
 pianificazione
 calcolo costi

BOM USAGE

A BOM usage controls the activities and functions that the system can perform in business
processes. You can also have a separate BOM usage for long-term planning (LTP) to simulate the
materials and capacity requirements for a given business sce- nario. To create a new BOM usage,
follow the configuration menu path, SAP IMG ·Pro- duction • Basic Data • General Data • BOM
Usage • Define BOM Usages, or use
Transaction OS20.

Allowed Material Types in the Bill of Materials Header

TIPI MATERIALI CHE POSSONO AVERE UNA BOM

You can control the material types that the system allows for creation of a material BOM. For
example, you normally don't create a material BOM for spare parts or con- sumable material
types.

AP IMG ·Production· Basic Data· Bill of Material· General Data· Define Material Types Allowed for
BOM Header, or use Transaction OS24.
BOM STATUS

This status enables the production team to begin producing the mate- rial. When the BOM has a
Production status, it becomes available during the produc- tion order creation, whereas when its
status is either Engineering/Design or Costing, it isn't available in production order creation

To create or set the BOM status, follow the configuration menu path, SAP IMG • Pro- duction •
Basic Data •General Data •Define BOM Status, or use Transaction 0523

Bill of Material with History Requirement

You can control whether changes made to the material BOM are with reference to a change
number or engineering change management (ECM).

SAP IMG • Production • Basic Data • General Data • Configure History Requirement for BOMs, or
use Transaction OS25.

Item Category in Bill of Material

The item category provides further divisions to the different BOM classes. While some item
categories are relevant for production or for planning, others are merely to provide information.

L: Stockitem Stock items contain components that you store in your warehouse and include as a
part of inventory management (IM).

N: Nonstock item A nonstock item is a material that isn't available in stock but is procured directly
for the given production order. A nonstock item has direct relation to the procurement
process. There is also no need to have a material master (item code) for nonstock material. If you
use nonstock material, you also have to fill in the procurement details, such as cost element,
purchasing group, material group, and price.

R: Variable-size item
In this item category, you can use the formula and also define the sizes ofthe variables to enable
the system to perform calculations and suggest the component's quantity.

T:Textitem
The text item has a descriptive character.
M : Intra material
This item category is commonly used in master recipes (process industry). Materi- als that are
temporarily used in process engineering are recorded as components
with this item category.

Bill of Material Explosion Types – check in SAP

You can control how the system takes a specific component's explosion into account in the Basic
Data view of the BOM creation screen. You can control whether direct production, a phantom
assembly, or even LTP is deactivated.

SAP IMG ·Production· Basic Data · Item Data· Define Explosion Types.

Bill of Material Selection (Order of Priority)

You can control how the system makes an automatic selection of a BOM to incorpo- rate it, for
example, in a planned order during an MRP run. For example, during the MRP run, if the system is
unable to find a material's BOM for production (BOM usage 1), then you can define the next BOM
selection priority as universal {BOM usage 3).

AP IMG • Production • Basic Data • Bill of Material ·Alternative Determination • Define Order of
Priority for BOM Usages, or use Transaction OS31.

WORK CENTER  

A work center is a machine or a group of machines, a person or a group of persons, or a group of

persons and machines that adds value to the manufacturing process.

Work center category

A work center category is a control function that ensures which master data applica- tions and
business processes ofdiscrete manufacturing you can use the work center in.

To create a work center category, follow the configuration menu path, SAP IMG ·Pro- duction •
Basic Data ·Work Center · General Data · Define Work Center Category, or use Transaction OP40

Select the work center category 0001 used in discrete manu- facturing, and double-click on the
Application folder. You can see the available appli-
cations in the resulting screen in Figure 3.6 for Cat. (category) 0001.
Field Selection in the Work Center

To define field selection in a work center, follow the configuration menu path, SAP IMG
·Production· Basic Data• Work Center· Genera l Data• Define Field Selection, or use Transaction
OPFA. Figure 3.7 shows that the Screen group Basic data has several modifiable fields, such as
Backflush or Person Responsi ble.

Formulas for the Work Center

The system uses previously defined parameters to define formulas, which you can then use in CRP
or scheduling. You can use parameters such as the following:
 SAP_08 Basequantity
 SAP_09 Operation quantity
 SAP_11 Number of operation splits
A formula definition also holds the control for the following applications:

• CRP
• Scheduling
• Costing

To define the formula parameter, if it's different from the ones already available, use the
configuration menu path, SAP IMG •Production• Basic Data • Work Center• Cost- ing ·Work
Center Formulas • Define Formula Parameters for Work Centers, or use

Transaction OP51

To define the formula that you can use in the work center for costing, CRP. and sched- uling,
follow the configuration menu path, SAP IMG ·Production ·Basic Data ·Work Center • Costing•
Work Center Formulas• Define Formula for Work Centers, or use
Transaction OP54.

In Figure 3.9, notice the formulas for calculating the production processing duration.
The system calculates the capacity requirement as the following: Capacity requirement =Standard
value x Order quantity+ Base quantity
You can reduce the processing duration ifthe operation is processed simultaneously at several
work centers per the follovving formula:
Duration=Standardvaluex Orderquantity+Basequantity+Numberofsplits
In Chapter 6, you'll assign these formulas to scheduling, capacities, and costing views of the work
center.

In Figure 3.9, notice the formulas for calculating the production processing duration.
The system calculates the capacity requirement as the following: Capacity requirement =Standard
value x Order quantity+ Base quantity
You can reduce the processing duration if the operation is processed simultaneously at several
work centers per the following formula:
Duration=Standardvaluex Orderquantity+Basequantity+Numberofsplits
In Chapter 6, you'll assign these formulas to scheduling, capacities, and costing views of the work
center.

Standard Value Key – da provare in sap

During the course of an SAP implementation project, one of the main areas where the production
and the product costing teams collaborate is in defining the standard value key (SVK), which
consists of individual parameters that are then grouped together as one SVK. You assign the SVK in
the Basic Data view ofthe workcenterand also enter the formula that the system will use for each
ofthe parameters. The follow- ing sequence of steps is used to define an SVK:
1. Define the parameters.
2. Assign the parameters to the SVK.
 3. Create a formula for the work center.
4. Assignaformulaagainsteachparameter.

To define a parameter, use configuration menu path, SAP IMG • Production • Basic Data · Work
Center· General Data· Standard Value · Define Parameters

Next, to create the SVK, follow the configuration menu path, SAP IMG •Production • Basic Data·
Work Center· General Data· Standard Value· Define Standard Value Key,
or use Transaction OP19 (or Transaction OPCM).

Make sure to select the Generate checkbox when defining SVK because then the system
automatically performs the calculations defined in the formulas. If not selected, then it does the
calculation for scheduling and capacity planning during production order creation, which often
leads to system perfor· mance issues.

Location Groups

A location group consists of a physical location where each work center is located. You can
combine several work centers into one location group if they are in close proximity to one
another. You can use the move time matrix to provide standardized values to different transitions
times (also known as interoperation times), such as queue time. wait time, and move time. If you
don't use the move time matrix, then you have to maintain this transition's time information
either in the work center or
in the routing.
You assign the location group to the work center, and, in the move time matrix, you define the
normal and minimum move times between locations. The system uses the working times that you
maintain in the move time matrix for scheduling the
move times. Basically, you're performing two steps:
 Maintain the location groups.
 Maintain the matrix of move times from one location group to another.
To set up location groups, follow the configuration menu path, SAP IMG • Production• Basic Data
•Work Center· Genera l Data • Define Move Time Matrix, or use Transac-
tion OP30 (or Transaction OPJR).
Control Key for Operations

A control key acts as a central function to control which actions a user or system can or can't
perform on a specific work center. You have to select the relevant checkboxes and make the
relevant settings in the control key.

To create a new control key, follow configuration menu path, SAP IMG •Production• Basic Data •
Work Center • Routing Data • Define Control Key, or use Transaction
OPOO (see Figure 3.16).

Routing

A routing is a set of operations that the material will undergo during the entire pro- duction
process at relevant work centers.

Most of the important parameters for routing selection are made in the order type- dependent
parameters

To set up the routing parameters, follow the configuration menu path, SAP IMG •Pro- duction·
Basic Data· Routing· Routing Selection· Select Automatically,

ID
Combines all of the different priorities listed in the next column, SP.
SP
Lists the sequence in which the system '"'ill look for relevant routing during pro- duction order
creation. In other words, it's the priority setting for routing selec- tion.
Task List Type
Refers to the task list type that the system will consider, such as Nfor routing, Rfor
rate routing,and Sfor reference operation set.
Plan Usage
Controls whether the routing is only used for production or is available for inspec-
tion plan usage too. The value 3 denotes that this routing will be available for all types of usages.
Description
The description that appears after you select relevant usage from the Plan Usage field .
Status
Denotes the status that the system should look for in a routing or in a reference
operation set and, if found, incorporate in the production order.
Description of the status
The description that appears after you select relevant usage from the Description ofthe status
field.

Production Order Configuration

SAP PP Scheduling

SAP PP Scheduling

Welcome to the tutorial about scheduling in SAP PP. This tutorial is part of free SAP PP course. SAP
PP scheduling is used to calculate start date/start time and end date/end time for a production
order or operation. Here you will learn about scheduling production operations in SAP ERP.

There are two methods of scheduling in SAP and especially in production planning.

Basic dates scheduling. Basic dates scheduling is calculated by considering the values like goods
receipt (GR) processing time, in-house production time and planned delivery time from material
master (MRP 2 view). It calculates basic start date and basic finish date for an order.
Lead time scheduling.

Lead time scheduling takes value from routing operation times (setup, machine, labor, etc.) to
calculate operation start date, start time, finish date and time.
SAP PP Scheduling Types

There are different scheduling types commonly used in Production Planning and especially in
production orders.

Forward scheduling
Backward scheduling
Today scheduling
Only capacity requirements
In forward scheduling, SAP system schedules the order based on basic start date and determines
the schedule end dates.

In backward scheduling, SAP system schedules the order based on basic end date and try to
determine schedule start date.

In today scheduling, SAP system calculates schedule end date by considering schedule start date
as current date.

In only capacity requirements scheduling, basic dates are copied as schedule dates. Operations will
not be scheduled.

Basic Dates vs Schedule Dates

Basic finish dates are calculated based on requirement date (demand). SAP system adds lead times
(GR processing time, in-house production time, etc.) defined in MRP 2 view to that to determine
basic start date.

It also adds opening period defined in scheduling margin key (MRP 2 view). Opening period is the
number of days required for a planner to convert a planned order to a production order.

Production start date/time and finish date/times are calculated by scheduling individual
operations defined in routing. Then, schedule start and finish dates are calculated by adding floats
(defined in scheduling margin key) to the production start dates.
Control Key in SAP PP Scheduling

Control key decides that whether an operation needs to be scheduled or not. If scheduling
indicator is activated in the control key, SAP system will schedule the operation. Otherwise, it will
not.
SAP PP Scheduling Components

When system schedule an operation, it uses the following parameters from master data.

Operation times and base quantity from routing.

Formula for scheduling from work center.
Inter-operation timings from routing or work center.
Break time and shift sequences.
Operation Time in Routing

In routing, each operation contains setup, machine and labor hours required to produce the base
quantity. SAP system uses this information to calculate the total time required for that operation.

Let’s say that in routing we have entered machine time 120 mins for the base quantity of 500 PC.
When an order for the quantity of 1200 PC is created, SAP system will calculate the total time
required for this operation as follows.

Total time required for 1200 PC = (120 / 500) * 1200 = 0.24 * 1200 = 288 minutes

Formula for Scheduling Time

This calculation is maintained inside the scheduling formula in a work center.

Operation time = (Machine time * Operation quantity /Base quantity) /Operation split

Here, operation split is defined in routing where in this example it is ‘1’.

Inter-Operation Time

Inter-operation time is time between operations in the work centers. In SAP, there are 3 inter-
operation times available.

Queue time. Queue time is time required before processing the material in a work center.
Wait time. Wait time is the time material must be kept after processing in a work center.
Move time. Move time is the time required to move the material from one work center to another
after processing.
Let’s consider this example from the fastener industry which deals with manufacturing bolts and
nuts. We will consider only the final stage of operation when after bolts are produced they will be
painted and packed. Let’s say before painting previous batches are in queue for 10 mins (queue
time) due to shorter duration of preceding operation and longer duration of painting operation.
After painting, this material must wait for 15 mins (wait time) for drying. Then, it will be moved to
packing location using trolley which takes 10 mins (move time).

Break Time and Shift Time

SAP system will calculate break time from work center master data. If any shift sequences are
defined in the work center, SAP system takes break time in shift break entered in the shift
sequences. Else, it will take the total break time entered in the capacity header.

Break time entered in the capacity header is the total break hours between start and finish time
(refer to the screenshot below). Here, a total of 1 hour of break time is from 07 AM to midnight
(available capacity = 17 hours). If your operation time for an order is 8 hours, SAP system will
calculate break time as following:

Break time for 8 hours = 1/17 * 8 = 0.47 hours

Shift sequences are entered with exact break hours which will be considered for scheduling and
capacity calculations. These shift sequences will be assigned to a work center.

Reduction Strategy in Scheduling

When SAP system tries to schedule an operation, it first tries to schedule it within the basic dates.
When schedule start date falls before basic dates, it tries to adjust the dates by reducing the inter-
operation timings except wait time. From the example discussed above, we can reduce the queue
time and move time but cannot reduce the wait time. Because painted bolts must wait for 15 mins
in order to get dry.
We can maintain standard and minimum queue time in work center and routing. SAP system will
first consider standard queue time but if scheduling dates falls before or after basic dates, it will
take minimum queue time.

If after considering minimum time SAP system finds that dates are not within the basic dates, it
will apply reduction strategy defined in routing operation.

SAP system will apply reduction step by step for each of reduction levels.

Try to reduce 50% of the queue time.

Try to reduce 100% of queue time and move time.
Try to reduce 100% queue and move times and try to apply operation overlap defined in routing
operations.
Try to reduce 100% queue and move times and try to apply operation overlap and operation split
defined in routing operations.
Here, operation overlap and splits will reduce the lead time of the operation.

Factory Calendar in Work Center

When system schedule an operation or production order, it considers factory calendar from the
plant and excludes the non-working days and holidays. When there is a business scenario where
the production calendar is different from the plant calendar, we can assign a production specific
calendar in a work center. So that at the time of scheduling SAP system considers working days
from the work center instead of the plant calendar.

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback
in the comments section below. It’d be a big help for us, and hopefully it’s something we can
address for you in improvement of our free SAP PP tutorials.

PARAMETRI CONFERMA

https://wiki.scn.sap.com/wiki/display/ERPMan/Time+event+confirmation

CO19 time event (Using CO19,we can track the or post the exact or actual setup start time,setup
end time,processing start time,end time for each )
Co15 – conferma ordine
CO11 – time ticket (confermo operazione)

TRIGGER POINT
https://erproof.com/pp/sap-pp-training/sap-trigger-points/
Con il trigger point che viene inserito all’interno del routing, si riesce nel caso in cui nella conferma
inserisca l’obbligo di sequenzialità delle operazioni, a rilasciare l’operazione successiva solo nel
caso in cui confermi la precedente.

COME FUNZIONA RECORD CONDIZIONI ETC. Esempio schema prezzi PO:

Condition table: Sono I campi che selezionano il mio record condizioni. Ad esempio, se ho definito
una nuova tabella condizioni, per cui sono rilevanti i campi materiale, gruppo materiale e plant,
allora definirò il nuovo record condizioni sotto una determinata combinazione materiale, mat.
Group e plant.

Access sequence: Sarebbe la strategia con cui faccio la ricerca del record condizioni. Ovvero quali
campi devo considerare per quel tipo di condizione. Infatti la sequenza di accesso che a sua volta
legheremo al tipo condizione, contiene il legame con la condition table.

Condition type: Ad esempio il prezzo PB00, il tipo condizione ha il legame con la sequenza di
acesso. In base al valore di sequenza di accesso, il sistema saprà dove cercare la condizione.
Condition record: Valore numerico del prezzo

Schema group: Dato anagrafica che consente di legare al mio vendor e alla mia org. Acquisti un
determinato procedimento di calcolo del prezzo.

Calculation schema: La sequenza per il calcolo dei prezzi. Ad esempio lo sconto viene applicato sul
netto o dopo le tasse?

Schema determination: Contiene il legame tra org. Acquisti, schema group e calculation schema.
Here we maintain the pricing procedure for purchasing document. We maintain calculation
schema combination of per each vendor – schema group and each purchase organization –
schema group.

https://blogs.sap.com/2013/11/27/pricing-procedure-details-and-steps-in-sap-mm/

Batch determination:

Condition table: Sono I campi che selezionano il mio record condizioni. Ad esempio, se ho definito
una nuova tabella condizioni, per cui sono rilevanti i campi materiale, gruppo materiale e plant,
allora definirò il nuovo record condizioni sotto una determinata combinazione materiale, mat.
Group e plant.

Access sequence: Per ogni tipo di strategia di ricerca del batch esiste una sequenza di accesso. La
sequenza di accesso consente alla tipologia di strategia di fare l’accesso alle tabelle condizioni in
modo sequenziale.

Strategy type: Sono legate alla transazione, in questo modo si può legare la batch determination
dipedente dal tipo movimento o dal plant.

Batch search strategy: definisce le regole per la batch determination. Si stabiliscono le condizioni
per cui deve scattare la batch determination e i criteri di ricerca.

Assign batch procedure to business transaction

Selection classes: la classe deve includere almeno una caratteristica della classe del materiale
gestito a batch in modo da usarla come criterio di selezione – ordinamento (sort rule)
The purpose of this document is to explain the basics of MRP area, steps involved in activating MRP area
and to use it in different possible ways.

As we know MRP runs at plant level (centralized), but as per business need we may have to plan MRP for
individual & independent planning areas (decentralized). This can be achieved by activating MRP areas.
These MRP areas are fully configurable organizational units within ECC where MRP can be run individually.
So we can broadly classify running MRP in 2 major ways.
  MRP at plant level: The system adds together stocks from all of the individual storage locations
to determine total plant stock. The requirements are combined in the planning run and procurement
elements are created for these pegged requirements with unknown sources. Individual storage
locations can be planned separately or be excluded from planning.

Illustration:

 MRP area level: Only the stocks from the storage locations or subcontractor assigned to the
respective MRP area are taken into account. The requirements in this particular MRP area are
 combined and procurement elements are created for them. This enables us to plan material
requirements specifically for certain areas (MRP areas).

Illustration:

You can define MRP areas within a plant and carry out MRP specifically for that particular area, for
example in above illustration, for MRP area M0001 can be planned independently without running MRP
for plant FP01.

In each MRP area you can control staging and procurement of parts that are produced in house or
externally. All MRP procedures are supported by MRP areas and one can display the result of MRP run
for each MRP area.

MRP Area (definition):

As per SAP, “MRP Area represents an organizational unit for which material requirements planning is
carried out independently”

MRP Area is functionality for special planning process that enables you to carry out planning not only at
plant level but also at different planning levels (eg, storage location & sub-contractors). There are 3
types of MRP areas in SAP

 Plant MRP Area

 MRP Areas for storage location 
 MRP Areas for Subcontractors
Plant MRP area:

MRP area can be created at plant level. On doing so, system combines all its storage locations and stock
with subcontractors under that MRP area. When you define MRP areas for storage locations and for
subcontractors and assign material to newly created MRP areas with in plant then the plant MRP area gets
reduced by exactly the numbers of subcontractors and storage locations. This is because they will now be
planned separately in new MRP areas.

MRP area for storage location:

MRP area can also be defined for storage location or multiple storage locations. Material requirements for
this storage location are then planned separately from the rest of the plant. Important point to note here is
that you can assign 1 storage location to only 1 MRP area but you can have multiple storage locations under
single MRP area. It’s a N to 1 relationship.

MRP Areas for Subcontractors:

You can also define an MRP area for each subcontractor. Important point to note here is that a subcontractor
can be assigned to only one MRP area in a plant. An MRP area of the subcontractor type can only contain
one subcontractor. It’s a 1 to 1 relationship.

How to setup MRP area in SAP

There are 2 aspects of setting up MRP area. First one is to activate it in customizing and second part it
to set up master data (i.e. adding materials to that particular MRP area in material master).

MRP with MRP area is not operational until you assign MRP area to a particular material in material
master or in order words create a MRP area segment. If you have not assigned a material to an MRP
area, that is, you have not created an MRP area segment in the material master, the material will
continue to be planned in the plant MRP area only.

Step 1 – Converting Planning file entries

Path: SPRO > Production > Material Requirement Planning > Master Data > MRP
Areas > Convert Planning file entries for MRP areas – OM0F or SE38 program
RMDBVM00
When we convert planning file entries for MRP area, system creates plant MRP area for each plant.
Following entries from below tables are converted. Planning file entries are maintained in MRP file which are
converted to MRP area file in below tables.

Planning file entries in MDVM are converted to DBVM

Planning file entries in MDVL are converted to DBVL

Planning file entries in KDVM are converted to KBVM

Planning file entries in KDVL are converted to KBVL

If you are running converting planning files for the first time then system will automatically create plant
MRP areas. These new entries can be seen in OMIZ under plant MRP area with area type “01”.

IMP note: After the conversion, contents of MDVM/MDVL/ KDVM/KDVL are deleted and entries are
created in DBVM/ DBVL/ KBVM/ KBVL.

Step 2 – Define MRP area in SPRO – OMIZ

Path: SPRO > Production > Material Requirement Planning > Master Data > MRP
Areas > Define MRP areas

MRP area has 3 types (01, 02 & 03) and system will allow you to have MRP areas in below types only (Plant,
Storage location or Sub Contractor)

Plant MRP area should have same name as plant so you can have only one entry for plant MRP area.
For example plant 1000 will have plant MRP area as 1000.

In order to maintain consistency and uniformity, only MRP areas of the type ‘plant’ are allowed to have
1-4 digits key. Sloc MRP area should have minimum of 5 digits. Example M0001 etc…

You can only have 1 sub-contractor vendor assigned to 1 MRP area. Multiple vendors cannot be
grouped together in a single MRP area.

You can have multiple storage locations combined together in a single MRP area.

You can only one entry for plant in plant MRP area. Multiple plants cannot be grouped together in a
single MRP area.
Once MRP area is defined, next step is to Activate MTP area

Step 3 – Activating MRP Areas – OM01

Path: SPRO > Production > Material Requirement Planning > Master Data > MRP
Areas > Activate MRP for MRP areas

NOTE: MRP areas are activated at client level. Once you activate it, it will be available for all plants and MRP
areas features would be available to use.

This sums up setting up MRP area configuration in SAP customizing.

You can find following changes due to activation of MRP area. These are just few for example

MD61 – PlR creation

MRP

Material Master
Stock Requirement list

Step 4: Master data for MRP area

The material will not be considered in MRP area planning until it’s extended to MRP area.  Following steps
shows how to extend a material in MRP area. You can extend a material to multiple MRP areas based on the
need.

Go to change material master under MRP 1 screen and assign MRP area as shown below:

You will have additional views for MRP 1, MRP 2, Forecast & Consumption values. You need to fill required
fields as per your need.
When you assign a material to a new MRP area, a new record for this assignment gets added in the
planning file. You have an option to define individual MRP and forecast parameters for each MRP
area that you assign to a material. These parameters can differ from those defined in the material
master at plant level. As an example, you can have different MRP controllers, lot size or MRP type for
each individual MRP areas that is assigned to a material.

Users can set up different forecast model and consumption values in MAR area tabs. Once MRP with
MRP area is activated, ATP check is also activated at MRP area level.

Scope of planning with MRP area

You can create scope of planning run if you want to carry out total planning for limited MRP areas. In
case you do not give any MRP area in total planning run, system will consider all MRP areas under a
plant and plan for them in total planning.
For single item planning system, in MD02 & MD03 system plans a material only in the specified MRP
area.

Sample Scenario:

Let’s consider a material Assembly maintained in plant ZSY1 under 2 storage locations (ZSY3 & ZSY4)

Sloc ZSY3 maintained in MRP area MA001. Assembly is extended to MA001 with following stock situation

ZSY3 – 100 (under storage location MRP area MA001)

ZSY4 – 150 (under Plant MRP area ZSY1)

Lot size for same material is maintained as FX (fixed lot size) in MA001 MRP area and EX in plant MRP area
ZSY1
Total stock MMBE
MD04 – MRP Area ZSY1

MD04 – MRP Area MA001

Let’s have requirement from a Sales order for plant ZSY1, it will come under plant MRP area ZSY1

For testing, we can also have PIR created for specific MRP area MA001

Here is the stock situation of MD04 with sales order in Plant MRP area

Stock requirement for MRP area MA001:

If we run MD02 for plant ZSY1, system will only consider plant MRP area and will not plan for MRP
area MA001 as it’s a separate planning area

MRP area MA001 is untouched:

After running MRP for MA001 system creates planned order for 200 quantities

Material Assembly was maintained as EX lot size in plant MRP area and with fixed lot size 200 in
MA001 hence planned order of 200 Qty created in MA001. In this way separate planning parameters
can be maintained to run requirement planning using MRP areas.

Con questo posso rendere storage location non pianificata

Production > Basic Data > Material Requirement Planning > Planning > Define Storage Location MRP per
Plant (OMIR)

ESCLUDERE STORAGE LOCATION

Sumit Yeole
Posted on19/07/2017 alla 16: 33 
0 

Hello ,

Here we got solution for excluding storage location from MRP in S4 HANA 1610
Create one MRP Area in OMIZ with naming exclude mrp area, assign all storage location which is need to be
excluded from mrp.

and assign that MRP Area in material master of MRP 1 view and maintain Planning parameters ND for that MRP
Area.Now in MRP Run system not considering that storage location

Regards,

Sumit

Introduction

This blog post provides insights about MRP Areas concept in SAP S/4 HANA 1809, there have been many
conversations about MRP Areas being the new way for Planning. It also provides you detailed information about
Planning at MRP Area level in 1809 i.e. how this works with Storage Locations & Subcontracting Vendors in
comparison to ECC & the addition of new Intra-Plant View and Cross Plant view in MD04

SAP Solution
SAP ECC – Storage Location MRP:
Storage locations can be excluded from MRP or they can be planned separately from other storage locations. In
the latter case, where storage locations are excluded from MRP, a reorder point procedure with maximum lot size
is used to trigger transport reservations to fill up the storage location. Stocks at storage location level can be
viewed in MD04:

Configuration:

Transaction: OMIR

MRP Areas in SAP 1809

MD04 Requirement & Stocks visibility at SLoc Level:
This functionality is not available in SAP S/4 HANA 1809 for planning stocks at storage location level without
using the concept of MRP areas

SAP S/4 HANA 1809 MRP Area at Storage Location level:

MRP areas cover the same business requirements. When we assign MRP Areas in material, we need to mention
MRP Type as ‘ND’ for scenarios where we need to exclude a storage location in ECC. Materials with the MRP
area specific MRP type ‘VB’ (reorder point planning) can be used instead of materials with separately planned
storage locations. The storage location functionality is a subset of the MRP areas capabilities.

We need to define MRP areas storage location wise and then maintain the data in Material Master to plan and
view stocks at storage location level

Configuration:

Transaction: OMIZ

Define the MRP area in a plant and assign a storage location to it

In the Material Master we need to Assign the MRP area

Then the stock visibility is also separated at Storage Location Level in MD04
SAP ECC – Stock at SubCon Vendor
In MRP 2 we maintain special procurement key as 30
MD04 Requirement & Stocks visibility when the Stock is Issued to the Subcontracting Vendor:
Comparatively in SAP S/4 HANA 1809 we do not have stock visibility at Vendor for Sub Con, the best way to
achieve this is at MRP Area level.

SAP S/4 HANA 1809 MRP Area at Subcontracting Vendor Level:

When we want to separate the stock based on the stock issued to the subcon vendor we need to use MRP area at
SubCon vendor level, if not then the system would consider the stock provided to vendor as unrestricted stock.
The systems uses this stock to cover all requirements in net requirements segment instead of using it only for the
requirements of components to be provided to SubCon Vendor

A subcontracting MRP area should be created for every subcontractor so that once the stock is issued to the
vendor it should not be considered as unrestricted stock in the plant. Also, any requirement for issuing the stock
will be shown under the segment of that particular vendor

Configuration:

Transaction Code: OMIZ

Define the MRP area in a plant and assign a vendor to it

Then the stock visibility at Vendor end is available in MD04 also this stock will not be assigned to any other
requirement
Mass maintenance of MRP Areas in Material Master:

Mass processing reports RMMDDIBE can be used for maintenance of MRP areas.

SAP S/4 HANA 1809 Intra Plant & Cross Plant View in MD04
The new Intra-Plant view was introduced in the Stock/Requirements List (transaction MD04), allowing the MRP
Controller to have a complete overview of the Stock/Requirements situation, visualizing the multiple MRP areas
for a material in the same screen.

In the new Intra-Plant View, there are a new set of buttons that will allow the MRP Controller to choose the best
way to visualize the multiple MRP areas and quickly switch between different views. The figure below shows
multiple storage location MRP areas assigned to the same material with a look and feel very similar to the old
storage location planned separately.
Configuration to activate this new feature:

Conclusion

In SAP S/4 HANA 1809 we can plan on the basis of MRP area which are defined at Storage Locations and
SubCon Vendor Level & with the new Intra Plant and Cross Plant view it can be viewed easily in just one screen

SAP S/4HANA vs ECC MRP Essential Changes

SAP introduced new changes to MRP (Material Requirement Planning) in SAP S/4HANA. I would like to present
the major changes SAP S/4HANA vs ECC MRP.
The following items are the main impact in S/4HANA MRP.

MRP in S/4HANA – Storage location MRP

In SAP ERP, storage locations can be excluded from MRP planning, or they can be planned separately from other
storage locations.

As MRP area covers the very same business requirements, the solution location functionality is a subset of the
MRP area’s capabilities. Materials with MRP area-specific MRP type ND – no MRP can be used instead of
materials with a storage location excluded for MRP.

In SAP S/4HANA, the master data maintenance has been simplified, and modeling alternatives for similar
functions of the MRP planning on storage location level have been reduced.

The SAP S/4HANA MRP only plans on plant and MRP area level. Planning on storage location level is not
available in SAP S/4HANA.
MRP in SAP S/4HANA – MRP Area

SAP ERP, you need to activate the MRP areas in customizing for MRP transaction OM01. SAP S/4HANA
systems, MRP area is active by default and cannot be deactivated.

PP-MRP subcontracting, the master data maintenance has been simplified in SAP S/4HANA. The planning logic
and evaluation process for the procurement of the subcontracting component is simplified in SAP S/4HANA. By
using the subcontracting MRP area, SAP S/4HANA provides separated planning of every subcontractor, without
having to create MRP area/supplier-specific material master data.

Basically, there are three types of MRP area in SAP S/4HANA.

1. Plant MRP area contains a whole plant. MRP area for storage locations.
2. MRP area for storage locations consists of a particular storage location. Material requirements
for this storage location are then planned separately from the plant.
3. MRP areas for vendor created for subcontractor vendor. In the case of SAP S/4HANA
system, it is recommended to create subcontracting MRP areas for every subcontractor.

MRP in SAP S/4HANA – Simplified Sourcing

In material requirements planning, the SAP S/4HANA system calculates material shortages, then the lot size, and
then it determines the sourcing of supply. The sourcing determines whether the required
quantity is manufactured or purchased, and if purchased, from which supplier.

In SAP ERP, the sourcing logic is defined at different places with an asymmetrical definition for purchasing and
manufacturing. The basic idea of this simplification is a reduced set of possible sources of supply with a clear and
symmetrical definition that does not require any additional settings in the material master or in the customizing.

In addition, quote arrangements are always considered if they exist.

SAP S/4HANA supports the following types of sources of supply. If the material is manufactured, production
versions are the only valid source of supply. If the material is purchased, delivery schedules, purchasing contracts,
and purchasing for records are valid sources of supply, even without using source list records. If you want MRP to
source a purchase requisition from a certain supplier, you no longer have to define a source list entry.

It is sufficient to set the indicator relevant for automatic sourcing in the purchasing info records. If sourcing
determines several valid sources of supply for the same material, plant, quantity, and date, but does not find any
quote arrangements, then it prefers production versions over delivery schedules, delivery schedules over
purchasing contracts and purchasing contracts over purchasing for records.

MRP in SAP S/4HANA – Production Version

In SAP S/4HANA for manufacturing, the production versions are the only valid source of supply. So, the
production versions are mandatory in SAP S/4HANA.

MRP planned order creation and production order creation only find a bill of material and routing
alternatives, if the production version is maintained for them. The mandatory production versions make MRP
sourcing simpler, as there are only the options to determine bill of material and routing alternatives for a
manufactured material.

These production versions are already mandatory in PP/DS, and PP/DS as part of the SAP
S/4HANA product. The production versions make sourcing MRP and PP/DS more similar.

I would very much appreciate your comments and suggestions.

Best Regards,

Lingaiah
https://blogs.sap.com/2019/09/25/mrp-areas-in-sap-1809/
https://blogs.sap.com/2020/01/31/step-by-step-process-for-storage-location-mrp-in-s4-hana-
migration/
https://blogs.sap.com/2018/10/27/sap-s4hana-vs-ecc-mrp-essential-changes/
https://blogs.sap.com/2019/02/22/mass-mrp-area-assignment-in-material-master-sap-s4-hana-
1709/
https://blogs.sap.com/2015/07/01/basics-of-mrp-area/

cdp
https://help.sap.com/viewer/2b37de3188714044ae00efda7583a428/1809.000/en-
US/4c5b872f980a7514e10000000a42189b.html
https://blogs.sap.com/2019/09/24/an-use-case-of-characteristic-dependent-planning-cdp-in-
ppds-for-sap-s4hana-in-the-automotive-pre-series-business/
https://help.sap.com/erp_hcm_ias2_2015_02/helpdata/en/c1/62b6531de6b64ce10000000a174c
b4/content.htm?no_cache=true

https://blogs.sap.com/2015/05/29/storage-location-mrp/