Sop LTP

SAP ECC 6.
0 EhP3
English
Logistics Planning
Business Process Documentation
Contents
1 Purpose ...........................................................................................................................................3
2 Prerequisites.....................................................................................................................................3
2.1 Master Data and Organizational Data........................................................................................3
2.2 Business Conditions ..................................................................................................................4
3 Process Overview Table...................................................................................................................5
4 Business Processes.........................................................................................................................7
4.1 Sales and Operation Planning....................................................................................................7
4.1.1 Demand Verification (Checking Sales Plan)........................................................................7
4.1.2 Creating Rough-Cut Production Plan...................................................................................8
4.1.3 Transferring Rough-Cut Production Plan to Inactive Demand Management.......................9
4.2 Long Term Planning.................................................................................................................11
4.2.1 Creating Long Term Planning Scenario.............................................................................11
5 Follow-Up Processes......................................................................................................................18
5.1 Operational Production Planning and Control..........................................................................18
6 Appendix.........................................................................................................................................19
6.1 Reversal of Process Steps.......................................................................................................19
6.2 SAP ERP Reports ..................................................................................................................19
Page 2 of 19
Logistics Planning
1 Purpose
The purpose of logistics planning is to make sure that future demand can be satisfied by your
company’s available resources and to point out situations where demand cannot be met in time or in
the desired quantities.
This process sometimes is called ‘Sales and Operations Planning’. The process usually takes place
in a simulative mode and at an aggregated (usually product group) level. Once a feasible production
plan is found that satisfies demand it can be used as the basis for operational production planning
(MRP and Detailed Capacity Scheduling).
The Best Practices scenarios in this section cover the following planning workflow:
• Planning/forecasting of future demand
• Aggregated production planning including capacity check in order to check at product group
level if demand can be satisfied (using the SOP functionality)
• Transfer of results to Long Term Planning (using the LTP module) to enable simulation of
material requirements, based on the production plan (s)
• Planning takes place in separate (simulative) planning versions within LTP
• Review and adjustments of planned requirements as needed
• Once the simulated requirements are accepted, the demand (independent requirements) is
then transferred to active demand management for detailed MRP and Production Planning /
Scheduling in the active version.
2 Prerequisites
2.1 Master Data and Organizational Data
A range of indispensable master and organizational data was created in your ERP system in the
implementation phase, such as the data that reflects the organizational structure of your company,
as well as master data that suits its operational focus, for example, master data for materials,
vendors, customers, and so on.
This master data usually consists of standardized SAP Best Practices default values and enables
you to go through the process steps of this scenario.
Note that you can test the scenario with other material, or organizational data for which
you have created master data. To find out how to create master data, refer to the
Master Data Procedures documentation.
Use the following master data in the process steps described in this document:
Page 3 of 19
Master data Value Other Master Data Bus. Condition Comments
Product 00001P00 You have completed all The product
Group 1 steps described in the groups
Business Process corresponds to
Level 1
Procedure Sales Qty the product
Product 00001B00 Budget and Transfer to hierarchies
Group 01000000 SOP (with CO-PA),
01 Revenue Planning (172).
Level 2
Product 00001B00
Group 01000000
02
Level 2
Product 00001B00
Group 01000000
03
Level 2
Plant 1000
(1100)
SOP version 001 Use these
versions in the
demo script
LTP Version 001 Use these
versions in the
demo script
2.2 Business Conditions

The business process described in this Business Process Procedure is part of a bigger chain of
integrated business processes or scenarios. As a consequence, you must have completed the
following processes and fulfilled the following business conditions before you can start going through
this scenario:
Business condition Scenario
You have completed all steps described in the Prerequisite Process Steps
Business Process Procedure Prerequisite Process
Steps (154).
You have completed all steps described in the Sales Qty Budget and Transfer to SOP
Business Process Procedure Sales Qty Budget and (with CO-PA), Revenue Planning
Transfer to SOP (with CO-PA), Revenue Planning
(172). In this scenario, you perform revenue
planning. The result is a sales plan in value and/or
quantity. Usually the sales plan is based on the
sales history and is in quarterly, monthly or weekly
buckets.
Page 4 of 19
3 Process Overview Table
Process step External Business Business Trans- Expected
process condition role action results
reference code
Sales Qty Budget See scenario The sales plan
and Transfer to Sales Qty is created.
SOP (with CO- Budget and
PA), Revenue Transfer to
Planning SOP (with
CO-PA),
Revenue
Planning
(172)
Demand After sales Strategic Sales Plan has

Verification figures have Planner been verified
(Check Sales been
Plan) transferred to
SOP
Create Rough- After Sales Strategic Production Plan
Cut Production plan has Planner created
Plan been
checked
Transfer Rough Production Strategic The Production
Cut Production Plan has Planner Plan from SOP
plan to Inactive been has been
Demand checked transferred to
Management inactive
demand
management
Create Long Before Strategic LTP Planning
Term Planning running Planner scenario is
Scenario simulated created
LTP MRP
Execute LTP Strategic The LTP MRP
MRP Run Planner run is
simulated.
Evaluate Strategic Capacity
Capacity Planner consumption
Requirements updated on
cost center
Activate a You have Strategic Planned
planned evaluated Planner independent
independent and adjusted requirements
requirements the version is
version simulative activated for
planning planning
result scenario
Page 5 of 19
Process step External Business Business Trans- Expected
process condition role action results
reference code
Copy to Demand Strategic MS64 Active version
Management Planner created in
(active version) Demand
Management
Operational See all See all See all See all
Production production production productio production
Planning and scenarios scenarios n scenarios
Control scenarios
Page 6 of 19
4 Business Processes
4.1 Sales and Operation Planning

Sales & Operation Planning (SOP) is the link between sales planning and manufacturing.
It is a forecasting and planning transaction to enable sales, production, inventory targets to be
reached on the basis of historical, existing, and estimated future data. In the process described
below we use SOP
• To verify the sales (demand) plan coming from COPA or other sources
• To create a Rough-cut production plan aimed to satisfy demand and to meet inventory
targets
• To visualize capacity utilization of the critical resources (usually the bottleneck resources) to
verify the feasibility of the plan at an aggregated level.
SOP is particularly suitable for long- and medium-term planning.

In this process, you view the S&OP figures. This is done after sales figures have been transferred
from CO-PA to SOP.
You can visualize the following key figures
• Sales plan
• Production plan
• Projected Stock
4.1.1 Demand Verification (Checking Sales Plan)
Use
In this activity, you check the sales plan at material level. In this scenario it is assumed that the sales
plan has been created at product group level.
Therefore you can disaggregate your sales figures to a material to verify demand at an aggregated
level.
Also the opposite direction is possible (but not shown in this scenario): If your sales plan has been
created at product group level you can disaggregate the plan according to predefined proportional
factors to the material level. In this case it is useful to define the proportional factors according to
historical sales figures to come to realistic forecasts at material level.
Prerequisites
This can be done after sales figures have been transferred to SOP from CO-PA.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
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SAP ECC menu Logistics → Production → SOP → Disaggregation → Break Down
PG Plan
Transaction code
Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role
Business role SAP_AIO_STRATEGICPLANNER-S (Strategic Planner-
Professional User)
Business role menu Strategic Planning → Sales and Operations Planning (SOP) →
Transfer Material Planning Data to Demand Management → More…
→ Disaggregation → Break Down PG plan
2. On the initial screen, make the following entries:

Field name Description User action and values Comment
Product 00001B000100000001 Product group ID
group defined in central
master data BB in
layer 2.
Plant 1000 Production Plant
Inactive Select the button.
version
Version 001 Check which version
has to be used.
3. Choose Inactive version.
4. In the dialog box Product group members, select the materials.
5. In the dialog box Disaggregation, select Create sales plans and Disaggregate sales plan and
choose Enter.
6. If the Check proportions dialog box displays, choose Yes.
7. Choose Save.
Result
You have viewed the S&OP figures on product group level and created the sales plan on material
level based on the sales plan on product group level.
4.1.2 Creating Rough-Cut Production Plan
Use
In this activity, you generate the rough cut production plan based on your sales forecast. For this you
have several options (see below).
Procedure
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SAP ECC menu Logistics → Production → SOP → Disaggregation → Break Down
PG Plan
Transaction code
Business role SAP_AIO_STRATEGICPLANNER-S
(Strategic Planner-Professional User)
Transfer Material Planning Data to Demand Management → More…
→ Disaggregation → Break Down PG plan
You are still in the transaction for Demand verification (see previous chapter) and continue
without leaving it. If you have left the transaction run through step 1 - 5 of this process before
continuing with the next step.
2. From the menu, choose Edit → Create production plan → Synchronous to sales. This will make
production figures equal to sales at product group and material levels.
3. There are some more strategies in Standard SOP for automatically generating a production
plan, which can easily be activated through the menu path:
Edit → Create production plan → <create production plan option>
a. Production quantities are the same as sales quantities in each period ("synchronous to
sales")
b. Production quantities are such that target stock levels are reached
c. Production quantities are such that target days’ supplies are reached
d. Production quantities are such that the stock level at the end of each period is zero.
Result
You have created the production plan on material level based on the sales plan on product group
level.
4.1.3 Transferring Rough-Cut Production Plan to Inactive

Demand Management
Use
In this activity, you transfer the inactive version of the production plan from SOP to Demand
Management where the quantities are posted as planned independent requirements.
For several purposes you can post the production plan at first in an inactive version.
In our scenario we use inactive versions for the following purposes:
Page 9 of 19
• Version 001 for simulation and long term procurement purposes (forecast)
described in this document
• Version 002: for supporting the annual budgeting process (see 173: SOP through Long
Term Planning Transfer to LIS/PIS/Capacity)
Procedure
SAP ECC menu Logistics → Production → SOP → Planning → For Product
Group → Transfer Product Group to Planning
Transaction code
Transfer Product Group Planning Data to Demand Management
2. Make the following entries:

Product group 00001B000100000001
Version 001 Selectable from
dropdown.
Depends on version
used in scenario:
Quarterly Plan -
Sales Quantity
Forecast with CO-
PA (179)
Production plan Selected
for material or
PG member
From date <earliest date of change> Typically first day of
current month
To date <earliest date of change PLUS 18 Eighteen months in
months> the future
Requirements Leave blank
type
Version 01
Active Deselected
Page 10 of 19
Make sure to deselect Active on the initial screen to make sure it is inactive in demand
management. To transfer a single material, use transaction MC74.
3. Choose Transfer now.
Result
The inactive version is transferred to demand management. To display the inactive version for a
single material in Demand Management, use transaction MD63 (or menu path Logistics →
Production → Production Planning → Demand Management → Planned Independent Requirements
→ Display).
4.2 Long Term Planning

Use
In long-term planning, future demand programs are simulated within a planning run. This allows you
to calculate capacity requirements, activity type requirement of the cost centers, and of the
requirement of purchased parts.
The demand programs that can be simulated may include planned independent requirements and/or
sales orders.
You can evaluate and optimize the simulation with regard to material requirements planning,
capacity planning, order volumes, purchasing budget, cost center planning, and inventory
controlling. Following the evaluation of the simulative planning results, you can replace the current
demand program with the preferred version in long-term planning and can continue it there.
You can transfer the data for external procurement to the purchasing information system using a
special report and evaluate it there.
The principle of long-term planning is to simulate different versions of the demand program. The
simulation can take into account operative data (for example, master data, sales orders, purchase
orders, production orders).
The simulation can be used to optimize the demand program and the production and procurement
data with regard to material requirements planning, capacity planning, order volumes, purchasing
budget, cost center planning, and inventory controlling.
Long-term planning can also be executed on the basis of operative master data: BoMs, routings,
work centers, and material masters. This means you do not have to create any new operative data.
4.2.1 Creating Long Term Planning Scenario
Use
For simulation purposes, you set up ‘LTP-Planning scenarios’ which represent ‘planning areas’ you
can use independently from each other.
In this activity, you create the LTP Planning Scenario.
Page 11 of 19
If the LTP planning scenario already exists, use transaction MS32 to make changes.
Procedure
SAP ECC menu Logistics → Production → Production Planning → Long-
Term Planning → Planning scenario → Create
Transaction code
Business role menu Strategic Planning → Long-Term Planning (LTP) → Create Planning
Scenario

Planning 001 <enter a new number
scenario and description>
Always use planning
scenario 001. If the
scenario already
exists please skip this
process step.
Long-term Selected
planning
3. Choose Enter.

From date <current date>
To date <current date PLUS 18 months> Eighteen months in
the future
Dep.reqmts Selected
for reorder
point
materials
Consider Selected
sales orders
Include firm Selected
receipts
Page 12 of 19
purchase
requisitions
planned
orders
5. Choose Planned Independent Requirements.
6. In the dialog box, choose New entry.

Version 01 Inactive version from
demand management
From date <current date>
To date <current date PLUS 18 Eighteen months in
months> the future
8. Choose Confirm.
9. Choose Plants.
10. In the dialog box, choose New entry.

Planning 1000 You can repeat the
plant steps for all planning
plants.
12. Choose Confirm.
13. Choose Release and Save.
14. Choose Enter twice.
Result
The LTP Planning scenario is created. Make a note of the Planning Scenario number here:
_________
4.2.1.1 Executing LTP MRP Run
Use
Page 13 of 19
In this activity, you simulate the execution of the LTP MRP run.
Procedure
SAP ECC menu Logistics → Production → Production Planning → Long-term
Planning → Long-term planning → Planning run → Online
Transaction code
Business role menu Strategic Planning → Long-Term Planning (LTP) → Long-Term
Planning Run

Planning Scenario <from previous step>
Display material list Selected
Scheduling 2 Lead time scheduling
and capacity planning
3. Choose Enter.
4. The system displays the message Please check input parameters.
5. Choose Enter.
6. The system displays the message To start the planning run Choose Enter.
Use transaction MS04 to check the planning results for planning scenario 001, material
Finished Good MTO (for example, F1000-M1) in plant 1 (1000).
Result
You have run the simulated LTP MRP.
4.2.1.2 Evaluating Capacity Requirements
Use
In this activity, you perform capacity planning for all relevant work centers you want to check.
Page 14 of 19
After you run this activity, you can assess if the plan acceptable.
Procedure
SAP ECC menu Logistics → Production → Long-Term Planning →
Evaluations → Capacity requirements → Work centers
Transaction code
Business role menu Strategic Planning → Long-Term Planning (LTP) → Capacity
Planning
2. Choose Planning → Profiles → Overall profile.
3. Enter Profile YBLTP01 - LTP: Capacity requirements for AOP.
Use transaction SU3 to predefine the profile in your user parameter.

Parameter ID: CYX
Parameter Value: YBLTP01
4. Make the following entries

Planning Scenario Long-Term From previous steps
Planning
Work Center Select a work center, for
example, Assembly
Plant Plant 1 (1000)
5. From the menu, choose Settings → General and make / check the following entries:
Field name User action and values
Cumulation of requirements X
Hierarchy TOT_PLANT
Plant 1000
Entry type D
Start (mm.yyyy ) <Start of budget period>
Int.finish (mm.yyyy) <End of budget period>
Page 15 of 19
6. Choose Standard Overview.
7. Repeat this activity for each work center of your planning model (which are used in the routings
of the materials, which have been planned).
Result
Capacity planning has been checked.
If the plan is acceptable, you can run the next step
4.2.1.3Activating a Planned Independent Requirements Version
Use
Once you have evaluated and adjusted the simulative planning result, you can activate a planned
independent requirements version in the planning scenario and, if necessary, you can give it a new
version number. As the validity period of the new version, the system either enters the period
recorded when maintaining the simulative planned independent requirements version, or, if no
period has been maintained here, the system records the planning period of the planning scenario.
Once you have activated the planned independent requirements version, it is valid for operative
planning.
Procedure
SAP ECC menu Logistics → Production → Production planning → Long-
Term Planning → Planning scenario→> Change
Transaction code
Business role menu Strategic Planning → Long-Term Planning (LTP) → Change
Planning Scenario

Planning Enter a scenario number
scenario created above.
3. Choose Activate ind.req.

Page 16 of 19
Version Selected
Target version 00 Active version
Test mode Deselected
Create list Selected
5. Choose Activate.
4.2.1.4 Copying to Active Demand Management
Use
Alternatively to the previous step you can copy the LTP Version 01 into an active version (for
example, 00). In this activity, you create an active version in Demand Management by the following
procedure.
The advantage of this step is the activation in batch mode.
Procedure
SAP ECC menu Logistics → Production → Production Planning → Long-
Term Planning → Planned indep.reqmts → Copy version
Transaction code MS64
Business role menu Strategic Planning → Demand Management ( DM) → Copy version

Plant Enter all plants.
Material Leave blank
From date <first day of current month>
To date <From date PLUS 18 Eighteen months in
months> the future
Source version 01 Inactive version from
demand management
Target version 00
Target version active Selected
No database Deselected
Page 17 of 19
changes (Simulation)
3. Choose Execute.
Result
An active version is created in Demand Management. To display the active version for a single
material in Demand Management, use transaction MD63 (or menu path Logistics → Production →
Production Planning → Demand Management → Planned Independent Requirements → Display).
5 Follow-Up Processes
You have finished all activities that are part of the business process described in this document.
To accomplish subsequent activities of this business process, carry out the process steps described
in one or more of the following scenarios, using the master data from this document.
5.1 Operational Production Planning and Control

Use
In this activity, you may run the different production scenarios.
Procedure
To execute this activity, run the following scenarios

• Make-to-Stock Production - Discrete Industry
• Make-to-Stock Production - Process Industry
• Make-to-Order Production with Variant Configuration
• Make-to-Order Production w/o Variant Configuration
• Repetitive Manufacturing
.
Page 18 of 19
6 Appendix
6.1 Reversal of Process Steps
In the following section, you can find the most common reversal steps, which you can take to
reverse some of the activities described in this document,
Create Long Term Planning Scenario
Transaction code ( SAP GUI) MS31
Reversal: Change Planning scenario
Transaction code ( SAP GUI) MC75
Business role SAP_BPR_STRATEGICPLANNER-S
Business role menu Strategic Planning → Long-Term Planning (LTP) →
Change Planning Scenario
Comment You can change the planning scenario
6.2 SAP ERP Reports

Use
The table below lists the most frequently used reports that help you to obtain additional information
on this business process.
You can find detailed descriptions of the individual reports in the following BPP
documents, which provide a comprehensive compilation of all important reports:
• Financial Accounting: SAP ERP Reports for Accounting (221)
• Logistics Processes: SAP ERP Reports for Logistics (222)
Note that the descriptions of some reports that are an indispensable part of the process flow may be
located directly in the section where they belong.
Reports
Report title Transaction code Comment
Long-Term Capacity Planning The capacity evaluation is
displayed.
Change Plan Display of planning version.
Evaluation of Product Group Planning situation is displayed.
Planning
Long-Term Planning: MRP-list Simulation of MRP-list
Page 19 of 19

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SAP ECC 6.

2.2 Business Conditions

Demand After sales Strategic Sales Plan has

4.1 Sales and Operation Planning

SOP is particularly suitable for long- and medium-term planning.

4.1.1 Demand Verification (Checking Sales Plan)

2. On the initial screen, make the following entries:

3. Choose Inactive version.

4. In the dialog box Product group members, select the materials.

6. If the Check proportions dialog box displays, choose Yes.

4.1.2 Creating Rough-Cut Production Plan

4.1.3 Transferring Rough-Cut Production Plan to Inactive

2. Make the following entries:

3. Choose Transfer now.

4.2 Long Term Planning

4.2.1 Creating Long Term Planning Scenario

2. Make the following entries:

4. Make the following entries:

5. Choose Planned Independent Requirements.

6. In the dialog box, choose New entry.

7. Make the following entries:

10. In the dialog box, choose New entry.

11. Make the following entries:

12. Choose Confirm.

13. Choose Release and Save.

14. Choose Enter twice.

4.2.1.1 Executing LTP MRP Run

2. Make the following entries:

4. The system displays the message Please check input parameters.

4.2.1.2 Evaluating Capacity Requirements

2. Choose Planning → Profiles → Overall profile.

3. Enter Profile YBLTP01 - LTP: Capacity requirements for AOP.

Use transaction SU3 to predefine the profile in your user parameter.

4. Make the following entries

4.2.1.3Activating a Planned Independent Requirements Version

2. Make the following entries:

3. Choose Activate ind.req.

4. Make the following entries:

4.2.1.4 Copying to Active Demand Management

2. Make the following entries:

5.1 Operational Production Planning and Control

To execute this activity, run the following scenarios

6.2 SAP ERP Reports

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