PP SFC2

Why do you create SAP Production Order or Process Order
Criteria to create an Order: Think over it

All the products which are manufactured in-house and stored in the inventory would need an order
in SAP.
One order in SAP is always created for only one product. You cannot have two finish products
being produced from one order. On the other hand you could have one finished product being
produced and also a co-product of appreciable value being produced from the same order in a
predetermined percentage split.
The first goal in implementing SAP PP or SAP PPPI is to understand the products which are
manufactured in the organization and the way they are manufactured. It becomes difficult for a
consultant to understand for which products we create a production order.
SAP Production Order / Process Order for Semi-finished Products:
There is always confusion on how many semi-finished products go in to making a final product. In
SAP, all the semi-finished products would have their own BOM and Task lists leading to them
having their own orders. The best way to decide this is by finding answers to some questions like:
a) During the production of the final product, are there any stages where you break the production
process and store the half made product for appreciable amount of time. This breaks the
continuity of manufacturing
Where ever the production breaks and storage is required, you can call the half made product as
a semi-finished product.
All the semi-finished products have their own BOM and there own Task list and thus they would
have their own orders.
b) A final Product may already have semi-finished products marked which go in to making it. Thus
we have to adopt the same and create separate orders for the same.
c) Finally, one more interesting argument can be, anything in SAP which needs to be produced and
stocked should have an order.
d) Even if the organization decides to stop storing a semi-finished product in inventory and
optimize/increase the continuity of the production, they have to keep in mind that they cannot ever
bring it in to stock for the purpose of further consumption or sale to any customer (if ever they
decide to sell it).
Bottom-line: You have to create multiple orders in the system for producing each of the stock able
products.
For example:
If you have to make a product A and it has a BOM structure as below, then you would need to
create 3 separate orders each for A, B and C.
A Finished Product B Semi-finished C Semi-finished
B E X
C F Y
G E
SAP Production Order / Process Order for finished Products:

All the products which are manufactured in-house and stored in the inventory need an order. Thus
all the finish products which are manufacture in-house and stored would have one.
Receiving Co-Products and By-product from a SAP Production Order / Process Order :
Receiving Co-products: You can receive co-products from the order, but the problem with
co-products is that it reduces the total percentage of the header material to be received stock
proportionate to the percentage you have received for the co-products. For example if the
predefined co-product split rule is 95% receipt for the header material and 5% for the co-products,
you can only receive 95 units of 100 units for the header material and 5 units for the co-product
material.
So as to receive co-products from an order, you can define the settlement rule or the percentages
that would be received for the co-product and header material. The co-product also needs to be
maintained in the bill of material with a negative quantity with the co-product indicator selected.
You can receive co-products from the order as you receive the header material in to stock (using
101-MB31).
Receiving by-products: By definition, by-products are products which carry very less value and
are received during production of the main product. These products are either sold off for very less
price or scrapped eventually. By-products are received from an order using a different movement
type (531 transaction code MB1c). The only problem in receiving by-products is that, every
receipt of by-product reduces the order cost proportionate to the cost of the received product. So if
you receive semi-finished products as by-products it will reduce the cost of the order immensely.
So as to define a material as by-product being received from an order, you have to maintain the
material as a component in the header material BOM with a negative quantity.
Can you create one order and receive all semi-finished products from the same order:
When you create one order, the only material that you can receive in stock is the header material
for which you are creating the order. You cannot receive multiple semi-finished materials from
that order, in to stock.
Though you can receive co-products from the order, but the problem with co-products is that it
reduces the total percentage of the header material to be received stock proportionate to the
percentage you have received for the co-products. For example if the predefined co-product split
rule is 95% receipt for the header material and 5% for the co-products, you can only receive 95
units of 100 units for the header material and 5 units for the co-product material.
Remember you can also receive many by-products from one order (which are supposed to be for
materials which do not have appreciable value at all) apart from receiving the header material. The
only issue here is that the by-products which are received
There is no method formulized to receive semi-finished products in to stock from the same order as
the products being produced on the production line have no identity (have no material codes) at all
in SAP.
Is there a Work around to create only one order and receive multiple semi-finished
products?
There is a method according to me, which can be used as a work around through which you can
create just one order as well as receive multiple semi-finished products from that order.
For example:
If you have to make a product A it has a BOM structure as below, then you would need to create
3 orders each for A, B and C.
A Finished Product B Semi-finished C Semi-finished
B E X
C F Y
G E
Though there is a method to avoid creating 3 orders and just create one order. Follow the steps as
below:
Step 1: Create a Bill of Material as below:
Create 2 Phantom materials in the SAP and then create Bill of Material for the same, with the
component of B assigned to the X BOM and components of C assigned to the Y BOM.
Then assign the semi-finished material B to the Phantom BOM X and assign the semi-finished
material C to the Phantom BOM Y as shown below.
The components B and C assigned to the X and Y BOM are assigned a negative qty to declare
them as by-products.
A Finished X Phantom Material Y Phantom Material

Product BOM BOM
X E X
Y F Y
G E
B = -ve Qty (byproduct) C = -ve Qty (byproduct)
Step 2: Component assignment in the task list

When you create a Routing or Recipe for the finish product A as below, assign the components
to required operations. You would combine the operations required to produce the semi-finished
product B and Semi-finished product C, in one task list.
Lets say you had 3 operations which were originally used for product B and 2 for product C
and there are 2 operations added for manufacturing the product A itself.
Therefore the new Routing for Product A (Combined Routing) is as follows:
Operation 0010 -
Operation 0020 -
Operation 0030 - Assign components E, F, G, B
Operation 0040 -
Operation 0050 - Assign components X, Y, E, C
Operation 0060
Operation 0070
Step 3: Receiving Product B and C in between the production of product A.
Mark the semi-finished products B and C as backflush materials.
Create an order for the header material A and start creating the operation confirmations, when
you create the confirmation at operation 0030, the component B is automatically backflushed
and received in to stock as by-product through movement type 531.
Once the semi-finished product is received in stock, it would remain in stock and then the users
would have to manually re-issue the product B to the same order using movement type 532. This
nullifies the 531 activities; as if you had never done 531 on the order.
Similarly the product C would be received in stock at operation 0050 as by-products (movement
type 531) and re-issued to the order for production of the header material A, using movement
type 532 (byproduct reversal) again nullifying the by-product receipt activities.
In short, when the order is still in processing you would receive product B and C as byproducts
(movement type 531) and stock them and eventually re-issue them for production of the final
product A using movement type 532 (reversal movement of 531).
You could possibly think of automating the process of re-issue of the semi-finished products to the
order using 531 movement type as required using ABAP developments
SAP Routing/Recipes Explosion in the Production Order / Process Order
SAP Routing/Recipes Explosion in the Production order / Process Order
A Routing is a task list which acts as a place holder for the sequence of operations required for
manufacturing a product. It is a created as a master data in SAP. Upon selection of a
Routing/Recipe the operations, work centers and the activities are transferred to the order.
For Manual Routing/Recipe Selection
Configuration: You have to choose in the order type dependent parameter settings for an order
type whether you want to select the Routing/Recipe manually or automatically. You can choose
manual selection if you choose to.
0 No routings or reference operation sets to be used
1 Always reference operation set (no routings selected)
2 Routing/ref. op. set mandatory (automatic selection)
3 Routing/ref. op. set optional (automatic selection)
4 Routing/ref. op. set optional (manual selection)
5 Routing/ref. op. set mandatory (manual selection)
6 Routing mandatory (automatic selection)
7 Routing mandatory (manual selection)
8 Routing optional (manual selection)
9 Routing optional (automatic selection)
If you choose any of thee manual selection option in the order type dependent parameter settings,
SAP will offer a Task list pop-up selection in the order creation allowing you choose from the
list of Routings/Recipes group counters created for the material as a part of master data.
What Criteria are checked when it is pulled in the Order: When the system offers a list of task
lists to choose from, it pulls in Routings/recipes for the production order header material which is
valid from the order start date and whose lot sizes matches with the production order quantity.
For Automatic Routing/Recipe Selection
In the Routings or the Recipes configuration, we have to create a Selection ID and assign the
same in the Order type Dependent Parameter settings, thus allowing the SAP to choose a valid
Routing/Recipe during order creation.
Normally for SAP PP, you can choose the standard 01 Selection ID and for SAP PPPI you can
choose the 02 Selection ID or create your own.
Actual Selection: When the system chooses a Routing/Recipe, it pulls in Routings/recipes for the
production order header material which is valid from the order start to order finish date and whose
lot sizes matches with the production order quantity.
Jeopardy: When automatically selecting a valid Routing/Recipe, if the system comes across more
than one selection, it again throws the ball in your court and asks you to select manually from that
list.
Unfaithful: During automatic Routing/Recipe selection, if the system results in not finding a valid
Routing/Recipe it would abort the creation of the production order unless and until the below case
is true.
Automatic Routing/Recipe Selection Along with BOM selection through Production
Versions
When you choose automatic Routings/Recipe selection and at the same time if you have chosen
BOM selection through Production versions, in which case if there is a Routing/Recipe also
assigned to the Production version the system would choose that Routing/Recipe instead of using
the automatic Routing selection (through selection ID set in configuration).
SAP BOM Explosion in the Production order / Process Order
SAP BOM Explosion in the Production order / Process Order
A Bill of Material contains the list of raw materials that are required for production of a base
quantity of the header material.
Configuration: When an order is created, you can choose whether you want the BOM to be pulled
in the order or not, by entering a desired BOM Usage in the Order type dependent parameter
settings. Including an order type, you are actually helping the system to pull a Material BOM of a
desired usage.
Another place where setting is done: And if you choose to automatically explode the BOM in the
order through the above configuration, the actual pulling of the Material BOM in the order is
performed by the value selected in the Select BOM explosion Method field in the MRP 4 view.
Selection by order quant.
1 Selection by explosion date
2 Selection by production version
3 Selection only by production version
When is the BOM pulled in / BOM Explosion Date: SAP pulls in the BOM, a split second after
the Routing is attached and the order is scheduled so that it gets the Order start date or Order Finish
Date and the BOM explosion number and uses it as BOM explosion date. You can carry out these
settings in transaction code OPPQ. The standard setting is Order start date.
BOM Explosion Methods: If you choose to explode the BOM, then one of the above 4 option has
to be selected in the material master:
Selection by order quant.
1 Selection by explosion date
2 Selection by production version
3 Selection only by production version
a) If you choose to explode by order quantity then a BOM is exploded for the material based on the
lot size criteria, provided the BOM is valid for the order start and order finish date.
b) If you choose to explode by explosion date then only the validity dates of the BOM come in to
picture, i.e., the BOM should be valid through the order start and finish date.
c) If you choose to explode the BOM through production version then explosion is purely based
upon the lot size, validity dates and the BOM maintained in the production version, and if a valid
production version does not fit then the system gives you an option to choose the BOM through
manual selection methods.
d) If you choose to explode the BOM through only production version method then explosion is
mandatorily based upon the BOM found in the version for lot size and date validity and if a valid
production version is not found then order creation is aborted.
Note: Unless and until you use the selection method as the Production Version selection method,
the system will always choose the BOM alternatives
Why does a BOM does not get exploded in the Order:
A Material BOM fails to get exploded in the production order, because:
a) The BOM is not active and must have been set to inactive status in the BOM header screen
b) The BOM is not valid for the order lot size, i.e., the BOM lot size range is does not fail in the
order quantity.
c) The BOM is not valid for the order basic dates, i.e., the BOM validity dates is different than the
order basic dates; the BOM is not valid in the date range for which the order is created.
d) If you pulling in the BOM in the order, through the use of Production Versions, then the lot sizes
and the version validity dates should fall in the order quantity and the order basic dates, similar to
what is mentioned in the point number b and c.
e) If the BOM that is being pulled in, is not relevant for production.
f) If the Material Master X-Plant Status or the Material Master Plant Status is set to disallow
production.
g) If the BOM is not configured to be pulled in the order as per the order type specific
configurations.
Configuration Required for SAP Production Order and Process order
SAP Production /Process Order Configuration required
So as to create a production order the following configuration is required:
a) Order type Definition settings
b) Order type Dependant parameters settings
c) Assigning a number range (external or internal) to the order type
d) Scheduling parameters for an Order type
e) Define Confirmation Parameters
f) Configure production scheduling profile
g) Default operation for the generation of operations
h) Default values for availability checks
Define Order type and Order type Dependant Parameters

Define Order type and Order type Dependant Parameters:
Before even you try to create a production order or a process order, you have to define an order
type for your production order scenario.
For a regular production, you can as well use the Order type - PP01,
Note - If PP01 is not exactly what you wanted, then never make changes in PP01 order type
settings, try to copy the PP01 order type and create your own order type ZP01 for SAP production
purposes. In ZP01, you can make whatever changes you may want to. Another nice use of creating
a ZP01 is that you would not be overwritting PP01 and it would always be there for your reference.
Changing existing PP01 or creating a new Order type ZP01:
The parameters in an Order type are explained below with the use of a Screen Photo.
CO Partner Update:
This is a SAP Controlling related Parameter. This will not be discussed here and you need not
worry much about it. Ask your SAP CO Consultant to take care of it.
Classification Indicator:
Classified orders can be selected in the information system for Controlling in a list showing all
orders that have certain characteristic values and statuses.
The values of the classified orders can be grouped with the Product Drilldown Function and Order
Hierarcy function.
Again this is a SAP Controlling related Parameter. This will not be discussed here and you need
not worry much about it. Ask your SAP CO Consultant to take care of it.
Commitment Management:
Controls whether commitments are updated for this controlling object.
Residence Time 1 and 2:
Again there is nothing much that is decided through this setting. But it can be useful in some cases.
If you dont understand this setting, there is no harm in keeping them with values 1 and 1.
The SAP meaning provided is:
Residence time 1 determines the time interval (in calendar months) that must elapse between
setting the delete flag (step 1) and setting the deletion indicator (step 2).
Settlement Profile:
This is a SAP CO Activity and it is a very important task for the SAP CO consultant to maintain
this value. This value decides the settlement rule for orders. It is normally maintained as PP01 for
Production orders and PI01 for Process orders.
Functional Areas:
Functional areas is a SAP CO functionality and is relevant for Funds Management.
Collective order with goods Movement indicator:
This indicator is set if you are using collective orders in SAP PP or SAP PPPI. This indicator
facilitates automatic goods movement between orders in a collective structure.
In other words if you have a BOM with 3 subassemblies A, B and C define to work in a collective
structure through Special procurement key 52 in MRP 3 view, then if there is a requirement for
Material A, the system will create 3 orders assigned in a collective structure as shown below:
Order for Assembly "A"
>>> Order for Subassembly "B"
>>> Order for Subassembly "C"
Collective orders groups orders for the assembly and subassembly together in a structure (though
the order numbers for each of the orders in the structure is seperate).
If this indicator is set, then for collective orders methodology, the quantities from Goods receipt of
order "C" is automatically issued to order "B" and similarly the quantities from goods receipt of
order "B" is automatically issued to order "A".
Status Profile for Order Header and Order Operations:
Standard SAP has standard system statuses to offer which clearly explains the current status of an
order, like the CRTD status explaining that the order is just created, the REL status explaining that
the order is just released, the PRT status explaining that the orer is just printed, the PRC status
explaining that the order is just precosted, the TECO status explaining that the order is just
technically completed and the CLSD status explaining that the order is just closed, the LKD status
explaining that the order is just locked and the DLFL status explaining that the deletion flag is
activated for the order header.
Similarly all the above statuses work for the order operations as well.
Nevertheless, if you want to create your own statuses then SAP offers a functionality called
creation of user statuses, for which you would have to create a Status profile that complies all the
user statuses that are required for the object (an order).
For example you want to activate a self created user status called "ZOCL - Order Completely
closed" under the Order header status profile ZST1, which would be activated automatically after
the system status "TECO" is put on the order and what this status would do is that, it would
completely stop all the goods movements to the order because system status TECO allows goods
movements even after it is activated.
For the above case to work successfully for the order header, you should assign the order header
status profile - ZST1 to the order type, here in this field.
Similarly, you may want to disallow any operation level confirmations, untill all the operation
related components have not been issued completely. To do this you would have to create a
Operation level status profile called ZST2 and assign the same in the order type settings here.
Configuring Order type Dependant Parameters
Changing Order type Dependant Parameters for the existing PP01 order type or creating a
new Order type dependant parameters for ZP01:
Again it is wise to copy the order type dependant parameters from the PP01 Parameters. The
parameters in an Order type are explained below with the use of a Screen Photo.
A) The First Tab of this configuration is the Planning Tab:
Production versions:
This settings allows you to decide whether the production versions should be selected manually in
the order or it should be selected automatically depending upon the validity dates or the lot sizes.
Selection ID:
The selection ID mentioned here allows the system to prioritize the selection of Routing/Recipe
types for the order.
Routing/Recipe selection is configured for automatic selection of Routings/Recipe in the orders.
Against every Selection ID that you create, you would be declaring the proirity of selection of Task
list.
Transaction code is OPEB is the place where you should first create your own Selection ID's. SAP
has already pre-configured the automatic Selection.
Note:
Every Selection procedure has a selection ID
>>> Selection ID has Priorities
>>> Selection ID has Task List Usage and Status
Selection ID Selection Priority Task List Selected Usage Status Status Description
01 1 N 1 - Production 4 Released (general)
01 2 N 1 - Production 2 Released (order)

01 3 R 1 - Production 4 Released (general)
01 4 R 1 - Production 2 Released (order)
01 5 2 1 - Production 4 Released (general)
01 6 2 1 - Production 2 Released (order)
What the above table or selection ID means -

This above configuration means that the production order where the selection id is used, should:
First choose the Routings task list which has usage 1 and status 4, if this Routing is not found for
the production order material then as a,
Second priority option, the system should try to find the Routing task list of usage 1 and status 1 if
found, if this Routing is also not found, then the system as a,
Third priority option should try to find out a Reference operation set whose usage is 1 and status is
4 and it has a header material (in question) allocated to it already and if this is also not found then
the system has a,
Fourth option to search for a reference operation set whose usage is 1 and status is 1.
Similarly as a Fifith and Sixth option (last option), the system should try to find a Master Receipe
of usage 1 and Status 4 and if not found then it should try to find a master receipe of usage 1 and
status 2.
Ultimately if SAP cannot find any task list for the order type being created, it will either Abort or
continue creation of Production oeder based on the configuration.
Sequence Exchanges:
You should decide whethere you want the system to automatically exchange task list sequences in
the order based on lot size or you want to manually select the alternate sequences in the order.
Task List type:
You can also select the task list type that you mandatorily want to be selected in the order. As an
example you might want to have a value "N" - Routing. In other words it is not possible to have
another task list type other than "N" selected in the order even though the selection ID has a option
to select one.
Alternative Sequences Can be Transferred:
If you select this indicator, it is possible to transfer the Alternative sequences available in the task
list, to the order. This indicator works hand-in-hand with the possibility of sequence exchanges.
Routing Selection:
This settings governs the selection method of Routings in the Order and not the selection of routing
types in the order. Once the routing type and the corresponding routing, that is to be pulled in the
order, is decided by the system, the system decides how it is to be pulled in the order, i.e., whether
it should be pulled in automatically, manually or through production versions.
For Manual Routing/Recipe Selection:
Configuration: You have to choose in the order type dependent parameter settings for an order
type whether you want to select the Routing/Recipe manually or automatically. You can choose
manual selection if you choose to.
If you choose any of thee manual selection option in the order type dependent parameter settings,
SAP will offer a Task list pop-up selection in the order creation allowing you choose from the
list of Routings/Recipes group counters created for the material as a part of master data.
What Criteria are checked when it is pulled in the Order: When the system offers a list of task lists
to choose from, it pulls in Routings/recipes for the production order header material which is valid
from the order start date and whose lot sizes matches with the production order quantity.
A) For Automatic Routing/Recipe Selection:
In the Routings or the Recipes configuration, we have to create a Selection ID and assign the
same in the Order type Dependent Parameter settings, thus allowing the SAP to choose a valid
Routing/Recipe during order creation.
Normally for SAP PP, you can choose the standard 01 Selection ID and for SAP PPPI you can
choose the 02 Selection ID or create your own.
Actual Selection: When the system chooses a Routing/Recipe, it pulls in Routings/recipes for the
production order header material which is valid from the order start to order finish date and whose
lot sizes matches with the production order quantity.
Jeopardy: When automatically selecting a valid Routing/Recipe, if the system comes across more
than one selection, it again throws the ball in your court and asks you to select manually from that
list.
Unfaithful: During automatic Routing/Recipe selection, if the system results in not finding a valid
Routing/Recipe it would abort the creation of the production order unless and until the below case
is true.
B) Automatic Routing/Recipe Selection Along with BOM selection through Production Versions:
When you choose automatic Routings/Recipe selection and at the same time if you have chosen
BOM selection through Production versions, in which case if there is a Routing/Recipe also
assigned to the Production version the system would choose that Routing/Recipe instead of using
the automatic Routing selection (through selection ID set in configuration).
Operation Increament:
You can enter you own increments to be used when operations or activities are automatically
numbered.Normally the increaments of 0010 is used.
Also remember to put on the "Entry tool" indicator.
BOM Application:
Use the standard PP01 BOM Application for Productin orders and PI01 BOM Application for
Process order.
Before assigning a BOM Application, you should make sure that the BOM Application has a BOM
selection ID assigned to it. The BOM Selection ID contains the list of BOM usages that should be
automatically selected during order creation listed in priority, for example BOM selection ID = 01
has BOM of Usage 1 (production BOM) as Priority 1, BOM of Usage 3 as Priority 2.
Selection ID Selection Priority BOM Usage
01 01 1
01 02 3
The Selection ID is assigned to the BOM Application as shown below:

The BOM application not only decides the selection procedure of BOM usages but also decides the
following:
Whether the alternative multiple BOM are allowed for use
Whether BOM from Production Versions are allowed for use
Whether the BOM is allowed for use in MRP, in Planning, in Costing, in Orders, in Sales
orders
Batch Determination Procedure:
So as to carry batch search strategy for components to be used in production, you need to create a
batch search procedure that contains various search strategies arranged in priorities of use.
For example the Search Procedure CO0001 - Standard CO Search Procedure, contains the
following search strategies to be used in a sequence of priority:
Search Procedure Step Strategy Strategy Condition
CO0001 10 CO01 OrdType/Plnt/Component
CO0001 20 CO02 Order Type/Plant/Production Material/Component
CO0001 40 Z001 Plant
Therefore the batch search Procedure works, to select the batch in orders, in a given fashion
as below:
Step 1: Components whose batches are to be selected automatically or manually through a batch
search criteria, are set for batch searching in MRP 2 View.
Step 2: A batch search strategy master data should be maintained in SAP under COB1 transaction
code, using a Batch Search Strategy set in the Batch Search Procedure of the order type. Here the
batch search strategy master data can be maintained for either of the three methods as below:
Step Strategy Strategy Condition
10 CO01 OrdType/Plnt/Component
20 CO02 Order Type/Plant/Production Material/Component
40 Z001 Plant
Firstly - You can Maintain a Batch Search Master data for the levels maintained in C001 - for the
order type ZP01, at the plant C002 and Component (that is to be searched). This level is a detailed
level and the extent of master data maintainance is huge, for every order type, at every plant and
every component that needs to be searched for batches in the order.
Secondly - You can Alternatively Maintain a Batch Search Master data for the levels maintained in
C002 - for the order type ZP01, at the plant C002, for the Production order header material and
every component that needs to be searched for batches in the order. This level is a detailed level
and the extent of master data maintainance is huge, for every order type, at every plant and every
header material that is to be produced and every component that needs to be searched in the order.
Thirdly - You can Alternatively decide to maintain a simplier Batch search master data for the
levels maintained in Z001 - For the plant C002 all the components or materials which are marked
for batch search would be searched for batches in the order. This is a very generic strategy but it
will save you the time in maintained details batch search strategies in the tranaction code COB1.
Other Important Configurations in the Batch Search Strategies:
The other important configuration included in the Batch Search Strategies is the restriction of the
Batch classes that should be used in the search or restricting through a sort rule like FIFO or
restricting through Batch class characteristics values set (for example search for batches which has
characteristics - Label_Color as "Blue" or which has batch characteristics "Batch_Status as
"Unrestricted")
Check Batch in Batch Search Procedure:
The manually entered batches in the order component overview are checked against the Batch
search strategies maintained in the Batch Search procedures for the order type. If a certain selected
Batch still does not match that criteria, the batch is not allowed for use.
Substitute MRP Controller and Production Schedulers:
If a MRP Controller or a Production Scheduler is not maintained in the header production material,
then a default is choosen from here.
Reservations and Purchase requistion Creation:
This settings governs the creation of reservation and purchase requisitions for external operation
processing. It allows you to set when it should created - at order creation (immediately) or at order
release or it should never be created.
Inspection Type:
You can fix an inspection type which should be used for Quality Inspections in SAP, like
inspection at order GR, In-Process inspection or By-product inspection. If you have multiple
inspection types for the material to be produced then you should not fix one here.
B) The Second Tab is the Implementation Tab:
The Second View stresses more on passing information of the order to the database information
systems. It is not harmful is you just tick mark on the indicators
C) The Third Tab is the Controlling Tab:
The Third View is always configured by the SAP CO consultants and it deals with the SAP
controlling aspects related to costing of the order and the maintaining the cost sheets.
D) The Foruth Tab is the Display Profile Tab:
The final tab is the Display Profile tab that wants you to enter the reporting profiles for collective
orders and missing part list. You can as well keep the standard profiles here.
Configuring Order Type Number Range

Configuring Order Type Number Range
If you are going to use any of the standard order types, you dont have to worry about assigning a
number range to the order type.
As a process you need to create a number range or use an existing number range and assign the
order type to it. When you are creating a number range, you can mark it as an allowed internal
number range or you can mark it as an allowed external number range.
But if you have created a new order type like ZP01 (copied from PP01 or PI01 - as an example)
then you may need to assign to an existing number range or a newly created number range.
Note - There can be cases where you are using a standard order type, but they may not have been
assigned to a number range; in which case you need to select the order type and assign it to a
number range. This job is a really tricky job and that is why it is explained thoroughly here.
Assignment of Order type to a number range:
Select the Number range to which you want to assign the order type to. In this example - You
would be assigning order type PI01 to the "Process order (Internal number assignment)"
Method step 1 - Select the number range that you want to assign the number range to
"Process order (Internal number assignment)".
Method step 2 - Select the order type that you wish to assign to a number range, from the
"Not Assigned order types section". Here we are selecting order type PI01. When you
select the order type by double-clicking on it or by press the "Select Element" button as
shown in the screen shot below; the order type turns in to blue colour from its existing
black colour representation.
Method step 3 - Once you have selected the number range to which you want to assign the
order type to and you have selected the order type from the non-assigned order type
section, you should press the "Element Group Button" so as to make the assignment. This
is clearly shown in the screen shot 2 below.
Removing the Assignment of Order type to a number range:
As an example we would be removing the assignment of PI01 from the number range group -
"Process order (Internal number assignment)".
Method step 1 - Select only the Order type which is already assigned to a number range by
Double-clicking on it or by pressing the "Select Element button", once you have selected
the order type the color turns from black to blue. Do not select the indicator of the number
range group - "Process order (Internal number assignment)".
Method step 2 - Then Select any of the order type from the "not - assigned order types"
section at the bottom of the screen by double-clicking it or by pressing the "Select element"
button.The order type that is selected is the position of the order type (PI01 in the example)
to where you want it to be brought back to.
Method step 3 - Press the "Element /Group" Button to remove the assignment and bring
back the assigned order type (PI01) to the "not-assigned order type" section at the bottom
of the screen.
Configuring Default Values for an Operation in an Order type
Configuring Default Values for an Operation in an Order type
When you configure a default operation for an order type, it is possible to proceed creating an
order without a Routing or a Recipe.
If you have not created this configuration, then the order creation is aborted in the absense of a task
list. If your intensions are to abort creation of an order in the absense of a task list then you should
not configure the default operation.
If you wish to have an order created without a task list then you should create this configuration. It
is a fact that you cannot create an order without any operation, therefore you are indirectly fooling
the system by including a default operation and having it proceed ahead without aborting the
creation.
Lateral Thinking - if your organization has only one workcenter to be assigned to an operation in
case of this order type, you may as well create a default operation with a default workcenter instead
of creating a material routing or a material receipe. This makes it easier for all.
See the figure below to create this configuration.
Configuring Order Availability Controls
Configuring Order Availability Controls
When you configure the Order availability checks at the point of Order creation or Order release
the following controls are available:
1) No check is made on Material (component) Availability when the order is created and saved or
released and saved.
2) Check is to be made on Material (component) Availability when the order is created and saved
or released and saved.
3) The Checking rule is included that would be used for the component availability (if the
availability is checked on). Normally you would use the availability checks - PP01 or a copy of
PP01.
4) In cases where you are using collective conversion of planned orders to production order or
process order in SAP PP or PPPI, and components are missing in stock for production, then there
are 3 options for configuration - a) the user decides the conversion - b) creation to proceed even if
components are not available - c) creation to abort if missing materials.
Lateral thinking - It is wise to stop or let the user decide, the creation of an order if the components
are no available. But if you are planning for mass conversions of planned order to create
production/process orders then it is not wise to have the user decide the creation, as the system will
always prompt you a pop-up message for a decision where components are not available, which
will defeat the purpose of mass conversions.
5) The above point is also applicable in the release setting of availability controls - where the user
can decide release or the release proceeds automatically even if components are not available or
the release is stopped.
Lateral thinking - It is wise to stop or let the user decide, the release of an order if the components
are no available. But if you are planning for mass release of orders, then it is not wise to have the
user decide the release, as the system will always prompt you a pop-up message for a decision
where components are not available, which will defeat the purpose of mass release of orders.
6) There are settings availble for PRT Checks similar to components checks and the
creation/release can be allowed or stopped in a similar way. You can even decide to not have a
PRT check atall by checking the "No Check" indicator.
7) Similarly there are settings available for Capacity Availability checks at order creation or
release where the consultant needs to assign a capacity availability check profile and configure
whether he/she wants to create/realese the order if capacity is short or abort the same. You can
even decide to not have a Capacity availability check atall by checking the "No Check" indicator.
8) Batch Assignment controls are only available in the case of Order release where you can decide
to stop the order release if the order header batch is not created or you can decide to proceed even
if the order header batch is not created by the system, for various reasons.
Check out the Screen shot below that will explain the above points in details -
Configuring Production Scheduling Profile
Configuring Production Scheduling Profile
SAP offers Production scheduling profile as a standard profile to configure order controls. Such
controls are material specific. The Profile is assigned to an header material for which you are
creating an order.
SAP makes it easier for planners to have controls set at material level rather than keepinig them at
order level so that you can opt for different set of control for different kinds of producable
materials.
The following controls can be set:
a) On creation
Automatic Order release on creation of the order (when the order status is CRTD)
Automatic Links of header Material related documents and BOM related documents items to the
order (when the order status is CRTD)
b) On Release
Automatic Printing of Order papers on release of order (when the order status is REL) - If you are
planning to use order related shop floor papers configured in the order list or order print settings in
SAP, then you can use this functionality for automatic printing of papers at order release.
Automatic Scheduling of Order on order release (when the order status is REL) - This is
recommended to be set. But donot use this if the order planning and scheduling is happening from
an external system like APO or i2 etc.
Automatic Links of header Material related documents and BOM related documents items to the
order (when the order status is REL)
c) Automatic Goods Receipt
If you are planning to receive certain materials automatically in to the finished goods storage
location upon confirmation of the final operation in the order, then you can use this indicator rather
than using the control keys in the order operation. Setting automatic goods receipt at this level
reduces the effort of master data creation.
d) Capacity Planning
If you are planning to carry out Capacity Availability checks in the order for the header materials
(which would carry the production scheduler profile), then you need to select the "Confirm
Capacity indicator" and the "finite scheduling indictor" and choose a leveling profile.
The Capacity overall leveling profile is used by the system to carry out capacity availability checks
in an order when the order is created or release as per the settings in the order availability controls
at creation/release. SAP has provided an option to have the Capacity overall leveling profile
maintained at material level rather than setting the profiles at order levels in the order availability
controls. The Capacity Overall Leveling profiles once assigned here decides the way in which the
capacity leveling has to be done for the materials (assigned with this production scheduling
profile).
As far as the indicators are concerned, they only come in to play during mass conversion of
planned orders in to orders or mass release of orders when the user does not decide the creation or
release and the system is set to create or release anyways inspite. The below indicators help the
system to make decisions on capacity availability checks and helps it proceed in creating or
releasing the order.
By choosing the "finite scheduling indicator" you are forcing the system to consider all the
operation work center of the header material relavent for finite scheduling during capacity
availability checks, and in cases where there is no capacity availability for loading operations on
work centers, the system loads operations on dates where there is sufficient capacity
(automatically rescheduling to dates where their is availability).
And by choosing the "confirm capacity indicator" for capacity availability checks, you are
indirectly telling the system to incorporate loads in work center loading reports for where there is
sufficient capacity available, in other words the operations for which there is no sufficinet capacity
available will not be loaded on work centers in the work center loading report. You should choose
this indicator wisely.
Recommendation - Aviod using the "Confirm capacity indicator".
e) Confirmations
No Flor/Update of Expected Yield Surplus/Deficit - On Final Operation or order confirmation, if
the confirmed quantity is less than (deficit) or more than (surplus) the operation or order quantity
(confirmed scrap quantities) are not taken in to account , then the system displays the Yield
Variances in the order header.
If you set this indicator the variances (if any) donot flow in to the order and MRP. This is not
recommended to be used under standard circumstances since Material requirement planning
would not consider the shortages and spoil the concept of net requirement planning or netting.
Adjust Operation/Component Quantities to Actual Value - In simple terms the system would
readjust the planned operation qauntities of the order if you confirm the order with a smaller/larger
yield than that planned (including the confirmed scrap quantities). Along with readjusting the
planned operation quantities, the components quantities of the components assigned to the
operation also changes proportionately.
This is applicable for the operation that has a yield variance and all the operations below the
operation that has a change.
The system carries out the following in case there is a difference in the confirmation of planned
quantities and the actual quantities (during order or operation confirmations)
a) Automatically readjusts the operation quantities for all operations below the concerned
operation, including the concerned operation.
b) Automatically readjust the component quantities for all the components assigned to the
operations below the concerned operation, including the concerned operation.
c) Readjusts the planned costs for all the operations and the order, overall. Though this recosting
has to be done manually and it is not triggered automatically by the system.
d) Automatically reschedules the operations giving new dates and new capacity requirements.
e) Automatically makes changes in the Purchase requisitions created in the order for non-stock
items or for the purchase requisition created for externally operation processing.
f) Automatically readjust the Transport requests created for WM.
For example -
Operation 0010 - Planned Qty = 100
Operation 0020 - Planned Qty = 100 - Component 10 - Qty = 100
Operation 0030 - Planned Qty = 100 - Component 20 - Qty = 100, Component 0030 - Qty = 50
If the confirmed qty in Operation 0015 is 102, then all the below operations and the component
quantities are changed proportionately as shown below:
Operation 0030 - Planned Qty = 102 - Component 20 - Qty = 102, Component 0030 - Qty = 54
f) Batch Creation at Order level
If you want to have batch created at order level for certain header materials, then you can create a
production scheduling profile and assign this profile to them.
You can configure whether you want Order level header material batch creation at order creation
or release.
Not only, can you configure order header material batch creation, but you can also configure
whether you want the batch created and classified in the order foreground or in the background
(optional or mandatory).
g) WM related Transfer Requirements
Here you can specify whether you want to automatically create WM related transfer requirements
or transfer orders for the order components (whose storage location is maintained, Storage location
is relevant to WM, WM views are maintained for the component) at order release.
h) Order Type
In the production scheduling profile you can default order types which would be used while
converting a planned order in to order or which can be used for manual creation of production
order.
Configuring Order type Scheduling Parameters
Configuring Order type Scheduling Parameters
The following Order type Scheduling parameters help in scheduling the order. The scheduling
parameters are set for the order type at the plant level for a production scheduler. If you want to use
the Order type scheduling parameters across all the schedulers you should put a * (star) in the field
while creating the configuration.
The following scheduling parameters are included:

A) Detailed Scheduling, Rate Based Scheduling, Rough Cut Planning -
Here you can enter the Selection ID for which a appropriate Routing is selected for scheduling.
Though in the case of Production orders or Process orders the selection ID is not set here as the
same is selected through the order type dependent settings. Though you can enter the rate based
scheduling routing selection ID and the rough-cut planning routing ID.
For the Rate based scheduling and Rough cut planning, you can enter the selection ID which
would help in choosing the respective task lists, you can select the scheduling indicator if you want
lead time scheduling done, and you can also select the capacity requirement indicator if you want
the capacity requirements to be loaded on the workcenters.
And for detailed scheduling, the "selection ID" is not open for input (as it is taken from the Order
type dependent settings). Also in the case of detailed scheduling, the "scheduling indicator is
always set on. But as far as the capacity requirement indicator is concerned, it is only choosen if
you want to load the capacities requirements generated from orders on workcenters.
B) Adjust Dates
In the case of Lead time scheduling (Scheduling using the task list), every rescheduling, results in
change of basic dates; now it is your choice whether you want these basic dates to be re-adjusted
after every rescheduling.
It should also be noted that in backward scheduling the Basic start date is readjusted and in forward
scheduling the Basic finish date is readjusted.
Lateral Thinking - Normally when the basic dates are pulled in from an external system or set from
a tool (SAP or Non-
SAP) you would really not want to reschedule or readjust the dates. If you readjust the proposed
dates will be rewritten, which is not acceptable as the dates proposed by the tools are more accurate
than that of the basic SAP ECC dates.
Now talking about readjusting the dates of the dependent requirements because of a change in
basic dates of a superior level order, you have a choice whether the requirements are to be
rescheduling at the start date of the operation to which the dependent requriements are assigned to,
or whether you want to reschedule the dependent requirements directly to order start date (so that
they are available at the basic start of production of this superior level order).
C) Scheduling Types and Controls
Scheduling types are backward, forward, current date and as per capacity requirements. This is
explained in detail in the "Order creation section of this site".
The Start date in the past has the number of days in entry, which specifies the number of days that
the order can lie with past dates. Another use of this indicator is that when the number of days in
the past for an order has reached beyond the specified number of days in this setting, the system
reschedules the order using todays scheduling (a type of forward scheduling) with "current date as
the order basic start date", to bring back the order dates to current dates.
The Automatic Scheduling indicator helps in rescheduling the order everytime it is saved, with the
results updated in the basic start date and finish date fields. If this indicator is not set, the system
reschedules the order, but does not update the dates and throws a system status - NTER - Dates not
Current.
Scheduling logs are to be displayed automatically after every rescheduling if you set the automatic
log indictor.
With an Active verison in the capacity of the work center with detailed entry of breaks and shift
schedules, you can use this indicator to taken in to account the breaks in daily activities so that no
job is scheduled in the break time.
Scheduling using the production dates allows you to enter the production dates instead of the
conventional basic dates in the order.
The Shift Order Indicator is used when you dont want to consider the actual dates of the partially
confirmed operation and proceed with rescheduling the entire order. Wise use of this indicator is
recommended.
Reduction in operation lead time is to be indicated here.
Configuring Confirmation Parameters
Configuring Confirmation Parameters
Confirmations parameters are to be set for orders types so as to allow confirmations as per the
clients requirements.
Confirmations in SAP PP/PPPI or even SAP REM refers to booking the completion of production
quantities at each operation (partial completion or final completion). Confirmation is not receiving
goods in stock, it is only about declaration production at each operation and in turn booking cost
incurred in operational activities (in the background).
The method or manner in which these confirmations would happen is configured here.
I) Generally Valid Settings
A) Checks of Sequence adherances
Whether System should terminate confirmations Operation when the sequence is not adhered or
whether the system should issue an warning message or whether the system should issue an
information message when the sequence of operation confirmations is not followed.
Alternatively, there is an indicator which allows you to set no checking of the operation
confirmation sequencing.
When you are producing in an environment where there are many operations one after the other,
not set in milestone or progressive confirmations, you should mandatorly think about adhering to
the operation confirmations to be made in a sequence; in which case you may want to stop the
confirmation when sequence is not followed or you may want to issue an warning or information if
it is not followed.
Alternatively there may be cases of milestone control key used, where you may want to use
sequence checks, where the task list may have many milestone operations set periodically in the
list of operations. Here adhering checks make it easier.
But when you have just one milestone operation at the end of the operation list, which confirms all
the above operations, having checks is useless. You may as well confirm at the order level.
B) Checks of underdelivery and overdelivery tolerances
The checks govern whether you want a error message or a warning message when the quantity
finally confirmed falls below the undelivery tolerance or above the overdelivery tolerance. These
tolerance are the order level tolerances.
C) Checks for QM inspection results
When you are using "In-process quality management", you would be recording results at the
operation level for the operations marked for result recording and in such cases you can issue error
or warning messages if you have not recorded results before confirmations of the operations.
D) Date in Future is allowed
If you select this indicator, you can set a future date of confirmation (during confirmations). An
error message is issued if you use a future date in the absense of this setting.
E) Whether Confirmation information is to be transferred to SAP HR.
F) Goods Movement - For all Components
If you select this indicator, all the components of the component overview list are marked with a
backflush indicator and are issued automatically in the background (provided other information
such as storage location, batch number if batch managed exists and stock is available for the goods
issue). That is, all the components are treated as backflush component regardless of whether the
work center or the materials are marked with a backflsuh indicator or not.
G) Proposing Time unit for the Activity Confirmations
When the activities are confirmed the time units can be defaulted as Hour or min or can be taken
automatically from the cost center tab of the work center that is being confirmed.
H)
II) General Individual Entry
A) Proposing Confirmation Type
Here you have to select whether you want "final confirmation indicator" to be defaulted for all the
confirmations that the user makes and he/she marks it manually according to a partial or final
confirmation that is made or you want a "partial confirmation indicator" to be defaulted and the
user changes it to final whenever he/she makes a final confirmation or you want to default to
"automatic final confirmations" based on the quantity that is confirmed.
In automatic final confirmations, if the user confirms less than the quantity (planned operation
quantity or the order quantity with the overdelivery tolerance and underdelivery tolerances taken
in to account) then "partial confirmation" is set and if the user confirms equal to or more than the
quantity (planned operation quantity or the order quantity with the overdelivery tolerance and
underdelivery tolerances taken in to account) then the system marks it as "final confirmation". The
confirmed quanty is equal to = yield qty + scrap qty + rework qty.
When confirmations are entered for sub-operations, automatic confirmation is not possible. The
proposal of 'Automatic final Confirmation' is changed to 'Partial confirmation' for sub-operations.
B) Post Open Reservations
When a final confirmation is created, you would normally want the open reservations to be closed,
if you wish so, then you should select the "Post open reservation indicator". What it means that, all
the open reservations for the order will be closed, not only the reservations of the backflush items
but the reservations of all the components would be closed tagging the components with a final
issue indicator (that is no more issues can be done for the components).
C) Issue Error Log when errors in Actual Activity cost postings and Good Movements
When the system issues errors in actual activity cost postings, the system would allow you to
correct these errors, similarly when the system issues errors in actual goods movement posting
(backflushing or automatic goods receipt) the system allows you to correct these errors.
If the goods movements is not to be corrected at this point of time, the system allows it to go ahead
for post-processing in a transaction code called COGI. These failed goods movements are
corrected in COGI later on and posted. The post-processing adds on an activity in the daily life of
production
D) Issue Terminations when errors in Actual Activity cost postings and Good Movements
But on the other hand if you select the "terminate for incorrect actual cost" or "terminate for
incorrect goods movement" along with the "issue errors in actual cost or goods movement
indicators", the system would not allow you to correct them and would abort the confirmations and
postings.
III) Operation Individual Entry using Selection Screen
A) Propose quantities
Quantities that are yet to be confirmed for the operation or order are proposed by the system, if you
select this indicator.
If total qty = 200
If confirmed qty = 50
Proposed qty for confirmation = 150
B) Display Confirmed Quantities
Quantities which are previously confirmed before this confirmation is displayed on the screen as
information, if you select this indicator.
C) Display Default quantities
If you select this indicator, quantities that are yet to be confirmed are displayed on the confirmation
screen.
D) Propose quantities for activities
It is a know fact that when you are confirming an operation or order, you are confirming the
quantities that are produced at the operation and the time taken in terms of minutes or hours to
carry out the production at the operation, i.e., you are entering the actual activities.
Actual activities entered results in calculations of the actual costs. Thus it is a nice idea to propose
the activities that are to be confirmed and that are yet to be confirmed.
Activities that are yet to be confirmed for the operation or order are proposed by the system, if you
select this indicator.
If total activity = 200 Hrs
If confirmed qty = 50 Hrs
Proposed qty for confirmation = 150 Hrs
E) Display Confirmed Activities
Activities which are previously confirmed before this confirmation is displayed on the screen as
F) Display Defaults for Activities
If you select this indicator, Activities that are yet to be confirmed are displayed on the confirmation
screen.
G) Propose Dates for confirmations
Operations confirmation dates are to be proposed by the system as per the lead time, if you select
this indicator.
H) Display Confirmed Dates
Confirmation Dates of previously confirmed before this confirmation is displayed on the screen as
I) Display Defaults for Dates
If you select this indicator, dates that are yet to be confirmed are displayed on the confirmation
screen.
K) Display HR Defaults
The System displays the personnel data for the operations that are to be confirmed. During
confirmations it is a nice idea to enter the personnel data - who was the personnel producing the
production quantities or who is the supervisor during the production activities.
L) Select Operations with status Confirmed
During Operation confirmation, the system throws out an initial pop-up that gives you information
on all the operations and the confirmations made on the operations. Here you have to select the
operation number that you want to confirm if you have not selected one in the initial screen.
If you select this indicator, the system not only selects the operations that are left to confirm, but
also selects all the operations that are previously confirmed.
M) Select Confirmable Operations
In the initial pop-up as explained above, the system only selects those operations which are not yet
confirmed and does not show any information about the operations which are finally confirmed.
N)
Methods to Create a SAP Production order / Process Order
Methods to Create a Production order / Process Order
The following are the methods through which a production order is created:
a) Planned order conversion: When a planned order (Planned order is created through MRP or
manually through MD11) is converted to an Order to execute the production activities.
b) Order is created manually: When you create a Production order or process order manually with
reference to a material code or with reference to a reference to a Sales order (in Process order there
is no option to create with reference to a sales order).
Production order creation transaction codes
Stock Requirement List Individual Display: MD04
Stock Requirement List Collective Display: MD07
Creation of Production order from planned order: Individual Conversion: C040
Creation of Production order from planned order: Collective Conversion: CO41
Creation of Production order from planned order: Partial Conversion: CO48
Creation of Production order from planned order: Individual Display Screen: MD13
Creation of Production order from planned order: Collective Display Screen: MD16
Creation of Production order using a material code: CO01
Creation of Production order using a sales order reference: CO08
Process order creation transaction codes
Stock Requirement List Individual Display: MD04
Stock Requirement List Collective Display: MD07
Creation of Process Order from planned order: Individual Conversion: C0R7
Creation of Process Order from planned order: Collective Conversion: COR8
Creation of Process Order from planned order: Partial Conversion: COR7_PC
Creation of Process Order from planned order: Individual Display Screen: MD13
Creation of Process Order from planned order: Collective Display Screen: MD16
Creation of Process Order using a material code: COR1
Creating a Production Order / Process Order in SAP
Creating a Production Order / Process Order in SAP
Following Text boxes, one by one, will explain SAP Production order / Process Order creation
SAP Order Creation - Order Creation Selection Screen & Order Header Screen
Enter the following in the Order Creation Selection Screen
When you are converting a planned order to a SAP production/process order, there is no necessity
to enter anything on the selection screen. The selection screen entries are required for entry if you
are manually creating an order.
Material
Enter the Material for which you are creating a Production Order for
Production Plant
Enter the Plant code where the production order is to be created.
Planning Plant
This is the plant where order is executed and produced. If the production plant is equal to planning
plant there is no need to enter the planning plant.
If you wish to use the special procurements key like production in alternate plant, you can use
the planning plant as the plant where goods receipt is to take place and the production plant is the
plant where the actual production happens.
Order type
Order type is a like a document type against which you will be producing the order. Order type
contains a list of controls that decide how the order is to be created and processed.
An order type decides the number range of the order, the method in which the Routing/Recipes
and/or the BOM is pulled in the order, documentation of order information and goods movements,
Batch determination search procedures, reservation creation possibilities and the order costing
controls.
Production / Process order number
If the Production order number and the process order number are defined for external numbering,
then in that case you need to provide a number up to 12 characters.
Copy from Option
SAP has provided options to copy from an existing Production order, when it does this it creates
one more order with the same order type, header material code and the same plant. It copies the
component list, the operation list and all the field values from the reference order.
Enter the following in the Order Header Screen : General Tab
If you are converting a planned order to production order, the order is created with the entire order
header fields pre-populated (field values pulled in from the planned order)
If you are manually creating a production order, you would have to enter the values for all the
fields.
Total Quantity
Enter the quantity that is required for production. This quantity is inclusive of the scrap quantity.
The entered order quantity increases by the percentage of scrap entered in the scrap field.
Any assembly scrap percentage maintained in the MRP1 View increases the total quantity and
enters a percentage and quantity in the scrap field. Assembly scrap allows you to produce more
than the ordered quantity to cover for scraps that may occur in the production process during order
execution.
Delivered Quantity
An amount is populated in this field, which is equal to the amount received in to stock for the
order.
Scheduling Types
Forward Scheduling: If Order Start date is entered, the Order Finish Date is derived by the system.
Backward Scheduling: If Order Finish date is entered, the order Start Date is derived by the
system.
Current Date Scheduling: The System plans the order on todays date, both start and finish date are
todays date.
Only Capacity Requirement Scheduling: This option allows you to enter the start and finish dates
as you wish.
Schedule Margin Keys
The Schedule Margin Keys holds the Floats before and after production, the release period given
to the users to release the order from the order start date and the opening period given to the users
to convert the planned order to production order.
The floats in production increase the total lead time of production by adding the floats or buffers to
the lead time.
Order Dates/Times and scheduling types
When you are creating a production order from a planned order, the dates are borne in from the
planned order.
But if you are creating an order manually then these dates are calculated from the task list
(Routing/Recipe) pulled in the order. You can choose a scheduling type as required (or have it
preconfigured in the order type scheduling parameter)
Order Start and Finish date/time & Forward Scheduling
If an order start date is entered and Forward Scheduling is chosen, then the system calculates the
order finish date by adding up the Routing operations standard value times (the system schedules
forward in such cases).
Derivation of the dates based on Routing/Recipe is called lead time scheduling.
Forward scheduling is fit for use when you always have enough capacity available or in the case of
made-to-order when the customer is not so hesitant over the delivery dates (in other words delivery
dates are flexible)
Steps SAP Uses in Calculating the Dates :
Step 1: Enter the Order Basic Start Date
Step 2: Adds the Floats before Production to derive the Schedule Start Date
Step 3: Uses the Routing/Recipe for lead time scheduling to derive the Scheduled Finish Date
Step 4: Add the Floats after Production to derive the Order Basic Finish Date
For example:
If there are 2 operations with some standard values as below and the order quantity is 15 Units:
Routing/Recipe Master Data:
Operation 0010: Casting: 1 HR/Unit
Operation 0020: Finishing and Packaging: 1HR/Unit
Therefore:
Total time at 0010 for executing the order : 1 HR X 15 Units = 15 HRS
Total time at 0020 for executing the order : 1 HR X 15 Units = 15 HRS
Schedule Margin Keys:
If Floats before production = 2 Days and Floats after production = 1 Days
Calculating Dates:
Enter Order Basic Start Date/Time as = 25th Dec 2010 (00:00 AM)
Add 2 Days as Floats before Production: 27th Dec 2010 (00:00 AM) which is equal to = Order
Scheduled Start Date/Time.
Derive the Order Scheduled Finish Date from Lead time forward scheduling :28th Dec 2010
(06:00) as calculated below :
Add 1 Day of Floats after production : 29th Dec 2010 (06:00) = this is the Order Basic Finish
Date
Example illustration :
Operation Scheduled Operation Start Total Operation Scheduled Operation Finish
Number Time
10 25th Dec 2010 (00:00) 15 HRS 25th Dec 2010 (15:00)
20 25th Dec 2010 (15:00) 15 HRS 26th Dec 2010 (06:00)
Order Basic Start Float Order Scheduled Order Scheduled Float Operation Finish
Date s start date Finish date s
25th Dec 2010 2 27th Dec 2010 28th Dec 2010 1 29th Dec 2010
(00:00 AM) Days (00:00 AM) (06:00) Days (06:00)
Order Finish Date /time & Backward Scheduling

If an order finish date is entered and Backward Scheduling is chosen, then the system calculates
the order Start date by adding up the Routing operations standard value times (the system
schedules forward in such cases).
Backward scheduling is fit for use when you always have enough capacity constraints or in the
case of made-to-order when the customer is hesitant over the delivery dates (in other words
delivery dates are fixed)
Steps SAP Uses in Calculating the Dates :
Step 1: Enter the Order Basic Finish Date
Step 2: Subtract the Floats after Production to derive the Schedule Finish Date
Step 3: Use the Routing/Recipe for lead time scheduling to derive the Scheduled Start Date
Step 4: Subtract the Floats before Production to derive the Order Basic Start Date
For example :
If there are 2 operations with some standard values as below and the order quantity is 15 Units:
Routing/Recipe Master Data:
Operation 0010: Casting: 1 HR/Unit
Operation 0020: Finishing and Packaging: 1HR/Unit
Therefore:
Total time at 0010 for executing the order: 1 HR X 15 Units = 15 HRS
Total time at 0020 for executing the order: 1 HR X 15 Units = 15 HRS
Schedule Margin Keys:
If Floats before production = 2 Days and Floats after production = 1 Days
Calculating Dates:
Enter Order Basic Finish Date/Time as = 29th Dec 2010 (06:00)
Subtract 1 Days as Floats after Production: 28th Dec 2010 (06:00 AM) which is equal to = Order
Scheduled Finish Date/Time.
Derive the Order Scheduled Start Date from Lead time forward scheduling: 27th Dec 2010
(00:00) as calculated below.
Subtract 2 Day of Floats before production : 25th Dec 2010 (00:00 AM) = this is the Order Basic
Start Date
Operation Scheduled Operation Total Operation Scheduled Operation Finish
Number Start Time
10 25th Dec 2010 (00:00) 15 HRS 25th Dec 2010 (15:00)
20 25th Dec 2010 (15:00) 15 HRS 26th Dec 2010 (06:00)
Order Basic Start Float Order Scheduled Order Scheduled Float Operation Finish
Date s start date Finish date s
25th Dec 2010 2 27th Dec 2010 28th Dec 2010 1 29th Dec 2010
(00:00 AM) Days (00:00 AM) (06:00) Days (06:00)
Order Start/Finish Dates and Current Date Scheduling
When you do not enter any value for the order start date or orders finish date and choose the
scheduling type as Current Date Scheduling, the system enters the start and finish dates as
todays date.
Order Start/Finish Dates and Only Capacity Requirement Scheduling
When you choose to enter both the order start date and orders finish date manually then in that case
you should choose the scheduling type as Only Capacity Requirement Scheduling.
Order Start/Finish Dates and Forward in Time Scheduling
If order start date/time both are entered and Forward in Time Scheduling is chosen, then the
system calculates the order finish date and time by adding up the Routing operations standard
value times (the system schedules forward in such cases).
The only difference here is that along with Order Start date you can also enter the order start time
and allow the system to calculate the order Finish date and time.
Order Start/Finish Dates and Backward in Time Scheduling
If order Finish date/time both are entered and Backward in Time Scheduling is chosen, then the
system calculates the order Start date and time by adding up the Routing operations standard value
times (the system schedules forward in such cases).
The only difference here is that along with Order Finish date you can also enter the order finish
time and allow the system to calculate the Order start date and time.
Scheduled Start Date
The Scheduled start date is always equal to the Basic Order start date, if floats dont exists. But if
you include schedule margin keys with a value of Floats before production, the scheduled start
date is calculated.
Scheduled Finish Date
The Scheduled Finish date is always equal to the Basic Order Finish date, if floats dont exists. But
if you include schedule margin keys with a value of Floats after production, the scheduled finish
date is calculated.
SAP Order Creation - Order Header Assignment Tab
Enter the following in the Order Header Screen: Assignment Tab
Not a Mandatory Tab for Data Entry: The fields in the assignment tab are not mandatory for entry
by a consultant or user while creating an order.
MRP Controller / Production Scheduler:
Automatically Pulled in: MRP Controller and the Production Scheduler is pulled in from the
header material master. MRP Controller is the person who plans and converts the planned order in
to production order.
If you havent maintained the data in the Material Master of the order material, then you still have
an opportunity to enter it right away in the order.
Supposedly, the job of the MRP controller ends there and the job of the Production scheduler
comes in.
The production scheduler is supposedly the person who manages the order and executes it in the
shop floor. A production scheduler can be the shop floor supervisor.
In many cases the MRP controller and the Production Scheduler is kept as the same.
Configuration: You can configure MRP controllers and Production Schedulers in Transaction
code OPPQ and OPJ9 respectively.
Production Plant / Planning Plant
The Production plant and the planning plant is brought in from the selection screen.
Sales order number / Sales order Line item
If you are in a Made-to-Order Scenario and the production order is created from a requirement
arising from Customer Sales order. You can trace the production order or process order for the
customer sales order, for its progress.
In a made-to-stock scenario there is no connection at all with the customer order or the customer
number. In a made-to-stock situation the production is carried out to stock and supply from that
stock to satisfy any incoming sales order.
Business area
The business area is determined via the division defined in the material master record.
An organizational unit of financial accounting that represents a separate area of operations or
responsibilities within an organization and to which value changes recorded in Financial
Accounting can be allocated.
You can create financial statements for business areas, and you can use these statements for
various internal reporting purposes.
Inspection lot
When you are carrying out inspection at GR from the order, an inspection lot is created at goods
receipt, this inspection lot is updated here.
Planned order
When you are using Material Requirement planning to plan the header material and a planned
order is created to cover the demand and subsequently converted to an order; this planned order
which is used to convert to this order is populated here.
The planned order once converted to production order is deleted from the system and also removed
from the tables. Thus if you try to see this planned order in MD12 or MD13, you wont be able to
see it.
Production Version
When the BOM and the Routing/Recipes are selected in the order from a valid material production
version, then that production version is populated in the order here.
Reservation Number
Once you create the order, even before releasing the order, the system creates a reservation
number for the order which contains the list of components (dependent requirements) which
would be used to manufacture the product. This reservation list reserves these components for
production.
Configuration: You have an option to use these reservations as hard reserving or soft reserving
through the scope of availability settings.
Normally the reservations on components are not hard reservations and these components can be
used across orders.
Uses of Reservations: Reservation list can be used by the warehouse or the materials department to
keep the components ready for production order or process order. Subsequently the same
reservation list can be used for staging the materials to the shop floor for issue to the order.
Transaction code: You can see the reservation in MB23 (you cannot change reservations created
through an order).
Stock Overview: You can see a column in the MB52 or MMBE that suggests the total quantity
reserved for the material.
SAP Order Creation - Order Header Goods Receipt Tab
Enter the following in the Order Header Screen : Goods Receipt Tab
Not Mandatory Tab for Data Entry: This tab is not mandatory for entry by a consultant or user to
create an order.
Stock Type
Automatically populated: Stock type field specifies where the stock would be posted when you
create a goods receipt for the order through MB31 or MIGO transaction codes.
If Quality management is active for the header material master and there is an inspection type
maintained in the material master to support inspection at goods receipt from order, the proposed
stock type in which case is Quality Inspection and if not, the system would always propose
unrestricted stock type (free for use stock type).
The default GR stock type is unrestricted stock type where the stock is free for use.
You can also decide to receive the goods into blocked stock (this can be done manually in the
production order).
Think over it: Though it is also possible that the GR storage location is designed to book receipts
into blocked stock only in which case, the goods will always be posted into blocked stock, no
matter what.
GR Processing time
It is pulled in from the MRP views of the Header Material Master
Goods Receipt Indicator / delivery Complete Indicator
Once GR is done for the order, the indicators are automatically updated.
Goods receipt Storage location
Automatically Updated: If you have included a Production storage location for the header in the
material master MRP 2 View, the same is populated here during order creation.
The second option is to get the Production Storage Location from the Production Version.
If there is no Storage location maintained in Material Master or the Production Version, you can
enter one directly here, though its not mandatory. In which case you will not find any Storage
location defaulted at the time of GR from Order, and you have an opportunity to enter one there.
Batch
If you are creating a Batch Master for the header material at the order header level, i.e., all the
goods receipts which will be created from the order will be mandatorily for this batch.
Why do you create batch at header level : When you are damn sure that you will always use only
one batch to receive goods from an order, then you have an opportunity to fix the batch number in
the production order release or create mode itself. You can also classify this batch with values
which are required to be populated prior to production start. The creation of batch at the header
level may also be required in cases where the product labels are printed prior to goods receipt and
they require the batch number to be on it.
Automatically created : This batch is automatically created when you create or release the order.
But if you want to overwrite it with another batch number you can certainly do so.
Configuration required: For creating a batch at the header level, you have to use SPRO transaction
code CORW, where you can set-No automatic Batch creation, Automatic Batch creation at order
release or Automatic Batch creation at order create. At the same time you can decide to have the
batch classified in the order or not and if you decide to classify the batch it can be either in the
foreground (in the production order screen itself) or in the background. Note that this configuration
is done at a plant & production Scheduler Profile level.
Order Delivery Tolerances
The tolerance value is automatically pulled in from the material master.
These are tolerances with which an order quantity can be received in stock or confirmed in SAP.
If you maintain under-delivery tolerance: This means that the order can be received in stock or
confirmed with a quantity lesser than the order quantity as decided by the under-delivery tolerance
percentage entered in this field.
The final confirmations and the order GR only allows the quantity allowed by the under-delivery
tolerance. For example if the order quantity is 100 and the under-delivery tolerance is 20%, then
the system allows only 80 units to be confirmed in the confirmation screen and once you reach 80
units a CNF status is assigned (fully confirmed status) at the same time once you receive 80 units
in GR, the system assigns a fully delivered (DLV status) to the order and you can receive no more
now.
If you maintain over-delivery tolerance: This means that the order can be received in stock or
confirmed with a quantity more than the order quantity as decided by the over-delivery tolerance
percentage entered in this field.
The final confirmations and the order GR only allows the quantity allowed by the over-delivery
tolerance. For example if the order quantity is 100 and the over-delivery tolerance is 20%, then the
system allows only 120 units to be confirmed in the confirmation screen and once you reach 120
units a CNF status is assigned (fully confirmed status) at the same time once you receive 120 units
in GR, the system assigns a fully delivered (DLV status) to the order and you can receive no more
now.
If you maintain unlimited delivery: You can receive more or less than the quantity required. This is
very risky and must be used when the business is damn sure of what they are doing. This can be a
situation, when the organization does not know how much more or less they might receive from
the order (use this sensibly).
SAP Order Creation - Order Header Control Data Tab & Dates Tab
Enter the following in the Order Header Screen: Control Data Tab
Not mandatory for data entry: This tab is not mandatory for entry by a consultant or user to create
an order.
All the fields in this tab are brought in from order type dependent parameter configuration or order
type scheduling parameter configuration. You dont have to do much here J
Fields values pulled in from Order type dependent parameter configuration
Create Reservations/Purchase Requisition: Defining when the reservations and purchase
requisitions for non-stock material should be created.
Costing Variant Plan:
Costing Sheet ID:
RA key:
Planned Cost Calculations: determines when the planned cost should be created, to be created at
the point of saving or saving after release.
Costing Variant for Actual Costs:
Overhead Key:
Variance Key:
Fields values pulled in from Order type scheduling parameter configuration
The below configuration values are pulled in from the order type scheduling parameters which is
used to control the scheduling and capacity generation for the order.
Calculate Capacity Requirements: If this is selected, then the capacity requirements are generated
for each of the operations/work centers/resources in the order.
Exact Breaks: If this is selected, then Scheduling should consider breaks.
Schedule Automatically: This indicator is set at release, and it means that the order will be
scheduled at the time of saving the order, every time you make a change to the operations details.
Production Scheduling Profile
The Production Scheduling contains a set of control for the production order, it is not mandatory to
maintain a scheduling profile in the order.
Normally a profile is pulled in from the Material Master of the production material. If you have not
maintained one, you still have a chance to maintain one here, in the order.
Actions and control included in the Scheduling profile are:
Automatic Release on Creation
Automatic Linking documents on Creation
Automatic Printing of Order on Release
Automatic Scheduling of Order on Release
Automatic Linking of documents on Release
Automatic Creation of Control Recipe on Release
Automatic Goods Receipt from order during Confirmation of last operation
Allowing confirmation or reservation of only an available partial quantity for components
in component list of an order.
Assign a Capacity Leveling Profile, if you are wishing to use Availability check for
Capacity in the order.
If you wish to use capacity Availability checks in order, then you also need to maintain the
Finite Scheduling indicator.
Controls for Automatic Batch creation in an order and batch classifying settings if required
(specifying automatic batch creation at release or save and classifying in the foreground or
background).
Allowing entering a default order type for the plant while creating an order.
Enter the following in the Order Header Screen: Qtys and Date Tab:
The dates/quantities tab will go on filling in the order specific dates and quantities information.
This is self explanatory.
The master data tab contains the BOM and the Routing/Recipe information which is used to create
the order.
There is one more tab at the end which is called the administrative tab which is stores the
information on who created the order and on which date.
The order header, long text tab is free for use to insert any order specific information in it. Long
text is an unlimited space to enter process or production related values. Unlike the short text, the
long text has no limitation of characters that can be used. The short text normally has only 40
characters to use from.
View the following in the Order Header Screen: Administrative Tab:
This tab gives you information on the date the order was created and the user who created the order
The order operation overview screen contains the list of operations assigned with work
centers/resources and arranged in a sequence of processing.
You can see the operation list only when the Routing/Recipe is pulled in to the order. Nevertheless
you can change the operation list in the order as required.
Adding or Removing Operations:
You can add + you own operations in the order or you can remove operations -, if required.
When you add an operation, it is not mandatory at all the add a work center or control key or a
description, thus you can escape without entering any field values in the operation overview or the
operation detail screen.
Atleast one operation should exist in the Order Operation list: The selection of Routing/Recipe in
an order can be configured as any one of the option in the table below. But when you have chosen
the option where the selection of Routing/Recipe is Mandatory, a task list has to be pulled in the
order, or else the creation of order aborts. But when you have chosen the option of Routing/Recipe
selection optional and a task list selection is not mandatory and the order can still be created
provided you have configured a default operation for the order type. Therefore we can say that the
operation overview of an order requires atleast one operation in it for the order to get created.
The relevance of all the field in an operation overview and operation detail screen is explained in
detail in the SAP Routing/Recipe section of this website:
http://www.sapsword.com/home/learn-sap-pp/sap-routing-recipes
Operation Overview fields in a Production Order:
Operation Number
Sub operation
Work center
Control Key
Standard Text
Operation description
Current Operation Status
Operation Start Dates
Operation Finish Dates
Indicator: whether components are assigned to it
Indicator: whether PRTs are assigned to it
Indicator: whether Trigger points are assigned to it
The Operation Overview field in a Process order contains:
Operation number
Phase number
Resource
Control Recipe Destination
Control Key
Standard Text
Operation/Phase Description
Current Operation/Phase Status
Operation/Phase Start Dates
Operation/Phase Finish Dates
Indicator to show for each operation, whether components are assigned to it
Indicator to show for each operation, whether PRTs are assigned to it
Indicator to show for each operation, whether Trigger points are assigned to it
The Operation detail screen can be accessed to edit or view, in an order by selecting the
operations/s or phase/s, using the following path:
When you add an operation to the order, you have to enter the field values included in the
operation overview screen. These field values in an operation overview or in the operation detail
screen are not mandatory for entry when you add an operation.
All the fields of the operation detail from the Routing/Recipe are pulled in the order and are
arranged in a tabular fashion.
The relevance of all the field in an operation detail screen is explained in detail in the SAP
Routing/Recipe section of this website:
http://www.sapsword.com/home/learn-sap-pp/sap-routing-recipes
Sub-operation dates
This is a display only tab in the operation detail screen and it shows the start dates and finish dates
for the sub-operations assigned to the operation. This option is not included in the process
manufacturing. In process manufacturing you have phases assigned to operations and there is no
trace of sub-operations in process manufacturing.
Quantities/activities
This is a display tab in the operation detail screen and it shows the quantities that are to be
confirmed and that which are already confirmed. It also shows the scrap quantities, both planned
and confirmed.
Confirmed dates
It shows the operation start and finish dates, both planned and confirmed dates.
Assignment of capacity requirements:
At the operation detail level you make assignments of the individual capacities declared in the
work center, i.e. you can actually decide which machine or labor is to be actually used to execute
the operation and also split up the total operation quantity between the capacities. Splitting the
operation quantities between the individual capacities reduces the total operation lead time and
gives you accurate information on the machine or labor that was used for execution. This facility is
only available for discrete manufacturing or repetitive manufacturing (if you use production orders
there).
Scheduling and Capacity Generation in an order:
Operation Scheduling and Capacity Generation: The operation standard values derived (machine
time, set up time, teardown time, utilities consumption) is a direct proportionate of the order
quantity. When you schedule an order, the scheduling formula and the capacity generation formula
for each operation derives the total lead time for each operation. When we add the operation lead
times we get the total order lead time. Note that this has been explained in several topics before.
Planned Costing Requirements: At the same when the system calculates the operation lead times
(scheduling and capacity requirement generation) using the standard values like machine time, set
up time and teardown time, it also calculates the planned cost for each of the standard value (if a
costing formula is assigned to the standard values in the work center/resources).
Planned cost generation example:
For an operation which is assigned to a work center/resource called Finishing, the following
standard value are assigned for a base quantity of 1 Unit
Operation
Data
Brought in
from the
Routing/R
ecipe for
Operation
0020 -
Finishing
Operation Standard Standard Costing Formula assigned to Activity Rate

0020 Value Value for a the work center/resource in assigned to the
Parameters base qty the costing tab cost center for
the work center
Finishing Setup Time 1 HR (Setup time X Operation qty) / $10/HR

Base qty
Finishing Machine Time 1 HR (Machine time X Operation $100/HR

qty) / Base qty
Finishing Water 100 L (Water Required X Operation $1/L

Required qty) / Base qty
Finishing Electricity 1 KWH (Electricity X Operation qty) / $20/KWH

Required Base qty
Costs
derivation at
the operation
0020 -
Finishing
Standard Value for a Order Costing Formula Total Activity Cost

Value base qty Qty for the operation
Parameters
Setup Time 1 HR 100 Units (1 X 100) / 1 HR = 100 HR 100 HR X $10 = $

1000
Machine 1 HR 100 Units (1 X 100) / 1 HR = 100 HR 100 HR X $100 =

Time $10000
Water 100 L 100 Units (100 X 100) / 1 L = 10000 L 10000 X $1 = $10000

Required
Electricity 1 KWH 100 Units (1X 100) / 1 KWH = 100 $100 X $20 = $2000
Required KWH
Total Planned Cost at the $ 23000

Operation
Similarly the costs are calculated at all the operations in the routings.
The Component overview screen contains the List of components pulled in from the BOM. The
quantities are proportionate to the Order quantity. The Quantity required of each component is
called the requirement quantity.
Every component that is pulled in from the Standard BOM would be represented as a Line Item in
the Component overview screen.
When you are in the creation mode of the order, the standard BOM is pulled in and a reservation
list is created by the system which contains these components. A reservation list is a direct copy of
the component list.
Adding or Removing Components
You can add + you own component in the order component overview screen or you can remove
components -, if required. When you add an components, the system forces you to enter the
following:
Operation number to which it should be assigned to
The Item category of the component
The Component quantity required for production of the order quantity
The Unit of Measure of the component if the same is not maintained in the Material Master
or BOM
The Plant of the component is defaulted to the Production Plant of the order, in cases where
you are issuing a component from alternate plant, it would pick up the same from the
material master's Special procurement key - withdraw from alternate plant
If the Component added is a Phantom Header Material, the system needs you to choose
addition of component with BOM Explosion or without BOM explosion. If you add the
Phantom Material with BOM explosion then the components of the Phantom Material
BOM are pulled in the order and if you add the Phantom Material without BOM explosion,
only the Phantom Material itself is pulled in the order
Every Line item in the Component Overview screen contains the following:
Line item number
The line item number normally increases in an increament of 0010. This is configured in the order
dependant parameters.
b) Component
This is the component number brought in from the Standard BOM.
c) Component Description
The component description is the standard component's material master description. This
description cannot be changed in SAP. It can only be changed in the material master change
transaction code.
d) Component quantity required for the order & UOM
Component quantity or the requirement quantity, is the standard BOM quantity multipled by the
Order quantity. Though if there is a scrap quantity maintained at the order level or the component
level, this requriement quantity is increased by the scrap percentage.
You can manually change this quantity in the productin order.
UOM : The component UOM is fetched directly from the standard BOM. This is also know as the
issue UOM. The material when it will be issued to the order, it will be issued in the UOM
mentioned here.
e) Component Storage location as brought in from
This is the component storage location from which the material would be issued to the order.
- the material master: Issue Storage location field or
- the standard BOM: Issue storage location at component level
you can change the issue storage location manually in the order.
f) Component Item Category
- "L" for Stock Item
- "N" for Non Stock Item
- "C" for Class item used in Variant Configuration
If the item category for the component is "N" then the system creates a Purchase requisition (PR)
in the order for the component procurement. This PR is inturn converted to Purchase order (PO).
The item category is also changeable in the order.
Configuration Dependancy for creation of Purchase Requisition:
This setting is also relevant for creation of reservations. Thus we can say that for creation of
reservation and PR, you can configure as following:
-If the Order dependant parameters settings allow for creation of PR/Reservations at order
creation, the option 3 - "immediately" will be choosen.
-If the setting allow for creation "at release", then the PR/Reservations are created at order creation
stage itself.
-If you set it to "Never", the PR/Reservations are never created.
1 Never
2 From release
3 Immediately
g) Component Plant
The component plant in most of the cases is production order plant unless and untill you are using
withdrawl from other plant for the component. To Use Withdrawl from other plant you have to
mark the special procurement key of the component in the material master as "Withdrawl from
alternate plant".
h) Component BackFlush Indicator
If the Component is marked as Backflush component in the material master or in the work center
where it is assigned to, the backflush indicator would be selected.
Though you can select this indicator manually.
If this indicator is set, the component would be issued automatically in the background during
operation or order confirmation.
i) Operation assigned to
The operation to which the component is assigned to will be defaulted in the production order, if
you have done a component allocation in the Routing or Recipe or in the BOM.
If you have not allocated the component to the operations, the system will default to the first
operation number.
j) Requirement date
The Requirement date equal to the operation start date (to which the comopent is allocated to) is
populated for the component. This date can be changed if the operation start date is changed or
rescheduled.
k) Withdrawn Quantity
The Withdrawn quantity is the amount of quantity of the component issued to the order till date.
l) Component Usage Probability
The component usage probability is brought in from the standard BOM.
If the component are placed in an Alternate group with prorities and strategies, the usage
probability will be calculated in the order component overview.
You can nevertheless change this percentage allocation manually.
j) Reservation number & Reservation Item number
Every component in the component overview screen becomes part of the reservation list.
Therefore every component will contain the Reservation number and Reservation Item number.
The Production order reservations cannot be changed. They are only for display.
Configuration Dependancy for creation of Reservations:
If the Order dependant parameters settings allow for creation of Reservations at order creation, the
option 3 - "immediately" will be choosen.
If the setting allow for creation "at release", then the reservations are created at order creation stage
itself.
If you set it to "Never", the reservations are never created.
1 Never
2 From release
3 Immediately
Reservation List and Picking List

The Reservation list created from a production order can only be viewed through the use of
transaction code MB23. You cannot change the order reservation nor create one.
You can use the reservation list to Stage material from Inventory Warehouse to Shop Floor Issue
storage location.
Picking List - For every production order or for every reservation list, a picking list is created.
You can use the picking list to issue material to the production order. Picking list is included in
Tcode MB26.
SAP Order Creation - Releasing the order
Releasing an order:
When the order is under the creation mode or the order is under a change mode, you can release an
order. The Production order header screen or the Operation Screens or the component screens have
a "Green Flag" button on the top to release an order as shown below:
Releasing an order will trigger the following activities:
Releasing an order would change the "CRTD status of the order to "REL"
Releasing would start allowing order confirmations
Releasing would start allowing goods issues to the order
Releasing would start allowing goods receipts from an order
Before Release, the system would carry out an material availability check, if configured:
The Material Availability checks would check the stock availability of all the components and if
the materials are not available the system would generate a "missing part list" showing the
shortage quantities.
As per the Order availabillity checking rules and controls configuration, the system allows or
disallows the Release of order, incase of shortages.
Before Release, the system would carry out an Capacity availability check, if configured:
You can also configure the system to carry out capacity availability checks before release of the
order, through the order avialability checking rule and controls.
But to have the capacity availability checked, you should mark the work centers as relevant to
"Finite Scheduling" and the Production Scheduling profiles and capacity profiles should be
configured for capacity availability checks.
The Capacity Availability checks works only in Orders and through the use of this functionality
you can decide on loading the work centers when they are free and available for use. The system
would prompt the free spaces also.
SAP Order Creation - Saving the order
SAP order creation - Saving the order:
When you are ready to save the Order, you should press the save button at the top of the screen.
Saving the order would save all your changes.
If you have not given any external numbering to the order, SAP will generate an internal number as
shown below.
The following screens would explain you the same:
Goods Issue to Production Order or Process order
Goods Issue to Production Order or Process order
So as to produce a production order quantity or a process order quantity, you need to issue
components in a quantity proposed in the order component list or as proposed in the reservation
list.
The issue of components can happen from the Warehouse or from the storage location near the
Shop floor itself.
A Production order component list is shown below. The reservation list is a replica of the
component list in the order component overview.
Reservation List:
Once you create an order, the system creates a reservation list as shown below. You can access the
reservation list from the order itself or you can access through the transaction code MB23.
The Reservation list created from an order is not editable.
MB23 Initial Screen
Steps in Order Goods issue:
Step 1: Selection Screen
The tranasction code used to issue materials to the order is MB1A through movement type 261 or
you can alternatively use transaction code MIGO through the use of the same movement type 261.
On the selection screen, you should enter the plant, the movement type. Entering the storage
location is optional. Entering a storage location here would default the storage location ID in all
the goods issue that would make.
Remember once you have entered the selection screen values, you should press "To order" or "To
Reservation" button so that you can issue goods to the order and the system proposes all the
components that are to be issued to the order (rather than you entering them manually in the order).
When you press the "to order" or the "to reservations" option, a pop-up box appears that wants you
to enter the order number or reservation number.
Then Press the enter button on the popup or press the "Adopt" Button
The Button - "Issue goods to the order" or "To- Reservation" will automatically propose all the
components required from the reservation list. In short the reservation list proposed in the goods
issue screen helps you not only to issue the correct components in the correct required quantities as
wished in the order, but also clear all the reservations once they are issued completely to the order.
Note - If you forget to enter the movement type and directly press "to-order" or "to reservation"
button, the system would automatically assume the movement type as "261"
Screen Shot explains the selection Screen:
Enter Plant, Movement type, SLOC Press the "to order" or "to reservation" Pop-up Box
Appears Enter the order number or reservation number Press Enter to go to Proposed
Component List
Press the "To Order" or "To Reservation" Button so that the system proposes the Components and
its details:
Pressing the enter button of the Popup in the step 1, will take you to a tabular arrangement that
shows you the component, component quantity, unit of measure, plant and storgae location for
each of the components that are to be issued to the order.
Pressing the "Adopt" Button of the popup in the step 1, will take you to the individual component
details. To access the details of all the components, you have to press the Copy component button
(declaring that the current component is correct and can be issued and the next component can be
accessed) to see the details of the next component.
Step 2: Goods issue item detail screen
What can be edited if you are "issuing to order" - If you are accessing the goods issue by pressing
the "Issue to Order" then you can only edit the quantity that is to be issued to the order.
Screen Shot below: The first half of the screen shot shows the screen that you get after pressing
enter button on the to-order or to-reservation pop-up & the next half of the screen shot shows the
screen that you get after pressing "Adopt + Details" on the pop-up.
Step 3: Press the Save Button or the Post Button:
Pressing the save button or Post button the goods are issued to the order.
Step 4: Saving the Issue creates a Material Document
Pressing the save button or Post button the goods are issued to the order and a material document is
created in the background. The material document contains the details of goods issue and it
contains the accounting documents also. The accounting document contains the GL accounts that
are hit.
The above screen shots gives you details of the material document generated at the bottom of the
screen when you save the issues.
Unplanned Goods Issue to SAP Production order or Process order:
There can be cases in production where:
a) you may want to issue more than the reserved quantity of a certain component or
b) you may want to issue a completely new component (which can be a substitute for the original
component or which may be completely new to the production)
To carry out unplanned goods issue to the production order or process order, you should do the
following:
a) Use transaction code MB1A and enter the movement type 261 and enter the plant code, you can
also enter the storage location if you wish you.
b) Do not press the - "issue to order" button.
c) Instead you can press the "Enter" button or press the "New Item" Button.
d) By pressing the enter or the new item button, you are given a screen to enter the material
number, the quantity, the storage location, and the unit of issue for each of the material you would
want to issue to the order.
e) When you enter the "New item Button", you are given a screen to enter a single component with
quantity that you may want to issue, but if you have multiple unplanned components to be issued to
the order, you should press the "New item Button" again to enter the details for the next
component. But if you press enter, then you are given a screen to enter details for multiple
components.
f) Pressing the save button or the post button will create a material document that contains the
goods issue details and the accounting documents. The accounting document contains the GL
accounts that are hit.
Explaining Unplanned Goods issue through the following screen shots laied one below the
other:
Once you press enter on the selection screen after entering the movement type, the plant and the
storage location details (if requried) you should press the enter button, to come in to the screen 1 as
shown below. Here you would be asked to enter the component number, qty, storage location,
batch number. From this screen, if you are satisfied with the details that you have entered then you
can press the "SAVE" button to post the document.
Screen 2 appears if you have forgotten to enter any details in the first screen or you have pressed
"new item" in the goods issue selection screen instead of pressing the enter button. This screen can
also be seen by pressing the "Magnifying glass". If you are satisfied with the details that you have
entered then you can press the "SAVE" button to post the document.
Screen 3 appears if you press the "Detail Button" which looks like a "Triangle with a full stop on
the top of it". Here you cannot modify any details, but you can press the "SAVE" button to post the
document. Once you post the document, system generates a material document number.
Viewing the Order for Goods Movement details:
Once you have made the Goods issues to the order, you can go back to the order in Order Display
mode and check the goods issues made.
Path - Goto >>> Documented Goods movements (This can be accessed through order header or
order component overview screens)
Note - You can also view the goods movements for order through the transaction code
COOIS/COID for Production orders and COOISPI for Process orders.
Good issue through MIGO Screen
Goods issues can also be made using MIGO screen. The MIGO screen is supposedly created to
replace the MB1A screen in the long run.
Here you should select the A07 - Goods issue Option, R08 - Order Option, and enter the order
number in the next box. Once you select A07 - Goods issues the system will automatically prompt
the movement type 261.
You should press the execute button next to the order number or press F8. When you do this, the
system will pull in all the component details that are required to be issued to the order. In short the
system would propose the components, the quantities, the storage locations and the batches (if it is
batch managed material).
The next step is to "select the items" that are to be issued and press the "check button" to check for
any errors or warnings and then press the "Post button" next to the check button. You could
alternatively press the Post button directly.
Note - You can also press the save button to post the document. This button can be pressed at any
time to post the document. The system will generate the material document number once you
save/post the goods issues.
Example - In our example, we have already issued RM1, RM2, RM3 to the order 1010082, if there
was any other component left for issues we could have issued that through MIGO. But we are
unfortunately left with only one item in the component overview screen and that is a by-product
receipt (see below).
>>> Then the next question is, why do we see the by-product component in the MIGO screen since
we have issued all the components.
>>> The answer is that, SAP has a procedure to receive the byproduct as a "goods issue to order"
from the goods issue screens. Therefore if you run MIGO now for the order, you would osee ne
item left in the goods issue screen and that is the byproduct item which is waiting for receipt
through movement type 531.
Yes Sometimes SAP is Confusing - The By-product is also included for receipts in the
MB1A-261 or the MIGO-261 goods issue screens. Though the byproduct is not an issue, but it is a
receipt, SAP includes this for receipt from the goods issue screens.
MIGO Screen Details:
MIGO goods issue screen contains the document date on which the document is created and the
posting date on which posting is to be made.
In the item details section, it contains the Line item, material number, Quantity, Storage location,
the batch number and the movement type that is being used to receive line item (in our example we
are receiving a by-product which is always received using a goods issue screen).
The "Detail button" at the bottom of the screen gives the details of each and every item you select.
For selecting the item press the Line item number which is the first column.
By-Product Receipts using MB1a - 261:
We have seen how to create Goods issue to order using MIGO screen and Regular MB1A screens
through movement type 261. We have also seen how to create by-product GR from an order using
MIGO screen. Now we will see how to receive by-products receipts using the conventional
MB1A-261. This method is similar to the goods issue to order procedure, except for the following
changes that you have to make.
To receive by-products using MB1a-261, you should press the "To-Order" button or the
"To-Reservations" button and proceed as if you are making a regular goods issue to order. The
only thing that you would have to remember is that, you should enter the order number or the
reservation number in the pop-up and specify in a field a value called "by-products" or "take
by-products in to account".
What Values to select in by-product field - If you just want to post by-products receipts and want
the system to propose the same, then enter "2" and if you want both issues and by-product receipts
to be made then select "1" in the box.
Good issue Reversals:
SAP provides a facility to reverse the wrong goods issues that you have made. Infact all the goods
movements in SAP - goods issue, goods transfer or goods receipts have a reversal feature.
In the case of a Goods issue to order, made using movement type 261, there is a reversal movement
available called 262. You can use the transaction code MB1a-262 or use MIGO-262 to create the
reversals.
Alternatively you can use the transaction code MBST (or use MIGO - Document Cancellation
option) to create the reversals, using MBST not only saves your time, but it also creates a chance to
know the original reference document that was reversed.
If you use the MB1a-262 or MIGO-262, you would not know the material document or the
document item that you are cancelling (due to incorrect issues) and the system would not propose
the reversal details for you. You would have to manually type in the details that you wish to
reverse.
Options Details Details Details
Reversal The System will not propose any

Use this option when The system does not have any
s using reversal details for you. You
you want to create chance to record the original
MB1a- would have to manually type in
partial quantity material document details as
262 or the component, qty, sloc, and the
reversal for an item nothing is provided to the system
MIGO - batch number (if any) that you
issued. during the reversals.
262 wish to reverse from the order.
Since you are cancelling an

You can use this
existing document, the system
option if you want to There is not much of effort
Reversal records the original document as
reverse/cancel the required as you would be
s using reference document in SAP tables
whole document that cancelling an existing document,
MBST such as MIGO. This is a clear
was posted as goods that has its own details.
advantage over the goods issue
issue
reversals process.
The Screen shot below explains the Goods issues cancellation process. While the goods issue
reversal process is same as the goods issue process, where you would have to enter the movement
type as 262 instead of 261.
Importance of Posting Date - You should enter the right posting date during
cancellation/reversals or during the actual posting as the movement or production activities is
booked on the date you select as posting date.If you have made a issue posting on 25th Dec 2010,
then you should reverse using the same day, therefore helping the system to show the correct
goods issue made on 25th Dec 2010. But if you issue on 25th Dec 2010 and reverse the document
on 26th Dec 2010, it could be confusing for you to report the goods issues (it would show more
issues on 25th Dec 2010 and reduce the issues made on 26th Dec 2010). So be Careful :)
Other Notes on Goods Issues
Goods issue and Costing
When you create a goods issue of components through the pick-list or through the Goods issue
transaction codes, you are actually issuing goods required for production, which hold significant
value. At goods issues to the order, the Moving average price of the product (from Material Master
price per unit) is registered as the price of the component for a unit mentioned. Thus for a given
quantity issued to the order, SAP calculates the total cost of the component issued to the order and
assigns that cost as the cost of raw materials. This is done for all the components issued to the
order.
When the order is created in SAP, the system calculates the planned cost of the production for
the raw material consumption, using the moving average price for the component, set in material
master. SAP Understand the planned components and their quantities from the reservation list
created for the production of the order.
Similarly when the actual goods issues are created for the order with the actual quantities, the
system again calculates the actual cost of production using the moving average price for the
component, set in material master. SAP Understand the actual goods issues from the order goods
issue tables such as AUFM.
SAP would eventually add the material cost, the activity cost, the overheads (if any), to arrive at
the total cost of production. This is carried out for the planned as well as the actuals and the
difference in value between the planned values for material cost and the activity cost, the
overheads is tranferred to a price difference account. This is carried out for all the orders on the
shop floor. These costs are eventually settled on the material account.
For Example:
Deriving Planned Raw Material cost:
Thus if you three components planned for issue to the order with the quantities shown below, the
planned cost would be:
C1 = Planned Qty -100 Units (Per Unit price = $2) = Planned Cost = $200
C2 = Planned Qty -50 Units (Per Unit price = $0.5) = Planned Cost = $25
C3 = Planned Qty -200 Units (Per Unit price = $1) = Planned Cost = $200
The Total Planned cost of Raw Material = $200 + $25+ $200 = $425
Deriving Actual Raw Material cost:
The actual cost of production is derived from the actual issues of raw material as shown below,
with the actual costs:
C1 = Actual Qty -110 Units (Per Unit price = $2) = Actual Cost = $220
C2 = Actual Qty -60 Units (Per Unit price = $0.5) = Actual Cost = $30
C3 = Actual Qty -200 Units (Per Unit price = $1) = Actual Cost = $200
The Total Actual cost of Raw Material = $220 + $30+ $200 = $450
SAP PP/PPPI Order Confirmations
SAP PP/PPPI Order Confirmations:
The order in its life cycle goes through the following steps:
Create Order >>> Release Order >>> Issue PRT's to Order for Production >>> issue Goods to
Produce Order >>> Create Operation Level Confirmations (Partial or Final Confirmations at each
operation) >>> Confirm the last Operation for produced quantities >>> jReceive Goods into Stock
>>> Deliver Goods to Customer
Order confirmations is what we will be talking about in this section.
Order confirmations can be carried out on a real time basis or you can record order confirmations
every shift or every day. It is wise to record the order confirmations on a real time basis, but
recording shift wise or day wise isn't bad either. But recording the confirmations weekly or
alternate days does not reflect any real time information for superiors (bosses) who are viewing
reports and information from SAP.
Purpose Of Confirmations:
When you would actually start learning SAP PP/PPPI, you may get confused that order
confirmations is about receiving goods in to stock. But this is a totally wrong perception that
people carry.
Order confirmations is about:
a) declaring the quantity that is produced, the quantity that is scrapped and the quantity that
requires reworking.
b) It is also about confirming the total activity hours put in to producing the sub-assembly or
assembly thereby deriving the order costs through activity based costing procedures.
c) And it is also about recording the personnel data responsible in producing the stock.
In short the following is recorded during order confirmations:
a) Yield Quantities
b) Scrap Quantities
c) Rework Quantities
d) Total Activity Hours utilized at the operations
e) Personnel responsible for production.
f) Actual Dates
g) Along with the above, you can also enter the actual values for any other activity included in the
work centers standard value key, for example you can enter the steam consumed, electricity
consumed, water consumption, if they are declared as one of the 6 allowed activities in the
standard value key of the work center.
h) The system posts automatic goods movements of all the components assigned to the operation
in the order task list. We call this backflushing of components during order/operation
confirmations.
i) The system also post automatic goods receipt of quantities during final confirmation of the final
operation, for the final operation in the order task list which is assigned with a control key for
Auto-GR or for an operation which is a part of an order whose Production scheduler profile is
configured for Auto-GR)
Prerequisites to create Confirmations:
The following are the prerequisites to create confirmations in SAP.
a) The control key assigned to the operation in the task list should allow confirmations as
necessary or possible or as Milestone Confirmations.
b) The Work center associated with the operations may or may not have activities assigned. But if
it has activities assigned (6 or less than 6 activities) you would need to confirm them.
c) To carry out milestone confirmations, you should have a control key marked with "Milestone
confirmations allowed" assigned to the operation. Once you confirm a certain operation in a task
list which is marked for milsetone confirmations, it would automatically confirm all the operations
above it or in other words it will confirm all the operations from this milestone operation to the
earlier milestone operation only.
d) For Backflush of components or automatic goods issue of components from an operation during
operation confirmation, you should assign the components to the operations in the order task list or
the task list master data. (task list means Routing or Master Recipes, Rate Routings, or reference
sets) & mark these components as Backflush components or mark the work center of the operation
as "Backflush Work center".
e) For Auto-GR from the final operation (when you create final confirmation on the final
operation) you should assign the operation with a control key that allows Auto-Goods-Receipt or
you should alternatively have an "Production Scheduling Profile" for the order which is configured
to allow Auto-GR.
Recommendations in creation of Confirmations:
a) To carry out Milestone confirmations, you should always check the sequence of confirmations
and configure the order type to check the sequence of operation confirmations.
b) Checking on, sequence of operation in operation confirmations (configuration) would help
organizations to follow the sequence of operation confirmations as marked in the order's task list.
This is more-so-ever useful when you have too many operations arranged one of the other in the
task list and adhering to their sequence is useful in maintaining records.
c) If you are playing with issue of backflush items, it is recommended that you should error out
confirmations because of errors in backflush goods movements, instead you allow the goods
movements to be re-processed/corrected later on. Such failed movements go and sit in a
transaction called "COGI" in SAP, where you can manually correct them or reprocess such failed
movements.
d) If there is any error in activity costing, it is recommended that you should stop or abort the
confirmations. Only correcting the data through different transactions should allow you to process
the confirmations. This makes sense since errors in activity confirmations means creating errors in
order costing.
e) Configuring for proposing the quantities, dates and activities would help you during creation of
confirmations.
Ways to create Confirmations:
There are different ways to create confirmations:
a) Operation Level Regular Time Ticket confirmations:
In this method, you would be confirming each and every operation for quantities, activities and
personnel, as and when it is produced on the shop floor. You can confirm for partial quantities or
partial activities at an operation or you can confirm for total final quantity and/or activities at an
operation.
Steps in Confirmations:
Use the standard SAP transaction code CO11 in SAP PP and Use the standard SAP transaction
COR6N.
In the case of Process order, the confirmations are created for the Phases and not for the operations.
The operations in Process orders are included in the task list as information or as a superior place
holder for the subordinate phases. The phases are allocated to the operations. All the Activities and
quantities are placed on the phases and therefore we confirm the phases.
Enter Order number, Operation number (Optional), existing confirmation number (optional) >>>
Press Enter >>>
Pop-up Appears to select the operation number that you want to confirm >>>
Select the Operation number that you want to confirm and press enter on the pop-up box >>>
Enter Quantities confirmed like the Yield Quantity (Good Quantity Produced) and/or Enter the
Scrap Quantity (Bad Quantity that is produced and needs to be scrapped and/or the Enter the
Rework Quantity (Bad quantity that needs to be reworked). Opting for planned operation
Quantity Proposals during confirmations (in configuration), can propose quantities and help you
when you are entering actual quantities. Also select the confirmation type in the quantities tab,
whether it is partial confirmation or final confirmations. If you have configured automatic
confirmations, then the system will automatically select based on the quantities confirmed.
Enter the dates, the actual start date (Good Quantity Produced) and the actual finish date in the
dates tab. Opting for planned dates proposals during confirmations (in configurations),
can propose planned dates and help you when you are entering the actual dates.
Enter the Values for the Activities assigned to the operation in terms of unit of Entry. If the
Activity is "Set up Time" enter the actual set-up time consumed. If the activity is "Machine Time"
enter the actual Machine time required consumed to produce the quantities and if the activity is
something else like the steam consumed or the electricity consumed or water consumed, enter
the actual values for them.Opting for Activity Value Proposals during confirmations (in
configuration), can propose planned activity values (in activity UOM) and help you when you
are entering the actual activity values.
Enter the Personnel Number in the Personnel/additional data tab who was involved in the
production activities, it can be person producing the item or it can be the supervisor. You also
have an option to enter a posting date for the created confirmations. You can enter a future date
if such is allowed in the order type confirmations parameters configurations. >>>
Then Press the Save Button to Save the confirmations. The system generates
a confirmation number when you save >>>
On saving the system generates a counter number for the
confirmations created. Every confirmation that you create will
have a confirmation counter number generated against the
same confirmation number.
Note -
a) In the selection screen, you have an option to enter the order number or the confirmation number
to create the confirmations in SAP.
b) Every Saved confirmations will have a confirmation counter created. The confirmation counter
stores the details of the confirmations. You can retrieve confirmation information on the basis of
an operation, or on the basis of operation & counter or operation.
c) The System posts Goods issues for backflush components assigned to the operation in the
production order task list when you save the confirmations.
If there are any errors in the Goods issues (like the batch is missing, the storage location is missing,
periods closed for goods movements, quantities available in storage locations specified) you can
correct the errors (if you have confirmed for error correction in confirmations screen) or you can
terminate goods issues (if you have configured for termination) or you can allow it to go for
reprocessing which means that the system would successfully create confirmations and would fail
any goods issues for missing data, which would later be grouped together for reprocessing in an
SAP transaction code called COGI.
Here in the COGI transaction code, you can correct the errors for the order goods issues and post
the goods issue again.
d) The System posts Goods Receipts for the header material of the order during the Final
confirmation of the final operation if the final operation in the order task list has a control key
allowing Auto-GR or the order has a production scheduler profile allowing Auto-GR.
If there are any errors in the Goods Receipts (like the batch is missing, the batch has missing
characteristics values for required characteristics, the storage location is missing, periods closed
for goods movements) you can correct the errors (if you have confirmed for error correction in
confirmations screen) or you can terminate goods receipts (if you have configured for termination)
or you can allow it to go for reprocessing which means that the system would successfully create
confirmations and would fail any goods receipts for missing data, which would later be grouped
together for reprocessing in an SAP transaction code called COGI.
Here in the COGI transaction code, you can correct the errors for the order goods receipt and try
posting the goods receipts again.
e) The posting date of the confirmations is used for posting the goods movements.
f) Also if there are any errors in Activity postings, you can configure the system to allow
corrections or to terminate the confirmations. According to me, it looks very sensible to terminate
the confirmations, if there are any issues in activities.
b) Order Level Regular Time Ticket confirmations:
In this method, you would be confirming the whole order in a single given instance for a given
quantity and activity. These confirmations can be partial or final confirmations. When you are
confirming at the order level, the system automatically confirms all the operations in the order.
Every that is discussed in the Operation level Time ticket confirmations in true for Order level
confirmations.
When you confirm an operation at order level, all the operations in the list are proportionately
confirmed for quantities and activities.
Note:
a) If you have already confirmed at the operation level, you cannot confirm at the order level.
b) If you have already confirmed at the order level, you cannot confirm at the operation level.
c) The Order level confirmations are easy in cases where you have just one operation assigned to
the order, or you have many operations assigned to the order with the final operation marked as
Milestone Operation.
d) Also it is much easier for users to record confirmations on the order level.
c) Operation Level Milestone Confirmations:
In this method, the system automatically confirms all the operations from one Milestone operation
(you confirm) till the preceding milestone operation only. As an example if you have 5 operations,
0010, 0020, 0030, 0040, 0050, with operation number 0050 and 0030 declared as milestone
operations and if you confirm operation 0030 with a partial quantity 20 Units, the operations 0020
and 0010 are also confirmed with partial quantities of 20 Units.
You can mark an operation as milestone operation through the use of control keys inserted in the
order routing.
In other words, Milestone confirmation means that if you confirm a certain operation in a task list,
it would automatically confirm all the operations above it or in other words it will confirm all the
operations from this milestone operation to the earlier milestone operation only.
Illustration:
Confirmation of Confirmation of
Operation Work Center Control Key
Operation 0070 Operation 0040
Auto Confirm Optn

Operation 0010 Work center 1
0050
Auto Confirm Optn

0060
Auto Confirm Optn

0060
Milestone Manually Confirm

Operation Milestone Optn 0040
Auto Confirms Optn

0060
Auto Confirms Optn

0070
Milestone Manually Confirm

Operation Milestone Optn 0080
Explanation to the above example -

If you confirm the milestone Operation 0040 through Order level confirmations or operation level
confirmations, then the system would automatically confirm operations 0040 + operation 0030 +
operation 0020 + operation 0010.
If you confirm the milestone Operation 0070 through Order level confirmations or operation level
confirmations, then the system would automatically confirm operations 0070 + operation 0060 +
operation 0050.
Others
Order status through Confirmations:
When you create partial confirmations, the order gets a status "PCNF" and the Operation gets a
status - "PCNF".
If you have an order with 3 operations - 0010, 0020, 0030 with quantities equal to 100 at each
operation (operation qty = order qty).
Follow the table to know the changes in system status during confirmations:
Operatio Operation Confirmation Confirmation Confirmation Operation Order

n Qty Step Counter Type Status Status
0010 60 1 01 Partial PCNF PCNF
0010 40 2 02 Final CNF PCNF
0020 20 5 03 Final CNF PCNF
0030 70 7 02 Final CNF CNF
Canceling Confirmations:
In SAP, you cannot reverse the confirmations, you can only cancel them. You cannot reverse
partial quantities or activities for a confirmation. You can only cancel the confirmation and redo it.
Confirmations in SAP are stored at counter level. Every counter is a partial confirmation or a
confirmation that you have created in the system.
When you cancel confirmations in SAP, the system cancels the quantities confirmed, the activities
confirmed, the dates confirmed, the personnels confirmed, and any other data that's lying on the
created confirmations counter.
The confirmations Counter that is canceled is marked as canceled in SAP with "Reversed
indicator" assigned to it.
To cancel confirmations you can use CO13 Transaction code in SAP PP and CORS Transaction
code in SAP PPPI, to Cancel Confirmations.
The Following Table in SAP explains Cancellation of Confirmations in SAP.
Opera Confirm Confirm Operati Posti

Oper Rev Order
tion ation ation on ng Comments
ation erse Status
Qty Counter Type Status Date
14.03.
0010 60 01 Partial PCNF PCNF
2010
14.03.
0010 40 02 Final CNF PCNF
2010
Rev Reversing a Final Confirmation

15.03.
0010 40 02 erse PCNF PCNF Counter would set back the
2010
d Operation to PCNF
15.03.
2010
15.03.
2010
15.03.
2010
16.03.
2010
16.03.
2010
Rev
16.03.
0030 30 01 erse PCNF PCNF
2010
d
16.03.
2010
16.03.
2010
16.03.
0030 70 04 Final CNF CNF
2010
Note - Canceling the Confirmation Counter in SAP, also reverses all the goods movements that
have been created during the confirmations. If you have posted backflushes (movement type 261)
then cancellation of the confirmation would result in reversals of the goods issues (movement type
262). If you have created goods receipt during operation confirmation, then the cancellation of
such confirmation would result in posting the reversal of goods receipt (movement type - 102).
The posting date of the confirmations is used for posting the goods movements.
Displaying Confirmations:
You can display confirmations that you have created for an order. In the Display mode, you should
enter the Confirmation number or the order number. Selecting the Operation number is optional.
You can also select the sub-operation number for which you want to display the confirmations.
Transaction code - C014 in SAP PP and CORT in SAP PPPI.
When you are displaying confirmations in SAP PPPI, you should select the phases instead of the
operations. There is also an option to select the secondary resources for which confirmations are
made.
Did you mark the Wrong Confirmation type during Confirmations?
Don't worry if you have marked the wrong confirmation type during the confirmation creations. If
you have entered a final confirmation as "Partial" and a partial confirmation as "final", you can
rectify the same. Follow the method below to rectify the same.
Note - In the case of SAP PPPI, you should select the phases rather than selecting the operation
number to enter in to confirmations.
Enter the Confirmation number or the order number (you can also enter the operation
number/phase if you want). The system in all likely cases would throw a message, saying that the
order or operation or phase is already confirmed and do you want to proceed. You should press the
yes/proceed button>>>
Select the Operation number/Phase number on the Pop-Up for which you want to change the
confirmation type, if you are confirming at the order level, you will not get this pop-up >>>
Press Enter Button on the Pop-up Screen after selecting Operation/Phase >>>
Enter the Yield as "Zero" Quantity or leave it blank. Then Select the Right
Confirmation Type (in other words correct the confirmation type)
Enter the correct Posting date for the confirmations. You may want to enter
the posting date that was used for the original confirmations you made with
the wrong confirmation type.
You can also enter a Confirmation text to record to comment on the
changes made >>>
Press Save to Save the confirmations. This will change the
Confirmation type for you.
Note -
a) Alternatively you can cancel the wrong confirmations because of the wrong confirmation type
and re-created a new confirmation for the operation or order.
b) You can use this for both Operation confirmation and Order confirmations.
c) The system in all likely cases would throw a message when you press enter on the selection
screen, saying that the order or operation or phase is already confirmed and do you want to
proceed. You should press the yes/proceed button to proceed.
Did you Enter Wrong Activity type during Confirmations
Dont worry if you have missed entering the activities for a certain confirmation created or you
want to correct the data for activities, for confirmations, that you have already entered. Follow the
method below to rectify the same.
Enter the Confirmation number or the order number (you can also enter the operation
number/phase if you want). The system in all likely cases would throw a message, saying that the
order or operation or phase is already confirmed and do you want to proceed. You should press the
yes/proceed button >>>
Select the Operation number/phase on the Pop-Up for which you want to enter/change the
activities
data, if you are confirming at the order level, you will not get this pop-up >>>
Press Enter Button on the Pop-up Screen once you have selected >>>
Enter the Yield as "Zero" Quantity or leave it blank.
Enter the activities data as you wish to.
Enter the correct Posting date for the confirmations. You may want to enter
the posting date that was used for the original confirmations you made with
the wrong confirmation type
You can also enter a Confirmation text to record to comment on the
changes made >>>
Press Save to Save the confirmations.
Note -
a) Alternatively you can cancel the wrong confirmations because of the wrong activities and
re-created a new confirmation for the operation or order.
b) You can use this for both Operation confirmation and Order confirmations.
c) The system in all likely cases would throw a message when you press enter on the selection
screen, saying that the order or operation or phase is already confirmed and do you want to
proceed. You should press the yes/proceed button to proceed.
Confirmations on a future date:
Future dates can be configured in the confirmation configuration. In configuration OPK4, define
confirmation parameters, When this configuration comes up, in the "Checks" Sections, the last
parameter says "Date in the future." You need to check this box if you want your confirmation
dates to exist in the future. It determines whether dates in the future can be used in a confirmation.
If the indicator is not set, you cannot make any confirmations using dates in the future.
SAP PP/PPPI Goods Receipts from Order

SAP PP/PPPI Goods Receipts:
When you produce something against an SAP order (Production order or a process order) you
would first confirm the operations or phases (or confirm the whole order) and then bring to stock
quantities which are produced through all the given operations/phases.
Confirmations in SAP does not necessarily bring goods to stock unless you have planned for Auto
Goods Receipts from the final operation/phase in the order task list.
Goods receipt in SAP, stocks the produced quantities from a production order in to storage
locations.
When the produced goods are brought to stock they are priced at the material master's current
standard cost or variable price derived at the time of goods receipts as per the costing method in the
material master accounting 1 view. A goods receipt from an order is a credit from an order, while a
goods issue to an order is a debit on the order.
Order Status for Goods Receipts:
The system status or user status set on the order should allow for goods movements; to be more
precise it should allow for goods receipts. The System status TECO would allow goods receipts
from an order, but the system status CLSD or closed would not allow any goods receipts from an
order.
When a Goods receipts (GR) is created for the order, the system checks whether it is a goods
receipt for partial quantity or for full order quantity. If the GR is for partial quantity, the system
allocates a system status - PDLV on the production order header (provided there are no delivery
tolerances set). If the GR is for the full quantity of the order, the system allocates a system status -
DLV (provided there are no delivery tolerances set).
For example:
If the order quantity is 100 and you receive 70 from the order, the status PDLV is set on the order
header. If the next 30 is received from the same order, the system allocates a status DLV to the
order header.
Other Things to note for Goods Receipts:
Note the following points:
a) The goods receipt storage location would be pulled-in/used from the order header goods
receipt tab. This storage location is pulled in from the material master MRP 2 view - Issue Storage
location field value. The field value represents the issue storage location for the components and
GR storage location for the finished or semi-finished materials.
Dangerous Situation - What happens when the item is a semi-finished item which is received
in one location and issue from another location to the next production?
Answer - In such a case you can also use the issue storage location field in the BOM item details or
you can use the issue storage location in the production version of a material. Though priority is
given the issue storage location of the material master.
b) The Quantity that is to be received from an order, is normally the order quantity + or - the
delivery tolerances noted on the order goods receipt tab.
Once the goods receipt for the order quantity is made the system would call that as final delivery
and tag this receipt with a "delivery completed indicator" and change the order status to DLV.
If you wish to receive more from the order which has an overdelivery tolerance included, the
system will not let to receive more from the order. Though there is a method to receive that extra
quantity for the order corresponding to the overdelivery tolerance specified by executing the goods
movement with "Suggest Zero Lines". Suggesting Zero Lines, opens up the goods receipt
movement without proposing any quantities, nevertheless you can only receive till the over
tolerance limit and cannot receive beyond that.
For example if the order quantity is 100 and over delivery tolerance is 10, then on receiving 100,
the system marks delivery as completed and puts on a DLV status on the order, now if you want to
receive more that extra 10 units, you should execute goods receipt with "suggest zero lines"
(though you cannot receive more than 10 in any case).
On the other hand, when you receive less than the order quantity and equal to the underdelivery
tolerance, the system would declare the goods receipt as 'final delivery' and change the order status
to DLV. But if you want to complete receiving the order quantity you can use the "suggest zero
line indicator" and receive the order quantity.
For example, In a case when the order quantity is 100, the underdelivery tolerance is 10, the
overdelivery tolerance is 10, and if you receive 90 units the system would put on the "delivery
completed indicator" and mark the order with the DLV status and wont let you receive the
remaining quantities from the order (order quantity or overdelivery quantities). Now to receive
that 10 units more from the same order (completing order quantity) or 20 more units from the same
order (equal to overdelivery tolerance), you should use the "suggest zero line" concept.
c) The Material number and the plant of the goods receipt is the order header material and the plant
of the order.
d) Automatic Goods receipt for an order is carried out if the final operation in the order task list is
set for Auto-GR or the production scheduler profile of the order is configured for Auto-GR.
Automatic Goods receipt is carried out when you confirm the final operation. The confirmation
quantity is received in stock in the case of automatic goods receipt from an order.
e) When you receive goods in stock through a goods receipt the system would ask for a batch
number for a batch managed material. If the batch number is already entered on the order header,
then you are not allowed to enter one during goods receipt; in this case all the goods receipt that are
made from a given order would always carry a single batch number that is defaulted on the order
header.
SAP Goods Receipt Batch Number:
If a Batch number is not assigned to the order header, then you can receive goods in multiple batch
numbers, i.e., every goods receipt can have a different batch number assigned.
SAP Procedure to receive goods in stock:
In SAP, you use the transaction code MB31 to receive goods in stock from a production order. The
production order status should allow for goods receipt.
Follow the procedure to receive goods in stock:
Step 1:
Enter the Plant of GR, the Order number (optional) and the storage location (optional), the correct
Posting date and the document date (date on which you are posting the document)
Step 2:
Then Press the "To-Order" Button on the selection screen if you have not entered the order number
on the selection screen. Here you should enter the order number and optionally you can also enter
the storage location.
Press Enter on the pop-up screen to enter in to the goods receipt main screen.
Step 3:
In the GR main screen, the system proposes the order number, the quantity, the storage location (if
data already entered/exits in order header), the batch number (if the batch number already was
entered at order header level).
You can also enter the quantities in an alternate unit of measure if an alternate unit of measure is
set in the material master.
During the Goods Receipt from an order, you can also enter the Batch characteristics values if the
batch classification is allowed in the foreground.
Step 4:
Then press the Save Button to Save the Goods receipt. Once you save the GR, a material document
is created by the system.
The material document would contain an accounting document.
Enter SAP Goods Receipt for multiple orders:
In the MB31 Transaction code, for goods receipt, when you press the "To-Order" Button to receive
goods from order, the system would open up a pop-up to enter the order number/s from which you
want to goods from.
In this pop-up, you have an option to enter up to 6 orders from which you want to receive goods
from, at the same time.
This can be useful..... :)
Follow the steps:
Enter the Plant of GR, the Order number to be received in stock (optional) and the storage location
(optional), the correct Posting date and the document date (date on which you are posting the
document)
>>>
Press the "To-Order" Button on the selection screen if you have not entered the order number on
the selection screen. Here you should enter the order numbers and also enter the storage location
optionally. The System gives you an option to enter Goods receipts for 4 Orders
Enter SAP Goods Receipt from Confirmations (AUTO GR):
When you create an Auto-GR from an order on confirmation of the final operation in the order, the
system treats the same as a regular goods receipt from an order and allocates the regular GR ststus
on the order. A Material document is created on saving the confirmations.
Method:
Enter the transaction code that would create order confirmations or operation confirmations for an
order
>>> Enter the Order number or the Confirmation number or the operation Number and press enter
>>> Enter the Yield Qty and enter data for other fields as required
>>> Once you enter the yield quantity, the system sets the
proportionate quantities for 101 GR from order in the goods
movement TAB of confirmations.Nevertheless you can
manuallly change these qunatities in the Goods Movement
Tab. You can even Make it ZERO.
>>> Press Save Button to Save.
A Material Document is created
Others
Good Receipt Reversals/Cancellations:
SAP provides a facility to reverse the wrong goods receipts that you have made. Infact all the
goods movements in SAP - goods issue, goods transfer or goods receipts have a reversal feature.
In the case of a Goods receipts from order, made using movement type 101, there is a reversal
movement available called 102. You can use the transaction code MB31-102 or use MIGO-102 to
create the reversals.
Alternatively you can use the transaction code MBST (or use MIGO - Document Cancellation
option) to create the reversals, using MBST not only saves your time, but it also creates a chance to
know the original reference document that was reversed.
If you use the MB1a-262 or MIGO-262, you would not know the material document or the
document item that you are cancelling (due to incorrect receipts) and the system would not propose
the reversal details for you. You would have to manually type in the details that you wish to
reverse.
Options Details Details Details
The System will not propose any

Reversal
Use this option when reversal details for you. You The system does not have any
s using
you want to create would have to manually type in chance to record the original
MB31-
partial quantity the Material code, qty, sloc, and material document details as
102 or
reversal for an items the batch number (if any) that nothing is provided to the system
MIGO -
received. you wish to reverse from the during the reversals.
102
order.
Since you are cancelling an

You can use this
existing document, the system
option if you want to There is not much of effort
Reversal records the original document as
reverse/cancel the required as you would be
s using reference document in SAP
whole document that cancelling an existing document,
MBST tables such as MIGO. This is a
was posted as goods that has its own details.
clear advantage over the goods
receipts
receipt reversals process.
Importance of Posting Date -

You should enter the right posting date during cancellation/reversals or during the actual posting
as the movement or production activities is booked on the date you select as posting date.
For example: If you have made a issue posting on 25th Dec 2010, then you should reverse using
the same day, therefore helping the system to show the correct goods issue made on 25th Dec
2010. But if you issue on 25th Dec 2010 and reverse the document on 26th Dec 2010, it could be
confusing for you to report the goods issues (it would show more issues on 25th Dec 2010 and
reduce the issues made on 26th Dec 2010). So be Careful :)
Receiving Overdelivery or underdelivery from an Order:
The Quantity that is to be received from an order, is normally the order quantity + or - the delivery
tolerances noted on the order goods receipt tab.
Once the goods receipt for the order quantity is made the system would call that as final delivery
and tag this receipt with a "delivery completed indicator" and change the order status to DLV.
Receiving More than the order quantity corresponding to Over-delivery Tolerance:
If you wish to receive more from the order which has an overdelivery tolerance included, the
system will not let to receive more from the order. Though there is a method to receive that extra
quantity for the order corresponding to the overdelivery tolerance specified by executing the goods
movement with "Suggest Zero Lines". Suggesting Zero Lines, opens up the goods receipt
movement without proposing any quantities, nevertheless you can only receive till the over
tolerance limit and cannot receive beyond that.
For example if the order quantity is 100 and over delivery tolerance is 10, then on receiving 100,
the system marks delivery as completed and puts on a DLV status on the order, now if you want to
receive more that extra 10 units, you should execute goods receipt with "suggest zero lines"
(though you cannot receive more than 10 in any case).
Receiving Less than the order quantity corresponding to Under-delivery Tolerance:
On the other hand, when you receive less than the order quantity and equal to the underdelivery
tolerance, the system would declare the goods receipt as 'final delivery' and change the order status
to DLV. But if you want to complete receiving the order quantity you can use the "suggest zero
line indicator" and receive the order quantity.
For example, In a case when the order quantity is 100, the underdelivery tolerance is 10, the
overdelivery tolerance is 10, and if you receive 90 units the system would put on the "delivery
completed indicator" and mark the order with the DLV status and wont let you receive the
remaining quantities from the order (order quantity or overdelivery quantities). Now to receive
that 10 units more from the same order (completing order quantity) or 20 more units from the same
order (equal to overdelivery tolerance), you should use the "suggest zero line" concept.

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Why do you create SAP Production Order or Process Order

Criteria to create an Order: Think over it

A Finished Product B Semi-finished C Semi-finished

SAP Production Order / Process Order for finished Products:

A Finished Product B Semi-finished C Semi-finished

A Finished X Phantom Material Y Phantom Material

B = -ve Qty (byproduct) C = -ve Qty (byproduct)

Step 2: Component assignment in the task list

Selection by order quant.

1 Selection by explosion date

2 Selection by production version

3 Selection only by production version

Selection by order quant.

1 Selection by explosion date

2 Selection by production version

3 Selection only by production version

Define Order type and Order type Dependant Parameters

01 1 N 1 - Production 4 Released (general)

01 2 N 1 - Production 2 Released (order)

01 4 R 1 - Production 2 Released (order)

01 5 2 1 - Production 4 Released (general)

01 6 2 1 - Production 2 Released (order)

What the above table or selection ID means -

Selection ID Selection Priority BOM Usage

The Selection ID is assigned to the BOM Application as shown below:

Configuring Order Type Number Range

The following scheduling parameters are included:

Order Finish Date /time & Backward Scheduling

Operation Standard Standard Costing Formula assigned to Activity Rate

Finishing Setup Time 1 HR (Setup time X Operation qty) / $10/HR

Finishing Machine Time 1 HR (Machine time X Operation $100/HR

Finishing Water 100 L (Water Required X Operation $1/L

Finishing Electricity 1 KWH (Electricity X Operation qty) / $20/KWH

Standard Value for a Order Costing Formula Total Activity Cost

Setup Time 1 HR 100 Units (1 X 100) / 1 HR = 100 HR 100 HR X $10 = $

Machine 1 HR 100 Units (1 X 100) / 1 HR = 100 HR 100 HR X $100 =

Water 100 L 100 Units (100 X 100) / 1 L = 10000 L 10000 X $1 = $10000

Total Planned Cost at the $ 23000

Reservation List and Picking List

Options Details Details Details

Reversal The System will not propose any

Since you are cancelling an

Auto Confirm Optn

Auto Confirm Optn

Auto Confirm Optn

Milestone Manually Confirm

Auto Confirms Optn

Auto Confirms Optn

Milestone Manually Confirm

Explanation to the above example -

Operatio Operation Confirmation Confirmation Confirmation Operation Order

0010 60 1 01 Partial PCNF PCNF

0010 40 2 02 Final CNF PCNF

0020 40 3 01 Partial PCNF PCNF

0020 40 4 02 Partial PCNF PCNF

0020 20 5 03 Final CNF PCNF

0030 30 6 01 Partial PCNF PCNF

0030 70 7 02 Final CNF CNF

Opera Confirm Confirm Operati Posti

Rev Reversing a Final Confirmation

SAP PP/PPPI Goods Receipts from Order

Options Details Details Details

The System will not propose any