Basics of MRP Area

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Rohit Singh
July 1, 2015 8 minute read
Basics of MRP Area

54 Likes 73,846 Views 35 Comments
The purpose of this document is to explain the basics of MRP area, steps involved in activating MRP area and to use it in
different possible ways.
As we know MRP runs at plant level (centralized), but as per business need we may have to plan MRP for individual &
independent planning areas (decentralized). This can be achieved by activating MRP areas. These MRP areas are fully
configurable organizational units within ECC where MRP can be run individually. So we can broadly classify running MRP
in 2 major ways.
MRP at plant level: The system adds together stocks from all of the individual storage locations to determine total
plant stock. The requirements are combined in the planning run and procurement elements are created for these
pegged requirements with unknown sources. Individual storage locations can be planned separately or be excluded
from planning.
Illustration:
https://blogs.sap.com/2015/07/01/basics-of-mrp-area/ 1/26
MRP area level: Only the stocks from the storage locations or subcontractor assigned to the respective MRP area
are taken into account. The requirements in this particular MRP area are combined and procurement elements are
created for them. This enables us to plan material requirements specifically for certain areas (MRP areas).
Illustration:
You can define MRP areas within a plant and carry out MRP specifically for that particular area, for example in
above illustration, for MRP area M0001 can be planned independently without running MRP for plant FP01.
In each MRP area you can control staging and procurement of parts that are produced in house or externally. All
MRP procedures are supported by MRP areas and one can display the result of MRP run for each MRP area.
MRP Area (definition):
As per SAP, “MRP Area represents an organizational unit for which material requirements planning is carried out
independently”
MRP Area is functionality for special planning process that enables you to carry out planning not only at plant level
but also at different planning levels (eg, storage location & sub-contractors). There are 3 types of MRP areas in SAP
Plant MRP Area

MRP Areas for storage location
MRP Areas for Subcontractors
Plant MRP area:
MRP area can be created at plant level. On doing so, system combines all its storage locations and stock with
subcontractors under that MRP area. When you define MRP areas for storage locations and for subcontractors and
assign material to newly created MRP areas with in plant then the plant MRP area gets reduced by exactly the numbers of
subcontractors and storage locations. This is because they will now be planned separately in new MRP areas.
MRP area for storage location:
MRP area can also be defined for storage location or multiple storage locations. Material requirements for this storage
location are then planned separately from the rest of the plant. Important point to note here is that you can assign 1
storage location to only 1 MRP area but you can have multiple storage locations under single MRP area. It’s a N to 1
relationship.
MRP Areas for Subcontractors:
You can also define an MRP area for each subcontractor. Important point to note here is that a subcontractor can be
assigned to only one MRP area in a plant. An MRP area of the subcontractor type can only contain one subcontractor. It’s
a 1 to 1 relationship.
How to setup MRP area in SAP
There are 2 aspects of setting up MRP area. First one is to activate it in customizing and second part it to set up
master data (i.e. adding materials to that particular MRP area in material master).
MRP with MRP area is not operational until you assign MRP area to a particular material in material master or in
order words create a MRP area segment. If you have not assigned a material to an MRP area, that is, you have not
created an MRP area segment in the material master, the material will continue to be planned in the plant MRP area
only.
Step 1 – Converting Planning file entries
Path: SPRO > Production > Material Requirement Planning > Master Data > MRP Areas >
Convert Planning file entries for MRP areas – OM0F or SE38 program RMDBVM00
When we convert planning file entries for MRP area, system creates plant MRP area for each plant. Following entries
from below tables are converted. Planning file entries are maintained in MRP file which are converted to MRP area file in
below tables.
Planning file entries in MDVM are converted to DBVM
Planning file entries in MDVL are converted to DBVL
Planning file entries in KDVM are converted to KBVM
Planning file entries in KDVL are converted to KBVL
If you are running converting planning files for the first time then system will automatically create plant MRP areas.
These new entries can be seen in OMIZ under plant MRP area with area type “01”.
IMP note: After the conversion, contents of MDVM/MDVL/ KDVM/KDVL are deleted and entries are created in
DBVM/ DBVL/ KBVM/ KBVL.
Step 2 – Define MRP area in SPRO – OMIZ
Define MRP areas
MRP area has 3 types (01, 02 & 03) and system will allow you to have MRP areas in below types only (Plant, Storage
location or Sub Contractor)
Plant MRP area should have same name as plant so you can have only one entry for plant MRP area. For example
plant 1000 will have plant MRP area as 1000.
In order to maintain consistency and uniformity, only MRP areas of the type ‘plant’ are allowed to have 1-4 digits
key. Sloc MRP area should have minimum of 5 digits. Example M0001 etc…
You can only have 1 sub-contractor vendor assigned to 1 MRP area. Multiple vendors cannot be grouped together
in a single MRP area.
You can have multiple storage locations combined together in a single MRP area.
You can only one entry for plant in plant MRP area. Multiple plants cannot be grouped together in a single MRP
area.
Once MRP area is defined, next step is to Activate MTP area
Step 3 – Activating MRP Areas – OM01
Activate MRP for MRP areas
NOTE: MRP areas are activated at client level. Once you activate it, it will be available for all plants and MRP areas
features would be available to use.
This sums up setting up MRP area configuration in SAP customizing.
You can find following changes due to activation of MRP area. These are just few for example
MD61 – PlR creation
MRP
Material Master
Stock Requirement list
Step 4: Master data for MRP area
The material will not be considered in MRP area planning until it’s extended to MRP area. Following steps shows how to
extend a material in MRP area. You can extend a material to multiple MRP areas based on the need.
Go to change material master under MRP 1 screen and assign MRP area as shown below:
You will have additional views for MRP 1, MRP 2, Forecast & Consumption values. You need to fill required fields as per
your need.
When you assign a material to a new MRP area, a new record for this assignment gets added in the planning file.
You have an option to define individual MRP and forecast parameters for each MRP area that you assign to a
material. These parameters can differ from those defined in the material master at plant level. As an example, you
can have different MRP controllers, lot size or MRP type for each individual MRP areas that is assigned to a
material.
Users can set up different forecast model and consumption values in MAR area tabs. Once MRP with MRP area is
activated, ATP check is also activated at MRP area level.
Scope of planning with MRP area
You can create scope of planning run if you want to carry out total planning for limited MRP areas. In case you do
not give any MRP area in total planning run, system will consider all MRP areas under a plant and plan for them in
total planning.
For single item planning system, in MD02 & MD03 system plans a material only in the specified MRP area.
Sample Scenario:
Let’s consider a material Assembly maintained in plant ZSY1 under 2 storage locations (ZSY3 & ZSY4)
Sloc ZSY3 maintained in MRP area MA001. Assembly is extended to MA001 with following stock situation
ZSY3 – 100 (under storage location MRP area MA001)
ZSY4 – 150 (under Plant MRP area ZSY1)
Lot size for same material is maintained as FX (fixed lot size) in MA001 MRP area and EX in plant MRP area ZSY1
Total stock MMBE
MD04 – MRP Area ZSY1
MD04 – MRP Area MA001
Let’s have requirement from a Sales order for plant ZSY1, it will come under plant MRP area ZSY1
For testing, we can also have PIR created for specific MRP area MA001
Here is the stock situation of MD04 with sales order in Plant MRP area
Stock requirement for MRP area MA001:
If we run MD02 for plant ZSY1, system will only consider plant MRP area and will not plan for MRP area MA001 as
it’s a separate planning area
MRP area MA001 is untouched:

After running MRP for MA001 system creates planned order for 200 quantities
Material Assembly was maintained as EX lot size in plant MRP area and with fixed lot size 200 in MA001 hence
planned order of 200 Qty created in MA001. In this way separate planning parameters can be maintained to run
requirement planning using MRP areas.
~~~~~~~~~~~~~~~
Thank you for reading this document. Please feel free to suggest any change and modification needed to improve
the document.
*Scenarios related to MRP areas will be covered in a separate document. The link will be added
below once completed
Alert Moderator
Assigned tags
MAN Production Planning (PP) | material requirements planning | mrp | mrp-area | plant mrp area |
View more...
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35 Comments
You must be Logged on to comment or reply to a post.

Amit Sharma
July 3, 2015 at 2:17 pm
Hello Rohit,
Again a very well explained and informative document from you.
Thanx a lot for sharing...!!!
Regards,
Amit Sharma
Like(0)
Rohit Singh | Post author
July 3, 2015 at 4:49 pm
Hello Amit,
Thank you for the comments. The intent is to keep them as easy as possible to help consultants of any domian.
Regards,
Rohit
Like(0)
Sagar Mane
July 6, 2015 at 7:15 am
Hi Rohit,
As always great work from you.
Really easy and simple document to understand.
Regards,
Sagar
Like(0)

July 6, 2015 at 8:34 am
Hi Sagar,
Thank you for the comments. I am planning to add few more sample scenarios in this document to demonstrate
remaining functionality of MRP area.
Regards,
Rohit
Like(0)
Former Member
July 6, 2015 at 12:04 pm
Hi Rohit,
Great piece of work. Keep it up.
Regards
Akshay
Like(0)
Former Member
July 6, 2015 at 12:06 pm
Hi Rohit,
Good job. Expecting few more such valuable information in future.
Regards,
Akshay
Like(0)
July 6, 2015 at 12:14 pm
Hi Akshay,
Thank you for your feedback. Will de nitely be adding more documents in this space.
Regards,
Rohit
Like(0)
Suresh M
July 6, 2015 at 12:10 pm
Great Work Rohit.
Superb explanation on MRP Area.
Thanks for sharing the Good Knowledge.
Regards
Suresh.M
Like(0)
July 6, 2015 at 12:16 pm
Hi Suresh,
Thank you for the nice feedback. I will be sharing more such documents in coming days.
Regards,
Rohit
Like(0)
Suresh M
June 26, 2016 at 6:33 pm
Hi Rohit
In step 1 mentioned SPRO path is wrong and T.code & Program are correct.
Path is SPRO > IMG > Production >Material Requirements Planning > Planning File Entries > Convert Planning
File Entries for MRP Areas.Follow RSS feed Like
Kindly change it.
Regards
Suresh.M
Like(0)
Former Member
July 8, 2015 at 7:05 am
Hi Rohit
Very helpful document thanks.
But i have same query in the below.
If i want that sale order also will come in the MRP area Only.
Exp:- We have customer XXX and the requirement will come in the form of Sale order. And for this customer we
have 1 vendor for doing Assembly.Quantity of FG Material :-130
As take help of your document. I create One MRP area for this customer and i want my all requirement will come in
this MRP Area only. Sale order and PIR if any and available stock.
Please guide
Thanks

Like(0)
July 14, 2015 at 10:29 am
Hi Nitin,
Thank you for the comments.
If you want a sales order requirement to be considered in a perticular Sloc MRP area then you have to enter
storage location in Sales Order. If a Sloc is not maintained, system will consider it in Plant MRP area.
In order to have it considered in a perticular storage location MRP area, you need to mention Sloc in item details
under shipping. Follow RSS feed Like
Regards,
Rohit
Like(0)
SAP ERP
July 8, 2015 at 7:26 am
Dear Rohit,
Thank you for this helpful document
Like(0)
July 14, 2015 at 10:29 am
Hi There,
Regards,
Rohit
Like(0)
Debraj Bhaduri
July 16, 2015 at 3:13 am
Dear Rohit,
Its really a very good document.
Regards
Debraj
Like(0)

July 16, 2015 at 5:11 am
Dear Debraj,
Thank you for the feedback.
Regards,
Rohit
Like(0)
Former Member
August 11, 2015 at 12:19 pm
Hi Rohit,
Wonderful doc on MRP area. We are waiting for various business scenarios on MRP area.
Regards,
SAP CONS
Like(0)
August 12, 2015 at 12:24 pm
Thank You SAP CONS,
I am little occupied in my current assignment and not able to prepare other scenarios but I will be posting them soon.
Regards,
Rohit
Like(0)
Vibin V Joseph
August 12, 2015 at 11:42 am
Dear Rohit,
Marvelous and Things has been explained in well detail. Thanks for sharing.
Regards,
Vibin.V.Joseph
Like(0)
August 12, 2015 at 12:26 pm
Dear Vibin,
Regards,
Rohit
Like(0)
Ananth Surya Narayana Murty Dulipala
March 22, 2016 at 5:26 pm
Hello Rohit,
Informative document, thanks for this. Can we use Vendor level MRP area concept in IS-AUTO...??
Thanks & Regards
Ananth
Like(0)
Former Member
April 18, 2016 at 12:29 pm
thank you so much for the very useful document
Like(0)
sushant katekar Follow RSS feed Like
June 14, 2016 at 12:41 pm
thank you Rohit for such incredible doc, I have one doubt,......
MRP area M0001 contain subcontractor V001 and MRP area M0002 contain same subcontractor V001. My
question is can we assign one subcontractor (V001) to multile MRP areas?
Thanks ,
Sushant Katekar
Like(0)
June 14, 2016 at 1:47 pm
Hi Sushant,
Thank you for suggesting this correction. Actually it should not be same Vendor in 2 di erent MRP Areas. I have
made correction in this document and published with new version.
Best Regards,
Rohit
Like(0)
Ravi Kumar
June 24, 2016 at 5:19 am
Hi Rohit,
Informative document
Good Work
" "
Regards
@KRK@
Like(0)

Former Member
June 26, 2016 at 7:14 am
Hi Rohit, Well documented on the steps to be followed to run business with MRP area concept. Going forward
with S/4 HANA MRP, planning happens at plant or MRP area level and not at storage location MRP level. with
the change in design, all implementation need to activate MRP area either at plant (default), storage location or
sub-contractor level.
Thank you.
Like(0)
Vivek P
November 12, 2016 at 10:16 pm
Great work Rohit.
Could you please check last 2 lines in end of the document .
"Material Assembly was maintained as EX (FX) lot size in plant(S.Loc) MRP area and with xed lot size 200 in
MA001 hence planned order of 200 Qty created in MA001"
Thank you
Like(0)
Former Member
April 13, 2017 at 11:25 am
Very Good Document
Like(0)
Former Member
April 26, 2017 at 5:15 am
Hi Rohit,
This is a very good document. I have a doubt with regards to this, can you review the issue I am facing and help
me.
I am con guring MRP for re-order point planning.

As per the requirement, we do not want to implement the MRP at MRP area level but on plant level. Hence in the
con g node "Activate MRP for MRP area ", the checkbox is not ticked at client level.
However the report RMDBVM00 was executed by mistake. Hence the planning le entries at plant level are
converted into MRP area level. (Entries from table MDVM deleted and DBVM updated)
Now when we are running MRP using tcode MD03 or MD02 we are getting error message like "Plant does not
exist"
Can you please assist in analyzing the cause of the issue and the possible resolution.
In addition, would like to understand if it is possible to revert the e ects of report RMDBVM00 in any way ie
After the planning le entries at plant level convert to MRP area level, I need that the planning le entries from
MRP area level should again convert to plant level and same should continue in the future.
Regards,
Mitesh Shah
Like(0)
Sumit Yeole
July 25, 2017 at 12:41 pm
Hello Rohit,
Very good document and very useful.
As in S4 HANA environment , How to exclude Storage location through MRP Area.?
If you have any idea related to that , do share. As Storage location exclude facility is no more in S4 HANA.
Regards,
Sumit
Like(0)
Sanath M Kumar
August 24, 2017 at 6:25 am

Hi Rohit, very much informative and insightfull. Thank you. I have one query, for a material at a plant if i want
that the stock at di erent Follow
vendors should beRSS feed
considered Like
while running MRP at Plant level. Can i assign 2 vendor
to the MRP area if not how can i achieve this of considering stock of multiple vendors.
Your views please.
Darshan Shah
Like(0)
C. Smith
April 24, 2018 at 10:08 am
Hi all,
I have question which came up in our organization.
How can we make sure that the MRP area is assigned automatically?
Any specifc settings which needs to be done?
Reason behind my question is the following.

If a sales order or a manual booking (movement type 501 or 311, etc.) is made in our organization the
corresponding Sloc/MRP area is not created / assigned automatically. This is done manually up to now.
Any chance that the system is doing that automatic?
Like(0)
Petr Novak
November 16, 2018 at 3:36 pm
Thank you for nice article.
One question: as you have there in Master data of MRP Area MRP1,MRP2,Forecast,Consumption values....so if
you have there in MRP1 Fixed lot size: 200, does it mean there all the materials in this area have Fixed lot size
200? Or Does it mean that this particular material has in this particular MRP are Fixed lot size 200?
Like(0)

Oscar Del Castillo
December 13, 2019 at 9:57 pm
Petr, when you create the MRP area for a material master record you get a new set of MRP parameters for the
combination of material and MRP area.
To answer your question in other words material A and B can live in MRP area 1, where material A has lot size of
100 and material B has a lot size of 500
Like(0)
Heather Siminski
May 4, 2020 at 2:18 pm
Hi- I realize this article was posted some time ago. Hopefully it is ok to still comment/question. I completely
understand how MRP works even with all the levers and buttons in SAP. Our issue with ostock/subcontract
materials is related to the MRP/demand type. AR Dependent reservation versus SB dependent requirement
which is based o of a planned independent requirement.
While MRP is doing what it needs to do when the peg is AR, it is not doing what folks are expecting it to do when
the peg is SB. We run MRP at a plant level. Is there an MRP setting to always consider ostock as supply
regardless of the demand type? Keeping in mind there is NO option to employ project stock in our environment.
Or is it an MM setting for the material? I know MRP groups have some power however, I have not seen an
attribute that would help.
We need MRP to see the ostock whether that is 1 or 3 suppliers + any materials within the four walls and use
this value. Regardless of the demand type AR vs SB.
Any help would be appreciated
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MRP Area (definition):

Plant MRP Area

Plant MRP area:

MRP area for storage location:

MRP Areas for Subcontractors:

Follow RSS feed Like

How to setup MRP area in SAP

Step 1 – Converting Planning file entries

Planning file entries in MDVM are converted to DBVM

Planning file entries in MDVL are converted to DBVL

Planning file entries in KDVM are converted to KBVM

Planning file entries in KDVL are converted to KBVL

Follow RSS feed Like

Step 2 – Define MRP area in SPRO – OMIZ

Follow RSS feed Like

Once MRP area is defined, next step is to Activate MTP area

Step 3 – Activating MRP Areas – OM01

Follow RSS feed Like

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

MD61 – PlR creation

Follow RSS feed Like

Stock Requirement list

Step 4: Master data for MRP area

Follow RSS feed Like

Scope of planning with MRP area

ZSY3 – 100 (under storage location MRP area MA001)

ZSY4 – 150 (under Plant MRP area ZSY1)

Total stock MMBE

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MD04 – MRP Area ZSY1

MD04 – MRP Area MA001

Stock requirement for MRP area MA001:

MRP area MA001 is untouched:

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You must be Logged on to comment or reply to a post.

July 3, 2015 at 2:17 pm

Again a very well explained and informative document from you.

Thanx a lot for sharing...!!!

Rohit Singh | Post author

July 3, 2015 at 4:49 pm

July 6, 2015 at 7:15 am

As always great work from you.

Really easy and simple document to understand.

Rohit Singh | Post author

July 6, 2015 at 8:34 am

July 6, 2015 at 12:04 pm

Great piece of work. Keep it up.

July 6, 2015 at 12:06 pm

Good job. Expecting few more such valuable information in future.

Rohit Singh | Post author

July 6, 2015 at 12:14 pm

July 6, 2015 at 12:10 pm

Great Work Rohit.

Superb explanation on MRP Area.

Thanks for sharing the Good Knowledge.