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SAP S/4 HANA PP
BASIC CONFIGURATIONS
Akshay Kulkarni
https://www.linkedin.com/in/akshay-kulkarni-005417175/
Production Planning Configuration
Step 1: - Determine Explosion mode
• Sap has released additional mode for BOM in HANA

• Earlier in ECC this configuration was not available
• During MRP explosion system is not able to pick up the exact validity of the BOM so
that’s the reason this additional set up was introduced in SAP HANA.
SPRO → Production → Basic Data → Bill of Material → Determine Explosion Mode

Step 2: - Define Standard Value Key

• Standard Value key is created as per the business requirement.
• Maximum 6 Standard Value key we can assign for one work center.
• They Help in capturing the costs of the activity.
• They help in creating capacity requirement.
• They help in creating scheduling requirement.
SPRO → Production → Basic Data → Work center → Standard Value → Define Standard Value Key
Step 3: - Determine Person Responsible

SPRO → Production → Basic Data → Work center → Determine Person Responsible
Step 4: - Overall Maintenance of Plant Parameters

Transaction code: - OPPQ
Menu Path: - Production → Material Requirements Planning → Plant Parameters → Carry out
Overall Maintenance of Plant Parameters
Here we can create or Maintain all the plant parameters for MRP
Following are the parameters that need to maintain as part of SAP MRP Configuration.
a) Number ranges: -
The number range ID’S are maintained for the following objects
• The Planned orders,

• The Reservations,
• The dependent requirements,
• The simulative dependent requirements,
• The Purchase requisitions,
• The MRP Lists,
In this section only, the number range ID’s are maintained. While the actual number range is
configured, for the number range ID, using a transaction code OMI2 (for the above-mentioned
objects created in the planning run). One can also use the transaction code OMI3 for the
objects created manually in the front end.
Every number range interval, created using OMI2 and OMI3, has an ID, which can be allocated
to the objects at plant level, i.e., every plant can have a different number range for the objects
mentioned above.
b) Check Rule: Backorders: -

As per standard SAP, the Availability checking rule for the backorder processing is “PP”, though
you can have your own availability check rules created or configured. Every Availability checks
rule (availability checking scope defined) has a set of receipts (Purchase orders, Production
orders) and issues (Sales orders, dependent requirements, reservations, planned independent
requirements etc) which are to be considered or not to be considered during the SAP
availability checks. To have the checking rule work along with the configuration, you should
have the Availability checking groups maintained in the material master. The Checking groups
are configured to be associated with the checking rules (checking scopes). The availability
checking rule (checking rule scope) has to be maintained, for a given SAP functionality and it
has to be assigned to the availability checking group maintained in the material master. The SAP
functionalities that use availability checks to check the availability of the header materials as
well as components at the plant at the time of sales order creation, the availability checks of
the header material at the time of sales order delivery, the availability checks for components
in production – thus reporting the missing parts list, the backorder processing etc.
c) Reporting
This configuration is used for the following purposes. • To configure the objects, which are to
be considered in the calculation of the “receipts days’ supply” like the production
orders/process orders, firmed planned orders, purchase orders, assigned planned orders,
firmed purchase requisitions, QM Inspection lots, reservations, safety stocks • To configure the
reporting of “periods totals” in terms of a defined period (day, week, month, periods as per
planning calendar) of in Stock requirement list, MRP list, simulative MPR or interactive MRP
d) MRP Controllers: -
The MRP controller is responsible for material requirements planning and material availability.
They ensure that the materials required to manufacture finished products or superior
assemblies are available on time.
You have to assign the MRP controller to the Material Master MRP 1 view, so as to delegate the
responsibility of planning and evaluation of planning for that Material.
e) Floats: -
Floats are buffers in the total lead time, that are provided production/process order or in the
planned order created manually or during an MRP run. The schedule margin key is used in the
Material Master MRP 2 view. It is used in MRP as well as in Production Order.
The floats are defined using the scheduling margin key.
Opening Period: - Number of working days between the date that the order is created and the
planned start date. This time is available for the MRP controller to convert a planned order into
a purchase requisition or a production order.
Float after production: - Number of working days between the scheduled finish date and the
order finish date; used as a float in production scheduling.
Float before production: - Number of working days between the order start date and the
scheduled start date; used as a float in production.
Scheduling release period: - Number of workdays between the planned start date and the date
for releasing the order. If the order release indicator is set, the production order is released by
a background program that takes all dates into account.
f) Special Procurement: -
Special procurement type is used for allocating a material for special procurement functions
such as:
Withdrawal from another plant
For manufacturing a product in Plant 0001, you can withdraw a component directly from Plant
0002 (called a planning plant or the issuing plant). Dependent requirements for these
components are directly created in the issuing plant.
You can use withdrawal from alternative plant for both components produced in-house and
procured externally. A special procurement key is defined for both procedures and the issuing
plant is entered there. This special procurement key is assigned to that component which is to
be withdrawn from the plant 0002.
Dependent requirements for the components are created in plant 0001 as well as plant 0002
and when the planned order for manufacturing is converted to a production order these
dependent requirements are converted to dependent reservations in both the plants.
MRP will show the dependent requirements with an MRP element called as “Withdrawal from
alternate Plant”.
Production in alternate plant
The planning of the product is carried out in the planning plant but it is actually produced in the
production plant. The product's BOM is created in the production plant.
The special procurement key has to be created in configuration.
The special procurement key has to be assigned to the assembly’s material master of the
planning plant (MRP 2 view).
Planned Stock transfer

Values predefined are used to identify the unique route from the requesting to the supplying
plant in the same company code (which will be used for the Stock transport orders between
two plants)
It should be noted that the Special procurement type of this category has to be entered for the
material in the requesting or demanding plant.
In Customizing, when you would create a special procurement type for the requesting plant,
you would have to enter “U” for the fields – Special Procurement and enter the supplying plant
in the plant field.
Planned stock transfers are MRP driven. A Shortage in receiving plant creates a Stock Transport
requisition or planned order in the receiving plant with a Purchase requisition raised on the
Supplying plant for release of these materials to the demanding plant for the requirement date.
Example - Z1 is the Special Procurement type predefined for materials requested by plant X
from plant Y (Plant Y à Plant X).
This value Z1 is maintained for the material in the requesting or demanding plant and not in the
Supplying Plant.
The below table explains the step by step methodology of stock transfers:
Phantom Item
If a material is to be identified as the Phantom material, you have to enter a standard special
procurement type – “50” in the material master of the plant where the material is defined a
Phantom.
Direct Production (for Collective order processing)
Definition:
In direct production scenario (Special Procurement Key 52), the whole assembly is collectively
produced and the cost of production is collectively calculated and booked on the highest-level
order. Along with cost of production the scheduling is also carried out jointly for all the
products in the hierarchy.
All the levels are connected to each other in a multi-level collective order.
Restrictions in Direct Production:
a) Use is restricted to Make to Order Production
b) Special Procurement key configuration
In Customizing, the system creates a special procurement key for direct production as standard.
The special procurement key contains the procurement type E for in-house production and the
direct production field is selected.
You can create a further special procurement key by setting the special procurement type P for
Production in alternative plant as well as entering the production plant in addition to making
the direct production settings. The settings work in addition to each other and do not block
each other. This is how you create a multi-plant collective order.
c) Assigning of Special procurement key to the Materials:
Assign the special procurement key – 52, for direct production in the MRP 2 of the component.
You can restrict the use of the Collective design of direct production to a certain BOM. To
achieve this, enter this key for the BOM items in the MRP data area.
d) Order type Configuration:
In order type configuration (Customizing for Shop Floor Control, by choosing Master data >
Order > Define Order Types) you can use the indicator “Coll.ord.process” to determine how
costs are to be settled in the collective order.
Also, if the indicator “Collective order with goods movements” is set, then the goods receipts
and goods issues between assemblies happen automatically. On Production of the Lower level
subassemblies, the goods receipt is created and the same is automatically goods issued to the
higher-level order.
e) Planned order in direct production:
Planned orders for each level is created in the system and names them as “Planned orders for
direct production”. When you convert the planned order in to production order for higher level
all the dependent planned orders are also converted in to production.
Every planned order for direct production contains the number of the superior planned order
as well as the number of the leading planned order.
g) Maintain Planned orders:

In this configuration parameter, you can maintain the production order type or the process
order type, which the system should use as default during the planned order conversion.
Setting defaults in the plant parameters configuration allows the system to fix and select the
order type for a plant during the conversion process.
Note: This can be a useful tool when you are using one production order type and one process
order type, but if you are using multiple production/process order types, then you should not
be maintaining defaults here.
Also, for the purchase requisition conversion, you are given an option in the configuration to
define the maximum number of planned orders that can be converted in to Purchase
requisition.
h) Dependent Requirements availability check

When carrying out the availability check for each of the components in MRP BOM explosion,
the system needs to know the availability checking scope rule. Again, we would maintain the
standard Checking rule as PP or you could alternatively configure one for yourselves.
Maintain Planning Run
i) BOM/Routing Selection ID
This configuration parameter is really important and it is mandatory to maintain one, since
it helps selection of BOM and task lists in the planned orders. Though there is one more
place in the planned order Scheduling parameters MRP configuration, where you can
maintain the selection ID for selection of the Task lists (Routing/Recipe/Rate Routing).
A selection procedure is set to select BOM or Routing/Recipe on priorities set for the BOM
usage or for the task list types and the task list status. Knowing the selection procedures
allows the MRP run to select the right BOM and task list for the planned orders.
In other words, you could have the BOM Selection being set for selection of the Production
BOM Usage first and if a BOM for the material with the Usage – production (Usage = 1), is
not found, you could have the system search for a BOM of universal Usage (Usage = 3).
Similarly, you could have a task list of type Routing or Recipe or reference operation sets
selected and set in priorities of selection (1st – Routing, 2nd – Reference operation sets,
3rd, which has a Status Released for all purposes or released for costing) etc.
Baseline SAP PP Configuration Steps
Define Material Types Allowed for BOM Header: Define the material types in conjunction with
BOM usages that are allowed for the BOM header material. You make these settings; you can
make a generic entry in the fields for the BOM usage and the material type.
Menu Path: SAP Customizing Implementation Guide > Production > Basic Data > Bill of Material
> General Data > Define Material Types Allowed for BOM Header
Define Allowed Material Types for BOM Items: Define the material types in conjunction with
BOM usages that are allowed for the BOM items. You can make a generic entry in the fields
“BOM usage”, “Mat type header”, and “Mtype BOM item”.
Menu Path: SAP Customizing Implementation Guide > Production > Basic Data > Bill of Material
> Item Data > Define Allowed Material Types for BOM Items
Person Responsible for Work Center: Person responsible in work center is a person who will
maintain (Create, change work center) in SAP based upon the changes happening on the Shop
floor.
Menu Path: SAP Customizing Implementation Guide > Production > Basic Data > Master Data >
Work Center > General Data > Determine Person Responsible
Parameters: Define parameters, which you then assign to the standard value keys. You can
assign any meaning to these standard values. Please keep in mind that the meaning of the fields
is specified by the key words.
Work Center > General Data > Standard Value > Define Parameters
Standard Value Keys: The standard value key determines the meaning of the six standard
values in the operation. The SAP System assigns a parameter ID to the standard values of the
operation and the work in network activities.
Work Center > General Data > Standard Value > Define Standard Value Key
Define control key: The Control Key you can define Business functions to be carried out with
operation.
Work Center > General Data > Standard Value > Define Standard Value Key
Define Formulas for Work Centers: Create the formulas for work centers that you want to use,
for example, for scheduling or costing.
Work Center > Capacity Planning> Work Center Formulas> Define formula parameters for work
centers
MRP Type: MRP type determines whether and how the material is planned. This is maintained
for each material at plant level.
Menu Path: SAP Customizing Implementation Guide > Production > Material Requirements
Planning> Master Data > Check MRP Types
MRP Controller: In this step, we define a number that is assigned to the MRP controller. The
MRP controller is a person or a group of persons responsible for monitoring material
availability. We can use the number entered here, for example, to select the planning results
per MRP controller. Every material that is relevant to the planning run must be assigned an
MRP controller number in the material master record.
Menu Path: SAP Customizing Implementation Guide > Production > Material Requirements
Planning> Master Data > Define MRP Controllers
MRP Groups: MRP groups are used when the plant division for planning is not enough for the
division of the different materials MRP requirements. You assign different groups according to
the requirements to run MRP (different Settings). These settings will be taken in account when
you run MRP for single item or total planning.
Menu Path: SAP Customizing Implementation Guide > Material Management > Consumption-
Based Planning > MRP Groups > Carry Out Overall Maintenance of MRP Groups
Lot Size Procedure: The system uses lot-sizing procedure within materials planning to calculate
the quantity to be procured or produced.
Menu Path: SAP Customizing Implementation Guide > Production>Material Requirement

Planning> Planning> Lot-Size Calculation> Check Lot Sizing Procedure
o Scheduling Margin Key: The system uses this key to determine the floats required for
scheduling an order. The key is maintained for the material at plant level.
Path: SAP Customizing Implementation Guide > Production> Material Requirement Planning>
Planning> Scheduling and Capacity Parameters> Define Floats (Schedule Margin Key)
Scheduling Margin Key: The system uses this key to determine the floats required for
scheduling an order. The key is maintained for the material at plant level.
Path: SAP Customizing Implementation Guide > Production> Material Requirement Planning>
Planning> Scheduling and Capacity Parameters> Define Floats (Schedule Margin Key)
Order Types: The order type relates to the production orders that are created.
Menu Path: SAP Customizing Implementation Guide > Production>Shop Floor Control> Master
Data> Order> Define Order types.
OPJH –Order Types - Order type controls the parameters like; Number range for the orders,
Which criteria is used when selecting routing, How the order is costed.
o Order-Type-Dependent Parameters: Parameters that are valid for each order type and
plant. Here, you define the data that influences master data selection or order master
data maintenance like BOM and Routing selection, documents of goods movements,
costing variants and RA keys.
Path: SAP Customizing Implementation Guide > Production>Shop Floor Control> Master Data>
Order> Define Order-Type-Dependent Parameters
Order-Type-Dependent Parameters: Parameters that are valid for each order type and plant.
Here, you define the data that influences master data selection or order master data
maintenance like BOM and Routing selection, documents of goods movements, costing variants
and RA keys.
Data> Order> Define Order-Type-Dependent Parameters
OPL8- Order Type Dependent Parameters - Copy all existing order types of 1710 plant to your
plant. Dependent parameters are as follows;
1. Production version should be manual or automatic

2. Routing selection ID
3. BOM Application
4. Batch Determination - selection procedure
5. Cost Accounting - Costing variants for planned and actual costing
Planning Tab:
Production versions:
This setting 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.
Task List type:
You can also select the task list type that you mandatorily want to be selected in the order.
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 together with the possibility of sequence exchanges.
Routing Selection:
This setting governs the selection method of Routings in the Order and not the selection of
routing types in the order.
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.
Costing Tab:
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.
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.
OPJK- Order Control during Release - Copy all from 1710 plant. This configuration will decide
when system should consider availability check of raw materials; 1. During Creation or 2. During
Release.
Menu Path: SAP Customizing Implementation Guide > Production>Shop Floor Control>
Operations > Availability Check > Define Checking control
OPK4-Order Type Confirmation Parameters - We will configure following things;

1. How system should behave when operation sequence is not followed
2. Under-delivery
3. Over-delivery
4. Dates in Future
5. Which confirmation system should propose - Partial or final or auto-final
6. Error handling/logs for actual cost and goods movement
7. Individual entries of operation
Operations> Define Confirmation Parameters
OPU3- Scheduling Parameters for Production order - Copy all from 1710 plant. This
configuration determines following things for order type against plant & production supervisor
combination.
• Default scheduling type; e.g. Backward, Current Date etc.
Operations>Scheduling>Define Scheduling Parameters for Production Orders
OPKP- Production Scheduling Profile - This enables the system to perform specified automatic
actions while creation and release of production order like; auto GR, auto release of order upon
creation, document updating and capacity & material availability check etc. Create your own for
MTS by copying 1710.
1. It defines when system should create auto batch at order creation or order release or it
should not allow auto batch creation.
2. Whether auto goods movement enabled.
3. Overall profile for capacity planning.
Production Supervisor: Define the production supervisors for your plants. By assigning
production supervisors to materials within the application, you can define responsibilities for a
material within production activity control.
OPJ9 Menu Path: SAP Customizing Implementation Guide > Production>Shop Floor Control>
Master Data> Define Production Scheduling Profile
Production Scheduling Profile: In a production scheduling profile, we can specify that in a

production order particular business transaction are carried out in parallel
Data> Define Production Scheduling Profile.
OPK5- Reason for variance - Copy from 1710 plant.
OPK9- Assign Valuation Variant to Valuation Area - OY1, OY2 OY6 & OY7
PP-CO Integration- Product Costing -

Define settlement (YBMFP1) - Settlement profile is assigned to order type.

2. Allocation structure (YP) - Source - Other CP area (ASK1) - cost element group (YB_ALL) -
Settlement cost - (PSG, CTR & ORD)
3. Source structure (YQ)
This was basic configuration required from SAP PP point of view.

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SAP S/4 HANA PP

Step 1: - Determine Explosion mode

• Sap has released additional mode for BOM in HANA

SPRO → Production → Basic Data → Bill of Material → Determine Explosion Mode

Step 2: - Define Standard Value Key

Step 3: - Determine Person Responsible

Step 4: - Overall Maintenance of Plant Parameters

• The Planned orders,

b) Check Rule: Backorders: -

Planned Stock transfer

g) Maintain Planned orders:

h) Dependent Requirements availability check

Maintain Planning Run

Baseline SAP PP Configuration Steps

Menu Path: SAP Customizing Implementation Guide > Production>Material Requirement

1. Production version should be manual or automatic

Task List type:

Alternative Sequences Can be Transferred:

Display Profile Tab:

OPK4-Order Type Confirmation Parameters - We will configure following things;

Production Scheduling Profile: In a production scheduling profile, we can specify that in a

OPK5- Reason for variance - Copy from 1710 plant.

PP-CO Integration- Product Costing -

Define settlement (YBMFP1) - Settlement profile is assigned to order type.

3. Source structure (YQ)

This was basic configuration required from SAP PP point of view.

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