BPC SAP ERP CH 06 Production 1e FInal

The Production Process
Business Process Configuration with SAP ERP

By Magal, Boykin, Goodrich, and Prabhakar
© 2017 Epistemy Press, LLC.
Screenshots © 2017, SAP SE.
Agenda
 Production Process Overview

 Enterprise Structure
 Business Rules and Parameters
 Master Data
 Testing
Magal, Boykin, Goodrich, and Prabhakar | Business Processes Configuration with SAP ERP | © Epistemy Press 2017
The Production Process
Planned
Planned Production
Production Goods
Goods Order
Order Goods
Goods Order
Order
order
order order
order issue
issue confirmation
confirmation receipt
receipt settlement
settlement
Planned Order
 Request production
 Planned order data
 What material
 How many
 When
 Generated by other processes

 Fulfillment
 Project management
 Material planning
 Can be created manually
Production Order
 Authorize production  Production order outcomes

 Scheduling
 With planned order: convert  Capacity planning
 Convert to production order
 Availability checks
 Without planned order: create production order  Reservations
 Preliminary costing
 Production order data  Purchase requisitions
 What material is to be produced?
 How many?
 When?
 Where will they be produced?
 What resources are to be used?
 How much is it expected to cost?
Production Order Release
 On creation order status is created (CRTD)  Automatic or manual

 If no time is needed between creation and release for
 Order must be released (REL) to permit subsequent preparation, then release occurs automatically
steps such as
 Goods movement  Release at different levels
 Confirmations  Header: All operations are released
 Documents printed  Operations: Release specific operations
 Settlement  Operations status: REL
 Order status: PREL (partially released)
Goods Issue
 Movement type 261

 Impact
 Material, FI, CO documents
 G/L accounts updated
 Inventory updated
 Reservations updated (reduced)
 Post costs to production order
Confirmations
 Order level confirmation

 Operations level confirmation
 Impact
 Labor cost calculation
 Post cost to production order
Goods Receipt
 Goods receipt into storage

 Movement type 101
 Impact
 Material, FI, CO documents
 Material master update (quantity and value)
 Production order update (quantity, date, costing)
Periodic Processing
 Overhead calculation
 Work in progress determination
 Settlement
10
Overhead Calculation
 Indirect costs
 Supervisor, manager, other salaries
 Utilities
 Accumulated in cost centers

 Periodically allocated to production orders based on predetermined rules
11
Work-in-Progress Determination
 Work-in-progress (WIP) inventory

 Inventory between GI and GR inventory
 Periodically the value of what is in the production process is calculated and posted to the general ledger
 Not essential
 For short production processes
 Value of materials is not high
 GBI
 Essential
 When value of materials is high
 Production takes weeks, months, or years
 Aircraft production, construction.
12
Settlement
 Settle the difference between planned and actual costs (variance)

 Only planned costs are posted in the GR (Goods Receipt) step
 Variance is settled to the general ledger in this step
13
Agenda
 Production Process Overview 

 Enterprise Structure
 Master Data
 Testing
Enterprise Structure
 Plant 
 Valuation area 
 Storage location 
 Controlling area 
 Cost center standard hierarchy 
 Work center / work center location
Work Center Location
 A location within a plant.

 Multiple locations can be defined within a plant
 Master data can be assigned to locations
 Asset master records (asset accounting)
 Equipment (asset management)
 Functional locations (asset management)
 Work centers (production)
 Production resources/tools (production)
 Used for
 Reporting and statistics
 Searching
Configuration Steps Demo – Work Center Location
 Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ►

Definition ► Logistics – General ► Define Location
Agenda

 Enterprise Structure 
 Master Data
 Testing
Parameters
 Number ranges  Availability check

 Production scheduling profile  Scheduling parameters
 Production scheduler  Activate requirements planning
 MRP controllers  Confirmation parameters
 Production order parameters  Work center control keys
 Conversion of planned orders  Automatic account assignment
 Product costing
 Floats / scheduling margin key
 Goods receipt – valuation
 BOM / routing selection  General ledger accounts
Plant Parameters – Number Ranges
 Planned orders
 Reservations / dependent requirements
 Purchase requisitions
Configuration Steps Demo – Plant Parameters
 Navigation: SAP Customizing Implementation Guide ► Production ► Materials

Requirements Planning ► Plant Parameters ► Carry Out Overall Maintenance of
Plant Parameters
Production Scheduling Profile
 Plant Specific
 A plant can have multiple profiles
 Automatic actions
 Release on create
 Schedule on release
 Goods receipt on confirmation
 Tasks
 Material commitment
 Capacity commitment
 Scheduling options
Configuration Steps Demo – Production scheduler
 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

Control ► Master Data ► Define production scheduling profile
Production Scheduler
 Monitors the processes to ensure efficient flow

 Tasks
 Order release
 Capacity planning
 Scheduling
 Monitoring
 Updating order
 Similar to what is in the production scheduling profile!
 Profile is assigned to scheduler
Configuration Steps Demo – Production scheduler

Control ► Master Data ► Define production scheduler
Production Scheduling Profile - assignment
 Assign profile to
 Scheduler
Material Master – Work Scheduling view
 Material master
 Assign to material master

 Profile
 Scheduler
 Material master assignment

takes precedence
 Material master changes less Production Assigned to Production
often than scheduler Scheduling
Scheduler
Profile
 If profile not assigned to material As
to
s ig
d
ne
n
master ed
sig
to
As
 Profile inherited from scheduler Material Master
Plant Parameters – MRP Controllers
 Person(s) responsible for ensuring availability of materials
Order Type
 Order types
 Order type parameters
 Order category
 Settlement profile
Configuration Steps Demo

Control ► Master Data ► Order ► Define Order Type
Order Type Parameters
 Defined for: Plant + Order type

 A large number of parameters grouped into
 Planning
 Implementation
 Cost Accounting
 Display Profiles

Control ► Master Data ► Order ► Define Order type-dependent Parameters
Order Type Parameters – Planning (Master Data)
 Production version
 Automatic vs. manual selection
 Routing
 Routing type (application)
 Mandatory vs. optional
 Automatic vs. manual
 Bill of materials
 BOM usage
Order Type Parameters – Planning (General)
 Assignment
 MRP controller
 Production scheduler
 Purchase requisitions / material
reservations
 Release
 Collective conversion
 Quality inspection
 Inspection type
Order Type Parameters – Cost Accounting
 Order type parameters

 Cost accounting
 Costing for planned order
 Costing for production order
 Settlement rule
Conversion of Planned Orders
 Convert planned orders

 Production orders
 Type of order
 Purchase requisitions
 Number of pld ord to convert
 Navigation: SAP Customizing Implementation Guide ► Production ► Material

Requirements Planning ► Plant Parameters ► Carry out Overall Maintenance of
Plant Parameters
Floats / Scheduling Margin Key
 Floats: buffers to accommodate unforeseen delays in production

 Float after production: period of time (buffer) after scheduled end date
 Scheduled finish date = basic finish date (requirements date) - float after production
 Production time: time needed to produce the materials
 Scheduled start date = schedule finish date – production time
 Float before production: period of time (buffer) before scheduled start date
 Basic start date = scheduled start date – float before production
 Release period: period of time before the order start date when the can be released
 Release date = scheduled start date – release period
Configuration Steps Demo – Scheduling Margin Key Configuration Steps Demo – Plant Parameters
 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor  Navigation: SAP Customizing Implementation Guide ► Production ► Materials
Control ► Operations ► Operations ► Scheduling ► Define Scheduling Margin Requirements Planning ► Plant Parameters ► Carry Out Overall Maintenance of
Key Plant Parameters
Floats / Scheduling Margin Key
Release period
9 days
Float before Production Float after
production time production
3 days 7 days 5 days
Release Basic Scheduled Scheduled Basic

date start date start date finish date finish date
June 04 June 10 June 13 June 20 June 25
BOM selection
 BOM selection
 Selection ID
 Priority
 Usage

Plant Parameters
Routing selection
 Routing selection
 Selection ID
 Priority
 Type
 Usage
 Status
Availability Check
 Checking group
 Checking rule
 Scope of check
 Checking control
Availability Check – Checking Group (Review)
Requirements Requirements
 Define checking group Group for sales orders for deliveries
 Similar to fulfillment
 Daily requirements for planning (01)
 Individual requirements for planning (02)
Configuration Steps Demo – Define checking control

Control ► Operations ► Availability Check ► Define Checking Group
Availability Check – Checking Rule
 Define checking rule

 Rule is created for various tasks
 Sales order (A)
 Outbound delivery (B)
 Production planning (PP)

Control ► Operations ► Availability Check ► Define Checking Rule
Availability Check Rule
 Which availability check rule to use

Plant Parameters
Availability Check – Scope of Check
 Scope of check (checking control)

 What is checked
 MRP elements
 Demand elements
 Supply elements
 Replenishment lead time
 Check without RLT (replenishment
lead time)
 Material must be available
 Will not include replenishment possibility
 Check with RLT (box not checked)
 Will include replenishment possibility

Control ► Operations ► Availability Check ► Define Scope of Check
Availability Check – Check without RLT
Check w/o RLT Date Outcome Start Date End date
Checked Today All missing
Checked + 3 days All missing
Checked + 4 days All missing
Checked +5 days All missing
Not checked Today TRWA missing Today + 4 days
Not checked + 3 days TRWA missing Today + 4 days

(incl today)
Not checked + 4 days TRWA missing +2 +5
Not checked + 5 days Available +3 +6
DXTR Material Master

- In house production time: 4 days
- Total replenishment lead time: 5 days
Availability Check: Relationships
Scope of check
Example: PP + 02
Checking rule Assigned to Plant

Example: PP Example: Dallas
Checking group Defined in Material master

Example: 02 Example: DXTR1000
Availability Check – Checking Control
 Order control
 When is the check automatically executed?
 On order create
 On order release
 Configured for combination of
 Plant
 Order type
 Process step
 Create
 Release
Scheduling Parameters
 Specified of Plant + order type + scheduler

 Type of scheduling (determine start/end dates)
 Lead time scheduling / detailed scheduling
 Use routing data and floats
 Standard orders always use lead time scheduling
 Schedule in the past (and reduce lead time)
 No lead time scheduling
 Use data from material master
 Scheduling control
 Backward vs. forward
Configuration Steps Demo – Scheduling Parameters

Control ► Operations ► Scheduling ► Define Scheduling Parameters for
Production Orders
Activate Requirements Planning
 Material requirements planning

 Based on bills of materials
 Single level vs multi-level
 Single item vs. total planning
 Activate requirements planning

 Makes available complex options
 Without activating planning

 Only single item, single level is available
Configuration Steps Demo – Activate MRP
 Navigation: SAP Customizing Implementation Guide ► Materials Management ►

Consumption-Based Planning ► Planning ► Activate Material Requirements
Planning
Confirmation parameters
 Defined for
 Plant + Order type
 Process control
 Tasks
 Automatic GR
 Backflush
 Actual costs
 Options
 Immediately
 Later (via program)
 Later (via background job)

Control ► Operations ► Confirmation ► Define Confirmation Parameters
 Checks
 Operations sequence
 Valid for operations confirmations
 Do not check
 Check and warn
 Check and error
 Tolerances (under/over delivery)
 Do not check
 Warn
 Error
 Confirmation type
 Partial
 Final
 Open reservations
Work center control keys
 Determines tasks to be completed with regard to

operations in a routing
 Scheduling
 Internal vs. external processing
 Costing
 Confirmation
 Printing
 Navigation: SAP Customizing Implementation Guide ► Production ► Basic Data ►

Work Center ► Routing Data ► Define Control Key
 Determines tasks to be completed with

regard to operations in a routing
 Scheduling
 Internal vs. external processing
 Costing
 Confirmation
 Printing

Work Center ► Routing Data ► Define Control Key
Routing
 Assigned to
 Work centers
 Control key from WC are copied to routings
 Reference indicator: data in routing cannot be
changed
 Routings
Work Center
Work Center Category
 Work center category

 Assigned to application areas
Assigned to
Configuration Steps Demo – Person responsible

Work Center ► General Data ► Define Work Center Category
Which steps have financial accounting (FI) or management
accounting (CO) impact?
 What steps have an FI / CO impact?
CO FI CO CO FI CO FI CO
 Need account determination (FI) for: Planned
Planned
order
order
Production
Production
order
order
Goods
Goods
issue
issue
Order
Order
confirmation
confirmation
Goods
Goods
receipt
receipt
Order
Order
settlement
settlement
 Goods issue
 Goods receipt
 Price difference(s)
 Need rules for controlling impact
 Planned costs (Production Order)
 Actual costs
 Material costs (GI)
 Labor costs (Confirmation)
 Settlement
 Goods receipt
 Variance
Costing Parameters – Costing Type
 Defines the purpose of costing

 Planned vs actual
Configuration Steps Demo – Define costing types

Control ► Integration ► Order Costing ► Define Costing Types
Costing parameters – Valuation Variants
 Defines what prices to use in valuing

 Materials
 Internal activities (labor)
 Subcontracting
 External processing
 Overhead
Configuration Steps Demo – Define costing variants

Control ► Integration ► Order Costing ► Define Valuation Types
Costing parameters - Valuation variant 006 (Planned)
Costing parameters – Costing Variant
 Combination of
 Costing type
 Valuation variant
Valuation
Costing type
variant
Costing variant
Production Order
 Order quantity: 10 bikes  Other costs:

 External processing (purchasing)
 Estimated material cost: $580 per bike  External processing (subcontracting)
 Based on MAP of materials
 Overhead
 Estimated labor cost: $25 per bike  Costing parameters:
 Plan price of labor: $50 per hour ($1 per minute)
 Costing type
 Estimated production time: 25 min per bike
 Valuation variant
 Costing variant
Planned Actual Target Variance

(estimate) (debit) (credit)
Material $5,800
(10 x $580)
Labor $250
(10 X 25 X $1)
Total $6050
Figure 6-37
Automatic Account Determination GI – Offsetting Entry
Modification Description
VAX GI for sales order
BSA Initial entry of stock
VBR GI for consumption
AUF GR for orders
Goods issue
Inventory RM RM Consumption Exp  MAP of materials at GI: $600 per bike

$ 6,000 1 1 $ 6,000  Automatic account determination
BSX GBB  BSX
 GBB
 Transfer to CO based on primary cost
Planned Actual Target Variance element associated with expense
account.
Material $5,800 $6,000
(10 x $580) (10 x $600)
Labor $250
(10 X 25 X $1)
Total $6050
Confirmation
 Allocation of cost
Cost center associated  From: Cost center associated with work center
with the work center
 To: production order
$ 260  Activity type: labor
 Activity price: $60 per hour
 Time recorded at confirmation: 26 minutes per bike
Material $5,800 $6,000
(10 x $580) (10 x $600)
Labor $250 $260
(10 X 25 X $1) (10 X 26 X $1)
Total $6050
Valuation of Goods Receipt
 Valuation of goods receipt

 Depends on price control
 Price control – S (standard price)

 Always standard price
 Price control – V (MAP)

 Determined by valuation variant assigned to order
costing
 Per valuation area (plant)
Costing type Valuation variant
Configuration Steps Demo – Define valuation of goods received

Costing variant GR valuation
Control ► Integration ► Define Valuation of Goods Received
Valuation of Goods Receipt
Configuration Steps Demo – Define valuation of goods received

Control ► Integration ► Define Valuation of Goods Received
Automatic Account Determination GR – Inventory Posting
Automatic Account Determination GR – Offsetting Entry
Modification Description
VAX GI for sales order
BSA Initial entry of stock
VBR GI for consumption
AUF GR for orders
Goods Receipt
Inventory FG Mfg.Output Settlement  Valuation of goods receipt

$ 6,000 $ 6,050 GBB  G/L account determined by automatic account
BSX determination
 BSX: Inventory account = inventory finished goods
 GBB: offsetting entry = manufacturing output settlement
Planned Actual Target Variance (plant activity account)
Material $5,800 $6,000
(10 x $580) (10 x $600)
Labor $250 $260
(10 X 25 X $1) (10 X 26 X $1)
Total $6,050 $6260 $6,050 $210
Automatic Account Determination – Production Variance
Settlement of Variance
Production Variance Mfg. Output Settlement  G/L account determined by automatic account
$ 210 $ 210
determination
GBB
 PRD: Production variance account
PRD
 GBB: offsetting entry = manufacturing output settlement
(plant activity account)

Material $5,800 $6,000
(10 x $580) (10 x $600)
Labor $250 $260
(10 X 25 X $1) (10 X 26 X $1)
Total $6,050 $6260 $6,050 $210
Cost Calculations
 Possible activities in a work center – determined by standard value keys

 Setup (SAP_01)
 Machine (SAP_02)
 Labor (SAP_03)
 Time spend on activities – determined by formula keys
 Scenario: production of bread

 Total labor cost = total labor (time) * activity price
 Time from routing: 10 hours per dozen loafs
 Production quantity: 60 loafs
 Total labor time = time per base quantity * quantity produced / base quantity
= 10 * 60 / 12
= labor time * operation quantity / base quantity
Formula key = parameter1 * parameter 2 / parameter 3
SAP007 (labor) = SAP_03 * SAP_09 / SAP_08
SAP006 (machine) = SAP_02 * SAP_09 / SAP_08
Standard Value Keys
 Specify parameters and standard values used

in formulae.
 Keys
 For different uses
 Parameters
 Setup
 Machine
 Labor
 Teardown
 etc.
 Standard value keys are assigned to work

centers Configuration Steps Demo – Standard Value Keys
 Ensure that required standard values are  Navigation: SAP Customizing Implementation Guide ► Production ► Capacity
maintained in the product routings. Requirements Planning ► Master Data ► Work Center Data ► Standard Value ►
Define Standard Value Keys
Formula Keys
 Formula used to calculate

 Costs in costing
 Execution times in scheduling
 Capacity requirements in capacity planning
 Formula key
 For specific calculations
 Formula
 Parameters
Agenda
 Procurement Processes Overview 

 Business Rules and Parameters 
 Master Data
 Testing
Master Data
 Material master
 Bill of materials
 Activity type
 Activity price
 Capacity
 Work center
 Routing
Material Master
 Views discussed for other processes

 Basic data
 Storage
 Accounting
 Purchasing
 Sales
 Views relevant to production

 MRP views – plant specific
 Work scheduling – plant specific
Material Master
Configuration Steps Demo – Material Master – Raw Materials
 Create raw materials (IV.3.6)

 Navigation: SAP menu ► Logistics ► Materials Management ► Material Master ►
Material ► Create (Special) ► Raw Material
Configuration Steps Demo – Material Master – Semi-finished Good
 Create semi finished product (IV.3.7)

Material ► Create (Special) ► Semi-finished
Configuration Steps Demo – Material Master – Finished Good
 Create finished product (IV.3.8)

Material ► Create (Special) ► Finished Product
Material Master – MRP Views
 Parameters
 MRP controller
 Scheduling margin key
 Availability check
 Additional data
 In house production time
 Goods receipt processing time
Material Master – Work Scheduling View
 Production supervisor
(scheduler)
 Production scheduling profile
 Times
 Lot size dependent or
 Lot size independent
 Lot size dependent
 Setup
 Processing
 Interoperation
 Lot size independent
 In house production time
Bill of Materials (BOM)
 List of components to produce the product  A component can have its own BOM to creates a
 Material BOM – the most common form of a BOM multi-level BOM
 Order BOM – used in make-to-order environment when
the customer can customize the product
 BOMs are used in
 Material planning
 Used to determine:  Production
 Net requirements for all materials  Procurement
 Order quantities  Product costing
 Available to promise dates
Bill of Materials (BOM): Deluxe Touring Bike (Black)
DXTR1000
Deluxe
Touring Bike
(Black)
TRFR 1000 DGAM1000 TRWA 1000

TRHB 1000 PEDL 1000 WDOC1000
Touring Derailleur TRSK1000 Aluminum CHAN 1000 BRKT 1000 Packaging
Handle bar Pedal Warranty
frame gear Seat kit wheel Chain Brake kit PCKG1000
assembly assembly document
(Black) assembly assembly (2)
TRWH 1000
LWSH1000 BOLT1000
TRTR 1000 TRTB 1000 Touring HXNT1000
Lock washer Socket head
Touring tire Touring tube aluminum Hex nut
(2) bolt
wheel
Bill of Materials
 Material number: Material master must be defined

 Plant: BOMs are plant specific
 Alternative: Multiple BOMs can be defined
 Validity: BOMs are valid for specific periods
Configuration Steps Demo – Bill of Materials
 Create bill of materials (IV.3.9)

 Navigation: SAP menu ► Logistics ► Production ► Master Data
► Bills of Material ► Bill of Material ► Material BOM ► Display
Bill of Materials
 Item Category
 Stock item
 Non-stock item
 Variable sized item
 Document item
 Quantity
 Assembly
 Semifinished good
 Has its own BOM
Direct Allocation (Review)
 Allocation of the cost of activities based on

 Measurable activity types and rate
 Type: programming, computer repair, painting
 Rate: $100 per hour
 Posting data
 Sending cost center
 Receiver (controlling object)
 Activity type
 Quantity of activity
Internal Activity Allocation Example (Review)
 Sending cost center: IT cost center

 Activity type: Programming ($100 / hour)
 Quantity: 12 hours Secondary Cost Element (SCE)
 Receiving object: Marketing cost center

 Could be other objects
Debit Credit Debit Credit
 Posting logic:
 Double entry
 Sender credit 1200 1200
 Receiver debit
 FI impact: None! IT Cost Center Marketing Cost Center

 Occurs at a different point in time, such as when wages
are paid to programmer
Confirmation (Review)
Debit Credit  Allocation of cost

 From: Cost center associated with work center
260  To: production order
 Activity price: $50 per hour
 Time recorded at confirmation: 26 minutes per bike
Cost center associated
with the Work center

Material $5,800 $6,000
(10 x $580) (10 x $600)
Labor $250 $260
(10 X 25 X $1) (10 X 26 X $1)
Total $830
Activity Type (Review)
 Activity unit (unit of measure)

 Cost center category
 Activity type category
 Allocation cost element
 Price indicator
Configuration Steps Demo – Create activity type
 Navigation: SAP menu ► Accounting ► Controlling ► Cost Center

Accounting ► Master Data ► Activity Type ► Individual Processing ►
Create
Activity Prices (Review)
 Defined for a combination of

 Cost center
 Activity type
 Parameters
 Plan activity (quantity)
 Unit of measure (hours)
 Activity price
 Fixed
 Variable (per unit)
 Price unit
 Per 1, 100, dozen
 Cost element for allocation
Configuration Steps Demo – Define activity price
 Navigation: SAP menu ► Accounting ► Controlling ► Cost Center Accounting ►

Planning ► Activity Output/Prices ► Change
Capacity
 Parameters
 Category
 Factory calendar
 Default = plant calendar
 Versions
 Active vs other
 Base unit of measure
 Definition
 Start, end, breaks
 Capacity utilization rate
 Actual = theoretical * rate
 Number of individual capacity
 Number of machines, people
 Total capacity = operating time * number of individual
capacities * utilization rate
Work Center – Basic Data
 Assigned to a plant
 Work center category
 What data are needed
 Assigned to applications
 Location
 Person responsible
 Usage (task list)
Configuration Steps Demo – Define work center
 Navigation: SAP menu ► Logistics ► Production ► Master Data ► Work Centers

► Display
Work Center – Basic Data
 Standard value key

 Rules for parameters in key
Work Center – Default Values
 Previously discussed
 WC control keys are copied to routing
 Ref. Ind = key in routing cannot be changed
Work Center - Scheduling
 Scheduling basis
 Capacity category
 Capacity
 Execution time
 Formula keys
Work Center - Costing
 Controlling data
 Controlling area
 Cost center
 Activities
 Formula key to calculate time
 Activity type to determine rate
Product Routing - Operations
 Operation  Base quantity (used in formula keys)

 Work center  Times (used in formula keys)
 Setup – time and activity type
 Plant  Machine – only time
 Control key  Labor – time and activity type
Configuration Steps Demo – Define work center
 Navigation: SAP menu ► Logistics ► Production ► Master Data ► Routings ►

Routings ► Standard Routings ► Display
Agenda
 Procurement Processes Overview 

 Master Data 
 Testing
Testing – Scenarios
 Create a planned order

 Convert to production order
 Issue materials from storage to production order
 Confirm production
 Receive materials from production order to storage
 Settle production order costs
Agenda

 Master Data 
 Testing 

BPC SAP ERP CH 06 Production 1e FInal

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BPC SAP ERP CH 06 Production 1e FInal

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The Production Process

Business Process Configuration with SAP ERP

 Production Process Overview

 Generated by other processes

 Can be created manually

 Authorize production  Production order outcomes

 On creation order status is created (CRTD)  Automatic or manual

 Movement type 261

 Order level confirmation

 Goods receipt into storage

 Accumulated in cost centers

 Work-in-progress (WIP) inventory

 Settle the difference between planned and actual costs (variance)

 Production Process Overview 

 A location within a plant.

Configuration Steps Demo – Work Center Location

 Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ►

 Production Process Overview 

 Number ranges  Availability check

Configuration Steps Demo – Plant Parameters

 Navigation: SAP Customizing Implementation Guide ► Production ► Materials

Configuration Steps Demo – Production scheduler

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

 Monitors the processes to ensure efficient flow

Configuration Steps Demo – Production scheduler

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

 Assign to material master

 Material master assignment

 Person(s) responsible for ensuring availability of materials

Configuration Steps Demo

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

 Defined for: Plant + Order type

Configuration Steps Demo

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

 Order type parameters

 Convert planned orders

Configuration Steps Demo

 Navigation: SAP Customizing Implementation Guide ► Production ► Material

 Floats: buffers to accommodate unforeseen delays in production

Release Basic Scheduled Scheduled Basic

Configuration Steps Demo – Plant Parameters

 Navigation: SAP Customizing Implementation Guide ► Production ► Materials

Configuration Steps Demo – Define checking control

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

 Define checking rule

Configuration Steps Demo – Define checking control

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

 Which availability check rule to use

Configuration Steps Demo – Plant Parameters

 Navigation: SAP Customizing Implementation Guide ► Production ► Materials

 Scope of check (checking control)

Configuration Steps Demo – Define checking control

 Navigation: SAP Customizing Implementation Guide ► Production ► Shop Floor

Check w/o RLT Date Outcome Start Date End date

Checked Today All missing

Checked + 3 days All missing

Checked + 4 days All missing

Checked +5 days All missing