CH 6 PP SAP ERP Production Process Configuration Notes

Production Process Overview

• Planned Order

  • A request for production involving the following details:
  • What material
  • How many
  • When
  • Can be generated by other processes like fulfillment and project management or created manually.

• Production Order

  • Authorizes production and requires conversion from planned to production order when initiated.
  • Key details include:
  • Material to produce
  • Quantity and timing
  • Production site and resources
  • Estimated cost
  • Outcomes affecting:
  • Scheduling
  • Capacity planning
  • Availability checks
  • Reservations
  • Preliminary costing
  • Purchase requisitions

• Order Release

  • Upon creation, the order status is CRTD and it must be changed to REL to proceed.
  • Release can occur automatically or manually.
  • Different levels of release include:
  • Header: all operations
  • Specific operations with status REL
  • Partially released as PREL

• Goods Issue

  • Movement type 261 affecting:
  • Material, Financial (FI), and Controlling (CO) documents
  • Updates inventory and reservations
  • Posts costs to the production order.

• Confirmations

  • Applicable at order and operations level.
  • Impacts labor cost calculation and posts cost to the production order.

• Goods Receipt

  • Involves internal storage management with movement type 101.
  • Updates effected in:
  • Material, FI, CO documents
  • Material master for quantity and value
  • Production order details including quantity, date, costing.

• Periodic Processing

  • Encompasses overhead calculation, work-in-progress determination, and settlement processes to address:
  • Variances between planned and actual costs.

Enterprise Structure

• Components include:
  • Plant location (logistical center)
  • Valuation area (financial accounting)
  • Storage location (material inventory)
  • Controlling area (financial management)
  • Cost center standard hierarchy (financial overview)
  • Work center (production capacity).

Business Rules and Parameters

• Key parameters to configure include:
  • Number ranges for orders
  • Production scheduling profiles to automate actions like:
  • Release on creation
  • Scheduling on release
  • Goods receipt on confirmation.

Master Data

• Significant aspects of Master Data include:
  • Material master encompassing views for different processes such as production, purchasing, and MRP views.
  • Bill of Materials (BOM) listing all components required for production, with the ability to define BOMs as per product variants.
  • Work center definitions for resource tracking and management.

Testing Scenarios

• Suggested testing scenarios for validation of the configurations include:
  • Creating a planned order and converting it to a production order
  • Issuing materials to the production order
  • Confirming production activities
  • Receiving and settling production order costs into storage.

Costing

• Comprehensive costing involves:
  • Determining costs by type (planned vs actual).
  • Valuation variants impacting material pricing, labor, subcontracting, and overhead allocation.