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What is a Production order / Process order

A Production order or a Process order is an object in SAP which identifies and evaluates the following:

1. The quantity that is to be produced for a finish product2. The total planned time that would be consumed to manufacture the product at each operation,

thus calculating the execution start time and the end time at each operation and in turn for thewhole order. This is made possible by exploding the Routing/Recipes for the order quantity.

3. The total planned raw material quantity that would be required for manufacturing the product,derived through exploding the bill of material for the order quantity.

4. The total PRT consumption derived by exploding the PRT requirement for the order quantity5. The total cost required for manufacturing the order, derived through adding up the raw material

cost, the operational activity costs and the PRT costs; additionally you can also add overheads asrequired to the order costs.

Demonstration

Assume that a production order or a process order in SAP is an open box (an hungry monster)

which gulps up all the raw materials required for production, all the cost of these raw materials, whichgulps up all the operational efforts or activities booked to produce a product, the cost associated withoperational activities (& overheads), all the issued Production Resource tools (PRT) and the costsassociated with it.

Production order/Process orderQty = 10 Units Material M1

Issued Raw MaterialsSF1 10 Units - $2/Unit

RM1 20 Units - $0.5/UnitRM2 10 Units - $3/Unit

Total cost Booked on Order= $(20+10+30) = $ 60

Booked Operational Activity0010 Time Reqd - 1HR/unit Rate - $10/Unit

0010 - Electricity Required 0.5KWH/Unit (Rate -$20/KWH)

0020 Time Reqd - 0.5 HR/unit Rate- $3/Unit

Total Time required for order= (10 + 5) HR

Total cost required for Activities= $ (100 + 30) + $ [(0.5*10*20)] (Electricity Cost at

Operation 0010) = $ 240

Total OverheadsOverhead = $20

Issued PRT costPRT1 at Operation 0010 = Required for 10HR -

$20/HRTotal PRT cost = $200

Total Order cost= $60 + $240 + $20 + $200 = $520

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What happens when a SAP Production order / Process order is created

When you create a production for the production of the header material, the following master datagets assigned to the Production order/Process order:

A. Task lists - Material Routing/Material Recipes/Material Rate Routings/Reference Operations sets

or Reference Rate Routings, get assigned to the order.B. Bill of Materials gets assigned to the order.C. Production Versions if maintained for the header material and the BOM selection is defined as

Selection by Production versions, in which case the production versions will pull in the Routingsand/or the Bill of Materials master data instead of them getting pulled in, individually in theorder. To allow production version perform pulling in the master data you have to choose option2 or 3 in the MRP 4: BOM explosion selection field.

Criteria to create an Order: Think over it

All the products which are manufactured in-house and stored in the inventory would need anorder 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 beingproduced and also a co-product of appreciable value being produced from the same order in apredetermined percentage split.

The first goal in implementing SAP PP or SAP PPPI is to understand the products which aremanufactured in the organization and the way they are manufactured. It becomes difficult for a consultantto 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 havingtheir own orders. The best way to decide this is by finding answers to some questions like:

1. During the production of the final product, are there any stages where you break the productionprocess and store the half made product for appreciable amount of time. This breaks thecontinuity of manufacturing

2. Where ever the production breaks and storage is required, you can call the half made product asa semi-finished product.

3. All the semi-finished products have their own BOM and their own Task list and thus they wouldhave their own orders.

4. A final Product may already have semi-finished products marked which go in to making it. Thuswe have to adopt the same and create separate orders for the same.

5. Finally, one more interesting argument can be, anything in SAP which needs to be produced andstocked should have an order.

6. Even if the organization decides to stop storing a semi-finished product in inventory andoptimize/increase the continuity of the production, they have to keep in mind that they cannotever bring it in to stock for the purpose of further consumption or sale to any customer (if everthey decide to sell it).

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Bottom-line: You have to create multiple orders in the system for producing each of the stock ableproducts.

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. Thusall 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-productsis that it reduces the total percentage of the header material to be received stock proportionate to thepercentage you have received for the co-products. For example if the predefined co-product split rule is95% receipt for the header material and 5% for the co-products, you can only receive 95 units of 100 unitsfor 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 thatwould be received for the co-product and header material. The co-product also needs to be maintained inthe 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 arereceived during production of the main product. These products are either sold off for very less price orscrapped 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-productreduces the order cost proportionate to the cost of the received product. So if you receive semi-finishedproducts 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 materialas a component in the header material BOM with a negative quantity.

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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 materialfor 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 itreduces the total percentage of the header material to be received stock proportionate to the percentageyou have received for the co-products. For example if the predefined co-product split rule is 95% receiptfor the header material and 5% for the co-products, you can only receive 95 units of 100 units for theheader 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 formaterials which do not have appreciable value at all) apart from receiving the header material. The onlyissue 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 inSAP.

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 createjust 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 componentof B assigned to the X BOM and components of C assigned to the Y BOM. Then assign thesemi-finished material B to the Phantom BOM X and assign the semi-finished material C to thePhantom 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 asby-products.

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A FinishedProduct

X Phantom MaterialBOM

Y Phantom MaterialBOM

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 torequired operations. You would combine the operations required to produce the semi-finished productB 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 andthere 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, BOperation 0040 -Operation 0050 - Assign components X, Y, E, COperation 0060Operation 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 youcreate the confirmation at operation 0030, the component B is automatically backflushed and receivedin 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 wouldhave to manually re-issue the product B to the same order using movement type 532. This nullifies the531 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 type531) 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 Ausing movement type 532 (reversal movement of 531).

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You could possibly think of automating the process of re-issue of the semi-finished products to the orderusing 531 movement type as required using ABAP developments.

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 formanufacturing a product. It is a created as a master data in SAP. Upon selection of a Routing/Recipe theoperations, 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 typewhether you want to select the Routing/Recipe manually or automatically. You can choose manualselection 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 the manual selection option in the order type dependent parameter settings, SAPwill 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 tochoose from, it pulls in Routings/recipes for the production order header material which is valid from theorder 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 inthe Order type Dependent Parameter settings, thus allowing the SAP to choose a valid Routing/Recipeduring order creation.

Normally for SAP PP, you can choose the standard 01 Selection ID and for SAP PPPI you can choosethe 02 Selection ID or create your own.

Actual Selection: When the system chooses a Routing/Recipe, it pulls in Routings/recipes for theproduction order header material which is valid from the order start to order finish date and whose lotsizes matches with the production order quantity.

Jeopardy: When automatically selecting a valid Routing/Recipe, if the system comes across more thanone selection, it again throws the ball in your court and asks you to select manually from that list.

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Unfaithful: During automatic Routing/Recipe selection, if the system results in not finding a validRouting/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 BOMselection through Production versions, in which case if there is a Routing/Recipe also assigned to theProduction version the system would choose that Routing/Recipe instead of using the automatic Routingselection (through selection ID set in configuration).

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 ofthe header material.

Configuration: When an order is created, you can choose whether you want the BOM to be pulled in theorder 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 orderthrough the above configuration, the actual pulling of the Material BOM in the order is performed by thevalue 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 theRouting is attached and the order is scheduled so that it gets the Order start date or Order Finish Date andthe BOM explosion number and uses it as BOM explosion date. You can carry out these settings intransaction 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 beselected 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 thelot 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 topicture, 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 uponthe lot size, validity dates and the BOM maintained in the production version, and if a valid

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production version does not fit then the system gives you an option to choose the BOM throughmanual selection methods.

d) If you choose to explode the BOM through only production version method then explosion ismandatorily based upon the BOM found in the version for lot size and date validity and if a validproduction version is not found then order creation is aborted.

Note: Unless and until you use the selection method as the Production Version selection method, thesystem will always choose the BOM alternatives

Why a BOM does does not get exploded in the Order:

A Material BOM fails to get exploded in the production order, because:

The BOM is not active and must have been set to inactive status in the BOM header screen

The BOM is not valid for the order lot size, i.e., the BOM lot size range is does not fail in the orderquantity.

The BOM is not valid for the order basic dates, i.e., the BOM validity dates is different than the orderbasic dates; the BOM is not valid in the date range for which the order is created.

If you pulling in the BOM in the order, through the use of Production Versions, then the lot sizes andthe version validity dates should fall in the order quantity and the order basic dates, similar to what ismentioned in the point number b and c.

If the BOM that is being pulled in, is not relevant for production.

If the Material Master X-Plant Status or the Material Master Plant Status is set to disallow production.

If the BOM is not configured to be pulled in the order as per the order type specific configurations.

SAP Production /Process Order Configuration required

So as to create a production order the following configuration is required:

a) Order type Definition settingsb) Order type Dependant parameters settingsc) Assigning a number range (external or internal) to the order typed) Scheduling parameters for an Order typee) Define Confirmation Parametersf) Configure production scheduling profileg) Default operation for the generation of operationsh) Default values for availability checks

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 foryour 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, tryto 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 wouldnot be overwriting PP01 and it would always be there for your reference.

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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 worrymuch 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 thathave certain characteristic valuesand statuses.

The values of the classified orders can be grouped with the Product Drilldown Function and OrderHierarcy function.

Again this is a SAP Controlling related Parameter. This will not be discussed here and you need notworry much about it. Ask your SAP CO Consultant to take care of it.

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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 youdont 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 thedelete 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 thisvalue. This value decides the settlement rule for orders. It is normally maintained as PP01 for Productionorders 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 facilitatesautomatic 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 collectivestructure through Special procurement key 52 in MRP 3 view, then if there is a requirement for MaterialA, 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 theorder 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" isautomatically issued to order "A".

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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 isjust released, the PRT status explaining that the orer is just printed, the PRC status explaining that theorder 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 justlocked 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 ofuser statuses, for which you would have to create a Status profile that complies all the user statusesthat 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 thegoods movements to the order because system status TECO allows goods movements even after it isactivated.

For the above case to work successfully for the order header, you should assign the order header statusprofile - ZST1 to the order type, here in this field.

Similarly, you may want to disallow any operation level confirmations, untill all the operation relatedcomponents have not been issued completely. To do this you would have to create a Operation levelstatus 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 newOrder type dependant parameters for ZP01:

Again it is wise to copy the order type dependant parameters from the PP01 Parameters. The parametersin an Order type are explained below with the use of a Screen Photo.

A) The First Tab of this configuration is the Planning Tab:

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Production versions:

This setting allows you to decide whether the production versions should be selected manually in theorder 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 forthe order.

Routing/Recipe selection is configured for automatic selection of Routings/Recipe in the orders. Againstevery 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 hasalready 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

SelectionID

SelectionPriority

Task ListSelected

Usage Status Status Description

01 1 N 1 - Production 4Released(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:

Firstchoose the Routings task list which has usage 1 and status 4, if this Routing is not found for theproduction order material then as a,Second priority option, the system should try to find the Routing task list of usage 1 and status 1 iffound, if this Routing is also not found, then the system as a,Third priority optionshould 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 thesystem has a,Fourth optionto 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 ofusage 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 orcontinue creation of Production oeder based on the configuration.

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Sequence Exchanges:

You should decide whethere you want the system to automatically exchange task list sequences in theorder 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 exampleyou might want to have a value "N" - Routing. In other words it is not possible to have another task listtype 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, tothe 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 typesin the order. Once the routing type and the corresponding routing, that is to be pulled in the order, isdecided by the system, the system decides how it is to be pulled in the order, i.e., whether it should bepulled 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 typewhether you want to select the Routing/Recipe manually or automatically. You can choose manualselection 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, SAPwill offer a Task list pop-up selection in the order creation allowing you choose from the list ofRoutings/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 tochoose from, it pulls in Routings/recipes for the production order header material which is valid from theorder start date and whose lot sizes matches with the production order quantity.

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A) For Automatic Routing/Recipe Selection:

In the Routings or the Recipes configuration, we have to create a Selection ID and assign the same inthe Order type Dependent Parameter settings, thus allowing the SAP to choose a valid Routing/Recipeduring order creation.

Normally for SAP PP, you can choose the standard 01 Selection ID and for SAP PPPI you can choosethe 02 Selection ID or create your own.

Actual Selection: When the system chooses a Routing/Recipe, it pulls in Routings/recipes for theproduction order header material which is valid from the order start to order finish date and whose lotsizes matches with the production order quantity.

Jeopardy: When automatically selecting a valid Routing/Recipe, if the system comes across more thanone 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 BOMselection through Production versions, in which case if there is a Routing/Recipe also assigned to theProduction version the system would choose that Routing/Recipe instead of using the automatic Routingselection (through selection ID set in configuration).

Operation Increment:

You can enter you own increments to be used when operations or activities are automatically numbered.

Normally the increments of 0010 are used.

Also remember to put on the "Entry tool" indicator.

BOM Application:

Use the standard PP01 BOM Application for Production orders and PI01 BOM Application for Processorder.

Before assigning a BOM Application, you should make sure that the BOM Application has a BOMselection ID assigned to it. The BOM Selection ID contains the list of BOM usages that should beautomatically 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

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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 thefollowing:

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 batchsearch procedure that contains various search strategies arranged in priorities of use.

For example the Search Procedure CO0001 - Standard CO Search Procedure contains the followingsearch 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 Plant

CO0001 40 Z001

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Therefore the batch search Procedure works, to select the batch in orders, in a given fashion asbelow:

Step 1:Components whose batches are to be selected automatically or manually through a batch searchcriteria, 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 searchstrategy master data can be maintained for any 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 ordertype 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 thatneeds 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 everycomponent that needs to be searched for batches in the order. This level is a detailed level and the extentof master data maintainance is huge, for every order type, at every plant and every header material that isto 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 levelsmaintained in Z001 - For the plant C002 all the components or materials which are marked for batchsearch 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 Batchclasses that should be used in the search or restricting through a sort rule like FIFO or restricting throughBatch 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 Batchstill 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, thena default is choosen from here.

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Reservations and Purchase requistion Creation:

This settings governs the creation of reservation and purchase requisitions for external operationprocessing. It allows you to set when it should created - at order creation (immediately) or at order releaseor it should never be created.

Inspection Type:

You can fix an inspection type which should be used for Quality Inspections in SAP, like inspection atorder GR, In-Process inspection or By-product inspection. If you have multiple inspection types for thematerial 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.

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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 controllingaspects related to costing of the order and the maintaining the cost sheets.

D) The Fourth Tab is the Display Profile Tab:

The final tab is the Display Profile tab that wants you to enter the reporting profiles for collective ordersand missing part list. You can as well keep the standard profiles here.

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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 numberrange to the order type.

As a process you need to create a number range or use an existing number range and assign the order typeto it. When you are creating a number range, you can mark it as an allowed internal number range or youcan 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 youmay 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 beenassigned to a number range; in which case you need to select the order type and assign it to a numberrange. 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 beassigning order type PI01to the "Process order (Internal number assignment)"

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Method step 1- Select the number range that you want to assign the number range to "Processorder (Internal number assignment)".

Method step 2- Select the order type that you wish to assign to a number range, from the "NotAssigned order types section". Here we are selecting order type PI01. When you select the ordertype 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 shouldpress the "Element Group Button" so as to make the assignment. This is clearly shown in thescreen shot 2 below.

Screen shot 1 Screen shot 2

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 - "Processorder (Internal number assignment)".

Method step 1- Select only the Order type which is already assigned to a number range byDouble-clicking on it or by pressing the "Select Element button", once you have selected theorder type the color turns from black to blue. Do not select the indicator of the number rangegroup - "Process order (Internal number assignment)".

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Method step 2- Then Select any of the order type from the "not - assigned order types" sectionat the bottom of the screen by double-clicking it or by pressing the "Select element" button.Theorder type that is selected is the position of the order type (PI01 in the example) to where youwant it to be brought back to.

Method step 3- Press the "Element /Group" Button to remove the assignment and bring back theassigned 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

When you configure a default operation for an order type, it is possible to proceed creating an orderwithout 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. Ifyour intensions are to abort creation of an order in the absense of a task list then you should not configurethe default operation.

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If you wish to have an order created without a task list then you should create this configuration. It is afact that you cannot create an order without any operation, therefore you are indirectly fooling the systemby 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 ofthis 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

When you configure the Order availability checks at the point of Order creation or Order release thefollowing controls are available:

1) No check is made on Material (component) Availability when the order is created and saved orreleased 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 ischecked 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 processorder in SAP PP or PPPI, and components are missing in stock for production, then there are 3 options forconfiguration - a) the user decides the conversion - b) creation to proceed even if components are notavailable - c) creation to abort if missing materials.

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Lateral thinking- It is wise to stop or let the user decide, the creation of an order if the components areno available. But if you are planning for mass conversions of planned order to create production/processorders 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 massconversions.

5) The above point is also applicable in the release setting of availability controls - where the user candecide release or the release proceeds automatically even if components are not available or the release isstopped.

Lateral thinking-It is wise to stop or let the user decide, the release of an order if the components are noavailable. But if you are planning for mass release of orders, then it is not wise to have the user decidethe release, as the system will always prompt you a pop-up message for a decision where components arenot 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 canbe 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 wherethe consultant needs to assign a capacity availability check profile and configure whether he/she wants tocreate/realese the order if capacity is short or abort the same. You can even decide to not have a Capacityavailability 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 stopthe order release if the order header batch is not created or you can decide to proceed even if the orderheader batch is not created by the system, for various reasons.

Configuring Production Scheduling Profile

SAP offers Production scheduling profile as a standard profile to configure order controls. Such controlsare 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 orderlevel so that you can opt for different set of control for different kinds of producable materials.

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The following controls can be set:

a) On creationAutomatic 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 Printingof Order papers on release of order (when the order status is REL) - If you areplanning 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 Schedulingof Order on order release (when the order status is REL) - This is recommendedto be set. But donot use this if the order planning and scheduling is happening from an external systemlike APO or i2 etc.

Automatic Linksof 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 locationupon confirmation of the final operation in the order, then you can use this indicator rather than using thecontrol keys in the order operation. Setting automatic goods receipt at this level reduces the effort ofmaster data creation.

d) Capacity Planning

If you are planning to carry out Capacity Availability checks in the order for the header materials (whichwould 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 profileis used by the system to carry out capacity availability checks in anorder when the order is created or release as per the settings in the order availability controls atcreation/release. SAP has provided an option to have the Capacity overall leveling profile maintained atmaterial level rather than setting the profiles at order levels in the order availability controls. TheCapacity Overall Leveling profiles once assigned here decides the way in which the capacity leveling hasto 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 thesystem is set to create or release anyways inspite. The below indicators help the system to make decisionson 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 operationwork center of the header material relavent for finite scheduling during capacity availability checks, andin cases where there is no capacity availability for loading operations on work centers, the system loadsoperations on dates where there is sufficient capacity (automatically rescheduling to dates where their isavailability).

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And by choosing the "confirm capacity indicator" for capacity availability checks, you are indirectlytelling the system to incorporate loads in work center loading reports for where there is sufficient capacityavailable, in other words the operations for which there is no sufficinet capacity available will not beloaded 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 theconfirmed quantity is less than (deficit) or more than (surplus) the operation or order quantity (confirmedscrap quantities) are not taken in to account , then the system displays the Yield Variances in the orderheader.

If you set this indicator the variances (if any) donot flow in to the order and MRP. This is notrecommendedto be used under standard circumstances since Material requirement planning would notconsider 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 readjustthe planned operation qauntities of the order if you confirm the order with a smaller/larger yield than thatplanned (including the confirmed scrap quantities). Along with readjusting the planned operationquantities, the components quantities of the components assigned to the operation also changesproportionately.

This is applicable for the operation that has a yield variance and all the operations below the operationthat has a change.

The system carries out the following in case there is a difference in the confirmation of planned quantitiesand the actual quantities (during order or operation confirmations)

o Automatically readjusts the operation quantities for all operations below the concerned operation,including the concerned operation.

o Automatically readjust the component quantities for all the components assigned to the operationsbelow the concerned operation, including the concerned operation.

o Readjusts the planned costs for all the operations and the order, overall. Though this recosting hasto be done manually and it is not triggered automatically by the system.

o Automatically reschedules the operations giving new dates and new capacity requirements.o 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.o Automatically readjust the Transport requests created for WM.

For example -

Operation 0010 - Planned Qty = 100Operation 0015 - Planned Qty = 100Operation 0020 - Planned Qty = 100 - Component 10 - Qty = 100Operation 0030 - Planned Qty = 100 - Component 20 - Qty = 100, Component 0030 - Qty = 50Operation 0040 - Planned Qty = 100 - Component 40 - Qty = 100Operation 0050 - Planned Qty = 100

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If the confirmed qty in Operation 0015 is 102, then all the below operations and the component quantitiesare changed proportionately as shown below:

Operation 0010 - Planned Qty = 100Operation 0015 - Planned Qty = 102Operation 0020 - Planned Qty = 102 - Component 10 - Qty = 102

Operation 0030 - Planned Qty = 102 - Component 20 - Qty = 102, Component 0030 - Qty = 54Operation 0040 - Planned Qty = 102 - Component 40 - Qty = 102Operation 0050 - Planned Qty = 102

f) Batch Creation at Order level

If you want to have batch created at order level for certain header materials, then you can create aproduction scheduling profile and assign this profile to them.

You can configure whether you want Order level header material batch creation at order creation orrelease.

Not only, can you configure order header material batch creation, but you can also configure whether youwant the batch created and classified in the order foreground or in the background (optional ormandatory).

g) WM related Transfer Requirements

Here you can specify whether you want to automatically create WM related transfer requirements ortransfer orders for the order components (whose storage location is maintained, Storage location isrelevant 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 aplanned order in to order or which can be used for manual creation of production order.

Configuring Order type Scheduling Parameters

The following Order type Scheduling parameters help in scheduling the order. The scheduling parametersare set for the order type at the plant level for a production scheduler. If you want to use the Order typescheduling parameters across all the schedulers you should put a * (star) in the field while creating theconfiguration.

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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 inthe case of Production orders or Process orders the selection ID is not set here as the same is selectedthrough the order type dependent settings. Though you can enter the rate based scheduling routingselection 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 helpin choosing the respective task lists, you can select the scheduling indicator if you want lead timescheduling done, and you can also select the capacity requirement indicator if you want the capacityrequirements 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 typedependent 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 thecapacities requirements generated from orders on workcenters.

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B) Adjust Dates

In the case of Lead time scheduling (Scheduling using the task list), every rescheduling, results in changeof basic dates; now it is your choice whether you want these basic dates to be re-adjusted after everyrescheduling.

It should also be noted that in backward scheduling the Basic start date is readjusted and in forwardscheduling the Basic finish date is readjusted.

Lateral Thinking- Normally when the basic dates are pulled in from an external system or set from atool (SAP or Non-SAP) you would really not want to reschedule or readjust the dates. If you readjust theproposed dates will be rewritten, which is not acceptable as the dates proposed by the tools are moreaccurate than that of the basic SAP ECC dates.

Now talking about readjusting the dates of the dependent requirements because of a change in basic datesof a superior level order, you have a choice whether the requirements are to be rescheduling at the startdate 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 basicstart 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 explainedin 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 theorder can lie with past dates. Another use of this indicator is that when the number of days in the past foran 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", tobring back the order dates to current dates.

The Automatic Scheduling indicator helps in rescheduling the order everytime it is saved, with the resultsupdated in the basic start date and finish date fields. If this indicator is not set, the system reschedules theorder, 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 logindictor.

With an Active verison in the capacity of the work center with detailed entry of breaks and shiftschedules, 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 theconventional basic dates in the order.

The Shift Order Indicator is used when you dont want to consider the actual dates of the partiallyconfirmed operation and proceed with rescheduling the entire order. Wise use of this indicator isrecommended.Reduction in operation lead time is to be indicated here.

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Configuring Confirmation Parameters

Confirmations parameters are to be set for orders types so as to allow confirmations as per the clientsrequirements.Confirmations in SAP PP/PPPI or even SAP REM refers to booking the completion of productionquantities 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 inoperational activities (in the background).The method or manner in which these confirmations would happen is configured here.

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I) Generally Valid Settings

A) Checks of Sequence adherences

Whether System should terminate confirmations Operation when the sequence is not adhered or whetherthe 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 confirmationsequencing.

When you are producing in an environment where there are many operations one after the other, not set inmilestone or progressive confirmations, you should mandatorly think about adhering to the operationconfirmations to be made in a sequence; in which case you may want to stop the confirmation whensequence 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 sequencechecks, 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 theabove 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 finallyconfirmed falls below the undelivery tolerance or above the overdelivery tolerance. These tolerance arethe order level tolerances.

C) Checks for QM inspection results

When you are using "In-process quality management", you would be recording results at the operationlevel for the operations marked for result recording and in such cases you can issue error or warningmessages 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 errormessage 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 abackflush indicator and are issued automatically in the background (provided other information such asstorage 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 thematerials are marked with a backflsuh indicator or not.

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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 takenautomatically from the cost center tab of the work center that is being confirmed.

II) General Individual Entry

A) Proposing Confirmation Type

Here you have to select whether you want "final confirmation indicator" to be defaulted for all theconfirmations that the user makes and he/she marks it manually according to a partial or finalconfirmation that is made or you want a "partial confirmation indicator" to be defaulted and the userchanges it to final whenever he/she makes a final confirmation oryou want to default to "automatic finalconfirmations" based on the quantity that is confirmed.

In automatic final confirmations, if the user confirms less than the quantity (planned operation quantity orthe 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 operationquantity or the order quantity with the overdelivery tolerance and underdelivery tolerances taken in toaccount) 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 proposalof '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 youwish 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 thereservations 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 correctthese errors, similarly when the system issues errors in actual goods movement posting (backflushing orautomatic 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 forpost-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 incorrectgoods movement" along with the "issue errors in actual cost or goods movement indicators", the systemwould not allow you to correct them and would abort the confirmations and postings.

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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 selectthis indicator.

If total qty = 200If confirmed qty = 50Proposed qty for confirmation = 150

B) Display Confirmed Quantities

Quantities which are previously confirmed before this confirmation is displayed on the screen asinformation, 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 confirmationscreen.

D) Propose quantities for activities

It is a know fact that when you are confirming an operation or order, you are confirming the quantitiesthat are produced at the operation and the time taken in terms of minutes or hours to carry out theproduction 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 theactivities 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 selectthis indicator.

If total activity = 200 HrsIf confirmed qty = 50 HrsProposed qty for confirmation = 150 Hrs

E) Display Confirmed Activities

Activities which are previously confirmed before this confirmation is displayed on the screen asinformation, if you select this indicator.

F) Display Defaults for Activities

If you select this indicator, Activities that are yet to be confirmed are displayed on the confirmationscreen.

G) Propose Dates for confirmations

Operations confirmation dates are to be proposed by the system as per the lead time, if you select thisindicator.

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H) Display Confirmed Dates

Confirmation Dates of previously confirmed before this confirmation is displayed on the screen asinformation, if you select this indicator.

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 confirmationsit is a nice idea to enter the personnel data - who was the personnel producing the production quantities orwho 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 operationnumber 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 alsoselects 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 yetconfirmed and does not show any information about the operations which are finally confirmed.

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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 ormanually 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 withreference to a material code or with reference to a reference to a Sales order (in Process order there isno option to create with reference to a sales order).

Production order creation transaction codes

1. Stock Requirement List Individual Display: MD042. Stock Requirement List Collective Display: MD073. Creation of Production order from planned order: Individual Conversion: C0404. Creation of Production order from planned order: Collective Conversion: CO415. Creation of Production order from planned order: Partial Conversion: CO48

6. Creation of Production order from planned order: Individual Display Screen: MD137. Creation of Production order from planned order: Collective Display Screen: MD168. Creation of Production order using a material code: CO019. Creation of Production order using a sales order reference: CO08

Process order creation transaction codes

1. Stock Requirement List Individual Display: MD042. Stock Requirement List Collective Display: MD073. Creation of Process Order from planned order: Individual Conversion: C0R74. Creation of Process Order from planned order: Collective Conversion: COR85. Creation of Process Order from planned order: Partial Conversion: COR7_PC

6. Creation of Process Order from planned order: Individual Display Screen: MD137. Creation of Process Order from planned order: Collective Display Screen: MD168. Creation of Process Order using a material code: COR1

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 enteranything on the selection screen. The selection screen entries are required for entry if you are manuallycreating an order.

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MaterialEnter the Material for which you are creating a Production Order for

Production PlantEnter 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 plantthere 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 theplanning plant as the plant where goods receipt is to take place and the production plant is the plant wherethe actual production happens.

Order typeOrder type is a like a document type against which you will be producing the order. Order type contains alist 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 theBOM is pulled in the order, documentation of order information and goods movements, Batchdetermination search procedures, reservation creation possibilities and the order costing controls.

Production / Process order numberIf the Production order number and the process order number are defined for external numbering, then inthat case you need to provide a number up to 12 characters.

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Copy from OptionSAP has provided options to copy from an existing Production order, when it does this it creates one moreorder with the same order type, header material code and the same plant. It copies the component list, theoperation 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 headerfields 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.

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Total QuantityEnter the quantity that is required for production. This quantity is inclusive of the scrap quantity. Theentered 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 apercentage 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 QuantityAn 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 asyou wish.

Schedule Margin KeysThe Schedule Margin Keys holds the Floats before and after production, the release period given to theusers to release the order from the order start date and the opening period given to the users to convert theplanned order to production order.

The floats in production increase the total lead time of production by adding the floats or buffers to thelead 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 plannedorder.

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 itpreconfigured 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 orderfinish date by adding up the Routing operations standard value times (the system schedules forward insuch 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 areflexible)

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Steps SAP Uses in Calculating the Dates :

Step 1:Enter the Order Basic Start DateStep 2:Adds the Floats before Production to derive the Schedule Start DateStep 3:Uses the Routing/Recipe for lead time scheduling to derive the Scheduled Finish DateStep 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/UnitOperation 0020: Finishing and Packaging: 1HR/Unit

Therefore:Total time at 0010 for executing the order : 1 HR X 15 Units = 15 HRSTotal 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 = 25thDec 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 : 29thDec 2010 (06:00) = this is the Order Basic Finish Date

Example illustration:

OperationNumber

Scheduled OperationStart

TotalOperation

TimeScheduled Operation Finish

10 25thDec 2010 (00:00) 15 HRS 25t Dec 2010 (15:00)

20 25t Dec 2010 (15:00) 15 HRS 26thDec 2010 (06:00)

Order Basic

Start Date

FloatsOrder Scheduled

start date

Order Scheduled

Finish date

FloatsOperation

Finish25th Dec 2010(00:00 AM)

2Days

27th Dec 2010(00:00 AM)

28th Dec 2010(06:00)

1Days

29th Dec 2010(06:00)

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Order Finish Date /time& Backward SchedulingIf an order finish date is entered and Backward Scheduling is chosen, then the system calculates the orderStart date by adding up the Routing operations standard value times (the system schedules forward insuch 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 arefixed)

Steps SAP Uses in Calculating the Dates:

Step 1:Enter the Order Basic Finish DateStep 2:Subtract the Floats after Production to derive the Schedule Finish DateStep 3:Use the Routing/Recipe for lead time scheduling to derive the Scheduled Start DateStep 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/UnitOperation 0020: Finishing and Packaging: 1HR/Unit

Therefore:Total time at 0010 for executing the order: 1 HR X 15 Units = 15 HRSTotal 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 = 29thDec 2010 (06:00) Subtract 1 Days as Floats after Production: 28thDec 2010 (06:00 AM) which is equal to = Order

Scheduled Finish Date/Time. Derive the Order Scheduled Start Date from Lead time forward scheduling: 27thDec 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

OperationNumber

Scheduled OperationStart

TotalOperation

TimeScheduled Operation Finish

10 25thDec 2010 (00:00) 15 HRS 25t Dec 2010 (15:00)

20 25t Dec 2010 (15:00) 15 HRS 26thDec 2010 (06:00)

Order BasicStart Date

Floats Order Scheduledstart date

Order ScheduledFinish date

Floats OperationFinish

25th Dec 2010(00:00 AM)

2Days

27th Dec 2010(00:00 AM)

28th Dec 2010(06:00)

1Days

29th Dec 2010(06:00)

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Order Start/Finish Dates and Current Date SchedulingWhen you do not enter any value for the order start date or orders finish date and choose the schedulingtype as Current Date Scheduling, the system enters the start and finish dates as todays date.

Order Start/Finish Dates and Only Capacity Requirement SchedulingWhen 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 SchedulingIf order start date/time both are entered and Forward in Time Scheduling is chosen, then the systemcalculates the order finish date and time by adding up the Routing operations standard value times (thesystem schedules forward in such cases).

The only difference here is that along with Order Start date you can also enter the order start time andallow the system to calculate the order Finish date and time.

Order Start/Finish Dates and Backward in Time SchedulingIf 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 (thesystem schedules forward in such cases).

The only difference here is that along with Order Finish date you can also enter the order finish time andallow the system to calculate the Order start date and time.

Scheduled Start DateThe Scheduled start date is always equal to the Basic Order start date, if floats dont exists. But if youinclude schedule margin keys with a value of Floats before production, the scheduled start date iscalculated.

Scheduled Finish Date

The Scheduled Finish date is always equal to the Basic Order Finish date, if floats dont exists. But if youinclude schedule margin keys with a value of Floats after production, the scheduled finish date iscalculated.

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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 aconsultant or user while creating an order.

MRP Controller / Production Scheduler:

Automatically Pulled in: MRP Controller and the Production Scheduler is pulled in from the headermaterial master. MRP Controller is the person who plans and converts the planned order in to productionorder.

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If you havent maintained the data in the Material Master of the order material, then you still have anopportunity 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 OPPQand 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 arisingfrom Customer Sales order. You can trace the production order or process order for the customer salesorder, 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 satisfyany 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 orresponsibilities within an organization and to which value changes recorded in Financial Accounting canbe allocated.

You can create financial statements for business areas, and you can use these statements for variousinternal 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 iscreated to cover the demand and subsequently converted to an order; this planned order which is used toconvert to this order is populated here.

The planned order once converted to production order is deleted from the system and also removed fromthe tables. Thus if you try to see this planned order in MD12 or MD13, you wont be able to see it.

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Production Version

When the BOM and the Routing/Recipes are selected in the order from a valid material productionversion, 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 forthe order which contains the list of components (dependent requirements) which would be used tomanufacture 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 throughthe scope of availability settings.

Normally the reservations on components are not hard reservations and these components can be usedacross orders.

Uses of Reservations: Reservation list can be used by the warehouse or the materials department to keepthe components ready for production order or process order. Subsequently the same reservation list can beused 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 throughan order).

Stock Overview:You can see a column in the MB52 or MMBE that suggests the total quantity reservedfor the material.

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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 agoods receipt for the order through MB31 or MIGO transaction codes.

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If Quality management is active for the header material master and there is an inspection type maintainedin the material master to support inspection at goods receipt from order, the proposed stock type inwhich 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 productionorder).

Think over it: Though it is also possible that the GR storage location is designed to book receipts intoblocked stock only in which case, the goods will always be posted into blocked stock, no matter what.

GR Processing timeIt is pulled in from the MRP views of the Header Material Master

Goods Receipt Indicator / delivery Complete IndicatorOnce 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