Question 1: Confuguration setting in SAP PP ( Master data, MRP, SFC,

REM Process)
Answer: 1) Define Distribution Keys

IMG > Production Planning for Process Industries > Master Data > Material List > Item Data
> Item Data from related areas > Define Distribution Keys
2) Determine Person responsible for Resource u2013
IMG > Production Planning for Process Industries > Master Data > Resource > General Data
> Determine Person responsible
3Define Planner GroupIMG > Production Planning for Process Industries > Master Data > Master Recipe > Define
Capacity Planner
4) Define Capacity Planner u2013
IMG > Production Planning for Process Industries > Master Data > Resource > Capacity
Requirement Planning > Determine Capacity Planner
5) Determine Standard Value Parameter u2013
IMG > Production Planning for Process Industries > Master Data > Resource > General Data
> Standard Value > Define Parameter
6) Define Setup Groups and Setup Group Categories
Define set up groups and set up categories u2013
IMG > Production Planning for Process Industries > Master Data > Master Recipe > Data for
operations and phases > Define set up groups and set up group categories
7) Define copy setting between plants-Process
IMG > Production Planning for Process Industries > Process Management > Tools > Define
copy setting between plants
8) Define Set Up Control Recipe destination u2013
IMG > Production Planning for Process Industries > Process Management > Control
Recipe/PI sheet > Set up control recipe destination
9Define MRP controller u2013
IMG > Material Management > Consumption based Planning > Master Data > Define MRP
controller
10) Special Procurement u2013
IMG > Material Management > Consumption based Planning > Master Data > Define Special
procurement types
11) Define Floats (Scheduled Margin Key)IMG > Material Management > Consumption based Planning > Planning > Define Floats
(Scheduled Margin Key)
12Define Splitting of Forecast requirements for MRPIMG > Material Management > Consumption based Planning > Evaluation > Forecast >
Define Splittng of forecast requirements of MRP
13) Maintain Correction Factors for Forecast

IMG > Material Management > Consumption based Planning > Planning > Procurement >
Maintain Correction factors for forecast
14 Carry Out Overall Maintenance of Plant Parameters
Maintaining plant parameters in MRP u2013
IMG > Material Management > Consumption based Planning > Plant Parameters > Carry out
overall maintenance of plant parameters
15) Define Planning Horizon
Define Planning Horizon u2013
IMG > Material Management > Consumption based Planning > Planning > MRP calculation
> Define Planning Horizon
16) Activate Requirement Planning u2013
IMG > Material Management > Consumption based Planning > Planning > Activate
Requirement Planning
17) Define Range of Coverage Profiles (Dynamic Safety Stock)
Range of coverage profile u2013
IMG > Material Management > Consumption based Planning > Planning > MRP calculation
> Define range of coverage profile (Dynamic Safety Stock)
18) Define Stock in Transfer and Blocked Stock Availability
IMG > Material Management > Consumption based Planning > Planning > MRP calculation
> Stocks > Define Stock in transfer and blocked stock
19) Define MRP Areas
IMG > Material Management > Consumption based Planning > Master Data > MRP areas >
Define MRP areas
20) Carry out maintenance of MRP groups
IMG > Material Management > Consumption based Planning > MRP groups> Carry out
maintenance of MRP groups
21) Define Scope of total Planning - MRP
IMG > Material Management > Consumption based Planning > Planning > Define Scope of
total Planning
22 Define Order Types
Define Order TypeIMG > Production Planning for Process Industries > Process Order > Master Data > Order >
Define Order Type
23Define Order Type Dependent parameters u2013
IMG > Production Planning for Process Industries > Process Order > Master Data > Order >
Define Order Type Dependent parameters
24) Define Production Scheduler u2013
IMG > Production Planning for Process Industries > Process Order > Master Data > Bill of
Material > Define Production Scheduler
25 Define Checking Control - Process Order

Define Availability Check u2013 Define Checking Control u2013

IMG > Production Planning for Process Industries > Process Order > Operations >
Availabilty Check > Define Checking Control
26) Define Checking Rule for backorder processing u2013
IMG > Production Planning for Process Industries > Process Order > Operations >
Availabilty Check > Define Checking rule for back order processing
27Define Stock and batch determination for good movement u2013
IMG > Production Planning for Process Industries > Process Order > Operations > Define
Stock and batch determination for good movement
28) Specify Scheduling Parameters
Specify Scheduling Parameters u2013
IMG > Production Planning for Process Industries > Process Order > Operations >
Scheduling > Specify Scheduling Parameters
29) Define Reduction Strategies
Define Reduction Strategy u2013
IMG > Production Planning for Process Industries > Process Order > Operations >
Scheduling > Resource data > Define Reduction Strategy
30) Define Confirmation Parameters
Define Order Confirmation u2013
IMG > Production Planning for Process Industries > Process Order > Operations >
Confirmation > Define Confirmation Parameters
31) Define Valuation of Goods Received
Define valuation of goods receive u2013
IMG > Production Planning for Process Industries > Process Order > Integration > Define
Valuation of goods received
32) MRP creation indicator u2013
IMG > Material Management > Consumption based Planning > Planning > Define creation
indicator
33) Define safety stock u2013
IMG > Material Management > Consumption based Planning > Planning > MRP calculation
> Stocks > Define Safety Stocks
34) Define alternative determination of Production u2013
IMG > Production Planning for Process Industries > Process Order > Operations > BOM
selection > Define alternate determination of production
35) Define no. ranges u2013
IMG > Production Planning for Process Industries > Process Order > Master data > Order >
Number Ranges > Define number ranges for orders
Further you need to do Manual Configuration in PP after Transport Request transfer in
Production Server:
1) Define Distribution Keys

2) Determine Person responsible for Resource

3Define Planner Group4) Define Capacity Planner
5) Determine Standard Value Parameter u2013
6) Define Setup Groups and Setup Group Categories
7) Define copy setting between plants-Process
8) Define Set Up Control Recipe destination
9Define MRP controller u2013
10) Special Procurement
11) Define Floats (Scheduled Margin Key)
12Define Splitting of Forecast requirements for MRP
13) Maintain Correction Factors for Forecast
14 Carry Out Overall Maintenance of Plant Parameters
15) Define Planning Horizon
16) Activate Requirement Planning
17) Define Range of Coverage Profiles (Dynamic Safety Stock)
18) Define Stock in Transfer and Blocked Stock Availability
19) Define MRP Areas
20) Carry out maintenance of MRP groups
21) Define Scope of total Planning - MRP
22 Define Order Types
23Define Order Type Dependent parameters
24) Define Production Scheduler
25 Define Checking Control - Process Order
26) Define Checking Rule for backorder processing
27Define Stock and batch determination for good movement
28) Specify Scheduling Parameters
29) Define Reduction Strategies
30) Define Confirmation Parameters
31) Define Valuation of Goods Received
32) MRP creation indicator
33) Define safety stock
34) Define alternative determination of Production
35) Define no. ranges
Question 2: What is the system status and User status in SAP PP? and
Diff ?
Answer: system status -- Based on the action you do to the transaction , then automatically

system will assign the status to it . Like if you create a subsequent document w.r.t notification

then the system status will be set as NOPR(Notification in process) and if you create any
return order or credit note w.r.t notification then the system status will be set as SOAS (Sales
order assigned)..like this system automatically update the status based on the action you do.
These statuses will be updated automatically by the system and user have no control on these
system status.
to view the list of system status - BS22
User status - you can create your own status under one status profile in t.code bs02 and can
assign to the relevant transaction . This status has to set manually in the transaction
Question 3; What is backflush ? Where we define the backflush? Priority of the backflush
indicator?

Back flushing is nothing but automatic goods issue. System will

automatically posts the goods issue when you confirm the
operations.You have no need to make manual issue. It will reduce
the effort.
You can set the backflushing indicator in MRP 2 View of material master OR
Work center basic data tab page OR Routing.
With a back flushing indicator, system automatically post goods issue of component when the
corresponding operation is confirmed completely from the sloc specified. There is no need to
carry out manual goods issue ie 261 movement type.

backflush.docx

What setting required before Golive ?

Go-live Checklist
Let us assume that you have gone through the implementation guide and you have configured
your plans, add-ons and coupons. Now you think you're ready to deploy your billing and
payment system. But before you go live, please go through this checklist to make sure you
have everything squared away.
So, here is the detailed version with our recommendations:

Internal Checklistchecklist.html - internal-checklist

This is a list of settings and configurations that you need to do within Chargebee's web
interface.
1. Copy Sandbox Data
If you would like to copy some or all of your plans, addons or coupons as well as other
settings such as your email notifications from the test site into your live site, you can do that
as well. Here's how.
2. Configure your Payment Gateway

Assuming that you already have your payment gateway account approved and ready, you will
need to configure this within Chargebee. Click here to know more.
3. Configure your Site Information
These settings will be found under the "Site Info" section under "Site Settings" in your
"Settings" tab. Specify your country and currency. Also enable daily digest under "Settings >
Site Settings > Report Settings".
4. Metered / Usage Based Billing Setup
Enable this if you have a metered based billing setup. Click here to find out how.
5. Tax Setup
Configure your tax settings. To know more about country specific tax, please contact our
support team at support@chargebee.com . Here's our documentation on taxes.
6. Retry Settings / Dunning Management
Review your defaults for retry settings to recover from credit card failures.
7. Invoice Customization
Every time a payment is made, Chargebee sends out an invoice to your customers on your
behalf. You can always customize the way it looks. Once you've customized it, email an
invoice to yourself to be sure it looks how you want it to be. To see how to customize your
invoices, click here to learn more.
8. Hosted Page Customization
If you are using Chargebee's hosted payment page, you can customize the way it looks from
Chargebee's web interface. Click here to learn more.
Note
Ensure that you have checked, edited and enabled all the email notification templates
that you need before you go live.
9. Email Notifications
Be sure to setup your email notifications as well as the templates you'll be using for your
transaction emails. Send a few test emails to yourself and have a look at them using different
browsers and devices. Here's more on configuring your transactional emails.
10. Provide Access to Team Members (Optional)
If you've already invited users to your test site, and you need those users to have access to
your live site as well, invite those users again from the LIVE site. In Chargebee, access is
controlled at a Site level, be it TEST or LIVE. So, you need to invite users explicitly for each
site.
11. Testing
We would recommend that you to run a few small value test transactions with real cards in
your LIVE site before opening it up to customers.
Test your checkout flow & create a new order / subscription using a plan with an amount
and 0 trial days to ensure the card is charged immediately
After a subscription has been created and charged successfully, try to add a charge
immediately after 20 minutes. This is to confirm that the recurring charges are
successful.
Cancel an order / subscription

Issue a partial refund

Issue a full refund
Try these tests using all the card types that you've enabled.
Note
Once you've completed all the test transactions, please login to your LIVE payment gateway
account and check for corresponding entries there.

External Checklistchecklist.html - external-checklist

These are a few things that you will need to have done outside of Chargebee.
1. SSL Certificate(s)
Security is non-negotiable. And it pays to have a proper SSL certificate, regardless of whether
you let credit card information pass through your server or not.
Wildcard certificates are costly but thankfully you do not need it, unless you intend to allow
your customers to create sub domains under your site, just like Chargebee.
As a merchant you will only need a single domain certificate with a named sub-domain, like
app.xyz.com or billing.xyz.com.
There are many companies that you can get an SSL certificate from and the price varies from
$9 per year to $195 per year, depending on the provider.
Here are a few that we suggest, in no particular order:
Namecheap
Rapid SSL
Geo Trust
DigiCert
Verisign
Setting up and installing SSL is quite easy and takes anywhere between 30 minutes to an hour
depending on the person doing it. All you need to do is buy the certificate from a trusted and
well known source and install it.
2. Approved Payment Gateway and Merchant Account
If you don't have them already, you need to get them right away before you go live. Click
here to know more.
As part of your payment gateway settings, check these as well:
Billing Address Requirements (should match your payment gateway setup)
Supported List of Cards (Visa, Master, AMEX, Discover, JCB, Diners)
Here is a checklist that you may copy & use to complete the steps.

Post go-live, on-going compliance requirementchecklist.html post-go-live-on-going-compliance-requirement

PCI Compliance:
As a merchant using Chargebee's hosted pages, all you have to do is submit a Self
Assessment Questionnaire (SAQ-A) to stay compliant (the basic level of compliance
required).

You may download the latest version of the SAQ-A document from the PCI Security
Standards Website . It is under the SAQs section.
For any queries, email security@chargebee.com and we will help you with the details.
Storage location priority ? Where we define Goods movement (GR/GI) Storage loc?

Sloc doc.pdf

Define Storage Location Control

Using the assignment table (plant / storage location -> warehouse number), you can have several
storage locations managed in one warehouse number . If several storage locations are managed in a
warehouse number, the storage location (as well as other data) must now be entered in Warehouse
Management transactions where, up to now, only the entry of a plant was necessary.

SAP PP Full Cycle Process up to Settelement

For Discreat
Material Master - MM01
2: BOM creation - CS01
3: Work Center creation - CR01
4: Routing creation -CA01
5: PIR Generation -MD61
6: MRP Run - for Total Planning - MD01
for Single-Item, Multi-Level - MD02
7: Evaluation through MRP list and Stock requirement list MRP List -MD05,
Stock Requirements List - MD04
8: Conversion of Planned order to Production order - With a
planned order -CO40
With material - CO01
9: Order management - Change >With material CO02
10: Confirmations- For order CO15
For Operation -For time ticket -CO11N
11: Goods issue - MB1A--261Movement type
12: Goods receipt - For Order MB31
13: TECO or Close Order- from Prod. Order Header menu
14:Ko88 Order settlement
15:kkbc_ord costing report
this is the pp cycle

Purpose - need to check , how settlement becomes not equal to zero. (I am facing this problem)
Ans :- For this issue u need to check ur cost structure setting whether it is maintain properly or not.
Check ur material master accounting & costing views.
Check ur activity type to cost center assignment in work center costing tab.
check setting in OPL8 tcode -> costing tab check your actual & planned variant,default rule.

For REM

The sequence in REM is

1.MM01-material creation and Assign the REM profile for all the Inhouse manufactured
materials(FERT &
HALB) and also tick mark for repetitive manufacturing in MRP4 view.
2.CS01 - BOM creation.
3.Work centre creation - CR01.
4.Rate routing creation - CA21.
5.Creating production version to link BOM & Rate routing in MRP4 view of the material
master.
6.Creations of product cost collector using production version in KKF6N.
7.Cost rollup & Release using CK40N.
8.Demand values,in MD61,
9.MRP Run- MD02,Stock/Requirements List - MD04.Planning Table in MF50.
10.Planned orders generated.
11.Pull List MF60.
12.MFBF.Production booking

What is prod order settelement?

you can follow and check with this below steps:
1) First you can check with that all the Goods issue is complted from the Production order
2)you can check with GR of the order is completed or not.
3)you can use the tcode production order change CO02 and do the TECO for the production
order (PRODCUTION ORDER --> FUNCTIONS --> TECHNICALLY COMPLETE)
5.If you are using the individual order, use the tcode KO88 - Individual Processing
if you are using the collective, use the tcode CO88 - Collective Processing

Planning Stratergies 10, 20, 30,40,50,70

PS.pdf

What is diff between Consumption and reduction?

Question: What is the difference between planned independent requirement consumption and planned
independent requirement reduction ? Answer: The consumption reduces planned independent requirements
dynamically, whereas the reduction physically reduces the planning quantity and increases the withdrawal
quantity accordingly. For example: You create a planned independent requirement with 100 pieces. This planned
independent requirement is consumed against a sales order with 10 pieces. The planning quantity and

withdrawal quantity remain the same (see MD63) but the planned independent requirement is displayed in the
stock/requirements list (MD04) with the quantity 90. The independent requirements reduction occurs when you
post the goods movement, in this case, with the goods issue for the sales order. The planning quantity of the
planned independent requirement is reduced to 90 pieces and the withdrawal quantity is increased from 0 to 10
(see MD63). In the stock/requirements list, the planned independent requirement is still displayed with 90 pieces
despite the reduced planning quantity because when you post the goods issue, the customer requirement
against which the planned independent requirements had been consumed also disappears.

2. Question: Which consumption parameters (Consumption mode/consumption period) are taken into account?
Answer: The parameters maintained in the material master (material requirements planning view 3) have the
highest priority. If you do not specify a consumption mode, the system uses the consumption parameters from
the MRP group that is assigned to the material. If a consumption mode is not specified there, the consumption
mode is set to '1' by default (backward consumption only) with a (backward) consumption period of 999 days.
This means that the consumption cannot be deactivated because the consumption parameters have not been
maintained. The consumption periods are calculated in workdays.

What is MRP ?
The main function of material requirements planning is to guarantee material availability , that is, it is
used to procure or produce the requirement quantities on time both for internal purposes and for sales
and distribution. This process involves the monitoring of stocks and, in particular, the automatic
creation of procurement proposals for purchasing and production.
In doing so, MRP tries to strike the best balance possible between

optimizing the service level and

minimizing costs and capital lockup.

The MRP component (PP-MRP) assists and relieves MRP controllers in their area of responsibility.
The MRP controller is responsible for all activities related to specifying the type, quantity, and time of
the requirements, in addition to calculating when and for what quantity an order proposal has to be
created to cover these requirements. The MRP controller needs all the information on stocks, stock
reservations, and stocks on order to calculate quantities, and also needs information on lead times
and procurement times to calculate dates. The MRP controller defines a suitable MRP and lot-sizing
procedure for each material to determine procurement proposals.

Planning Processing key in MRP run ?

mrp-processing-keys
-explained.pdf

5 step during the MRP run??

1. Net requirement calculation

2. Lot size calculation
3. Procurement
4. Scheduling
5. BOM/routing Selection .

what is the difference between mrp and mps in sap

Master Production Schedule (MPS) :
MPS operates within only one level of the BOM, While MRP can be utilized throughout all
levels of a materials BOM. If a MPS is run on a material, the necessary orders are planned
at that level. Dependent requirements (if any) are placed on the next BOM level down, and
then the process stops.
Main Idea : Master production scheduling (MPS) is a form of MRP that concentrates
planning on the parts or products that have the great influence on company profits or which
dominate the entire production process by taking critical resources. These items are marked
as A parts (MPS items) and are planned with extra attention. These items are selected for a
separate MPS run that takes place before the MRP run. The MPS run is conducted without a
BOM explosion so that the MRP controller can ensure that the Master schedule items (MSI)
are correctly planned before the detailed MRP run takes place.
The master production schedule is a line on the master schedule grid that reflects the
anticipated build schedule for those items assigned to the master scheduler. The master
scheduler maintains this schedule, and in turn, it becomes a set of planning numbers that
drives material requirements planning. It represents what the company plans to produce
expressed in specific configurations, quantities, and dates. The master production schedule is
not a sales item forecast that represents a statement of demand. The master production
schedule must take into account the forecast, the production plan, and other important
considerations such as backlog, availability of material, availability of capacity, and
management policies and goals. Syn: master schedule.

Consumption mode and period setting in material master?

The consumption mode controls the direction on the time axis in which the system consumes
requirements.

In backward/Forward consumption Cosumption mode 2, sales orders, dependent requirements or material

reservations consume planned independent requirements that lie before the requirements date first then
consume all PIRs of dates that lie before required date and then goes forward on time axis.
In forward/ Backward Consumption 4 it will go first in forward direction of requirements date and then backwards.

Diff between MRP list and Stock Req list ?

Stock Requirement List: It is a dynamic list, which shows the current status of requirements & sources for that
material. So any changes in the procurements or needs will be shown in this list.
MRP List: It is a static list, which shows the status of requirements & sources just after the MRP run. This list is
not updated till the next MRP run.
Now the qns, why 2 lists:
The 2 lists helps the material planner to compare the changes which has taken place post MRP run. So
comparing the 2 lists the planner can then make an informed decision whether the MRP run scheduling has to be
done more frequently or whether it can be less frequent.

What is scope of planning ? How to run MRP with respect to the Seq of plant?

In the scope of planning we define the organizational units and their sequence to be planned during
MRP run. It is defined in customization. These organizational units can be Plants or MRP areas.
We have to enter the key for the planning run in the initial screen of the total planning run MD01. The total
planning run then carries out MRP for the plants or MRP areas defined in the scope of planning.
You can enter as many plants or MRP areas as you like in the scope of planning. You can also only enter one
MRP area. MRP is then only carried out for one MRP area.
If you have activated MRP for MRP areas, when you enter a plant, this includes all MRP areas of this plant.

Scope of planning is used to run mrp for

1. Several plants
2. One mrp area
3. Multiple mrp areas
4. Combination of plant & mrp area
mrp type in material master
MRP type controls which mrp procedure can be used to plan a material and which mrp
parameters can be entered when maintaining material master. you have to enter this mrp type
on MRP 1 view of material master record.
ND - No planning
PD Planning

Consumption base planning ? Reorder point, forcast base, Time

phased Planning ?
2. Consumption Based Planning:
consumption-based planning procedures use past consumption data (historical
data) to calculate future requirements with the help of the material forecast or
static planning procedures.
Consumption-based planning procedures have no reference to the master plan.
This means that the net requirements calculation is not triggered by an
independent or a dependent requirement. Instead, the net requirements
calculation is triggered when stock levels fall below a reorder point or by
forecast requirements calculated from past consumption data.
The advantage of this type of planning is that it is easy to use and you do not
require extensive data.

Reorder Point Planning

Use
In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts
falls below the reorder point .

Features
The reorder point should cover the average material requirements expected during the replenishment
lead time.
The safety stock exists to cover both excess material consumption within the replenishment lead time
and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is
included in the reorder level.
The following values are important for defining the reorder point:

Safety stock

Average consumption

Replenishment lead time

The following values are important for defining the safety stock:

Past consumption values (historical data) or future requirements

Vendor/production delivery timelines

Service level to be achieved

Forecast error, that is, the deviation from the expected requirements

Manual Reorder Point Planning

In manual reorder point planning, you define both the reorder level and the safety stock level manually
in the appropriate material master.
Automatic Reorder Point Planning

In automatic reorder point planning, both the reorder level and the safety stock level are determined
by the integrated forecasting program.
The system uses past consumption data (historical data) to forecast future requirements. The system
then uses these forecast values to calculate the reorder level and the safety stock level, taking the
service level, which is specified by the MRP controller, and the material's replenishment lead time into
account, and transfers them to the material master.
Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are
continually adapted to the current consumption and delivery situation. This means that a contribution
is made towards keeping stock levels low.

Time phase planning

time phase
planning.pdf

Forecast based planning.

forecast based
planning.pdf

Explain the diff type of Reorder point planning? What is diff bet
Manual and Automatic reorder point?

Reorder Point Planning: Use: In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts falls below
the reorder point.
Features: The reorder point should cover the average material requirements expected during the replenishment lead time.
The safety stock exists to cover both excess material consumption within the replenishment lead time and any
additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the
reorder level.

The following values are important for defining the reorder point:
- Safety stock
- Average consumption
- Replenishment lead time
The following values are important for defining the safety stock:
- Past consumption values (historical data) or future requirements
- Vendor/production delivery timelines
- Service level to be achieved
- Forecast error, that is, the deviation from the expected requirements
Manual Reorder Point Planning
In manual reorder point planning, you define both the reorder level and the safety stock level manually in the
appropriate material master.
Automatic Reorder Point Planning
In automatic reorder point planning, both the reorder level and the safety stock level are determined by the
integrated forecasting program.
The system uses past consumption data (historical data) to forecast future requirements. The system then uses
these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is
specified by the MRP controller, and the material's replenishment lead time into account, and transfers them to
the material master.
Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually
adapted to the current consumption and delivery situation. This means that a contribution is made towards
keeping stock levels low.
Forecast-Based Planning: Use: Forecast-based planning is also based on material consumption. Like reorder point planning, forecast-based
planning operates using historical values and forecast values and future requirements are determined via the
integrated forecasting program. However, in contrast to reorder point planning, these values then form the basis
of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements.

Features: The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This
offers the advantage that requirements, which are automatically determined, are continually adapted to suit
current consumption needs. The forecast requirement is reduced by the material withdrawal so that the forecast
requirement quantity that has already been produced is not included in the planning run again.

Reducing Forecast Requirements

- Reducing forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system also reduces future
forecast requirements.
- Reducing current forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system does not reduce
future forecast requirements.
- Average reduction of the forecast requirements
The reduction of the forecast requirements is based on average daily consumption. Actual consumption data is
not relevant.
The system calculates the average daily requirement first using the formula forecast requirement/number of
workdays in the forecast period.
The forecast requirements are then reduced by the quantity resulting from the following formula: number of
workdays worked x average daily requirements.
Period Pattern and Forecast Periods
You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period) and the
number of periods to be included in the forecast individually for each material. It is possible, however, that the
forecast period pattern is not specific enough for planning purposes. In this case, you can define per material that
the forecast requirements should be divided according to a finer period pattern for planning. You can also define
how many forecast periods are to be taken into account during requirements planning. The splitting indicator is
defined in Customizing for MRP per plant and per period unit and is assigned to the material in the material
master.
Example: -

For a monthly forecast, the requirements date would be set on the first workday of the month because, for
planning, it is assumed that the total requirement must be available at the beginning of the period. You can then
divide this monthly requirement into either daily or weekly requirements.

what is diff between MRP group, MRP Profile, MRP controller ?

MRP Group:
MRP Group: It is a planning strategy for carrying out the MRP.
An MRP group is an object which you can use to assign common control parameters to a
group of materials for planning and organizational purposes.
For example, the creation indicator for purchase requisitions, schedule lines, planning
horizons and so on.
MRP groups are used when the plant division for planning is not enough for the division of
the different materials MRP requirements. You assign different groups according to the
requirements to run MRP (different Settings). These settings will be taken in account when
you run MRP for single item or total planning..
MRP Profile :
MRP Profile : All the MRP 1,2,3,4 views in the material master data are entered in this profile
and create MRP profile. When you are creating Material Master in MM01 while entering the
plant and storage location enter your MRP profile so that you do not need to enter the MRP
data again
MRP controller. Material Requirements Planning (PP-MRP) The person responsible for a
group of materials in MRP in a plant or company. Material that takes part in material
requirements planning must be assigned to an MRP controller

How to run MRP with respect to MRP area?.

MRP.docx

Normally Planning of materials takes place on a plant level

By usung MRP Areas - Specific storage locations can also be grouped together and planning takes place on that
grouping area (MRP Area)
Ex : Plant 3200/Sloc 50 & Plant 3200 /Sloc 51 is one MRP Area this is done in Configuration

When activated materials can now be planned per MRP area and MRP runs can also be done on MRP area
Consumption history will be kept on MRP area level

how to exclude the storage loc from the MRP?

Once the configuration setting to exclude the stocks from the Storage Location from MRP is
done (SPRO > Production > Material requirements planning > Planning > Define storage
location MRP per plant. --> Set the indicator 1),
Any new material that is getting extended to this storage location will pick this setting
automatically and the same can be seen in MRP4 view of the Material master.
For the materials which have already been extended to the Storage locations (before the
configuration change), we need to set the exclusion indicator in the material master
MRP4 view.
In configuration setting and in following path you have option to exclude the storage location
from the MRP for the plant. See in below path,
SPRO > Production > Material requirements planning > Planning > Define storage location
MRP per plant.
In this set option 1 for storage locations which you want to exclude in MRP for the plant.

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