What is a SAP Production order / Process order 

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: 

a)       The quantity that is to be produced for a finish product 

b)       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 the whole order. This is made possible by exploding the Routing/Recipes for the order quantity.

 c)       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.

 d)       The total PRT consumption derived by exploding the PRT requirement for the order quantity

 e)       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 as required 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, which gulps up all the operational efforts or activities booked to produce a product, the cost associated with operational activities (& overheads), all the issued Production Resource tools (PRT) and the costs associated with it. 

                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 Production order/Process orderQty = 10 Units – Material – M1

 

 Issued Raw Materials

 SF1 – 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 Activity

 0010 – 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 Overheads

 Overhead = $20

 

 Issued PRT cost

 PRT1 at Operation 0010 = Required for 10HR - $20/HR

 Total PRT cost = $200

 

 Total Order cost

 = $60 + $240 + $20 + $200 =  $520

 

 

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

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 data gets 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 Routings and/or the Bill of Materials master data instead of them getting pulled in, individually in the order. To allow production version perform pulling in the master data you have to choose option “2” or “3” in the MRP 4: BOM explosion selection field.

 

Why do you create SAP Production Order or Process Order 

Criteria to create an Order: Think over it 

 

All the products which are manufactured in-house and stored in the inventory would need an order 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 being produced and also a co-product of appreciable value being produced from the same order in a predetermined percentage split. The first goal in implementing SAP PP or SAP PPPI is to understand the products which are manufactured in the organization and the way they are manufactured. It becomes difficult for a consultant to 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 having their own orders. The best way to decide this is by finding answers to some questions like: 

a)      During the production of the final product, are there any stages where you break the production process and store the “half made product” for appreciable amount of time. This breaks the continuity of manufacturing Where ever the production breaks and storage is required, you can call the “half made product” as a semi-finished product. All the semi-finished products have their own BOM and there own Task list and thus they would have their own orders. b)      A final Product may already have semi-finished products marked which go in to making it. Thus we have to adopt the same and create separate orders for the same.

 c)      Finally, one more interesting argument can be, anything in SAP which needs to be produced and stocked should have an order.

 d)     Even if the organization decides to stop storing a semi-finished product in inventory and optimize/increase the continuity of the production, they have to keep in mind that they cannot ever bring it in to stock for the purpose of further consumption or sale to any customer (if ever they decide to sell it).

  Bottom-line: You have to create multiple orders in the system for producing each of the stock able products. 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    à F    à 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. Thus all 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-products is that it reduces the total percentage of the header material to be received stock proportionate to the percentage you have received for the co-products. For example if the predefined co-product split rule is 95% receipt for the header material and 5% for the co-products, you can only receive 95 units of 100 units for 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 that would be received for the co-product and header material. The co-product also needs to be maintained in the 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 are received during production of the main product. These products are either sold off for very less price or scrapped 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-product reduces the order cost proportionate to the cost of the received product. So if you receive semi-finished products 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 material as a component in the header material BOM with a negative quantity.   

 

 

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 material for 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 it reduces the total percentage of the header material to be received stock proportionate to the percentage you have received for the co-products. For example if the predefined co-product split rule is 95% receipt for the header material and 5% for the co-products, you can only receive 95 units of 100 units for the header 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 for materials which do not have appreciable value at all) apart from receiving the header material. The only issue 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 in SAP.   

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 create just 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 component of “B” assigned to the “X” BOM and components of “C” assigned to the “Y” BOM. Then assign the semi-finished material “B” to the Phantom BOM “X” and assign the semi-finished material “C” to the Phantom 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 as by-products.  

A – Finished Product X – Phantom Material BOM Y – Phantom Material BOM

    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 to required operations. You would combine the operations required to produce the semi-finished product “B” and Semi-finished product “C”, in one task list. Let’s say you had 3 operations which were originally used for product “B” and 2 for product “C” and there 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 you create the confirmation at operation 0030, the component “B” is automatically backflushed and received in 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 would have to manually re-issue the product “B” to the same order using movement type 532. This nullifies the 531 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 type 531) 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 “A” using movement type 532 (reversal movement of 531). You could possibly think of automating the process of re-issue of the semi-finished products to the order using 531 movement type as required using ABAP developments. 

SAP Routing/Recipes Explosion in the Production Order / Process Order 

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 for manufacturing a product. It is a created as a master data in SAP. Upon selection of a Routing/Recipe the operations, 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 type whether you want to select the Routing/Recipe manually or automatically. You can choose manual selection if you choose to. 

0 No routings or reference operation sets to be used1 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, SAP will 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 to choose from, it pulls in Routings/recipes for the production order header material which is valid from the order 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 in the “Order type Dependent Parameter settings”, thus allowing the SAP to choose a valid Routing/Recipe during order creation. Normally for SAP PP, you can choose the standard “01” Selection ID and for SAP PPPI you can choose the “02” Selection ID or create your own. Actual Selection: When the system chooses a Routing/Recipe, it pulls in Routings/recipes for the production order header material which is valid from the order start to order finish date and whose lot sizes matches with the production order quantity. Jeopardy: When automatically selecting a valid Routing/Recipe, if the system comes across more than one 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. 

 

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 BOM selection through Production versions, in which case if there is a Routing/Recipe also assigned to the Production version the system would choose that Routing/Recipe instead of using the automatic Routing selection (through selection ID set in configuration). 

 

SAP BOM Explosion in the Production order / Process Order

 

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 of the header material. Configuration: When an order is created, you can choose whether you want the BOM to be pulled in the order 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 order through the above configuration, the actual pulling of the Material BOM in the order is performed by the value 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 the Routing is attached and the order is scheduled so that it gets the Order start date or Order Finish Date and the BOM explosion number and uses it as BOM explosion date. You can carry out these settings in transaction 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 be selected 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 the lot 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 to picture, 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 upon the lot size, validity dates and the BOM maintained in the production version, and if a valid production version does not fit then the system gives you an option to choose the BOM through manual selection methods.

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

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

 

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

 

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

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

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

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

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

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

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

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

Methods to Create a SAP Production order / Process Order 

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 or manually 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 with reference to a material code or with reference to a reference to a Sales order (in Process order there is no option to create with reference to a sales order).

  

Production order creation transaction codes  Stock Requirement List Individual Display: MD04 Stock Requirement List Collective Display: MD07 Creation of Production order from planned order: Individual Conversion: C040 Creation of Production order from planned order: Collective Conversion: CO41 Creation of Production order from planned order: Partial Conversion: CO48 Creation of Production order from planned order: Individual Display Screen: MD13 Creation of Production order from planned order: Collective Display Screen: MD16 

Creation of Production order using a material code: CO01 Creation of Production order using a sales order reference: CO08  

 

Process order creation transaction codes  Stock Requirement List Individual Display: MD04 Stock Requirement List Collective Display: MD07 Creation of Process Order from planned order: Individual Conversion: C0R7 Creation of Process Order from planned order: Collective Conversion: COR8 Creation of Process Order from planned order: Partial Conversion: COR7_PC Creation of Process Order from planned order: Individual Display Screen: MD13 Creation of Process Order from planned order: Collective Display Screen: MD16 Creation of Process Order using a material code: COR1 

  

Creating a Production Order / Process Order in SAP 

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 enter anything on the selection screen. The selection screen entries are required for entry if you are manually creating an order. 

 

 

 

Material Enter the Material for which you are creating a Production Order for  Production Plant Enter 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 plant there 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 the planning plant as the plant where goods receipt is to take place and the production plant is the plant where the actual production happens. 

 Order type Order type is a like a document type against which you will be producing the order. Order type contains a list 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 the BOM is pulled in the order, documentation of order information and goods movements, Batch determination search procedures, reservation creation possibilities and the order costing controls.  Production / Process order number If the Production order number and the process order number are defined for external numbering, then in that case you need to provide a number up to 12 characters.  Copy from Option SAP has provided options to copy from an existing Production order, when it does this it creates one more order with the same order type, header material code and the same plant. It copies the component list, the operation 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 header fields 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. 

 

 

 

 

Total Quantity Enter the quantity that is required for production. This quantity is inclusive of the scrap quantity. The entered 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 a percentage 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 Quantity An 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 today’s date, both start and finish date are today’s date. Only Capacity Requirement Scheduling: This option allows you to enter the start and finish dates as you wish.  Schedule Margin Keys The Schedule Margin Keys holds the Floats before and after production, the release period given to the users to release the order from the order start date and the opening period given to the users to convert the planned order to production order. The floats in production increase the total lead time of production by adding the floats or buffers to the lead 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 planned order. 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 it preconfigured 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 order finish date by adding up the Routing operations standard value times (the system schedules forward in such 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 are flexible)   Steps SAP Uses in Calculating the Dates : Step 1: Enter the Order Basic Start Date Step 2: Adds the “Floats before Production” to derive the Schedule Start Date Step 3: Uses the Routing/Recipe for lead time scheduling to derive the Scheduled Finish Date Step 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/Unit   Operation 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 = 25th Dec 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 : 29th Dec 2010 (06:00) = this is the Order Basic Finish Date

 Example illustration : 

Operation Number

Scheduled Operation Start Total Operation Time 

Scheduled Operation Finish

10 25th Dec 2010 (00:00) 15 HRS 25th Dec 2010 (15:00) 

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

 

Order Basic Start Date

Floats Order Scheduled start date

Order Scheduled Finish date

Floats Operation Finish

25th Dec 2010 (00:00 AM)

2 Days

27th Dec 2010 (00:00 AM)

28th Dec 2010 (06:00) 1 Days

29th Dec 2010 (06:00)

       

   Order Finish Date /time & Backward Scheduling  If an order finish date is entered and Backward Scheduling is chosen, then the system calculates the order Start date by adding up the Routing operations standard value times (the system schedules forward in such 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 are fixed)  Steps SAP Uses in Calculating the Dates : Step 1: Enter the Order Basic Finish Date Step 2: Subtract the “Floats after Production” to derive the Schedule Finish Date 

Step 3: Use the Routing/Recipe for lead time scheduling to derive the Scheduled Start Date Step 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/Unit  Operation 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 = 29th Dec 2010 (06:00)         Subtract 1 Days as Floats after Production: 28th Dec 2010 (06:00 AM) which is equal to = Order Scheduled Finish Date/Time.         Derive the Order Scheduled Start Date from Lead time forward scheduling: 27th Dec 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

  

Operation Number

Scheduled Operation Start Total Operation Time 

Scheduled Operation Finish

10 25th Dec 2010 (00:00) 15 HRS 25th Dec 2010 (15:00) 

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

  

Order Basic Start Date

Floats Order Scheduled start date

Order Scheduled Finish date

Floats Operation Finish

25th Dec 2010 (00:00 AM)

2 Days

27th Dec 2010 (00:00 AM)

28th Dec 2010 (06:00) 1 Days

29th Dec 2010 (06:00)

       

   Order Start/Finish Dates and Current Date Scheduling  When you do not enter any value for the order start date or orders finish date and choose the scheduling type as “Current Date Scheduling”, the system enters the start and finish dates as “today’s date”.  Order Start/Finish Dates and Only Capacity Requirement Scheduling  When 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 Scheduling If order start date/time both are entered and Forward in Time Scheduling is chosen, then the system calculates the order finish date and time by adding up the Routing operations standard value times (the system schedules forward in such cases).  The only difference here is that along with Order Start date you can also enter the order start time and allow the system to calculate the order Finish date and time.  Order Start/Finish Dates and Backward in Time Scheduling If 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 (the system schedules forward in such cases).  The only difference here is that along with Order Finish date you can also enter the order finish time and allow the system to calculate the Order start date and time.  Scheduled Start Date

 The Scheduled start date is always equal to the Basic Order start date, if floats don’t exists. But if you include schedule margin keys with a value of “Floats before production”, the scheduled start date is calculated.  Scheduled Finish Date The Scheduled Finish date is always equal to the Basic Order Finish date, if floats don’t exists. But if you include schedule margin keys with a value of “Floats after production”, the scheduled finish date is calculated. 

  

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 a consultant or user while creating an order.   

 

 

 

 

MRP Controller / Production Scheduler:  Automatically Pulled in: MRP Controller and the Production Scheduler is pulled in from the header material master. MRP Controller is the person who plans and converts the planned order in to production order. If you haven’t maintained the data in the Material Master of the order material, then you still have an opportunity 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 OPPQ and 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 arising from Customer Sales order. You can trace the production order or process order for the customer sales order, 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 satisfy any 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 or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.

You can create financial statements for business areas, and you can use these statements for various internal 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 is created to cover the demand and subsequently converted to an order; this planned order which is used to convert to this order is populated here. The planned order once converted to production order is deleted from the system and also removed from the tables. Thus if you try to see this planned order in MD12 or MD13, you wont be able to see it.  Production Version When the BOM and the Routing/Recipes are selected in the order from a valid material production version, 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” for the order which contains the list of components (dependent requirements) which would be used to manufacture 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 through the scope of availability settings.  Normally the reservations on components are not hard reservations and these components can be used across orders. Uses of Reservations: Reservation list can be used by the warehouse or the materials department to keep the components ready for production order or

process order. Subsequently the same reservation list can be used 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 through an order). Stock Overview: You can see a column in the MB52 or MMBE that suggests the total quantity reserved for the material. 

  

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 a goods receipt for the order through MB31 or MIGO transaction codes. If Quality management is active for the header material master and there is an inspection type maintained in the material master to support ‘inspection at goods receipt from order’, the proposed stock type in which 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 production order). Think over it: Though it is also possible that the “GR storage location” is designed to book receipts into “blocked stock only” in which case, the goods will always be posted into blocked stock, no matter what.  GR Processing time It is pulled in from the MRP views of the Header Material Master  Goods Receipt Indicator / delivery Complete Indicator Once 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 in the material master MRP 2 View, the same is populated here during order creation. 

The second option is to get the Production Storage Location from the Production Version. If there is no Storage location maintained in Material Master or the Production Version, you can enter one directly here, though it’s not mandatory. In which case you will not find any Storage location defaulted at the time of GR from Order, and you have an opportunity to enter one there.  Batch If you are creating a Batch Master for the header material at the order header level, i.e., all the goods receipts which will be created from the order will be mandatorily for this batch. Why do you create batch at header level : When you are damn sure that you will always use only one batch to receive goods from an order, then you have an opportunity to fix the batch number in the production order release or create mode itself. You can also classify this batch with values which are required to be populated prior to production start. The creation of batch at

the header level may also be required in cases where the product labels are printed prior to goods receipt and they require the batch number to be on it. Automatically created : This batch is automatically created when you create or release the order. But if you want to overwrite it with another batch number you can certainly do so. Configuration required: For creating a batch at the header level, you have to use SPRO transaction code CORW, where you can set-No automatic Batch creation, Automatic Batch creation at order release or Automatic Batch creation at order create. At the same time you can decide to have the batch classified in the order or not and if you decide to classify the batch it can be either in the foreground (in the production order screen itself) or in the background. Note that this configuration is done at a plant & production Scheduler Profile level.    Order Delivery Tolerances  

The “tolerance value” is automatically pulled in from the material master. These are tolerances with which an order quantity can be received in stock or confirmed in SAP. If you maintain under-delivery tolerance: This means that the order can be received in stock or confirmed with a quantity lesser than the order quantity as decided by the under-delivery tolerance percentage entered in this field.  The final confirmations and the order GR only allows the quantity allowed by the under-delivery tolerance. For example if the order quantity is 100 and the under-delivery tolerance is 20%, then the system allows only 80 units to be confirmed in the confirmation screen and once you reach 80 units a CNF status is assigned (fully confirmed status) at the same time once you receive 80 units in GR, the system assigns a fully delivered (DLV status) to the order and you can receive no more now. If you maintain over-delivery tolerance: This means that the order can be received in stock or confirmed with a quantity more than the order quantity as decided by the over-delivery tolerance percentage entered in this field. The final confirmations and the order GR only allows the quantity allowed by the over-delivery tolerance. For example if the order quantity is 100 and the over-delivery tolerance is 20%, then the system allows only 120 units to be confirmed in the confirmation screen and once you reach 120 units a CNF

status is assigned (fully confirmed status) at the same time once you receive 120 units in GR, the system assigns a fully delivered (DLV status) to the order and you can receive no more now. If you maintain unlimited delivery: You can receive more or less than the quantity required. This is very risky and must be used when the business is damn sure of what they are doing. This can be a situation, when the organization does not know how much more or less they might receive from the order (use this sensibly). 

 

  

SAP Order Creation - Order Header Control Data Tab & Dates Tab 

Enter the following in the Order Header Screen: Control Data Tab  

Not mandatory for data entry: This tab is not mandatory for entry by a consultant or user to create an order.  All the fields in this tab are brought in from order type dependent parameter configuration or order type scheduling parameter configuration. You don’t have to do much here  

 

 

 Fields values pulled in from “Order type dependent parameter” configuration Create Reservations/Purchase Requisition: Defining when the reservations and purchase requisitions for non-stock material should be created. Costing Variant Plan: Costing Sheet ID: RA key: Planned Cost Calculations: determines when the planned cost should be created, to be created at the point of saving or saving after release.

 Costing Variant for Actual Costs: Overhead Key: Variance Key:  

Fields values pulled in from “Order type scheduling parameter” configuration The below configuration values are pulled in from the order type scheduling parameters which is used to control the scheduling and capacity generation for the order. Calculate Capacity Requirements: If this is selected, then the capacity requirements are generated for each of the operations/work centers/resources in the order. Exact Breaks: If this is selected, then Scheduling should consider breaks. Schedule Automatically: This indicator is set at release, and it means that the order will be scheduled at the time of saving the order, every time you make a change to the operations details.  Production Scheduling Profile  The Production Scheduling contains a set of control for the production order, it is not mandatory to maintain a scheduling profile in the order. Normally a profile is pulled in from the Material Master of the production material. If you have not maintained one, you still have a chance to maintain one here, in the order. Actions and control included in the Scheduling profile are:  

Automatic Release on Creation

Automatic Linking documents on Creation 

Automatic Printing of Order on Release

Automatic Scheduling of Order on Release

Automatic Linking of documents on Release

Automatic Creation of Control Recipe on Release 

Automatic Goods Receipt from order during Confirmation of last

operation 

Allowing confirmation or reservation of only an available partial

quantity for components in component list of an order. 

Assign a Capacity Leveling Profile, if you are wishing to use

“Availability check for Capacity” in the order. 

If you wish to use capacity Availability checks in order, then you also

need to maintain the Finite Scheduling indicator.  

Controls for Automatic Batch creation in an order and batch classifying

settings if required (specifying automatic batch creation at release or

save and classifying in the foreground or background). 

Allowing entering a default order type for the plant while creating an

order.  

 

Enter the following in the Order Header Screen: Qtys and Date Tab: 

 

This tab gives you an overview of the quantities and Dates 

  

SAP Order Creation - Order Header Dates, Master Data, Long Text & Admin Tab 

View the following in the Order Header Screen: Master Data, Long Text and Adminstrative Tab 

 

 

 The dates/quantities tab will go on filling in the order specific dates and quantities information. This is self explanatory. The master data tab contains the BOM and the Routing/Recipe information which is used to create the order. There is one more tab at the end which is called the administrative tab which is stores the information on who created the order and on which date. 

 

 

Enter the following in the Order Header Screen: Long Text Tab  

 

 

The order header, long text tab is free for use to insert any order specific information in it. Long text is an unlimited space to enter process or production related values. Unlike the short text, the long text has no limitation of characters that can be used. The short text normally has only 40 characters to use from. 

 

 

View   the following in the Order Header Screen: Administrative Tab:  

 

This tab gives you information on the date the order was created and the user who created the order 

 

 

 

  

SAP Order Creation - Operation Overview and Detail Screen 

Enter the following in the Order Operation Overview Screen & Operation Detail Screen  Operation Overview Screen: 

 

 

 The order operation overview screen contains the list of operations assigned with work centers/resources and arranged in a sequence of processing. You can see the operation list only when the Routing/Recipe is pulled in to the order. Nevertheless you can change the operation list in the order as required. Adding or Removing Operations:

You can add “+” you own operations in the order or you can remove

operations “-”, if required. When you add an operation, it is not mandatory at all the add a work center or control key or a description, thus you can escape without entering any field values in the operation overview or the operation detail screen. Atleast one operation should exist in the Order Operation list: The selection of Routing/Recipe in an order can be configured as any one of the option in the table below. But when you have chosen the option where the selection of Routing/Recipe is Mandatory, a task list has to be pulled in the order, or else the creation of order aborts. But when you have chosen the option of Routing/Recipe selection optional and a task list selection is not mandatory and the order can still be created provided you have configured a default operation for the order type. Therefore we can say that the operation overview of an order requires atleast one operation in it for the order to get created. 

 

0 No routings or reference operation sets to be used1 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)

 The relevance of all the field in an operation overview and operation detail screen is explained in detail in the SAP Routing/Recipe section of this website:http://www.sapsword.com/home/learn-sap-pp/sap-routing-recipes  

Operation Overview fields in a Production Order:  Operation NumberSub operationWork centerControl KeyStandard TextOperation descriptionCurrent Operation StatusOperation Start DatesOperation Finish DatesIndicator: whether components are assigned to itIndicator: whether PRT’s are assigned to itIndicator: whether Trigger points are assigned to it  

The Operation Overview field in a Process order contains: Operation numberPhase numberResourceControl Recipe DestinationControl KeyStandard TextOperation/Phase DescriptionCurrent Operation/Phase StatusOperation/Phase Start Dates

Operation/Phase Finish DatesIndicator to show for each operation, whether components are assigned to itIndicator to show for each operation, whether PRT’s are assigned to itIndicator to show for each operation, whether Trigger points are assigned to it  

 

Operation Detail Screen: 

 

 

 

The Operation detail screen can be accessed to edit or view, in an order by selecting the operations/s or phase/s, using the following path:

 When you add an operation to the order, you have to enter the field values included in the operation overview screen. These field values in an operation overview or in the operation detail screen are not mandatory for entry when you add an operation. All the fields of the operation detail from the Routing/Recipe are pulled in the order and are arranged in a “tabular” fashion. The relevance of all the field in an operation detail screen is explained in detail in the SAP Routing/Recipe section of this website: http://www.sapsword.com/home/learn-sap-pp/sap-routing-recipes  

Sub-operation dates 

This is a display only tab in the operation detail screen and it shows the start dates and finish dates for the sub-operations assigned to the operation. This option is not included in the process manufacturing. In process manufacturing you have phases assigned to operations and there is no trace of sub-operations in process manufacturing.  

Quantities/activities 

This is a display tab in the operation detail screen and it shows the quantities that are to be confirmed and that which are already confirmed. It also shows the scrap quantities, both planned and confirmed.  

Confirmed dates 

It shows the operation start and finish dates, both planned and confirmed dates.  

Assignment of capacity requirements: 

At the operation detail level you make assignments of the individual capacities declared in the work center, i.e. you can actually decide which machine or labor is to be actually used to execute the operation and also split up the total operation quantity between the capacities. Splitting the operation quantities between the individual capacities reduces the total operation lead time and gives you accurate information on the machine or

labor that was used for execution. This facility is only available for discrete manufacturing or repetitive manufacturing (if you use production orders there).  Scheduling and Capacity Generation in an order:  

Operation Scheduling and Capacity Generation: The operation standard values derived (machine time, set up time, teardown time, utilities consumption) is a direct proportionate of the order quantity. When you schedule an order, the scheduling formula and the capacity generation formula for each operation derives the total lead time for each operation. When we add the operation lead times we get the total order lead time. Note that this has been explained in several topics before.  

Planned Costing Requirements: At the same when the system calculates the operation lead times (scheduling and capacity requirement generation) using the standard values like machine time, set up time and teardown time, it also calculates the planned cost for each of the standard value (if a costing formula is assigned to the standard values in the work center/resources). Planned cost generation example: For an operation which is assigned to a work center/resource called “Finishing”, the following standard value are assigned for a base quantity of 1 Unit 

Operation Data Brought in from the Routing/Recipe for Operation 0020 - FinishingOperation0020

Standard Value Parameters

Standard Value for a base qty

Costing Formula assigned to the work center/resource in the costing tab

Activity Rate assigned to the cost center for the work center

Finishing Setup Time 1 HR (Setup time X Operation qty) / Base qty

$10/HR

Finishing Machine Time               

1 HR (Machine time X Operation qty) / Base qty

$100/HR

Finishing Water Required

100 L (Water Required X Operation qty) / Base qty

$1/L

Finishing Electricity Required  

1 KWH (Electricity X Operation qty) / Base qty

$20/KWH

 

Costs derivation at the operation 0020 - FinishingStandard Value

Value for a base qty

Order Qty

Costing Formula Total Activity Cost for the operation

Parameters

Setup Time 1 HR 100 Units (1 X 100) / 1 HR = 100 HR 100 HR X $10 = $ 1000

Machine Time               

1 HR 100 Units (1 X 100) / 1 HR = 100 HR 100 HR X $100 = $10000

Water Required

100 L 100 Units (100 X 100) / 1 L = 10000 L 10000 X $1 = $10000

Electricity Required  

1 KWH 100 Units (1X 100) / 1 KWH = 100 KWH

$100 X $20 = $2000

      Total Planned Cost at the Operation

$ 23000

 Similarly the costs are calculated at all the operations in the routings.

 

 

SAP Order Creation - Component Overview Screen 

Enter the following in the Order   Component Overview Screen  

 

 

Component Overview Screen: 

 

 

 

 

Component Detail Screen:

 

 

 

 

 

The Component overview screen contains the List of components pulled in from the BOM. The quantities are proportionate to the Order quantity. The Quantity required of each component is called the requirement quantity. 

Every component that is pulled in from the Standard BOM would be represented as a Line Item in the Component overview screen. 

When you are in the creation mode of the order, the standard BOM is pulled in and a reservation list is created by the system which contains these components. A reservation list is a direct copy of the component list. 

 

Adding or Removing Components 

You can add “+” you own component in the order component overview

screen or you can remove components “-”, if required. When you add an components, the system forces you to enter the following: 

Operation number to which it should be assigned to

The Item category of the component

The Component quantity required for production of the order quantity

The Unit of Measure of the component if the same is not maintained in

the Material Master or BOM

The Plant of the component is defaulted to the Production Plant of the

order, in cases where you are issuing a component from alternate

plant, it would pick up the same from the material master's Special

procurement key - withdraw from alternate plant

If the Component added is a Phantom Header Material, the system

needs you to choose addition of component with BOM Explosion or

without BOM explosion. If you add the Phantom Material with BOM

explosion then the components of the Phantom Material BOM are

pulled in the order and if you add the Phantom Material without BOM

explosion, only the Phantom Material itself is pulled in the order

 

Every Line item in the Component Overview screen contains the following: 

 

 

Line item number 

The line item number normally increases in an increament of 0010. This is configured in the order dependant parameters. 

 

b) Component 

This is the component number brought in from the Standard BOM. 

 

c) Component Description 

The component description is the standard component's material master description. This description cannot be changed in SAP. It can only be changed in the material master change transaction code.  

 

d) Component quantity required for the order & UOM 

Component quantity or the requirement quantity, is the standard BOM quantity multipled by the Order quantity. Though if there is a scrap quantity maintained at the order level or the component level, this requriement quantity is increased by the scrap percentage. 

You can manually change this quantity in the productin order. 

 

UOM : The component UOM is fetched directly from the standard BOM. This is also know as the issue UOM. The material when it will be issued to the order, it will be issued in the UOM mentioned here.  

 e) Component Storage location as brought in from 

This is the component storage location from which the material would be issued to the order. 

        - the material master: Issue Storage location field or        - the standard BOM: Issue storage location at component level

 

you can change the issue storage location manually in the order. 

 

f) Component Item Category 

        - "L" for Stock Item        - "N" for Non Stock Item        - "C" for Class item used in Variant Configuration 

If the item category for the component is "N" then the system creates a Purchase requisition (PR) in the order for the component procurement. This PR is inturn converted to Purchase order (PO). The item category is also changeable in the order. 

Configuration Dependancy for creation of Purchase Requisition: 

This setting is also relevant for creation of reservations. Thus we can say that for creation of reservation and PR, you can configure as following: 

-If the Order dependant parameters settings allow for creation of PR/Reservations at order creation, the option 3 - "immediately" will be choosen. 

-If the setting allow for creation "at release", then the PR/Reservations are created at order creation stage itself. 

-If you set it to "Never", the PR/Reservations are never created. 

1 Never2 From

release3 Immediately

 

 

g) Component Plant 

The component plant in most of the cases is production order plant unless and untill you are using withdrawl from other plant for the component. To Use Withdrawl from other plant you have to mark the special procurement key of the component in the material master as "Withdrawl from alternate plant". 

 

h) Component BackFlush Indicator

 

If the Component is marked as Backflush component in the material master or in the work center where it is assigned to, the backflush indicator would be selected. 

Though you can select this indicator manually. 

If this indicator is set, the component would be issued automatically in the background during operation or order confirmation. 

 

i) Operation assigned to 

The operation to which the component is assigned to will be defaulted in the production order, if you have done a component allocation in the Routing or Recipe or in the BOM. 

If you have not allocated the component to the operations, the system will default to the first operation number. 

 

j) Requirement date 

The Requirement date equal to the operation start date (to which the comopent is allocated to) is populated for the component. This date can be changed if the operation start date is changed or rescheduled. 

 

k) Withdrawn Quantity 

The Withdrawn quantity is the amount of quantity of the component issued to the order till date. 

 

l) Component Usage Probability 

The component usage probability is brought in from the standard BOM. 

If the component are placed in an Alternate group with prorities and strategies, the usage probability will be calculated in the order component overview. 

You can nevertheless change this percentage allocation manually. 

 

j) Reservation number & Reservation Item number 

Every component in the component overview screen becomes part of the reservation list. Therefore every component will contain the Reservation number and Reservation Item number. 

The Production order reservations cannot be changed. They are only for display. 

 

Configuration Dependancy for creation of Reservations: 

If the Order dependant parameters settings allow for creation of Reservations at order creation, the option 3 - "immediately" will be choosen. 

If the setting allow for creation "at release", then the reservations are created at order creation stage itself. 

If you set it to "Never", the reservations are never created. 

1 Never2 From

release3 Immediately

 

 

 

Reservation List and Picking List 

 

The Reservation list created from a production order can only be viewed through the use of transaction code MB23. You cannot change the order reservation nor create one. 

You can use the reservation list to Stage material from Inventory Warehouse to Shop Floor Issue storage location. 

 

Picking List - For every production order or for every reservation list, a picking list is created. You can use the picking list to issue material to the production order. Picking list is included in Tcode MB26.    

 

 

SAP Order Creation - Releasing the order 

Releasing an order: 

 

When the order is under the creation mode or the order is under a change mode, you can release an order. The Production order header screen or the Operation Screens or the component screens have a "Green Flag" button on the top to release an order as shown below: 

 

 

 

 

 

Releasing an order will trigger the following activities: 

Releasing an order would change the "CRTD status of the order to

"REL"

Releasing would start allowing order confirmations

Releasing would start allowing goods issues to the order

Releasing would start allowing goods receipts from an order

 

 

Before Release, the system would carry out an material availability check, if   configured:   The Material Availability checks would check the stock availability of all the components and if the materials are not available the system would generate a "missing part list" showing the shortage quantities. 

As per the Order availabillity checking rules and controls configuration, the system allows or disallows the Release of order, incase of shortages. 

 

Before Release, the system would carry out an Capacity availability check, if   configured:  

 

You can also configure the system to carry out capacity availability checks before release of the order, through the order avialability checking rule and controls. 

But to have the capacity availability checked, you should mark the work centers as relevant to "Finite Scheduling" and the Production Scheduling profiles and capacity profiles should  be configured for capacity availability checks. 

The Capacity Availability checks works only in Orders and through the use of this functionality you can decide on loading the work centers when they are free and available for use. The system would prompt the free spaces also. 

 

 

 

 

 

SAP Order Creation - Saving the order SAP order creation - Saving the order:  When you are ready to save the Order, you should press the save button at the top of the screen. Saving the order would save all your changes. If you have not given any external numbering to the order, SAP will generate an internal number as shown below. The following screens would explain you the same:  

   

Goods Issue to Production Order or Process order 

Goods Issue to Production Order or Process order 

 

So as to produce a production order quantity or a process order quantity, you need to issue components in a quantity proposed in the order component list or as proposed in the reservation list. 

The issue of components can happen from the Warehouse or from the storage location near the Shop floor itself. 

A Production order component list is shown below. The reservation list is a replica of the component list in the order component overview.   

 

 

 

 

 

 

Reservation List: 

 

Once you create an order, the system creates a reservation list as shown below. You can access the reservation list from the order itself or you can access through the transaction code MB23. 

The Reservation list created from an order is not editable. 

 

MB23 Initial Screen: 

 

 

 

 

MB23 - Reservation List is seen as below, when you enter the reservation number in the selection screen and press enter. 

 

 

 

 

Note - 

 

1) The reservation list contains all the components that are requried to be issued to the order and it also contains the by-product material which is to be received from the order. 

 

2) The Reservation list is a replica of the component list of the order. If you have entered the batch number in the order, the system mandatorly tries to issue this component-batch to the order from the designated storage location. On the other hand, if you have enetred a batch number for the by-product material, the system would mandatorly receive the by-product from the order with this batch number. 

3) If you have not entered any Batch number or storage location in the Order, the system allows you to enter the same during good issues. 

 

 

Steps in   Order Goods issue:  

 

 

Step 1: Selection Screen   

The tranasction code used to issue materials to the order is MB1A through movement type 261 or you can alternatively use transaction code MIGO through the use of the same movement type 261. 

On the selection screen, you should enter the plant, the movement type. Entering the storage location is optional. Entering a storage location here would default the storage location ID in all the goods issue that would make. 

 

Remember once you have entered the selection screen values, you should press "To order" or "To Reservation" button so that you can issue goods to the order and the system proposes all the components that are to be issued to the order (rather than you entering them manually in the order).   

 

When you press the "to order" or the "to reservations" option, a pop-up box appears that wants you to enter the order number or reservation number.                                 Then Press the enter button on the popup or press the "Adopt" Button 

 

The Button - "Issue goods to the order" or "To- Reservation" will automatically propose all the components required from the reservation list. In short the reservation list proposed in the goods issue screen helps you not only to issue the correct components in the correct required quantities as wished in the order, but also clear all the reservations once they are issued completely to the order.   

 

Note - If you forget to enter the movement type and directly press "to-order" or "to reservation" button, the system would automatically assume the movement type as "261"  Screen Shot explains the selection Screen: 

Enter Plant, Movement type, SLOC Press the "to order" or "to reservation"  Pop-up Box Appears  Enter the order number or reservation number Press Enter to go to Proposed Component List 

 

 

 

 

Press the "To Order" or "To Reservation" Button so that the system proposes the Components and its details:

 

 

 

 

 

Pressing the enter button of the Popup in the step 1, will take you to a tabular arrangement that shows you the component, component quantity, unit of measure, plant and storgae location for each of the components that are to be issued to the order. 

 

Pressing the "Adopt" Button of the popup in the step 1, will take you to the individual component details. To access the details of all the components, you have to press the Copy component button (declaring that the current component is correct and can be issued and the next component can be accessed) to see the details of the next component. 

 

 

Step 2:  Goods issue item detail screen  

 

What can be edited if you are "issuing to order" - If you are accessing the goods issue by pressing the "Issue to Order" then you can only edit the quantity that is to be issued to the order. 

 

Screen Shot below: The first half of the screen shot shows the screen that you get after pressing enter button on the to-order or to-reservation pop-up & the next half of the screen shot shows the screen that you get after pressing "Adopt + Details" on the pop-up. 

 

 

 

 

 

Step 3: Press the Save Button or the Post Button: 

 

Pressing the save button or Post button the goods are issued to the order. 

 

 

 

 

 

Step 4: Saving the Issue creates a Material Document 

 

Pressing the save button or Post button the goods are issued to the order and a material document is created in the background. The material document contains the details of goods issue and it contains the accounting documents also. The accounting document contains the GL accounts that are hit. 

The above screen shots gives you details of the material document generated at the bottom of the screen when you save the issues. 

 

 

 

 

Unplanned Goods Issue to SAP Production order or Process order: 

 

There can be cases in production where: 

 

a) you may want to issue more than the reserved quantity of a certain component or 

 

b) you may want to issue a completely new component (which can be a substitute for the original component or which may be completely new to the production)  

 

 

To carry out unplanned goods issue to the production order or process order, you should do the following: 

 

a) Use transaction code MB1A and enter the movement type 261 and enter the plant code, you can also enter the storage location if you wish you. 

 

b) Do not press the - "issue to order" button. 

 

c) Instead you can press the "Enter" button or press the "New Item" Button. 

 

d) By pressing the enter or the new item button, you are given a screen to enter the material number, the quantity, the storage location, and the unit of issue for each of the material you would want to issue to the order. 

 

e) When you enter the "New item Button", you are given a screen to enter a single component with quantity that you may want to issue, but if you have multiple unplanned components to be issued to the order, you should press the "New item Button" again to enter the details for the next component. But if you press enter, then you are given a screen to enter details for multiple components. 

 

f) Pressing the save button or the post button will create a material document that contains the goods issue details and the accounting documents. The accounting document contains the GL accounts that are hit. 

 

 

Explaining Unplanned Goods issue through the following screen shots laied one below the other: 

 

Once you press enter on the selection screen after entering the movement type, the plant and the storage location details (if requried) you should press the enter button, to come in to the screen 1 as shown below. Here you would be asked to enter the component number, qty, storage location, batch number. From this screen, if you are satisfied with the details that you have entered then you can press the "SAVE" button to post the document. 

Screen 2 appears if you have forgotten to enter any details in the first screen or you have pressed "new item" in the goods issue selection screen instead of pressing the enter button. This screen can also be seen by pressing the "Magnifying glass". If you are satisfied with the details that you have entered then you can press the "SAVE" button to post the document. 

Screen 3 appears if you press the "Detail Button" which looks like a "Triangle with a full stop on the top of it". Here you cannot modify any details, but you can press the "SAVE" button to post the document. Once you post the document, system generates a material document number. 

 

  

  

Viewing the Order for Goods Movement details: 

 

Once you have made the Goods issues to the order, you can go back to the order in Order Display mode and check the goods issues made. 

Path - Goto >>> Documented Goods movements (This can be accessed through order header or order component overview screens) 

 

 

 

 

Note - You can also view the goods movements for order through the transaction code COOIS/COID for Production orders and COOISPI for Process orders. 

 

 

 

Good issue through MIGO Screen 

 Goods issues can also be made using MIGO screen. The MIGO screen is supposedly created to replace the MB1A screen in the long run. 

Here you should select the A07 - Goods issue Option, R08 - Order Option, and enter the order number in the next box. Once you select A07 - Goods issues the system will automatically prompt the movement type 261. 

You should press the execute button next to the order number or press F8. When you do this, the system will pull in all the component details that are required to be issued to the order. In short the system would propose the components, the quantities, the storage locations and the batches (if it is batch managed material).

 

The next step is to "select the items" that are to be issued and press the "check button" to check for any errors or warnings and then press the "Post button" next to the check button. You could alternatively press the Post button directly. 

Note - You can also press the save button to post the document. This button can be pressed at any time to post the document. The system will generate the material document number once you save/post the goods issues.  

Example - In our example, we have already issued RM1, RM2, RM3 to the order 1010082, if there was any other component left for issues we could have issued that through MIGO. But we are unfortunately left with only one item in the component overview screen and that is a by-product receipt (see below). 

                >>> Then the next question is, why do we see the by-product component in the MIGO screen since we have issued all the components. 

                >>> The answer is that, SAP has a procedure to receive the byproduct as a "goods issue to order" from the goods issue screens. Therefore if you run MIGO now for the order, you would osee ne item left in the goods issue screen and that is the byproduct item which is waiting for receipt through movement type 531. 

 

 

Yes Sometimes SAP is Confusing - The By-product is also included for receipts in the MB1A-261 or the MIGO-261 goods issue screens. Though the byproduct is not an issue, but it is a receipt, SAP includes this for receipt from the goods issue screens. 

 

 

  

MIGO Screen Details: 

MIGO goods issue screen contains the document date on which the document is created and the posting date on which posting is to be made. 

In the item details section, it contains the Line item, material number, Quantity, Storage location, the batch number and the movement type that is being used to receive line item (in our example we are receiving a by-product which is always received using a goods issue screen). 

The "Detail button" at the bottom of the screen gives the details of each and every item you select. For selecting the item press the Line item number which is the first column.   

 

By-Product Receipts using MB1a - 261: 

  

We have seen how to create Goods issue to order using MIGO screen and Regular MB1A screens through movement type 261. We have also seen how to create by-product GR from an order using MIGO screen. Now we will see how to receive by-products receipts using the conventional MB1A-261. This method is similar to the goods issue to order procedure, except for the following changes that you have to make.

 

 

To receive by-products using MB1a-261, you should press the "To-Order" button or the "To-Reservations" button and proceed as if you are making a regular goods issue to order. The only thing that you would have to remember is that, you should enter the order number or the reservation number in the pop-up and specify in a field a value called "by-products" or "take by-products in to account". 

 

What Values to select in by-product field - If you just want to post by-products receipts and want the system to propose the same, then enter "2" and if you want both issues and by-product receipts to be made then select "1" in the box. 

 

 

  

 

 

 

Good issue Reversals: 

 

 

SAP provides a facility to reverse the wrong goods issues that you have made. Infact all the goods movements in SAP - goods issue, goods transfer or goods receipts have a reversal feature. 

In the case of a Goods issue to order, made using movement type 261, there is a reversal movement available called 262. You can use the transaction code MB1a-262 or use MIGO-262 to create the reversals. 

Alternatively you can use the transaction code MBST (or use MIGO - Document Cancellation option) to create the reversals, using MBST not only saves your time, but it also creates a chance to know the original reference document that was reversed. 

If you use the MB1a-262 or MIGO-262, you would not know the material document or the document item that you are cancelling (due to incorrect issues) and the system would not propose the reversal details for you. You would have to manually type in the details that you wish to reverse. 

 

Options                                                

Details                                                   

Details                                                  

Details   

Reversals using MB1a- 262 or MIGO - 262                                 

Use this option when you want to create partial quantity reversal for an item issued.  

The System will not propose any reversal details for you. You would have to manually type in the component, qty, sloc, and the batch number (if any) that you wish to reverse from the order. 

The system does not have any chance to record the original material document details as nothing is provided to the system during the reversals.

Reversals using MBST You can use this option if you want to reverse/cancel the whole document that was

There is not much of effort required as you would be cancelling an existing document, that

Since you are cancelling an existing document, the system records

posted as goods issue has its own details. 

the original document as reference document in SAP tables such as MIGO. This is a clear advantage over the goods issue reversals process.

 

 

The Screen shot below explains the Goods issues cancellation process. While the goods issue reversal process is same as the goods issue process, where you would have to enter the movement type as 262 instead of 261. 

 

 

 

Importance of Posting Date - You should enter the right posting date during cancellation/reversals or during the actual posting as the movement or production activities is booked on the date you select as posting date.If you have made a issue posting on 25th Dec 2010, then you should reverse

using the same day, therefore helping the system to show the correct goods issue made on 25th Dec 2010. But if you issue on 25th Dec 2010 and reverse the document on 26th Dec 2010, it could be confusing for you to report the goods issues (it would show more issues on 25th Dec 2010 and reduce the issues made on 26th Dec 2010). So be Careful :) 

 

Other Notes on Goods Issues 

Goods issue and Costing 

 

When you create a goods issue of components through the pick-list or through the Goods issue transaction codes, you are actually issuing goods required for production, which hold significant value. At goods issues to the order, the Moving average price of the product  (from Material Master price per unit) is registered as the price of the component for a unit mentioned. Thus for a given quantity issued to the order, SAP calculates the total cost of the component issued to the order and assigns that cost as the cost of raw materials. This is done for all the components issued to the order. 

When the order is created in SAP, the system calculates the planned cost of the production for the raw material consumption, using the moving average price for the component, set in material master. SAP Understand the planned components and their quantities from the reservation list created for the production of the order. 

Similarly when the actual goods issues are created for the order with the actual quantities, the system again calculates the actual cost of production using the moving average price for the component, set in material master. SAP Understand the actual goods issues from the order goods issue tables such as AUFM. 

SAP would eventually add the material cost, the activity cost, the overheads (if any), to arrive at the total cost of production. This is carried out for the planned as well as the actuals and the difference in value between the planned values for material cost and the activity cost, the overheads is tranferred to a price difference account. This is carried out for all the orders on the shop floor. These costs are eventually settled on the material account. 

 

For Example: 

 

Deriving Planned Raw Material cost: 

Thus if you three components planned for issue to the order with the quantities shown below, the planned cost would be: 

C1 = Planned Qty -100 Units (Per Unit price = $2)  = Planned Cost = $200C2 = Planned Qty -50 Units (Per Unit price = $0.5) = Planned Cost = $25C3 = Planned Qty -200 Units (Per Unit price = $1)  = Planned Cost = $200 

The Total Planned cost of Raw Material = $200 + $25+ $200 = $425 

 

Deriving   Actual Raw Material cost:  

The actual cost of production is derived from the actual issues of raw material as shown below, with the actual costs: 

C1 = Actual Qty -110 Units (Per Unit price = $2)  = Actual Cost = $220C2 = Actual Qty -60 Units (Per Unit price = $0.5) = Actual  Cost = $30C3 = Actual Qty -200 Units (Per Unit price = $1)  = Actual Cost = $200 

The Total Actual cost of Raw Material = $220 + $30+ $200 = $450

SAP PP/PPPI Order Confirmations 

SAP PP/PPPI Order Confirmations: 

 

The order in its life cycle goes through the following steps: 

Create Order >>>Release Order >>>Issue PRT's to Order for Production >>> issue Goods to Produce Order >>>Create Operation Level Confirmations (Partial or Final Confirmations at each operation) >>> Confirm the last Operation for produced quantities >>> jReceive Goods into Stock >>> Deliver Goods to Customer 

 

Order confirmations is what we will be talking about in this section. 

Order confirmations can be carried out on a real time basis or you can record order confirmations every shift or every day. It is wise to record the order confirmations on a real time basis, but recording shift wise or day wise isn't bad either. But recording the confirmations weekly or alternate days does not reflect any real time information for superiors (bosses) who are viewing reports and information from SAP. 

 

 

 

Purpose Of Confirmations: 

 

When you would actually start learning SAP PP/PPPI, you may get confused that order confirmations is about receiving goods in to stock. But this is a totally wrong perception that people carry. 

Order confirmations is about: 

a) declaring the quantity that is produced, the quantity that is scrapped and the quantity that requires reworking. 

b) It is also about confirming the total activity hours put in to producing the sub-assembly or assembly thereby deriving the order costs through activity based costing procedures. 

c) And it is also about recording the personnel data responsible in producing the stock. 

 

 

In short the following is recorded during order confirmations: 

 

a) Yield Quantities 

b) Scrap Quantities 

c) Rework Quantities 

d) Total Activity Hours utilized at the operations 

e) Personnel responsible for production. 

f) Actual Dates

 

g) Along with the above, you can also enter the actual values for any other activity included in the work centers standard value key, for example you can enter the steam consumed, electricity consumed, water consumption, if they are declared as one of the 6 allowed activities in the standard value key of the work center. 

h) The system posts automatic goods movements of all the components assigned to the operation in the order task list. We call this backflushing of components during order/operation confirmations. 

i) The system also post automatic goods receipt of quantities during final confirmation of the final operation, for the final operation in the order task list which is assigned with a control key for Auto-GR or for an operation which is a part of an order whose Production scheduler profile is configured for Auto-GR) 

 

 

 

Prerequisites to create Confirmations: 

 

 

The following are the prerequisites to create confirmations in SAP. 

 

a) The control key assigned to the operation in the task list should allow confirmations as necessary or possible or as Milestone Confirmations. 

 

b) The Work center associated with the operations may or may not have activities assigned. But if it has activities assigned (6 or less than 6 activities) you would need to confirm them. 

 

c) To carry out milestone confirmations, you should have a control key marked with "Milestone confirmations allowed" assigned to the operation. Once you confirm a certain operation in a task list which is marked for milsetone confirmations, it would automatically confirm all the operations above it or in other words it will confirm all the operations from this milestone operation to the earlier milestone operation only.  

 

d) For Backflush of components or automatic goods issue of components from an operation during operation confirmation, you should assign the components to the operations in the order task list or the task list master data. (task list means Routing or Master Recipes, Rate Routings, or reference sets)  & mark these components as Backflush components or mark the work center of the operation as "Backflush Work center". 

 

e) For Auto-GR from the final operation (when you create final confirmation on the final operation) you should assign the operation with a control key that allows Auto-Goods-Receipt or you should alternatively have an "Production Scheduling Profile" for the order which is configured to allow Auto-GR. 

 

 

 

Recommendations in   creation of Confirmations:  

 

 

a) To carry out Milestone confirmations, you should always check the sequence of confirmations and configure the order type to check the sequence of operation confirmations. 

 

b) Checking on, sequence of operation in operation confirmations (configuration) would help organizations to follow the sequence of operation confirmations as marked in the order's task list. This is more-so-ever useful when you have too many operations arranged one of the other in the task list and adhering to their sequence is useful in maintaining records.   

 

c) If you are playing with issue of backflush items, it is recommended that you should error out confirmations because of errors in backflush goods movements, instead you allow the goods movements to be re-processed/corrected later on. Such failed movements go and sit in a transaction called "COGI" in SAP, where you can manually correct them or reprocess such failed movements. 

 

d) If there is any error in activity costing, it is recommended that you should stop or abort the confirmations. Only correcting the data through different transactions should allow you to process the confirmations. This makes

sense since errors in activity confirmations means creating errors in order costing. 

 

e) Configuring for proposing the quantities, dates and activities would help you during creation of confirmations. 

 

 

 

Ways to   create Confirmations:  

 

 

There are different ways to create confirmations: 

 

a) Operation Level Regular Time Ticket confirmations: 

 

In this method, you would be confirming each and every operation for quantities, activities and personnel, as and when it is produced on the shop floor. You can confirm for partial quantities or partial activities at an operation or you can confirm for total final quantity and/or activities at an operation. 

 

Steps in Confirmations: 

 

Use the standard SAP transaction code CO11 in SAP PP and Use the standard SAP transaction COR6N. 

In the case of Process order, the confirmations are created for the Phases and not for the operations. The operations in Process orders are included in the task list as information or as a superior place holder for the subordinate phases. The phases are allocated to the operations. All the Activities and quantities are placed on the phases and therefore we confirm the phases.  Enter Order number, Operation number (Optional), existing confirmation number (optional) >>>    Press Enter >>>        Pop-up Appears to select the operation number that you want to confirm >>>

                Select the Operation number that you want to confirm and press enter on the pop-up box >>>                        Enter Quantities confirmed like the Yield Quantity (Good Quantity Produced) and/or Enter the                        Scrap Quantity (Bad Quantity that is produced and needs to be scrapped and/or the Enter the                        Rework Quantity (Bad quantity that needs to be reworked). Opting for planned operation                        Quantity Proposals during confirmations (in configuration), can propose quantities and help you                        when you are entering actual quantities. Also select the confirmation type in the quantities tab,                        whether it is partial confirmation or final confirmations. If you have configured automatic                        confirmations, then the system will automatically select based on the quantities confirmed. 

                                

                        Enter the dates, the actual start date (Good Quantity Produced) and the actual finish date in the                        dates tab. Opting for planned dates proposals during confirmations (in configurations),                        can propose planned dates and help you when you are entering the actual dates. 

                                                        Enter the Values for the Activities assigned to the operation in terms of unit of Entry. If the                        Activity is "Set up Time" enter the actual set-up time consumed. If the activity is "Machine Time"                        enter the actual Machine time required consumed to produce the quantities and if the activity is                        something else like the steam consumed or the electricity consumed or water consumed, enter                        the actual values for them.Opting for Activity Value Proposals during confirmations (in                        configuration), can propose planned activity values (in activity UOM) and help you when you                        are entering the actual activity values.                          Enter the Personnel Number in the Personnel/additional data tab who was involved in the                        production activities, it can be person producing the item or it can be the supervisor. You also

                        have an option to enter a posting date for the created confirmations. You can enter a future date                        if such is allowed in the order type confirmations parameters configurations. >>>                                                      Then Press the Save Button to Save the confirmations. The system generates                                                     a confirmation number when you save >>>                                                                            On saving the system generates a counter number for the                                                                            confirmations created. Every confirmation that you create will                                                                            have a confirmation counter number generated against the                                                                            same confirmation number.      

 

Note - 

 

a) In the selection screen, you have an option to enter the order number or the confirmation number to create the confirmations in SAP. 

 

b) Every Saved confirmations will have a confirmation counter created. The confirmation counter stores the details of the confirmations. You can retrieve confirmation information on the basis of an operation, or on the basis of operation & counter or operation. 

 

c) The System posts Goods issues for backflush components assigned to the operation in the production order task list when you save the confirmations. 

If there are any errors in the Goods issues (like the batch is missing, the storage location is missing, periods closed for goods movements, quantities available in storage locations specified) you can correct the errors (if you have confirmed for error correction in confirmations screen) or you can terminate goods issues (if you have configured for termination) or you can allow it to go for reprocessing which means that the system would successfully create confirmations and would fail any goods issues for missing data, which would later be grouped together for reprocessing in an SAP transaction code called COGI. 

Here in the COGI transaction code, you can correct the errors for the order goods issues and post the goods issue again.

 

 

d)  The System posts Goods Receipts for the header material of the order during the Final confirmation of the final operation if the final operation in the order task list has a control key allowing Auto-GR or the order has a production scheduler profile allowing Auto-GR. 

If there are any errors in the Goods Receipts (like the batch is missing, the batch has missing characteristics values for required characteristics, the storage location is missing, periods closed for goods movements) you can correct the errors (if you have confirmed for error correction in confirmations screen) or you can terminate goods receipts (if you have configured for termination) or you can allow it to go for reprocessing which means that the system would successfully create confirmations and would fail any goods receipts for missing data, which would later be grouped together for reprocessing in an SAP transaction code called COGI. Here in the COGI transaction code, you can correct the errors for the order goods receipt and try posting the goods  receipts again. 

 

e) The posting date of the confirmations is used for posting the goods movements. 

 

f) Also if there are any errors in Activity postings, you can configure the system to allow corrections or to terminate the confirmations. According to me, it looks very sensible to terminate the confirmations, if there are any issues in activities.   b) Order Level Regular Time Ticket confirmations: 

 

 

In this method, you would be confirming the whole order in a single given instance for a given quantity and activity. These confirmations can be partial or final confirmations. When you are confirming at the order level, the system automatically confirms all the operations in the order. 

Every that is discussed in the Operation level Time ticket confirmations in true for Order level confirmations.   

When you confirm an operation at order level, all the operations in the list are proportionately confirmed for quantities and activities. 

 

Note: 

 

a) If you have already confirmed at the operation level, you cannot confirm at the order level. 

b) If you have already confirmed at the order level, you cannot confirm at the operation level. 

c) The Order level confirmations are easy in cases where you have just one operation assigned to the order, or you have many operations assigned to the order with the final operation marked as Milestone Operation. 

d) Also it is much easier for users to record confirmations on the order level. 

  

c) Operation Level Milestone Confirmations: 

 

In this method, the system automatically confirms all the operations from one Milestone operation (you confirm) till the preceding milestone operation only. As an example if you have 5 operations, 0010, 0020, 0030, 0040, 0050, with operation number 0050 and 0030 declared as milestone operations and if you confirm operation 0030 with a partial quantity 20 Units, the operations 0020 and 0010 are also confirmed with partial quantities of 20 Units. 

You can mark an operation as milestone operation through the use of control keys inserted in the order routing. 

In other words, Milestone confirmation means that if you confirm a certain operation in a task list, it would automatically confirm all the operations above it or in other words it will confirm all the operations from this milestone operation to the earlier milestone operation only.  Illustration:  

Operation Work Center Control Key Confirmation of Operation 0070

Confirmation of Operation 0040

Operation 0010 Work center 1                                   Auto Confirm Optn 0050

Operation 0020  Work center 2       Auto Confirm Optn 0060

Operation 0030  Work center 3     Auto Confirm Optn 0060

Operation 0040  Work center 4   Milestone Operation  

  Manually Confirm Milestone Optn 0040

Operation 0060             

Work center 5     Auto Confirms Optn 0060

 

Operation 0070  Work center 6     Auto Confirms Optn 0070

 

Operation 0080  Work center 7   Milestone Operation  

Manually Confirm Milestone Optn 0080

 

   Explanation to the above example - If you confirm the milestone Operation 0040 through Order level confirmations or operation level confirmations, then the system would automatically confirm operations 0040 + operation 0030 + operation 0020 + operation 0010.  If you confirm the milestone Operation 0070 through Order level confirmations or operation level confirmations, then the system would automatically confirm operations 0070 + operation 0060 + operation 0050. 

 

 

 

Others Order status through Confirmations: 

 

When you create partial confirmations, the order gets a status "PCNF" and the Operation gets a status - "PCNF". If you have an order with 3 operations - 0010, 0020, 0030 with quantities equal to 100 at each operation (operation qty = order qty). 

Follow the table to know the changes in system status during confirmations: 

Operation          Operation Qty

Confirmation Step

Confirmation Counter

Confirmation Type

Operation Status    

Order Status    

0010 60 1 01 Partial PCNF PCNF

0010 40 2 02 Final  CNF PCNF

0020 40 3 01 Partial PCNF PCNF

0020 40 4 02 Partial PCNF PCNF

0020     20 5 03 Final CNF PCNF

0030  30 6 01 Partial PCNF PCNF

0030  70 7 02 Final CNF CNF

    Canceling Confirmations:  In SAP, you cannot reverse the confirmations, you can only cancel them. You cannot reverse partial quantities or activities for a confirmation. You can only cancel the confirmation and redo it. Confirmations in SAP are stored at counter level. Every counter is a partial confirmation or a confirmation that you have created in the system. 

When you cancel confirmations in SAP, the system cancels the quantities confirmed, the activities confirmed, the dates confirmed, the personnels confirmed, and any other data that's lying on the created confirmations counter. 

The confirmations Counter that is canceled is marked as canceled in SAP with "Reversed indicator" assigned to it. 

To cancel confirmations you can use CO13 Transaction code in SAP PP and CORS Transaction code in SAP PPPI, to Cancel Confirmations.  

The Following Table in SAP explains Cancellation of Confirmations in SAP. 

 

Operation         

Operation

Confirmation

Confirmation

Reverse

Operation

Order

Posting Date

Comments                                                                    

Qty Counter

Type Status    

Status    

0010 60 01 Partial   PCNF PCNF

14.03.2010 

 

0010 40 02 Final    CNF PCNF

14.03.2010 

 

0010     40 02 Reversed

PCNF PCNF

15.03.2010   

Reversing a Final Confirmation Counter would set back the Operation to PCNF

0010 40 03 Final   CNF PCNF

15.03.2010 

 

0020 40 01 Partial   PCNF PCNF

15.03.2010   

 

0020 40 02 Partial   PCNF PCNF

15.03.2010 

 

0020     20 03 Final   CNF PCNF

16.03.2010

 

0030  30 01 Partial   PCNF PCNF

16.03.2010

 

0030     30 01   Reversed

PCNF PCNF

16.03.2010

 

0030 20  02 Partial   PCNF PCNF

16.03.2010

 

0030 10  03 Partial   PCNF PCNF

16.03.2010

 

0030  70 04 Final   CNF CNF 16.03.2010

 

  

Note - Canceling the Confirmation Counter in SAP, also reverses all the goods movements that have been created during the confirmations. If you have posted backflushes (movement type 261) then cancellation of the confirmation would result in reversals of the goods issues (movement type 262). If you have created goods receipt during operation confirmation, then the cancellation of such confirmation would result in posting the reversal of goods receipt (movement type - 102). The posting date of the confirmations is used for posting the goods movements. 

 

 

Displaying   Confirmations:

 

 

 

You can display confirmations that you have created for an order. In the Display mode, you should enter the Confirmation number or the order number. Selecting the Operation number is optional. You can also select the sub-operation number for which you want to display the confirmations. 

Transaction code - C014 in SAP PP and CORT in SAP PPPI. 

When you are displaying confirmations in SAP PPPI, you should select the phases instead of the operations. There is also an option to select the secondary resources for which confirmations are made. 

   Did you mark the Wrong Confirmation type during Confirmations? 

 

Don't worry if you have marked the wrong confirmation type during the confirmation creations. If you have entered a final confirmation as "Partial" and a partial confirmation as "final", you can rectify the same. Follow the method below to rectify the same. 

Note - In the case of SAP PPPI, you should select the phases rather than selecting the operation number to enter in to confirmations. 

 

Enter the Confirmation number or the order number (you can also enter the operation number/phase  if you want). The system in all likely cases would throw a message, saying that the order or operation or phase is already confirmed and do you want to proceed. You should press the yes/proceed button>>>               Select the Operation number/Phase number on the Pop-Up for which you want to change the              confirmation type, if you are confirming at the order level, you will not get this pop-up >>>                               Press Enter Button on the Pop-up Screen after selecting Operation/Phase >>>                                                      Enter the Yield as "Zero" Quantity or leave it blank. Then Select the Right                                                      Confirmation Type (in other words correct the confirmation type)                                                       

                                                                  Enter the correct Posting date for the confirmations. You may want to enter                                                      the posting date that was used for the original confirmations you made with                                                      the wrong confirmation type. 

                                                       You can also enter a Confirmation text to record to comment on the                                                      changes made >>>                                                                                             Press Save to Save the confirmations. This will change the                                                                                Confirmation type for you.                  Note - a) Alternatively you can cancel the wrong confirmations because of  the wrong confirmation type and re-created a new confirmation for the operation or order.    b) You can use this for both Operation confirmation and Order confirmations. c) The system in all likely cases would throw a message when you press enter on the selection screen, saying that the order or operation or phase is already confirmed and do you want to proceed. You should press the yes/proceed button to proceed.    Did you Enter Wrong   Activity type during Confirmations    Dont worry if you have missed entering the activities for a certain confirmation created or you want to correct the data for activities, for confirmations, that you have already entered. Follow the method below to rectify the same.  

Enter the Confirmation number or the order number (you can also enter the operation number/phase if you want). The system in all likely cases would throw a message, saying that the order or operation or phase is already confirmed and do you want to proceed. You should press the yes/proceed button >>>                  Select the Operation number/phase on the Pop-Up for which you want to enter/change the activities              data, if you are confirming at the order level, you will not get this pop-up >>>                               Press Enter Button on the Pop-up Screen once you have selected >>>                                                      Enter the Yield as "Zero" Quantity or leave it blank.                                                                                                              Enter the activities data as you wish to.                                                                                                                Enter the correct Posting date for the confirmations. You may want to enter                                                      the posting date that was used for the original confirmations you made with                                                      the wrong confirmation type                                                       You can also enter a Confirmation text to record to comment on the                                                      changes made >>>                                                                                         Press Save to Save the confirmations.           Note - a) Alternatively you can cancel the wrong confirmations because of  the wrong activities and re-created a new confirmation for the operation or order.    b) You can use this for both Operation confirmation and Order confirmations. c) The system in all likely cases would throw a message when you press enter on the selection screen, saying that the order or operation or phase is already confirmed and do you want to proceed. You should press the yes/proceed button to proceed. 

 Confirmations on a future date:  Future dates can be configured in the confirmation configuration. In configuration OPK4, define confirmation parameters, When this configuration comes up, in the "Checks" Sections, the last parameter says "Date in the future." You need to check this box if you want your confirmation dates to exist in the future. It determines whether dates in the future can be used in a confirmation. If the indicator is not set, you cannot make any confirmations using dates in the future.

SAP PP/PPPI Goods Receipts from Order 

SAP PP/PPPI Goods Receipts: 

 

When you produce something against an SAP order (Production order or a process order) you would first confirm the operations or phases (or confirm the whole order) and then bring to stock quantities which are produced through all the given operations/phases.  

Confirmations in SAP does not necessarily bring goods to stock unless you have planned for Auto Goods Receipts from the final operation/phase in the order task list. 

Goods receipt in SAP, stocks the produced quantities from a production order in to storage locations. 

When the produced goods are brought to stock they are priced at the material master's current standard cost or variable price derived at the time of goods receipts as per the costing method in the material master accounting 1 view. A goods receipt from an order is a credit from an order, while a goods issue to an order is a debit on the order.  

 

 

Order Status for Goods Receipts:  

 

 

The system status or user status set on the order should allow for goods movements; to be more precise it should allow for goods receipts. The

System status TECO would allow goods receipts from an order, but the system status CLSD or closed would not allow any goods receipts from an order. 

When a Goods receipts (GR) is created for the order, the system checks whether it is a goods receipt for partial quantity or for full order quantity. If the GR is for partial quantity, the system allocates a system status - PDLV on the production order header (provided there are no delivery tolerances set). If the GR is for the full quantity of the order, the system allocates a system status - DLV (provided there are no delivery tolerances set). 

For example: 

If the order quantity is 100 and you receive 70 from the order, the status PDLV is set on the order header. If the next 30 is received from the same order, the system allocates a status DLV to the order header. 

 

 

Other Things to note   for Goods Receipts:  

 

 

Note the following points: 

 

a) The goods receipt storage location would be pulled-in/used from the order header goods receipt tab. This storage location is pulled in from the material master MRP 2 view - Issue Storage location field value. The field value represents the issue storage location for the components and GR storage location for the finished or semi-finished materials. 

 

Dangerous Situation - What happens when the item is a semi-finished item which is received in one location and issue from another location to the next production? 

 

Answer - In such a case you can also use the issue storage location field in the BOM item details or you can use the issue storage location in the production version of a material. Though priority is given the issue storage location of the material master. 

 

 

b) The Quantity that is to be received from an order, is normally the order quantity + or - the delivery tolerances noted on the order goods receipt tab. 

Once the goods receipt for the order quantity is made the system would call that as final delivery and tag this receipt with a "delivery completed indicator" and change the order status to DLV. 

If you wish to receive more from the order which has an overdelivery tolerance included, the system will not let to receive more from the order. Though there is a method to receive that extra quantity for the order corresponding to the overdelivery tolerance specified by executing the goods movement with "Suggest Zero Lines". Suggesting Zero Lines, opens up the goods receipt movement without proposing any quantities, nevertheless you can only receive till the over tolerance limit and cannot receive beyond that. 

For example if the order quantity is 100 and over delivery tolerance is 10, then on receiving 100, the system marks delivery as completed and puts on a DLV status on the order, now if you want to receive more that extra 10 units, you should execute goods receipt with "suggest zero lines" (though you cannot receive more than 10 in any case). 

On the other hand, when you receive less than the order quantity and equal to the underdelivery tolerance, the system would declare the goods receipt as 'final delivery' and change the order status to DLV. But if you want to complete receiving the order quantity you can use the "suggest zero line indicator" and receive the order quantity. 

For example, In a case when the order quantity is 100, the underdelivery tolerance is 10, the overdelivery tolerance is 10, and if you receive 90 units the system would  put on the "delivery completed indicator" and mark the order with the DLV status and wont let you receive the remaining quantities from the order (order quantity or overdelivery quantities). Now to receive that 10 units more from the same order (completing order quantity) or 20 more units from the same order (equal to overdelivery tolerance), you should use the "suggest zero line" concept.   

 

 

c) The Material number and the plant of the goods receipt is the order header material and the plant of the order.  

 

 

d) Automatic Goods receipt for an order is carried out if the final operation in the order task list is set for Auto-GR or the production scheduler profile of the

order is configured for Auto-GR. Automatic Goods receipt is carried out when you confirm the final operation. The confirmation quantity is received in stock in the case of automatic goods receipt from an order. 

 

 

e) When you receive goods in stock through a goods receipt the system would ask for a batch number for a batch managed material. If the batch number is already entered on the order header, then you are not allowed to enter one during goods receipt; in this case all the goods receipt that are made from a given order would always carry a single batch number that is defaulted on the order header. 

 

 

 

SAP Goods Receipt Batch Number: 

 

If a Batch number is not assigned to the order header, then you can receive goods in multiple batch numbers, i.e., every goods receipt can have a different batch number assigned.   

 

 

SAP Procedure to receive goods in stock: 

 

In SAP, you use the transaction code MB31 to receive goods in stock from a production order. The production order status should allow for goods receipt. 

Follow the procedure to receive goods in stock: 

 

Step 1: 

Enter the Plant of GR, the Order number (optional) and the storage location (optional), the correct Posting date and the document date (date on which you are posting the document)                     

Step 2: 

 

Then Press the "To-Order" Button on the selection screen if you have not entered the order number on the selection screen. Here you should enter the order number and optionally you can also enter the storage location.                                        Press Enter on the pop-up screen to enter in to the goods receipt main screen. 

 

Step 3: 

In the GR main screen, the system proposes the order number, the quantity, the storage location (if data already entered/exits in order header), the batch number (if the batch number already was entered at order header level). 

You can also enter the quantities in an alternate unit of measure if an alternate unit of measure is set in the material master. 

During the Goods Receipt from an order, you can also enter the Batch characteristics values if the batch classification is allowed in the foreground.                                                                                

Step 4: 

Then press the Save Button to Save the Goods receipt. Once you save the GR, a material document is created by the system.                                                                            The material document would contain an accounting document. 

 

 

 

Enter SAP Goods Receipt for multiple orders: 

 In the MB31 Transaction code, for goods receipt, when you press the "To-Order" Button to receive goods from order, the system would open up a pop-up to enter the order number/s from which you want to goods from. 

In this pop-up, you have an option to enter up to 6 orders from which you want to receive goods from, at the same time. 

This can be useful..... :) 

 

Follow the steps: 

 

Enter the Plant of GR, the Order number to be received in stock (optional) and the storage location (optional), the correct Posting date and the document date (date on which you are posting the document) 

>>> 

Press the "To-Order" Button on the selection screen if you have not entered the order number on the selection screen. Here you should enter the order numbers and also enter the storage location optionally. The System gives you an option to enter Goods receipts for 4 Orders 

  

 

Enter SAP Goods Receipt from Confirmations (AUTO GR): 

 

 

When you create an Auto-GR from an order on confirmation of the final operation in the order, the system treats the same as a regular goods receipt from an order and allocates the regular GR ststus on the order. A Material document is created on saving the confirmations. 

 

Method: Enter the transaction code that would create order confirmations or operation confirmations for an order                >>> Enter the Order number or the Confirmation number or the operation Number and press enter                                          >>> Enter the Yield Qty and enter data for other fields as required                                                                      >>> Once you enter the yield quantity, the system sets the                                                                              proportionate quantities for 101 GR from order in the goods                                                                              movement TAB of confirmations.Nevertheless you can                                                                              manuallly change these qunatities in the Goods Movement                                                                              Tab. You can even Make it ZERO.

                                                                                               >>> Press Save Button to Save.                                                                                                       A Material Document is created               

Others 

Good   Receipt Reversals/Cancellations:  

 

SAP provides a facility to reverse the wrong goods receipts that you have made. Infact all the goods movements in SAP - goods issue, goods transfer or goods receipts have a reversal feature. 

In the case of a Goods receipts from order, made using movement type 101, there is a reversal movement available called 102. You can use the transaction code MB31-102 or use MIGO-102 to create the reversals. 

Alternatively you can use the transaction code MBST (or use MIGO - Document Cancellation option) to create the reversals, using MBST not only saves your time, but it also creates a chance to know the original reference document that was reversed. 

If you use the MB1a-262 or MIGO-262, you would not know the material document or the document item that you are cancelling (due to incorrect receipts) and the system would not propose the reversal details for you. You would have to manually type in the details that you wish to reverse. 

 

Options                                                

Details                                                   

Details                                                  

Details   

Reversals using MB31- 102 or MIGO - 102                                 

Use this option when you want to create partial quantity reversal for an items received.  

The System will not propose any reversal details for you. You would have to manually type in the Material code, qty, sloc, and the batch number (if any) that you wish to reverse from the order. 

The system does not have any chance to record the original material document details as nothing is provided to the system during the reversals.

Reversals using MBST You can use this option if you want to

There is not much of effort required as you

Since you are cancelling an

reverse/cancel the whole document that was posted as goods receipts

would be cancelling an existing document, that has its own details. 

existing document, the system records the original document as reference document in SAP tables such as MIGO. This is a clear advantage over the goods receipt reversals process.

 

Importance of Posting Date - 

You should enter the right posting date during cancellation/reversals or during the actual posting as the movement or production activities is booked on the date you select as posting date. 

For example: If you have made a issue posting on 25th Dec 2010, then you should reverse using the same day, therefore helping the system to show the correct goods issue made on 25th Dec 2010. But if you issue on 25th Dec 2010 and reverse the document on 26th Dec 2010, it could be confusing for you to report the goods issues (it would show more issues on 25th Dec 2010 and reduce the issues made on 26th Dec 2010). So be Careful :) 

 

 

Receiving Overdelivery or underdelivery from an Order: 

 

The Quantity that is to be received from an order, is normally the order quantity + or - the delivery tolerances noted on the order goods receipt tab. 

Once the goods receipt for the order quantity is made the system would call that as final delivery and tag this receipt with a "delivery completed indicator" and change the order status to DLV. 

 

 

Receiving More than the order quantity corresponding to Over-delivery Tolerance: 

 

 

If you wish to receive more from the order which has an overdelivery tolerance included, the system will not let to receive more from the order. Though there is a method to receive that extra quantity for the order corresponding to the overdelivery tolerance specified by executing the goods movement with "Suggest Zero Lines". Suggesting Zero Lines, opens up the goods receipt movement without proposing any quantities, nevertheless you can only receive till the over tolerance limit and cannot receive beyond that. 

For example if the order quantity is 100 and over delivery tolerance is 10, then on receiving 100, the system marks delivery as completed and puts on a DLV status on the order, now if you want to receive more that extra 10 units, you should execute goods receipt with "suggest zero lines" (though you cannot receive more than 10 in any case). 

 

 

Receiving Less than the order quantity corresponding to Under-delivery Tolerance: 

 

On the other hand, when you receive less than the order quantity and equal to the underdelivery tolerance, the system would declare the goods receipt as 'final delivery' and change the order status to DLV. But if you want to complete receiving the order quantity you can use the "suggest zero line indicator" and receive the order quantity. 

For example, In a case when the order quantity is 100, the underdelivery tolerance is 10, the overdelivery tolerance is 10, and if you receive 90 units the system would  put on the "delivery completed indicator" and mark the order with the DLV status and wont let you receive the remaining quantities from the order (order quantity or overdelivery quantities). Now to receive that 10 units more from the same order (completing order quantity) or 20 more units from the same order (equal to overdelivery tolerance), you should use the "suggest zero line" concept.