Material Requirements Planning Configuration Note


The settings for consumption based planning parameters will determine the method used for carrying out material planning. The data and parameters maintained under this section will be used mainly during the Material Requirements Planning (MRP) execution, which will determine the actions to be taken for materials planning and replenishment.

Configuration Documentation of Production Planning
General

The plant structure settings are included the following activities:

Customizing path: Materials Management → Consumption based planning → Plant parameters
Transaction code: OMI8

1. MRP areas

Customizing path: Materials Management → Consumption based planning → Master Data → MRP Areas → Define MRP areas
Transaction code: SPRO

2. Storage Location MRP

The following table just shows the Plants and Storage Locations where Storage location stock is excluded from MRP.
MRP Indicator Key: “1”: Storage location stock excluded from MRP

Customizing path: Materials Management → Consumption based planning → Planning → Define Storage Location MRP per Plant
Transaction Code: SPRO
Table: T001L

3. Special Procurement

The special procurement type provides more information on the procurement type of each material. It determines whether a specific procurement type is allowed for a material. The special procurement type normally depends on the material type.

Customizing path: Materials Management → Consumption based planning → Master Data → Define special Procurement Types
Transaction Code: SPRO
Table: T460A

4. Floats

Based on the scheduling margin keys, certain number of working days can be allocated for floats before and after production. The opening period and the release period for production planning can also be maintained in this section.

Customizing path: Materials Management → Consumption based planning → Planning Define Floats
Transaction Code: SPRO
Table T436A

5. Convert planned order to purchase requisition

In this section the maximum number of planned orders allowed to be converted to purchase requisitions is defined. The current settings allow a maximum of 500 planned orders to be converted to purchase requisitions in one single planning run.

Customizing path: Materials Management → Consumption based planning → Procurement Proposal → Define Conversion of Planned Orders into Purchase Requisitions
Transaction Code: OMDV

6. Grouping period

The grouping periods indicate the possible methods for period totals in a planning run to be grouped for evaluations.

Customizing path: Materials Management → Consumption based planning → Evaluation → Period totals → Define Period Display for Period Totals

7. Rescheduling

The rescheduling horizon are the planning areas, start from the planning date that the system will check whether firmed receipt elements should be rescheduled in or out.

Customizing path: Materials Management → Consumption based planning → Planning → MRP Calculation → Define Rescheduling Horizon
Transaction Code: OMDW

8. Planning horizon

The planning horizon is part of the planning area where a planning file entry is made for the net change planning.

Customizing path: Materials Management → Consumption based planning → Planning → MRP Calculation → Define Planning Horizon
Transaction Code: OMDX

9. Availability check

Defines whether stock in transfer and blocked stock should be included in the total available stock during planning run.

Customizing path: Materials Management → Consumption based planning → Planning → MRP Calculation → Stocks → Define Stock In Transfer and Blocked Stock Availability
Transaction Code: SPRO

10. Error handling

Error handling is set for the following plant while error occurred during the planning run.

Customizing path: Materials Management → Consumption based planning → Planning → MRP Calculation → Define Error Processing
Transaction Code: OMDY

11. Purchase requisition processing time

Customizing Path: Materials Management → Purchasing → Purchase Requisition → Processing Time
Transaction Code: SPRO

12. Item number

To determine which item number is given in the planning run for purchase requisitions and stock transfer reservation. The planning run creates purchase requisition or stock transfer reservation per lot that is given the item number recorded here.

Customizing Path: Materials Management → Consumption based Planning → Planning → Procurement Proposals → Define Line Item Numbers
Transaction Code: SPRO

Standard MRP

1. MRP type

MRP type is used to control which procedure is to be used to plan a material and which MRP parameters can be entered when maintaining a material master record.

Customizing path: Material Management → Consumption based planning → Master data → Check MRP type
Transaction code: SPRO

2. Lot-sizing procedure

Lot-sizing procedure determines how the system calculates the reorder quantity in the planning run.

Customizing path: Materials management → Consumption based planning → Planning → Lot sizing calculation → Define lot sizing procedure
Transaction code: OMI4

Reorder point planning

1. MRP type

MRP type is used to control which procedure is to be used to plan a material and which MRP parameters can be entered when maintaining a material master record.

The following MRP type is used for reorder point planning. Manual reorder (e.g. VB) means planner has to enter the reorder quantity based on his/her experience, however the automatic reorder (e.g. VM), system will determine the suggest quantity based on the past consumption history.

    VB – Manual reorder point planning
    VM – Automatic reorder point planning
    V1 – Manual reord.point w. ext.reqs
    V2 – Autom. Reord.point w. ext.reqs
    VV – Forecast-based planning

Customizing path: Materials Management → Consumption based planning → Master data → Check MRP type
Transaction code: SPRO

2. Lot-sizing procedure

Lot-sizing procedure determines how the system calculates the reorder quantity in the planning run.

The following lot sizing procedure will be used for reorder point planning.

Customizing path: Material management → Consumption based planning → Planning → Lot sizing calculation → Define lot sizing procedure
Transaction code: OMI4

    FX – Fixed order quantity
    MB – Monthly lot size
    TB – Daily lot size
    WB – Weekly lot size
    HB – Replenish to maximum stock level

Accrual and Deferral Entries in SAP

What is the purpose of Accruals/Deferrals entries in SAP? This guide will show you the example of accruals and deferrals entries in SAP system.

Accrual and Deferral entries will be used for monthly provisions. This process is part of month-end closing activities where we need to keep provision for certain expenses which are supposed to be accounted in a particular month and not accounted for. However, accrual and deferral documents will not be used in year-end closing activities.

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General Ledger Account Clearing Process

This document refers to the process of general ledger account clearing by using both automatic clearing program as well as manual clearing.

Common Business Requirement

Certain GL accounts such as withholding tax, bank sub accounts, GR/IR accounts will always have an offsetting posting for a business transaction. Each line item will have its corresponding contra line item which would have already been posted or will be posted subsequently. E.g., when a cheque is issued, a credit posting is done to the bank outgoing payment sub account and when the bank statement is received, a debit posting is done to the same account. These line items need to be identified and cleared periodically. The clearing of accounts will ease the process of reconciliation of the balance sheet accounts such as accrual accounts and suspense accounts.
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Journal Entry Process

This guide refers to the process of making adjustments via journal entries in the SAP General Ledger Accounting (FI-GL) module.

Common Business Requirement

Journal entry processing is used to maintain all the entries made directly to the GL module. Therefore, all the transactions which are not relevant to Accounts Receivable (AR), Accounts Payable (AP) and Assets Management (AM) are to be processed as journal entries in the GL module. There are various events (usually month-end activities) that will trigger the need of journal entries posting.
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