Configuration MRP -Consumption based

Forecast Based Planning MRP Type VV - Consumption Based Planning Another form of Consumption based planning is Forecast Based Planning, in which the historical consumption data is used to extrapolate the future consumption patterns, which are directly used as requirement figures in the next planning run. The forecast is suggested by the system periodically, i.e., on a weekly, daily, monthly basis or as per accounting periods. You can specify the number of historical periods and the future forecast horizon (periods) for each material. In the planning run, the forecasted requirements are made to be available at the start of the period specified (week, month or day etc) and then you have an option to further divide/split these requirements to a finer detailed period pattern through the use of splitting indicator in MRP 3 view. The splitting Indicator can be configured in the following path Logistics > Production > MRP > Forecast > Define Splitting of forecast requirements for MRP. The forecasted requirements should be covered by the plant stock + scheduled firmed goods receipts (from purchase or production). Net requirement calculations do not consider the demand from sales order or from planned independent requirements or from material reservations. Only demands from the forecasted figures are considered. If the available stocks fall below the forecasted requirements/demand, for the period, procurement proposals are raised. Safety stock can be considered in the net requirement calculations

Available stock that is left over after the planning run calculations = plant stock safety stock + firmed receipts from purchase or production Forecasted requirements/demand. Another way of interpreting the same is that, the receipts should cover the demands from forecasts. If the receipts cannot cover the demands from forecast, then the system raises procurement proposals.

http://www.erptips.com/blog/implementing-consumption-based-planningconfiguring-plant-parameters-mrp-groups-and-special-procurement-types other http://hoopsdoc.hillyard.com/glossary/mrp/ Maintaining Plant Parameters

When turning a new plant on for Consumption Based Planning (or MRP), you must maintain the plant parameters for Consumption Based Planning by following these steps:

1. In the IMG, follow the path: Materials Management Consumption Based Planning Plant Parameters Carry Out Overall Maintenance of Plant Parameters Or execute transaction OMI8 2. If you want to copy the settings for a particular plant, select Copy on the screen shown in Figure 1. If you want to create new settings from scratch, select Create.

Figure 1: Maintaining Plant Parameters for MRP

3. Enter the plant identifier (Figure 2) and click Create.

Figure 2: Selecting Plant for Which to Maintain Plant Parameters for MRP

4. The screen in Figure 3 contains all of the parameters that can be maintained.

Figure 3: Plant Parameters Maintenance Screen

When you create a new plant to maintain, many of the values will say To maint. Those require maintenance before you can carry out MRP for that plant.

5. Most of the configuration that must be maintained here is quite easy. This article covers the more complicated configuration. 6. To configure floats, click on and complete the screen shown in Figure 4. Floats describe how many days before and after production would be scheduled to add as a buffer; the days are used in the calculation of when the system will suggest starting production.

Figure 4: New Entries for Floats

The following is a list of fields (for the screen in Figure 4) and a description of each:

Plnt Enter the plant number. SMKey Enter the three-digit number for the scheduling margin key. Op. Pd The opening period is the number of workdays your MRP controller takes to convert the planned order to a purchasing requisition. FlBefProd. The float before production is the number of days Production takes to initiate a production order. FlAftProd. Float after production is a safety margin in number of workdays to allow time for possible production backups.

7. To configure the fields for Default Values for Purchasing/MRP, click on , and complete the screen shown in Figure 5. External Procurement settings will be used when the materials is procured from a vendor.

Figure 5: Configure External Procurement Plant Parameters

The following is a list of fields and descriptions for populating the screen shown in Figure 5.

Purchasing proc.time Purchasing processing time indicates the number of days Purchasing takes to convert a purchase requisition to a purchase order. Sub. Purchasing Grp If the system cannot determine a purchasing group for a material (if it is not maintained in the material master record), you can maintain a default substitute purchasing group here, which is entered into the procurement proposal.

Scheduling info record/agreem. If you would like the system to use the planned delivery time maintained in an Info Record instead of the Material Master, you can select this checkbox. Schedule lines This indicator determines if the system will create schedule lines during the planning run. Account assignment unknown If the material is not a valuated material, the system will default an account assignment based on this setting.

8. To configure Error Handling, click on , and complete the screen in Figure 6.

Figure 6: Configuration for Error Handling in the Planning Run

The following is a list of fields and descriptions for populating the screen for Configuration for Error Handling in the Planning Run.

Max.pur.ord.pr. The maximum purchase order proposals value represents the maximum number of purchase proposals to be generated in the planning run. Leave it blank to allow an unlimited number of proposals. SMRPG Substitute MRP Controller or Group: If the system cannot determine an MRP controller or group for a material (in the case it is not maintained in the material master record), you can maintain a default MRP controller or group here to be entered into the procurement proposal.

MRP Groups
You can assign a group of materials to an MRP Group to enable specific planning run parameters that are different than the ones you set at the plant level. You still execute the planning run at the plant level, but the system will see that a material is assigned to an MRP group on the material master record, and use the settings you configured in customizing for the MRP group. To configure the MRP Group, perform these steps: 1. In the IMG, follow the path: Materials Management Consumption Based Planning MRP Groups Carry Out Overall Maintenance of MRP Groups Or execute transaction OPPZ 2. Enter the plant number as shown in Figure 7, and click Create:

Figure 7: MRP Group Maintenance Screen

3. Enter a number for your MRP group (and a description), and click (or Copy from an existing MRP group). See Figure 8. It is possible to copy settings from another MRP group or create a new MRP group from scratch.

Figure 8: MRP Group Creation Screen

4. Although all of the areas in the following screen can be maintained, this article covers only the Creation indicator maintenance, which allows you to set up whether a purchase requisition or planned order is created during the planning run. Typically, the other areas can be left as the system default. Figure 9 displays the areas of the MRP Group to be configured. You can configure which document type is used when creating an external purchase requisition during the planning run, the planning intervals used when rescheduling and running the MRP run, and how much safety stock to use in the calculation.

Figure 9: MRP Group Maintenance Screen

5. Click on , and complete the fields of the screen shown in Figure 10.

Figure 10: MRP Group Creation Indicator Configuration

The following is a list of fields and descriptions for populating the screen in Figure 10.

Create pur.req. The create purchase requisition indicator determines whether a purchase requisition or planned order should be created.

Create MRP list Creation indicator for MRP list determines if an MRP list will be created for a material. Schedule lines Creation indicator for schedule lines determines if schedule lines will be created for a material. Special Procurement Types
Special procurement types are useful for materials you do not directly procure from a vendor, or your production line does not directly produce. In the standard SAP system, special procurement types must be extended to your plants if you use them. You can also create custom special procurement types with your own settings. Do not modify the standard SAP special procurement types created for Plant 0001. Instead, copy them to your own plant or create a unique one for your use. To create a Special Procurement Type, follow these steps: 1. From the IMG, follow the menu path: Materials Management Consumption Based Planning Master Data Define Special Procurement Types 2. Select one of the special procurement types to copy and click the icon: Figure 11 illustrates the selection screen in this transaction, from which you can select an existing entry, and copy from it to a

new entry. It shows the creation of the special procurement types to the plant. I recommend you copy all the special procurements that fit your business needs from plant 0001 to your plant(s).

Figure 11: Special Procurement Types Overview Configuration Screen

3. Change the Plnt field (Figure 12) to your plant, and complete the other fields as needed.

Figure 12: Special Procurement Types Configuration Settings Screen

The following is a list of fields and descriptions for Special Procurement Types configuration.

SP type Enter a two digit number in the special procurement type you can leave the default from the copied entry. Procurement type Procurement type is either in-house (E) or external (F). Special procurement Select the special procurement type: E In-house production P Prod. other plant Init.value: external K Consignment L Subcontracting U Stock transfer

Plant If you have selected special procurement type P, you must select the plant where the material is to be procured. Phantom item Phantom assemblies are used for engineering purposes as a place holder and are part of the BOM. Direct production This indicates if a material is produced and consumed within an assembly. Only use this indicator with special procurement types E (In-house production) or P (production at other plant). The material is never placed into stock.

Direct procurement This material is also never placed into stock; but it is procured with other materials and then becomes part of those materials. For example, if your vendor requires you to procure both CDs and their jewel cases, but you only stock the CDs.

Withdr.altern.plant The withdrawal from alternative plant indicator states that a material can be sourced from another plant to fulfill a requirement. It can be combined with other indicators.

Conclusion
In this article, we have covered an overview of SAPs Consumption Based Planning and how to configure the following for Consumption Based Planning: Maintaining Plant Parameters, MRP Groups, and Special Procurement Types. Stay tuned for a future blog entry which will cover the configuration for MRP Types and MRP Lot-sizing.

Release Procedure for Purchase Orders

Appended below are activity required to be done step by step for configuring the release procedure for purchase orders (POs) and its link to workflow.
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Requirements
In the case of a release procedure linked to workflow, you must have previously created the user names, positions, jobs, etc. that you here assign to the release code in the organizational plan and must have linked them to the relevant standard tasks in task-specific Customizing (Basis -> Business Management -> Business Workflow -> Perform Task-Specific Customizing). You must assign the authorization M_EINK_FRG to the persons who are to be involved in the release procedure (Authorization Management -> Create Authorization Profiles and Assign to Users).
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Activities
Here you define the following: Edit Characteristic Edit Class Release group Release codes Release indicator Release strategy Workflow
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Edit Characteristic
In this step, you create characteristics for a release procedure for purchase orders (POs). Classification characteristics are the criteria for a release condition. If the criteria of a release condition are satisfied, the associated release strategy is assigned to the purchasing document (e.g. purchase order or RFQ).
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Edit Class
In this step, you create classes for a release procedure for purchase orders (POs). You use a class to group together characteristics that are to constitute a release condition for a release strategy. In the step "Define Release Procedure for Purchase Orders" you assign this class to the release strategy.
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Release group
Create a release group for your release procedure and assign it to a class. In the process, you assign release conditions to the release procedure.
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Release codes
Here you create the release codes you need for your release strategy and assign the codes to your release group. If a release code is to be used in workflow, indicate this accordingly in the Workflow field

The Workflow indicator is also used to control role resolution: "1 - Role Resolution with Group, Code and Plant (T16FW)" Here you use a role resolution that is supplied in the standard system. To do so, you must assign the release point in the section Workflow (see below). "9 - Role Resolution via User Exit" Here you use the customer exit M06E0005 to define a role resolution of your own.
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Release indicators
A release indicator shows the release status of a PO. Via the following settings, you can define the release indicators you need for your release procedure The Released indicator is used to specify whether messages (PO documents in output format) may be transmitted for a purchase order with this indicator. The Changeability indicator shows the effect of changes to the PO (a change to a PO may require a new release strategy to be determined, for instance). By means of the Value change indicator, you can specify that the release strategy is to be re-started if a PO is changed and the value of a PO item thereby increases by a certain percentage (e.g. 10%). Set the Changeability indicator to "4 - Changeable, new release in case of new strategy or value change" or "6 - Changeable, new release in case of new strategy or value change/outputted" and enter a percentage in the Value change field.
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Attention
The following release indicators are necessary for every release procedure: Release indicator for initial status If the PO is subject to a release strategy, it must normally be released before it can be transmitted to the vendor. Therefore, when a PO is created, it is assigned a release indicator that blocks it from being outputted in message form. The Released indicator must not be selected for this indicator. Release indicator for released status This indicator is assigned to the PO when it is released. The Released indicator must be selected for this indicator.
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Release strategies
Create a release strategy for your release group and assign your release codes accordingly. Release prerequisites With the release prerequisites, you specify the order in which the individual release points (individuals or departments) represented by the release codes may release the document. Release statuses Here you specify the status a PO has after certain release points have effected release. Specify which release indicator/status a PO is to have after having been released via a certain release code. Classification In classification, you maintain the values assigned to the characteristics. Via the characteristics and their values, you specify the POs to which your release strategy is assigned. Maintain values (individual values or intervals) for your characteristics. Release simulation The release simulation function enables you to check which status a PO will achieve with your release strategy if release is effected by a certain release point. Choose "Simulate release" and release the document with the desired release code by double-clicking. The system shows you which status the PO now has as a result of this release. Workflow Assign a processor ID to your workflow-relevant release codes. The processor (member of staff responsible for processing the document) will then receive a work item when he or she is required to effect release.