Concept on Consumption and Reduction

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SAP ERP Manufacturing - ProductionPlanning (SAP PP): Concept on Consumptionand Reduction

Posted by Krishnendu Das Jan 1, 2014Consumption and reduction happens in different level of a proposal. Below example will show the concept ofconsumption and reduction.

Example:1

Material : R-F115Strategy : 10PIR=100

Sales Order (VA01)=50

Two requirements from IndReq & Order for 100 & 50 pcs will appear on the stock requirement list.

Now we ran MRP.

SAP ERP Manufacturing - Production Planning (SAP PP): Concept on Consumption and Reduction


MRP RUN : MD02

After MRP Run Planned Order was created only for the PIR meaning NO CONSUMPTION. This is the settingof strategy 10 that Sales Order will not be

considered. As well Sales order (Customer requirement) will not consume the planned independentrequirement.

The Planned order should be converted to Production Order -> Release Material -> Confirm all Operation, Finished Goods receipt (MIGO).. i.e Replenish the the

stock level to 100.

Thereafter Issue of Material or Goods Issue to Sales Order which will REDUCE the PIR or STOCK LEVEL

Example:2

Material : R-F116Strategy : 40PIR=100



Lets consider Sales Order (VA01)=50

Sales Order Immediately CONSUME 50 PCS from the PIR

MRP RUN : MD02



After MRP Run 2 Planned Orders were created separately. Again the reduction will happen once the goods willbe issued to Sales order.

Another important thing to notice

For almost same material (both are FIN product)

PIR with Strategy 10 = MRP Element Data is LSFPIR with Strategy 40= MRP Element Data is VSF493 Views

Aditya S in response to Krishnendu Das on page 4Jan 2, 2014 9:27 AMHi Krishnendu,

Thanks for acknowedging and making the correction in the document. Thanks again.

Krishnendu Das in response to Aditya S on page 4Jan 2, 2014 8:51 AMHi Aditya,

You are correct. SO will be of 50 nos.

Regards,Krishnendu.



Aditya SJan 2, 2014 8:43 AMHello Krishnendu,Thanks for sharing this. Looks like there is some correction to be done. In the Example 2, you have specifiedthere is PIR for 100 Pcs, i can see only Independent Requirement of 50 Pc and Sales Order is for 100 Pcs,but in MD04 we are seeing only 50 Pcs for the Sales Order. Can you please go through this document and docorrections if any is there.Please correct me if i am wrong. Thanks.

Kalyana ChakravarthyJan 2, 2014 8:05 AMHi Krishnendu,

Very useful document. Thanks for sharing.

RegardsKalyan

Concept on Consumption and Reduction

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