Sap mrp type configuration

Welcome to our tutorial on SAP stock types. Within the SAP MM modu leinventory management is a sub-module which involves the handling of stock received from the vendor and the subsequent movement of stock to the correct storage area within the company. In this tutorial, as part of our free SAP MM trainingwe will break down all of the different types of stock that are managed within the system and give you an idea on how each is processed.

SAP MM - MRP - Consumption Based Planning

Stock might also be referred to as materials or goods throughout this article. For example, raw material is managed both by value and quantity. The below image shows the updating method of raw material as maintained via customizing transaction code OMS2 :. Meanwhile, non-valuated material is updated by quantity only.

For quantity managed stock, value is registered against an account assignment, like a cost center. Below is the configuration for updating method of non-valuated material as maintained via transaction code OMS2 : Non-Valuated Material Quantity Management Configured It is also important to understand that the movement of stocks are handled using movement types specific to the type of stocks and the goods movement being performed.

We will mention the relevant movement types and management methods as we discuss SAP stock types throughout this article. There are three types of valuated stock, amongst which materials can be moved using particular movement types. We define each sub-type of valuated stock below. Unrestricted Stock: Unrestricted stock refers to stock which can be used readily and which is always available for use on premises.

Quality Inspection Stock: Quality inspection stock is delivered material that is retained for quality inspection. It is not regarded as unrestricted and cannot be readily used. Blocked Stock: If a material is rejected due to bad quality then it is moved to blocked stock in SAP.

This can also happen during production when some irregularities are found with the stock and thus blocked for further use. First, we will have a look at the stock overview for the material via transaction code MMBE. We process the goods movement via transaction code MIGOusing movement type as illustrated below: Process Valuated Goods Movement Now, note how the stock levels have changed in the stock overview. Execute transaction code MMBE again to see that 20 units have been deducted from unrestricted use and are now categorized as quality inspection stock, as shown below: Valuated Stock Overview Non-Valuated Stock With the procurement of non-valuated stocks, no accounting entry takes place.

These SAP stock types are not yet owned by the company even though they may be on the premises. For example, if a vendor sends goods that are visibly damaged at the time of receiving, they will be returned to the vendor and should not be processed into inventory. In this case the goods are received into blocked stock with no accounting entry. This is an example of a non-valuated stock type, as the ownership is still not with the company. We can see units of the material are on order, as highlighted below:.

Suppose the material is visibly damaged upon arrival. To bring the received material to blocked stock, a goods movement using movement type is used. Process a goods movement of pieces of the material to receive the goods into blocked stock as shown below: Process Non-Valuated Goods Movement Once the vendor has rectified the issue and the material is ready for use, move the material into company stock using valuated stock movement type Special Stock SAP special stock types differ in their procurement method compared to standard the procure to pay process.

We will enumerate the different special stock types below: Subcontracting: Subcontracting is a special procurement method wherein the company decides to outsource its work to a vendor.The requirements type is very important in make-to-order production.

It refers to a requirements class, which contains settings for functions relevant to requirements and other functions in Logistics, as well as for the costing and other functions in Accounting. Some settings in the requirements class are overridden by the schedule line. For more information, see Customizing for schedule line categories. The account assignment category defined in the requirements class contains two indicators that are important for Cost Object Controlling: the special stock indicator and the consumption indicator.

The special stock indicator defines whether processing of sales order or project stock is required for the sales order item. The following settings are relevant for make-to-order production:. You can use the consumption indicator to determine whether a CO object with costs and revenues is to be created for the sales order item, or whether the account assignment is to be made to a WBS element.

Use the Valuation setting in the requirements class to determine whether the requirements class is to be used for recording valuated defined special stock. If you enter the setting so that the special stock is to be recorded as valuated, then you can open a special valuation segment for this "M": separate valuation with reference to the SD document or project or the valuation segment from the make-to-stock inventory can be used "A": Valuation with no reference to the SD document.

If you base this on materials, for example, you specify that a material is always recorded in the valuated sales order stock. However, there can be business processes that require a different type of processing. Example One: When a sales order is created, a sales order costing is to be made for a material. You can make the corresponding setting in the requirements class in the costing field. However, for the same material, no sales order costing is to be automatically created when returns are created.

You would thus need two different requirements classes.

sap mrp type configuration

This, in turn, means that the system needs to find different requirements types when SD documents returns or sales orders are created. This means that production is not related to a sales order. Normally a CO object is not created for this material, so a requirements class is used that does not contain an account assignment category.

However, if the stock item is a spare part recorded in a sales order that otherwise only has make-to-order production, then it makes sense to create a CO object for this item, on which costs and revenues can be recorded. In Cost Object Controlling, it is then possible to analyze the costs and revenues of the whole sales order, including, for example, surcharge calculation. This needs a requirements class whose special stock indicator is not filled, and the consumption indicator is set to "E".

This is account assignment category "B" in the standard system. For each item category and the MRP type from the material master optionalyou decide whether the system uses the material master determination based on the material to determine the requirements type, or whether it uses the item category and MRP type determination based on the business process. If the requirements type is to be determined based on the material, enter a zero in the Source field, or leave it blank.

1 The Significance of the Requirements Type

If you want to base the determination on the business process, enter a "1" or "2" in the Source field. If you enter a "1" or "2" in the Source field transaction OVZIthen enter the requirements type that belongs to the item category and MRP type optional. To find the item category, see section 2. If the Source field is empty or contains a zero transaction OVZIthen the system checks, when you create the sales order, whether a strategy group has been entered in the MRP 3 view in the material master.

If there is no strategy group in the material master, then the system checks whether a MRP group has been entered in MRP 1 view in the material master.Not what you're looking for? Search community questions. This question has been deleted. This question has been undeleted. Former Member. Posted on Nov 19, at AM 3.

How many MRP types are there? Add comment. Related questions. Sort by: Votes Newest Oldest. Best Answer. This answer has been deleted. This answer has been undeleted. R Brahmankar. Posted on Nov 19, at AM. Hope clear to you. Regards, R. Alert Moderator. You already have an active moderator alert for this content. If necessary change the settings in the standard SAP syste. Add new MRP types to suit your requirements. Nov 19, at AM. Hi, MRP type means, Key that determines whether and how the material is planned.

You have the following options: Manual reorder point planning Automatic reorder point planning Forecast-based planning Material requirements planning with forecasts for unplanned consumption Master production scheduling MPS Regards, Imran Shek.How and what are the configuration and the setting has to be done for this?

Suggestion: If you want material to be considered for production planning, then you need to configure for MRP type, controller, procurement type should be 'F', availability check, BOM explosion parameters and production version if it is involved repetitive manufacturing.

It depend on you, how business create a requirement from SAP. You can select re-order point planning so that requirement will automatically be created.

Before configuring any material types for your case ERSA material typeyou must know following: How the material is going to be treated? Is it to be managed as stock or non-stock items? If non stock, what MRP type should be used? Sometimes based on scenario spares treated as consumable item where MRP type play a vital role. All rights reserved. All product names are trademarks of their respective companies. The site www. Every effort is made to ensure the content integrity. Information used on this site is at your own risk.

The content on this site may not be reproduced or redistributed without the express written permission of www.The main function of MRP is to guarantee material availability on time. MRP is required to procure or produce the required quantities on time for in- house purpose or for fulfilling customer demand.

The main objective is to plan the supply based on requirements and considering the current stock in hand and meets the shortages. Sales and distribution give concrete customer requirements from the market.

sap mrp type configuration

In Demand Management, sales are planned in advance via a sales forecast. In order to cover these requirements, MRP does net requirement calculation and plans procurement quantities and dates on which the material needs to be procured or produced.

If a material is produced in-house, the system explodes the BOM and calculates the dependent requirements, that is, the quantity of components required to produce the finished product.

If a material shortage exists, planned orders are created at every BOM level to fulfill the requirements and purchase requisitions are generated for externally procured raw materials.

sap mrp type configuration

You can also create planned orders for externally procured materials which can be converted to purchase requisition. MRP does lead time scheduling and calculates planned order dates based on routing times. Basically, it does backward scheduling starting from requirement date minus GR processing times, in-house production time, float time before production and calculates the duration of planned orders. Production orders or Purchase orders are created after conversion of planned orders and purchase requisition respectively.

Master Production Schedule MPS It is used specifically for critical materials usually high valued products where you do not want changes in your production plan within planning time fence in next MPS run, and production plan gets firmed automatically as soon as it comes within planning time fence unlike MRP run.

Basically, it ensures the availability of the critical resources, which should not hamper the production by maintaining the stock. Planning time fence number of days starting from current date is useful in case of MPS scenario where one can save the procurement proposals planned orders from undergoing any change since the last MRP run.

No automatic changes happen to the procurement proposals once they enter in the planning time fence PTF is maintained in material master. So, all planned orders in planning time fence get automatically firmed by the system. Processing Key Net change NETCH : In this run, the system considers those materials in the planning run from their last MRP run which have undergone some changes pertaining to receipts and issues or any stock changes.

Net Change in Planning Horizon NETPL : In this run, the system considers those materials in the planning run from their last MRP run which have undergone some changes pertaining to receipts and issues or any stock changes.

It considers the requirements in a pre-defined planning horizon, unlike NETCH key which considers the total futuristic requirements. This plan is not so widely used. It takes a long time to obtain the final result. Planning Mode Adapt planning data: It only processes the changed data. Delete and recreate planning data: It completely deletes the planning data all receipts and creates again. Scheduling Basic Scheduling: MRP calculates only basic dates for the orders and in house production time for the material master is used.

Lead Time Scheduling: The production dates are determined by the lead time scheduling for planned orders. The routings are read to schedule and calculate the capacity requirements on work centers. Enter your manufacturing Plant for which you want to take MRP run.

Which means for externally procured materials, MRP will generate purchase requisitions instead of planned orders. Enter "3" for schedule lines which means MRP will generate schedule lines for raw materials having scheduling agreement. Enter Planning mode "3" as we will delete and recreate all planning data for all materials. Enter Scheduling indicator "2" which means MRP will do lead time scheduling and consider routing times to calculate planned order dates.

After filling in all the fields, click to go to the next screen. Press enter to ignore this message.You use the MRP type to assign the procedure to be used to plan a material and to control which MRP parameters can be maintained for the material in the material master record. You enter the MRP type in the material master record.

With this firming type, no actual firming takes place. The materials only receive the indicator for MPS so that they can be planned using the special planning run for master production scheduling. Firming type 1: An order proposal that lies within the planning time fence is firmed automatically as soon as its date lies at least one day before the finish date of the planning time fence.

The date of new order proposals that are actually created in the planning time fence are rescheduled out to the end of the planning time fence. Therefore, these new order proposals are not firmed. Firming type 2: An order proposal that lies within the planning time fence is automatically firmed as soon as its date lies at least one day before the end of the planning time fence.

The system does not create any new order proposals within the planning time fence. That is, the shortage situation is not adjusted within the planning time fence. Firming type 3: Order proposals that lie within the planning time fence are not firmed automatically. The order proposals required to cover the requirements are moved to the end of the planning time fence. Firming type 4: Within the planning time fence, the system creates no order proposals automatically.

Using the planning time fence, you can exclude a certain period from the automatic planning run. In this period, only manual changes are made - depending on the firming type.

The system will not create any order proposals within this period. For more information on the planning time fence, please refer to the IMG chapter entitled, "Master production scheduling". If you want to adjust the master plan to suit a changed requirements situation, you can do this by maintaining the indicator for deleting out-of-date planned orders. This indicator instructs the system to delete firmed order proposals that lie before the roll forward period during the planning run and to create new, correctly scheduled planned orders or depending on the firming type they will be moved to the end of the planning time fence.

You define the roll forward period in the workstep entitled, "Define planning time fence".This is a key which is used to regulate the material requirements planning. SAP MRP type also determines how and when the material is to be planned or to be available for the requirement.

When a customizing takes place, the name or parameter would begin with Z. But still this would be based on the business requirement and it could be configured to suit as per the business. Some of the procedures are:. Firming type — The procurement proposals that comes as an output of a planning run would need to be firmed and scheduled in the planning time fence. This firming type determines the firming of procurement proposals within the stipulated planning time fence.

1 The Significance of the Requirements Type

The below are the firming types: 0 — Planning results not firmed 1 — Automatic firming and order proposals rescheduled out 2 — Automatic firming without order proposal 3 — Manual firming and order proposals rescheduled out 4 — Manual firming without order proposal The firming date could also be entered manually during the planning run.

As a result of this the planning time fence would be extended to the manually entered firming date. Roll forward — Two settings pertaining to planned orders could be maintained in this field.

One is to delete firm planned orders and the other is not to delete firm planned orders. This indicator helps to delete or not delete the planned order during planning run. New planned order could also be generated based on the materials requirements at the time of planning run. Forecast indicator — This indicator is used to determine whether forecast results would need to be included in materials requirement planning or not.

The options that are available for this field are:. Consumption indicator of forecast — This indicator is used to determine which consumption values are to be considered for forecast. The consumption values are total consumption and unplanned consumption. Either of these two consumption values are maintained in the consumption indicator forecast. Advertisement MRP indicator of forecast — During planning run or net requirements calculation it should be predetermined to include forecast value for net requirements calculation.

If forecast values are to be included for net requirements calculation, then it should be determined unplanned requirement or total requirement. Reduce forecast — With this indicator the forecast requirement could be controlled for reduction. Reduction of forecast requirement by consumption, reduction of forecast requirement in current month, average reduction of the forecast requirements. So, any of these three values could be selected and maintained in reduce forecast field.


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