What Is SAP ERP? Production Industries: Key Features

SAP PP Professional Consultant Roadmap

SAP Production Planning

Extensive expertise in: Tracking SAP material shortages, inventory quality gates, LTP availability, capacity leveling, and financial settlement.

Shortage Pre-Alert

Missing Parts Track

Incoming Flow

RM Availability

Quality Status

Material QC Gate

CO-PC Link

Settlement Ready

Advanced Logistics Flow

Incoming (MM)

Incoming RM Track

Goods Receipt (101)

Initial RM entry from Vendor.

Material enters plant via Purchase Order; triggers inventory update in MIGO.

Incoming Inspection

QM Lot 01 Trigger.

Stock is placed in Quality Inspection automatically via MM-QM integration link.

Quality (QM)

Quality of Material

In-Process QC

QM Lot 03 for operations.

Triggered during Production Order execution to ensure batch consistency and process safety.

Usage Decision

Unrestricted release QA11.

Acceptance of lot moves stock from Quality to Unrestricted Use for PP consumption.

Outgoing (SD)

Outgoing FG Flow

Goods Receipt (101)

Production entry to Stock.

Confirmed Finished Goods (FG) are posted from Order to warehouse inventory.

SD Integration

Transfer to Sales Shipping.

Availability Check (ATP) confirms sales delivery fulfillment based on live production stock.

Phase 1: Foundations & Org-Setup

SD / MM / FI

Org Structure & Integration

Defining OX10 Plants, Storage Locations, and Production Lines.

Integration: Demand (SD) to Supply (PP) to Stock (MM)

Master Data: High-Availability DNA

S/4HANA Essential

Material Master: MRP Views & MM01
BOM: Low-Level Coding & CS01
Work Centers: Cost Centers & CR01

Routings: Standard Values & CA01
Production Versions: Mandatory in S/4 C223
PRT: Production Resources & Tools

Phase 2: Demand & Availability Monitoring

MRP & Simulative Planning

Net Requirement Calculation

Demand Management

Managing MD61 PIRs and Sales Demand.

LTP (Long Term Planning)

Simulative MRP via MS01. Compare planning scenarios before activating them in the operational environment.

Shortage Pre-Alerts

Early Warning via MD04 and CO09 ATP Checks.

Critical: Missing Parts List CO24

Scenario: A supply chain delay in raw material triggers a Rescheduling Check. MD04 suggests moving the order to avoid idle time.

Incoming RM Monitor

Tracking Raw Material availability from Purchase Reqs to Goods Receipt.

PR to PO ConversionME21N
LTP MT Stock Availability MS04
Vendor Lead TimeMonitor

Phase 3: Capacity Leveling & Execution

Capacity Monitor

Analyze overloads via CM21. Balance loads across work centers.

Finite Scheduling

Quality Monitor

Material quality status tracking via QA32 Worklist.

Usage Decision Gate

Confirmations

Operation Confirm CO11N and Order Confirm CO15.

Yield vs. Scrap

KPI

Execution Error

Monitoring Production Performance and Lead-time deviation via COOIS.

Check: Backflushing Errors COGI

Phase 4: Specialized Production Environments

Repetitive Manufacturing (REM)

Period-Based

Ideal for high-volume, stable production where costs are tracked per period, not per order.

KEY TOOLS

• MF50 Planning Table
• MFBF Backflush
• KKF6N Cost Collector

Use Case: Automotive assembly lines or electronics manufacturing where the same product is made daily for months.

Process Industries (PP-PI)

Batch-Based

Specialized for Chemical, Pharma, and Food industries requiring Master Recipes and PI Sheets.

KEY TOOLS

• C201 Master Recipe
• COR1 Process Order
• CO60 PI Sheet

Use Case: Batch mixing of liquid chemicals where yield depends on temperature, pressure, and catalyst phases.

Phase 5: Logistics & Financial Settlement

Module 11: Product Costing & Order Settlement

CO-PC WIP Analysis Variance

Costing Basics

Planned Cost
Calculated upon order creation.
Actual Cost
Captured at GI/Confirmation.

Month-End Processing

WIP Calculation
Costs for unfinished orders.
Variances
Actual vs. Target differences.

Final Settlement

Settlement KO88
Transferring balance to G/L.

Logic: If an order produces 100 units but consumes more raw material than the BOM specifies, the settlement process captures this Usage Variance for the finance team.

Consultant Toolbox & Troubleshooting

Configuration Checks SPRO

OPK8Printer Control
OPKPProd Scheduling Profile
OPL8Order Type Parameters
OPLKTask List Assignment

Common Errors

No Routing Found Check Production Version C223 and Validity Dates.

Backflushing Error Clear inventory mismatches via COGI.

Mass Processing

COHV Mass Release, Printing, and Confirmation of orders.

MDLD Mass Print of MRP Stock/Req Lists.

Real-World Business Use-Cases

1. The “What-If” Production Growth

A manager wants to know if the factory can handle a 20% increase in demand next quarter. The consultant uses LTP (Long Term Planning) with T-Code MS01 to simulate this demand against current work center capacities without affecting the live production system.

2. The Critical Component Shortage

A critical bearing is delayed. The Missing Parts List (CO24) highlights all orders impacted. The consultant uses the Capacity Leveling Table (CM21) to shift those orders to a later date, ensuring the production team focuses on items with available materials.

3. The Quality Control Gate

Raw material arrives from a vendor. A Quality Inspection Lot is triggered. Until the Usage Decision (QA11) is “Accepted,” the material remains in “Quality Stock” and is invisible to the production order availability check, preventing faulty manufacturing.

4. Closing the Financial Loop

At month-end, the finance team needs to clear production costs. Orders with status ‘TECO’ (Technically Complete) undergo Variance Calculation. Running KO88 ensures that the difference between standard production costs and actual spent costs is posted correctly to the profit center.

360° Monitoring Matrix

Control Area	Business Indicator	Monitoring Tool (T-Code)
Shortage Alert	Component unavailability for released orders	CO24 / MD04
Capacity Overload	Work center load exceeding 100% capacity	CM21 / CM01
Quality Status	Inspection lot completion and stock hold	QA32 / QA11
Settlement Cost	Actual Order Cost vs. Standard Cost variance	KO88 / KOB1