SAP PP Production Order Settlement without Variance – Configuration & End User Guide

Production order settlement in SAP PP is the process of transferring the costs of a production order to one or more receivers, such as finished goods, work in progress, or cost centers. In a standard costing scenario, the production order is valued at the planned costs, which are based on the standard cost estimate of the product. If there are no variances between the planned and actual costs, the production order settlement can be done without any adjustments. However, if there are variances, they need to be allocated to the receivers before the settlement.
This PDF document outlines the following list of key steps required for production order settlement without variance and WIP in SAP Production Planning:

  1. Configure PP settings in SAP – Define order types [OPL8], MRP views for finished goods and raw materials [MM01], work scheduling views, order control parameters [OPJK], valuation variants [OPK9].
  2. Create purchase orders and receive goods to bring raw materials into stock.
  3. Create and release production order for finished goods.
  4. Issue raw materials to production order.
  5. Confirm production order activities and quantities produced.
  6. Book actual overheads.
  7. Transfer finished goods to stock.
  8. Calculate variances – will be zero since planned equals actual.
  9. Settle production order at month end.
  10. Close settled production order.

The key steps covered are configuring PP parameters, issuing materials, confirming production, settling and closing the order. Since planned costs equal actual costs, there are no variances or WIP generated. This demonstrates production order settlement in a standard costing scenario without variances.

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SAP PP User Manual: Create and Confirm Production Order

This pdf document provides a guide on how to create new production orders and confirm them in the SAP Production Planning (SAP-PP) module.

The process allows users to create new production orders with respect to the material to be produced, the quantity, production schedules, and input material batches. The main purpose of creating a production order is to meet specific requirements on a particular day and to send this production to the shop floor with the desired quantity and input material on the scheduled date/time.

  • Procedural Steps: The document provides a step-by-step guide on how to create a production order (Transaction Code: CO01) and confirm a production order (Transaction Code: CO11n). It also provides instructions on how to handle errors during the confirmation of a production order using the COGI transaction.
  • Production Order Creation [Tcode CO01]: The user enters the material to be produced, the production plant, order type, and order quantity. The system automatically proposes the current date as the scheduled start date. After entering the required data, the production order is released automatically.
  • Production Order Confirmation [Tcode COGI]: The user enters the production order number, and the system proposes the ordered quantity. After confirming the production order, the system provides the number of successful and failed goods movements. Failed goods movements with errors need to be processed in the COGI transaction.
  • Error Handling During Production Order Confirmation: The document provides examples of how to handle errors during the confirmation of a production order. For example, if a material number is not maintained for a plant at a certain storage location, the user needs to maintain the material at the correct storage location to clear the error. The document concludes with a note that there should be no COGI records against the production order after all errors have been successfully handled.

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SAP PP MRP Business Blueprint Sample for Colorant Manufacturing Industry

Material requirement planning (MRP) is a process that ensures the availability of materials. It is used to procure or produce the required quantities on time for both internal purposes and sales. This process involves monitoring stocks and creating procurement proposals for purchasing and plan orders for production. MRP is designed for production where finished goods are produced as per demand.
Specialized for a Colorant Manufacturing company, this AS-IS TO-BE BBP document outlines the business process of Production Planning from the demands flowing from different sources like Forecast and Sales Order.

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SAP PP Master Data Business Process Procedure for Colorant Manufacturing Industry

This Business Process Procedure (BPP) document aims to help you creation and maintainance of Production Planning master data in SAP. This document describes in a lucid yet detailed way the procedure required to create and maintain master data. Following list of PP master data topics are covered in this traning manual;

  • Bill of Materials
  • Resources
  • Master Recipes
  • Product Versions

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SAP PP Guide: Material Staging & Stock Overview

The process of material staging involves transferring the material from the main store to the production location in accordance with a production order in SAP PP.
This document outlines the procedure for transferring the material and provides an overview of the material stock for production.

  • Procedural Steps for analyzing Stock Overview before material staging [MMBE]
  • Material Staging for Production/Process Order [MF60]
  • Reservation List Inventory Management [MB25]
  • Stock Overview: Company Code/Storage Location/Batch [MMBE]

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Sample SAP PP Business Blueprint for Pharmaceuticals Industry

The purpose of this document is to provide the current business processes of the Production Planning and Control that are in practice at Pharmaceuticals Company and map them accordingly to SAP business processes. As end-to-end process mapping approach is adopted, this document not only covers the current business processes but also lay tremendous emphasis on integration aspects by addressing and attending to cross-modular flow of data and information.
This document serves as basis on which the major configuration related activities will be undertaken during the realization phase of the SAP S/4 HANA Implementation project.
This sample SAP PP Business Bluprint includes, but not limited to, plethora of standard SAP reports available in each module for analysis and decision-making purposes.
The significance of PP master (BOM, Resource, Master Recipe and production version) is then highlighted along with providing basic definitions and its applicability in Company’s production processes.
Due to integrated nature of SAP among PP, Materials Management (MM), Quality Management (QM), Controlling (CO) processes are also covered, as deemed necessary.
Finally, complete lists of standard SAP reports for both PP and MM (due to its relevance with PP) modules forms an integral part of this business blueprint.

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List of SAP PP Production Order Tables

The following table contains list of important tables used in Production Orders of SAP Production Planning (PP) module (9 table entries). SAP PP Production Order Tables Table Description AFIH Maintenance order header AUFM Goods movement for production order AFKO Order header data PP orders AFPO Order item RESB Order components AFVC Order operations AFVV Quantites/dates/values … Read more

List of SAP PP BOM Tables

The following table contains list of important tables used in Bill of Materials (BOM) of SAP Production Planning (PP) module (9 table entries). SAP PP BOM Tables Table Description STKO BOM Header STAS BOM item selection STPO BOM Item STPN BOM follow up control STPU BOM Subitem STZU Permanent BOM Data PLMZ Allocation of BOM: … Read more

List of SAP PP Routing Tables

The following table contains list of important tables used in Routing of SAP Production Planning (PP) module (10 table entries). SAP PP Routing Tables Table Description MAPL Allocation of task lists to materials PLAS Task List: selecton of operations/activities PLFH Task List: production resources/tools PLFL Task List: sequences PLKO Task List: header PLKZ Task List: … Read more