Determining the Procurement Proposal (SAP Library - Material Requirements Planning (PP-MRP))

Determining the Procurement Proposal

Implementation Options

Procurement proposals are used to procure the shortage quantity. Procurement proposals are internal planning elements that can be changed, rescheduled or deleted at any time: purchase requisition and planned order. In contrast, delivery schedule lines are fixed elements, which must be followed, and are only part of the procurement proposals in a broader sense.

Process Flow

In the case of in-house production, the system always creates planned orders. These planned orders are used to plan production quantities. Once the MRP controller is satisfied with the results of planning, these planned orders are converted into production orders and passed on to production. Production orders are fixed elements, which must be followed.

In the case of external procurement, the system creates either planned orders or directly creates purchase requisitions. Procurement proposals for external procurement plan the external procurement quantity. Once the MRP controller is satisfied with the results of planning, the planned orders are converted into purchase requisitions or the purchase requisitions are converted into purchase orders and are passed on to the purchasing department. Purchase orders are also fixed elements, which must be followed.

If you create a planned order in external procurement first, this has the advantage that the MRP controller has more control over the procurement proposals. Only once the MRP controller has checked the planned orders and converted them into purchase requisitions can the purchasing department order the material. Otherwise, the purchase requisition is immediately available to the purchasing department, which then takes over responsibility for material availability and warehouse stocks.

You use the creation indicator for purchase requisitions in the initial screen of the planning run to control whether the system is to create purchase requisitions immediately or whether it is to create planned orders first (see Creation Indicator).

If a scheduling agreement exists for a material and if an entry exists in the source list that is relevant to MRP, you can then also instruct the system to create delivery schedules in the planning run. To do this, you set the creation indicator for delivery schedules in the initial screen of the planning run (see Creation Indicator).

For more information, refer to MM - Purchasing under:

Scheduling Agreement

Source List