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Production processes are procurement processes of the process category Production.


If you are using a given material in different manufacturing processes, production processes allow you to collect the quantities for each quantity structure (such as for each production version) and use those quantities for evaluation or analysis purposes.

Production processes are used:

The quantities updated by the production process are valuated and the resulting costs allocated to the cost object.


The production order is assigned to a production process. Independently of the component, you can choose a Controlling level for the material from the production process that determines the level of detail for the creation of production processes. For example, if you want to collect and analyze the costs separately for each production version, choose the Controlling level Production Version.

The Controlling level determines which characteristics for the production process are updated.

Controlling Level

Characteristics of Controlling Level



Receiving Plant

Production Plant/Planning Plant


Production Plant

Planning Plant

Production Version


Production Plant

Planning Plant

Production Version



Production Plant

Planning Plant

BOM Usage

Alternative BOM

Task List Type

Task List Group

Group Counter

In certain circumstances it is possible to change the Controlling level for a plant material. (See also: Editing the Controlling Level)


A production process for material P-105 for which the Controlling level Production Version was specified is defined by characteristic values such as the following:


Product Cost Collectors

If you are using Structure link product cost collectors in Cost Object Controlling in the Structure link Product Cost by Period component, production processes link the product cost collectors to the manufacturing orders (in order-related production or process manufacturing) or to the production version (in repetitive manufacturing). This is the case regardless of whether the Actual Costing / Material Ledger application component is active or not.

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If no production process exists, the system automatically generates one when you create the product cost collector. (In some cases a production process will already exist, such as when a mixed cost estimate has been created for that material.) If the production process has not yet been created, you choose a Controlling level when you create the product cost collector. Then you enter the values of the characteristics of that Controlling level (such as planning plant 1000, production plant 1000, material P-105, and production version 0001). The Controlling level affects all application components.

Planning Plant and Production Plant

The planning plant and the production plant are characteristics of the production process. If the planning plant is not the same as the production plant, the product cost collector is created in the production plant. Settlement is to the material in the planning plant.

Manufacturing Orders

If the Actual Costing/Material Ledger application component is active, the system automatically assigns a production process to each manufacturing order on the basis of the characteristic values.

The system checks whether a Controlling level has already been assigned to the material being manufactured.

  1. If no Controlling level has been specified, the system automatically selects the most basic level of detail, Plant/Material.
  2. The system finds a more detailed Controlling level, and all characteristic values for the Controlling level are in the manufacturing order.
  3. The system searches for a production process for the material according to the characteristic values. If a production process exists, it is assigned to the manufacturing order. If no production process exists, the system creates a new production process according to the characteristics of the Controlling level and the new characteristic value.

  4. The system finds a more detailed Controlling level, but one of the characteristics for the Controlling level is not in the manufacturing order.

The system creates a production process for the Controlling level Plant/Material and assigns it to the manufacturing order.


In the Controlling level for the material, it is specified that the production process should be created for the production version. No production version is defined in the manufacturing order.

If the Actual Costing/Material Ledger application component is not active, a production process with the characteristic values relevant for the manufacturing order can already exist if:

The manufacturing order with the same characteristic values is assigned to the product cost collector.

Repetitive Manufacturing

In repetitive manufacturing, costs are always collected on product cost collectors. To achieve this, the production version is linked to the product cost collector through the production process.

Cost Object Hierarchies

If you want to create a cost object hierarchy, assign the material and plant (or the material, plant, and production process) to the lowest cost object nodes in the cost object hierarchy. You assign the material, plant, and production process only if assignment at the material level does not meet your requirements (such as when you are manufacturing different production versions on different production lines and you want to assign different setup costs to the different lines).

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If you have used cost object hierarchies for the combination material / plant / production version, it is recommended that you create production processes with the Controlling level Production Version. Preexisting cost object hierarchies for material / plant / production version or material / plant / run schedule header are converted ( see also : Structure link Conversion of Cost Object Hierarchies).

See also:

Structure link Product Cost Collector

Structure link Cost Object Hierarchy

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