Source Determination in PP/DS (SAP Library

Source Determination in PP/DS

Use

If you want to create a procurement proposal in Production Planning and Detailed Scheduling (PP/DS), a source of supply has to be determined for the procurement proposal. In most applications, this takes place using the source determination function.

Note

An exception is the creation of PP/DS procurement proposals from ATP tree structures. In this case, the source of supply is specified by Global ATP. When PP/DS procurement proposals are generated from Supply Network Planning (SNP) procurement proposals, PP/DS can adopt the sources of supply that source determination has determined for the SNP procurement proposals. PP/DS does this instead of using automatic source determination to redetermine PP/DS sources of supply. For more information, see Converting ATP Tree Structures and Conversion of SNP and CTM Orders into PP/DS Orders.

Features

Source Determination in Different PP/DS Planning Applications

The following table gives an overview of the application-specific characteristics of automatic and interactive source determination in different PP/DS applications.

Application	Description
· Action Cover Dependent Requirements Immediately · Product heuristic: Planning standard lots (SAP_PP_002) · Product heuristic: Planning shortage quantities (SAP_PP_003)	These PP/DS applications determine sources of supply automatically. Automatic source determination takes account of the procurement type from the location product master and thus all sources of supply that correspond to the procurement type. The planning application selects the (quota-allocated) source of supply with the highest priority and the lowest costs with which the requirements date/time can still be adhered to. The application selects this source from the ranking list of the valid, alternative sources of supply. If only a late schedule is possible with all sources of supply, the system uses the source with the shortest delay. Therefore, on-time delivery is a decisive factor in source of supply selection.
Product heuristic: Least-unit cost procedure: external procurement	This heuristic tries to find optimum order quantities, while taking storage costs and procurement costs into consideration. Automatic source determination only considers sources of supply for external procurement here, irrespective of the procurement type in the location product master. Storage costs and procurement costs are decisive factors here in source of supply selection.
Interactive creation of receipts	If several valid sources of supply exist, source determination is performed interactively. The system shows the ranking list of the valid, alternative sources of supply and you make a manual selection according to your own criteria. For more information, see Source Determination in Interactive Planning.

Costs

To prioritize sources of supply, source determination uses the following costs from the sources:

· Sources of Supply for In-House Production

In the case of a production process model, the system calculates the production costs from the fixed and variable (that is, quantity-dependent) costs, which you have entered in the production process model plan under multilevel costs. The costs are 0 for iPPE access objects and runtime objects.

· Sources of Supply for External Procurement

In the case of an external procurement relationship, the system uses the procurement costs function of the external procurement relationship; these costs are transferred automatically from SAP R/3 to the external procurement relationship. In the case of a transportation lane or an external procurement relationship without a procurement costs function, the system uses cost data that you have specified manually in the transportation lane. You can specify blanket, quantity-independent product procurement costs or a cost function. The system uses the cost function, or, if no cost function exists, the product procurement costs.

Procurement Proposals Without Sources of Supply

In the planning version, you can define for PP/DS whether the system may create a procurement proposal if no valid sources of supply are available. If you allow procurement proposals without valid sources of supply, the system creates the following procurement proposals:

· A purchase requisition without a source of supply, in the case of an externally-procured product

The system schedules the purchase requisition, while taking account of the goods receipt processing time and the planned delivery time.

· A planned order without source of supply, in the case of a product produced in-house. This also applies if a product can be both produced in-house and procured externally.

The duration of the planned order is 0. It only contains a receipt but no activities or dependent requirements. The system schedules it for the desired availability date/time.

Change the Source of Supply for a Procurement Proposal

In the order processing view, you can change the source of supply of a procurement proposal. In particular, you can change a purchase requisition with reference to a source of supply into a purchase requisition without a source of supply.