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This section gives you an overview of the integration of the application component Production Orders (PP-SFC) in the SAP system and its integration in the component Production Planning and Control (PP) .


Production Orders in the ERP System

Production orders are a fundamental part of Production Planning and Control (PP) . PP is fully integrated within the Logistics (LO) component and has interfaces to areas such as the following:

  • Sales and Distribution (SD)

  • Materials Management (MM)

  • Controlling (CO)

Integration of Production Orders in Production Planning

The work processes within a company are executed using orders.

A production order defines which material is to be processed, at which location, at what time and how much work is required. It also defines which resources are to be used and how the order costs are to be settled.

As soon as a planned order or other request is generated from material requirements planning, the information is passed on to shop floor control; the order-relevant data is also added to ensure complete order processing.

Production orders are used to control production within a company and also to control cost accounting.

Integration of Production Orders with an SAP EWM System

Production orders are integrated with Extended Warehouse Management (EWM) . You can use an SAP EWM system for the following processes involving production orders:

  • Material staging

  • Confirmation of production and process orders

  • Cancellation of the confirmation with reference to confirmation document (CO13/CORS)

  • Postprocessing of faulty goods issue postings (COGI)

The processes are completely integrated. You must use an EWM-managed storage location as the source storage location for production supply. The destination storage locations in production from which the components are then withdrawn can be EWM- or MM-IM-managed. See also: Processes in the Area of Production and Process Orders

For more information on the integration of production orders with EWM, follow the menu path   SAP Library   SAP ERP Central Component   Logistics   Logistics Execution (LE)   Integration of Extended Warehouse Management   Integration of Extended Warehouse Management into PP   .


You can use the production order to specify:

  • What is to be produced

  • When production is to take place

  • Which capacity is to process the order

  • How much production costs

This graphic is explained in the accompanying text.

Production orders can be generated in the following ways:

  • From a requirement generated in requirements planning, that is, by converting a planned order to a production order

  • Using an assembly order

  • Without any previous requirement, that is, by creating it manually

When a production order is created the following actions are carried out:

  • A routing is selected, its operations and sequences are transferred to the order

  • The bill of materials is exploded and the items in the bill of material are transferred to the order

  • Reservations are generated for bill of material items held in stock

  • The planned costs for the order are generated

  • The capacity requirements are generated for the work centers

  • Purchase requisitions are generated for non-stock items and externally-processed operations

Working with Production Orders

Separate menus were developed for all the areas in the SAP system. You can select all the data and evaluations that are needed from the menu. You also have the option of selecting specific processes or overviews using function keys.