Show TOC

 Production in Another Location with PP/DS and SAP R/3

Purpose

This process describes how you execute planning and order processing for an assembly produced in-house using SAP APO and SAP R/3. You have set production in an alternative plant for the assembly in SAP R/3. You use SAP R/3 as the leading system for master data management. To create sources of supply for production in another location for the assembly in SAP APO (production process models or PP/DS runtime objects), you transfer the master data from SAP R/3 to SAP APO. The required sources of supply are thus created automatically in SAP APO. You use Production Planning and Detailed Scheduling (PP/DS) in SAP APO to plan the assembly and its components. You perform order processing using SAP R/3.

Prerequisites

In the following sections, you will only find the prerequisites that are specifically relevant to production in another location. In addition, the prerequisites that apply in general to an integrated implementation of SAP APO and SAP R/3 must also be fulfilled.

Master Data in SAP R/3

You have defined the following master data in SAP R/3:

  • You have created the planning plant and the production plant. The plants must be in the same SAP R/3 system and in the same time zone.

  • In the production plant and the planning plant, you have created a material master for the SAP APO relevant assembly.

  • In the material master for the assembly in the planning plant, you have entered the special procurement type production in an alternative plant. The special procurement type must contain the production plant.

  • In the production plant for the assembly, you have created a routing, a bill of material, and a production version.

  • You have defined material masters in the production plant for the components of the assembly.

Transfer the Master Data and Transaction Data Between SAP R/3 and SAP APO

  • You need to have created an active integration model that contains the SAP APO relevant data. In production in another location, this includes the following data in particular:

    • The material masters for the assembly in the planning and production plants

    • The material masters of the SAP APO relevant components in the production plant

    • The production version of the assembly

    • Planned orders and manufacturing orders

    If you use several integration models, you first have to activate the integration model with the material masters and then activate the integration model with the sources of supply.

    The system assigns the master data in SAP APO to the supply chain model 000. For more information, see Source Transfer and Source Determination in SAP APO.

  • In SAP APO, you need to have created distribution definitions in Customizing for Integration for the in-house production orders in the location of the planning plant.

Usage of Other Sources of Supply

If you want to procure an assembly in SAP APO using the procurement form production in another location, in SAP R/3 you do not have to set production in an alternative plant for the assembly and integrate the data with SAP R/3. You can also manually create sources of supply for production in another location in SAP APO. You have the following options for manually creating sources of supply for production in another location in SAP APO:

  • You can create a new source of supply for production in another location

  • You can transfer a “normal” PPM from SAP R/3 and enter a production location in the PPM in SAP APO

You can only use locations of the type production plant, distribution center, or storage location MRP area for the planning location and production location. A planning location can also be of the type supplier.

Creation of SNP PPMs

If you want to use Supply Network Planning (SNP) for procurement planning, you need to have created an SNP PPM from a PP/DS PPM for production in another location that you have transferred from SAP R/3.

Process

  1. You execute a procurement planning run for the assembly in the planning location in PP/DS. In the net requirements calculation, the system takes account of the stock and receipts of the finished product in the planning location. If source determination determines a source of supply for production in another location for an uncovered requirement, it creates a corresponding planned order. The receipt for the planned order is in the planning location, while the dependent requirements are in the production location.

  2. If required, you can change the production location of a planned order and a manufacturing order in interactive planning in PP/DS under the following conditions:

    • There is a corresponding in-house production source of supply for the new combination of planning location and production location

    • The status of the in-house production order allows the change to be made

  3. You execute procurement planning in the production location in PP/DS for the SAP APO relevant components.

  4. You transfer the planned orders to SAP R/3. If you want the system to immediately convert the planned orders into manufacturing orders after the transfer, you first set the conversion indicator in PP/DS. In SAP R/3, the planned order – or in the case of immediate conversion, the manufacturing order – adopts the planning and production plant from the SAP APO planned order.

    Note Note

    In SAP R/3, you can only change the production plant of a planned order, and not the production plant of a manufacturing order. If you want to change the production plant of a manufacturing order, you have to do so in interactive planning in PP/DS (see above).

    End of the note.

  5. In SAP R/3, you execute procurement planning for the components that are not relevant to SAP APO.

  6. You perform order processing in SAP R/3. When the goods receipt for a manufacturing order is entered for the finished product, the system reduces the receipt in the planning plant and increases the stock.

More Information

Production in An Alternative Plant in the SAP R/3 documentation for material requirements planning (PP-MRP)