Set the Conversion Indicator when Planning with InC
Use
To map a product substitution, the system creates a product substitution order in procurement planning. The system links the product substitution order and the requirement for which the product substitution has been created with a pegging relationship . The system links the dependent requirement of a planned order with the product substitution order that the dependent requirement forwards to the substitute product. Since product substitution orders are not integrated with SAP R/3, product substitutions for planned orders are only visible in SAP APO in the planning phase. To support in-house production processes with order processing in SAP R/3, PP/DS adopts the substitute components into the planned order if you set the conversion indicator for the planned order in PP/DS. The adoption of the substitute component is based on the pegging relationship to the product substitution order.
Features
If you set the conversion indicator for a planned order, the system determines the product substitution orders that are assigned to a dependent requirement by pegging relationships. The system then updates the dependent requirements of the planned order accordingly. It reduces the original requirement and creates the dependent requirements for the substitute components.
Note
On setting the conversion indicator, the system is only able to adopt a substitute component in the planned order if a pegging relationship to a product substitution order exists. Under certain circumstances, the system does not create a pegging relationship to a product substitution order or it deletes the pegging relationship during the planning process. For more information, see Pegging with Product Substitution Orders .
With the setting of the conversion indicator, the planning phase (in which a product substitution is mapped by a product substitution order) ends, and the execution phase begins. In the execution phase, a product substitution is mapped in the planned order. The planned order therefore contains the substitute components (see the graphic below). After the system has adopted a substitute component in the planned order, the related product substitution orders are partly or entirely superfluous. This depends on whether only a partial quantity or the entire quantity of the product substitution order was required for the substitution of the component in the planned order. For more information, see Adjustment of Product Substitution Orders no Longer Required .
Note
Another option for starting the execution phase and adjusting the dependent requirements of a planned order is the ATP check in SAP APO. However, the ATP check does not evaluate the product substitution orders and the pegging relationships; it evaluates the availability situation of the components in a supersession chain. After you have set the conversion indicator for a planned order, the ATP check is the only means of updating the dependent requirements of a planned order again, if necessary. An update may be necessary if you have rescheduled a manufacturing order to another date/time, for example.
Example
The following graphic shows a product substitution in the planning phase (left) and in the execution phase (right), using a planned order for 5 pieces of a product O as an example. According to the valid bill of material, product O consists of the components A and B1. The input quantities for the components are five pieces for component A and ten pieces for component B1.
The system can cover a partial quantity (three pieces) of the dependent requirement for the component B1 using component B1 (for example, using stock). This is indicated here by a broken arrow. The remaining quantity is substituted by component B2. This takes place using a product substitution order with a receipt quantity of 7 pieces for B1 and a requirement quantity of 7 pieces for B2. The availability date/time and the requirements date/time are the same as the requirements date/time of the requirements element for which the substitution is made. The system links the receipt of the product substitution order to the dependent requirement for component B1 using a dynamic pegging relationship.
In the planning phase, the bill of material for the planned order only contains the components A and B1 with the quantities 5 pieces or 10 pieces. When the conversion indicator is set for the planned order, the system directly adopts the substitute component B2 in the planned order. The bill of material of the planned order now contains the components A with 5 pieces, B1 with 3 pieces, and B2 with 7 pieces. The product substitution order is now superfluous and the system deletes it.