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Author's profile photo Srini Ravindra Kumar Pandi Gurusamy

Purpose and Usage of Splitting Indicator in Planning

A very very basic document to illustrate what purpose the Splitting Indicator serves in planning and how to infer the planning results during its usage.

Starting point is Forecast-based planning which is on the basis of past material consumption and this procedure helps to come out with an output in the form of forecast values for the future time periods. The forecast is then used as a basis by MRP during the subsequent planning run.

Let us say that we may come out with a forecast value across an year long horizon and experience may suggest that it is not advisable to plan for the entire year but in much smaller time buckets say 6 months only. Splitting indicators come in here to satisfy the requirement.

Also as forecast values are not always reliable, it makes sense to plan for a shorter horizon and this may be the reason on why SAP provides this option of splitting indicator for forecasting requirements alone.

Basics of the Splitting Indicator:

The splitting indicator is defined depending on the period indicator which can be entered in Material master MRP3 view. It is relevant only if period indicator is either Monthly or Weekly.

The period indicator defines the periodicity used to record the historical values for the forecast and the periodicity to be used to output the forecast values. It can be Monthly or Weekly or Daily or based on FY variant. For our discussion here Monthly and/or weekly alone holds significance.

We can use the splitting indicator to:

  • split monthly values into daily and weekly forecast requirements or
  • split weekly forecast values into daily forecast values.

By using this we can also limit the number of forecast requirements for which the net requirements calculation is to be carried out improving system performance also. Once the material is withdrawn the forecast is consumed thereby ensuring that the requirement is not planned again.

VV MRP type: We will use a material with the standard VV MRP type that supports planning to be based on forecast values. You can also use other MRP types with the Obligatory Forecast indicator set ON or which support forecast to be used as a basis for MRP.


Material Master MRP view:


When Period indicator is M, possible value for Splitting indicator is


If the Period indicator is W,


This comes from the config definition as in OMDG


(The lowest granularity possible is a DAY bucket in forecasting and hence further splitting is not possible when we use Period Indicator as a day).

Forecast values generated /existing:  Based on past consumption values a forecast had been executed already for this material and it shows the values as below:


Case1: Results after a MRP run with settings Period indicator – M and Splitting indicator Blank

We can see that the planning run has taken all the forecast into consideration and has created PurReqs for all the forecast values across the horizon.


Case2: Results after a MRP run with settings Period indicator – M and Splitting indicator – A

Where A is


Today is 9th July’2013

Requirement for July’13 is 150.

I. Daily Buckets:

System goes by the current date and skips earlier days in the month.

Between 9th July’13 and 31st July’13 there are 17 working days.

So Average daily requirement is 150/17 = 8.8235 Units per day.



Next 2 months, that is Aug’13 and Sept’13 are to be in Weekly buckets.


Aug’13 requirement = 140 and

Sept’13 requirements = 130.

Aug’13 has 5 weeks and 22 working days

1. Aug 1-2 (2days)

2. Aug 5-9 (5days)

3. Aug 12-16 (5days)

4. Aug 19-23 (5days)

5. Aug 26-30 (5days)

Average Daily Requirement = 140/22=6.3636

So per week requirement for Aug’13 is 6.3636 * 2 + 6.3636*5 repeated for 4 weeks

= 12.727 + 31.818 +31.818 + 31.818+ 31.818

Working similarly for Sept’13 there are 5 working weeks and 21 working days

1. Sept  2-6 (5days)

2. Sept  9-13 (5days)

3. Sept 16-20 (5days)

4. Sept 22-27 (5days)

5. Sept  30 (1day)

Average Daily Requirement = 130/21=6.190

So per week requirement for Sept’13 is 6.190 * 1 + 6.190*5 repeated for 4 weeks

= 30.952 + 30.952 + 30.953 + 30.953 + 6.190

III. Monthly Buckets

4 Months need to be in Monthly buckets that is Oct’13, Nov’13, Dec’13 and Jan’14. Beyond that because of the splitting indicator setting no planning happens.


Inference is that only forecast values based on the splitting indicator values had been used for calculating procurement proposals.

The work may be continued at your end further to check for Weekly bucket calculations with Period Indicator= W for your learning/inference purposes.

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      Author's profile photo Muhammad Umar
      Muhammad Umar

      Dear Kumar,

      Thanks for sharing such a documents. Please clear one thing what parameter for period split to use for conversion weekly forecast to daily demand.




      Muhammad Umar