Concept of Discontinuation Data – Material Master and BOM
What do you mean by Discontinued Materials?
If you want to use some of the components in place of the original components and these original components are no more required, then in material master once you enter discontinued material which will prompt to give effective out date. That means from that date onwards substitute material is going to be used.
What data to be maintained for Discontinued Material?
Material Master – MRP 4View
Discontinuation indicator – Identifies the material as a part to be discontinued and includes it in the discontinued parts procedure in materials planning.If this indicator is set, the system transfers the dependent requirements in materials planning to the follow-up material if they are no longer covered by warehouse stocks
There are two types of discontinuation which are Simple discontinuation and Dependent parallel discontinuation.
Simple discontinuation : A component to be discontinued is replaced with a follow-up component at a particular date. In the material master record of the component to be discontinued, you must set discontinuation indicator 1, enter a follow-up component, and specify an effective-out date.
Dependent parallel discontinuation: A group of materials is replaced with a group of materials; that is, if one component is to be discontinued (the main component), another component must also be discontinued (the subordinate component). In the material master record of the main component to be discontinued, you must set discontinuation indicator 1, enter a follow-up component, and specify an effective-out date. In the material master record of the subordinate component, you must set discontinuation indicator 3.
Follow-Up Material: Number of the material that the system uses in materials planning to replace the material to be discontinued once its warehouse stock is depleted. In the material master record and also in the bill of material (BOM), you can define a follow-up material for a material to be discontinued. The follow-up material defined in the BOM has a higher priority than that in the material master record.
Conditions for Discontinue Materials:
- The part to be discontinued and the follow-up material to be planned using material requirements planning (MRP)
- The base unit of measure of the follow-up material to be the same as that of the part to be discontinued
- In BOM, discontinuation data is maintained for the discontinued item and follow-up data is maintained for the follow-up item
- Item category should be stock item or variable size item.
Master data Maintained:
Step 1: Change Material Master( MM02)
In Material Master MRP 4 view for the discontinue material maintain the Discontin. ind = 1 , with Efft out date and follow-up material.
For the given example T-T223 is the discontinue material and T-T323 is the follow-up material. Settings are made as displayed below.
Step 2: Change BOM( CS02)
Follow up material to be included in BOM. T-T223 is discontiue material and T-T323 is follow up material
For discontinue material T-T23, Select the Discontinuation ind. as 1 and maintain the Discont.group as 01
Similarly for the Follow up material T-T323 maintain the Follow up group as 01.
Scenario 1: Master data maintained as explained above and stock of discontinue material is available. What will be the effect of discontinue material and follow-up material during MRP and Order creation.
Step 1: Stock Requirements List (MD04)
Stock available for Follow-up material is 400 as displayed below.
Step 2 : PIR for FERT Material for 500 qty and MRP MD02 executed. Planned order created for 500 qty.
When replacing a component with another the stock of the discontinue material should be used up before the follow up material is introduced in order to avoid dead stock. During the planning run, the system checks the discontinuation indicator and the effective-out date in the material master and reassigns the materials correspondingly. The system reassigns the requirements during the planning run for the discontinued material.
Below screen shot displays the FERT planned order Component overview. Here we can see the discontinue material T-T223 available stock qty of 50 is considered and remaning qty 450 is considered from the follow up material T-T323.
As shown below for the discontinue material T-T223 MRP did not generate any procurement proposals since it is discontinue material with effective date 19.03.2014. Instead it created dependent requirement for 50 available qty. Once all the stocks of this material have been used up, its dependent equirements are reassigned to the follow-up material.
As shown below for the follow up material T-T323 MRP generated purchase requsition for 50 qty since 400 is already available against total dependent requirement of 450 qty.
Once Order is created for the FERT material acordingly reservations are generated for 50 qty for discontinue material(since stock available for 50 qty) and 450 qty for the follow up material.
In Nutshell, MRP will not generate procurement proposals from effective date for discontinue materials. Reservations will be generated for availale stock qty till stock of discontinue materials becomes zero and thereafter all the dependent requirements of discontinue materials be reassigned to follow up materials.
Note 1: If stock of the discontinue material is zero then when order is created for the parent material – in order componenet overview for discontinue material requirement qty will be displayed as ZERO and for folllow up material actual requirement qty will be displayed.
Note 2: If dicontinue data is maintained in Material Master and not maintained in BOM, MRP will not plan but in order, requirement qty will be displayed in order componenet overview as per BOM qty for both discontinue material and follow up material.
Note 3: If you try to set the discontinuation for a follow-up material, then error message “Message no. 61224 -Multi Level Discontinuation not suported” will be generated when you try to run MRP. Refer Note 398238 – Error message 61224 for parts provided