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Author's profile photo Ramagiri Srinivas Rao

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.

/wp-content/uploads/2014/03/d1_414191.png

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

/wp-content/uploads/2014/03/d1_414191.png

For discontinue material T-T23, Select the Discontinuation ind. as 1 and maintain the Discont.group as 01

/wp-content/uploads/2014/03/d1_414191.png

Similarly for the Follow up material T-T323 maintain the Follow up group as 01.

/wp-content/uploads/2014/03/d1_414191.png

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)

Currently there is stock of 40 qty available for the discontinue material (T-T223) as displayed below. Effective date is maintained as 19.03.2014.
/wp-content/uploads/2014/03/n1_415002.png

Stock available for Follow-up material is 400 as displayed below.

/wp-content/uploads/2014/03/n1_415002.png

Step 2 : PIR for FERT Material for 500 qty and MRP MD02 executed. Planned order created for 500 qty.

/wp-content/uploads/2014/03/n1_415002.png

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.

/wp-content/uploads/2014/03/n1_415002.png

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.

/wp-content/uploads/2014/03/n1_415002.png

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.

/wp-content/uploads/2014/03/n1_415002.png

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.

/wp-content/uploads/2014/03/n1_415002.png

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

Reference :

Discontinuation – BOMs (PP-BD-BOM) – SAP Library

Discontinued Parts – Planning Process – SAP Library

Discontinaution Data on BOM

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      26 Comments
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      Author's profile photo Former Member
      Former Member

      Dear Ramagiri,

      Good Analysis and well explained.

      Regards,

      Narresh

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks Naresh for your feedback.

      Author's profile photo Former Member
      Former Member

      Dear Ramagiri,

      Nice document on good concept. Well explained.

      Neelima

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks Neelima for your feedback.

      Author's profile photo Mohd Tallha Sonalkar
      Mohd Tallha Sonalkar

      Dear Srinivas,

      Excellent Document ,

      Keep on sharing with your latest updated docs

      Regard's

      Tallha

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks Tallha for your feedback. Sure will do.

      Author's profile photo Ibrahim S
      Ibrahim S

      Dear Ramagiri!

      Very well Explained!

      Thanks for sharing.

      Kind Regards,

      Ibrahim

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks Ibrahim for your feedback.

      Author's profile photo sandeep praharaj
      sandeep praharaj

      Hi Ramagiri

      excellently explained keep sharing 🙂

      Thanks & Regards

      Sandeep Kumar Praharaj

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks Sandeep for your feedback.

      Author's profile photo Former Member
      Former Member

      Hi Ramagiri,

      Nice document and well explained

      Thanks and Regards

      Rajiv

      Author's profile photo Anupam Sharma
      Anupam Sharma

      Hi Ramagiri,

      Good work.

      Regards,

      Anupam Sharma

      Author's profile photo Umesh Mali
      Umesh Mali

      Hello Ram,

      Helpful document, Keep sharing

      Thanks & Regards
      Umehs Mali

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks to Rajiv, Anupam for your feedback.

      Thanks & Regards,

      Ramagiri

      Author's profile photo Ramagiri Srinivas Rao
      Ramagiri Srinivas Rao
      Blog Post Author

      Thanks for your feedback.

      Author's profile photo Srini Ravindra Kumar
      Srini Ravindra Kumar

      Thanks for the good document Ramagiri. Most often functionalities are tied to an exception message and here it is 57 (Discontinued material partly replaced by follow-up material) which could be inferred from your screenshots.

      Author's profile photo Muthukumar Balakrishnan
      Muthukumar Balakrishnan

      Hi...Nice document...thanks for sharing the document

      Muthu

      Author's profile photo Former Member
      Former Member

      Hi, Great document! Thanks!

      I have a scenario where client does not want the mixing of main material and followup material in Production order until inventory for main material gets used.

      I'm using your Example,

      T-T223 - 100 in inventory

      T-T323 - 60 in inventory

      If T-B123 demand for 140 units

      When production order for T-B123 is created it should use only 100 units with T-T223, then another production order with T-T323 40 units

      How can i acheive this?

      Author's profile photo Ernest Buil
      Ernest Buil

      Did you get any solution for this? many thanks in advance.

      Ernest

      Author's profile photo Nancy Guo
      Nancy Guo

      Nice document!

      One suggestion:  you may consider adding the note 43636 which introduces common issues and explanations about discontinuation.

      Author's profile photo Djerk Treskvanni
      Djerk Treskvanni

      It doesnt work for me!!

      Author's profile photo Former Member
      Former Member

      Hi Srinivas,

      Thank you for providing this reference document. I tried to follow the steps as mentioned while running MRP i am able to see MRP plan details of discontinued item as well as follow up item. So far no issues encountered but when i try to convert the planned order to production order in component overview i am able to see both the materials but requirement qty of follow up material is not being updated. In BOM i had updated both quantities. Not sure what is missing in the setup.

      Any thought on this issue.

      Author's profile photo Ravi Kumar
      Ravi Kumar

      Hi Srinivas Garu,

      Really Good  Document 🙂

      Regards,

      @KRK@

      Author's profile photo Vikram Raj
      Vikram Raj

      This is very helpful and well explained.

      Author's profile photo Former Member
      Former Member

      Hi Srinivas,

      Thank you for this detailed explanation. It is really helpful.

      I have a specific scenario for which this functionality does not seem to work as we need.

      Issue:
      The discontinued component's stock is getting fully consumed as expected, but
      a single work order gets created combining the discontinued component T-T223 AND the new (follow-up) material T-T323.

      Ideally, I would like to get two discrete jobs:
      a) One that consumes all the remaining stock available for the component T-T223 and
      b) another that consumes material T-T323 to generate the supply of assembly T-B123 required.

      Is there a way to get this result, instead of a single work order with two different components (old and follow up).

      Thank you in advance for your valuable assistance.

      Kelwin

      Author's profile photo Ernest Buil
      Ernest Buil

      Thank you for sharing!,

       

      One question there is any way to avoid in the same order mixing the discontinued and the follow up material?

       

      In this case, I would have preferred to have one of 50 of the discontinued material and a new one of 500 of the follow up material.

       

      Many thanks for your time and support,

      Ernest,