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Multi Plant Planning – Part 1 (Production in Alternate Plant)

Multi Plant planning is a vast area which is conceptually strong and deep. This document is an attempt to present some of the key features with some examples and screenshots.

Part 1: Production in Alternative Plant

Consider the scenario where there’s a planning plant and a production plant. The requirements created in planning plant should auto transfer to production plant, and the same needs to be produced directly in planning plant.

Let’s start with an example material PL2. I have created this in a plant, number 6000. This is FERT material, MRP Type PD and has created with the strategy 40. You can have other strategies as well, but let’s say we start with sales orders and the consumption for the same.

The MRP is as below. Consider this as a random situation.

Now, let’s start with production in another plant concept. I have extended the material to one more plant, 6997. The configuration for special procurement key is added with code 91, which suggests production in alternative plant 6997.

SPRO->Materials Management->Consumption-Based Planning->Master Data->Define Special Procurement Types

Change the material master for PL2 in MRP2 view under planning plant 6000 and run MRP. All the planned orders of plant 6000 will now refer to plant 6997.

If you choose the planning situation in 6997, it will be as below. The reference to plant 6000 will be shown on the right side.

As mentioned earlier, the material PL2 has the strategy 40. This means that existing stock will not be considered; the sales order requirements will consume PIR quantity; and VSF will be created for excess quantity only.

The total order quantity in May is 12,001 MT.  (Order 15524, 15549, 15517, 15520, 15518).

So, if I create a PIR less than 12,001 for the month of May in planning plant (6000), there will not be any independent requirement in MRP run. So, let’s create a PIR of 12,002 in planning plant 6000:

Check MD04 for PL2 on plant 6000:

Once we run MRP, then planned order will be created for the same. This will again go to Plant 6997:

What’s the difference between MRP screens of Plant 6000 and 6997?

If you observe, you can find that the available quantity is blank in case of 6997, which is quite unusual. The reason is simple: The production happens at 6997 but the ownership plant is 6000. That means, if you create a production order and produce the material, the stock will be received to 6000 plant ONLY. You cannot receive the stock in 6997. So, the stock will not be available in 6997 even if you convert any of the planned orders. Let’s have a look at it:

Convert any of the planned order to Production order:

Let’s try producing to plant 6997:

The error occurs as order belongs to 6000. If I change the plant to 6000:

The stock situation in alternate plant will not show the produced material. It will remain 0.

If we create a PIR in production plant 6997, that will be specific to that plant, considering the MRP strategy of 6997. It will be shown up as extra PIR, as the current production plan will not consume the same.

Please let me know your comments / inputs on this topic. I’ll try to incorporate your valuable suggestions to make it a comprehensive document.

If you have missed Part2, please refer the link Multi Plant Planning – Part 2 (Using Quota Arrangements)



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          • Dear Prem,

                     Documented very nicely about the vast area. I came across with this requirement very recently. When i search, luckily i found this document. I have some queries.

            A company has two plants like plant A ( HQ, mostly planning plant), plant B (Production plant), it’s an MTO scenario.The order in planning plant is transferred into production plan as per the situation. Some times, plant A itself doing the production activity, if any bottle neck or some cases it will transferred the order into plant B. How we can control this user decision? if we use SPK, system always raise the order with production plant. As per this document, GR has been directly made into planning plant location but product is physically exist in production plant. How you will transfer this material from production plant into planning plant when there is no stock exist in system in production plant but has physically? ( plants are exists in different location, whether any system document is required or not? )As per the SAP standard process ‘Multi Plant panning’ it stated system will raise a stock transport requisition and latter it’s convert into order.

            Stock Transfer from Plant to Plant – Material Requirements Planning (PP-MRP) – SAP Library

            Could you please clarify the above?


          • Dear Sankar,

            Production in alternate plant and quota will create GR in planning plant itself. This is generally used when the plants are physically located nearby, or if there’s logical planning plant etc (as per my understanding). If the plants are located at a distance, you can use STO process. ie, the special procurement key 40.

            If 40  is used, then STR will be created upon MRP run. (You can set at planned order and convert to purchase order also). So, based on requirement, STR will be created which can be converted to STO. In this case, as both plants are under same company code, Order will be created in 2nd plant, GR will happen in 2nd plant. The stock is transfered STO to planning plant.

            Is that what you are looking for?