Basics of MRP Area
The purpose of this document is to explain the basics of MRP area, steps involved in activating MRP area and to use it in different possible ways.
As we know MRP runs at plant level (centralized), but as per business need we may have to plan MRP for individual & independent planning areas (decentralized). This can be achieved by activating MRP areas. These MRP areas are fully configurable organizational units within ECC where MRP can be run individually. So we can broadly classify running MRP in 2 major ways.
- MRP at plant level: The system adds together stocks from all of the individual storage locations to determine total plant stock. The requirements are combined in the planning run and procurement elements are created for these pegged requirements with unknown sources. Individual storage locations can be planned separately or be excluded from planning.
- MRP area level: Only the stocks from the storage locations or subcontractor assigned to the respective MRP area are taken into account. The requirements in this particular MRP area are combined and procurement elements are created for them. This enables us to plan material requirements specifically for certain areas (MRP areas).
You can define MRP areas within a plant and carry out MRP specifically for that particular area, for example in above illustration, for MRP area M0001 can be planned independently without running MRP for plant FP01.
In each MRP area you can control staging and procurement of parts that are produced in house or externally. All MRP procedures are supported by MRP areas and one can display the result of MRP run for each MRP area.
MRP Area (definition):
As per SAP, “MRP Area represents an organizational unit for which material requirements planning is carried out independently”
MRP Area is functionality for special planning process that enables you to carry out planning not only at plant level but also at different planning levels (eg, storage location & sub-contractors). There are 3 types of MRP areas in SAP
- Plant MRP Area
- MRP Areas for storage location
- MRP Areas for Subcontractors
Plant MRP area:
MRP area can be created at plant level. On doing so, system combines all its storage locations and stock with subcontractors under that MRP area. When you define MRP areas for storage locations and for subcontractors and assign material to newly created MRP areas with in plant then the plant MRP area gets reduced by exactly the numbers of subcontractors and storage locations. This is because they will now be planned separately in new MRP areas.
MRP area for storage location:
MRP area can also be defined for storage location or multiple storage locations. Material requirements for this storage location are then planned separately from the rest of the plant. Important point to note here is that you can assign 1 storage location to only 1 MRP area but you can have multiple storage locations under single MRP area. It’s a N to 1 relationship.
MRP Areas for Subcontractors:
You can also define an MRP area for each subcontractor. Important point to note here is that a subcontractor can be assigned to only one MRP area in a plant. An MRP area of the subcontractor type can only contain one subcontractor. It’s a 1 to 1 relationship.
How to setup MRP area in SAP
There are 2 aspects of setting up MRP area. First one is to activate it in customizing and second part it to set up master data (i.e. adding materials to that particular MRP area in material master).
MRP with MRP area is not operational until you assign MRP area to a particular material in material master or in order words create a MRP area segment. If you have not assigned a material to an MRP area, that is, you have not created an MRP area segment in the material master, the material will continue to be planned in the plant MRP area only.
Step 1 – Converting Planning file entries
Path: SPRO > Production > Material Requirement Planning > Master Data > MRP Areas > Convert Planning file entries for MRP areas – OM0F or SE38 program RMDBVM00
When we convert planning file entries for MRP area, system creates plant MRP area for each plant. Following entries from below tables are converted. Planning file entries are maintained in MRP file which are converted to MRP area file in below tables.
Planning file entries in MDVM are converted to DBVM
Planning file entries in MDVL are converted to DBVL
Planning file entries in KDVM are converted to KBVM
Planning file entries in KDVL are converted to KBVL
If you are running converting planning files for the first time then system will automatically create plant MRP areas. These new entries can be seen in OMIZ under plant MRP area with area type “01”.
IMP note: After the conversion, contents of MDVM/MDVL/ KDVM/KDVL are deleted and entries are created in DBVM/ DBVL/ KBVM/ KBVL.
Step 2 – Define MRP area in SPRO – OMIZ
Path: SPRO > Production > Material Requirement Planning > Master Data > MRP Areas > Define MRP areas
MRP area has 3 types (01, 02 & 03) and system will allow you to have MRP areas in below types only (Plant, Storage location or Sub Contractor)
Plant MRP area should have same name as plant so you can have only one entry for plant MRP area. For example plant 1000 will have plant MRP area as 1000.
In order to maintain consistency and uniformity, only MRP areas of the type ‘plant’ are allowed to have 1-4 digits key. Sloc MRP area should have minimum of 5 digits. Example M0001 etc…
You can only have 1 sub-contractor vendor assigned to 1 MRP area. Multiple vendors cannot be grouped together in a single MRP area.
You can have multiple storage locations combined together in a single MRP area.
You can only one entry for plant in plant MRP area. Multiple plants cannot be grouped together in a single MRP area.
Once MRP area is defined, next step is to Activate MTP area
Step 3 – Activating MRP Areas – OM01
Path: SPRO > Production > Material Requirement Planning > Master Data > MRP Areas > Activate MRP for MRP areas
NOTE: MRP areas are activated at client level. Once you activate it, it will be available for all plants and MRP areas features would be available to use.
This sums up setting up MRP area configuration in SAP customizing.
You can find following changes due to activation of MRP area. These are just few for example
MD61 – PlR creation
Stock Requirement list
Step 4: Master data for MRP area
The material will not be considered in MRP area planning until it’s extended to MRP area. Following steps shows how to extend a material in MRP area. You can extend a material to multiple MRP areas based on the need.
Go to change material master under MRP 1 screen and assign MRP area as shown below:
You will have additional views for MRP 1, MRP 2, Forecast & Consumption values. You need to fill required fields as per your need.
When you assign a material to a new MRP area, a new record for this assignment gets added in the planning file. You have an option to define individual MRP and forecast parameters for each MRP area that you assign to a material. These parameters can differ from those defined in the material master at plant level. As an example, you can have different MRP controllers, lot size or MRP type for each individual MRP areas that is assigned to a material.
Users can set up different forecast model and consumption values in MAR area tabs. Once MRP with MRP area is activated, ATP check is also activated at MRP area level.
Scope of planning with MRP area
You can create scope of planning run if you want to carry out total planning for limited MRP areas. In case you do not give any MRP area in total planning run, system will consider all MRP areas under a plant and plan for them in total planning.
For single item planning system, in MD02 & MD03 system plans a material only in the specified MRP area.
Let’s consider a material Assembly maintained in plant ZSY1 under 2 storage locations (ZSY3 & ZSY4)
Sloc ZSY3 maintained in MRP area MA001. Assembly is extended to MA001 with following stock situation
ZSY3 – 100 (under storage location MRP area MA001)
ZSY4 – 150 (under Plant MRP area ZSY1)
Lot size for same material is maintained as FX (fixed lot size) in MA001 MRP area and EX in plant MRP area ZSY1
Total stock MMBE
MD04 – MRP Area ZSY1
MD04 – MRP Area MA001
Let’s have requirement from a Sales order for plant ZSY1, it will come under plant MRP area ZSY1
For testing, we can also have PIR created for specific MRP area MA001
Here is the stock situation of MD04 with sales order in Plant MRP area
Stock requirement for MRP area MA001:
If we run MD02 for plant ZSY1, system will only consider plant MRP area and will not plan for MRP area MA001 as it’s a separate planning area
MRP area MA001 is untouched:
After running MRP for MA001 system creates planned order for 200 quantities
Material Assembly was maintained as EX lot size in plant MRP area and with fixed lot size 200 in MA001 hence planned order of 200 Qty created in MA001. In this way separate planning parameters can be maintained to run requirement planning using MRP areas.
Thank you for reading this document. Please feel free to suggest any change and modification needed to improve the document.
*Scenarios related to MRP areas will be covered in a separate document. The link will be added below once completed
Again a very well explained and informative document from you.
Thanx a lot for sharing...!!!
Thank you for the comments. The intent is to keep them as easy as possible to help consultants of any domian.
As always great work from you.
Really easy and simple document to understand.
Thank you for the comments. I am planning to add few more sample scenarios in this document to demonstrate remaining functionality of MRP area.
Great piece of work. Keep it up.
Good job. Expecting few more such valuable information in future.
Thank you for your feedback. Will definitely be adding more documents in this space.
Great Work Rohit.
Superb explanation on MRP Area.
Thanks for sharing the Good Knowledge.
Thank you for the nice feedback. I will be sharing more such documents in coming days.
In step 1 mentioned SPRO path is wrong and T.code & Program are correct.
Path is SPRO > IMG > Production >Material Requirements Planning > Planning File Entries > Convert Planning File Entries for MRP Areas.
Kindly change it.
Very helpful document thanks.
But i have same query in the below.
If i want that sale order also will come in the MRP area Only.
Exp:- We have customer XXX and the requirement will come in the form of Sale order. And for this customer we have 1 vendor for doing Assembly.Quantity of FG Material :-130
As take help of your document. I create One MRP area for this customer and i want my all requirement will come in this MRP Area only. Sale order and PIR if any and available stock.
Thank you for the comments.
If you want a sales order requirement to be considered in a perticular Sloc MRP area then you have to enter storage location in Sales Order. If a Sloc is not maintained, system will consider it in Plant MRP area.
In order to have it considered in a perticular storage location MRP area, you need to mention Sloc in item details under shipping.
Thank you for this helpful document
Thank you for the comments.
Its really a very good document.
Thank you for the feedback.
Wonderful doc on MRP area. We are waiting for various business scenarios on MRP area.
Thank You SAP CONS,
I am little occupied in my current assignment and not able to prepare other scenarios but I will be posting them soon.
Marvelous and Things has been explained in well detail. Thanks for sharing.
Thank you for the comments.
Informative document, thanks for this. Can we use Vendor level MRP area concept in IS-AUTO...??
Thanks & Regards
thank you so much for the very useful document
thank you Rohit for such incredible doc, I have one doubt,......
MRP area M0001 contain subcontractor V001 and MRP area M0002 contain same subcontractor V001. My question is can we assign one subcontractor (V001) to multile MRP areas?
Thank you for suggesting this correction. Actually it should not be same Vendor in 2 different MRP Areas. I have made correction in this document and published with new version.
Informative document 🙂
🙂 Good Work 🙂
Hi Rohit, Well documented on the steps to be followed to run business with MRP area concept. Going forward with S/4 HANA MRP, planning happens at plant or MRP area level and not at storage location MRP level. with the change in design, all implementation need to activate MRP area either at plant (default), storage location or sub-contractor level.
Great work Rohit.
Could you please check last 2 lines in end of the document .
"Material Assembly was maintained as EX (FX) lot size in plant(S.Loc) MRP area and with fixed lot size 200 in MA001 hence planned order of 200 Qty created in MA001"
Very Good Document
This is a very good document. I have a doubt with regards to this, can you review the issue I am facing and help me.
I am configuring MRP for re-order point planning.
As per the requirement, we do not want to implement the MRP at MRP area level but on plant level. Hence in the config node "Activate MRP for MRP area ", the checkbox is not ticked at client level.
However the report RMDBVM00 was executed by mistake. Hence the planning file entries at plant level are converted into MRP area level. (Entries from table MDVM deleted and DBVM updated)
Now when we are running MRP using tcode MD03 or MD02 we are getting error message like "Plant does not exist"
Can you please assist in analyzing the cause of the issue and the possible resolution.
In addition, would like to understand if it is possible to revert the effects of report RMDBVM00 in any way ie After the planning file entries at plant level convert to MRP area level, I need that the planning file entries from MRP area level should again convert to plant level and same should continue in the future.
Very good document and very useful.
As in S4 HANA environment , How to exclude Storage location through MRP Area.?
If you have any idea related to that , do share. As Storage location exclude facility is no more in S4 HANA.
Hi Rohit, very much informative and insightfull. Thank you. I have one query, for a material at a plant if i want that the stock at different vendors should be considered while running MRP at Plant level. Can i assign 2 vendor to the MRP area if not how can i achieve this of considering stock of multiple vendors.
Your views please.
I have question which came up in our organization.
How can we make sure that the MRP area is assigned automatically?
Any specifc settings which needs to be done?
Reason behind my question is the following.
If a sales order or a manual booking (movement type 501 or 311, etc.) is made in our organization the corresponding Sloc/MRP area is not created / assigned automatically. This is done manually up to now.
Any chance that the system is doing that automatic?
Thank you for nice article.
One question: as you have there in Master data of MRP Area MRP1,MRP2,Forecast,Consumption values....so if you have there in MRP1 Fixed lot size: 200, does it mean there all the materials in this area have Fixed lot size 200? Or Does it mean that this particular material has in this particular MRP are Fixed lot size 200?
Petr, when you create the MRP area for a material master record you get a new set of MRP parameters for the combination of material and MRP area.
To answer your question in other words material A and B can live in MRP area 1, where material A has lot size of 100 and material B has a lot size of 500
Hi- I realize this article was posted some time ago. Hopefully it is ok to still comment/question. I completely understand how MRP works even with all the levers and buttons in SAP. Our issue with ostock/subcontract materials is related to the MRP/demand type. AR Dependent reservation versus SB dependent requirement which is based off of a planned independent requirement.
While MRP is doing what it needs to do when the peg is AR, it is not doing what folks are expecting it to do when the peg is SB. We run MRP at a plant level. Is there an MRP setting to always consider ostock as supply regardless of the demand type? Keeping in mind there is NO option to employ project stock in our environment. Or is it an MM setting for the material? I know MRP groups have some power however, I have not seen an attribute that would help.
We need MRP to see the ostock whether that is 1 or 3 suppliers + any materials within the four walls and use this value. Regardless of the demand type AR vs SB.
Any help would be appreciated.