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Author's profile photo Muhammad Hammad Ul Haq

Production Planning in a cross plant set-up

Hello everyone,
This document explains the steps required to configure a system for Production planning in a cross plant set-up. Many members post questions with a bit of variation regarding this scenario. Hopefully this blog will address any current and future queries regarding this topic.

Cross plant production is one of the key parts of SAP – Production Planning. It is also know as production in an alternative plant. In this document we will use Special procurement types 70 and 80 to address this scenario, thus eliminating the need of doing any transfer postings.

Prerequisites – Create Master Data i.e.
Material Master (FERT, HALB and ROH)
BOM                  (FERT and HALB)
Routing              (FERT and HALB)
Work Centers

HALB will be created in 3350 plant, while FERT and ROH will exist in both plants(3350 and 3300) by extending them through MM01.
We will be working on MTS – Make to Stock strategy.


Only configuration required in this scenario is to configure special procurement types 70 and 80.

For plant 3300 we will use special procurement type 80. We will mention plant 3350 in special procurement section of [ Prod. Other plant ].

For plant 3350 we will use special procurement type 70. We will mention plant 3300 as issuing plant in the ‘As BOM component’ section. Make sure there’s a tick at the box of withdr.altern.plant (withdrawal from alternate plant).

Special procurement 70 will be assigned to HALB’s BOM component. We will select ROH material in the BOM and click on item (or press F7). T.Code CS02

Special procurement 80 will be assigned in FERT’s MRP 2 view in plant 3300. T.Code MM02

After completing all of the above tasks we will proceed with a real time test. For FERT material, stock of 50 already exists thus we will have to add this in our future calculations.

Now we will go to PIR planning table T.code MD61, and enter the value of 100. Make sure the date is not on a holiday.

You can double check the planned qty and its date in Schedule lines tab.

After running the MRP (T.Code MD02) we will go to stock requirement list of FERT material. Here you can see IndReq of 100 and planned order of 50 quantity. Reason being that 50 qty of FERT is already available in unrestricted stock, so that stock will be consumed first. You can also see supplying plant as 3350 because FERT material will be manufactured in plant 3350.


For FERT Material in plant 3350 (T.code MD04) you can see Planned order for 50 qty while 3300 plant is showing as planning plant.

For HALB Material in plant 3350 you can see a planned order of quantity 50.


For ROH Material you can see DepReq of 100 and PurRqs of 100. That’s because in one HALB material 2 ROH materials are consumed.

Convert Purchase requisition of ROH to purchase order and do GR in plant 3300.

Convert planned order of HALB to production order.

In component overview of HALB’s production order you can see 3300 plant for ROH material.

Now we will do goods issuance (Movement type 261) on the production order of HALB material.

Before Goods issuance, ROH material stock is 100.

After Goods issuance, ROH material stock reduces to zero. Point to notice is that there were no transfer postings done.

After doing Confirmation of HALB’s production order we will do Goods Receipt of HALB material.

Before GR of HALB

After GR of HALB. 50 quantity has been added to stock.

After GR of HALB material, we will convert planned order of FERT to Production order. Note supplying plant is 3350.

Planning plant and MRP area for FERT’s production order is coming as 3300

Now we will do goods issuance to FERT’s production order. 261 movement type is done.

In stock/requirements list (T.Code MD04) for HALB you can see the effects of GI

In FERT material’s Production order HALB’s withdrawal quantity is coming as 50

After confirmation of production order we will do GR of FERT material.
But before that you can see for plant 3300, FERT’s material Stock/requirement list is showing 3350 as supplying plant while for plant 3350 Stock/requirement list is showing 3300 as planning plant.

We will go to MIGO and do GR of FERT’s production order. It will be done directly to 3300 plant 0001 Sloc without the need of any transfer postings.

After GR, stock in 3300 plant has increased from 50 to 100

After GR, stock in 3350 plant has decreased to zero.


You can see in Stock overview list (T.Code MMBE) that stock in ‘unrestricted use’ is 100 for plant 3300 in 0001 Sloc, while stock is Zero for plant 3350. Production Cost will be collected in production plant 3350.

There are numerous scenarios for Multi Plant Planning, I hope this blog has established a baseline understanding of how Multi Plant Planning works.

If you have any queries please feel free to ask.

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      Author's profile photo Harshesh Patel
      Harshesh Patel

      Great Documentation. Thanks for sharing.

      Author's profile photo Muhammad Hammad Ul Haq
      Muhammad Hammad Ul Haq
      Blog Post Author

      Thank you Harshesh

      Author's profile photo Former Member
      Former Member

      Nice document . Thanks for sharing !



      Author's profile photo Muhammad Hammad Ul Haq
      Muhammad Hammad Ul Haq
      Blog Post Author

      Thank you Kumar

      Author's profile photo Mohan Nikam
      Mohan Nikam


      Hi Thanks for this document.

      I am working on this scenario & stuck in one place. My requirement is Transfer posting from production plant to planning plant should happen after completing usage decision in production plant. How to meet this?

      Thanks in advance,


      Author's profile photo Muhammad Hammad Ul Haq
      Muhammad Hammad Ul Haq
      Blog Post Author

      Hi Mohan,

      What inspection type are you using on that material? In case it's 04 I believe your stock will go to QI stock in production plant at which point it will require UD.


      Hammad Ul Haq

      Author's profile photo Sanjay Chavan
      Sanjay Chavan

      Excellent document ! Thanks for sharing

      Author's profile photo Muhammad Hammad Ul Haq
      Muhammad Hammad Ul Haq
      Blog Post Author

      Thank you Sanjay

      Author's profile photo ANIKET GAUTAM


      Author's profile photo Former Member
      Former Member

      Its nice Document if possible could you please make a blog on Wip for a production order .

      Author's profile photo Finbarr O'Donovan
      Finbarr O'Donovan

      Hi Muhammad,

      Does this solution work when the plants are in different company codes?



      Company Code A Plant A has stock of 50

      Company Code B Plant B has stock of 25

      Total stock 75

      Customer Demand comes in for 200


      Therefore company A needs to manufacture 125.


      Kind Regards,



      Author's profile photo s r
      s r

      Hi Finbarr,
      Did you manage to achieve it for Plants across Company Codes?
      Thank you,

      Author's profile photo Michael Zier
      Michael Zier


      I also would be very happy about a scenario description, where plant A (company A) and plant B (company B) are connected via special procurement type 80.

      I know and tried it (even with project stock) on behalf of your guide and from the logistic point its working perfectly. My goal was not to use any transfer purchase order procedure or reservation within the MRP, as the shopfloor and the warehouse are physically the same for both company I wanted an easy way for a quick handling of produced stock.

      That means, production order GR generates stock like you described automatically in planning plant. So warehouse logistic can immadiately pick palets and store them in the correct area in "their" company warehouse.

      What is the problem now, might one say...

      1. Crosscompany invoicing: How can I use IC invoicing procedure without an GI done by a delivery based on an transfer-purchase order? Is there an other way, how i can monitor costs of production and generate an invoice for the planning plant?
      2. FI/CO claims, that costs are always in production company, and profits are always in planning company

      so what would be nice is a "complete" guide of CROSS-COMPANY MANUFACTURING including invoicing procedure and costing procedure.

      Best regards,