SAP introduced new changes to MRP (Material Requirement Planning) in SAP S/4HANA. I would like to present the major changes SAP S/4HANA vs ECC MRP.
The following items are the main impact in S/4HANA MRP.
In SAP ERP, storage locations can be excluded from MRP planning, or they can be planned separately from other storage locations.
As MRP area covers the very same business requirements, the solution location functionality is a subset of the MRP area's capabilities. Materials with MRP area-specific MRP type ND - no MRP can be used instead of materials with a storage location excluded for MRP.
In SAP S/4HANA, the master data maintenance has been simplified, and modeling alternatives for similar functions of the MRP planning on storage location level have been reduced.
The SAP S/4HANA MRP only plans on plant and MRP area level. Planning on storage location level is not available in SAP S/4HANA.
SAP ERP, you need to activate the MRP areas in customizing for MRP transaction OM01. SAP S/4HANA systems, MRP area is active by default and cannot be deactivated.
PP-MRP subcontracting, the master data maintenance has been simplified in SAP S/4HANA. The planning logic and evaluation process for the procurement of the subcontracting component is simplified in SAP S/4HANA. By using the subcontracting MRP area, SAP S/4HANA provides separated planning of every subcontractor, without having to create MRP area/supplier-specific material master data.
Basically, there are three types of MRP area in SAP S/4HANA.
In material requirements planning, the SAP S/4HANA system calculates material shortages, then the lot size, and then it determines the sourcing of supply. The sourcing determines whether the required
quantity is manufactured or purchased, and if purchased, from which supplier.
In SAP ERP, the sourcing logic is defined at different places with an asymmetrical definition for purchasing and manufacturing. The basic idea of this simplification is a reduced set of possible sources of supply with a clear and symmetrical definition that does not require any additional settings in the material master or in the customizing.
In addition, quote arrangements are always considered if they exist.
SAP S/4HANA supports the following types of sources of supply. If the material is manufactured, production versions are the only valid source of supply. If the material is purchased, delivery schedules, purchasing contracts, and purchasing for records are valid sources of supply, even without using source list records. If you want MRP to source a purchase requisition from a certain supplier, you no longer have to define a source list entry.
It is sufficient to set the indicator relevant for automatic sourcing in the purchasing info records. If sourcing determines several valid sources of supply for the same material, plant, quantity, and date, but does not find any quote arrangements, then it prefers production versions over delivery schedules, delivery schedules over purchasing contracts and purchasing contracts over purchasing for records.
In SAP S/4HANA for manufacturing, the production versions are the only valid source of supply. So, the production versions are mandatory in SAP S/4HANA.
MRP planned order creation and production order creation only find a bill of material and routing
alternatives, if the production version is maintained for them. The mandatory production versions make MRP sourcing simpler, as there are only the options to determine bill of material and routing alternatives for a manufactured material.
These production versions are already mandatory in PP/DS, and PP/DS as part of the SAP
S/4HANA product. The production versions make sourcing MRP and PP/DS more similar.
I would very much appreciate your comments and suggestions.
Best Regards,
Lingaiah
The following items are the main impact in S/4HANA MRP.
MRP in S/4HANA - Storage location MRP
In SAP ERP, storage locations can be excluded from MRP planning, or they can be planned separately from other storage locations.
As MRP area covers the very same business requirements, the solution location functionality is a subset of the MRP area's capabilities. Materials with MRP area-specific MRP type ND - no MRP can be used instead of materials with a storage location excluded for MRP.
In SAP S/4HANA, the master data maintenance has been simplified, and modeling alternatives for similar functions of the MRP planning on storage location level have been reduced.
The SAP S/4HANA MRP only plans on plant and MRP area level. Planning on storage location level is not available in SAP S/4HANA.
MRP in SAP S/4HANA - MRP Area
SAP ERP, you need to activate the MRP areas in customizing for MRP transaction OM01. SAP S/4HANA systems, MRP area is active by default and cannot be deactivated.
PP-MRP subcontracting, the master data maintenance has been simplified in SAP S/4HANA. The planning logic and evaluation process for the procurement of the subcontracting component is simplified in SAP S/4HANA. By using the subcontracting MRP area, SAP S/4HANA provides separated planning of every subcontractor, without having to create MRP area/supplier-specific material master data.
Basically, there are three types of MRP area in SAP S/4HANA.
- Plant MRP area contains a whole plant. MRP area for storage locations.
- MRP area for storage locations consists of a particular storage location. Material requirements
for this storage location are then planned separately from the plant. - MRP areas for vendor created for subcontractor vendor. In the case of SAP S/4HANA
system, it is recommended to create subcontracting MRP areas for every subcontractor.
MRP in SAP S/4HANA - Simplified Sourcing
In material requirements planning, the SAP S/4HANA system calculates material shortages, then the lot size, and then it determines the sourcing of supply. The sourcing determines whether the required
quantity is manufactured or purchased, and if purchased, from which supplier.
In SAP ERP, the sourcing logic is defined at different places with an asymmetrical definition for purchasing and manufacturing. The basic idea of this simplification is a reduced set of possible sources of supply with a clear and symmetrical definition that does not require any additional settings in the material master or in the customizing.
In addition, quote arrangements are always considered if they exist.
SAP S/4HANA supports the following types of sources of supply. If the material is manufactured, production versions are the only valid source of supply. If the material is purchased, delivery schedules, purchasing contracts, and purchasing for records are valid sources of supply, even without using source list records. If you want MRP to source a purchase requisition from a certain supplier, you no longer have to define a source list entry.
It is sufficient to set the indicator relevant for automatic sourcing in the purchasing info records. If sourcing determines several valid sources of supply for the same material, plant, quantity, and date, but does not find any quote arrangements, then it prefers production versions over delivery schedules, delivery schedules over purchasing contracts and purchasing contracts over purchasing for records.
MRP in SAP S/4HANA - Production Version
In SAP S/4HANA for manufacturing, the production versions are the only valid source of supply. So, the production versions are mandatory in SAP S/4HANA.
MRP planned order creation and production order creation only find a bill of material and routing
alternatives, if the production version is maintained for them. The mandatory production versions make MRP sourcing simpler, as there are only the options to determine bill of material and routing alternatives for a manufactured material.
These production versions are already mandatory in PP/DS, and PP/DS as part of the SAP
S/4HANA product. The production versions make sourcing MRP and PP/DS more similar.
I would very much appreciate your comments and suggestions.
Best Regards,
Lingaiah
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