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Author's profile photo Tom Arne Altmueller

Integrated Production Engineering and Planning in SAP S/4HANA Manufacturing with PEO and PP/DS (Process Overview)


This blog provides an overview and use case of the integrated Production Engineering and Planning  with the extended LoB Solutions for Manufacturing in  SAP S/4HANA

  • Extended production planning and scheduling (PP/DS for S/4HANA)
  • Production Engineering and Operations (PEO)

The article is not a detailed description of PP/DS for SAP S/4HANA (Advanced Planning) nor Extended Production Engineering and Operations (PEO) and does not replace the SAP help nor the SAP Service notes.

For information about basic setting and basic customizing in embedded PP/DS refer to SAP note  2712349 – Best practices for implementation of Production Planning and Detailed Scheduling for SAP S/4HANA 1709 and 1809 .

The SAP help PEO Implementation Guide describes the configuration steps to setup a S/4HANA  system for working with SAP S/4HANA Manufacturing for production engineering and operations (PEO).

Target audience of this blog are project team members and key user who are interested on an overview on an integrated production engineering and  planning process with S/4HANA.


General Information Regarding S/4HANA PEO & PP/DS

Among others Extended Production Engineering and Operations (PEO) provides features to model the production process in more detail and more detailed instructions for production operators.

SAP S/4HANA Manufacturing Advanced Planning is used for Production Planning and Detailed Scheduling (PP/DS). Create procurement proposals for in-house production or external procurement to cover product requirements and PP/DS for S/4HANA provides features to optimize and plan the resource schedule and the order dates/times in detail.


Picture:SAP S/4HANA Manufacturing with PEO and PP/DS

Information on S/4HANA PEO Bills of Material and Routing

Production Engineering introduced a new Version-managed BOM where different change states of the BOM are represented by versions.  Every BOM version has its own release status.
A released BOM version can be used in production execution and that cannot be changed. For changes you have to create a new BOM Version.

Production engineers convert engineering BOMs (EBOMs) into either planning BOMs or shop floor BOMs.
Planning BOMs (date-effective or version-controlled) can be used in production versions which are used by MRP.

PEO provides also Version-managed shop floor routings where every routing version has its own release status. Similar to Version-managed BOM a released routing version can be used in production execution and cannot be changed. For changes in the routing a new routing version has to be created.

Shop floor routings provide with operation activities more level of detail. One or multiple activities define detailed work instructions for production operators without making scheduling on operation level more complicated.

PEO uses version-controlled bills of material and routings (shop floor BOMs and routings), to ensure that consistent BOMs and routings are used in production execution.

Along with the planning BOM also planning routings are available to support the production planning.

In the Manage Production Versions app you define the usage of BOMs and routings for the different purposes – distinguish BOMs and routings used for planning (MRP, PP/DS) from those used for shop floor execution.

For this article on PEO and production planning in PP/DS only planning BOM and planning routings are relevant. The planning routing can be date (or parameter) effective.

Since PDS as source of supply for inhouse production does not support parameter efficiency you can only use Date-Effective Planning BOM and Planning Routings with PP/DS for S/4HANA.

The following pictures show important differences of Version Management BOM and Version Management Routing (vs. classical BOM & Classical Routing)

Picture: Classical BOM & Routing vs. Version-Controlled Classical BOM & Routing

In classical bills of material (BOMs) and classical Routings the different changes states are represented by data effectivity.  The version-controlled BOMs and the version-controlled Routing   in PEO support different changes states using versions.


For more details refer to the SAP help


Information on Production Engineering and Operations with Advanced Planning

In a scenario with product engineering and production planning you can use as simplified master data planning BOMs   and planning Routing in the production version of SAP S/4HANA Manufacturing and integrate them as Production Data Structure (PDS) to PP/DS for S/4HANA.

In fact in S/4HANA you can perform the  MRP based on the planning BOM only and all component requirements  are scheduled on the start date of the planned order for the header material but with the Advanced Planning features of PP/DS and an assignment of  the components at operation level you can perform a more detailed scheduling during MRP.

In an additional PP/DS production planning run you   optimize and plan the resource schedule and the order dates/times in detail and thus also detailed requirements dated for components.

For more information concerning different Process Variant in PEO (Sequential Production Engineering and Planning and  Parallel Planning with Date-Effective Planning BOMs and Routings) see SAP help -> Process Variants in PEO

With Parallel Production Engineering and Planning  process variants “Planning with Date-Effective Planning BOMs and Routings” and “Planning with Version-Controlled Planning BOMs and Routings” the product engineers create EBOMs and production engineers convert the EBOMs into version-controlled- / date-effective planning BOMs.

With planning routings, the material requirements planning, and capacity planning can be executed long before the complex version BOM and shop floor routing are available.

The Production process planning in S/4HANA requires also the managing of  production versions
A production version is used to combine a BOM alternative with a routing alternative .
In S/4HANA production version are the only source of supply for in-house production and integrated with PP/DS for S/4HANA as PDS.

If you want a BOM or Routing to be considered by PP/DS for S/4HANA you have to create a production version and transfer it  as Production Data Structure to PP/DS.  The MRP in PP/DS generates Planned order based on the PDS.

In the PP/DS for SAP S/4HANA scenario with classical BOM and classical Routing every BOM and Routing version has its own production version and own PDS in PP/DS.

Versioned BOMs and versioned Routings can have multiple production versions (detail tab) for a single alternative.

A new function in transaction ‘CURTOADV_CREATE’ (Transfer of Production Data Structure to PP/DS) enables the  PDS generation for versioned BOMS and  versioned  Routing.




  1. ‘Single Source of Supply for latest BOM version’
  2. ‘Source of Supply for every BOM version’

the following picture shows the logic of 1 and 2.


Versioned BOM and RTG in PDS transfer

1 = (green) – ‘Single Source of Supply for latest BOM version’
-> BOM V2 and  RTG V3 are the only ones that are transferred as PDS to PP/DS.

2 = (purple)   “’Source of Supply for every BOM version’
–> BOM-V1 & RTG-V1 , BOM-V1 & RTG-V2 and  BOM-V2 & RTG-V3 are  transferred as own  PDS to   PP/DS.

Enhancement of transaction CURTOADV_CREATE for versined BOM and versioned Routing see SAP note 2726405 – SAP S/4HANA Manufacturing for Production Engineering and Operations – PPDS for Version Manage BOM and Routing


MRP Live is used for the creation of receipts for single or multilevel materials using components that are planned either in SAP S/4HANA or In this scenario in  Production Planning and Detailed Scheduling (PP/DS).
Since  the MRP Live plans infinitely and does not take any capacity constraints into account the  PP/DS optimization or scheduling heuristics can be used to plan generate a  finite plan that  considers the resource availability or scheduled the  sequence of orders/operations on the resources to a defined time/date.

For production execution the planning BOMs are converted into a shop floor BOM and the shop floor routings are created for the product.

Planned orders cannot be converted into production orders and production execution cannot start until the shop floor master data are created and released.


Picture: Process flow in PEO and PP/DS


In the process “Planning with Version-Controlled Planning BOMs and Routings” the  Planning BOMs &  Planning Routings are transferred first as  PDS to PP/DS and used in MRP Live as source of supply.

Later in the process the Shop Floor BOM & Shop Floor Routing are available and could be also transferred by CURTOADV_CREATE  to PP/DS.

As long as the production version suggests that there is a separate planning master data available, the PDS is always created through planning BOM &  planning Routing.

Later, when the execution  master data are available and the production version is updated to indicate that the Shop floor BOM&RTG itself can be used for both planning and execution, then during the transfer, the existing PDS will be removed, and a new PDS will be created through Shop Floor BOM & Shop Floor Routing.


Planning and execution master data in PDS


In the production Planning master data routing the operations are the central objects.
In PEO you can model the production process in more detail with component assignment at operation activity level. Various objects like qualifications or work instructions can be assigned to PEO activities.

In PP/DS an operation contains also activities and planning functions such as alternative modes/resources or activity-relationships could be assigned to PP/DS

In PEO as well as in PP/DS Operation activities can be created for the segments; setup, produce, and teardown.

In S/4HANA 2020 there is no integration or dependency between Activities of operations  in PEO Shop Floor Routings and Activities of operations  in PP/DS Production Data Structures.

If you perform a detailed scheduling in PP/DS based on the routing data in PEO the integration of the components requirements dates is on level Operation. There is no integration/ synchronization between PEO and PP/DS on level Activity yet.

Purpose of this blog is to get an overview about an integrated production engineering and planning process with SAP S/4HANA PEO and PP/DS.

The follow-up blog will detail this process with a demo scenario on S/4HANA Manufacturing

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      Author's profile photo CHONG SA
      CHONG SA

      Thank you Tom!

      Could you explain the two new options in TA CURTO_CREATE?
      1. Single Source of Supply for latest BOM Version
      2. Source of Supply for every BOM Version

      Do I need to create PDS for planning BOM with date effectivity and also for PEO shop floor BOM which is version BOM?
      If yes, means we did new development into PDS structure to accommodate PEO Version BOM?

      Author's profile photo Tom Arne Altmueller
      Tom Arne Altmueller
      Blog Post Author

      Hi Chong,

      I ve updated the Blog with details concerning the new functions in tcode ‘CURTOADV_CREATE’ –

      With versioned BOM and versioned Routing there is  an additional data model in PDS transfer.
      For details see also SAP Note 2726405 – SAP S/4HANA Manufacturing for Production Engineering and Operations – PPDS for Version Manage BOM and Routing

      If not available in your system, this note  will enhance CURTOADV_CREATE  to enable PDS generation for versioned master data by consuming the new  data model.

      Best regards

      Author's profile photo N. Pot
      N. Pot

      Hi Tom,


      Do I understand your blog correctly that PP/DS in S/4HANA is now called "Extended Production Planning and Scheduling"?
      This would mean that this is available in S/4HANA Cloud via scope-items 1Y2 and ‏2QI.

      I've been looking for information about using PP/DS functionality with S/4HANA Cloud.

      Best regards,


      Author's profile photo Tom Arne Altmueller
      Tom Arne Altmueller
      Blog Post Author

      Hi Nic,

      with SAP S/4HANA – Suite 2020  on-prem in the LoB (Line of Business) Manufacturing the
      SAP S/4HANA Enterprise Management covers all the the  core business processes of an ERP-System  like Production planning, Production operations or Quality management (similar to ERP-PP).

      The Extended S/4HANA LoB Solutions  are integral part of  SAP S/4HANA , not an add-on, not side-by-side but has a separated license. The S/4HANA LoB Solutions for Manufacturing  are

      • Extended production planning and scheduling
      • Extended Production Engineering and Operations

      Not part of the SAP S/4HANA Suite  there are the  Cloud Managed LoB Solutions that requires an additional installation and licence

      For Manufacturing that are

      • Responsive manufacturing (ME, MII)
      • Production operations (MII, QIM)
      • Digital operations for manufacturing

      As mentioned the S/4HANA LoB Solutions for Manufacturing   are..

      • Extended production planning and scheduling
      • Extended Production Engineering and Operations

      Production Planning and Detailed Scheduling (PP/DS) is part of the LoB solution
      “Extended production planning and scheduling”

      Demand-Driven Replenishment  (DDMRP) and Predictive Material and Resource Planning (pMRP) are also a solutions of “Extended production planning and scheduling”

      Extended Production Engineering and Operations is separate LoB Mfg solutions.

      For details see the SAP Help:SAP S/4HANA 2020:

      – Manufacturing

      – Extended Production Planning and Scheduling
      (with DDMRP, pMRP and PP/DS)

      – Extended Production Engineering and Operations (PEO)

      PP/DS is not available as Cloud Solution.

      Concerning  Manufacturing / Production Planning  in SAP S/4HANA Cloud see the blog "Manufacturing and Supply Chain in SAP S/4HANA Cloud 2011"

      If you read ePP/DS for SAP S/4HANA the prefix ‘e’ stands for ’embedded’ as part of S/4HANA and not as solution in the side-by-side SAP-SCM-APO System.

      Best regards

      Author's profile photo user20 DE
      user20 DE

      Hi Tom,

      Where is the difference between PP/DS for SAP S/4HANA and Advanced Planning?

      In Customizing everything is under Advanced Planning. However, SAP Help refers to Production Planning and Detailed Scheduling.

      Is there a difference? Which term is used in which context?

      Author's profile photo Tom Arne Altmueller
      Tom Arne Altmueller
      Blog Post Author

      Hi User20 DE,

      in the side-by-side system SAP-ECC and SAP-SCM  Production Planning and Detailed Scheduling  is a solution in SCM-APO ( Advanced Planning and Optimization)
      --> SAP-SCM-APO-PP/DS

      in S/4HANA you  find in the menu and Customizing (SPRO) the Advanced Planning folder and here the PP/DS functions (Transactions , Customizing) (Tcode / reports / function modules with "/SAPAPO/...)

      You can use Advanced Planning or PP/DS, It's the same S/4HANA solutions

      Best regards


      Author's profile photo Leandro Oliveira
      Leandro Oliveira

      existe alguma transação que nos permita fazer modificações em massa, i.e., introduzir um componente em várias BOM's em simultâneo?

      Author's profile photo Vignesh Veerasamy
      Vignesh Veerasamy

      Hi Tom Arne Altmueller

      Great Article.

      Would like to know whether PEO is part of existing license of S4 Hana or needs a separate License for activation and usage in current system?


      Vignesh V

      Author's profile photo Tom Arne Altmueller
      Tom Arne Altmueller
      Blog Post Author

      Hi Vignesh V,

      Thank you for your feedback.

      PEO -  Extended Production Engineering and Operations is a separate LoB Mfg solution and needs a  separate License.

      For details on the functionality see the SAP Help: SAP S/4HANA 2020:

      – Manufacturing

      – Extended Production Engineering and Operations (PEO)

      Regarding pricing  please ask your SAP Contact  on  Material ID 7019509 (OP), 8005625 (HEC), 8007150 (Ext. Ed)

      Best regards

      Author's profile photo Nanhe Babu
      Nanhe Babu

      Hi Tom,

      We are trying to plan Unitized Material (Parameter effectivity) in S/4 PPDS. When sending the Production Version via Curtoadv_create, we are getting error that PDS not created because of material is unitized. We see in the note 2666947 that parameter efficiency can be supported with the help of BADI implementation. But we couldn't find any. Could you please let us know if you are aware of it.
      Nanhe Babu


      Author's profile photo Tom Arne Altmueller
      Tom Arne Altmueller
      Blog Post Author

      Hi Nanhe,

      I don't think a BADI implementation in the PDS transfer is  sufficient to support Parameter effectivity in PP/DS for SAP S/4HANA.

      For a comprehensive  E2E solution you also have to integrate the Parameter on demand level (Sales Order or Project) - Attribut TECHS in PP/DS Orders.

      The MRP has to consider this attribute (TECHS) in planning and the created planned orders have to take over the TECHs from the requirement object .

      I don't know if the MRP heuristics in PP/DS provide this function. the standard lot size heuristics will not  inherited this info.

      In my opinion it is not just a BADI in the PDS transfer , it is a complex custom develop to realize  Parameter effectivity in PP/DS.

      From past projects I know customers  / custom developments that integrated the parameter effectivity with PP/DS by translating the parameter effectivity (internal object 'TECHS') into variant configuration (internal object 'CUOBJ') - but this also requires XL development effort.


      Best regards