Material Requirement Planning Visibility in Two-tier ERP – SAP S/4HANA Cloud, Public Edition
This blog post describes the Two-Tier scenario of MRP Visibility between headquarters and subsidiary which run on two different instances of SAP. Headquarters are expected to gain better visibility on the MRP results generated at Subsidiary end and vice versa. With this analytics scenario the much-required capability with Two-Tier integration to check the status of production planning and customer stock availability between headquarters and subsidiary is added which was not available in the earlier scenarios. This scenario supports organizations running on Two-Tier setup to have better coverage on the material demand and supply planning of replenishment elements between Tier 1 and Tier 2 systems.
Business Enterprises implemented with Two-Tier scenario involving sale and purchase of materials and setup wherein the subsidiary runs on SAP S/4HANA Cloud, public edition acting as Tier 2 and the headquarter running on any deployments such as SAP S/4HANA Cloud, private edition, SAP S/4HANA, or SAP ECC or any other ERP system acting as Tier 1 with business requirement to provide report on the product demand, planning and execution status to share between the systems.
SAP S/4HANA Cloud, public edition at subsidiary sends the demand for assembly to headquarter and in turn the headquarter receives the demand, plan, produce and deliver the same product back to subsidiary. Here, the subsidiary acts as a customer whereas the headquarter acts like a production unit and internal supplier. In this business use case, subsidiary and headquarters are not having the visibility on the material coverage between the Two-Tier companies.
Subsidiaries expected to have better visibility on the MRP planning results of the production materials at headquarters and the headquarters are expected to access the demand planned for the materials at the Subsidiary end.
To achieve the above customer’s requirement, SAP’s Two -Tier Solution provides the API based direct integration between SAP S/4HANA Cloud, public edition system at the subsidiary and SAP S/4HANA / SAP S/4HANA Cloud public edition / SAP ECC/other ERP system at the headquarters.
Let’s see the process flow,
- The process starts with the creation of purchase order at Tier 2 system and the demand flows to Tier 1 system via API to trigger automatic creation of sales order at Tier 1 and sends back the purchase order confirmation to Tier 2 system. Also, the sales order number will be updated in the purchase order document at Tier 2.
- Once the sales order created in Tier 1, production planner perform the MRP run to generate the planned order against the customer sales requirement. Followed by that planned order will be converted to Production order to proceed with the production activities.
- Now, Tier 2 system can access the MRP Results View app to check the status of production planning by entering the material number/sales order/MRP Element category/plant and it displays the list of replenishment elements along with stock availability for the given material/sales order number using which Tier 2 entity can act proactively to fulfil the customer requirement on time without any delay.
Let’s see here the activities at Tier 1 system which receives procurement request for the product as dependent demand from Tier 2 system where customer order is received.
- Tier 2 system receives the demand from external customer and creates customer sales order manually. Planner performs the MRP run which generates Procurement proposals at Tier 2. These procurement proposals will flow as demand to the Tier 1 system, and the production planning process follows as said above.
- Now, Tier 1 system can access the MRP Results view app by entering the material number/MRP Element category/plant and it displays the list of demands with the required stock for the given material using which Tier 1 entity can act proactively by planning for the underlying components required to produce the assembly on time.
How to Build the MRP Planning Analytical app?
Communication scenario and API services
a communication arrangement is created to set up direct data communication between SAP S/4HANA Cloud, public edition and SAP S/4HANA on-premises/ SAP S/4HANA Cloud, private edition. The communication arrangement defines which system (communication system) and which user can call which APIs (communication scenarios).
The below service in enabled at the Tier 1 system to read the MRP results from Tier 1 and display the same at the Tier 2 system.
The Below communication arrangement is enabled on Tier 2 to get the MRP data and display on Tier 1
To enable communication between SAP S/4HANA Cloud, public edition and SAP S/4HANA on-premises/ SAP S/4HANA Cloud, Private edition using Remote Function Calls (RFC) and HTTP calls, you need to enable Cloud Connector in your SAP S/4HANA Cloud environment.
SAP BTP – Subscribed with SAP Business Application Studio
Access to BTP and subscribe the below service.
SAP Business Application Studio
- Dev space is created in Business Application Studio (BAS)
- Connect to External Data Sources with SAP Business Application Studio. In this case we have connected to the Tier 1 which is SAP S/4HANA/SAP S/4HANA Cloud, Private Edition to Tier 2 which is SAP S/4HANA Cloud, public edition
For more details on how to connect to external source system with BAS, please refer to the blogpost
Build and Deploy SAP Fiori App for MRP Visibility Report
Please follow the steps in the below blog to create Project and deploy the Fiori application using BAS
The above link explains on building Fiori app for sales order view and hence it uses sales order service while creating project.
To build MRP Visibility app, assign the API service ‘ZAPI_MRP_MATERIALS_SRV_01’ that was created as pre-requisite when creating project under Data Source and Service selection step.
While defining properties for Smart Table, select the Entity Set ‘/SupplyDemandItems’.
Binding Fields in the Smart Table
Once the Fiori application is deployed, same can be accessed from two-tier systems.
Fiori Tile added
MRP results view – It displays the Production document created against the sales order (MRP Planning Segment) and the stock availability for the customer requirement.
Hence by using SAP Business Application Studio, Fiori application for the Material Requirement Planning Visibility in two-tier ERP can be built and deployed in two-tier systems.